MAGT 101: PRINCIPLES OF MANAGEMENT MIDTERM EXAM

SAMPLE MIDTERM EXAM

Name: …………………………………..………………………………………………………………….

QU ID: …………………………………………………..…………………………………………………………………………………………………..

o This exam paper has three (3) sections.

o You need to answer all questions.
o The first section has fifteen (15) True or False Questions of 7.5 marks total.
o The second section has fifteen (15) Multiple Choice Questions of 7.5 marks total.
o The third section has four (4) essay Questions of 10 marks total. (2.5 marks
each).

1. Write with a non-red pen. Do not write with a pencil or a red pen.
2. Write your name and QU Id number on the top of every page.
3. Please leave all your belongings in the front of the classroom.
4. Mobile phones must be switched off (not just in silent mode) and left in the front
with your belongings.
5. No communication devices are allowed to be used.
6. You may not communicate with anyone inside or outside the examination room
(other than your instructor and the examination invigilator) during the
examination.
7. Do not leave the examination room in the last ten minutes of the examination.
8. Please listen to the instructions read out by the examination invigilator and follow
them completely.

Signature: ……………………………………………
SECTION (1): Determine whether the following statement is True (A) or False (B).
1. In accordance with Mintzberg’s roles for managers, the role of human resources
allocation falls under the roles of the decision maker.

A. True B. False

2. An organizational culture’s strength depends upon how clear the organization’s

values and beliefs are.

A. True B. False

3. Most of the unstructured problems are solved by Lower level managers

A. True B. False

4. In formal planning goals are specific, written and shared with organizational
members.
A. True B. False
5. Technical skills become less important as a manager moves into higher levels of
management while conceptual skills are the opposite.

A. True B. False

6. The furnishing of an organization is an example of organization’s rituals.

A. True B. False

7. An example of a programmed decision include deciding which global markets offer

most potential.

A. True B. False

8. Organizations that don’t formally plan may be more likely to have multiple
departments performing the same task.

A. True B. False
SECTION (1): Determine whether the following statement is True (A) or False (B).

9. Organizing function includes determining what needs to be done, how it will be done,
who is to do it and any other actions involved in dealing with people allocation in
departments

A. True False

10. Media is a stakeholder for an organization

A. True B. False

11. An example of escalation of commitment would be a venture capitalist who might

continue to back and support a project, despite it showing signs of failure.

A. True B. False

12. Managers must be able to follow through with plans even if conditions change.

A. True B. False

13. The number of components in an organization defines its environmental uncertainty,

whereas the rate of change in these components defines the environmental
complexity.

A. True B. False

14. Linear thinking offers you a comprehensive perspective on how to approach a

problem. You put into use your intuition, emotion, insight, and creativity when
relaying information.

A. True B. False

15. Goals describe how resources are to be allocated and stablish activity schedules.

A. True B. False
SECTION 2 MULTIPLE CHOICE QUESTIONS: Choose the one alternative that answers the
question. Only one choice is acceptable.

16. Laptops manufacturer that increased that total number of units produced at the
same cost, but with many defects would be…
a) Concerned with inputs
b) Concerned with increasing efficiency
c) Concerned with increasing effectiveness
d) Concerned with increasing efficient and effective

17. Which of the following is/are an organizing function(s) of managers that can be
impacted by the culture?
a) Should tasks be done by individuals or teams?
b) What are the negative outcomes of exceeding the budget?
c) Both A and D
d) Should we care about increasing employee’s job satisfaction?

18. Which of the following statements about Bounded Rationality is incorrect?

a) Is the result of a decision maker’s limited ability to process information.
b) It assumes that individuals are naturally affected in their ability to analyze
potential solutions
c) It assumes that the decision-maker is able to fully understand the situation and the
implications of a decision.
d) Decision makers tend to make decisions that are good enough to address the
situation.

19. Which of the following can be a potential problem with MBO programs?
a) Assumes that top management knows best
b) It cannot be as effective in dynamic environments
c) Specificity is achieved as each manager applies his or her own set of
interpretations and biases
d) Objectives lose clarity and unity as they move from top to bottom
SECTION 2 MULTIPLE CHOICE QUESTIONS: Choose the one alternative that answers the
question. Only one choice is acceptable.

20. Which of the following is not an example of informational roles according to

Mintzberg?
a) Monitor
b) Resource allocator
c) Spokesperson
d) Disseminator

21. __________ are specific actions or behaviors expected of a manager.

a) Functions
b) Roles
c) Skills
d) None of the above

22. The company Colgate has a small number of customers, suppliers and retail
outlets. It has secured all the safety and environmental standards that doesn’t
need many changes. Colgate also has had a consistent and strong financial
performance over the years. What type of environment is Colgate operating in?
a) Stable and complex environment
b) Dynamic and simple environment
c) Stable and simple environment
d) Dynamic and complex environment

23. Which of the following statements is true about goal and plan selection?
a) Goal selection requires exclusive reliance on experienced judgement
b) Managers select goals and plans that are appropriate and feasible
c) Experienced judgement is not needed in goal and plan selection
d) Selection takes place immediately after generating alternate goals

24. Which of the following can be classified as characteristics of weak culture?

a) The values are widely shared within the organization
b) The culture sends contradictory message about what’s important
c) Employees can tell stories about company history/heroes
d) There is a connection between shared values and behaviors
SECTION 2 MULTIPLE CHOICE QUESTIONS: Choose the one alternative that answers the
question. Only one choice is acceptable.

25. If Noora meets three people from a company and they are all aggressive, she
will assume that the company has an aggressive culture and that most people
from that firm will also be aggressive. This would be an example of:
a) Availability bias
b) Representation bias
c) Anchoring effect
d) Overconfidence bias

26. “I was surprised to find our corporate strategic plan to be so broad and general”
said Aisha to his manager, who replied, “That is because, compared to tactical
planning, strategic planning
a) Focuses on the short term
b) Is never an ongoing activity
c) Focuses only on internal issues
d) Tends to involve much less detail

27. Which of the following is not a way to manage stakeholder relationships?

a) Identify the stakeholders of the organization
b) Make employees communicate with the stakeholders
c) Decide how critical each external stakeholder is to the organization
d) Determine the interests and concerns of the external stakeholders

28. The process of identifying the specific procedures and processes required at
lower levels an organization to focus on routine tasks is known as _________
planning.
a) Contingency
b) Strategic
c) Operational
d) Formal
SECTION 2 MULTIPLE CHOICE QUESTIONS: Choose the one alternative that answers the
question. Only one choice is acceptable.

29. _________ can effect on how and where people invest their money. For example
if a company is in the news, people are more likely to purchase stock in that
company.
a) Availability bias
b) Representation bias
c) Anchoring effect
d) Overconfidence bias

30. Which of the following is an example of risk condition in decision making.

a) Setting budget. A manager who has access to the resources and data needed to
make accurate forecast of the budget and the final cost of the project.
b) Entering a new market. A manager who has no date or resources to accurately
predict the success or failure of the venture, and must make a decision on their
judgement.
c) Investing in a new product line. A manager who has the access to the resources
and data needed to make an educated guess as to the success of the product, but
there is no guarantee of success.
d) None of the above.
SECTION 3: SHORT ESSAY QUESTION (2.5 POINTS EACH)
1. John, a store manager, asks his employees to organize the shelves as
quickly as possible to save time. They finish the task in record time, but
customers start complaining that items are hard to find because they are
placed in the wrong sections.
Based on this scenario, explain the difference between efficiency and
effectiveness. How could John improve both in his store management?
SECTION 3: SHORT ESSAY QUESTION (2.5 POINTS EACH)
2. An organization has a personality too. What is it called? Discuss its different
dimensions and provide an example for one of its dimensions.
SECTION 3: SHORT ESSAY QUESTION (2.5 POINTS EACH)
3. In a short essay, describe the conditions managers can face in Decision
Making.
SECTION 3: SHORT ESSAY QUESTION (2.5 POINTS EACH)
4. Explain the three contingency factors in planning.