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Principles of Management 2020 CLEP

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11. Preparation of which of the following is the most logical first step in developing an annual operating plan? (A) A sales forecast by product (B) A production schedule by product (C) A flow-of-funds statement by product (D) A plant and equipment requirement forecast (E) A pro forma income statement and balance sheet

(A) A sales forecast by product

29. Which of the following is the primary purpose of the management-by-objectives (MBO) approach? (A) Aligning goal setting and planning (B) Creating a dynamic and complex work environment (C) Reducing employee resistance to change (D) Implementing standard operating procedures (E) Implementing a decision rule to respond to a designated problem

(A) Aligning goal setting and planning

9. Which of the following best describes a system that requires subassemblies and components to be manufactured in small lots and delivered as needed to the next stage of production? (A) Just in time (JIT) (B) Small batch inventory (SBI) (C) Inventory readiness (IR) (D) Inventory preparedness (E) Integrated preparedness (IP)

(A) Just in time (JIT)

35. Which of the following oversees the transformation process that converts inputs such as labor and raw into outputs such as goods and services? (A) Operation management (B) Control management (C) Strategic management (D) Human resource management (E) Project management

(A) Operation management

49. Which of the following describes the most favorable situation for a leader of a group? (A) The group has high group cohesiveness and positive group performance norms (B) The group has high group cohesiveness and negative group performance norms (C) The group has low group cohesiveness and positive group performance norms (D) The group has low group cohesiveness and negative group performance norms (E) The group has both moderate cohesiveness and moderate performance norms

(A) The group has high group cohesiveness and positive group performance norms

14. Which of the following is most commonly used to measure the total productivity of a company'? (A) The ratio between total outputs and total inputs (B) The ratio between fixed costs and variable costs (C) The ratio between contribution margin and total revenue (D) The ratio between the break-even point and total output (E) The ratio between total inputs and total capital

(A) The ratio between total outputs and total inputs

28. Which of the following terms best describes leaders who guide or motivate their followers in the direction of established goals by stressing rewards and the consequences of not conforming to expectations? (A) Transactional (B) Transformational (C) Charismatic (D) People-oriented (E) Informal

(A) Transactional

73. The use of transactional leadership is based on the concept of which of the following? (A) Using rewards and coercive power (B) Stressing intrinsic motivators (C) Creating team-based goal setting (D) Using peer-based performance evaluations (E) Implementing employee involvement plans

(A) Using rewards and coercive power

75. Resolving conflict through collaboration requires that parties do which of the following? (A) Work cooperatively (B) Have a third party intervene (C) Involve a supervisor in the process (D) Establish predetermined outcomes (E) Prepare written plans

(A) Work cooperatively

65. Large organizations are likely to structure their work operations and personnel in any of the following ways EXCEPT (A) accounting (B) divisional (C) geographic (D) market (E) product

(A) accounting

43. Praise received from an employee's peers is best described as an example of (A) an extrinsic reward (B) an intrinsic reward (C) low valence (D) high instrumentality (E) high directive leadership

(A) an extrinsic reward

6. The number of subordinates who directly report to a superior refers to the manager's (A) span of control (B) organizational role (C) organizational structure (D) chain of command (E) general staff

(A) span of control

31. Which of the following terms best describes a corporation's sexual harassment policy? (A) A single-use plan (B) A standing plan (C) A strategic plan (D) A short-term plan (E) A specific plan

(B) A standing plan

60. Which of the following is most likely to result from the use of flowcharts in planning? (A) A guarantee that work will progress according to schedule (B) A visual sequencing of activities (C) A chart useful for comparing cash flow during two different quarters (D) A scheduling process (E) A combined sequencing and scheduling plan

(B) A visual sequencing of activities

66. The span of control most appropriate in a given organization is primarily influenced by which of the following? (A) Types of services or products being produced (B) Amount of supervision needed by subordinates (C) Amount of authority given to a supervisor (D) Number of hierarchical levels within the organization (E) Presence of work teams

(B) Amount of supervision needed by subordinates

2. A homebuilder dominates a market by offering attractive options, higher quality, and value-added services. Which of the following competitive strategies has the homebuilder adopted? (A) Cost leadership (B) Differentiation (C) Price leadership (D) Generic (E) Design focus

(B) Differentiation

39. Which of the following are most likely to cause a team to avoid groupthink? I. The team holds a second-chance meeting. II. Outside experts are invited to observe and react to the group process. III. The team leader expresses an opinion at the outset of the meeting to save time. (A) I only (B) I and II only (C) I and III only (D) II and III only (E) I, II, and III

(B) I and II only

79. Job enrichment can be an effective tool to achieve which of the following? (A) Better communication (B) Increased job responsibility (C) Improved work relations (D) Teamwork (E) Shared decision making

(B) Increased job responsibility

23. A person who believes that the ends justify the means is best described as (A) self-confident (B) Machiavellian (C) authoritarian (D) having cognitive dissonance (E) having an internal locus of control

(B) Machiavellian

38. Which of the following best describes the situation in which an employee arrives for work on time in order to avoid being placed on probation for a second time? (A) Positive reinforcement (B) Negative reinforcement (C) Extinction (D) Intermittent reinforcement (E) Cognitive learning

(B) Negative reinforcement

71. Intrinsic rewards can be classified as rewards that do which of the following? (A) Allow the employee to establish flexible working hours. (B) Provide a sense of achievement and accomplishment. (C) Create work coordination among all employees. (D) Improve communication effectiveness. (E) Allow greater span of control.

(B) Provide a sense of achievement and accomplishment.

33. Which of the following best describes a type of planning in which multiple scenarios are developed to test possible future outcomes? (A) Queuing theory (B) Simulations (C) Linear regression (D) Marginal profits (E) Project management

(B) Simulations

34. Which of the following describes the critical path in a Program Evaluation and Review Technique (PERT) process? (A) Parts that require the most costly materials (B) The most time-consuming sequence of events and activities (C) The shortest route to the project completion (D) The central guideline for quality control (E) The property insurance

(B) The most time-consuming sequence of events and activities

17. In a labor negotiation, if a third party has the power to determine a solution to a labor dispute between two parties, the negotiation is known as (A) a grievance (B) an arbitration (C) a conciliation (D) a mediation (E) a concession

(B) an arbitration

15. The practice in large companies of establishing autonomous divisions whose heads are entirely responsible for what happens in the division is referred to as (A) management by exception (B) decentralization of authority (C) delegation of authority (D) integration (E) informal organization

(B) decentralization of authority

54. The power base that relies on the use of knowledge to persuade is best described as (A) rewards (B) expert (C) referent (D) coercive (E) legitimate

(B) expert

19. Beatrice is a full-time employee who is permitted to arrange her schedule so that she works only four days a week and does not travel during rush hour. This is an example of Beatrice's employer (A) applying the Civil Rights Act, Title VII (B) scheduling flextime (C) engaging in sexual discrimination (D) encouraging low productivity (E) enhancing compensation

(B) scheduling flextime

53. "You are always late to meetings and this will have to change!" Which of the following best describes the comment above by a manager to an employee? (A) Proxemics (B) Constructive feedback (C) A general overspecific comment (D) A specific overgeneral comment (E) Nonverbal communication

52. Which of the following styles of leadership is most likely to be effective with workers who have experience and are professionally oriented? (A) Supportive (B) Task-oriented (C) Achievement-oriented (D) Mentoring (E) Authoritarian

61. Which of the following is a deterrent to "escalation of commitment"? (A) A desire to justify earlier decisions (B) Organizational politics (C) An efficiency "reality check" (D) The Abilene paradox (E) A cultural emphasis on persistence

25. If a manager commits a halo error in performance appraisal, the manager may have done which of the following? (A) Based assessment on most recent performance rather than an entire period. (B) Based assessment on an entire period performance rather than most recent. (C) Bascd assessment on a single attribute of employees' performance. (D) Given every employee the same rating of "average." (E) Failed to give feedback to employees about their performance.

21. Which of the following management activities is most typically described as a controlling function? (A) Goal setting (B) Purchasing (C) Budgetary review (D) Staffing (E) Recruiting

24. In which of the following situations are groups most effective? (A) Cohesive groups with groupthink (B) Noncohesive groups without groupthink (C) Cohesive groups in alignment with organizational goals (D) Noncohesive groups in alignment with organizational goals (E) Cohesive groups not in alignment with organizational goals

26. Which of the following best describes a team that brings together organizational members from various areas such as marketing, engineering, human resources, and production to work on a task? (A) Command (B) Self-managed (C) Cross-functional (D) Restrictive (E) Informal

36. An employee manual is given by a supervisor to employees reporting to that supervisor. The manual outlines attendance policies. This is an example of which of the following methods of developing norms in groups? (A) First behavior precedents (B) Secondary behavior (C) Explicit statements from an authority figure (D) Critical events in the team's history (E) Carryover from other experiences

80. Social Security, unemployment benefits, and workers' compensation are benefits required by law. If a company has 120 employees, what other benefit does federal law require a company to provide? (A) Health insurance only (B) Paid vacations only (C) Family and medical leave (D) Both health insurance and paid vacations (E) Flextime

22. Which of the following personality traits best describes individuals who can adapt and adjust their behavior to external factors? (A) Low self-esteem (B) External locus of control (C) High self-monitoring (D) Low authoritarianism (E) High authoritarianism

74. Group or team cohesiveness is usually influenced by which of the following? (A) Employee incentive systems (B) Goal-setting processes (C) Identification with the group by its members (D) Size of the organization (E) Type of organizational structure

81. Which of the following best describes managerial ethics? (A) It is the social obligation that the individual manager has to fulfill. (B) It is a statement of the social responsibility of the organization. (C) It is the standard of conduct that guides a person's decisions and behavior. (D) It is the mission statement of the organization. (E) It is a behavior that conforms to legal principles of justice.

76. Coaching as a leadership technique is most likely to work when which of the following exists? (A) Employees are well trained. (B) Job descriptions are valid. (C) Performance-development needs are known. (D) A performance appraisal process is used. (E) Training programs are offered.

30. Which of the following is best defined as a process that involves defining organizational objectives and goals, establishing an overall strategy, and developing a hierarchy of plans to integrate activities? (A) Manipulating (B) Leading (C) Planning (D) Managing by objectives (E) Controlling

1. Which of the following words is NOT a step in the management process? (A) Planning (B) Leading (C) Producing (D) Controlling (E) Organizing

47. If individual contributions in a group project are not evaluated, which of the following is likely to occur? (A) Synergy (B) Task significance (C) Social loafing (D) The Leavitt effect (E) Vertical loading

41. Which of the following models classifies products as stars, question marks, cash cows, or dogs? (A) Porter's five forces model (B) Theory X (C) The Boston Consulting Group Matrix (D) Theory Y (E) Kanban

40. If a manager announces a casual-dress policy on Fridays and then comes to work dressed casually on the following Friday, this is an example of (A) planning (B) organizing (C) leading (D) controlling (E) negative reinforcement

46. If jobs are designed so that each worker assembles a different part of a product on an automated assembly line, the job design is most likely to (A) provide high levels of intrinsic rewards (B) be highly challenging (C) make it easy to train workers (D) be highly satisfying (E) demand creativity from the workers

10. Frederick Taylor is considered a pioneer in the school of management referred to as the (A) management process school (B) empirical school (C) scientific management school (D) behaviorist school (E) social system school

45. When a company adopts telecommuting, which core job characteristic is likely to be influenced the most? (A) Skill variety (B) Task identity (C) Task significance (D) Autonomy (E) Job feedback

(D) Autonomy

68. Which of the following quality tools utilizes a visual depiction of a process to help identify problem areas? (A) Vector diagram (B) Histogram (C) Scatter diagram (D) Cause-and-effect diagram (E) Pareto chart

(D) Cause-and-effect diagram

13. Which of the following is a conflict-resolution practice that seeks to satisfy both parties in a conflict? (A) Avoidance (B) Stipulation (C) Competition (D) Collaboration (E) Appeal to authority

(D) Collaboration

59. Which of the following is the primary concern of employees responsible for strategic planning in a company? (A) Monitoring daily cash flow (B) Determining the contribution each subunit should make to the overall corporation (C) Determining how to accomplish specific tasks with available resources (D) Determining how to pursue long-term goals with available resources (E) Preparing the annual statement

(D) Determining how to pursue long-term goals with available resources

72. The best tangible measurement of leadership effectiveness is which of the following? (A) Financial success (B) Turnover ratios (C) Training and development rates (D) Employee job performance (E) Employee morale

(D) Employee job performance

20. According to Maslow, the need to feel genuinely respected by peers, both in and out of the work environment, is included in which of the following need classifications? (A) Physiological (B) Safety (C) Stability (D) Esteem (E) Self-actualization

(D) Esteem

69. Outsourcing allows an organization to have which of the following? (A) Higher employee motivation (B) Improved labor-management relations (C) Lower accident rates (D) Greater flexibility in staffing (E) Increased control over employees

(D) Greater flexibility in staffing

55. Which of the following is the most accurate description of a grapevine in an organization? (A) It is a constant source of disruptive information. (B) It follows the chain of command. (C) It can be suppressed once it is recognized. (D) It plays an important role in organizations. (E) Most managers believe that it is a positive source of information.

(D) It plays an important role in organizations.

58. Which of the following pairs of functions of management are most closely interdependent? (A) Staffing and organizing (B) Staffing and controlling (C) Planning and leading (D) Planning and controlling (E) Disciplining and recruiting

(D) Planning and controlling

64. According to Fiedler's contingency studies, for organizations that were considered "moderately favorable" in terms of leaders' authority, task definition, and leader-member relationships, which of the following is the most effective style for the leader to have? (A) Country club (B) Team (C) Selling (D) Relationship motivated (E) Telling

(D) Relationship motivated

5. Which of the following can be best determined by consulting an organization chart? (A) The size of the company (B) The distribution of company resources (C) The nature of work performed (D) The connections of positions (E) The quality of management of the firm

(D) The connections of positions

62. Which of the following is most likely to be a major advantage of group-aided decision making? (A) Social pressure can drive the decision. (B) Goal displacement and hidden agendas can occur. (C) Groupthink may occur. (D) The likelihood that the decision will be accepted increases. (E) It frequently saves both time and money.

(D) The likelihood that the decision will be accepted increases.

82. A manager decides to lay off 10 percent of the workforce and justifies the action by noting that 90 percent still have jobs and the company will remain solvent. This manager has utilized which of the following views of ethics? (A) Rights view of ethics (B) Theory of justice view of ethics (C) Integrative social contracts view of ethics (D) Utilitarian view of ethics (E) Golden rule view of ethics

(D) Utilitarian view of ethics

70. Requiring a prospective employee to demonstrate the ability to do a specific task during the screening process is defined by which type of test? (A) Achievement (B) Aptitude (C) Assessment (D) Work sampling (E) Spatial

(D) Work sampling

18. A type of control device for assessing the progress of planned activities and the expenditure of resources allocated to their accomplishments is referred to as (A) a strategic plan (B) an organizational chart (C) a tactical plan (D) a budget (E) a proposal

(D) a budget

12. A large span of control throughout an organization invariably results in (A) low morale (B) high morale (C) an excess workload for each manager (D) a flat (horizontal) organizational structure (E) a tall (vertical) organizational structure

(D) a flat (horizontal) organizational structure

8. The choice of organizational structure to be used in a business should be (A) made by mutual agreement among all the people affected (B) made by organization specialists rather than managers (C) subject to definite and fixed rules (D) based on the objectives of each individual business (E) based on consideration of the type of organizational structures used by competitors

(D) based on the objectives of each individual business

50. In their classic study of the bases of social power, John R. P. French and Bertram Raven explicitly identified all of the following sources EXCEPT (A) referent (B) expert (C) coercive (D) information (E) reward

(D) information

42. If George blames new software for his group's poor performance in the most recent quarter, but attributes the group's success in the prior quarter to his outstanding managerial skills, he is most likely exhibiting (A) projection (B) selective perception (C) fundamental attribution error (D) self-serving bias (E) Pygmalion effect

(D) self-serving bias

37. The behavior of young athletes when they imitate the way they see professional athletes celebrate on television is most likely explained as (A) classical conditioning (B) operant conditioning (C) cognitive learning (D) social learning (E) behavior modification

(D) social learning

67. The extensive use of work teams in an organization is most likely to occur under which of the following circumstances? (A) Control is centralized by top management. (B) The management style is primarily autocratic. (C) Employees are unmotivated. (D) Supervisors have a narrow span of control. (E) Employee involvement is a management goal.

(E) Employee involvement is a management goal.

51. If an investor buys a stock based on the recommendation of a broker because the broker's previous recommendations have been profitable, the broker possesses which type of power? (A) Referent (B) Legitimate (C) Informal authority (D) Charismatic (E) Expert

(E) Expert

7. Which of the following best illustrates informal organization? (A) Line authority, such as that of the field marshal and battalion commander in the military (B) Staff authority, such as that of personnel or cost control in manufacturing (C) Functional authority, such as corporate supervision of the legal aspect of pension plans in branch plants (D) Groupings based on position titles (E) Groupings based on such factors as technical ability, seniority, and personal influence

(E) Groupings based on such factors as technical ability, seniority, and personal influence

44. Which of the following procedures is (are) appropriate when disciplining an employee? I. Advising the employee of what he or she has done wrong. II. Advising the employee of what he or she does well. II. Disciplining the employee in private. (A) I only (B) II only (C) I and lII only (D) II and IIl only (E) I, II, and II

(E) I, II, and II

4. Decentralization tends to be encouraged by which of the following business trends? I. Product diversification II. Telecommuting III. Geographical expansion of operations (A) I only (B) II only (C) III only (D) I and III only (E) I, II, and III

(E) I, II, and III

56. Which of the following business situations is most appropriate for telecommuting? (A) Workers thrive on competition. (B) Decisions and actions are predetermined. (C) Decisions rely on negotiation and social interaction. (D) There is an oversupply of workers. (E) Individual productivity is of primary importance.

(E) Individual productivity is of primary importance.

3. Which of the following is a correct statement about controlling as a management function? (A) It can be performed independently of planning. (B) It is performed only by the controller of an organization. (C) It is more prevalent in business than in government. (D) It assumes a certain approach to motivating employees. (E) It must be closely related to planning in order to work efficiently.

(E) It must be closely related to planning in order to work efficiently.

27. Which of the following is NOT an input, according to equity theory? (A) Effort (B) Experience (C) Education (D) Seniority (E) Pay incentives

(E) Pay incentives

16. Which of the following control techniques is most likely to emphasize the importance of time? (A) Break-even charts (B) Physical standards (C) Quality circles (D) Variable budgeting (E) Program Evaluation and Review Technique (PERT)

(E) Program Evaluation and Review Technique (PERT)

32. The preparations that a small town might make for a visit by the President of the United States would be considered what type of plan? (A) Strategic (B) Directional (C) Standing (D) Long-term (E) Single-use

(E) Single-use

63. Which of the following basic leadership styles most closely matches the "high structure, low consideration" of the Ohio State leadership studies? (A) Country club (B) Team (C) Selling (D) Relationship motivated (E) Telling

(E) Telling

48. Determining whether membership of a group should be heterogeneous or homogeneous should be most influenced by which of the following factors? (A) The group size (B) Status congruence (C) The organizational setting (D) The goals, rewards, and resources (E) The nature of the task

(E) The nature of the task

78. All of the following are considered steps in the planning process EXCEPT (A) determining the organization's mission (B) establishing goals and objectives (C) formulating strategies (D) implementing strategies (E) measuring performance

(E) measuring performance

77. All of the following criteria are commonly used to evaluate decision-making alternatives EXCEPT (A) ethicality (B) economic feasibility (C) legality (D) practicality (E) popularity

(E) popularity

57. Empowerment opportunities are LEAST likely to be found in which of the following? (A) Participative goal setting (B) Serving as a messenger (C) Delegation of work (D) Self-managed teams (E) Freedom to experiment

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