MH SET Paper 2 Mock Test - 5 (Management) - MAHA TET MCQ

Transactional Analysis, developed by psychiatrist Eric Berne, is a form of modern psychology that is related to personality. The theory outlines how we develop and treat ourselves, how we relate and communicate with others, and offers suggestions and interventions which will enable us to change and grow. Transactional Analysis is underpinned by the philosophy that people can change. We all have a right to be in the world and be accepted.

Liquidation value is the likely price of an asset when it is allowed insufficient time to sell on the open market, thereby reducing its exposure to potential buyers. Liquidation value is typically lower than fair market value.
Liquidation value may be either the result of a forced liquidation or an orderly liquidation. Either value assumes that the sale is consummated by a seller who is compelled to sell and assumes an exposure period which is less than market normal.

The number of different product categories across which different brands and products created by a company are classified is called product mix width.
For instance, if a company offers milk and yogurts, this indicates that its product mix has two lines. Similarly, a cosmetic company manufactures four different types of products – jewellery, cosmetics, fashion and household items. Its product mix width is 4.

(a) Outdoor media is a form of mass media which comprises billboards, signs, placards placed inside and outside commercial buildings/objects like shops/buses, etc. The media of communication is limited to audience selectivity; creative limitations.
(b) The yellow pages are all business listings, with the name, number and address of local businesses. The limitations of this media is high competition; long ad purchase lead time; creative limitations.
(c) A brochure is an informative paper document (often also used for advertising) that can be folded into a template, pamphlet or leaflet. Though it is a good communication medium, its over production can lead to runaway costs.
(d) Telephone is a good medium of mass communication, however relative high cost; increasing consumer resistance makes this medium obsolete.

• A Trade union is an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
• The main object of trade union is to maintaining or improving the conditions of their employment. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies.
• So, a trade union is on organisation of workers for their demand.

• The first important idea about how advertising works was based on how the personal selling process works.
• Developed by Strong, the AIDA model has become extremely well known and used by many practitioners.
• AIDA refers to the need to first create awareness, secondly generate interest, then drive desire, from which action (a sale) emerges.

Principles Of Service Marketing Management Interview Questions ... pricing, distribution, advertising, and competition); it's hard to isolate the effects these ... Service companies must identify the right quality initiatives and execute them effectively. Customers' expectations play a critical role in their service experiences and evaluations.

When the conflict becomes critical and chronic then partners have to resort to diplomacy method.
In Diplomacy, the partners in the conflict send one person from each side to resolve the conflict.
So, when conflict is acute or chronic, the parties need to resort it todiplomacy.

The process of standardizing jobs by laying down rules and procedures to be adhered to is called Formalisation.

• ​Process standardization refers to the organization of different tasks, approaches, and administrative steps in a business, as well as their formalization and documentation.
• An advantage of formalization is that it makes employee behaviour more predictable.
• As a result, employees handle issues uniformly throughout the company, which promotes consistency in behaviour.

Managerial Grid model of leadership 

• The managerial grid model (1964) is a style leadership model developed by Robert R. Blake and Jane Mouton.
• This model originally identified five different leadership styles based on the concern for people and the concern for production.
• In this style, managers have low concern for both people and production.
• The Managerial or Leadership Grid is used to help managers analyze their own leadership styles through a technique known as grid training.
• This is done by administering a questionnaire that helps managers identify how they stand with respect to their concern for production and people.
• The Leadership Grid is a model of behavioral leadership developed in the 1960s to measure concern for production against concern for people.

The grid identifies five types of leaders:

• Impoverished
• Produce or Perish
• Middle of the Road
• Country Club
• Team.

The two dimensions of leadership, viz. concern for people on the ‘vertical’ axis and concern for production on the ‘horizontal’ axis.

Managerial Grid Model is based on two behavioral dimensions:

• Concern for people: This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task.
• Concern for production: This is the degree to which a leader emphasizes concrete objectives, organizational efficiency, and high productivity when deciding how best to accomplish a task.

The correct answer is the Toyota manufacturing system

• Just in time is a resource management technique founded by Taiichi Ohno at the Toyota car assembly plants in the 1970s.
• It decreases waste by supplying materials on time, it is used primarily for high-volume repetitive flow manufacturing processes.
• Just in time referred as the Toyota manufacturing system​

Important Points

• JIT philosophy on wastatge deletion by of production process
• Reduces the cost of buffer inventory​​

Hence the correct answer is Toyota manufacturing system.

Organizational culture refers to the beliefs and values that have existed in an organization for a long time, and to the beliefs of the staff and the foreseen value of their work that will influence their attitudes and behavior. Managers usually adjust their leadership behavior to accomplish the mission of the organization, and this could influence the employees' job satisfaction. 

Important Points

• Symbiotic relationships are common in nature; one creature's survival depends on a reciprocal relationship with others.
• Under a symbiotic system, management provides the requisite coordination, planning, financing, and leadership functions that increase organizational worth when associates perform well.
• Bureaucratic leadership can be defined as a system of management that follows a hierarchy where official duties are fixed.
• Employees in this form of leadership are expected to follow specific rules and authority created by their superiors.

Hence, according to some cultures, the relationship between management and employees is both symbiotic and bureaucratic. 

• In the present scenario, Green HRM is an emerging topic.
• Green HRM was developed from the Green movement around the world.
• The concept of Green HRM has become popular worldwide. Its meaning differs from person to person.
• It attempts to boost energy savings or reduce the pollution created by industries and general living habits.
• The primary aim of greening is to minimize the possible adverse effects of energy consumption and pollution on the environment.
• Implementing green technology as a corporate plan will promote business success in the ever-evolving world.
• The inevitable fact is that organizations will play a critical role in the fight against global warming. HRM will fulfill the company’s dedication to green practices with the help of management and its employees.

Hence, the correct answer is All of the Above.

The balanced scorecard demands that managers translate their general mission statement on customer service into specific measures that reflect the factors that really matter to customers.

To achieve goals on cycle time, quality, productivity, and cost, managers must devise measures that are influenced by employees’ actions.

Since much of the action takes place at the department and workstation levels, managers need to decompose overall cycle time, quality, product, and cost measures to local levels. 

That way, the measures link top management’s judgment about key internal processes and competencies to the actions taken by individuals that affect overall corporate objectives.

This linkage ensures that employees at lower levels in the organization have clear targets for actions, decisions, and improvement activities that will contribute to the company’s overall mission.

Hence, the correct answer is It helps in communicating the day-to-day changes in the organization.

Trade Secret: 

Trade secrets are intellectual property (IP) rights on confidential information which may be sold or licensed. In general, to qualify as a trade secret, the information must be:

• commercially valuable because it is secret,
• be known only to a limited group of persons, and
• be subject to reasonable steps taken by the rightful holder of the information to keep it secret, including the use of confidentiality agreements for business partners and employees.

Rules regarding trade secrets:

• The unauthorized acquisition, use, or disclosure of such secret information in a manner contrary to honest commercial practices by others is regarded as an unfair practice and a violation of trade secret protection.
• In general, any confidential business information which provides an enterprise a competitive edge and is unknown to others may be protected as a trade secret.
• Trade secrets encompass both technical information, such as information concerning manufacturing processes, experimental research data, and software algorithms, and commercial information such as distribution methods, list of suppliers and clients, and advertising strategies.
• There is no statute or legislation that governs the protection of trade secrets in India.
• According to the governing bodies of common laws, the life of a trade secret is 20 years.
• Depending on the legal system, the legal protection of trade secrets forms part of the general concept of protection against unfair competition or is based on specific provisions or case law on the protection of confidential information.
• While a final determination of whether trade secret protection is violated or not depends on the circumstances of each individual case, in general, unfair practices in respect of secret information include breach of contract breach of confidence, and industrial or commercial espionage.

Hence, according to the governing bodies of common laws, the life of a trade secret is 20 years.

Job analysis is a process of obtaining job facts. It is used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.

Job description is a statement of duties and responsibilities of a job. The analysis considers the areas of knowledge, skills and abilities needed to perform the job.

Job specification is a statement of human qualities to fill the job. It comprises educational qualifications, specific qualities, level of experience, etc.

Job classification is a process of grading jobs according to scale of pay. Job classification groups jobs into various grades, each grade having a certain specific class description.

In small group communication, different types of communication flow can be observed, and all of the options listed - circular flow with feedback, centralized flow with feedback, and chain flow with feedback - are valid forms of communication within a small group.

• Circular flow with feedback: In this type of communication, group members communicate with each other in a circular pattern, where each member has an opportunity to share their thoughts or ideas. Feedback is provided by other group members, creating a continuous flow of communication within the group.
• Centralized flow with feedback: In this type of communication, the group's communication is centralized around a leader or a central figure. The leader directs the communication flow, and other group members provide feedback or contribute to the discussion based on the leader's direction.
• Chain flow with feedback: This type of communication involves a sequential flow of information, where each group member communicates with the next member in line. Feedback is provided at each step, allowing for continuous interaction and input from all group members.

All three communication flows can be observed in small group settings, depending on the dynamics and structure of the group. Therefore, the correct answer is (D) All a., b., and c. are correct.

Finding the interested candidates who have submitted their profile for a particular job is the process of recruitment and choosing the best and most suitable among them is the process selection. Selection is the process of putting right men on right job. Process of selection:

• Receiving applications
• Application blank
• Screening interview
• Employment tests
• Selection interview
• Medical examination
• Reference checks
• Hiring decisions

Decision variable is a terminology used in linear programming to represent the variables which will decide output.
For example if one has to decide upon how much or how many units of product type A and B be purchased by multiplying by its per unit profit of Rs. 6 and Rs. 5 respectively to maximize the profit say Z, total units of A assumed as X and B as Y
Linear equation will be profit: Max Z = 6X + 5Y
Here total number of units A and B denoted by X and Y are decision variables.
So, decision variables to tell how much or how many of something to produce, invest or purchase etc.

Portfolio:

• A portfolio’s meaning can be defined as a collection of financial assets and investment tools that are held by an individual, a financial institution, or an investment firm. 
• The said collection of financial assets may also be valuables ranging from gold, stocks, funds, derivatives, property, cash equivalents, bonds, etc

Portfolio Analysis:

• Portfolio Analysis is one of the areas of investment management that enable market participants to analyze and assess the performance of a portfolio (equities, bonds, alternative investments, etc.), intending to measure performance on a relative and absolute basis along with its associated risks.
• Portfolio analysis is the process of studying an investment portfolio to see whether it meets a given investor's needs, preferences, and resources.
• It also measures how likely it is to meet the goals and objectives of a given investment mandate.
• This is done on a risk-adjusted basis, looking at factors such as how the asset class performed in the past, as well as inflation.
• It is only a subjective tool, however, and is not a substitute for the ultimate professional judgment of the responsible decision-makers.

Hence, the correct answer is that portfolio analysis can substitute professional judgment.

The Hind Mazdoor Sabha is a national trade union centre in India.The HMS was established in Howrah, West Bengal on 29th December, 1948, by socialists, Forward Bloc followers and independent unionists.

Gross national product (GNP) is a broad measure of a nation's total economic activity. GNP is the value of all finished goods and services produced in a country in one year by its nationals. To calculate GNP following methods are used:
(a) Income method
(b) Value Added method
(c) Expenditure method

Market segmentation is the process of dividing prospective consumers into different groups depending on factors like demographics, behaviour and various characteristics. Market segmentation helps companies better understand and market to specific groups of consumers that have similar interests, needs and habits. Before a company decides to target a particular market segment, some important factors like market size, growth rate, structural attractiveness are to be examined against organisation's objectives and resources.

• On the basic of the per capita income the classification has been made.
• Those are low income economy, high income economy and middle income economies.
• Low income economies with per capita GNI of 1035$ or less is regarded as low income economics.
• Low income economies referred as third world.

Perfect Competition: 

• Perfect competition is a unique form of marketplace that allows multiple companies to sell the same product or service.
• None of these firms can set a price for the product or service they are selling without losing business to other competitors.
• There are no barriers to any firm that is looking to enter or exit the market.
• The final output from all sellers is so similar that consumers cannot differentiate the product or service of one company from its competitors.

Monopolistic competition:

• Monopolistic competition definition says that it stands for an industry in which many firms service similar products which are not a perfect substitute.
• There are very low barriers to entry or exit in monopolistic competition.
• In this competition, one firm decision doesn't affect the whole industry or another firm.
• Monopolistic competition is just related to the business strategy of brand variation.

Important Points

• Products in monopolistic competition are close substitutes; the products have distinct features, such as branding or quality.
• This is unlike both a monopolistic market, where there are no substitutes for products and perfect competition, where the products are identical.
• Thus Statement I is correct. 
• Under monopolistic competition, many sellers offer differentiated products—products that differ slightly but serve similar purposes.
• By making consumers aware of product differences, sellers exert some control over price.
• In an oligopoly, a few sellers supply a sizable portion of products in the market.
• Thus Statement II is also correct. 

Hence, Both Statement I and Statement II are correct. 

Work measurement refers to the length of time it takes to complete a work task assigned to a specific job. It is the application of techniques which is designed to establish the time for an average worker to carry out a specified manufacturing task at a defined level of performance.

CRM aids in customer satisfaction and satisfied customers remain loyal to the business, spreading good word-of-mouth as well.
This can be accomplished by fostering customer engagement via social networking sites, online and offline polls, interactive blogs, and various other mobile and web platforms.

The human capital theory was initially developed in the United States and Europe in the 1950s. Later, this theory was applied to undeveloped countries. Human Capital refers to the productive capacities of Human beings as income producing agents in the economy and may be defined as the ‘stock of skills and productive knowledge embodied in people.

• Human capital is aggregate 'the knowledge, skills, competencies, and attributes in individuals that facilitate the creation of personal, social, and economic well-being' with the social.
• Human capital formation rests on the proposition that people enhance their capabilities as producers and consumers by investing in themselves through schooling, health, on the job training, searching for information about job opportunities, and investing in migration 
• The advocates of this theory though that it is not only the physical capital stock, i.e., labor, which is important but also human capital stock, such as education, which is critical to the growth and development of a nation.
• They argued that when people become more and more educated, they become more productive. There is a close relationship between the number of years of schooling and the income level of a person. In other words, increasing the level of schooling would lead to higher earning.

Note:

• The human capital theory is not describing any kind of behavior of parties. 
• According to signaling theory holds a prominent position in a variety of management, entrepreneurship, and human resource management.

Hence, we can conclude that 'Human Capital Theory' is the aggregate stock of competencies, knowledge, social, and personal attributes.

The five M's of management are analyzed below:

Money:

• money is the most critical and all purpose resource  because it is used to acquire or hire other resources. In organization , money is employed to generate more money in the form of profits or surplus. A business firm or enterprise requires money in the form of fixed capital and working capital.

Manpower :

• manpower refers to the managerial and non-managerial personnel employed in an organization. Other resources cannot act by themselves and have to be utilised by human beings. Therefore, human resources mobilize, allocate and utilize the physical and financial resources of an organization.

Materials :

• materials represent the physical raw materials and intermediate products (semi-finished goods) which are converted and/or assembled into finished products with the help of certain processes and technology.

Machinery: 

• machines are the equipment used to process the materials into finished or semi-finished products. Employment of modern machinery helps to reduce costs and to improve the quality of output. Technology has therefore become an important ingredient in the efficient management of organizations.

Methods: 

• methods refer to the normal and prescribed ways of doing things various operations are performed according to certain systems and procedures. Use of right methods helps to increase efficiency of operations and contributes to effective management.

Every other factor which is a part of the five M's has it's own dynamics. it is the duty of management or managers to understand or analyse the basic nature and the functions of each M and the source of its availability. Managers must clearly know the purposes for which the other factors are employed and coordinate them in such a way as to optimize their combined productivity.