1. Which of the following functions or activities involves recruiting and placing qualified?

1. Which of the following functions or activities involves recruiting and placing qualified
personnel needed for the organization so that it may achieve its objectives and goals?
a) Planning
b) Organizing
c) Staffing
d) Leading
2. The external environment factors related to the values and culture that affect the way people
feel about the organization they are in and about work itself is:
a) Political factors
b) Sociological factors
c) Economic factors
d) Technological factors
3. The resources within an organization, used to achieve its goal, make up the _______ of a
business.
a) External environment
b) Workers motivation
c) Internal environment
d) Social Responsibility
4. Which type of decision making is carried out by lower level management and deals with
specific day-to-day processes?
a) Strategic decision making
b) Administrative decision making
c) Programmed decision making
d) Operational decision making
5. When the subordinates or lower level managers passes information or offer suggestions to
higher level management, they are using which type of communication?
a) Downward Communication
b) Upward Communication
c) Lateral Communication
d) Informal Communication
6. A few years ago Black and Decker bought General Electric’s small appliance business. 150
products were converted from GE to Black and Decker label. A total of 140 steps were used
for each product. It took 3 years. The total conversion of product line was:
a) A Program
b) A project
c) A policy
d) A rule
7. The organizational structure in which separate business units are grouped under a manager
responsible for performance, strategy and operations is:
a) Strategic business units
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Principles of Management (MGT-503)
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b) A divisional structure
c) Functional structure
d) A simple structure
8. What is the purpose of organizational structure?
a) To help the organization achieve its goals
b) To organize processes and procedures that will facilitate production
c) To facilitate vertical and horizontal communication
d) To provide a clear chain of command
9. Being "closer to customers" is a strength of which form of departmentalization?
a) Process
b) Functional
c) Geographic
d) Product
10. Boredom, poor quality, and fatigue are three negative consequences from which organizational
design process?
a) Span of control
b) Decentralization
c) Work specialization
d) Departmentalization
11. Which organizational structure is designed so that an employee can have two managers?
a) Team
b) Learning
c) Boundary less
d) Matrix
12. A very important characteristic of learning organizations is that:
a) They must have a wide span of control
b) Employees are reluctant to collaborate and share knowledge
c) They are highly centralized
d) Employees share information and collaborate on work activities
13. An organization that wants to be more responsive to changes in its environment, especially to
customers, is likely to have an organization structure that is:
a) Decentralized and empowers employees
b) Very formal and rule oriented
c) Highly centralized
d) Mechanistic
14. What should be the relationship between managers and leaders?
a) There should be no relationship between management and leadership
b) All managers should be leaders
c) All leaders should be managers
d) All managers should be leaders and all leaders should be managers
15. Which plan cannot be used if rewards are allocated only on seniority basis?
a) Employee recognition
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Principles of Management (MGT-503)
Quiz # 02 SPRING SEMESTER, 2008
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b) Pay-for-Performance
c) Open-book management
d) Stock option programs
16. What principle state that satisfaction of one level of need encourages concern with second
level?
a) Maslow’s hierarchy of need theory
b) Satisfaction Progression
c) Growth and Achievement
d) Frustration Regression
17. Which one of the following is the highest need on Maslow’s hierarchy of need theory?
a) Self-actualizing
b) Safety
c) Esteem
d) Social
18. A manufacturing company has divided its departments into pattern making, fabric cutting, and
fabric coloring. What type of departmentalization is this?
a) Geography Departmentalization
b) Function Departmentalization
c) Process Departmentalization
d) Product Departmentalization
19. Which of the following is the most common type of departmentalization?
a) Process Departmentalization
b) Geography Departmentalization
c) Market Departmentalization
d) Function Departmentalization
20. The management of people/labor should be handled by which of the following department in
an organization?
a) Administration
b) Information Systems
c) Human Resources