UPSC · Management
Management Paper I
2026
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8 questions
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First 10 Solutions Free
Q1
long answer
50 marks
Answer the following questions in about 150 words each :
(a) Do you think that the traditional roles of managers are still relevant in today’s digital and remote work environment ? Critically comment with examples. (10 marks)
(b) What kind of organisational readiness, from the human resource management perspective, is required for a successful implementation of Artificial Intelligence (AI) in Human Resource (HR) functions ? Identify the possible ethical challenges that Artificial Intelligence (AI) implementation may bring. How can organisations balance process efficiency along with ethical considerations ? (10 marks)
(c) Why do you think cultural diversity is important in organisations ? What strategies can be adopted by a global consulting firm to manage cultural diversity effectively ? Explain. (10 marks)
(d) An organisation is in the process of implementing a new initiative which is required to meet the emerging global challenges, but the employees are resisting the change. Suggest some suitable strategies that management should adopt to implement the change successfully. (10 marks)
(e) “Ethical management is essential for long-term organisational success.” Critically evaluate the statement with examples. (10 marks)
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Q2
long answer
50 marks
(a) How do core management processes influence each stage of the value chain ? How can misalignment between them reduce overall organizational effectiveness ? Illustrate your answer by giving suitable examples. (20 marks)
(b) What are the relevant competencies required for effective performance by an expatriate manager in an international assignment ? If there is more than one candidate who is technically competent, what behavioural parameters would you consider to identify the right candidate for an expatriate assignment ? Discuss. (15 marks)
(c) What are the key impacts of automation and Artificial Intelligence (AI) on recruitment and selection processes ? “Along with several advantages of automation and Artificial Intelligence (AI) in recruitment and selection processes, there are some complexities as well.” Discuss. (15 marks)
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Q3
long answer
50 marks
(a) Analyze how a Multinational Corporation can design its global management structures to support continuous innovation in both developed and emerging markets. (15 marks)
(b) (i) What leadership styles, according to you, are more effective in an innovation-driven organisation ?
(ii) “Leaders often switch between different leadership styles.” Do you agree ? Discuss. (15 marks)
(c) What is the relationship between Organisational Culture and the successful implementation of a Performance Management System ? Discuss with suitable examples. (20 marks)
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Q4
long answer
50 marks
(a) Do modern management approaches represent a true evolution or just a modification of classical theories ? Justify your answer with examples. (15 marks)
(b) How has the growing service sector, especially the Information Technology (IT) sector, impacted trade unions in India ? Discuss in the light of the challenges that trade unions are facing today. (20 marks)
(c) A company in the Information Technology (IT) sector is moving from a traditional structure to become a virtual organisation. What design changes are required in the new organisational structure and why ? Support your answer with examples. (15 marks)
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Q5
long answer
50 marks
Answer the following questions in about 150 words each :
(a) Analyse the impact of adopting historical cost and fair value methods on the reliability and relevance of financial information, especially during periods of market fluctuations and economic uncertainty. (10 marks)
(b) Examine the causes, consequences and management of corporate distress. Evaluate restructuring strategies for organisational recovery and sustainability. (10 marks)
(c) Discuss the role of Artificial Intelligence and Data Analytics in strengthening managerial decision-making, improving performance evaluation and enhancing strategic control in management accounting. (10 marks)
(d) A local bakery brand offers high-quality products at competitive prices, yet experiences low customer retention. What could be the possible reasons for low customer retention ? Suggest suitable solutions to improve customer retention. (10 marks)
(e) Using a company operating in the Retail sector, analyze the differences and similarities between Customer Relationship Marketing (CRM) and Holistic Marketing. Through examples, explain how CRM strategies work together with a Holistic Marketing approach to enhance the customer experience and contribute to the long-term success of business. (10 marks)
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Q6
long answer
50 marks
(a) A company operates under the following conditions :
Selling Price = ₹ 60
Variable Cost = ₹ 50
Fixed Cost = ₹ 1,00,000
Capacity = 20,000 units
Expected Sales = 8,000 units
Shut-down Cost = ₹ 20,000
Assess whether the company should continue its operations or shut down, based on a careful evaluation of its financial and operational position. Suggest suitable justification for your decision. (15 marks)
(b) Discuss the regulatory framework governing capital markets and evaluate its role in promoting transparency, protecting investors and improving market efficiency. (15 marks)
(c) A sports shoe company is losing its market share to its competitors. Analyze possible reasons and suggest suitable strategies to regain its position in the market. (20 marks)
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Q7
long answer
50 marks
(a) A company is facing declining profits, rising costs, excess inventory and cash flow problems. Explain how costing, budgeting and control techniques can be used to identify these issues and develop effective solutions. (15 marks)
(b) A manufacturing enterprise is evaluating a long-term investment proposal aimed at modernizing its production facilities. The project entails a substantial capital outlay on fixed assets, along with an additional investment in working capital to sustain operational activities throughout the project period. The management intends to assess the proposal using the Net Present Value (NPV) method, taking into account all relevant cash flows, including terminal recoveries.
The project details are as follows :
Initial investment in fixed assets : ₹ 8,00,000
Additional working capital requirement : ₹ 1,00,000
(fully recoverable at the end of the project)
Project life : 4 years
Scrap value of assets at the end of Year 4 : ₹ 50,000
Annual cash inflows : ₹ 3,00,000
Cost of Capital : 10%
Answer the following :
(i) Calculate the Net Present Value (NPV) of the project by appropriately considering the initial investment, working capital commitment, annual cash inflows and terminal cash recoveries. (10 marks)
(ii) Based on the computed NPV, evaluate the financial feasibility of the project and justify your recommendation. (4 marks)
(iii) Discuss the significance of incorporating working capital requirements and terminal cash inflows in capital budgeting decisions and explain how their omission may affect project appraisal outcomes. (6 marks)
(c) What are the components of a Marketing Plan ? A company working in the social sector is launching a digital product for adult learners. Explain how each component of a marketing plan will help in a successful launch. (15 marks)
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Q8
long answer
50 marks
(a) A manufacturing concern processes its product through Process-I during May 2026. The company seeks to evaluate production efficiency and cost allocation by applying process costing principles under the weighted average method.
The following operational and cost data are available for the period :
Units introduced into Process-I : 10,000 units
Cost incurred :
Raw Materials : ₹ 1,00,000
Direct Labour : ₹ 60,000
Production Overheads : ₹ 40,000
Normal Loss : 10% of input
Scrap value of normal loss : ₹ 5 per unit
Units transferred to the next process : 8,800 units
Closing work-in-progress : 900 units
Degree of completion of Closing work-in-progress :
Materials : 100%
Labour : 60%
Overheads : 60%
Assume that all materials are introduced at the beginning of the process.
You are required to do the following :
(i) Compute the cost per equivalent unit for materials, labour and overheads using the weighted average method. (6 marks)
(ii) Prepare the Process-I Account for May 2026, clearly showing the allocation of costs. (6 marks)
(iii) Determine the valuation of (a) Normal loss, (b) Abnormal loss or Abnormal gain and (c) Closing work-in-progress. (3 marks)
(b) Critically discuss the challenges and opportunities emerging from the financial sector reforms, with particular reference to the forces of globalization, technological innovation and the evolving regulatory landscape. (20 marks)
(c) (i) Evaluate the challenges and limitations of applying Segmentation, Targeting and Positioning (STP) strategies in a digital and highly dynamic market environment. (7 marks)
(ii) Explain the concept of “One message, One voice” in Integrated Marketing Communication (IMC). How can inconsistencies in Integrated Marketing Communication impact brand perception ? Suggest suitable measures a company should take to ensure a unified (integrated) message across all channels. (8 marks)
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