CA Foundation Exam June 2023 » CA MCQs » Principles of Management

Principles of Management

MCQs on "Principles Of Management": Find the multiple choice questions on "Principles Of Management", frequently asked for all competitive examinations.

Management is a process that happens in the entire world. It’s a well-known and extensively used term. Management is a part of all organisations, whether they are corporate, political, cultural, or social because it is management that assists and directs multiple activities toward a common goal. Management principles are logic-based declarations of the basic truth that serve as standards for managerial decision-making and conduct. These principles are derived: 

  1. Through observation and analysis, i.e. from managerial experience.
  2. Through the use of experimental investigations.

According to Henri Fayol, there are 14 management principles.

MCQs (Multiple Choice Questions)

1. Pure science principles are rigid, whereas management principles are relatively________.

    1. Contingent
    2. Dependent
    3. Flexible
    4. Absolute

Correct Answer: C

Explanation: Management principles are said to be flexible since they may be changed by the management as circumstances dictate.

2. Which of the following do management functions include?

    1. Directing
    2. Controlling
    3. Planning and Organising
    4. All of the above

Correct Answer: D

Explanation: The core management duties of planning, organising, staffing, directing, and controlling are all considered ongoing activities in management. To accomplish the intended corporate goals, managers must execute all of these duties.

3. Who is referred to be the “Father of Scientific Management?”

    1. Henry Fayol
    2. Robert Owen
    3. Fredrick W. Taylor
    4. None of these

Correct Answer: C

Explanation: Frederick Taylor is known as the “Father of Scientific Management” because he proposed that plant managers utilise scientific methods to complete tasks to obtain the greatest results.

4. What does MOST stand for?

    1. Maximum Output Strategy Tools
    2. Mission, Objectives, Strategies and Tactics
    3. Machinery, Office, Staff and Technology
    4. Manager, Operator, Seller and Trader

Correct Answer: B

Explanation: The foundation that supports and allows a firm to achieve its aim is its mission, objectives, strategies, and tactics. A company’s mission statement comes first, followed by its objectives, strategies, and lastly tactics; from the broad to the specific.

5. Formulation of MOST is done by:

    1. Workers
    2. Managers
    3. Government
    4. Trademark

Correct Answer: B

Explanation: Managers create MOST to help them coordinate all of their efforts so that they are all moving in the same direction.

6. What are functional managers responsible for?

    1. They are only responsible for a single area of activity
    2. They hold the responsibility to the upper level of management and staff
    3. They are responsible for complex organisational sub-units
    4. They hold the responsibility of obtaining copyrights and patents for newly developed processes and equipment.

Correct Answer: A

Explanation: A functional manager oversees and controls the resources in a certain department, such as IT, engineering, public relations, or marketing, and typically directs the technical work of those working on the project from that functional area.

7. Who published the book ‘The Psychology of Management’?

  1. Henry Fayol
  2. Robert Owen
  3. F.W. Taylor
  4. Lillian Gilbert

Correct Answer: D

Explanation: Lillian Gilbreth’s book The Psychology of Management examines the psychological elements of scientific management, including notions of human interactions and worker uniqueness in management principles.

8. Which of the following is, NOT a manager’s informative role?

    1. Disseminator’s  role
    2. Spokesman role
    3. Monitor’s role
    4. Disturbance’s handler role

Correct Answer: D

Explanation: Managers are responsible for gathering, disseminating, and transmitting information, and they have three informational roles: monitor, disseminator, and spokesman.

9. Understanding the relationship between human and material resources in achieving organisational goals is aided by the Principles of Management. Which element of the Management Principles is described in the above statement?

    1. Use of resources and effective administration
    2. Cause and effect relationships
    3. Behavioural
    4. None of the above

Correct Answer: C

Explanation: Because it emphasises the human aspect of work, behavioural management theory is frequently referred to as the human relations movement. Behavioural theorists felt that a greater knowledge of human behaviour at work, such as motivation, conflict, expectations, and group dynamics, would result in increased productivity.

10. The Management Principles emphasise rational decision-making and the avoidance of bias and prejudice at all costs. Knowledge of these concepts aids in _______, as stated in the preceding paragraph.

    1. Providing important information to the managers
    2. Helping meet the evolving needs of a business environment
    3. Scientific decision making
    4. All of the above

Correct Answer: C

Explanation: Administrators who understand management concepts are better able to understand the cause and effect link between things at work in the organisation. They can encourage critical thinking and decision-making that is objective and scientific.

11. Which Scientific Management Principle states that employees should be rewarded for making proposals that result in cost reductions for the company?

    1. Harmony not discord
    2. Science, not a rule of thumb
    3. Cooperation not individualism
    4. All of the above

Correct Answer: C

Explanation: Cooperation, not individualism, is the way to go. This idea demands that labour and management should work together completely. In making decisions, management should also consult labour. Strikes should never be taken by workers.

12. When their manager is out from the office, a worker tells how his co-workers leave business documents on the reception desk and personal stuff in the conference room. What impact would this have on a company’s operations?

    1. The firm would be unable to execute its tasks in a timely manner.
    2. The firm would be unable to properly execute its tasks.
    3. a and b are both valid.
    4. a and b are both wrong.

Correct Answer: C

Explanation: In such a case, the firm would be unable to execute its tasks properly in a timely manner.

13. According to Henri Fayol, which of the following is true of discipline?

    1. Penalties are properly applied.
    2. Superiors at all levels of an organisation who are always clear and fair 
    3. Agreements between two parties that are always clear and fair
    4. All of the above

Correct Answer: D

Explanation: Discipline encompasses sincerity, obedience and respect for authority. Additionally, it comprises following of the enterprise’s norms and regulations, according to Fayol. This concept states that subordinates should respect and obey their superiors’ orders.

14. The principles of division of labour may be used to a government office where a diary/dispatch clerk receives and sends mail, and a data entry operator enters data into a computer. Division of labour also applies to limited companies with different divisions such as production, finance, research & development, and so on. Which aspect of management principles is highlighted above?

    1. General Guidelines
    2. Universal applicability
    3. Flexible
    4. Contingent

Correct Answer: B

Explanation: Universal applicability means that the principles may be applied to any form of business. Their applicability, however, differs depending on the scenario.

15. The degree to which power is concentrated or dispersed depends on the context and circumstances of each business. The principles provide the manager considerable leeway to adapt to changing circumstances. Which of the management principles is emphasised above?

    1. General Guidelines
    2. Universal applicability
    3. Flexible
    4. Contingent

Correct Answer: B

Explanation: The notion of universal applicability suggests that principles may be used to any type of business. Their application, on the other hand, varies depending on the situation.

16. Although management principles may not give a ready-made solution to all problems, a manager may stress the primacy of the organization’s aim in dealing with a scenario of conflict between two departments. Which of the management principles is emphasised above?

    1. General Guidelines
    2. Universal applicability
    3. Flexible
    4. Contingent

Correct Answer: A

Explanation: The term “general guidelines” refers to the fact that these principles are not rigid and cannot be applied in the same way in every case. They are only suggestions.

17. Employees are entitled to fair and reasonable remuneration, but what constitutes just and fair remuneration is decided by a variety of variables. They include the employee’s contribution, the employer’s payment capacity, and the current salary rate for the occupation in question. Which aspect of the Management Principles is highlighted above?

    1. General Guidelines
    2. Universal applicability
    3. Flexible
    4. Contingent

Correct Answer: D

Explanation: Contingent means ‘dependent on circumstances.’ A management concept can be changed depending on the context.

18. Management Principles improve management efficiency by allowing managers to delegate regular decision-making to their subordinates and deal with unexpected events that demand their knowledge by following the Delegation Principles. What does the aforementioned scenario mean in terms of management?

    1. Meeting changing environment requirements
    2. Providing managers with useful insights into reality
    3. Fulfilling social responsibility
    4. Management training, education and research

Correct Answer: B

Explanation: Management concepts aid managers in gaining a better knowledge of current company conditions.

19. Even a little industrial job, such as putting iron pigs onto boxcars, may be planned and handled properly. This can save a lot of human energy while also wasting a lot of time and materials. Which of the following principles should management highlight if the scenario is as described above?

    1. Harmony does not discord
    2. Science not Rule of Thumb
    3. Initiative
    4. Development of each individual to their maximum efficiency and success

Correct Answer: B

Explanation: Science, Not Rule of Thumb.  Taylor claims that there is only one way to maximise efficiency. This approach may be built with sufficient research and analysis. ‘Rule of thumb’ should be replaced with this approach. This idea tries to identify the most efficient way to do a task while also increasing human efficiency.

20. Which of the following scientific management techniques has the goal of determining the quantity of staff to be hired: Frame appropriate incentives schemes and calculate labour costs?

    1. Differential piece wage system
    2. Time study
    3. Functional foremanship
    4. Simplification of work

Correct Answer: B

Explanation: Time Study: This method calculates the average time required to complete a specific task. It is possible to determine the following: amount of staff to be hired, incentive programmes, and labour costs.