Practice Quiz

CLEP Principles of Management Exam Prep

Category - Development

Start a Study Session Sign up for Question of the Day
The Pareto principle says that
  1. An organization’s commitment to customer service must extend even beyond the point of purchase.
  2. Quality is achieved by prevention, not appraisal.
  3. In organizations, individuals tend to be promoted up to their “level of incompetence.”
  4. 80% of consequences can be attributed to 20% of the causes.
Explanation
Answer - D - The Pareto principle does assert that 80% of the consequences can be attributed to 20% of causes. It is also referred as the 80/20 rule.

Key Takeaway: Option A refers to Kaoru Ishikawa’s TQM philosophy and is unrelated to cause and effects. Option B is the not the best response, since the statement that quality is achieved by prevention, not appraisal is one of Philip B. Crosby’s four absolutes of quality management. Option C describes the “Peter Principle,” the belief that individuals tend to be promoted up to their “level of incompetence” within organizations.
Previous Next
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz