Chapter 2

The Evolution of Management Thinking

True/False Questions
1. According to the opening case, today, Cemex specializes in delivering concrete in the most
technologically advanced parts of the world.
Answer: False Level: 2 age: !1 "ype: F
2. #anagers today face the $ltimate paradox: %eep everything r$nning efficiently and
profita&ly, while, at the same time, change everything.
Answer: "r$e Level: ' age: !2 "ype: F
'. (t$dying history is a way to achieve strategic thin%ing, see the &ig pict$re, and improve
concept$al s%ills.
Answer: "r$e Level: 2 age: !' "ype: F
!. olitical forces are aspects of a c$lt$re that g$ide and infl$ence relationships among
people.
Answer: False Level: 1 age: !' "ype: F
). "he $nwritten, common r$les and perceptions a&o$t relationships among people and
&etween employees and management refers to the economic contract.
Answer: False Level: 1 age: !' "ype: F
*. +conomic forces pertain to the availa&ility, prod$ction, and distri&$tion of reso$rces in a
society.
Answer: "r$e Level: 1 age: !' "ype: F
,. "he early st$dy of management as we %now it today &egan with what is now called the
technology-driven wor%place.
Answer: False Level: 2 age: !) "ype: F
.. "he classical perspective on management emerged d$ring the early eighteenth cent$ry.
Answer: False Level: 2 age: !) "ype: F
Chapter Two * The Evolution of Management Thinking
Test Bank * Page 3
/. Frederic% 0. "aylor developed (cientific #anagement and emphasized the fo$rteen
principles of management that sho$ld g$ide managerial &ehavior.
Answer: False Level: 1 age: !* "ype: F
11. (cientific management developed a standard method for performing each 2o&.
Answer: "r$e Level: 1 age: !* "ype: F
11. (ince "aylor was the sole contri&$tor in the area of scientific management, he was
awarded the title of 3father of scientific management.4
Answer: False Level: 1 age: !* "ype: F
12. 5ne of the important reasons for the s$ccess of 6( is the concept of &$rea$cracy.
Answer: "r$e Level: 2 age: !. "ype: F
1'. #ax 0e&er emphasized efficiency instead of effectiveness in organizations thro$gh his
&$rea$cratic model.
Answer: False Level: 1 age: !. "ype: F
1!. Fayol7s 6nity of 8irection rinciple emphasizes that each s$&ordinate receives orders from
one, and only one.
Answer: False Level: 2 age: )1 "ype: F
1). 6nity of direction principle proposes that similar activities in an organization sho$ld &e
gro$ped together $nder one manager.
Answer: "r$e Level: 1 age: )1 "ype: F
1*. "he hypothetical chain that provides horizontal lin%s &etween $nionized wor%ers in
different departments in an organization is called the scalar chain.
Answer: False Level: 2 age: )1 "ype: F
1,. Follett and 9arnard were early advocates of a more h$manistic perspective on
management that emphasized the importance of $nderstanding h$man &ehavior, needs, and
attit$des in the wor%place as well as social interactions and gro$p processes.
Answer: "r$e Level: 2 age: )1 "ype: F
1.. #ost early interpretations of the :awthorne st$dies agreed that money was the ca$se of
the increased o$tp$t.
Chapter Two * The Evolution of Management Thinking
Test Bank * Page 32
Answer: False Level: 2 age: )2 "ype: F
1/. "he :awthorne st$dies led to the early concl$sion that positive h$man relations can lead
to significantly higher performance.
Answer: "r$e Level: 1 age: )2 "ype: F
21. #aslow;s hierarchy of needs started with &elongingness, progressed to safety, and finally
to esteem.
Answer: False Level: 2 age: )' "ype: F
21. According to 8o$glas #c<regor, "heory = and "heory > provide two opposing views of
wor%ers, where "heory = recognizes that wor%ers en2oy achievement and responsi&ility,
while "heory > recognizes that wor%ers will avoid wor% whenever possi&le.
Answer: False Level: 1 age: )! "ype: F
22. "heory > proposes that organizations can ta%e advantage of the imagination and intellect
of all of their employees.
Answer: "r$e Level: 2 age: )! "ype: F
2'. "he &ehavioral science approach develops theories a&o$t h$man &ehavior &ased on
scientific methods and st$dy.
Answer: "r$e Level: 1 age: )! "ype: F
2!. 5perations management represents the field of management that specializes in the physical
prod$ction of goods and services.
Answer: "r$e Level: 1 age: ), "ype: F
2). "here are fo$r components to the systems theory: inp$ts, o$tp$ts, feed&ac% and the
c$stomers.
Answer: False Level: 1 age: ), "ype: F
2*. 5$tp$ts, from a systems theory viewpoint, are the material, h$man, financial, or
information reso$rces $sed to prod$ce goods and services.
Answer: False Level: 2 age: ), "ype: F
2,. ?n systems theory, an open system is open to the s$ggestions and recommendations of its
wor%ers.
Answer: False Level: 1 age: ), "ype: F
Chapter Two * The Evolution of Management Thinking
Test Bank * Page 33
2.. 0hen the shop foreman receives and rewards val$a&le s$ggestions from its wor%ers, and
this leads to contin$al improvement of prod$ction, synergy has occ$rred.
Answer: "r$e Level: 2 age: ). "ype: A
2/. 5ne of the advantages provided &y good coordination within an organization is that
entropy is red$ced.
Answer: False Level: 2 age: ). "ype: F
'1. "o s$rvive, closed systems m$st interact with the environment.
Answer: False Level: 1 age: ). "ype: F
'1. Contingency theory s$ggests that managers wo$ld &e more s$ccessf$l if they learned the
&est way to manage and motivate their employees, and then applied this %nowledge in a
$niversally consistent way.
Answer: False Level: 2 age: )/ "ype: A
'2. "he inherent foc$s of "@# is on managing the total organization to deliver A$ality to the
c$stomer.
Answer: "r$e Level: 1 age: )/ "ype: F
''. 9enchmar%ing involves finding o$t what the c$stomer wants.
Answer: False Level: 2 age: *1 "ype: F
'!. "he implementation of small, incremental improvements in all areas of the organization on
an ongoing &asis refers to contin$o$s improvement.
Answer: "r$e Level: 1 age: *1 "ype: F
'). "he learning organization is an attit$de or philosophy a&o$t what an organization can
&ecome.
Answer: "r$e Level: 2 age: *1 "ype: F
'*. Altho$gh team leadership is critical, in learning organizations the traditional &oss is
practically eliminated.
Answer: "r$e Level: 2 age: *1 "ype: F
',. ?n learning organizations, managers learn to thin% in terms of Bcontrol overB rather than
Bcontrol withB others.
Answer: False Level: 1 age: *1 "ype: F
Chapter Two * The Evolution of Management Thinking
Test Bank * Page 3!
'.. "he f$ndamental $nit in a learning organization is command-and-control management
teams.
Answer: False Level: 2 age: *1 "ype: F
'/. <iving employees the power, freedom, %nowledge, and s%ills to ma%e decisions and
perform effectively refers to empowerment.
Answer: "r$e Level: 1 age: *1 "ype: F
!1. eople are a cost to &e minimized for managers in learning organizations.
Answer: False Level: 2 age: *1 "ype: F
!1. eter 8r$c%er coined the word %nowledge wor% more than !1 years ago.
Answer: "r$e Level: 2 age: *! "ype: F
Multiple Choi"e Questions
1. 0hich of these, according to the opening case, represents a management challenge for
CemexC
a. Finding an Asian headA$arter given its foc$s on the developing world
&. Locating opport$nities in the advanced part of the world
c. Finding a &$siness approach that accepted, rather than resisted, the nat$ral chaos
of the mar%etplace
d. Finding entreprene$rial s$ppliers to match Cemex;s innovative c$lt$re
e. ?ntrod$cing information technology in a m$ndane cement &$siness
Answer: c Level: ' age: !1 "ype: F
2. (am 0alton was way ahead of open-&oo% management when he DDDDDDDDDD toEwith the
employees in the 1/*1s.
a. opened the financial records
&. allowed decision ma%ing
c. gave &on$ses
d. developed technology s%ills
e. managed the openings of 0al-#art
Answer: a Level: 2 age: !2 "ype: F
'. A significant changing force in today;s wor%force are the changing attit$des of
Chapter Two * The Evolution of Management Thinking
Test Bank * Page 3#
DDDDDDDDDD.
a. s$ppliers
&. c$stomers
c. generation = employees
d. C+5;s and &oard mem&ers
e. ind$stry leaders
Answer: c Level: 2 age: !' "ype: F
!. 0hich of these forces refer to those aspects of a c$lt$re that g$ide and infl$ence
relationships among peopleC
a. (ocial
&. olitical
c. +conomic
d. "echnological
e. Legal
Answer: a Level: 1 age: !' "ype: F
). 0hich of these forces comprises $nwritten, common r$les and perceptions a&o$t
relationshipsC
a. +conomic force
&. olitical force
c. (ocial force
d. Legal force
e. ersonal force
Answer: c Level: 1 age: !' "ype: F
*. "he passage of new laws, s$ch as the Family Leave Act, exemplify the effect of
a. economic forces.
&. political forces.
c. social forces.
d. technological forces.
e. h$man relations force.
Answer: & Level: 2 age: !' "ype: A
,. 0hich of these forces pertain to the availa&ility, prod$ction, and distri&$tion of reso$rces
in a societyC
a. (ocial
&. olitical
c. +conomic
Chapter Two * The Evolution of Management Thinking
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d. "echnological
e. Legal
Answer: c Level: 1 age: !' "ype: F
.. ?nterest rates, inflation, and trade &arriers are all examples of forces.
a. technology
&. political
c. social
d. economic
e. none of the a&ove
Answer: d Level: 2 age: !' "ype: F
/. "he stim$l$s for technological innovation is often fo$nd in which of theseC
a. (ocial forces
&. olitical forces
c. +conomic forces
d. Competitive forces
e. All of the a&ove
Answer: c Level: 1 age: !'-!! "ype: F
11. 0hich of these is the most c$rrent management perspectiveC
a. "he learning organization
&. Contingency views
c. (ystems theory
d. "he technology-drive wor%place
e. Classical perspective
Answer: d Level: 2 age: !! "ype: F
11. 8$ring diffic$lt times, managers often loo% for ideas to cope with DDDDDDDDDD t$r&$lence.
a. environmental
&. employee
c. mar%et share
d. ind$stry
e. legal
Answer: a Level: 2 age: !! "ype: F
12. "he railroads and internet serve the same &asic f$nction: DDDDDDDDDD.
a. transporting information
Chapter Two * The Evolution of Management Thinking
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&. connecting &$yers and sellers
c. traveling with speed
d. managing prod$ct
e. developing ind$stry performance
Answer: & Level: 2 age: !) "ype: F
1'. "he nineteenth and early twentieth cent$ries saw the development of which management
perspectiveC
a. "he h$man relations movement
&. "he &ehavioral sciences approach
c. "he classical perspective
d. "he A$antitative management approach
e. "he "@# approach
Answer: c Level: 2 age: !) "ype: F
1!. 0hich of these perspectives emphasize a rational, scientific approach to the st$dy of
management and so$ght to ma%e organizations efficient operating machinesC
a. "he h$man relations movement
&. "he &ehavioral sciences approach
c. "he scientific management movement
d. "he A$antitative management approach
e. "he "@# approach
Answer: c Level: 1 age: !* "ype: F
1). Fran% <il&reth felt that efficiency eA$ated with DDDDDDDDDD.
a. one &est way to do wor%
&. leadership flows from the top down
c. proced$res and policies
d. scientific management
e. &$rea$cracy
Answer: a Level: 2 age: !* "ype: F
1*. DDDDDDDDDD is considered the 3first lady of management.4
a. #ary ar%er Follett
&. Lillian <il&reth
c. Carly Fioroni
d. #axine 0e&er
e. Anne Adams
Answer: & Level: 2 age: !* "ype: F
Chapter Two * The Evolution of Management Thinking
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1,. "he three s$&fields of the classical perspective incl$de
a. A$antitative management, &ehavioral science, and administrative management.
&. &$rea$cratic organization, A$antitative management, and the h$man
relations movement.
c. administrative management, &$rea$cratic organization, and scientific
management.
d. scientific management, A$antitative management, and administrative
management.
e. none of the a&ove.
Answer: c Level: 2 age: !* "ype: F
1.. 0ho is considered as the 3father of scientific managementC4
a. Fran% 9. <il&reth
&. +lton #ayo
c. :enry <antt
d. 8o$glas #c<regor
e. Frederic% 0. "aylor
Answer: e Level: 1 age: !* "ype: F
1/. DDDDDDDDDD is a &ar graph that meas$res planned and completed wor% along each stage of
prod$ction &y time elapsed.
a. "ime and 0or% chart
&. <antt chart
c. "ime and #otion chart
d. rod$ction and 8elivery chart
e. <il&reth chart
Answer: & Level: 1 age: !* "ype: F
21. Fredric% "aylor7s contri&$tions were in the field of
a. scientific management.
&. h$man reso$rce management.
c. h$man relations.
d. A$antitative management.
e. total A$ality management.
Answer: a Level: 1 age: !* "ype: F
21. 0hich of the following is not a criticism of scientific managementC
a. ?t does not appreciate the social context of wor%.
Chapter Two * The Evolution of Management Thinking
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&. ?t does not appreciate the higher needs of wor%ers.
c. ?t does not appreciate the caref$l st$dy of tas%s and 2o&s.
d. ?t does not ac%nowledge variance among individ$als.
e. ?t tends to regard wor%ers as $ninformed and ignored their ideas and s$ggestions.
Answer: c Level: 2 age: !,-!. "ype: F
22. (tandardization of wor% and wage incentives are characteristics of
a. &$rea$cratic organizations.
&. scientific management.
c. A$antitative management.
d. administrative management.
e. &ehavioral science.

Answer: & Level: 2 age: !, "ype: F
2'. 0e&er felt selection of employees sho$ld &e &ased on:
a. ed$cation
&. competence
c. connections
d. management s%ills
e. efficient systems
Answer: & Level: 2 age: !. "ype: F
2!. 0hich of these is a ma2or criticism of scientific managementC
a. ?t ignored the social context of wor%.
&. ?t ignored the impact of compensation on performance.
c. ?t overemphasized individ$al differences.
d. ?t overemphasized the intelligence of wor%ers.
e. ?t emphasized the social context of wor%.
Answer: a Level: 2 age: !. "ype: F
2). 9$rea$cratic organizations approach was a s$&field within the DDDDDDDDDD.
a. classical perspective
&. systems theory
c. scientific management
d. learning organization
e. management science view
Answer: a Level: 2 age: !. "ype: F
2*. 5rganizations, according to 0e&er7s ideas on &$rea$cracy, sho$ld &e &ased on which of
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !(
theseC
a. ersonal loyalty
&. ersonal references
c. Fational a$thority
d. Family ties
e. Charismatic a$thority
Answer: c Level: 2 age: !. "ype: F
2,. ositions organized in a hierarchy of a$thority is an important characteristic of
a. scientific management.
&. &$rea$cratic organizations.
c. A$antitative management.
d. the h$man relations movement.
e. total A$ality management.
Answer: & Level: 1 age: !. "ype: F
2.. Archies; AntiA$es, ?nc., is characterized &y separation of management from ownership and
&y clearly defined lines of a$thority and responsi&ility. "hese characteristics are consistent
with the principles of
a. scientific management.
&. &$rea$cratic organizations.
c. administrative management theory.
d. h$man reso$rce management.
e. all of the a&ove.
Answer: & Level: 2 age: !. "ype: A
2/. 0hich of the following is G5" a characteristic of 0e&erian &$rea$cracyC
a. La&or is divided with clear definitions of a$thority and responsi&ility that
are legitimized as official d$ties.
&. ositions are organized in a hierarchy of a$thority, with each position $nder
the a$thority of a higher one.
c. All personnel are selected and promoted &ased on technical A$alifications.
d. Administrative acts and decisions are recorded in writing.
e. #anagement is the same as the ownership of the organization.
Answer: e Level: ' age: !. "ype: F
'1. 6( is s$ccessf$l in the small pac%age delivery mar%et. 5ne important reason for this
s$ccess is the concept of
a. glo&alization.
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !
&. employee flexi&ility.
c. loose standards.
d. &$rea$cracy.
e. non-&$rea$cratic organizational system.
Answer: d Level: 2 ages: !/ "ype: F
'1. (cientific management foc$sed on DDDDDDDDDD, and administrative principles foc$sed on
DDDDDDDDDD.
a. individ$al prod$ctivity, total organization
&. organization prod$ctivity, individ$al effort
c. efficient proced$res, management &y principle
d. employee a&ility, employee loyalty
e. employee competence, wor% flow thro$gh the organization
Answer: a Level: 2 age: !/ "ype: F
'2. #ary ar%er Follett contri&$ted to which fieldC
a. Administrative principles approach to management
&. (cientific management approach
c. "otal A$ality management approach
d. @$antitative approach to management
e. (ystems approach to management
Answer: a Level: 1 age: )1 "ype: F
''. #ary ar%er Follett tho$ght of leadership as DDDDDDDDDD, rather than techniA$es.
a. systems
&. top managers
c. people
d. efficiencies
e. floor managers
Answer: c Level: 2 age: )1 "ype: F
'!. Chester 9ernard felt that DDDDDDDDDD co$ld help a poorly managed organization.
a. &$rea$cracy
&. line managers
c. efficiencies
d. informal relations
e. topEdown flow of information
Answer: d Level: 2 age: )1 "ype: F
'). "he assem&ly line is most consistent with which of the following general principles of
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !2
managementC
a. 6nity of command
&. 8ivision of wor%
c. 6nity of direction
d. (calar chain
e. @$ality management
Answer: c Level: 2 age: )1 "ype: A
'*. "he principle that similar activities in an organization sho$ld &e gro$ped together $nder
one manager is the essence of the classical perspective %nown as
a. $nity of command.
&. division of wor%.
c. $nity of direction.
d. scalar chain.
e. A$ality management.
Answer: c Level: 2 age: )1 "ype: F
',. "he $se of specialization to prod$ce more and &etter wor% with the same level of effort is
consistent with the administrative management principle of
a. $nity of command.
&. $nity of direction.
c. scalar chain.
d. division of wor%.
e. none of the a&ove
Answer: d Level: 1 age: )1 "ype: F
'.. 0hich of these refers to a chain of a$thority extending from top to the &ottom of the
organization and incl$ding every employeeC
a. 6nity of command
&. 8ivision of la&or
c. 6nity of direction
d. (calar chain
e. Gone of the a&ove
Answer: d Level: 1 age: )1 "ype: F
'/. A social gro$p within an organization is part of the
a. formal organizational str$ct$re.
&. informal organization.
c. scalar chain.
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !3
d. reorganization process.
e. top management level.
Answer: & Level: 1 age: )1 "ype: F
!1. A significant contri&$tion of Chester 9arnard was the concept of
a. &$rea$cracy.
&. the informal organization.
c. total A$ality management.
d. scientific management.
e. traditional theory of a$thority.
Answer: & Level: 1 age: )1 "ype: F
!1. 0hich of these emphasized power sharing &etween managers and employeesC
a. :$manistic perspective
&. Classical perspective
c. (cientific management
d. 9$rea$cratic organizations
e. Contingency perspective
Answer: a Level: 1 age: )1 "ype: F
!2. 0hich management theory states that people have free willC
a. h$man relations movement
&. acceptance theory of a$thority
c. management science
d. &$rea$cracy
e. administrative principles
Answer: & Level: 2 age: )1 "ype: F
!'. 0hich of these refers to the management thin%ing and practice that emphasizes
satisfaction of employees7 &asic needs is the %ey to increased wor%er prod$ctivityC
a. (cientific management perspective
&. :$man reso$rce perspective
c. #anagement science perspective
d. 9ehavioral sciences approach
e. :$man relations movement
Answer: e Level: 2 age: )2 "ype: F
!!. A Bdiary farmB view of management, i.e., contented cows give more mil%, so satisfied
wor%ers will give more wor% was espo$sed &y
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !!
a. h$man relations management.
&. h$man reso$rce perspective.
c. &ehavioral science approach.
d. management science perspective.
e. none of the a&ove.
Answer: a Level: 2 age: )2 "ype: F
!). #ost early interpretations of the :awthorne st$dies arg$ed that the factor that &est
explained increased o$tp$t was
a. money.
&. days off.
c. h$man relations.
d. lighting.
e. free food.
Answer: c Level: 2 age: )2 "ype: F
!*. #aslow;s hierarchy of needs started with which of these needsC
a. +steem
&. Love
c. (afety
d. hysiological
e. 9elongingness
Answer: d Level: 1 age: )' "ype: F
!,. "he h$man reso$rces perspective of management lin%s leadership with DDDDDDDDDD.
a. top management
&. employee tas%s
c. floor managers
d. efficiencies
e. profit maximization
Answer: & Level: 2 age: )' "ype: F
!.. ?n &$ilding ?9# in 1/1!, 0atson;s %ey to increased prod$ctivity was DDDDDDDDDD.
a. &$rea$cracy
&. to$gh leadership
c. employee centered management
d. scientific management
e. profit maximization
Chapter Two * The Evolution of Management Thinking
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Answer: c Level: 2 age: )' "ype: F
!/. "he classical perspective on management, according to 8o$glas #c<regor, is consistent
with which of the followingC
a. "heory = manager
&. "heory > manager
c. "heory H manager
d. "heory A manager
e. Gone of the a&ove
Answer: a Level: 2 age: )! "ype: F
)1. "ommy &elieves his employees are responsi&le, creative, and a&le to wor% with minimal
direction. :e is a
a. "heory = manager.
&. "heory > manager.
c. "heory H manager.
d. "heory A manager.
e. contingency theory manager.
Answer: & Level: 2 age: )! "ype: A
)1. 9eth 9rant, prod$ction s$pervisor at "r$stworthy "ools #fg., ?nc. &elieves that her
employees disli%e wor%, avoid responsi&ility, and therefore they need to &e controlled and
directed. 9eth is a
a. "heory = manager.
&. "heory > manager.
c. realistic manager.
d. "heory H manager.
e. "heory I manager.
Answer: a Level: ' age: )! "ype: A
)2. According to yo$r text, which of the following organizations s$ccessf$lly practices "heory
>C
a. 6nited arcel (ervice
&. (ignet ainting, ?nc.
c. 6.(. ostal (ervice
d. Alcan Al$min$m Ltd. JAAK
e. All of the a&ove
Answer: & Level: 2 age: )! "ype: F
)'. "he &ehavioral sciences approach is &ased on which of the following disciplinesC
Chapter Two * The Evolution of Management Thinking
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a. Anthropology
&. +conomics
c. (ociology
d. sychology
e. All of the a&ove
Answer: e Level: 1 age: )! "ype: F
)!. 5rganizational development is one specific set of management techniA$es &ased in the
DDDDDDDD approach.
a. management science
&. systems theory
c. &ehavioral sciences
d. scientific management
e. A$antitative
Answer: c Level: 2 age: )! "ype: F
)). "he management science perspective emerged after 0orld 0ard ?? to treat pro&lems
associated with
a. modern glo&al warfare.
&. environmental iss$es.
c. employee involvement.
d. <ermany.
e. improving man$fact$ring.
Answer: a Level: 2 age: ))-)* "ype: F
)*. "he management science perspective applies all of the following to managerial pro&lems
+=C+"
a. statistics.
&. A$alitative techniA$es.
c. mathematics.
d. A$antitative techniA$es.
e. all of the a&ove are correct.
Answer: & Level: 2 age: )* "ype: F
),. 0hich of the following wo$ld &e classified as inp$t for Coca-Cola, ?nc.C
a. (oda
&. Advertising
c. 0ater
d. +mployee satisfaction
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e. All of the a&ove
Answer: c Level: 2 age: ), "ype: A
).. 0hich of the following wo$ld &e classified as an o$tp$t for Coca-Cola, ?nc.C
a. (oda
&. rofits
c. +mployee satisfaction
d. All of the a&ove
e. Gone of the a&ove
Answer: d Level: ' age: ), "ype: A
)/. 5perations research grew o$t of 0orld 0ar ?? gro$ps and is &ased on DDDDDDDDDD.
a. gro$p dynamics
&. employees in crisis
c. prod$ction in t$r&$lent times
d. mathematical eA$ations
e. a h$manistic approach
Answer: d Level: 2 age: ), "ype: F
*1. According to the systems theory, a &ea$tician at a hair salon wo$ld &e aJnK
a. o$tp$t.
&. environment.
c. inp$t.
d. transformation process.
e. none of the a&ove.
Answer: c Level: ' age: ), "ype: A
*1. For ?9#, according to the systems theory, which of these wo$ld not &e an inp$tC
a. Faw material
&. ?nformation
c. Financial reso$rces
d. :$man reso$rces
e. +mployee satisfaction
Answer: e Level: 2 age: ), "ype: A
*2. 0hich of these is not a component of systems theoryC
a. ?np$ts
&. A$tonomy
Chapter Two * The Evolution of Management Thinking
Test Bank * Page !&
c. Feed&ac%
d. +nvironment
e. 5$tp$ts
Answer: & Level: 2 age: ), "ype: F
*'. 0hich of the following, according to the systems theory, is transformation process for a
&$sinessC
a. ?ncoming trainees
&. Fetiring employees
c. #anagers
d. "raining
e. Fecr$iters
Answer: d Level: 2 age: ), "ype: A
*!. "he teamwor% philosophy is &ased in part on the ass$mption that five people wor%ing
together can prod$ce more than five people wor%ing individ$ally. "his philosophy is
consistent with the concept of
a. transformation.
&. entropy.
c. synergy.
d. feed&ac%.
e. A$ality.
Answer: c Level: ' age: ), "ype: A
*). 0hich of these m$st interact with the environment to s$rviveC
a. Closed system
&. +ntropy
c. (ynergy
d. 6niversal view
e. 5pen system
Answer: e Level: 1 age: ), "ype: F
**. "hen tendency for a system to r$n down and die refers to
a. entropy.
&. synergy.
c. open system.
d. case property.
e. contingency perspective.
Answer: a Level: 1 age: ). "ype: F
Chapter Two * The Evolution of Management Thinking
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*,. ?t is often diffic$lt to ma%e decisions a&o$t s$&systems, &eca$se they are DDDDDDDDDD.
a. interdependent
&. independent
c. managed differently
d. filled with employees
e. organizationally &ased
Answer: a Level: 2 age: ). "ype: F
*.. 11 L 11 M 2) reflects which of theseC
a. +ntropy
&. (ynergy
c. 5pen system
d. Closed system
e. 0e&erian math
Answer: & Level: ' age: ). "ype: F
*/. ?n which of the following perspectives is every sit$ation viewed as $niA$eC
a. A $niversalist view
&. A contingency view
c. A case view
d. (cientific management view
e. Gone of the a&ove
Answer: c Level: 2 age: )/ "ype: F
,1. DDDDDDDDDD is often considered the 3father of the A$ality movement.4
a. 0e&er
&. <il&reth
c. Follett
d. 8eming
e. <ehr%e
Answer: d Level: 2 age: )/ "ype: F
,1. 0hich of these foc$ses on managing the whole organization to deliver A$ality to
c$stomersC
a. 9$rea$cracy
&. "heory H
c. #anagement-&y-o&2ective
d. "otal @$ality #anagement
Chapter Two * The Evolution of Management Thinking
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e. 5rganization-c$stomer relationship
Answer: d Level: 1 age: )/ "ype: F
,2. +lements of "@# incl$de
a. employee detachment.
&. foc$s on profits.
c. &enchmar%ing.
d. accidental improvement.
e. all of the a&ove.
Answer: c Level: 1 age )/ "ype: F
,'. ?n order to determine how to deal with a pro&lem employee, (haron eval$ated the
employee, the pro&lem, and the context in which the pro&lem occ$rred. (he is applying
which of the following perspectivesC
a. articipative view
&. 6niversalist view
c. A$tonomy view
d. Contingency view
e. :$manist view
Answer: d Level: ' age: )/ "ype: A
,!. A cons$ltant who recommends the effectiveness of sensitivity training to every
organization he serves is violating the &asics of which of the following perspectivesC
a. +fficiency perspective
&. 6niversalist perspective
c. Contingency perspective
d. (cientific management perspective
e. @$antitative perspective
Answer: c Level: 2 age: )/ "ype: A
,). 0hich of these is a process where&y companies find o$t how others do something &etter
than they do and then try to imitate or improve on itC
a. "@#
&. Contin$o$s improvement
c. 9enchmar%ing
d. +mpowerment
e. #95
Answer: c Level: 1 age: *1 "ype: F
Chapter Two * The Evolution of Management Thinking
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,*. ?n a DDDDDDDDDD organization all employees loo% for pro&lems.
a. contin$o$s improvement
&. &$rea$cratic
c. empowered
d. learning
e. total A$ality management
Answer: d Level: 2 age: *1 "ype: F
,,. "he implementation of small incremental improvements in all areas of the organization on
an ongoing &asis is referred to as
a. &enchmar%ing.
&. empowerment.
c. systems theory.
d. contingency perspective.
e. contin$o$s improvement.
Answer: e Level: 1 age: *1 "ype: F
,.. 0hich of these teams is the f$ndamental $nit in a learning organizationC
a. ?nformal
&. Nertical
c. ?nd$strial
d. (elf-directed
e. 6nion-&ased
Answer: d Level: 2 age: *1 "ype: F
,/. ?n learning organizations, isJareK a manager7s primary so$rce of strength, not a
cost to &e minimized.
a. technology
&. competitors
c. government
d. levels of management
e. people
Answer: e Level: 2 age: *1 "ype: F
.1. 8eveloping a learning organization involves ma%ing specific changes in all of the following
areas +=C+"
a. leadership.
&. empowerment.
Chapter Two * The Evolution of Management Thinking
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c. participative strategy.
d. adaptive c$lt$res.
e. government controls.
Answer: e Level: 1 age: *1-*2 "ype: F
.1. 0hich of these means giving employees the power, freedom, %nowledge, and s%ills to
ma%e decisions and perform effectivelyC
a. +mpowerment
&. "@#
c. romotion
d. 9enchmar%ing
e. C$lt$re
Answer: a Level: 1 age: *1 "ype: F
.2. DDDDDDDD &ecomes extremely important in organizations that deal with ideas rather than
material goods.
a. (cientific management
&. 5pen information
c. "heory =
d. #an$fact$ring
e. +conomic forces
Answer: & Level: 2 age: *2 "ype: F
.'. DDDDDDDDDD are information systems that $nite a company;s ma2or &$siness f$nctions,
s$ch as order processing, prod$ct design, p$rchasing, and inventory.
a. Onowledge managements
&. +-&$sinesses
c. +nterprise reso$rce plannings
d. +xtranets
e. +-commerces
Answer: c Level: 1 age: *2 "ype: F
.!. DDDDDDDDDD are organizations that sell their prod$ct or service over the internet directly
to individ$al cons$mers.
a. 929
&. 92C
c. 928
d. C2C
e. 829
Chapter Two * The Evolution of Management Thinking
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Answer: & Level: 1 age: *2 "ype: F
.). DDDDDDDDDD are organizations that sell their prod$ct or service over the internet directly
to other commercial entities.
a. 929
&. 92C
c. 928
d. C2C
e. 829
Answer: a Level: 1 age: *2 "ype: F
.*. "he notion that 2o&s are so str$ct$red that employees don;t have to thin%, stems from
what theory of management practiceC
a. scientific management
&. h$man relations
c. h$man reso$rce management
d. total A$ality management
e. &$rea$cracy
Answer: a Level: 2 age: *! "ype: F
)"enario Questions
)"enario*+asmine ,-e
"he opport$nity to gain a foothold in the snac% crac%er ind$stry had 2$st &een fo$nd. Iasmine
Lye, an acco$nt exec$tive manager for 9a%ed 0heat ?nd$stries had developed an interest in
wheat crac%ers two months ago when one of her newly hired acco$nt execs, "ricia ar%er, had
convinced her a&o$t the high margins and promising f$t$re associated with that mar%et. Lye had
always &elieved that if yo$ do yo$r homewor% in hiring the &est people then it only ma%es sense
to listen to their recommendations and implement their s$ggestions.
Lye had given her approval to ar%er to explore opport$nities to move into this promising new
mar%et. "his morning, ar%er had reported that the Iac%son Corporation had severed its contract
with Feel <ood Crac%ers ?ncorporated. Apparently, the Feel <ood salesman had shared sensitive
information a&o$t Iac%son at a coc%tail party. ar%er had already esta&lished a good relationship
with Feel <ood &$yers and so recognized this as an opport$nity to expand her mar%et into wheat
crac%ers.
1. Lye7s management style reflects a &elief in
a. "heory >.
Chapter Two * The Evolution of Management Thinking
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&. developing her employees thro$gh control.
c. grieving theory.
d. all of the a&ove.
e. none of the a&ove.
Answer: a "ype: A
2. Lye7s &ehavior provides an example of
a. the $se of scalar rope.
&. division of organization.
c. the principle of inversion.
d. $nity of direction.
e. all of the a&ove.
Answer: d "ype: A
'. From a (ystem7s theory perspective
a. Lye sho$ld increase teamwor%, leading to more entropy.
&. Lye sho$ld listen to and reward her people well to increase synergy.
c. the Iac%son acco$nt was lost &eca$se Feel <ood was too closed to its
environment.
d. all of the a&ove.
e. none of the a&ove.
Answer: & "ype: A
!. Contingency theory recommends
a. Lye sho$ld manage all of her employees the way she manages ar%er.
&. the goal of every manager sho$ld &e high ret$rn on investment, so Lye
sho$ld expand her mar%et only if it increases F5?.
c. ar%er sho$ld foc$s on her expertise, recognizing the potential ris% of
fail$re with a new mar%et.
d. all of the a&ove.
e. none of the a&ove.
Answer: e "ype: A
)hort./nswer Questions

1. "he can &e defined as one in which everyone is engaged in identifying and
solving pro&lems, ena&ling the organization to contin$o$sly experiment, change, and
improve, th$s increasing its capacity to grow, learn, and achieve its p$rpose.
Chapter Two * The Evolution of Management Thinking
Test Bank * Page ##
Answer: learning organization age: !1
2. DDDDDDDD refer to the aspects of a c$lt$re that g$ide and infl$ence relationships among
people.

Answer: (ocial forces age: !'
'. refer to the infl$ence of political and legal instit$tions on people and
organizations.
Answer: olitical forces age: !'
!. pertain to the availa&ility, prod$ction, and distri&$tion of reso$rces in a
society.
Answer: +conomic forces age: !'
). A management perspective that emerged d$ring the nineteenth and early twentieth
cent$ries that emphasized a rational, scientific approach to the st$dy of management and
so$ght to ma%e organizations efficient operating machines is called .
Answer: classical perspective age: !)
*. List three of the &asic ideas of scientific management.

Answer: Any three of the following develop standard methods for doing each 2o&P select
wor%ers with appropriate a&ilitiesP train wor%ers in standard methodsP s$pport wor%ers
and eliminate interr$ptionsP and provide wage incentives.
age: !,

,. 0e&er7s vision of organizations that wo$ld &e managed on an impersonal, rational &asis is
called aJnK DDDDDDD.

Answer: &$rea$cracy age: !.
.. A s$&field of the classical management perspective that foc$sed on the total organization
rather than the individ$al wor%er, delineating the management f$nctions of planning,
organizing, commanding, coordinating, and controlling is called .
Answer: administrative principles age: !/
/. According to Fayol, similar activities in an organization sho$ld &e gro$ped together $nder
one manager. "his administrative principle is %nown as DDDDDDD.

Answer: $nity of direction age: )1
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11. A management perspective that emerged aro$nd the late nineteenth cent$ry that
emphasized $nderstanding h$man &ehavior, needs, and attit$des in the wor%place is
referred to as aJnK .
Answer: h$manistic perspective age: )1
11. A management perspective that s$ggests 2o&s sho$ld &e designed to meet higher-level
needs &y allowing wor%ers to $se their f$ll potential is called aJnK .
Answer: h$man reso$rces perspective age: )'
12. List the three ass$mptions associated with #c<regor7s "heory =.

Answer: J1K ?ndivid$als have an innate disli%e of wor% and will try to avoid itP J2K #ost
people m$st &e coerced to get them to p$t o$t a reasona&le level of effortP and J'K "he
typical person prefers to &e told what to do.

age: ))
1'. A management perspective that emerged after 0orld 0ar ??, and applied mathematics,
statistics, and other A$antitative techniA$es to managerial pro&lems is referred to as aJnK
.
Answer: management science perspective age: )*
1!. List the five components of the &asic systems theory of organizations.

Answer: inp$tsP a transformation processP o$tp$tsP feed&ac%P and the environment.

age: ),

1). "he concept that the whole is greater than the s$m of its parts is %nown as DDDDDDD.

Answer: synergy age: ).
1*. "he DDDDDDD view of management is an integration of the case and $niversalist
viewpoints.

Answer: contingency age: )/
1,. "he process &y which companies find o$t how others do something &etter than they do
and then try to copy andEor improve it is %nown as DDDDDDDD.

Answer: &enchmar%ing age: *1

1.. means giving employees the power, freedom, %nowledge, and s%ills to
ma%e decisions and perform effectively.
Chapter Two * The Evolution of Management Thinking
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Answer: +mpowerment age: *1
1/ "here are three types of e-commerce. "hey are DDDDDDDDDD.
Answer: &$siness-to-&$siness, &$siness-to-cons$mer, and cons$mer-to-cons$mer
age: *2
21 "he efforts to systematically to find, organize, and ma%e availa&le a company;s
intellect$al capital and to foster a c$lt$re of contin$o$s learning and %nowledge sharing so
that a company;s activities &$ild on what is already %nown is called DDDDDDDDDD.
Answer: %nowledge management age: *!
Essa- Questions
1 8isc$ss the advantages and disadvantages of "aylor7s (cientific #anagement.

AG(0+F:
"he advantages of scientific management incl$ded the standardization of wor%, the
systematic st$dy of wor%, the lin%ing of performance and pay, and improved prod$ctivity.
"he disadvantages incl$ded its fail$re to consider the social context within which wor%
too% place and its fail$re to appreciate wor%ers7 needs, other than their need for money.

Level: 2 age: !*-!,
2 "he writings of Fayol, "aylor, and 0e&er provide the fo$ndation for modern management.
?dentify the school of tho$ght associated with each writer and compare the foc$s that each
writer ta%es in relation to the organization.

AG(0+F:
Fayol is associated with the Administrative (chool, foc$sing on the manager level. "aylor
is associated with (cientific #anagement, and foc$sed on the wor% level. 0e&er is
associated with the 9$rea$cratic #odel, and his foc$s was on the level of the
organization.
Level: 2 age: !*, !., )1
' 9riefly descri&e what happened in the :awthorne (t$dies and explain the res$lts and
concl$sions of these st$dies.

AG(0+F:
:arvard researchers, wor%ing $nder the direction of +lton #ayo, were st$dying the effects
of vario$s lighting conditions on wor%er performance at the 0estern +lectric plant in
:awthorne, ?llinois. +ach time an experimental change was made, performance improved,
Chapter Two * The Evolution of Management Thinking
Test Bank * Page #&
regardless of the change. "he early concl$sion was that wor%ers perceived that their wor%
was important eno$gh to hire researchers to wor% with them, and this recognition of
importance was s$fficient to motivate improved performance. "his concl$sion led to the
development of the :$man Felations #ovement, stressing the importance of satisfied,
happy wor%ers. Fecent analysis s$ggests that money may have &een the single most
important motivating factor.
Level: ' age: )1-)2
! 9riefly descri&e systems theory, incl$ding synergy and negative entropy.

AG(0+F:
(ystems theory s$ggests that an organization can &e considered a system composed of a
n$m&er of interrelated s$&systems. "hese s$&systems incl$de people, str$ct$re,
technology, and goals. A change in one s$&system res$lts in a rippling effect on the other
s$&systems. #anaged properly, the s$&systems wor% well together and prod$ce more as a
whole system than the parts co$ld prod$ce wor%ing alone. "his is synergy. Gegative
entropy is the a&ility to resist the nat$ral tendency to disintegrate.

Level: 2 age: ),-).
) 8isc$ss the differences &etween the case view, the $niversalist view, and the contingency
view.

AG(0+F:
"hese viewpoints relate to the applica&ility of management principles. "he case view holds
that every sit$ation is $niA$e, th$s there are no $niversal principles. Conversely, the
$niversalist view &elieves that the same management principles will wor% across every
sit$ation in every organization. "he contingency view is an integration of these two, i.e.,
while there are no $niversal principles, there are common patterns and characteristics. "he
manager7s tas% is to identify what principles will wor% when, &ased on an analysis of %ey
contingencies.

Level: 2 age: ).-)/
* ?dentify and &riefly descri&e the interacting elements in a learning organization.
AG(0+F:
"he answer sho$ld foc$s on the following elements: Leadership, open information,
empowered employees, strong, adaptive c$lt$re, team-&ased str$ct$re, and participative
strategy. Fefer to exhi&it 2-1 in text.
Level: 2 age: *1-*2
,. 0hat are the three important ad2$stments that need to &e to create a learning organization
Chapter Two * The Evolution of Management Thinking
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in order to promote contin$o$s learningC 0hy is each importantC
AG(0+F:
(hifting to team-&ased str$ct$res, empowering employees, and sharing information are the
three ad2$stments that need to &e made. "eam-&ased str$ct$res are the &asic fo$ndation of
the str$ct$re. +mpowering gives employees the freedom, reso$rces, information, and
s%ills to ma%e decisions and perform effectively. (haring information gives the employees
the a&ility to identify needs and solve pro&lems &eca$se they are given the information
a&o$t what;s happening in the organization.
Level: 2 age: *1-*2

.. 0hat ma%es cons$mer-to-cons$mer e-commerce possi&leC 0hat are some examples of
cons$mer-to-cons$mer e-commerceC
AG(0+F:
Cons$mer-to-cons$mer e-commerce is made possi&le when an ?nternet-&ased &$siness
acts as an intermediary &etween and among cons$mers. +xamples of these are e9ay and
other 0e&-&ased a$ctions, Gapster, and (hare9ear.
Level: 1 age: *'
Chapter Two * The Evolution of Management Thinking
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