Finance Management Questions for RBI Grade B | Test-1

Correct Answer B. Staffing

Explanation: There are four functions of management that span across all industries. They include: planning,organizing, leading, and controlling.Staffing forms a part of the human resource planning function.

Correct Answer –

Correct Answer – D. Benchmarking

Explanation: Bench marking is a process of measuring the performance of a company’s products, services, or processes against those of another business considered to be the best in the industry.The point of benchmarking is to identify internal opportunities for improvement. By studying companies with superior performance, breaking down what makes such superior performance possible, and then comparing those processes to how your business operates, you can implement changes that will yield significant improvements.

Correct Answer – C. Dyadic

Explanation: The leader–member exchange (LMX) theory is a relationship-based approach to leadership that focuses on the two-way (dyadic) relationship between leaders and followers. It suggests that leaders develop an exchange with each of their subordinates, and that the quality of these leader–member exchange relationships influences subordinates’ responsibility, decisions, and access to resources and performance. Relationships are based on trust and respect and are often emotional relationships that extend beyond the scope of employment. Leader– member exchange may promote positive employment experiences and augment organizational effectiveness. It is widely used by many managers and is replacing many of its predecessors.

Correct Answer – C. Graphic Rating Scale

Explanation: Graphic Rating Scale is a type of performance appraisal method  in  which traits or behaviours that are important for effective performance are listed out and each employee is rated against these traits. The rating scale method offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from “poor”  to “excellent” (or some similar arrangement).

Correct Answer – D. Critical Incident Technique

Explanation: The critical incident method of performance appraisal involved identifying and describing specific events (or incidents) where the employee did something really well or something that needs improvement. It’s a technique based on the description of the event, and does not rely on the assignment of ratings or rankings, although it is occasionally coupled with a ratings type system.

Correct Answer – B. Maintaining disciplinary machinery

Explanation: The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles, goals and responsibilities and determining how to allocate rewards.

Correct Answer – A. Adjusting the Standards

Explanation: 6 Steps Involved In The Process Of Performance Appraisal

Necessary Steps in Process Of Performance Appraisal.

Step 1: Establish performance expectations and standards.

Step 2: Providing regular feedback.

Step 3: Measure actual performance.

Step 4: Compare actual performance with standards.

Step 5: Discuss results of appraisal.

Step 6: Come up with corrective measures.

Correct Answer – D. Any of them