1. Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Subject Code-B-101 Examination Paper MM.100
Principles and Practices of Management
Section A: Objective Type (30 marks)
 This section consists of Multiple Choices & Short Notes type Questions.
 Answer all the Questions.
 Part one carries 1 mark each & Part two carries 5 marks each.
Part one:
Multiple Choices:
1. A plan is a trap laid to capture the ________.
a. Future
b. Past
c. Policy
d. Procedure
2. It is the function of employing suitable person for the enterprise:
a. Organizing
b. Staffing
c. Directing
d. Controlling
3. ___________ means “ group of activities & employees into departments”:
a. Orientation
b. Standardization
c. Process
d. Departmentation
4. This theory states that authority is the power that is accepted by others:
a. Acceptance theory
b. Competence theory
c. Formal authority theory
d. Informal authority theory
5. It means dispersal of decision-making power to the lower levels of the organization:
a. Decentralization
b. Centralization
c. Dispersion
d. Delegation

2. Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 2
6. This chart is the basic document of the organizational structure:
a. Functional chart
b. Posts chart
c. Master chart
d. Departmental chart
7. Communication which flow from the superiors to subordinates with the help of scalar chain is
known as:
a. Informal communication
b. Downward communication
c. Upward communication
d. Oral communication
8. Needs for belongingness, friendship, love, affection, attention & social acceptance are
a. Physiological needs
b. Safety needs
c. Ego needs
d. Social needs
9. A management function which ensures “jobs to be filled with the right people, with the right
knowledge, skill & attitude”:
a. Staffing defined
b. Job analysis
c. Manpower planning
d. Recruitment
10. It is a process that enables a person to sort out issues and reach to a decisions affecting their life:
a. Selection
b. Raining
c. Reward
d. Counseling
Part Two:
1. Differentiate between ‘Administration’ and ‘Management’.
2. What were the common drawbacks in classical and Neo classical theories of management?
3. Write a short note on “Line Organization.”
4. Write a short note on ‘Acceptance theory’.
END OF SECTION A

3. Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 3
Section B: Case lets (40 marks)
 This section consists of Case lets.
 Answer all the questions.
 Each Case let carries 20 marks.
 Detailed information should form the part of your answer (Word limit 150-200 words).
Case let 1
Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening
programme at the local college. The Professor had given an interesting but disturbing lecture the previous
night on the various approaches to management. Vincent had always thought that management involved
just planning, organizing and controlling. Now this Professor was saying that management could also be
thought of as quantitative models, systems theory and analysis, and even something called contingency
relationships. Vincent had always considered himself a good manager, and his record with the
supermarket chain had proved it. He thought of himself, “I have never used operations research models,
thought of my store as an open system, or developed or utilized any contingency relationship. By doing a
little planning ahead, organizing the store, and making some things got done, I have been a successful
manager. That other stuff just does not make sense. All the professor was trying to do was complicate
things. I guess I will have to know it for the test, but I am sticking with my old plan, organize and control
approach to managing my store.”
Questions:
1. Critically analyze Mr. Vincent’s reasoning.
2. If you were the professor and you knew what was going through Vincent’s mind, what would you
say to Vincent?
Case let 2
The Regional Administration Office of a company was hastily set up. Victor D’Cuhna a young executive
was directly recruited to take charge of Data Processing Cell of this office. The data processing was to
help the administrative office in planning and monitoring. The officer cadre of the administrative office
was a mix of directly recruited officers and promotee officers (promotion from within the organization).
Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative
office had decided to give these fresh recruits on-the-job training because when results were not upto the
expectations blame was brought on the Data Processing Cell. Victor D’Cuhna realized that the
administrative office was heading for trouble. He knew that his task would not be easy and that he had
been selected because of his experience, background and abilities. He also realized that certain functional
aspects of the administrative office were not clearly understood by various functionaries, and systems and
procedures were blindly and randomly followed. Feedback was random, scanty and controversial, and
Data Processing Cell had to verify every item of feedback. Delays were inevitable. D’Cuhna sought the
permission of senior management to conduct a seminar on communication and feedback of which he was
an expert. The permission was grudgingly given by the senior management. Everyone appreciated the
seminar. Following the first seminar, D’Cuhna conducted a one week training course for the clerical
cadre, especially for the junior, freshly recruited clerks. Amongst other topics, D’Cuhna laid emphasis on

4. Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 4
filing system, information tracking, communication, and feedback. This helped reorient attitudes to some
extent. But the female clerks preferred to ignore the theme and widely circulated the belief that D’Cuhna
was an upstart and a show off. Within a short time, considerable friction had been generated in the
administrative office While directly recruited officers supported D’Cuhna’s initiative and the specialist
officers admired him, senior management became cautious and uncomfortable. The junior promotee
officers were prejudiced against him. The grand finale followed swiftly. D’Cuhna happened to get
annoyed with a female clerk. During the absence of her officer, who was on sick leave and had not been
substituted by another officer, she began submitting nil returns. D’Cuhna took pains to explain to her that
for certain topics a nil feedback was not tenable. The current status had to be reported— the stage at
which the matter was pending, what had been done, and what would be done about it? The lady reported
that it was none of his business to tell her this. He should talk to her officer when the officer reports back
from leave. D’Cuhna said he would, but in the meanwhile she should present the correct picture. When
D’Cuhna called for the files, she refused to part with them. D’Cuhna fired her and reported the situation
to the Chief Regional Manager. The other ladies were up in the arms against D’Cuhna. The lady also
complained to higher management that D’Cuhna had made passes at her. Other ladies supported her
complaint. She also complained that D’Cuhna had no business to scold her. D’Cuhna countered that had
there been a male clerk in her place he would have scolded him too. When females enjoyed equal rights
with males, D’Cuhna felt he must remain impartial. Nevertheless, D’Cuhna was transferred to another
place. The transfer to another place, rather than to another department in same place, was particularly
humiliating to him. A shocked and disillusioned D’Cuhna quit the enterprise.
Questions:
1. Diagnose the problem and enumerate the reasons for the failure of D’Cuhna.
2. What could D’Cuhna have done to avoid the situation in which he found himself?
Section C: Applied Theory (30 marks)
 This section consists of Applied Theory Questions.
 Answer all the questions.
 Each question carries 15 marks.
 Detailed information should form the part of your answer (Word limit 200-250 words).
1. What is Training? Explain the different methods of training.
2. Explain Decision-Making process of an organization.
S-2-301012
END OF SECTION B
END OF SECTION C