Free Principles of Management MCQs with Answers

• A. Planning
• B. Organising
• C. Directing
• D. Controlling

Explanation: Planning establishes objectives in advance and selects suitable courses of action.

• A. Setting sales targets
• B. Grouping related jobs into departments
• C. Comparing results with standards
• D. Motivating employees to work

Explanation: Organising involves dividing work, grouping related activities and assigning resources.

• A. Staffing
• B. Coordinating
• C. Controlling
• D. Planning

Explanation: Staffing ensures that the organisation obtains and places suitable people in available positions.

• A. Directing
• B. Organising
• C. Staffing
• D. Budgeting

Explanation: Directing guides employees through leadership, communication, supervision and motivation.

• A. To establish the organisation's mission
• B. To compare actual performance with planned standards
• C. To recruit employees for vacant posts
• D. To divide work among departments

Explanation: Controlling measures actual performance, compares it with standards and supports corrective action.

• A. The manager transfers ultimate accountability
• B. The subordinate receives authority to perform the task
• C. The manager gives up all responsibility for results
• D. The subordinate becomes equal to the manager

Explanation: Delegation gives a subordinate sufficient authority to perform an assigned duty.

• A. The number of organisational objectives
• B. The number of subordinates directly supervised by a manager
• C. The number of departments in an organisation
• D. The length of the annual planning period

Explanation: Span of control is the number of employees who report directly to one manager.

• A. Top management
• B. Middle management
• C. First line management
• D. The board of shareholders

Explanation: Middle managers interpret broad strategies and develop plans for departments or divisions.

• A. It integrates individual efforts toward common objectives
• B. It replaces the need for organisational planning
• C. It gives every employee identical authority
• D. It measures only the financial performance of a firm

Explanation: Coordination harmonises the efforts of individuals and departments so that they support shared objectives.

• A. Authority is the duty to perform, while responsibility is the right to command
• B. Authority is the right to give orders, while responsibility is the duty to perform
• C. Authority and responsibility are identical in every situation
• D. Authority belongs only to employees, while responsibility belongs only to managers

Explanation: Authority is the formal right to make decisions and issue orders, while responsibility is the obligation to carry out assigned duties.

• A. Planning, organising, staffing, directing and controlling
• B. Staffing, controlling, planning, directing and organising
• C. Directing, planning, controlling, staffing and organising
• D. Organising, directing, controlling, planning and staffing

Explanation: Planning normally comes first because objectives and courses of action are decided before resources are arranged.

• A. Top-level management
• B. Middle-level management
• C. First-line management
• D. Operational employees

Explanation: Top-level managers set broad objectives, policies and strategic direction for the organisation.

• A. It distributes decision-making to lower levels
• B. It removes the manager's final accountability
• C. It eliminates the need for coordination
• D. It transfers ownership of the organisation

Explanation: Delegation allows subordinates to make decisions within an assigned area and can speed up work.

• A. Answerable for the results of assigned work
• B. Free to ignore organisational procedures
• C. Entitled to all organisational resources
• D. Required to perform every task personally

Explanation: Accountability is the obligation to explain and accept responsibility for performance and results.

• A. Receive orders from one immediate superior
• B. Work in only one department permanently
• C. Report directly to the chief executive
• D. Follow every manager in the organisation

Explanation: Unity of command reduces conflicting instructions by giving each employee one immediate superior.

• A. Wide span of control
• B. Narrow span of control
• C. Tall chain of command
• D. Centralised authority structure

Explanation: A wide span of control means that one manager directly supervises many subordinates.

• A. Branch managers make approved local operating decisions
• B. Only the chief executive approves routine purchases
• C. All departments follow decisions made at headquarters
• D. Supervisors refer every issue to the board

Explanation: Decentralisation places some decision authority closer to the point where work is performed.

• A. Scalar chain
• B. Informal network
• C. Functional grouping
• D. Management by objectives

Explanation: The scalar chain is the formal hierarchy through which authority flows from the top to lower levels.

• A. Planning and controlling
• B. Staffing and directing
• C. Organising and recruitment
• D. Delegation and authority

Explanation: The sales target is established during planning, while comparing actual performance with it is part of controlling.

• A. Activities with one objective follow one plan and one leader
• B. Each worker receives orders from one immediate superior
• C. Managers should keep all decisions at headquarters
• D. Employees should be paid according to seniority

Explanation: Unity of direction means that activities sharing a common objective are guided by one plan and one head.