Nursing Leadership &
Management Exam Revie
w
2026/2027 Academic Year | 75 Questions with Correct Answers &
Rationales
Comprehensive Assessment Preparation
Organizational Competency & Business Principles in Healthcare
, Section I: Leadership Theories & Management Functions
1. A nurse manager inspires staff to transcend self-interest for the good of the team and encourages them to think
creatively about patient care. Which leadership style best describes this approach?
A. Transformational leadership B. Transactional leadership
C. Autocratic leadership D. Laissez-faire leadership
Correct Answer: A
Rationale: Transformational leadership focuses on inspiring and motivating followers to exceed expectations and
embrace a shared vision, rather than relying on rewards and punishments.
2. During a staffing shortage, a charge nurse assigns tasks based on each nurse's competency level and monitors
performance closely. This is most consistent with which management function?
A. Controlling B. Planning
C. Directing D. Organizing
Correct Answer: B
Rationale: Directing involves giving instructions, guiding, and supervising staff to ensure tasks are completed.
Assigning tasks based on competency and monitoring performance are key elements of directing.
3. A nursing unit leader who focuses on serving the needs of team members to promote their professional growth
and well-being is practicing which leadership model?
A. Situational leadership B. Charismatic leadership
C. Servant leadership D. Bureaucratic leadership
Correct Answer: C
Rationale: Servant leadership prioritizes the growth and well-being of followers. The leader serves the team by
removing barriers and supporting professional development.
4. Which of the following is a core component of Hersey and Blanchard's Situational Leadership Theory?
A. Emotional intelligence quotient B. Follower readiness level
C. Leader-member exchange quality D. Organizational culture type
Correct Answer: B
Rationale: Situational Leadership Theory proposes that the appropriate leadership style depends on the readiness
(competence and commitment) of the followers.
5. A nurse leader uses performance appraisals and merit pay increases to reward staff who meet productivity
benchmarks. Which leadership approach does this represent?
A. Democratic leadership B. Transactional leadership
C. Authentic leadership D. Transformational leadership
Correct Answer: B
1
, Rationale: Transactional leadership operates on an exchange model where followers are rewarded for meeting agreed-
upon objectives through contingent reinforcement.
6. The management function of arranging resources and structuring tasks to accomplish organizational goals is
known as:
A. Planning B. Staffing
C. Controlling D. Organizing
Correct Answer: D
Rationale: Organizing is the process of arranging resources, assigning roles, and structuring work activities to achieve
the objectives established during the planning phase.
7. A nurse manager develops a strategic plan to reduce hospital-acquired pressure injuries by 30% over the next
fiscal year. This represents which management function?
A. Evaluating B. Organizing
C. Directing D. Planning
Correct Answer: A
Rationale: Planning involves setting goals, developing strategies, and outlining tasks to achieve desired outcomes.
Reducing pressure injuries through a structured plan is a classic planning function.
8. When selecting new graduate nurses for a medical-surgical unit, the nurse manager considers skill mix, patient
acuity, and budget constraints. This activity falls under which management function?
A. Controlling B. Directing
C. Staffing D. Planning
Correct Answer: C
Rationale: Staffing involves recruiting, selecting, and maintaining qualified personnel. Considering skill mix, patient
acuity, and budget are critical factors in effective staffing decisions.
9. Which statement best describes the controlling function of management in nursing practice?
A. Comparing actual performance with established B. Establishing annual departmental objectives
standards and taking corrective action
C. Motivating staff through recognition programs D. Delegating tasks to licensed practical nurses
Correct Answer: A
Rationale: Controlling involves monitoring performance, comparing results with standards, and implementing
corrective actions when deviations are identified.
10. A newly appointed nurse manager observes the current workflow on the unit before making any changes. This
approach aligns most closely with which leadership principle?
A. Force field analysis B. Contingency theory
C. Appreciative inquiry D. Systems theory
Correct Answer: B
Rationale: Contingency theory suggests that leadership effectiveness depends on the specific situation. Assessing the
current environment before acting is a hallmark of contingency-based leadership.
2
Management Exam Revie
w
2026/2027 Academic Year | 75 Questions with Correct Answers &
Rationales
Comprehensive Assessment Preparation
Organizational Competency & Business Principles in Healthcare
, Section I: Leadership Theories & Management Functions
1. A nurse manager inspires staff to transcend self-interest for the good of the team and encourages them to think
creatively about patient care. Which leadership style best describes this approach?
A. Transformational leadership B. Transactional leadership
C. Autocratic leadership D. Laissez-faire leadership
Correct Answer: A
Rationale: Transformational leadership focuses on inspiring and motivating followers to exceed expectations and
embrace a shared vision, rather than relying on rewards and punishments.
2. During a staffing shortage, a charge nurse assigns tasks based on each nurse's competency level and monitors
performance closely. This is most consistent with which management function?
A. Controlling B. Planning
C. Directing D. Organizing
Correct Answer: B
Rationale: Directing involves giving instructions, guiding, and supervising staff to ensure tasks are completed.
Assigning tasks based on competency and monitoring performance are key elements of directing.
3. A nursing unit leader who focuses on serving the needs of team members to promote their professional growth
and well-being is practicing which leadership model?
A. Situational leadership B. Charismatic leadership
C. Servant leadership D. Bureaucratic leadership
Correct Answer: C
Rationale: Servant leadership prioritizes the growth and well-being of followers. The leader serves the team by
removing barriers and supporting professional development.
4. Which of the following is a core component of Hersey and Blanchard's Situational Leadership Theory?
A. Emotional intelligence quotient B. Follower readiness level
C. Leader-member exchange quality D. Organizational culture type
Correct Answer: B
Rationale: Situational Leadership Theory proposes that the appropriate leadership style depends on the readiness
(competence and commitment) of the followers.
5. A nurse leader uses performance appraisals and merit pay increases to reward staff who meet productivity
benchmarks. Which leadership approach does this represent?
A. Democratic leadership B. Transactional leadership
C. Authentic leadership D. Transformational leadership
Correct Answer: B
1
, Rationale: Transactional leadership operates on an exchange model where followers are rewarded for meeting agreed-
upon objectives through contingent reinforcement.
6. The management function of arranging resources and structuring tasks to accomplish organizational goals is
known as:
A. Planning B. Staffing
C. Controlling D. Organizing
Correct Answer: D
Rationale: Organizing is the process of arranging resources, assigning roles, and structuring work activities to achieve
the objectives established during the planning phase.
7. A nurse manager develops a strategic plan to reduce hospital-acquired pressure injuries by 30% over the next
fiscal year. This represents which management function?
A. Evaluating B. Organizing
C. Directing D. Planning
Correct Answer: A
Rationale: Planning involves setting goals, developing strategies, and outlining tasks to achieve desired outcomes.
Reducing pressure injuries through a structured plan is a classic planning function.
8. When selecting new graduate nurses for a medical-surgical unit, the nurse manager considers skill mix, patient
acuity, and budget constraints. This activity falls under which management function?
A. Controlling B. Directing
C. Staffing D. Planning
Correct Answer: C
Rationale: Staffing involves recruiting, selecting, and maintaining qualified personnel. Considering skill mix, patient
acuity, and budget are critical factors in effective staffing decisions.
9. Which statement best describes the controlling function of management in nursing practice?
A. Comparing actual performance with established B. Establishing annual departmental objectives
standards and taking corrective action
C. Motivating staff through recognition programs D. Delegating tasks to licensed practical nurses
Correct Answer: A
Rationale: Controlling involves monitoring performance, comparing results with standards, and implementing
corrective actions when deviations are identified.
10. A newly appointed nurse manager observes the current workflow on the unit before making any changes. This
approach aligns most closely with which leadership principle?
A. Force field analysis B. Contingency theory
C. Appreciative inquiry D. Systems theory
Correct Answer: B
Rationale: Contingency theory suggests that leadership effectiveness depends on the specific situation. Assessing the
current environment before acting is a hallmark of contingency-based leadership.
2
