Attempt CAIIB ABFM Important MCQs and Download Free PDF

1. A bank’s Regional Manager is setting performance targets for the next financial year. He reviews the bank’s mission statement, analyses current market trends, and identifies key result areas before setting specific targets for each branch. Which step in the planning process does this activity represent?

2. Statement 1: Matrix organisation structure combines functional and project-based authority, where employees report to both a functional manager and a project manager simultaneously. Statement 2: A line organisation has a scalar chain of command with a direct relationship between superiors and subordinates, making accountability clear. Statement 3: A functional organisation structure eliminates specialisation by grouping all activities under a single generalist manager. Which of the statements given above is/are correct?

3. In Herzberg’s Two-Factor Theory of motivation, which of the following combinations correctly classifies factors into Hygiene factors and Motivators respectively?

4. Scenario: The HR department of a nationalised bank wants to evaluate the performance of its 200 officers at a zonal level. The evaluation needs to compare each officer against a standard set of defined behavioural expectations tied to specific rating levels to minimise rater subjectivity. Which performance appraisal method is most appropriate in this context?

5. Assertion (A): The controlling function of management is forward-looking and not merely a post-mortem activity. Reason (R): Effective control systems compare actual performance with standards and take corrective action before deviations become serious problems. Choose the correct option:

6. Match the leadership styles in Column A with their defining characteristics in Column B: Column A: 1. Autocratic, 2. Democratic, 3. Laissez-faire, 4. Transformational Column B: P. Leader delegates completely and avoids involvement in group decisions, Q. Leader consults subordinates and decisions are participatory, R. Leader inspires followers through vision and motivation, S. Leader retains decision-making authority and gives direct orders Select the correct match:

7. A commercial bank is facing high employee attrition in its retail branches. An HR consultant recommends implementing a structured onboarding programme, competitive pay bands, and a transparent career progression framework. These recommendations primarily address which function of management?

8. The concept of ‘Management by Exception’ in controlling refers to:

9. Which of the following statements about Organisational Culture is/are correct? 1. Organisational culture refers to the shared values, beliefs, and assumptions that govern how people behave in an organisation. 2. A strong organisational culture always leads to improved financial performance regardless of external environment. 3. Organisational culture is transmitted through symbols, stories, rituals, and ceremonies.

10. Frederick Winslow Taylor’s Scientific Management approach was primarily criticised for which of the following reasons?

11. In Maslow’s Hierarchy of Needs, a bank employee who has stable employment, receives regular salary, and now seeks recognition for outstanding performance and a prestigious designation is operating at which level of the hierarchy?

12. Scenario: A senior manager at a bank consistently rates all his subordinates as ‘average’ in performance appraisals to avoid conflict and administrative burden, even though their actual performance varies widely. This is an example of which appraisal error?

13. Which of the following best describes the concept of ‘Span of Control’ in organisational structure and its impact on the shape of the organisation?

14. The Hawthorne Studies conducted at the Western Electric Company led to which significant insight in management theory?

15. Consider the following sequence of steps in the MBO (Management by Objectives) process and identify the correct order: (i) Setting individual employee objectives in consultation with employees (ii) Reviewing and rewarding performance (iii) Establishing organisational goals (iv) Communicating organisational goals to all levels (v) Monitoring and measuring performance

16. Which of the following statements about the Gantt Chart as a control technique is correct?

17. An employee consistently fails to meet deadlines not because of poor skills but because her supervisor never clearly communicates expectations or provides timely feedback. This situation reflects a failure in which element of the directing function?

18. Which of the following correctly distinguishes between ‘Recruitment’ and ‘Selection’ as components of the staffing function?

19. In the context of organisational conflict, which approach to conflict management involves both parties giving up something to reach a mutually acceptable solution, even if neither party is fully satisfied?

20. Peter Senge’s model of a Learning Organisation identifies five disciplines essential for organisational learning. Which discipline specifically addresses the need for employees to continually clarify and deepen their personal vision and improve their understanding of reality?