UPKAR PRAKASHAN, AGRA–2

ByDr. L. N. Koli

&Prem Koli

Revised Edition

© Publishers

Publishers

UPKAR PRAKASHAN(An ISO 9001 : 2000 Company)

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ISBN : 978-81-7482-903-0

Price : 455/-(Rs. Four Hundred Fifty Five Only)

Code No. 1653

Printed at : UPKAR PRAKASHAN (Printing Unit) Bye-pass, AGRA

CONTENTS

● Previous Year’s Solved Paper

Unit–1Managerial Economics…………………………………………………………… 3–75● Objective Questions…………………………………………………………… 32

Unit–2Organisational Behaviour………………………………………………………… 76–131● Objective Questions…………………………………………………………… 93

Unit–3Human Resource Management………………………………………………….. 132–203● Objective Questions…………………………………………………………… 160

Unit–4Financial Management…………………………………………………………… 204–268● Objective Questions…………………………………………………………... 232

Unit–5Marketing…………………………………………………………………...…… 269–341● Objective Questions………………………………………………………….. 287

Unit–6Production Management and Operational Research…………………………..… 342–401● Objective Questions………………………………………………………….. 367

Unit–7Advance Statistics and Management Information System………………..…….. 402–489● Objective Questions………………………………………………………….. 451

Unit–8Corporate Strategy………………………………………………………………. 490–567● Objective Questions………………………………………………………….. 518

Unit–9Entrepreneurship………………………………………………………………… 568–620● Objective Questions………………………………………………………….. 577

Unit–10Business Ethics and Management…………………………………………..…… 621–663● Objective Questions…………………………………………………………... 631

SYLLABUS

Unit–IManagerial Economics—Demand Analysis

Production Function

Cost-output relations

Market Structures

Pricing theories

Advertising

Macro-economics

National Income concepts

Infrastructure—Management and Policy

Business Environment

Capital Budgeting

Unit–II

The concept and significance of organisational behaviour—Skills and roles in anorganisation—Classical, Neo-classical and modern theories of organisational structure—Organisational design—Understanding and Managing individual behaviour personality—Perception—Values—Attitudes—Learning—Motivation. Understanding and managing groupbehaviour, Processes—Inter-personal and group dynamics—Communication—Leadership—Managing change—Managing conflicts.

Organisational development.

Unit–III

Concepts and perspectives in HRM; HRM in changing environment.

Human resource planning—Objectives, Process and Techniques.

Job analysis—Job description.

Selecting human resources.

Induction, Training and Development.

Exit Policy and implications.

Performance appraisal and evaluation.

Potential assessment.

Job evaluation.

( vii )

Wage determination.

Industrial Relations and Trade Unions.

Dispute resolution and grievance management.

Labour welfare and social security measures.

Unit–IV

Financial management—Nature and Scope.

Valuation concepts and valuation of securities.

Capital budgeting decisions—Risk analysis.

Capital structure and cost of capital.

Dividend policy—Determinants.

Long-term and short-term financing instruments.

Mergers and Acquisitions.

Unit–V

Marketing environment and Environment scanning; Marketing Information Systems andMarketing research; Understanding consumer and industrial markets; Demand Measurementand Forecasting; Market Segmentation—Targeting and Positioning; Product decisions,Product mix, Product Life Cycle; New product development; Branding and Packaging; Pricingmethods and strategies.

Promotion decisions—Promotion mix; Advertising; Personal selling; Channel manage-ment; Vertical marketing systems; Evaluation and control of marketing effort; Marketing ofservices; Customer relation management; Uses of internet as a marketing medium—otherrelated issues like branding; market development, Advertising and retailing on the net.

New issues in Marketing.

Unit–VI

Role and scope of Production management; Facility location; Layout planning andanalysis; Production planning and control—production process analysis; Demand forecastingfor operations; Determinants of product mix; Production scheduling; Work measurement;Time and motion study; Statistical Quality Control.

Role and scope of Operations Research; Linear Programming; Sensitivity analysis;Duality; Transportation model; Inventory control; Queueing theory; Decision theory; Markovanalysis; PERT/CPM.

Unit–VII

Probability theory; Probability distributions—Binomial, Poisson, Normal and Exponential;Correlation and Regression analysis; Sampling theory; Sampling distributions; Tests ofHypothesis; Large and small samples; t, z, f, Chi-square tests.

( viii )

Use of Computers in Managerial applications; Technology issues and Data processing inOrganizations; Information systems; MIS and Decision making; System analysis and design;Trends in Information Technology; Internet and Internet-based applications.

Unit–VIII

Concept of corporate strategy; Components of strategy formulation; Ansoff’s growthvector; BCG Model; Porter’s generic strategies; Competitor analysis; Strategic dimensionsand group mapping; Industry analysis; Strategies in industry evolution, fragmentation,maturity and decline; Competitive strategy and corporate strategy; Transnationalization ofworld economy; Managing cultural diversity; Global Entry strategies; Globalisation offinancial system and services; Managing international business; Competitive advantage ofnations; RTP and WTO.

Unit–IX

Concepts—Types, Characteristics; Motivation; Competencies and its development;Innovation and Entrepreneurship; Small business—Concepts Government policy forpromotion of small and tiny enterprises; Process of business opportunity identification;Detailed business plan preparation; Managing small enterprises; Planning for growth;Sickness in Small Enterprises; Rehabilitation of sick enterprises; entrepreneurship(organisational entrepreneurship).

Unit–X

Ethics and management system; Ethical issues and analysis in management; Value basedorganisations; Personal framework for ethical choices; Ethical pressure on individual inorganisations; Gender issues; Ecological consciousness; Environmental ethics; Socialresponsibilities of business; Corporate governance and ethics.

UGC-NET/JRF Exam., June 2014 Solved Paper

Management(Paper-II)

Note—This paper contains fifty (50) objectivetype questions, each question carrying two (2)marks each. Attempt all the questions.

1. In case the price (P), quantity (Q), and changes(Δ) are represented by respective symbolsgiven in the brackets, the price elasticity ofdemand (Ed) is measured by—

(A) Ed = ΔQΔP

(B) Ed = ( )ΔQ

Q

( )ΔPP

(C) Ed = ΔPΔQ

(D) Ed = ( )ΔP

P

( )ΔQQ

2. Law of Diminishing Return applies when thegaps among the successive ‘multiple-level ofoutput’ isoquants—(A) decreases(B) remains constant(C) increases(D) remains irregular

3. In case the demand elasticity under imperfectcompetition is unity, the marginal revenuewill be—(A) more than utility, but less than infinity(B) equal to unity(C) less than unity, but more than zero(D) equal to zero

4. Rise in general price level along with declin-ing output in the economy is called—(A) Inflation(B) Deflation(C) Stagflation(D) Demand-pull inflation

5. National income equilibrium is not at thelevel where—(A) aggregate investment equals aggregate

savings(B) aggregate expenditure equals aggregate

income(C) inflationary and deflationary gaps are

absent(D) aggregate consumption is constant

6. Which of the following is a correct match ?(A) McClelland — ERG Theory(B) Skinner — Reinforcement Theory(C) Vroom — Equity Theory(D) Locke — Expectancy Theory

7. The study of gestures and body postures fortheir impact on communication is known as—(A) Kinesics (B) Proxemics(C) Semantics (D) None of these

8. According to Organisational Culture Inven-tory (OCI), an organisation in which membersare encouraged to work together in ways thatmeet higher order human needs is classifiedas having a ……… culture.(A) constructive (B) motivational(C) passive (D) high achievement

9. A matrix structure of organisation—

(A) reinforces unity of command

(B) is inexpensive

(C) is easy to explain to the employees

(D) gives to some employees more than oneboss

10. Organisational development (OD) is aplanned change plus—(A) Evaluation

2 | UGC-NET/JRF Management-II (J-14)

(B) Intervention(C) Ability for self-renewal(D) Reinforcement

11. Match the following—List-I (Concept)(a) An ongoing and formalised effort that

focuses on developing enriched and morecapable workers.

(b) A career development activity in whichmanagers make decisions regarding theadvancement potential of subordinates.

(c) A career development activity that focu-ses on preparing people to fill executivepositions.

(d) Determining the type of career thatemployees want and the steps they musttake to realise their career goals.

List-II (Term)1. Direction phase

2. Career development

3. Promotability forecast

4. Succession planning

Codes :(a) (b) (c) (d)

(A) 1 2 3 4

(B) 2 3 4 1

(C) 2 3 1 4

(D) 1 3 2 4

12. A formal explanation of the knowledge,skills, abilities, traits and other characteristicsnecessary for effective job performance isknown as—

(A) Job Description

(B) Job Analysis

(C) Job Specification

(D) Job Enrichment

13. ……… aims to reduce reliance on arbitrarymethods of pay determination by introducingan element of objectivity in the way jobs arecompared.

(A) Performance appraisal

(B) Job evaluation

(C) Job enrichment

(D) Attrition

14. Match the following—List-I(a) The process of examining how work

creates or adds value to the ongoingprocesses in a business.

(b) A fundamental rethinking and radicalredesign of business processes to achievedramatic improvements in cost, quality,service and speed.

(c) The process of organising work into thetasks required to perform a specific task.

(d) The process of putting specialised tasksback together so that one person is res-ponsible for producing a whole productor an entire service.

List-II1. Job Enrichment2. Job Design3. Work flow analysis4. Business process reengineering (BPR)Codes :

(a) (b) (c) (d)(A) 1 2 3 4(B) 2 1 4 3(C) 3 4 1 2(D) 3 4 2 1

15. The process of reorganising a company’semployees to improve their efficiency istermed as—(A) Right sizing (B) Down sizing(C) Retrenchment (D) Lay-offs

16. The value of a bond with a given maturityperiod is—(A) Present value of maturity value of the

bond(B) Present value of annual interest plus

present value of maturity value(C) Total amount of interest plus the matu-

rity value received(D) Maturity value received

17. The capital budgeting appraisal criterion thatis most appropriate in the situation of capitalrationing will be—(A) Payback period(B) Internal Rate of Return(C) Net present value(D) Profitability index

UGC-NET/JRF Management-II (J-14) | 3

18. For computation of cost of equity, arrange thefollowing measures in the ascending order ofaccuracy—I. Capital Asset Pricing ModelII. Dividend Price RatioIII. Earning Price RatioIV. Dividend Price Plus Growth RatioCodes :(A) I, III, II, IV (B) IV, I, III, II(C) III, II, IV, I (D) II, IV, I, III

19. Match the items given in the two lists—List-I(a) Debt securities without any explicit inter-

est rate.(b) Company issuing such bonds experi-

ences less financial distress.(c) Coupon rate quoted as mark-up on the

given rate.List-II1. Floating Rate Bonds2. Zero-coupon bonds3. Income BondsCodes :

(a) (b) (c)(A) 1 2 3(B) 1 3 2(C) 2 3 1(D) 3 1 2

20. Which one of the following types of workingcapital is financial through a portion of long-term funds ?(A) Gross working capital(B) Net working capital(C) Floating working capital(D) Regular working capital

21. In the model of consumer adoption of newproducts developed by Everitt M. Rogers, thefirst category of people to adopt a new productis called—(A) Early adopters (B) Initial adopters(C) First users (D) Innovators

22. Pepsico used …… to enter the Indian marketin the early 1980s.

(A) Mega marketing(B) Meta marketing

(C) Micro marketing(D) Multistage marketing

23. Pricing decisions are most complex at whichstage of the product life cycle ?(A) Decline stage (B) Growth(C) Introduction (D) Maturity

24. Branding seeks—(A) to differentiate the product(B) to charge differential price(C) to sell the product in different countries(D) to give attractive name to a product

25. The most widely used method of collectingthe primary data is—

(A) Experimental Research

(B) Observation Research

(C) Statistical Research

(D) Survey Research

26. If the EOQ for an item of inventory in a firmis 1000 units, the estimated demand for theterm next year gets doubled, what shall be therevised EOQ next year, all other relevantcosts remaining unchanged ?

(A) 1000 (B) 1414

(C) 2000 (D) None of these

27. From the following two statements, choosethe correct answer—

Statement I : A person can have one utilitycurve for one situation and a quite differentone for the next situation.

Statement II : Business executive with alinear utility curve can effectively use theexpected monetary value as their decisioncriterion.

Codes :(A) Statement I is true, but II is false

(B) Statement I is false, but II is true

(C) Both the Statements I and II are true

(D) Both the Statements I and II are false

28. Which of the following is not included in theFive-P model of transformation organisationused in the Production and Operations Man-agement ?

(A) People (B) Plant

(C) Production (D) Programmes