Fundamentals of Management Practice Questions
Course Introduction
Fundamentals of Management introduces students to the essential concepts, principles, and functions that form the backbone of effective management in organizations. Topics include planning, organizing, leading, and controlling, with an emphasis on decision-making processes, strategic thinking, organizational structure, leadership styles, and communication. Students will explore real-world case studies and practical applications to understand how managers address challenges in dynamic business environments and contribute to organizational success. This course provides foundational knowledge for those aspiring to leadership roles or further study in business and management fields.
Recommended Textbook
Modern Management Concepts and Skills 14th Edition by Samuel C. Certo
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Page 2
Chapter 1: Principles of Modern Management: Concepts and Skills
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Sample Questions
Q1) When the principles of management apply to all types of organizations and organizational levels, the principles are said to be ________.
A) practical
B) worthwhile
C) usable
D) universal
E) important
Answer: D
Q2) According to Robert Katz, human skills are required for ________.
A) designing work processes and procedures
B) understanding how the organization relates to its environment
C) understanding how changes in one part of the organization affect the rest of it
D) applying specialized knowledge and expertise to work-related techniques
E) working with individual and group interests
Answer: E
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Page 3
Chapter 2: Managers, Society, and Sustainability
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Sample Questions
Q1) A whistle-blower is ________.
A) the employee who reports the alleged activities of the firm
B) the customer who files a product liability suit against the firm
C) the business lawyer who protects the firm against lawsuits
D) the employee who performs the unethical or illegal activity in the firm
E) the manager who protects the employee who reports the alleged activities of the firm
Answer: A
Q2) Which of the following areas does an organization focus on when it maintains the wellbeing and protection of the communities in which it does business?
A) the economy
B) the customer
C) the environment
D) the government
E) the society
Answer: E
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Chapter 3: Management and Diversity
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Sample Questions
Q1) Eli International has just begun a recruitment drive in colleges. Hoping to increase the cultural diversity within the organization, recruiters are focusing on candidates from a number of minority communities. The organization firmly believes that different cultural viewpoints can contribute to innovation and customer insights. The company must hold training sessions with existing employees to help them welcome and understand their new colleagues. Which of the following approaches will best help the company achieve all its goals?
A) assimilation approach
B) "golden rule" approach
C) multicultural approach
D) righting-the-wrongs approach
E) culture-specific approach
Answer: C
Q2) Managers who have progressed to Donaldson's "conscious incompetence" stage learn how to interact with diverse groups and cultures by deliberately thinking about how to behave.
A)True
B)False
Answer: False
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Chapter 4: Managing in the Global Arena
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Sample Questions
Q1) In Jonovia, employees do not like to be in a situation they know nothing about. They like to be informed about every situation they are likely to face. It can be deduced that Jonovia is a society that has ________.
A) feminine values
B) long-term orientation
C) low power distance
D) high uncertainty avoidance
E) high individualism
Q2) A country in which an investment is made by a foreign company is termed as a(n)
A) host country
B) parent country
C) home country
D) expatriate country
E) native country
Q3) How can companies and management work to better prepare expatriates for their assignments?
Q4) According to Hofstede, what are the five basic dimensions of culture?
Q5) Discuss the three types of organizational members found in multinational corporations.
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Chapter 5: Plans and Planning Tools
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Sample Questions
Q1) An organization's plans fail when ________.
A) corporate planning is not integrated into the total management system
B) the plans developed need considerable effort to be realized
C) responsibility for planning is vested in the planning department, as well as other departments
D) financial projections and planning are not integrated
E) too little is attempted at once in starting formal planning
Q2) According to Drucker, which of the following statements is an example of an organizational objective related to productivity?
A) to reduce overall inventory management costs by 15 percent
B) to increase the use of environmentally friendly workplace practices
C) to lower the rate of attrition in the organization within the next 6 months
D) to increase the unit's monthly output by 10 percent within the next 12 months
E) to reduce total overhead costs by 5 percent by the end of the year
Q3) ________ is the key to a successful planning process.
A) Classification
B) Repetition
C) Implementation
D) Evaluation
E) Standardization
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Chapter 6: Making Decisions
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Sample Questions
Q1) ________ refers to the departure from rational theory that produces suboptimal decisions.
A) Uncertainty
B) Satisficing
C) Dogmatism
D) Bias
E) Bounded rationality
Q2) Jack works at an advertising agency and leads a team of 8 graphic designers. Whenever he has to make a decision, he does so by himself and rarely asks his team members for their suggestions or inputs. Which of the following orientations does Jack have?
A) ideal
B) exploitative
C) receptive
D) hoarding
E) marketing-oriented
Q3) Which group decision making process should managers use if they have observed their individual employees are less likely to offer input when working in a group of peers?
Q4) Discuss briefly the steps in the decision-making process.
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Chapter 7: Strategic Planning: Strategies, Tactics, and Competitive Dynamics
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Sample Questions
Q1) ________ is the strategy through which management attempts to strengthen or protect the amount of business an SBU is generating.
A) Differentiation
B) Divestiture
C) Retrenchment
D) Growth
E) Focus
Q2) One of the SBUs under the Retro Group of companies is not generating a satisfactory amount of business. Extensive analysis shows that the company is losing its market share because its competitors have more sustainable processes. Analysts also feel that the growth prospects in this industry are extremely limited. Which of the following organizational strategies should the company adopt?
A) focus
B) stability
C) retrenchment
D) growth
E) divestiture
Q3) What is a SWOT analysis and what benefit does conducting this analysis offer to managers?
Page 9
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Chapter 8: Fundamentals of Organizing
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Sample Questions
Q1) While the positioning of ________ in an organization chart depicts working relationships, the ________ on the chart depict formal lines of communication between individuals.
A) lines; boxes
B) symbols; drawings
C) boxes; symbols
D) boxes; lines
E) graphic; lines
Q2) Organization structure is represented primarily by means of a graphic illustration called a(n) ________.
A) semantic network
B) executive dashboard
C) directed graph
D) organization chart
E) critical path
Q3) In general, the closer the subordinates are in location to each other, the more of them managers can supervise effectively.
A)True
B)False
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Page 10
Chapter 9: Responsibility, Authority, and Delegation
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Sample Questions
Q1) Which of the following is the first step in the delegation process?
A) assigning specific duties to the individual
B) giving the subordinate the right and power to accomplish assigned duties
C) creating the obligation for the subordinate to perform the assigned duties
D) collecting feedback from the subordinate
E) training employees to complete tasks efficiently
Q2) Explain the concepts of line, staff, and functional authority.
Q3) Jerry Jones, the owner of an American football team, had the final say over all personnel decisions, regardless of the views of other individuals in the team. Therefore, the football team is ________.
A) centralized
B) functionally organized
C) decentralized
D) flat
E) motivated
Q4) What factors should managers take into consideration when choosing whether they should use centralization or decentralization decision making practices?
Q5) Differentiate between responsibility, accountability, and authority.
Q6) Describe the functional similarity method of dividing job activities.
Page 11
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Chapter 10: Human Resource Management
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Sample Questions
Q1) ________ attempt to describe an individual's personality dimension in such areas as emotional maturity, subjectivity, honesty, and objectivity.
A) Aptitude-interest tests
B) Vocational interest tests
C) Intelligence tests
D) Personality tests
E) Functional interest tests
Q2) Which of the following characteristics can be attributed to classroom training techniques in contrast to lectures?
A) lack of opportunity for attitudinal or behavioral change in trainees
B) learning through listening and note-taking
C) maximum amount of information transmission to trainees in limited amount of time
D) inability to handle wide diversity of ability, attitude, and interest among trainees
E) high levels of discussion and interaction among trainees
Q3) Discuss the need for recruiters to know their source of human resources.
Q4) What is performance appraisal? What are the different methods used to conduct performance appraisals?
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12
Chapter 11: Organizational Change: Stress, Conflict and Virtuality
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Sample Questions
Q1) Changes made in the organization with an aim to improve individual satisfaction are not justified.
A)True
B)False
Q2) Hellriegel and Slocum's model shows the relative importance of ________ to organizational survival.
A) external and internal environments
B) change and stability
C) innovation and conservativeness
D) trust and vigilance
E) change and risk taking ability
Q3) A structural change ________.
A) works by changing controls that influence organization members
B) ensures appropriate functioning of technology
C) develops the skills of the people
D) increases the division of labor
E) makes the change appealing to employees
Q4) Briefly explain the dynamics of organizational change and stability.
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Q5) What is the value Virtuality offers to organizations and the employees within them?
Chapter 12: Influencing and Communication
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Sample Questions
Q1) Organizational communication that follows the lines of the organization chart is called ________.
A) connective communication
B) ceremonial communication
C) formal organizational communication
D) nonverbal communication
E) collaborative organizational communication
Q2) Which of the following is one of the primary managing activities?
A) building corporate culture
B) reducing conflicts
C) eliminating workplace stress
D) creating norms
E) maintaining work-life balance
Q3) What is one of the weaknesses of a serial transmission?
A) The information conveyed is highly accurate.
B) It is potentially inaccurate.
C) It does not influence morale.
D) It doesn't affect efficiency.
E) The presence of a leader is highly evident.
Q4) What is the importance of lateral communication in an organization?
Page 14
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Chapter 13: Leadership
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Sample Questions
Q1) ________ leadership, focuses on blending the leader's personal humility with an intense will to build long range organizational success.
A) Servant
B) Level 5
C) Humility
D) Ministerial
E) Authentic
Q2) A permissive, passive, and considerate leadership is most appropriate if the leadership situation is characterized by ________.
A) good member relations, weak task structure, and weak leader position power
B) good member relations, weak task structure, and strong leader position power
C) moderately poor member relations, weak task structure, and weak leader position power
D) good member relations, high task structure, and weak leader position power
E) good member relations, high task structure, and strong leader position power
Q3) Explain the major findings of the OSU studies.
Q4) Compare and contrast the life cycle theory of leadership with Fiedler's model.
Q5) 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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Q1) Theory X is a set of essentially positive assumptions about human nature.
A)True
B)False
Q2) In Alderfer's ERG theory, the need for satisfying interpersonal relationships is the
A) esteem need
B) existence need
C) growth need
D) emotional need
E) relatedness need
Q3) Many perceive the Equity Theory as a dangerous theory and one that management absolutely must understand. What is the theory's guiding premise and why is it that management needs to be very focused on the principles of this motivation theory?
Q4) List the process theories of motivation.
Q5) What is flextime? What are the advantages and disadvantages of using flextime?
Q6) Most job rotation programs are ineffective as motivation strategies as people become bored with all the jobs they are rotated into.
A)True
B)False
Page 16
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Chapter 15: Groups and Teams
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Sample Questions
Q1) ________ comes naturally as the mutual acceptance of group members increases and communication and decision making continue within the group.
A) Conformance threat
B) Group polarization
C) Groupthink
D) Cognitive dissonance
E) Group solidarity
Q2) Define a committee. List the four major reasons for establishing committees within an organization.
Q3) A type of formal group made up of organizational members who interact with one another to accomplish nonroutine tasks for the organization is a/an ________ group.
A) organization
B) human
C) work
D) command
E) task
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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Sample Questions
Q1) Management can ensure that employees choose the desired ethical behavior in every situation by providing ethical training.
A)True
B)False
Q2) ________ is not established at once by a manager, but evolves slowly over time.
A) Corporate governance
B) Organizational ecology
C) Organizational space
D) Corporate behavior
E) Organization culture
Q3) 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
Q4) Provide a brief description of organization culture.
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Chapter 17: Controlling, Information, and Technology
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Sample Questions
Q1) The total power a manager possesses is made up of two different kinds of power:
A) recognizing symptoms and problems
B) social power and reward power
C) authority and accountability
D) position power and personal power
E) ownership power and skill power
Q2) Identify the methods by which managers can make controlling a successful activity.
Q3) ________ sets the goals for the firm, while ________ monitors progress towards the accomplishment of the goals.
A) Controlling; planning
B) Planning; leading
C) Planning; controlling
D) Influencing; controlling
E) Planning; influencing
Q4) Explain the ways an individual can be successful in increasing his or her personal power.
Q5) Describe the six steps necessary to effectively operate an IS.
Q6) Outline the steps involved in the controlling process.
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Chapter 18: Production and Control
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Q1) ________ is a control technique that allows only significant deviations between planned and actual performance to be brought to a manager's attention.
A) Management by exception
B) Disaster management
C) Contingency planning
D) Process control
E) Management by objectives
Q2) Explain the concept of a layout strategy and discuss the various types of layouts.
Q3) Which of the following is the best example of a control technique management could use to identify any problems or issues that may need to be addressed during their firm's operations and production stages?
A) quality inspections
B) value statements
C) labor force planning
D) capacity planning
E) layout strategies
Q4) Briefly describe JIT inventory control.
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) In terms of management system, the cheese used in the making of a sandwich at a restaurant is a(n) ________.
A) finished good
B) organizational output
C) production process
D) organizational process
E) organizational input
Q2) What are the steps involved in using the scientific method?
Q3) Lower-level management analysis concentrates on the "one best way" to perform a task. The process of finding this "one best way" is known as ________.
A) higher-level management
B) contingency management
C) comprehensive management
D) scientific management
E) system management
Q4) Taylor pioneered a system in which workers could earn a bonus in addition to the piece rate if they exceeded their daily production quota.
A)True
B)False
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Chapter 20: Management and Entrepreneurship: Handling
Start-Ups and New Ventures
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Q1) How do large social networks affect entrepreneurs?
A) Social networks do not affect entrepreneurs.
B) Social networks do not improve the performance of social entrepreneurs.
C) Social networks can help identify potential employees and volunteers.
D) Social networks provide no sources of capital.
E) Social networks have access to commercial entrepreneurs.
Q2) Opportunities may sometimes arise from the discovery of new geographical markets in which new customers will value the new product or service.
A)True
B)False
Q3) ________ refers to the basic longstanding needs of society and has little to do with profits.
A) Commercial value
B) Social value
C) Economic value
D) Psychological value
E) International value
Q4) Explain feasibility analysis.
Q5) Define social entrepreneurship.
Q6) Who is an entrepreneur?
Page 22
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Page 23
Chapter 21: Encouraging Creativity and Innovation
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Q1) Successful TQM efforts typically result in ________.
A) diverse work groups
B) retention of creative employees
C) enriched innovation
D) improved technology ideas
E) lower product liability costs
Q2) Which of the following statements best corresponds to the inventing 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.
Q3) What is the "innovation process"? Briefly describe the different steps involved in the innovation process.
Q4) What are the steps involved in the incremental improvement process?
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