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The Principles of Management Principles of Management at Western Governors

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Principles of Management Real Exam Questions Full version

WGU Principles of Management real exam samples are available below.

1.1.What describes a value chain? Choose 1 answer

A. It is the internal strengths and weaknesses of an organization.
B. It flows from raw materials to the delivery of products or services.
C. It creates a focus for organizational downsizing.
D. It allows an organization to manage diversity in multiple markets.
Answer: B
Explanation:
The value chain describes the full range of activities that businesses go through
to bring a product or service from conception to delivery and beyond. The
concept was popularized by Michael Porter in his 1985 book "Competitive
Advantage: Creating and Sustaining Superior Performance."
Definition and Scope: A value chain encompasses all the processes involved in
the creation of a product or service.
This includes:
Sourcing raw materials.
Production processes.

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Marketing and sales.

Distribution and delivery.
Customer service post-delivery.
Primary Activities:
Inbound Logistics: Receiving, storing, and disseminating inputs of the product.
Operations: Transforming inputs into the final product.
Outbound Logistics: Collecting, storing, and distributing the product to customers.
Marketing and Sales: Persuading customers to purchase the product.
Services: Activities that maintain and enhance the product's value, such as
customer service.
Support Activities:
Procurement: Acquiring the resources a company needs to operate.
Technology Development: Research and development, IT, automation, etc.
Human Resource Management: Recruiting, hiring, training, and retaining
workers.
Firm Infrastructure: Organizational structure, control systems, company culture,
etc.
Example of Value Chain: The textbook provides an example of Walmart's value
chain to illustrate how a company adds value at each step of the process, from
procurement to delivery?.
Importance: Understanding and optimizing the value chain allows companies to
identify where they can add value, reduce costs, and gain competitive advantage.
Companies can use this analysis to find opportunities for improvement,
innovation, and efficiency in their processes.

2.Which stage of the conflict process is considered a distinct stage because of its
importance in intervening between perceptions or emotions and overt behavior?
Choose 1 answer
A. Outcomes
B. Cognition
C. Opposition
D. Intentions
Answer: D
Explanation:
The stage of the conflict process considered distinct because of its importance in
intervening between perceptions or emotions and overt behavior is intentions.
Intentions reflect how an individual plans to behave in a conflict situation,
mediating the transition from perception and feelings to actions. This stage is
crucial as it involves decisions about how to approach the conflict, whether to
compete, collaborate, avoid, accommodate, or compromise.

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3.What is the last step in strategic planning? Choose 1 answer

A. Goal setting
B. Strategy formulation
C. Strategic control
D. SWOT analysis
Answer: C
Explanation:
The last step in the strategic planning process is strategic control. This involves
monitoring and evaluating the execution of the strategic plan to ensure that the
organization is achieving its objectives and making necessary adjustments.
Strategic Management Process:
The strategic management process includes developing the firm's vision and
mission, strategic analysis, setting objectives, creating and implementing
strategies, and finally, measuring and evaluating performance.
Strategic control is the step where managers assess whether the strategies and
plans are being effectively implemented and whether they are leading the
organization towards its goals.
Purpose of Strategic Control:
It ensures that the organization is moving in the right direction and that the
strategic plans are yielding the desired outcomes.
It involves setting performance standards, measuring actual performance,
comparing it with the standards, and taking corrective actions if necessary?.
Components of Strategic Control:
Performance Measurement: This involves tracking the progress of strategy
implementation through key performance indicators (KPIs).
Feedback and Adjustment: Based on performance data, managers provide
feedback and make adjustments to strategies to address any deviations from the
planned objectives.

4.A company believes that employees should be grouped according to the tasks
they perform in the organization.
Which type of organizational design does this company use? Choose 1 answer
A. Directional
B. Virtual
C. Divisional
D. Functional
Answer: D
Explanation:

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The type of organizational design used when a company groups employees

according to the tasks they perform is a functional structure. In a functional
structure, employees are organized based on their specific roles or functions
within the organization, such as marketing, finance, production, or human
resources. This allows for specialization and efficiency within each functional
area.

5.What is a clear and concise statement of the basic purpose of an organization?

Choose 1 answer
A. Its vision
B. Its objective
C. Its mission
D. Its goal
Answer: C
Explanation:
A clear and concise statement of the basic purpose of an organization is its
mission. A mission statement provides a broad description of how the
organization intends to achieve its vision. It specifies the organization's reason
for being and answers the question, "What business(es) should we undertake?"?.
In the textbook "Principles of Management," a mission statement is defined as a
broad description of how a firm will try to make its vision a reality, often
describing the products and services the company plans to offer and the
customers it plans to serve?. This differentiates it from a vision statement, which
is more general and focuses on what the business aspires to become in the
future.

6.What is the purpose of the Six Sigma Quality approach? Choose 1 answer
A. To break down communication barriers
B. To analyze the causes of product defects
C. To promote the six most common leadership objectives
D. To improve employee education processes
Answer: B
Explanation:
The purpose of the Six Sigma Quality approach is to analyze the causes of
product defects and to reduce variability in manufacturing and business
processes. Six Sigma uses statistical methods to identify and eliminate defects,

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aiming for near perfection in production processes. It involves steps like defining
the problem, measuring key aspects, analyzing the data, improving processes,
and controlling the future process performance.

7.Equal employment opportunity laws were designed to ensure that people are
considered for employment without regard to certain traits.
Which traits are protected by these laws? Choose 1 answer
A. Criminal record, race, and gender
B. National origin, race, and education
C. Race, religion, and abilities
D. Race, religion, and ethnic background
Answer: D
Explanation:
Equal employment opportunity laws are designed to ensure that people are
considered for employment without regard to certain protected traits.
Race, Religion, and Ethnic Background (Answer D): These traits are protected
under equal employment opportunity laws, ensuring that individuals are not
discriminated against based on these characteristics.
Criminal Record (Answer A), Education (Answer B), and Abilities (Answer C):
These are not protected traits under equal employment opportunity laws.

8.Why might a company choose to adopt an organic structure instead of a

mechanistic structure? Choose 1 answer
A. It is more stable than a bureaucracy.
B. It has formal lines of authority.
C. It is efficient and controlled in a stable environment.
D. It is less rigid and emphasizes flexibility.
Answer: D
Explanation:
A company might choose to adopt an organic structure instead of a mechanistic
structure because it is less rigid and emphasizes flexibility. Organic structures are
characterized by low levels of formalization and standardization, decentralized
decision-making, and a greater degree of employee empowerment. This flexibility
allows the organization to adapt quickly to changes in the environment, fostering
creativity and innovation.

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