Principles of Management
Textbook Exam Questions
Course Introduction
Principles of Management introduces students to the fundamental concepts and functions of management within organizations. Covering key topics such as planning, organizing, leading, and controlling, the course explores the roles and responsibilities of managers in achieving organizational goals. Students will learn about decision-making processes, strategic management, teamwork, motivation, and the impact of globalization and technology on managerial practices. Through case studies and real-world examples, the course equips students with foundational knowledge and practical skills for effective management in diverse business settings.
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Contemporary Management 8th Edition by Gareth Jones
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Page 2
Chapter 1: Managers and Managing
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Q1) Top managers require the least conceptual skills because their primary responsibilities are planning and organizing.
A)True
B)False
Answer: False
Q2) The amount of time that managers spend planning and organizing resources decreases as they ascend the hierarchy within the organization.
A)True
B)False
Answer: False
Q3) Supervisors are also referred to as _____.
A) first-line managers
B) middle managers
C) top managers
D) interim managers
E) executive managers
Answer: A
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Page 3
Chapter 2: The Evolution of Management
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Q1) According to Taylor, the production process becomes more efficient with:
A) an increase in the effort that each worker puts in to produce a unit of output.
B) an increase in the amount of time required to produce a unit of output.
C) an increase in division of labor through specialization.
D) the use of informal-rule-of thumb knowledge.
E) the use of intuitive knowledge.
Answer: C
Q2) Henri Fayol's approach to administration more closely reflects the assumptions of McGregor's Theory X as compared to Theory Y.
A)True
B)False
Answer: False
Q3) Obedience to a manager's authority is most consistent with Fayol's principle of: A) order.
B) discipline.
C) esprit de corps.
D) equity.
E) decentralization
Answer: B
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Page 4
Chapter 3: Values, Attitudes, Emotions, and Culture: the
Manager As a Person
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Sample Questions
Q1) Which of the following is true of managers who are low on extraversion?
A) They tend to experience positive moods and emotions frequently.
B) They are friendly, affectionate and highly social.
C) They are highly ineffective and inefficient in jobs that require little social interaction.
D) They view the world and their life with little optimism.
E) They always feel good about themselves and other people.
Answer: D
Q2) A(n) _____ value is a personal conviction about lifelong goals or objectives.
A) terminal
B) instrumental
C) extrinsic
D) nominal
E) corporate
Answer: A
Q3) When people are in negative moods, they tend to be less detail-oriented and focused on the facts at hand.
A)True
B)False
Answer: False
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Chapter 4: Ethics and Social Responsibility
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Sample Questions
Q1) The _____ has organizationwide authority, hence, organizational members in any department can communicate instances of unethical behavior by their managers or coworkers without fear of retribution.
A) manager
B) stakeholder
C) stockholder
D) consumer
E) ethics ombudsperson
Q2) Under the practical rule, a manager would not be reluctant to communicate a decision to people outside the company when:
A) the decision, although unethical, would increase shareholders' wealth.
B) a typical person would consider the decision acceptable.
C) a typical person wouldn't care about the decision.
D) a typical person is unaware of the harmful implications of the decision.
E) he/she could blame the top management of the firm.
Q3) Trust refers to the esteem or high repute that people or organizations gain when they behave ethically.
A)True
B)False
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Page 6
Chapter 5: Managing Diverse Employees in a Multicultural Environment
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Q1) Federal law prohibits discrimination based on sexual orientation.
A)True
B)False
Q2) The process by which experienced members of the organization provide guidance and advice to newer members is called _____.
A) quid pro quo
B) networking
C) mentoring
D) performance appraisal
E) career planning
Q3) _____ are composed of simplistic and often inaccurate beliefs about the typical characteristics of particular groups of people.
A) Ideals
B) Stereotypes
C) Values
D) Concepts
E) Perceptions
Q4) Distinguish between the two types of sexual harassment that can occur in the workplace.
Page 7
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Chapter 6: Managing in the Global Environment
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Q1) _____ result(s) from factors such as manufacturing products in very large quantities, buying inputs in bulk, or making more effective use of organizational resources than do competitors by fully utilizing employees' skills and knowledge.
A) Brand loyalty
B) Demographic forces
C) Political forces
D) Brand positioning
E) Economies of scale
Q2) The global environment is a set of forces and conditions in the world outside an organization's boundary that affect how it operates and shape its behavior.
A)True
B)False
Q3) A supplier's bargaining position is especially strong when:
A) the input supplied has multiple sources and channels of distribution.
B) the input supplied has inexpensive and easily available substitutes.
C) the input supplied is a fundamental component of the organization's product.
D) the input supplied is found freely and can be accessed by people with little effort.
E) the input supplied is not protected by any patent.
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Chapter 7: Decision Making, Learning, Creativity, and Entrepreneurship
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Q1) _____ is the decision-making method in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.
A) Delphi technique
B) Dialectical inquiry
C) Brainstorming
D) Nominal group technique
E) Devil's advocacy
Q2) An organization in which managers enable subordinates to think creatively in order to maximize the potential for organizational learning is called a(n):
A) learning organization.
B) dialectical organization.
C) skunksworks.
D) intuitive organization.
E) heuristic organization.
Q3) Allowing individuals to develop a sense of personal mastery is detrimental to organizational learning.
A)True
B)False
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Chapter
8:
The Manager As a Planner and a Strategist
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Q1) The first step in planning for an organization is:
A) procuring raw materials and human resources.
B) analyzing situations and formulating strategies.
C) expanding the organization's business globally.
D) determining the organization's missions and goals.
E) allocating resources and responsibilities to achieve strategies.
Q2) When establishing goals, setting a completion time acts as a demotivator.
A)True
B)False
Q3) The first step in defining an organization's mission is to define its business.
A)True
B)False
Q4) Which of the following will most likely be an opportunity according to an organization's SWOT analysis?
A) The company can probably takeover one of its bankrupt competitors.
B) The sales of the organization's products are the highest in the industry.
C) The organization is growing rapidly without any direction.
D) The government has passed a law which will increase labor costs.
E) The organization faces increased competition in its market.
Q5) Discuss the four qualities of an effective plan as emphasized by Henri Fayol.
Page 10
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Chapter 9: Value Chain Management: Functional
Strategies for Competitive Advantage
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Q1) What is total quality management (TQM)? List the ten steps necessary to implement a successful TQM program.
Q2) The management of the value-chain activities that bring new products or services to market is called _____.
A) product promotion
B) total quality management
C) product positioning
D) process reengineering
E) product development
Q3) A company with a strong _____ can create a perception of superior value in the minds of its clients by solving client problems and supporting clients after they have purchased its product.
A) production function
B) sales function
C) customer service function
D) marketing function
E) materials management function
Q4) List and briefly explain the three basic facilities layout or ways of arranging workstations with an example of the type of products produced by each type.
11
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Chapter 10: Managing Organizational Structure and Culture
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Q1) Which of the following structures is the most flexible?
A) Functional structure
B) Product structure
C) Market structure
D) Geographic structure
E) Matrix structure
Q2) A cross-functional team is a group of managers brought together from different departments to perform organizational tasks.
A)True
B)False
Q3) Giving lower-level managers and non managerial employees the right to make important decisions about how to use organizational resources is referred to as _____.
A) span of control
B) centralizing authority
C) minimum chain of command
D) decentralizing authority
E) maximum chain of command
Q4) Discuss the advantages and disadvantages of decentralizing authority.
Q5) Differentiate between job enlargement and job enrichment.
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Chapter 11: Organizational Control and Change
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Q1) According to the force-field theory:
A) a manager cannot evaluate the forces at work when observing the performance of workers such as doctors, research scientists, or engineers.
B) a wide variety of forces arise from the way an organization operates that make organizations resistant to change.
C) forces that support clan control are significantly different from the forces that form the foundation of organizational culture.
D) the forces of evolutionary change and revolutionary change are equal and complement each other.
E) an organization is in a state of inertia when it reduces the forces for change and increases resistance to change.
Q2) _____ guide behavior and specify what employees are to do when they confront a problem that needs a solution.
A) Rules and SOPs
B) Output controls
C) Feedback controls
D) Evolutionary changes
E) Force-fields
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Chapter 12: Human Resource Management
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Q1) Recruiting processes conducted by an organization to find people outside the organization who have not worked for the organization previously is known as _____.
A) internal recruiting
B) lateral recruiting
C) external recruiting
D) transferring
E) promoting
Q2) Collective bargaining refers to negotiation between labor unions and managers to resolve conflicts and disputes about important issues.
A)True
B)False
Q3) Behaviorally anchored rating scale (BARS) and the behavior observation scale (BOS) that measures performance as perceived by the manager are often used in _____.
A) subjective appraisals
B) mathematical appraisals
C) objective appraisals
D) factual appraisals
E) statistical appraisals
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Chapter 13: Motivation Performance
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Q1) According to Maslow's hierarchy of needs theory, higher level needs must be satisfied before lower level needs.
A)True
B)False
Q2) _____ is central to management because it explains what drives or will drive people to achieve organizational goals.
A) Determinism
B) Motivation
C) Ethnocentrism
D) Structuralism
E) Positivism
Q3) A compensation plan of an organization that bases pay on performance is called a merit pay plan.
A)True
B)False
Q4) Both easy and moderate goals have less motivational power than difficult goals.
A)True
B)False
Q5) What are the different types of needs according to Maslow?
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Chapter 14: Leadership
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Sample Questions
Q1) The two basic kinds of leader behaviors identified by the behavior model of leadership were:
A) intrinsic and extrinsic.
B) instrumental and terminal.
C) task-structure and task-orientation.
D) ethnocentric and xenocentric.
E) consideration and initiating structure.
Q2) Coercive power:
A) fosters high performance if used often.
B) respects employee dignity and raises employee morale.
C) can have negative effects and should be used sparingly.
D) helps establish rapport between managers and employees.
E) is the cornerstone of effective leadership.
Q3) Women tend to be less participative as leaders than men, making decisions on their own without input from subordinates.
A)True
B)False
Q4) Explain the concept of transformational leadership. In what way do transformational leaders affect subordinates?
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Chapter 15: Effective Groups and Teams
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Q1) Managers need to empower self-managed teams and provide sufficient autonomy to them and ensure that all groups are effective and its members motivated in the _____ stage of group development.
A) forming
B) adjourning C) performing D) storming
E) norming
Q2) Employees of a multinational organization will mostly likely opt for asynchronous technologies when large differences in time zones make it impossible for them to communicate on a real time basis.
A)True
B)False
Q3) What are self-managed teams? Detail the roles of a manager in ensuring that self-managed teams are effective.
Q4) As group cohesiveness increases, the extent of group members' participation within the group decreases.
A)True
B)False
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Chapter 16: Promoting Effective Communication
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Q1) Which of the following is an example of nonverbal communication?
A) A manager e-mailing his subordinates about an upcoming office party
B) A manager publicly praising one of his subordinates during a regular team meeting
C) A manager handing out a notice of termination to one of the underperforming employees
D) A manager frowning with disapproval at the sight of an employee who is dressed inappropriately
E) A manager announcing a reward for successful employee referrals in a notice posted in the office lounge
Q2) Drake would often come in late to work in spite of repeated, formal warnings by his manager. Drake's manager, Matt, lost his patience and fired him. In the event that Drake sues Matt for unjustly firing him, which of the following, if true, would help Matt win the case?
A) Matt always promotes the use of collaboration software.
B) Matt always refuses to participate in the grapevine.
C) Matt is not particularly fond of management by wandering around technique.
D) Matt always maintains a paper or electronic trail for all his messages.
E) Matt has a tendency toward stereotyping employees.
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Page 18
Chapter 17: Managing Conflict, Politics, and Negotiation
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Q1) Two parties in conflict focusing on each other's shortcomings rather than solving the source of the conflict is an example of:
A) focusing on superordinate goals.
B) focusing on developmental goals.
C) focusing on interests instead of demands.
D) focusing on people instead of the problem.
E) focusing on what is fair.
Q2) Discord arising from the incompatibility of goals of different individuals and their attempts to thwart each other's pursual of objectives is known as:
A) workplace bullying.
B) social loafing.
C) organizational conflict.
D) participative behavior.
E) workplace harassment.
Q3) Intergroup conflict takes place between members of the same department of an organization.
A)True
B)False
Q4) Define organizational conflict. How can conflict benefit the organization?
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Chapter 18: Used Advanced Information Technology to Increase Performance
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Q1) Define an ERP system and discuss its benefits.
Q2) The decline stage of a product begins when a more advanced product makes the old one obsolete.
A)True
B)False
Q3) A(n) _____ is a company specific virtual information system that systematizes the knowledge of its employees and facilitates the sharing and integrating of their expertise.
A) expert system
B) knowledge management system
C) enterprise resource planning system
D) knowledge economy
E) knowledge market
Q4) The final step that managers need to take to achieve control over organizational activities is to:
A) measure actual performance.
B) establish measurable standards of performance.
C) perform tests to confirm consistency.
D) compare actual performance against established goals.
E) evaluate the results and take corrective action.
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