Business Management MCQ Questions and Solutions with Explanations | Management

The authority flows from top to bottom through the structure of an organization is the formal authority theory. Formal supervisory authority' is the right to command people, to tell them what they are to do and what they are not to do, and to guide their actions.

Goals, aims, purposes, missions and target is also known as objectives.

Contingent plan to meet environmental pressure is strategies. A contingency plan is a plan devised for an outcome other than in the usual (expected) plan.

If the subordinates do not accept the command of their superior, then the superior cannot be said to have any authority over them is given in the acceptance of authority theory. Acceptance theory of authority states that a manager's authority rests on workers' acceptance of his right to give orders and to expect compliance. Workers have to believe that the manager can legitimately give orders and there is a legitimate expectation that the orders will be carried out.

A chronological sequence of steps to be undertaken to enforce a policy and to attain an objective is known as procedures. Procedures explain how to accomplish a task. A procedure is sometimes called a work instruction.

The type of authority is invested with the persons by virtue of the office held by them is the competence theory. Competence motivation theory is a conceptual framework designed to explain individuals' motivation to participate, persist, and work hard in any particular achievement context.

The process of establishing a time sequence for the work is known as schedules. Schedule management is the process of developing, maintaining and communicating schedules for time and resource. A schedule is the timetable for a project, programme or portfolio.

The process whereby a manger shares his work and authority with his subordinates is Delegation. Delegation is one of the most important management skills. These logical rules and techniques will help you to delegate well (and will help you to help your manager when you are being delegated a task or new responsibility - delegation is a two-way process.

A rigid plan, no scope for discretion rule. Discretionary policy is an economic policy based on the ad hoc judgment of policymakers as opposed to policy set by predetermined rules.

The subordinate is granted authority to perform all the functions in his department or division is general delegation. Delegation of Authority means division of authority and powers downwards to the subordinate.