Foundations of Management Exam Practice Tests
Course Introduction
Foundations of Management introduces students to the fundamental principles, theories, and practices that underpin effective management within organizations. The course covers essential topics such as planning, organizing, leading, and controlling, while exploring concepts related to decision-making, motivation, communication, and team dynamics. Through analysis of real-world case studies and contemporary management challenges, students gain insight into the roles and responsibilities of managers, the impact of organizational culture, and strategies for fostering innovation and ethical behavior in diverse business environments.
Recommended Textbook Management 8th Australia Edition by Stephen Robbins
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18 Chapters
2328 Verified Questions
2328 Flashcards
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Page 2
Chapter 1: Managers in the Workplace
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139 Verified Questions
139 Flashcards
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Sample Questions
Q1) Whereas effectiveness is concerned with the means of getting things done, efficiency is concerned with the ends, or attainment of organisational goals.
A)True
B)False
Answer: False
Q2) In considering the importance of managerial roles in large firms, four of the following are of moderate importance to managers in large firms.Which out of the following is most important to managers of large firms?
A)liaison
B)monitor
C)disturbance handler
D)negotiator
E)resource allocator
Answer: E
Q3) A finance manager who reads The Financial Review on a regular basis would be performing the figurehead role.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Management History
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) Robert Owen is best remembered for ________, in contrast to Hugo Munsterberg's interest in efficiency.
A)workplace social reform
B)job design
C)employee training
D)reducing employee workplace suffering
E)psychological testing
Answer: A
Q2) Sustainable management is really only concerned that future generations will be able to continue operating businesses profitably.
A)True
B)False
Answer: False
Q3) Follett is the scientist who is most closely associated with the Hawthorne Studies.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Managing the External Environment and Organisational Culture
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140 Verified Questions
140 Flashcards
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Sample Questions
Q1) The link between values and managerial behaviour is fairly straightforward.
A)True
B)False
Answer: True
Q2) Refer to Operating within the Environment (Scenario).Imagine you are the manager of a real estate office trying to maximise profits.If the mortgage interest rates increase, this would be an example of changing ________ in your general environment.
A)economic conditions
B)political conditions
C)competition
D)social conditions
E)technological conditions
Answer: A
Q3) A manager's role in the omnipotent view of management is to create meaning out of randomness, confusion and ambiguity.
A)True
B)False
Answer: False
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Chapter 4: Managing in a Global Environment
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Sample Questions
Q1) In a short essay, explain why sustainable business practices are becoming a critical activity in managing international businesses of all types.Include an example of sustainable business practice leading to cost savings rather than cost increases.
Q2) Refer to A Foreign Alliance Talk (Scenario).One issue you must cover is the European Union, which started in late 1992, and today united more than a half billion people of _____ nations, including France, Denmark, Austria and others.
A)100
B)20
C)34
D)38
E)28
Q3) China is an example of a collectivist nation.
A)True
B)False
Q4) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.
A)True
B)False
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Chapter 5: Social Responsibility and Managerial Ethics
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141 Verified Questions
141 Flashcards
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Sample Questions
Q1) In the classical view of social responsibility, managers are responsible to any group affected by the organisation's decisions and actions.
A)True
B)False
Q2) The socioeconomic view of corporate responsibility suggests that ________.
A)shareholders are the only responsibility
B)corporations are independent entities
C)maximising profits is the first priority while social responsibility is the second priority
D)corporations are responsible to the larger society
E)organisations have an ethical, but no legal, responsibility to anyone except shareholders
Q3) The 'market approach' to 'going green' is when organisations respond to multiple demands of stakeholders.
A)True
B)False
Q4) In a short essay, explain the three levels of moral development and discuss the conclusions that can be drawn from research on the levels and stages of moral development.
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Chapter 6: Managers As Decision Makers
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) Which of the following is a characteristic of unstructured problems?
A)They are typical.
B)They tend to be rehashed problems from the organisation.
C)Information is straightforward.
D)They tend to have incomplete or ambiguous information.
E)They are fast breaking in nature.
Q2) Refer to The First Job (Scenario).During your job search, you depend on
decision making by making your decision based on accumulated judgment and experience.
A)experiential
B)legal
C)intuitive
D)maximax
E)formidable
Q3) Which of the following does NOT contribute towards a 'planning' decision?
A)What are the organisation's long-term objectives?
B)What strategies will best achieve those objectives?
C)How many employees should I have report directly to me?
D)What should the organisation's short-term objectives be?
E)How difficult should individual goals be?
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Chapter 7: Managing Change and Innovation
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112 Flashcards
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Sample Questions
Q1) Which of the following is NOT a cultural variable that supports innovation?
A)acceptance of ambiguity
B)tolerance for the impractical
C)high external controls
D)tolerance of risks
E)focus on ends, not means
Q2) Refer to Lightspeed.com.au (Scenario).When Edwin feels frustrated that he does not have control over team members' 'actual' work or the organisational rules, regulations and policies, he is contending with ________.
A)low external control
B)diversity of opinions
C)negative feedback
D)abundant resources
E)unclear goals
Q3) Never negotiate with employees as a means of overcoming resistance to change.
A)True
B)False
Q4) Change threatens the investment you have already made in the status quo.
A)True
B)False
Page 9
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Chapter 8: Foundations of Planning
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Sample Questions
Q1) If a manager wanted to predict next quarter's sales on the basis of four years of previous sales data, she would probably use ________.
A)time-series analysis
B)sales force composition
C)regression models
D)econometric models
E)substitution effect
Q2) Objectives are goals.
A)True
B)False
Q3) In a short essay, list and discuss the two categories into which forecasting techniques fall.Next list and describe three of the best-known quantitative and three of the best-known qualitative forecasting techniques.Include a discussion of how each of the listed techniques can be applied to business problems.
Q4) Are strategic or operational plans needed? Does long-term planning make sense in all situations? These decisions are affected by three contingency variables.In a short essay, list the three planning contingency factors and illustrate how these factors influence planning.
Q5) In a short essay, list and discuss six characteristics of well-designed goals.
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Chapter 9: Strategic Management
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Sample Questions
Q1) Managers in all kinds of organisations face increasingly intense global competition and high performance expectations by investors and customers.
A)True
B)False
Q2) Strategic management uses the management function(s)________.
A)planning and leading
B)organising
C)controlling
D)both A and B
E)all of the above
Q3) In ________, the organisation attempts to gain control of its inputs by becoming its own supplier.
A)forward vertical integration
B)backward vertical integration
C)horizontal integration
D)related diversification
E)unrelated diversification
Q4) In a short essay, list and discuss three strategies where organisations might use e-business to gain a competitive advantage.Give examples of each.
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Chapter 10: Managerial Controls
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Sample Questions
Q1) What type of control prevents anticipated problems?
A)projected control
B)feedforward control
C)concurrent control
D)definitional control
E)feedback control
Q2) The most frequently used organisational performance measures include all of the following EXCEPT ________.
A)situational analysis
B)organisational productivity
C)organisational effectiveness
D)industry rankings
E)both A and C
Q3) Refer to Information Controls (Scenario).When John organises and processes the raw, unanalysed facts, he will have ________.
A)information
B)data
C)systems
D)a management information system
E)feedback
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Chapter 11: Managing Operations
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) The importance of leadership to value chain management is plain and simplesuccessful value chain management ________.
A)must have a strong leader at the helm
B)is relatively independent of leadership style
C)is a result of leadership
D)is not possible without strong leadership
E)depends on how long the leader is in the company
Q2) All of the following are mentioned as Deming's 14 Points for Improving Management's Productivity EXCEPT ________.
A)deal with the best and least number of customers
B)drive out fear
C)encourage departments to work closely together
D)raise the quality of your line supervisors
E)plan for the long-term future
Q3) In a short essay, list and discuss four obstacles that managers must deal with in managing the value chain.
Q4) List and summarise six product quality and six service quality dimensions.
Q5) In a short essay, define 'operations management' and discuss the importance of this management process.
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Chapter 12: Organisational Structure and Design
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Sample Questions
Q1) ________ is the obligation to perform assigned activities.
A)Authority
B)Responsibility
C)Chain of command
D)Unity of command
E)Formalisation
Q2) Bringing together the company's legal counsel, research engineer and marketing specialist for a project is an example of a(n)________.
A)empowered team
B)process departmentalisation
C)product departmentalisation
D)cross-functional team
E)continuous improvement team
Q3) In a short essay, explain the concepts of authority, responsibility and unity of command.
Q4) In a short essay, list six factors that influence the amount of centralisation and six factors influence the amount of decentralisation in an organisation.
Q5) In a short essay, explain the concept of a boundaryless organisation.
Q6) In a short essay, discuss the matrix organisational structure.
Page 14
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Chapter 13: Managing Teams
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Sample Questions
Q1) Which of the following is NOT a formal group?
A)business unit alliances
B)command groups
C)task forces
D)cross-functional teams
E)self-managed teams
Q2) Resolving conflicts by placing another's needs and concerns above one's own is termed forcing.
A)True
B)False
Q3) All of the following have a negative effect on productivity and morale of groups EXCEPT ________.
A)authoritarianism
B)self-reliance
C)unconventionality
D)dominance
E)both C and D
Q4) Work teams are groups whose members have diverse skills.
A)True
B)False
Page 15
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Chapter 14: Managing Human Resources
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Sample Questions
Q1) Refer to The Internal Hire (Scenario).After the New Year, Dan schedules a day to travel with each of his sales reps.He presents them with their bonus checks from the preceding year.He confidentially shares with each of them a report that he recently received from top management.This report provides a comparison of regional performance, based upon percentage of quota met, for each quarter and the entire year.Additionally, individual salespeople are compared on a bar graph with their peers within the region and corporate-wide for each quarter and the year.Finally, each employee is ranked on a percentile scale, indicating their relative performance for the year.Dan must provide management with a report offering reasons for poor performance and suggesting corrective actions.This is most representative of which performance evaluation technique?
A)MBO
B)critical incident
C)behavioural anchored rating scales
D)multi-person comparison
E)graphic rating scales
Q2) Teaching an employee to read would be considered a general form of employee training.
A)True
B)False
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Page 16
Chapter 15: Understanding and Managing Individual Behaviour
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Sample Questions
Q1) Shaping behaviour is a managerial tool to guide individual learning in gradual steps.
A)True
B)False
Q2) Organisational behaviour is primarily concerned with group interactions.
A)True
B)False
Q3) Issues including appearance, technology and management style may cause conflicts and resentment for ________.
A)baby boomers
B)Gen X workers
C)Gen Y workers
D)guest workers
E)centurions
Q4) Generation Y workers typically have low expectations of themselves, but high expectations of their employers.
A)True
B)False
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Chapter 16: Managers and Communication
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Sample Questions
Q1) Corporate computer and email systems should be protected against ________ and ________.
A)blogs; wikis
B)employees; managers
C)hackers; spam
D)legal; security problems
E)EDIs; sexually explicit material
Q2) In a short essay, explain two communication challenges that new technology has created.
Q3) Workplace design is an important aspect of organisational communication.
A)True
B)False
Q4) Successful communication can be defined as agreement and acceptance of a message.
A)True
B)False
Q5) In the wheel network, the leader serves as the hub through which all communication passes.
A)True
B)False
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Chapter 17: Motivating Employees
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Sample Questions
Q1) The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than easy goals is termed ________.
A)reinforcement theory
B)path-goal theory
C)self-efficacy
D)equity theory
E)goal-setting theory
Q2) The three key elements in the definition of organisational motivation are energy, ________ and persistence.
A)direction
B)personality
C)tenure
D)need
E)effort
Q3) In a short essay, explain the concept of motivation.Then identify and describe the three key aspects of motivation.
Q4) Equity theory has three referent categories: other, system and self.
A)True
B)False
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Chapter 18: Managers As Leaders
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Sample Questions
Q1) Refer to The Path to Leadership (Scenario).Brooke would like to become a participative leader.She should ________.
A)consult with subordinates and use their suggestions before making a decision
B)be more concerned with tasks
C)let subordinates know what's expected of them, schedule work to be done and give specific guidance as to how to accomplish tasks
D)be friendly and show concern for the needs of subordinates
E)set challenging goals and expect subordinates to perform at their highest level
Q2) In a short essay, discuss the Situational Leadership® theory as developed by Paul Hersey and Ken Blanchard.Next, list and discuss the four specific leadership styles and the four stages of follower readiness as defined by Hersey and Blanchard.
Q3) The most critical component of credibility is ________.
A)authority
B)expertise
C)integrity
D)consistency
E)status
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Page 20