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Principles and Practice of Management

PRELIMINARY

I. IDENTIFICATION. Write only the letter of your choice on the space provided before each
number.

A. Responsibility B. Delegation C. Authority


D. Unity of Command E. Marketing plan F. Budget
G. Accountability H. Standing Committee I. Committee
J. Line and Staff Organization K. Organizational Chart L. Departmentation
M. Organizing N. Organization O. Line Organization

__ 1. The process of grouping together of men and establishing relationships among them and the
delegation of authority and responsibility to the employees.
__ 2. The total business organization including facilities, materials, money and manpower.
__ 3. The simplest form of structure and refers to a direct straight-line responsibility and control from
the top management to the middle management and to the lower level.
__ 4. This utilizes the assistance of experts or specialists. Specific advisory responsibility is delegated to
these assistants.
__ 5. A diagram or drawing showing relationship among positions as to authority, responsibility and
accountability, and the people who occupy them.
__ 6. The grouping of work, the desire to obtain organization units of manageable size, and to utilize
managerial ability.
__ 7. The work or duty assigned to a particular position. It involves mental and physical activities which
must be performed to carry out a task or duty.
__ 8. The process of entrusting and transferring responsibility and authority by the top management to
the lowest level.
__ 9. It refers to the power or the right to be obeyed. It is also the sum of powers and rights entrusted to
make possible the performance of the work delegated.
__ 10. This is the answerability of the obligation to perform the delegated responsibility and to exercise
the authority for the proper performance of the work.
__ 11. This is sometimes called permanent committee which undertakes permanent activities, such as
the budget committee.
__ 12. Another organizational form used in situations where group participation and decision are
required.
__ 13. According to this principle, no one subordinate can have more than one supervisor.
__ 14. Its common objective is to increase their present market share and develop new products.
__ 15. A plan stated in financial term. The estimate of income and expenditures for a future period.

II. MULTIPLE CHOICE. Write the correct letter of answer on the space provided.

__ 1. Organizing involves the following:


a. Motivating employees b. Defining goals c. Monitoring employee’s activities
d. Grouping tasks into departments e. Determining appropriate tasks and resources
__ 2. Planning involves the following:
a. Assigning tasks b. Defining goals c. Determining appropriate tasks and resources
d. Making corrections e. Using influence
__ 3. The purpose of controlling is to
a. Motivate employees to work overtime hours.
b. Make sure plans are fulfilled and that actual performance meets or surpasses objectives
c. Define a plan of action for the organization
d. Coordinate resources and task performance
__ 4. Before any planning can take place, an organization must establish its
a. Plan b. Premise c. Vision d. Hierarchy e. Board of Directors
__ 5. Which of the following is NOT correct regarding the importance of planning?
a. Planning is central to the management process
b. Planning is important for staying ahead of the competition
c. Planning helps an organization become better at what it does
d. Planning helps an organization to be action oriented
e. Planning eliminates the need for effective leadership
__ 6. In the planning process, ______ refers to the specific or desired results that one wishes to achieve
a. Guidelines b. Objectives c. Outcomes d. Alternatives
__ 7. A diagrammatical form which shows important aspects of an organization including the major
functions and their respective relationships, and channels of supervision, and the relative authority
of each employee who is in charge of each function.
a. Organizational chart b. Staff line organization c. Line organization d. NA
__ 8. This is sometimes called permanent committee which undertakes permanent activities, such as the
budget committee.
a. Committee on Program b. Ad Hoc Committee c. Standing Committee e. NA
__ 9. This committee undertakes temporary activities.
a. Committee on Program b. Ad Hoc Committee c. Standing Committee e. NA
__ 10. Which of these is NOT essential nature of planning?
a. Contribution to purpose and objectives c. Planning as function of subordinates
b. Planning for efficient organization d. Planning as the first basic function
__ 11. Which is considered the most basic of all managerial functions?
a. Organizing b. Planning c. Controlling d. Directing
__ 12. This is the reason for the existence of an organization
a. Policy b. Procedure c. Program d. Mission
__ 13. These are the basic guidelines for action. They indicated what is permitted and what is not
permitted?
a. Programs b. Rules c. Policies d. Procedures
__ 14. They are series of related steps expressed in chronological order for a specific purpose.
a. Programs b. Rules c. Policies d. Procedures
__ 15. These require specific and definite actions for a given situation. They permit no flexibility and
deviation, Ex. Wearing uniforms or reporting to work at a particular time.
a. Programs b. Rules c. Policies d. Procedures
__ 16. The values and beliefs an organization holds as the guiding light. These are usually passed on by
the founder of the organization.
a. Strategy b. Mission c. Policies d. Philosophy
__ 17. It is the method of shaping a company’s future and involves determining the long-run direction of
the organization.
a. Strategy b. Mission c. Policies d. Philosophy
__ 18. These are marketing programs, EXCEPT one.
a. Product strategy b. Promotion c. Plant Location d. Pricing strategy
__ 19. These are Financial Plan, EXCEPT one.
a. Sources of financing b. Financial Analysis c. Job Analysis d. Pricing Strategy
__ 20. The process of grouping together of men and establishing relationships among them, defining the
authority and responsibility of personnel by using company’s other basic resources to attain
predetermined goals and objective.
a. Organizing b. Directing c. Planning d. Controlling e. Staffing

III. ORGANIZATIONAL CHART

1. The identified positions for the proposed business are as follows: put them on the appropriate
boxes below: (10 pts.)

Managing Director
Marketing Manager
Personnel Manager
Production Manager
Finance Manager
Marketing Research Clerk
Advertising Clerk
Workers

2. Connect LINES between boxes to complete an organizational chart and to show relationship
among positions. (10 pts.)

TRIVIA: Who is the Secretary General of the Technical Education and Skills Development Authority
(TESDA)?

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