Business Management MCQ Questions and Solutions with Explanations | Management

The primary function of management is planning. Planning is a primary function of management, hence it gets primary over other management functions. It is a continuous and never ending activity.

Consumers are satisfied through innovation. Innovation in its modern meaning is "a new idea, creative thoughts, new imaginations in form of device or method".

Men, Money Material and Machines are included in resources. Resource management is the process by which businesses manage their various resources effectively. Those resources can be intangible – people and time – and tangible – equipment, materials, and finances. It involves planning so that the right resources are assigned to the right tasks.

Growth and prosperity of any organization depends upon planning. It is the most challenging activity for the management because it leads to the growth and prosperity of the organization. Planning facilitates decision making: Planning is done keeping in mind the future. Planning involves setting targets and predicting future conditions thus helping in taking rational decisions

Planning brings coordination and co-operation. Co-ordination is an orderly arrangement of efforts to provide unity of action in the fulfillment of common objective whereas co-operation denotes collective efforts of persons working in an enterprise voluntarily for the achievement of a particular purpose. It is the willingness of individuals to help each other.

Fw Taylor is the father of scientific management. Taylor's principal concern was that of increasing efficiency in production, not only to lower costs and raise profits but also to make possible increased pay for workers through their higher productivity.

MBO was introduced by Peter F drucker. Management by objectives (MBO), also known as management by results (MBR), was first popularized by Peter Drucker in his 1954 book The Practice of Management.

According to Follet, conflict may be removed through three ways are domination, compromise and integration. Dominance means victory of one side over the other. This works in the short term, but is unproductive in the long run (to make her point Follett presciently alludes to the results of "The War" (WWI). Compromise means each party having to give up something for the sake of a meaningful reduction of friction. Far form ideal, compromise often leaves parties unsatisfied – having given up something of value. Finally, integration, the option championed by Follett, means creatively incorporating the parties' fundamental desires/interests into the solution.

The decisions which are frequent and repetitive in nature are called as programmed decisions. These decisions are taken in the regular course of any business operations and occur at a day-to-day frequency. These decisions are repetitive and structured in nature.

A decision which relates to day to day operation of an organization is known as operative decisions. Operational decisions or Operating decisions are decisions made to manage day to day business. Any firm which is into any kind of business is faced with 100 decisions they have to take in a day.