CPM Management Principles 3 — Questions and Answers
Question 1: According to Maslow's hierarchy, which need must generally be satisfied BEFORE esteem needs become motivating?
- Self-actualization
- Physiological needs
- Social/belonging needs (Correct answer)
- Cognitive needs
Correct answer: Social/belonging needs
Maslow's hierarchy places social/belonging needs (love, friendship, group membership) below esteem needs, so they must be met first.
Question 2: A manager notices that rewarding one behavior inadvertently reduces another desired behavior. This illustrates which organizational behavior concept?
- The halo effect
- Goal displacement
- The folly of rewarding A while hoping for B (Correct answer)
- Cognitive dissonance
Correct answer: The folly of rewarding A while hoping for B
Steven Kerr's classic article 'On the Folly of Rewarding A While Hoping for B' describes how misaligned incentives undermine intended outcomes.
Question 3: Which conflict resolution style results in both parties giving up something to reach an agreement?
- Accommodating
- Avoiding
- Competing
- Compromising (Correct answer)
Correct answer: Compromising
Compromising involves mutual concessions so both parties partially achieve their goals, unlike collaborating where both fully win.
Question 4: The balanced scorecard approach measures organizational performance across how many primary perspectives?
- Two
- Three
- Four (Correct answer)
- Six
Correct answer: Four
Kaplan and Norton's balanced scorecard uses four perspectives: financial, customer, internal business processes, and learning & growth.
Question 5: Which type of organizational structure groups employees by the functions they perform (e.g., marketing, finance, operations)?
- Divisional structure
- Matrix structure
- Functional structure (Correct answer)
- Network structure
Correct answer: Functional structure
A functional structure organizes departments by specialized activities, promoting expertise and efficiency within each function.
Question 6: In Kotter's 8-step change model, which step comes immediately AFTER 'creating a sense of urgency'?
- Generating short-term wins
- Forming a powerful guiding coalition (Correct answer)
- Communicating the vision
- Anchoring new approaches in the culture
Correct answer: Forming a powerful guiding coalition
Kotter's second step is building a guiding coalition — assembling a group with enough power to lead the change effort.
Question 7: A manager who focuses primarily on tasks, rules, and structures rather than employee relationships exhibits which leadership orientation?
- People-oriented leadership
- Laissez-faire leadership
- Task-oriented leadership (Correct answer)
- Transformational leadership
Correct answer: Task-oriented leadership
Task-oriented (initiating structure) leaders emphasize goal accomplishment, roles, and procedures over interpersonal concerns.
CPM Management Principles 3
According to Maslow's hierarchy, which need must generally be satisfied BEFORE esteem needs become motivating?