L1 - Principles of Management

Question 1

What are the four major functions of management?

A) Planning, Organizing, Leading, Controlling
B) Planning, Organizing, Staffing, Directing
C) Planning, Coordinating, Leading, Controlling
D) Planning, Organizing, Directing, Controlling

Answer 1

A) Planning, Organizing, Leading, Controlling

Explanation: The four major functions of management are planning, organizing, leading, and controlling. These functions are essential for achieving organizational goals.

Question 2

Which managerial role involves making significant decisions that affect the organization?

A) Interpersonal roles
B) Informational roles
C) Decisional roles
D) Technical roles

Answer 2

C) Decisional roles

Explanation: Decisional roles involve making significant decisions that affect the organization. These roles include entrepreneur, disturbance handler, resource allocator, and negotiator.

Question 3

What is the primary focus of top managers?

A) Supervising non-management employees
B) Developing the company’s goals and focusing on long-term issues
C) Coordinating resources and managing middle managers
D) Implementing specific plans developed with middle managers

Answer 3

B) Developing the company’s goals and focusing on long-term issues

Explanation: Top managers are senior executives responsible for developing the company’s goals and focusing on long-term issues. They emphasize the growth and overall effectiveness of the organization.

Question 4

Which skill is associated with a manager’s ability to work well with others?

A) Technical skills
B) Human skills
C) Conceptual skills
D) Analytical skills

Answer 4

B) Human skills

Explanation: Human skills are associated with a manager’s ability to work well with others, both as a member of a group and as a leader who gets things done through others.

Question 5

What does efficiency in management refer to?

A) The ability to choose goals and achieve them
B) The ability to make the best use of available resources in the process of achieving goals
C) The ability to innovate within an organization
D) The ability to develop work agendas

Answer 5

B) The ability to make the best use of available resources in the process of achieving goals

Explanation: Efficiency refers to the ability to make the best use of available resources in the process of achieving goals. It is about doing things right.

Question 6

Which managerial role involves maintaining a network of outside contacts and informers who provide help and information?
A) Figurehead
B) Leader
C) Liaison
D) Monitor

Answer 6

C) Liaison

Explanation: The liaison role involves maintaining a network of outside contacts and informers who provide help and information. This role is crucial for managers to gather external information and resources.

Question 7

What is the process of setting goals and deciding how to achieve them called?

A) Organizing
B) Leading
C) Controlling
D) Planning

Answer 7

D) Planning

Explanation: Planning is the process of setting goals and deciding how to achieve them. It involves assessing the management environment and mapping out activities necessary to achieve objectives.

Question 8

Which type of manager is directly involved with non-management employees?

A) Top managers
B) Middle managers
C) First-line managers
D) Project managers

Answer 8

C) First-line managers

Explanation: First-line managers, also known as assistant managers or supervisors, are the administrators who oversee daily functions of a business.

Question 9

Which of the following is NOT one of the three major types of managerial jobs in horizontal differentiation?

A) General Managers
B) Functional Managers
C) Project Managers
D) Strategic Managers

Answer 9

D) Strategic Managers

Explanation: The three major types of managerial jobs in horizontal differentiation are General Managers, Functional Managers, and Project Managers. Strategic Managers are typically considered part of the vertical dimension, focusing on long-term goals and overall effectiveness.

Question 10

What is the role of a ‘Monitor’ in managerial informational roles?

A) Transmitting information about the organization to outsiders
B) Receiving and transmitting information to serve as the nerve center of the organization
C) Performing symbolic duties of a legal or social nature
D) Building relationships with subordinates

Answer 10

B) Receiving and transmitting information to serve as the nerve center of the organization

Explanation: The ‘Monitor’ role involves receiving and transmitting information to serve as the nerve center of the organization. This role is crucial for managers to stay informed about internal and external issues that can affect the organization.

Question 11

Which managerial role involves performing symbolic duties of a legal or social nature?

A) Leader
B) Liaison
C) Figurehead
D) Spokesperson

Answer 11

C) Figurehead

Explanation: The ‘Figurehead’ role involves performing symbolic duties of a legal or social nature. This role is part of the interpersonal roles of managers.

Question 12

What is the primary focus of middle managers?

A) Supervising non-management employees
B) Developing the company’s goals and focusing on long-term issues
C) Coordinating resources and managing lower-level managers
D) Implementing specific plans developed with top managers

Answer 12

C) Coordinating resources and managing lower-level managers

Explanation: Middle managers focus on coordinating resources and managing lower-level managers. They are responsible for the work of managers at lower levels and play a tactical role in the organization.

Question 13

Which type of skill is related to the ability to visualize the organization as a whole and understand how it fits into the wider context?

A) Technical skills
B) Human skills
C) Conceptual skills
D) Analytical skills

Answer 13

C) Conceptual skills

Explanation: Conceptual skills are related to the ability to visualize the organization as a whole and understand how it fits into the wider context of the industry, community, and world. These skills are crucial for top managers.

Question 14

What does effectiveness in management refer to?

A) The ability to choose goals and achieve them
B) The ability to make the best use of available resources in the process of achieving goals
C) The ability to innovate within an organization
D) The ability to develop work agendas

Answer 14

A) The ability to choose goals and achieve them

Question 15

Which managerial role involves acting as an initiator, designer, and encourager of change and innovation?

A) Disturbance handler
B) Resource allocator
C) Entrepreneur
D) Negotiator

Answer 15

C) Entrepreneur

Explanation: The ‘Entrepreneur’ role involves acting as an initiator, designer, and encourager of change and innovation. This role is part of the decisional roles of managers.

Question 16

What is the process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully called?

A) Planning
B) Leading
C) Controlling
D) Organizing

Answer 16

Answer: D) Organizing

Explanation: Organizing is the process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully. It involves determining tasks, combining them into specific jobs, and grouping jobs into various units.

Question 17

What is management?

A) The process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling.
B) The process of supervising employees.
C) The process of marketing products.
D) The process of financial planning.

Answer 17

A) The process of achieving organizational goals by engaging in the four major functions of planning, organizing, leading, and controlling.

Explanation: Management involves achieving organizational goals through planning, organizing, leading, and controlling.

Question 18

What is the definition of an organization?

A) Two or more persons engaged in a systematic effort to produce goods or services.
B) A group of people working independently.
C) A single person managing resources.
D) A team of financial analysts.

Answer 18

A) Two or more persons engaged in a systematic effort to produce goods or services.

Explanation: An organization is defined as two or more persons engaged in a systematic effort to produce goods or services.

Question 19

What does the planning function of management involve?

A) Setting goals and deciding how to achieve them.
B) Supervising employees.
C) Marketing products.
D) Financial planning.

Answer 19

A) Setting goals and deciding how to achieve them.

Explanation: Planning involves setting goals and deciding how to achieve them, which is a key function of management.

Question 20

What is the organizing function of management?

A) The process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully.
B) The process of setting goals.
C) The process of marketing products.
D) The process of financial planning.

Answer 20

A) The process of allocating and arranging human and nonhuman resources so that plans can be carried out successfully.

Explanation: Organizing involves allocating and arranging resources to successfully carry out plans.

Question 21

What does the leading function of management involve?

A) Influencing others to engage in work behaviors necessary to reach organizational goals.
B) Setting goals.
C) Marketing products.
D) Financial planning.

Answer 21

A) Influencing others to engage in work behaviors necessary to reach organizational goals.

Explanation: Leading involves influencing others to engage in behaviors necessary to achieve organizational goals.

Question 22

What is the controlling function of management?

A) Regulating organizational activities so that actual performance conforms to expected standards and goals.
B) Setting goals.
C) Marketing products.
D) Financial planning.

Answer 22

A) Regulating organizational activities so that actual performance conforms to expected standards and goals.

Explanation: Controlling involves regulating activities to ensure performance meets organizational standards and goals.

Question 23

Which of the following is NOT part of the management process?

A) Work Agenda
B) Work Methods and Roles
C) Performance (goal achievement)
D) Financial Accounting

Answer 23

D) Financial Accounting

The management process includes work agenda, work methods and roles, management functions, knowledge base and key management skills and performance (goal achievement), but not financial accounting.

Question 24

What factors influence a manager’s work agenda?

A) Job demands, job constraints, and job choices
B) Financial planning
C) Marketing strategies
D) Employee satisfaction

Answer 24

A) Job demands, job constraints, and job choices

Explanation: A manager’s work agenda is influenced by job demands, job constraints, and job choices.

Question 25

How many different but highly interrelated roles do managers perform according to Mintzberg? A) 5 B) 7 C) 10 D) 12

Answer 25

C) 10 ## Footnote Explanation: According to Mintzberg, managers perform 10 different but highly interrelated roles.

Question 26

Which of the following is NOT one of the three major types of managerial roles? A) Interpersonal roles B) Informational roles C) Decisional roles D) Financial roles

Answer 26

D) Financial roles ## Footnote Explanation: The three major types of managerial roles are interpersonal roles, informational roles, and decisional roles. Financial roles are not one of these types.

Question 27

Which role involves performing symbolic duties of a legal or social nature? A) Leader B) Liaison C) Figurehead D) Monitor

Answer 27

C) Figurehead ## Footnote Explanation: The figurehead role involves performing symbolic duties of a legal or social nature.

Question 28

Which role involves transmitting information about the organization to outsiders? A) Monitor B) Disseminator C) Spokesperson D) Liaison

Answer 28

C) Spokesperson ## Footnote Explanation: The spokesperson role involves transmitting information about the organization to outsiders.

Question 29

What do managers need to develop work agendas, act out roles, and engage in planning, organizing, leading, and controlling? A) Sound knowledge base and key management skills B) Financial planning C) Marketing strategies D) Employee satisfaction

Answer 29

A) Sound knowledge base and key management skills ## Footnote Explanation: Managers need a sound knowledge base and key management skills to develop work agendas, act out roles, and engage in planning, organizing, leading, and controlling.

Question 30

Which of the following is NOT part of a manager's knowledge base? A) Industry and its technology B) Company policies and practices C) Company goals and plans D) Personal financial planning

Answer 30

D) Personal financial planning ## Footnote Explanation: A manager's knowledge base includes information about the industry, company policies and practices, and company goals and plans, but not personal financial planning.

Question 31

What are technical skills in management? A) Skills that reflect both an understanding of and proficiency in a specialized field. B) Skills associated with a manager's ability to work well with others. C) Skills related to the ability to visualize the organization as a whole. D) Skills related to financial planning.

Answer 31

A) Skills that reflect both an understanding of and proficiency in a specialized field. ## Footnote Explanation: Technical skills are those that reflect both an understanding of and proficiency in a specialized field, which are essential for managers to perform specific tasks effectively.

Question 32

What are conceptual skills in management? A) Skills that reflect both an understanding of and proficiency in a specialized field. B) Skills associated with a manager's ability to work well with others. C) Skills related to the ability to visualize the organization as a whole and understand interrelationships among its parts. D) Skills related to financial planning.

Answer 32

C) Skills related to the ability to visualize the organization as a whole and understand interrelationships among its parts. ## Footnote Explanation: Conceptual skills involve the ability to visualize the organization as a whole and understand how its parts interrelate, which is crucial for strategic planning and decision-making.

Question 33

What does effectiveness in management refer to? A) The ability to choose goals and achieve them. B) The ability to make the best use of available resources. C) The ability to innovate within an organization. D) The ability to develop work agendas.

Answer 33

A) The ability to choose goals and achieve them. ## Footnote Explanation: Effectiveness refers to the ability to choose goals and achieve them, focusing on doing the right things to achieve high attainment of goals.

Question 34

What does efficiency in management refer to? A) The ability to choose goals and achieve them. B) The ability to make the best use of available resources in the process of achieving goals. C) The ability to innovate within an organization. D) The ability to develop work agendas.

Answer 34

B) The ability to make the best use of available resources in the process of achieving goals. ## Footnote Explanation: Efficiency refers to making the best use of available resources to achieve goals, focusing on doing things right with minimal waste.

Question 35

What are the two important dimensions that managerial jobs vary on? A) Vertical dimension and horizontal dimension B) Financial dimension and marketing dimension C) Technical dimension and human dimension D) Conceptual dimension and analytical dimension

Answer 35

A) Vertical dimension and horizontal dimension ## Footnote Explanation: Managerial jobs vary based on the vertical dimension (hierarchical levels in the organization) and the horizontal dimension (variations in managers' responsibility areas).

Question 36

Which type of manager is responsible for developing the company's goals and focusing on long-term issues? A) Top managers B) Middle managers C) First-line managers D) Project managers

Answer 36

A) Top managers ## Footnote Explanation: Top managers are responsible for developing the company's goals and focusing on long-term issues, emphasizing the growth and overall effectiveness of the organization.

Question 37

What is the primary concern of top managers? A) Supervising non-management employees B) Coordinating resources C) Interaction between the organization and its external environment D) Implementing specific plans developed with middle managers

Answer 37

C) Interaction between the organization and its external environment ## Footnote Explanation: Top managers are primarily concerned with the interaction between the organization and its external environment, focusing on strategic management.

Question 38

What is the role of middle managers? A) Supervising non-management employees B) Developing the company's goals C) Coordinating resources and managing lower-level managers D) Implementing specific plans developed with top managers

Answer 38

C) Coordinating resources and managing lower-level managers ## Footnote Explanation: Middle managers coordinate resources and manage lower-level managers, playing a tactical role in the organization.

Question 39

Which type of manager is directly involved with non-management employees? A) Top managers B) Middle managers C) First-line managers D) Project managers

Answer 39

C) First-line managers ## Footnote Explanation: First-line managers are directly involved with non-management employees, supervising the operations of the organization and implementing specific plans developed with middle managers.

Question 40

What is innovation in the context of the entrepreneurial role? A) A new idea applied to initiating or improving a process, product, or service. B) The ability to work well with others. C) The ability to visualize the organization as a whole. D) The ability to develop work agendas.

Answer 40

A) A new idea applied to initiating or improving a process, product, or service. ## Footnote Explanation: Innovation involves applying a new idea to initiate or improve a process, product, or service, which is a key aspect of the entrepreneurial role.

Question 41

Who is an idea champion? A) An individual who generates a new idea or believes in the value of a new idea and supports it in the face of obstacles. B) A middle manager who recognizes the organizational significance of an idea. C) A high-level manager who articulates the need for innovation. D) A project manager who coordinates efforts involving individuals in different organizational units.

Answer 41

A) An individual who generates a new idea or believes in the value of a new idea and supports it in the face of obstacles. ## Footnote Explanation: An idea champion is someone who generates a new idea or believes in its value and supports it despite potential obstacles.

Question 42

What is the role of an orchestrator in the entrepreneurial role? A) Generating new ideas B) Recognizing the organizational significance of an idea C) Providing funding for innovative activities and creating incentives for middle managers to sponsor new ideas D) Coordinating efforts involving individuals in different organizational units

Answer 42

C) Providing funding for innovative activities and creating incentives for middle managers to sponsor new ideas ## Footnote Explanation: An orchestrator is a high-level manager who provides funding for innovative activities and creates incentives for middle managers to sponsor new ideas, encouraging innovation within the organization.

Question 43

Which type of manager has responsibility for the whole organization or a substantial subunit that includes most of the common specialized areas? A) General Managers B) Functional Managers C) Project Managers D) Strategic Managers

Answer 43

A) General Managers ## Footnote Explanation: General Managers have responsibility for the whole organization or a substantial subunit that includes most of the common specialized areas.

Question 44

Which type of manager supervises individuals with expertise and training in a specific specialized area? A) General Managers B) Functional Managers C) Project Managers D) Strategic Managers

Answer 44

B) Functional Managers ## Footnote Explanation: Functional Managers supervise individuals with expertise and training in a specific specialized area, such as finance, human resources, marketing, or operations.

Question 45

What is the role of a 'Monitor' in managerial informational roles? A) Transmitting information about the organization to outsiders B) Receiving and transmitting information to serve as the nerve center of the organization C) Performing symbolic duties of a legal or social nature D) Building relationships with subordinates

Answer 45

B) Receiving and transmitting information to serve as the nerve center of the organization ## Footnote Explanation: The 'Monitor' role involves receiving and transmitting information to serve as the nerve center of the organization. This role is crucial for managers to stay informed about internal and external issues that can affect the organization.