Principles of Management (C483)

Principles of Management (C483)

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Free Principles of Management (C483) Questions

1.

Which of the following best describes extinction

  • It involves the aggressive manipulation and exploitation of others.

  • It involves removing or withholding an undesirable consequence.

  • It refers to administering an aversive consequence.

  • It refers to withdrawing or failing to provide a reinforcing consequence.

  • It is the perceived outlook that performance may be followed by a negative outcome.

Explanation

Correct Answer: 

D) It refers to withdrawing or failing to provide a reinforcing consequence.

Explanation:

In operant conditioning (Skinner), extinction occurs when a previously reinforced behavior stops being reinforced, leading to a decline in that behavior. For example, if a manager stops recognizing an employee’s hard work, the employee may eventually stop putting in extra effort.

Why other options are wrong:

A) Aggressive manipulation and exploitation: This describes unethical behavior, not extinction.

B) Removing or withholding an undesirable consequence: This describes negative reinforcement, not extinction.

C) Administering an aversive consequence: This describes punishment, not extinction.

E) Perceived outlook that performance may be followed by a negative outcome: This is related to expectancy theory, not extinction.


2.

____ performance goals can be dysfunctional when people work in a group if the goals create competition among team members

  • Team

  • Fixed

  • Socialized

  • Individual

  • Integrated

Explanation

Correct Answer D: Individual

Explanation:

Individual performance goals can be dysfunctional in a group setting when they encourage competition instead of collaboration. If team members are only focused on their own success, they may withhold information, refuse to cooperate, or even sabotage others, leading to poor overall team performance.

Why other options are wrong:

A) Team → Team goals encourage collaboration and are less likely to create harmful competition.

B) Fixed → Fixed goals are set in advance and do not necessarily promote competition among individuals.

C) Socialized → Socialized goals focus on collective success and shared responsibility, which do not foster competition.

E) Integrated → Integrated goals align individual and team objectives, reducing the likelihood of dysfunction.


3.

A(n) _____ illustrates the four key drivers of a firm's long-term success and shows how goals in each area are linked to others

  • Strategy map

  • Objective script

  • GANTT chart

  • PERT chart

  • Decision tree

Explanation

Correct Answer A: Strategy map.

Explanation:

A strategy map is a visual tool that links a company's goals across four key areas—financial performance, customer relationships, internal processes, and learning/growth. It helps organizations understand how different objectives contribute to long-term success.

Why other options are wrong:

B) Objective script:This is not a recognized strategic planning tool.

C) GANTT chart: A GANTT chart is used for project management to schedule tasks over time, not for illustrating strategic goals.

D) PERT chart: A PERT (Program Evaluation and Review Technique) chart is used for project scheduling and task dependencies, not for mapping business strategy.

E) Decision tree: Decision trees help in making choices based on probabilities and outcomes, but they don’t link strategic goals.


4.

What is the best way to succeed in a matrix organizational structure

  • Collaboration

  • Unity of command

  • Top-down communication

  • Centralized decision making

Explanation

Correct Answer:

A) Collaboration

Explanation:

A matrix organizational structure involves employees reporting to multiple managers or working across different departments. Success in this structure requires strong collaboration, open communication, and teamwork to ensure alignment and efficiency.

Why other options are wrong:

B) Unity of command: A matrix structure inherently does not follow strict unity of command, as employees report to multiple managers.

C) Top-down communication: While communication is important, matrix structures rely on multidirectional communication rather than just top-down directives.

D) Centralized decision making: Matrix organizations often use decentralized decision-making to allow for flexibility and adaptability.


5.

Which of the following takes place after a firm formulates its strategy

  • Analysis of external opportunities and threats

  • SWOT analysis

  • Analysis of internal strengths and weaknesses

  • Strategy implementation

Explanation

Correct Answer D: Strategy implementation

Explanation:

After a firm formulates its strategy, the next step is to implement it. This involves putting the strategic plan into action by allocating resources, setting objectives, and ensuring that all departments align with the new direction.


Why other options are wrong:

A: Analysis of external opportunities and threats: This is part of the strategy formulation phase, not what comes after. Identifying external factors helps shape the strategy but is not the next step after it is formulated.

B: SWOT analysis: This occurs before strategy formulation, helping a company assess its strengths, weaknesses, opportunities, and threats. It is not a post-formulation step.

C: Analysis of internal strengths and weaknesses: Like external analysis, this happens before strategy formulation to guide decision-making. Once the strategy is set, the focus shifts to implementation.


6.

How many defects per million are there at Six Sigma, assuming a product or process is defect-free 99.99966% of the time?

  • Less than 5.3​
  • Less than 4.4​
  • Less than 6.6​
  • Less than 3.4

Explanation

Explanation
At the Six Sigma quality level, the goal is to achieve near perfection, meaning a process produces no more than 3.4 defects per million opportunities (DPMO). This extremely high standard ensures minimal errors and maximum consistency. Six Sigma methodologies rely on data-driven analysis to identify variations and eliminate defects, leading to improved quality, customer satisfaction, and operational efficiency.
Correct Answer Is:
Less than 3.4
7.

According to Michael Porter's competitive environment model, how can suppliers influence strategic planning

  • Suppliers can reduce the threat from substitute products.

  • Suppliers can reduce the numbers of new entrants in the market.

  • Suppliers can reduce manufacturing time and increase product quality.

  • Suppliers can reduce technological, demographic, and legal threats in the environment.

Explanation

Correct Answer:

C) Suppliers can reduce manufacturing time and increase product quality.

Explanation:

In Porter’s Five Forces model, suppliers have a significant impact on strategic planning by affecting cost structures, production efficiency, and product quality. Reliable suppliers help companies streamline production, lower costs, and improve product standards, enhancing competitiveness.

Why other options are wrong:

A) Suppliers can reduce the threat from substitute products: Substitute products are determined by market demand and innovation, not by suppliers.

B) Suppliers can reduce the numbers of new entrants in the market: While supplier relationships may provide competitive advantages, they do not directly control market entry barriers.

D) Suppliers can reduce technological, demographic, and legal threats in the environment: These factors are external macro-environmental influences that suppliers do not directly control.


8.

What describes the dimensions of conflict-handling intentions

  • Comparativity and associativity

  • Collaboration and aggressiveness

  • Competitiveness and acquiescence

  • Cooperativeness and assertiveness

Explanation

Correct Answer:

D) Cooperativeness and assertiveness

Explanation:

The two primary dimensions of conflict-handling intentions are cooperativeness, which reflects the extent to which an individual tries to satisfy the other party's concerns, and assertiveness, which reflects the extent to which an individual tries to satisfy their own concerns. These dimensions help define conflict resolution styles such as competition, collaboration, compromise, avoidance, and accommodation.

Why other options are wrong:

A) Comparativity and associativity: These terms are not recognized dimensions in conflict-handling models.

B) Collaboration and aggressiveness: While collaboration is a conflict-handling style, aggressiveness is not a primary dimension—it falls under high assertiveness but lacks the cooperativeness aspect.

C) Competitiveness and acquiescence: Competitiveness aligns with assertiveness, but acquiescence suggests passive acceptance rather than a formal conflict-handling dimension.


9.

Following Herzberg's model, Hackman and Oldham proposed a more complete model of

  • Empowerment

  • Expectancy

  • Reinforcement

  • Job design

  • Self-actualization

Explanation

Correct Answer:

D) Job design

Explanation:

Hackman and Oldham developed the Job Characteristics Model (JCM), which expanded on Herzberg's two-factor theory. Their model emphasizes how job characteristics (skill variety, task identity, task significance, autonomy, and feedback) influence motivation, job satisfaction, and performance.

Why other options are wrong:

A) Empowerment: While empowerment is related to job design, the JCM specifically addresses job characteristics rather than general empowerment.

B) Expectancy: Expectancy theory (Vroom) relates to motivation based on expected outcomes, not job design.

C) Reinforcement: Reinforcement theory (Skinner) focuses on behavior modification, not job design.

E) Self-actualization: While self-actualization (Maslow) is a motivation concept, the JCM is primarily about job structure.


10.

After a major budget increase, a company finds itself in a position to hire 50 new employees. How can strategic human resource planning benefit the company in this situation

  • By providing annual reviews of staff performances

  • By initiating termination interviews to release unproductive employees

  • By coordinating companywide continuing education

  • By organizing staffing needs and looking for people with the right skills

Explanation

Correct Answer D: By organizing staffing needs and looking for people with the right skills

Explanation

Strategic human resource planning ensures that the company hires employees who align with its long-term goals and workforce requirements. This approach involves assessing current and future staffing needs, identifying skill gaps, and recruiting individuals with the right expertise. Proper planning helps the company optimize its budget increase by hiring efficiently and effectively.


Why Other Options Are Wrong

A. By providing annual reviews of staff performances – While performance reviews are an important HR function, they focus on evaluating existing employees rather than planning for new hires. This does not directly contribute to the hiring process.

B. By initiating termination interviews to release unproductive employees – Termination processes are related to managing poor performance, not hiring new staff. Strategic HR planning is about growth and alignment with company goals, not downsizing.

C. By coordinating companywide continuing education – Training and development programs help employees improve their skills, but they do not directly address the immediate need for hiring 50 new employees. Strategic HR planning is focused on workforce acquisition and deployment.


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