INTRODUCTION MANAGEMENT EXIT EXAM QUESTIONS WITH ANSWERS

1. Which one of the following statement is false regarding management?

a) Different Scholars define it from the their area of interest
b) Management as a discipline is young and lack clarity of concepts and principles
c) a single, comprehensive, and universally accepted definition of management is possible
d) all
ANS: C it is impossible to give management a single, comprehensive and universally accepted
definition.
2. Amongst one is not the characteristic of management
a) universal b) goal oriented c) continuous process
d) multi-disciplinary e) has absolute principles
ANS: E. it has no absolute principles; that is the principles are subject to change.
3. one is/are the bases for all other management functions
a) organizing b) directing/leading c) controlling d) staffing E) planning
ANS: E. planning lays the ground/starting point/ for all other management functions
4. Planning is the most important function of management than the rest
a) true b) false
ANS: B. to be most important all other functions have to be carried out together. For example, a car
without a brake or steering wheel is functionless although all other parts are ready. To make a car useful
all parts should come together
5. Assembling of necessary resources to achieve the prescribed objectives/goal is/are
a) staffing b) organizing c) planning d) leading e) controlling
ANS: B. organizing helps us to identify the necessary resources required to achieve objectives set during
the planning process
6. Management function which assigns works among workers is/are
a) staffing b) controlling c) organizing d) planning e) staffing
ANS: C. organizing helps us to identify each individual and their respective duties, each vertical line of
responsibility. Line of authority( to whom to report when there is problem or difficulties)

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7. management function that fill the job created by the organization is
a) staffing b) planning c) organizing d) directing e) all
ANS: A. staffing carries out recruitment. Staffing include:- selecting, hiring, motivating, training
8. many aspects of staffing is the responsibility of
a) directing managers b) general managers c) operational managers d) personnel managers
ANS: D. it is the personnel department who is responsible for selecting, hiring, and training the
employees
9 .which of the following functions of management is related with establishing standards
a)planning b) organizing c) controlling d) directing
ANS:C. controlling helps in establishing standards. With the help of this standard performances are
evaluated. Standards (expected outcomes VS achieved performance)
11. Motivating, , promoting, new job assignment is classified under management functions of
a) directing b) organizing c) leading d) a & c e) b & C
ANS: D
12. of the ff one is not role of top level management
a) preparation of strategic plans c) set broader objective d) outlay major objectives
b) detailed courses of objectives e) responds to change in the external environment
ANS: B. detailed course of objectives are made by fist level managers, partially with middle levels
13. sol ink corporation has three branches in addis. And Belete works as managers in one of the
branches located at Akaki. Belete is
A. top manager b) first level manager c) middle level manger d) all
ANS: C. branch managers, divisional heads, department managers, section heads, plant managers are all
examples of middle level managers.
14. Select the wrong statement about middle level managers
a) acts as intermediary between top and fist level managers
b) works with top level managers in preparing strategic plans
c) translate long term objectives set by top level managers into medium range objectives
d) all e) none

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ANS: E. all are correct statements
15. Identify the correct statement about operating level managers
a) plan daily and weekly activities c) their subordinates are management workers
b) assign tasks to operating employees d) can directly report to top level mangers e) c & d
ANS: E. the sub ordinates of first /operating level managers are non-management workers, and they
should report to middle level managers ( should follow the organizational hierarchy:- first-to- middle-to-
top)
16.What are the three levels of managers?
1. top level managers………. Strategic plan
2. middle level managers…….tactical plan
3. first/operating level managers……operational pan

16. wichch one of the following plan is prepared by top level managers?
a) Administrative b) tactical c) strategic d) operational

ANS: C. strategic plans are prepared by top level managers

Mention the two types of the managers , what is the classification criteria?
ANS: 1.functional mangers
2. general managers
This classification is based on the scope of the activity area they address. Scope simply means the
working area coverage of each. For example, functional managers works only in their area of
specialization like accounting dept., marketing dept. etc, while general managers may include
functional managers and responsible for the overall operation of complex unit, for example,
company.

17. Henry Mintzberg identified three categories of managerial roles and skills, what are they?
1. interpersonal roles
a) figurehead role –represent the organization at wedding, funeral ceremony, hotel inauguration.
b) leadership role ..staffing:- hiring, promoting, motivating,
c)liaison role …dealing within and outside the organization

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 2. information roles
a)monitor role .. seeking and screening information
b)disseminator role …..sharing information with subordinates
c) spokesperson role …. Speaking to outsiders by representing the organization

3. decision roles
a) entrepreneurial role b) disturbance handler role c) resource allocator role d) negotiation role
17. what are the three managerial skills
ANS: 1. conceptual skill
2. interpersonal skill
3. technical skill
18. top level managers are more equipped with
a) technical skills b) conceptual skills c) interpersonal skills d) all
ANS: B. all managers have all of the three skills( conceptual, interpersonal and technical) but top levels
are more equips with conceptual. Middle level with interpersonal and operating/first level managers
with technical skills.
19. why Management is universal ? explain
ANS: 1. Managers at all level perform the same managerial function. i.e planning, organizing,
staffing, directing and controlling
2. it is applicable in all areas whether it is governmental organization, non-governmental, profit
making or else
20. Management is both science and art, discuss.
21. all are true statement regarding planning, except
a) can be both short term and long term d) sets foundation for all the managerial functions to follow
b) the first step of all managerial function
c) mainly concerned with ends(what to be done) and its means
e) none
ANS: E. all are true about planning
22. Plans are first set for the entire organization are called

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a) corporate plan b) divisional plan c) departmental plan e) sectional plan
ANS: A. the first plan set for the organization is corporate plan. Then this plan can be further
subdivided into divisional, departmental and sectional goals.
23. what are the dimensional area for classification of plan
ANS: 1. repetitiveness …a) standing plan b) single use plan
2. Time dimension ….a) long range b) intermediate range c) short range
3. Scope/breadth….a) strategic planning b) tactical planning c) operational planning
24. .which one of the following included under single use plan
a)policy b) program c) strategy d) procedure

- ANS: B. single use plan: programs, projects and budgets. Single use plans may use standing plans
and other single use plans to be effective.

Single use plan = Standing plans + Single use plans

Standing plan:- mission or purpose, goal or objective, strategy, policy, procedure, method and rule
25. the basic function or task to be performed by the organization is
a) mission/purpose b) goals/objectives c)procedures d) rules
ANS: A. mission/purpose… the main/ basic activity itself. E.g producing quality products
Goals/objectives….. end results of the activity. E.g producing 500 products, making profit
Strategies….. means to achieve objectives/ stated course of actions to achieve objectives
Policy…..general guideline for decision making
Procedures: show the sequence of activities
Methods: more detail than procedure
26. is the simplest type of plan
a) procedure b) method c) policy d) rules
ANS: D
27. identify wrongly matched
a) strategic plan…….. top level managers c) operational plan…..first/operating level managers
b) tactical plan……….middle level managers d) none

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ANS: D. all are correctly matched
28. looking organizational threat and opportunity, internal weakness and strength is an example of
a) tactical plan b) operational plan c) strategic plan d) all
ANS: C. setting general organizational objectives, solving problems related to the organization in
general/ as a whole is done by top level managers/strategic plan/

29. options are the necessary condition for decision making

a) true b) false
ANS: A. for decision to be there, there should be problem and the problem should force us to select
among different alternatives.
30. what are the three basic elements of decision making?
ANS: a) selecting alternative
b)existence of available information’s
c)objective in mind….i.e organizational objectives

31. which of the following cannot be limiting factor for decision making?
a) time b) resource c) money d) all e) none
ANS: E. all are limiting factor for decision making.
32. one is not true about decision making under risk
a) outcomes are estimates of probability c) managers have factual information but may be incomplete
b) are the most common decision making environment d) managers always make right decisions
ANS: D. mangers decision under risk environment would have a moderate chance of making bad
decision.( half good half bad, not totally right.. there is probability of making mistakes)
33. one is true regarding decision making under uncertain environment
a) decision maker does not know what all the alternatives c) a &b
b) outcomes/end results/ cannot be estimated with probability d) all
ANS: D. all are true about decision making under uncertain environment. Decision making under
certainty, managers have a perfect knowledge about the problems, and outcomes.
34. poor decision are not the result of

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 a) lack of time c) focusing on cause rather than symptoms
b) unreliable information d) Failure to define goals
ANS: C. good managers should be preventive (before it happens) rather than proactive (after it
happens). If managers focus on symptoms than cause the poor decision may happen.
35. Which one is the most difficult decision making environment for managers
a) decision under risk b) decision under certainty c) decision making under uncertainty
ANS: C. this is because under this environment managers do not have any know how about the problem,
do not know it alternative, and it outcomes.

36. management philosophy and systematic process through which managers of all levels communicate
with subordinates in terms of goals and how specific activities of the subordinates can contribute to
reaching these goals
a) management by preference b) management by objectives c) management by decision
ANS: B. its steps are statement of mission statement ….determination of strategic plan….identification
of tactical plan… development of operational plan
37. what are the two types of decisions?
ANS: a) programmed decision
b)Non-programmed decision
38. decisions that managers make in response to repetitive and routine situations are
a) non-programmed decision b) programmed decision c) sudden decision d) a & c
ANS: B.
39. one is not true about non-programmed decision
a) involves decision for novel and structured problems
b) involves more uncertainty, more time and effort than programmed decision
c) can be solved by creativity
d) none
ANS: A. non programmed decisions are decision for unstructured problem (unexpected problems)
40. of the following one is considered as officials goal

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a) tactical goals b) operational goals c) strategic goals
ANS: C. strategic goals are developed by top level managers and hence are called official goals.
41. types of goals that are expressed in relatively general non-specific terms are
a) operational goals b) strategic goals c) tactical goals d) a & c
ANS: B. strategic goals are expressed in broader and general terms which are developed by top level
managers. Operational goals are the most specific of all types of goals.

42. The gap between firms current position and where it wants to be is called d the
a) corporate plan b) planning gap c) divisional plan d) none
ANS: B. The difference between a firm would like to be (where we want to be) and where it will be if it
does nothing is planning gap. Strategic planning is primarily concerned with closing that gap.
Corporate plan is the first plan set for the organization as a whole.
43. is the process of identifying and grouping tasks to be performed, assigning responsibility and
delegating authority, and establishing relationships
a) staffing b) planning c) organizing d) directing
ANS: C. organizing assign who do what
44.___is a formal framework that shows a set of tasks assigned to individuals, departments, reporting
relationship
a) organizing b) corporate plan c) organizational structure d) divisional plan
ANS: C. when plan changes organizational structure also changes
45. one is not organizational activity
a) Determines work activities e) delegating authority
b) assigning work activities d) design a hierarchy of decision making r/ship e) all f) none
ANS: F. all are activities of organizing. Organizing result in organization structure

46. select the correct statement about informal organization

a) they are as powerful as formal organization
b) communication channels are called rumor mill/grapevine

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c) have no place on organizational structure
d) have written law
e) are always destructive to the organization
f) are conscious organized group
g) all except “D”, “E” and “f”
ANS: G. informal organization are not always destructive to formal organization. And they are made
unconsciously( not deliberately) and have unwritten law
47. what are the characteristics of informal group
1. group norm.. have unwritten law
2. group Cohesiveness: members stick together
3. Group leadership- most active person lead
4. grapevine/rumor mill- communication channel
N.B informal organization always exist in the organization

Organization Chart
Organization chart is simply a diagram or chart of all the
positions in the organization and their formal relationship
to one another.

48. organizational chart shows

a) formal channel of communication c) number of subordinate a manager holds
b) who reports to whom d) decision making hierarchy e) all
ANS: E.
54. what is the difference between vertical and horizontal structure?

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ANS: vertical shows top down relationship where as horizontal shows side/lateral/ relationship
49. ____ is the number of subordinate each managers holds
a) hierarchy b) span of control c) command line d)span of management e) b & d
ANS: E.
N.B span of control affect the speed of decision making. i.e the wider span of control the slower the
decision making.
50. which one of the following affect span of control
a) complexity of subordinate works c) ability of managers
b) ability and training of subordinates d) all
ANS: D
51. all are true except
a) centralized company has wider span of control
b) managers will have wider span of control when subordinate works have complex works
c) decentralized company have narrow span of control
d) all
e) none
ANS: E. all are false statement regarding narrow span management
52. narrow span of management is characterized by
a) fast decision making process c) managers mangers small subordinates
b) tall organizational structure d) flat organizational structures e) b& c f) a & d
ANs: E. since narrow span of management is tall decision delay.

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 Narrow span of management
✓ it is a tall organizational structure characterized by narrow
span of control and relatively large number of hierarchical
levels.
✓ The manager manages small number of immediate
subordinates.
President

VP VP

M M M M M M

s s s s s s

53. What are the Building Blocks of Organizational Structure?

ANS A . Specialization- is the process of identifying the specific jobs that need to be done
and designating the people who will perform them
B. Departmentalization- is the grouping of similar or related jobs into logical units
1. Customer Departmentalization… shopping
2. Product Departmentalization…….type of products or services
3. Process Departmentalization….. production processes
4. Geographic Departmentalization…. to the areas of the country
5. Functional Departmentalization……. group’s functions or activities. Examples
include a firm’s production, marketing, human resource, accounting, and
finance departments
54.------- is legitimate power
a) responsibility b) accountability c) power D. authority
ANS: D.
Responsibility is the duty to perform an assigned task; authority is the power to make
decisions.
Power is the potential ability to affect the behavior of others

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 55. the two views of authority

ANS: 1classical view of authority… authority comes from top( top..bottom)

2. acceptance view of authority … bases of authority is the influence rather than influencer(
bottom up)
56. What ate three forms of authority
ANS: Line Authority. This authority flows vertically up and down the chain of command

Staff Authority. This authority is found among departments of advisors and counselors,
including
specialists
Committee and Team Authority. This is the authority that is granted to committees and
teams that play central roles in the firm’s daily operations. Employees are typically empowered
to plan and organize their own work and to perform that work with minimal supervision.

Wide span of management( control)

❖ it is a flat organizational structure characterized by an
overall broad span of controls, horizontal dispersion, and
fewer hierarchical levels.

President

M M M M M M M

Merits:
▪ Reduces over head costs
- Improved and fast communication
- Most suited to individuals desiring
Challenge, responsibility and autonomy
- Fast decision making
Demerits:
- Less control and coordination
Control and coordination difficult
as the work is highly interlocking.

56. form of authority that goes from top to subordinates is

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a) staff authority b) line authority c) committee authority d) team authority
ANS: B
57. staff authority can pass final decision by themselves
a) true b) false
ANS: B. staff authority cannot make decision by themselves. They simply facilitate line authority
decision. It is advisory in nature.
58. what are the sources of power?
ANS: Reward Power, Coercive power, Legitimate power, Expert Power and Referent Power

Reward power is simply the power of a manager to give some type of reward to an employee as a
means to influence the employee to act. Rewards can be tangible or intangible. ... Examples of tangible
rewards include monetary awards, wage or salary increases, bonuses, plaques, certificates, and gifts

Coercive power is the ability of a manager to force an employee to follow an order by threatening the
employee with punishment if the employee does not comply with the order. ... Examples of coercive
power include threats of write-ups, demotions, pay cuts, layoffs, and terminations if employees don't
follow orders.

Legitimate power is power you derive from your formal position or office held in the organization's
hierarchy of authority. For example, the president of a corporation has certain powers because of the
office he holds in the corporation. Like most power, legitimate power is based upon perception and
reality.

Nationalism, patriotism, celebrities, mass leaders and widely respected people are examples of referent
power in effect. Referent power refers to the ability of a leader to influence a follower because of the
follower's loyalty, respect, friendship, admiration, affection, or a desire to gain approval.

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Expert power is power based upon employees' perception that a manager or some other member of an
organization has a high level of knowledge or a specialized set of skills that other employees or
members of the organization do not possess

59. ______ is the assignment of authority and responsibility to others in order to carry out certain
assignments

a)delegation b) authority c)power d) responsibility

ANS: A. delegation is process of transferring authority and responsibility from superior to subordinate
60. delegation helps
a) passing quick decision c) give motivation
b) gives executive/top level managers more time for strategic plan d) all
ANS: all
61. all are correct regarding centralization
a) most decisions are made by authorities c) few individual posses the authority
b) existence of dispersion/distribution/ of authority d) a& c
ANS: D. dispersion/ distribution of authority is the characteristics of decentralization.
62. Decentralization is achieved through
a)extension b) delegation c) authorative control of power d) a & B
ANS: D.
63. of the ff one is not disadvantage of centralization
a) few people control the authority c) motivating and moral boosting for executives
b) hamper/slow down lower level development d) complicated communication
ANS: C. since decisions are made at top level it makes confusion and creates complicated
communication among the members.
64. staffing does not includes
a) hiring b) promoting c) motivating d) training e) none

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ANS: E. staffing includes all of the above. Staffing also called human resource management

65. which one is not elements of staffing

a) procurement b) retention d) separation d) none
ANS: D. all are elements of staffing
The 3 elements are 1. Procurement…acquisition. determining quality and quantity
2.retention/training/maintenance/ the employee
3.separation/exit/
66. one includes placement/recruitment
a) retention b) separation c) procurement d) all
ANS: C
67. filling open/ vacant position by the organization with the employee that already exist within the
organization is
a) external vacancy b) internal vacancy c) combination d) none
NS: B.
68. one is/are not considered as internal vacancy
a) promotion b) transfer c) call from layoff d)all e) none
ANS: E. promotion….salary increment
Transfer….. movement from one job to another with the same level
Layoffs……calling from suspension

69. process of evaluating and deciding the best and qualified candidates out of the pool of applicants
a) vacancy b) posting c) recruitment d) selection
ANS: D
70. Selection process may not include
a)physical examination b) employee test c) employee interview d) screening e) none
ANS: E. all are included in selecting the candidate for vacant position
71. one is true about induction/orientation

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a) made to make the new employee familiar with new environment
b) undertaken after placement letter
c) can be done through either oral or written material
d)all
ANS: D
72. _______ is the process of increasing the qualification of the employee
a) placement b) induction c) retention d) procurement
ANS: C.
73. _______ is as a human resource activity that is used to determine the extent to which an employee is
performing the job effectively.
a) staffing b) performance appraisal c) efficiency d) none
ANS: B
74. ______ is the movement of an employee from higher occupational level to a lower level(less pay and
less responsibility,
a) promotion b) retention c) transfer d) demotion
ANS: D
75. one is reason for exit/separation of worker and his working organization
a) resignation b) retirement c) dismissal d) all
ANS: All resignation…with the employees personal willingness/leave the organization
Retirement …… age is the cause
Dismissal……. Behavior of the employee is the cause

76.to direct the behavior of individuals a manager requires

a) leadership skill b) motivation skill c) communication skill d) all
ANS: D. all these are the three basic skill mangers need to direct individuals
77. one of the leadership theory is traits, discuss briefly what it means.
ANS: leadership simply mean the ability of managers to influence subordinates to work with confidence
and enthusiasm. ……….

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78. situational/contingency theory states
a) leaders who are very effective at one place and time may become unsuccessful in other place
b) Effective leadership depends upon the response to environmental factors accurately.
c) The contingency approach reveals there is no one best way to lead
d)all
ANS: D
79. autocratic leadership is characterized by
a) Use coercion b) Doesn’t permit participation in decision making
c) Gives definite instructions d) Doesn't welcome suggestion from subordinates
e) all
ANS: E. All
80. Rewards can be intrinsic or extrinsic explain
ANS: Intrinsic reward: - is the satisfaction that a person gets as a result of success.
Extrinsic reward: - is the reward given by another (outsider) for the success or good performance
81. explain the theory of motivation. The carrot and the stick approach
ANS: -relates to the use of rewards and penalties in order to induce desired behavior
-It came from the old story that to make a donkey move one must put a carrot in front of him or jab him
with a stick from behind.

82. discuss Maslow’s hierarchy of needs theory.

ANS: Maslow saw human needs in the form of hierarchy
As one need meet the other follows ascending from the lowest to the highest
• Abraham Maslow (American psychologist)
• Developed a theory of human needs
• Only unsatisfied need can influence behavior; a satisfied need is not a motivator

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 Abraham Maslow Hierarchy
SELF ACTUALIZATION
Make most of
unique abilities.
“Born to do”

Need for self-respect (esteem) &

recognition from others STATUS

Sense of belonging: family, clubs, rel., wrk.

Need to be accepted & needed SOCIAL

Properly functioning society that provides SECURITY

for all members through laws, limits, order, stability.

Need for body to achieve homeostasis: food, water,

sleep, air, constant body temp. SURVIVAL

83. is defined as the process of setting standards and measuring the actual performance
a) controlling b) staffing c) directing d) planning
ANS: A controlling … standard vs performance
84. what are the three types of control?
1. preventive control----preliminary control
2. steering control/concurrent……. Ongoing operation
3. post control ………feedback control
85. form of authority that goes from top to subordinates is
a) staff authority b) line authority c) committee authority d) team authority
ANS: B
86. staff authority can pass final decision by themselves
a) true b) false
ANS: B. staff authority cannot make decision by themselves. They simply facilitate line authority
decision. It is advisory in nature.
87. what are the sources of power?

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ANS: Reward Power
Coercive power Legitimate power Expert Power Referent Power
Reward power is simply the power of a manager to give some type of reward to an employee as a
means to influence the employee to act. Rewards can be tangible or intangible. ... Examples of tangible
rewards include monetary awards, wage or salary increases, bonuses, plaques, certificates, and gifts
Coercive power is the ability of a manager to force an employee to follow an order by threatening the
employee with punishment if the employee does not comply with the order. ... Examples of coercive
power include threats of write-ups, demotions, pay cuts, layoffs, and terminations if employees don't
follow orders.
Legitimate power is power you derive from your formal position or office held in the organization's
hierarchy of authority. For example, the president of a corporation has certain powers because of the
office he holds in the corporation. Like most power, legitimate power is based upon perception and
reality.
Nationalism, patriotism, celebrities, mass leaders and widely respected people are examples of referent
power in effect. ... Definition: Referent power refers to the ability of a leader to influence a follower
because of the follower's loyalty, respect, friendship, admiration, affection, or a desire to gain approval.
Definition of Expert Power. Expert power is power based upon employees' perception that a manager
or some other member of an organization has a high level of knowledge or a specialized set of skills that
other employees or members of the organization do not possess
88. ______ is the assignment of authority and responsibility to others in order to carry out certain
assignments
a)delegation b) authority c)power d) responsibility
ANS: A. delegation is process of transferring authority and responsibility from superior to subordinate
89. delegation helps
a) passing quick decision c) give motivation
b) gives executive/top level managers more time for strategic plan d) all
ANS: all
90. all are correct regarding centralization

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a) most decisions are made by authorities c) few individual posses the authority
b) existence of dispersion/distribution/ authority d) a& c
ANS: D. dispersion/ distribution of authority is the characteristics of decentralization.
91. Decentralization is achieved through
a)extension b) delegation c) authorative control of power d) a & B
ANS: D.
92. of the ff one is not disadvantage of centralization
a) few people control the authority c) motivating and moral boosting for executives
b) hamper/slow down lower level development d) complicated communication
ANS: C. it is advantages of centralization to executives. since decisions are made at top level it makes
confusion and create complicated communication among the members.
93. staffing does not includes
a) hiring b) promoting c) motivating d) training e) none
ANS: E. staffing includes all of the above. Staffing also called human resource management
94. which one is not elements of staffing
a) procurement b) retention d) separation d) none
ANS: D. all are elements of staffing
The 3 elements are 1. Procurement…acquisition. determining quality and quantity
2.retention/training/maintenance/ the employee
3.separation/exit/
95. one includes placement/recruitment
a) retention b) separation c) procurement d) all
ANS: C
96. filling open/ vacant position by the organization with the employee that already exist within the
organization is
a) external vacancy b) internal vacancy c) combination d) none
NS: B. internal vacancy is for internal employee within the organization and external vacancy is for
outsiders/

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97. one is/are not considered as internal vacancy
a) promotion b) transfer c) layoff d)all e) none
ANS: E. promotion….salary increment
Transfer….. movement from one job to another with the same level
Layoffs……calling from suspension
98. process of evaluating and deciding the best and qualified candidates out of the pool of applicants
a) vacancy b) posting c) recruitment d) selection
ANS: D
99. Selection process may not include
a)physical examination b) employee test c) employee interview d) screening e) none
ANS: E. all are included in selecting the candidate for vacant position
100. one is true about induction/orientation
a) made to make the new employee familiar with new environment
b) undertaken after placement letter
c) can be done through either oral or written material
d)all
ANS: D
101. _______ is the process of increasing the qualification of the employee
a) placement b) induction c) retention d) procurement
ANS: C. retention is the process of capacity building
102. _______ is a human resource activity that is used to determine the extent to which an employee is
performing the job effectively.
a) staffing b) performance appraisal c) efficiency d) none
ANS: B
103. ______ is the movement of an employee from higher occupational level to a lower level(less pay
and less responsibility) is called
a) promotion b) retention c) transfer d) demotion
ANS: D. demotion is the opposite of promotion

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104. one is reason for exit/separation of worker and his working organization
a) resignation b) retirement c) dismissal d) all
ANS: D. resignation…with the employees personal willingness/leave the organization
Retirement …… age is the cause
Dismissal……. Behavior of the employee is the cause
105.to direct the behavior of individuals a manager requires
a) leadership skill b) motivation skill c) communication skill d) all
ANS: D. all these are the three basic skill mangers need to direct individuals
106. one of the leadership theory is traits, discuss briefly what it means.
ANS: leadership simply means the ability of managers to influence subordinates to work with
confidence and enthusiasm. ……….
107. situational/contingency theory states
a) leaders who are very effective at one place and time may become unsuccessful in other place
b) Effective leadership depends upon the response to environmental factors accurately.
c) The contingency approach reveals there is no one best way to lead
d)all
ANS: D
108. autocratic leadership is characterized by
a) Use coercion b) Doesn’t permit participation in decision making
c) Gives definite instructions d) Doesn't welcome suggestion from subordinates
e) all
ANS: E. autocratic leadership is the opposite of democratic leadership
109. Rewards can be intrinsic or extrinsic explain
ANS: Intrinsic reward: - is the satisfaction that a person gets as a result of success.
Extrinsic reward: - is the reward given by another (outsider) for the success or good
performance
110. explain the theory of motivation. The carrot and the stick approach
ANS: -relates to the use of rewards and penalties in order to induce desired behavior

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 -It came from the old story that to make a donkey move one must put a carrot in front of him or
jab him with a stick from behind.

111. discuss Maslow’s hierarchy of needs theory.

ANS: Maslow saw explains human needs in the form of hierarchy
As one need meet the other follows ascending from the lowest to the highest( not from highest to
lowest)
• Abraham Maslow (American psychologist)
• Developed a theory of human needs
• Only unsatisfied need can influence behavior; a satisfied need is not a motivator

Abraham Maslow Hierarchy

SELF ACTUALIZATION
Make most of
unique abilities.
“Born to do”

Need for self-respect (esteem) &

recognition from others STATUS

Sense of belonging: family, clubs, rel., wrk.

Need to be accepted & needed SOCIAL

Properly functioning society that provides SECURITY

for all members through laws, limits, order, stability.

Need for body to achieve homeostasis: food, water,

sleep, air, constant body temp. SURVIVAL

112. is defined as the process of setting standards and measuring the actual performance
a) controlling b) staffing c) directing d) planning

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ANS: A controlling … standard vs performance
113. what are the three types of control?
1. preventive control----preliminary control
2. steering control/concurrent……. Ongoing operation
3. post control ………feedback control

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