EGEL - Business Administration: Practice
Questions with Answers & Rationales
Section 1: Management & Organizational Behavior (Q 1-20)
1. Q: What is the primary characteristic of the "Contingency Approach" to management?
A: There is no one best way to manage; the optimal course of action depends on the internal and external environment.
R: Contingency theory rejects the universality of management principles (like those of Taylor or Fayol) and asserts that managerial decisions
must adapt to specific situational factors.
2. Q: According to Maslow's Hierarchy of Needs, which need must be satisfied first before higher-level needs become motivators?
,A: Physiological needs (basic survival needs like food, water, shelter).
R: Maslow's theory is a pyramid; lower-order needs (physiological and safety) must be substantially satisfied before higher-order needs (social,
esteem, self-actualization) can motivate behavior.
3. Q: In Herzberg's Two-Factor Theory, what are "Hygiene Factors"?
A: Job context factors that cause dissatisfaction if missing but do not necessarily motivate if present (e.g., salary, working conditions, company
policies).
R: Hygiene factors are related to the job environment. Their presence prevents dissatisfaction, but they do not lead to motivation. Only
"Motivators" (like recognition and achievement) lead to job satisfaction.
4. Q: What is the primary difference between a "Manager" and a "Leader"?
A: Managers focus on maintaining order, planning, and controlling resources, while Leaders focus on inspiring, influencing, and creating a
vision for change.
R: While a manager can be a leader and vice versa, the core distinction is that management is about coping with complexity, while leadership
is about coping with change.
5. Q: What is the definition of "Span of Control"?
A: The number of subordinates a manager or supervisor can effectively oversee and manage.
R: A narrow span of control leads to a tall organizational structure (many levels), while a wide span leads to a flat structure. The optimal span
depends on the complexity of work and the manager's capabilities.
6. Q: What does the term "Bureaucracy" mean in a classical management context (Weber)?
A: A formal, rational system of organization based on rules, hierarchy, and clear division of labor, designed for efficiency.
, R: Weber saw bureaucracy as the ideal type of organization to achieve maximum efficiency, characterized by impersonal relationships, formal
selection, and career advancement based on merit.
7. Q: What is the "Hawthorne Effect" in organizational behavior?
A: The phenomenon where individuals modify their behavior in response to being observed or studied.
R: Discovered during studies at the Hawthorne Works, this finding highlighted the importance of social factors and psychological attention on
worker productivity, shifting focus from purely physical conditions.
8. Q: Which of the following is a key principle of "Total Quality Management" (TQM)?
A: Continuous improvement (Kaizen) and customer focus.
R: TQM is a holistic management philosophy aimed at embedding awareness of quality in all organizational processes, emphasizing
continuous, incremental improvements and meeting customer requirements.
9. Q: In the context of decision-making, what is "Bounded Rationality"?
A: The idea that individuals make decisions rationally but within the limits of available information, cognitive ability, and time.
R: Coined by Herbert Simon, it suggests that managers "satisfice" (choose a satisfactory solution) rather than "optimize" (choose the perfect
solution) because they cannot process all possible information.
10. Q: What is "Organizational Culture"?
A: The shared values, beliefs, norms, and assumptions that guide behavior within an organization.
R: Culture is the "social glue" that holds the organization together. It influences how employees interact, make decisions, and perceive their
work environment.
Questions with Answers & Rationales
Section 1: Management & Organizational Behavior (Q 1-20)
1. Q: What is the primary characteristic of the "Contingency Approach" to management?
A: There is no one best way to manage; the optimal course of action depends on the internal and external environment.
R: Contingency theory rejects the universality of management principles (like those of Taylor or Fayol) and asserts that managerial decisions
must adapt to specific situational factors.
2. Q: According to Maslow's Hierarchy of Needs, which need must be satisfied first before higher-level needs become motivators?
,A: Physiological needs (basic survival needs like food, water, shelter).
R: Maslow's theory is a pyramid; lower-order needs (physiological and safety) must be substantially satisfied before higher-order needs (social,
esteem, self-actualization) can motivate behavior.
3. Q: In Herzberg's Two-Factor Theory, what are "Hygiene Factors"?
A: Job context factors that cause dissatisfaction if missing but do not necessarily motivate if present (e.g., salary, working conditions, company
policies).
R: Hygiene factors are related to the job environment. Their presence prevents dissatisfaction, but they do not lead to motivation. Only
"Motivators" (like recognition and achievement) lead to job satisfaction.
4. Q: What is the primary difference between a "Manager" and a "Leader"?
A: Managers focus on maintaining order, planning, and controlling resources, while Leaders focus on inspiring, influencing, and creating a
vision for change.
R: While a manager can be a leader and vice versa, the core distinction is that management is about coping with complexity, while leadership
is about coping with change.
5. Q: What is the definition of "Span of Control"?
A: The number of subordinates a manager or supervisor can effectively oversee and manage.
R: A narrow span of control leads to a tall organizational structure (many levels), while a wide span leads to a flat structure. The optimal span
depends on the complexity of work and the manager's capabilities.
6. Q: What does the term "Bureaucracy" mean in a classical management context (Weber)?
A: A formal, rational system of organization based on rules, hierarchy, and clear division of labor, designed for efficiency.
, R: Weber saw bureaucracy as the ideal type of organization to achieve maximum efficiency, characterized by impersonal relationships, formal
selection, and career advancement based on merit.
7. Q: What is the "Hawthorne Effect" in organizational behavior?
A: The phenomenon where individuals modify their behavior in response to being observed or studied.
R: Discovered during studies at the Hawthorne Works, this finding highlighted the importance of social factors and psychological attention on
worker productivity, shifting focus from purely physical conditions.
8. Q: Which of the following is a key principle of "Total Quality Management" (TQM)?
A: Continuous improvement (Kaizen) and customer focus.
R: TQM is a holistic management philosophy aimed at embedding awareness of quality in all organizational processes, emphasizing
continuous, incremental improvements and meeting customer requirements.
9. Q: In the context of decision-making, what is "Bounded Rationality"?
A: The idea that individuals make decisions rationally but within the limits of available information, cognitive ability, and time.
R: Coined by Herbert Simon, it suggests that managers "satisfice" (choose a satisfactory solution) rather than "optimize" (choose the perfect
solution) because they cannot process all possible information.
10. Q: What is "Organizational Culture"?
A: The shared values, beliefs, norms, and assumptions that guide behavior within an organization.
R: Culture is the "social glue" that holds the organization together. It influences how employees interact, make decisions, and perceive their
work environment.
