Sample Test
Principles of Management

For each of the following choose the answer that most completely answers the question.

1.	Someone who works with and through other people by coordinating their work activities in order to accomplish organizational goals is
	a.	a very intelligent individual.
	b.	a supervisor of production work.
	c.	a manager.
	d.	an operations supervisor.
	e.	a leader of people.

2.	Technical skills include
	a.	knowledge of and efficiency in a certain specialized field.
	b.	knowledge of and proficiency in a certain specialized field.
	c.	knowledge of and interest in a general field of endeavor.
	d.	skill in and proficiency in a certain specialized field.
	e.	ability in and proficiency skill in a certain special field.

Joe, as a production supervisor, decides on Friday afternoon how many units of output his employees will be able to produce and on which days certain products will be run in his department. He also decides which of his employees are going to be responsible for operating which machines within the department next week, as his employees are multiskilled assemblers. On Monday, he informs his employees whom he has assigned to which machines by handing out assignment sheets and informs the employees that the schedule is going to be difficult due to the increased number of units. He goes on to tell them that he is sure they can fulfill the schedule because they are such good and skilled employees. Each day during the week he checks the amount of output that the employees have completed and the number of units that have been scraped.

3.	When Joe tells the employees that he is sure they can fulfill the schedule because they are such good and skilled employees, he is performing which of the management functions?
	a.	Controlling
	b.	Leading
	c.	Planning
	d.	Organizing

4.	Knowledge management involves encouraging the members of the organization to
	a.	improve the educational level of the average employee.
	b.	develop new training programs to help new employees learn their jobs.
	c.	develop a corporate university like Hamburger University at McDonald's.
	d.	systematically gather information and share it with others.
	e.	retrain top managers through traditional MBA programs.

5.	While trying to describe a work problem, one manager utilizes analysis of basic work tasks that are performed in the organization. It is most likely that this manager has studied the work of
	a.	Frederick Taylor.
	b.	Edward Deming.
	c.	Max Weber.
	d.	Henri Fayol.
	e.	Bill Gates.

6.	Strong cultures
	a.	are found in organizations with strong leaders.
	b.	have a minimal influence on the employee when s/he is making decisions.
	c.	can be found in all organizations that exist.
	d.	have a greater influence on employees than do weak cultures.
	e.	are found in organizations with more members in them.

7.	__________ are any constituencies in the organization's external environment that are affected by the organization's decisions and actions.
	a.	Stockholders
	b.	Pressure groups
	c.	Suppliers
	d.	Stakeholders

8.	The North American Free Trade Agreement
	a.	includes Mexico and Canada.
	b.	includes Mexico, Brazil, and Columbia.
	c.	reduced trade between the United States and Canada.
	d.	reduced the economic power of Canada and the United States and increased the power of Mexico.
	e.	None of the above are true.

9.	Successful global management requires an attitude that is best described as _____________.
	a.	ethnocentric
	b.	parochial
	c.	polycentric
	d.	geocentric
	e.	geometric

Theodore and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.

10.	Theodore and James decide to allow a firm in Europe to use the rights to their software, its brand name, and software specifications in return for a lump-sum payment. This agreement is known as a
	a.	strategic alliance.
	b.	licensing agreement.
	c.	franchise.
	d.	foreign subsidiary.
	e.	joint venture.

11.	The socioeconomic view is that management's social responsibility goes beyond making profits to include
	a.	placing members of society on welfare.
	b.	protecting and improving society's welfare.
	c.	minimizing the welfare of society in exchange for profits.
	d.	protecting and improving the organization's profits.
	e.	maximizing the welfare of society in exchange for profits.

12.	Value-based management is an approach to managing in which managers
	a.	invest where a return on the investment is promising.
	b.	pay close attention to investments that have a potential to lose money.
	c.	support employee initiatives to help boost the morale of the employees.
	d.	create value for the company through the development of new products.
	e.	establish, promote, and practice an organization's shared values.

13.	Ethics refers to rules and principles that
	a.	clearly define what is right and wrong conduct.
	b.	define what is right conduct.
	c.	define what is right and wrong conduct.
	d.	clearly define what is wrong conduct.
	e.	clearly define what manager can and cannot do.

14. In a short essay, discuss the importance of studying management and list at least 3 rewards and 3 challenges of being a manager.

15. In a short essay, list and discuss the four most significant ways in which culture is transmitted to employees. Include specific examples of each to support your answer.

Page 1

1.	c
Who Are Managers?
2.	b
Management Skills
3.	b
Management Functions and Process
4.	d
Current Trends and Issues
5.	a
Scientific Management
6.	d
Strong versus Weak Cultures
7.	d
How the Environment Affects Managers
8.	a
Understanding the Global Environment
9.	d
What's Your Global Perspective?
10.	c
What is Your Global Perspective?
11.	b
Two Opposing Views of Social Responsibility
12.	e
Values-Based Management
13.	c
Summing Up Social Responsibility