Principles of Management

The difficulties as a result of the different norms and rules that constrain human
behaviour are called:
a) Liability of expansion
b) Liability of foreignness
c) Liability of smallness
d) Liability of newnes

Which of the following is NOT a mode of entry into foreign markets?

a) Export
b) Internationalization
c) International joint venture
d) Franchising

Franchising involves:
a) the transfer of patented information and trademarks, information and know-how as
well as information needed to sell a product or service.
b) the use of franchising for licensing new technologies in global markets.
c) the transfer of a business concept, with corresponding operational guidelines, to non-
domestic parties for a fee.
d) greenfield investment in a completely new facility, or acquisition of or merger with an
already established local firm

What do organizational structures explain?

a) Who does what, where and when
b) The competitive advantage of the firm
c) Formal and informal reporting within the firm
d) The core competencies of the firm

What are the advantages of the functional structure?

a) It enhances communication between top and low level managers.
b) It makes communication easy among people from different functions.
c) It makes communication easy among people from the same specialists.
d) It enhances team spirit throughout the organization.

Typically, in a global product structure:

a) adaptation to local needs is high.
b) marketing is the most important function.
c) marketing is subservient to operations.
d) operations is subservient to marketing.

In transnational firms, managers must emphasize:

a) the importance of control systems.
b) formal hierarchies of the firm.
c) dependence between subsidiaries.
d) interdependence between subsidiaries.

The transnational structure is:

a) dominated by hierarchy.
b) not dominated by hierarchy.
c) designed for vertically integrated international firm.
d) appropriate for export firms.

What are the two types of change management?

a) Real change and superficial change
b) Incremental change and circular change
c) Radical change and transformational change
d) Incremental change and transformational change

In high collectivist cultures, leaders need to emphasize:

a) Long-tem implications of the change on the wider community
b) Short- tem implications of the change on the wider community
c) Material implications of the change on the wider community
d) Personal implications of the change on the wider community

The three stages of the change process are:

a) unfreezing, adjustment, and refreezing.
b) adjustment, unfreezing, and refreezing.
c) adjustment, unfreezing, and re-adjustment.
d) adjustment, re-adjustment, and unfreezing.

Transformational change is often carried out:

a) by middle managers.
b) top down.
c) bottom up.
d) after extensive consultation.

Innovation can help to provide a temporary competitive advantage when

a) barriers to entry are high.
b) barriers to imitation are low and intellectual property rights are difficult to enforce.
c) there are few other competitors.
d) barriers to entry are low.

Established firms relative to new firms are better at:

a) all types of innovation.
b) innovation which is competence-enhancing.
c) innovation which is competence-destroying.
d) Innovation which is disruptive.

The fundamental challenge of knowledge transfer in multinational firms is:

a) transferring explicit knowledge across borders.
b) transferring tacit knowledge across borders.
c) creating tacit knowledge in overseas subsidiaries.
d) transferring tacit and explicit knowledge across borders.

Outsourcing of innovation globally is more likely where:

a) Innovations are autonomous
b) Innovations are systemic
c) Innovations are systemic or autonomous
d) Innovations are made by service sector firms
Business across several countries with some decentralization of management decision
making to subsidiaries is
A. Global business.
B. Multinational business.
C. Transnational business.
D. Multi-regional business.

Immobility of labour among nations is

A. Absolute.
B. Relatively of a higher degree than among regions in the same country.
C. Relatively easier than movement within the country.
D. Of the same degree as within the country.

By entering into international business, a firm expects an improvement in

A. Marketing.
B. All spheres of marketing, operation and finance simultaneously.
C. Any or all spheres of marketing, operation and finance.
D. Finance only.

Immobility of labour among nations is

A. Absolute.
B. Relatively of a higher degree than among regions in the same country.
C. Relatively easier than movement within the country.
D. Of the same degree as within the country.

Uneven distribution of natural resources

A. is the only cause for international business.
B. is the major factor for international business.
C. is among the major factors for international business.
D. is not a cause for international business.

The following factor does not differentiate the international business from domestic
business
A. different currencies
B. product quality
C. product mobility
D. trade policies

What is the opposite of Ahead?

Re-award
Synonym
Antonyms
None

The study of societies, which helps us learn about human and the activities, is referring
as:
Anthropology
Sociology
Philosophy
Non

Economics is concerned with allocation and distribution of:

Unlimited Resources
Scarce resources
Natural resources
Plentiful Resources

Management course have a rich ……from humanities and social sciences.

Heritage
Legacy
Entailment
None

Division of labor helps in

Increase workers
Increase productivity
Efficacy
None

Industrial revolution substitute

Employee
Products
Machines
All of these

Fredrick Winslow Taylor principles of scientific management was published

1930
1915
1911
1811

Decrease leading and controlling activities are called?

Teacher
Manager
Member
Employee

Emphasis human on the human behavior factor in ——— of organization

a) Management
b) Functioning
c) Performance
d) None of these

Hawthorne studies had a impact ——-on the direction of management beliefs

a) Individual
b) Dramatic
c) Bad
d) Good

Entrepreneur means
a) skills for innovation
b) a person who organize business
c) a promote in the industry
d) None of these

The quantitative approach has been labeled operations_______science.

a. research
b. management
c. statistical
d. research or management

Some of our current management_______can be directly traced to the contributions of

general administrative theorists.
a. thoughts
b. feelings
c. emotions
d. ideas and practices

_____was an attempt to formulate on ideal prototype for designing organizations.

a. weber’s bureaucracy
b. robert Mcnamora
c. charles
d. early aduocales

_____for instance, is a technique that managers use to improve resource allocation

decisions.
a. linear programming
b. non-linear programming
c. variable
d. frequency

The line of authority from tap management to lowest tanks is:

a. esprit de crops
b. scalar chain
c. equity
d. order

Which of the following is not a reason why the division of labor enhances productivity?
a.       It increases worker skill and dexterity.
b.      It saves time lost in changing tasks.
c.       It encourages labor-saving inventions.
d.      It requires strict management control over worker time and motion.

General administrative theory focuses on ________________.

a.       the entire organization
b.      managers and administrators
c.       the measurement of organizational design relationships
d.      primarily the accounting function
An example of early uses of the functions of management is the _______________.
a. development of gunpowder
b. arsenal of Venice where ships were built
c. Artist’s Revolution in 1803
d. War of 1812

The major contribution of the Industrial Revolution was the substitution of ________ for
human power.
a. electricity
b. water power
c. machine power
d. critical thinking

Which of the following is not one of the four management approaches that grew out of
the first half of this century?
a. scientific management
b. general administrative
c. organizational behavior
d. systems approach

Which of the following phrases is most associated with scientific management?

a. management relations
b. one best way
c. supply and demand
d. quality control

The primary issue that aroused Taylor to create a more scientific approach to
management was ______________.
a. worker efficiency
b. worker effectiveness
c. worker absenteeism and turnover
d. workplace safety

A “therblig” concerns what scientific management workplace issue?

a. optimum temperature for workplace efficiency
b. basic hand motions
c. optimum speed for basic motions
d. weight/movement ratios

General administrative theory focuses on ________________.

a. the entire organization
b. managers and administrators
c. the measurement of organizational design relationships
d. primarily the accounting function

Which of the following is not one of Fayol’s principles of management?

a. division of work
b. unity of command
c. discipline
d. equality

Which of the following approaches to management has also been labeled operations
research or management science?
a. the qualitative approach
b. the quantitative approach
c. the experimental approach
d. the theoretical approach

Reaching toward an objective or striving to meet a mission statement would fall into
what part of management?
a.Planning
b.Directing
c.Controlling
d.Staffing

Which level of management is responsible for establishing a vision for the organization,
developing broad plans and strategies, and directing subordinate managers?
A) first level managers
B) middle managers
C) executive managers
D) second level managers
Which level of management is responsible for implementing programs that are intended
to carry out the broader objectives of an organization set by executives?
A) supervisory managers
B) middle managers
C) first level managers
D) chief financial managers

A manager who possesses knowledge of the processes, equipment, and potential

problems of an industry would possess what type of managerial skill?
A) technical
B) administrative
C) interpersonal
D) organizational

The ability of a manager to interface and work effectively with individuals and groups is
descriptive of what type of managerial skill?
A) technical
B) administrative
C) interpersonal
D) organizational

By exceeding the monthly marketing budget set for a company, a manager would fail to
meet which type of performance measure?
A) quantity
B) quality and workmanship
C) cost and budget control
D) customer satisfaction

Which management function involves measuring results, comparing results to

expectations, and taking corrective action?
A) planning
B) organizing
C) leading
D) controlling
Which type of issues are first level managers routinely influenced by?
A) long range issues
B) short range issues
C) strategic issues
D) shareholder issues

Which of the following characterize a manager as being efficient?

A) They use a minimum amount of resources for the amount of outputs produced.
B) The devote a large amount of time to planning
C) They achieve their goals.
D) They interview, select, and train people who are most suitable to fill open jobs.

Which management principle states that work should be divided so that each person
will perform a specialized portion?
A) division of work
B) chain of command
C) unity of direction
D) unity of command

In management, the various roles that managers are called on to perform are defined in
which process?
A) management process
B) executive process
C) business process
D) supervisory process

Which type of managers are responsible for reporting to middle managers?

A) employees
B) managers
C) executive managers
D) second level managers

Which of the following is not an example of a decisional role?

a. resource allocator.
b. disturbance handler.
c. negotiator.
d. figurehead.

According to Mintzberg, managerial roles can be broken down into interpersonal,

informational, and
 a. liaison.
b. decisional.
c. technical.
d. conceptual

The titles Chairman, CEO and COO are examples of:

a. top management.
b. middle management.
c. first line management.
d. entrepreneur.

Managers are judged by:

a.What they get others to do
b.Their personality
c.What they do
d.How fast they work

As a manager, you cannot evaluate:

a.The performance of the employee
b.The behavior of the employee
c.The risk taking characteristics of the employee
d.The attitude of the employee

Which statement about power is true?

a.Authority gives power
b.Power can be delegated
c.Power must be earned
d.Power is given through the legitimacy of the position
Which style of management would be most effective in an emergency situation?
a.Autocratic
b.Consultative
c.Delegating
d.Participating

Which of the following is a function of management?

a.Doing
b.Staffing
c.Sampling
d.Maintaining

The dominant view in management theory and society in general is that managers are
directly responsible for an organization's success or failure. We'll call this perspective
--------- view of management
A Omnipotent view
B Symbolic view
C Landscape
D none

It's assumed that differences in an

organization's efficiency are due to the decisions and actions of its --------
A employees
B clients
C managers
D both a and b

The symbolic view says that a manager's ability to affect outcomes is influenced and
constrained by ---------- factors.
A internal factors
B external factors
C environment factors
D none
According to the symbolic view, managers have a ---------effect on organizational
outcomes
A no effect
B unlimited
C limited

Internal constraints that restrict a manager's decision options exist within every
organization. These internal constraints arise from -----------
A the organization's culture
B customers
C none
D both a and b

----------------- is a system of shared meaning and beliefs held by organizational

members
A environment
B organizational culture
C none
D all of the above

Research suggests that there are --------- dimensions that capture the essence of an
organization's culture.
A5
B2
C7
D1

As an organization's culture becomes stronger, it has

------------- impact on what managers do.
A an increasing impact
B no impact
C decreasing impact
D variable impact

In---------cultures the key values are deeply held and widely

shared—have a greater influence on employees than do weak cultures
A weak cultures
B strong cultures
C moderate
D old cultures

Some organizations do not make clear what is important and what is not; this lack of
clarity is a characteristic of weak cultures
A organizations
B people
C directors
D employees

The original source of ----------- culture usually reflects the vision or mission of the
organization's founders
A environmental
B manager’s culture
C organization's
D country

Culture is transmitted to employees in a number of ways. The most significant

are stories, rituals, symbols, and ----------.
A internet
B language
C all of above
D none

The term external environment refers to forces and institutions outside the organization
that potentially can --------- the organization's performance.
A affect
B do nothing
C both a and b

The -------- environment includes those constituencies that have a direct and immediate
impact on managers' decisions and actions and are directly relevant to the achievement
of the organization's goals.
A sociocultural
B specific
C neutral
D general

Organizations exist to meet the needs--------

A personal
B suppliers
C customers
D all above options

The term suppliers does not include--------

A banks
B Stockholders
C insurance companies
D managers

All organizations have --------------- competitors.

A Three
B one or more
C two only
D none

Occupational Safety and Health Act of 1970, requires employer to provide a working
environment free from hazards to-------
A company
B health
C society
D investors

Organizations spend a great deal of time and money to meet governmental regulations
A meet
B escape from
C both a and b
D skip

The most rapid changes during the past quarter-century have

occurred in ----------
A sociocultural conditions
B technology
C demographic conditions
D none of above

The personality measures of strength of a person's convictions is called;

A:value
B: ego strength
C: locus of control

2: The personality attribute that measures the degree to which people believe thy
control their own fate is called;

A:value

B: ego strength

C:locus of control

people with internal locus of control believe that they;

A: control their own destinies
B: can’t control their own destinies
C: less consistent in moral judgment

external locus of control believes on;

A: luck
B:value
C: ego strength

the measure of independence from outside influences is called;

A:value
B: stage of moral development
C: locus of control

formal rules and regulations reduces;

A: ambiguity
B:value
C: ego

job descriptions and written codes are example of ;

A: informal ethics
B: formal ethics
C: unformal ethics

how many levels of moral development are ;

A:3
B:2
C:1
the first level of moral development is;
A: principled level
B: conventional level
C: pre-conventional level

How many stages are involved in moral development?

A:5
B:6
C:3

rules and regulation that define right and wrong are called;
A: Ethics
B: Etiquettes
C: humor

which method is used in utilitarian view of ethics;

A: quantitative method
B: qualitative method
C: cognitive method

integrative social contracts theory is concerned with;

A: Empirical and normative factors
B: legal rules and regulations
C:out comes or consequences

The recognition of close link between organization decisions, activities and it's impact
on natural environment is referred as;
A: Dark green approach
B: greening of Management
C: Dement of Management

How many purposes of shared values are?

A:3
B:2
C:4

The capacity of a firm to adopt to changing societal conditions is referred as;

A: social responsiveness
B: social responsibility
C: social obligation

The obligation of business to meet its economic and legal responsibilities is called ;
A: Business approach
B: Social obligation
C: firm’s report

The classic view of social responsibility deals with ;

A: Minimize profit
B: controlled profit
C: maximize profit

A formal statement of an corporation's primary value and ethical rules it referred as;
A: code of ethics
B: corporation ethics
C: Ethics
How many factors of issue intensity are ;
A:5
B:6
C:7

How many steps are involved in decision making process ;

A:8
B:6
C:5

The second step; in decision making process is ;

A: identify a problem
B: Identify decision criteria
C: Analyzing alternatives

Decision making is synonymous with :

A: leading
B: Organizing
C: Managing

The subconscious process of decision making on basis of experience is called ;

A: Personal decision making
B: Input decision making
C: Subconscious decision making

Problem which are new and for which info is incomplete is called ;
A: poorly structured problem
B: non programmed problems
C: structured problem

non-recurring decisions are:

A: programmed decisions
B: non-programmed decisions
C: structured decisions

The ideal situation for decision making is one of;

A: Risk
B: Certainty
C: uncertainty

The condition in which decision maker is able to estimate the outcome is referr to:
A: Risk
B: Certainty
C: uncertainty

The optimistic manager follows ;

A: maximin choices
B:Maximax choices
C: None

The pessimist manager follow

A: maximin choice
B: Maximax choices
C: both

When you are not certain about outcomes the situation called ;
A: Certainty
B: Risk
C: uncertainty

concept style decision maker will look;

A: many alternatives
B: long run
C: both

Which decision maker style make fast decisions ;

A: Conceptual style
B: Directive style
C: Analytic style

the situation in which you are sure about the outcome of every alternatives;
A: Risk
B: uncertainty
C: certainty

A series of interrelated sequential steps that manager use is called ;

A: Rule
B: Procedure
C: Policy

straightforward problems are ;

A: well-structured problems
B: Familiar problem
C: Programmed problems

working under the assumptions of rationality is;

A: Rationality
B: Bounded rationality
C: Logical Rationality

Managerial designs assumed to be ;

A: Rational
B: logical
C: Fair

In rational decisions making; cost constraints

A: Unambiguous
B: Exist
C: Clear
Decision making with limited information refer to ;
A: uncertainty
B: certainty
C: risk

_____ involves defining the organizational goals, establishing strategies for achieving
those goals and developing plan to integrate and coordinate work activities.
A: Plans
B: Goal
C: Objectives
D: Performance

Organizational plans can be classified on the basis of all of the following characteristics,
except on the basis of their ________.
A: Breadth
B: Attainability
C: Specificity
D: Frequency of use

_____ are desired outcomes or targets.

A: Goals
B: Plan
C: Performance
D: Objectives

In terms of the planning process, the targets or ends that managers intend to pursue
are known as ________.
A: Goals
B: Plan
C: Performance
D: objectives

_____ goals are those that an organization actually pursues.

A: Real
B: Stated
C: Directional
D: specific

What time frame does a short-term plan cover?

A: One year or less
B: Three years
C: Two years
D: Four years

a ________ plan is clearly defined and leaves no room for interpretation.

A: Specific plan
B: Directional plan
C: Stated plan
D: Long term plan

_______ plan is designed to be used when the same situation occurs repeatedly.
A: Standing
B: Single use plan
C: Directional plan
D: Operational plan

a ________ plan is intended to meet the needs of a unique situation

A: Single-use
B: Standing plan
C: Directional plan
D: Strategic plan

______ is a broad statement of an organization's purpose that provides an overall guide

to what its members think is important.
A: Mission
B: Project
C: Proposal
D: preamble
All of the following would be important elements of management by objectives (MBO)
EXCEPT the ________.
A: autonomous establishment of specific objectives by department members
B: performance feedback
C: explicit time period
D: participate decision making

Which of the following statements is true concerning planning in dynamic

environments?
A: In an uncertain environment, managers should develop plans that are specific, but
flexible
B: Develop specific goals
C: Evaluate available resources

Characteristics of well design goals

A: Clear as to a time frame
B: Written down
C: Measurable and quantifiable
D: All of the above

Which of the following is the first step a manager should take during the goal-setting
process?
A: Reviewing the organization's mission or purpose
B: Write down goals and communicate
C: Determine goal
D: all

Goals are set at the top and then broken down into subgoals for each level of
organization
A: Traditional goal setting
B: MBO
C: Mission

MBO programmed increase

A: Employee performance
B: Organizational productivity
C: Both
D: None

Factor that affects planning include

A: Level in organization
B: Degree of environmental uncertainty
C: Length of future commitment
D: All

---------Planning dominates managers planning efforts at low levels of organization

A: Directional
B: Operational
C: Strategic
D: Organizational wide

Which of the following is the last step in goal setting?

A: Determine the goals individually or with input from others
B: Review the organization mission or purpose
C: Write down the goals and communicate them to all who need to know
D: Review result whether goals are being met

Top executives are mainly involved in__________ planning.

A: Functional
B: Operational
C: Strategic
D: Departmental

Set of managerial decisions and actions that determines the long run performance of an
A: organization.
B: Strategic management
C: Management by objective
D: None
_____ are positive trends in the external environment
A: Resources
B: threats
C: Weakness
D: Opportunities

An analysis of organization involves strength; weakness opportunities and threats are

known as:
A: SWOT analysis
B: Analysis of organizational resources
C: Analysis of capabilities
D: None

When sets an organization apart from its competitors is known as its:

A: Core competencies
B: Corporate strategy
C: Competitive advantages
D: Business model

When an organization sets out to be the lowest cost producer in its industry, its
following a___
A: Leadership strategy
B: Corporate strategy
C: Differential strategies
D: Focus strategy
The company that seeks to offer unique products that are widely valued by customers is
following a
A: Corporate strategy
B: Differential strategy
C: Focus strategy
D: Leadership strategy

To determine how to support the business level strategy

A: Functional level strategy
B: Leadership strategy
C: Focus strategy
D: Differential strategy

The single business that are independent and that formulate their own strategies are
called:
A: Strategic business units
B: Competitive advantages
C: Business level strategy
D: Leadership strategy

Strategy seeks to determine how an organization should compete in each of its

businesses
A: Business-level strategy
B: Strategic business units
C: Functional level strategy
D: Focus strategy

In term of BCG Boston Consulting Group matrix, a question marks has___market shares
____
A: Anticipate growth rate.
B: High, high
C: High, low
D: Low, high

A corporate-level strategy design to address organizational weakness that are leading to

performance declines
A: Retrenchment strategy
B: Focus strategy
C: Functional level strategy
D: Business level strategy

When a company grows by merging with or acquiring firms in different but related
industries.
A: Related diversification
B: Unrelated diversification
C: Core competencies
D: none

When a company grows by merging with or acquiring firms in different and unrelated
industries.
A: Unrelated diversification
B: Related diversification
C: Core competencies
D: none

A corporate level strategy that seeks to increase the level of organization operations.
A: Growth strategy
B: Focus strategy
C: Differential level strategy
D: Business level strategy

A corporate level strategy characterized by an absence of significant change.

A: Stability strategy
B: Business level strategy
C: Focus strategy
D: Differential strategy

To determine what business a company should be in or wants to be in.

A: Corporate level strategy
B: Business level strategy
C: Focus strategy
D: Differential strategy

In term of external/internal analysis, the use of obsolete technology in an outdated

facility would be considered a:
A: Weakness
B: Strength
C: Resource
D: Opportunity
In term of internal or external analysis, loyal employees, low turnover, and a well-trained
work force would be example of a:
A: Threat
B: Strength
C: Weakness
D: Opportunity

If organizational capabilities or resources are exceptional or unique:

A: Core competencies
B: Business strength
C: Weakness
D: None

The final step in strategic management involves:

A: Implement strategy
B: Evaluate result
C: Formulate strategy
D: Identify strength and weakness