RBI Grade B

RBI Grade B Preparation: A Beginner’s Guide

 Comprehensive Guide to the RBI Grade B Syllabus : What You Need to Know The RBI Grade B exam is one of the most prestigious banking exams in India. Many aspirants spend months, even years, preparing for this highly competitive test. If you’re just starting out, this blog will guide you through the right approach to preparing efficiently. Why Choose RBI Grade B? The RBI Grade B officer role offers a high salary, job security, and opportunities to shape India's monetary policies. It is a dream job for many, but cracking it requires a strategic approach. Exam Pattern and Syllabus Before diving into preparation, it’s essential to understand the structure of the exam. Phase 1 (Prelims ) General Awareness Quantitative Aptitude English Language Reasoning Phase 2 (Mains) Economic and Social Issues (ESI) Finance and Management (FM) English (Descriptive) Interview A personality test to assess knowledge, confidence, and communication skills. How to Start Your Preparation ? 1. Understand the ...

MCQ-Management Functions And Managerial Roles

MCQ-Management Functions And Managerial Roles 


Q.1) Robert Katz has grouped various skills into three broad categories. Which of the following represent those three categories?

1. Technical Skills

2. Conceptual Skills

3. Human Skills

4. Managerial Skills

5. Leadership Skills

Choose from the given options:

[a] 1), 2), and 3)

[b] 1), 5), and 3)

[c] 2), 4), and 5)

[d] 3), 4), and 5)

[e] 1), 4), and 2)

✅ Solution: [a]

Explanation: Robert Katz categorized managerial skills into three types:

Technical Skills: Related to specific tasks or processes

Human Skills: Interpersonal skills to work with others

Conceptual Skills: Ability to work with ideas and concepts


Q.2) Which skill is most important for top-level management according to Robert Katz?

[a] Technical Skills

[b] Conceptual Skills

[c] Human Skills

[d] Managerial Skills

[e] Leadership Skills

✅ Solution: [b]

Explanation: Conceptual skills are crucial for top management as they are responsible for long-range planning and policy formulation.


Q.3) Henry Mintzberg recognized 10 basic managerial roles, grouped into three major categories. Which of the following are those categories?

1. Transactional

2. Interpersonal

3. Change-Making

4. Decisional

5. Informational

Choose from the given options:

[a] 2), 4), and 5)

[b] 1), 2), and 3)

[c] 3), 4), and 5)

[d] 1), 4), and 5)

[e] 2), 3), and 4)

✅ Solution: [a]

Explanation:

Interpersonal Roles: Figurehead, Leader, Liaison

Informational Roles: Monitor, Disseminator, Spokesperson

Decisional Roles: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator


Q.4) Which of the following shows the correct sequence of management functions?

[a] Planning, Staffing, Organising, Controlling, Directing

[b] Planning, Directing, Organising, Staffing, Controlling

[c] Planning, Controlling, Staffing, Organising, Directing

[d] Planning, Organising, Staffing, Directing, Controlling

[e] Planning, Controlling, Staffing, Organising, Directing

✅ Solution: [d]

Explanation: The correct sequence of management functions is:

Planning → Organising → Staffing → Directing → Controlling


Q.5) Which of the following is NOT a correct description of a single-use plan?

[a] A single-use plan is developed for a one-time event or project.

[b] Single-use plans are not likely to be repeated in the future.

[c] The duration may be a week, a month, or only one day.

[d] A single-use plan is discarded after the event or project.

[e] Single-use plans enhance efficiency in routine decision-making.

✅ Solution: [e]

Explanation: Single-use plans are for non-recurring activities. The statement in option (e) is incorrect because enhancing efficiency in routine decision-making is a characteristic of standing plans, not single-use plans.


Q.6) Which function of management involves formulating policies and strategies?

[a] Directing

[b] Planning

[c] Staffing

[d] Controlling

[e] Organising

✅ Solution: [b]

Explanation: Planning is a fundamental managerial function involving setting objectives and deciding how to achieve them.


Q.7) What are the assumptions about the future called when formulating a plan?

[a] Planning Premises

[b] Premises

[c] Premises Planning

[d] Either (a) or (c)

[e] Planning

✅ Solution: [a]

Explanation: Planning premises are assumptions made about the future, which help in formulating effective plans.


Q.8) Which step in the planning process involves organizing labor and purchasing machinery?

[a] Formulating derivative plans

[b] Setting objectives

[c] Developing premises

[d] Implementing the plans

[e] Follow-up action

✅ Solution: [d]

Explanation: Implementing the plans means executing the decisions and involves organizing labor and resources.


Q.9) Monitoring whether plans are being implemented and activities performed on schedule is which step of the planning process?

[a] Formulating derivative plans

[b] Setting objectives

[c] Developing premises

[d] Implementing the plans

[e] Follow-up action

✅ Solution: [e]

Explanation: Follow-up action ensures that plans are executed correctly and objectives are met.


Q.10) ‘Planning requires logical and systematic thinking rather than guesswork.’ What characteristic of planning does this statement highlight?

[a] Planning involves decision-making

[b] Planning focuses on achieving objectives

[c] Planning is a mental exercise

[d] Planning is a continuous exercise

[e] Planning is pervasive

✅ Solution: [c]

Explanation: Planning is a mental exercise as it involves intellectual activities such as judgment and foresight.


Q.11) Following a pre-decided plan in changed circumstances may harm the organization’s interests. Which limitation of planning is indicated?

[a] Planning reduces creativity

[b] Planning involves huge costs

[c] Planning does not guarantee success

[d] Planning leads to rigidity

[e] Planning may not work in a dynamic environment

✅ Solution: [d]

Explanation: Planning can lead to rigidity, as managers may be reluctant to deviate from the plan even when circumstances change.


Q.12) Name the type of plan which represents the end point of planning or the end result of activities.

[a] Objectives

[b] Strategy

[c] Policy

[d] Rule

[e] Method

✅ Solution: [a]

Explanation: Objectives are the ultimate goals the organization aims to achieve.


Q.13) Name the type of plan that is a general statement guiding decision-making and channeling energies in a particular direction.

[a] Objectives

[b] Strategy

[c] Policy

[d] Rule

[e] Method

✅ Solution: [c]

Explanation: A policy is a guideline that assists in making decisions within an organization. Example: Recruitment or Sales policy.


Q.14) Name the type of plan that specifies the sequential steps to perform different activities.

[a] Procedure

[b] Strategy

[c] Policy

[d] Rule

[e] Method

✅ Solution: [a]

Explanation: A procedure outlines the steps to be followed to complete a task. Example: Hiring procedure.


Q.15) What type of plan is ‘No Smoking’?

[a] Procedure

[b] Strategy

[c] Policy

[d] Rule

[e] Method

✅ Solution: [d]

Explanation: A rule is a strict directive with no flexibility. ‘No Smoking’ is a rule indicating what must not be done.


Q.16) Name the type of plan that includes objectives, policies, procedures, and budgets in one detailed statement.

[a] Programme

[b] Strategy

[c] Policy

[d] Rule

[e] Method

✅ Solution: [a]

Explanation: A programme is a comprehensive plan detailing the steps, resources, and budget for achieving an objective.


Q.17) Which type of plan is also a control device from which deviations are tracked and corrected?

[a] Programme

[b] Strategy

[c] Policy

[d] Budget

[e] Method

✅ Solution: [d]

Explanation: A budget is a statement of expected outcomes in numerical terms and serves as a benchmark for control. Example: Sales Budget.


Q.18) Name the type of plan that prescribes the specific ways in which a task must be performed.

[a] Programme

[b] Strategy

[c] Policy

[d] Budget

[e] Method

✅ Solution: [e]

Explanation: A method is a standard way to perform a specific task efficiently. Example: Assembly line methods in a factory.


❓ Q.19) Name the type of plan which provides the broad contours of an organisation’s business.

OR

Name the type of plan which is a general plan prepared by top management outlining resource allocation and priorities.

OR

Name the term (a type of plan) which is used in defence parlance and means to prepare plans considering the business environment.

[a] Programme

[b] Strategy

[c] Policy

[d] Budget

[e] Method

✅ Solution: [b] Strategy

A strategy is a comprehensive plan for accomplishing an organisation’s objectives. It includes three dimensions:

Determining the long-term objectives of the enterprise

Adopting a particular course of action

Allocating resources necessary to achieve the objectives

A strategy also defines the organisation’s direction and scope in the long run, considering factors like competition and changes in the business environment (economic, political, social, legal, and technological).


❓ Q.20) Which component of the general environment of business prohibits the advertisement of alcoholic beverages?

[a] Economic environment

[b] Social environment

[c] Political environment

[d] Legal environment

[e] Technological environment

✅ Solution: [d] Legal environment

The legal environment includes:

Legislation passed by the Government (e.g., Trademark Act, 1999; Essential Commodities Act, 1955)

Administrative orders issued by government authorities

Court judgments and decisions by agencies at all levels of government (centre, state, or local)

Businesses must comply with the laws of the land, and non-compliance can lead to legal issues.


❓ Q.21) Even after the opening of the Indian economy in 1991, foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India. Which dimension of the business environment is mentioned here?

[a] Economic environment

[b] Social environment

[c] Political environment

[d] Legal environment

[e] Technological environment

✅ Solution: [c] Political environment

The political environment reflects the stability of the government, policies, and the impact of bureaucracy on business operations. Political factors often influence the ease of doing business in a country.


❓ Q.22) ‘It is common now to see CD-ROMs, computerised information kiosks, and Internet/World Wide Web multimedia pages highlighting the virtues of products.’ Name the dimension of the business environment highlighted here.

[a] Economic environment

[b] Social environment

[c] Political environment

[d] Legal environment

[e] Technological environment

✅ Solution: [e] Technological environment

The technological environment includes innovations, advancements, and the adoption of new technologies in marketing, production, and business operations.


❓ Q.23) Which component of the business environment requires that advertisements of baby food must necessarily inform buyers that ‘mother’s milk is the best’?

[a] Economic environment

[b] Social environment

[c] Political environment

[d] Legal environment

[e] Technological environment

✅ Solution: [d] Legal environment

The legal environment mandates businesses to follow advertising norms and ensure consumer awareness through legal disclosures and warnings.


❓ Q.24) Name the function of management which decides who will do a particular task, where it will be done, and when it will be done.

OR

It is a process of management that brings order out of chaos, removes conflicts, and creates an environment suitable for teamwork. Identify it.

OR

Which function of management includes designing roles to be filled by suitably skilled people?

[a] Planning

[b] Organising

[c] Staffing

[d] Directing

[e] Controlling

✅ Solution: [b] Organising

Organising is the process that:

Coordinates human efforts

Assembles resources

Integrates them into a unified whole to achieve organisational objectives


❓ Q.25) Name the process of grouping activities of a similar nature.

[a] Departmentation

[b] Division of Labour

[c] Functional of Work

[d] a) and b)

[e] a) and c)

✅ Solution: [a] Departmentation

Departmentation is the grouping of similar or related jobs into larger units called departments or divisions to facilitate specialisation and coordination.


❓ Q.26) It refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it. Identify it.

OR 

It determines the superior-subordinate relationship wherein the superior communicates decisions to subordinates and expects compliance.

[a] Accountability

[b] Authority

[c] Responsibility

[d] a) and b)

[e] b) and c)

✅ Solution: [b] Authority

Authority is the right to command subordinates and take action within the manager’s scope of position. It establishes the power to make decisions and enforce obedience.


❓ Q.27) Which term refers to the obligation of a subordinate to perform an assigned duty?

[a] Responsibility

[b] Accountability

[c] Authority

[d] Delegation

[e] Supervision

✅ Solution: [a] Responsibility

Responsibility is the obligation to carry out assigned tasks. It flows from top to bottom and cannot be delegated. Responsibility must always be accompanied by adequate authority to perform tasks effectively.


❓ Q.28) Which principle of management advocates that authority should be equal to responsibility?

[a] Unity of Command

[b] Unity of Direction

[c] Scalar Chain

[d] Authority and Responsibility

[e] Division of Work

✅ Solution: [d] Authority and Responsibility

According to Henri Fayol, the principle of authority and responsibility states that there should be a balance between authority (the right to give orders) and responsibility (the obligation to perform). Disproportionate authority or responsibility leads to organisational inefficiency.


❓ Q.29) The formal lines of authority from highest to lowest ranks are known as:

[a] Unity of Command

[b] Scalar Chain

[c] Span of Management

[d] Division of Work

[e] Departmentation

✅ Solution: [b] Scalar Chain

The scalar chain is a chain of supervisors from the highest to the lowest rank. According to Henri Fayol, the scalar chain should be followed for effective communication, but a gang plank can be used for direct communication in emergencies.


❓ Q.30) What is the process by which a manager transfers authority to a subordinate?

[a] Responsibility

[b] Accountability

[c] Delegation

[d] Authority

[e] Supervision

✅ Solution: [c] Delegation

Delegation is the process of assigning authority to subordinates to complete a specific task. It involves three elements: Authority, Responsibility, and Accountability.


❓ Q.31) Which of the following is NOT an element of delegation?

[a] Authority

[b] Responsibility

[c] Accountability

[d] Coordination

[e] None of the above

✅ Solution: [d] Coordination

The three essential elements of delegation are:

1. Authority – The right to make decisions

2. Responsibility – The duty to perform tasks

3. Accountability – The obligation to report results

Coordination is a management function, not an element of delegation.


❓ Q.32) Under which function of management is the delegation process included?

[a] Planning

[b] Organising

[c] Staffing

[d] Directing

[e] Controlling

✅ Solution: [b] Organising

Delegation is part of the organising function because it involves assigning tasks and distributing authority within the organisational structure.


❓ Q.33) Which concept means that subordinates should receive orders from and be accountable to only one superior?

[a] Unity of Command

[b] Unity of Direction

[c] Span of Management

[d] Authority and Responsibility

[e] Division of Work

✅ Solution: [a] Unity of Command

The unity of command principle states that each employee should have only one direct supervisor. This prevents confusion and conflicts arising from multiple instructions.


❓ Q.34) According to Fayol, ‘one head and one plan’ for a group of activities having the same objective refers to which principle?

[a] Unity of Command

[b] Unity of Direction

[c] Centralisation

[d] Equity

[e] Order

✅ Solution: [b] Unity of Direction

Unity of Direction means that activities with the same objective should be directed by one manager using one plan. It ensures coordinated efforts and avoids duplication of work.


❓ Q.35) Which term is defined as the number of subordinates under a superior’s direct control?

[a] Organising

[b] Authority

[c] Span of Management

[d] Coordination

[e] Chain of Command

✅ Solution: [c] Span of Management**

The span of management (or span of control) is the number of subordinates that a manager can effectively manage. A narrow span leads to a tall organisational structure, while a wide span results in a flat structure.


❓ Q.36) ‘The Art of Getting Things Done Through People’ is the definition of:

[a] Leadership

[b] Directing

[c] Coordination

[d] Management

[e] Planning

✅ Solution: [d] Management**

This famous definition by Mary Parker Follett describes management as the process of achieving organisational goals by effectively coordinating human efforts and resources.


❓ Q.37) Who is known as the ‘Father of Scientific Management’?

[a] Henri Fayol

[b] F.W. Taylor

[c] Peter Drucker

[d] Mary Parker Follett

[e] Elton Mayo

✅ Solution: [b] F.W. Taylor**

F.W. Taylor is known as the ‘Father of Scientific Management’ for his contributions to improving industrial efficiency through techniques like time studies, standardisation, and work specialisation.


❓ Q.38) Which of the following is NOT a principle of scientific management by F.W. Taylor?

[a] Science, not rule of thumb

[b] Harmony, not discord

[c] Cooperation, not individualism

[d] Scalar Chain

[e] Development of each person to their greatest efficiency and prosperity

✅ Solution: [d] Scalar Chain**

Scalar Chain is a principle of Henri Fayol, not F.W. Taylor. Taylor’s principles focus on scientific approaches to management for improving productivity.


❓ Q.39) Who gave the 14 principles of management?

[a] Peter Drucker

[b] Elton Mayo

[c] Henri Fayol

[d] F.W. Taylor

[e] Chester Barnard

✅ Solution: [c] Henri Fayol**

Henri Fayol developed the 14 principles of management, including Unity of Command, Division of Work, Scalar Chain, and Equity.


❓ Q.40) Which principle of scientific management suggests selecting the right person for the right job and training them for efficiency?

[a] Science, not rule of thumb

[b] Harmony, not discord

[c] Cooperation, not individualism

[d] Development of each person to their greatest efficiency and prosperity

[e] None of the above

✅ Solution: [d] Development of each person to their greatest efficiency and prosperity**

This principle by F.W. Taylor emphasises scientific selection and training of workers to improve productivity and personal growth.


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