CPM Management Principles 2 — Questions and Answers
Question 1: Which management theorist introduced the concept of 'Theory X and Theory Y' to describe manager assumptions about employee motivation?
- Frederick Taylor
- Douglas McGregor (Correct answer)
- Henri Fayol
- Elton Mayo
Correct answer: Douglas McGregor
Douglas McGregor proposed Theory X (workers dislike work) and Theory Y (workers are self-motivated) in his 1960 book 'The Human Side of Enterprise.'
Question 2: A manager who adjusts her leadership style based on the maturity level of each subordinate is practicing which leadership model?
- Transformational leadership
- Situational leadership (Correct answer)
- Servant leadership
- Transactional leadership
Correct answer: Situational leadership
Situational leadership (Hersey and Blanchard) prescribes adjusting directive and supportive behavior based on follower development level.
Question 3: In the PDCA cycle used for continuous improvement, what does the 'C' stand for?
- Control
- Check (Correct answer)
- Create
- Coordinate
Correct answer: Check
PDCA stands for Plan, Do, Check, Act — the 'Check' phase involves evaluating results against expected outcomes.
Question 4: Which principle of management states that an employee should receive orders from only one supervisor?
- Division of labor
- Scalar chain
- Unity of command (Correct answer)
- Esprit de corps
Correct answer: Unity of command
Fayol's unity of command principle holds that having multiple bosses creates confusion and conflicting priorities.
Question 5: A company decentralizes decision-making to regional managers. What is the PRIMARY advantage of this approach?
- Ensures uniform policy application
- Reduces accountability at the top
- Speeds up local decision-making (Correct answer)
- Eliminates the need for strategic planning
Correct answer: Speeds up local decision-making
Decentralization pushes authority closer to where information exists, enabling faster and more context-sensitive decisions.
Question 6: Which term describes the number of subordinates a manager can effectively supervise?
- Delegation depth
- Chain of command
- Span of control (Correct answer)
- Authority gradient
Correct answer: Span of control
Span of control refers to the optimal number of direct reports a manager can effectively oversee, influencing organizational structure.
Question 7: When a manager sets objectives collaboratively with each employee and then measures performance against those objectives, the manager is using:
- Benchmarking
- Management by Objectives (MBO) (Correct answer)
- Balance scorecard
- Six Sigma
Correct answer: Management by Objectives (MBO)
MBO, popularized by Peter Drucker, aligns organizational goals with individual performance through jointly set, measurable objectives.
Which management theorist introduced the concept of 'Theory X and Theory Y' to describe manager assumptions about employee motivation?