Tag: management by objectives (mbo) and management by exception (mbe)

Questions Related to management by objectives (mbo) and management by exception (mbe)

Span of management refers to

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. Number of managers

  2. Length of term for which a manager is appointed

  3. Number of subordinates under a superior

  4. Number of members in top management

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Correct Option: A
Explanation:

 The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply, the manager having the group of subordinates who report him directly is called as the span of management.

Which of the following  is / are non-traditional control device(s) of control system?

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. CPM

  2. PERT

  3. BEP

  4. Both (A) & (B)

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Correct Option: D
Explanation:
The various techniques of managerial control may be classified into two broad categories: traditional techniques, and modern techniques.
Traditional techniques include: (a) Personal observation (b) Statistical reports (c) Break-even analysis (d) Budgetary control
Modern techniques (non-traditional) include: (a) Return on investment (b) Ratio analysis (c) Responsibility accounting (d) Management audit (e) PERT and CPM (f) Management information system

Match the following :

List I List II
P. Break - Even Analysis 1. Modern control devices
Q. Internal Audit 2. Directed towards the dynamic management of projects
R. Management Audit 3. Traditional control device
S. PERT system 4. Widely used tool of managerial control


Select the correct answer from the options given below -



organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. P - 4, Q - 3, R - 1, S - 2

  2. P - 3, Q - 4, R - 2, S - 1

  3. P - 3, Q - 4, R - 1, S - 2

  4. P - 4, Q - 3, R - 2, S - 1

Show answer
Correct Option: C
Explanation:
  • Break even analysis is a traditional control device of control system where  the actual revenue performance is compared with the planned revenue performance so that corrective measures can be taken in case of any deviations or difference. 
  • Internal audit is a part of the traditional controlling system where internal audit by the management of the company is undertaken to control the deviations if any for the achievement of organisational goals.
  • Management audit is a technique in which professionals are called by the company to keep a check on the performance of the management of the company and prepare a performance appraisal report for the same.
  • PERT system is a control system which is directed towards the dynamic management in case of dynamic business environment. 

Management information system facilitates collection, management and dissemination of information at ________ levels of management and across ________ departments of the organisation.

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. different, same

  2. same, same

  3. different, different

  4. same, different

Show answer
Correct Option: C
Explanation:

Management information system facilitates collection, management and dissemination of information at different levels of management and across different departments of the organization. Management information system is a computer-based information system that provides information and support for effective managerial decision-making. It helps to gather data from multiple online system.It also help to visualize and control the information in an organization.

A _________ diagram is prepared to show the sequence of activities, the starting point and the termination point of the project

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. Chart

  2. Network

  3. Flow

  4. Tree

Show answer
Correct Option: B
Explanation:

A network diagram is prepared to show the sequence of activities, the starting point and the termination point of the project. It has beginning and terminal points of the project. Network diagram shows the sequence of activities involved in a project.

PERT requires the preparation of ________ time estimates.

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. One

  2. Two

  3. Three

  4. Four

Show answer
Correct Option: C
Explanation:

PERT requires the preparation of  three time estimates. There are three estimation times involved in PERT: Optimistic Time Estimate , Most Likely Time Estimate and Pessimistic Time Estimate. In PERT, these three estimate times are derived for each activity.

Which of the following is not an advantage of management information system?

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. It supports planning, decision-making and controlling at all levels.

  2. It ensures cost effectiveness in managing information.

  3. It increases information overload on the managers as only relevant information is provided to them.

  4. It improves the quality of information with which a manager works.

Show answer
Correct Option: C
Explanation:

It increases information overload on the managers as only relevant information is provided to them- it is not an advantage of management information system. Management information system facilitates collection, management and dissemination of information at different levels of management and across different departments of the organization

A group of documents that inform, analyze or recommend is _________.

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. Report

  2. Memo

  3. Letter

  4. Fax

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Correct Option: A
Explanation:

A group of documents that inform, analyze or recommend is a report. Report can be defined as a formal document which helps to conduct the comprehensive analysis of the organizational activities. For instance, annual report of a company presents a comprehensive analysis on the activities of the company throughout the preceeding year.

When legitimate needs of employee remain unfulfilled then the grievances that arise is called ________.

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. factual

  2. imaginary

  3. disguised

  4. none of these

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Correct Option: A
Explanation:

When legitimate needs of employee remain unfulfilled then the grievances that arise is called factual. Within which the employee expects the organization to fulfill his aspirations, needs or expectations. 
When these legitimate needs of expectations or aspirations are not fulfilled, the employee will be dissatisfied with the job.Such dissatisfaction is called factual grievance.

Which of the following is NOT a characteristic of a narrow span of control?

organization of commerce and management management by objectives (mbo) and management by exception (mbe) meaning and definition of mbo meaning and definition of mbe controlling

  1. There is less opportunity to delegate

  2. This form of span of control creates a smaller hierarchy within the business

  3. Supervision and control are tighter

  4. The distance between the top and bottom of the organisation is greater

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Correct Option: C
Explanation:

In a tall organisational structure which has a narrow span of control, it is not possible to have an effective supervision and control. Communication takes longer than usual which hampers decision making of the company.