SEBI Grade A 2022– Management Practice Question | Set- 5

Correct Answer: C. Motorola

Explanation: Six Sigma (6σ) is a set of techniques and tools for process improvement.It was introduced by engineers Bill Smith & Mikel J Harry while working at Motorola in 1986.Jack Welch made it central to his business strategy at General Electric in 1995.

Correct Answer: D. Behavioral Theory of Management

Explanation: The behavioral management theory is often called the human relations movement because it addresses the human aspect of work. It asserts that a better understanding of human behavior at work, such as motivation, conflict, expectations etc. are important factor in management.

Correct Answer: E. Planning

Explanation: In general, all the functions of management deal with multiple aspects of management. However, planning is one such function which require lots of Conceptual Skills which is psychological in nature. Hence Planning primarily deal with Psychological Aspect of Management.

Correct Answer: D. Group Decision Making

Explanation: Dotmocracy is a facilitation method that relies on the use of special forms called Dotmocracy Sheets to allow large groups to collectively brainstorm and recognize agreement on an unlimited number of ideas they have authored. This is a Group Decision Making Technique.

Dot-voting (also known as democracy or voting with dots) is an established facilitation method used to describe voting with dot stickers or marks with a marker pen.

In dot-voting participants vote on their chosen options using a limited number of stickers or marks with pens — dot stickers being the most common. This sticker voting approach is a form of cumulative voting.

Correct Answer: A. When high level of performance is needed 

Explanation: Maintaining a large span of control within an organization is not effective when high level of performance is needed , as manager are required to give more time managing performance of each employee which would be difficult with larger span.

Correct Answer:  C. Decision Making

Explanation: PLUS Ethical Decision-Making Model is one of the most used and widely cited ethical models. To create a clear and cohesive approach to implementing a solution to an ethical problem; the model is set in a way that it gives the leader “ethical filters” to make decisions. It purposely leaves out anything related to making a profit so that leaders can focus on values instead of a potential impact on revenue.

The letters in PLUS each stand for a filter that leaders can use for decision-making:

P – Policies and Procedures: Is the decision in line with the policies laid out by the company?

L – Legal: Will this violate any legal parameters or regulations?

U – Universal: How does this relate to the values and principles established for the organization to operate? Is it in tune with core values and the company culture?

S – Self: Does it meet my standards of fairness and justice? This particular lens fits well with the virtue approach that is a part of the five common standards mentioned above.

Correct Answer: D. Syndicate members

Explanation: Initial Public Offer (IPO) means it is the first time a company is issuing its shares on the stock market to raisefunds for its business. IPO are regulated by SEBI under issue of Capital and Disclosure requirements, 2009.Companies generally appoint investment bankers to assist them in the IPO process. The company alsoappoints other agencies to assist in the IPO and syndicate members are the brokers who are registered withSEBI mainly to procure bids from investors for the IPO.

Correct Answer: C. Regulator of an Issue

Explanation: Regulator of an Issue is Not a Financial intermediary.

Correct Answer: E. None of the above

Explanation: Money Markets have instruments for raising and investing funds for a time frame from 1 day to 365 days. CBLOs, Certificate of deposits, treasury bills, repos/reverse repos and commercial paper are money market securities.

The long-term deposits that happen between banks are known as term markets. The participants of money markets are banks, financial institutions, mutual funds, provident and pension funds, primary dealers, companies and the government.

Correct Answer: D. Section 8 of Companies Act 2013

Explanation: National Payments Corporation of India (NPCI), an umbrella organization for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India. Considering the utility nature of the objects of NPCI, it has been incorporated as a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013).