Principles of Management Exam Solutions
Course Introduction
Principles of Management introduces students to the foundational concepts and practices that guide organizations in achieving their objectives. The course explores core management functions, including planning, organizing, leading, and controlling, while emphasizing decision-making, effective communication, and the role of managers in dynamic environments. Students will analyze business case studies, examine the ethical and global challenges faced by organizations, and develop practical skills essential for team leadership and organizational success.
Recommended Textbook
HR3 3rd Edition by Angelo DeNisi
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14 Chapters
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Chapter 1: The Nature of Human Resource Management
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Sample Questions
Q1) Theory X and Theory Y were principles developed by Elton Mayo.
A)True
B)False
Answer: False
Q2) Refer to Scenario 1.1.The management decides to lighten the responsibilities of the HR department by hiring an external agency to manage the legal affairs of the company.Which of the following concepts does this decision illustrate?
A) Utility analysis
B) Corporate social responsibility
C) Job analysis
D) Scientific management
E) Outsourcing
Answer: E
Q3) The _____ is the field's largest professional human resources association.
A) Human Resource Professionals' Association
B) National Labor Relations Board
C) National Human Resource Management Association
D) Society for Human Resource Management
E) Human Resource Certification Institute
Answer: D
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Chapter 2: The Legal Environment
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Q1) The Civil RightsAct of 1991 was passed as a direct amendment of Title VIIof the Civil Rights Act of 1964.
A)True
B)False
Answer: True
Q2) The _____ is given the power to apply the Occupational Safety and Health Act standards and enforce its provisions.
A) Department of Justice
B) Office of Federal ContractCompliance Procedures
C) Department of Labor
D) Equal EmploymentOpportunity Commission
E) Department of Health
Answer: C
Q3) A bona fide occupationalqualification (BFOQ)exception must be supported with a justified position of business necessity.
A)True
B)False
Answer: True
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Chapter 3: The Global Environment
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Q1) Refer to Scenario 3.1.Which aspect of culture will most likely affect Mini-PC's human resource activities at the corporate level because of differences between its U.S.and Swedish business units?
A) Language
B) Religious differences
C) Gender roles
D) Personal norms
E) Differences in views on child labor
Answer: D
Q2) What is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market?
A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance
Answer: B
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Chapter 4: The Competitive Environment
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Q1) Raibo Electric Inc.owns and operates a number of different businesses ranging from fast moving consumer goods to automobiles.As part of its strategy, it adds a wide variety of products to their already existing product lines.This is primarily an example of a _____ strategy.
A) diversification
B) business
C) functional
D) cost leadership
E) differentiation
Q2) In the context of the adaptation model, which of the following strategic alternatives isseen as a strategic failure and is not held upas a model that any firm should emulate?
A) Defender
B) Prospector
C) Analyzer
D) Differentiation
E) Reactor
Q3) Describe the factors that affect human resource strategy formulation.
Q4) Why is an organization's culture an important link to its human resource management?
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Chapter 5: Information for Making Human Resource Decisions
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Q1) Explain the concept of knowledge, skills, and abilities (KSAs).
Q2) The Fleishman job-analysis system of conducting work assessments involves:
A) defining abilities as the enduring attributes of individuals that account for differences in performance.
B) subject matter experts generating a list of tasks and job incumbents evaluating each task on several dimensions that are specifically important to an organization.
C) job analysts analyzing a job in terms of involvement with people, data, and things.
D) employees completing a questionnaire reflecting work behavior, working conditions, and job characteristics.
E) supervisors generating examples of effective and ineffective performance of employees.
Q3) Which of the following is true of market wage rates?
A) They remain the same across various regions in a country.
B) They change according to the demand and supply of labor.
C) They remain consistent over time.
D) They are uninfluenced by the local unemployment rates.
E) They are independent of the different levels of competitiveness for talent.
Q4) Summarize the legal issues in job analysis.
Page 7
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Chapter 6: Human Resource Decision Making in Organizations
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Q1) Caroline, a senior analyst at Radan Corp., has a physically challenged child who studies in a special school near her office.Though she is unhappy with her current job and is offered another job with a better pay scale in another state, she does not want to quit her current job as she gets a lot of time to take care of her child.This is an example of _____.
A) forceful retention
B) voluntary turnover
C) normative commitment
D) job enrichment
E) job embeddedness
Q2) An advantage of retaining effective employees is that:
A) they master the skill of using conventional methods at work.
B) they help in fostering representativeness at workplace.
C) they exhibit high flexibility and work round the clock.
D) they help in avoiding expenses involved in replacing them.
E) they exhibit high levels of ethicality in their work.
Q3) What are organizational citizenship behaviors? Give at least three specific examples of employee actions that are organizational citizenship behaviors.What can the organization do to increase these behaviors?
Page 8
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Chapter 7: Recruiting, Selecting, Training, and Developing Employees
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Q1) _____ applies to all employment decisions, but this legislation is the most critical forselection decisions.
A) Vestibule training
B) Utility analysis
C) TheCivil Rights Act
D) TheSocial Security Act
E) The in-basket exercise
Q2) Judd, a human resource manager, is asked to select a pool of qualified applicants from which his employer can choose the best suitable candidate.Judd is involved in which of the following activities?
A) Alternative work arrangements
B) Recruitment
C) Selection
D) Planning
E) Scheduling
Q3) Research indicates that unstructured interviews are the best predictors of subsequent job performance thanstructured interviews.
A)True
B)False
Page 9
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Chapter 8: Managing a New and Diverse Workforce
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Q1) Charles, a manager in a multinational company, leads a team with people from various countries.Although he does not like certain behaviors shown by these people, he accepts them as fundamental cultural differences between him and the members of his team.Therefore, Charles is dealing with diversity in his team by means of _____.
A) pluralism
B) integration
C) empathy
D) tolerance
E) altruism
Q2) The systems flexibility argument for diversitysuggests that diverse organizations are better able to face competition because they will:
A) be better able to understand different market segments.
B) be characterized by multiple perspectives and ways of thinking.
C) be better equipped to respond to changes in its environment.
D) become known among women and minorities as good places to work.
E) have higher levels of productivity and lower levels of turnover and absenteeism.
Q3) Explain the contemporary perspective on workforce diversity with an example.
Q4) What are the fundamental similarities and differences among people at work?
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Page 10
Chapter 9: Compensation & Benefits
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Q1) Which of the following is true of executive compensation?
A) Incentives for executives are normally in the form of bonuses that can exceed their base pay by some multiple.
B) The selection and appraisal of top executives can be accomplished using the same methods as used for other employees.
C) The share in the profits of corporations received by executives is based on the number of years they spend in their organizations.
D) Bonuses are mostly dependent on theperceived performance of an executive.
E) Most senior executives receive their compensation only in the form of a base pay.
Q2) Which of the following is the first step in the factor-comparison method for job evaluation?
A) The comparison factors to be used are selected anddefined.
B) Benchmark or key jobs in the organization are identified.
C) A job-comparison chart is developed to display thebenchmark jobs and the monetary values that each jobreceived for each factor.
D) The benchmark jobs chosen for evaluation are grouped into grades.
E) Jobs are ranked at a level of importance to organizations.
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Chapter 10: Performance Appraisal & Career Management
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Q1) The following item appears on a student evaluation form, to assess a student's performance outside of class.Which of the following methods of performance appraisal is represented by this example?
1 =Often unprepared when called on.Frequent late submission of assignments.
2 =Sometimes unprepared when called on.Hands in 2-3 assignments late.
3 =Unprepared on occasion, but not often.Hands in 2 or fewer late assignments.
4 =Usually well-prepared when called on, but may be unprepared on 1-2 occasions.All assignments handed in on time.
5 =Always prepared when called on.Hands in every assignment early or on time.
A) Management-by-Objectives (MBO)
B) Critical incident
C) Simple ranking
D) Behaviorally anchored rating scale (BARS)
E) Paired-comparison method
Q2) An employee's immediate manager typically tends to be his or her rater in the performance-appraisal process.
A)True
B)False
Q3) What are the limitations associated with career planning?
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Page 12
Chapter 11: Managing Labor Relations
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Q1) Refer to Scenario 11.1.Which of the following issues is NOT likely to be a concern for Qwerty's employees in the present situation?
A) Child labor in some foreign countries
B) Increasing use of prison labor
C) Increasing rates of unemployment
D) Negative consequences of globalization
E) Exploitation of workers in Third World countries
Q2) Which of the following tactics of resolving an impasse is illegal under all circumstances?
A) Picketing
B) Boycott
C) Slowdown
D) Lockouts
E) Wildcat strike
Q3) Trace the early history of labor unions in the United States and mention the significant contributions of early labor unions.
Q4) Describe the barriers to effective negotiation.
Q5) Summarize the position of labor unions in the United States on the employment of prison labor and contingent workers.
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Chapter 12: Safety, Health, Well-Being, & Security
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Q1) Role ambiguity and role conflict are considered part of interpersonal demands that cause stress.
A)True
B)False
Q2) Which of following is true of the Occupational Safety and Health Act (OSHA)?
A) Its standards are highly generalized and are not applicable to all industries.
B) Its standards are applicable only to manufacturing companies.
C) Its standards are very comprehensive and voluminous.
D) Its provisions are enforced by the Department of Justice.
E) Its provisions are applicable only to companies that request OSHA inspections.
Q3) Which of the following is a role demand stressor?
A) Occupation
B) Security
C) Overload
D) Ambiguity
E) Office design
Q4) Identify and discuss the individual characteristics that impact how a person experiences stress.
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Page 14
Chapter 13: Motivation at Work
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Q1) In the context of the equity theory, which of the following is an outcome of underpayment inequity?
A) An employee will try to increase his or her inputs.
B) An employee's satisfaction level at work tends to increase.
C) An employee's valence tends to be positive.
D) An employee is not likely to exert effort at work.
E) An employee will try to reduce his or her outcomes.
Q2) Refer to Scenario 13.1.John works in an organization where additional incentives are paid to employees in accordance with their levels of outcome.Owing to the cost-cutting measures adopted by the organization, the additional incentives scheme was removed.On the basis of the _____ theory, an individual's motivation is reduced when the anticipated outcome for their efforts is not met.
A) agency
B) expectancy
C) equity
D) goal
E) need-based
Q3) Discuss the various reinforcement schedules.
Q4) What are the three basic components of expectancy theory?
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Chapter 14: Managing & Enhancing Performance: The Big Picture
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Q1) Which of the following is a disadvantage of implementing compressed workweek arrangements?
A) Individuals who lack the discipline to work in unconstrained environments misuse the arrangement.
B) Labor unions face difficulty in organizing workers.
C) The greater number of days off affects the social aspects of jobs.
D) Employees are more likely to be forced to work overtime.
E) It is more likely that he or she will lose work time to deal with personal business.
Q2) Which of the following incentive compensation systems allows an organization to pay an employee a certain amount of money for each unit of output he or she produces?
A) Piece-rate plan
B) Merit-pay plan
C) Bonus
D) Commission
E) Knowledge-based pay
Q3) Briefly describe individual incentive pay plans.
Q4) Describe the two common alternate work schedule arrangements.
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Q5) Describe the common team and group incentive systems used by organizations.