Principles of Management

1. When a manager performs symbolic duties as the head of an organization, that manager is called a

A.spokesperson.C.leader.

B.figurehead.D.liaison.

2. What is one characteristic of the Industrial Revolutionin America?

A.The farming society grew to greater numbers.

B.The movement lacked an adequate means of communication.

C.Inventions allowed industries to locate in new areas.

D.Water and horse power were important elements ofits success.

Questions 3 and 4 are based on the following information.

The controlling-authoritative manager believes that most employees don’t like to

work and will work at the required level of productivity only if they’re forced by threat of punishment.

3. What theory of management does this statement describe?

A.Theory XC.Systems theory

B.Theory YD.Contingency theory

4. What management theory was proposed in contradiction and opposition to this theory?

A.Theory XC.Systems theory

B.Theory YD.Contingency theory

5. A manager who groups related activities together and assigns employees to perform

them is performing the management role of

A.controlling.C.leading.

B.organizing.D.planning.

6. Henri Fayol’s greatest contribution was

A.the piece-rate system.C.time-and-motion studies.

B.the Gantt Chart.D.the functions of management.

7. The process of deciding the bestway to use an organization’s resources to produce

goods and services is known as

A.leadershipC.management.

B.allocation.D.planning.

8. What is the best way to determine if the receiver of your message correctly

understands the message?

A.Ask the receiver if he or she understands the message.

B.Speak clearly and distinctly.

C.Study the receiver’s body language.

D.Ask the receiver to explain what he or she has heard.

9. Semantics refers to the meaning of words, while perception refers to the ______

of information.

A.hearingC.interpreting

B.receivingD.sending

10. Selecting the first alternative that meets a decision maker’s minimum standard of

satisfaction is called

A.satisficing.C.minimaxing.

B.optimizing.D.aspiring.

11. The latest demographic information shows that the United States is becoming

A.older and more diverse.C.younger and more diverse.

B.younger and less diverse.D.older and less diverse.

12. Which one of the following elements is considered part of paralanguage?

A.Body positionC.Eye contact

B.GesturesD.Tempo of speech

13. Frederick W. Taylor developed the philosophy of

A.piece-rate systems management.C.styles of management.

B.scientific management.D.Hawthorne effect management.

14. Three colleagues are discussing the process of brainstorming. Grady maintains that

ideas aren’t to be criticized, praised, or discussed during the first phase of brainstorming. Alice disagrees, arguing that praise for ideas is recommended in the first phase.

Timothy chimes in to point out that the merits of ideas are discussed in phase two, but

that it’s OK to criticize ideas In phase one. Who is correct?

A.TimothyC.Grady

B.AliceD.None of the three is correct.

15. Which one of the following tasks is the responsibility of supervisory management?

A.Determining the use of resources

B.Meeting goals established by senior management

C.Setting objectives for an organization

D.Managing production workers

16. Which one of the following functions generally supports an MIS?

A.Decision makingC.Brainstorming

B.Data processingD.Problem solving

17. Which one of the following terms is associated with the optimizing approach?

A.LimitsC.Rationality

B.PerceptionsD.Biases

18. What is one element that Theory Z takes from Japanese companies?

A.Collective decision makingC.Authoritative management

B.Individual responsibilityD.Contingency management

19. Which one of the following statements about the grapevine istrue?

A.Honesty from management can eliminate the grapevine.

B.The grapevine is often accurate.

C.The grapevine exists only among nonmanagement personnel.

D.The flow of information on the grapevine follows organizational hierarchy.

20. What was the main conclusion drawn from the Hawthorne studies?

A.Constant supervision is required for keeping employees on task.

B.Laissez-faire style management increases production and improves employee morale.

C.Giving special attention to a group of employees changes their behavior.

D. Employees are more effective when left alone to perform tasks.

Planning

1. Which one of the following is a defensive strategy?

A.DiversificationC.Concentration

B.Vertical integrationD.Divestiture

2. Negative power is primarily associated with

A.voluntary exchange relationships.

B.situations in which an individual is forced to change.

C.situations in which both parties to an exchange feel goodabout it.

D.exchange relationships in which involuntary compliance isviewed positively.

3. Which one of the following situations is an example of overall cost leadership?

A.A dress manufacturer wants to make its product unique in its category.

B. A company that manufactures school desks is looking for ways to make its

desks less expensive than its competition.

C. A restaurant is seeking to reverse a negative trend to get themselves back

to profitability.

D. A large corporation has determined to liquidate parts of its business

.

4. Graham maintains that formulation and implementation are phases in the strategicmanagement process. Yolanda maintains that evaluation and estimation are also partof this process. Who is

correct?

A.Yolanda is correct.

B.Both Graham and Yolanda are correct.

C.Graham is correct.

D.Neither Graham nor Yolanda is correct.

5. What is the typical time span for long-range plans?

A.More than 1 yearC.3–5 years

B.2–3 yearsD.About 25 years

6. Which one of the following leadership styles could be Bestcharacterized by the statement “Let George do it”?

A.ContingentC.Democratic

B.Laissez-faireD.Autocratic

7. According to the Managerial Grid, which basic style of management has a high concernfor people and a low concern for production?

A.Country club management

B.Authority-obedience management

C.Organization man management

D.Team management

8. Tactical planning focuses on the formulation of ______plans.

A.long-rangeC.functional

B.contingencyD.strategic

9. Which one of the following characteristics is associated with charismatic leaders?

A.Following management by the book

B.Lacking confidence in employees’ abilities

C.Promoting their beliefs with boundless energy

D.Controlling the behavior of others

10. Leadership is best defined as the

A.ability to influence people to willingly follow one’s guidance or adhere to

one’s decisions.

B.ability to influence, command, or apply force.

C.ability to avoid being forced by others to do what he or she doesn’t want to do.

D.right to issue directives and expend resources.

11. What tool was developed as a result of the Ohio State Studies?

A.Managerial grid

B.Least preferred coworker scale

C.Continuum of leader behavior

D.Leader Behavior Description Questionnaire

12. Management by objectives works best when the objectives of each organizational unitare derived from

A.the social environment.

B.the objectives of a competitor.

C.the objectives of the next higher unit in the organization.

D.a functional or general manager.

13. Which one of the following quotes suggests a leader with an attitude consistent withTheory Y?

A.“These people hate work. If possible, they would never come in.”

B.“My advice to you as a new manager is to be firm with your people. Otherwise,

they won’t put out any effort to achieve our goals.”

C.“My employees have very little ambition. All they want is to know their jobs

are secure.”

D.“My people are committed to our organization’s objectives because they know

what’s in it for them.”

14. At the office, Jacob knows from his boss that his needs will be met as long as Jacobperforms his duties successfully. What theory of leadership does Jacob’s boss follow?

A.Situational leadership theory

B.Transformational leadership theory

C.Path-goal theory

D.Fiedler’s contingency theory

15. Which one of the following elements is part of an organization’s broad environment?

A.StockholdersC.Competitors

B.Political trendsD.Labor unions

16. Basically speaking, a contingency plan is a ______plan.

A.backupC.crisis management

B.primaryD.tactical

17. According to Peter Drucker, who determines an organization’s purpose, or mission?

A.Company executives

C.Stockholders

B.Customers

D.Supervisors

18. Which one of the following is a personal source of power?

A.Coercive powerC.Referent power

B.Reward powerD.Legitimate power

19. Process culture emphasizes

A.the way things are to be done rather than the outcomes.

B.taking few risks and attaining rapid feedback.

C.making decisions that involve big stakes.

D.taking high risks while getting quick feedback.

20. Which one of the following employees would be mostlikely to develop a plan forscheduling the completion of a production job?

A.Chief executive officerC.Lower-level manager

B.Senior vice presidentD.Production employee

ORGANIZING

1. A vertical division of labor is based on

A.the establishment of lines of authority.

B.the specialization of work.

C.the rotation of tasks.

D.improved efficiency through repetitive simple tasks.

2. Above all, an appropriate organizational structure helps to

A.manage competitors.

B.prevent behavioral issues among employees.

C.eliminate unethical scandals.

D.foster good performance.

3. Which one of the following factors is a negative aspect of groups?

A.ConformityC.Groupthink

B.NormsD.Cohesiveness

4. What term describes the principle by which groups working together can produce morethan individuals working alone?

A. SynergismC. Centralization

B.EmpowermentD.Scalar principle

5. The matrix form of organization is a

A.structure that results when staff specialists are added to a line organization.

B.way of forming project teams within the traditional line and staff organization.

C.form that consists of two core groups.

D.temporary network of companies linked by information technology.

6. Which one of the following tools includes the specific tasks and duties to be performed by an employee?

A.Job analysisC.Job description

B.Job specificationD.Skills inventory

7. Which statement best defines the concept of empowerment?

A.Employeesare promoted to higher levels of management.

B.Power is taken away from subordinates to increase managerial efficiency.

C.Power is spread equally among all levels of management.

D.Subordinateshave substantial authority to make decisions.

8. Staffing activities have traditionally been provided by

A.line managers.

B.human resource departments.

C.production supervisors.

D.financial managers.

9. Which statement best defines thescalar principle?

A.Managers should concentrate on matters that deviate significantly from normal and

allow subordinates to handle routine matters.

B.Employees should have one and only one immediate manager.

C.Authority in an organization should flow through the hierarchical chain of command

from the highest to the lowest ranks.

D.Authority and responsibility must coincide.

10. Psychomotor tests are designed to measure

A.a person’s ability or capacity to learn.

B.an applicant’s ability to perform sample tasks required for a job.

C.a person’s strength, dexterity, and coordination.

D.a person’s personality characteristics.

11. Which one of the following functions has the greatest potential for being outsourced?

A.AssemblyC.Supervision

B.Human resourcesD.Maintenance

12. Which one of the following is the best definition of centralization?

A.A great deal of authority is delegated to lower levels of management.

B.Authority is spread out evenly among all levels of management.

C.Little authority is delegated to lower levels of management.

D.Full authority is granted to subordinate employees.

13. Which one of these statements best characterizes the contingency approach?

A. Nearly all situations can be handled well through a universal organizational structure.

B. The variables in a corporation shouldn’t affect its organizational structure.

C. Most situations are managed best by grouping jobs into related work units.

D. Different situations and conditions require different organizational structures.

14. Organic systems are characterized by

A. a rigid definition of functional duties and precise job descriptions.

B. a narrow division of work and specialized tasks.

C. somewhat flexible and informal job descriptions.

D.the ordering of control, authority, and communication in a hierarchical manner.

15.Reverse discrimination can best be defined as

A. prohibiting discrimination based on race, sex, color, religion, or national origin.

B. providing preferential treatment for one group over another in lieu of providing

equal opportunity.

C .prohibiting the hiring of illegal aliens.

D. increasing access to services and jobs for persons with disabilities.

16. What is the major problem with a horizontal division of labor?

A. Jobs can become boring.

B. Tasks are constantly changing.

C. Jobs are too difficult for unskilled workers.

D.Tasksare time-consuming.

17. Which one of the following is a characteristic of a horizontal structure?

A. Employees are told what to do, not why they’re doing it.

B. Supervision is greater than it is with other structures.

C. Team performance is rewarded.

D. Customer contact with employees is minimized.

18. What type of departmentalization is most likely to be used in organizations that work

around the clock?

A. Hybrid departmentalization

B. Shift departmentalization

C. Customer departmentalization

D. Functional departmentalization

19. The term group norms refers to the

A. informal rules a group adopts to regulate its member’s behavior.

B. degrees of attraction each member has for a group.

C.degrees to which members of a group accept the expectations of the group.

D.cohesiveness of a group.

20. The traditional view of authority is called the

A.Follett theory of authority.

B. acceptance theory of authority.

C.Barnard theory of authority.

D. formal theory of authority.

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