Free Principles of Management MCQs with Answers
138 Principles of Management MCQs from Management Sciences, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Management principles explain how organisations set objectives and coordinate people and resources to achieve them. Coverage includes planning, organising, staffing, directing, coordinating and controlling, along with authority, responsibility, delegation, span of control and the levels of management. These functions are related but not interchangeable, especially planning and controlling.
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138 questions · page 2 of 7
- A. A policy guides decisions, while a procedure specifies steps
- B. A policy specifies steps, while a procedure states broad goals
- C. A policy assigns jobs, while a procedure sets authority limits
- D. A policy measures results, while a procedure motivates staff
Explanation: A policy provides a general boundary or guide for making decisions. A procedure is a prescribed sequence of steps for handling a recurring…
Correct answer: A policy guides decisions, while a procedure specifies steps- A. To group related activities under suitable units
- B. To remove the need for managerial supervision
- C. To transfer all authority to lower employees
- D. To replace organisational objectives with procedures
Explanation: Departmentalisation groups related jobs and activities into units such as marketing, finance or production.
Correct answer: To group related activities under suitable units- A. Providing training for the employee's assigned role
- B. Setting the organisation's long-term mission
- C. Comparing output with a performance standard
- D. Issuing instructions about daily work
Explanation: Staffing includes developing and maintaining the workforce, including training and placement.
Correct answer: Providing training for the employee's assigned role- A. Enough authority to discharge assigned responsibility
- B. More responsibility than authority to ensure caution
- C. Authority without responsibility to preserve flexibility
- D. Equal authority with every manager in the organisation
Explanation: A person cannot reasonably be held responsible for results without having sufficient authority to obtain resources and direct relevant…
Correct answer: Enough authority to discharge assigned responsibility- A. More managerial levels and closer supervision
- B. Fewer managerial levels and wider supervision
- C. No need for delegation between managers
- D. Complete removal of communication problems
Explanation: When each manager supervises relatively few subordinates, more hierarchical levels may be needed.
Correct answer: More managerial levels and closer supervision- A. Supervising the daily work of operating employees
- B. Formulating the organisation's overall mission
- C. Approving national economic policy
- D. Designing the ownership structure of the business
Explanation: First-line managers directly supervise nonmanagerial employees and oversee routine operations.
Correct answer: Supervising the daily work of operating employees- A. It helps managers correct future performance
- B. It establishes ownership of the organisation
- C. It replaces the need for performance standards
- D. It guarantees that employees accept every decision
Explanation: Information about actual results compared with standards enables managers to take corrective action in a later period or activity.
Correct answer: It helps managers correct future performance- A. Interdependent and directed toward a common objective
- B. Performed by one person without shared resources
- C. Unrelated and judged by separate objectives
- D. Completed before organisational planning begins
Explanation: Coordination integrates interdependent efforts so that departments and individuals work toward common organisational objectives.
Correct answer: Interdependent and directed toward a common objective- A. Unity of direction
- B. Division of work
- C. Centralisation
- D. Order
Explanation: Unity of direction means that activities sharing one objective should have one plan and one head.
Correct answer: Unity of direction- A. It continuously combines resources through related functions
- B. It is limited to issuing orders to subordinate employees
- C. It concerns only financial decisions made by owners
- D. It ends once organisational objectives are initially stated
Explanation: Management is a continuous process that uses planning, organising, staffing, directing, coordinating and controlling to achieve…
Correct answer: It continuously combines resources through related functions- A. Standing plan
- B. Single-use plan
- C. Contingency plan
- D. Strategic plan
Explanation: A single-use plan is created for a specific activity or situation and ends when its objective is achieved.
Correct answer: Single-use plan- A. Policy
- B. Project
- C. Programme
- D. Budget
Explanation: A policy gives broad guidance for consistent decision-making in recurring situations.
Correct answer: Policy- A. Employees should report to several managers
- B. Specialisation improves efficiency
- C. Authority should remain at the top
- D. Workers should change jobs frequently
Explanation: Division of work means assigning specialised tasks so that employees develop skill and perform more efficiently.
Correct answer: Specialisation improves efficiency- A. Line authority
- B. Staff authority
- C. Functional authority
- D. Personal authority
Explanation: Staff authority allows specialists to advise and support line managers without directly commanding operating employees.
Correct answer: Staff authority- A. Distributed among lower departments
- B. Retained by higher management
- C. Delegated to outside consultants
- D. Shared equally by all employees
Explanation: Centralisation concentrates important decision-making power at higher organisational levels.
Correct answer: Retained by higher management- A. Written reporting relationships
- B. Official job descriptions
- C. Personal relationships among employees
- D. Formal disciplinary procedures
Explanation: An informal organisation develops naturally through friendships, communication patterns and social interaction among employees.
Correct answer: Personal relationships among employees- A. One management method suits every organisation
- B. Management practices should fit the situation
- C. Rules are more important than results
- D. Managers should avoid changing established methods
Explanation: The contingency approach states that an effective management practice depends on factors such as the environment, technology, task and…
Correct answer: Management practices should fit the situation- A. Setting objectives jointly and reviewing performance
- B. Avoiding measurable performance standards
- C. Allowing managers to work without targets
- D. Replacing planning with employee training
Explanation: Management by objectives links agreed goals with performance review and evaluation.
Correct answer: Setting objectives jointly and reviewing performance- A. Discipline
- B. Equity
- C. Initiative
- D. Stability of tenure
Explanation: The principle of discipline concerns obedience, respect for rules and observance of agreements within the organisation.
Correct answer: Discipline- A. Budget
- B. Policy
- C. Procedure
- D. Organisation chart
Explanation: A budget is a numerical plan that expresses expected income, expenditure or resource use for a specified period.
Correct answer: Budget