Principles of Management
Exam Answer Key
Course Introduction
Principles of Management introduces students to the fundamental concepts and theories that underpin the effective management of organizations. The course explores essential managerial functions, including planning, organizing, leading, and controlling, and examines how managers apply these principles to achieve organizational goals. Students learn about decision-making processes, motivation, leadership styles, communication, and the ethical and social responsibilities of managers. Through case studies and real-world examples, the course emphasizes the role of management in adapting to a dynamic business environment and developing strategies for organizational success.
Recommended Textbook
Essentials of Management 9th Edition by Andrew
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J. DuBrin
Chapter 1: The Managers Job
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Sample Questions
Q1) According to the historically important work of Alfred D. Chandler, when choosing an organization structure, managers should first
A) study what the competition is doing.
B) be aware of the strategy.
C) draw a hundred boxes to choose from.
D) look for the least expensive structure.
Answer: B
Q2) Making sure that competent persons fill positions is part of which managerial role?
A) organizer
B) liaison
C) staffing coordinator
D) resource allocator
Answer: C
Q3) Conceptual skill is needed to understand how the various parts of the organization fit together.
A)True
B)False
Answer: True
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Chapter 2: International Management and Cultural Diversity
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Sample Questions
Q1) The trade deficit leads to job losses for many American workers and also result in many low-wage service jobs.
A)True
B)False
Answer: True
Q2) Describe how cultural diversity can give a firm a competitive advantage (or help the firm be more profitable.)
Answer: Cultural diversity refers to the mix of cultures and subcultures to which the organization's workforce belongs. Benefits include: a marketing advantage resulting in increased sales and profits, cost reduction, better recruitment of talented people, useful ideas for favorable publicity and advertising, reduction of cultural bloopers and cultural biases, and a creativity advantage.
Q3) The major purpose of the European Union (EU) is to turn member countries into A) countries with the identical currency.
B) a single marketplace for ideas, goods, and services.
C) free trade agreements with the United States.
D) fierce competitors.
Answer: B
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Chapter 3: Ethics and Social Responsibility
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Sample Questions
Q1) An ethically centered manager is more concerned about the completion dates of a project than high quality, because he or she is primarily concerned about customer satisfaction.
A)True
B)False Answer: False
Q2) Whether to use corporate resources for personal use is an ethical dilemma that falls into a gray area for many people.
A)True
B)False Answer: True
Q3) Benefits derived from social responsibility include;
A) enhanced organizational efficiency
B) producing better products
C) attracting people who want to work for the firm
D) both a & c
Answer: D
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Page 5
Chapter 4: Essentials of Planning
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Sample Questions
Q1) Which one of the following strategies should be classified as a business-level strategy?
A) strategic alliances
B) diversification of goods and services
C) product differentiation
D) sticking to core competencies
Q2) The purpose of crowdcasting is to obtain widespread input into the development of business strategy.
A)True
B)False
Q3) A functional strategy for becoming and remaining a successful organization is to A) form a strategic alliance.
B) find and retain competent people.
C) get to market faster than others.
D) export products.
Q4) A recommended procedure for formulating strategy is for top-level managers to A) form a small committee to do most of the work.
B) gather inputs from large numbers of people.
C) perform the task themselves during a retreat.
D) base strategy on fixing customer complaints.
Page 6
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Chapter 5: Problem Solving and Decision Making
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Sample Questions
Q1) Many people are poor decision makers because they procrastinate, or delay taking action without a valid reason.
A)True
B)False
Q2) You know you have a problem when the conditions that exist with respect to a particular situation are much different than what you want.
A)True
B)False
Q3) Describe the role of intuition in decision making.
Q4) A well-accepted method of stimulating creativity is to engage in physical exercise.
A)True
B)False
Q5) The flow experience refers to
A) the ultimate involvement in work
B) a condition of heightened focus, productivity, and happiness.
C) both a & b
D) a design that allows for the flow of ideas, such as common meeting areas.
Q6) Describe what you can do in the next several years to increase your creativity.
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Chapter 6: Quantitative Techniques for Planning and Decision Making
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Sample Questions
Q1) If a manager recalls success stories from global expansion to Singapore, he might overestimate the chances of succeeding in that country. This is an example of the recallability trap. A)True B)False
Q2) A decision tree is a graphic illustration of the alternative solutions available to solve a problem.
A)True B)False
Q3) Under the inventory system, FIFO, you sell A) by shipping directly from one of your suppliers. B) the first goods you obtained last C) the last goods you obtained first. D) the first goods you obtained first.
Q4) The inventory management system called LIFO, refers to selling your oldest inventory first.
A)True B)False
Page 8
Q5) Explain the basics of a just-in-time (JIT) inventory system.
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Chapter 7: Job Design and Work Schedules
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Sample Questions
Q1) Zeke is in charge of stocking shelves in the soft-drink aisle in a supermarket. To apply job enlargement, the store manager might
A) allow Zeke to do market research about soft-drink consumption.
B) schedule Zeke to switch back and forth between stocking the soft-drink and pet-food aisles.
C) give Zeke the additional permanent assignment of also stocking the dry-cereal section.
D) assign Zeke flexible working hours.
Q2) Which one of the following is not a common type of job crafting? Making changes in A) the pay structure of a job.
B) the number and types of job tasks.
C) the interactions with others on the job.
D) one's view of a job.
Q3) An experiment with clerical workers demonstrated that low-intensity noise raised stress levels just enough to give the workers a high and elevate productivity.
A)True
B)False
Q4) Describe telecommuting, along with some of its advantages and disadvantages.
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Page 9
Chapter 8: Organization Structure, Culture, and Change
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Sample Questions
Q1) An effective way for corporate leaders to change the organizational culture is to engage in behavior they would like others to imitate.
A)True
B)False
Q2) The unfreezing phase of the change model involves getting workers to learn new habits.
A)True
B)False
Q3) A recommended technique for gaining support for change is to
A) discuss and negotiate sensitive issues.
B) figure out what to do as one goes along.
C) discourage worker participation in the changes.
D) avoid discussion about financial consequences.
Q4) You know that you are a homesourcing agent when you
A) perform call center duties out of your home.
B) sell products from door to door.
C) organize parties in your home to sell products.
D) work in a large call center responding to problems with consumer products.
Q5) What can a CEO do to bring about change in his or her organization?
Q6) First describe, then draw, a matrix organization structure.
Page 10
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Chapter 9: Staffing and Human Resource Management
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Sample Questions
Q1) A key advantage of delivering training content by MP3 players is that workers can
A) listen to music while being trained.
B) impress customers with how cool they look.
C) design their own training content.
D) receive training during spare moments.
Q2) Describe how a firm can use the organization staffing model.
Q3) A specific way in which human resources contributes to business strategy is by
A) helping to build high-performance work practices.
B) organizing company picnics.
C) making PowerPoint presentations to top management.
D) helping to prepare job descriptions.
Q4) All of the big five personality factors
A) are included in the Americans with Disabilities Act.
B) influence job performance.
C) are part of measuring the person-organization fit.
D) create job problems, if present.
Q5) Developmental needs can be organization-wide as well as individual.
A)True
B)False
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Chapter 10: Leadership
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Sample Questions
Q1) Team members must identify with the leader in order for the leader to exercise ____ power.
A) reward
B) coercive
C) legitimate
D) referent
Q2) Leadership involves skills as well as personal qualities and behaviors.
A)True
B)False
Q3) Leading by values is similar to influencing people through
A) giving them rewards for good deeds.
B) the organization culture.
C) being assertive.
D) exchange of favors.
Q4) According to the Situational Leadership II, a Self-Reliant Achiever has low competence and high commitment.
A)True
B)False
Q5) Describe what a manager must do to become a transformational and charismatic leader.
Page 12
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Chapter 11: Motivation
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Sample Questions
Q1) Group norms are an important influence on worker motivation.
A)True
B)False
Q2) An accurate example of a cross-cultural difference in rewards is that
A) most Asian workers want public recognition.
B) workers from a poor country might prefer a practical reward.
C) Italian workers prefer gift certificates to stores like Wal-Mart.
D) Chinese women who sell beauty products dislike tangible rewards.
Q3) Employee involvement in the form of making suggestions for productivity improvement is a major aspect of gainsharing.
A)True
B)False
Q4) The need for risk taking and thrill seeking
A) almost always has negative consequences for the employer.
B) is ill-suited for the high technology era.
C) can find constructive outlets on the job.
D) lies close to the bottom of the need hierarchy.
Q5) Explain how goal theory can be used to motivate people on the job.
Q6) Explain the need-satisfaction approach to motivation.
Page 13
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Chapter 12: Communication
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Sample Questions
Q1) Explain what managers can do to control negative politics within the organization.
Q2) The purpose of an informative confrontation is to confront the A) lack of feedback in a message.
B) discrepancies in a person's message.
C) difference in tone between an oral and a written message.
D) reality that filtering of messages is commonplace.
Q3) Which one of the following is not recommended as a way of having more productive meetings?
A) Ensure that all follow-up action is assigned and recorded.
B) Encourage critical feedback and commentary.
C) Resolve as many small issues as possible at the meeting.
D) Strive for wide participation.
Q4) Company blogs are used to communicate
A) both upwards and downwards.
B) upwards only.
C) downwards only.
D) sideways only.
Q5) Identify and describe seven communication barriers in the workplace.
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Chapter 13: Teams, Groups, and Teamwork
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Sample Questions
Q1) An employee is likely to be assigned to a project team longer than on a departmental assignment.
A)True
B)False
Q2) The shakedown period of group development is referred to as the ____ stage.
A) forming
B) storming
C) norming
D) performing
Q3) Describe what actions a team leader might take to resolve conflict within the team.
Q4) The forcing, or competitive, style of conflict resolution is based on the desire to win one's own concerns at the expense of the other party, or to dominate.
A)True
B)False
Q5) When a group deals with creative tasks, it is best to have a homogeneous group. A)True
B)False
Q6) What factors contribute to team effectiveness?
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Chapter 14: Information Technology and E-Commerce
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Sample Questions
Q1) A computer goof-off is an individual who illegally breaks into the company computer system and then destroys valuable data.
A)True
B)False
Q2) Describe how information technology, including E-commerce, had negative consequences for managers.
Q3) The difference between "bricks and clicks" refers to the difference between the old economy and the new economy.
A)True
B)False
Q4) An effective call center for an E-business
A) allows customers to use e-mail and the telephone at the same time.
B) limits calls to normal working hours.
C) virtually eliminates telephone contact with customers.
D) allows customers to follow up by telephone.
Q5) A manager provides e-leadership when he or she takes the group to lunch at an Internet café.
A)True
B)False
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Chapter 15: Essentials of Control
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Sample Questions
Q1) Used sensibly, controls enhance organizational and individual effectiveness.
A)True
B)False
Q2) Which of the following is a recommended technique for preparing a sensible budget?
A) Budget liberally for income, and conservatively for expenses.
B) Budget conservatively for income and liberally for expenses.
C) Do not allow for wiggle room.
D) Go light in terms of basing budgets on historical information.
Q3) The financial measure of net debt evaluates how much a company owes after taking into account
A) the effects of inflation on debt.
B) money on hand that could be used to eliminate debt.
C) the amount of debt that could be refinanced.
D) how much debt could be eliminated by declaring bankruptcy.
Q4) Information systems are widely used for computer-aided monitoring of work.
A)True
B)False
Q5) Describe the characteristics of an effective control system.
Q6) Describe the use of cash flow to measure the financial health of a firm.
Page 17
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Chapter 16: Managing Ineffective Performers
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Sample Questions
Q1) The passive-aggressive worker will typically express anger by A) doing nothing when action should be taken.
B) complaining frequently to the supervisor and co-workers.
C) verbal abuse.
D) physical abuse.
Q2) Penalizing employees for not achieving performance standards without first carefully communicating those standards is unfair.
A)True
B)False
Q3) To do a more effective job of firing an employee, it is recommended that the manager
A) base the firing on second-hand information.
B) be indirect in language to keep the employee off-guard.
C) not conduct the termination session while angry.
D) use e-mail instead of personal contact to avoid dealing with anger.
Q4) A recommended confrontation technique is for the manager to A) communicate care and concern.
B) threaten the worker's job security.
C) make two nice comments for every negative one.
D) appear angry and worried.
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Chapter 17: Enhancing Personal Productivity and Managing Stress
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Sample Questions
Q1) Improving one's work habits is an effective strategy for getting job stress under control.
A)True
B)False
Q2) To reduce procrastination,
A) calculate the cost of procrastination.
B) reward yourself for achieving milestones.
C) engage in multi-tasking
D) both a & b
Q3) A big part of the productivity advantage offered by meditation is that it helps you
A) fantasize about reaching your career goals.
B) concentrate and focus.
C) obtain an objective viewpoint on your problems.
D) prioritize the tasks facing you.
Q4) Another way to improve productivity is to organize your work so you are not constantly shifting between creative and routine tasks.
A)True
B)False
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Q5) What steps or actions should a person take to reduce his or her procrastination?