Principles of Management CLEP

When organizations mandate that managers adhere to company policy when making decisions, the result is that a. managers always make the best decision b. decisions are more consistent from manager to manager c. managers do not have to appeal to higher management for advice d. managers no longer have a need for a decision-making process e. managers do not have to take subordinates into account when making decisions

b. decisions are more consistent from manager to manager

Before a British motor vehicle company can sell its cars with right-side steering to an American partner company, it changes the side of the steering wheel in the car. This partnership is an example of a(n) a. embargo b. joint venture c. exchange rate d. wholly-owned subsidiary e. global strategic partnership

b. joint venture

According to the Blake-Mouton managerial grid model, the authoritarian leadership style is characterized by a. low-level concern with people and low-level concern with production b. low-level concern with people and high-level concern with production c. equal concern with people and production d. high-level concern with people and low-level concern with production e. high-level concern with people and high-level concern with production

b. low-level concern with people and high-level concern with production

In order to be legal, a skills test administered to a job candidate must a. be administered at least twice b. only assess skills that pertain to the job in question c. contain a physical fitness element d. take place at the job site e. contain a polygraph examination

b. only assess skills that pertain to the job in question

The ability of a system to total more than the sum of its parts is known as a. entropy b. synergy c. an open system d. a closed system e. a subsystem

b. synergy

The stage in an organization's change process that involves an awareness of the need for a change and the obstacles that will be involved is known as a. freezing b. unfreezing c. changing d. reinstating e. refreezing

b. unfreezing

An inherent problem with functional authority is that it can defy a. legitimate power b. unity of command c. span of control d. job description e. division of labor

b. unity of command

When an employee has two or more supervisors to whom she is directly accountable, there is a problem with her organization's a. work specialization b. unity of command c. span of control d. job orientation e. mission statement

b. unity of command

5. Which of the following landmark legal cases helped lay a foundation for racial and ethnic diversity in the workforce? a. Plessy v. Ferguson b. McCulloch v. Maryland c. Brown v. Board of Education d. Marbury v. Madison e. Roe v. Wade

c. Brown v. Board of Education

8. Which school of management focuses on the single best way to perform and manage tasks? a. Behavioral b. Quantitative c. Classical d. Contingency e. Quality

c. Classical

Which of the following is the first step in problem solving? a. Identify the causes of the problem b. Identify alternative solutions. c. Define the problem d. Select the best solution e. Evaluate alternative solutions

c. Define the problem

Which of the following refers to a code of organizational conduct that reflects the overall values and principles of a business? a. Organizational structure b. Profitability c. Ethics d. Beliefs e. Action plan

c. Ethics

Organizational authority can be delegated from I. manager to manager II. employee to manager III. manager to employee a. I only. b. I and II only. c. I and III only. d. II and III only. e. I, II, and III.

c. I and III only.

6. If a plant manager is told to produce 10,000 units each day, this would be an example of what kind of goal? I. Strategic II. Tactical III. Operational a. I only b. II only c. III only d. I and II only e. I, II, and III

c. III only

A company that is the first to bring the latest trendy garments to the marketplace is most likely to have what kind of structure? a. Mechanistic b. Hierarchical c. Organic d. Bureaucratic e. Formal

c. Organic

Which of the following types of business would mostly likely utilize small-batch production? a. Candy factory b. Auto factory c. Print shop d. Bottling company e. Publishing house

c. Print shop

According to Larry Greiner's organizational development theory, which of the following is NOT one of the stages of growth? a. Creativity b. Direction c. Selection d. Delegation e. Control

c. Selection

Which of the five basic managerial functions is most likely to involve the human resources department? a. Planning b. Controlling c. Staffing d. Leading e. Organizing

c. Staffing

An e-business that charges customers an ongoing fee at regular intervals for unlimited access to products or services is following which type of model? a. Affiliate model b. Transaction fee model c. Subscription model d. Intermediary model e. Performance-based model

c. Subscription model

Which of the following statements about the Hawthorne studies is true? a. The Hawthorne studies validated the classical management theory. b. The first study showed that worker productivity decreased as lighting levels decreased. c. The Hawthorne studies demonstrated that an increase in productivity is a direct result of a worker-friendly supervisory system. d. An increase in productivity is a direct result of working conditions such as adequate lighting and ventilation. e. The Hawthorne studies concluded that social needs of workers are a secondary consideration.

c. The Hawthorne studies demonstrated that an increase in productivity is a direct result of a worker-friendly supervisory system.

Which of the following statements is NOT true about conflicts in the workplace? a. They can challenge employees to expand their thinking on an issue. b. They can promote productive discussions about issues. c. They must result in a win-lose situation. d. They can hinder job performance. e. If not addressed, they can lead to bigger conflicts.

c. They must result in a win-lose situation.

Collective bargaining occurs between which of the following? a. EEOC and employees b. Unions and employees c. Unions and employers d. Union + non-union employees e. EEOC and employees

c. Unions and employers

A formal performance review should be conducted a. daily b. monthly c. annually or biannually d. weekly e. every two or three years

c. annually or biannually

The package that includes an employee's salary and benefits is known as a. performance appraisal b. bonus c. compensation d. payroll e. pension

c. compensation

The Program Evaluation and Review Technique (PERT) process identifies the set of dependent tasks that together take the longest time to complete as the a. chain of command b. decision tree c. critical path d. MIS e. simulation

c. critical path

If a soft drink company is always the first to distribute the latest variety of soda it employs a a. cost leadership strategy b. contingency plan c. differentiation strategy d. single-use plan e. bureaucratic procedure

c. differentiation strategy

Managers who possess the leadership traits of being ambitious and perseverant self-starters are said to have a. skill b. good judgment c. initiative d. expertise e. objectivity

c. initiative

In a dynamic, fast-paced environment, the most efficient way of bringing about improvement in quality would be through a. bureaucracy b. kaizen c. reengineering d. staffing e. strategic planning

c. reengineering

A factory employee performing a single assembly-line task on a repeated basis is an example of a. twinning b. job orientation c. work specialization d. mentoring e. job enlargement

c. work specialization

Which of the following statements about e-mail and the work environment is true? a. E-mail replaces the need for telephone communication. b. There is no place for e-mail in the work environment. c. E-mail slows down the decision-making process. d. Business e-mails should be concise. e. E-mail increases the cost of communication.

d. Business e-mails should be concise.

Upon what types of power does a transactional leader mostly rely? a. Expert and legitimate b. Legitimate and referent c. Reward and referent d. Coercive and reward e. Expert and coercive

d. Coercive and reward

The average manager spends the majority of his or her time engaged in which of the following activities? a. Research b. Inventory Control c. Evaluation d. Communication e. Training

d. Communication

A mechanistic structure would be LEAST likely to have which of the following characteristics? a. Standard operating procedures b. Clearly defined tasks c. Formal channels of communication d. Decentralized control e. High reliance on regulations

d. Decentralized control

Which of the following is NOT typically the responsibility of a supervisor? a. Preparing work schedules b. Assisting new employees with orientation c. Communicating and explaining directives from upper management d. Devising long-term strategic plans for the department e. Allocating human and material resources to projects

d. Devising long-term strategic plans for the department

Which of the following statements about employees in an organization is LEAST often true? a. Employees like to participate in decisions that involve them. b. Employees seek new opportunities on the job. c. Employees welcome the opportunity for increased responsibility. d. Employees are only concerned with their wages. e. Employees want to work on projects that interest them.

d. Employees are only concerned with their wages.

Which of the following statements about flexible scheduling is NOT true? a. Employees can begin work later than other employees. b. Employees can work four-day weeks. c. Employees can avoid high-volume commuting times. d. Employees can make up their weekly schedules as they go along. e. Employee schedules can accommodate their family issues.

d. Employees can make up their weekly schedules as they go along.

A transactional leader may guide her subordinates by I. offering rewards for actions aligned with goals II. punishing undesirable behaviors III. constantly shifting standards a. I only. b. II only. c. III only. d. I and II only. e. I, II, and III.

d. I and II only.

Companies that wish to compete as world-class organizations should acquire which of the following as a demonstration of their maintenance of a high level of quality? a. Performance appraisal b. Financial audit c. Management information systems (MIS) d. ISO 9000 Certification e. Payback analysis

d. ISO 9000 Certification

Which of the following goals is most likely to produce the desired results? a. Do the best job you can. b. Outsell the competition by 8%. c. Work faster. d. Increase sales capacity by 6% while maintaining current staffing levels. e. Reduce mistakes due to low morale.

d. Increase sales capacity by 6% while maintaining current staffing levels.

According to Henry Mintzberg, managerial roles fall into which of the following three categories? a. Monitor, disseminator, and spokesperson b. Figurehead, leader, and liaison c. Entrepreneur, resource allocator, and negotiator d. Informational, interpersonal, and decisional e. Technical, human, and conceptual

d. Informational, interpersonal, and decisional

Which of the following refers to an individual who exposes corporate misconduct? a. Screener b. Social impact manager c. Social entrepreneur d. Whistle-blower e. Executive champion

d. Whistle-blower

All of the following are valid factors in determining the suitability of a candidate for an entry-level job EXCEPT requiring a. a specific type of education b. a certain skills set c. a certain level of experience d. a specific gender e. a certain score on an assessment

d. a specific gender

The physical support system for the economic activities of a country is known as its a. embargo b. tariff c. exchange rate d. infrastructure e. quota

d. infrastructure

The ability to garner the respect and cooperation of employees to achieve an organization's goals is known as a. management b. human resources c. mentoring d. leadership e. initiative

d. leadership

The list of steps that an employee must follow in completing an assigned task is known as a. standards b. policy c. work schedule d. procedure e. responsibility

d. procedure

10. Bureaucracies are NOT characterized by a. hierarchical authority b. formal procedures and rules c. clearly defined division of labor d. prompt decision-making e. promotions based on skills

d. prompt decision-making

The first management position to which most employees will be promoted is that of a(n) a. executive b. intern c. middle-manager d. supervisor e. mentor

d. supervisor

A group of people who work together cooperatively in an effort to achieve a common organizational objective is known as a a. group b. mob c. clique d. team e. grapevine

d. team

Which of the following statements about exportation is true? a. An exporter sells its products to a foreign broker. b. An exporter controls how the foreign broker markets the products. c. A foreign broker cannot damage the image of the exported product. d. Exportation requires a higher financial investment than other international business ventures. e. Exportation is a high-risk method of entering foreign markets.

a. An exporter sells its products to a foreign broker.

The NAFTA regional trading bloc is composed of which of the following? a. Canada, Mexico, and the United States b. Mexico, Nicaragua, and Panama c. Canada, Great Britain, and the United States d. France, Germany, and Italy e. France, Mexico, and Nicaragua

a. Canada, Mexico, and the United States

Which of the following value dimensions emphasizes an institutional or group focus? a. Collectivism b. Power distance c. Uncertainty avoidance d. Individualism e. Rule orientation

a. Collectivism

Which of the following is NOT a reason why a company would consider outsourcing some of its work? a. It does not want to lay off any employees. b. It lacks physical space to hire more in-house workers. c. It does not want to pay benefits to a full-time employee. d. The in-house staff lacks expertise required for a certain assignment. e. It seeks to avoid excessive overtime for in-house workers.

a. It does not want to lay off any employees.

According to Frederick Herzberg's two-factor theory, which of the following would be a hygiene factor? a. Job security b. Achievement c. Recognition d. Responsibility e. Opportunity to grow

a. Job security

Which of the following is a result of employees becoming empowered? a. Management becomes more decentralized. b. Employees are more strictly monitored. c. The organization becomes more centralized. d. Jobs are more narrowly designed. e. The organization is less able to respond to a dynamic environment.

a. Management becomes more decentralized.

Which of the following refers to an individual who promotes the development of an innovative product within an organization? a. Product champion b. Technical innovator c. Design steward d. Venture funder e. Concept architect

a. Product champion

According to the Total Quality Management definition of a customer, who among the following would be considered a customer of a dress manufacturer? a. Salesperson selling the dress b. Dress designer c. Material supplier d. Sewing machine manufacturer e. Zipper distributor

a. Salesperson selling the dress

TQM (Total Quality Management) requires a shift in approach toward control from a. bureaucratic to decentralized b. organic to formal c. decentralized to centralized d. informal to formal e. informal to mechanistic

a. bureaucratic to decentralized

When a manager delegates tasks to her subordinates, it is an example of a. downward communication b. upward communication c. horizontal communication d. nonessential communication e. diagonal communication

a. downward communication

In any organization, a force of change directed toward solving a problem is known as a a. driver b. resister c. status quo d. mission statement e. quota

a. driver

A written explanation of the tasks that constitute a job and the way in which these tasks should be performed is known as a a. job description b. job enlargement c. job enrichment d. job rotation e. job sharing

a. job description

According to the Blake-Mouton managerial grid model, the impoverished leadership style is characterized by a. low-level concern with people and low-level concern with production b. low-level concern with people and high-level concern with production c. equal concern with people and production d. high-level concern with people and low-level concern with production e. high-level concern with people and high-level concern with production

a. low-level concern with people and low-level concern with production

15. When two parties agree to work in a cooperative manner to resolve a labor dispute, it is called a(n) a. negotiation b. mediation c. grievance d. appraisal e. arbitration

a. negotiation

The kind of power that is invested by employees in a leader whom they admire and wish to emulate is known as a. referent b. coercive c. expert d. legitimate e. reward

a. referent

Which of the following statements would a Machiavellian manager most likely make? a. "The clothes make the man." b. "The ends justify the means." c. "Better late than never." d. "Beware of little expenses; small leaks sink great ships." e. "Lost time is never found again."

b. "The ends justify the means."

According to Abraham Maslow's hierarchy of needs theory, which of the following would be most likely to satisfy an employee's esteem need? a. A flexible work schedule b. A promotion c. A congenial manager d. Job security e. A comfortable work station

b. A promotion

Which of the following would show an organization's assets at any given point in time? a. Income statement b. Balance sheet c. Financial audit d. Debt ratio e. Budget

b. Balance sheet

Which of the following industries is part of a dynamic environment? a. Paper b. Electronics c. Dairy d. Furniture e. Coffee

b. Electronics

2. Among the following steps involved in a decision-making process, which would be the final step? a. Identify limiting factors b. Establish an evaluation and control system c. Develop potential alternatives d. Implement the decision e. Define the problem

b. Establish an evaluation and control system

9. Who is known as the "father of scientific management"? a. Douglas McGregor b. Frederick Taylor c. Frank Gilbreth d. Max Weber e. Henri Fayol

b. Frederick Taylor

Which of the following are advantages of promoting an employee from within? I. It saves on recruitment costs. II. The employee is already familiar with company policy. III. It brings in fresh talent and new ideas. 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

Which of the following terms is also known as horizontal job loading? a. Vertical job loading b. Job enlargement c. Job enrichment d. Job rotation e. Job sharing

b. Job enlargement

A small, independent in-house network that allows a group of on-site employees to have access to the same project is known as a(n) a. ISP b. LAN c. MIS d. COO e. URL

b. LAN

4. Which of the following is an example of an intrinsic reward? a. Praise b. Personal Development c. A promotion d. Office décor e. Desirable assignments

b. Personal Development

A plant manager begins using robots on the assembly line. The initiation of robotics represents what kind of change? a. People-centered b. Process-oriented c. Strategic d. Structural e. Short-term

b. Process-oriented

Margo enjoys working in a team environment. If she structures all of her departmental projects as team-based endeavors, what error of perception is she exhibiting? a. Classifying b. Projection c. Selective perception d. Stereotyping e. Pygmalion effect

b. Projection

Which of the following is NOT a characteristic of a high-performance team? a. The team has a common focus. b. Roles and responsibilities are flexible. c. Members are accepting of one another's differences. d. Meetings are managed in a productive and efficient manner. e. Members are comfortable with giving, receiving, and eliciting feedback.

b. Roles and responsibilities are flexible.

Which of the following strategies for managing conflict involves playing down differences among parties? a. Avoidance b. Smoothing c. Compromise d. Confrontation e. Collaboration

b. Smoothing

Which of the following do organizations implement so that employees will maintain a certain level of quality in their work? a. Procedures b. Standards c. Goals d. Work schedules e. Policies

b. Standards

12. A wide span of managerial control is advisable in which of the following situations? a. Unexpected issues arise frequently. b. The organization has established operating procedures. c. Workers do not work in the same geographic location. d. The manager has many additional responsibilities besides managing. e. The manager and her employees must interact frequently.

b. The organization has established operating procedures.

Which of the following is a benefit of a functional structure? a. Managers get experience in a variety of fields. b. There is increased productivity. c. There is a high level of cooperation and communication among departments. d. Managers get on-the-job training for higher level management positions. e. Decisions are made quickly.

b. There is increased productivity.

At a certain organization, low-level managers create budgets that are then passed along to higher levels of management for approval and adjustment. This arrangement is an example of a. top-down budgeting b. bottom-up budgeting c. zero-based budgeting d. lateral budgeting e. inflexible budgeting

b. bottom-up budgeting

Mary Parker Follett emphasized all of the following EXCEPT a. organizations establishing common goals for employees b. command-style hierarchies c. employee participation in decision making d. the importance of people over techniques e. the need for ethics and leadership

b. command-style hierarchies

13. Henri Fayol is responsible for developing the a. acceptance theory of management b. behavioral management school c. school of scientific management d. Hawthorne studies e. 14 principles of management

e. 14 principles of management

Which of the following is NOT one of the basic principles of TQM (Total Quality Management)? a. Focus on the customer b. Produce quality products at the outset c. Make continuous improvements d. Encourage teamwork e. Focus on only a few functional areas of the organization

e. Focus on only a few functional areas of the organization

Product development refers to which of the following? I. Creation of new products II. Improvement of existing products III. Alteration of old products a. I only b. II only c. III only d. I and III only e. I, II, and III

e. I, II, and III

16. Which of the following statements is true about an informal organization? a. It is represented on the company's organizational chart. b. It has a definable chain of command. c. Authority comes directly from the position. d. It is structured around the grapevine. e. It emphasizes personal relationships.

e. It emphasizes personal relationships.

Which of the following is a characteristic of a functional team? a. It is comprised of experts from various functions. b. It is often temporary. c. It operates without managers. d. Team members often cross-train to learn other jobs. e. It is composed of employees from a number of hierarchical levels.

e. It is composed of employees from a number of hierarchical levels.

3. The first phase of a company training program generally focuses on which of the following? a. Program evaluation b. Location research c. Program design d. Logistical decision-making e. Needs assessment

e. Needs assessment

What is the major difference between job enlargement and job enrichment? a. Job enlargement involves flextime whereas job enrichment does not. b. Only job enlargement increases the variety of tasks that a position includes. c. Only job enrichment increases the variety of tasks that a position includes. d. Only job enlargement provides the employee with increased authority and responsibility. e. Only job enrichment provides the employee with increased authority and responsibility.

e. Only job enrichment provides the employee with increased authority and responsibility.

7. Which of the following would be most useful to a purchasing manager in determining which office machine will pay for itself most quickly? a. Organizational chart b. Simulation c. Decision tree d. Brainstorming e. Payback analysis

e. Payback analysis

Which of the following is an example of change in a university's internal environment? a. An increase in the cost of living b. The closing of a nearby university c. Revisions to federal financial-aid criteria d. Updates to standardized college entrance exams e. Raising admissions standards

e. Raising admissions standards

Which of the following ensures protection for corporate whistle-blowers? a. Equal Employment Opportunity Act b. Administration Procedure Act c. Ryan White Act d. Federal Business Financing Act e. Sarbanes-Oxley Act

e. Sarbanes-Oxley Act

A multinational company is concerned that its slogan will not deliver the proper message to customers in a foreign market. Their concern is about which of the following environments? a. Political b. Economic c. Legal d. Technological e. Social and cultural

e. Social and cultural

An effective goal should NOT a. have a timeframe b. be measurable c. be specific d. be associated with a reward e. be very difficult to achieve

e. be very difficult to achieve

Human resources activities include all of the following EXCEPT a. acquiring employees b. recruiting employees c. developing employees d. compensating employees e. disciplining employees

e. disciplining employees

All of the following are examples of a performance outcome EXCEPT a. products made b. products sold c. customers served d. customer satisfaction level e. employee satisfaction level

e. employee satisfaction level

A plan to make major changes to the processes and culture of an entire organization is known as a. job enlargement b. a decision tree c. a mission statement d. a single-use plan e. organizational development

e. organizational development

The obligation that an employee assumes when accepting an assigned task is known as a(n) a. job analysis b. objective c. work schedule d. procedure e. responsibility

e. responsibility

A work schedule is a tool that can help to ensure that a. financial activities are being managed according to company guidelines b. necessary funds have been allocated to a project c. information is delivered to managers in a useful way d. a job analysis has been done properly e. work is completed by a certain point in time

e. work is completed by a certain point in time

11. Which of the following refers to the idea that subjects of an experiment alter their behavior in response to the fact that they are being studied? a. Pygmalion effect b. Division of labor c. Fayol effect d. Scientific effect e. Hawthorne effect

Hawthorne effect