Management: Definition and Characteristics

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Which of the following scenarios best exemplifies 'effectiveness' in management?

A company reduces its production costs by 15% by streamlining its manufacturing process.
A business increases its market share by launching an innovative product that satisfies customer needs. (correct)
A project team completes a project on time and within budget, meeting all client specifications.
A manager implements a new software system that decreases employee workload by 20%.

Why is management considered a dynamic function?

Because it requires constant adaptation to changing environments and conditions. (correct)
Because its main goal is to maintain stability within the organization.
Because it strictly adheres to established principles and theories.
Because it primarily focuses on maximizing resource utilization.

Which of the following is an example of a 'social objective' of management?

Offering high-quality products at reasonable prices to the community. (correct)
Maximizing shareholder wealth through increased dividends.
Providing employees with competitive salaries and benefits.
Achieving a 20% increase in annual revenue.

In what way does the 'art' aspect of management manifest itself?

The personalized and creative application of managerial knowledge. (C) Signup and view all the answers

A company is facing declining profits. According to the objectives of management, what should be the immediate priority?

Ensuring the survival of the organization by covering costs. (C) Signup and view all the answers

Which of the following best describes the relationship between efficiency and effectiveness in management?

Effectiveness is about achieving goals, while efficiency is about minimizing waste in the process. (C) Signup and view all the answers

How does management contribute to the development of society?

By creating employment opportunities and engaging in charitable activities. (A) Signup and view all the answers

Why is management considered a 'group activity'?

Because it relies on the coordinated efforts of multiple individuals to achieve common goals. (A) Signup and view all the answers

A company is facing increased competition in the market. Which type of plan would be MOST suitable for addressing this specific challenge?

Strategy (C) Signup and view all the answers

Which of the following represents the correct sequence involved in the organizing process?

Identify and divide work → Departmentalization → Assign duties → Establish a reporting hierarchy (C) Signup and view all the answers

In an organization, what is the PRIMARY distinction between formal and informal structures?

Formal structures have a vertical hierarchy, while informal structures have no defined chain of command. (C) Signup and view all the answers

A manager delegates a project to a subordinate. Which element of delegation CANNOT be fully transferred from the manager to the subordinate?

Accountability (A) Signup and view all the answers

Which of the following BEST describes the key difference between centralization and decentralization in an organization?

Centralization concentrates decision-making at the top, while decentralization distributes it across levels. (C) Signup and view all the answers

Which of the following is LEAST likely to be a benefit of effective staffing within an organization?

Reduced competitiveness in the market (A) Signup and view all the answers

Which of the following scenarios BEST exemplifies an internal recruitment method?

Promoting a current employee to a higher-level position (D) Signup and view all the answers

Which of the following is the MOST accurate assessment of management's current status as a profession?

Management is evolving towards professional status, although it still needs stricter entry requirements and universally accepted ethical standards. (B) Signup and view all the answers

Which management level is MOST directly involved in translating broad company policies into actionable tasks and motivating the workforce?

Middle-level management (D) Signup and view all the answers

A company decides to hire candidates by visiting various college campuses and conducting interviews. This approach is best described as:

Campus recruitment (D) Signup and view all the answers

Which of the following selection tests is designed to measure a candidate's potential to learn and perform specific job-related tasks?

Aptitude test (C) Signup and view all the answers

In an organization experiencing rapid growth and increasing specialization, what becomes the MOST critical function of management?

Enhancing coordination across various departments and functions. (A) Signup and view all the answers

Which characteristic of the Principles of Management emphasizes the need to adapt managerial strategies to suit different situations?

Contingency (B) Signup and view all the answers

A company invests in training programs for its employees. Apart from improving skills, what is another significant benefit of training?

Boosting employee attitude and motivation (C) Signup and view all the answers

According to Fayol's principles, what is the MOST important consideration when determining employee compensation?

Fairness, skills, education and the company's financial capacity. (C) Signup and view all the answers

Which of the following activities is LEAST associated with the directing function of management?

Defining organizational structure (A) Signup and view all the answers

According to Maslow's hierarchy of needs, which of the following needs would typically be satisfied by offering employees good relationships and a sense of belonging within the workplace?

Affiliation/Friendship Needs (B) Signup and view all the answers

What is the PRIMARY purpose of the 'esprit de corps' principle in management?

To promote a sense of teamwork and unity among employees. (B) Signup and view all the answers

What type of incentive primarily focuses on providing employees with opportunities for career advancement and skill development?

Non-monetary Incentives (D) Signup and view all the answers

Which of Taylor's principles directly contrasts with traditional 'rule of thumb' methods in management?

Science, not rule of thumb (A) Signup and view all the answers

In the context of Taylor's scientific management, what is the MAIN objective of 'functional foremanship'?

To specialize supervisory roles, separating planning from execution. (D) Signup and view all the answers

Which communication barrier arises when information overload, complex procedures, or rigid rules impede effective message transmission and understanding?

Organizational barriers (C) Signup and view all the answers

Which of Taylor's techniques involves determining the standard time required to complete a task?

Time study (D) Signup and view all the answers

In which leadership style does the leader involve subordinates in the decision-making process, seeking their input and considering their viewpoints?

Democratic (C) Signup and view all the answers

How does the 'differential piece rate system' incentivize workers, according to Taylor?

By offering higher wages to more productive workers. (C) Signup and view all the answers

What is the MOST accurate way to describe the business environment?

The sum of all external forces that affect a business. (C) Signup and view all the answers

How does understanding the business environment PRIMARILY assist an organization?

By identifying opportunities and threats, and facilitating strategic adaptation. (D) Signup and view all the answers

Which element of the business environment includes factors like interest rates and inflation?

Economic environment (A) Signup and view all the answers

What is the PRIMARY role of 'premises' in the planning process?

To establish assumptions about the future environment. (D) Signup and view all the answers

What is a POTENTIAL disadvantage of planning?

It can lead to rigidity and reduced creativity. (A) Signup and view all the answers

Management

Interrelated functions by a manager to achieve goals effectively and efficiently.

Effectiveness

Accomplishing goals and results effectively.