1.
Regulating activities within an organization using pricing mechanism is a type of
Correct Answer
A. Market control.
Explanation
Regulating activities within an organization using pricing mechanisms refers to the use of market forces to control and influence the behavior and decisions of individuals or departments within the organization. This approach involves setting prices for goods or services based on market demand and supply conditions, and using these prices to incentivize or discourage certain behaviors or actions. Market control allows the organization to align its internal activities with external market conditions and ensure efficient resource allocation.
2.
Which of the following persons developed the first theory regarding management functions?
Correct Answer
B. Henri Fayol
Explanation
Henri Fayol developed the first theory regarding management functions. Fayol was a French industrialist and management theorist who proposed the concept of the five functions of management: planning, organizing, commanding, coordinating, and controlling. His theory, known as the "14 Principles of Management," provided a framework for understanding and improving organizational effectiveness. Fayol's work laid the foundation for modern management principles and greatly influenced the field of management theory and practice.
3.
The process of teaching new employees the appropriate roles and behaviors needed to become effective members of a business is:
Correct Answer
A. Organizational socialization.
Explanation
Organizational socialization refers to the process of teaching new employees the appropriate roles and behaviors needed to become effective members of a business. It involves familiarizing them with the company's values, norms, expectations, and culture. This process helps new employees to adapt to their new work environment, understand their roles and responsibilities, and integrate into the organization smoothly. Cultural diagnosis refers to assessing and understanding an organization's culture, interpersonal development focuses on personal growth and building relationships, and managerial training specifically targets the development of managerial skills.
4.
Which of the following is the most cost-effective method of departmentalization?
Correct Answer
A. Functional
Explanation
Functional departmentalization is the most cost-effective method because it groups employees based on their specific skills and expertise. This allows for specialization and efficiency within each department, as employees can focus on their specific tasks and responsibilities. It also promotes coordination and collaboration among employees within the same function, leading to better communication and problem-solving. Additionally, functional departmentalization reduces duplication of roles and resources, resulting in cost savings for the organization.
5.
A primary skill necessary at every level of management is:
Correct Answer
D. Decision-making.
Explanation
Decision-making is a crucial skill required at every level of management. Managers are constantly faced with making choices that impact the organization's goals and objectives. Whether it is allocating resources, resolving conflicts, or setting strategic direction, decision-making plays a vital role in managerial effectiveness. This skill involves analyzing information, evaluating alternatives, and making sound judgments. Without effective decision-making, managers may struggle to navigate complex situations and achieve desired outcomes. Therefore, decision-making is an essential skill that enables managers to lead effectively and drive organizational success.
6.
Which of the following is characteristic of feedforward control?
Correct Answer
C. Establishing rules and procedures
Explanation
Feedforward control is a type of control mechanism that focuses on preventing problems before they occur. It involves establishing rules and procedures that guide the actions and decisions of individuals or systems. By setting up these rules and procedures, organizations can ensure that their processes and operations are carried out in a consistent and efficient manner, reducing the likelihood of errors or deviations from desired outcomes. Monitoring ongoing data flow and evaluating performance results are more related to feedback control, which focuses on identifying and correcting problems after they have occurred. Implementing transfer pricing is not directly related to feedforward control.
7.
Which theory is based on the idea that great leaders are born with self-assurance, integrity, and assertiveness?
Correct Answer
C. Trait theory
Explanation
Trait theory is based on the idea that great leaders possess certain inherent traits or qualities that make them effective leaders. This theory suggests that leaders are born with traits such as self-assurance, integrity, and assertiveness, rather than acquiring them through experience or training. Trait theory focuses on identifying and studying the specific traits that are associated with effective leadership, and it suggests that individuals who possess these traits are more likely to be successful leaders.
8.
Labor unions traditional focus on issues related to:
Correct Answer
A. Salaries.
Explanation
Labor unions traditionally focus on issues related to salaries because one of their primary goals is to negotiate fair wages and benefits for their members. This includes advocating for higher wages, better working conditions, and benefits such as healthcare and retirement plans. By focusing on salaries, labor unions aim to improve the financial well-being of their members and ensure that they are adequately compensated for their work.
9.
Which of the following questions may legally be asked of a job candidate?
Correct Answer
D. "have you ever been convicted of a crime?"
Explanation
The question "have you ever been convicted of a crime?" may legally be asked of a job candidate because it pertains to the candidate's criminal record, which is relevant to their suitability for the position. Asking about age, nationality, or proof of citizenship can potentially lead to discrimination based on protected characteristics such as age or national origin, which is illegal in many jurisdictions.
10.
The process of different levels of managers working together to develop and implement organizational goals and strategies is:
Correct Answer
D. Strategic management.
Explanation
Strategic management refers to the process in which different levels of managers collaborate to develop and execute organizational goals and strategies. It involves analyzing the internal and external environment, setting objectives, formulating strategies, and implementing them effectively. This approach ensures that the organization aligns its resources and actions with its long-term vision and objectives. Tactical management focuses on the implementation of specific plans and actions to achieve short-term goals, while administrative management deals with the coordination and supervision of day-to-day activities. Systematic management, on the other hand, refers to the application of scientific principles to improve efficiency and productivity.
11.
All of the following are informational roles of managers EXCEPT:
Correct Answer
D. Figurehead.
Explanation
The informational roles of managers involve gathering and distributing information within the organization. The monitor role involves collecting information from both internal and external sources to stay informed about the organization's performance. The spokesperson role involves representing the organization to external stakeholders and communicating its policies and decisions. The disseminator role involves sharing information with employees and other stakeholders to ensure everyone is well-informed. However, the figurehead role refers to the symbolic and ceremonial duties of a manager, such as attending official functions, which do not involve gathering or distributing information.
12.
Which of the following control systems is most commonly used by firms?
Correct Answer
C. Bureaucratic
Explanation
The most commonly used control system by firms is the bureaucratic control system. This system relies on rules, policies, and procedures to regulate and monitor the activities of employees. It emphasizes hierarchical structure, formal authority, and standardized processes. Bureaucratic control is often used in large organizations where there is a need for consistency, coordination, and efficiency. It helps in ensuring compliance with regulations and achieving organizational goals.
13.
An employee's belief that increased efforts at work will lead to accomplishing performance goals is known as:
Correct Answer
B. Expectancy.
Explanation
Expectancy refers to an employee's belief that increased efforts at work will lead to accomplishing performance goals. It is the perception that putting in more effort will result in better performance outcomes. This belief is an important factor in motivating employees to work harder and strive for higher levels of performance. Expectancy theory suggests that individuals are motivated to exert effort when they believe that their efforts will lead to desired outcomes.
14.
Which of the following has the power to regulate X-ray machines and blood glucose meters?
Correct Answer
C. Food and Drug Administration
Explanation
The Food and Drug Administration (FDA) has the power to regulate X-ray machines and blood glucose meters. The FDA is responsible for ensuring the safety and effectiveness of medical devices, including those used for diagnostic purposes like X-ray machines and blood glucose meters. They establish regulations and guidelines for manufacturers, conduct inspections, and monitor the quality and performance of these devices to protect public health. The other options - Occupational Safety and Health Administration (OSHA), Environmental Protection Agency (EPA), and Centers for Disease Control and Prevention (CDC) - have different areas of jurisdiction and do not specifically regulate medical devices.
15.
Six Sigma is tool used for:
Correct Answer
B. Feedback control.
Explanation
Six Sigma is a methodology that focuses on improving the quality and efficiency of processes by reducing defects and variations. It achieves this through a data-driven approach and statistical analysis. Feedback control is an essential part of the Six Sigma methodology as it involves continuously monitoring the performance of processes, collecting data, and providing feedback to make necessary adjustments and improvements. By using feedback control, Six Sigma ensures that processes are constantly evaluated and optimized to meet the desired quality standards and customer requirements.
16.
Which of the following is developed to create consistency in situations repeatedly faced by an organization?
Correct Answer
C. Standing plans
Explanation
Standing plans are developed to create consistency in situations repeatedly faced by an organization. These plans provide guidance and standardization for ongoing activities and are designed to be used repeatedly over a long period of time. They include policies, procedures, rules, and regulations that help ensure consistency and efficiency in decision-making and operations. Standing plans are important for organizations to establish a framework and guidelines for handling common situations, allowing for smoother operations and better coordination among employees.
17.
A sales manager who tries to make improvements in the sales department is functioning as a(n):
Correct Answer
A. Entrepreneur.
Explanation
An entrepreneur is someone who takes initiative and risks to start a new business or make improvements in an existing one. In this context, the sales manager is actively trying to make improvements in the sales department, which aligns with the role of an entrepreneur. The other options, negotiator, monitor, and liaison, do not accurately describe the proactive and innovative nature of the sales manager's actions.
18.
According to David McClelland, all of the following are people's primary needs EXCEPT:
Correct Answer
D. Growth.
Explanation
According to David McClelland, people have three primary needs: achievement, power, and affiliation. These needs drive individuals to strive for success, influence others, and form social connections respectively. However, growth is not considered one of the primary needs according to McClelland's theory.
19.
The process of developing a pool of job applicants is referred to as:
Correct Answer
D. Recruitment.
Explanation
Recruitment is the correct answer because it refers to the process of developing a pool of job applicants. It involves attracting, sourcing, and screening potential candidates for a job vacancy. Outplacement refers to assisting employees who have been laid off to find new employment. Assessment involves evaluating the skills and abilities of candidates. Selection refers to choosing the most suitable candidate from a pool of applicants.
20.
An intermediate consumer most likely purchases items from:
Correct Answer
D. Wholesalers.
Explanation
An intermediate consumer is a business or individual that purchases goods or services in order to resell them or use them in the production of other goods. Wholesalers are businesses that specialize in selling large quantities of goods to these intermediate consumers. They typically buy goods directly from manufacturers or producers and then sell them in smaller quantities to retailers or other businesses. Therefore, it is most likely that an intermediate consumer would purchase items from wholesalers rather than retailers, big box stores, or e-businesses.