Chapter 2 MGMT

Theory is abstract and of no practical use in today's environment.

(A) True
(B) False

False

Theory and history are important only to top managers today.

(A) True
(B) False

False

History is simply a conceptual framework for organizing knowledge and providing a blueprint for action.

(A) True
(B) False

False

The study of management did not begin until the nineteenth century.

(A) True
(B) False

True

Classical management consists of two distinct branches: behavioral management and human
resource movement.

(A) True
(B) False

False

Companies (such as Coca-Cola, Ford, and GE) maintain significant libraries on their corporate histories that show a sense of heritage and pride.

(A) True
(B) False

True

UPS can follow drivers' movements through GPS, which is an example of the use of management
techniques derived from behavioral management.

(A) True
(B) False

False

Scientific management is conceptual and easily adapted to top-level management.

(A) True
(B) False

False

Administrative management focuses on the jobs of administrative assistants.

(A) True
(B) False

False

Janice is very concerned with worker morale, and she frequently surveys employees to determine their level of job satisfaction. She feels that people really want to work, to take more responsibility, and to make a contribution. Her approach reflects application of Theory Y.

(A) True
(B) False

True

According to Barnard's theory, managers ultimately get their authority from their job titles.

(A) True
(B) False

False

The Hawthorne studies showed that piece-rate pay was an effective way of increasing work output.

(A) True
(B) False

False

The fundamental premise of administrative management is that the social aspects of the
workplace are more important to increasing worker productivity than economic incentives.

(A) True
(B) False

False

According to McGregor, Theory X managers engage in optimistic managerial thinking.

(A) True
(B) False

False

When compared to management science, operations management is focused more on applications.

(A) True
(B) False

True

Scientific management focuses specifically on the development of scientific models.

(A) True
(B) False

False

In its current stage of development, quantitative management is able to accurately model even
such complex processes as human behavior.

(A) True
(B) False

False

The North Korean government is attempting to isolate citizens from outside influence. It is trying to create a closed system.

(A) True
(B) False

True

Open systems thinking tends to develop synergy in organizations.

(A) True
(B) False

True

Monsanto, a seed maker, offered to buy Syngenta, a pesticide maker. Monsanto apparently expected some synergy from the purchase.

(A) True
(B) False

True

The approaches to management that try to find the one best way to solve a management problem are called contingency approaches.

(A) True
(B) False

False

According to contingency theory, management is more art than science.

(A) True
(B) False

True

Few large businesses have grasped how to use social media to compete more effectively, but most would agree that social media can have a major impact on business.

(A) True
(B) False

True

To succeed, managers must monitor their environment and change to keep pace with it.

(A) True
(B) False

True

Improving quality tends to decrease productivity.

(A) True
(B) False

False

Manufacturing now accounts for well over half of the gross domestic product in the United States and plays a similarly important role in many other industrialized nations.

(A) True
(B) False

False

Which of the following statements relative to the theory and practice of management is TRUE?

(A) Academic theories have little application in business because they are not grounded in reality.
(B) The value of theory is that it provides a systematic framework for management activities.
(C) Theory is, by definition, very abstract and quite difficult to understand.
(D) Managers never develop their own theories of how to run an organization.
(E) Management theories tend to be mutually exclusive.

The value of theory is that it provides a systematic framework for management activities.

Which of the following statements correctly describes the early practice of management?

(A) The practice of management began about 100 years ago.
(B) Early economists were concerned with managerial efficiency and effectiveness.
(C) By 1900, most organizations were large.
(D) Survival was not an issue in most organizations before 1900.
(E) The scientific study of management as a field of inquiry dates back to the nineteenth century.

The scientific study of management as a field of inquiry dates back to the nineteenth century.

Which of the following historical books did not influence management?

(A) The Second World War
(B) Iliad
(C) The Prince
(D) Republic
(E) War and Peace

War and Peace

Robert Owen (1771-1858), a British industrialist, recognized the importance of the human aspect of production. Owen believed workers deserved all EXCEPT which of the following?

(A) Respect and dignity
(B) Paid time off
(C) Good working conditions
(D) Decent pay
(E) Reduced hours

Paid time off

Charles Babbage emphasized the application of mathematics to production problems; thus, his work was a forerunner of

(A) administrative management.
(B) the contingency theory.
(C) the behavioral school of management thought.
(D) operations management.
(E) the systems theory.

Operations management

\____ management focuses on the work of individuals.

(A) Administrative
(B) Behavioral
(C) Human relations
(D) Scientific
(E) Contingency

Scientific

Scientific management evolved at the dawn of the twentieth century because

(A) labor was in abundant supply.
(B) worker efficiency was low.
(C) capital was in short supply.
(D) information was rapidly changing.
(E) piecework pay systems were not working.

Worker efficiency was low

When Subway employees make a pulled pork sandwich they spread the pork from premeasured cardboard containers. This improves speed and consistency. Subway is applying the principles of

(A) scientific management.
(B) organizational behavior.
(C) management science.
(D) contingency theory.
(E) administrative management.

Scientific management

At Toyota, each task operating employees and machines perform is carefully studied to promote maximum productivity. Some tasks are examined using time and motion studies to standardize work methods. What management approach is Toyota using?

(A) Human relations management
(B) Scientific management
(C) Management science
(D) Contingency theory
(E) Administrative management

Scientific management

One of the most common complaints emergency room visitors have is the long wait while watching the staff sit and do nothing. Which of the following management approaches can hospitals
use to improve efficiency?

(A) The classical perspective
(B) Scientific management
(C) Management science
(D) Contingency theory
(E) Administrative management

scientific management

Rolf is in the business of making crowns, bridges, and dentures for dental use. It is a highly competitive business, and Rolf has decided he needs to improve efficiency. Which of the following
management approaches would be of most help to Rolf in pursuing this goal?

(A) Management science
(B) Contingency theory
(C) Administrative management
(D) The bureaucratic perspective
(E) Scientific management

Scientific management

Plummer Construction has three employees. Bob, the owner, does design, ordering, and customer interface. Paul and Bobby do demolition and construction with Paul specializing in the detailed trim work and Bobby responsible for clean up. With which of the following management approaches do their actions most agree?

(A) Management science
(B) Contingency theory
(C) Administrative management
(D) The bureaucratic perspective
(E) Scientific management

Scientific management

Who among the following was NOT associated with scientific management?

(A) Mary Parker Follett
(B) Lillian Gilbreth
(C) Henry Gantt
(D) Frederick Taylor
(E) Harrington Emerson

Mary Parker Follett

A manager who wants to use the principles of scientific management will

(A) emphasize time and motion studies.
(B) need a deep understanding of worker needs and feelings.
(C) not be required to closely supervise his or her subordinates.
(D) never actually increase worker productivity.
(E) not have to carefully select and train his or her employees.

emphasize time and motion studies

Lifeguards at Water Works pool also teach swim lessons. If they miss a lesson, they do not get paid; instead the substitute instructor gets the money. This is a form of

(A) increased efficiency.
(B) a piecework pay system.
(C) soldiering.
(D) Theory X.
(E) Theory Y.

a piecework pay system

The use of a Gantt chart to schedule workers' duties, breaks, and lunches at a day-care center is an application of one of the principles associated with

(A) the classical perspective.
(B) scientific management.
(C) management science.
(D) the contingency theory.
(E) administrative management.

scientific management

Which of the following is NOT a technique Frederick Taylor used to enhance worker
productivity?

(A) Study and time each element of the job.
(B) Design the most efficient way of doing each part of a job.
(C) Place both workers and managers on salary to reduce friction.
(D) Supervise workers and managers to make sure they follow procedures and rest only when told.
(E) Allow managers to plan the work to be done.

Place both workers and managers on salary to reduce friction

The plant manager for an electronics manufacturer is often heard saying that the way to motivate workers is to provide them with attractive wage and benefit packages. What school of thought does his view reflect?

(A) Quantitative
(B) Behavioral
(C) Classical
(D) Contingency
(E) Systems

Classical

Chester Barnard, former president of New Jersey Bell Telephone Company, made notable contributions to management regarding

(A) individual job efficiency.
(B) legitimate authority.
(C) management processes.
(D) dynamic organizations.
(E) individual rights and liberties.

legitimate authority

Paul and Bobby want to start a construction company. After being in business a few months, they guess that the most efficient way to demolish walls is for Paul to break them up and tear them
off and for Bobby to haul away the debris. Which of the following management theorists would be
most helpful to these entrepreneurs?

(A) Henry Gantt
(B) Frederick Taylor
(C) Frank Gilbreth
(D) Harrington Emerson
(E) Max Weber

Frank Gilbreth

Henri Fayol, a French industrialist, was the first to identify all of the managerial functions. Which was NOT one of them?

(A) Planning
(B) Organizing
(C) Leading
(D) Supporting
(E) Controlling

Supporting

Which of these management pioneers developed a chart for scheduling work over a span of time?

(A) Lillian Gilbreth
(B) Frederick Taylor
(C) Harrington Emerson
(D) Henry Gantt
(E) Max Weber

Henry Gantt

A Gantt chart is a

(A) listing of the steps required to complete a job.
(B) method for developing employee wage systems.
(C) device used in doing time and motion studies.
(D) checklist used in equipment maintenance.
(E) means of scheduling individual work or whole projects.

Means of scheduling individual work or whole projects

\____ focuses on the management of the entire firm as opposed to the jobs of individual workers.

(A) Management science
(B) The contingency theory
(C) Administrative management
(D) The bureaucratic perspective
(E) Scientific management

Administrative management

All of the following were primary contributors to administrative management EXCEPT

(A) Max Weber.
(B) Henri Fayol.
(C) Lyndall Urwick.
(D) Hugo Munsterberg.
(E) Chester Barnard.

Hugo Munsterberg

Which of the following is NOT one of the contributions of the classical perspective?

(A) It laid the foundation for later developments in management theory.
(B) It improved dynamic organizations.
(C) It identified important management processes and functions.
(D) It identified important management skills.
(E) It focused attention on management as a valid subject of scientific inquiry.

It improved dynamic organizations

Which of the following is one of the limitations of the classical perspective?

(A) It is inappropriate for stable organizations.
(B) It is more inappropriate for simple organizations.
(C) It is more inappropriate for dynamic organizations.
(D) It prescribed situation-specific procedures taht are not appropriate in some settings.
(E) Writers were concerned with the human element and viewed employees as resources rather than
tools.

It is more inappropriate fo dynamic organizations

Contemporary organization theory has its roots in

(A) Weber's work on bureaucracy.
(B) Fayol's 14 principles of management.
(C) Barnard's work on acceptance of authority.
(D) Taylor's work on job design.
(E) Gilbreth's work in time and motion studies.

Weber's work on bureaucracy

Barnard's theory on the acceptance of managerial authority states that

(A) supervisors have inherent authority.
(B) supervisors have charismatic authority.
(C) if subordinates view a supervisor's directive as appropriate to organizational goals, they will
accept his or her authority.
(D) so long as subordinates are able to comply with a supervisor's directives, they will accept his or
her authority.
(E) supervisors have no authority unless subordinates are willing to grant it to them.

Supervisors have no authority unless subordinates are willing to grant it to them

A law firm actually billed the mother of an employee who died almost $20,000 for work that was required to settle the son's pending cases. The organization considers itself to be more important than the individual. This example deals with one of the drawbacks to the use of the \____ perspective
of management.

(A) human resource
(B) behavioral
(C) classical
(D) contingency
(E) industrial psychology

Classical

Which of the following statements about the classical perspective of management is FALSE?

(A) The classical perspective of management laid the foundation for later management theory
developments.
(B) The classical perspective of management identified the key management processes.
(C) The classical perspective of management prescribed action unique to each situation.
(D) The classical perspective of management focused attention on management as a viable topic of
scientific inquiry.
(E) The classical perspective of management identified important management functions and skills

The classical perspective of management prescribed action unique to each situation

Industrial psychology is the practice of applying

(A) psychology in the industrial revolution.
(B) psychology to worker motivation and selection.
(C) efficiency measures to psychological output.
(D) statistical measures to psychological output.
(E) industrial advancements to medical research.

psychology to worker motivation and selection

Elton Mayo conducted experiments at Western Electric's Hawthorne plant from 1927-1932. He discovered that

(A) piece rate pay improved production.
(B) unions limit employee initiative.
(C) rate busters don't make their quota.
(D) social pressure was more important than financial incentive.
(E) chiselers assisted low producers.

social pressure was more important than financial incentive

Which of the following statements characterizes the thinking that emerged from the Hawthorne studies?

(A) If jobs are properly designed and proper incentives provided, predictable results will follow.
(B) Workers will perform their jobs as they are told to and will maximize their output so as to
increase their pay.
(C) Concern for the worker will lead to greater worker satisfaction, which will then lead to increased
output.
(D) Workers generally dislike work and need to be closely supervised to ensure adequate
productivity.
(E) People are motivated primarily by money.

Concern for the worker will lead to greater worker satisfaction, which will then lead to increased output.

Which of the following statements about the Hawthorne studies is FALSE?

(A) The Hawthorne studies initiated work in the human relations movement.
(B) The Hawthorne studies indicated the need to consider the social aspects of the organization.
(C) The Hawthorne studies showed that group norms exert a powerful influence on the members of a
group.
(D) The Hawthorne studies confirmed that incentive pay plans are an effective means of increasing
production.
(E) The Hawthorne studies found that money cannot be used as a motivator for workers.

The Hawthorne studies show that group norms exert a powerful influence on the members of a group.

All of the following were primary contributors to the behavioral management perspective EXCEPT

(A) Hugo Munsterberg
(B) Abraham Maslow
(C) Elton Mayo
(D) Henri Fayol
(E) Douglas McGregor

Henri Fayol

Which of the following statements BEST describes the human relations view of management?

(A) U.S. productivity exceeds that of any other country.
(B) Highly paid workers will be more productive.
(C) Groups are NOT as productive as the same number of individuals working independently.
(D) Happy workers are productive workers.
(E) Minorities and women are equally productive to white males.

happy workers are productive workers

When Pregna was a student she liked school, worked hard, and experienced success. As a high school teacher she assumed her students would feel the same way. A student observed that Pregna acted like a Theory Y manager. That would mean that Pregna

(A) believes that people do not like to work.
(B) is constantly directing a student that wants to avoid taking responsibility.
(C) will often threaten her students to get them to work toward school goals.
(D) believes that people naturally like work.
(E) all of these choices depending on the situation.

believes that people naturally like work

Howard Weaver manages MacLean Insurance Agency. An employee observed that Weaver acted like a Theory X manager. That would mean that Weaver believes

(A) that people prefer to be directed.
(B) in the contingency approach to management.
(C) in the importance of TQM.
(D) that people are committed to goals.
(E) that people naturally seek out work.

that people prefer to be directed

Nipurna is a high school guidance counselor. Nipurna is well liked by the staff and students whom she supervises. She recognizes that they have excellent problem-solving skills and are
committed to excellence. She lets the people she supervises assume as much responsibility as they
are capable of handling. It would appear that she

(A) takes a Theory Z approach to management.
(B) uses ideas from scientific management.
(C) believes in McGregor's approach to managing people.
(D) uses the qualitative perspective of management.
(E) is applying principles from management science.

believes in McGregor's approach to managing people.

Theory X managers believe workers are

(A) happy.
(B) lucky.
(C) lazy.
(D) needy.
(E) committed.

lazy.

Which of the following is NOT a topics in the field of organizational behavior?

(A) Job satisfaction
(B) Stress
(C) Leadership
(D) Organizational politics
(E) Operations

Operations

Dr. White is one of two emergency room physicians in charge of the staff. As a supervisor, she believes that her subordinates are valuable resources and focuses her attention on the interpersonal
processes such as group dynamics that occur in the emergency room. Her views are consistent with
the \____ management perspective.

(A) quantitative
(B) behavioral
(C) classical
(D) contingency
(E) systems

behavioral

Contributions of the behavioral management perspective include all of the following EXCEPT

(A) It challenged the view that employees are tools
(B) It furthered the belief that employees are valuable resources.
(C) It provided important insights into motivation and group dynamics.
(D) It focused managerial attention on motivation and group dynamic processes.
(E) It challenged the complexity of individual behavior and made predictions of that behavior.

it challenged the complexity of individual behavior and made predictions of that behavior.

When a manufacturing plant uses mathematical models to plan production schedules and to schedule equipment maintenance, it is drawing on

(A) scientific management.
(B) administrative management.
(C) management science.
(D) TQM.
(E) the contingency approach.

management science

The Army uses aircraft simulators to train helicopter pilots, which decreases fuel consumption, helicopter maintenance, storage requirement, and air traffic control congestion. It also improves safety. This is an example of

(A) scientific management.
(B) administrative management.
(C) operations management.
(D) behavior perspective.
(E) classical perspective.

operations management

Operations management is concerned with

(A) the application of various processes and systems used by an organization.
(B) systems created to store and provide information for managerial decision making.
(C) the scientific analysis of the work elements of a job.
(D) the development of mathematical and statistical tools and techniques for managerial decision
making.
(E) None of these choices

the application of various processes and systems used by an organization

\____ management techniques do not account for individual behaviors and attitudes.

(A) Scientific
(B) Administrative
(C) Systems
(D) Human relations
(E) Quantitative

quantitative

Which school of management thought would be most useful to a restaurant with pizza delivery that wanted to determine the most efficient routes for each of its drivers to follow?

(A) Organizational behavior
(B) Scientific management
(C) Administrative management
(D) Management science
(E) Systems management

management science

What are the two branches of quantitative management?

(A) Scientific management and administrative management
(B) Theory X and Theory Y
(C) Contingency theory and systems theory
(D) Human relations and organizational behavior
(E) Management science and operations management

management science and operations management

The Blue Rooster is a bakery. It sells 12 flavors of bread, made fresh daily. Some types of dough require time to rise. If they are handled too soon or too late the texture and flavor is ruined. The importance of scheduling indicates that The Blue Rooster should adopt the \____ perspective.

(A) organizational behavior
(B) scientific management
(C) administrative management
(D) management science
(E) systems management

management science

Which two managerial functions utilize quantitative management the most?

(A) Controlling and organizing
(B) Planning and organizing
(C) Organizing and leading
(D) Controlling and planning
(E) Leading and controlling

controlling and planning

Which of the following is one of the limitations of the quantitative management perspective?

(A) It is especially difficult to apply to most organizations.
(B) It cannot fully explain or predict the behavior of people in organizations.
(C) It is mathematically unsophisticated.
(D) Its models require only realistic assumptions.
(E) Its models require only founded assumptions.

it cannot fully explain or predict the behavior of people in organizations

Which of the following statements describes the inherent strength in the quantitative management theory?

(A) It provides numerous decision-making tools and techniques.
(B) It has realistic assumptions that permit close approximations of organizational processes.
(C) It has allowed accurate modeling of individual behaviors and attitudes.
(D) It enhances development of other management skills.
(E) None of these choices

it provides numerous decision-making tools and techniques.

\____ help managers integrate and enlarge their understanding of the three principal schools of
management thought.

(A) Administrative management and scientific management
(B) Systems theory and contingency theory
(C) The human relations movement and organizational behavior
(D) Management science and operations management
(E) Scientific management and bureaucratic management

systems theory and contingency theory

Which of the following is an output?

(A) Operating system
(B) Service
(C) Information resource
(D) Complaint form
(E) Control system

service

According to the systems perspective of management, which of the following is NOT an example of a transformation process for an organization?

(A) Employee behavior
(B) Control systems
(C) Administrative systems
(D) Technology
(E) Operating systems

Employee behavior

After ordering from Amazon, customers are asked to review the product and the seller. This is an example of which part of the system?

(A) Inputs
(B) Outputs
(C) Feedback
(D) Transformation processes
(E) Material

feedback

A system that actively interacts with its environment is best described as a(n)

(A) subsystem.
(B) closed system.
(C) transformation system.
(D) management information system.
(E) open system.

open system

Multiplex Cinemas is a theater with 14 viewing rooms. It employs 50 people. Using the systems theory, it would be classified as

(A) an entropic system.
(B) a subsystem.
(C) either a system or a subsystem depending on the frame of reference.
(D) either an open or a closed system depending on the frame of reference.
(E) a closed system.

either a system or a subsystem depending on the frame of reference.

A new animated children's show does not even get presented to executives unless the merchandising is lined up. The executives are looking for a(n)

(A) open system.
(B) closed system.
(C) subsystem.
(D) synergy.
(E) entropy.

synergy

The \____ stresses the importance of environmental influences on the organization.

(A) quantitative management theory
(B) open system concept
(C) behavioral management theory
(D) human relations movement
(E) concept of synergy

open system concept

The appropriate management behavior that depends on the unique situation is a \____
perspective.

(A) classical
(B) universal
(C) behavioral
(D) quantitative
(E) contingency

contingency

The Taliban seek to isolate women and control every aspect of their lives. The Taliban try to create \____ that do not interact with the external environment.

(A) subsystems
(B) closed systems
(C) transformation systems
(D) resource-independent systems
(E) open systems

closed systems

Harley-Davidson puts its brand on everything from motorcycles to toys and clothes. It is benefiting from

(A) equifinality.
(B) synergy.
(C) entropy.
(D) a closed system.
(E) subsystem interdependence.

synergy

TransAmerica Business is a consulting firm. When hired for a job, the company has financial auditors, tax experts, management consultants, computer experts, and legal staffers who can work
together to solve whatever problems face the hiring firm. This team approach to problem solving is
an example of \____ at work.

(A) equifinality
(B) synergy
(C) entropy
(D) a closed system
(E) subsystem interdependence

synergy

The broader the solutions, the greater the creativity and possibility for innovation. This is a benefit of which perspective?

(A) Classical
(B) Universal
(C) Quantitative
(D) Contingency
(E) Behavioral

contingency

The United States Postal Service has been losing money for years. Social media have created many alternatives for communication. The Postal Service's decline is an example of

(A) closed system inversion.
(B) open system thinking.
(C) synergy.
(D) subsystem failure.
(E) entropy.

Entropy

Fortis Healthcare Ltd. bought 10 private hospitals in India from Wockhardt Hospitals Ltd. The purchase expands Fortis' operations in India. What was Fortis hoping to gain by the interaction of these new businesses and its existing business?

(A) Synergy
(B) Closed system inversion
(C) Entropy
(D) Subsystem enhancement
(E) Open system conversion

synergy

When one firm buys out another because it is thought that the two firms will complement each other in such a way that the output of the combined firms will be greater than the sum of the current individual outputs of the two companies, the managers are counting on

(A) synergy.
(B) closed system inversion.
(C) entropy.
(D) subsystem enhancement.
(E) open system conversion.

synergy

Newspaper circulation had been declining for years. TLC cable station aired the show Extreme Couponing that shows cutting coupons from newspaper advertisements. Suddenly demand for
newspapers changed course. Newspapers are benefiting from the \____ created by retailers putting
coupons in the advertisements.

(A) synergy
(B) closed system inversion
(C) entropy
(D) subsystem enhancement
(E) open system conversion.

synergy

Edward Bingaman was overheard telling one of his friends, "You always think there is one way to solve a problem. It just doesn't work that way. You have to use your head and try different
approaches under different circumstances." What management theory is Bingaman advocating?

(A) Systems theory
(B) Organizational behavior
(C) Administrative management
(D) Quantitative management
(E) Contingency theory

Contingency theory

The theory based on the idea that the best managerial actions in a given situation depend on the elements of that situation is known as

(A) the equifinality theory.
(B) Theory X and Y.
(C) the contingency approach.
(D) the systems theory.
(E) quantitative management.

the contingency approach

Staff Sergeant Tyra Bradford is a platoon sergeant. She uses whatever style of management seems to fit the situation. Her management style fits which theory of management?

(A) Bureaucratic management
(B) TQM
(C) The contingency approach
(D) Theory X and Y
(E) Qualitative management

the contingency appraoch