Principles of Management

The Principles of Management exam requires knowledge of human resources and operational and functional aspects of management.

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Overview

The Principles of Management exam covers material that is usually taught in an introductory course in the essentials of management and organization. Questions on the exam require you to demonstrate knowledge of management functions and techniques, and ability to associate the meaning of specific terminology with important management ideas, processes, and techniques. You will also be required to apply knowledge, general concepts, and principles to specific problems.

The exam contains approximately 100 questions to be answered in 90 minutes. Some of these are pretest questions that will not be scored.

Knowledge and Skills Required

Questions on the Principles of Management exam require test takers 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% 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% 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% of the exam)
  • Application of knowledge, general concepts, and principles to specific problems (about 10% of the exam)

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

Organization and Human Resources (15%–25%)

  • 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%)

  • 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%)

  • 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%)

  • 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

Score Information

ACE Recommendation for Principles of Management

Credit-granting Score 50
Semester Hours 3

Note: Each institution reserves the right to set its own credit-granting policy, which may differ from the American Council on Education (ACE). Contact your college to find out the score required for credit and the number of credit hours granted.

Add Study Guides

CLEP Principles of Management Examination Guide

The Principles of Management exam requires knowledge of human resources and operational and functional aspects of management.

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2022 CLEP Official Study Guide

This study guide provides practice questions for all 34 CLEP exams. The ideal resource for taking more than one exam. Offered only by College Board.

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