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PRINCIPLES OF MANAGEMENT

SECTION A (ANSWER ALL QUESTION)

1. One of the structural elements of an organization structure are:

a. Work specialization

b. Customer

c. Geographical

d. Process

e. Product

2. Decision making is a process where an individual in organization……..

a. Make choices based on his free thought

b. Make choices from among two or more alternatives to solve a problem

c. Make choices base on recommendation from his superior

d. Make choices from his own preferences

e. Do not have to make choices.

3. Three skills that are required by a manager are

a. Interpersonal, human and intelligent

b. Interpersonal, behavior and intelligent

c. Interpersonal, human and conceptual

d. Technical, human and intelligent

e. Technical, human and conceptual

4. The process of management DOES NOT include …………

a. Planning

b. Leading

c. Organizing

d. Commitment

e. Control
5. The element of control is………..

a. Benchmarking against what is planned

b. Setting the objectives

c. Setting goals

d. Allocating resources

e. Letting the staff to do on their own.

6. It is true that leaders are born

a. YES

b. NO

7. Leaders need power while managers need authority

a. TRUE

b. FALSE

8. Salary is part of motivational tool

a. TRUE

b. FALSE

9. Salary is an ___________________ motivation

a. Intrinsic

b. Extrinsic

c. Excellent

d. Insidious

e. Exciting

10. A team must consist of

a. One or more person

b. Two or more person


c. Five and more person

d. Ten and more person

e. More than twenty.

11. An organization structure that consist of manager of retail, wholesale and government is
an example of a

a. Customer Departmentalization

b. Geographical departmentalization

c. Process departmentalization

d. Functional Departmentalization

e. Product Departmentalization

12. An organization structure that consist of manager of authentication, licensing, and


treasury is an example of a

a. Customer Departmentalization

b. Geographical departmentalization

c. Process departmentalization

d. Functional Departmentalization

e. Product Departmentalization

13. An organization structure that consist of manager of HR, Finance and Accounts is an
example of a

a. Customer Departmentalization

b. Geographical departmentalization

c. Process departmentalization

d. Functional Departmentalization

e. Product Departmentalization

14. An organization structure that consist of manager of western, eastern and southern
region is an example of a
a. Customer Departmentalization

b. Geographical departmentalization

c. Process departmentalization

d. Functional Departmentalization

e. Product Departmentalization

15. An organization structure that consist of manager of beauty, health care and
pharmaceutical product is an example of a

a. Customer Departmentalization

b. Geographical departmentalization

c. Process departmentalization

d. Functional Departmentalization

e. Product Departmentalization

16. Factors that influence organization structure are …………………..

a. Strategy, size, technology, and environmental within the organization

b. Size, peoples qualification, and culture

c. Size, types of managers and product

d. Sale volume

e. Profit level

17. An opposite to the organic model organization is

a. Mechanistic model

b. Puristic model

c. Contingency model

d. All model

e. Structural model

18. The chain of command ensures there is a ____________hierarchy of ______________

a. Formal, authority

b. Informal, power
c. Formal, power

d. Informal, authority

e. Mechanistic, authority

19. Three reasons why people resists to change are

a. Uncertainty, not willing to give up personal benefits and believing that change is
not good for them

b. Unsure of the benefits, not willing to let go of position, and trust

c. Staying too long in organization, too friendly and not liking the system

d. System too rigid, system too slow and no system

e. Not liking the management, too much red tape and bureaucracy

20. Symptom of stress are

a. Physiological, conditional and premature

b. Physiological, psychological, and behavioral

c. Psychological, behavioral and conditional

d. Medical, behavioral and psychological

e. None of the above.

SECTION B (ANSWER 4 QUESTION)

1. Describe the stages of developing team and what are the characteristics of an effective
team.

a. Forming

b. Norming

c. Ajourning

2. Explain the following types of decision making

a. Unprogrammed –
i. Non-programmed decisions are unique decisions that require a 'custom made' solution.
This is when a manager is confronted with an ill-structured or novel problem and there is
no 'cut and dried solution'.

b. Programmed

i. Programmed decisions are made in routine, repetitive, well-structured situations with


predetermined decision rules. These may be based on habit, or established policies, rules
and procedures and stem from prior experience or technical knowledge about what works
or does not work in a given situation.

c. Procedures, regulations and policies

i. Decision made for daily use.

3. What are the advantages and disadvantages of a group decision making?

Advantages of Group Decisions:


• Group decisions help to combine individual strengths of the group members and
hence has a set of varied skill sets applied in the decision making process.
• Individual opinions can be biased or affected with pre-conceives notions are
restricted perspectives, group decision help to get a broader perspective owing to
differences of perception between individual in the group.
• A group decision always means enhanced collective understanding of the course
of action to be taken after the decision is taken.
• A group decision gains greater group commitment since everyone has his/her
share in the decision making.
• Group decisions imbibe a strong sense of team spirit amongst the group
members and helps the group to think together in terms of success as well as failure.
Disadvantages of Group Decisions:
• One of the major disadvantages of group decision making is that it is more time
consuming than the process of individual decision making.
• Group decisions take longer to be finalized since there are many opinions to be
considered and valued.
• In case of authoritarian or minority group decision making, the people whose
opinions are not considered tend to be left out from the decision making process and
hence the team spirit ceases to grow.
• The responsibility and accountability of the decisions are not equally shared in
some cases which leads to a split in the group and hence hamper the overall efficiency of
the group.

4. What are the traits of a leader?

The five leadership traits/leadership qualities are:

1. Honest
2. Forward-Looking
3. Competent
4. Inspiring
5. Intelligent

6. Explain strategic, tactical and periodic planning.

Strategic are long term

Tactical for one time use

Periodic are temporary plan

7. What is management and what are the process of management?

a. Definition – the art of managing people

b. Process- Planning, Organising, Leading and Control.