MH SET Paper 2 Mock Test - 4 (Management) - MAHA TET MCQ

Human resource planning ensures the best fit between employees and jobs while avoiding manpower shortages or surpluses. There are four key steps of the HRP process. They include analysing present labour supply, forecasting labour demand, balancing projected labour demand with supply, and supporting organisational goals.

Wholesale merchants, agents, and brokers are essential elements of the wholesale business.
They help move goods between producers and retailers and the advent of modern technologies helps them do this more efficiently.
A wholesale merchant operates in the chain between the producer and the retail merchant.
Some wholesale merchants only organize the movement of goods rather than move the goods themselves.
Limited service merchant wholesalers take title to the merchandise and assume the risk involved in an independent operation. They buy and resell products and offer a limited range of service.
Wholesale agents and brokers do not take title to the merchandise being marketed; they only bring buyers and sellers together and negotiate the terms of the transaction.
Agent merchants represent their buyer or seller, usually on a permanent basis; brokers bring parties together on a temporary basis.

Industrial sickness is said when a firm having loss in one year and is likely to continue incurring losses in current year and in following year and it also has imbalance in financial structure. It is sick unit and not a healthy unit. As it occurs losses, it also not able to pay debts and may result in default of payment.
Due to imbalance of financial structure, it also not paying dividend on shares and therefore the value of share is also declining. Due to this all morale of employees will also decrease as they are also not paid well.
Thus, all the options are correct.

The traditional marketing communications mix consists of a set of five primary tools.
Marketing communication is the “promotion” part of the “marketing mix” or the four P’s.
Strategy is an idea, a conceptualization of how a goal can be achieved.
These are advertising, sales promotion, direct marketing, public relations, and personal selling.

BCG (Boston Consulting Group matrix)

• The BCG (Boston Consulting Group matrix) is also known as the product portfolio matrix.
• It is a planning tool of the business which is used to estimate the strategic position of the brand portfolio of a firm.
• BCG matrix is a popular portfolio analysis method that classifies the product or service of a firm in a 2 × 2 matrix.
• Each quadrant is categorized as a high or low performance, according to the relative market growth rate and market share.

TQM, which stands for Total Quality Management, is a management approach focused on continuous improvement, customer satisfaction, and involvement of all employees in the quality improvement process.

The Deming triangle, also known as the Deming cycle or the PDCA (Plan-Do-Check-Act) cycle, is a fundamental concept in TQM. It was developed by Dr. W. Edwards Deming, a prominent figure in the field of quality management. The Deming triangle provides a systematic approach for achieving continuous improvement by following four steps:

• Plan: Identify objectives and plan the processes required to achieve them.
• Do: Implement the planned processes.
• Check: Monitor and evaluate the results and compare them to the objectives.
• Act: Take appropriate actions based on the evaluation to improve the processes further.

The Deming triangle is a key tool used to implement TQM principles and drive quality improvement in organizations. It emphasizes the importance of planning, executing, evaluating, and continuously improving processes to achieve quality goals.

Therefore, the correct statement is that TQM is best explained with the help of the Deming triangle (option b). The other options provided in the question are not accurate representations of TQM concepts.

The conclusion part of the business plan will identify the Feasibility of the business.

• Business plans explain what a company does, who runs the company and how the company plans on hitting revenue goals, based on competitive advantages and marketing strategies.
• Business plans are also used to seek investor loans or to finance their business.

Risk analysis of capital investment is the most complex and controversial area in finance. Risk analysis is so important to the capital budgeting process because managers need the appropriate data to make decisions on the current and future assets of the organisation. To ensure that the company is not overwhelmed by bad decisions, the risk analysis is a tool that gives the manager the ability to mitigate risk. Capital expenditure decisions are irreversible because it involves huge cash outlay and if they are reversible they involve huge costs.

• Management Structure and nature is included in internal environment.
• It composition of Board of Directors, Professionalization of management.
• Remaining factors are related to external environment.
• Hence, Management Structure and nature is not external environment.

(a) Job-evaluation is used to determine compensation: This statement is true. Job evaluation is a process used to determine the relative worth of jobs within an organization, which helps in establishing a fair and equitable compensation structure.

(c) Job-enrichment is referred to as vertical job loading: This statement is also true. Job enrichment involves increasing the depth and complexity of a job by adding tasks that require more skill, responsibility, and autonomy. It is often referred to as vertical job loading because it involves enhancing the job vertically by giving employees more control and decision-making authority.

Job Evaluation criterion comes from job specification. First there will be job specifications and then according to the job specification job evaluation criterion will be set.

At the time of recruitment it is assessed that what is the job role, specifications and job duration according to that only HR manager hire people and assign particular job.

Green Buildings:

• Green buildings fulfill certain criterion for reducing the exploitation of natural resources that are utilized in their construction.
• Furthermore, green buildings include some enhanced features related to green practices such as energy efficiency, renewable energy, and storm water management.
• Recent years have witnessed a great upsurge in adoption of green buildings by organizations at a fast pace.
• The business world has become increasingly aware of the significant role played by green buildings while dealing with environmental issues.
• Green buildings also serve as a platform for financial savings for organizations as their construction and engineering involve low cost.
• Business giants like Ford, Pepsico, etc. are committed to sustainability and have included green building design principles into their buildings.
• Fortune 1000 companies are adopting company-wide sustainability policies that have increased the demand for work space in Green or sustainable buildings.

Hence, the correct answer is Option d.

Grapevine is an informal communication, unorganised and unofficial channel of communication in an organisation. When the formal channels fail or do not work properly and some over-smart people spread rumours, false and irresponsible statement or half-truths in all the directions, it is called the communication on the grapevine channel.

The product is developed keeping in view a particular need of a set of consumers, and introduced in the market by initiating its commercial production. At this stage, product is new in the market, consequently its demand is low and requires vigorous sales efforts. The promotional costs are, therefore, high at this stage and the production costs are also not fully recovered due to low volume of sales. Low initial price is regarded as the principal means for entering into mass market for some new products.
Firms generally enter into production of new products with less capacity of the plant initially because on an average, every firm is very much concerned to ensure its future growth or is faced with the constant threats of competitive innovative developments.

Selective attention and selective apprehension is the correct combination to define the process of perception in order to understand consumer behavior.

Perception depends on selective attention on behavior of people like feeling, hearing, seeing, smelling and tasting through organization and interpretation which results in attitude and behavior.

Globalization: It refers to the process of distinct and separate national marketplaces coming together to form a vast global marketplace.

• Globalization is the transfer of goods/ services, technologies, information as well as jobs among various countries.
• By facilitating the cross-border transportation of goods/ services capital etc., globalization has boosted economic growth and created new jobs as well.
• On a global scale, globalization has also increased social justice.

There are various advantages of globalization;

• Economic Growth
• Increase in cross border transactions/ investment
• Enhancing Job opportunities
• Opening up new market opportunities
• Easy access to labour
• Production of good quality products etc.

Hence, the correct answer is It opens up new market opportunities.

Customer Relationship Management is the process of making and keeping customers while maximizing their profitability, behaviors, and satisfaction. It involves managing and nurturing relationships with customers throughout their entire lifecycle, from acquisition to retention and loyalty.

CRM focuses on understanding customers' needs, preferences, and behaviors to develop targeted strategies and initiatives. It encompasses various activities such as gathering customer data, analyzing customer insights, implementing personalized marketing campaigns, providing exceptional customer service, and maintaining ongoing communication with customers.

By effectively implementing CRM practices, organizations can enhance customer satisfaction, increase customer loyalty and retention, and ultimately maximize customer profitability. CRM systems and strategies enable businesses to build strong relationships with customers, tailor their offerings to meet customer needs, and provide a superior customer experience.

Supply Chain Management (Option a) refers to the coordination and management of all activities involved in the production, procurement, and distribution of goods and services. While supply chain management is important for overall business operations and efficiency, it is not directly focused on customer relationship management.

Total Quality Management (Option b) is an approach that focuses on continuously improving the quality of products, services, and processes within an organization. While customer satisfaction is a key aspect of Total Quality Management, it does not encompass the full scope of customer relationship management.

Partner Relationship Management (Option d) involves managing and nurturing relationships with business partners, suppliers, distributors, and other external partners. While partner relationships are important, they are not the sole focus of maximizing customer profitability and satisfaction as in customer relationship management.

Therefore, option c, Customer Relationship Management, is the most appropriate choice when it comes to the process of making and keeping customers while maximizing their profitability, behaviors, and satisfaction.

Rorsach value survey is a classification system of values consisting two sets of values.

1. Terminal values
2. Instrumental values

Each one has 18 individual value items in it. Out of them the Instrumental Values are:

1. Cheerfulness
2. Ambition
3. Love
4. Cleanliness
5. Self-Control
6. Capability
7. Courage
8. Politeness
9. Honesty
10. Imagination
11. Independence
12. Intellect
13. Broad-Mindedness
14. Logic
15. Obedience
16. Helpfulness
17. Responsibility
18. Forgiveness

Thus, from this list we can say that wise is not included in this.

• Bayesian probability is one interpretation of probability that can be seen as an extension of propositional logic that enables reasoning with hypothesis.
• Conditional probability is the probability of an event (A), given that another (B) has already occurred.
• Joint probability is occurred when there is probability of two events occurring together. That means one event occurs at the same time when another event occurs.
• Simple probability of the occurrence an event is called Marginal probability also known as unconditional probability. In this one event is occurred irrespective to the occurrence of other event.

Perception is the process of interpreting and making sense of sensory information. In an organizational context, perception plays a role in a wide range of activities, including performance evaluation, performance expectations, and job evaluation.

Important Points

Managerial Implications of Perceptions

People in organisations are always judging each other. Managers must appraise their subordinate’s performance. Let us look at the more obvious applications of perceptions in organisations.

• Employment Interview: A major input into who is hired and who is rejected in any organisation is the employment interview. Evidence indicates that interviewers often make inaccurate perceptual judgements. Interviewers generally draw early impressions that become very quickly entrenched.
• Performance Evaluation: An employee’s performance appraisal very much depends on the perceptual process. The performance appraisal represents an assessment of an employee’s work. While this can be objective, many jobs are evaluated in subjective terms. Subjective measures are, by definition, judgemental.
• Performance Expectations: A manager’s expectations of an individual affect both the manager’s behaviour towards the individual and the individual’s response.
• Productivity: What individuals perceive from their work situation will influence their productivity.
• Job Satisfaction: Job satisfaction is a highly subjective, and feeling of the benefits that derive from the job. Clearly his variable is critically linked to perception.
• Job evaluation: It is a systematic process for assessing the relative worth of different jobs within an organization. It involves the use of various methods and criteria to evaluate the tasks, duties, and responsibilities associated with each job, and to determine the relative value of each job in comparison to others.

The correct answer is External factor, Opportunity. 

SWOT analysis:

• SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities, and threats. These words make up the SWOT acronym.
• The primary goal of SWOT analysis is to increase awareness of the factors that go into making a business decision or establishing a business strategy.
• To do this, SWOT analyzes the internal and external environment and the factors that can impact the viability of a decision.

Key Points

Elements of SWOT Analysis: 

• Strengths: Internal attributes and resources that support a successful outcome, such as a diverse product line, loyal customers, or strong customer service.
• Weaknesses: Internal factors and resources that make success more difficult to attain, such as a weak brand, excessive debt, or inadequate staffing or training.
• Opportunities: External factors that the organization can capitalize on or take advantage of, such as favorable export tariffs, tax incentives, or new enabling technologies.
• Threats: External factors that could jeopardize the entity's success, such as increasing competition, weakening demand, or an uncertain supply chain.

Important Points

• Liberalization refers to the removal of controls in an industry or market to encourage the entry of new suppliers and thereby, increase the intensity of competition.
• In short – it means attempts to lower entry barriers so that a market becomes more contestable.
• Thus liberalization of geographical markets is an opportunity or an external factor that has a positive impact on the growth of an organization. 

Hence, Liberalization of geographic markets is considered an external factor or opportunity under SWOT analysis.

Attribute:

• The term "attribute" refers to a person's trait or personality.
• An individual can be a place, an item, or a person.
• The information for which no accepted measurement device can be used is referred to as qualitative data.
• Such information is typically used to assess a person's quality.
• Quantitative and numerical values cannot be used to quantify qualitative facts.

Important Points

•  Different attributes in themselves are called different classes and 'the number of observations assigned to them are called class frequencies which are denoted by bracketing the class symbols. Thus (A) stands for the frequency of A.
• The total number of ultimate / highest order class frequencies are 2ⁿ.
• The total number of class frequencies of all orders, for n attributes are 3ⁿ.

Hence, with n attributes the total number of ultimate frequencies are 2n

Equity Theory defines motivation is a function of fairness in social exchanges. It focuses on determining whether the distribution of resources is fair to both relational partners. Equity is measured by comparing the ratio of contributions and benefits for each person.

Expectancy theory, initially put forward by Victor Vroom at the Yale School of Management, suggests that behavior is motivated by anticipated results or consequences. Vroom proposed that a person decides to behave in a certain way based on the expected result of the chosen behavior.

Goal-setting involves the development of an action plan designed to motivate and guide a person or group toward a goal. It helps in determining specific levels of performance for workers to attain and then striving to attain them.

ERG Theory is a theory in psychology proposed by Clayton Alderfer. Alderfer's regression hypothesis suggests that when people are frustrated by their inability to meet needs at the next higher level in the hierarchy, they regress to the next lower category of needs and intensify their desire to gratify these needs.

An assessment centre is a place and a technique where candidates are examined to determine their suitability for specific types of employment, especially management. The candidates' personality and aptitudes are determined by techniques including interviews, group exercises, presentations, examinations and psychometric testing.

Merger is defined as combination of two or more companies into a single company where one survives and the others lose their corporate existence. The survivor acquires all the assets as well as liabilities of the merged company or companies. Generally, the surviving company is the buyer, which retains its identity, and the extinguished company is the seller.

The "Marketing plan" is not included in the 7 Ps of services marketing. The 7 Ps framework is a marketing concept specifically designed for services marketing and includes the following elements:

• Product (or service): Refers to the core offering being provided to customers.
• Price: Determines the monetary value assigned to the service.
• Place (or distribution): Concerns the channels and locations through which the service is made available to customers.
• Promotion: Involves the marketing activities aimed at promoting and communicating the service to the target audience.
• People: Refers to the personnel, employees, or individuals involved in delivering the service and interacting with customers.
• Process: Describes the procedures, systems, and activities involved in delivering the service to customers.
• Physical evidence: Includes the tangible elements or physical aspects that support the delivery of the service, such as the environment, facilities, or equipment.

While a marketing plan is an essential component of any marketing strategy, it is not one of the 7 Ps specifically associated with services marketing.

Satisficing model says, “the ability of managers to be completely rational in making decisions is limited by certain factors”.

Intelligence tests explore alertness, comprehension and reasoning abilities of applicants. (a) Work sampling tests are a means of measuring practical ability of the candidate on a specific job. (b) Knowledge tests evaluate the applicant’s knowledge about the company, its competitors and customers, its products, the target market and the like. (c) Personality tests are means of measuring characteristics such as patterns of thoughts, feelings etc., of an individual. (e) Performance tests are same as work sampling tests.

Preventive Control emphasizes on control through speculation of deviations rather than exercising control after the deviations have occurred.

The correct answer is falling prices.

• Current prices are those that are listed at a specific time and are considered to be in nominal value.
• Constant prices are corrected for changes in prices relative to a baseline or reference data, or in real value.

Key Points

• The money value of the final goods and services produced by typical citizens of a country in a year, assessed at the prices of the current year, is known as national income at current prices.
• The money value of the final goods and services generated by typical citizens of a country in a year, assessed at base year prices, is known as national income at constant prices.
• National income at current prices is more than national income at constant prices. Prices are falling at this time.

Hence, the correct answer is that national income at constant prices will be lower than national income at current prices during the period of falling prices.