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Principles of Management

Learn about the fundamental principles and theories behind effective management systems and how to apply them in real-world settings.

management theories

classical management theory

scientific management theory

administrative management theory

behavioral management theory

management functions






decision making


Collaboration of the different functions within the organization is essential in the realization of its goals.

  • True
  • False

True or False: Unity of command means that an employee can have one or more superior to whom he is directly responsible.

  • false

Concentration of authority at the top level of management pertains to

  • Principle of One boss
  • Decentralization
  • Centralization
  • Scalar Chain

__is the opposite of the balance sheet approach of compensating expatriates.


It is the training method given to employees within the everyday working in an organization.


Choose the one that does not belong to the group.

  • Supervisory level
  • Subordinate level
  • Administrative level
  • Executory level

It is the kind of control that identify and prevent any deviation from the standards before they occur.


Unity of Direction means

  • Grouping of related activities.
  • All of the choices
  • All the efforts of the members should be directed towards a common goal.
  • One head one plan

True or False: Human Resource Management is present in all functional areas in an organization.

  • TRUE

Anything that increases the role of a subordinate is

  • Division of Work
  • Centralization
  • Decentralization
  • Delegation

Following are setbacks of organizational culture except

  • Culture can also be a liability to an organization
  • Creation of a brand image for the organization.
  • Employees’ difficulty in implementing new ideas and concepts.
  • Culture is not developed in a single day.

Choose the letter that does not belong to the group. Internal Recruitment

  • Transfers
  • Employment at factory gate
  • Promotions
  • Re-employment of separated employees

The following do not issue stocks except

  • Partnerships
  • Stock Corporations
  • Religious Organizations
  • Non-stock corporations

Choose the letter that represents your best answers.

  • Capitalist partner
  • Member
  • On partnership:
  • Shareholder
  • Incorporator

Problem solving, team building, talent development, and performance management belong to

  • Middle level of management
  • Top level of management
  • All of the above
  • Low level of management

It is a kind of organization consisting of a group of people using their skills and other resources to earn profit.


The 4Ps of marketing consist of product, price, __, and place.


It is a condition that influences managerial decisions that exists when the chance of success is less than 100% and loss might occur.

  • RISK

True or False: Procurement, development, and compensation of personnel are part of the managerial functions of HRM.


A limited partnership consists of limited partners and at least one __partner.


It is the management style where the employees make their own decisions and manages their own work.

  • [No Answer]

True or False: Feedforward controls identify and prevent deviations from standards before they occur.

  • true

Process and procedures in an organization are most important in a ____culture.

  • [No Answer]

It is the management style where the manager takes sole responsibility of decision making.


It is identifying and addressing the customer trends and problems after they happen.

  • Reactive customer monitoring
  • Competitor monitoring
  • Proactive customer monitoring
  • Industry monitoring

To generate profit is the ultimate goal of this types of organization except

  • Non-governmental organization
  • Corporation
  • Business entity
  • Commercial organization

____time is the time between placing an order for materials or services and receiving them.

  • LEAD

True or False: The managerial functions of HRM includes the planning, organizing, directing, and controlling of the whole organization.

  • TRUE

The people who do the basic task of converting the inputs into outputs orrendering services to customers belong to

  • Technostructure
  • Operating core
  • Middle line managers
  • Support staff

Choose the letter that represents your best answer. Payment for employees performance or services based on the quantity produced or completed

  • Time based payment
  • Incentives
  • Piece-rate payment
  • Remuneration

Pitfalls of crashing change include the following except

  • Poor timing
  • Lack of commitment to change
  • Sufficient resources
  • Faulty thinking

In a __environment, the customers’ desires are well understood and remain consistent for a long period of time.


It pertains to the element or the topic or agenda on which individuals negotiate.


True or False: In inter-personal activities of a manager, he should interact and must have a good relationship with his subordinates, co-managers, superiors.

  • TRUE

It is one of Fayol’s 14 principles of management which means combination of fairness, kindness and justice.


The kind of applied organizational culture where no employees dare to break the existing rules and regulations.

  • Pragmatic culture
  • Academy culture
  • Normative culture
  • Bet your company culture

A functional structure of organization is one in which the departments are divided according to the organizational outputs.

  • True
  • False

Having the right product that will maximize customer satisfaction is part of the purchasing mix.

  • True
  • False

It is the process of putting the right men on the right job.


Fayol’s principle of management that is concerned with the proper and systematic arrangement of things and people is__.


It is the managers’ ability to understand and use the techniques, knowledge, and tools and equipment on a specific discipline.


It consists of the top management people who is the source of authority and manages the goals and policies for the enterprise.

  • [No Answer]

True or False: Gang flank is the short cut of scalar chain.

  • TRUE

It is an example of an on-going plan that is described as a broad guideline to be followed by managers in aspects of decision-making.


It refers to people who work in another country and at the same time living there.

  • [No Answer]

This is a kind of plan that is described by management as “ keeping all options open” approach.


Production function is a function of the inputs.

  • True
  • False

It is the direction of communication where there is a flow of information from employees to managers.


In developing potential alternatives, a group gathered together to generate ideas and different solutions, this is called__.


Following are some quality management tools except

  • Pareto Chart
  • Histogram
  • Organizational Chart
  • Scatter Diagram

It pertains to the sustained increase in the general price level of prices of nearly all commodities.


Corporators of a non-stock corporation is called

  • Shareholder
  • Partner
  • Proprietor
  • Member

True or False: Behavior is the topic or agenda on which individuals negotiate.


It is the technique of discussing issues and reaching to a conclusion benefitting all involved in the activity.


Choose the letter that represents your best answer. IHRM staffing policies except:

  • Geocentric
  • Polycentric
  • Ethnocentric
  • Zenocentric

Organizational climate pertains to

  • Managers’ personal beliefs and values
  • Morale of the employees
  • Organization’s personality
  • Hierarchical arrangement of people and tasks

The quantity, quality, and price of goods and services to be used by the organization are concerns of the research and development function.

  • True
  • False

Subordinates should not receive instructions from more than one person as it might create confusion is one of the characteristics of

  • Unity of Command
  • Unity of Direction
  • Order
  • Principle of One Boss

The principle emphasizing that an employee should not be moved frequently from one job to another.

  • Stability of Tenure
  • Scalar chain
  • Unity of Command
  • Principle of One boss

True or False: Human Resource Management is the aspect of management that deals with the planning, organizing, directing and controlling of personnel functions in an organization.

  • TRUE

One of the attributes of management by __style is that the managers do not keep themselves away from the employees.


The marketing mix consists of quantity, price, promotion, and place.

  • True
  • False

Partnership is a voluntary association of two or more persons who contribute money, property, or __to the common fund.


It is the process of fitting the selected person at the right job or place.

  • [No Answer]

True or False: Planning precedes controlling and controlling succeeds planning.

  • TRUE

First line managers belong to

  • Top level of management
  • Middle level of management
  • All of the above
  • Lower level of management

True or False: Monetary compensation is the number one factor that motivates employees in an organization.

  • TRUE

It pertains to a set of activities and practices, the purpose of which is to manage an organizations human resources at a global level.


True or False: The scalar principle refers to the downward transfer of authority from a manager to a subordinate.

  • false

True or False: Body language is also a form of communication in the workplace.

  • TRUE

True or False: The changing values formation and educational level upgrades of new generation employees make them more difficult to motivate.

  • TRUE

The value of a country’s currency in terms of another country’s currency is called __rate.


Managers who become such because of their being the owners or because of his relationship to the owner.

  • Political manager
  • None of the above
  • Patrimonial manager
  • Professional manager

In the RADPAC model of communication, R stands for__Question 18

  • Correct
  • Mark 1.00 out of 1.00
  • Not flaggedNot flaggedFlag question

It stands for what the organization stands for and why it exists.

  • Philosophy of management
  • Organizational climate
  • Formal structure of the organization
  • Mission statement

A core-manufacturing technology that produce a large number of uniform goods in an assembly-line system.


It is the kind of partnership consisting of general and limited partners.


True or False: Establishing the organizational objectives is the heart of the planning process.

  • TRUE

True or False: Management is very important in an organization because it helps in optimizing the use of all resources and helps in achieving the corporate goal.

  • TRUE

It is the art of getting things done through and with the people in formally organized groups.


It is a structure where the managers contract out specific job to specialists.


It means a combination of fairness, kindness, and justice.

  • Division of Labor
  • Discipline
  • Equity
  • Scalar chain

Choose the letter that represents your best answer. Introduction and familiarization of a newly hired employee

  • Training
  • Orientation
  • Placement
  • Preliminary interview

True or False: The concept of total quality management originated from the manufacturing industry.

  • TRUE

Stock corporations are corporations whose __ is divided into units of ownership.


It is a dimension of organizational change that relates to the level or extent that organizational members get involved in planning and implementing changes.

  • It is a dimension of organizational change that relates to the level or extent that organizational members get involved in planning and implementing changes.
  • Answer:

It pertains to the line that separates the different managerial positions in an organization.

  • Managerial skills
  • Managerial roles
  • Management levels
  • Management styles

Strategic planning begins with the conception of the organization’s ____.


Organizational __is a system of shared assumptions, values, and beliefs which govern how people behave in organization.


The type of control used in reviewing data or information at certain periods to determine when the actual performance meets the standards is __control.


True or False: Coalition model of organizational decision process is one in which the solutions result from a string of smaller decisions.


It is redesigning the structure of the organization due to the influence of external factors.


Channel is the __component used by the sender to convey the message.


It is composed of forces or institutions around an organization that affect its performance, operations and resources.


Management develops relationship among the people in the organization.This describe management as aNo

  • Continuous process
  • Art
  • Social process
  • Integrating process

True or False: Recruitment and staffing are the same thing when it comes to HRM.


True or False: Economy, technology, socio-culture, and politics are some of the specific internal factors that affect an organization.


Applying this kind of culture, the organization hires employees according to their specialization, educational qualification and interest.


True or False: The piece rate method of remuneration in which the employees are compensated on a fixed pre-decided amount-hourly, weekly, monthly, irrespective of their output.


The kind of change that evolves slowly and often compared to zigzagging up the slope of a mountain is

  • Organic change
  • Strategic change
  • Radical change
  • Structural change

True or False: Technological advances , in general, contributes to unemployment.

  • TRUE

True or False: Development of personnel involves the employment of different training techniques for employees to perform better.

  • TRUE

True or False: “Fitting square pegs in square holes and round pegs in round holes” pertains to the principles of recruitment in the staffing function.

  • false

It is the organizational structure that separates functions into a group based on one overall objective and composed of members from different departments working together to solve problems and explore opportunities.


The managers decisional roles include the following except

  • Resource allocator
  • Leader
  • Negotiator
  • Entrepreneur

True or False: A model of negotiation where there is no outcome in the discussion and no party benefited out of it is called lose-lose model.

  • TRUE

True or False: Line authority is the right of a manager to direct the work of his or her employees and making decisions without consulting them.

  • TRUE

Choose the letter that represents your best answer. Filled up by the employee after the preliminary interview

  • Resume
  • Application letter
  • Contract
  • Application blank

Which of the following is the feature of the Laissez faire style of management?

  • The managers do not keep themselves away from the employees.
  • The managers welcome the feedback of their subordinates.
  • The managers do not contribute much to the organization.
  • The managers take the sole responsibility of making decisions.

Following are examples of internal environment of an organization except

  • Philosophy of management
  • Organizational Culture
  • Industry Regulation Component
  • Mission statement

The type of culture where the employees’ main concern is the customer.

  • Fortress culture
  • Pragmatic culture
  • Normative culture
  • Academy culture

It is the function of management that decides in advance what to do, how to do, and who to do it.


True or False: Non-commercial organizations are sometimes involved in commerce and earning profit also.

  • TRUE

True or False: All other factors of production or resources are of no importance without people.

  • TRUE

It refers to the expatriate’s untimely return to his country before the expiration of his assignment.


In organizing, the degree to which the tasks at the organization are divided into separate jobs is called __and sometimes called division of labor.


True or False: Strategic plans will bring the organization to where it is now to where it wants to be in the following year.

  • false

True or False: Certainty affects managerial decisions when the managers have insufficient information.


It is the model of organizational decision process that happen when people are not sure or they disagree about goals while the decision makers go out and in of the process.


Matrix structure combines functional specialization and the focus of __ structure.


Choose the letter that does not belong to the group. Organization’s Internal environment

  • Mission
  • Change
  • Culture
  • Climate

Commercial organizations are organized mainly for __.


A __communication is a type of organizational communication among employees just to know what is happening around not considering their level in the organization.


Which of the following is not a feature of an organization?

  • None of the above
  • Consist of different functions
  • Functions need to be coordinated
  • Composed of individuals or group of individuals

A competitive marketing strategy of developing a superior product over competitors is __-strategy.


True or False: Directing is the heart of the management process and the central point of accomplishing the goals of an organization.

  • true

It is an internal environment of an organization that describes what stands for and why it exists.

  • [No Answer]

It is the component of an organization that is composed of managers whose concern is converting the objectives and plans of the strategic apex into operational plans.


True or False: Job rotation and temporary promotion are examples of off-the-job training.


It is the management principle that refers to the concentration of authority and decision-making resting in the hands of few people at the top level of management.


Production department should have a close collaboration with __department on matters relative to availability of funds for purchase of new equipment.

  • [No Answer]

It is the principle of management referring to the number of employees or workers reporting to one manager.


A matrix structure of organization is vulnerable to power struggles of two or more supervisors who are vying for authority.

  • True
  • False

It is the stage in the three-stage approach of Lewin that is regarded as the stage of transition and involves the acceptance of new ways of doing things.


It is the unit of ownership in a stock corporation.

  • [No Answer]

The building bricks group of elements of TQM includes the following except

  • Training
  • Communication
  • Leadership
  • Teamwork

Management as an art has the following characteristics except:

  • Personal skills
  • Perfection through practice
  • Practical knowledge
  • Social obligations

Employees who are not sure about their career and permanency belong to an organization applying

  • Normative culture
  • Club culture
  • Fortress culture
  • Tough guy culture

In an autocratic style of management,

  • The subordinates are dependent on their superiors and cannot make decisions on their own.
  • The subordinates and superiors have an effective communication.
  • The subordinates make their own decisions and manage their own work
  • The subordinates are loyal to the organization.

It consists of the following factors taken up collectively: quantity, quality, price and delivery.


They are called the corporators of a non-stock corporation.


It pertains to the line that separates the various managerial positions in an organization.


It is the quality management too which helps to analyze the relationship between two variables.


The following are examples of specific environment of an organization except

  • Supplier
  • Owner
  • Competitor
  • Customer

True or False: The controlling function precedes planning and planning supersedes directing.


The first function of management according to Fayol is

  • Coordinating
  • Planning
  • Commanding
  • Forecasting

An organizational structure defines the lines of authority and communication within the organization.

  • True
  • False

It is the factor that decides the superiority or inferiority of a product or service.


The type of management skills that requires the ability of the manager to use a particular proficiency or expertise to perform a particular task.

  • Conceptual skills
  • Technical skills
  • Decision-making skills
  • Interpersonal skills

True or False: Rational manager’s personal decision-making model uses a step-by- step process and focuses on facts and reasoning.

  • TRUE

__means obligation for the performance of the assigned job.


It is the kind of negotiation in the corporate world that takes place between the individual and the law.


It is the organizational structure that groups people into work units based on similar activities, skills, expertise and resources.


The motto of on-the-job training is learning by __.


True or False: Research and Development function is concerned with the production of new goods and services and closely collaborating with Marketing for its distribution.


It is consists of the 4Ps under the marketing function.


Also called the Fishbone Chart, this quality management tool records causes of a particular and specific problem.

  • Cause and Effect diagram
  • Histogram
  • Scatter diagram
  • Pareto Chart

It is one of the staffing policies in international human resource management where the managers of subsidiaries are recruited from the host country nationals.

  • [No Answer]

There is a ____span of control when a manager has a large number of people under him.

  • WIDE

Recruiting is motivating people to apply for the job and creating a pool of applicants while __is choosing the best applicant for the job.


It involves selecting the course of action from among two or more alternatives in order to arrive at a solution for a given problem.


According to Fayol, anything that increases the role of subordinate is ____ and anything that decreases it is centralization.


__refers to the right of superiors to get exactness from their subordinates.


Non-commercial organizations are also known as

  • All of the above
  • Non-profit organization
  • Non-governmental organization
  • Non-stock corporations

The team structure of organizational depends on the services of other organizations to perform critical functions on a contract basis.

  • True
  • False

Downward communication takes place when information flows from managers to __.


International Human Resource Management staffing policy where the best and most competent individuals, irrespective of their nationalities occupy the key positions is __policy.


True or False: Human Resource Planning consists of putting the right number and kind of people at the right place and time, doing the right things towards the achievement of the goals of the organization.

  • true

It is the type of managerial communication that is taking place at all levels in the organization.


Which of the following is not a component of corporation?

  • Members
  • Shareholders
  • Partner
  • Incorporators

True or False: Inadequate change process, insufficient resources, and poor timing are some of the pitfalls that can cause crash changes.

  • TRUE

Managers who are hired because of their specialized knowledge and degrees are called __-managers.


It is an specific environment component referred to as concerned citizens, sharing the same point of view on a given issue, gathered together trying to influence business practices.


Network structure relies on other organizations to perform critical functions on a __basis.


Choose the letter that does not belong to the group. Scope of HRM

  • Employee Welfare
  • Industry Regulations
  • Personnel Management
  • Industrial Relations

True or False: D in RADPAC model of negotiation stands for Decisions.


In the organization life cycle, it is referred to as the beginning of the organization.


Services or industry cannot be a contribution to the common fund of the partnership.

  • True
  • False

Sharing authority downwards is

  • Delegation
  • Centralization
  • Decentralization
  • Division of Work

Aside from corporation, this organization is subject to corporate tax.

  • General Partnership
  • Public Hospitals
  • Cooperative
  • Sole Proprietorship

In a dynamic environment, the customers’ desires or needs are well understood and will remain stable over a relatively long period of time.

  • True
  • False

Unifying and harmonizing activities and efforts, according to Fayol, is the

  • Commanding function
  • Organizing function
  • Planning function
  • Coordinating function

In this stage of change by Lewin, the people accept or internalize the new ways of doing their job or change.

  • Freeze
  • Transition
  • None of the above
  • Unfreezing

Choose the letter that does not belong to the group. ON-going plans

  • Procedures
  • Budget
  • Policy
  • Rules

Organizations hiring employees according to their specialization, educational qualification and interest are practicing

  • Baseball team culture
  • Bet your company culture
  • Club culture
  • Process culture

In intuitive decision- making model , the managers are considered __decision makers.

  • GUT

Work specialization means

  • Scalar chain
  • Division of Labor
  • Discipline
  • Equity

Informational roles make the manages act as a __center of an organization.


Which of the following advantages do not pertain to corporation?

  • Bigger capital compared to partnership
  • Ownership of all profits
  • Shares of stocks are transferable
  • Management is under the Board of Directors.

Choose the letter that does not belong to the group. Elements of directing

  • Motivation
  • Leadership
  • Controlling
  • Communication

True or False: Rehiring former employees in an example of external recruitment.

  • false