1) Having which of the following stages in the planning process is the company’s mission statement

developed?
a) Policy development
b) Definition of planning premises
c) Development of controls
d) Formation of company objectives and strategic plans

2) The apex corporation has instituted a practice of evaluating each of its individual stores and store
managers on the basis of their short term profitability. This practice is called
a) Profitability management
b) Bottom-line management
c) Balance-sheet management
d) Profit center management

3) The single-minded emphasis upon short-term profitability to the extrusion of attention to other
measures of performance caused problems for ……………………….. as customer affluence declined
during the early 1970s
a) K mart
b) Penn central
c) Sears, Rocbuck and company
d) General motors

4) Managers perceive all of the following to be benefits of planning except

a) Facilitates personal growth
b) Aids in delegating authority
c) Provides an organizational
d) Forces managers to make decision

5) The fact that people tend to work harder when they know what is expected of them under the use
of planning as
a) Motivational tool
b) Monitoring tool
c) Delegation tool
d) Control tool

6) The beta corporation operates in highly dynamic environment. Which of the ……… plans will be
especially important to this form?
a) Comprehensiveness
b) Flexibility
c)
d) Detail
7) Which of the ff is the simplest type of standing plan?
a) An objective
b) A policy
c) A rule
d) A procedure

8) A general guideline that channels, or directs, the decision making of subordinate

a) strategy
b) Policy
c) Program
d) Rule

9) A memo that specifies the method or chronological steps to be ……. return products is an example of
a
a) Program
b) Schedule
c) Procedure
d) Policy

10) The mission of the organization is established in its

a) Strategic plan
b) Administration plan
c) Tactical plan
d) Futuristic plan

11) The difference between where a firm would like to

a) Performance gap
b) Achievement gap
c) Administrative gap
d) Rhr,,,, gap

12) According to the ……………… produces pass there

a) Product
b) Product life cycle
c) Product sales cycle
d) Product profitability cycle

13) The ifso corporation utilizes a very simple statistical projection technique that assumes that the
future will essentially be a continuation of past patterns. The ifso corporation uses
a) Trend line projections
b) Exponential smoothing
c) A moving average
 d) Life cycle analysis

14) Under the …… approach, the supervisor and subordinate jointly agree upon goals that will be used
to evaluate the subordinate’s performance
a) Management life cycle
b) Delphl
c) Management by objectives
d) Impact analysis

15) All the ff are recognized levels of planning except

a) Strategic planning
b) Administrative planning
c) Futuristic planning
d) Operational planning

16) Which of the ff automobile manufacturers successfully recognized and planned for the challenges
and opportunities represented by critical environment changes of the 1970s and 1980s?
a) American motors
b) General motors
c) Ford motor company
d) Chrysler corporation

17) In addition to its primary function, planning is also used to establish standards that are essential for
a) Control
b) Product obsolescence
c) Protecting management
d) Creating “constructive chaos”

18) Which of the ff characteristics of a good plan is intended to assure that the plan will not have to be
abandoned as a result of long term changes in the company’s situation
a) Simplicity
b) Comprehensiveness
c) Stability
d) Futurity

19) Beth Johnson has just submitted several predetermined courses of action she has developed to deal
with unique nonrecurring situation her firm may face. Beth’s plan are example of
a) Single use plans
b) Standings
c) Operational plans
d) Administrative plans
20) ……………… plans are predetermined courses of action developed for repetitive situation
a) Single use
b) Procedural
c) Programmed
d) Standing

21) Administration plans generally uses a period of

a) Less than 1 year
b) 5 years or less
c) More than 5 years
d) More than

22) A single use plan that commits workers and machine hours to a given activity is called
a) Budget
b) Policy
c) Schedule
d) Program

23) All of the following are single use plans except

a) Budgets
b) Schedules
c) Strategies
d) Policies

24) Jill larkin has been asked to develop plans to ensure the efficient day-to-day use of resources
allocated to her area of responsibility. Jill is creating
a) tactical plans
b) administrative plans
c) strategic plans
d) situational plans

25) Which of the following activity attempts to predict what will happen under a given set of future
circumstances?
a) Planning
b) Controlling
c) Forecasting
d) Budgeting

26) Test marketing is a form of

a) Judgmental research
b) Experimental research
c) Baying intention research
 d) Leading indicator research

27) Bob Lewis has been asked to predict the impact of technological breakthrough upon his firm’s
particular industry. In order to accomplish this task, bob will be most likely to utilize
a) Impact analysis
b) Scenarios
c) The Delphi technique
d) Regression analysis

28) All of the ff are steps in the MBO process except

a) Establishing goals
b) Evaluating results
c) Providing feedback to the subordinate
d) Budgeting for MBO programs

29) Human and physical resources are arranged in such a way as to facilitate the accomplishment of a
firm’s plan through the activity of
a) Division of labor
b) Organizing
c) Controlling
d) Staffing

30) Keith Jacobs is attempting to assign his subordinate to specific tasks in which they will specialize.
Keith is engaged in the process of
a) task definition
b) creating an organization chart
c) delegation of authority
d) division of labor

31) The primary advantage of division of labor is based upon

a) specialization
b) concentration
c) hard work
d) job creation

32) The process of grouping specialized …………

a) Specialization
b) Organization
c) Departmentation
d) Functionalization
33) In developing his firm’s organization chart, Phill Cowcus grouped jobs together on the basis of
similarity of content. Phil is utilizing
a) Functional Departmentation
b) Product Departmentation
c) Geographic Departmentation
d) Process Departmentation

34) Which of the ff approaches to Departmentation is most likely to be used by manufacturers who sell
a number of product lines composed of several different items
a) Functional departmentation
b) Geographic departmentation
c) Process departmentation
d) Product departmentation

35) A firm that operates in several regions of the country or in different countries is likely to
employ………… in its organizational scheme.
a) Functional departmentation
b) Geographic departmentation
c) Process departmentation
d) Product departmentation

36) An apex corporation sells products and services to both industrial buyers and final consumers. The
firm is likely to emphasize
a) Geographic departmentation
b) Process departmentation
c) Customer departmentation
d) Product departmentation

37) In a matrix organization, coordination, cost, and time factors are the responsibility of the ………………
manager
a) Project
b) Supervisory
c) Functional
d) General

38) The many information channels in a matrix structure can

a) Greatly increase the accuracy of organizational information
b) Reduce the number of decisions managers must make
c) Greatly reduce cost
d) Result in decision strangulation
39) The apex corporation is characterized by extremely narrow spans of control. The apex corporation is
likely to be as
a) Matrix organization
b) “Tall” organization
c) Project organization
d) “flat” organization

40) According to the principle of management by ……………………., subordinate managers should make
decisions on all routine matters within set guidelines.
a) Objectives
b) Subordinates
c) Exception
d) Example

41) The process of allocating tasks to subordinates, providing authority to discharge those tasks, and
exacting responsibility is called
a) Delegation
b) Deputization
c) Management by exception
d) Authorization

42) The primary function of staff is to

a) Exercise authority over line position
b) Advise and assist line position
c) Physically produce the finest products
d) Sell the firm’s product or services

43) Lee Myers has just joined the ifso corporation as an accountant. Lee’s position is best classified as
a(n)
a) General staff position
b) Assistant-to position
c) Personal staff position
d) Specialized staff position

44) The first step in organizing process is

a) Determination of those tasks required to achieve objectives
b) Creating jobs
c) Grouping jobs into departments
d) Creating authority/reporting relationships

45) Ifso corporation’s organization chart show vice presidents of manufacturing, marketing, finance, and
personnel reporting to the president. Ifso employs
 a) The matrix method of departmentation
b) Project departmentation
c) Functional departmentation
d) Product departmentation

46) The ff are advantages of functional departmentation except

a) Greater efficiency through specialization
b) Better appreciation of the overall operations of the firm
c) Tighter control of all functional units
d) Greater status and prestige for functional units

47) That anticipate regularly adding new products are most likely to utilize
a) Geographic departmentation
b) Functional departmentation
c) Process departmentation
d) Product departmentation

48) Apex Corporation has created its departments according to the sequential stages of its
manufacturing operation. Apex utilizes
a) Functional departmentation
b) Process departmentation
c) Customer departmentation
d) Geographic departmentation

49) ………………………… structure, functional specialists remain in their departments, but are given special
assignments where as needed.
a) Functional
b) Geographic
c) Process
d) Matrix

50) Matrix organization, the ……………………… manager concentrates on technical performance decisions.
a) Project
b) Matrix
c) Functional
d) Process

51) Adding to the formula developed by Graicunas, a superior who has 4 subordinates will face…………
possible subordinate relationship
a) 44
b) 72
c) 100
 d) 18

52) The ff favor a wide span of management except

a) Availability of assistants
b) Geographic dispersion of subordinates
c) Simplicity of work and …..
d) …..of management by exception

53) According to the ……………… theory of authority, authority rest in organization position.
a) Organizational
b) Relational
c) Positional
d) Formal/traditional

54) When authority is dispersed throughout the organization, it is said to be

a) Decentralized
b) Distributed
c) Consolidated
d) Centralized

55) Authority over a business’s operations is vested in ……………………… positions.

a) Centralized
b) Staff
c) Line
d) Assistant

56) Lara Jenkins has been named personal assistant to the president of the beta corporation. Lara’s
position is best described as
a) An assistant to position
b) A general staff position
c) A specialized staff position
d) An operating services position

57) Superiors and subordinates are “joined” together by

a) Matrix chains
b) The centralization chain
c) The chain of command
d) The organization chain

58) Jack Scott, safety director for the Simms Corporation, has just directed the firm’s production
manager to install safety shields on all grinding machines. Jack is exercising
a) Line authority
 b) Functional authority
c) Staff authority
d) Illegitimate authority

59) The…………………………. model of motivation emphasized making workers feel important and allowing
workers to fulfill their social needs on the job.
a) human relations
b) theory Y
c) theory X
d) human resource

60) According to ……………………., people like to work and will even seek responsibility under the right
conditions.
a) Theory X
b) The human relations model
c) Theory Y
d) Equity theory

61) Which of the ff seeks to explain the mental process people go through in deciding whether to
undertake a particular action?
a) Theory X
b) Expectancy theory
c) Need theory
d) Incentive theory

62) According to Maslow, which of the ff types of needs is most prepotent?

a) Safety
b) Self-actualization
c) Love
d) Physiological

63) Which of the ff types of needs can be satisfied by pays and job security?
a) Deficiency needs
b) Relation-oriented needs
c) Growth needs
d) Achievement needs

64) According to Heizberg, salary and working conditions are

a) Growth factors
b) Satisfiers
c) Motivators
d) Hygiene factors
65) People with high achievement need are most likely to take
a) No risks
b) High risks
c) Moderate risks
d) Low risks

66) The likelihood that some undertaking will produce a particular outcome is called
a) Expectancy
b) Valence
c) Instrumentality
d) Preference

67) All the ff motivation theories are cognitive theories except

a) Maslow’s hierarchy of needs
b) Expectancy theory
c) Skinner’s reinforcement theory
d) The achievement motive

68) Every time Jaa is late to work, her boss calls her into the office for along reprimand. When Jaa
arrived on time, she did not have endured these sessions. Jaa began to be consistent on time. Her
change in behavior resulted from
a) Positive reinforcement
b) Negative reinforcement
c) Punishment
d) Coercion

69) Which of the ff best describe the disappearance if learned behavior as a result of lack of
reinforcement?
a) Extinction
b) Forgetting
c) Disremembering
d) Unlearning

70) Which of the ff is concerned with explain the “fairness” of financial incentive plans?
a) Achievement theory
b) Reinforcement theory
c) Incentive theory
d) Equity theory

71) The acute corporation allows workers to determine their own starting and quitting times, as long as
critical “core” hours are covered and work needs are met. The firm is using
 a) Consecutive shifts
b) Work modules
c) Flextime
d) A four-day workweek

72) Which of the ff seeks to enhance motivation by expending a worker’s job vertically?
a) A worker-controlled pacing
b) Job enrichment
c) Work modules
d) Position flexibility