business

Principles of Management

"Management is, above all, a practice where art, science, and craft meet" - Henry Mintzberg

The Principles of Management exam covers material that is usually taught in an introductory course in the essentials of management and organization. The successful student will understand fundamental management terminology, processes and techniques and be able to apply that knowledge to specific problems. A broad knowledge base of the operational and functional aspects of management will be tested.

The exam contains approximately 100 questions to be answered in 90 minutes. Some of these are pretest questions that will not be scored. The College Board sets the parameters of the exam which are listed below.

WHAT YOU NEED TO KNOW ABOUT PRINCIPLES OF MANAGEMENT:

  • Specific factual knowledge, recall, and general understanding of purposes, functions, and techniques of management
  • Understanding of and ability to associate the meaning of specific terminology with important management ideas, processes, techniques, concepts, and elements
  • Understanding of theory and significant underlying assumptions, concepts, and limitations of management data, including a comprehension of the rationale of procedures, methods, and analyses
  • Application of knowledge, general concepts, and principles to specific problems

The subject matter of the Principles of Management exam is drawn from the following topics.

ORGANIZATION and HUMAN RESOURCES: 15-25% of the exam

  • Personnel administration
  • Human relations and motivation
  • Training and development
  • Performance appraisal
  • Organizational development
  • Legal concerns
  • Workforce diversity
  • Recruiting and selecting
  • Compensation and benefits
  • Collective bargaining

OPERATIONAL ASPECTS OF MANAGEMENT: 10-20% of the exam

  • Operations planning and control
  • Work scheduling
  • Quality management (e.g., TQM)
  • Information processing and management
  • Strategic planning and analysis
  • Productivity

FUNCTIONAL ASPECTS OF MANAGEMENT: 45-55% of the exam

  • Planning
  • Organizing
  • Leading
  • Controlling
  • Authority
  • Decision making
  • Organization charts
  • Leadership
  • Organizational structure
  • Budgeting
  • Problem solving
  • Group dynamics and team functions
  • Conflict resolution
  • Communication
  • Change
  • Organizational theory
  • Historical aspects

INTERNATIONAL MANAGEMENT and CONTEMPORARY ISSUES: 10-20% of the exam

  • Value dimensions
  • Regional economic integration
  • Trading alliances
  • Global environment
  • Social responsibilities of business
  • Ethics
  • Systems
  • Environment
  • Government regulation
  • Management theories and theorists
  • E-business
  • Creativity and innovation

Each college sets their own credit-granting policies for the exam, so check with your college admissions office, test center, or academic adviser before taking the test.

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