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Principles of Management

Description of the Examination

The Principles of Management examination covers material that is usually taught in an introductory course in the essentials of management and organization. The fact that such courses are offered by different types of institutions and in a number of fields other than business has been taken into account in the preparation of this examination. It requires a knowledge of human resources and operational and functional aspects of management.

The examination contains approximately 100 questions to be answered in 90 minutes. Some of these are pretest questions that will not be scored. Any time candidates spend on tutorials and providing personal information is in addition to the actual testing time.

Knowledge and Skills Required

Questions on the Principles of Management examination require candidates to demonstrate one or more of the following abilities in the approximate proportions indicated.

  • Specific factual knowledge, recall, and general understanding of purposes, functions, and techniques of management (about 10 percent of the exam)
  • Understanding of and ability to associate the meaning of specific terminology with important management ideas, processes, techniques, concepts, and elements (about 40 percent of the exam)
  • Understanding of theory and significant underlying assumptions, concepts, and limitations of management data, including a comprehension of the rationale of procedures, methods, and analyses (about 40 percent of the exam)
  • Application of knowledge, general concepts, and principles to specific problems (about 10 percent of the exam)

The subject matter of the Principles of Management examination is drawn from the following topics. The percentages next to the main topics indicate the approximate percentage of exam questions on that topic.

15%–25%
Organization and Human Resources

  • 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

10%–20%
Operational Aspects of Management

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

45%–55%
Functional Aspects of Management

  • 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

10%–20%
International Management and Contemporary Issues

  • 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

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