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

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

According to Graicunas Theory, the maximum number of subordinates considered appropriate 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. 3

  2. 5

  3. 6

  4. 8

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Correct Option: C
Explanation:

According to Graicunas Theory, the maximum number of subordinates considered appropriate is 6. The formula for Gracuinas Theory is n(2n/2 + n + 1) where n= number of subordinates.

_______________ involves selective control or control at strategic points.

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. Management by exception

  2. Critical point control

  3. Span of control

  4. All of the above

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Correct Option: A
Explanation:

Management by exception is a special skill of managing by attending only to exceptionally important matters and taking vital decisions. Routine matters are to be handled by the lower- level officers. It involves selective control or control at strategic points.

Identify the benefit(s) of control by exception.

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. Better utilization of resources

  2. Speeds up decision-making

  3. Provides motivation for employees

  4. All of the above

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Correct Option: D
Explanation:
The benefits of control by exception are:
  • It allows the manager to prioritise his time for important issues 
  • Since the manager devotes more time for important  issues it speeds up decision-making. 
  • The subordinates are given authority to make decisions on routine matters by the executives which provides them motivation.

The fact 'an attempt to control everything may end up in controlling nothing' is related to which os the following concepts?

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. Performance standards

  2. Management by Exception

  3. Planning and Controlling

  4. Decentralisation

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Correct Option: B
Explanation:

Management by exception is a special skill of managing by important matters and taking vital decisions. Routine matters are to be handled by the lower level officers.

Identify the factor of span of control which suggests that efficient and well-trained subordinates create lesser demand on the superior's time and capacity.

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. Capacity of superior

  2. Clarity of plans

  3. Location of operations

  4. Ability of subordinates

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Correct Option: D
Explanation:

Ability of subordinates are his leadership, administrative capabilities, ability to communicate, to judge, listening, to guide and inspire, etc. Hence, efficient and well-trained subordinates create lesser demand on the superior's time and capacity.

____________ is a diagnostc instrument for identifying organisational weaknesses.

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. Decentralisation

  2. Span of management

  3. Monitoring

  4. Planning

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Correct Option: B
Explanation:

The Span of Management refers to the number of subordinates who can be managed efficiently by their superiors. Simply, managers having a group of subordinates who report to him directly is called as the span of management. It helps to identify the organisational drawbacks and tries to mend them with corrective measures.

The theory of Graicunas is criticized as it deals only with an upward relationship.

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. True

  2. False

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Correct Option: B
Explanation:

V.A. Graicunas made a study on superior-subordinate relationship known as the Gracuinas Theory, Graicunas theory faces criticisms for the fact that he did not include certain possible relationships and also ignored the frequency of the relationships. 

In a simple way, 'span of control' can be meant as the number of subordinates that report directly to one manager.

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. True

  2. False

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Correct Option: A
Explanation:

Span of control is a term originating in military organization theory, but now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates who report directly to a given manager or supervisor.

__________ is a person-to-person concept.

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. Management by exception

  2. KRA

  3. Critical point control

  4. Span of control

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Correct Option: D
Explanation:

Span of control is a term originating in military organization theory, but now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates who report directly to a given manager or supervisor.

______ span of management control creates ______ structures that has many levels of management.

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. Narrow; flat

  2. Wide; flat

  3. Wide; tall

  4. Narrow; tall

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Correct Option: D
Explanation:
The manager having group of subordinates reporting to him directly is called as the span of management. There are two kinds: Wide and Narrow. With the wider span, there will be less hierarchical levels, and thus, the organizational structure would be flatter. Whereas, with the narrow span, the hierarchical levels increases, hence the organizational structure would be tall.