Fundamentals of Management mcqs with Answers for NTS Test and other tests and Principles of Management mcqs

Fundamentals of management mcqs with answers and principles of management mcqs for nts test and other tests like fpsc, spsc, ppsc,pts, and iba are given in this article.

Here is a complete list of fundamentals of management mcqs for the students and aspirants of different exams.

Principles of Management Multiple Choice Questions (MCQs)

New Management MCQs added on  26-01-2020.

1. The principle that a subordinate should receive the order and be responsible to the only boss is known as_________________.

(a) Unity of Command

(b) Unity of Direction

(c) Span of Control

(d) All of the Above

View Answer

(a) Unity of Command

2. When management pays attention to more important areas and when day to day routine problems are looked after a lower level of management, this is known as____________________.

(a) MBO

(b) Management by exception 

(c) Critical Path Method

(d) Span of Control

View Answer

(b) Management by Exception

3. Superior-Subordinate relationship on the basis of personal likes, dislikes, attitudes and prejudices results in__________________.

(a) Formal Organisation

(b) Informal Organisation

(c) No Organisation

(d) None of the Above

View Answer

(b) Informal Organisation

4. ‘No smoking in the factory’ is an example of______________________.

(a) Policy

(b) Procedure

(c) Rule

(d) Strategy

View Answer

(c) Rule

5. Decentralisation________________________.

(a) increases the importance of superior

(b) decreases the importance of superior

(c) increases the importance of subordinates

(d) decrease the importance of subordinates

View Answer

(c) decreases the importance of subordinates

New Management MCQs added on  24-01-2020.

1. In Maslow’s Need Hierarchy, a healthy work environment is an example of what type of need?

(a) Esteem

(b) Physiological

(c) Social

(d) Safety

View Answer

(d) Safety

2. Which of the following management tasks is most important for a supervisory manager?

(a) Staffing

(b) Planning

(c) Organising

(d) Controlling

View Answer

(d) Controlling

3. All of the following are elements of planning EXCEPT:

(a) Developing Plans

(b) Monitoring Performance

(c) Establishing Strategies

(d) Coordinate Activities

View Answer

(b) Monitoring Performance

4. In order to communicate, motivate and delegate a manager must have___________________.

(a) Interpersonal Skills

(b) Technical Skills

(c) Conceptual Skills

(d) Political Skills

View Answer

(a) Interpersonal Skills

5. In the pyramid level of management, the nom-managerial staff is placed at/in________________.

(a) Bottom

(b) Top

(c) Middle

(d) None of the Above

View Answer

(a) Bottom

1. Which of the following management functions are closely related? 

(a) Planning and Organizing

(b) Staffing and Control

(c) Planning and Control

(d) Planning and Staffing

View Answer

(c) Planning and Control

2. Planning function of management is performed by________________________.

(a) Top Management

(b) Middle Management

(c) Lower Management

(d) All of the above

View Answer

(d) All of the above

3. The famous book ‘The Philosophy of Management is written by________________.

(a) Oliver Sheldon

(b) Henry Fayol

(c) F.W. Taylor

(d) Urwick

View Answer

(a) Oliver Sheldon

4. Management is_________________.

(a) An art

(b) A science

(c) Both (a) and (b)

(d) Neither art nor science

View Answer

(c) Both (a) and (b)

5. To manage “is to forecast and plan, to organise, to command, to coordinate and to control”. These are the words of______________________. 

(a) Koontz and O’Donnel

(b) Henry Fayol

(c) F.W. Taylor

(d) Peter F. Drucker

View Answer

(b) Henry Fayol

6. The control function of management embraces:

(a) Cost Control

(b) Financial Control

(c) Budgetary Control

(d) All of the above

View Answer

(d) All of the above

7. The span of management means____________________.

(a) A good organisation should consist of departments

(b) Authority of each person must be clearly defined

(c) Each Subordinate should have one superior

(d) A manager can supervise a limited number of executives

View Answer

(d) A manager can supervise a limited number of executives

8. Functional type of organisation was first developed by______________________.

(a) Military

(b) F.W. Taylor

(c) Henry Fayol

(d) Elton Mayo

View Answer

(d) F.W. Taylor

9. Staffing function of management needs to be performed________________________.

(a) Only in new enterprises

(b) Only in going enterprises

(c) Both in new and going enterprises

(d) None of the above

View Answer

(c) Both in new and going enterprises

10. Delegation of authority results in_________________.

(a) Avoiding responsibility

(b) Centralization of power at the top level

(c) Costliness of decision

(d) Enabling the managers to distribute their workload.

View Answer

(d) Enabling the managers to distribute their workload

11. Communication can be_________________.

(a) Upward

(b) Downwards

(c) Sideward

(d) All of the above

View Answer

(d) All of the above

12. What is the main objective of the budgeting?

(a) Planning

(b) Co-Ordination

(c) Control

(d) All of the above

View Answer

(d) All of the above

13. In the Herzberg’s Hygiene theory of motivation, the hygiene factors cause________________.

(a) Satisfaction of Employees

(b) Dissatisfaction of Employees

(c) No effect on the satisfaction of Employees

(d) All of the above

View Answer

(b) Dissatisfaction of Employees

14. Who gave the need hierarchy theory of motivation?

(a) Maslow

(b) Herzberg

(c) Vroom

(d) McGregor

View Answer

(a) Maslow

15. Delegation is more often________________.

(a) Upward

(b) Downward

(c) Sideward

(d) All of the Above

View Answer

(b) Downward

16. In the process of delegating authority, the manager’s responsibility will_______________.

(a) Increase

(b) Decrease

(c) No effect on his responsibility

View Answer

(c) No effect on his responsibility

17. Marketing manager may be classified in the category of____________________.

(a) Top-level management

(b) Middle-level management

(c) Lower-level management

(d) All of the Above

View Answer

(b) Middle-level management

18. Effective supervision is an activity of__________________.

(a) Organising Function

(b) Planning Function

(c) Control Function

(d) Direction of Function

View Answer

(c) Direction Function

19. Which principle of management lays stress on teamwork and unity among personnel?

(a) Equity

(b) Order

(c) Esprit de corps

(d) Unity of direction

View Answer

(c) Esprit de corps

20. A leader uses the following methods:

(a) Uses criticism 

(b) Encourages growth

(c) Sets objectives

(d) Gives orders and directions

View Answer

(c) Sets Objectives

21. Management by objectives implies__________________________.

(a) First of all setting objectives at the top

(b) Simultaneously setting objectives at all levels

(c) Setting objectives to maximize profits

(d) All of the Above

View Answer

(a) First of all Setting Objectives at the top

22. A plan, when expressed in qualitative terms, is known as________________________.

(a) Policy

(b) Procedure

(c) Objective

(d) Budget

View Answer

(d) Budget

23. Who wrote the famous book “General and Industrial Management”.

(a) Henry Fayol

(b) Koontz and O’Donnel

(c) Mary Parker Follet

(d) Oliver Sheldon

View Answer

(a) Henry Fayol

24. Process of planning starts with clearly laying down of_______________________.

(a) Policies

(b) Procedures

(c) Goals and Objectives

(d) All of the Above

View Answer

(c) Goals and Objectives

25. ‘Control’ function of management cannot be performed without__________________.

(a) Planning

(b) Organising

(c) Staffing

(d) Motivation

View Answer

(a) Planning

26. Which of the following is the oldest type of organisation?

(a) Functional organisation

(b) Line organisation

(c) Line and Staff organisation

(d) Committee organisation

View Answer

(b) Line organisation

27. The main advantage of line and staff organisation is___________________.

(a) Simplicity

(b) Specialization

(c) Availability of expert advice

(d) Speedy of decision making

View Answer

(c) Availability of expert advice

28. Communication can be___________________.

(a) Oral only

(b) Written only 

(c) Oral as well as written

(d) All of the above

View Answer

(c) Oral as well as written

29. A positive leader is one who motivates people by_______________________.

(a)  Creating fear

(b) Centralising authority

(c) Increasing their satisfaction

(d) Holding the threats of loss of job

View Answer

(c) Increasing their satisfaction

30. ‘Unity of Command’ principle of effective direction means______________________.

(a)  Subordinates should be responsible to one superior

(b) There should be unity amongst the subordinates

(c) There should be unity amongst the superior

(d) A superior can supervise a limited number of  subordinates

View Answer

(a) Subordinates should be responsible to one superior 

31. Henry Fayol is famous for_________________.

(a)  Scientific Management

(b) Rationalization

(c) Industrial Psychology

(d) Principles of Management

View Answer

(d) Principles of Management

31. Henry Fayol is famous for_________________.

(a)  Scientific Management

(b) Rationalization

(c) Industrial Psychology

(d) Principles of Management

View Answer

(d) Principles of Management

32. Who is known as ‘the father of Scientific Management’?

(a)  Henry Fayol

(b) Elton Mayo

(c) Peter F. Drucker

(d) F.W. Taylor

View Answer

(d) F.W. Taylor

33. Who originated ‘Human Relationship Approach’ to the management?

(a)  Henry Fayol

(b) Elton Mayo

(c) Peter F. Drucker

(d) F.W. Taylor

View Answer

(b) Elton Mayo

34. Policy making is an important part of the process of____________________________. 

(a)  Planning

(b) Co-ordinating

(c) Motivating

(d) Organising

View Answer

(a) Planning

35. The main advantage of line organisation is_________________________.

(a)  Well defined fixed responsibility

(b) Simplicity

(c) Expert Advice

(d) Specialisation

View Answer

(a) Well defined fixed responsibility

36. Which of the following is the most democratic form of organisation?

(a)  Line

(b) Line and staff

(c) Functional

(d) Committee

View Answer

(d) Committee

37. Delegation of authority means________________.

(a) Delegation of the only authority

(b) Delegation of only responsibility

(c) Delegation of Both authority and responsibility

(d) None of the Above

View Answer

(a) Delegation of the only authority

38. “Theory X” and “Theory Y” is given by________________________.

(a) Henry Fayol

(b) Maslow

(c) Herzberg

(d) McGregor

View Answer

(d) McGregor

39. Which of the following is motivating factor as per Herzberg’s theory?

(a) Salary and allowances

(b) Job design

(c) Working Condition

(d) All of the Above

View Answer

(b) Job design

40. Delegation of authority results in__________________.

(a) Avoiding responsibility

(b) Centralisation of Power at the top level

(c) Costliness of decision

(d) Enabling the managers to distribute their work load

View Answer

(d) Enabling the managers to distribute their work load

41. Line Organisation is also known as__________________.

(a) formal organisation

(b) informal organisation

(c) functional organisation

(d) military organisation

View Answer

(d) military organisation

42. Control function of management implies:

(a) to bring harmony in various activities

(b) to keep the workforce content

(c) taking up corrective course of action

(d) to provide sufficient finance

View Answer

(c) taking up corrective course of action

43. Staffing function of management comprises the activities of_____________.

(a) selecting suitable persons for positions

(b) defining the requirements with regard to the people for the job to be done

(c) training and developing staff to accomplish their task more effectively

(d) all of these

View Answer

(d) all of these

44. According to ‘Scalar Principle of Organisation’:

(a) a manager can directly supervisor Limited number of people

(b) the line of authority must be clearly defined

(c) Exceptionally complex problems are referred to higher level of management

(d) each subordinate should have only one superior

View Answer

(b) the line of authority must be clearly defined

45. The managerial function of organising is______________.

(a) to review and adjust the plan in light of changing conditions

(b) to establish a program for the accomplishment of objectives

(c) to create a structure of function and duties to be performed by a group of people

(d) to get things done through and with the help of people

View Answer

(c) to create a structure of function and duties to be performed by a group of people

46. The adequate motivation of employees results in_____________.

(a) fostering indiscipline among the subordinates

(b) boosting the morale of the subordinates

(c) decreasing the productivity of subordinates

(d) all of these

View Answer

(b) boosting the morale of the subordinates

47. Expectancy theory of motivation is given by_______________________.

(a) Herzberg

(b) Vroom

(c) Porter and Lawler

(d) Henri Fayol

View Answer

(b) Vroom

48. Theory “Y” states that__________________.

(a) workers to be directed

(b) workers exercise self-direction and self-control

(c) workers have an inherent disliking for work and will avoid it

(d) all of these

View Answer

(b) workers exercise self-direction and self-control

49. The main drawback of functional organization developed by Taylor is that it fails to recognise the________________________.

(a) scalar principle

(b) principle of equity

(c) principle of unity of command

(d) principle of Esprit de Corps

View Answer

(c) principle of unity of command

50. Unity of Command is violated under:

(a) line Organisation

(b) line and staff organisation

(c) functional organization

(d) all of these

View Answer

(c) functional organization

                      Introduction to Business MCQs

                      Accounting MCQs

                      Auditing MCQs

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