Commerce Accountancy

Management and Organizational Behavior

2,434 Questions

Management and organizational behavior explore how individuals and groups interact within an organization. This hub covers motivation theories, leadership styles, and delegation. These topics are essential for commerce students and competitive exam aspirants.

Work motivation theoriesLeadership stylesDelegation of authorityOrganizational structure typesPerformance appraisal aimsGroup dynamics and social loafing

Management and Organizational Behavior Questions

Multiple choice

How can feelings be managed?

Directions: Read the passage and answer the following question:

What's a manager have to do about feelings in business? 

Why, manage them of course.
Not to mock your question in the slightest: We are dead serious. If there’s one thing that doesn't get enough attention for undermining productivity, creativity and the general smooth functioning of the business, it's the mismanagement of the emotion in the workplace. Too many managers would rather let people act, well, unmanaged.

Now, we're not even slightly qualified to opine on human nature; well, maybe we are as qualified as the next guy; but you don’t have to watch reality TV to know that, left unattended, people can fall into some pretty dysfunctional behaviours. Maybe it’s because gossip, ganging up, paranoia and the like were hardwired into the human brain to ensure the survival of the species, as some scientists have hypothesized.

But the underlying reasons why groups of people can get so terribly caught up in the negative feelings don’t really matter. All that does-from a manager’s point of view-is that unhealthy emotions usually beget more unhealthy emotions.

That’s why you have to manage them-which, fortunately, takes neither a degree in psychology nor more time than you already have. It takes only an active commitment to remove uncertainty from your organization and to instill a purposeful approach to inspiration.

  1. By removing uncertainty from organization

  2. By instilling inspiration

  3. By promoting productivity

  4. Both (1) and (2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The last paragraph states that 'It takes only an active commitment to remove uncertainty from your organization and to instill a purposeful approach to inspiration'.

Multiple choice

Which of the following statements is true according to the passage?

Directions: Read the passage and answer the following question:

What's a manager have to do about feelings in business? 

Why, manage them of course.
Not to mock your question in the slightest: We are dead serious. If there’s one thing that doesn't get enough attention for undermining productivity, creativity and the general smooth functioning of the business, it's the mismanagement of the emotion in the workplace. Too many managers would rather let people act, well, unmanaged.

Now, we're not even slightly qualified to opine on human nature; well, maybe we are as qualified as the next guy; but you don’t have to watch reality TV to know that, left unattended, people can fall into some pretty dysfunctional behaviours. Maybe it’s because gossip, ganging up, paranoia and the like were hardwired into the human brain to ensure the survival of the species, as some scientists have hypothesized.

But the underlying reasons why groups of people can get so terribly caught up in the negative feelings don’t really matter. All that does-from a manager’s point of view-is that unhealthy emotions usually beget more unhealthy emotions.

That’s why you have to manage them-which, fortunately, takes neither a degree in psychology nor more time than you already have. It takes only an active commitment to remove uncertainty from your organization and to instill a purposeful approach to inspiration.

  1. Group dynamics is always dysfunctional.

  2. Ganging up is dysfunctional.

  3. Ganging up can have benefits.

  4. Group dynamics can be managed.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 The passage does not talk about group dynamics, it talks about the dynamics of unattended people. So, ganging up can have benefits for avoiding dysfunctional behaviour.

Multiple choice

The problem with unhealthy emotion is that _____.

Directions: Read the passage and answer the following question:

What's a manager have to do about feelings in business? 

Why, manage them of course.
Not to mock your question in the slightest: We are dead serious. If there’s one thing that doesn't get enough attention for undermining productivity, creativity and the general smooth functioning of the business, it's the mismanagement of the emotion in the workplace. Too many managers would rather let people act, well, unmanaged.

Now, we're not even slightly qualified to opine on human nature; well, maybe we are as qualified as the next guy; but you don’t have to watch reality TV to know that, left unattended, people can fall into some pretty dysfunctional behaviours. Maybe it’s because gossip, ganging up, paranoia and the like were hardwired into the human brain to ensure the survival of the species, as some scientists have hypothesized.

But the underlying reasons why groups of people can get so terribly caught up in the negative feelings don’t really matter. All that does-from a manager’s point of view-is that unhealthy emotions usually beget more unhealthy emotions.

That’s why you have to manage them-which, fortunately, takes neither a degree in psychology nor more time than you already have. It takes only an active commitment to remove uncertainty from your organization and to instill a purposeful approach to inspiration.

  1. they spread in organization

  2. they remain contained in the department of origin

  3. they are benign in nature

  4. they improve productivity
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The manager is not so much concerned as to 'why' unhealthy emotions appear in the workplace but that unhealthy emotions beget more unhealthy emotions (it spreads in the workplace).

Multiple choice

The POSDCORB formula was devised by:

  1. R.L.Mittal

  2. S.R.Ranganathan

  3. Henry Fayol

  4. Luther Gulick & Urwick
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The POSDCORB formula (Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting) was developed by Luther Gulick and Lyndall Urwick in 1937 as a framework for public administration. While Henry Fayol developed management principles, the specific POSDCORB acronym and formulation came from Gulick and Urwick's work with the Brownlow Committee.

Multiple choice

Directions: Choose the correct option for the given question:

To which of the following aspects, does an established pattern of relationships among the components of an organization, refer?

  1. Organization strategy

  2. Organization structure

  3. Organization process

  4. Organization policy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Organization structure refers to the established patterns of relationships and authority among the various components, units, and positions within an organization. It defines how tasks are divided, coordinated, and supervised through the hierarchy. Strategy, processes, and policies are different organizational concepts.

Multiple choice

Directions: Choose the correct option for the given question:Consider the following statements:

  1. Authority in an organization is the formal or institutional right to command stemming from official delegation of position.
  2. Legitimate power is the right to manage derived from delegation based on ownership or property rights. Which of the statements given above is/are correct?

  1. (1) only

  2. (2) only

  3. Both (1) and (2)

  4. Neither (1) nor (2)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement 1 correctly defines authority as the formal right to command derived from official position delegation. Statement 2 correctly defines legitimate power as the right to manage derived from ownership or property rights delegation. Both statements accurately describe fundamental concepts of organizational power and authority structures.

Multiple choice

Directions: Choose the correct option for the given question:

Which of the following is not correct in respect of the Theory X?

  1. It emphasizes that most average human beings avoid to be led, want to lead.

  2. According to the theory X, the managers tend to be autocratic.

  3. The theory X assumes that most human beings must be directly controlled in order to achieve organizational goals.

  4. The theory X assumes that most individuals have little ambition and want security.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Theory X assumes that average people: dislike work, avoid responsibility, want direction, have little ambition, and primarily want security. It doesn't claim that people 'avoid to be led, want to lead' - that would contradict Theory X's core assumption about human nature. Statement A correctly identifies what Theory X does NOT emphasize.

Multiple choice

Directions: Choose the correct option for the given question:When Maslow's need hierarchy is compared with Herzberg's two-factor theory of motivation, which of the following statements are correct ?

  1. Maslow's psychological needs; security, safety and affiliation or acceptance, represent almost the same meanings as Herzberg's maintenance factor.
  2. Esteem or status is also a part of maintenance factor.
  3. Self-actualization can be compared as a component of motivators as in Herzberg's theory.

  1. (1), (2) and (3)

  2. (1) and (2) only

  3. (2) and (3) only

  4. (1) and (3) only
Reveal answer Fill a bubble to check yourself
B Correct answer
Multiple choice

Directions: Choose the correct option for the given question:

Which of the following is not an element of direction?

  1. Planning and organizing various resources for doing work.

  2. Continuous training activity in which subordinates are instructed to carry out a particular assignment.

  3. Motivation of subordinates to try to meet the expectations of manager.

  4. Maintaining discipline and rewarding those who perform properly.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Direction as a function of management includes supervision, communication, leadership, and motivation. Planning and organizing are separate primary functions of management, not elements of direction.

Multiple choice

Directions: Choose the correct option for the given question:

The organization structure, in which each employee reports to both a functional (or division) manager and to a project (or group) manager, is known as

  1. Strategic business unit

  2. Departmentation by customer

  3. Matrix structure

  4. Departmentation by territory
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Matrix structure is characterized by dual reporting - each employee reports to both a functional manager (based on expertise/skills) and a project or group manager (based on current project assignment). This creates a grid-like structure that allows flexibility in resource allocation. SBU is a separate business unit, while departmentation by customer or territory are single-reporting structures.

Multiple choice

Which of the following is not included in Fayol's fourteen principles of management?

  1. Division of work

  2. Discipline

  3. Security

  4. Unity of direction

  5. Remuneration of personnel
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Security is NOT one of Fayol's fourteen principles of management. The fourteen principles include Division of Work, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest, Remuneration, Centralization, Scalar Chain, Order, Equity, Stability of Tenure, Initiative, and Esprit de Corps. Security is listed as an activity, not a principle.

Multiple choice

The principle, which states that each organisation having the same objective should have only one head and one plan, is called

  1. unity of command

  2. discipline

  3. hierarchy

  4. unity of direction

  5. subordination of individual interest to general interest
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Unity of direction means all activities with the same objective should have one head and one plan. This differs from unity of command (one boss). For example, a marketing department has one plan and head for all marketing activities. The distractor 'unity of command' is about one superior per employee, not unified planning.

Multiple choice

The principle, which states that a subordinate should take orders from only one superior, is called

  1. unity of direction

  2. unity of command

  3. unity of organisation

  4. delegation

  5. decentralisation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Unity of command states each subordinate should receive orders from only one superior. This prevents confusion and conflicting instructions. A person should report to one boss only. 'Unity of direction' is different - it's about one plan for activities with the same objective.

Multiple choice

The unbroken chain of authority from the bottom to the top of the organisation should be short circuited in special circumstances. It refers to the principle of

  1. hierarchy

  2. scalar chain

  3. centralisation

  4. delegation

  5. decentralisation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Scalar chain is the unbroken line of authority from top to bottom. Fayol allowed 'short-circuiting' via gangplank for quick communication between peers at different levels. This maintains authority while enabling fast decisions. Hierarchy is about rank levels, not communication chains.