Free Principles of Management CLEP Practice Test

This is known as the Expectancy Theory, and defines motivation as equal to the product of Expectancy, Instrumentality, and Valence--Motivation Forces = Expectancy x Instrumentality x Valence. Basically, the worker has to believe he can achieve the goals, expect that achieving the goals will give him a reward, and value that reward.

The Hawthorne Effect was defined during the Hawthorne Studies, when worker performance improved no matter what factors the researchers changed in the experiment, simply because the workers knew they were being studied.

Fiedler stated that low LPC, or task-oriented leaders, are best for these situations. He defined three factors--leader-member, task structure, and position power--which define the extent of the leader's control and influence.

Increasing overhead would raise, or increase, the break-even point. More overhead means more total costs for the company, which means the company would have to bring in more revenue to break even.

Responsibility still falls on the manager, and cannot be delegated.

Critical Path Method (CPM) involves a PERT chart, and many consider the two virtually identical. However, CPM assumes previous experience with the work involved and often includes cost estimates as well as timing.

The halo effect occurs when people become stereotyped based on earlier impressions and these impressions color future events. It can be positive or negative. The Halo Effect is a common source of error for the interviewer. An example is an interviewer making assumptions about honesty based on a candidate's physical appearance.

The Wagner Act officially the National Labor Relations Act, establishes the right for employees to form unions, requires employers to bargain with such unions fairly, and prohibits unfair labor practices such as firing employees for joining unions.

Theory X and Theory Y are two different views and sets of assumptions managers may have about their employees. Theory X views man as lazy and wanting to do as little as possible, and needing external threats or incentives to work. On the other hand, Theory Y sees motivation as internal, and goes along with Maslow's Need Hierarchy theory for sources of motivation for employees.

The ability to consider only some of the alternatives, or only some of the information required to evaluate a possible course of action is called bounded rationality. Simon believed that people have limited cognitive abilities and often have to deal with an overwhelming amount of information. Consequently they tend to take cognitive shortcuts when making decisions.