Top 20 Management MCQs with Answers & Short Notes for DGMS Exam Preparation – OnlineMiningExam

1. Which of the following is NOT one of the four primary functions of management as defined by Henri Fayol? A) Planning
B) Organizing
C) Leading
D) Controlling
E) Innovating
Answer: E) Innovating – ONLINEMININGEXAM
Solution: Henri Fayol’s theory focuses on planning, organizing, leading, and controlling. Short Notes:
Henri Fayol (Father of Modern Management) proposed 14 Principles of Management and 4 core functions:

Planning – Setting goals & deciding actions.

Organizing – Arranging resources.

Leading – Directing & motivating.

Controlling – Monitoring & correcting.

2. In Maslow’s hierarchy of needs, which level must be satisfied before esteem needs? A) Physiological needs
B) Safety needs
C) Social needs
D) Self-actualization needs
E) Cognitive needs
Answer: C) Social needs – ONLINEMININGEXAM
Solution: Social needs (belongingness) must be fulfilled before esteem. Short Notes:
Maslow’s hierarchy (bottom to top):

Physiological

Safety

Social (Love/Belonging)

Esteem

Self-Actualization

3. What does the 'S' in SWOT analysis stand for? A) Strategies
B) Strengths
C) Suppliers
D) Sustainability
E) Sales
Answer: B) Strengths – ONLINEMININGEXAM
Solution: SWOT = Strengths, Weaknesses, Opportunities, Threats. Short Notes:

Strengths & Weaknesses → Internal factors.

Opportunities & Threats → External factors.

4. Which leadership style involves a leader making decisions without consulting the team? A) Democratic
B) Laissez-faire
C) Autocratic
D) Transformational
E) Transactional
Answer: C) Autocratic – ONLINEMININGEXAM
Solution: Decision-making power is centralized. Short Notes:

Autocratic – Fast decisions, low creativity.

Democratic – Team participation.

Laissez-faire – Freedom to subordinates.

5. Porter’s Five Forces model does NOT include which of the following? A) Threat of new entrants
B) Bargaining power of suppliers
C) Rivalry among existing competitors
D) Availability of skilled labor
E) Threat of substitute products
Answer: D) Availability of skilled labor – ONLINEMININGEXAM
Solution: Skilled labor is covered under PESTLE analysis. Short Notes:
Porter’s Five Forces:

Threat of new entrants

Threat of substitutes

Bargaining power of suppliers

Bargaining power of buyers

Industry rivalry

6. In the BCG Matrix, a product with high market share in a low-growth market is called: A) Star
B) Cash Cow
C) Question Mark
D) Dog
E) Pioneer
Answer: B) Cash Cow – ONLINEMININGEXAM
Solution: Generates steady profits. Short Notes:
BCG Matrix:

Stars – High growth, high share

Cash Cows – Low growth, high share

Question Marks – High growth, low share

Dogs – Low growth, low share

7. Which motivation theory uses expectancy, instrumentality, and valence? A) Herzberg’s Two-Factor Theory
B) Equity Theory
C) Vroom’s Expectancy Theory
D) McGregor’s Theory X and Y
E) Alderfer’s ERG Theory
Answer: C) Vroom’s Expectancy Theory – ONLINEMININGEXAM
Solution: Effort → Performance → Rewards. Short Notes:

Expectancy – Belief that effort → performance.

Instrumentality – Performance → rewards.

Valence – Value of the reward.

8. What is the main purpose of a Gantt chart? A) Risk assessment
B) Budget allocation
C) Scheduling tasks over time
D) Stakeholder analysis
E) Quality control
Answer: C) Scheduling tasks over time – ONLINEMININGEXAM
Solution: Timeline tool in project management. Short Notes:

Visualizes project timeline.

Shows task duration & dependencies.

9. A matrix structure combines which two types? A) Functional and divisional
B) Hierarchical and flat
C) Centralized and decentralized
D) Mechanistic and organic
E) Tall and wide
Answer: A) Functional and divisional – ONLINEMININGEXAM
Solution: Dual reporting system. Short Notes:

Functional – Specialized departments.

Divisional – Based on products/projects.

10. A key component of Total Quality Management (TQM) is: A) Employee empowerment
B) Short-term profit maximization
C) Centralized decision-making
D) High inventory levels
E) Ignoring customer feedback
Answer: A) Employee empowerment – ONLINEMININGEXAM
Solution: Everyone involved in quality improvement. Short Notes:
TQM Principles:

Customer focus

Continuous improvement

Employee involvement

11. What does CSR stand for in the context of business management? A) Corporate Social Responsibility
B) Customer Service Relations
C) Cost Savings Report
D) Centralized Supply Resource
E) Competitive Strategy Review
Answer: A) Corporate Social Responsibility – ONLINEMININGEXAM
Solution: Ethical commitment to society, environment, and stakeholders. Short Notes:
CSR activities include:

Reducing carbon footprint

Community welfare programs

Ethical labor practices

12. In decision-making, the Delphi technique is used for: A) Brainstorming in groups
B) Forecasting through anonymous expert opinions
C) Voting on alternatives
D) Analyzing financial ratios
E) Conducting performance appraisals
Answer: B) Forecasting through anonymous expert opinions – ONLINEMININGEXAM
Solution: Multiple rounds of surveys to build consensus. Short Notes:

Prevents dominance bias

Common in policy & forecasting decisions

13. Which theory assumes employees are inherently lazy and need close supervision? A) Theory X
B) Theory Y
C) Theory Z
D) Contingency Theory
E) Path-Goal Theory
Answer: A) Theory X – ONLINEMININGEXAM
Solution: Assumes workers dislike work and avoid responsibility. Short Notes:

Theory X – Strict control, punishment threat

Theory Y – Encouragement, responsibility

14. The balanced scorecard approach measures performance in which four perspectives? A) Financial, customer, internal processes, learning and growth
B) Marketing, operations, HR, finance
C) Short-term, long-term, internal, external
D) Quantitative, qualitative, strategic, tactical
E) Input, output, process, outcome
Answer: A) Financial, customer, internal processes, learning and growth – ONLINEMININGEXAM
Solution: Holistic organizational performance measure. Short Notes:
Developed by Kaplan & Norton to balance financial & non-financial metrics.
15. What is the main goal of supply chain management? A) Maximizing inventory storage
B) Minimizing supplier relationships
C) Optimizing the flow of goods, services, and information
D) Focusing solely on production costs
E) Ignoring demand forecasting
Answer: C) Optimizing the flow of goods, services, and information – ONLINEMININGEXAM
Solution: Integration of suppliers, manufacturers, and distributors. Short Notes:

Improves cost efficiency

Enhances customer satisfaction

16. In change management, Kurt Lewin’s model consists of which three stages? A) Unfreeze, change, refreeze
B) Plan, do, check, act
C) Initiate, implement, evaluate
D) Assess, adapt, achieve
E) Resist, react, resolve
Answer: A) Unfreeze, change, refreeze – ONLINEMININGEXAM
Solution: Prepare → Implement → Stabilize change. Short Notes:

Unfreeze – Prepare for change

Change – Implement new methods

Refreeze – Make changes permanent

17. Which of the following is an example of a differentiation strategy? A) Offering the lowest prices in the market
B) Producing standard products in high volume
C) Creating unique brand features perceived as valuable
D) Focusing on a narrow market segment
E) Reducing product variety
Answer: C) Creating unique brand features perceived as valuable – ONLINEMININGEXAM
Solution: Focus on uniqueness, not cost. Short Notes:
Examples: Apple, BMW – premium due to uniqueness.
18. Performance appraisal methods include 360-degree feedback, which involves input from: A) Only the supervisor
B) Peers, subordinates, supervisors, and self
C) External customers only
D) HR department exclusively
E) Financial auditors
Answer: B) Peers, subordinates, supervisors, and self – ONLINEMININGEXAM
Solution: Comprehensive review from all directions. Short Notes:

Reduces bias

Encourages self-improvement

19. What is the primary focus of ethical management in organizations? A) Maximizing shareholder profits at any cost
B) Adhering to moral principles and legal standards
C) Minimizing employee training
D) Ignoring environmental impacts
E) Promoting aggressive competition
Answer: B) Adhering to moral principles and legal standards – ONLINEMININGEXAM
Solution: Ensures fair, legal, and responsible practices. Short Notes:
Includes:

Transparency

Fair labor

Environmental responsibility

20. In global management, Hofstede’s 'power distance' refers to: A) Acceptance of unequal power distribution
B) Preference for individualism vs. collectivism
C) Tolerance for uncertainty
D) Focus on long-term vs. short-term orientation
E) Emphasis on masculinity vs. femininity Answer: A) Acceptance of unequal power distribution – ONLINEMININGEXAM
Solution: Measures acceptance of hierarchy in a society. Short Notes:

High Power Distance – Acceptance of hierarchy

Low Power Distance – Preference for equality

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