Principles of Management Practice Questions
Course Introduction
Principles of Management explores the foundational concepts, theories, and practices essential to effective organizational leadership and administration. This course examines key management functions, including planning, organizing, leading, and controlling, while emphasizing decision-making, motivation, team dynamics, and strategic thinking. Through real-world case studies and interactive activities, students gain insight into ethical considerations, contemporary challenges, and the skills necessary to manage people and resources in diverse workplace environments.
Recommended Textbook MGMT Principles of Management 9th Edition by Chuck Williams
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2
Chapter 1: Management
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Q1) Robert is a manager at Beta Corp.Many of his subordinates mention that they find it very easy to work and communicate with Robert.According to them,Robert is a good listener and communicates his ideas effectively.Moreover,he is sensitive to the feelings of others and encourages them to express their opinions.This scenario illustrates that that Robert has good _____.
A) technical skills
B) spatial skills
C) conceptual skills
D) human skills
Answer: D
Q2) Which of the following is a relatively new kind of management position that developed as companies shifted to self-managing groups?
A) Top manager
B) Team leader
C) First-line leader
D) Middle manager
Answer: B
Q3) _________ is defined as getting work done through others.
Answer: Management
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Page 3
Chapter 2: The History of Management
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Q1) _________ believed that management can and should be taught to others.
A.Henri Fayol
B.Max Weber
C.Elton Mayo
D.Mary Parker Follett
Answer: Henri Fayol
Q2) One of the most commonly used operations management tool is cognitive mapping,which is used to better understand the psychology of the workers in an organization.
A)True
B)False
Answer: False
Q3) Which of the following is the term used for the amount and number of raw materials,parts,and finished products that a company has in its possession?
A) Slack resources
B) Databases
C) Contingency
D) Inventory
Answer: D
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Page 4
Chapter 3: Organizational Environments and Cultures
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Q1) Opportunistic behavior focuses on establishing a mutually beneficial,long-term relationship between buyers and suppliers.
A)True
B)False
Answer: False
Q2) Citrine Inc.is a manufacturer of electrical home appliances.The company is facing a serious shortage of copper scrap that is used in its manufacturing process.Hence,the manufacturing process has come to a halt.Which of the following characteristics of the external environment is illustrated in this scenario?
A) Punctuated equilibrium
B) Environmental inertia
C) Resource scarcity
D) Buyer dependence
Answer: C
Q3) Companies with strong cultures tend to perform well when they need to adapt to dramatic changes in their external environments.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Ethics and Social Responsibility
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Q1) A(n)_____ is a social responsiveness strategy in which a company does less than society expects.
A) discretionary strategy
B) reactive strategy
C) proactive strategy
D) accommodative strategy
Q2) Maxwell Lights Inc.,a fireworks company,has workers operating under dangerous working conditions.Last year,one of its workers died on the jo B.Nevertheless,the company took a long time to acknowledge its responsibility for the accident.The worker's family was compensated only after several months.Moreover,the money received by the worker's family was only half of what they should have actually been paid.Which of the following social responsiveness strategies is the company using?
A) Reactive strategy
B) Defensive strategy
C) Proactive strategy
D) Accommodative strategy
Q3) The act of reporting others' ethics violations to management or legal authorities is known as _________.
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Chapter 5: Planning and Decision Making
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Q1) The more criteria a potential solution meets,the better that solution will be.
A)True
B)False
Q2) _____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
A) Policies
B) Procedures
C) Single-use plans
D) Options-based plans
Q3) _____ is a process wherein each decision criterion is compared directly with every other criterion.
A) Absolute comparisons
B) Relative comparisons
C) Benchmarking
D) Satisficing
Q4) _____ are responsible for developing operational plans.
A) Lower-level managers
B) Middle managers
C) Top managers
D) Board of directors
Page 7
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Chapter 6: Organizational Strategy
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Q1) The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.
A)True
B)False
Q2) Rare resources are resources that are not controlled or possessed by many competing firms and are necessary to sustain a competitive advantage.
A)True
B)False
Q3) _________ are used by managers to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
A.Strategic reference points
B.Corporate-level strategies
C.Distinctive competencies
D.Core capabilities
Q4) Growth,stability,and retrenchment are all types of portfolio strategies. A)True B)False
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8
Chapter 7: Innovation and Change
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Q1) The compression approach to innovation is an approach to innovation that assumes a highly uncertain environment and uses intuition,flexible options,and hands-on experience to reduce uncertainty and accelerate learning and understanding.
A)True
B)False
Q2) Which of the following statements is true of resistance to change?
A) It is artificial and uncertain in nature.
B) It is based on sufficient and correct information.
C) It decreases when change efforts receive significant managerial support.
D) It is used to manage innovation in more certain environments during periods of incremental change.
Q3) Technological substitution occurs when:
A) a new technological standard or dominant design is established.
B) customers purchase new products to replace older technologies.
C) a new dominant design prevents a company from competitively selling its products.
D) a new technological design or process becomes the accepted market standard.
Q4) _________ is a competition between old and new technologies to establish a new technological standard or dominant design.
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Page 9
Chapter 8: Global Management
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Q1) _____ is the degree to which societies believe that individuals should be self-sufficient.
A) Individualist anarchism
B) Individuation
C) Individual reclamation
D) Individualism
Q2) Purchasing power is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.
A)True
B)False
Q3) _____ are foreign offices,facilities,and manufacturing plants that are 100 percent owned by the parent company.
A) Joint ventures
B) Wholly owned affiliates
C) Strategic alliances
D) Business acquisitions
Q4) The cultural difference of _________ is the degree to which people in a country are uncomfortable with unstructured,ambiguous,unpredictable situations.
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Chapter 9: Designing Adaptive Organizations
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Q1) The primary disadvantage of customer departmentalization is:
A) that it leads to slower decision making.
B) that it leads to duplication of resources.
C) the challenge of coordinating across the different product departments.
D) the high level of coordination required to manage the complexity involved in running large projects.
Q2) _________ is a hybrid structure in which two or more forms of departmentalization are used together.
Q3) In the context of the job characteristics model,which of the following best defines autonomy?
A) It is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work.
B) It is the process of increasing the number of different tasks that a worker performs within one particular jo B.
C) It is the degree to which a job is perceived to have a substantial impact on others inside or outside an organization.
D) It is the amount of information a job provides to workers about their work performance.
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11
Chapter 10: Managing Teams
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Q1) In the storming stage of team development,team members will have accepted team goals,be operating as a unit,and,as indicated by the increase in performance,be working together effectively.
A)True
B)False
Q2) Which of the following statements is true of self-designing teams?
A) They require management approval to perform a task.
B) They control work tasks and team membership.
C) They are also known as self-managing teams.
D) They have less autonomy than employee involvement teams.
Q3) Computer programmers working on separate projects in the same department of a company are considered a team.
A)True
B)False
Q4) Challenging team goals greatly increase the incidence of social loafing. A)True
B)False
Q5) _____ represents the variances or differences in ability,experience,personality,or any other factor on a team.
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Chapter 11: Managing Human Resource Systems
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Q1) Like other major human resource decisions,employee termination decisions should be made on the basis of job-related factors.
A)True
B)False
Q2) Which of the following statements is true of employee turnover?
A) The top management of a company prefers dysfunctional turnover to functional turnover.
B) One of the best ways to influence functional and dysfunctional turnover is to link pay directly to performance.
C) Functional turnover is the loss of high-performing employees who voluntarily choose to leave a company.
D) Dysfunctional turnover gives an organization a chance to replace poor performers with better workers.
Q3) Which of the following is true of internal recruiting?
A) It involves organizing career conferences and job fairs.
B) It includes employee referrals and walk-ins.
C) It increases recruitment start-up time and costs.
D) It improves employee commitment and morale.
Q4) _________ is the process of developing a pool of qualified job applicants.
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Chapter 12: Managing Individuals and a Diverse Work Force
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Q1) The government of a country is working to change employers' perceptions of older workers and encourage companies to abandon mandatory retirement plans.In the context of dimensions of surface-level diversity,which of the following types of discrimination is the government trying to eliminate?
A) Age discrimination
B) Sex discrimination
C) Racial and ethnic discrimination
D) Disability discrimination
Q2) Unlike affirmative action,diversity:
A) is basically a punitive approach.
B) can exist even if organizations do not take purposeful steps to create it.
C) is required by law for private employers with fifty or more employees.
D) has a narrow focus on demographic, cultural, and personal differences.
Q3) When Galax Inc.,a logistics firm,hired Melissa as its president,it became evident that Galax does not have a(n)_____ to prevent women from rising to leadership positions.
A) glass ceiling
B) diversity bottleneck
C) organizational roadblock
D) greenhorn
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Page 14
Chapter 13: Motivation
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Q1) Citrus Inc.,a leading Internet service provider,announced an incentive for sales persons who exceeded their sales targets.The company hoped that this reward would increase its customer base.Unfortunately,the company did not witness any substantial increase in the number of its customers as very few sales persons exceeded the target marginally.Which of the following reinforcement contingencies must be applied in this scenario?
A) Extinction
B) Punishment
C) Negative reinforcement
D) Positive reinforcement
Q2) According to Maslow,which of the following is on the top of the hierarchy of needs?
A) Self-actualization needs
B) Physiological needs
C) Self-esteem needs
D) Safety needs
Q3) In the context of goal-setting theory,_________ is information about the quality or quantity of past performance and indicates whether progress is being made toward the accomplishment of a goal.
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Chapter 14: Leadership
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Q1) In the context of Fiedler's contingency theory,the term _________ refers to the degree to which a particular condition either permits or denies a leader the chance to influence the behavior of group members.
Q2) The great person theory holds that:
A) leaders have a short-term perspective.
B) leaders are concerned with means, not ends.
C) leaders are preservers of the status quo.
D) leaders are born, not made.
Q3) Burton is the founder of Netball.com,an online gaming site.He hired a few game developers and a few experts in marketing.He set the goal of making Netball one of the top ten Internet gaming sites in the next five years.He clearly defined the job responsibilities of each of his employees and the procedures that were to be followed in order to achieve that goal.The situational factor of _________ is illustrated in this scenario.
A.leader-member relations
B.position power
C.task structure
D.initiating structure
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Chapter 15: Managing Communication
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Q1) In the communication process,_____ makes senders aware of possible miscommunications and enables them to continue communicating until the receiver understands the intended message.
A) encoding
B) noise
C) retention
D) feedback
Q2) Communication is the process of transmitting information from one person or place to another.
A)True
B)False
Q3) Clarissa walks up to her supervisor's cabin in the second floor every time she needs a clarification instead of sending an email.This scenario best depicts _____.
A) the use of jargon in a communication channel
B) the use of a wrong communication medium
C) a fundamental attribution error
D) the encoding and decoding of a message
Q4) _________ is vocabulary particular to a profession or group that interferes with communication in a workplace.
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Chapter 16: Control
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Q1) An accounting statement that shows what has happened to an organization's income,expenses,and net profit over a period of time is called a(n)_________.
Q2) Only manufacturing firms have waste disposal problems.
A)True
B)False
Q3) _____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.
A) Suboptimization
B) Process gain
C) Organizational balance
D) Optimization
Q4) Once a company compares its actual performance to performance standards,the next step that it should take in the control process is to:
A) set goals.
B) identify deviations.
C) benchmark.
D) ensure suboptimization.
Q5) _________ occurs when behavior and work procedures do not conform to standards.
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Chapter 17: Managing Information
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Q1) Association patterns help identify database elements that are different.
A)True
B)False
Q2) Intranets use standardized protocols to describe and transfer data from one company in such a way that those data can automatically be read,understood,transcribed,and processed by different computer systems in another company.
A)True
B)False
Q3) Affinity patterns occur when:
A) two or more database elements occur together in a significant pattern in which one of the elements precedes the other.
B) two or more database elements tend to occur together in a significant way.
C) three or more database elements occur intermittently in an unstructured way.
D) three or more database elements occur together in a significant pattern in which one of the elements precedes the other.
Q4) Data and information are the same as knowledge.
A)True
B)False
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Chapter 18: Managing Service and Manufacturing Operations
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Q1) Manufacturing operations are classified according to the depth of their inventory stock.
A)True
B)False
Q2) A moderate degree of processing occurs in _____.
A) assemble-to-order operations
B) make-to-order operations
C) batch operations
D) make-to-stock operations
Q3) Durability is a quality characteristic that determines the quality of a service.
A)True
B)False
Q4) ISO 9000 is a series of five international standards for achieving consistency in quality management and quality assurance in companies throughout the world.
A)True
B)False
Q5) In the context of the principles of total quality management (TQM),_________ means collaboration between managers and nonmanagers,across business functions,and between the company and its customers and suppliers.
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