Professional Business Management Interview Questions & Answers:

1. Proctor & Gamble (P&G) makes fourteen different laundry soap products and completely dominates the laundry detergent market. Through constant changes in packaging, it is trying to influence the perception of customers that its products are unique. Which of the following generic strategies is P&G using?
a) Cost leadership
b) Differentiation
c) Focus
d) Globalization
e) Niche strategy.

b) Differentiation
Explanation:
In the given example P&G uses the differentiation strategy.

2. Tell me which of the following would not be an accurate depiction of the differences between strategic and tactical planning?
a) Strategic planning is developed mainly by upper-level management and tactical planning is generally developed by lower-level management
b) Facts for strategic planning are generally easier to gather than facts for tactical planning
c) Strategic plans generally contain less details than tactical plans
d) Strategic plans generally cover a longer period of time than tactical plans
e) Managers who are engaged in the development of strategic plans tend to work in more uncertainty than those managers engaged in the development of tactical plans.

b) Facts for strategic planning are generally easier to gather than facts for tactical planning
Explanation:
Strategic plan is used to establish overall objectives for the organization and position the organization in terms of its environment. Facts for strategic planning are generally more difficult to gather than facts for tactical planning. Hence, from above discussion, we can infer that option (b) is correct.

3. Using the BCG matrix requires considering which of the following factors?
a) Types of risk associated with product development
b) Threats that economic conditions can create in future
c) Social factors
d) Market shares and growth of markets in which products are selling
e) Political pressures.

d) Market shares and growth of markets in which products are selling
Explanation:
Using the BCG matrix requires considering market shares and growth of markets in which products are selling.

4. By studying the various approaches to management analysis, we can understand the concept of management and have a better understanding of managerial functions. Which approach to management emphasizes managing people by understanding their individual psychological needs?
a) Empirical approach
b) Decision theory approach
c) Management science approach
d) Interpersonal behavior approach
e) Contingency approach

d) Interpersonal behavior approach
Explanation:
Interpersonal Behavior Approach to management emphasizes managing people by understanding their individual psychological needs. Hence, from above discussion, we can infer that option (d) is correct.

5. Immoral management not only ignores ethical concerns, but also actively opposes ethical behavior. Organizations with immoral management is/are characterized by
I. Total concern for company profits only.
II. Laws are regarded as hurdles to be removed.
III. Less inclination to minimize expenditure.

a) Only (I) above
b) Only (II) above
c) Both (I) and (II) above
d) Both (I) and (III) above
e) All (I), (II) and (III) above.

c) Both (I) and (II) above
Explanation:
Immoral management not only ignores ethical concerns, but also actively opposes ethical behavior. Organizations with immoral management are characterized by:
★ Total concern for company profits only.
★ Laws are regarded as hurdles to be removed.
★ Strong inclination to minimize expenditures.
Hence, option (c) is the correct answer.

6. JIT (Just-In-Time) inventory control is an approach to inventory control, which stipulates that materials should arrive just, as they are needed, in the production process. Which of the following would generally not be associated with a successful JIT program, for the purpose of inventory control?
a) Well-organized receiving and handling of materials purchased from suppliers
b) Strong management commitment
c) Suppliers located in diverse and distant locations
d) High quality of materials purchased from suppliers
e) Dependable and long-lasting relationships with suppliers and customers.

c) Suppliers located in diverse and distant locations
Explanation:
A successful JIT program requires that suppliers be located in close proximity of the company, so that materials can arrive as and when needed.
Hence from above discussion, we can infer that option (c) would generally not be associated with a successful JIT program. Options (a), (b), (d) and (e) would all be associated with a successful JIT program.

7. Two factor theory of motivation provides useful insights into the relationship between individual and situational or hygiene factors. Which of the following is a hygiene factor?
a) Achievement
b) Interpersonal relations
c) Recognition
d) Challenging work
e) Increased responsibility.

b) Interpersonal relations
Explanation:
Interpersonal relationships can be considered as a hygiene factor under Two factor theory.

8. The behavioral approach of management thoughts can be classified into:
I. Bureaucratic management.
II. Group influences.
III. Hawthorne studies.
IV. Contingency theory.

a) Both (I) and (II) above
b) Both (I) and (III) above
c) Both (II) and (III) above
d) (I), (II) and (III) above
e) (II), (III) and (IV) above.

c) Both (II) and (III) above
Explanation:
The behavioral approach of management thoughts can be classified into
· Group influences
· Hawthorne studies.

9. Identify the sequence of different steps in controlling:
I. Measurement of performance.
II. Comparison of actual and standard.
III. Analysis of causes of deviation.
IV. Actual performance.
V. Corrective action plan.

a) (III), (IV), (V), (I), (II)
b) (II), (III), (IV), (V), (I)
c) (I), (II), (IV), (III), (V)
d) (IV), (I), (II), (III), (V)
e) (V), (IV), (III), (II), (I).

d) (IV), (I), (II), (III), (V)
Explanation:
The steps in controlling are actual performance, measurement of performance, comparison of actual and standard. Analysis of courses of deviation and corrective action plan. (d) is correct answer.

10. The fact that 70-80 percent of a manager's time is taken up by his interactions with others, highlights the need for effective communication for successful management. Which of the following strategies is not likely to improve communication effectiveness?
a) Avoiding non-verbal cues
b) Using simple, unambiguous language
c) Using active listening techniques
d) Using appropriate and consistent nonverbal cues
e) Using the feedback loop in the communication process.

a) Avoiding non-verbal cues
Explanation:
Avoiding non-verbal cues is not likely to improve communication effectiveness. Rather, non-verbal cues are very important for effective communication as they often help in understanding the hidden feelings in people.
Hence, from above discussion, we can infer that option (a) is correct.