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 4 of 7
- A. Apply knowledge with judgment in varied situations
- B. Follow fixed rules in every organisational situation
- C. Avoid personal judgment when directing employees
- D. Use financial records as the main decision guide
Explanation: Management is an art because managers apply general knowledge, judgment and experience to particular situations.
Correct answer: Apply knowledge with judgment in varied situations- A. They apply to different types and sizes of organisations
- B. They apply only to profit-making business organisations
- C. They apply only when an organisation has many employees
- D. They apply only to public sector administrative offices
Explanation: Management principles can be applied in business firms, government departments, hospitals, schools and nonprofit organisations.
Correct answer: They apply to different types and sizes of organisations- A. An assumption about future conditions affecting plans
- B. A final report comparing actual and planned results
- C. A list of employees assigned to each department
- D. A detailed record of completed organisational activities
Explanation: Planning premises are assumptions about future conditions such as markets, resources, technology or government policy.
Correct answer: An assumption about future conditions affecting plans- A. Significant deviations from established standards
- B. Every minor activity performed by each employee
- C. Only decisions made by senior executives
- D. Routine work that fully meets performance standards
Explanation: Management by exception directs managerial attention to important deviations from standards or expected results.
Correct answer: Significant deviations from established standards- A. Feedforward control
- B. Concurrent control
- C. Feedback control
- D. Post-action control
Explanation: Feedforward control operates before an activity begins and seeks to prevent expected problems in advance.
Correct answer: Feedforward control- A. Concurrent control
- B. Feedforward control
- C. Feedback control
- D. Strategic planning
Explanation: Concurrent control takes place while an activity is in progress, allowing corrective action before the work is completed.
Correct answer: Concurrent control- A. Offers several distinct products requiring separate attention
- B. Has employees performing only one specialised activity
- C. Operates from a single location with identical customers
- D. Uses one process for every product and service
Explanation: Product departmentalisation groups activities around separate products or product lines.
Correct answer: Offers several distinct products requiring separate attention- A. Authority comes from a formal position, while power is broader
- B. Authority is personal influence, while power comes only from rank
- C. Authority and power always have exactly the same source
- D. Authority belongs to subordinates, while power belongs to managers
Explanation: Authority is the formal and legitimate right to make decisions or issue orders because of an organisational position.
Correct answer: Authority comes from a formal position, while power is broader- A. Matrix structure
- B. Simple line structure
- C. Pure functional structure
- D. Single-purpose committee
Explanation: A matrix structure combines functional and project or product authority, so an employee may report to two managers.
Correct answer: Matrix structure- A. Operational plan
- B. Strategic plan
- C. Contingency plan
- D. Single-use plan
Explanation: An operational plan specifies short-term actions, schedules and resources needed for routine organisational work.
Correct answer: Operational plan- A. It seeks to achieve defined organisational results
- B. It limits decisions to senior managers
- C. It focuses mainly on employee supervision
- D. It replaces organisational rules with personal judgment
Explanation: Management is goal-oriented because its activities are directed toward achieving specified organisational objectives.
Correct answer: It seeks to achieve defined organisational results- A. Planning alternative courses of action
- B. Issuing daily instructions to employees
- C. Recording completed financial transactions
- D. Checking attendance after work begins
Explanation: Planning examines expected conditions and prepares suitable courses of action before work is undertaken.
Correct answer: Planning alternative courses of action- A. Preliminary control
- B. Concurrent control
- C. Feedback control
- D. Preventive control
Explanation: Feedback control measures completed results and uses the information to improve future performance.
Correct answer: Feedback control- A. Authority and responsibility
- B. Output and input
- C. Objectives and policies
- D. Planning and coordination
Explanation: Productivity measures how efficiently inputs such as labour, time, and materials are converted into outputs.
Correct answer: Output and input- A. It requires specialised knowledge and ethical standards
- B. It depends only on personal experience
- C. It is limited to government organisations
- D. It requires membership in one universal licensing body
Explanation: Management has features of a profession because it uses specialised knowledge, formal education, and accepted ethical standards.
Correct answer: It requires specialised knowledge and ethical standards- A. Offers one product in one local market
- B. Operates across regions with different customer needs
- C. Groups employees only according to their professions
- D. Organises work around temporary construction projects
Explanation: Geographical departmentalisation groups activities according to territories or regions.
Correct answer: Operates across regions with different customer needs- A. Highly routine work with similar tasks
- B. Subordinates who need close guidance
- C. Standardised procedures for every activity
- D. Strong communication systems throughout the unit
Explanation: A narrow span is more suitable when employees require frequent guidance or their work is complex and varied.
Correct answer: Subordinates who need close guidance- A. Authority increases automatically for every subordinate
- B. Accountability for results remains with the assigning manager
- C. Delegation removes the manager's duty to monitor results
- D. Responsibility becomes unnecessary once authority is transferred
Explanation: A manager may delegate authority and assign responsibility, but remains accountable for the final results within the organisation.
Correct answer: Accountability for results remains with the assigning manager- A. Top management
- B. Middle management
- C. First-line management
- D. The board of directors
Explanation: First-line managers translate operating plans into specific duties, schedules, and instructions for employees.
Correct answer: First-line management- A. A manager changes targets without reviewing results
- B. A manager compares results with standards and takes corrective action
- C. A manager allows performance to continue without measurement
- D. A manager sets standards but never communicates them
Explanation: Effective control requires standards, measurement of actual performance, comparison, and corrective action where necessary.
Correct answer: A manager compares results with standards and takes corrective action