MNG2601
EXAM PACK
,General Management - MNG2601
ASSESSMENT 1 SEMESTER 2 2025
EXAM ANSWERS
Question 1
An organisational structure where authority is arranged in levels of hierarchy and
members operate according to clearly established and rational rules is known as _____
management.
A. Total Quality Management
B. Bureaucratic Management
C. Administrative Management
D. Systems Management
Correct answer: B. Bureaucratic Management
Explanation: Bureaucratic management is characterised by a formal hierarchy, clearly
defined duties, established rules and procedures, and rational decision-making. It is
designed to create consistency and order within an organisation.
Question 2
Which management approach is founded on four central principles: a systems
perspective, attention to customers, employee participation and continuous
improvement?
A. Contingency Management
B. Total Quality Management
C. Quantitative Management
D. The Systems Approach to Management
,Correct answer: B. Total Quality Management
Explanation: Total Quality Management (TQM) focuses on improving the quality of
organisational processes and outputs continuously. It involves employees, considers
customer expectations and views the organisation as an interconnected system.
Question 3
Individuals or groups that have, or believe they have, ownership, rights or interests in an
organisation and its activities are referred to as _____.
A. Shareholders
B. Interest Groups
C. Stakeholders
D. Suppliers
Correct answer: C. Stakeholders
Explanation: Stakeholders are people or groups with an interest in an organisation or
who may be affected by its activities. Examples include employees, customers,
suppliers, communities, government and investors.
Question 4
Which combination correctly represents the four fundamental functions of
management?
A. Planning; organising; leading; controlling
B. Goal-setting; organising; directing; motivating
C. Planning; organising; coordinating; directing
D. Envisioning; determining reporting lines; communicating; reporting
Correct answer: A. Planning; organising; leading; controlling
, Explanation: Managers generally perform four core functions. Planning establishes
objectives and determines how to achieve them. Organising allocates resources and
responsibilities. Leading guides and motivates employees, while controlling evaluates
performance and corrects deviations.
Question 5
When two or more subsystems cooperate and their combined performance is greater
than what they could achieve separately, this situation is called _____.
A. Synergy
B. Quality
C. Entropy
D. Productivity
Correct answer: A. Synergy
Explanation: Synergy occurs when components work together in such a way that the
combined result is greater than the results that would have been achieved
independently. Effective teamwork between organisational departments is an example.
Question 6
The concept concerned with generating the optimum level of return for all parties that
have an interest in an organisation is called _____.
A. Stakeholder Return
B. Shareholder Return
C. Stakeholder Value
D. Stakeholder Profitability
Correct answer: C. Stakeholder Value
EXAM PACK
,General Management - MNG2601
ASSESSMENT 1 SEMESTER 2 2025
EXAM ANSWERS
Question 1
An organisational structure where authority is arranged in levels of hierarchy and
members operate according to clearly established and rational rules is known as _____
management.
A. Total Quality Management
B. Bureaucratic Management
C. Administrative Management
D. Systems Management
Correct answer: B. Bureaucratic Management
Explanation: Bureaucratic management is characterised by a formal hierarchy, clearly
defined duties, established rules and procedures, and rational decision-making. It is
designed to create consistency and order within an organisation.
Question 2
Which management approach is founded on four central principles: a systems
perspective, attention to customers, employee participation and continuous
improvement?
A. Contingency Management
B. Total Quality Management
C. Quantitative Management
D. The Systems Approach to Management
,Correct answer: B. Total Quality Management
Explanation: Total Quality Management (TQM) focuses on improving the quality of
organisational processes and outputs continuously. It involves employees, considers
customer expectations and views the organisation as an interconnected system.
Question 3
Individuals or groups that have, or believe they have, ownership, rights or interests in an
organisation and its activities are referred to as _____.
A. Shareholders
B. Interest Groups
C. Stakeholders
D. Suppliers
Correct answer: C. Stakeholders
Explanation: Stakeholders are people or groups with an interest in an organisation or
who may be affected by its activities. Examples include employees, customers,
suppliers, communities, government and investors.
Question 4
Which combination correctly represents the four fundamental functions of
management?
A. Planning; organising; leading; controlling
B. Goal-setting; organising; directing; motivating
C. Planning; organising; coordinating; directing
D. Envisioning; determining reporting lines; communicating; reporting
Correct answer: A. Planning; organising; leading; controlling
, Explanation: Managers generally perform four core functions. Planning establishes
objectives and determines how to achieve them. Organising allocates resources and
responsibilities. Leading guides and motivates employees, while controlling evaluates
performance and corrects deviations.
Question 5
When two or more subsystems cooperate and their combined performance is greater
than what they could achieve separately, this situation is called _____.
A. Synergy
B. Quality
C. Entropy
D. Productivity
Correct answer: A. Synergy
Explanation: Synergy occurs when components work together in such a way that the
combined result is greater than the results that would have been achieved
independently. Effective teamwork between organisational departments is an example.
Question 6
The concept concerned with generating the optimum level of return for all parties that
have an interest in an organisation is called _____.
A. Stakeholder Return
B. Shareholder Return
C. Stakeholder Value
D. Stakeholder Profitability
Correct answer: C. Stakeholder Value
