What This Exam Covers
The Principles of Management CLEP covers material similar to a first-year undergraduate management class. Over half the exam covers how organizations are structured and run. This includes how companies are organized, organizational charts, leadership, budgeting, and more. On top of this, it covers how to motivate, recruit, and retain employees. An overview of more detailed operations, such as quality control, is also covered. Finally, ethics, government regulations, and some harder-to-quantify aspects of management, such as creativity, are covered. If you've worked in a management or work environment, some concepts will be familiar.
Exam at a Glance
| Questions | ~100 multiple choice |
| Time | 90 minutes |
| Passing score | 50 (most schools) |
| College credits | 3 semester hours (typical) |
| Exam fee | $97 |
What's on the Principles of Management CLEP*?
| Category | Weight | Topics |
|---|---|---|
| Functional Aspects of Management | 45–55% | Planning, organizing, leading, controlling, decision making, leadership, organizational structure, communication, group dynamics, conflict resolution, budgeting |
| Organization and Human Resources | 15–25% | Motivation, recruiting and selecting, training and development, performance appraisal, compensation, workforce diversity, collective bargaining, legal concerns |
| Operational Aspects of Management | 10–20% | Operations planning and control, quality management, strategic planning, information management, work scheduling, productivity |
| International Management and Contemporary Issues | 10–20% | Business ethics, social responsibility, management theories and theorists, global management, government regulation, creativity and innovation |
Source: For a full breakdown of what is on the exam, see the College Board Principles of Management CLEP page.
How hard is the Principles of Management CLEP*?
Many students find this exam moderate or easy, depending on their business exposure. Most people have worked under an organization, so they're familiar with concepts such as the chain of command. What they need to learn is management vocabulary to put words to ideas they already know.
If you have business or management experience, 2 to 3 weeks is enough to prepare. Starting from scratch, plan on 4 to 6 weeks.
How to study for the Principles of Management CLEP*
- Work through the InstantCert flashcards with close attention to management theorists and their frameworks. Fayol, Taylor, Maslow, McGregor, and Herzberg show up frequently and are easy points once you know them.
- Take the College Board's free Principles of Management practice questions to get a few free practice questions.
- ModernStates has a free Principles of Management course built for CLEP prep. It is especially useful for the operational aspects and contemporary issues sections, which are easier to overlook when studying.
What score do you need to pass?
A score of 50 is the standard passing rate at most schools, but some schools require 60. Management credit typically counts toward a business elective requirement, but confirm how your school applies it before you start studying.
Pass and you earn 3 semester hours of credit. Fail and the attempt does NOT appear on your transcript. You can retake after 3 months, but you do lose the $97 exam fee.
Can you pass Principles of Management CLEP* with just flashcards?
Yes, many of our students have passed with just the practice questions. Management vocabulary is the main stumbling block on this exam, and flashcards are a great way to memorize it. Once you know the terminology, it's easy to figure out what the question is asking.
Which colleges accept the Principles of Management CLEP*?
Over 2,900 U.S. colleges and universities accept CLEP credit, and most of them accept Principles of Management. The credit typically counts toward a business elective. A small number of highly selective schools do not accept CLEP at all, so make sure to check before you test.
Use the College Board's CLEP credit-granting policy search tool to look up your specific school's score requirement and credit award. It is also worth confirming directly with your school, as the tool is not always current.
Principles of Management CLEP* vs. taking the class
At $97, this exam costs a fraction of a semester of business school tuition. You earn the same 3 credit hours either way, with no GPA impact. The difference is that you study on your own without a professor, graded assignments, or group projects.
| Exam fee | $97 one-time |
| Typical tuition equivalent | $500–$3,000+ (one semester) |
| Credits earned | 3 semester hours (typical) |
| Time to prepare | 2–5 weeks self-study |
| GPA impact | None, pass/fail only |
CLEP is the right call if you have any business or management background and need to get a quick credit. Taking the class makes more sense if your program requires a specific named course or if you need more detailed knowledge to continue with higher level management classes.
Happy testing!