Chapter 3
Management Principles and Practices
Nepal Rastra Bank past exam questions
Past questions and answers
6 questions set from this chapter. Most repeated first.
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In the making a detail list of activities to be performed by an entity, then classifying the activities thinking on the nature of job and then assigning them to a position considering similar type of job and workload is ....................... function of management.
A) planning
B) organizing
C) leading
D) controlling
Answer
(b) organizing
Organizing is the management function that identifies and lists the activities to be performed, groups (classifies) them according to the nature of the work, and then assigns them to positions or people on the basis of similarity of jobs and workload. Planning decides what to do in advance, leading involves directing and motivating staff, and controlling compares performance with standards — none of these involves grouping activities and assigning duties.
Answer checked by Claude Haiku · Oct 21, 2026
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What are the elements of controlling in management among the following?
A) Authority, Direction, Management
B) Authority, Direction, Information
C) Authority, Application, Management
D) Authority, Application, Information
Answer
(b) Authority, Direction, Information
Of the four sets offered, this is the only one that describes what control needs in practice: authority to enforce corrective action, direction to guide subordinates back toward the plan, and information on actual performance to compare with standards. Note that the question is loosely worded; the textbook steps of the control process are setting standards, measuring performance, comparing it with the standards and taking corrective action.
Answer checked by Claude Sonnet · Oct 21, 2026
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How is lateral communication in an organization?
A) Information passes upwards
B) Information passes downwards
C) Information flows into two ways
D) Information flows between different departments and functions
Answer
(d) Information flows between different departments and functions
Lateral (horizontal) communication takes place between people or units at the same level of the organizational hierarchy — for example, between the marketing department and the production department. Information passing upwards is upward communication (option a), information passing downwards is downward communication (option b), and two-way flow describes vertical communication in both directions (option c).
Answer checked by Claude Haiku · Oct 21, 2026
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If someone has habit of using too many English words. Because of this habit, an illiterate villager can not understand his conversation. In case of communication system, this problem is related with ............
A) Encoding
B) Medium
C) Encoding
D) Receiver
Answer
(d) Receiver
The speaker's English words cannot be decoded by an illiterate villager, so the breakdown occurs at the receiver's end: the receiver is unable to interpret the message. The medium (channel) is not at fault. Options (a) and (c) are the same in the question, which is a misprint.
Answer checked by Claude Sonnet · Oct 21, 2026
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Which of the following is a feature of McGregor's theory X?
A) workers enjoy responsibility
B) workers view physical and mental effort as a natural part of work
C) workers like to show initiative
D) workers like to be directed
Answer
(d) workers like to be directed
McGregor's Theory X assumes that workers dislike work, avoid responsibility, lack ambition and must be directed and controlled. Options (a), (b) and (c) are Theory Y assumptions, which treat effort as natural and assume workers seek responsibility and show initiative.
Answer checked by Claude Sonnet · Oct 21, 2026
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In regard to 'Nepal public sector employees' performance appraisal, which of the following is not correct?
A) quality of the work performed
B) use of the work performed
C) honesty towards the work performed
D) time taken of the work performed
Answer
(b) use of the work performed
Performance appraisal of Nepal's public sector employees (as per the Civil Service Act/Rules and the Employees' Performance Evaluation system) assesses quality of work, honesty/integrity towards work, and time taken to complete the work — along with quantity of work, job knowledge, discipline, etc. "Use of the work performed" is not a criterion of performance appraisal.
Answer checked by Claude Haiku · Oct 21, 2026
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