Practice Questions with Bold Answers &
Explanations – Athabasca University | INSTANT
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Introduction
This exam is designed for students enrolled in ADMN 232: Administrative
Principles at Athabasca University. This "Version B" exam focuses on key management
concepts including:
Leadership Theories – Path-Goal Theory, Normative Decision Theory, Fiedler's
Contingency Model
Motivation Theories – Equity Theory, Expectancy Theory, Goal-Setting Theory,
Reinforcement Theory
Organizational Structure – Departmentalization methods, authority, delegation,
centralization vs. decentralization
Innovation & Change Management – Technology cycles, S-curve pattern,
organizational decline stages, managing resistance to change
Strategic Management – Competitive advantage, BCG Matrix, Porter's Five Forces
Human Resources – Diversity management, employee separation, affirmative
action
Each question includes the correct answer in bold and an italicized rationale.
Section 1: Leadership Theories (Questions 1-20)
1. According to Path-Goal Theory, which of the following is a step leaders should
take to motivate followers?
A. Focus exclusively on task completion without regard for employee satisfaction
B. Clarify the path to goals by solving problems and removing roadblocks
,C. Delegate all decision-making authority to subordinates
D. Maintain strict control over all work processes
Rationale: Path-Goal Theory states that leaders should clarify the path to goals,
clear paths by solving problems and removing roadblocks, increase available
rewards, and offer followers something unique and valuable beyond what they're
already experiencing .
2. In Path-Goal Theory, "subordinate contingencies" include all of the following
EXCEPT:
A. Perceived ability
B. Locus of control
C. Task structure
D. Experience
Rationale: Subordinate contingencies in Path-Goal Theory include perceived ability
(how much ability subordinates believe they have), locus of control (personality
measure of control beliefs), and experience. Task structure is an environmental
contingency, not a subordinate contingency .
3. According to Path-Goal Theory, which leadership style involves letting employees
know precisely what is expected of them and giving specific guidelines for
performing tasks?
A. Supportive leadership
B. Participative leadership
C. Achievement-oriented leadership
D. Directive leadership
Rationale: Directive leadership involves letting employees know precisely what is
expected of them, giving specific guidelines for performing tasks, scheduling work,
setting standards of performance, and making sure people follow standard rules and
regulations .
4. A leader who is friendly, approachable, shows concern for employees and their
welfare, and treats them as equals is demonstrating which Path-Goal leadership
style?
A. Directive leadership
B. Supportive leadership
C. Participative leadership
D. Achievement-oriented leadership
Rationale: Supportive leadership is characterized by the leader being friendly and
, approachable, showing concern for employees and their welfare, treating them as
equals, and creating a friendly climate .
5. According to Path-Goal Theory, environmental contingencies include:
A. Perceived ability, locus of control, and experience
B. Task structure, formal authority system, and primary work group
C. Valence, expectancy, and instrumentality
D. Goal specificity, goal difficulty, and goal acceptance
Rationale: Environmental contingencies in Path-Goal Theory include task structure
(the degree to which task requirements are clearly specified), formal authority system
(procedures, rules, and policies), and primary work group (work-oriented
participation or emotional support from immediate work group) .
6. The Normative Decision Theory, developed by Vroom, helps leaders determine:
A. The most effective leadership style based on personality traits
B. An appropriate amount of employee participation when making decisions
C. The best way to structure organizational hierarchy
D. How to implement organizational change
Rationale: Normative Decision Theory suggests how leaders can determine an
appropriate amount of employee participation when making decisions. It identifies
decision styles ranging from autocratic to group-based .
7. According to Normative Decision Theory, which decision style involves leaders
making decisions by themselves without input from subordinates?
A. Consultative
B. Group
C. Autocratic
D. Participative
Rationale: In Normative Decision Theory, autocratic decision styles (AI or AII)
involve leaders making decisions by themselves without input from subordinates.
Consultative styles involve sharing problems with subordinates but still making
decisions, while group styles involve shared decision-making .
8. According to Normative Decision Theory, the "commitment requirement rule"
states that:
A. Leaders should always use autocratic decision styles
B. If having subordinates accept the decision is absolutely required for successful
implementation and subordinates share the organization's goals, don't use autocratic
or consultative styles