foundations of management

Foundations of Management challenges members to demonstrate their understanding of fundamental management principles through an objective test. This event covers topics such as planning, organizing, leading, and controlling within business environments, as well as leadership styles, team dynamics, and decision-making

Event Overview

Division: Collegiate
Event Type: Individual
Event Category: Objective Test, 100-multiple choice questions (breakdown of question by competencies below)
Objective Test Time: 50 minutes

Career Cluster Framework: Connection Management & Entrepreneurship

NACE Competency Alignment: Career & Self-Development, Communication, Critical Thinking, Leadership, Professionalism, Technology

Items Competitor Must Provide: Pencil, Computer, Conference-provided nametag, Photo identification, Attire that meets the Florida FBLA Dress Code.

This event is intended for students who are early in their collegiate academic journey and just beginning their study of management. Only members who have completed no more than six credit hours on a semester schedule (or the equivalent number of quarter hours) of college-level management coursework by May 1, 2026, are eligible to compete.

 Competencies

• Business Environment
• Communication Techniques
• Controlling
• Decision Making
• Directing
• Employee Motivation Theories
• Group Dynamics
• Leadership
• Organization Structure
• Organizing
• Planning
• Policies & Strategies
• Staffing

Test questions are based on the knowledge areas and objectives outlined for this event. Detailed objectives can be found in the study guide included in these guidelines.

State

Eligibility

·         FBLA membership dues are paid by 11:59 pm Eastern Time on February 1st of the current program year.

·         Members must be registered for the SLC and pay the state conference registration fee in order to participate in competitive events.

·         Members must stay within the official FBLA housing block of the official FBLA hotel to be eligible to compete.

·         Each chapter may submit six students in this event.

·         On the state level, each member can compete in up to three different events in the following combinations: three objective tests OR two objective tests and one performance OR two objective tests and one production or one objective test and two production OR one objective test, one performance, and one production. Students may enter the Christopher Heider, Rob Kelleher, Who’s Who event, and one Chapter event (Community Service, State of the Chapter) in addition to their above chosen events.

·         Picture identification (physical or digital: driver’s license, passport, state-issued identification, or school-issued identification) matching the conference nametag is required when checking in for competitive events.

·         If competitors are late for an objective test, they may be either disqualified or permitted to begin late with no extension of the time as scheduled. This is at the discretion of the proctor.

·         Participants must adhere to the Florida FBLA dress code established by the Florida Board of Directors or they will not be permitted to participate in the competitive event.

Recognition

·         The number of competitors will determine the number of winners. The maximum number of winners for each competitive event is 4.

Event Administration

·         This event is an objective test administered prior to the SLC. Advisers will be sent information regarding the testing requirements.

·         No reference or study materials may be brought to the testing site.

·         No calculators may be brought into the testing site; online calculators will be provided through the testing software.

Scoring

·         Ties are broken by comparing the correct number of answers to the last 10 questions on the test. If a tie remains, answers to the last 20 questions on the test will be reviewed to determine the winner. If a tie remains, the competitor who completed the test in a shorter amount of time will place higher.

·         Results announced at the State Leadership Conference are considered official and will not be changed after the conclusion of the State Leadership Conference.

Americans with Disabilities Act (ADA)

·         FBLA complies with the Americans with Disabilities Act (ADA) by providing reasonable accommodations for competitors. Accommodation requests must be submitted through the conference registration system by the official registration deadline. All requests will be reviewed, and additional documentation may be required to determine eligibility and appropriate support.

Penalty Points

·         Competitors may be disqualified if they violate the Competitive Event Guidelines or the Honor Code.

Electronic Devices

·        Unless approved as part of a documented accommodation, all cell phones, smartwatches, electronic devices, and headphones must be turned off and stored away before the competition begins. Visible devices during the event will be considered a violation of the FBLA Honor Code.

National

If competing at the National level, be sure to see the National guidelines at https://www.fbla.org/collegiate/competitive-events/

Study Guide: Knowledge Areas and Objectives

A. Business Environment

1. Explain the impact of business on the environment.

2. Explain the nature of managerial ethics and demonstrate ethical behaviors in the workplace – responsible behavior, honesty, integrity, and ethical work habits.

3. Describe current and emerging trends in business (e.g., acquisition/downsizing, e-commerce, data mining, labor market, and social issues).

4. Differentiate social, ethical, and environmental issues facing business.

5. Describe the impact of demographic issues on business.

6. Evaluate the impact of liaisons with community, governmental, and professional organizations on the business environment.

7. Construct an initial survey regarding possible locations for a business within the community.

8. Plan physical layout, furnishings, and equipment for a business environment and analyze for maximum efficiency.

9. Identify stressors in the business environment and employ strategies for dealing with stress.

B. Communication Techniques

1. Define communication (formal and informal) and discuss its implication for effective management.

2. Describe the communication process.

3. Examine communication barriers and ways to eliminate them.

4. Define active listening and review the keys to effective listening.

5. Describe the role of computer networks, videoconferences, and telecommuting as organizational communication.

6. Discuss the communication skills and leadership styles required in a contemporary organization and analyze how they will be required within worker groups.

7. Use correct grammar, punctuation, terminology, and communication skills to produce and edit clearly written traditional and electronic documents.

8. Prepare a meeting plan/agenda and demonstrate a productive meeting.

9. Prepare and deliver a presentation to achieve greatest impact.

10. Demonstrate effective communication techniques and skills in working with individuals, groups, and supervisors (e.g., verbal and nonverbal).

C. Controlling

1. Define control and its role and importance.

2. Describe controls in the functional areas to include human resources, production, marketing, information, and financial activities.

3. Identify the steps of the control process.

4. Identify and compare three types of control: preventative, concurrent, and corrective.

5. Describe the nature of managerial control (e.g., control process, types of control, and what is controlled).

6. Identify areas of control: costs, inventories, quality, safety, and employees.

7. Discuss steps to change negative attitudes and manage change in organizations.

8. Analyze and understand the importance and purpose of financial information and statements.

9. Track performance of a business plan.

10. Develop and implement budgets and expense-control strategies to enhance a business’s financial well-being.

11. Manage quality-control processes to minimize errors and to expedite workflow.

12. Develop and analyze process control charts to include Pareto Charts, Histograms, X-bar and R-charts, Flow Charts, Cause and Effect Diagrams, and Scatter Diagrams.

13. Describe the basic concept behind Total Quality Management and its application to a business.

14. Describe the concepts behind Six Sigma, ISO 9000, and similar systems.

D. Decision Making

1. Define the role of decision making and problem solving.

2. Compare advantages and disadvantages of group versus individual decision making.

3. Define key stakeholders and their roles in making high-quality decisions.

4. Use information management techniques, data analysis, and strategies to guide business decision making (e.g., describe current business trends, monitor internal records for business information, and interpret statistical findings).

5. Write internal and external analytical reports that examine a problem/issue and recommend an action.

6. Distinguish between making effective decisions in a team structure vs. a non-team structure and induvial versus group.

7. Discuss different decision-making styles, group decision making, the management of creative people, and techniques to maximize the effectiveness of decision making.

8. Analyze the impact and relationship of government regulations and community involvement on business management decisions.

9. Establish decision making processes that work across organizational boundaries.

10. Effectively assess and manage risk by critically evaluating costs, risks, benefits, and impact.

E. Directing

1. Identify and describe the directing function of management.

2. Cite the principles of effective delegating and directing.

3. Compare and contrast leadership styles: autocratic, democratic, and laissez-faire.

4. Explain management theories: Theories X, Y, Z, Herzberg’s, and Maslow’s Hierarchy of Needs.

5. Explain the nature of a project life cycle.

6. Prioritize tasks to be completed, develop timelines, and track progress and results.

7. Use project management skills and information technology tools to improve workflow and minimize costs.

8. Perform scheduling functions to facilitate on-time, prompt completion of work activities.

9. Manage business records to maintain needed documentation.

10. Prepare documentation of business activities to communicate with internal/external clients.

11. Establish procedures to maintain equipment and supplies.

12. Explain the concept of authority, delegation, responsibility, and accountability as a requirement of any managerial position.

F. Employee Motivation Theories

1. Identify and compare various motivation theories and explain their importance for understanding employee behavior including job rotation, job enlargement, and job enrichment.

2. Define motivation and discuss actions and techniques to maximize motivation in the workplace.

3. Describe techniques managers use to motivate individual employees (e.g., goal setting, management, cross-training, empowerment, and self-direction).

4. Coach employees and support performance with effective feedback.

5. Identify motivational lessons taught by Maslow’s theory and Herzberg’s theory.

6. Discuss extrinsic rewards and intrinsic rewards to motivate the workforce.

7. Describe the contributions of quality circles to job performance.

8. Describe how staff growth and development increase productivity and employee satisfaction.

9. Develop a program for improving employee satisfaction and performance evaluation.

10. Define empowerment and discuss principles and procedures involved with employee empowerment.

11. Discuss methods for improvement of employee morale.

12. Discuss techniques to manage stress effectively.

G. Group Dynamics

1. Describe the approaches and methods used to build teams.

2. Discuss the importance of teams and utilize new approaches for systematically involving others in team communication, team visioning, and decision making.

3. Identify the stages of group development.

4. Describe the significance of cohesiveness, roles, norms, and ostracism in regard to the behavior of group members.

5. Describe the types of work groups in the United States and discuss the various group dynamics that can be identified during this evolution.

6. Identify the characteristics of effectively functioning teams and how the supervisor encourages their development.

7. Describe the principles of managing group conflict and difficult team behaviors.

8. Show the benefits of self-managed work teams.

H. Leadership

1. Discuss the five managerial functions (e.g., planning, organizing, staffing, directing, and controlling) within the context of today’s diverse workforce.

2. Identify how technology is changing the supervisor’s job.

3. Define leadership and describe the difference in manager, leader, and supervisor.

4. Differentiate between task-centered and people-centered leadership behaviors.

5. Describe a variety of leadership theories and models.

6. Identify important qualities, behaviors, skills, and characteristics of effective leaders.

7. Evaluate business situations to determine whether the leadership style is participative, autocratic, leadership grid based or entrepreneurial.

8. Evaluate business situations for appropriate use of team leadership versus solo leadership.

I. Organizational Structure

1. Identify and provide examples of basic ownership forms and evaluate the advantages and disadvantages of each form of ownership.

2. Identify types of organization structure: line, line and staff, matrix, team, committee, and grapevine; centralized vs. decentralized; and understand organization charts.

3. Develop an organizational plan and structure to facilitate business activities.

4. Describe the types of organizational structures and discuss their relationship to the success or failure of organizations.

5. Identify management levels and describe the interaction between and among management levels.

6. Identify functions of organizational culture and describe how to create, sustain, and change an organizational culture.

7. Describe formal and informal organizational structures.

J. Organizing

1. Define organizing and empowerment.

2. Describe work specialization.

3. Identify the value of job descriptions.

4. List the steps of delegation.

5. Utilize organizational and project management skills to improve workflow, minimize costs, and monitor and evaluate business projects.

6. Explain the importance of organizing in business.

7. Describe how an organization provides accountability by delegating authority and assigning responsibility.

8. Identity major management tasks involved in implementing the work of an organization.

9. Define lean management and explain its implementation in organizations.

10. Organize business activities related to the company’s vision, mission, and values to achieve established action plans.

K. Planning

1. Compare and contrast the planning function to other management functions.

2. Explain what planning is and the importance of planning.

3. Define time management and identify effective time management guidelines.

4. Define how plans should link from the top to the bottom of the organization, utilizing the definitions of strategic and tactical planning.

5. Describe Gantt and PERT charts.

6. Identify components common to management by objective (MBO) programs.

7. Distinguish between strategic (long-term) and operational (short-term) plans.

8. Describe the strategic planning process and assess how strategic planning impacts the organization and the individual.

9. Develop and identify examples of strategic plans, tactical plans, and operational plans.

10. Create or select measurable outcomes to meet organization, program, or unity objective.

11. Explain the purpose, list the parts of a business plan, and develop an effective business plan.

12. Identify and use planning tools (e.g., business and action plans, company goals and objectives, budgets, policies, SWOT, and benchmarks) to guide the organization’s activities.

13. Identify and assess business risks, select risk-management strategies, and develop and evaluate a risk management plan.

14. Analyze the components of a financial plan.

15. List and explain the types of plans: strategic, intermediate, operational, and contingency.

L. Policies and Strategies

1. Define SWOT and conduct an organizational SWOT.

2. List the steps in strategic management.

3. Explain the nature and scope of quality management practices and frameworks (e.g., Six Sigma, ITIL, and CMMI) within a business.

4. Develop, interpret, and explain written organizational policies and procedures to help employees perform their jobs according to employer rules and expectations.

5. Determine alternative actions to take when goals are not being met.

6. Develop and implement security policies/procedures to protect employees and to minimize the chance for loss.

7. Implement personal and job site safety rules and regulations to maintain safe and healthy working conditions and environments.

M. Staffing

1. Discuss HR related laws and how they influence human resource decisions, including: Civil Rights Act, American with Disabilities Act, and the Family and Medical Leave Act.

2. Discuss the effects of the National Labor Relations Act of 1935 (Wagner Act) and the Labor Management Relations Act of 1947 (Taft-Hartley Act) on labor relations.

3. Develop a staffing plan and prioritize staffing needs to minimize costs while maximizing business contribution.

4. Discuss the purposes of the orientation and training of employees.

5. Identify methods/procedures for recruiting employees, publicizing job openings, interviewing, and selecting applicants for employment.

6. Discuss management factors and outline the procedures used in employee performance documentation, promotion, and termination including grievance processes.

7. Review legal issues (e.g., harassment, employee rights, privacy, drug testing, labor dispute, discrimination, and substance abuse) and the potential impact on the business.

8. Resolve staff issues/problems to enhance productivity and improve employee/employer relationships.

9. Define job analysis, job descriptions, and job specifications.