Principles of Management Interview Questions & Answers

Question 1. What Do You Understand By Management Science Theory?

Answer :

Management science theory utilises various quantitative techniques to maximise resources. Quantitative Management, Operations Management, Total Quality Management and Management Information System are coming under Management Science Theory.

Question 2. Why Is It Important To Study The Various Management Theories That Have Been Developed?

Answer :

• To make a unified global theory of management.
• To utilise the experiences of pioneers.

Question 3. What Are The Functions Of Managers?

Answer :

Planning, organising, staffing, directing and controlling are the functions of management.

Question 4. Mention The Three Approaches Generally Adopted By Managers In Selecting An Alternative?

Answer :

• Experience,
• Experimentation and
• Research analysis.

Question 5. Explan Chain Of Command?

Answer :

Unbroken line of authority is known as chain of command. The line of authority flows from top to bottom through the chain of command.

Question 6. What Are The Benefits Of Management By Objectives?

Answer :

• Employees can be motivated because they participate in the goal setting process.
• Performance can be improved because MBO concentrates on objectives.
• Unnecessary efforts will be minimised because objectives are set clearly.
• MBO helps managers to exercise better control over employees.

Question 7. What Do You Mean By A Strategy?

Answer :

Strategy is defined as the determination of long-term objectives of an organisation. Making the best choices for the future and allocating the resources necessary to accomplish the objectives.

Question 8. What Is Decision Making?

Answer :

Decision making is defined as the selection of a course of action among alternative courses of action. Decision making should be rational. Decision making involves a choice among alternatives.

Question 9. What Is The Purpose Of Planning?

Answer :

• To determine the direction of an organisation.
• To provide a basis for team work
• to minimise wastages in the future
• To facilitate decision making
• To improve morale of the employees.

Question 10. State Any Two Decision Making Strategies?

Answer :

• Decision tree method.
• Operations research.
• Break even analysis.
• Simulation or stochastic techniques.

Question 11. What Are The Objectives Of Planning?

Answer :

• To determine the direction of an organisation.
• To minimise wastages.
• To reduce the risk or uncertainity.
• To facilitate control.

Question 12. What Do You Mean By 'bounded Rationality' In Decision Making?

Answer :

If people are having time and cognitive ability for making decisions, it is said to be bounded rationality.

Question 13. What Are The Various Types Of Decision Making Models?

Answer :

• Classical decision making models.
• Administrative decision making models.
• Political decision making models.

Question 14. Define The Term 'planning Premises'?

Answer :

Planning premises are define as the anticipated environment in which plans are expected to operate. Premises are the assumptions on which plans are formulated.

Question 15. What Do You Mean By Planning?

Answer :

Planning is a process by which a manager looks to the future and discovers alternative courses of action. In other words, planning is anticipatory decision making. Planning is the process used by managers to identify and select goals and courses of action of the organisation.

Question 16. Why Is Informal Organisation Needed?

Answer :

The speed of communication flow through the informal channels is faster than formal channels. Many tasks which cannot be accomplished by formal organisation can be completed by informal organisation. Informal orgtanisation encourages cooperation between people. Informal organisation provides job satisfaction, personal attachment and status to workers. Thus, informal organisation is needed for any organisation.

Question 17. Give Two Examples For Line Organisation?

Answer :

• Military.
• Small enterprises.

Question 18. State The Maslow's Hierarchy Of Needs?

Answer :

Maslow viewed human needs in the form of hierarchy. The hierarchy of needs are

• Physiological needs.
• Safety needs.
• Social needs.
• Esteem needs.
• Self actualisation needs.

Question 19. Distinguish Between Motivation And Satisfaction?

Answer :

                 Motivation                                                             Satisfaction

1.Motivation is the process of            1.Satisfaction is the end
 inspiring and actuating the                result of motivation.
 workers to accomplish the
 objectives of the organisation.

2.Motivation leads to higher              2.Satisfaction makes
  levels of productivity.                   changes in the behavious.

Question 20. Explain Leading?

Answer :

Leading is the process of instructing, counselling, guiding and motivating the human factor to achieve organisational goals effectively.

Question 21. Mention The Various Types Of Leadership Styles?

Answer :

• Autocratic leadership
• Democratic or participative leadership
• Laissez-faire leadership
• Benevolent autocratic leadership
• Supportive leadership.

Question 22. What Are The Different Bases Of Departmentation?

Answer :

• Time
• Functional
• Product
• Process
• Geography
• Matrix
• Customers etc.

Question 23. What Is Le Plan?

Answer :

In France, All business units will follow the centralized plan of the government. Such plans are formulated with the view of Maximization of national resources and avoidance of uneconomical areas.

Question 24. What Are The Ways Of Internationalization Is Takes Place?

Answer :

• Exporting
• Licensing
• Management contracts
• Joint Ventures
• Multinational Companies.

Question 25. What Is Mnc Company?

Answer :

MNC company is a company having business operations more than one country but its headquarters is located at its home country.

Question 26. What Is Economic Environment?

Answer :

Various economic activities affecting business of a nation is known as Economic environment. Economic environment includes economic conditions, economic system and economic policies.

Question 27. Distinguish Between Goals And Objectives?

Answer :

Goals are specific and short term oriented one.

Objectives are general and long term oriented one.

Question 28. What Is Budget?

Answer :

Budget is a type of plan which is expressed in numerical data.

Question 29. What Are The Different Types Of Inventories?

Answer :

1. Raw materials
2. Work in Progress
3. Finished Products
4. Spares and components.

Question 30. What Is Job Enrichment?

Answer :

Making the jobs more interesting and challenging one is known as job enrichment. It is used to motivate and satisfy the workforces in the work place.

Question 31. Distinguish Between Decision Under Risk And Uncertainty?

Answer :

Making decision for the unknown state is decision under uncertainty.

Making decisions without considering the consequence is decision under risk.

Question 32. Define Leadership?

Answer :

Leadership is the ability to influence others and enthusiastically making them to achieve the desired results.

Question 33. What Is The Importance Of Planning?

Answer :

To Offset uncertainties, To Integrate Resources & Achieving Productivity.

Question 34. What Are The External Sources Of Recruitment?

Answer :

Advertisement, Employment Agencies, Campus Recruitment, Websites.

Question 35. Define Communication?

Answer :

communication is the process of exchanging ideas, opinions feelings through a medium and getting feed back for the same.

Question 36. What Is Mbo?

Answer :

MBO is a Comprehensive management System. It is used for goal setting, Motivation and performance appraisal.

Question 37. What Is Motivation?

Answer :

Motivation is the process of inducting human efforts by altering internal and external variables which are affecting one's workability.
Motivation = Valence X Expectancy.

Question 38. What Is Bcg Matrix?

Answer :

It is tool used for the strategy formulation. It analysis Industry growth rate and market share of the company and indicates different business positions and strategies like cash, cow, dog, Question mark, star.

Question 39. What Are The Different Types Of Decision?

Answer :

Logical, emotional, lateral, Programmed, Non programmed etc.

Question 40. Distinguish Between Policies And Procedures?

Answer :

Policy is the prevailing condition and understating.

Procedure is the sequence of a proposed activities.

Question 41. Define Directing?

Answer :

It is the act of instructing, guiding, inspiring people in an organization to achieve organizational results.

Question 42. What Is Organizing?

Answer :

Identification of activities, grouping related activities together, forming departments, providing authority and coordinating departmental activities together.

Question 43. What Is The Nature Of Planning?

Answer :

Dynamic, Goal oriented one, Process, Primary to other management functions.

Question 44. What Are The Internal Sources Of Recruitment?

Answer :

Employees, Union, Gate Hiring, Deputation.

Question 45. What Is Recruitment?

Answer :

Recruitment is the process of inducing potential candidates applying for a job position in an organization.

Question 46. What Is Formal Organization?

Answer :

An organization is created deliberately with common goal and purpose. It has a well established authoritative relationship among members.

Question 47. Define Decision Making?

Answer :

Decision making involves selection of best course of action among different alternatives courses of action.

Question 48. Distinguish Between Centralization And Decentralization?

Answer :

Based on delegation of authority organizations are classified into two types:

Centralization: Entire Power is vested in the hands of few selected persons, normally top managers are holding the power of the organization.

Decentralization: Organizational authority is shared one. All the members are having some amount of freedom in their work based on their position in the organizational structure.

Question 49. What Is Human Resource Management?

Answer :

Planning and executing all those activities are associated with recruitment, selection, training, and Performance appraisal and career development in known as human resource management.

Question 50. What Are The Different Sources Of Power?

Answer :

1. Legitimate Power
2. Expert Power
3. Referent Power
4. Reward Power
5. Coercive power.

Question 51. What Is The Importance Of Decentralization?

Answer :

1. Work autonomy
2. Quick decisions
3. Self responsibility
4. Continuous involvement
5. Better control.

Question 52. What You Mean By Organizational Effectiveness?

Answer :

Organizational effectiveness is measured in terms of structural fexibility, productivity, Employee involvement, Job satisfaction etc.

Question 53. What Is Informal Organization?

Answer :

Organization is created for personal interest and satisfaction of the people.

Question 54. What Is The Importance Of Career Development?

Answer :

Job satisfaction, Contentious Improvement, Less employee turnover, organizational development.

Question 55. What Is Delegation Of Authority?

Answer :

Sharing organizational authority to different levels and positions of an organization.

Question 56. Distinguish Between Power And Authority?

Answer :

Power is capacity to command.

Authority is the right to command.

Question 57. What Is Social Responsibility?

Answer :

Business has the responsibility to fulfill its stake holders interest, such a obligation is know as social responsibility of business.

Question 58. What Are The Different Techniques Used To Offset Risk And Uncertainty In Decision Making?

Answer :

The different techniques used to offset risk and uncertainty in decision making are:

• Decision tree analysis,
• Simulation,
• Game theory,
• Probabilistic models.

Question 59. Define Organizing?

Answer :

Identification of required activities, grouping of related activities together and forming departments and coordinating various departments with the established goals and objectives.

Question 60. What Do You Mean By The Term 'bounded Rationality In Decision Making'?

Answer :

Maximizing the results of a decision is an ideal stage. Normally it is an impossible thing. The reason is our decisions are disturbed by lot of constraints, to reduce the effect of these constraints some of our efforts become waste. So we can't reach maximum.

Question 61. What Is Strategic Planning?

Answer :

Formulation of business plans with the due consideration of environmental analysis and organizational appraisal is know as strategic planning.

Question 62. What Is Sensitivity Training?

Answer :

It is an informal gathering of all employees and freely express their feeling and opinions about themselves and others.

Question 63. What You Mean By Career Development?

Answer :

Career development is the programmes designed by the organizations for the Growth in Job Position and Personal Life of the employees.

Question 64. What Is Productivity?

Answer :

Ratio between input and output during a specified period with the due consideration of quality.

Question 65. What Are The Sources Of Conflict?

Answer :

1. Authority
2. Responsibility
3. Organizational Policy
4. Status Relationship etc.

Question 66. Define Controlling?

Answer :

Controlling is the process of measurement and correction of performance in order to achieve desired results.

Question 67. What Are The Dangers In Budgeting?

Answer :

1. Over budgeting
2. Deviation from the goals
3. Under estimation.

Question 68. What Is Span Of Control?

Answer :

Span of control tells the ratio between superiors and subordinates. Usually organizations are having two different types of spans. They are:

1. Wide Span
2. Narrow span.

Question 69. What Are The Different Types Of Traning?

Answer :

Organizations are used to give training to their employees to enhance their skills and abilities. Those trainings are broadly classified into two types. They are:

1. On the job training
2. Off the job training.

Question 70. What Is Palnning Premises?

Answer :

Consideration of various environmental factors which are affecting the performance of formulated plan.

Question 71. What Do You Mean By Organizational Change?

Answer :

Making modifications in the functions and practices of an organization is known as organizational change. Change results employee well being and overall organizational effectiveness.

Question 72. What Is The Importance Of Strategic Planning?

Answer :

It is used for taking key business decision like stability, growth, retrenchment and divestment decisions are arrived. It is the top management function. These plans are used for long term decision making.

Question 73. What Is Job Design?

Answer :

Making a job with its detailed description on duties and authorities are known as job design.

Question 74. What Are The Functions Of Management?

Answer :

The functions of management are:

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling.

Question 75. Distinguish Between Line And Staff People?

Answer :

Line people are directly related with the achievement of organizational goals.

Staff people are indirectly related with the achievement of organizational goals.

Question 76. What Are The Different Types Of Selection Tests?

Answer :

The different types of selection tests are:

1. Achievement test
2. Intelligence Test
3. Personality Test
4. Interest Test
5. Aptitude test.

Question 77. What Are The Different Types Of Budgets?

Answer :

The different types of budgets are:

1. Master Budget
2. Functional budget
3. Flexible budget
4. Zero based budget.

Question 78. What Are The Principles Of Preventive Control?

Answer :

The principles of preventive control are:

1. Professional managers commit minimum erros
2. Managers performance also undergoes evaluation
3. Management fundamentals are utilized.

Question 79. What Is Jit?

Answer :

JIT is the Japanese Manufacturing technology. It works based on the concept of inventory less operations.

Question 80. What Are The Advantages Of Preventive Control?

Answer :

The advantages of preventive control are:

1. More productivity
2. Self control
3. Less managerial burden
4. Psychological advantages.

Question 81. What Is Theory Z?

Answer :

Theory Z suggests interpersonal relation is vital for organizational success.

Question 82. What Are The Methods Available To Resolve Conflict?

Answer :

The methods available to resolve conflict are:

1. Problem solving
2. Super ordinate goals
3. expansion of resources
4. withdrawals
5. Compromise
6. Smoothing
7. Using appropriate authority
8. Altering human variables
9. Altering structural variable.

Question 83. What Are The Different Types Of Modern Controlling Techniques?

Answer :

The different types of Modern controlling techniques are:

1. PERT/CPM
2. Human resource Accounting
3. Social audit
4. ROI Analysis Wide Span
5. Quality Circle etc.

Question 84. What Is Unity Of Command?

Answer :

Unity of command tells the reporting relationship between a superior and a subordinate. A subordinate is always having a only one superior.

Question 85. What Is Performance Appraisal?

Answer :

Performance appraisal is the system of measuring Employee performance and giving feedback to the employee regarding his performance.

Question 86. What Is Globalization?

Answer :

Doing business without geographical boundaries are known as globalization.

Question 87. What Is Decision Tree Analysis?

Answer :

This is the method used for making decisions under uncertainty and risk. In this model before arriving a decision different option are considered and its probabilistic models are developed and analyzed.

Question 88. Define Management. What Are The Functions Managers Perform To Attain The Set Goals?

Answer :

Management is the art of getting things done through the people.

1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling.

Question 89. What Are The Different Types Of Plans?

Answer :

The different types of Plans are:

1. Mission or purpose
2. Goals and Objectives
3. Strategies
4. Policies, procedures, rules
5. Programmes and projects
6. Budget.

Question 90. What Is Planning? Explain The Steps Involved In Planning?

Answer :

Decision making for the future is called Planning.

Steps in Planning :

1. Being aware of opportunity
2. Establishing goals and objectives
3. consideration of Planning Premises
4. Identification of alternatives
5. Evaluation of Alternatives
6. Selection of the best alternative
7. making supportive plans
8. Numbering the plans.

Question 91. Discuss 14 Principles Of Management?

Answer :

The 14 principles of management are:

1. Division of Labour
2. Unity of Command
3. Authority and Responsibility
4. Discipline
5. Unity of Direction
6. Centralization
7. Remuneration
8. Scalar Chain
9. Order
10. Equity
11. Stability in tenure
12. Initiativeness
13. Esprit decorps
14. Subordination of individual interest to general interest.

Question 92. Explain The Basic Control Process?

Answer :

The basic control process are:

1. Establishment of standards
2. Actual Performance
3. Measurement of actual Performance
4. Comparison between Actual performance with standard
5. Making corrective action.

Question 93. Explain How Does Operations Research Helps To Enhance Productivity?

Answer :

1. Project scheduling
2. Optimization functions
3. Assignment Problems
4. Linear Programming
5. Simulation Models.

Question 94. What Do You Understand By Principles Of Preventive Control?

Answer :

The principles of Preventive control are:

• Continuity in operation
• Attainment of Quality
• Less maintenance cost
• Job Satisfaction
• Safety and Security.