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Serving the Cook Islands, Fiji, Kiribati, Marshall

Islands, Nauru, Niue, Samoa, Solomon Islands,


Tokelau, Tonga, Tuvalu and V anuatu

Faculty of Business & Economics


School of Management and Public Administration

MG101
Introduction to Management
Semester 1, 2009

Test 1
Question Paper

Time Limit: 1 hour (No reading time allocated)

Instructions:
1. Start writing when told to do so by the Course Coordinator.
2. Write your full names on the answer sheet. Indicate clearly, first name
and last name in the space provided on the answer booklet.
3. Indicate your student ID number, tutorial day & time and your tutor’s
name on the answer sheet.
4. Ensure that your names and ID numbers are indicated on all the pages
of the answer sheet. If extra sheets used, again label clearly.
5. There are 3 sections to the test paper:
a. Section A: Multiple Choice (Compulsory) 20 Questions-20 marks
b. Section B: True/False (Compulsory) 10 Questions-10 marks
c. Section C: Short Answers (Choices). Answer any 3 Questions
from the 5 Questions given 15 marks
6. The total mark for this test is 45 marks and will be converted to 15% as
per the assessment for test 1 indicated on the course outline.

MG101: Introduction to Management Test 1 Question Paper 1


Compulsory
Section A: Multiple Choice 20 Questions (20 marks)

Multiple Choice contains 20 Questions and each question is worth 1 mark.

1. An upside-down pyramid has several practical implications. Which of the following


is/are included among these practical implications?
A. Each individual is a value-added worker who creates eventual value for the
organisation’s customers or clients.
B. A manager’s job is to support workers’ efforts to add value to the organisation’s
goods or services.
C. The best managers are often known for ‘helping’ and ‘supporting’ rather than
‘directing’ and ‘order-giving’.
D. All of the above are practical implications of the upside-down pyramid.
E. None of the above is practical implications of the upside-down pyramid.

2. According to Charles Handy, a __________ is a person who pursues career paths with a
traditional character.
A. temporary skilled worker
B. contract worker
C. part-time worker
D. core worker
E. service worker

3. Displaying negative, irrational opinions and attitudes toward members of diverse


populations is considered to be __________.
A. unholy
B. an injustice
C. illegal
D. prejudice
E. holding power within your own hands

4. All but one of the following workplace pressures involving ethics and social
responsibility toward human capital will affect organisations and their members in the
future. Identify the pressure that will NOT affect organisations and their members?
A. job security
B. occupational safety and health
C. equal employment opportunities
D. employees’ demands for less self-determination and greater supervisory oversight
E. equity of compensation and benefits

MG101: Introduction to Management Test 1 Question Paper 2


5. Which of the following operations objectives should be used to guide value-added efforts
in developing and maintaining a customer-driven organisation?
A. High quality, low costs and on-time delivery
B. High quality, motivated employees and low inventory carrying costs
C. High quality, low costs and low scrap rates
D. High quantity, low costs and high profit margins
E. High quality, minimal cycle time and efficient procedures

6. Which of the following statements provides an accurate description about subcultures?


A. Functional subcultures are composed of ‘salaried professionals’ such as lawyers,
scientists, engineers and accountants.
B. Occupational subcultures refer to people who develop strong identities with their
work groups and specific areas of task responsibilities.
C. Ethnic subcultures reflect gaps that exist between people who grew up and are
growing up during different periods of history, and whose values have thus evolved
under different influences.
D. Gender subcultures reflect differences in the values and beliefs of women and men.
E. Functional subcultures consist of different ethnic and racial groups that work well
together.

7. Philip Crosby has developed what he calls the ‘four absolutes’ of management for total
quality control. Which of the following is NOT one of Crosby’s ‘four absolutes’ of
management?
A. Quality means conformance to standards.
B. Quality comes from defect prevention, not defect correction.
C. Quality comes from multiple defect inspections.
D. Quality as a performance standard must mean defect-free work.
E. Quality saves money.

8. Gloria assembles circuit boards in a computer manufacturing plant. She gets the chips for
the boards from David, assembles the boards, and then forwards them to Judy, who puts
them into the finished components. This example illustrates the concept of __________.
A. integrated manufacturing processes
B. efficient task assignments
C. internal customers, who use the results of others’ work to do their job
D. total quality management and shared responsibility
E. Deming’s path to quality

9. Useful information has the characteristics of __________.


A. timeliness, quantity, completeness, relevance and understandability
B. timeliness, quality, completeness, relevance and understandability
C. timeliness, quality, completeness, relevance and acceptance
D. timeliness, quantity, quality, completeness and acceptance
E. timeliness, completeness, relevance, applicability and acceptance

MG101: Introduction to Management Test 1 Question Paper 3


10. Suppose that a field salesperson uses e-mail to send a customer’s suggestion for a product
modification to a product designer at company headquarters. After creating a computer-
assisted design for the product, the designer uses the computer to pass it on
simultaneously to engineering, manufacturing, finance and marketing experts for their
preliminary analysis. This is an example of the use of a(n) __________.
A. expert system
B. enterprise-wide network
C. data management system
D. macro software system
E. artificial intelligence network

11. Suppose a work process is changed with the intent of increasing output by 5%. After the
first month of operation with the new work process, an output increase of 7% is reported.
This is an example of a __________.
A. performance opportunity
B. ethical situation
C. performance deficiency
D. work process strength
E. planning strength

12. The tendency to increase effort and perhaps apply more resources to pursue a course of
action that is not working is known as __________.
A. cost-benefit impact
B. heuristics
C. escalating commitment
D. escalating cost impact
E. satisficing

13. The assumption that people are rational and primarily interested in economic incentives
from their work is the underlying assumption of which approach to management thought?
A. Quantitative approach
B. Socioeconomic approach
C. Modern approach
D. Classical approach
E. Behavioural approach

14. Today’s concerns for managerial ethics and corporate social responsibility were
foreshadowed by the classical writings of __________ that businesses were services and
that private profits should always be considered in relation to the public good.
A. Frederick Taylor
B. Henri Fayol
C. Mary Parker Follett
D. Max Weber
E. Lyndall Urwick

MG101: Introduction to Management Test 1 Question Paper 4


15. Red tape, slowness in handling problems, resistance to change, and employee apathy are
disadvantages of which type of organisation?
A. Closed
B. Complex
C. Administrative
D. Conservative
E. Bureaucratic

16. __________ include the needs for self-fulfilment, to grow and use abilities to the fullest
and most creative extent.
A. Physiological needs
B. Safety needs
C. Social needs
D. Esteem needs
E. Self-actualisation needs

17. Production plans, financial plans, facilities plans, marketing plans and human resource
plans are all examples of __________ plans.
A. strategic
B. operational
C. contingency
D. standing-use
E. flexible

18. A __________ budget is defined as one that allocates resources to activities based on a
single estimate of costs.
A. fixed
B. flexible
C. zero-based
D. contingency
E. comprehensive

19. Effective planning by managers helps accomplish which step in the control process?
A. Measuring actual performance
B. Comparing actual performance with objectives and standards
C. Establishing performance objectives and standards
D. Taking necessary corrective action
E. Evaluating the results of corrective action

20. Which of the following is an accurate description of the control equation?


A. Need for action = desired performance + actual performance
B. Need for action = performance expectations + performance deviations
C. Need for action = desired performance – actual performance
D. Need for action = performance expectations – performance deviations
E. None of these is an accurate description of the control equation.

MG101: Introduction to Management Test 1 Question Paper 5


Compulsory
Section B: True/False 10 Questions (10 marks)

True/False contains 10 Questions and each question is worth 1 mark.

1. General managers have responsibility for a single area of activity, such as finance,
marketing, production, human resources, accounting, or sales.

2. Emotional intelligence is a component of conceptual skills.

3. The organisation’s core values are underlying assumptions and beliefs that influence the
behaviour of organisation members and give rise to elements of the observable culture.

4. Sexual harassment and pay discrimination are two of the possible challenges that are
faced by the majority group in an organisation.

5. Since a crisis can lead to disaster if not resolved quickly and appropriately, it should be
handled through programmed decision making.

6. Decision alternatives are typically evaluated in terms of a cost-benefit analysis, but are
seldom evaluated in terms of timeliness, acceptability and ethical soundness.

7. Henri Fayol believed that management principles could be taught. Consequently, he set
forth several management principles that could be taught to people to improve the quality
of management practice.

8. Theory Y managers believe that their subordinates dislike work and lack ambition.
Theory X managers believe that employees like work and will accept responsibility.

9. Quantitative forecasting techniques use expert opinions to predict the future, whereas
qualitative forecasting uses mathematical analyses to predict future events.

10. Improvement objectives, personal development objectives and maintenance objectives


can be specified in an MBO contract.

MG101: Introduction to Management Test 1 Question Paper 6


Choices
Section C: Short Answers (15 marks)

Short Answer Section contains Five (5) Questions. Answer any three (3)
Questions from the 5 choices given.
1. Define and give an example of each of the four functions of management? (5 marks)

2. List and explain the elements of the general environment? (5 marks)

3. Differentiate between the classical model and the behavioural model of decision making?
(5 marks)

4. Explain the 3 decision conditions: risk, certainty and uncertainty? (5 marks)

5. Inventory control is a type of control used in organizations. Explain Economic order


quantity (EOQ) and Just-in-time scheduling (JIT) as methods of inventory control? (5
marks)

END OF EXAM!

MG101: Introduction to Management Test 1 Question Paper 7

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