Principles of Management Exam
Questions with Answers
planning - ✔✔The act of determining the organization's goals and defining the means for
achieving them. One of the five basic functions of managers.
decision-making process - 1st step - ✔✔Define the problem
decision-making process - 2nd Step - ✔✔Identify limiting factors.
decision-making process - 3rd Step - ✔✔Develop and potential alternatives.
decision-making process- 4th step - ✔✔Analyze the alternatives.
extrinsic rewards - ✔✔Are externally administered. Praise, a promotion, office décor, and
desirable assignments are all examples of extrinsic rewards.
intrinsic rewards - ✔✔Are self-administered. Are rewards that provide a sense of achievement
and accomplishment. They are internally administered, meaning that they are not reliant on the
behaviors of other people.
tactical goals - ✔✔Are specific work goals that middle-level managers derive from the broader
strategic goals.
strategic goal - ✔✔Is an organization-wide, long-term goal devised by a top-level manager.
operational goals - ✔✔Specific, measurable results expected from first-level managers, work
groups, and individuals.
,organizational chart - ✔✔A pictorial display of the official lines of authority and communication
with in an organization.
decision tree - ✔✔A diagram that analyzes hiring, marketing investment, equipment purchases,
pricing, and similar decisions. Decision trees assign probabilities to each possible outcome and
calculate payoffs fore each decision path.
brainstorming - ✔✔An idea-generating process that encourages the development of alternative
s while withholding criticism of these alternatives.
classical management theory - ✔✔A theory developed during the Industrial Revolution, that
proposes "one best way" to perform tasks.
Classical manger theory developed into two separate branches: the "classical scientific school"
and the "classical administrative school".
behavioral school - ✔✔Focuses on the human-based elements of work, believing that increased
understanding of such behaviors as group interaction, motivation, and conflict resolution will
lead to increased productivity.
quantitative approach school of management - ✔✔Using quantitative techniques, such as
statistics, information models, and computer simulations, to improve decision making. Was
born from research conducted during World War II.
contingency school of management - ✔✔Doesn't believe that there is one best way or group of
ways to manage; it takes a flexible approach to management that depends on a given situation.
Summed up in "it all depends approach".
,quality school of management - ✔✔Strives to continuously improve performance to deliver
high-quality goods or services to the marketplace.
Considers the following in it theory: organization makeup, quality of goods and services,
continuous improvements in goods and services, employees working in teams and developing
openness and trust.
Taylor (Frederick) - ✔✔Is known as the "father of scientific management". Taylor believed that
organizations should analyze the tasks that they need to have performed, then develop a set of
procedures for the best way of performing them.
McGregor (Douglas) - ✔✔Ascribed to the behavioral management theory. He is most famous
for his concepts of the Theory X manager and the Theory Y manager.
According to him, the Theory X manager sees employees as being essentially irresponsible,
untrustworthy, and lazy, whereas the Theory Y manager sees them as being responsible,
trustworthy, and motivated.
Influenced by the Hawthorne studies and Maslow.
Gilbreth (Frank and Lillian) - ✔✔Known for studying job motions.
They performed the first motion study to determine the best possible method for doing a job.
They observed both efficient and inefficient bricklayers at work, and then reduced the motions
needed to do the job down to a few basic ones.
Eliminating the unnecessary motions improved efficiency and productivity tremendously.
, Weber (Max) - ✔✔Best known for being proponent of an objective, non-personal form of
organization known as a bureaucracy.
Fayol (Henri) - ✔✔Responsible for developing 14 principles of management, which were based
on his own management experiences.
They include such principles as work specialization, unity of command, centralization, and team
work.
He was affiliated with the classical administrative school of management.
bureaucracy - ✔✔A form of organization based on logic, orders and legitimate use of authority.
A non-personal, objective form of organization.
Max Weber believed in management by bureaucracy.
line authority - ✔✔A manager's right to direct the work of his employees and make decisions
without consulting others.
functional authority - ✔✔Authority to make decisions about specific activities undertaken by
personnel in other departments.
legitimate power - ✔✔Vested authority stemming from a formal management position in an
organization.
Bernard (Chester) - ✔✔Developed the acceptance theory of management, which focuses on an
employee's willingness to accept those who possess legitimate authority to act.
Questions with Answers
planning - ✔✔The act of determining the organization's goals and defining the means for
achieving them. One of the five basic functions of managers.
decision-making process - 1st step - ✔✔Define the problem
decision-making process - 2nd Step - ✔✔Identify limiting factors.
decision-making process - 3rd Step - ✔✔Develop and potential alternatives.
decision-making process- 4th step - ✔✔Analyze the alternatives.
extrinsic rewards - ✔✔Are externally administered. Praise, a promotion, office décor, and
desirable assignments are all examples of extrinsic rewards.
intrinsic rewards - ✔✔Are self-administered. Are rewards that provide a sense of achievement
and accomplishment. They are internally administered, meaning that they are not reliant on the
behaviors of other people.
tactical goals - ✔✔Are specific work goals that middle-level managers derive from the broader
strategic goals.
strategic goal - ✔✔Is an organization-wide, long-term goal devised by a top-level manager.
operational goals - ✔✔Specific, measurable results expected from first-level managers, work
groups, and individuals.
,organizational chart - ✔✔A pictorial display of the official lines of authority and communication
with in an organization.
decision tree - ✔✔A diagram that analyzes hiring, marketing investment, equipment purchases,
pricing, and similar decisions. Decision trees assign probabilities to each possible outcome and
calculate payoffs fore each decision path.
brainstorming - ✔✔An idea-generating process that encourages the development of alternative
s while withholding criticism of these alternatives.
classical management theory - ✔✔A theory developed during the Industrial Revolution, that
proposes "one best way" to perform tasks.
Classical manger theory developed into two separate branches: the "classical scientific school"
and the "classical administrative school".
behavioral school - ✔✔Focuses on the human-based elements of work, believing that increased
understanding of such behaviors as group interaction, motivation, and conflict resolution will
lead to increased productivity.
quantitative approach school of management - ✔✔Using quantitative techniques, such as
statistics, information models, and computer simulations, to improve decision making. Was
born from research conducted during World War II.
contingency school of management - ✔✔Doesn't believe that there is one best way or group of
ways to manage; it takes a flexible approach to management that depends on a given situation.
Summed up in "it all depends approach".
,quality school of management - ✔✔Strives to continuously improve performance to deliver
high-quality goods or services to the marketplace.
Considers the following in it theory: organization makeup, quality of goods and services,
continuous improvements in goods and services, employees working in teams and developing
openness and trust.
Taylor (Frederick) - ✔✔Is known as the "father of scientific management". Taylor believed that
organizations should analyze the tasks that they need to have performed, then develop a set of
procedures for the best way of performing them.
McGregor (Douglas) - ✔✔Ascribed to the behavioral management theory. He is most famous
for his concepts of the Theory X manager and the Theory Y manager.
According to him, the Theory X manager sees employees as being essentially irresponsible,
untrustworthy, and lazy, whereas the Theory Y manager sees them as being responsible,
trustworthy, and motivated.
Influenced by the Hawthorne studies and Maslow.
Gilbreth (Frank and Lillian) - ✔✔Known for studying job motions.
They performed the first motion study to determine the best possible method for doing a job.
They observed both efficient and inefficient bricklayers at work, and then reduced the motions
needed to do the job down to a few basic ones.
Eliminating the unnecessary motions improved efficiency and productivity tremendously.
, Weber (Max) - ✔✔Best known for being proponent of an objective, non-personal form of
organization known as a bureaucracy.
Fayol (Henri) - ✔✔Responsible for developing 14 principles of management, which were based
on his own management experiences.
They include such principles as work specialization, unity of command, centralization, and team
work.
He was affiliated with the classical administrative school of management.
bureaucracy - ✔✔A form of organization based on logic, orders and legitimate use of authority.
A non-personal, objective form of organization.
Max Weber believed in management by bureaucracy.
line authority - ✔✔A manager's right to direct the work of his employees and make decisions
without consulting others.
functional authority - ✔✔Authority to make decisions about specific activities undertaken by
personnel in other departments.
legitimate power - ✔✔Vested authority stemming from a formal management position in an
organization.
Bernard (Chester) - ✔✔Developed the acceptance theory of management, which focuses on an
employee's willingness to accept those who possess legitimate authority to act.
