Business and Human Resource Management Questions and Answers

Q: Which one of the following is not a level of strategies applicable to multiunit business ?

The one that is not a level of strategy is divisional level strategy.Strategic management texts describe three levels of strategy in a multi-unit (multi-business) firm. Corporate strategy decides which businesses the firm should be in and how resources are shared among them. Business or SBU level strategy decides how each strategic business unit competes in its own market. Functional level strategy decides how marketing, finance, production and HR support the business strategy.A division is simply the organisational form an SBU often takes, so its strategy is the SBU (business) level strategy, not a separate level.

Q: Tactic is a component of .............. .

A tactic is a component of planning.Plans come in a hierarchy: objectives, strategies, policies, procedures, rules, programmes, budgets and tactics. Tactics are the short-term, specific plans for carrying out a strategy, often adjusted as circumstances change, so they belong to the planning function.Organising creates the structure of roles and authority, directing guides and motivates people, and co-ordinating harmonises the efforts of different units. All three carry plans out, but tactics themselves are part of the plan.

Q: The concept of committee comes within the scope of ............... .

Committees fall within the scope of organising.Organising is the function of designing the structure: dividing work, grouping activities, and setting up authority relationships. A committee is a structural device, a group of people formally given authority to deal with a matter collectively, so it is studied with line, staff and functional organisation as one of the forms of organisation structure.Committees may help in planning, directing or controlling decisions, but as an arrangement of authority and responsibility they belong to organising.

Q: Which one of the following is not Fayol's principle of management ?

The one that is not Fayol's principle is management by exception.Management by exception, under which only significant deviations from plans are reported to senior managers, is associated with F. W. Taylor and scientific management. It is not among the fourteen principles Henri Fayol set out in 1916.Fayol's fourteen principles include division of work, authority and responsibility, discipline, unity of command (one boss for each subordinate), unity of direction (one plan and one head for a group of activities with the same objective), subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps.

Q: Find the odd one out :The components of planning are :

The odd one out is decentralisation of authority.Objectives, procedures and budgets are all types of plans. An objective is the end the plan aims at, a procedure is a standing plan setting out the steps for a recurring activity, and a budget is a plan expressed in numbers for a future period.Decentralisation of authority is the systematic delegation of authority to lower levels of the organisation. It concerns how the structure distributes decision-making power, so it belongs to the organising function, not to planning.

Q: Motivation is a part of ................ .

Motivation is a part of direction.Directing (direction) is the function of guiding, instructing and influencing people to work towards the organisation's goals. Its elements are usually given as supervision, motivation, leadership and communication. Motivation, the process of stimulating people to act willingly towards desired goals, is thus one element of direction.Communication is itself another element of direction, not the function motivation belongs to. Organisation concerns structure, and a plan is the output of planning.

Q: Theory 'Y' was developed by ............ .

Theory Y was developed by Douglas McGregor.In The Human Side of Enterprise (1960), McGregor contrasted two sets of managerial assumptions. Theory X assumes people dislike work, avoid responsibility and must be controlled. Theory Y assumes work is as natural as play, that people will exercise self-direction towards goals they are committed to, and that they seek responsibility, so managers should create conditions for that commitment.Fiedler developed the contingency model of leadership, Vroom the expectancy theory of motivation, and Herzberg the two-factor (motivation-hygiene) theory.

Q: Which of the following does not directly affect wage and salary structures ?

The factor that does not directly affect wage structures is regional backwardness.Wage and salary levels in a firm are shaped directly by its ability to pay, which depends on its profits and productivity; by the supply and demand for labour of the skills needed; and by union demands made through collective bargaining. Other direct factors include the cost of living, prevailing wage rates in the industry and government wage regulation.Regional backwardness is a feature of the wider economy. It may influence wages only indirectly, through its effect on the local labour market and cost of living, so it is not one of the direct determinants.

Q: Employee welfare does not exactly depend on :

On the key's reading, employee welfare does not exactly depend on organisational culture.Employee welfare consists of the facilities and services provided for the comfort and improvement of workers beyond their wages. Its standard content is the conditions of the work environment (ventilation, lighting, sanitation, canteens, rest rooms), health services (medical care, first aid) and education and training facilities for employees and their families, much of it required by laws such as the Factories Act.Organisational culture, the shared values and norms of the organisation, influences how welfare is approached but is not itself a welfare measure, which is why the key treats it as the factor welfare does not exactly depend on.

Q: ................... is not a component of planning.

The one that is not a component of planning is delegation of authority.Planning produces a hierarchy of plans: objectives, strategies and tactics for reaching them, policies that guide decisions, procedures and rules, programmes that combine these for a particular purpose, and budgets. Policy, programme and tactic are therefore all components of planning.Delegation of authority belongs to the function of organising. It is the process by which a manager assigns duties to subordinates and gives them the authority needed to carry them out, while remaining accountable. It concerns how work and authority are divided, not what is to be done, so it is not a component of planning.

Which one of the following is not a level of strategies applicable to multiunit business ?

A.Corporate strategy
B.SBU level strategy
C.Functional level strategy
D.Divisional level strategy

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

The one that is not a level of strategy is divisional level strategy.

Strategic management texts describe three levels of strategy in a multi-unit (multi-business) firm. Corporate strategy decides which businesses the firm should be in and how resources are shared among them. Business or SBU level strategy decides how each strategic business unit competes in its own market. Functional level strategy decides how marketing, finance, production and HR support the business strategy.

A division is simply the organisational form an SBU often takes, so its strategy is the SBU (business) level strategy, not a separate level.

Discuss in Forum

Tactic is a component of .............. .

A.Planning
B.Organising
C.Directing
D.Co-ordinating

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: A

A tactic is a component of planning.

Plans come in a hierarchy: objectives, strategies, policies, procedures, rules, programmes, budgets and tactics. Tactics are the short-term, specific plans for carrying out a strategy, often adjusted as circumstances change, so they belong to the planning function.

Organising creates the structure of roles and authority, directing guides and motivates people, and co-ordinating harmonises the efforts of different units. All three carry plans out, but tactics themselves are part of the plan.

Discuss in Forum

The concept of committee comes within the scope of ............... .

A.Directing
B.Organising
C.Controlling
D.Planning

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

Committees fall within the scope of organising.

Organising is the function of designing the structure: dividing work, grouping activities, and setting up authority relationships. A committee is a structural device, a group of people formally given authority to deal with a matter collectively, so it is studied with line, staff and functional organisation as one of the forms of organisation structure.

Committees may help in planning, directing or controlling decisions, but as an arrangement of authority and responsibility they belong to organising.

Discuss in Forum

Which one of the following is not Fayol's principle of management ?

A.Unity of Command
B.Unity of Direction
C.Authority and Responsibility
D.Management by Exception

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

The one that is not Fayol's principle is management by exception.

Management by exception, under which only significant deviations from plans are reported to senior managers, is associated with F. W. Taylor and scientific management. It is not among the fourteen principles Henri Fayol set out in 1916.

Fayol's fourteen principles include division of work, authority and responsibility, discipline, unity of command (one boss for each subordinate), unity of direction (one plan and one head for a group of activities with the same objective), subordination of individual interest, remuneration, centralisation, scalar chain, order, equity, stability of tenure, initiative and esprit de corps.

Discuss in Forum

Find the odd one out :

The components of planning are :

A.Objective
B.Procedure
C.Decentralisation of authority
D.Budget

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

The odd one out is decentralisation of authority.

Objectives, procedures and budgets are all types of plans. An objective is the end the plan aims at, a procedure is a standing plan setting out the steps for a recurring activity, and a budget is a plan expressed in numbers for a future period.

Decentralisation of authority is the systematic delegation of authority to lower levels of the organisation. It concerns how the structure distributes decision-making power, so it belongs to the organising function, not to planning.

Discuss in Forum

Motivation is a part of ................ .

A.Communication
B.Direction
C.Organization
D.Plan

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: B

Motivation is a part of direction.

Directing (direction) is the function of guiding, instructing and influencing people to work towards the organisation's goals. Its elements are usually given as supervision, motivation, leadership and communication. Motivation, the process of stimulating people to act willingly towards desired goals, is thus one element of direction.

Communication is itself another element of direction, not the function motivation belongs to. Organisation concerns structure, and a plan is the output of planning.

Discuss in Forum

Theory 'Y' was developed by ............ .

A.Fiedler
B.Vroom
C.McGregor
D.Herzberg

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

Theory Y was developed by Douglas McGregor.

In The Human Side of Enterprise (1960), McGregor contrasted two sets of managerial assumptions. Theory X assumes people dislike work, avoid responsibility and must be controlled. Theory Y assumes work is as natural as play, that people will exercise self-direction towards goals they are committed to, and that they seek responsibility, so managers should create conditions for that commitment.

Fiedler developed the contingency model of leadership, Vroom the expectancy theory of motivation, and Herzberg the two-factor (motivation-hygiene) theory.

Discuss in Forum

Which of the following does not directly affect wage and salary structures ?

A.Ability to pay
B.Labour supply and demand
C.Union demands
D.Regional backwardness

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

The factor that does not directly affect wage structures is regional backwardness.

Wage and salary levels in a firm are shaped directly by its ability to pay, which depends on its profits and productivity; by the supply and demand for labour of the skills needed; and by union demands made through collective bargaining. Other direct factors include the cost of living, prevailing wage rates in the industry and government wage regulation.

Regional backwardness is a feature of the wider economy. It may influence wages only indirectly, through its effect on the local labour market and cost of living, so it is not one of the direct determinants.

Discuss in Forum

Employee welfare does not exactly depend on :

A.Conditions of Work Environment
B.Employees' Health Services
C.Employees' Education
D.Organisational Culture

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: D

On the key's reading, employee welfare does not exactly depend on organisational culture.

Employee welfare consists of the facilities and services provided for the comfort and improvement of workers beyond their wages. Its standard content is the conditions of the work environment (ventilation, lighting, sanitation, canteens, rest rooms), health services (medical care, first aid) and education and training facilities for employees and their families, much of it required by laws such as the Factories Act.

Organisational culture, the shared values and norms of the organisation, influences how welfare is approached but is not itself a welfare measure, which is why the key treats it as the factor welfare does not exactly depend on.

Discuss in Forum

10.

................... is not a component of planning.

A.Policy
B.Programme
C.Delegation of authority
D.Tactic

Exam Year(s)

MH SET - 2018, SET Exam - 2018,

Answer: C

The one that is not a component of planning is delegation of authority.

Planning produces a hierarchy of plans: objectives, strategies and tactics for reaching them, policies that guide decisions, procedures and rules, programmes that combine these for a particular purpose, and budgets. Policy, programme and tactic are therefore all components of planning.

Delegation of authority belongs to the function of organising. It is the process by which a manager assigns duties to subordinates and gives them the authority needed to carry them out, while remaining accountable. It concerns how work and authority are divided, not what is to be done, so it is not a component of planning.

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