Principles of Management MCQs [2023]

This article presents the multiple choice question for the course Principle of Management. The Principles of Management course presents the overview on concepts of management along with the principles and contemporary practices.

1. What is a goal in management?

• A financial target
• An objective or aim
• A way to measure employee performance
• None of the above

2. _____________ is not a characteristic of effective goals.

• Specific
• Measurable
• Achievable
• Vague

3. What is the purpose of setting goals in management?

• To create competition among employees
• To provide a roadmap for the organization
• To increase workload for employees
• None of the above

4. ___________is considered as the father of scientific management.

• Frederick Taylor
• Henri Fayol
• Max Weber
• Elton Mayo

5. Which of the following is not a principle of scientific management?

• Division of labor
• Standardization of work
• Scientific selection and training of workers
• Encouragement of employee autonomy

6. What is the difference between a goal and an objective?

• Goals are broader than objectives
• Objectives are more specific than goals
• Goals and objectives are the same thing
• None of the above

7. ___________ is not a type of organizational goal.

• Financial goals
• Human resource goals
• Marketing goals
• Personal goals

8. What is the concept of “one best way” in scientific management?

• There is only one correct way to perform a task
• Each worker should be allowed to choose their own way of performing a task
• Workers should be given multiple ways to perform a task
• None of the above

9. What is effectiveness in management?

• The ability to do things right
• The ability to do the right things
• The ability to achieve goals efficiently
• None of the above

10. What is the difference between effectiveness and efficiency?

• Effectiveness is about achieving goals, while efficiency is about doing things in the right way
• Efficiency is about achieving goals, while effectiveness is about doing things in the right way
• Effectiveness and efficiency are the same thing
• None of the above

11. Which of the following is a limitation of scientific management?

• It does not take into account individual differences among workers
• It is too expensive to implement
• It is too time-consuming to implement
• None of the above

12. What is the purpose of time and motion studies in scientific management?

• To identify the most efficient way to perform a task
• To reduce employee autonomy
• To increase employee motivation
• None of the above

13. Which of the following is not a type of standardization used in scientific management?

• Standardization of tools and equipment
• Standardization of work methods
• Standardization of employee pay
• Standardization of output

14. What is the focus of scientific management?

• The individual worker
• The organization as a whole
• The external environment
• None of the above

15. What is the main criticism of scientific management?

• It dehumanizes workers and reduces them to mere machines
• It is too focused on efficiency at the expense of effectiveness
• It is too costly to implement
• None of the above

16. What is the term used for the system of management developed by Henry Ford that was based on scientific management principles?

• Scientific management
• Administrative management
• Bureaucratic management
• Fordism

17. What is the “time study” concept?

• A method used to determine the most efficient way to perform a task
• A method used to determine the amount of time it takes to perform a task
• A method used to determine the optimal number of employees needed to perform a task
• A method used to determine the level of job satisfaction among employees

18. What is motion study?

• A method used to determine the most efficient way to perform a task
• A method used to determine the amount of time it takes to perform a task
• A method used to determine the optimal number of employees needed to perform a task
• A method used to determine the level of job satisfaction among employees

19. What is the Hawthorne effect in scientific management?

• The phenomenon that workers improve their performance when they know they are being observed
• The phenomenon that workers become less productive when they are monitored
• The phenomenon that workers are resistant to change
• None of the above

20. Who is considered the father of classical organization theory?

• Max Weber
• Frederick Taylor
• Henri Fayol
• Elton Mayo

21. What is bureaucracy in classical organization theory?

• A type of organizational structure characterized by a hierarchical authority structure, formal rules and procedures, and impersonal relationships
• A type of organizational structure characterized by a flat authority structure, informal rules and procedures, and personal relationships
• A type of organizational structure characterized by a matrix authority structure, flexible rules and procedures, and team-based relationships
• None of the above

22. What is the division of labor in classical organization theory?

• The process of breaking down tasks into smaller, specialized tasks
• The process of combining tasks into larger, more complex tasks
• The process of allowing workers to choose which tasks they will perform
• None of the above

23. What is the scalar chain in classical organization theory?

• The chain of command that extends from the top of the organization to the bottom
• The chain of relationships that extends horizontally across the organization
• The chain of communication that extends from the bottom of the organization to the top
• None of the above

24. What is the span of control in classical organization theory?

• The number of employees that a manager can effectively supervise
• The number of tasks that an employee can effectively perform
• The number of departments that an organization can effectively manage
• None of the above

25. ______________is considered the father of neo-classical theory.

• Peter Drucker
• Douglas McGregor
• Abraham Maslow
• Elton Mayo

26. What is the main focus of neo-classical theory?

• Efficiency and effectiveness
• Employee motivation and behavior
• Scientific management techniques
• None of the above

27. What is Theory Z in neo-classical theory?

• A management philosophy that emphasizes employee participation, teamwork, and consensus decision making
• A management philosophy that emphasizes the use of scientific management techniques
• A management philosophy that emphasizes the use of technology to improve efficiency
• None of the above

28. What is the Hawthorne effect in neo-classical theory?

• The phenomenon in which employees improve their performance in response to being observed
• The phenomenon in which employees become less productive as a result of being observed
• The phenomenon in which employees become more motivated as a result of being given greater autonomy
• None of the above

29. What is the difference between Theory X and Theory Y in neo-classical theory?

• Theory X assumes that employees are lazy and need to be closely monitored, while Theory Y assumes that employees are motivated and can be given greater autonomy
• Theory X assumes that employees are motivated and can be given greater autonomy, while Theory Y assumes that employees are lazy and need to be closely monitored
• Both Theory X and Theory Y assume that employees are motivated and can be given greater autonomy
• None of the above

30. What is the principle of order in classical organization theory?

• The principle that each employee should have a designated place within the organization
• The principle that each employee should be able to work from any location within the organization
• The principle that each employee should have no designated place within the organization
• None of the above

31. What is job enrichment in neo-classical theory?

• The process of increasing the number of tasks that an employee performs
• The process of increasing the level of responsibility and autonomy that an employee has over their work
• The process of reducing the number of tasks that an employee performs
• None of the above

32. Who is considered the father of behavioral theory?

• Abraham Maslow
• Elton Mayo
• Douglas McGregor
• Frederick Herzberg

33. What is reinforcement theory in behavioral theory?

• A theory that suggests that behavior is a result of the consequences that follow it
• A theory that suggests that behavior is a result of an individual’s self-concept
• A theory that suggests that behavior is a result of an individual’s cognitive processes
• None of the above

34. What is punishment in behavioral theory?

• A consequence that decreases the likelihood of a behavior occurring again
• A consequence that increases the likelihood of a behavior occurring again
• A consequence that has no effect on behavior
• None of the above

35. What is the difference between punishment and extinction in behavioral theory?

• Punishment involves the removal of a desirable consequence following a behavior, while extinction involves the removal of a behavior-reinforcing consequence
• Punishment involves the addition of an undesirable consequence following a behavior, while extinction involves the removal of a behavior-reinforcing consequence
• Both punishment and extinction involve the addition of an undesirable consequence following a behavior
• None of the above

36. Who is considered the father of behavioral theory?

• Douglas McGregor
• Abraham Maslow
• Frederick Herzberg
• B.F. Skinner

37. What is the system approach in management?

• An approach that views organizations as systems made up of interrelated parts that work together to achieve a common goal
• An approach that focuses on individual behavior and motivation
• An approach that emphasizes efficiency and productivity above all else
• None of the above

38. What are the key components of a system in the system approach?

• Input, process, output, feedback
• Goals, objectives, strategies, tactics
• Planning, organizing, leading, controlling
• None of the above

39. What is the input component in the system approach?

• The resources that are used to create the output
• The final product or service that is produced
• The process of transforming the inputs into outputs
• None of the above

40. What is the feedback component in the system approach?

• Information that is received about the output and used to improve the system
• Information that is received about the input and used to improve the system
• Information that is received about the process and used to improve the system
• None of the above

41. What is an open system in the system approach?

• A system that is self-contained and does not interact with its environment
• A system that interacts with its environment and can be influenced by external factors
• A system that is focused on efficiency and productivity above all else
• None of the above

42. What is the contingency approach in the system approach?

• An approach that suggests that there is no one best way to manage and that management practices should be adapted to fit the specific situation
• An approach that focuses on efficiency and productivity above all else
• An approach that emphasizes individual behavior and motivation
• None of the above

43. What is synergy in the system approach to management?

• The idea that the whole is greater than the sum of its parts
• The idea that individual components of a system are more important than the system as a whole
• The idea that the performance of the system is determined by the performance of its weakest component
• None of the above

44. What is the central idea of the contingency approach?

• There is no one best way to manage organizations
• Organizations should be managed in a centralized manner
• Organizations should be managed in a decentralized manner
• Organizations should be managed in a bureaucratic manner

45. What is the role of the manager in the contingency approach?

• To impose a management style on the organization
• To adapt their management style to fit the situation at hand
• To delegate their management responsibilities to subordinates
• To focus solely on financial performance of the organization

46. What is a decision-making style?

• A manager’s preferred way of making decisions
• The organizational structure of an organization
• The size of an organization
• The level of hierarchy in an organization

47. What is an autocratic decision-making style?

• A style in which the manager makes all decisions without consulting subordinates
• A style in which the manager consults with subordinates before making a decision
• A style in which the manager delegates decision-making authority to subordinates
• A style in which the manager uses a participative decision-making process

48. What is the definition of evaluating alternatives in the decision-making process?

• The process of identifying possible solutions to the problem
• The process of selecting the best solution to the problem
• The process of evaluating the outcomes of the solution
• The process of implementing the solution

49. What is the primary objective of managerial decision-making?

• Maximize profits
• Maximize revenue
• Maximize shareholder value
• Maximize customer satisfaction

50. What is the role of intuition in managerial decision-making?

• It should be avoided at all costs
• It is a necessary component of decision-making
• It should be used only as a last resort
• It is irrelevant to decision-making

51. What is the relationship between risk and uncertainty in decision-making?

• Risk and uncertainty are the same thing
• Risk is a component of uncertainty
• Uncertainty is a component of risk
• Risk and uncertainty are unrelated

52. What is the relationship between decision-making and problem-solving?

• They are the same thing
• Decision-making is a component of problem-solving
• Problem-solving is a component of decision-making
• They are unrelated

53. In which condition is the outcome of a decision completely known?

• Certainty
• Risk
• Uncertainty
• None of the above

54. What is the primary factor that differentiates risk from uncertainty?

• The amount of information available
• The amount of experience the decision-maker has
• The complexity of the decision
• The level of creativity required

55. In which condition is the decision-maker able to assign probabilities to the various outcomes?

• Certainty
• Risk
• Uncertainty
• None of the above

56. Which of the following is a characteristic of risk?

• The outcomes are known with certainty
• The outcomes are not known at all
• The outcomes are known, but the probabilities are unknown
• The outcomes are known, but the probabilities are uncertain

57. Which of the following is an example of uncertainty?

• Playing the lottery
• Investing in a mutual fund
• Starting a new business
• Going on a blind date

58. What is the primary difference between risk and uncertainty?

• Risk is predictable, while uncertainty is unpredictable.
• Risk is quantifiable, while uncertainty is not.
• Risk is certain, while uncertainty is uncertain.
• Risk is risky, while uncertainty is uncertain.

59. Which of the following is NOT a common barrier to decision making?

• Limited time
• Limited resources
• Limited information
• Rational thinking

60. Which of the following refers to the tendency to stick to the status quo?

• Anchoring bias
• Confirmation bias
• Availability bias
• Status quo bias

61. Which of the following is a type of bias that occurs when an individual overemphasizes recent events when making a decision?

• Anchoring bias
• Confirmation bias
• Availability bias
• Hindsight bias

62. Which of the following is a type of bias that occurs when an individual seeks out information that confirms their existing beliefs?

• Anchoring bias
• Confirmation bias
• Availability bias
• Hindsight bias

63. Which of the following is a type of bias that occurs when an individual bases their decision on an initial reference point?

• Anchoring bias
• Confirmation bias
• Availability bias
• Hindsight bias

64. Which of the following refers to the tendency to make decisions based on emotions rather than logic or reason?

• Emotional bias
• Confirmation bias
• Rational bias
• Anchoring bias

65. Which of the following refers to the tendency to continue with a failing course of action because of the time and resources already invested?

• Sunk cost bias
• Anchoring bias
• Confirmation bias
• Emotional bias

66. Which of the following refers to the tendency to make decisions based on what is immediately available, rather than seeking out additional information?

• Availability bias
• Confirmation bias
• Hindsight bias
• Rational bias

67. Which of the following refers to the tendency to believe that a decision that turns out well was the result of skill, while a decision that turns out poorly was the result of bad luck?

• Hindsight bias
• Confirmation bias
• Attribution bias
• Anchoring bias

68. Which of the following refers to the tendency to overestimate one’s own abilities and underestimate the abilities of others?

• Overconfidence bias
• Confirmation bias
• Availability bias
• Anchoring bias

69. Which of the following refers to the tendency to believe that past events were more predictable than they actually were?

• Hindsight bias
• Confirmation bias
• Availability bias
• Anchoring bias

70. Which of the following refers to the tendency to avoid making a decision by postponing it indefinitely or by seeking further information?

• Analysis paralysis
• Sunk cost bias
• Confirmation bias
• Emotional bias

71. Which of the following refers to the tendency to make decisions based on how easily examples come to mind, rather than on a thorough analysis of all available information?

• Availability bias
• Confirmation bias
• Hindsight bias
• Emotional bias

72. Which of the following refers to the tendency to make decisions based on the opinions of others, rather than on one’s own analysis of the situation?

• Groupthink
• Sunk cost bias
• Confirmation bias
• Anchoring bias

73. Which of the following is a type of cognitive bias in decision-making?

• Anchoring bias
• Perceptual bias
• Confirmation bias
• All of the above

74. Which type of bias occurs when people tend to give more weight to the first piece of information they receive?

• Confirmation bias
• Anchoring bias
• Hindsight bias
• Framing bias

75. Which type of bias occurs when people tend to search for, interpret, and remember information in a way that confirms their pre-existing beliefs?

• Anchoring bias
• Hindsight bias
• Confirmation bias
• Availability bias

76. Which type of bias occurs when people tend to overestimate their ability to predict the outcome of an event after it has occurred?

• Hindsight bias
• Anchoring bias
• Framing bias
• Confirmation bias

77. Which type of bias occurs when people tend to make decisions based on how the information is presented to them, rather than on the actual information itself?

• Anchoring bias
• Framing bias
• Hindsight bias
• Confirmation bias

78. Which type of bias occurs when people tend to rely too heavily on the first piece of information they receive and don’t adjust their subsequent decisions accordingly?

• Hindsight bias
• Confirmation bias
• Anchoring bias
• Availability bias

79. Which type of bias occurs when people tend to overestimate the likelihood of events that are more easily remembered?

• Availability bias
• Framing bias
• Confirmation bias
• Anchoring bias

80. Which type of bias occurs when people tend to rely too heavily on their initial impressions or first pieces of information when making subsequent decisions?

• Availability bias
• Confirmation bias
• Anchoring bias
• Hindsight bias

81. Which type of bias occurs when people tend to make decisions based on their emotions or feelings, rather than on rational thought?

• Emotional bias
• Confirmation bias
• Anchoring bias
• Availability bias

82. Which type of bias occurs when people tend to judge the likelihood of an event based on how closely it resembles a typical or stereotypical example?

• Representative bias
• Confirmation bias
• Anchoring bias
• Availability bias

83. Which of the following is not a characteristic of planning?

• Goal-oriented
• Future-oriented
• Reactive
• Continuous

84. Planning is considered as a ___________ function of management.

• Technical
• Administrative
• Operational
• Functional

85. Which of the following is not a step in the planning process?

• Establishing objectives
• Evaluating alternatives
• Implementing plans
• Controlling performance

86. The primary purpose of planning is to:

• Increase employee satisfaction
• Improve organizational communication
• Achieve organizational objectives
• Reduce operational costs

87. Planning at the strategic level focuses on ___________.

• Short-term goals
• Day-to-day operations
• Long-term goals
• Tactical objectives

88. __________ is not a type of plan.

• Strategic plan
• Operational plan
• Functional plan
• Historical plan

89. Which of the following is not an advantage of planning?

• Facilitates decision-making
• Improves coordination
• Enhances employee creativity
• Provides a basis for control

90. The scope of planning is determined by ___________________.

• The size of the organization
• The industry in which the organization operates
• The availability of resources
• The organization’s objectives

91. Which of the following is not a factor affecting the planning process?

• Environmental uncertainty
• Managerial bias
• Organizational culture
• Competitor behavior

92. The planning horizon refers to:

• The time frame for achieving objectives
• The length of the planning process
• The type of plan being developed
• The size of the planning team

93. Contingency planning involves ______________________.

• Developing plans for unexpected events
• Continuously adjusting plans based on new information
• Evaluating the success of completed plans
• Implementing plans in a timely manner

94. The concept of SMART goals refers to:

• Goals that are Specific, Measurable, Attainable, Relevant, and Timely
• Goals that are Simple, Measurable, Achievable, Realistic, and Timely
• Goals that are Specific, Manageable, Achievable, Relevant, and Tactical
• Goals that are Strategic, Meaningful, Achievable, Relevant, and Timely

95. What is the span of control?

• The number of subordinates a manager can effectively manage
• The amount of control a manager has over their subordinates
• The level of authority a manager has within an organization
• The number of managers reporting to a senior manager

96. Which of the following factors affects the span of control?

• Complexity of tasks
• Manager’s leadership style
• Number of levels in the hierarchy
• All of the above

97. Which organizational structure would have a narrow span of control?

• Tall structure
• Flat structure
• Matrix structure
• D. Network structure

98. Which organizational structure would have a wide span of control?

• Tall structure
• Flat structure
• Matrix structure
• Network structure

99. Which of the following is an example of a formal communication channel?

• Grapevine
• Face-to-face conversation
• Email
• Social media

100. ____________ is an example of an informal communication channel.

• Memo
• Newsletter
• Notice board
• Grapevine

101.  Grapevine in communication channels is ________________.

• A type of social media platform
• A formal communication channel
• An informal communication channel
• A face-to-face conversation

102. Which of the following is a disadvantage of using written communication channels?

• A. Lack of clarity
• B. Lack of permanent record
• C. Time-consuming
• D. Less formal

103. Which of the following is a disadvantage of using verbal communication channels?

• Lack of clarity
• Lack of permanent record
• Time-consuming
• Less personal

104. Which of the following is an advantage of using written communication channels?

• Offers anonymity
• Allows for immediate feedback
• Provides a permanent record
• Allows for personal touch

105. Which of the following is an example of a two-way communication channel?

• Memo
• Newsletter
• Notice board
• Video conferencing

106. ______________ is an example of a synchronous communication channel.

• Email
• Telephone
• Text message
• Memo

107. Which of the following is a barrier to effective communication?

• Feedback
• Noise
• Clarity
• Transparency

108. __________________ is an example of a physical barrier to communication.

• Language differences
• Stereotyping
• Distance between sender and receiver
• Lack of attention

109. Which of the following is an example of an emotional barrier to communication?

• Noise
• Language differences
• Lack of trust
• Cultural differences

110. ____________ is an example of a cultural barrier to communication.

• Jargon
• Noise
• Distance between sender and receiver
• Stereotyping

111. Which of the following is an example of a psychological barrier to communication?

• Language differences
• Noise
• Stereotyping
• Prejudice

112. What is noise in communication?

• Physical interference that affects message transmission
• Psychological interference that affects message perception
• Emotional interference that affects message interpretation
• Cultural interference that affects message understanding

113. Which of the following is an example of internal noise in communication?

• Language differences
• Stereotyping
• Psychological biases
• Cultural differences

114. Which of the following is a way to overcome psychological barriers in communication?

• Being assertive
• Being aggressive
• Being passive
• Being empathetic

115. What is the purpose of control in management?

• To ensure that organizational goals are achieved
• To maximize profits
• To minimize costs
• To improve employee satisfaction

116. Which of the following is a type of control?

• Feedback control
• Feedforward control
• Concurrent control
• All of the above

117. What is the purpose of feedback control?

• To prevent problems from occurring
• To identify problems that have already occurred
• To ensure that resources are allocated efficiently
• To motivate employees

118. Which of the following is a limitation of control?

• It can be time-consuming
• It can be expensive
• It can be demotivating for employees
• All of the above

119. Who proposed the concept of bounded rationality?

• Frederick Winslow Taylor
• Peter Drucker
• Herbert Simon
• Michael Porter

120. What is bounded rationality?

• The idea that humans have unlimited cognitive abilities
• The idea that humans have limited cognitive abilities
• The idea that humans always make rational decisions
• The idea that humans never make rational decisions