MGMT 200 (Purdue) Exam 1| 150
QUESTIONS| WITH COMPLETE
SOLUTION
Course
MGMT 200 (MGMT200)
1. Functions of Management
Question:
Explain the four primary functions of management and give one practical example for each.
Solution:
Planning: Setting goals and deciding how to achieve them.
Example: A farm sets a target to increase yield by 20%.
Organizing: Allocating resources and assigning tasks.
Example: Assigning workers to irrigation, harvesting, and packaging.
Leading: Motivating and directing employees.
Example: A manager encourages workers through incentives.
Controlling: Monitoring performance and correcting deviations.
Example: Comparing actual yield vs target and adjusting fertilizer use.
2. Decision-Making Process
Question:
List and explain the 5 steps in rational decision-making.
Solution:
1. Identify the problem – e.g., declining sales.
2. Generate alternatives – marketing, price reduction, new product.
3. Evaluate alternatives – costs, risks, benefits.
4. Choose the best option – highest expected return.
5. Implement & monitor – execute and track results.
3. SWOT Analysis
,Question:
A company has strong brand recognition but high production costs. Identify elements of SWOT.
Solution:
Strength: Strong brand recognition
Weakness: High production costs
Opportunities: Could expand into new markets
Threats: Competitors with lower prices
4. Leadership Styles
Question:
Differentiate between autocratic, democratic, and laissez-faire leadership.
Solution:
Autocratic: Leader makes decisions alone (fast but low morale).
Democratic: Involves team input (better satisfaction).
Laissez-faire: Minimal supervision (works only with skilled teams).
5. Motivation Theories
Question:
Explain Maslow’s hierarchy of needs and its managerial implication.
Solution:
Levels:
1. Physiological (salary)
2. Safety (job security)
3. Social (team belonging)
4. Esteem (recognition)
5. Self-actualization (growth)
Implication: Managers must satisfy lower needs first before expecting higher performance.
, 6. Span of Control
Question:
What is span of control and how does it affect organizational structure?
Solution:
Span of control: Number of employees supervised by one manager.
Wide span: More employees → flatter structure.
Narrow span: Fewer employees → taller hierarchy.
Impact: Affects communication, efficiency, and costs.
7. Centralization vs Decentralization
Question:
Distinguish between centralization and decentralization.
Solution:
Centralization: Decision-making at top management.
Decentralization: Decisions pushed to lower levels.
Key difference: Speed vs control. Decentralization increases flexibility.
8. Planning Types
Question:
Differentiate between strategic, tactical, and operational planning.
Solution:
Strategic: Long-term (5+ years), top-level goals.
Tactical: Mid-term, department-level plans.
Operational: Short-term, daily activities.
9. Control Process
Question:
Explain the steps in the control process.
Solution:
QUESTIONS| WITH COMPLETE
SOLUTION
Course
MGMT 200 (MGMT200)
1. Functions of Management
Question:
Explain the four primary functions of management and give one practical example for each.
Solution:
Planning: Setting goals and deciding how to achieve them.
Example: A farm sets a target to increase yield by 20%.
Organizing: Allocating resources and assigning tasks.
Example: Assigning workers to irrigation, harvesting, and packaging.
Leading: Motivating and directing employees.
Example: A manager encourages workers through incentives.
Controlling: Monitoring performance and correcting deviations.
Example: Comparing actual yield vs target and adjusting fertilizer use.
2. Decision-Making Process
Question:
List and explain the 5 steps in rational decision-making.
Solution:
1. Identify the problem – e.g., declining sales.
2. Generate alternatives – marketing, price reduction, new product.
3. Evaluate alternatives – costs, risks, benefits.
4. Choose the best option – highest expected return.
5. Implement & monitor – execute and track results.
3. SWOT Analysis
,Question:
A company has strong brand recognition but high production costs. Identify elements of SWOT.
Solution:
Strength: Strong brand recognition
Weakness: High production costs
Opportunities: Could expand into new markets
Threats: Competitors with lower prices
4. Leadership Styles
Question:
Differentiate between autocratic, democratic, and laissez-faire leadership.
Solution:
Autocratic: Leader makes decisions alone (fast but low morale).
Democratic: Involves team input (better satisfaction).
Laissez-faire: Minimal supervision (works only with skilled teams).
5. Motivation Theories
Question:
Explain Maslow’s hierarchy of needs and its managerial implication.
Solution:
Levels:
1. Physiological (salary)
2. Safety (job security)
3. Social (team belonging)
4. Esteem (recognition)
5. Self-actualization (growth)
Implication: Managers must satisfy lower needs first before expecting higher performance.
, 6. Span of Control
Question:
What is span of control and how does it affect organizational structure?
Solution:
Span of control: Number of employees supervised by one manager.
Wide span: More employees → flatter structure.
Narrow span: Fewer employees → taller hierarchy.
Impact: Affects communication, efficiency, and costs.
7. Centralization vs Decentralization
Question:
Distinguish between centralization and decentralization.
Solution:
Centralization: Decision-making at top management.
Decentralization: Decisions pushed to lower levels.
Key difference: Speed vs control. Decentralization increases flexibility.
8. Planning Types
Question:
Differentiate between strategic, tactical, and operational planning.
Solution:
Strategic: Long-term (5+ years), top-level goals.
Tactical: Mid-term, department-level plans.
Operational: Short-term, daily activities.
9. Control Process
Question:
Explain the steps in the control process.
Solution:
