MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Major Field Test – Business (ETS MFT) Study
Guide 2025 | Verified Q&A, Key Definitions
& Practice Concepts
Remuneration (Management)
Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-
financial compensation.
Centralization (Management)
Centralization - This principle refers to how close employees are to the decision-making process. It is
important to aim for an appropriate balance.
Scalar Chain (Management)
Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
Order (Management)
The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Equity (Management)
Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with
kindness where appropriate.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Stability of Tenure of Personnel (Management)
Managers should strive to minimize employee turnover. Personnel planning should be a priority.
Initiative (Management)
Employees should be given the necessary level of freedom to create and carry out plans.
Esprit de Corps (Management)
Organizations should strive to promote team spirit and unity.
Abraham Maslow
Hierarchy of Needs:
Proposes that individuals have a hiearchy of needs that need to be fulfilled in order.
The hierarchy includes: physiological needs, safety, belongingness, esteem, and self-actualization
Maslow's Hierarchy of Needs:
Physiological needs, Safety, Belongingness, Esteem, and Self-actualization
Douglas McGregor
Proposed Theory X and Theory Y view of management.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Theory X of Management
Employees dislike work and must be threatened with punishment.
Theory Y of Management
Employees like work, self-direction and seek responsibility and have creativity.
Dr. William Ouchi
Proposed Theory Z view of management; a so-called "Japanese Management" style popularized during
the Asian economic boom of the 1980's.
Theory Z of Management
Focused on increasing employee loyalty to the company by providing a job for life with a strong focus on
the well-being of the employee, both on and off the job.
Tuckman's Stages of Team Development
The process of (1) Forming - orientation break the ice, (2) Storming - marked by conflict disagreement,
(3) Norming - establishment of order and cohesion, (4) Performing - marked by cooperation and
problem solving.
Expectancy Theory of Motivation
Effort will lead to increased performance and that performance will lead to some expected outcome
(bonus, promotion, etc.) the greater my motivation will be.
Equity Theory of Motivation
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Effort and rewards is affected by perception of others in the organization...when receiving rewards, it
does not appear equitable, motivation drops. (based on perceived value of rewards)
Transactional Leadership
Leadership is a transaction or exchange process between leaders and followers. Could mean more work
for more pay or more work for additional time off.
Transformational Leadership
Characterized by the ability to bring about significant change in followers and the organization.
Great Man Approach
Leadership perspective that sought to identify the inherited traits leaders possessed that distinguished
them from people who were not leaders.
Leader Member Exchange
Belief that leadership is individualized for each subordinate. Each dyad involves a unique exchange
independent of other dyads. Puts employees into either in-group or out-group categories.
In-Group
A group in which a manager, often subconsciously, classifies team members as proven to be loyal,
trustworthy, and skilled. Managers give this group most of their attention, providing challenging and
interesting work, and offering opportunities for additional training and advancement. This group also
gets more one-to-one time with the manager. Often, people in this group have a similar personality and
work-ethic to their manager. (Theory Y)
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
Major Field Test – Business (ETS MFT) Study
Guide 2025 | Verified Q&A, Key Definitions
& Practice Concepts
Remuneration (Management)
Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-
financial compensation.
Centralization (Management)
Centralization - This principle refers to how close employees are to the decision-making process. It is
important to aim for an appropriate balance.
Scalar Chain (Management)
Employees should be aware of where they stand in the organization's hierarchy, or chain of command.
Order (Management)
The workplace facilities must be clean, tidy and safe for employees. Everything should have its place.
Equity (Management)
Managers should be fair to staff at all times, both maintaining discipline as necessary and acting with
kindness where appropriate.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Stability of Tenure of Personnel (Management)
Managers should strive to minimize employee turnover. Personnel planning should be a priority.
Initiative (Management)
Employees should be given the necessary level of freedom to create and carry out plans.
Esprit de Corps (Management)
Organizations should strive to promote team spirit and unity.
Abraham Maslow
Hierarchy of Needs:
Proposes that individuals have a hiearchy of needs that need to be fulfilled in order.
The hierarchy includes: physiological needs, safety, belongingness, esteem, and self-actualization
Maslow's Hierarchy of Needs:
Physiological needs, Safety, Belongingness, Esteem, and Self-actualization
Douglas McGregor
Proposed Theory X and Theory Y view of management.
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
,MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Theory X of Management
Employees dislike work and must be threatened with punishment.
Theory Y of Management
Employees like work, self-direction and seek responsibility and have creativity.
Dr. William Ouchi
Proposed Theory Z view of management; a so-called "Japanese Management" style popularized during
the Asian economic boom of the 1980's.
Theory Z of Management
Focused on increasing employee loyalty to the company by providing a job for life with a strong focus on
the well-being of the employee, both on and off the job.
Tuckman's Stages of Team Development
The process of (1) Forming - orientation break the ice, (2) Storming - marked by conflict disagreement,
(3) Norming - establishment of order and cohesion, (4) Performing - marked by cooperation and
problem solving.
Expectancy Theory of Motivation
Effort will lead to increased performance and that performance will lead to some expected outcome
(bonus, promotion, etc.) the greater my motivation will be.
Equity Theory of Motivation
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
, MINDPLUG ACADEMIC SOLUTIONS | VERIFIED EXAM GUIDES 2025
Effort and rewards is affected by perception of others in the organization...when receiving rewards, it
does not appear equitable, motivation drops. (based on perceived value of rewards)
Transactional Leadership
Leadership is a transaction or exchange process between leaders and followers. Could mean more work
for more pay or more work for additional time off.
Transformational Leadership
Characterized by the ability to bring about significant change in followers and the organization.
Great Man Approach
Leadership perspective that sought to identify the inherited traits leaders possessed that distinguished
them from people who were not leaders.
Leader Member Exchange
Belief that leadership is individualized for each subordinate. Each dyad involves a unique exchange
independent of other dyads. Puts employees into either in-group or out-group categories.
In-Group
A group in which a manager, often subconsciously, classifies team members as proven to be loyal,
trustworthy, and skilled. Managers give this group most of their attention, providing challenging and
interesting work, and offering opportunities for additional training and advancement. This group also
gets more one-to-one time with the manager. Often, people in this group have a similar personality and
work-ethic to their manager. (Theory Y)
MINDPLUG ACADEMIC SOLUTIONS – TURNING STUDY INTO STRATEGY
