Business Management MCQ Questions and Solutions with Explanations | Management

Examples of financial motivation include wages, salaries, bonus, vacation pay, and insurance. Financial motivation involves the use of monetary rewards and incentives to encourage employees to perform well and achieve specific goals. These forms of compensation are directly tied to an individual's financial well-being and are designed to provide tangible benefits that contribute to their overall income and financial stability.

Option B: non-financial motivation
This option is incorrect. Non-financial motivation refers to rewards and incentives that are not monetary in nature, such as recognition, opportunities for personal growth, and a positive work environment.

Option C: extrinsic motivation
This option is incorrect. Extrinsic motivation involves external factors, including both financial and non-financial rewards, that drive individuals to engage in certain behaviors or activities.

Option D: intrinsic motivation
This option is incorrect. Intrinsic motivation refers to the internal drive and personal satisfaction that individuals derive from performing a task or activity. It is not directly related to financial compensation.

The correct answer is Option A: financial motivation, as the examples provided are all related to monetary rewards and incentives.

Formal organization gives importance to terms of authority and functions. The formal organization is basically goal-oriented entity that exist to accurate the efforts of individuals and it refers to the structure of jobs and positions with clearly defined functions, responsibilities and authorities.

Participation, recognition and power are some of the examples of non-financial motivation. Non-financial motivation is the integration of a system of reward and recognitions (Rewards and Recognition - R & R), which doesn't involve giving money directly to the employee.

Option A: formal organization
This option is incorrect. A formal organization emphasizes structure, rules, and procedures rather than personal relationships.

Option B: informal organization
This is the correct option. An informal organization values personal relationships and social networks among its members, focusing on people and their interactions.

Option C: business organization
This option is incorrect. A business organization generally refers to any entity involved in commercial, industrial, or professional activities, and it does not specifically emphasize personal relationships.

Option D: strategic organization
This option is incorrect. A strategic organization focuses on long-term goals and plans, rather than personal relationships and social dynamics.

In conclusion, the correct answer is Option B: informal organization, as it prioritizes people and their relationships over formal structures and procedures.

Decentralisation means that each section has its own workers to perform activities within the department. Decentralisation can be understood as the orderly assignment of authority, throughout the levels of management, in an organisation. It describes the way in which power to take decisions is allocated among various levels in the organisational hierarchy.

According to Maslow, self-actualization needs is a high level needs. Self-actualization refers to the need for personal growth and development throughout one's life. It is the highest level of Maslow's hierarchy of needs, which was developed by psychologist Abraham Maslow. Once you are self-actualized, you've met your full potential as an individual.

Informal organization has no place in the organization chart. An informal organization is the social structure of the organization, as opposed to the formal structure of an organization. It establishes how an organization functions from a practical standpoint.

Expectancy motivation theory is given by Vroom. Vroom's expectancy theory assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and to minimize pain.

Decision making is the selection based on some criteria from two or more possible alternatives is defined by George R. Terry.

Management By Objectives was introduced by Peter Drucker. The essence of Peter Drucker 's basic principle: Management By Objectives is to determine joint objectives and to provide feedback on the results. Setting challenging but attainable objectives promotes motivation and empowerment of employees.