EGEL Business Administration: Practice
Questions with Answers and Rationales
Section 1: Management & Organizational Behavior (Questions 1-20)
Question 1: What is the primary characteristic of the "Contingency Approach" to management?
,- A) There is one universally best way to manage all organizations
- B) The optimal course of action depends on internal and external environmental factors
- C) Management should focus exclusively on financial performance
- D) Strict adherence to hierarchical structures is essential
Answer: B) The optimal course of action depends on internal and external environmental factors
Rationale: The Contingency Approach rejects the universality of management principles and
asserts that managerial decisions must adapt to specific situational factors .
Question 2: According to Maslow's Hierarchy of Needs, which need must be satisfied first before
higher-level needs become motivators?
- A) Self-actualization needs
- B) Esteem needs
- C) Social needs
- D) Physiological needs
,Answer: D) Physiological needs
Rationale: Maslow's theory is structured as a pyramid; lower-order needs (physiological and
safety) must be substantially satisfied before higher-order needs (social, esteem, self-
actualization) can motivate behavior .
Question 3: In Herzberg's Two-Factor Theory, what are "Hygiene Factors"?
- A) Factors that directly motivate employees to perform better
- B) Job context factors that cause dissatisfaction if missing but do not necessarily motivate if
present
- C) Factors related to personal achievement and recognition
- D) Factors that only apply to healthcare organizations
Answer: B) Job context factors that cause dissatisfaction if missing but do not necessarily motivate
if present
, Rationale: Hygiene factors are related to the job environment. Their presence prevents
dissatisfaction, but they do not lead to motivation. Only "Motivators" lead to job satisfaction .
Question 4: What is the primary difference between a "Manager" and a "Leader"?
- A) Managers focus on inspiring change while leaders focus on maintaining order
- B) Managers focus on planning and controlling resources while Leaders focus on inspiring and
creating vision
- C) There is no meaningful difference between the two roles
- D) Managers are always more effective than leaders
Answer: B) Managers focus on planning and controlling resources while Leaders focus on
inspiring and creating vision
Rationale: Management is about coping with complexity, while leadership is about coping with
change .
Question 5: What is the definition of "Span of Control"?
Questions with Answers and Rationales
Section 1: Management & Organizational Behavior (Questions 1-20)
Question 1: What is the primary characteristic of the "Contingency Approach" to management?
,- A) There is one universally best way to manage all organizations
- B) The optimal course of action depends on internal and external environmental factors
- C) Management should focus exclusively on financial performance
- D) Strict adherence to hierarchical structures is essential
Answer: B) The optimal course of action depends on internal and external environmental factors
Rationale: The Contingency Approach rejects the universality of management principles and
asserts that managerial decisions must adapt to specific situational factors .
Question 2: According to Maslow's Hierarchy of Needs, which need must be satisfied first before
higher-level needs become motivators?
- A) Self-actualization needs
- B) Esteem needs
- C) Social needs
- D) Physiological needs
,Answer: D) Physiological needs
Rationale: Maslow's theory is structured as a pyramid; lower-order needs (physiological and
safety) must be substantially satisfied before higher-order needs (social, esteem, self-
actualization) can motivate behavior .
Question 3: In Herzberg's Two-Factor Theory, what are "Hygiene Factors"?
- A) Factors that directly motivate employees to perform better
- B) Job context factors that cause dissatisfaction if missing but do not necessarily motivate if
present
- C) Factors related to personal achievement and recognition
- D) Factors that only apply to healthcare organizations
Answer: B) Job context factors that cause dissatisfaction if missing but do not necessarily motivate
if present
, Rationale: Hygiene factors are related to the job environment. Their presence prevents
dissatisfaction, but they do not lead to motivation. Only "Motivators" lead to job satisfaction .
Question 4: What is the primary difference between a "Manager" and a "Leader"?
- A) Managers focus on inspiring change while leaders focus on maintaining order
- B) Managers focus on planning and controlling resources while Leaders focus on inspiring and
creating vision
- C) There is no meaningful difference between the two roles
- D) Managers are always more effective than leaders
Answer: B) Managers focus on planning and controlling resources while Leaders focus on
inspiring and creating vision
Rationale: Management is about coping with complexity, while leadership is about coping with
change .
Question 5: What is the definition of "Span of Control"?
