All Free Management Sciences MCQs with Answers

• A. A policy guides decisions, while a procedure specifies steps
• B. A policy specifies steps, while a procedure states broad goals
• C. A policy assigns jobs, while a procedure sets authority limits
• D. A policy measures results, while a procedure motivates staff

Explanation: A policy provides a general boundary or guide for making decisions. A procedure is a prescribed sequence of steps for handling a recurring…

• A. To group related activities under suitable units
• B. To remove the need for managerial supervision
• C. To transfer all authority to lower employees
• D. To replace organisational objectives with procedures

Explanation: Departmentalisation groups related jobs and activities into units such as marketing, finance or production.

• A. Providing training for the employee's assigned role
• B. Setting the organisation's long-term mission
• C. Comparing output with a performance standard
• D. Issuing instructions about daily work

Explanation: Staffing includes developing and maintaining the workforce, including training and placement.

• A. Enough authority to discharge assigned responsibility
• B. More responsibility than authority to ensure caution
• C. Authority without responsibility to preserve flexibility
• D. Equal authority with every manager in the organisation

Explanation: A person cannot reasonably be held responsible for results without having sufficient authority to obtain resources and direct relevant…

• A. More managerial levels and closer supervision
• B. Fewer managerial levels and wider supervision
• C. No need for delegation between managers
• D. Complete removal of communication problems

Explanation: When each manager supervises relatively few subordinates, more hierarchical levels may be needed.

• A. Supervising the daily work of operating employees
• B. Formulating the organisation's overall mission
• C. Approving national economic policy
• D. Designing the ownership structure of the business

Explanation: First-line managers directly supervise nonmanagerial employees and oversee routine operations.

• A. It helps managers correct future performance
• B. It establishes ownership of the organisation
• C. It replaces the need for performance standards
• D. It guarantees that employees accept every decision

Explanation: Information about actual results compared with standards enables managers to take corrective action in a later period or activity.

• A. Interdependent and directed toward a common objective
• B. Performed by one person without shared resources
• C. Unrelated and judged by separate objectives
• D. Completed before organisational planning begins

Explanation: Coordination integrates interdependent efforts so that departments and individuals work toward common organisational objectives.

• A. Unity of direction
• B. Division of work
• C. Centralisation
• D. Order

Explanation: Unity of direction means that activities sharing one objective should have one plan and one head.

• A. It continuously combines resources through related functions
• B. It is limited to issuing orders to subordinate employees
• C. It concerns only financial decisions made by owners
• D. It ends once organisational objectives are initially stated

Explanation: Management is a continuous process that uses planning, organising, staffing, directing, coordinating and controlling to achieve…

• A. Standing plan
• B. Single-use plan
• C. Contingency plan
• D. Strategic plan

Explanation: A single-use plan is created for a specific activity or situation and ends when its objective is achieved.

• A. Policy
• B. Project
• C. Programme
• D. Budget

Explanation: A policy gives broad guidance for consistent decision-making in recurring situations.

• A. Employees should report to several managers
• B. Specialisation improves efficiency
• C. Authority should remain at the top
• D. Workers should change jobs frequently

Explanation: Division of work means assigning specialised tasks so that employees develop skill and perform more efficiently.

• A. Line authority
• B. Staff authority
• C. Functional authority
• D. Personal authority

Explanation: Staff authority allows specialists to advise and support line managers without directly commanding operating employees.

• A. Distributed among lower departments
• B. Retained by higher management
• C. Delegated to outside consultants
• D. Shared equally by all employees

Explanation: Centralisation concentrates important decision-making power at higher organisational levels.

• A. Written reporting relationships
• B. Official job descriptions
• C. Personal relationships among employees
• D. Formal disciplinary procedures

Explanation: An informal organisation develops naturally through friendships, communication patterns and social interaction among employees.

• A. One management method suits every organisation
• B. Management practices should fit the situation
• C. Rules are more important than results
• D. Managers should avoid changing established methods

Explanation: The contingency approach states that an effective management practice depends on factors such as the environment, technology, task and…

• A. Setting objectives jointly and reviewing performance
• B. Avoiding measurable performance standards
• C. Allowing managers to work without targets
• D. Replacing planning with employee training

Explanation: Management by objectives links agreed goals with performance review and evaluation.

• A. Discipline
• B. Equity
• C. Initiative
• D. Stability of tenure

Explanation: The principle of discipline concerns obedience, respect for rules and observance of agreements within the organisation.

• A. Budget
• B. Policy
• C. Procedure
• D. Organisation chart

Explanation: A budget is a numerical plan that expresses expected income, expenditure or resource use for a specified period.