CLEP Exam Prep: Principles of Management Quiz

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| Questions: 28 | Updated: Aug 4, 2025
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1. What is management?

Explanation

Management involves not just overseeing tasks, but also utilizing resources effectively to achieve organizational goals.

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About This Quiz
Principles Of Management Quizzes & Trivia

This study guide is designed to prepare learners for the CLEP exam, focusing on the principles of management. It covers essential management skills and theories, enhancing understanding and application in a business context, ideal for aspiring managers and business professionals.

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2. What is an operational goal?

Explanation

An operational goal implies a specific target that can be measured to track progress and success, rather than a broad objective without clear indicators of achievement.

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3. Who is known as another founding member of the classical management school and described five functions of management as: to forecast, plan, organize, command, coordinate, and control?

Explanation

Henry Fayol is known for his five functions of management and 14 Principles of Management, while Frederick Taylor, Peter Drucker, and Elton Mayo are known for their contributions to management theory but did not describe the specific functions mentioned.

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4. What is Product Development?

Explanation

Product development involves the creation of new products, improvement of existing products, and alterations to old products to meet customer needs and market demands.

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5. What does Informal Organization emphasize?

Explanation

Informal Organization focuses on social connections and personal interactions within a group, rather than strictly following formal guidelines or protocols.

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6. What are the characteristics of Mechanistic Structure (vs. Organic Structure) in Organizational Theory?

Explanation

Mechanistic structure is characterized by centralization, standardization, and a focus on individual specialization, simple integrating mechanisms, and much written communication. Decentralization, lack of written communication, and informal status based on personal relationships are more aligned with Organic Structure.

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7. Who is known for contributing two theories of motivation: the Hygiene Theory and Motivation?

Explanation

Frederick Herzberg is the correct answer as he is the psychologist known for his work on motivation and human relations. While Abraham Maslow, Douglas McGregor, and Clayton Alderfer are also notable figures in the field of motivation, they are not specifically attributed to the development of the Hygiene Theory and Motivation theories.

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8. What are the hygiene factors according to Frederick Herzberg's 'Hygiene Theory'?
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9. What is included in Abraham Maslow's Hierarchy of Needs motivational model?

Explanation

Maslow's Hierarchy of Needs motivational model categorizes human needs into five levels, starting from the basic biological and physiological needs to the highest level of self-actualization. Emotional, material, and intellectual needs are not part of Maslow's original model.

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10. What is the Grapevine in an organization?

Explanation

The correct answer describes the Grapevine as an informal communication channel within an organization, while the incorrect answers provide alternative interpretations of the term that do not align with its actual meaning.

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11. Who is known as the creator of the 'Fourteen Points' system for achieving Total Quality Management (TQM)?

Explanation

While Joseph Juran and Kaoru Ishikawa are also notable figures in the field of quality management, W. Edwards Deming is specifically credited with the creation of the 'Fourteen Points' system for achieving Total Quality Management (TQM). Philip B. Crosby, on the other hand, is known for his concept of 'Zero Defects' and not the 'Fourteen Points' system.

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12. What is referent power?

Explanation

Referent power is based on admiration and emulation towards a leader, not on formal authority, rewards/punishments, or coercive tactics.

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13. What are the three managerial roles identified by Henry Mintzberg?

Explanation

Henry Mintzberg identified three broad categories of managerial roles that encompass the various activities managers engage in within an organization.

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14. What are the steps in the decision-making process?

Explanation

The correct answer outlines the systematic approach to decision-making, which involves defining the problem, considering limiting factors, generating alternatives, implementing the decision, and setting up an evaluation system for feedback and control. The incorrect answers suggest haphazard or ineffective methods that deviate from the structured process.

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15. What is the Delphi Technique?

Explanation

The Delphi Technique is a method used in group decision-making and forecasting, not related to statistical analysis, meditation, or cooking.

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16. Who is Max Weber (1864-1920) known for?

Explanation

Max Weber is known for his work in sociology, particularly his analysis of bureaucracy and its structure.

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17. What are the different types of authority?

Explanation

Line Authority refers to the authority within the chain of command, Staff Authority refers to support roles, and Team Authority refers to authority within a specific team or group.

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18. Who developed the 14 Principles of Management?

Explanation

Henry Fayol, a French mining engineer and management theorist, is credited with developing the 14 Principles of Management. These principles are still widely used in management studies and practices.

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19. What are the motivators according to Frederick Herzberg's motivation theory?

Explanation

The correct motivators according to Herzberg's motivation theory are achievement, recognition, growth / advancement and interest in the job. These factors result from internal generators in employees, yielding motivation rather than movement.

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20. What is a company's Balance Sheet?

Explanation

A company's Balance Sheet is a financial statement that provides a snapshot of what a company owns and owes at a specific point in time. It includes assets, liabilities and net worth, not marketing strategy, customer satisfaction ratings or employee payroll expenses.

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21. What is leadership?

Explanation

Leadership is not just about being in charge or having authority; it is about inspiring and motivating employees to work towards a common goal in a positive manner.

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22. What is the first management position to which most employees will be promoted?

Explanation

The first management position most employees will be promoted to is typically a 'Supervisor' role, overseeing a team or department.

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23. Who is known as the Father of Scientific Management?

Explanation

Frederick Taylor is often referred to as the Father of Scientific Management due to his groundbreaking work in the field.

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24. What traits do Initiative Managers possess?

Explanation

Initiative Managers are required to be self-starters who take charge of projects and drive them forward with ambition and perseverance, rather than waiting for guidance or direction from others.

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25. What were the Hawthorne Experiments (Elton Mayo) conducted to test?

Explanation

The Hawthorne Experiments were conducted at AT&T's Western Electric Hawthorne Plant to test the impact of lighting on productivity. The experiments yielded unexpected results regarding human factors in the workplace.

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26. Organic Structure (vs. Mechanistic Structure) in Organizational Theory.

Explanation

Organic structure in organizational theory is characterized by flexibility and adaptability, making it suitable for companies that deal with unique products or services. Mechanistic structure, on the other hand, is more rigid and best for organizations with standardized tasks. Fast-growing start-ups often benefit from organic structures due to the need for quick adjustments, while highly bureaucratic organizations typically operate under mechanistic structures to maintain stability and control.

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27. What is synergy?

Explanation

Synergy refers to the concept that a system can achieve greater results when working together than the individual parts could accomplish on their own. It emphasizes the combined effect of different parts working together in harmony.

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28. What is negotiation?

Explanation

Negotiation is a process where parties try to find a mutually agreeable solution by working together, communicating effectively, and compromising when necessary.

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What is management?
What is an operational goal?
Who is known as another founding member of the classical management...
What is Product Development?
What does Informal Organization emphasize?
What are the characteristics of Mechanistic Structure (vs. Organic...
Who is known for contributing two theories of motivation: the Hygiene...
What are the hygiene factors according to Frederick Herzberg's...
What is included in Abraham Maslow's Hierarchy of Needs motivational...
What is the Grapevine in an organization?
Who is known as the creator of the 'Fourteen Points' system for...
What is referent power?
What are the three managerial roles identified by Henry Mintzberg?
What are the steps in the decision-making process?
What is the Delphi Technique?
Who is Max Weber (1864-1920) known for?
What are the different types of authority?
Who developed the 14 Principles of Management?
What are the motivators according to Frederick Herzberg's motivation...
What is a company's Balance Sheet?
What is leadership?
What is the first management position to which most employees will be...
Who is known as the Father of Scientific Management?
What traits do Initiative Managers possess?
What were the Hawthorne Experiments (Elton Mayo) conducted to test?
Organic Structure (vs. Mechanistic Structure) in Organizational...
What is synergy?
What is negotiation?
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