GS Paper 1 Question Paper 2026- Set A

Today, UPSC asked current affairs questions from 2024 as well.
We will provide 2 years of current affairs.

HRM Theories & Concepts

Taylor’s Scientific Management: Focuses on efficiency through time-motion studies, standardization and scientific selection of workers.


Fayol’s Administrative Theory: 14 universal principles of management for better planning, organizing and controlling.


Mayo’s Human Relations Theory: Hawthorne Studies proved that social & psychological factors boost productivity more than physical conditions.


Maslow’s Hierarchy of Needs: Motivation occurs only when lower needs
(physiological → safety) are satisfied before higher ones (esteem → self-actualization).


McGregor’s Theory X: Assumes workers are lazy, dislike work and need strict supervision & control.



McGregor’s Theory Y: Assumes workers are self-motivated, creative and seek responsibility when given opportunity.



Herzberg’s Two-Factor Theory: Hygiene factors (salary, conditions) prevent dissatisfaction; Motivators (achievement, recognition) create true satisfaction.


Alderfer’s ERG Theory: Three core needs – Existence, Relatedness, Growth (more flexible than Maslow).


Vroom’s Expectancy Theory: Motivation = Expectancy × Instrumentality × Valence (effort leads to performance → reward → value).



Adams’ Equity Theory: Employees compare their input-output ratio with others; perceived inequity demotivates.



Locke’s Goal-Setting Theory: Specific, challenging and measurable goals improve performance when accepted by the employee.


Management by Objectives (MBO): Joint goal-setting between superior and subordinate with periodic review and feedback (Drucker).



Job Enrichment: Vertical loading of jobs by adding responsibility, autonomy and decision-making power (Herzberg).


Hackman & Oldham’s Job Characteristics Model: Five core dimensions (skill variety, task identity, task significance, autonomy, feedback) determine job motivation.


Big Five Personality Theory: OCEAN model – Openness, Conscientiousness, Extraversion, Agreeableness, Neuroticism.


Situational Leadership Theory: Best leadership style depends on follower’s readiness and maturity level.



Transformational Leadership: Inspires and motivates followers to achieve extraordinary results beyond expectations.


Transactional Leadership: Based on clear structure, rewards for good performance and punishment for poor performance.


Procedural Justice: Fairness in the decision-making process and rules used by management.
Distributive Justice: Fairness in the actual distribution of outcomes and rewards.



Interactional Justice: Fairness in interpersonal treatment, respect and communication by superiors.


Training: Improves current job knowledge, skills and performance.



Development: Prepares employees for future roles, responsibilities and career growth.



Offshoring: Moving business processes (e.g., HR payroll) to another country to reduce cost.
Moonlighting: Practice of employees taking a second job outside normal working hours.

(Details in notes , to be uploaded on cracktarget.com)

During a promotion and performance appraisal process, the organisation followed transparent rules, gave the employee a fair hearing, and distributed outcomes strictly on merit. However, the reporting manager communicated the decision in a rude, biased tone and provided inadequate explanation. The employee feels highly dissatisfied. This case primarily violates:

A high-performing senior analyst perceives that his input (expertise, extra hours, and responsibility) far exceeds that of a newly joined colleague who receives a higher bonus and faster promotion due to "market correction." According to Adams' Equity Theory, which of the following is the least likely behavioural response from the senior analyst?

Key theories and concepts in Public Administration.


Classical Theories (Focus: Efficiency, Hierarchy, and Rationality)

Politics-Administration Dichotomy (Woodrow Wilson, 1887)
Argues for a clear separation between political policy-making and neutral, professional administration to ensure efficiency and reduce corruption.

Scientific Management Theory (Frederick Taylor)

Emphasizes "one best way" to perform tasks through time-motion studies, standardization, and incentive-based pay to maximize worker efficiency.


Bureaucratic Theory (Max Weber)

Describes an ideal-type bureaucracy based on hierarchy, rules, impersonality, merit-based selection, and written records for rational and efficient administration.


Administrative Management Theory / Principles (Henri Fayol)

Outlines 14 principles of management (e.g., division of work, unity of command, scalar chain) and five functions (planning, organizing, commanding, coordinating, controlling).


POSDCORB (Luther Gulick & Lyndall Urwick)

A mnemonic for the seven executive functions: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting.


Neo-Classical / Behavioral Theories (Focus: Human Element and Decision-Making)
Human Relations Theory (Elton Mayo – Hawthorne Studies)


Highlights the importance of social factors, group dynamics, morale, and informal organizations over purely economic incentives for productivity.


Behavioral Science Approach (Herbert Simon, Chester Barnard)
Views administration as decision-making; emphasizes bounded rationality (satisficing rather than optimizing) and the limits of rational choice.
Systems Theory
Sees organizations as open systems interacting with their environment through inputs, processes, outputs, and feedback loops.


Contingency Theory
Argues there is no single best way to organize; the optimal structure depends on internal and external situational factors ("it all depends").

Structural-Functional Approach
Examines how administrative structures perform functions to maintain equilibrium in society (drawn from sociology).

Contemporary / Postmodern Theories (Focus: Results, Citizens, and Governance)
New Public Administration (Dwight Waldo, 1968 Minnowbrook Conference)
Stresses social equity, democratic values, client orientation, and relevance over pure efficiency; rejects value-neutral administration.


New Public Management (NPM)
Applies private-sector practices (performance measurement, market mechanisms, decentralization, results-orientation) to make government more efficient and customer-focused.
New Public Service
Shifts focus from "steering" or "rowing" to serving citizens as partners in co-creating public value, emphasizing democracy and community over market logic.

Public Choice Theory

Applies economic principles to politics and bureaucracy; views public officials as self-interested actors and critiques bureaucratic inefficiency.

Principal-Agent Theory
Analyzes the relationship between elected officials (principals) and bureaucrats (agents), focusing on issues of accountability, information asymmetry, and control.


Institutional Theory

Explains how formal rules, norms, and organizational cultures shape administrative behavior and legitimacy.


Network / Collaborative Governance Theory
Emphasizes inter-organizational networks, partnerships across government, private sector, and civil society for complex policy problems.


Good Governance (World Bank influence, post-1989)
Promotes transparency, accountability, rule of law, participation, and effectiveness to build public trust and legitimacy.


Public Service Motivation (PSM) Theory
Explores why individuals are motivated to serve the public interest beyond monetary rewards (altruism, civic duty).
Street-Level Bureaucracy (Michael Lipsky)
Focuses on frontline public servants (e.g., teachers, police) who exercise significant discretion and effectively shape policy through daily decisions.

Incrementalism (Charles Lindblom – "Muddling Through")
Describes decision-making as small, successive adjustments rather than comprehensive rational planning.
Rational Comprehensive Model
Ideal-type decision-making: define goals, evaluate all alternatives, and choose the optimal one (contrasted with incrementalism and bounded rationality).


Postmodern Public Administration Theory
Rejects grand narratives; emphasizes relativism, social construction of reality, discourse, and humanistic/democratic values in administration.

Total Quality Management (TQM) in Public Sector
Adopts continuous improvement, customer focus, and employee involvement to enhance service quality and efficiency.

Democratic Governance / Participatory Governance
Stresses citizen involvement, decentralization, and accountability mechanisms to make administration more responsive and inclusive.
These theories evolved in response to changing societal, economic, and political contexts—from industrial-era efficiency needs to modern demands for equity, transparency, and citizen-centric service. Classical theories laid the foundation, while later ones addressed their limitations (e.g., rigidity, neglect of human and democratic elements).

Refrence book

key concepts in Principles of Accounting & Financial Management.


1. Business Entity Concept
The business is treated as a separate legal entity from its owners. Personal transactions of owners are not mixed with business records, ensuring clear financial tracking.

2. Going Concern Assumption
The business is assumed to continue operating indefinitely (not liquidate soon). This allows assets and liabilities to be valued over their useful life rather than at forced-sale prices.

3. Accrual Basis of Accounting
Revenues and expenses are recorded when earned or incurred, not when cash is received or paid. This gives a more accurate picture of financial performance than cash-basis accounting.

4. Revenue Recognition Principle
Revenue is recorded when it is earned and realizable (e.g., goods delivered or services performed), regardless of cash receipt. It prevents over- or under-stating income.

5. Matching Principle
Expenses must be matched with the revenues they help generate in the same accounting period. This ensures proper profit calculation (also called expense recognition).

6. Historical Cost Principle
Assets and liabilities are recorded at their original purchase cost, not current market value. This provides objective, verifiable data for consistency.

7. Consistency Principle
The same accounting methods and policies must be used from one period to the next. It allows meaningful comparisons of financial statements over time.

8. Materiality Principle
Only information that could influence users’ decisions is disclosed. Immaterial (small) items can be ignored to keep statements practical and uncluttered.

9. Conservatism (Prudence) Principle
When in doubt, choose the option that understates assets/income or overstates liabilities/expenses. It protects against over-optimistic reporting.

10. Duality (Double-Entry Bookkeeping)
Every transaction affects at least two accounts (debit and credit) and keeps the accounting equation in balance. This is the backbone of reliable record-keeping.

11. Accounting Equation

Assets= Liabilities + Equity

This fundamental equation shows the relationship between what the business owns, owes, and the owners’ residual claim. It underpins the entire balance sheet.

12. Financial Statements
The core reports—Balance Sheet (financial position), Income Statement (profit/loss), and Cash Flow Statement (cash movements)—provide a complete view of a company’s financial health.

13. Time Value of Money (TVM)
A rupee today is worth more than a rupee in the future due to earning potential (interest). Core calculations include Present Value (PV) and Future Value (FV) for investment decisions.

14. Risk and Return Tradeoff
Higher potential returns usually come with higher risk. Investors and managers must balance risk tolerance with expected returns when evaluating opportunities.

15. Objectives of Financial Management (Wealth Maximization)
The primary goal is to maximize shareholder wealth (stock price or firm value) rather than just short-term profit. This guides long-term decision-making.

16. Capital Budgeting Techniques
Methods to evaluate long-term investment projects, such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. They help decide which projects to accept.

17. Cost of Capital
The required return on invested funds (often measured as Weighted Average Cost of Capital – WACC). It serves as the minimum hurdle rate for new investments.

18. Capital Structure
The mix of debt and equity used to finance the business. Decisions here affect cost of capital, risk, and firm value (trade-off between tax benefits of debt and bankruptcy risk).

19. Working Capital Management
Managing short-term assets (cash, inventory, receivables) and liabilities to ensure sufficient liquidity for day-to-day operations without tying up excess funds.

20. Financial Ratio Analysis
Using ratios (liquidity, profitability, solvency, efficiency, and market ratios) to analyze financial statements. It helps assess performance, solvency, and profitability trends.