Principles of Management Solved
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Course Introduction
Principles of Management introduces students to the fundamental concepts and practices that form the foundation of effective management in organizations. The course covers key functions such as planning, organizing, leading, and controlling, while exploring essential topics including decision-making, motivation, leadership styles, organizational structure, communication, and strategic management. By examining real-world case studies and current business trends, students gain insights into ethical management practices and the evolving challenges faced by todays managers. This course equips students with practical tools and analytical frameworks to develop effective managerial skills and to understand the role of management in achieving organizational goals.
Recommended Textbook
Management An Integrated Approach 2nd Edition by Ranjay Gulati
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Page 2
Chapter 1: Introduction to Management
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Sample Questions
Q1) Define stakeholder. What are the steps involved in stakeholder mapping?
Answer: According to the stakeholder theory, "a stakeholder is any group or individual who can affect or is affected by the achievement of an organization's purpose."
The first step of stakeholder mapping is to map all of the stakeholder relationships of the firm. The next step in the mapping process is to identify specific subsets within stakeholders. The third step is to determine stakes for each stakeholder. The final step in stakeholder mapping involves defining connections between stakeholders.
Q2) Through _____, senior leaders of a corporation meet with business unit managers to assess progress toward specific goals.
A) contingency planning
B) scientific management
C) strategic review process
D) scenario building
Answer: C
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3
Chapter 2: The Global Business Environment
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Sample Questions
Q1) The Uruguay Round is noteworthy because it created the successor to GATT.
A)True
B)False
Answer: True
Q2) Identify the trade agreement that created a single market by a system of laws that apply in all member states, guaranteeing the freedom of movement of people, goods, services, and capital.
A) North American Free Trade Agreement
B) Economic Community of West African States
C) European Union
D) Central American Common Market
Answer: C
Q3) The president of a small nation is promoting and nurturing coffee agriculture because he believes it is the product at which the country can be the most efficient producer. He is operating under
A) the Theory of Comparative Advantage.
B) the Theory of Economic Dimension.
C) Hofstede's Low versus High Power Distance Dimension.
D) the Principles of Uncertainty Avoidance.
Answer: A
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Chapter 3: Ethics and Corporate Social Responsibility
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Sample Questions
Q1) Jake, a corporate accountant, works for a manufacturing firm. During an annual accounts review, he noticed that there were certain discrepancies in the accounts. He determined that top management was involved in manipulation of the accounts and reported this to the federal authorities. In this scenario, Jake is
A) engaged in bribery.
B) revealing trade secrets.
C) engaged in whistle-blowing.
D) engaged in bid-rigging.
Answer: C
Q2) Which of the following is a direct benefit derived from CSR?
A) CSR can improve a company's brand value.
B) CSR is responsible for bringing foreign direct investment.
C) CSR brings better productivity from the workforce.
D) CSR has a direct impact on debenture interest rate.
Answer: A
Q3) In business, members of a partnership are fiduciaries to one another.
A)True
B)False
Answer: True
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Chapter 4: Introduction to Strategy
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Sample Questions
Q1) In considering a strategy for a firm, its leaders must decide on how they seek to position the firm within the marketplace.
A)True
B)False
Q2) Scott determines that his firm's strategy leverages its key resources. Which of the following criteria for evaluating the quality of a firm's strategy is Scott assessing?
A) External fit
B) Internal fit
C) Differentiation
D) Implementable
Q3) Z-coffiz charges much higher prices for a cup of coffee than its competitors. Z-coffiz is able to do this because it positions itself to be selling an experience, rather than merely a cup of coffee. Which aspect of a firm's strategy does this describe?
A) External fit
B) Internal fit
C) Differentiation
D) Implementable
Q4) Describe the business-level strategy.
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6
Chapter 5: Business-Level Strategy
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Sample Questions
Q1) Which of the following statements best describes competitive advantage?
A) It refers to the pressure a supplier or buyer can exert on a company.
B) It is the advantage that occurs when a firm offers products to all customers at higher prices.
C) It derives from a firm's ability to create value for its customers that exceeds the cost of producing the product or service.
D) It is the capability to identify and react to changes in the external environment and to mobilize internal resources to deal with those changes.
Q2) Briefly describe the 5-Forces Model.
Q3) Which of the following is an example of a weakness in an organization's SWOT analysis?
A) Competitors with highly skilled employees
B) Money spent on machineries with updated technology
C) Overdependence on a particular supplier for core materials
D) The increasing number of competitors
Q4) Define value chain analysis. Discuss the two types of activities in a firm's value chain.
Q5) Describe the three strategies of competitive advantage.
Q6) Outline the features of SWOT analysis.
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Chapter 6: Corporate-Level Strategy
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Sample Questions
Q1) A film production company purchases a television network to guarantee its shows will be aired. This is an example of A) unrelated diversification.
B) backward vertical integration.
C) forward vertical integration.
D) backward horizontal integration.
Q2) A candy company purchases sugar plantations to guarantee its own supply of sugar. This is an example of A) unrelated diversification.
B) backward vertical integration.
C) forward vertical integration.
D) backward horizontal integration.
Q3) Firms that have excess capacity or potential in their physical assets or their intangible assets tend to pursue unrelated diversification.
A)True
B)False
Q4) Define diversification and describe its types.
Q5) Why do managers pursue diversification strategies?
Q6) Discuss the results of diversification.
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Chapter 7: Organizational Design
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Sample Questions
Q1) Thomas, the head of the marketing department in an organization, has structured his department in such a way that the roles and responsibilities of his workers are loosely defined. Moreover, he does not exert too much control over his workers and encourages two-way communication. His workers tend to be highly satisfied with their jobs when compared to those in the finance department, headed by John who exerts more control. From this scenario it can be inferred that Thomas has adopted a _____ mechanism for coordinating.
A) bureaucratic
B) authoritative
C) centralized
D) behavioristic
Q2) Which of the following statements is true of the organizational design and the life cycle of a firm?
A) Once a firm reaches maturity, the emphasis on coordination generally increases.
B) The nature of leadership should remain stable as the firm keeps evolving.
C) As a firm matures, it tends to emphasize division of labor.
D) Start-up firms are characterized by more job specialization.
Q3) Define organizational structure and briefly describe its types.
Q4) Discuss organizational design and the life-cycle of a firm.
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Chapter 8: Organizational Culture
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Sample Questions
Q1) The process of understanding how work gets done and how individuals should interact is called
A) socialization.
B) internalization.
C) identification.
D) adaptation.
Q2) Which of the following evolves over three stages-from compliance to identification to internalization?
A) Internal integration
B) Organizational commitment
C) Cultural socialization
D) External adaptation
Q3) Identify the different levels of a firm's culture and their specific attributes.
Q4) Which of the following is an advantage of a strong culture?
A) A strong culture has been linked to better levels of performance.
B) Strong cultures increase performance even in turbulent environments.
C) Organizations with strong cultures only encourage ethical behavior.
D) It is a simple and easy task to change the strong culture of an organization.
Q5) Describe three elements that can be helpful in assessing a firm's culture.
Q6) Analyze the ways in which a strong culture can affect a firm's performance.
Page 10
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Chapter 9: Managing Human Capital
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Sample Questions
Q1) What are the guidelines managers should follow when downsizing?
Q2) Eris Company is managing employees by outlining a series of specific milestones that they are expected to meet in a defined time period. Eris is utilizing
A) off-the-job training.
B) management by objectives.
C) Total Quality Management.
D) 360-degree feedback.
Q3) Which of the following is an advantage of realistic job previews?
A) Large number of applicants to choose from
B) All candidates tend to be highly skilled
C) Communicate only positive job aspects
D) Decrease turnover in many organizations
Q4) Which of the following stages of organizational growth is characterized as being highly entrepreneurial and informal?
A) Functional growth
B) Initiation phase
C) Controlled growth
D) Strategic integration
Q5) What are the benefits of internal recruitment?
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Chapter 10: Performance Management
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Sample Questions
Q1) One of the more important measurements of TQM is _____, defined as the amount of time required to develop and deliver products and services to the customer.
A) total cycle time
B) benchmarking
C) Six Sigma
D) leverage
Q2) Because GE operates in many businesses, ranging from aircraft engines to healthcare imaging, GE would
A) not be able to use the balanced scorecard.
B) have to adopt a common strategy for all businesses to be able to use the balanced scorecard.
C) need to create a unique balanced scorecard for each of its business units.
D) have to choose one business unit with which it could use the balanced scorecard.
Q3) Which of the following is the ultimate goal of Total Quality Management?
A) Producing sustainable revenue
B) Setting strategic priorities
C) Fulfilling customer needs
D) Improving employee performance
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12
Chapter 11: Organizational Change
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Sample Questions
Q1) The management of an organization realized that their employees' performance kept deteriorating and many employees decided to quit due to unknown reasons. After probing, they realized that their competitors were offering a better compensation which attracted most of the employees. Therefore, the management made reasonable changes to the compensation system that enabled good performers to receive more incentives and recognition. Identify the change that has been implemented.
A) Organic change
B) Reactive change
C) Transformative change
D) Incremental change
Q2) Walmart introduced electronic scanning of uniform product codes at the point of sale years ahead of most of its competitors. This is an example of both _____ change.
A) reactive and transformative
B) proactive and transformative
C) proactive and incremental
D) reactive and incremental
Q3) Define organizational change and briefly explain how change can be driven by external factors.
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13
Chapter 12: Leadership in Organizations
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Sample Questions
Q1) Which of the following statements is true about leadership skills?
A) Interpersonal skills refer to a leader's ability to interact with others.
B) Cognitive skills are developed through experience.
C) Technical and interpersonal skills are innate.
D) Cognitive skills refer to a leader's knowledge about an organization.
Q2) Social competency includes a leader's ability to be aware of how other people's attitudes, assumptions, and beliefs are related to their behaviors and motivation.
A)True
B)False
Q3) Fiedler's contingency model suggests that the situation should be changed to match the leader.
A)True
B)False
Q4) Define transactional and transformational leadership styles. Identify their components.
Q5) Define Fiedler's contingency model and situational leadership.
Q6) All charismatic leaders tend to be positive role models.
A)True
B)False
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Chapter 13: Becoming a Leader: Knowing Yourself
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Q1) Susan has a high internal sense of control and is more likely to
A) prefer more directive supervision.
B) be less participatory.
C) be self-motivated.
D) exhibit lower levels of satisfaction.
Q2) Which of the following is a characteristic shared by creative people?
A) Unwillingness to take risks
B) Lack of self-confidence
C) Tolerance of ambiguity
D) Resistance to new experiences
Q3) Of the four dimensions used to effectively address adversity, reach refers to the A) extent to which adversity impacts other aspects of a person's life.
B) expected length of the adversity.
C) level of accountability that a person assumes to improve the situation.
D) extent to which a person thinks he or she can influence whatever happens next.
Q4) Define self-awareness and interpersonal effectiveness, and describe their relationship.
Q5) Briefly explain Howard Gardner's multiple intelligences.
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Chapter 14: Power and Influence
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Sample Questions
Q1) Juanita believes that she and Lee share common organizational goals. Lee isn't sure what to do. Juanita has a plan. Which style of influence will be most helpful to Juanita in gaining Lee's support?
A) Disengaging
B) Persuading
C) Asserting
D) Attracting
Q2) Which of the following is the first step in exercising power through influence?
A) Build sources of power.
B) Use specific influence principles.
C) Assess performance.
D) Choose an influence style and influence tactics.
Q3) In an increasingly heterogeneous workplace, differences of opinion become more apparent and overt disagreement is more likely to take place.
A)True
B)False
Q4) List four of the factors that are required for sustaining power.
Q5) Define the terms leadership, power, and influence.
Q6) Describe the different influence styles.
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Chapter 15: Decision Making
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Sample Questions
Q1) Describe confirmation bias.
Q2) Under conditions of _____, individuals have information about objectives, priorities, and potential courses of action, but they do not have all the information about the possible outcomes for each course of action.
A) certainty
B) rationality
C) risk
D) unambiguity
Q3) Vinita buys a stock assuming that she can make profit out of it. However, shortly thereafter the stock value drops and she loses money. Her financial planner thinks the stock value will drop further and advises her to sell the stock. However, the market value has dropped so much already that Vinita believes it is due to rebound; she doesn't want to sell at the lowest point and lose money. She holds onto the stock in hopes to regain her loss. Instead she loses more money. This phenomena is referred to as
A) intuitive decision making.
B) representativeness heuristic.
C) escalation of commitment.
D) rational decision making.
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Chapter 16: Conflict and Negotiation
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Sample Questions
Q1) John and Joseph are the finance executives in an organization. They are presently working on a project together. John is task-oriented, and he works hard to complete the project on time. However, Joseph takes his time and tends to ignore the project deadline.
As a result, John has a conflict with Joseph and warns him that he'll complain about him to the department head. This scenario is an example of _____ conflict.
A) cognitive
B) role
C) affective
D) intergroup
Q2) Social identification is an attempt to define the norms of the in-group in a way that favors the in-group at the expense of the out-group.
A)True
B)False
Q3) Which of the following is a characteristic of an integrative negotiation?
A) Creating value for both negotiators
B) Lack of interpersonal trust
C) What one wins, the other loses
D) Focus on a single issue
Q4) List the steps involved in an effective negotiation process.
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Chapter 17: Leading Teams
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Q1) Which of the following teams is the best example of a team in the adjourning stage of development?
A) A team with members sharing their personal opinion with others and group members being more open to one another's ideas and suggestions
B) A team with members arguing with each other due to interpersonal issues arising from differences in the perspectives of each team member
C) A team with some members feeling sad and some feeling relief but ready to move on to the next challenge
D) A team with members getting to know their tasks and responsibilities and each of their team member's competencies
Q2) _____ teams are composed of a manager and his or her subordinates in the formal chain of command, usually in one functional department.
A) Collocated
B) Vertical
C) Cross-functional
D) Self-directed
Q3) Outline the five-stage process of team development.
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19
Chapter 18: Motivation
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Q1) The human resources department sought to design jobs that have distinct and important roles in the organization, that are meaningful, and that foster a sense of contribution to the organization so as to fulfill employees' drive to A) acquire.
B) bond.
C) comprehend.
D) defend.
Q2) John, a manager who conforms to Douglas McGregor's _____, believes that employees are motivated by extrinsic rewards, especially compensation.
A) Theory ERG
B) Theory X
C) Theory Y
D) Theory Z
Q3) Differentiate extrinsic and intrinsic rewards of motivation. Give examples.
Q4) Which of the following is an extrinsic reward?
A) Autonomy
B) Challenging task
C) Self-direction
D) Compensation
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Chapter 19: Communication
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Sample Questions
Q1) Cynthia and Diane are the production managers in an organization. While making presentations during team meetings, Diane, who is more talkative, uses a wide range of facial expressions and shares her feelings and personal information. In contrast, Cynthia keeps her feelings private and limits discussions to business-related topics. Based on this description, it can be inferred that
A) Diane is a passive listener.
B) Cynthia is a direct communicator.
C) Diane is an open communicator.
D) Cynthia is an interactive listener.
Q2) Define communication style. Identify its dimensions.
Q3) Noise is often maximized by an ongoing back-and-forth process of seeking clarification.
A)True
B)False
Q4) Which of the following is one of the core components of communication?
A) Medium
B) Approach
C) Style
D) Tone
Q5) Define persuasion. List the principles for enhancing persuasion.
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Chapter 20: Networking
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Sample Questions
Q1) Define networking. How can one build diverse networks?
Q2) Which of the following statements about the strength of ties is true?
A) Weak ties are effective in sharing information, and they often provide redundant information.
B) Unlike strong ties, weak ties provides individuals with exposure to novel information.
C) Trust, larger time commitments, and similar interests are features of weak ties.
D) Strong ties serve as bridges and are more likely to link members of dissimilar groups than are weak ones.
Q3) The first step in building a useful internal network is to identify information brokers.
A)True
B)False
Q4) Social capital is not only beneficial to individuals within organizations but also to those organizations themselves.
A)True
B)False
Q5) Briefly describe the strength of ties.
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