Management Principles
Exam Answer Key
Course Introduction
Management Principles introduces students to the foundational concepts, theories, and practices essential to effective organizational management. The course covers key functions including planning, organizing, leading, and controlling while exploring decision-making processes, motivational strategies, and leadership styles. Through real-world case studies and interactive activities, students gain insight into how managers solve problems, allocate resources, and adapt to changing environments to achieve organizational goals. Emphasis is placed on ethical considerations, communication, and the impact of globalization on management practices.
Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel
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Page 2
C. Certo
Chapter 1: Principles of Modern Management: Concepts and Skills
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Q1) ________ refers to all the organizational assets available for activation during the production process.
A) Supplies
B) Plans
C) Technologies
D) Strategies
E) Resources
Answer: E
Q2) Top-level managers tend to have strong ________ skills since they set the strategies for the firm as a whole and need to see how the organizational pieces all fit together.
A) technical
B) human
C) conceptual
D) interpersonal
E) change
Answer: C
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Page 3
Chapter 2: Managers, Society, and Sustainability
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Sample Questions
Q1) Managers who have successfully increased the value of the organization have fulfilled their social obligation towards ________.
A) stockholders
B) consumers
C) government agencies
D) employees and unions
E) banks and other lenders
Answer: A
Q2) Many management theorists and practitioners claim that the immediate payoff of sustainability is usually ________.
A) increased labor productivity
B) higher energy costs
C) bigger social problems
D) improved business
E) increased value
Answer: A
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Page 4
Chapter 3: Management and Diversity
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Sample Questions
Q1) According to Donaldson and Scannell, managers are the most effective with respect to interacting in a diverse workforce in the ________ stage.
A) conscious competition
B) conscious incompetence
C) conscious competence
D) unconscious competence
E) unconscious incompetence
Answer: D
Q2) The assimilation approach to promoting cultural diversity ________.
A) relies on the maxim "Do unto others as you would have them do unto you"
B) addresses past injustices experienced by a particular group
C) pressurizes employees who do not belong to the dominant culture to conform
D) teaches employees the norms and practices of another culture
E) advocates incorporating changes into organization culture based on the cultures of employees
Answer: C
Q3) "Token" employees are always given very high visibility in an organization.
A)True
B)False
Answer: False
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Chapter 4: Managing in the Global Arena
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Sample Questions
Q1) When a company provides an expatriate with basic information about life in a foreign country, such as personal safety, who to call in an emergency, and how to write a check, the company is providing training in ________.
A) cultural profiling
B) cultural adaptation
C) cultural application
D) logistical information
E) repatriation
Q2) A(n) ________ organization considers national borders to be inconsequential to its operations, with ownership, control, and management being from many different countries.
A) international
B) regional
C) pan-national
D) transnational
E) domestic
Q3) Discuss the value Hofstede's cultural dimensions offer to management of multinational organizations.
Q4) Why do managers make foreign investments? What are the risks involved in this?
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Chapter 5: Plans and Planning Tools
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Q1) In order to increase the quality of their objectives, managers should ________.
A) set employees' goals as high as possible
B) ensure that they set objectives entirely by themselves
C) establish goals that are within easy reach
D) let the people responsible for attaining the objectives have a voice in setting them
E) avoid relating objectives to specific actions
Q2) Introduction, growth, maturity, saturation, and decline are stages of ________.
A) product allocation
B) product history
C) product lifecycle
D) service methods
E) resource allocation
Q3) The process of determining how an organization can get where it wants to go and what it will do to accomplish its objectives is known as ________.
A) organizing
B) influencing
C) planning
D) controlling
E) analyzing
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Page 7
Chapter 6: Making Decisions
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Sample Questions
Q1) Which of the following is a traditional technique for managers to use when handling a programmed decision?
A) judgment
B) rules of thumb
C) habit
D) intuition
E) training
Q2) An individual's tendency to believe they are less susceptible to risky events than others is referred to as ________.
A) the bandwagon effect
B) the confirmation bias
C) loss aversion
D) overconfidence
E) unrealistic optimism
Q3) What is the probability theory? Define probability and expected value. How are they related to each other?
Q4) What is bounded rationality?
Q5) Why is decision making such a difficult skill and role for all managers, but primarily difficult for new managers?
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Chapter 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Sample Questions
Q1) Bristol Jones is the owner of a women's shoe store in Wainscot, PA. Her store has been extremely successful selling high-end shoes to the adult market in Wainscot. Management is looking to grow revenues and is considering offering men's shoes as well. What is your advice to Ms. Jones that she consider before taking on this new product line?
Q2) Which of the following is true about social values?
A) Social values are the statistical characteristics of a population.
B) It includes changes in numbers of people among various population segments.
C) Changes in social values can influence the reception of goods and services within the organization's environment.
D) Social values are helpful for developing a strategy aimed at recruiting new employees to fill positions within an organization.
E) The relative degrees of worth that society places on the ways in which it functions can change dramatically over time.
Q3) Managers only perform environmental analysis to help them understand what is happening outside their organization.
A)True
B)False
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Chapter 8: Fundamentals of Organizing
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Sample Questions
Q1) In general, the closer the subordinates are in location to each other, the more of them managers can supervise effectively.
A)True
B)False
Q2) Describe what is meant by the term "division of labor." Also explain the advantages and disadvantages associated with division of labor.
Q3) Which of the following is the main criticism of Weber's bureaucracy model?
A) It fails to emphasize setting detailed procedures and rules.
B) It gives short shrift to the human variable within organizations.
C) It does not emphasize a clearly defined organizational structure.
D) It overemphasizes positive relationships among organization members.
E) It attempts to eliminate paperwork and regulations.
Q4) Which of the following is a disadvantage of division of labor?
A) It makes the work more difficult.
B) It makes work more time-consuming and inefficient.
C) It can result in workers getting bored of their work.
D) It prevents workers from specializing at a task.
E) It requires workers to know about the entire process and not just one task.
Q5) What role does division of labor play in the organizing function of management?
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Chapter 9: Responsibility, Authority, and Delegation
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Q1) According to many management theorists, the most basic method of dividing job activities is the ________.
A) process control method
B) customer location method
C) centralization method
D) functional similarity method
E) overlapping responsibility chart method
Q2) An individual's job activities within an organization are usually summarized in a formal statement known as a ________.
A) job evaluation
B) job description
C) job design
D) job specification
E) job analysis
Q3) ________ is an obligation to perform assigned activities.
A) Centralization
B) Line authority
C) Efficacy
D) Responsibility
E) Functional authority
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Chapter 10: Human Resource Management
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Sample Questions
Q1) ________ is an on-the-job training technique that involves moving an individual from job to job to enable the person to gain an understanding of the organization as a whole.
A) Position rotation
B) Declarative learning
C) Coaching
D) Overlearning
E) Sequence learning
Q2) ________ involves examining human resources for qualities relevant to performing available jobs.
A) Selection
B) Orientation
C) Testing
D) Induction
E) Training
Q3) Briefly describe the role and value of the selection process in providing appropriate human resources to an organization.
Q4) Describe the sources of human resources inside an organization.
Q5) Discuss the need for recruiters to know their source of human resources.
Q6) Write a short essay on the process of recruitment.
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Chapter 11: Organizational Change: Stress, Conflict and Virtuality
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Sample Questions
Q1) A manufacturing company is at significant competitive disadvantage due to the lack of necessary automation. The company has not been able to implement the automated system due to opposition from a group of workers. What strategy can be used here to implement automation?
Q2) ________ is a training process that goes beyond the boundaries and structure of traditional training.
A) Virtual training
B) Virtual teams
C) Virtuality
D) Virtual corporation
E) Virtual organization
Q3) The avoiding technique is generally appropriate when ________.
A) the planned change is extensive and time is limited
B) an emergency change has to be made in the organization
C) a win-win solution is essential to the organization
D) the parties involved in the conflict are powerful
E) the potential conflict will not limit organizational goal attainment
Q4) What is the value Virtuality offers to organizations and the employees within them?
Q5) Explain the concept of grid organizational development (grid OD).
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Chapter 12: Influencing and Communication
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Sample Questions
Q1) Another term for the influencing function of management is ________.
A) planning
B) leading
C) interacting
D) controlling
E) organizing
Q2) Henry just heard a rumor from one of his coworkers. He immediately passes the information on to the first person who happens to walk by. This is an example of the ________ grapevine.
A) single-strand
B) gossip
C) probability
D) cluster
E) leader-centered
Q3) The communication source's view of the destination is a microbarrier of communication.
A)True
B)False
Q4) Explain the difference between communication macrobarriers and communication microbarriers. Give an example of each.
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Chapter 13: Leadership
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Sample Questions
Q1) According to the contingency theory of leadership, the degree to which the goals and other situational factors are outlined clearly is called ________.
A) organizational power
B) task structure
C) internal configuration
D) independence
E) position power
Q2) Bryan is the production manager of a small company that manufactures printed circuit boards. Prior to making a decision, Bryan usually asks for information from his subordinates. However, his subordinates are not always informed about the problem at hand. Which of the following VYJ model decision-making styles does Bryan use?
A) AI
B) AII
C) GII
D) CI
E) CII
Q3) What are the major forces in a situation that influence a manager's determination of how to make decisions? Explain briefly.
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Chapter 14: Motivation
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Sample Questions
Q1) A reward that consists of the elimination of an undesirable consequence of behavior is ________.
A) punishment
B) negative reinforcement
C) exemption
D) omission training
E) immunity
Q2) A toy manufacturing company providing its employees with job security, health insurance, and retirement benefits is concerned about its employees' ________.
A) esteem needs
B) safety needs
C) physiological needs
D) social needs
E) self-actualization needs
Q3) According to equity theory, the only way people react when treated unfairly at work is seeking employment elsewhere.
A)True
B)False
Q4) List the categories of needs identified by Alderfer in his ERG theory.
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Chapter 15: Groups and Teams
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Q1) Which stage of team development is characterized by a focus on solving organizational problems and meeting assigned challenges?
A) forming
B) storming
C) acceptance
D) performing
E) adjourning
Q2) According to ________, the feedback on the functioning of the informal group can give managers ideas about how to modify the formal group so as to increase the probability that informal group members will achieve the satisfaction and growth they desire.
A) Bernard Bass
B) the sociometric framework
C) Maslow's hierarchy
D) Homans model
E) the group communication framework
Q3) Define a committee. List the four major reasons for establishing committees within an organization.
Q4) List the six task-related steps that help managers build effective work teams.
Q5) List the stages of formal group development.
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Chapter 16: Managing Organization Culture
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Q1) The ________ dimension of organization culture is a facet of organization culture that focuses on making sure that an organization emphasizes not only what is good for the organization, but what is good for other human beings.
A) quality
B) customer
C) ethics
D) spirituality
E) innovation
Q2) How does building a hierarchy of objectives help build a high-performance organization culture?
Q3) Organizational commitment can be equated to the ________ that influences employees to act in ways that are consistent with the organization's interests.
A) glue
B) psychological bond
C) appeal
D) cultural tack
E) innovation dimension
Q4) Briefly explain the role of organizational rewards as a cultural artifact.
Q5) Write a short essay on the importance of organization culture.
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Chapter 17: Controlling, Information, and Technology
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Sample Questions
Q1) Information required for decisions related to strategic planning should ________.
A) emphasize the performance history of the organization
B) focus on the internal organization environment
C) focus largely on the external organizational environment
D) have a narrow scope and be to the point
E) be very detailed
Q2) Information required for decisions related to operational control should ________.
A) emphasize the future
B) be well defined and narrow
C) come largely from external sources
D) primarily contain historical data
E) provide an aggregate without going into the details
Q3) Which of the following is the last step in the controlling process?
A) comparing measured performance to standards
B) taking corrective action
C) measuring performance
D) establishing standards
E) establishing units for measuring performance
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Chapter 18: Production and Control
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Q1) ________ is a plan of action aimed at providing the organization with the right facilities to produce the needed output at the right time.
A) Location strategy
B) Process strategy
C) Product strategy
D) Layout strategy
E) Capacity strategy
Q2) According to Deming's flow diagram for improving product quality, which of the following is the next step after the receipt and test of materials?
A) testing of processes, machines, methods, costs
B) production and assembly of raw materials
C) assembly and inspection of raw materials
D) distribution of materials across the organization
E) conducting consumer research on product quality
Q3) An organization wants to involve all company employees in quality control. Can you suggest a technique to help the organization?
Q4) Briefly define the main points of strategies, systems, and processes.
Q5) What are the potential pitfalls of budgets?
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Chapter 19: Appendix 1: Managing History and Current Thinking
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Q1) Which of the following management approaches makes use of inventory, network, and probability models as aids in the decision-making process?
A) Classical
B) Behavioral
C) Management Science
D) Contingency
E) System
Q2) ________, the primary investigative tool in the Gilbreths' research, consists of reducing each job to the most basic movements possible.
A) Ergonomics
B) Motion study
C) Piecework
D) Reductionism
E) Division of work
Q3) How is lower-level management analysis different from comprehensive analysis of management? Is the latter approach suitable for an organization focusing on increasing productivity by concentrating on the "one best way" to perform a task? Explain your answer.
Q4) What are the steps involved in using the scientific method?
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Chapter 20: Management and Entrepreneurship: Handling
Start-Ups and New Ventures
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Q1) When do entrepreneurs require external capital? Describe the three primary sources of external capital.
Q2) Exploitation exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.
A)True
B)False
Q3) Who is an entrepreneur?
Q4) One distinction between commercial and social entrepreneurship involves the availability of resources such as funding and employees.
A)True
B)False
Q5) Define social entrepreneurship.
Q6) An entrepreneurial team advantage can be equated to ________ as those on the team share their experiences and knowledge.
A) entrepreneurial alertness
B) information asymmetry
C) social networks
D) feasibility analysis
E) illusion of control
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Chapter 21: Encouraging Creativity and Innovation
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Sample Questions
Q1) Give a short description of the concept of "innovation."
Q2) Which of the following is an intrinsic source of motivation for a creative individual?
A) organizational rewards
B) incentives
C) promotions
D) punishments
E) personal interest
Q3) Which of the following statements best corresponds to the developing step of the innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses user concerns.
Q4) Briefly describe the time-pressure/creativity matrix.
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