Fundamentals of Management Test Questions
Course Introduction
Fundamentals of Management provides an introduction to the essential principles, concepts, and functions of management within organizations. Students will explore the roles and responsibilities of managers, examine various management theories, and understand the processes of planning, organizing, leading, and controlling. The course covers topics such as decision-making, communication, motivation, team dynamics, and organizational structure, equipping students with foundational skills needed to effectively manage people and resources in a dynamic business environment.
Recommended Textbook Management 3rd Edition by Michael A. Hitt
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2
Chapter 1: The Nature of Management
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Sample Questions
Q1) Why must managers have an entrepreneurial mind-set?
Answer: An entrepreneurial mind-set allows managers to search for new opportunities in the current marketplace or identify ideas that could create new markets,to be committed to continuous learning,as well as to identify new opportunities and to exploiting them.
Entrepreneurial activity is not limited to new,small firms,however.Managers in large firms also must be entrepreneurial and strive to create new businesses.Developing new businesses requires that the lead person,and perhaps others,take entrepreneurial actions.Given the amount of change and innovation encountered in most industries and countries,businesses cannot survive without being entrepreneurial.
Q2) Frederick Taylor,who is credited to be the "father of modern management," believed that employees are primarily motivated by pay.
A)True
B)False
Answer: False
Q3) Controlling is important but not a necessary managerial function.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Social Responsibility and Managerial Ethics
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Q1) Having to make a choice between two competing but arguably valid options is known as an ethical dilemma.
A)True
B)False
Answer: True
Q2) Define ethical dilemmas and ethical lapses.
Answer: Ethical dilemmas involve decisions between two competing but arguably valid options; ethical lapses are decisions that are contrary to an individual's stated beliefs and policies of the company.It is important to keep in mind that the workforce is becoming increasingly diverse.As a result,now more than ever before,you are likely to encounter people who respond to ethical dilemmas differently.Ethical lapses are more common than you might think.The pressures emanating from both the external environment and internal company environment often can be overwhelming.This is especially true if managers lack a systematized way of thinking through dilemmas.
Q3) According to the concept of distributive justice,all employees should receive equal rewards and punishments.
A)True
B)False
Answer: False
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Page 4
Chapter 3: International Management and Globalization
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Sample Questions
Q1) A ________ is a set of cognitive attributes that allows an individual to influence individuals,groups,and organizations from diverse sociocultural and institutional environments.
A) winning attitude
B) global mind-set
C) facile imagination
D) charismatic personality
Answer: B
Q2) Which of the following is NOT a characteristic of geographically dispersed multicultural teams?
A) Mutual trust is unimportant.
B) They often lack traditional supervision.
C) They must work more autonomously.
D) Coordination between team members is challenging.
Answer: A
Q3) Societal culture can dramatically influence how people observe and interpret the business world around them.
A)True
B)False
Answer: True
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Chapter 4: Strategic Management
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Sample Questions
Q1) In the value chain,________ facilitate the creation of the product or service and its transfer to the customer.
A) primary activities
B) tertiary activities
C) support activities
D) procurement activities
Q2) Managers need to focus on two basic dimensions of the technology environment: product and process changes.
A)True
B)False
Q3) Which of the following is true about cost leadership strategy?
A) In this strategy, firms seek to make their product or service different from those of competitors.
B) The key to this strategy is to add value at a cost that produces a superior margin.
C) Firms using this strategy charge slightly higher than industry-average prices.
D) One of the ways of achieving cost leadership is by using special technology.
Q4) What are product and process technological changes?
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Chapter 5: Planning
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Sample Questions
Q1) Strategic plans often have longer time frames and are broader in scope than tactical plans.
A)True
B)False
Q2) What strategic plans are evident in this scenario?
Q3) The greater the environmental uncertainty,the more important it is for managers to stick to their original plan.
A)True
B)False
Q4) Goals that are measured,specific,and realistic,and to which people are committed,need to be free from time restraints in order to be effective.
A)True
B)False
Q5) Zero-based budgeting assumes that all funding allocations must be justified from zero each year.
A)True
B)False
Q6) What critical factors will Mr.Colfax need to monitor during the implementation of his plan?
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Chapter 6: Organizational Structure and Design
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Sample Questions
Q1) SLPL Limited adheres to a strategy that allows managers to focus on core competencies or the activities that are most likely to yield competitive advantage.In doing so,SLPL outsources most of the activities in its value chain to other companies,retaining just a few elements.From the above example,it can be concluded that SLPL has a ________ structure.
A) high-networked
B) divisional
C) matrix
D) global product
Q2) Over the past 30 years,significant advancements have been made in technology,R&D,and applications relating to the IT industry.This factor can be attributed to ________ contributing to the overall uncertainty of the environment in the IT industry.
A) advanced formalization
B) the network structure
C) informalization
D) environmental dynamism
Q3) As a rule,formal organizations are highly centralized.
A)True
B)False
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Chapter 7: Managing Diverse Human Resources
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Q1) Compare structured and unstructured interviews and explain which type generates more valid results.
Q2) Orangetree tries to help employees maintain a work-life balance by providing flexible job arrangements.For instance,Alison works only on Mondays,Wednesdays,and Fridays,while Joan fills the same role on Tuesdays,Thursdays,and Saturdays.Both find the arrangement convenient,while the company gets the advantage of two workers for little more than the price of one.This arrangement is known as ________.
A) job swapping
B) job exchange
C) job rotation
D) job sharing
Q3) A(n)________ is a statement that describes the skills,experience,and education that a candidate should have to perform the job.
A) job rotation
B) job analysis
C) job specification
D) job assessment
Q4) Explain 360-degree feedback.
Q5) How might a work sample validate the selection process in this scenario?
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Chapter 8: Leadership
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Q1) Briefly explain the path-goal theory of leadership.
Q2) Charismatic leaders typically engage in impression management.
A)True
B)False
Q3) Compare and contrast leading and managing.
Q4) A manager is using his reward power when he withholds a desired prize for an employee.
A)True
B)False
Q5) Which of the following is a valid observation about organizational leadership?
A) Designation of a leadership position is essential to exhibit leadership behaviors.
B) Leadership expectations are at the same level for all categories of employees.
C) Anyone in an organization can exhibit leadership behaviors.
D) Use of coercion is an approach used by effective leaders to handle critical situations
Q6) Compare and contrast emotional intelligence and social intelligence.
Q7) Explain any three types of influence tactics that managers can use to influence employees.
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Chapter 9: Motivation
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Sample Questions
Q1) The basic components of ________ are effort,performance,and outcomes.
A) equity theory
B) goal-setting theory
C) expectancy theory
D) social cognitive theory
Q2) In Maslow's need hierarchy,the ________ need relates to an individual's need to be personally fulfilled and to develop one's unique talents to their highest possible levels.
A) esteem
B) social
C) safety
D) self-actualization
Q3) According to Frederick Herzberg,________ are elements associated with conditions surrounding the job and are not directly related to the doing of a job.
A) hygiene factors
B) motivators
C) economic factors
D) environmental factors
Q4) What are "push" forces of motivation? What are "pull" forces?
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11
Chapter 10: Groups and Teams
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Sample Questions
Q1) Which of the following is a significant indicator of group effectiveness?
A) Group members have no conflicts among themselves.
B) Group members gain satisfaction from being members of the group.
C) Group members have the same backgrounds and skills.
D) Group members are well compensated in financial returns.
Q2) Which of the following is an example of a command group?
A) Stan is on the safety committee at D&R.
B) Starcraft Services is shifting to a new office and asks for volunteers to conceptualize and design the place.
C) Ed is a supervisor for a brick-laying team at a construction site.
D) Bree and her friends from various departments get together to plan a movie night once a month.
Q3) When a group's size increases,the sense of personal responsibility for its output or performance on the part of each individual member tends to decrease.This phenomenon is known as ________.
A) social loafing
B) social conformity
C) group cohesion
D) group conflict
Q4) Define cohesion.What factors may help create group cohesion?
Page 12
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Chapter 11: Communication and Negotiation
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Sample Questions
Q1) Which of the following statements is true of formal communication channels?
A) Formal communication channels tend to operate more laterally than vertically compared to informal communication channels.
B) Formal communication channels define who has responsibility for information dissemination and indicate the proper recipients of work-related information.
C) Formal communication channels facilitate faster movement of information as people are highly motivated to pass information on.
D) Formal communication channels are designed to carry both work-related and nonwork information that can be easily regulated by the organization.
Q2) ________ refers to the interference with the transmission or decoding of a message.
A) Negative feedback
B) Medium
C) Positive feedback
D) Noise
Q3) Assuming that the e-mail message did involve a major strategic change,comment on the communication medium chosen by Kevin's boss.
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Chapter 12: Individual and Group Decision Making
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Q1) Which of the following represents the earliest attempt to model decision-making processes?
A) the retrospective decision model
B) the bounded rationality model
C) the rational model
D) the administrative model
Q2) Which of the following statements is true about nonprogrammed decisions?
A) These decisions are made when the nature of the problem is well-defined.
B) Lower-level managers typically encounter these decisions.
C) These decisions are usually made through structured, bureaucratic techniques.
D) Past decisions are of little help while making these decisions.
Q3) The Delphi technique is used to improve problem formulation.
A)True
B)False
Q4) Groups suffering from groupthink assume that individuals who remain silent agree with them.This symptom of groupthink is known as ________.
A) illusion of invulnerability
B) illusion of unanimity
C) illusion of morality
D) self-censorship
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Chapter 13: Operations Management
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Q1) The PERT/CPM technique requires the project manager to determine ________.
A) the most economical quantity of products to order
B) which activities must precede others and which must follow
C) timely delivery of a product or service and related inputs
D) how to minimize total inventory costs
Q2) Scott Refinery,based in Washington,processes approximately three hundred thousand barrels of crude oil a day.Which production process does it follow?
A) job shops
B) continuous flow production
C) small batch processes
D) assembly-line processes
Q3) In today's business world,most companies plan on carrying excess inventory in order to meet unexpected upswings in consumer demand.
A)True
B)False
Q4) Capacity planning involves determining how much of a product or service a firm should be able to produce.
A)True
B)False
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Chapter 14: Control
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Q1) ________ is a type of operational control that evaluates the conversion of inputs to outputs while it is happening.
A) Precontrol
B) Postcontrol
C) Concurrent control
D) Strategic control
Q2) Within the context of organizations,control involves ________.
A) arranging the organization's workforce in some sequence
B) tracking flow of transactions across different organizational departments
C) regulating activities and behaviors to accomplish specific organizational objectives
D) grouping of tasks into different organizational departments
Q3) A budget is designed to influence behavior so that forecasts or plans for expenditures and revenues can be achieved.
A)True
B)False
Q4) Identify a challenge of formulating strategic controls.
Q5) What is control within the context of organizations?
Q6) Explain how human resources work as a tactical control system.
Q7) Distinguish between return on investment and break-even point.
Page 16
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Chapter 15: Organizational Change and Development
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Q1) Which of the following is true of learning organizations?
A) They use the benchmarking technique to learn more.
B) They do not consider past failures as learning opportunities.
C) They rely on assumptions and intuitive guesswork to solve problems.
D) They use tried and tested methods to solve their problems.
Q2) When the economy weakens,most companies consider adding new services or products.
A)True
B)False
Q3) Within the context of organizational change,which of the following practices focus on shared values and culture?
A) replacing batching with continuous-flow manufacturing
B) encouraging cooperation through a cross-training program
C) changing from a niche market to a general market approach
D) instituting participatory decision making throughout the organization
Q4) Changing the structural makeup of organizations is sometimes one of the least valuable tools managers have to create other desired changes.
A)True
B)False
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