NEOCLASSICAL ORGANIZATIONAL THEORIES

Which organizational theory emphasizes the human factor and the role of informal organization?
A. Classical Theory
B. Neoclassical Theory
C. Systems Theory
D. Scientific Management

B. Neoclassical Theory

The Hawthorne Effect refers to:
A. Improved productivity due to financial incentives
B. Increased performance because workers are observed
C. Decline in motivation due to strict supervision
D. Productivity based solely on better tools

B. Increased performance because workers are observed

Elton Mayo’s Hawthorne Experiment highlighted the importance of:
A. Strict hierarchical control
B. Physical work conditions alone
C. Social factors and employee value
D. Centralization of authority

C. Social factors and employee value

Chester Barnard described organizations as:
A. Machines designed to maximize profit
B. Bureaucratic systems of authority
C. Cooperative systems requiring communication and shared purpose
D. Individual decision-making units

C. Cooperative systems requiring communication and shared purpose

According to Barnard authority is established when:
A. The manager has a high position
B. Subordinates willingly accept orders
C. Orders are always enforced through punishment
D. The board of directors approves decisions

B. Subordinates willingly accept orders

Herbert Simon introduced the concept of:
A. Optimizing decision-making
B. Cognitive biases
C. Bounded rationality and satisficing
D. Scientific management

C. Bounded rationality and satisficing

In bounded rationality decision-makers:
A. Always achieve the best possible outcome
B. Seek satisfactory solutions given limited information
C. Disregard available data
D. Focus only on maximizing efficiency

B. Seek satisfactory solutions given limited information

McGregor’s Theory X assumes that workers:
A. Are naturally lazy and need control
B. Are self-motivated and responsible
C. Desire personal growth and autonomy
D. Perform better when decentralized

A. Are naturally lazy and need control

McGregor’s Theory Y assumes that workers:
A. Need constant supervision
B. Avoid responsibility at all costs
C. Can be self-directed and creative if motivated
D. Prefer rigid hierarchies

C. Can be self-directed and creative if motivated

Which principle of Neoclassical theory emphasizes employee involvement in decisions?
A. Bureaucracy
B. Centralization
C. Decentralization and participation
D. Scientific observation

C. Decentralization and participation

Chris Argyris’ Growth Perspective suggests organizations should:
A. Treat employees as passive workers
B. Inhibit employee growth for consistency
C. Encourage active growth and development
D. Focus solely on structure

C. Encourage active growth and development

An organization where decisions are made closer to employees and teams reflects:
A. Centralization
B. Decentralization
C. Mechanistic structure
D. Bureaucracy

B. Decentralization

If a manager believes employees dislike work and must be coerced they are practicing:
A. Theory Y
B. Hawthorne Effect
C. Theory X
D. Growth Perspective

C. Theory X

Which of the following best describes the Hawthorne Effect in modern workplaces?
A. Employees improve when they believe management cares about them
B. Employees perform worse under observation
C. Technology eliminates the need for supervision
D. Workers prefer strict rules over autonomy

A. Employees improve when they believe management cares about them

What was a major limitation revealed by Neoclassical Theory?
A. Classical principles were not universally applicable
B. Human factors are unimportant
C. Formal structures should be eliminated
D. Incentives are the only motivator

A. Classical principles were not universally applicable

Which neoclassical thinker focused on communication and group dynamics as crucial for organizations?
A. Elton Mayo
B. Herbert Simon
C. Chester Barnard
D. Max Weber

C. Chester Barnard

Which principle emphasizes that employees' informal relationships influence organizational effectiveness?
A. Division of labor
B. Informal organization
C. Authority hierarchy
D. Bureaucracy

B. Informal organization

In a company where managers encourage teamwork, innovation, and employee growth, the philosophy most likely aligns with:
A. Theory X
B. Theory Y
C. Scientific Management
D. Mechanistic Approach

B. Theory Y

What did the Hawthorne studies reveal about productivity?
A. It depends only on technology
B. It improves when employees feel valued and observed
C. It declines when workers are left alone
D. It increases only with higher wages

B. It improves when employees feel valued and observed

Which neoclassical concept matches the idea that managers cannot process all information and must make satisfactory decisions?
A. Scientific management
B. Bounded rationality
C. Informal organization
D. Growth perspective

B. Bounded rationality

A company ignores employee development and treats staff as replaceable parts. According to Argyris this approach will:
A. Help growth
B. Hinder growth
C. Promote autonomy
D. Improve creativity

B. Hinder growth

Which principle highlights the importance of communication channels in group cooperation?
A. Division of work
B. Scalar chain
C. Focus on communication and group dynamics
D. Bureaucratic control

C. Focus on communication and group dynamics

If an employee performs better when their supervisor shows interest in their ideas this is an example of:
A. Bureaucratic management
B. Classical theory
C. Hawthorne Effect
D. Theory X assumption

C. Hawthorne Effect

Which of the following is TRUE about Neoclassical Theory?
A. It rejects all contributions of Classical Theory
B. It ignores human relations
C. It modernizes Classical ideas by adding psychological and behavioral insights
D. It emphasizes only efficiency

C. It modernizes Classical ideas by adding psychological and behavioral insights

You are a manager who believes employees are naturally creative, responsible, and seek growth. Which theory guides your leadership?
A. Theory X
B. Growth Perspective
C. Theory Y
D. Bounded Rationality

C. Theory Y