UPSC Mains 2018 Management Optional Paper I questions

34 questions from the Civil Services (Main) Examination 2018. Official UPSC paper (PDF) · All Management Optional PYQs

1. Explain the difference between 'needs', 'wants' and 'demands'. Which one of these is the starting point for marketing? Do marketers create needs?

2. The statement "build a better mousetrap, the world will beat a path to their door" communicates the essence of which marketing management. Why is this concept not the right approach in a competitive marketing scenario?

3. Smart marketers approach market with an understanding that they cannot appeal to all customers/buyers. Therefore they adopt the 'rifle' approach instead of the 'shotgun' approach. Which of the two approaches is more effective in the contemporary business environment and why?

4. Define Human Resource (HR) Audit. Describe the various practices followed for HR Audit.

   10 marks

5. What is meant by 'vision', 'mission' and 'objectives'? Briefly explain the nature and characteristics of objectives.

   10 marks

6. Briefly explain the theories of compensation. What are the different types of monetary and non-monetary rewards? What are the merits and demerits of using non-monetary rewards?

7. Motivation is a simple process but the task of motivating is daunting. Herzberg's theory is based on hygiene and motivator factors. Explain how this theory can be used to motivate employees at different levels of an organisation.

   5 marks

8. Differentiate between line extension and brand extension strategy. Why do organisations proliferate markets with different types of product Variations?

9. Explain the economic rationale behind leasing as a mode of financing capital assets. What are the differences between an operating lease and a capital lease?

10. Explain the relationship between 'role' and 'goal'. Differentiate between — role conflict and role ambiguity. What effects do these have on the working of the organisation?

    5 marks

11. What are the different types of skills leaders use in leading? Discuss the reasons why conceptual leadership skills become more important and technical skills go down in importance, at higher levels of organisation.

12. In the context of Online Internet Marketing, four types are distinguished: Business to Consumer (B2C), Business to Business (B2B), Consumer to Consumer (C2C) and Consumer to Business (C2B). Explain these with the help of examples.

13. Contrast the effect of FIFO versus (weighted) average cost on ending value of inventory and pre-tax income (PBT), when (i) Prices are rising, and (ii) Prices are falling. Explain how income can be manipulated by the choice of inventory valuation method.

14. Explain how do marketing communications work with the help of basic communication process. What are the elements of marketing communication mix?

15. A famous economist wrote that "there is one and only one social responsibility of business — to use resources and engage in activities designed to increase its profits...". Critically evaluate this statement in the context of increasing pressure on business to be socially responsible.

16. Managerial performance can be judged/measured by two parameters of effectiveness and efficiency. Can an organisation or manager with high efficiency fail? Explain why.

17. What are the primary uses of a standard cost system? Distinguish between favourable and unfavourable cost (and revenue) variances.

18. What is the pecking order theory of financing? Compare it with the trade-off theory of capital structure.

19. What is the relationship between bond prices and interest rate 7 How: does one calculate yield to maturity (YTM) on a bond? Define discount bonds, zero coupon bonds and premium bonds.

20. The India Times reported yesterday that ABS Ltd. earned (profit after tax) * 200 crore during the year ending yesterday and paid out a dividend of i00 crore during the same period. The report also mentioned that the firm's return on equity (ROE) is 20%. Answer the following questions assuming that the firm will maintain the same dividend payout ratio forever: (i) What is the firm's earnings growth rate? (ii) What will next year's earnings be? (iii) What will next year's dividend be? (iv) What is the estimate of market value (market capitalization) of ABS Ltd., if market considers as the required rate of return on equity (cost of equity) of ABS Ltd?

    20 marks

21. Explain direct method and indirect method of preparing statement of cash flows using the following information pertaining to Ajay Ltd: 0 Statement of Profit and Loss for the year ended 3/03/207 Sales Revenue 90,00,000 Cost of Goods Sold 80,00,000 Other Expenses,50,000 Depreciation Expenses 0,000 Profit Before Tax 8,00,000 Income Tax Expense 3,00,000 Net Profit 5,006,000 Relevant Balance Sheet Accounts Inventory 50,000 70,000 Accounts Receivable 60,000 Accounts Payable 80,000 70,000 Income Tax Payable 5,000 20,000

22. Why does variable costing provide more useful information than absorption costing for decision-making? What are the income relationships between absorption and variable costing when production volume differs from sales volume? What causes these relationships to occur?

23. What are the major cultural characteristics which explain differences in organisational behaviour across cultures according to Hofstede? Why is cultural adaptation important? Illustrate with the help of suitable examples.

24. Compare "Net Present Value" (NPV) method and 'Internal Rate of Return' (IRR) method of evaluating capital investments. Which of the two methods is superior and why?

25. "When managers act on better logic and evidence, their companies will trump the competition." Critically analyse this statement in the context of analytics, big data and HR analytics. What HR decisions can be made better with HR analytics?

26. What is goal displacement? Bureaucratic organisations often suffer from goal displacement. Explain using live examples.

27. Explain the meaning of disputes and causes thereof. Industrial disputes, if not resolved create dissatisfaction which finds expression in different ways. Explain the various ways of settling disputes.

28. What is the purpose of recording adjusting entries? Some of the items for which adjusting entries are made at the end of the accounting period (i) Depreciation expenses (ii) Services provided by the firm for amounts received earlier (ii) Interest payable on loan outstanding {iv) Rents due but not paid State the adjusting entries for the above implicit transactions. If an organisation fails to pass adjusting entries for items (i) to (iv) above, what will be the impact on 'Statement of Profit and Loss' and on 'Balance Sheet'?

    5 marks

29. Two of the emerging organisation structures are virtual and network organisations. Are these threats to conventional organisations?

30. Does India need more leaders, managers or entrepreneurs for achieving economic growth? Explain, highlighting their differences.

31. Are the concepts of employee engagement and empowerment different 7? What are the benefits of employee empowerment?

32. What is the importance of research in marketing? Suppose a company wants to undertake a research study, what process is it likely to undergo? Explain the steps.

    5 marks

33. Mahindra Ltd. has the following capital structure: 8% Non-Convertible {00,0 6,00,000 Debentures (NCD) isis 7-5% Preference Share Capital Equity Share Capital §,00,000 25,00,000 _25,00,000 Atul Mahindra Ltd. is in the 40% tax bracket. The risk-free rate of return is 6% and the expected market risk premium is 7%. The equity beta of Atul Mahindra Ltd. is -00. Calculate the weighted average cost of capital for Atul Mahindra Ltd.

34. "Activity Based Costing (ABC) systems are always more accurate than traditional costing systems." Do you agree? How does ABC improve overhead assignments?