Management Skills Test


Which motivation strategy is characterized by a high emphasis on performance and a low emphasis on satisfaction?
a. Indulging
b. Imposing
c. Integrating
d. Ignoring
Which of the following is neither a cash in-flow nor cash out-flow?
a. Rents received
b. Payments from debtors
c. Payments to creditors
d. Mortgage repayments
e. Depreciation
Which of the following best completes the sentence: "Repetitive decisions are known as _________ ."
a. operational decisions
b. programmed decisions
c. routine decisions
d. standard decisions
Mary Parker Follett defined management as: "the art of getting things done through __________."
a. money
b. influence
c. coercion
d. people
A Mission Statement: ____________.
a. provides information as to what the organization is trying to achieve.
b. outlines a task to be undertaken by a team.
c. summarizes the outcome of a project.
d. sets out the high-level structure of the organization.
Self-regulation, one of the characteristics of an effective leader, is defined as the ability to __________ .
a. understand one's own reactions and the effect of one's behavior on other team members.
b. control oneself and to reflect in complex situations.
c. maintain an ongoing commitment to a goal in often turbulent and chaotic times.
d. understand the complexities of other people's situations.
e. maintain teamwork in situations where uncertainty can isolate and drive people apart.
In which context are the terms Unfreezing and Refreezing used?
a. Management of Change
b. Management of Order
c. Dimensions of Order
d. Resistance to Change
e. Dimensions of Control
A manager is seeking to introduce new working conditions. Which of the following is the best way to gain employees' cooperation?
a. Send an email to the entire staff informing them of the new conditions.
b. Post the new instructions on a notice board.
c. Organize a briefing for the entire staff.
d. Discuss the proposals with staff representatives.

Which of the following characterise a 'differentiation'-based business model?
1.High sales volume
2.High profit margin
3.Well-regarded brand
4.High-quality manufacture
a. 1,2 and 4
b. 2, 3 and 4
c. 1, 3 and 4
d. 1, 2 and 3
e. All of the above
In which of the following circumstances is the directive method of introducing planned change inappropriate?
a. When the manager enjoys sufficient position power (e.g.: he/she has significant control over rewards and punishments).
b. When the employees are achievement-motivated and willing to accept the change.
c. If organization communication pattern is 'star-type', which favors the change agent as a leader over his subordinates.
d. When the driving forces far outweigh the restraining forces.
If the financial year starts in January, the Fixed Budget will be prepared ___________.
a. a month or two earlier
b. in January
c. at the end of that year
d. as and when the Financial Manager decides
Which of the following statements is false?
a. Decision-making should be based on evidence.
b. Decision-making should take into account a range of factors.
c. Decision-making should involve key stakeholders.
d. Decision-making should be rapid.
Which of the following types of costs is not typically 'variable':
a. Cost of raw materials
b. Cost of marketing
c. Cost of lighting
d. Cost of transportation
What is the main advantage of employing staff on a temporary basis?
a. Greater flexibility in responding to customer requirements
b. Improved productivity
c. Enhanced customer satisfaction
d. Lower staff turnover
Which of the following reveals whether or not a company is earning a profit?��
a. Income statement
b. Statement of cash reconciliation
c. Balance statement
d. Statement of cash flows
e. Statement of owners' equity
Which of the following can be used as a term for Supervisor?
a. Area manager
b. Specialty manager
c. Front-line manager
d. Technical manager
Which of the following represents the implementation of a 'Just-in-Time' production approach?
a. The installation of a new computer system.
b. Receiving materials as and when they are required for production.
c. Having a large supply of materials ready to be processed.
d. Implementing process controls to improve quality.
e. Introducing monitoring tools to assess efficiency
There are some important measures which a company can use to determine the effects of training. Which of the following is not one of them?
a. Production
b. Changes in specific results, such as turnover
c. Job applications
d. Profit of the company
e. Overall growth
The 'Principle of Order' applies to ______________.
a. one head and one plan
b. right person in right job
c. issuing instructions
d. justice and kindness
Which of the following is not a financial statement?
a. Statement of Financial Loss
b. Income Statement
c. Balance Sheet
d. Statement of Retained Earnings
e. Statement of Cash Flow
Which one of the following is another term for the Scalar Principle?
a. Span of Control
b. Unity of Direction
c. Unity of Command
d. Chain of Command
e. Personal ability
If a subordinate is having difficulty carrying out a delegated task, what should a manager do?
a. Take over the task for the employee so he or she will not become demoralized.
b. Be available as a role model and resource in identifying alternative solutions.
c. Give the employee a written warning.
d. Give the employee a second delegated task so he or she has another opportunity to prove his worth.
Which of the following constitutes a fixed asset in a business?
a. Creditors
b. Debtors
c. Stock
d. Fixtures and fittings
What is a 'stakeholder map'?
a. A means of plotting the location of customers.
b. A means of identifying all those affected by the organization.
c. A means of targeting your intended market.
d. A means of predicting sales growth.
Which one of the following best completes the sentence: "Division of work promotes ____________."
a. Effective management
b. Efficiency
c. Experience
d. Equality
Which of the listed management functions involves creating an environment where everyone works together to achieve the common goals of the organization?
a. Planning
b. Controlling
c. Leading
d. Recruiting
e. Organizing
Which one of the following best completes the sentence:
The principle of 'Unity of Command' is concerned with __________.
a. activities
b. persons
c. remuneration
d. respect of authority
If a manager is attempting to establish motivational goals for his employees, which of the following should he do?
a. Involve subordinates in the goal-setting process
b. Set goals that are stated in very general terms
c. Set conflicting goals so employees can accomplish one goal or another as they choose
d. Set goals that are easy to achieve
What does the term 'Unity of Control' stand for under Principles of Organizing?
a. That there should be a limit to the number of persons that can be supervised effectively by one boss.
b. That each subordinate should have only one superior whose orders he has to obey.
c. That the line of authority from the chief executive at the top to the first line supervisor at the bottom must be clearly defined.
d. That the activities of the enterprise should be divided according to functions and assigned to persons according to their specialization.
In the 'situational' leadership style, the manager is concerned with ___________.
a. task accomplishment
b. human relations and teamwork
c. giving free rein to his/her staff
d. prompt, orderly performance
e. growth for staff and himself/herself
Long-term budgets are useful for those industries where the gestation period is long. Which of the following is not relevant to the above statement?
a. Machinery
b. Electricity
c. Textile
d. Engineering
In which order would the following strategic planning activities take place?

1.Evaluating performance
2.Devising strategy
3.Documenting plans
4.Executing plans
a. 2, 4, 3, 1
b. 4, 3, 1, 2
c. 3, 2, 1, 4
d. 4, 1, 3, 2
e. 2, 3, 4, 1
Why do businesses use cash-flow forecasts as part of the internal planning process?
a. To estimate the value of their assets at the year end.
b. To assess potential profit or loss.
c. To allocate the marketing budget.
d. To predict future borrowing requirements.
Which of the following is an external source of recruitment?
a. Promotion from within
b. Transfer of employees
c. Unsolicited applicants
d. Staff returning from maternity leave
An employee's desire and commitment to perform that is manifested in job related effort defines his/her _____________ .
a. aptitude
b. motivation
c. performance
d. ability
A tool for evaluating organizational performance across the full range of a business is known as a 'balanced __________'.
a. scorecard.
b. ledger.
c. matrix.
d. healthcheck.
The degree to which a company owns its upstream suppliers and its downstream buyers is known as _____________.
a. monopolization
b. vertical integration
c. specialization
d. diversification
Which term refers to a document that sets out an organization's 'rules' regarding a particular issue?
a. Process
b. Policy
c. Procedure
d. Practice
e. Paradigm
Which of the following is correctly ordered as a Management Process?
a. Staffing, Planning, Organizing, Directing, Co-ordinating, Controlling
b. Planning, Staffing, Organizing, Directing, Co-ordinating, Controlling
c. Planning, Organizing, Staffing, Directing, Co-ordinating, Controlling
d. Planning, Organizing, Staffing, Directing, Controlling, Co-ordinating
Which of the following reveals whether or not a company is earning a profit?  
a. Income statement
b. Statement of cash reconciliation
c. Balance statement
d. Statement of cash flows
e. Statement of owners' equity
Which of the following is not a feature of a good organizational structure?
a. Clear line of authority
b. Adequate delegation of authority
c. Proper span of control
d. More managerial levels
e. Simple and flexible structure
Operations can be classified according to their volume and variety of production, as well as the degree of variation and visibility. Which of the following operations would be classified as high-volume, low-variety?  
a. A cashier's
b. A carpenter's
c. A family doctor's
d. A front-office bank's
Why does a business analyze its financial accounts to assess its solvency?
a. To check whether it can meet its current financial obligations.
b. To monitor depreciation.
c. To confirm customers are making prompt payments.
d. To assess the efficiency of the manufacturing process.
Which one of the following is not the purpose of Performance Appraisal?
a. It can serve as a basis for job change or promotion.
b. It serves as a guide for formulating a suitable training and development program.
c. It provides the rational foundation for the payment of piece work, wages, bonuses, etc.
d. It makes the worker committed and loyal to the organization.
e. It serves as feedback to the employee.
Which of the following are not legitimate risk management options?

1.Terminate
2.Turn
3.Tolerate
4.Treat
5.Test
6.Transfer.
a. 1 and 4
b. 2 and 3
c. 5 and 6
d. 2 and 5
e. 1 and 6
f. 3 and 4
Which of the following would help a company manufacture products to the standard required by the customer?
a. Performance appraisal
b. Stock control
c. Quality control
d. Strategic planning approach
In decentralization, subordinates __________ .
a. enjoy significant powers
b. are permitted limited powers
c. Do not get any powers
d. work unsupervised
e. are no longer managed
Which of the following is not included in calculating working capital?
a. Stock of work in progress
b. Plant
c. Debtors
d. Creditors
Which two factors are combined to evaluate the size of risks facing an organization?
a. Probability and Scale.
b. Impact and Importance
c. Probability and Impact
d. Scale and Importance.
Which of the following is generally an inappropriate reason for delegation?
a. It relieves the manager of his/her heavy workload.
b. It frees the manager to address more complex, higher-level needs.
c. Someone else is better qualified to do the task that needs to be done.
d. It helps create a formal organizational structure.
A member of the Board of Directors of a company who is not an employee of the company is called a _____________.
a. consultant
b. inside director
c. non-executive director
d. corporate officer
Which of the following statements is not likely to characterize a planning approach to strategy development?
a. Strategies are the outcome of rational, sequential, and methodical practices
b. Definite and precise objectives are set
c. Strategies are developed by negotiation and bargaining between interest groups
d. Defined procedures for the implementation and achievement of strategic objectives are developed
e. None of the above
A tool to plot the duration of activities in a project and its dependencies is named after:
a. Robert George
b. Toby Williams
c. Henry Gantt
d. Samuel Edwards
Which of the following is not a key function of leadership?
a. Enthusing and inspiring staff.
b. Setting strategic direction.
c. Being accountable for performance.
d. Closely monitoring the execution of tasks.
If a company's productivity is rising, it means ___________ .
a. costs are rising at a faster rate than output.
b. output is rising at a faster rate than costs.
c. output and costs are increasing at the same rate.
d. output and costs are decreasing at the same rate.

Which ratio shows an organization's effectiveness in minimizing production costs?
a. Gross profit ratio
b. Current ratio
c. Efficiency ratio
d. Selling ratio
Which item appears in both the balance sheet and the profit and loss account?
a. Suppliers
b. Heating
c. Sales
d. Closing stock

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