Business Management MCQ Questions and Solutions with Explanations | Management

The chain of command from the highest authority to the lowest level in the organization is Scalar chain. Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.

General and Industrial Management was written by Hendry Fayol. Henri Fayol (1841 – 1925) was a French coal-mine engineer, director of mines and modern management theoretician. His scientific management theory forms the base for business administration and business management. In the academic world, this is also known as Fayolism. Henri Fayol provided one of the most influential modern management concepts of his time. He is founder of the 14 Principles of management and the five functions of management.

Study of the movements of both the workers and the machine to eliminate wasteful movement is motion study. Motion study is a systematic way of determining the best method of doing the work by scrutinizing the motions made by the worker or the machine.

Henry Fayol concentrated on top management. Centralization implies the concentration of decision making authority at the top management (executive board).

Contingent plan to meet environmental pressures is strategies. A contingency plan is a course of action designed to help an organization respond effectively to a significant future event or situation that may or may not happen. A contingency plan is sometimes referred to as "Plan B," because it can be also used as an alternative for action if expected results fail to materialize.

Every subordinate should receive orders from and be accountable to only one superior is unity of command. This principle states that each subordinate should receive orders and be accountable to one and only one superior. If an employee receives orders from more than one superior, it is likely to create confusion and conflict.

A statement of expected results expressed in numerical terms for a definite period of time in the future is known as budgets. A budget is an internal tool used by management and is often not required for reporting by external parties.

The principle seeks to ensure unity of action is Unity of direction. The principle provides that there should be only one leader and one plan for a series of activities seeking the accomplishment of the same objective.

Coordination is the harmonising or synchronising of individual efforts with the purpose of achieving group goals. Coordination is the orderly arrangement of group efforts to provide unity of action in pursuit of common purpose. It involves unifying, integrating and harmonising the activities of different departments and individuals for the achievement of common goal.

Responsibility is an obligation to perform certain functions and achieve certain results. The management can confine it to the performance of a single function or can be a continuing obligation.