O&M True or False-All Chapters

8/12/2019 O&M True or False-All Chapters

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15. True or False questionsControl:1. Control functions a re intended to ensure that no body makes an y mistakes in the organisational

processes.

False: Control is intended to ensure that planned performance is equal to actual performance. Italways helps a manager to focus attention on what is going on in the organisation and helps tocompare ongoing activities w ith pre-determined activities.

2. Control is an intellectual exercise w hereas p lanning is an administrative function.

False: Planning is a n intellectual exercise a nd control is ac tion and result oriented one.

3. Planning an d control are t wo sides of the sam e coin.

False: Planning and control are the two processes which enable the organisation to achieve itsobjectives. Together, they create a n order f or th e o rganisation.

4. Control by exc eption is n ot a healthy organisational principle.

False: Control by exception is widely practiced by many managers in the organ isation. It means t hatmanagers at each level should pay attention only to exceptional an d signicant deviations fromplanned resu lts. They need n ot consider deviations of unimportant matters an d processes.

5. Top level managers alone need MIS.

False: Managers at all levels n eed MIS. Without correct information it is n ot possible for an y manager,at an y level, to m ake an y decision.

6. Controls sh ould be exible.

True: If controls a re to remain effective, they m ust be exible. For exa mple, instead of establishing budget for one level of activity

7. MIS is desi gned only to transmit information from one m anager to another.

False: MIS is an organisation wide arrangement whereby relevant information needed by managers atany level for d ecision making and other r elated purposes is gen erated, stored and made available tothem. Such information will be p rovided to ex ternal parties t o a lso.

8. Zero based budgets ar e worked out as if a program was st arted from scratch.

True. Budget for each activity is n ot based on some increase/decrease o f previous years b udget bu t based on, as if an activity is

that are va riable.

9. Marginal analysis i s t he com parison of additional revenues a rising from additional costs.

True: If the objective is to get maximum prots, at least add itional revenue should be equal toadditional costs.

10. Break-even analysis i s p ossible even without the u se of breakeven chart.

True: Break-even analysis i s a tool of cost-volume-prot an alysis o f a company. Break-even point can be calculated with the help of a formula

11. Budgets a re h ighly inexible.

False: Budgets can be classied as exible and xed. Fixed budgets are prepared on the assu mptionof single level activity where as exible budgets are prepared on the assumption of a range of

variations in the level of act

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12. The premises of Zero Base Budgeting and traditional budgeting are basically

False: For the preparation of ZBB, we h ave to start from scratch. On the other ha nd the traditional budget is always prepared on the basis

13. Total Sales Revenue (TR) = Prot (P) (Total Fixed Cost + Tot

False: The correct equation is, P = TR (TFC + TVC)

14. Management audit makes cr itical review of the quality of management.

Partially true: This st atement is partially true. Management au dit generally aims a t evaluating themanagerial processes. It involves auditing of decision making process and effective utilization ofscarce resou rces o f the o rganisation.

15. PERT is an acronym for Performance Effectiveness Review Technique.

False: PERT stands for Programme Evaluation and Review Technique.

16. CPM stands for Critical Performance Management.

False: It stands for C ritical Path Method.

17. Management Audit is n othing but appraisal of Financial Performance of the organisation.

False: Management audit helps u s to know whether the organisation is ach ieving its ob jectives or not.It al so helps u s t o know the effective u tilization of scarce r esources. Management au dit also includesevaluation of managerial decision making and its effectiveness. Thus m anagement audit is m ore thannancial appraisal.

Decision Making:1. Maintenance of Machinery is a Prog rammed decision.

True: A Programmed decision is applied to routine problems. Maintenance team will have a sched uleof maintenance of machines an d it is given to them well in advance. Thus it is a p rogrammed decision.

2. Qualitative factors n eed not be con sidered in decision making because t hey ca nt be built intoQuantitative Analysis.

False: Qualitative factors can t be measured in numerical terms but in making a d ecision they sh ould be considered. For example, a well formulated markete

long transportation strike.

3. All management decisions require research and analysis.

False: Decisions of less importance do not require research and analysis and they can be safelydelegated also. For exam ple, if an employee com es l ate to office, even after w arnings, boss ca n straightaway treat i t as half a day or on e d ay leave a ccordingly.

4. When a decision is made, planning process comes to an end.

False: When a decision is m ade, planning is n ot complete b ecause i t is n ecessary t o p repare d erivativeplans, to su pport the basic plan.

5. Not much judgement and discretion are needed t o implement a programmed decision.

True: These d ecisions a re w ell structured in advance a nd are regu larly t ested for va lidity. For exa mple,there i s a p rocedure for recei pt of materials, payment of bills, release o f budgeted funds et c., which donot require m uch judgement.

6. Decision making could be programmed even to complex problems.

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True: Programmed decisions are n ot only su itable for simple p roblems b ut also for com plex problems.For example, resource allocation decision can be programmed by means of sophisticated,mathematical / stat istical t echniques.

7. Strategic decisions are i n a way com parable to Non-programmed decisions.

True: Strategic decisions a re those which always h ave sever e implications (Generally made to beat a

competitor). Non-programmed decisions are those which are not made frequently and are taken toreact to a change in the external environment. Both these types of decisions are made underconditions of uncertainty and partial knowledge or i gnorance. In this way b oth are com parable.

8. In some cases creat ivity will not be of much help.

True: For exa mple, if some d ecisions a re t o be m ade quickly, to get over som e u rgent crisis, creativitymay fail and may even be counter - productive. Here decision maker n eeds the presence of mind andcommon sense at a sn apshot. Creativity is a t ime taking process.

9. Before problems can be solved they must be found.

True: Organisations sh ould determine which situations re present problems a nd which of these probl ems

should be sol ved & in which order. Decision making process st arts with identication of the prob lem.10. A manager should decide on every problem that arises in the daily course of business.

False: A manager should not concentrate on all problems. It is important to set priorities amongproblems and to give responsibility to subordinates for solving minor problems. Managers mustpractice d elegation of authority for m inor p roblems.

11. A variable budget includes only variable costs.

False: A variable budget gives details of Revenues and costs for different levels of act ivity. Whenproduction decreases o r increases b elow or ab ove some level, some xed costs (sometimes variablecost per unit also) may d ecrease or i ncrease w hich should be con sidered for pro t planning.

12. Timeliness and quality of decisions are related.

True: Managers m ust always try to achieve an appropriate balance between timeliness an d quality ofdecision. To achieve b est results, decisions sh ould be m ade a t the ri ght time.

13. Decisions can be m ade on ly u nder conditions of uncertainty.

False: Decisions ca n be made u nder an y situation, roughly three si tuations viz., under con ditions ofcertainty, under con ditions o f risk, and under con ditions o f uncertainty.

14. Decision making is m ore of an art than science.

False: Decision making is more of a science than an art. The innovations made in ManagementInformation Systems has m ade the decision making process m ore scientic.

15. Creativity i s a divine g ift.

False: Creativity can be stimulated and developed through proper training. Knowing different ways ofthinking will help to make creat ive d ecisions. Thinking differently is n ot an inborn quality. It can belearned.

16. Many organ izational problems are n ot amenable to rat ional approaches.

True: Decision making cant be com pletely rational. Just because of t hese reasons, managers areexpected to be more creative and adopt n on-traditional ways of thinking, to achieve the desired

organisational objectives.17. Brain storming m eans i ndividual thinking towards a creative sol ution.

False: Brain storming is a m ethod of generating creat ive ideas i n group sessions, for sol ving problems.

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Group Dynamics:1. When individuals come together groups come into existence.

False: Collection of individuals d oes n ot become a group. Groups com e into existence only when thecollection of individuals is a ble to put a common objective, develop inter-dependence a nd interactionamong themselves.

2. In organisations, groups can be classied as sm all and large gr oups.

True: There are se veral ways in which groups can be categorized. One among such classication issmall groups and large groups. On the other hand, they can also be categorized as primary &secondary, formal and informal groups.

3. Informal groups an d informal organisations ar e one an d the sam e.

False: An informal group is a nucleus o f informal organisation. An informal organization is a networkof several overlapping informal groups. In fact an informal organisation is a larger en tity co nsisting ofall informal groups i n an organisation.

4. There are two dimensions of group behaviour.

True: There are two dimensions of group behaviour i.e. intra-group behaviour and inter-group behaviour.

5. People a re con cerned with their st atus in the organ isation .

True: Status in the organ isation satises t he ego need of people. Hence, people look for m ore st atus inthe organisation.

Organising:1. Span of control will be less f or a n industry l ike el ectronics.

True: As the technology improves, subordinates should be properly trained. Thus, a espend relatively m ore t ime with each subordinate, leading to lesser spa n of control.

2. Each employee in an organisation should have only one boss.

True: This is nothing but concept of unity of command. In Authority, in superior-subordinate relations, unity of command is to be followed. For exam ple, if an employeereports t o two b osses, confusion may a rise.

3. Smaller span of management is always advisable.

True: Span of management denotes the number of subordinates which a manager can directly

control. If there is only small number of subordinates then he can effectively supervise theperformance of the su bordinates.

4. Span of Management and conict are related.

When the span of management is large, a manager has to supervise more number of subordia When more number of subordinates are there, interpersonal rel

relationships among subordinates will also arise. Because of these factors, conicts are b ound toarise. Hence in order t o avoid conicts, it is al ways b etter t o h ave n arrow span of management.

5. Formal organisation must be exible.

True: Formal organisation should not be ri gid. It should promote optimal utilization of resources.

6. Lesser t he sp an of control more sh ould be t he d egree of delegation.

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False: Delegation is a p rocess by w hich a manager can assign some of his tasks to his su bordinatesso that su bordinates ca n exercise authority on behalf of superiors. Through this, the authority ofsuperior is not reduced but sha red with subordinates. Delegation of au thority only decreases the

workload of superior.

19. Delegation is a m eans for management development.

True: Through delegation employees at lower level can improve their management skills. For examplea lower level employee can improve his decision making skills. Automatically managementdevelopment takes p lace.

20. Manager can not delegate his en tire au thority.

True: A manager ca nt del egate his en tire authority. He h as to retain some authority, to do certainthings w hich can be d one by him only. For e. g. authority to set goals, authority for al location of tasks,authority of coordinating individual efforts et c. must be retained by the sen ior m anagers.

21. Responsibility ca n never be d elegated.

True: Authority alone ca n be delegated but n ot r esponsibility. If a junior l evel manager i s n ot ab le to

produce results, the responsibility for t he sam e sh ould be borne by th e sen ior level managers.22. Authority can be delegated to anybody in

False: Before delegating authority, the nature of job to be done, managerial an d psychologicalmaturity of the person to whom the au thority is delegated must be ser iously considered.

23. Accountability and responsibility

True: Generally this st atement is true. But some management experts are differentiating these twoconcepts. Accountability is dened as managers personal an swerability to his position whereasresponsibility is th e o bligation of a person for th e s uccessful completion of his d uties.

24. A non-delegating manager will be more effective.

False: A non-delegating m anager n ot only redu ces h is effectiveness b ut also fails t o develop and utilisethe com petencies of his su bordinates. Absence of delegation may demotivate the su bordinates.

25. Authority vested in a manager should be equal

True: If au thority is not eq ual t o responsibility, t hen a manager cant fulll h is responsibilitieseffectively. At any cost authority should not be less t han responsibility and vice versa. Authority andresponsibility sh ould be co-extensive or c ommensurate with each other.

26. Authority is the base for a

True: Without authority even a single position cant be created in the organisation. Thusorganizational positions co me into ex istence o nly is a uthority is injected into th em.

27. Effective au thority depends on the consent or acceptance of people.

True: A manager h as a uthority t o t he ext ent, his su bordinates accep ts i t or ob eys i t. For som e re ason or ot her,if subordinates ref use t o co mply with their m anagers ord ers t hen he w ill not be a ble t o u se t hat au thority.

28. Organizational chart is a t wo dimensional model of organization structure.

True: Organizational chart sh ows both horizontal act ivity structure a nd vertical au thority structure. The horizontal structure explains how various act

integrated. On the other hand vertical dimension explains how formal authority ows from top to bottom and how managerial decisions are related

29. Organizational chart is al ways vert ically diagrammed.

False: In fact charts ca n be diagrammed in three different ways. They are vertical, horizontal, andcircular.

30. Informal organization is a lso d epicted in the orga nization chart.

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False: Organisational chart c an show formal organisational structure only. It cant show informalstructure.

31. Inuence i s a lways b acked by organisational authority.

False: Inuence is always b acked up by individuals com petency and his ab ility to use t he resources.Inuence is m ultilateral (=depends on many factors). Authority plays a very small role in enhancing

the inuence of managers.

32. Line an d Staff dichotomy is obsolete.

True: It i s m eaningless to segregate organizational act ivities on the b asis o f their con tribution to thegoals of the organization. Line and staff collectively contribute to the achievement of organizationalobjectives and hence the role of line and staff managers is jointly needed for the achievement oforganisational objectives.

33. Staff experts are gen erally professionals.

True: Staff experts a re t rained to be sci entic, objective a nd analytical. They look at prob lems from adifferent angle. Thus t hey a re prof essional.

34. Functional Authority is a small slice o f the a uthority of a line su pervisor.

True: If an accounts cl erk has applied for leave, it has to be san ctioned by the p ersonnel department.Generally accounts clerk reports to the a ccounts chief. But, a slice o f this l ine a uthority is sh ared bythe personnel manager. This authority exercised by the personnel department is called functionalauthority.

35. Functional authority is of permanent nature.

False: Functional authority is a partial line authority sliced from them and handed over to anotherline or st aff manager, belonging to different department, for carryi ng out specic tasks. After which itis taken back.

36. A staff manager never enjoys line authority.False: Staff managers en joy line au thority over his su bordinates. For example, an accounts m anagercan give instructions t o th e a ccounts su pervisor t hus creat ing su perior su bordinate rel ationship.

37. Staff manager ad vice is m erely aca demic an d intellectual in nature.

False: Because this is on ly the argument of line managers who have conict with the staff.

38. Effectiveness of both line an d staff depends u pon the ser vices an d existence of each other.

True: Both line and staff functions sh ould not clash. They should be complementary to each other. They are interdependent. This condition is necessary

39. The need for departmentalization arises once an organisation grows to size beyond the direcmanagerial capability o f a single i ndividual.

True: In a small organisation, owner can directly supervise all the a ctivities. But as th e organisationgrows, he has to differentiate activities, add new activities, arrange them in such a way th at t hey arecomplementary to each other and contribute to organisation goals. Moreover, the number ofsubordinates which a boss can manage is limited. So, i t is necessary to create more levels ofmanagement and departmentalization of activities.

40. Departmentalisation is n ot a very i mportant step in the design of an organisation.

False: For designing any structure, depa rtmentalization is an important st ep. It is a process ofdividing a nd sub-dividing organisational activities i nto task s a nd jobs.

41. Departmentalisation is d one on ly on the basis of products.

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False: The major ba ses or f orms of departmentalisation are: function, process or equ ipment, product,customer and geograph ical locations. Product form is only one among them.

42. Every form of departmentalization has got its own disadvantages.

True: Every form of departmentalization has got i ts own advantages an d disadvantages. That is why business organisations generally fo

be combined, depending on the convenience.

43. One way of departmentation for edu cational institution is cu stomer dep artmentation.

True: Educational institutions offer regular and extention courses to serve different groups ofstudents. For example, IIMs offer different sp ecializations like nance, m arketing etc. in theirmanagement courses t o cater to the different needs of students.

44. Decentralisation and delegation are rel ated to one o ther.

True: Decentralisation occurs w hen delegation is d one to th e lowest possible ext ent.

45. Decentralisation is a lways preferable th an that of centralisation.

False: Universally this st atement cant be accepted as true. It depends on the nature of business,products being manufactured, geo graphical d ispersal of o rganisational a ctivities, ava ilability ofcompetent managers in organisation etc.

46. In a project structure a project manager h as absolute and total au thority over the functions ofpersonnel drawn from the head offi ce.

False: A project manager h as l ittle or n o direct authority over h is team members. He has t o exercisehis personal inuence and expertise to get things done. The authority lies with functional heads a tthe head office.

47. Project structure is a temporary structure.

True: The term project is dened as a unique, complex, cluster of activities designed around aparticular t ask which is to be completed within a time frame. As soon as the project is over, thisstructure is d ismantled. Hence p roject structure is a t emporary st ructure.

48. The project manager has got direct author

False: In projects, coordination and cooperation is very much required. Hence a project manageralways a cts a s a facilitator an d coordinator. He always tr ies t o built a good team around himself. Tofacilitate this, authority is equally and rationally shared.

49. Matrix structure i s a rrived by super-imposing functional structure o ver p roject s tructure.

False: In fact, Matrix organisation structure i s a s uper i mposition of project structure over f unctionalstructure of the orga nisation.

50. Matrix form of structure i s su itable for p rojects of one time n ature.

False: Matrix form is also su itable for progr ammes of regular an d permanent nature.

51. In organizations au thority ows m ulti-directional.

False: Authority ows from top to bottom i.e. unidirectional.

52. Power and authority are one an d the same.

False: Power i s the ability of a person to inuence th e activities o f others. Whereas authority lies i nformal organisational positions. With this, manager can inuence the behaviour an d compliance fromtheir su bordinates.

53. In a free form structure t here i s a cl ear d enition of goals an d tasks a re p redetermined.

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False: In this form the t ask and authority roles an d relationships a re n ot well dened. Members freelymove from one job to another job. There are few job descriptions. Even if they are present they are

broadly dened and designed.

Motivation:

1. Most of the jobs k ill peoples m otivation.False: Jobs can be designed in such a manner to originate motivation among employees. Jobenrichment is also an attempt to make jobs m ore interesting to the employees.

2. Economic incentives al one will motivate people.

False: Recent studies h ave proved that econ omic incentives alone are not the motivating factors. Atmaximum they can be considered as m aintenance factors. The type of job, the chances for personalgrowth are s ome factors t hat may m otivate the people.

3. Need Hierarchy theory explains how incentives affect human behaviour.

False: Need Hierarchy theory explains how needs inuence human behaviour.

4. Abraham Maslow classied human needs into three major types.

False: Abraham Maslow has identied ve types of needs that might arise within an individual. Theve t ypes o f needs i dentied by h im are, physical, security, social, esteem & self-actualization.

5. Maslow stated that people give m ore importance to h igher needs.

False: He has stated that peop le give m ore importance to lower level needs rst and then proceed tohigher level needs i n a con sequential manner.

6. Satised needs cea se t o be a m otivator.

True: Once a need is sa tised it cant motivate t he b ehaviour of individuals.

7. Herzberg has p rofounded ERG theory of Motivation.

False: Clayton Alderfer is the person who has profounded the ERG theory. The ERG starts forexistence needs, relatedness n eeds a nd growth needs.

8. Maslows theory and Herzbergs theory centres around the human needs.

False: Whereas Maslows theory speak s about human needs, Herzbergs theory tries to identify twodifferent set of factors that could be present in any job which may show inuence on the jobperformance.

9. Rewards can exi st in many forms.

True: Rewards can exist in many forms such as monetary, fringe benets, promotion, praise,recognition etc.

10. Punishment has o nly deterrent (=correction) properties.

False: Punishment has b oth deterrent and corrective propert ies. The purpose of punishment is on lyto arrest or decrease th e u nacceptable behaviour of job holders.

11. Employee part icipation must be made mandatory, then only it would be effective.

False: The idea of inculcating (=involving) employees in the decision making process must come voluntary on the part of management. Then only participation of p would be effective.

12. Maslows theory of hierarchy of need s say that l ower n eed is to be satised before sa tisfying ahigher need.

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True: Maslow arranged human needs in the form of a h ierarchy, ascending from lowest to the highest. According to him when one need is satised, i

unless a lower l evel need is sa tised, a higher n eed will not ari se.

13. Money is t he m otivating force t o get bet ter r esults from employees.

False: It is n ot t he force, but it is one a mong many motivators. If it is th e only motivating factors,

higher p ay packs will automatically bring better r esults and managing involves just increasing paypacks. Th e other m otivators co uld be recognitions, free holiday trip etc. Each employee will getmotivated due to different factors in different circumstances. A good manager is one who recognisesand identies t his, to obtain best performance from his em ployees.

14. The stick in the carrot and sti

True: Stick is a form of fear. It m ay be fear of l oss of job, demotion etc. Threat m ay be u sed to getthings d one but it is n ot the best form of motivator. Thus, stick can also take the form of motivatordepending upon the place, time, person and circumstances.

15. Absence of hygiene factors increases dissatisf

True: In the two-factor m otivation theory of Herzberg, the p resence o f hygiene factors l ike sa lary, jobsecurity et c., contribute to p revention or r eduction of dissatisfaction among em ployees. The a bsence ofhygiene factors cau ses or i ncreases d issatisfaction among em ployees w ith their job.

16. Opportunity for gr owth is a nancial incentive.

False: Opportunity for grow th is a psychological incentive. It is a motivating factor r ather t han amaintenance factor.

17. MBO is a technique.

True: In most of the organisations MBO is being treated as a management technique. However, theoriginator of MBO, Peter Drucker c alls it as a p hilosophy of management.

18. In MBO, management sets-forth the objectives u nilaterally.False: MBO focuses p articipative processes in setting work rel ated go als of management at al l levels.

19. Once M BO is introduced, the subordinate m anager will not have m uch autonomy.

False: Once MBO is introduced, the subordinate manager will have sufficient autonomy to managehis own work unit. In MBO system managers ar e held accountable for the results expected from them.

20. MBO meets the basic and security needs of managers.

False: MBO meets on ly the h igher level needs of the m anagers. To be very specic it meets t he esteemand sel f-actualisation needs of managers.

21. Once MBO is introduced, managers will not have any control over their performance.

False: The greatest advantage of MBO is that it makes possible for a manager to gain and retaincontrol over h is o rganisational performance.

22. Once MBO is introduced there will be dichotomy between corporat e goals & sub-system goals.

False: Once MBO is introduced there will be more com patibility between overall organisational goalsand the sub-system goals.

23. Letting su bordinates t hemselves t o set their goals is on e of the key st eps in MBO.

False: In MBO subordinates lay down their goals. It does not mean that subordinates can do whateverthey want to do. Superiors must listen to and work with their subordinates an d at the end they musttake the responsibility of approving su bordinates go als.

24. In a free form structure there is a cl ear d enition of goals an d tasks a re p redetermined.

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False: In this form the t ask and authority roles an d relationships a re n ot well dened. Members freelymove from one job to another job. There are few job descriptions. Even if they are present they are

broadly dened and designed.

25. Theory X and theory Y explains all possible needs that might aris

False: Theory X and theory Y explains two alternatives, contrasting set s of assumptions ab out nature

of peop le at w ork. It t alks about n egative a nd positive perceptions that m anagers a re likely to haveregarding th eir su bordinates.

26. Theory X implies hard management and Theory Y implies soft management.

True: An effective manager recognizes the dignity and capabilities as well as the and adjusts h is behaviour according to situation. This is theory Y which is soft management. Theory

X says that workers do not have initiative and inmachines. This is hard management.

27. Theory X and theory Y are in opposite extremes on a continuous scale.

False: They differ only in degree and they are not completely different views of people. Therefore,people who follow theory X may also ap ply some asp ects of theory Y.

28. Motivation and satisfaction are t wo d ifferent things.

True: Motivation refers to the drive and effort t o satisfy a want or g oal. Satisfaction refers t o thecontent experienced when a want is sat ised.

29. Morale is a ph enomenon embedded in a group of people.

True: Morale is an indicator of groups emotional hea lth & enthusiasm. It is the result of socio-emotional associations an d attitudes which members of any group develop towards each other.

30. Motivation and morale are two different words for the same phenomenon.

False: Motivation reects an individuals stat e of disposition whereas m orale explains th e st ate ofsituation of a grou p. Morale exp lains the why of an individual behaviour whereas m orale exp lains thewhy of groups beh aviour and performance.

31. Morale a nd job satisfactions a re n ot related concepts.

False: Morale and job satisfaction are closely related to each other. Many factors which inuencemorale of the group and job satisfaction of an employee are common.

32. Motivation and job satisfaction have circular r elationships.

True: Job satisfaction can create motivation for good performance and good performance in a jobalways creates j ob satisfaction. Hence t hey h ave ci rcular rel ationship.

Lea ers!ip:

1. Leaders are born .

False: Leadership abilities cou ld be taught and could be learnt. A recent research in management hasproved that leadership abilities can be improved in managers through proper training & effectivecoaching.

2. Leadership is a m otivational process.

False: Leadership is an inuence process. Acceptance of leadership depends on the extent to whichsubordinates are i nuenced by their leaders.

3. Leadership is a br oader concept than management.

True: Leadership is broader than management because it is based on the leaders personal ability toinuence the subordinates behaviour. The boundaries of leadership are much larger than that ofmanagership.




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4. Great man theory ha s n o scientic basis.

True: Greatman theory h as no em pirical validity. It is m ore sp eculative than analytic.

5. Trait theory of leadership

True: Trait theory is a modication of Great m an theory. According to this theory, leaders a re not

born and leadership qualities could 6. Possession of all leadership qualities w ill guarantee su ccess i n a b usiness.

False: The possession of all leadership qualities ca n only increase th e probability of success of anymanager. Success i s always related to the appropriate handling of a situation. Leadership qualities

will only help the managers to cope wi

7. Trait theory of leadership

True: This theory has very few explanatory and predictive properties. It d oes not h ave empiricalsupport.

8. Researchers i n leadership has identied that t here a re t wo types of orientations w ithin leaders.

True: The two orientations that managers may have are task orientation and relationshiporientation. These two orientations alone determine the quality of leadership style that a managercan practice.

9. Task oriented leader believes

True: Since t ask oriented leader w ill be m ore i nterested in getting th ings d one, he will always prefer t ohave close supervision over his subordinate. Such manager will rely more on his organisationalauthority.

10. Relationship oriented leader is m uch concerned about harmony in work environment.

True: Relationship oriented managers will be more interested in maintaining warm, personal &

friendly rel ations w ith others.11. Autocratic leader remains sociall

True: Autocratic leader assu mes that h e derives his authority solely from his position in theorganisation. Since he decides everyt hing and does n ot allow any role for h is su bordinates in thedecision making process, he always re mains soci ally aloof from the grou p.

12. Laissez Fa ire st yle of leadership bothers m uch about adherence t o ru les an d regulations.

False: This st yle of leadership allows su bordinates t o do whatever t hey like. The leader w ho practicesthis s tyle neither i nspires n or a ttracts his followers.

13. Bureaucratic st yle of leadership is h ighly p ersonal.

False: This style is highly impersonal. The leader who practices this styles, functions in terms ofestablished rules, procedures a nd policies. In this st yle th ere i s m ore em phasis on activity than onachievement.

14. Neurocrat ic st yle is h ighly democratic.

False: Neurocratic m anager ad opts h ard driving, high pressured tactics t owards directing himself as well as his group members. Such managers do not leave any thing to chance and he wil

supervise his group members.

15. Participative st yle of management is m ore beh avioural oriented.

True: Participative type of manager p laces lot of faith on the com petence of his su bordinates an d he

allows them to take part in the decision making process, wherever possible. In this way we can statethat p articipative styl e i s m ore b ehavioural oriented.

16. Managerial Grid depicts ve styles of management.

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True: Managerial Grid depicts the following ve styles of management.

1. Impoverished leadership 2. Country-club leadership 3.Task leadership

4. Middle-of-the-road leadership 5. Team leadership

17. Four systems of management model was developed by Rensiz Likert.

True: Rensiz Likert is the au thor of four systems of management. The four systems are:System (1) ..... Exploitative-authoritative

System (2) .. Benevolent-authoritative

System (3) .. Consultative

System (4) .. Participative-democratic

18. No leadership style c an generally a pply to a ll situations.

True: Depending on the requirements of the situation, the style has to be selected. No style willuniversa lly apply to all situations.

19. A supervisor is always in a position of a .

True: He is always pressed by his managers an d also by his su bordinates. He is an swerable to themanagement for getting jobs done through his su bordinates an d at the same time he has to meet thedemands of his su bordinates.

Lea ers!ip:1. There are different types of Organisations.

True: Organizations could be categorized as economic, educational, administrative, cultural, social,religious, po litical, prof essional an d military organizations. F urther they can also be classied asprimary an d secondary or ganizations.

2. Organisations cou ld be distinguished in terms of primary an d secon dary organ isations. True: When members of the organisation are emotional and personally involved then it becomes a

primary organisation. E.g. Family. When the members are m ore rat ional and role-oriented then thatorganization becomes secondary or ganisation.

3. Organizations are l iving organ isms.

True: Organisations h ave st rong resem blance (=similarities) with living things. They can be com pared with living things because they can be conceived and crea

such as launching, struggling for exi stence, stability, growth and decay, as human beings go throughthe st ages such as childhood, adolescence, youth, middle a ge et c.

4. Management and organisation are two sides of the sam e coin.

True: Organisations co me into existence to achieve cert ain objectives. Organisation objectives ca n beachieved only through effective management. Hence organisation and management are two sides ofthe same coin.

5. The functions and processes of management are not interrelat

False: Functions an d processes of management are cl osely inter-related.

6. Survival of management depen ds on organisation.

True: Organisations are created to achieve certain objectives. Effective management helps theorganisation to achieve its objectives. Hence success of an organisation depends on effectivemanagement.

7. Management is n eeded only a t top levels of the organ ization.

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False: Managerial functions, such as planning, organising, directing and controlling are n eeded at al llevels of organisation.

8. Managerial functions a re sa me for al l organisations.

False: According to the objectives, organisations differ in their nature and activprocesses a re carried out according to these ob jectives on ly. Managerial processes a nd approaches

naturally differ f rom organisation to organisation.

9. All organisations are different.

True: Even though organisations h ave several similarities t hey also h ave vital differences. Dependingon the objectives to be achieved and the environment in which they have to survive, organizationshave t o be d esigned. Hence a ll organizations w ill not be identical.

10. Management is not a process.

False: One common thing in all the denitions of management is that they uniformly say t hat it is aprocess. Management being a d ynamic one is denitely a p rocess.

11. POSDCORB is a t ype of postcard used in ancient days.

False: Posdcorb i s an acronym for the following words.

P - Planning O - Organising

S - Staffing D - Directing

Co - Coordinating R - Reporting

B - Budgeting

12. Peter Drucker i s the theorist who was rst to provide a con ceptual framework of management.

False: Henry Fayol was t he rst theorist who provided a conceptual framework of management. He isregarded as t he father of Modern m anagement theory.

13. Money is the most important asset of an organisation.

False: People are the most important asset s of an organisation. Because o f this real isation, now-a-days, the m ovement for HRD has gai ned lot of popularity.

14. Management skills alone are s ufficient to get things done.

False: Apart from management skills, managers must have conceptual skills, technical skills,administrative sk ills a nd social skills. Then only th ey can play their m anagerial role eff ectively.

15. Managers when they do things by themselves they m ultiply their effectiveness.

False: Managers can multiply their effectiveness on ly when they are able to get t hings done by their

subordinates.16. Management means getting things done.

This is the simplistic deniinternal environment in such a way t hat or ganisational processes are d irected towards desired ends.

17. Management is concerned with ideas, needs an d people.

True: Management is a p rocess of converting ideas i nto resu lts by getting things d one through peoplein an organised manner.

18. Management is the oldest science an d youngest art.

False: Management is the oldest art an d youngest science. As a science it is st ill in the process ofevolution and renement.

19. The elements of management are independent of each other.

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False: The elements of management ar e planning, organizing, directing and controlling. Managerialprocess com es into existence on ly when all these el ements are t aken care of .

20. Management is an art.

False: It is a n art as w ell as sc ience. It has go t the t raits o f an art and basic p rinciples o f science.

21. Management is a p rofession.False: Formal management education and training are not compulsory to become a manger. The eldof management is open for all to practice. Also membership of management association is notnecessary a nd the question of licenses does n ot ar ise in many cases. Moreover t here is n ot ethicalcode of conduct for manager.

22. Process of management is t he sam e for every organ isation.

True: The process of management involves planning, organising, directing and controlling. Anyobjective could be achieved only through these elements. An organization may come into existence

with prot motive or with service motive. Whatever be there is a proper plan, organisation, direction and control. Hence p rocess of management is the sam e

for an y organ isation.23. Managerial functions are s ame as M anagerial Techniques an d Skills.

False: Managerial functions a re planning, organising, directing and controlling whereas managerialtechniques and skills i nclude co mmunication, motivation, interperson al relations, leadership etc.

24. Managers at higher levels d o n ot have an y su pervisory r ole.

False: Managers at hi gher levels h ave the responsibility of guiding their immediate su bordinates. Butthey have to monitor the performance of s ubordinates and help them to increase their efficiency.Hence we can say t hat m anagers at higher levels al so p lay su pervisory r ole.

25. Management is not an inuence process.

False: Management is an inuence process. A manager inuences all the resources-men, money,materials, machines an d methods. The inuence is u sually backed by authority.

26. Management is a continuous process.

True: Management is a cycl e of steps. These st eps include planning, organising, staffing, directing, co-ordinating, reporting and budgeting. Th e cycle is never en ding. It is repeated over an d over aga in.Management is n ot a on e-time affair. It is a con tinuous process.

27. Process of Management is t he sam e for every or ganisation.

True: The process of management involves planning, organising, directing and controlling. Anyobjective cou ld be ach ieved only through these el ements. Organizations m ay com e into existence withprot m otive or with service motive. Whatever b e the nal objective, it can be achieved only whenthere is a proper plan, organisation, direction and control. Hence p rocess of management is the sam efor an y organ isation.

28. Professional Management and Family Management are one and t he same.

False: In family management, owners are managers. But in professional management, managers aredifferent from owners.

29. Management and administration are one and t he same.

False: Although there is a little difference between the two terms, Peter Drucker gmentas the specic and unique activity in business en terprises and associates administration to non-

business activities. Another difference is ment

administration is con cerned day to day operations in a company.30. There are some limitations in calling management as a pro




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True: A profession should provide for syst ematic st udy, training, exams and a professional body toregulate t he p ractice with code of conduct and ethics. But formal management education and trainingare not compulsory for anyone t o become a manager. Also m embership in a management associationis not compulsory.

31. Management is u niversal.

True: Management is the basic requirement of all organisations, big or sm all, private or public, business or non-business. It i

32. Professional management has ownership interest in an enterprise.

False: Professional Management need not have ownership interest in the enterprise. It means thatthose who own the organisation and those who manage it are different.

"lanning:1. Planning is a t op management activity.

True: Planning is a basic m anagerial function. So it should be d one a t all levels o f organisation.

2. Planning is different from decision making.

False: Planning involves decision making. Making choices out of certain alternative courses alsoamounts t o p lanning. Plans d eveloped are n othing but set of decisions ch osen for a co urse of action.

3. Planning is a p re-requisite for ot her functions of management.

True: Planning is a pre-requisite for other functions of management such as organising, staffing,directing and control.

4. Planning in organisation is b ased on certain philosophies.

True: Russel Ackoff in his b ook Concept of Corporate Planning has i dentied three con ceptual values

on which planning in organisations could be based. They are sat isfying philosophy, optimizingphilosophy and adaptivising philosophy.

5. Planning has got only one approach and that is known as top down approach.

False: Generally there are four approaches to planning. They are top-down approach, bottom-upapproach, composite approach and team approach.

6. The primary objective of planning i

True: Planning is primarily meant to cope with the future to comply and adapt with the changes thatmay t ake p lace i n the en vironment in which the organ isation is functioning.

7. Organisational plans sh ould be inexible.

False: One of the important ch aracteristics of or ganisational planning is th at i t sh ould be exible. Itmust be exible enough to make the organisation adjust to the ever-changing environmentalconditions. Then only orga nisations ca n achieve i ts ob jectives.

8. Planning is a part of forecasting.

False: Forecasting a lone is o ne of the st eps in planning. Forecasting ref ers t o th e p rocess of predicting,projecting and estimating the changes in the environment. This helps the organisation to movetowards desired o bjectives.

9. Forecasting is l ikely to b e a ccurate a lways.

False: Forecasting ca nt be a lways a ccurate. Always f uture will not be a s we exp ect it to b e.

10. Organisational purpose is d erived from organizational objectives.

False: Objectives are deri ved from the purpose of the organ ization.

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11. Objectives and goals are one and the sam e.

False: In general the terms objectives an d goals are being used interchangeably. However the twoterms c an be d istinguished. Objective is th e one towards w hich organizational activities a re d irectedto. It is n ormally set by senior m anagers. Goals ca n be seen as a sub-set of objectives. If these go alsare ach ieved, it helps t o a chieve d esired objectives.

12. Objectives a re set based on the o rganizational structure.

False: Objectives are pri mary an d are more important than structures. Hence structures must bedesigned in such a way t hat or ganisational objectives are ach ieved.

13. Objectives ser ve as t he bench marks o f evaluating organ isational performance.

True: Organisation structure and activities are designed around objectives, to facilitate theirachievement. They exercise con siderable inuence in motivating the m anagerial and other per sonneltowards con sistent team effort.

14. A good organization can have only one objective.

False: All organizations can have many objectives such as prot, pu blic service, diversication,providing employment etc.

15. It is q uite likely for an organization to view its m ultiple objectives a s n ot equ ally importan t.

True: The objectives can vary in their importance. Organizations must arrange various objectivesaccording to their importance. For e.g. for a Govt. organisation service may be the most importantobjective than making prot.

16. Structuring of ob jectives into an hierarchy coincides with the structuring of organ izational act ivityand authority relationships.

True: Objectives are the base on which organizational systems are designed. To achieve these

objectives organizational activities must be grouped and they must be empowered with properauthority. Objectives, authority and organizational activities a re t he key inputs t o any organizationalstructure.

17. Multiplicity of objectives will lead to conict.

False: When multiple ob jectives a re pursued, certain clashes are b ound to occur, at di fferent levels inthe organization, because o f the differences i n the p erceptions of individual managers. However, thiscan be resolved.

18. Goal conict is to be viewed as a disease.

False: Goal conict need not be viewed as a disease. It is a natural phenomenon. In some

organisations, if goal conict exi sts, i t w ill induce the organizational m embers t o be innovative. Thegoal conict w ill also bring exibility in organizational functions.

19. Any organization is vulnerable to goal dispent

True: When managers start reacting to the problem situation on intuitive basis then goaldisplacement i s l ikely to occur. When organizational members efforts a nd resources a re diverted fromthe d esired goals t hen goal displacement occurs.

20. Official goals an d operative goals are one and the sam e.

False: Charles Perrow, a management writer makes a d istinction between official goals an d operativegoals. According to him official goals reect t he general objectives that t he organisation wants to

achieve. On the other hand operative goals have got sh ort term perspective. They will be morepragmatic than official goal s. Achievement of operative goals alone will enable the organization toachieve i ts offi cial goals.

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True: Managers at act ion level have the necessary i nformation, awareness a nd realism to plan. Itmakes full use of capabilities. But the p lan has to travel up and down in order t o unify all the p lansand to m ake it realistic. Thus it can be viewed as a participative ap proach to p lanning.

33. Forecasting is n ot planning.

True: Forecasting is limited to the task of predicting probable future conditions, w hile planningmeans d esigning the desired future conditions an d making the needed efforts to ensure that they willmaterialise.

34. Single u se p lans a re t ailored to t specic si tuations.

True: These p lans are f or h andling non-repetitive, novel and unique problems. Once their purpose i sachieved they will become ob solete. Objectives an d strategies a re 2 examples o f this k ind of plans.

35. Typically, a company pursues a single objective.

False: Usually a company pursues m ultiple ob jectives l ike, prot, growth, customer ser vice, employee welfare and so on.

36. The concept of multiplicity of objectives does not ean objectives a s p ossible.

False: Too m uch of multiplicity leads to complexity and confusion. On the other hand organisationalefforts w ill be d iffused over wide n umber of objectives.

37. Policies p rovide readymade decisions.

False: Policies can only indicate the broad considerations and options to be kept in mind whilemaking decisions.

38. Policies sh ould always b e in written form.

False: Policies can be est ablished in written or oral or implied form. Thus t hey n eed not be

established in written form.39. Policies are t o be revi sed frequently.

False: Policies sh ould be formulated considering internal and external environment and much careand judgement should be taken. They shou ld remain valid & useful under varied con ditions.

40. Objectives ar e en ds an d policies are m eans to achieve the en ds.

False: They a re r elated in the m eans en ds ch ain. Policies focus on objectives. Policies set gu idelinesfor achieving objectives.

41. Some simple policies m ay take the form of rules.

False: For exam ple, recruitment of clerical staff only through employment exchange is a policy. But itis a ru le followed by so me ot her or ganisations.

42. Excessive ru les will result i n overly bureaucratic o rganisation.

True: Rules will inuence human behaviour and mechanise it. It also curtails creativity. Thusexcessive ru les w ill result in bureaucracy.

43. Purpose of an organisation is d ened by its em ployees.

False: Purpose is dened by the society in which an organisation operates. Therefore, purpose is a broad aim that applies not only to a given organisati

society.

44. Planning process ends when a plan is agreed upon.False: Plans must be implemented and for that purpose programs and procedures should bedesigned. At any time during implementation, plans sh ould be modied so that they become u selessor even damaging.

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45. Goals of an organisation determine its t asks & strategies.

True: Any structure or process can come into existence only when there is a set of goals to beachieved. Without goal s, planning & organising is not at al l possible. On the basis of these g oals,strategies can be developed and according to st rategies st ructures can be designed.

46. Rules a re p rescriptive.

True: Rules are j ust like commandments. Generally they sp ecify, whether to do a job or n ot, whetherto behave in a particular w ay or no t.

47. Planning is a P re-Requisite for Managerial Functions.

True: The basic elements of management are Planning, Organising, Directing and Controlling. Without planning, no organisation can come into exi

and control have n o meaning at all. Hence p lanning is a p re-requisite for m anagerial functions.

48. Procedures ar e helpful in performing Non-Routine Task s.

False: Procedures a re h elpful for p erforming rou tine tasks on ly. For n on routine tasks, application ofpolicies is com pulsory. Hence p rocedures can t be ap plied to non routine tasks.

Lea ers!ip:1. There is a conict between goals of the organisation and goals

False: It is p ossible to d esign organization goals in such a way that ob jectives of the em ployees a ndthe orga nisation can be tied together so t hat con ict doesnt arise.

2. Rigid status d ifferentials b etween managerial & non-managerial personnel is al ways h ealthy.

False: For eff ective cooperation between managerial & non-managerial personnel, status differencesmust be minimised. Generally, status syst ems in organisation divide people an d increase soci al

distance am ong them. It amounts to u nhealthy organisation climate.3. All conicts are unhealthy.

False: Conict can also be treated a s m eans of development of individual and group performance because it stimulates the at

promote con structional conict and avoid destructional conict.

4. There is one and only one way in which conict resolution is possiblcompromise.

False: Conicts can be resolved in any of the following 5 ways - avoiding, accommodating, competing,compromise an d collaboration. As we can see, conict is only one among them.

5. Power and inuence are one an d the same.

False: Power can be dened as the ability of an individual to affect behaviour of o thers in theorganisation. Whereas inuence ref ers to the a rt of affecting attitudes a nd behaviour of others in theorganisation.

6. Positions in the organ isations are t he b ases of power.

False: Positions are n ot the bases o f power. Bases of power ar e Reward, coercion, expertise, charisma,reference a nd legitimate f ormal position.

7. Positions in the organ isations are t he on ly sou rce t hrough which inuence cou ld be exer cised.

False: Ju st as p ower, Inuence is al so h aving different bases su ch as em ulation, suggestion,persuasion and coercion.

8. Limited resources gi ve ri se t o co nicts.

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True: Scarce r esources sh ould be d istributed among d ifferent groups i n the o rganisation. Inevitablysome groups get less t han they want or need . Thus con icts ari se.

9. Organisational change i s a n end in itself.

False: Organisational change is on ly a means t o the achievement of organisational goals. Everyorganisational change is t o b e judged on the b asis of its con tribution to th e a chievement of

organisational objectives.

10. People resist change when they understand it.

False: Researchers h ave indicated that peopl e resist change only when they do n ot understand thechange in the organ isation.

#ocial $esponsi%ility:1. A socially responsible business behaviour manifests

True: When organizations concentrate on providing pollution-free atmosphere, creating moreemployment and providing basic a menities for t he p eople who a re living n ear t o the organ ization, thensuch activities will reect t he social responsibility of t he organization.

2. The concept of social responsibility

True: There is no consensus (=agreement) among managers and social leaders on the meaning of theterm social responsibility. For e. g. when a chemical industry is n ot po lluting its en vironment thenmanagement of the industry m ay think that they are f ullling soci al responsibility. At the sam e time ifthe same organisation is u nable to provide more employment opp ortunities then the social leadersmay think that organ isation is n ot fullling its so cial responsibility. Thus w e ca n say that t he co nceptof soci al responsibility is ve ry vague.

3. The concept of social responsibility

Milton Friedman has stated that soci al responsibility may be uneconomical to the organization. Hehas also stated that it am ounts to diluting economic goals. Hence he called the concept of socialresponsibility as a subversive doctrine.

4. Social responsibility must be imposed on business.

False: Social responsibility should not be imposed, it should be assumed by the organisation on voluntary basis, for the genuine benet of

5. If business includes s ocial responsibility a s o ne of its o bjectives th en their p ublic image gets b oostedup.

True: If social r esponsibility is included in the articles of asso ciation of an y business then it willdenitely enhance the public image. In our country BHEL, TISCO have done it.

6. The only Social Responsibility of a Business owners.

False: Social responsibility is a n obligation that a business has to act for th e b enet of society in itexists. Removing u nemployment in a society, not causing any pollution to the en vironment, raising theliving quality of t he p eople a re som e e xamples for so cial responsibilities.

Co&or ination:1. All managerial functions are instruments to coordia

True: All managerial functions such as planning, organising, staffing, directing and controlling areonly an exercise in co-ordination. In fact, al l m anagerial functions are instrumental functions toachieve the managerial task of coordination.

2. Primary reason for coordi nation is grou p inter-dependence.

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False: This statement is correct. Greater the need for intg coordination, the organ ization needs. Unless t here is op portunities for grou p development and inter-dependence among themselves, coordinate effort t o achieve the organizational objectives will notmaterialize.

3. Instruments of planning can bring froth effective coordi nation.

True: Rules, procedures, programmes and policies are referred as instruments of planning. Theycould play a useful role in bringing forth effective coo rdination among various u nits.

Miscellaneous:1. Formal and informal organizations exi st separately.

False: Formal organisation and informal organisation are 2 d imensions of the sam e organisation. Thestructure, process a nd behaviour these two organizations always get mixed up. It is difficult todistinguish them .

2. Informal organizations a re a lways useful to formal organizations.

True: In many cases informal organization blends with formal organization to make the formalorganization more eff ective. If the informal or ganization is d eveloped in a positive en vironment i t cancontribute m ore f or t he ob jectives of the formal organization.

3. A manager can get things done through informal organi

True & False: It is true because informal organisation provides n atural setting for m anagers t o getthings d one through people by exerci sing their au thority and other ba ses of power. It is false b ecauseauthority itself may n ot be effective. Further au thority creat es fear an d not respect. People may obeyauthority but defy (resist) it in action.

4. Informal organization is u sed to design the con trol system in an organisation.

False: Formal authority syst em alone is u sed for d esigning con trol system.

5. Communication facilities o nly managerial f unctions.

False: Communication also relates an enterprise to its external environment. Through this, managers become can know the needs of customers, availabil

6. F.W. Taylor is su pposed to be the Father of Administrative M anagement Theory.

False: F.W. Taylor is more known as the Father of Scientic Management. He is the rst person whostated that t here is always one best scientic way of doing things which is applicable to all worksituations.

7. Henry Fayol is the person who has con tributed 14 principles of Administration. True: Henry Fayol, has developed a comprehensive (=complete, inclusive) theory o f organization and

administration, ap plicable to all organizations at all levels. He is the person who has evolved(=developed) 14 principles of adm inistration. Important am ong them are D ivision of work, u nity ofcommand, unity of direction, tenure of personnel, Espirit De Corps etc.

8. Hawthorne studies ha s cau sed a drastic chan ge in the management theories.

True: Hawthorne studies alone has indicated the presence of informal groups and dynamics ofinterpersonal relations t hat m ight arise w ithin the m embers o f any organization. This st udy a lone h asgiven birth to human relations movement in management.

9. Happy workers are always produ ctive workers.False: During early 1940s, when human relations approach was gaining importance, people believedthat happy workers are always productive workers. However, the recent research in the area of

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management ha s proved that t his is n ot true in organisations. Technical processes, administrativeprocesses an d behavioural processes al so p lay an important role in making the workers produ ctive.

10. Organizational behaviour deals with human beings.

Yes. It is a sub-discipline in management. It deals with nding how and why an individual behaves ashe b ehaves i n the organ ization.

11. All organizations are closed systems.

False: Most of the organizations today are open systems because they are al ways su bjected to theforces o f external environment such as soc ial, political, economic a nd technological.

12. Scientic approach to management has gained momentum (=importance) after World War II.

True: Scientic ap proach or Quantitative Approach has ga ined importance on ly after World War II. Ittook birth from the efforts m ade by the scientists, engaged by USA Governments, to make researchinto the st rategic m ilitary operations d uring World War I I.

13. One of the important characteristics of a system is t hat i t has a boundary.

True: In any system boundaries d etermine which parts are i nternal and which parts are ext ernal to asystem. For e. g. for a business en terprise i ts em ployees a re within its b oundaries w hile its cu stomersand suppliers are ou tside its b oundary.

14. External environment normally do n ot affect the organization.

False: All organizations are a lways subjected to the inuence of external environment. Externalenvironment consists o f technical, social, political and economic forces.

15. Managerial methods a re independent of situations.

False: Managerial methods depend on the situations. A managerial method suitable in one situationmay n ot be su itable in another si tuation.


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