CLEP - Principles Of Management

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1. The consistent line of relationship from the top to the bottom of an organization is called the

Explanation

The chain of command refers to the clear and hierarchical line of authority and communication within an organization. It establishes who reports to whom and ensures that there is a clear flow of information and decision-making from top-level management to lower-level employees. This structure helps maintain order, accountability, and efficient functioning within the organization.

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CLEP - Principles Of Management - Quiz

Explore key management principles in this CLEP - Principles of Management quiz. Assess skills in organizing, understanding labor contracts, chain of command, operational goals, system management theory, and... see moreaccountability. Ideal for learners aiming to enhance their management expertise. see less

2. When an employee is downgraded to a job with lesser significance, authority, and responsibility, it is known as a

Explanation

A demotion refers to the situation where an employee is moved to a job position with lower significance, authority, and responsibility. This can happen due to various reasons such as poor performance, company restructuring, or disciplinary actions. It is the opposite of a promotion, where an employee is moved to a higher-level position. A demotion may result in a decrease in salary, benefits, and job satisfaction for the employee.

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3. Answering for one's own actions and accepting responsibility for them is known as

Explanation

Accountability refers to the act of taking responsibility for one's own actions. It involves acknowledging the consequences of one's decisions and behaviors, whether positive or negative. By being accountable, individuals demonstrate their willingness to accept ownership of their actions and the outcomes that arise from them. This trait is essential in various aspects of life, including personal relationships, professional settings, and leadership roles. It fosters trust, integrity, and growth, as individuals are held responsible for their choices and are motivated to learn from their mistakes.

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4. Which school of management focus on the human-based elements of work?

Explanation

The school of management that focuses on the human-based elements of work is the behavioral school. This school emphasizes the importance of understanding human behavior and motivation in order to effectively manage and lead employees. It recognizes that individuals have different needs, motivations, and attitudes, and that these factors greatly influence their performance and productivity in the workplace. The behavioral school of management places a strong emphasis on creating a positive work environment, fostering good relationships between managers and employees, and using incentives and rewards to motivate individuals to perform at their best.

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5. Which of the following provides new employees with basic information about the organization for which they are working?

Explanation

Job orientation provides new employees with basic information about the organization for which they are working. During job orientation, employees are introduced to the company's mission, values, policies, and procedures. They also receive information about their specific job responsibilities and expectations. Job orientation helps new employees become familiar with the organization's culture and structure, enabling them to integrate into the workplace more effectively. It is an essential process that helps new hires feel welcomed and prepared to contribute to the organization's goals.

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6. When an employee asks her manager for a salary increase, it is an example of

Explanation

When an employee asks her manager for a salary increase, it is an example of upward communication because the information is being conveyed from a lower level employee (the employee) to a higher level employee (the manager). Upward communication is the flow of information from lower levels of a hierarchy to higher levels, allowing employees to express their needs, concerns, or ideas to their superiors. In this case, the employee is expressing her desire for a salary increase, which requires communication with her manager, who has the authority to make decisions regarding salary adjustments.

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7. An employee can refer to a work schedule to find out all of the following EXCEPT

Explanation

An employee can refer to a work schedule to find out which projects are currently underway, assignments for work teams, assignments for individual employees, and deadlines. However, the work schedule does not typically include information about the funds that have been allocated to a project. This financial information is usually managed and communicated separately from the work schedule.

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8. An effective goal should be

Explanation

An effective goal should be achievable because setting unrealistic or unattainable goals can lead to frustration and demotivation. By setting achievable goals, individuals can maintain a sense of progress and accomplishment, which can further motivate them to continue working towards their objectives. Additionally, achievable goals are more likely to be specific and measurable, making it easier to track progress and make necessary adjustments along the way.

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9. A tax that is placed on a country's or region's imports and/or exports as a result of a political event is known as a(n)

Explanation

A tax that is placed on a country's or region's imports and/or exports as a result of a political event is known as a tariff. Tariffs are often used as a tool by governments to protect domestic industries, control trade, or retaliate against other countries. They can be imposed on specific goods or across a wide range of products, and they increase the cost of imported goods, making them less competitive in the domestic market. Tariffs can also be used to generate revenue for the government.

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10. Laura and Sal are both customer service representatives. Laura works from 8 am to 3 pm daily, and Sal works from 10 am to 5 pm daily. This situation is an example of

Explanation

This situation is an example of flextime because both Laura and Sal have the flexibility to choose their own start and end times within a specified range. Laura chooses to work from 8 am to 3 pm, while Sal chooses to work from 10 am to 5 pm. Flextime allows employees to have control over their work schedule, which can help improve work-life balance and accommodate personal needs or preferences.

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11. An incentive-based pay system is based on an employee's

Explanation

An incentive-based pay system is based on an employee's performance because it rewards employees for their achievements and productivity. This type of pay system motivates employees to perform at their best and exceed expectations in order to earn higher compensation. It encourages a results-oriented mindset and fosters a competitive work environment where individuals are driven to excel in their roles. By linking pay to performance, organizations can effectively align employee efforts with company goals and objectives, leading to improved overall performance and success.

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12. An employee is LEAST likely to attain a goal that

Explanation

An employee is least likely to attain a goal that is vague because vague goals lack clarity and specificity, making it difficult for the employee to understand exactly what is expected of them. Without clear guidelines or objectives, the employee may struggle to determine the necessary steps to achieve the goal and may become demotivated or confused. In contrast, goals that consist of familiar tasks, are measurable, associated with a reward, or have a deadline provide clear direction and a sense of purpose, increasing the likelihood of successful goal attainment.

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13. The obligation that an employee is assuming when he accepts an assigned task is known as

Explanation

When an employee accepts an assigned task, they are taking on the obligation to complete it. This obligation is known as responsibility. The employee is expected to fulfill their duties and ensure that the task is done effectively and efficiently. Responsibility involves being accountable for the outcome of the task and taking ownership of the work assigned to them. It is an essential attribute for any employee as it demonstrates reliability, professionalism, and dedication towards their job.

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14. As a business expands, it will tend to become

Explanation

As a business expands, it will tend to become more hierarchical. This is because as the organization grows in size and complexity, there is a need for a clear chain of command and structure to ensure effective coordination and decision-making. A hierarchical structure helps to establish clear lines of authority, responsibilities, and reporting relationships, which can facilitate efficient communication and coordination within the organization. Additionally, a hierarchical structure can also help in managing and controlling the various functions and departments of the expanding business.

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15. Which management theory most directly addresses the human dimension of the workplace?

Explanation

Behavioral management theory most directly addresses the human dimension of the workplace. This theory focuses on understanding and influencing employee behavior to improve performance and productivity. It emphasizes the importance of motivation, leadership, communication, and teamwork in achieving organizational goals. By studying human behavior in the workplace, managers can identify ways to create a positive work environment, enhance employee satisfaction, and promote effective decision-making. This theory recognizes that employees are not just resources but individuals with unique needs, motivations, and aspirations.

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16. The formal right that a manager possesses to delegate responsibility, make decisions, and allocate resources is known as

Explanation

Authority refers to the formal right that a manager possesses to delegate responsibility, make decisions, and allocate resources. It is the power granted to a manager to direct and control the actions of subordinates and enforce organizational policies and procedures. Authority is essential for effective management as it provides the manager with the ability to command and influence others in order to achieve organizational goals. It is different from power, which refers to the ability to influence others, and responsibility, which refers to the obligation to perform assigned tasks. Accountability refers to the obligation to take responsibility for one's actions. Leadership, on the other hand, is the ability to inspire and motivate others towards a common goal.

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17. Which of the following statements about communication in the workplace in valid?

Explanation

Communication in the workplace is not limited to a single direction. It flows in multiple directions, including upwards, downwards, and horizontally. This means that communication occurs between employees and their superiors (upwards), between superiors and their subordinates (downwards), and between colleagues at the same level (horizontally). Effective communication in all directions is essential for a well-functioning workplace and ensures that information, feedback, and ideas are shared and understood by all members of the organization.

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18. The relationship between the positions at a company and its employees can best be determined by consulting a(n)

Explanation

An organization chart is a visual representation that shows the hierarchy and relationships between positions within a company. It provides a clear structure and helps to understand the reporting lines, roles, and responsibilities of employees at different levels. By consulting an organization chart, one can easily determine the relationship between positions and employees in a company. It helps in understanding the chain of command, communication flow, and overall structure of the organization.

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19. All managers can be considered to be what type of managers?

Explanation

The given question asks about the type of managers that all managers can be considered as. The correct answer is "Human resource" because regardless of the specific department or function they oversee, all managers have the responsibility of managing and leading the people within their organization. Human resource management involves managing employees, their recruitment, training, performance evaluation, and other aspects related to the workforce. Therefore, all managers can be considered as human resource managers in the broader sense.

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20. Firms that continually evolve and encourage employees to improve performance based on their experiential lessons are called

Explanation

Learning organizations are firms that continually evolve and encourage employees to improve performance based on their experiential lessons. These organizations prioritize learning and development, creating a culture of continuous improvement. They value employee input, encourage knowledge sharing, and promote innovation. By fostering a learning mindset, these organizations adapt to changes in the market and stay ahead of the competition.

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21. Which of the following would be an example of a change in a restaurant manager's internal environment?

Explanation

A revision made in waitstaff procedures would be an example of a change in a restaurant manager's internal environment because it involves changes made within the restaurant's own operations and processes. This change directly affects the internal functioning of the restaurant and how the waitstaff carries out their duties. It does not involve external factors such as health code changes, supplier prices, or the presence of a similar restaurant in town.

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22. Which of the following is a network scheduling system designed to speed up the process of project management?

Explanation

The correct answer is PERT. PERT stands for Program Evaluation and Review Technique, which is a network scheduling system that is used to streamline and expedite the project management process. PERT helps in planning, scheduling, and controlling tasks involved in a project, allowing for better coordination and efficiency. It is particularly useful for complex and time-sensitive projects where multiple activities and dependencies need to be managed effectively.

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23. Bureaucracies are traditionally known for being

Explanation

Bureaucracies are traditionally known for being procedure-based because they follow a strict set of rules and regulations in order to maintain order and consistency. This ensures that tasks and decisions are made in a systematic and standardized manner, reducing the potential for errors or biases. Bureaucracies prioritize following established procedures and protocols, which can sometimes lead to a slower decision-making process but also provides a sense of structure and accountability.

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24. Which of the following is a criterion for an employee to be eligible for unemployment insurance?

Explanation

To be eligible for unemployment insurance, one of the criteria is that the employee should not be responsible for losing the job. This means that the employee must have been laid off due to reasons beyond their control, such as company downsizing or closure. If the employee was fired, resigned, or was a manager, they may not be eligible for unemployment insurance as these circumstances suggest some level of responsibility on the part of the employee for the job loss. Additionally, the fact that the employee participated in profit sharing is not mentioned as a criterion for eligibility.

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25. If a retail sales manger instructs each salesperson to sell at least 12 cell phone plans each day, this would be an example of what kind of goal?

Explanation

This goal is an example of an operational goal because it focuses on the day-to-day tasks and activities that need to be performed in order to achieve the overall objectives of the organization. The sales manager is providing specific instructions to the salespeople on the number of cell phone plans they should sell each day, which is a tactical and operational aspect of the business. This goal is not long-term or open-ended as it has a specific target and timeframe.

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26. Among the following steps, which would be the first step in the process of seeing if a job candidate is suitable for a position?

Explanation

The first step in the process of seeing if a job candidate is suitable for a position would be reviewing the candidate's application. This step involves going through the candidate's resume, cover letter, and any other supporting documents they have submitted to assess their qualifications, skills, and experience. It helps in determining if the candidate meets the basic requirements of the position and if they should be considered for further evaluation, such as an interview or reference check.

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27. A top-level manager would most likely be involved in devising which of the following goal types?

Explanation

A top-level manager would most likely be involved in devising strategic goals. Strategic goals are long-term objectives that focus on the overall direction and success of the organization. These goals are typically set by top-level management and involve making decisions that affect the entire organization. Short-term goals, tactical goals, and operational goals are typically set by middle and lower-level managers and focus on more specific and immediate objectives. Open-ended goals are not a recognized goal type in management.

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28. A formal statement of complaint about a situation, usually made by an employee or group of employees to management it is called a(n)

Explanation

A formal statement of complaint about a situation, usually made by an employee or group of employees to management is called a grievance. This term is commonly used in labor relations to describe the process of addressing and resolving workplace issues or conflicts. It allows employees to express their concerns and seek a resolution through formal channels.

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29. Bureaucracies are characterized by

Explanation

Bureaucracies are characterized by formal procedures and rules. This means that there are established guidelines and protocols that need to be followed in order to carry out tasks and make decisions. These procedures and rules help to ensure consistency, fairness, and accountability within the organization. They also provide a clear structure and framework for employees to work within. By having formal procedures and rules, bureaucracies aim to minimize ambiguity and maintain order and efficiency in their operations.

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30. A system's tendency to go toward inefficiency if left to its own devices is known as

Explanation

Entropy is the correct answer because it refers to a system's tendency to go toward inefficiency if left to its own devices. Entropy is a measure of disorder or randomness in a system, and in the context of systems theory, it describes the natural tendency of a system to move from a state of order to a state of disorder over time. This concept is commonly used in fields such as thermodynamics and information theory to explain the natural progression towards chaos and inefficiency in systems.

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31. An employee's performance appraisal can be used to justify all of the following EXCEPT

Explanation

An employee's performance appraisal can be used to justify entering the employee in a training program, offering the employee a promotion, increasing the employee's salary, or terminating the employee. However, canceling the employee's worker's compensation insurance is not directly related to their performance appraisal. Worker's compensation insurance is typically based on legal requirements and not influenced by an individual's performance evaluation.

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32. Which of the following components of an e-business is included under the term e-commerce?

Explanation

E-commerce refers to the buying and selling of goods and services over the internet. Sales is a key component of e-commerce as it involves the process of selling products or services online. It includes activities such as product listing, order processing, payment transactions, and customer support. Therefore, sales is included under the term e-commerce as it is an essential part of conducting business online.

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33. The existing condition in an organization is known as the

Explanation

The existing condition in an organization is known as the "status quo." This refers to the current state or situation within the organization, including its processes, policies, and practices. It implies that things are staying the same and there is resistance to change or innovation. The status quo can be seen as a barrier to progress and may hinder the organization from adapting to new challenges or opportunities.

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34. According to the Blake-Mouton managerial grid model, the authoritarian leadership style is characterized by

Explanation

The Blake-Mouton managerial grid model suggests that the authoritarian leadership style is characterized by low-level concern with people and high-level concern with production. This means that leaders who adopt this style prioritize achieving goals and maximizing productivity over building relationships and considering the needs and well-being of their team members. They tend to focus on setting strict rules and expectations, maintaining control, and emphasizing efficiency and results. This style can be effective in certain situations where quick decision-making and task completion are crucial, but it may also lead to a lack of employee engagement and satisfaction.

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35. Which stage of team development is characterized by conflict and competitiveness?

Explanation

The stage of team development characterized by conflict and competitiveness is called "storming". During this stage, team members may have different ideas and opinions, leading to disagreements and power struggles. Conflict is common as individuals try to establish their roles and influence within the team. Competitiveness may arise as team members vie for leadership positions or recognition. This stage is crucial for the team to move forward and establish clear goals and norms.

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36. A law mandating that employers make special efforts to promote and hire members of protected groups is known as

Explanation

Affirmative action refers to a law mandating that employers make special efforts to promote and hire members of protected groups. This policy aims to address historical discrimination and promote equal opportunities in employment. By implementing affirmative action, employers are encouraged to actively recruit and consider candidates from underrepresented groups, ensuring a more diverse and inclusive workforce. This helps to create a level playing field and reduce disparities in employment opportunities based on race, gender, or other protected characteristics.

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37. An electronics company strives to be the first company out with the latest technological advancements. What kind of strategy is it employing?

Explanation

The electronics company is employing a differentiation strategy. This means that they are focusing on offering unique and innovative products or services that set them apart from their competitors. By striving to be the first company out with the latest technological advancements, they are positioning themselves as leaders in the industry and attracting customers who value cutting-edge technology. This strategy allows them to differentiate themselves from other companies and gain a competitive advantage.

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38. A decision-making technique that shows a complete picture of several alternative decision paths is called a(n)

Explanation

A decision tree is a decision-making technique that visually represents different decision paths and their potential outcomes. It provides a comprehensive view of the alternatives available and helps in evaluating the potential consequences of each decision. By mapping out different paths, decision makers can analyze the risks and benefits associated with each option and make an informed choice. Decision trees are particularly useful when dealing with complex decisions that involve multiple variables and uncertainties. They help in systematically exploring different possibilities and identifying the optimal course of action.

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39. Which of the following best describes a situation where two international firms that are traditionally competitors decide to work cooperatively and modify their products to meet foreign market demands?

Explanation

A joint venture refers to a situation where two international firms, which are traditionally competitors, decide to work cooperatively and modify their products to meet foreign market demands. In a joint venture, the two firms come together and create a separate entity to pursue a specific business opportunity. This allows them to combine their resources, expertise, and market knowledge to enter a foreign market more effectively. By collaborating and adapting their products to meet the demands of the foreign market, the firms can benefit from each other's strengths and gain a competitive advantage.

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40. An employee's benefits package may include I. salary II. vacation time III. a bonus  

Explanation

The correct answer is II and III only. This means that an employee's benefits package may include vacation time and a bonus, but not necessarily a salary. Salaries are typically part of an employee's regular compensation and not considered a part of their benefits package. However, vacation time and bonuses are additional perks that employers may offer to their employees as part of their benefits package.

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41. Joseph Juran believed that most quality problems are the fault of 

Explanation

Joseph Juran believed that most quality problems are the fault of Managers. Juran emphasized the importance of management's role in ensuring quality and believed that managers have the responsibility to set and enforce quality standards, provide resources and training to employees, and create a culture of continuous improvement. He believed that managers have the power to influence and control the processes that affect quality, and therefore, they are primarily responsible for preventing and solving quality problems.

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42. A team leader accepts credit for his team's successes but blames individual members for failures. What error of perception is he exhibiting?

Explanation

The team leader is exhibiting self-serving bias, which is the tendency to attribute successes to oneself while blaming others for failures. This bias allows the leader to maintain a positive self-image and protect their self-esteem by taking credit for the team's successes, but shifting blame onto individual members for failures. This bias can create a toxic work environment and hinder team collaboration and growth.

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43. Which of the following strategies for managing conflict involves calls for a direct verbalizing of the conflict at hand?

Explanation

Confrontation is a strategy for managing conflict that involves directly verbalizing the conflict at hand. It is a direct approach where individuals openly address the issues causing the conflict and express their concerns, emotions, and opinions. This strategy aims to resolve the conflict by encouraging open communication and allowing both parties to express their perspectives. Confrontation can be effective in resolving conflicts as it promotes understanding, problem-solving, and finding mutually agreeable solutions.

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44. Which of the following types of management is responsible for monitoring the conversion of inputs to outputs?

Explanation

Operations management is responsible for monitoring the conversion of inputs to outputs. This involves overseeing the production process, ensuring that resources are efficiently utilized, and quality standards are met. Operations management focuses on improving productivity, reducing costs, and maximizing efficiency in the production and delivery of goods and services. It involves activities such as planning, organizing, controlling, and coordinating various aspects of the production process to achieve organizational goals.

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45. A group working together to generate ideas is described as

Explanation

Brainstorming is a group activity where individuals come together to generate creative ideas and solutions. It encourages open and free-thinking, allowing everyone to contribute without judgment or criticism. This process promotes collaboration, diversity of perspectives, and the exploration of different possibilities. It is an effective way to generate innovative solutions and foster teamwork within a group.

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46. A collective bargaining agreement functions as which of the following?

Explanation

A collective bargaining agreement functions as a labor contract. It is a legally binding agreement between an employer and a labor union that outlines the terms and conditions of employment for the workers represented by the union. The agreement covers various aspects such as wages, benefits, working hours, and grievance procedures. It is negotiated through collective bargaining and serves as a framework for the employment relationship between the employer and the employees.

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47. Which of the following would NOT be considered a separation?

Explanation

A demotion would not be considered a separation because it does not involve the termination or voluntary departure of an employee from their current position. Instead, it refers to a change in job title or a decrease in job responsibilities within the same organization. While retirement, firing, layoff, and resignation all involve a complete separation from the current job, a demotion implies a change in role or status within the company without severing the employment relationship.

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48. Management theorist Peter Drucker believes that which of the following is key to good leadership?

Explanation

Consistency is key to good leadership according to management theorist Peter Drucker. Being consistent in one's actions and decisions helps to build trust and credibility among team members. Consistency also ensures that leaders are fair and predictable, which fosters a positive and stable work environment. Additionally, consistent leadership helps to create a sense of direction and purpose, as team members know what to expect and can align their efforts accordingly.

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49. Which of the following statements about the laissez-faire style of leadership is valid?

Explanation

The valid statement about the laissez-faire style of leadership is that it works best with a motivated, experienced, and skilled team. This style of leadership is characterized by minimal interference from the leader, allowing team members to have autonomy and make decisions on their own. It is most effective when team members are self-motivated, knowledgeable, and capable of working independently.

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50. Which of the following explains the relevance of figures that appear on financial statements as well as the relationships between certain figures?

Explanation

Financial-ratio analysis is the correct answer because it involves the examination and interpretation of various ratios derived from financial statements. These ratios help in understanding the relationships between different figures on the financial statements, such as liquidity, profitability, and efficiency. By analyzing these ratios, stakeholders can evaluate the financial health and performance of a company, make informed investment decisions, and assess its ability to meet its financial obligations. Therefore, financial-ratio analysis is directly relevant to understanding the figures on financial statements and the connections between them.

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51. The 14 principles of management were developed by

Explanation

Henri Fayol is the correct answer because he is widely recognized as the developer of the 14 principles of management. Fayol was a French mining engineer and management theorist who proposed these principles in his book "General and Industrial Management" in 1916. These principles provide a framework for effective management practices and cover various aspects such as division of work, unity of command, scalar chain, and more. Fayol's principles have had a significant influence on modern management theory and are still widely taught and applied in organizations today.

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52. The kind of power that lies in the authority granted to a formally assigned position is known as

Explanation

Legitimate power refers to the authority granted to a person based on their position or role in an organization. This type of power is derived from the formal hierarchy and is accepted by others as a valid source of authority. It is different from other types of power, such as coercive or reward power, which are based on the ability to give or withhold rewards or punishments. Legitimate power is based on the belief that the person in the position has the right to make decisions and give orders, and it is typically associated with leadership roles in organizations.

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53. Which of the following is NOT a valid comparison between group decision making and individual decision making?

Explanation

The given statement is not a valid comparison between group decision making and individual decision making because it states that individual decision-making processes are usually more time-consuming than group decision-making processes. This statement does not accurately compare the two methods as the time it takes to make a decision can vary depending on the complexity of the situation, the individuals involved, and other factors. Therefore, this statement does not provide a valid comparison between group and individual decision making.

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54. Kyle's manager has passed him over for a promotion many times because she believes that he lacks leadership skills. As a result, Kyle now assumes a passive role when working in a team environment. What is this situation an example of?

Explanation

The given situation is an example of the Pygmalion effect. The Pygmalion effect refers to the phenomenon where individuals perform better or worse based on the expectations others have of them. In this case, Kyle's manager's belief that he lacks leadership skills has led to him assuming a passive role in team environments, possibly because he feels that his efforts will not be recognized or rewarded.

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55. Which of the following relationship were the Hawthrone experiments originally designed to study

Explanation

The Hawthorne experiments were originally designed to study the impact of illumination on factory worker output. These experiments were conducted at the Western Electric Hawthorne Works in Chicago between 1924 and 1932. The researchers wanted to determine whether changing the lighting conditions in the workplace would have an effect on productivity. They found that regardless of whether the lighting was increased or decreased, worker output improved. This led to the discovery of the Hawthorne effect, which suggests that workers' productivity can be influenced by factors other than just the physical environment.

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56. The European Union was established by which of the following?

Explanation

The Maastricht Treaty is the correct answer because it is the treaty that established the European Union. Signed in 1992 in Maastricht, Netherlands, the treaty laid the foundation for the EU by creating a framework for political and economic integration among member states. It established the European Central Bank, introduced the euro as the common currency, and expanded the EU's competences in areas such as foreign policy and justice. The treaty also introduced the concept of European citizenship, granting EU citizens additional rights and protections.

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57. If a college student signed up for a course based on the recommendation of an advisor who has always made wise suggestions in the past, which type of power would the advisor have?

Explanation

The advisor would have expert power. Expert power is based on the knowledge, skills, and expertise that a person possesses. In this scenario, the advisor's past track record of making wise suggestions indicates that they have a high level of expertise in recommending courses. The college student trusts the advisor's judgment and signs up for the course based on their expert knowledge.

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58. Which of the following is NOT characteristic of an informal organization?

Explanation

An informal organization is characterized by its lack of a definable chain of command. Unlike a formal organization, where roles and responsibilities are clearly defined, an informal organization operates based on personal relationships and social interactions. It forms naturally among individuals within a formal organization and is not exclusive, meaning anyone can be a part of it. The grapevine, or informal communication network, is a common feature of an informal organization. Therefore, the statement "It has a definable chain of command" does not align with the characteristics of an informal organization.

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59. An organizational culture that emphasizes adherence to authority is most likely characterized by which of the following?

Explanation

An organizational culture that emphasizes adherence to authority is most likely characterized by high power distance. This means that there is a significant gap between those in positions of power and authority and the rest of the employees. In such a culture, there is a strong emphasis on hierarchy, respect for authority, and a clear distinction between superiors and subordinates. Employees are expected to follow instructions without questioning or challenging those in power, and decision-making is centralized at the top levels of the organization.

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60. A multinational company has concerns about acquiring the raw materials it needs in a foreign country. Its concerns pertain to which of the following environments?

Explanation

The concerns of the multinational company about acquiring raw materials in a foreign country are related to the economic environment. This implies that the company is worried about factors such as the availability, cost, and stability of the raw materials in the foreign country. Economic conditions, such as inflation, exchange rates, and government policies, can significantly impact the company's ability to procure the necessary raw materials for its operations. Therefore, the economic environment is the most relevant in this context.

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61. According to David McClelland's acquired needs theory, which of the following would be LEAST important to an individual with a high need for power?

Explanation

An individual with a high need for power is primarily motivated by the desire to control and influence others. They are driven by the need to have authority and make decisions. Effective performance, while important in general, may be considered least important to them as their main focus is on exerting power and control over others rather than achieving high performance themselves.

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62. A school begins using a computerized database to locate alumni. The initiation of this tracking system represents what kind of change?

Explanation

The initiation of a computerized database to locate alumni represents a process-oriented change. This change focuses on improving and streamlining the process of locating alumni by replacing manual methods with a computerized system. It aims to enhance efficiency and effectiveness in tracking and managing alumni data.

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63. Which managerial function is characterized by a manger assigning employees tasks and granting them the authority to complete them?

Explanation

Organizing is the managerial function that involves assigning tasks to employees and granting them the authority to complete those tasks. This function focuses on structuring the resources and activities of the organization in order to achieve its goals effectively. By organizing, managers ensure that the right people are assigned the right tasks, and they are given the necessary authority and resources to carry out their responsibilities. This helps in creating a clear hierarchy, establishing coordination, and enhancing productivity within the organization.

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64. Which of the following helps to reduce customer waiting time and costs by properly allocating workstations and human resources?

Explanation

Queuing theory is a mathematical approach that helps in reducing customer waiting time and costs by efficiently allocating workstations and human resources. It involves analyzing and optimizing the flow of customers through a system, taking into consideration factors such as arrival rates, service rates, and the number of servers available. By using queuing theory, businesses can make informed decisions about resource allocation, staffing levels, and service improvements to minimize waiting times and costs for customers.

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65. Which of the following is a tool designed to determine an individual's mental and emotional preferences for dealing with common issues?

Explanation

The MBTI (Myers-Briggs Type Indicator) is a tool specifically designed to assess an individual's mental and emotional preferences when it comes to dealing with common issues. It is a widely used personality assessment tool that categorizes individuals into different personality types based on their preferences in four key areas: extraversion/introversion, sensing/intuition, thinking/feeling, and judging/perceiving. The MBTI helps individuals gain insights into their own preferences and can be used for personal development, career counseling, and team building purposes.

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66. Which of the following is NOT an effect of an increase in the use of computer technology in the workplace?

Explanation

An increase in the use of computer technology in the workplace has led to several effects. Some employees have developed computer-related disabilities due to prolonged computer use. Employees are able to be more productive in less time as computer technology automates tasks and improves efficiency. Technological training is required to ensure employees can effectively use the computer technology. Technological resources have replaced some human resources as computers can perform certain tasks more efficiently. However, communication costs have not increased as computer technology has made communication faster, easier, and more cost-effective.

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67. A government-imposed regulation that sets a limit for the importation of a certain product in a given year is a(n)

Explanation

A government-imposed regulation that sets a limit for the importation of a certain product in a given year is referred to as a quota. Quotas are used to restrict the quantity of imported goods in order to protect domestic industries, control trade balance, or address national security concerns. By setting a limit on imports, the government aims to regulate the availability of a specific product in the domestic market and potentially promote local production.

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68. Expert power and referent power can both be described as forms of

Explanation

Expert power refers to the influence a person has due to their knowledge, skills, and expertise in a particular field. This power comes from the perception that the person possesses valuable information or is an expert in their domain, and others trust and respect their opinions and decisions. Referent power, on the other hand, is based on the personal qualities and characteristics of an individual that make them likable or admirable. People with referent power are influential because others are drawn to them and want to be like them. Both expert power and referent power are forms of personal power because they are based on individual attributes and qualities rather than formal positions or authority.

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69. Which of the following terms best describes a corporation's hiring policy?

Explanation

A standing plan is a term that best describes a corporation's hiring policy. A standing plan refers to a set of policies and procedures that are designed to be used repeatedly over time. In the context of a corporation's hiring policy, a standing plan would outline the company's standard procedures for recruiting, interviewing, and selecting new employees. This plan would be in place for an extended period and would be used consistently for all hiring needs.

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70. If a team leader believes that a lack of cohesiveness is hurting a team's performance, what would be the most effective action to take?

Explanation

Rewarding team accomplishments would be the most effective action to take if a team leader believes that a lack of cohesiveness is hurting a team's performance. By recognizing and rewarding the achievements of the entire team, it promotes a sense of unity and collaboration among team members. This can help improve cohesiveness and motivate individuals to work together towards a common goal. Rewarding team accomplishments also encourages teamwork and fosters a positive team culture, which can ultimately enhance the team's performance.

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71. According to Total Quality Management (TQM), what would the relationship be between a stereo manufacturer and a retail store salesperson that sells the stereo?

Explanation

In Total Quality Management (TQM), the relationship between a stereo manufacturer and a retail store salesperson that sells the stereo would be that the salesperson is the stereo manufacturer's customer. This means that the salesperson purchases the stereo from the manufacturer in order to sell it to customers. The manufacturer relies on the salesperson to buy their product and generate sales.

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72. All of the following EXCEPT which is a criterion for a group to be considered a team?

Explanation

A criterion for a group to be considered a team is that group members must agree on issues relevant to the project at hand. This means that team members need to have a shared understanding and consensus on the decisions and actions taken in relation to the project. However, the other options mentioned in the question are all criteria for a group to be considered a team. These include having two or more individuals in the group, regular interactions among group members, a unified purpose, and coordination of work to accomplish team goals.

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73. Which of the following is NOT a benefit of a company instituting a TQM (Total Quality Management) program?

Explanation

Implementing programs quickly and inexpensively is not a benefit of a company instituting a TQM program. TQM focuses on improving quality and efficiency within an organization, rather than prioritizing speed and cost. TQM emphasizes continuous improvement, customer satisfaction, and employee involvement, which may require more time and resources to implement effectively. However, the benefits of TQM include acquiring a reputation for quality, getting better returns on investments, improving customer retention, and being able to charge higher prices for goods or services.

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74. According to the system management theory, which of the following would NOT be considered to be an input?

Explanation

In the system management theory, inputs are the resources or elements that are used to produce outputs. Capital, raw materials, employees, and machinery are all considered inputs because they contribute to the production process. However, products are not considered inputs as they are the result or output of the production process.

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75. All of the following EXCEPT which is a result of employees becoming empowered?

Explanation

Empowerment of employees typically leads to a less hierarchical management structure. When employees are empowered, they are given more autonomy and decision-making authority, which reduces the need for a strict top-down management approach. Instead, organizations become more decentralized, allowing employees to have more control over their work and decision-making processes. Empowerment also means that employees are less strictly monitored, as trust and autonomy are given to them. Additionally, jobs become more flexibly designed to accommodate the empowered employees' needs and preferences. Lastly, empowering employees enables the organization to respond better to a volatile environment by leveraging the diverse skills and knowledge of its workforce.

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76. Which of following is an example of how a manger can employ boundary spanning?

Explanation

Attending industry-related conferences is an example of how a manager can employ boundary spanning. By attending these conferences, managers can establish connections and build relationships with professionals from other organizations and industries. This allows them to gather information, share ideas, and stay updated on industry trends and best practices. It also provides opportunities for collaboration and partnership, which can benefit the manager's own organization.

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77. Each of the following is a level of Kohlberg's model of moral development EXCEPT:

Explanation

Kohlberg's model of moral development consists of six stages, which are categorized into three levels: preconventional, conventional, and postconventional. The stages within each level are sequential, meaning that individuals must progress through them in a specific order. Therefore, "Sequential" is not a level in Kohlberg's model, making it the correct answer.

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78. Which of the following is an example of an indirectly interactive force in a manager's external environment?

Explanation

Improvement to management information systems (MIS) is an example of an indirectly interactive force in a manager's external environment because it does not directly interact with the manager or the organization. Instead, it influences the manager's decision-making process and the overall functioning of the organization by providing better and more accurate information. This indirectly affects the manager's ability to make informed decisions and manage the organization effectively.

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79. Which of the following is exempt from complying with the provisions of Title VII of the 1964 Civil Rights Act, which deals with employment practices?

Explanation

A private employer of a 12-person staff is exempt from complying with the provisions of Title VII of the 1964 Civil Rights Act, which deals with employment practices. Title VII applies to employers with 15 or more employees, so a private employer with only a 12-person staff falls below this threshold and is therefore exempt from the Act's requirements.

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80. Reengineering brings about improvement in quality by

Explanation

Reengineering involves making significant changes to existing processes in order to achieve rapid and transformative improvements. By restructuring processes, organizations can eliminate inefficiencies, streamline workflows, and implement new technologies or strategies that lead to fast and impactful changes. This approach aims to bring about a radical shift in the way things are done, rather than making incremental improvements over time. The focus is on achieving quick and substantial results, rather than adhering to rules or protocols or working towards long-term goals.

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81. An organization is most likely to be decentralized under which of the following circumstances?

Explanation

An organization is most likely to be decentralized under the circumstance when the external environment is dynamic. In a dynamic environment, the organization needs to be flexible and adaptable to respond quickly to changes and uncertainties. Decentralization allows for decision-making authority to be distributed to lower levels of the organization, enabling faster decision-making and better responsiveness to the changing external conditions. This helps the organization to effectively navigate through the challenges and opportunities presented by the dynamic environment.

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82. At a certain organization, budgets are developed in such a way that each allocation must be justified by how it will contribute to the company's objectives. This arrangement is an example of

Explanation

Zero-based budgeting is a budgeting approach where each allocation must be justified based on its contribution to the company's objectives. Unlike traditional budgeting methods, zero-based budgeting does not rely on previous budgets or incremental adjustments. Instead, it requires a thorough analysis and justification of every expense, starting from a "zero base." This approach ensures that resources are allocated efficiently and effectively, as each expenditure is evaluated based on its value and alignment with the company's goals.

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83. Which of the following most likely represents a lapse in business social responsibility?

Explanation

Minimizing costs spent to ensure quality control represents a lapse in business social responsibility because it prioritizes cutting expenses over ensuring the safety and satisfaction of customers. This action can lead to the production of faulty or unsafe products, potentially harming consumers and damaging the company's reputation. Business social responsibility involves considering the well-being of all stakeholders, including customers, employees, and the community, and prioritizing ethical practices and quality standards.

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84. Which of the following would be an example of a feedforward control by a university?

Explanation

Having students take a standardized admissions exam can be considered as a feedforward control by a university because it helps the university in assessing the potential of the students before they are admitted. This control measure allows the university to filter out students who may not meet the required standards or may not be a good fit for the university. By evaluating the students' abilities and knowledge through the exam, the university can make informed decisions about admissions and ensure that they are admitting students who are likely to succeed in their academic journey.

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85. Which of the following statements regarding the stages of team development is valid?

Explanation

The given statement that "Teams enter the storming phase with clarity about what their team’s mission is" is not valid. In the storming phase of team development, conflicts and disagreements arise as team members start to assert themselves and challenge each other's ideas. This phase is characterized by a lack of clarity and confusion about roles, goals, and objectives. It is during the norming stage that teams start to establish norms, resolve conflicts, and develop a clearer understanding of their mission.

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86. The stage in an organization's change process that involves challenging the status quo by pointing out the ways in which the current system is lacking is known as

Explanation

Unfreezing is the correct answer because it refers to the stage in an organization's change process where the current system is challenged and its deficiencies are pointed out. This stage involves creating awareness and preparing the organization for change by breaking down the existing mindset and beliefs. Unfreezing is necessary to overcome resistance to change and create a readiness for the subsequent stages of change.

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87. Organizational development would be an example of what kind of plan?

Explanation

Organizational development refers to the process of improving an organization's effectiveness and efficiency through planned interventions and changes. It involves aligning the organization's structure, culture, and processes with its strategic goals and objectives. A strategic plan, as opposed to an operational or tactical plan, focuses on the long-term direction and overall goals of an organization. Therefore, organizational development would be an example of a strategic plan as it involves making strategic changes to improve the organization's performance and achieve its long-term objectives.

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88. Which situation would be most likely to require more than one channel of communication?

Explanation

Training a new employee for a job requirement would most likely require more than one channel of communication because it involves a lot of information and instructions that need to be effectively conveyed. This could include face-to-face communication, written materials, visual aids, and possibly even online resources or training modules. It is important to use multiple channels to ensure that the new employee fully understands the job requirements and can perform their duties effectively.

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89. According to Henry Mintzberg, which of the following is NOT a decisional managerial role?

Explanation

According to Henry Mintzberg, the decisional managerial roles include being a disturbance handler, entrepreneur, negotiator, and resource allocator. However, the role of a monitor is not considered a decisional managerial role. The monitor role involves gathering and analyzing information, keeping track of performance indicators, and staying updated on changes in the external environment. While monitoring is an important aspect of managerial work, it is not directly involved in making decisions or taking actions.

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90. Job enlargement can motivate employees by

Explanation

Job enlargement can motivate employees by making a job more interesting. When employees are given the opportunity to work on tasks that are challenging and engaging, it can increase their motivation and job satisfaction. By adding variety and diversity to their job, employees are less likely to feel bored or stagnant in their role, leading to higher levels of engagement and productivity. Additionally, a more interesting job can also provide opportunities for skill development and growth, further enhancing employee motivation.

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91. Who among the following was NOT a contributor to the quality movement?

Explanation

Frederick Herzberg was not a contributor to the quality movement. While he made significant contributions to the field of management and motivation, his work focused primarily on job satisfaction and motivation factors, known as the Two-Factor Theory. He did not specifically contribute to the quality movement, which was more focused on improving processes and product/service quality.

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92. As a result of outsourcing, all of the following EXCEPT which is likely to decrease?

Explanation

As a result of outsourcing, all of the mentioned options are likely to decrease except for the overall work output. Outsourcing involves transferring certain tasks or functions to external parties, which can lead to a decrease in the workload of in-house employees, overall costs of benefits packages, cost of office machinery, and cost of renting office space. However, the overall work output is not likely to decrease as outsourcing allows for specialization and efficiency in the tasks being outsourced.

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93. An organization leader responsible for securing the financial resources to carry out an innovative projects is known as which of the following?

Explanation

An executive champion is an organizational leader who is responsible for securing the financial resources to carry out innovative projects. They play a crucial role in advocating for and supporting these projects within the organization, ensuring that they receive the necessary funding and resources to be successful. This role requires strong leadership skills and the ability to effectively communicate the value and potential of the projects to stakeholders and decision-makers.

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94. Which of the following individuals would have staff authority?

Explanation

A secretary who can grant approval for use of the conference room would have staff authority. Staff authority refers to the authority that is given to individuals who provide advice, support, and assistance to line managers. In this case, the secretary has the authority to grant approval for the use of the conference room, which is a supportive role that assists the line managers in their decision-making process.

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95. Philip B. Crosby proposed all of the following EXCEPT which in his 14-point program?

Explanation

Philip B. Crosby proposed all of the following in his 14-point program except increasing post-production inspections. This means that increasing post-production inspections was not one of his recommendations. Instead, Crosby focused on other aspects such as raising performance standards, "doing it right the first time" (DIRFT), reaching a point where products have "zero defects," and equating quality with the meeting of specifications. The omission of increasing post-production inspections suggests that Crosby believed in preventing defects rather than relying on inspections after production.

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96. A single-use plan is an example of a(n)

Explanation

An operational plan refers to a detailed plan that outlines the specific actions, tasks, and procedures required to achieve the day-to-day objectives of an organization. A single-use plan, on the other hand, is a plan that is developed for a one-time, specific purpose or event. Since an operational plan focuses on the ongoing activities and processes of an organization, it aligns well with the concept of a single-use plan, making it the correct answer.

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97. Which of the following is a characteristic of continuous-process production?  I. It employs a large labor force. II. It has a rigid structure. III. It utilizes a highly automated system.  

Explanation

Continuous-process production is characterized by the utilization of a highly automated system. This means that the production process is largely automated and requires minimal human intervention. The system is designed to operate continuously, without interruptions, and is capable of producing a high volume of goods or services. This characteristic allows for efficient and consistent production, as well as the ability to quickly scale up or down production levels as needed.

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98. Who among the following did NOT develop a theory regarding needs as motivational sources?

Explanation

Henry Mintzberg did not develop a theory regarding needs as motivational sources. Abraham Maslow developed the hierarchy of needs theory, Frederick Herzberg developed the two-factor theory, Clayton Alderfer developed the ERG theory, and David McClelland developed the acquired needs theory. Mintzberg is known for his work on management and organizational structure, but not specifically for theories on needs as motivational sources.

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99. Which type of authority can defy the unity of command principle?

Explanation

Functional authority can defy the unity of command principle because it allows employees to receive directives from multiple managers or superiors. Unlike line authority, where employees report to only one manager, functional authority allows individuals to have expertise in a specific area and provide guidance to employees across different departments or divisions. This can create a situation where employees may receive conflicting instructions or priorities from different functional managers, leading to a breakdown in the unity of command principle.

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100. Which of the following is NOT one of the elements of an effective reward system?

Explanation

An effective reward system should not necessarily have uniform rewards and methods of attainment for all comparable recipients. Different employees may have different needs, preferences, and performance levels, so it is important to tailor rewards to individual circumstances. Uniformity may not motivate and engage employees effectively, as it does not consider individual differences and may not recognize and reward exceptional performance.

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Bureaucracies are characterized by
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The 14 principles of management were developed by
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Which of the following is NOT an effect of an increase in the use of...
A government-imposed regulation that sets a limit for the importation...
Expert power and referent power can both be described as forms of
Which of the following terms best describes a corporation's hiring...
If a team leader believes that a lack of cohesiveness is hurting a...
According to Total Quality Management (TQM), what would the...
All of the following EXCEPT which is a criterion for a group to be...
Which of the following is NOT a benefit of a company instituting a TQM...
According to the system management theory, which of the following...
All of the following EXCEPT which is a result of employees becoming...
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Each of the following is a level of Kohlberg's model of moral...
Which of the following is an example of an indirectly interactive...
Which of the following is exempt from complying with the provisions of...
Reengineering brings about improvement in quality by
An organization is most likely to be decentralized under which of the...
At a certain organization, budgets are developed in such a way that...
Which of the following most likely represents a lapse in business...
Which of the following would be an example of a feedforward control by...
Which of the following statements regarding the stages of team...
The stage in an organization's change process that involves...
Organizational development would be an example of what kind of plan?
Which situation would be most likely to require more than one channel...
According to Henry Mintzberg, which of the following is NOT a...
Job enlargement can motivate employees by
Who among the following was NOT a contributor to the quality movement?
As a result of outsourcing, all of the following EXCEPT which is...
An organization leader responsible for securing the financial...
Which of the following individuals would have staff authority?
Philip B. Crosby proposed all of the following EXCEPT which in his...
A single-use plan is an example of a(n)
Which of the following is a characteristic of continuous-process...
Who among the following did NOT develop a theory regarding needs as...
Which type of authority can defy the unity of command principle?
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