C483 Principles of Management Practice Questions - Set 4 - Part 1

Test your knowledge of Principles of Management concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 1: The "coalitional model" of decision-making is characterized by:

a) Relying on a single decision maker

b) Groups with differing preferences using negotiation and power to influence decisions

c) High-level leaders making decisions independently

d) Decisions based solely on quantitative data

Question 2: "Activity-Based Costing" (ABC) is a costing method that:

a) Allocates costs solely based on production volume

b) Identifies activities and assigns costs based on the time devoted to each activity

c) Assigns costs randomly to business processes

d) Eliminates all indirect costs

Question 3: A "balanced scorecard" includes which type of performance measure?

a) Production-only metrics

b) Employee morale tracking

c) Financial, customer, internal process, and learning and growth metrics

d) Only customer satisfaction data

Question 4: "ISO 9001" is associated with:

a) Specific leadership strategies

b) Quality standards for organizational practices

c) Financial auditing processes

d) Customer service improvement only

Question 5: "Organizational behavior modification" (OB Mod) applies principles of:

a) Economic theory

b) Reinforcement theory

c) Cultural relativity

d) Transactional leadership

Question 6: Which of the following defines "lean manufacturing"?

a) Reducing production quality for cost savings

b) Eliminating unnecessary steps for efficiency

c) Focusing solely on machinery upgrades

d) Maintaining traditional manufacturing processes

Question 7: A "high-involvement organization" typically:

a) Centralizes decision-making at the executive level

b) Ensures consensus on organizational direction

c) Limits employee input to specific departments

d) Operates without any long-term goals

Question 8: The "law of effect" suggests that:

a) Negative reinforcement is most effective

b) Behavior followed by positive consequences will likely be repeated

c) All behaviors have predictable outcomes

d) Rewards have little impact on future actions

Question 9: "Environmental uncertainty" refers to:

a) Complete confidence in future predictions

b) Limited information for understanding the future

c) Stable market conditions

d) Knowledge of all potential risks

Question 10: "Differentiation" in an organizational context typically involves:

a) Minimizing job specialization

b) Creating a unique competitive edge through specialization and distinct practices

c) Avoiding innovative practices

d) Emphasizing similarity across departments

Question 11: "Equity theory" posits that employees assess fairness by comparing:

a) Their outcomes to their inputs

b) Company profits to personal income

c) Peers’ workload with their own

d) Leadership style with industry norms

Question 12: "Operational planning" primarily focuses on:

a) Establishing long-term organizational visions

b) Defining specific short-term processes and tasks

c) Setting industry standards

d) Focusing solely on employee satisfaction

Question 13: Which best describes the "matrix organization"?

a) Employees report to only one supervisor

b) Dual reporting relationships to both functional and divisional managers

c) Full decentralization

d) Uniform task specialization

Question 14: A "franchisee" typically:

a) Owns the parent company

b) Manages a new store of an established brand

c) Innovates completely new business models

d) Operates without any franchise guidelines

Question 15: "Performance gap" in an organization indicates:

a) Higher than expected performance

b) Difference between desired and actual outcomes

c) Minimal deviation from expected results

d) No need for further analysis

Question 16: "Benchmarking" in business involves:

a) Ignoring competitor practices

b) Comparing one’s practices with leading industry standards

c) Focusing on product innovation only

d) Setting internal performance guidelines

Question 17: The purpose of "diversity training" is to:

a) Focus exclusively on legal compliance

b) Foster a culture that values diversity and reduces biases

c) Implement strict uniformity in employee practices

d) Ignore personal differences among employees

Question 18: "Centralized organization" implies that:

a) Decision-making is spread across all levels

b) All major decisions are made by high-level executives

c) Employees have full control over operations

d) Decision-making power is granted to each department

Question 19: A "multicultural organization" is best defined as one that:

a) Avoids hiring from diverse backgrounds

b) Values and promotes cultural diversity within the workforce

c) Relies on a homogenous cultural approach

d) Limits cultural representation to minimal groups

Question 20: "Concurrent control" occurs:

a) Only before tasks begin

b) While tasks are in progress to monitor performance

c) Exclusively after tasks are completed

d) As a substitute for feedback control

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