Chapter 2 Management Yesterday and Today

TRUE/FALSE QUESTIONS
ISTORICAL !AC"#ROUN$ OF MANA#EMENT

1. According to Adam Smith, division of labor was an important concept. %Tr&e' easy' p( 2)* 2. The division of labor is also referred to by the term job specification. %Fa+se' easy' p( 2)* 3. In the Industrial evolution, machine power began substituting for human power. %Tr&e' easy' p( 2,* !. The Industrial evolution began in the nineteenth century. "Fa+se' moderate' p( 2,*
SCIENTIFIC MANA#EMENT

#. Principles of Scientific Management was written by $rederic% &inslow Taylor. %Tr&e' moderate' p( -.* '. ()mployee motivation* is the phrase most associated with scientific management. %Fa+se' moderate' p( -.* +. The primary issue that motivated Taylor to create a more scientific approach to management was wor%er satisfaction. %Fa+se' moderate' p( -./-0* ,. -ased on his scientific management principles, Taylor suggested the incentive pay principle. %Tr&e' moderate' p( -0* .. /eert 0ofstede is associated with the scientific management approach. %Fa+se' moderate' p( -0* 11. $ran% /ilbreth2s best3%nown contribution to scientific management concerned selecting the best wor%er for a particular 4ob. %Fa+se' moderate' p( -0* 11. /ilbreth is best %nown for (the one best way.* %Fa+se' moderate' p( -.* 12. $rederic% Taylor is most associated with the principles of scientific management. %Tr&e' easy' p( -.* 2,

13. 0enri $ayol was among the first researchers to use motion pictures to study hand3and3body motions. %Fa+se' moderate' p( -0*
#ENERAL A$MINISTRATI1E T EORY

1!. /eneral administrative theory focuses only on managers and administrators. %Fa+se' moderate' p( -2* 1#. 0enri $ayol identified five functions of managers5 planning, organi6ing, commanding, coordinating, and controlling. %Tr&e' moderate' p( -2* 1'. The 1! principles of management are associated with $ayol. %Tr&e' moderate' p( -2* 1+. An organi6ation that has a division of labor, a clearly defined hierarchy, detailed rules, and impersonal relationships would be described as a bureaucracy. %Tr&e' moderate' p( -2* 1,. &eber2s bureaucracy is a lot li%e scientific management. %Tr&e' moderate' p( --*
QUANTITATI1E A22ROAC

1.. The 7uantitative approach to management has also been labeled process research. %Fa+se' moderate' p( -3* 21. 8inear programming is a techni7ue that managers use to improve resource allocation decisions. %Tr&e' moderate' p( -4*
TO5AR$ UN$ERSTAN$IN# OR#ANI6ATIONAL !E A1IOR

21. 9oncern for employee productivity is most closely associated with the organi6ational behavior approach. %Fa+se' moderate' p( -7* 22. -arnard, $ollett, :unsterberg, and ;wen are all theorists associated with the early organi6ational behavior approach. %Tr&e' moderate' p( -7* 23. 0ugo :unsterberg created the field of social psychology. %Tr&e' moderate' p( -7* 2!. :ary <ar%er $ollett was the first advocate of the human resources approach to management. %Fa+se' moderate' p( -7* 2.

2#. 9hester -ernard was the first to argue that organi6ations are open systems. %Tr&e' moderate' p( -7* 2'. The most important contribution to the field of organi6ational behavior came from studies conducted by the =niversity of :ichigan. %Fa+se' moderate' p( -8* 2+. The 0awthorne Studies were performed at the /eneral :otors plant beginning in 1.2!. %Fa+se' easy' p( -8* 2,. $ollett is the scientist who is most closely associated with the 0awthorne Studies. %Fa+se' moderate' p( -8*
CURRENT TREN$S AN$ ISSUES

2.. An organi6ation whose whole e>istence is made possible by and revolves around the Internet is categori6ed as e3business enhanced. %Fa+se' moderate' p( 37? AACS!9 Te:hno+ogy* 31. According to the te>tboo%, total 7uality management is a philosophy of management driven by continual improvement and responding to customer needs and e>pectations. %Tr&e' moderate' p( 3)* MULTI2LE/C OICE QUESTIONS $or each of the following choose the answer that most completely answers the 7uestion.
ISTORICAL !AC"#ROUN$ OF MANA#EMENT

31. &hich of the following is not a reason why the division of labor enhances productivity@ a. It increases wor%er s%ill and de>terity. b. It saves time lost in changing tas%s. c. It encourages labor3saving inventions. d. It re7uires strict management control over wor%er time and motion. %d' moderate' p( 2)* 32. An e>ample of early uses of the functions of management is the AAAAAAAAAAAAAAA. a. development of gunpowder b. arsenal of Benice where ships were built c. Artist2s evolution in 1,13 d. &ar of 1,12 %;' moderate' p( 2)* 33. In Wealth of Nations, Adam Smith described the brea%down of 4obs into narrow and repetitive tas%s and called this AAAAAAAAAAAAAA. 31

a. assembly lines b. wor% denomination c. division of labor d. greatest common factor of wor% %:' :ha++eng<ng' p( 2)* 3!. &hich of the following was a ma4or result of the Industrial evolution@ a. cottage industry b. water power c. factory manufacturing d. critical thin%ing %:' :ha++eng<ng' p( 2,*
SCIENTIFIC MANA#EMENT

3#. $rederic% Taylor performed most of his wor% in AAAAAAAAAAAAAAA. a. grape vineyards in 9alifornia b. steel companies in <ennsylvania c. auto assembly plants near Cetroit d. cotton gins in Alabama %;' easy' p( -.* 3'. -efore Taylor, which of the following approaches was used to establish guidelines for an individual2s wor%@ a. scientific analysis b. rule3of3thumb method c. process distillation d. mathematical modeling %;' easy' p( -.* 3+. $rederic% Taylor advocated which of the following management principles@ a. &or% and responsibility should be divided almost e7ually between managers and wor%ers. b. &or%ers should perform all wor%, while management should maintain responsibility for the wor% performed. c. :anagers should perform more wor% that wor%ers, because managers are generally more s%illed. d. &or%ers can be highly productive even if they are randomly selected for a 4ob. %a' moderate' p( -0* 3,. $ran% and 8illian /ilbreth2s wor% began in the area of AAAAAAAAAAAAAAAAA. a. laying bric%s b. cutting lumber c. installing rudimentary electrical wiring d. assembly lines %a' easy' p( -0*

31

3.. $ran% and 8illian /ilbreth were the first researchers to utili6e motion pictures to the study of AAAAAAAAAAAAA. a. reactions of wor%ers in group settings b. hand3and3body motions c. wor%ers reactions to pay increases d. groups of wor%ers in tense situations where they are assigning each other tas%s %;' moderate' p( -0* !1. &hich of the following phrases is most associated with scientific management@ a. management relations b. one best way c. supply and demand d. 7uality control %;' moderate' p( -0* !1. The primary issue that motivated Taylor to create a more scientific approach to management was AAAAAAAAAAAAAA. a. wor%er efficiency b. wor%er effectiveness c. wor%er absenteeism and turnover d. wor%place safety %a' moderate' p( -.* !2. <robably the best3%nown e>ample of Taylor2s scientific management was the AAAAAAAAAAAAAA e>periment. a. horseshoe b. pig iron c. blue collar d. fish tan% %;' moderate' p( -.* !3. -ased on his scientific management principles, Taylor suggested which of the following pay principles@ a. monthly salary b. monthly salary with bonus c. seniority pay d. incentive pay %d' d<==<:&+t' p( -0* !!. A (therblig* concerns what scientific management wor%place issue@ a. optimum temperature for wor%place efficiency b. basic hand motions c. optimum speed for basic motions d. weightDmovement ratios %;' moderate' p( -2*
#ENERAL A$MINISTRATI1E T EORY

32

!#. /eneral administrative theory focuses on AAAAAAAAAAAAAAAA. a. the entire organi6ation b. managers and administrators c. the measurement of organi6ational design relationships d. primarily the accounting function %a' easy' p( -2* !'. /eneral administrative theorists devoted their efforts to AAAAAAAAAAAAAAAAA. a. developing mathematical models to improve management b. improving the productivity and efficiency of wor%ers c. ma%ing the overall organi6ation more effective d. emphasi6ing the study of human behavior in organi6ations %:' moderate' p( -2* !+. $ayol was interested in studying AAAAAAAAAAA, whereas Taylor was interested in studying AAAAAAAA. a. senior managers? effective managers b. all managers? first3line managers c. bureaucratic structures? chains of command d. administrative theory? macroeconomics %;' d<==<:&+t' p( -2* !,. &hich of the following is not one of $ayol2s principles of management@ a. division of wor% b. unity of command c. discipline d. e7uality %d' d<==<:&+t' p( -2* !.. According to &eber2s ideal bureaucracy, AAAAAAAAAAAAAA occurs when employees are placed in 4obs based on technical 7ualifications. a. career orientation b. authority hierarchy c. impersonality d. formal selection %d' moderate' p( -2* #1. -ureaucracy is defined as AAAAAAAAAAAAAAAAAA. a. division of labor b. clearly defined hierarchy c. detailed rules and regulations d. all of the above %d' moderate' p( -2*
QUANTITATI1E A22ROAC

form

of

organi6ation

characteri6ed

by

33

#1. The 7uantitative approach to management has also been referred to by which of the following names@ a. sales optimi6ation b. operations research c. managerial theory d. statistical reformulation %;' easy' p( -3* #2. The 7uantitative approach evolved from the development of mathematical and statistical solutions to AAAAAAAAAAAAAA. a. waiting line problems at fast3food restaurants in the 1.'1s b. military problems in &orld &ar II c. clogged telephone circuits during the 1.31s d. production management problems in the 1.#1s %;' easy' p( -3* #3. The 7uantitative approach involves applications of AAAAAAAAAAAAAAA. a. statistics, information models, and computer simulations b. psychology testing, focus groups, and mathematics c. optimi6ation models, interviews, and 7uestionnaires d. surveys, strategic planning, and group problem solving %a' moderate' p( -4* #!. Euantitative techni7ues have become less intimidating with the advent of AAAAAAAAAAAAAAA. a. training of these techni7ues in college b. digital image processing c. sophisticated computer software d. managers with better mathematical s%ills %:' d<==<:&+t' p( -4* ##. AAAAAAAAAAAAAA is a techni7ue that managers use to improve resource allocation decisions. a. 8inear programming b. &or% scheduling c. )conomic order 7uantity modeling d. egression analysis %a' moderate' p( -4* #'. Cecisions on determining a company2s optimum inventory levels have been significantly influenced by AAAAAAAAAAAAAAAAA. a. linear programming b. wor% scheduling c. economic order 7uantity modeling d. regression analysis %:' moderate' p( -4* #+. &hich of the following would not be associated with the 7uantitative approach to management@ 3!

a. information models b. critical3path scheduling c. systematic motivation of individuals d. linear programming %:' moderate' p( -4* #,. )ach of the following represents a drawbac% to the 7uantitative approach e>cept AAAAAAAAAAAAAAAAA. a. managers are unfamiliar with 7uantitative tools b. managers cannot relate easily to 7uantitative models c. managers tend to be intimidated by 7uantitative tools d. 7uantitative problems are more widespread than behavioral problems %d' moderate' p( -4*
TO5AR$ UN$ERSTAN$IN# OR#ANI6ATIONAL !E A1IOR

#.. A company that sees its employees as the driving force behind the organi6ation probably follows which managerial approach@ a. wor%place diversity b. organi6ational behavior c. 7uantitative analysis d. total 7uality management %;' moderate' p( -7* '1. &hich of the following is most closely associated with the organi6ational behavior approach to management@ a. bureaucracy b. concern for employee motivation c. scientific methodology d. interdependent systems %;' moderate' p( -7* '1. According to the te>tboo%, which of the following early advocates of organi6ational behavior was concerned about deplorable wor%ing conditions@ a. obert ;wens b. 0ugo :unsterberg c. :ary <ar%er $ollett d. 9hester -arnard %a' d<==<:&+t' p( -7* '2. &hich of the following early advocates of organi6ational behavior created the field of industrial psychology, the scientific study of people at wor%@ a. obert ;wens b. 0ugo :unsterberg c. :ary <ar%er $ollett d. 9hester -arnard %;' d<==<:&+t' p( -7* 3#

'3. AAAAAAAAAAAAAA was one of the first to recogni6e that organi6ations could be viewed from the perspective of individual and group behavior. a. obert ;wens b. 0ugo :unsterberg c. :ary <ar%er $ollett d. 9hester -arnard %:' moderate' p( -7* '!. &hich of the following early advocates of organi6ational behavior was the first to argue that organi6ations were open systems@ a. obert ;wens b. 0ugo :unsterberg c. :ary <ar%er $ollett d. 9hester -arnard %d' moderate' p( -7* '#. &hich four theorists are associated with the early organi6ational behavior approach@ a. -arnard, $ollett, :unsterberg, and ;wen b. :unsterberg, Taylor, $ayol, and $ollett c. Taylor, $ayol, &eber, and -arnard d. $ollett, -arnard, :unsterberg, and &eber %a' moderate' p( -7* ''. &hich of the following was a ma4or contribution of 0ugo :unsterberg@ a. 0e was a social reformer. b. 0e created the field of industrial psychology. c. 0e was interested in individual and group behavior. d. 0e viewed organi6ations as social systems re7uiring human cooperation. %;' moderate' p( -7* '+. :unsterberg2s wor% in industrial psychology is easily connected with what other management approach@ a. general administrative b. classical management c. systems d. scientific management %d' d<==<:&+t' p( -7* ',. 9ontemporary management practices that emphasi6e wor% groups as a means to increasing productivity can be traced to which of the following authors@ a. obert ;wen b. :ary <ar%er $ollett c. 9hester -arnard d. 0ugo :unsterberg %;' moderate' p( -7* '.. &hich of the following is true concerning the management beliefs of -arnard@ 3'

a. )mployee ability and motivation remain fi>ed within a single employee, but vary across different employees. b. To improve productivity, management should concentrate on selecting the best employee rather than motivating current employees. c. <roductivity is best achieved by insulating the organi6ation from e>ternal constituencies. d. ;rgani6ations are social systems that re7uire human cooperation. %d' d<==<:&+t' p( -7* +1. &ithout 7uestion, the most important contribution to the developing field of organi6ational behavior came out of the AAAAAAAAAAAAAAAA. a. Taylor studies b. <orter studies c. <ar%er studies d. 0awthorne Studies %d' moderate' p( -8* +1. The 0awthorne Studies were initially devised to study AAAAAAAAAAAAAA. a. productivity levels of groups versus individuals b. the effect of noise on employee productivity c. the effect of illumination levels on employee productivity d. the effect of cooperative versus competitive organi6ational environments on productivity %:' moderate' p( -8* +2. &hat scientist is most closely associated with the 0awthorne Studies@ a. Adams b. :ayo c. 8awler d. -arnard %;' easy' p( -8* +3. ;ne outcome of the 0awthorne Studies could be described by which of the following statements@ a. Social norms or group standards are the %ey determinants of individual wor% behavior. b. :oney is more important than the group on individual productivity. c. -ehavior and employee sentiments are inversely related. d. Security is relatively unimportant. %a' moderate' p( -8*
T E SYSTEMS A22ROAC

+!. A system can best be defined as AAAAAAAAA. a. a grouping of separate and independent parts b. a set of interrelated and interdependent parts c. an ordering of distinct and unrelated parts d. a set of connected but nonfunctional parts 3+

%;' moderate' p( -)* +#. )ach of the following terms could be used to characteri6e systems e>cept AAAAAAAA. a. unified b. fragmented c. whole d. set %;' moderate' p( -)* +'. &hich of the following types of systems does not interact with its environment@ a. fluid b. diagrammatic c. closed d. resource3driven %:' moderate' p( -)* ++. &hich of the following is considered a systems input@ a. management activities b. financial results c. operations methods d. raw materials %d' moderate' p( -)* +,. In an open organi6ational system, products and services produced by the organi6ation can be considered as which of the following@ a. capital e>penditures b. transformation processes c. outputs d. inputs %d' moderate' p( -)* +.. ;pen organi6ations are those that AAAAAAAAA. a. interact with their environments b. consist of interdependent parts c. are influenced by their environments, but do not interact with them d. operate independently of their environments %a' moderate' p( -)* ,1. According to the systems approach, effective management must ensure that AAAAAAAA. a. its organi6ation succeeds in ignoring governmental regulations b. its organi6ation becomes self3contained c. %ey departments within an organi6ation have the greatest efficiency d. all interdependent units within an organi6ation operate together %a' moderate' p( -)*
T E CONTIN#ENCY A22ROAC

3,

,1. A manager who believes that no one set of principles applies e7ually to all wor% environments is most li%ely advocating which management approach@ a. contingency b. wor%place diversity c. organi6ational behavior d. %nowledge management %a' easy' p( -,* ,2. The contingency approach to management is based upon which of the following@ a. similarities found within all organi6ations b. a set of universal management rules c. e>ceptions to generally accepted management principles d. %nowledge developed based on sophisticated logic models %:' moderate' p( -,* ,3. )ach of the following represents a popular contingency variable e>cept AAAAAAAA. a. organi6ation si6e b. individual differences c. environmental uncertainty d. ideal bureaucratic structure %d' moderate' p( --*
CURRENT TREN$S AN$ ISSUES

,!. The fastest growth in the =.S. AAAAAAAAAAAAAAAA. a. African3American wor%ers b. Asian wor%ers c. Fapanese wor%ers d. /erman wor%ers %;' moderate' p( 3-? AACS!9 $<>ers<ty*

wor%force

is e>pected

to

be among

,#. &or%force diversity refers to differences in employees such as AAAAAAAAAAAAAAAA. a. gender b. race c. age d. all of the above %d' moderate' p( 3-' AACS!9 $<>ers<ty* ,'. &or%force diversity will be significantly affected in the ne>t decade by AAAAAAA. a. increases in the teen wor%er population b. the aging of the =.S. population c. increases in the =.S. divorce rate d. increases in =.S. birthrates %;' moderate' p( 3-? AACS!9 $<>ers<ty* ,+. TE: differs from earlier management theories because AAAAAAAAAAAAAAA. a. employee layoffs are considered acceptable provided that morale remains stable 3.

b. high 7uality and low costs are both seen as important to productivity c. rewor%ed production items are handled by special teams assigned to this tas% d. low costs are viewed as the only road to increased productivity %;' :ha++eng<ng' p( 3)* ,,. A learning organi6ation develops the capability to AAAAAAAAAAAAAA. a. add new training programs even when competitors are going ban%rupt b. accept the conventional wisdom of the industry c. continuously learn, adapt, and change d. attract new employees who wor% well in teams %:' moderate' p( 37/38* ,.. AAAAAAAAAA is the process of developing businesses to pursue trends and changes that no one else has responded to previously. a. )ntrepreneurship b. Civision of labor c. )volution d. )3commerce %a' easy' p( 33* .1. Gnowledge management involves encouraging the members of the organi6ation to AAAAAAAAAAAAAAAA. a. improve the educational level of the average employee b. develop new training programs to help new employees learn their 4obs c. develop a corporate university li%e 0amburger =niversity at :cConald2s d. systematically gather information and share it with others %d' moderate' p( 38* .1. The sales and mar%eting component of e3business is %nown as AAAAAAAAAAAAA. a. intranet b. evolution c. e3commerce d. e>tranet %:' easy' p( 34? AACS!9 Te:hno+ogy* .2. AAAAAAAA and AAAAAAAA were two of the pioneers in the area of total 7uality management. a. $ayol? &eber b. Taylor? /ilbreth c. ;wen? :unsterberg d. Ceming? Furan %d' moderate' p( 3)* .3. &hich of the following is not one of the three important themes that stand out in the definition of entrepreneurship@ a. the pursuit of opportunities b. the theme of innovation c. the importance of conformity with tradition !1

d. the theme of growth %:' moderate' p( 33/34* .!. &hich of the following types of e3businesses uses the Internet to perform its traditional business functions better, but not to sell anything@ a. e3business enhanced organi6ation b. e3business enabled organi6ation c. total e3business organi6ation d. theoretical e3business organi6ation %;' moderate' p( 37? AACS!9 Te:hno+ogy* .#. 8evi Strauss H 9o. is categori6ed as which of the following@ a. e3business enhanced b. e3business enabled c. total e3business d. theoretical e3business %;' moderate' p( 37? AACS!9 Te:hno+ogy* .'. An internal organi6ational communication system that uses Internet technology and is accessible only by organi6ational employees to communicate with its global wor%force is called a"nI AAAAAAAAAAAAAAA. a. e>tranet b. local area networ% c. intranet d. hypernet %:' moderate' p( 37? AACS!9 Te:hno+ogy* .+. An organi6ation whose entire e>istence is made possible by and revolves around the Internet is categori6ed as which of the following@ a. e3business enhanced b. e3business enabled c. total e3business d. theoretical e3business %:' moderate' p( 37* .,. &hich of the following involves changing, revolutioni6ing, transforming, or introducing new products or services or new ways of doing business@ a. organi6ational structures b. innovation c. organi6ational systems d. ethical standards %;' moderate' p( 33* ... All of the following are characteristic of learning organi6ations AAAAAAAAAAAAAAA. a. positive attitudes toward change b. viewing managers as enablers c. emphasi6ing the importance of %nowledge for competitive advantage !1 e>cept

d. fear of ma%ing mista%es %d' moderate' p( 38* 111. AAAAAAAAAAAAAA is the generic term used to describe the 7uality revolution that swept through both the business and public sectors during the 1.,1s and 1..1s. a. )thno 7uality management b. Total 7uality management c. 0yper 7uality management d. <artial 7uality management %;' moderate' p( 3)* 111. All of the following are characteristics of total 7uality management e>cept AAAAAAAAAAAAAAA. a. intense focus on the competition b. concern for continual improvement c. improvement in the 7uality of everything the organi6ation does d. accurate measurement e. empowerment of employees %a' moderate' p( 3)* 112. A AAAAAAAAAAAAAA organi6ation is one that has developed the capacity to continuously learn, adapt, and change. a. virtual b. learning c. traditional d. bureaucratic %;' moderate' p( 37/38* 113. AAAAAAAAAAAAAA involves cultivating a learning culture where organi6ational members systematically gather %nowledge and share it with others in the organi6ation so as to achieve better performance. a. Systems management b. Software management c. Technical management d. Gnowledge management %d' moderate' p( 38* 11!. )ach of the following might be e>pressed by employees of a learning organi6ation e>cept AAAAAAAAAAAAAAAA. a. (if it was invented or reinvented here, re4ect it* b. (if you aren2t changing, you won2t be wor%ing for long* c. (innovation is the responsibility of all employees* d. (good managers are directive and controlling* %d' d<==<:&+t' p( 38* 11#. Euality management is driven by a focus AAAAAAAA. a. wor%place diversity b. wor%place spirituality !2

c. continual improvement d. %nowledge management %:' moderate' p( 3)* SCENARIOS AN$ QUESTIONS $or each of the following choose the answer that most completely answers the 7uestion.
SCIENTIFIC MANA#EMENT

A 8oo% -ac% "ScenarioI 9indy Schult6, tired from wor%ing with customers all day, decided to ta%e a 1#3minute nap. She needed to clear her head before the !51# <.:. managers2 meeting. 0er company had recently begun a reengineering process. They were going through many changes that re7uired e>tensive management input. As she leaned bac% in her chair, 9indy wondered if management processes had always been this way. She fell asleep and dreamed that she was traveling in a time machine with (:r. <eabody* as her guide. :r. <eabody too% 9indy bac% through management history. 11'. 9indy visited a boo%store that was holding a boo% signing. She saw that the title of the boo% was Principles of Scientific Management, which had 4ust been published. 9indy concluded that the time period must be AAAAAAAAAAAAAAAA. a. early 1,11s b. late 1,11s c. early 1.11s d. mid 1.11s %:' easy' p( -.* 11+. 9indy admired the wor%s of Taylor and /ilbreth, two advocates of AAAAAAAAAAAAAAA. a. scientific management b. organi6ational behavior c. human resource management d. motivation %a' moderate' p( -./-0* 11,. 9indy was impressed to learn that $rederic% Taylor2s e>periments succeeded in improving wor%er productivity by AAAAAAAAAAAAAAA percent or more. a. 2# b. #1 c. 131 d. 211 %d' moderate' p( -.* 11.. 9indy spent some time visiting with AAAAAAAAAA, a researcher who also contributed to management science by being among the first to use motion picture films to study hand3and3body motions. a. 0enry /antt !3

b. :a> &eber c. 9hester -arnard d. $ran% /ilbreth %d' moderate' p( -0* :anagement Intern "ScenarioI As an intern, Feanna is perple>ed as she hears different managers discuss their views on particular problems. She has been assigned to several departments during her internship. 111. In trying to increase productivity, one manager utili6es analysis of basic wor% tas%s to determine the (one best way* for different 4obs to be done. It is most li%ely that this manager has studied the wor% of AAAAAAAAAAAAAAA. a. $rederic% Taylor b. )dward Ceming c. :a> &eber d. 0enri $ayol %a' :ha++eng<ng' p( -.* 111. As she tal%ed to another manager, Feanna learned a view of the organi6ation that stressed strict division of labor, formal rules and regulations, and impersonal application of those rules and regulations. This manager was a student of AAAAAAAAAAAAAAAAA. a. the Industrial evolution b. 7uantitative methods c. ob4ectivism d. bureaucracy %d' moderate' p( -2*
TO5AR$ UN$ERSTAN$IN# OR#ANI6ATIONAL !E A1IOR

The 0awthorne Studies "ScenarioI <aul was assigned a research pro4ect in the field of organi6ational behavior. 0e decided to write his report on the 0awthorne Studies. After writing his report, <aul gave an oral presentation to his management class. 112. <aul e>plained that the 0awthorne Studies pro4ect began as a test to determine the most productive AAAAAAAAAAAAAAAAA. a. reward structure for employees b. level of lighting in the wor%place c. number of brea%s during a shift d. number of days away from wor% per month %;' moderate' p( -8* 113. In describing the research pro4ect, <aul informed his classmates that the pro4ect studied AAAAAAAAAAAAAAAAA. a. employee behaviors and sentiments !!

b. group influences on individual behavior c. how group standards affect individual behavior d. all of the above %d' d<==<:&+t' p( -8* 11!. <aul2s classmates were most li%ely surprised to learn about which of the following conclusions of the study@ a. 8ow light levels are associated with low wor%er productivity. b. Increases in lighting intensity cause group productivity to decrease. c. Increases in lighting intensity are directly related to increases in productivity. d. 8ighting intensity is not directly related to group productivity. %d' moderate' p( -8* 11#. In e>plaining what critics disli%ed about the 0awthorne Studies, <aul most li%ely listed which of the following@ a. the research procedures b. analyses of findings c. the conclusions based on the analyses of the findings d. all of the above %d' d<==<:&+t' p( -8* 11'. <aul e>plained that the most important thing about these studies is that they AAAAAAAAAAAAAAAA. a. helped employees understand their own behavior, beginning the employee empowerment movement b. stimulated interest in human behavior in organi6ations c. concluded that employees were no different from machines d. showed that managers had to be right in all their decisions %;' d<==<:&+t' p( -8* The 0uman Side "ScenarioI As an engineer, Gevin was trained to understand the roles of machinery and hardware in enhancing organi6ational productivity. 0owever, Gevin was promoted to a managerial position where his duties included supervising a department of 3! people and leading them toward completion of a new pro4ect. )ver the perfectionist, Gevin decided to enhance his understanding of the human side of business management by reading a history te>t on the organi6ational behavior approach. 11+. Gevin read that AAAAAAAAAAA was an early social reformer who is remembered most for hisDher courage and commitment to improving the wor%ing conditions of laborers. a. 0ugo :unsterberg b. obert ;wen c. :ary <ar%er $ollett d. 9hester -arnard %;' moderate' p( -7* !#

11,. Gevin also e>panded his reading list to include wor%s authored by AAAAAAAAAAAAAA, the creator of the field of industrial psychology. a. 0ugo :unsterberg b. obert ;wen c. :ary <ar%er $ollett d. 9hester -arnard %a' moderate' p( -7* 11.. Gevin was surprised to learn that using group3based pro4ects was not a contemporary concept. In fact, AAAAAAAAAAA was an early 1.11s social philosopher who thought that organi6ations should be based on a group ethic. a. 0ugo :unsterberg b. obert ;wen c. :ary <ar%er $ollett d. 9hester -arnard %:' moderate' p( -7* 121. Gevin also learned that the organi6ational behavior approach was not limited to academic theorists. A strong contribution to this field was made by AAAAAAAAAAAAAAA, an actual manager who thought organi6ations were social systems that re7uired cooperation. a. 0ugo :unsterberg b. obert ;wen c. :ary <ar%er $ollett d. 9hester -arnard %d' moderate' p( -7*
CURRENT TREN$S AN$ ISSUES

egional =niversity "ScenarioI A regional university is trying to deal with many pressures to maintain its vitality in today2s educational environment. It faces many challenges that test the managers at the university. 121. eali6ing that the university needs to attract a heterogeneous mi>ture of faculty, the university develops a plan to hire faculty from different genders, races, and ages. This is seen as a move to develop AAAAAAAAA in the university. a. wor%force diversity b. entrepreneurship c. e3business d. scientific management %a' easy' p( 3-' AACS!9 $<>ers<ty* 122. :ost university programs that offer degrees through classes on the Internet are at either the associate degree or graduate level. This university notices a need for programs that offer bachelor2s degree. In response to this need, the university decides !'

to offer a degree at bachelor2s level. This innovative effort is an e>ample of AAAAAAAAAAAAAAAAA. a. wor%force diversity b. entrepreneurship c. organi6ational behavior d. scientific management %;' moderate' p( 33* 123. In an effort to improve operations in the university, Internet &eb pages are developed to mar%et the university, accept applications to the university, and accept applications for campus housing. These operations help turn the university into an e3 business AAAAAAAAA organi6ation. a. enhanced b. enabled c. constructive d. effective %;' moderate' p( 37' AACS!9 Te:hno+ogy* 12!. =niversity classes were soon developed that could be delivered through the Internet. These classes, and any re7uired course te>ts, could be purchased over the Internet as well. The addition of these Internet classes helped turn the university into an e3business AAAAAAAAA organi6ation. a. enhanced b. enabled c. constructive d. effective %a' moderate' p( 37' AA9S-5 Technology* The Jew 9hallenge "ScenarioI Tom has 4ust been promoted to chief technology officer at his company, /lobal Tech Solutions, Inc. 0is first assignment is to identify four pro4ect managers in the company who are li%ely to successfully manage new pro4ects. Tom selects obert, $ran%, Sue, and Fan, who all are recent graduates from a local university. 0e informs them about a current situation. 12#. Curing a discussion about e3business, obert tells Tom that he understands that e3 business is a comprehensive term describing the way an organi6ation does its wor% by using AAAAAAAA in order to efficiently and effectively achieve its goals. a. globali6ation of the mar%etplace b. innovation and growth c. electronic lin%ages with %ey constituencies d. entrepreneurship and leadership s%ills %:' moderate' p( 34? AACS!9 Te:hno+ogy* 12'. Ciscussing the three categories of e3business was not difficult. Tom simply stated that the three categories included all of the following e>cept AAAAAAAAAAAAA. a. e3business enhanced !+

b. e3business enabled c. total e3business d. cross3sectional e3business %d' moderate' p( 37? AACS!9 Te:hno+ogy* 12+. Tom further clarified that many Fortune #11 type organi6ations are evolving into e3businesses using the AAAAAAAAAAAAAAA approach. a. e3business3enhanced b. e3business3enabled c. total e3business d. cross3sectional e3business %a' moderate' p( 37? AACS!9 Te:hno+ogy* 12,. Sue as%ed for some e>amples of traditional organi6ations that have become e3 business enhanced. Tom mentioned AAAAAAAA as an e>ample. a. KahooL b. Sears c. /oogle d. 8evi Strauss %;' moderate' p( 37? AACS!9 Te:hno+ogy* The Jew -usiness "ScenarioI 8ois has started on her own children2s clothing manufacturing company. She is a bit nervous but is confident that the company will succeed. 8ois plans to implement a total 7uality management program in her company. To launch the program, she develops a series of training wor%shops for her managers. 12.. The first training wor%shop e>plains the bac%ground of total 7uality management. &hich of the following 7uality e>perts is 8ois most li%ely to include in this wor%shop@ a. 0enry $ord b. Foseph :. Curan c. -ernie )bbers d. Feff -e6os %;' moderate' p( 3)* 131. In the second wor%shop, 8ois e>plains the %ey principles of total 7uality management. &hich of the following is she most li%ely to mention@ a. intense focus on the customer b. discipline of employees c. focus on wor% products rather than processes d. reduced attention to complaint resolution %a' moderate' p( 3)* 131. The third wor%shop is devoted to understanding how total 7uality management defines the term customer. This definition includes AAAAAAAA. a. all those who interact with the organi6ation2s products or services b. only those who purchase the organi6ation2s products or services !,

c. suppliers and purchasers, but not company employees d. only those who register a specific complaint regarding a product or service %a' moderate' p( 3)* ESSAY QUESTIONS
ISTORICAL !AC"#ROUN$ OF MANA#EMENT

132. &hich two historical events were especially significant to the study of management@ Cescribe these events and discuss how they helped develop the management profession. Ans?er Two historical events are especially significant to the study of management. $irst, in 1++', Adam Smith published The Wealth of Nations, in which he argued the economic advantages that organi6ations and society would gain from the d<><s<on o= +a;or "or 4ob speciali6ationI. The division of labor involved the brea%down of 4obs into narrow and repetitive tas%s. Smith2s wor% showed that division of labor increased productivity by increasing each wor%er2s s%ill and de>terity. It also saved time lost in changing tas%s, and it encouraged the development of labor3saving inventions and machinery. Civision of labor continues to be popular as a principle for managing wor%. The second important event is the Ind&str<a+ Re>o+&t<on, which started in the late eighteenth century. Curing the Industrial evolution, machine power was substituted for human power. This made it more economical to manufacture goods in factories rather than at home. The shift to factory wor% increased the need for management professionals. 8arge efficient factories needed managers to forecast demand and to ensure that enough material was on hand to ma%e products. :anagers were also needed to assign tas%s to people and to direct daily activities. The increase in managers in turn necessitated the development of formal theories to guide managers in running large organi6ations. %moderate@ pp( 2)/2,*
SCIENTIFIC MANA#EMENT

133. In a short essay, discuss $rederic% Taylor2s wor% in scientific management. Je>t, list Taylor2s four principles of management. Ans?er $rederic% Taylor did most of his wor% at the :idvale and -ethlehem Steel 9ompanies in <ennsylvania. As a mechanical engineer with a Eua%er and <uritan bac%ground, he was continually appalled by wor%ers2 inefficiencies. )mployees used vastly different techni7ues to do the same 4ob. They were inclined to (ta%e it easy* on the 4ob, and Taylor believed that wor%er output was only about one3third of what was possible. Birtually no wor% standards e>isted. &or%ers were placed in 4obs with little or no concern for matching their abilities and aptitudes with the tas%s they were re7uired to do. :anagers and wor%ers were in continual conflict. Taylor set out to correct the !.

situation by applying the scientific method to shop floor 4obs. 0e spent more than two decades passionately pursuing the (one best way* for each 4ob to be done. Taylor2s $our <rinciples of :anagement a. Cevelop a science for each element of an individual2s wor%, which will replace the old rule3of3thumb method. b. Scientifically select and then train, teach, and develop the wor%er. c. 0eartily cooperate with the wor%ers so as to ensure that all wor% is done in accordance with the principles of the science that has been developed. d. Civide wor% and responsibility almost e7ually between management and wor%ers. :anagement ta%es over all wor% for which it is better fitted than the wor%ers. %d<==<:&+t' pp( -./-0* 13!. In a short essay, discuss the wor% in scientific management done by $ran% and 8illian /ilbreth. Ans?er $ran% /ilbreth is probably best %nown for his e>periments in bric%laying. -y carefully analy6ing the bric%layer2s 4ob, he reduced the number of motions in laying e>terior bric% from 1, to about #, and on laying interior bric% the motions were reduced from 1, to 2. =sing the /ilbreth2s techni7ues, the bric%layer could be more productive on the 4ob and less fatigued at the end of the day. The /ilbreths were among the first researchers to use motion pictures to study hand3and3body motions and the amount of time spent doing each motion. &asted motions missed by the na%ed eye could be identified and eliminated. The /ilbreths also devised a classification scheme to label 1+ basic hand motions, which they called therbligs. This scheme allowed the /ilbreths a more precise way of analy6ing a wor%er2s e>act hand movements. %moderate' pp( -0/-2*
#ENERAL A$MINISTRATI1E T EORYS

13#. In a short essay, discuss the wor% of 0enri $ayol as it relates to the general administrative approach to management. Je>t, list and discuss + of $ayol2s 1! principles of management. Ans?er $ayol described the practice of management as something distinct from accounting, finance, production, distribution, and other typical business functions. 0e argued that management was an activity common to all human endeavors in business, in government, and even in the home. 0e then proceeded to state 1! principles of managementMfundamental rules of management that could be taught in schools and applied in all organi6ational situations. $ayol2s 1! <rinciples of :anagement a. Civision of wor%Mspeciali6ation increases output by ma%ing employees more efficient. #1

b. AuthorityMmanagers must be able to give orders. Authority gives them this right. Along with authority, however, goes responsibility. c. CisciplineMemployees must obey and respect the rules that govern the organi6ation. d. =nity of commandMevery employee should receive orders from only one superior. e. =nity of directionMthe organi6ation should have a single plan of action to guide managers and wor%ers. f. Subordination of individual interests to the general interestMthe interests of any one employee or group of employees should not ta%e precedence over the interests of the organi6ation as a whole. g. emunerationMwor%ers must be paid a fair wage for their services. h. 9entrali6ationMthis term refers to the degree to which subordinates are involved in decision ma%ing. i. Scalar chainMthe line of authority from top management to the lowest ran%s in the scalar chain. 4. ;rderMpeople and materials should be in the right place at the right time. %. )7uityMmanagers should be %ind and fair to their subordinates. l. Stability of tenure of personnelMmanagement should provide orderly personnel planning and ensure that replacements are available to fill vacancies. m. InitiativeMemployees who are allowed to originate and carry out plans will e>ert high levels of effort. n. )sprit de corpsMpromoting team spirit will build harmony and unity within the organi6ation. %d<==<:&+t' p( -2/--* 13'. Cescribe the si> elements of :a> &eber2s model of bureaucracy. )>plain the significance of each. Ans?er In :a> &eber2s model, an ideal bureaucracy contains si> elements. The first of these is a d<><s<on o= +a;or, through which 4obs are bro%en down into simple, routine, and well3defined tas%s. The second element is an a&thor<ty h<erar:hy, in which 4ob positions are organi6ed within a clear chain of command. The third element is =orma+ se+e:t<on, through which personnel are selected for 4obs based on their technical 7ualifications. The fourth element of &eber2s model is =orma+ r&+es and reg&+at<ons. &eber believed that a bureaucracy should be organi6ed according to a system of written rules and standard operating procedures. $ifth, &eber believed that bureaucracies should be characteri6ed by <mpersona+<ty. Through this element, rules and controls could be applied in a uniform way, not according to individual personalities. $inally, &eber2s bureaucratic model includes a si>th element5 :areer or<entat<on. &eber saw managers not as owners of the units they manage, but instead as career professionals. %d<==<:&+t' p( -2/-3*
TO5AR$ UN$ERSTAN$IN# OR#ANI6ATIONAL !E A1IOR

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13+. In a short essay, describe the 0awthorne Studies. Je>t, discuss the role of )lton :ayo in these studies and list some of the findings of his research. Ans?er &ithout 7uestion, the most important contribution to the developing organi6ational behavior field came from the 0awthorne Studies, a series of studies conducted at the &estern )lectric 9ompany &or%s in 9icero, Illinois. &estern )lectric industrial engineers initially designed these studies as a scientific management e>periment. They wanted to e>amine the effect of various illumination levels on wor%er productivity. -ased on their research, it was concluded that illumination intensity was not directly related to group productivity. In 1.2+, the &estern )lectric engineers as%ed 0arvard professor )lton :ayo and his associates to 4oin the study as consultants. Through additional research, )lton :ayo concluded that group influences affected individual behavior, that group standards establish individual wor%er output, and that money is less a factor in determining output than are group standards, group sentiments, and security. These conclusions led to a new emphasis on the human behavior factor in the functioning of organi6ations and the attainment of their goals. %d<==<:&+t' p( -8*
T E SYSTEMS A22ROAC

13,. In a short essay, e>plain three primary ways in which the systems approach contributes to our understanding of management. Ans?er The systems approach contributes to our understanding of management first by helping us to understand that organi6ations are made up of interdependent factors. As managers coordinate wor% activities in the various units of the organi6ation, they must ensure that all of the interdependent units are wor%ing together so that the organi6ation2s goals can be achieved. The systems approach recogni6es that an organi6ation2s overall performance is dependent upon the efforts of many units wor%ing together. Second, the systems approach helps us to understand that decisions and actions ta%en in one organi6ational area will affect others and vice versa. $or e>ample, if the purchasing department of a company doesn2t ac7uire the right 7uantity and 7uality of inputs, that company2s production department will not be able to do its 4ob effectively. Third, the systems approach recogni6es that organi6ations are not self3contained. They rely on their environments for essential inputs. They also use their environments as outlets to absorb their outputs. Jo organi6ation can survive for long if it ignores government regulations, supplier relations, or the varied e>ternal constituencies upon which it depends. %d<==<:&+t' pp( -)/-,*
T E CONTIN#ENCY A22ROAC

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13.. Cescribe four popular variables established by the contingency approach. )>plain how each variable might affect management approaches in different organi6ations. <rovide an e>ample of each. Ans?er ;ne important contingency variable is the s<Ae of an organi6ation. As the si6e of an organi6ation increases, so do the problems of coordination. $or instance, the type of organi6ation structure appropriate for an organi6ation of #1,111 employees is li%ely to be inefficient for an organi6ation of #1 employees. A very large organi6ation might re7uire a more hierarchical management structure. A small organi6ation, on the other hand, might thrive with less hierarchy in its management structure. A second popular contingency variable concerns the ro&t<neness o= tasB te:hno+ogy. To achieve its purpose, an organi6ation must use technology. outine technologies re7uire organi6ational structures, leadership styles, and control systems that differ from those re7uired by customi6ed or nonroutine technologies. An auto manufacturing plant, for instance, might use routine technologies such as robots to perform automated wor%. These robots would re7uire a much different type of management than would be re7uired within a service business, such as a fast food restaurant, where employees2 customer service performance must be supervised. A third contingency variable is en><ronmenta+ &n:erta<nty. The degree of uncertainty caused by environmental changes influences the management process. &hat wor%s best in a stable and predictable environment may be totally inappropriate in a rapidly changing and unpredictable environment. A company that is going through a merger, for instance, might re7uire its managers to focus on helping employees cope with management transitions. A company that is in a more stable environment might encourage its managers to focus on employee productivity and company growth. A fourth contingency variable concerns <nd<><d&a+ d<==eren:es. Individuals differ in terms of their desire for growth, autonomy, tolerance of ambiguity, and e>pectations. These and other individual differences are particularly important when managers select motivation techni7ues, leadership styles, and 4ob designs. An individual who desires a great deal of autonomy on the 4ob might need to be managed in a very (hands off* style, for e>ample. An individual who is very motivated by team success might need to have his or her wor% activities structured to involve a great deal of group interaction. %d<==<:&+t' p( 3.*
CURRENT TREN$S AN$ ISSUES

1!1. Jame three ways in which globali6ation has changed the manager2s 4ob. Cescribe and provide an e>ample of each. Ans?er a. &or%ing with people from different cultures. )ven in your own country, you2re li%ely to find yourself wor%ing with bosses, peers, and other employees who were born or raised in different cultures. &hat motivates you may not motivate them. ;r your style of communication may be direct and open, but they may find this approach #3

uncomfortable and threatening. To wor% effectively with a group of diverse people, you2ll need to understand how their culture, geography, and religion have shaped their values, attitudes, and beliefs and ad4ust your management style accordingly. b. 9oping with anticapitalist bac%lash. 9apitalism2s emphasis on profits, efficiency, and growth may be generally accepted in the =nited States, Australia, and 0ong Gong, but that emphasis is not nearly as popular in places li%e $rance, the :iddle )ast, or the Scandinavian countries. :anagers at global companies li%e 9oca39ola, :cConald2s, or <rocter H /amble have come to reali6e that economic values aren2t universally transferable. :anagement practices need to be modified to reflect the values of the different countries in which an organi6ation operates. c. :ovement of 4obs to countries with low3cost labor. /lobali6ation means businesses can hire, source, and sell wherever they want. It2s increasingly difficult for managers in economically advanced nations, where minimum wages are typically N' or more an hour, to compete against companies who rely on wor%ers from developing nations where labor is available for 31 cents an hour. It2s not by chance that a good portion of Americans wear clothes made in 9hina, wor% on computers whose parts came from Thailand, and watch movies filmed in 9anada. In a global economy, 4obs tend to flow to places where lower costs provide businesses with a comparative advantage. The implication for managers is that they must be prepared to deal with the difficult tas% of balancing the interests of their organi6ation as it loo%s for ways to %eep costs low and remain competitive with their responsibilities to the communities within which they operate. %d<==<:&+t' pp( 3./30*

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