Sri Lanka Institute of Information Technology BA Honours Final Exam - BM1012 Principles of Management PDF

# Sri Lanka Institute of Information Technology ## Bachelor of Business Administration Honours ### Final Examination #### Year 01, Semester 01 ## BM1012 - Principles of Management - **Duration**: 2 Hours - **Date**: November 2024 ### Instructions to Candidates: - All questions are compulsory....

# Sri Lanka Institute of Information Technology ## Bachelor of Business Administration Honours ### Final Examination #### Year 01, Semester 01 ## BM1012 - Principles of Management - **Duration**: 2 Hours - **Date**: November 2024 ### Instructions to Candidates: - All questions are compulsory. (VERSION B) - This paper contains FOUR (04) questions on NINE (09) pages including the cover page. - The entire exam is marked out of 100 marks, contributing to 50% of the final grade. - Use the given booklet to provide answers. - Electronic devices capable of storing and retrieving text, including mobile phones are not allowed. ## Question 1 - Multiple Choice Questions (40 marks) 1. Which one of the following is a common myth about the study of management? - Management principles are universal and applicable in every situation. - Management is just common sense. - Management requires no formal education. - Management is solely about making profits. 2. All organizations have that define(s) the organization's purpose and reason for existing. - goals - limits - rules - structure 3. Supervisor is another name for which one of the following? - first-line manager - team leader - middle manager - top manager 4. Which one of the following is an important job responsibility for a middle manager? - translating goals defined by top managers into action - defining the organization's long-term goals - helping top managers define goals. - performing tasks that are not related to long-term goals 5. Which of the following is an example of an informational role in management? - Serving as a spokesperson to communicate with external parties - Negotiating contracts with suppliers - Developing policies for employee conduct - Resolving conflicts between team members 6. Falling interest rates is an example of a particular kind of external forces that causes a company to make an organizational change. What is that kind of external force? - marketplace competition forces - government laws and regulations - labor market forces - economic forces 7. Which one of the following is an external force that could cause a company to make an organizational change? - an organization-wide restructuring - a booming economy - the naming of a new CEO - A widening span of control for managers. 8. Which of the following best describes the figurehead role of a manager? - Making critical decisions about organizational strategy - Analyzing and disseminating internal performance data. - Representing the organization in ceremonial and symbolic activities - Negotiating and managing conflicts with external parties 9. Formal planning typically leads to which one of the following? - lower productivity - higher profits - higher sales, but lower profits - tension between different management levels 10. Which one of the following pairs includes items that are NOT basic elements of organizational design? - work specialization, span of control - centralization, decentralization - chain of command, line authority - departmentalization, formalization 11. Which statement accurately defines work specialization? - It is the degree to which tasks are grouped together. - Jobs are ranked relative only to their worth or value to the businesses. - Individual employees specialize in doing part of an activity rather than the entire activity. - Work specialization clarifies who reports to whom. 12. departmentalization is based on territory or the physical location of employees or customers. - Functional - Product - Matrix - Geographic 13. The line of authority that extends from the upper levels of management to the lowest levels of the organization is termed the - chain of command - chain of responsibility - unity of command - staff authority 14. prevents a single employee from getting conflicting orders from two different superiors. - Line authority - Staff authority - Unity of command - Chain of command 15. In today's decentralized business world, the most important strategic decisions. - middle managers make - top managers still primarily make - lower-level managers make - nonmanagerial employees make 16. Maslow's theory is a hierarchy because, - all needs are equal  - all needs are important - needs are never truly satisfied - needs are satisfied sequentially 17. An individual who wants to buy a home in a neighborhood with a low crime rate is satisfying the need of .......? - esteem - physiological - self-actualization - safety 18. According to Herzberg's motivation-hygiene theory, are associated with job satisfaction. - rewards - punishments - motivators - hygiene factors 19. Equity theory is primarily based on ideas about which of the following? - objectivity - the importance of work  - automation - fairness 20. Which leadership style tends to centralize authority and make unilateral decisions? - autocratic style - cultural style - democratic style - laissez-faire style 21. Jared's boss encourages employees to participate in the decision-making process but does not give them complete freedom to do as they like. What kind of leadership style she has? - democratic - monarchial - autocratic - laissez-faire 22. Monica's boss allows her to make any decision she thinks is important on the spot without consulting anyone. The style of leadership demonstrated by Monica's boss is - laissez-faire - autocratic - democratic - hands-on 23. Which one of the following is an accurate statement about transformational leaders? - They are poor motivators. - Their organizations suffer from high turnover rates. - Their organizations are not productive. - Their organizations are highly productive. 24. According to the Contingency Theory of Leadership, which of the following best describes how a leader's effectiveness is determined? - The leader's effectiveness depends on the match between their leadership style and the specific demands of the situation. - The leader's effectiveness is solely based on their personality traits and skills. - The leader's effectiveness is determined by the number of direct reports they manage. -# The leader's effectiveness is based exclusively on the organizational structure and the tasks performed by the team. 25. Trait Theory of Leadership primarily focuses on which of the following aspects to determine effective leadership? - The leader's inherent qualities and characteristics that are believed to contribute to effective leadership. - The leader's ability to adapt their style to different situations and followers. - The leader's focus is on achieving organizational goals through teamwork and collaboration. - The leader's reliance on reward and punishment to manage their team. 26. Which of the following is NOT typically considered one of the major functions played by a leader? - Setting vision and goals for the organization - Planning and organizing resources - Motivating and inspiring team members - Maintaining control through strict supervision 27. According to the ERG Theory, which of the following is NOT one of the three categories of needs that individuals seek to satisfy? - Existence Needs - Relatedness Needs - Achievement Needs - Growth Needs 28. According to David McClelland's Three Needs Theory, which need is characterized by a desire to influence, control, or have authority over others? - Need for Achievement - Need for Power - Need for Affiliation - Need for Recognition 29. Which of the following is an example of a weakness in a SWOT analysis? - High market share - Strong brand reputation - Expanding product line - Limited financial resources 30. In Management by Objectives (MBO), which of the following is a key step in the process? - Developing specific and measurable objectives - Setting broad, long-term goals - Ensuring goals are vague and open-ended - Allowing for no regular progress reviews 31. Which of the following is likely to hinder the planning process by causing uncertainty and delays? - Strong leadership support - Detailed and realistic forecasts - Effective stakeholder engagement - Frequent changes in organizational priorities 32. Which of the following is a primary benefit of effective planning? - Enhanced ability to anticipate and manage risks - Increased likelihood of missed deadlines - Reduced organizational alignment - Decreased efficiency in resource allocation 33. Which type of departmentalization is most effective for organizations that need to cater to specific regional markets with different local requirements? - Functional Departmentalization - Product Departmentalization - Geographic Departmentalization - Customer Departmentalization 34. Which of the following factors typically necessitates a narrower span of control? - High complexity and need for close supervision - High level of employee expertise and independence - Simple and routine tasks - High employee morale and motivation 35. What is a common challenge associated with implementing a matrix organizational structure? - Overlapping authority and potential conflicts between managers - Increased specialization within departments - Simplified communication channels - Clear, unambiguous reporting lines 36. In a tall organizational structure, which of the following is typically observed? - Employees have a broader span of control and more autonomy - Decision-making is more decentralized and flexible - There are many levels of management and a narrow span of control - Communication tends to be less formal and more direct 37. Which of the following is a common barrier to effective delegation? - Clear communication of expectations and goals - Trust in employees' capabilities - Providing adequate resources and support - Micromanaging and not allowing autonomy 38. Which of the following best illustrates a decisional role in management? - Making decisions on resource allocation and conflict resolution - Acting as a liaison between the organization and external stakeholders - Disseminating information to team members and other departments - Motivating and leading employees to achieve organizational goals 39. Which of the following is an example of an interpersonal role for a manager? - Analyzing market trends to guide strategic decisions - Collecting and disseminating information about organizational performance - Developing a new product line based on customer feedback - Building and maintaining relationships with key stakeholders 40. Which type of manager is responsible for coordinating and overseeing the work of other managers within specific departments or divisions? - Top Manager - Middle Manager - First-Line Manager - Team Leader ## Question 2: Planning and Organizing (20 Marks) 1. Explain the concept of 'span of control' and differentiate between a wide span of control and a narrow span of control. (05 marks) 2. Distinguish between a 'vision' and a 'mission' in an organization. (05 marks) 3. Identify the macro forces which affect a selected company of your choice. (10 marks) ## Question 3: Leadership (20 Marks) 1. Distinguish between a manager and a leader. (05 marks) 2. Describe Fiedler's Contingency Theory and its relevance to leadership. (05 marks) 3. Briefly describe charismatic and transformational leaders. (10 marks) ## Question 4: Motivation (20 marks) Compare and contrast how Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory address the issue of employee motivation. Which theory do you find more practical for managers to apply in a real‑world setting, and why? Support your argument with examples. ## END OF THE PAPER