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Chapter 2 Managing
1) Henri Fayol was a major contributor to the field of classical management theory.
Answer: True
Rationale:
Henri Fayol was indeed a major contributor to classical management theory. He is known for his
fourteen principles of management, which include unity of command, division of work, and
scalar chain.
2) Frederick W. Taylor is commonly called the "father of scientific management."
Answer: True
Rationale:
Frederick W. Taylor is commonly referred to as the "father of scientific management" because of
his pioneering work in applying scientific principles to management practices, focusing on
improving efficiency and productivity.
3) The primary investigative tool in F.W. Taylor's research was motion study.
Answer: False
Rationale:
While motion study was an important part of Taylor's work, his primary investigative tool was
time study, which involved analyzing and timing the movements required to perform a job.
4) Motion study consists of reducing each job to the most basic movements possible.
Answer: True
Rationale:
Motion study involves breaking down each job into its basic elements or motions to eliminate
unnecessary movements and improve efficiency.

5) Taylor pioneered a system in which workers could earn a bonus in addition to the piece rate if
they exceeded their daily production quota.
Answer: False
Rationale:
Taylor's system focused on piece-rate pay, where workers were paid based on the amount they
produced, without additional bonuses for exceeding quotas.
6) Henri Fayol is regarded as the pioneer of administrative theory.
Answer: True
Rationale:
Fayol is often regarded as the pioneer of administrative theory due to his work on management
principles and functions, which laid the foundation for modern management practices.
7) Henri Fayol was more aware of the human side of production. According to him, the interests
of one person should take priority over the interests of the organization as a whole.
Answer: False
Rationale:
Fayol emphasized the importance of balancing the interests of individuals with the interests of
the organization as a whole. He believed that both were important for effective management.
8) Fayol defined centralization as raising the importance of the subordinate role.
Answer: False
Rationale:
Fayol defined centralization as the concentration of decision-making authority at the top levels of
an organization, not as raising the importance of the subordinate role.
9) According to Fayol, employee retention should not be given high priority as recruitment and
selection costs of hiring new workers is low.

Answer: False
Rationale:
Fayol emphasized the importance of employee retention, believing that it was more costeffective to retain and develop existing employees than to constantly recruit and train new ones.
10) A drawback of the classical approach is that it does not adequately emphasize human
variables.
Answer: True
Rationale:
One of the criticisms of the classical approach to management is that it tends to focus more on
the technical and structural aspects of organizations and less on the human factors, such as
motivation and satisfaction.
11) The behavioral approach to management emphasizes increasing production through an
understanding of people.
Answer: True
Rationale:
The behavioral approach focuses on how managers can understand and motivate their employees
to increase productivity, recognizing the importance of human factors in organizations.
12) The Hawthorne studies concluded that lighting and temperature changes within organizations
could significantly influence production.
Answer: False
Rationale:
The Hawthorne studies did not conclude that lighting and temperature changes significantly
influence production. Instead, they highlighted the importance of social factors, such as
employee attitudes and group dynamics, in influencing productivity.

13) One conclusion of the Hawthorne studies was that social groups in organizations could
effectively exert pressure to influence individuals to disregard monetary incentives.
Answer: True
Rationale:
The Hawthorne studies found that social groups within organizations could exert strong
influence over individual behavior, sometimes causing individuals to disregard monetary
incentives in favor of group norms and pressures.
14) Abraham Maslow was a major contributor to the human relations movement in management.
Answer: True
Rationale:
Abraham Maslow's hierarchy of needs theory, which emphasizes the importance of fulfilling
individuals' basic needs to motivate them, contributed to the human relations movement in
management.
15) The behavioral science approach suggests that managers can best improve their organizations
by using the scientific method and mathematical techniques to solve operational problems.
Answer: False
Rationale:
The behavioral science approach focuses on applying social science research methods and
theories to understand and improve organizational behavior, but it does not emphasize the use of
mathematical techniques to solve operational problems.
16) The use of mathematical models to investigate the decision situation is typical in
management science applications.
Answer: True
Rationale:

Management science uses mathematical models and analytical methods to help managers make
better decisions, especially in complex and uncertain situations.
17) The contingency approach is based on the premise that there is one best way to solve a
management problem in all organizations.
Answer: False
Rationale:
The contingency approach argues that the best way to manage a situation depends on various
factors, such as the nature of the task, the environment, and the individuals involved, and there is
no one-size-fits-all solution.
18) The management science approach emphasizes "if-then" relationships: "If" this situational
variable exists, "then" a manager probably would take this action.
Answer: False
Rationale:
While the management science approach uses mathematical models to analyze and solve
problems, it does not necessarily focus on simple "if-then" relationships, as management
situations are often complex and multifaceted.
19) A closed system is not influenced by, and does not interact with, its environment.
Answer: True
Rationale:
A closed system is one that does not interact with its environment and is not influenced by
external factors. In contrast, an open system interacts with and is influenced by its environment.
20) The use of three sources of information — classical, behavioral, and management science
approaches — to analyze the management system is referred to as triangular management.
Answer: True
Rationale:

Triangular management refers to the use of three approaches — classical, behavioral, and
management science — to analyze and improve the management system, recognizing the
importance of integrating insights from each approach.
21) The ________ approach to management was the product of the first concentrated effort to
develop a body of management thought. The management writers who participated in this effort
are considered the pioneers of management study.
A) behavioral
B) management science
C) classical
D) contingency
E) system
Answer: C
Rationale:
The classical approach to management was the first systematic attempt to develop a body of
management thought. Management writers like Frederick W. Taylor, Henri Fayol, and Max
Weber are considered pioneers in this approach.
22) The classical approach to management recommends that ________.
A) managers enhance organizational success by building appropriate relationships with people
B) managers improve their organizations by using the scientific method and mathematical
techniques to solve operational problems
C) managers continually strive to increase organizational efficiency to increase production
D) what managers do in practice depends on, or is contingent upon, a given set of circumstances
E) to fully understand the operation of an entity, the entity must be viewed as a system
Answer: C

Rationale:
The classical approach emphasizes increasing organizational efficiency to increase production,
focusing on principles such as division of labor, authority, discipline, and unity of command.
23) Lower-level management analysis concentrates on the "one best way" to perform a task. The
process of finding this "one best way" is known as ________.
A) higher-level management
B) contingency management
C) comprehensive management
D) scientific management
E) system management
Answer: D
Rationale:
Scientific management, as advocated by Frederick W. Taylor, focuses on finding the "one best
way" to perform a task through scientific analysis and experimentation.
24) ________ consists primarily of the work of Frederick W. Taylor, Frank and Lillian Gilbreth,
and Henry L. Gantt.
A) Higher-level management analysis
B) The behavioral approach
C) Lower-level management analysis
D) Management science
E) Comprehensive management
Answer: C
Rationale:

Lower-level management analysis, also known as scientific management, includes the work of
Taylor, Gilbreths, and Gantt, who focused on improving efficiency at the operational level.
25) ________ is commonly called the "father of scientific management" because of the
significance of his contributions.
A) Frank Gilbreth
B) Henry L. Gantt
C) Lillian Gilbreth
D) Henri Fayol
E) Frederick W. Taylor
Answer: E
Rationale:
Frederick W. Taylor is commonly referred to as the "father of scientific management" because of
his pioneering work in applying scientific principles to management practices.
26) F.W. Taylor's approach was unpopular with workers and unions because they feared that
reengineering their jobs would lead to ________.
A) lower piecework rates
B) a decrease in productivity
C) workers losing their jobs
D) longer work days
E) an increase in quality
Answer: C
Rationale:
Taylor's approach to scientific management often involved reengineering jobs, which workers
and unions feared would lead to job loss as tasks were streamlined and simplified.

27) ________, the primary investigative tool in the Gilbreths' research, consists of reducing each
job to the most basic movements possible.
A) Ergonomics
B) Motion study
C) Piecework
D) Reductionism
E) Division of work
Answer: B
Rationale:
Motion study, a key concept in the work of the Gilbreths, involves breaking down jobs into their
basic movements to identify ways to improve efficiency.
28) Among the sample variables considered in analyzing motions, as pioneered by the Gilbreths,
the environmental variables include ________.
A) anatomy
B) habits
C) health
D) brawn
E) work clothes
Answer: E
Rationale:
In motion study, environmental variables such as work clothes can influence the efficiency of a
worker's movements and are considered during analysis.
29) The Gilbreths aimed to increase worker efficiency by ________.

A) reducing the number of movements taken to accomplish a task
B) enforcing minimum criteria for the types of workers hired for a job
C) instituting the piece-rate system for remuneration
D) understanding what motivates employees to complete a task
E) encouraging teamwork rather than individual work
Answer: A
Rationale:
The Gilbreths focused on reducing the number of movements required to complete a task as a
way to increase worker efficiency and productivity.
30) Which of the following approaches to management was advocated by Henry Gantt?
A) the contingency approach
B) using mathematical models to investigate the decision situation
C) using human relations skills to manage workers
D) work specialization and unity of command
E) task-scheduling and rewarding innovations
Answer: E
Rationale:
Henry Gantt advocated for task-scheduling and rewarding innovations as a way to improve
management practices and increase worker productivity.
31) According to Gantt, the role of a manager is to ________.
A) divide specialized work among individuals and groups
B) make it to the employees' interests for accomplishing tasks
C) choose the management tactics best suited to particular situations

D) convince workmen to do work which they have no desire to do
E) use mathematical models to investigate the decision situation
Answer: B
Rationale:
Gantt believed that managers should align the interests of employees with the accomplishment of
tasks, ensuring that employees are motivated and engaged in their work.
32) Managers use the Gantt chart to ________.
A) encourage worker initiative
B) conduct motion analysis of tasks
C) retain productive employees
D) monitor work schedules
E) reward innovation by workers
Answer: D
Rationale:
The Gantt chart is a tool used by managers to visually track and monitor work schedules, helping
to ensure that tasks are completed on time.
33) Which of the following is true of Henry Gantt's method of management?
A) The Gantt scheduling chart was found to be impractical and has fallen into disuse.
B) It gave less importance to the human side of production than F.W. Taylor's method.
C) Gantt believed that worker compensation should correspond only to production.
D) He considered that studying employee motivation was the role of scientific management.
E) It dealt with lower-level management analysis and not comprehensive analysis.
Answer: E

Rationale:
Gantt's method of management focused on lower-level management analysis, particularly on
improving efficiency and productivity at the operational level.
34) Under the piece-rate system pioneered by Taylor, ________.
A) workers were paid according to the amount they produced
B) managers develop their employees' work-related skills
C) each job was reduced to the most basic movement possible
D) workers were paid more than their managers
E) managers were paid only after the workers exceeded production
Answer: A
Rationale:
In Taylor's piece-rate system, workers were paid based on the amount they produced, providing
an incentive for increased productivity.
35) Which of the following did Gantt advocate in addition to Taylor's piece-rate compensation
system for workers?
A) decentralizing authority
B) a bonus for overproduction
C) medical insurance coverage
D) mandatory employee training
E) tenure and job security
Answer: B
Rationale:

Gantt advocated for a bonus for overproduction in addition to Taylor's piece-rate system,
providing additional incentives for workers to exceed production targets.
36) Gantt believed in worker compensation that corresponded to production, through the piecerate system, and overproduction, through the ________.
A) staggered system
B) bonus system
C) pension system
D) interest system
E) profit system
Answer: B
Rationale:
Gantt believed that workers should be compensated for overproduction through a bonus system,
in addition to their regular piece-rate compensation.
37) Under classical management theory, comprehensive analysis of management concerns the
entire range of managerial performance. The primary contributor to this category was ________.
A) Henri Fayol
B) Frederick W. Taylor
C) Henry L. Gantt
D) Frank Gilbreth
E) Ludwig von Bertalanffy
Answer: A
Rationale:

Henri Fayol is considered the primary contributor to the comprehensive analysis of management
under classical management theory, focusing on the overall effectiveness of managerial
performance.
38) Because of his writings on the elements and general principles of management, Henri Fayol
is usually regarded as the pioneer of ________.
A) strategic management applications
B) organizational behavior
C) business finance model
D) operations management theory
E) administrative theory
Answer: E
Rationale:
Fayol is regarded as the pioneer of administrative theory due to his work on management
principles and functions, which laid the foundation for modern management practices.
39) To use which of the following resources of the organization, in a best way, did Fayol present
work specialization?
A) human
B) capital
C) monetary
D) material
E) technological
Answer: A
Rationale:

Fayol presented work specialization as a way to use human resources in the organization most
effectively, by assigning tasks based on individuals' skills and abilities.
40) One of the general principles of management explained by Fayol is "unity of command."
What does this principle mean?
A) The entire organization should be moving toward a common objective.
B) The interests of one person should take priority over the interests of the organization.
C) All workers should receive orders from only one manager.
D) All workers should be given the same orders by managers.
E) All employees should be treated as equally as possible.
Answer: C
Rationale:
"Unity of command" means that each worker should receive orders from only one manager,
helping to avoid confusion and conflicting instructions.
41) D&B Inc. conducted a review of its organizational practices and concluded that changes to
the current system would result in increased efficiency. The company proposed a change in work
timings and remuneration policies and implemented it for a trial period. When the employees
were surveyed by their managers to discover their reaction to the changes, most employees noted
that the new system boosted productivity, though a few reported that accommodating to the new
system was difficult. However, management decided to go ahead and implement the new system.
The actions of the management can be explained by Fayol's principle of ________.
A) unity of command and direction
B) lowering the importance of the subordinate role
C) subordination of the individual to the general interest
D) specialization of work
E) esprit de corps

Answer: C
Rationale:
Fayol's principle of "subordination of the individual to the general interest" suggests that
individual interests should be subordinated to the interests of the organization as a whole. In this
scenario, management prioritized the perceived benefits of the new system for the organization's
efficiency over the individual concerns of some employees.
42) One of the general principles of management suggested by Fayol is centralization. What is
centralization?
A) Centralization is increasing the importance of the subordinate role.
B) Centralization directs that the entire organization should be moving toward a common
objective.
C) Centralization is lowering the importance of the subordinate role.
D) Centralization directs that all materials and people related to a specific kind of work should be
assigned to the same general location.
E) Centralization directs that the entire organization need not be moving toward a common
objective.
Answer: C
Rationale:
Centralization, according to Fayol, involves concentrating decision-making authority at the top
levels of the organization and reducing the importance of the subordinate role in decisionmaking.
43) In Fayol's principles of management, "decentralization" implies that ________.
A) the entire organization should be moving toward a common objective
B) the importance of the subordinate role should be increased
C) work should be divided among individuals

D) the interests of one person should be prioritized over the interests of the organization
E) workers should receive orders from a number of managers
Answer: B
Rationale:
Fayol believed that decentralization involved increasing the importance of the subordinate role in
decision-making and giving more autonomy to lower levels of the organization.
44) Each manager in an organization possesses certain amounts of authority. For example, the
president possesses the most authority; the first-line supervisor, the least. According to Fayol,
this is known as ________.
A) unity of command
B) esprit de corps
C) stability of tenure
D) scalar chain
E) decentralization
Answer: D
Rationale:
Fayol's concept of scalar chain refers to the hierarchy of authority in an organization, where each
level of management has a different level of authority, with higher levels having more authority
than lower levels.
45) Lynn is a manager in a company that manufactures optical fibre cables. She follows the
Fayol principle of "esprit de corps" in her interactions with her team. Which of the following
does this imply?
A) Lynn's team members are independent.
B) Lynn's team members are fiercely competitive.

C) Lynn's team members enjoy working in a centralized hierarchical system.
D) Lynn's team members receive orders only from her.
E) Lynn's team members are harmonious and upbeat.
Answer: E
Rationale:
"Esprit de corps" refers to the principle of fostering team spirit and unity among employees. In
this scenario, Lynn's team members are likely to be harmonious and upbeat, working together
towards common goals.
46) Jane, a manager in a soda company, believes that the classical approach to management will
help her schedule her employees' tasks and handle people better. But using only the classical
approach may not be an ideal approach because ________.
A) exact scientific knowledge of what could be done by a worker is substituted for opinion
B) the scientific approach has proven to be ineffective in increasing production
C) it is concerned with the entire range of managerial performance and not just the job design
D) it does not adequately emphasize the human variables in the production process
E) it does not have a "one best way" approach to management problems
Answer: D
Rationale:
The classical approach to management, while effective in improving efficiency and productivity,
often neglects the human variables in the production process, such as motivation and job
satisfaction. Using only the classical approach may lead to issues related to employee morale and
engagement.
47) Gene Co., a pharmaceutical company, directs its management to increase production through
an understanding of people. The company believes that if managers understand their people and

adapt their organizations to them, organizational success will follow. Which management
approach is Gene Co. adopting in this scenario?
A) system approach
B) management science approach
C) classical approach
D) contingency approach
E) behavioral approach
Answer: E
Rationale:
Gene Co. is adopting the behavioral approach to management, which emphasizes understanding
and motivating employees to increase productivity. This approach recognizes the importance of
human factors in organizational success.
48) The Hawthorne Studies were conducted in two phases: the relay assembly test room
experiments and the bank wiring observation room experiment. Which of the following
approaches was developed based on these studies?
A) the behavioral approach
B) the contingency approach
C) the system approach
D) the management science approach
E) the classical approach
Answer: A
Rationale:

The Hawthorne Studies, particularly the relay assembly test room experiments, led to the
development of the behavioral approach to management, which focuses on understanding and
motivating employees to improve productivity.
49) One of the phases of the Hawthorne studies was the relay assembly test room experiments.
The experimenters believed that if they studied productivity long enough, under different
working conditions, they would discover the working conditions that maximized production.
Thus, the orientation that these experiments originally had was of ________.
A) comprehensive management
B) scientific management
C) behavioral management
D) contingency management
E) system management
Answer: B
Rationale:
The relay assembly test room experiments were initially oriented towards scientific management,
with a focus on finding the optimal working conditions to maximize productivity through
scientific analysis.
50) Which of the following conclusions was drawn by the experimenters from the relay assembly
test room experiments of the Hawthorne studies?
A) The subjects did not find working in the test room enjoyable.
B) There is no consistent relationship between productivity and lighting intensity.
C) Subjects continued to show decreased production under all lighting conditions.
D) Worker productivity increased with higher light intensity than lower light intensity.
E) Worker productivity increased with lower light intensity than higher light intensity.
Answer: B

Rationale:
One of the conclusions drawn from the relay assembly test room experiments was that there was
no consistent relationship between productivity and lighting intensity, contrary to the initial
expectations of the experimenters.
51) The purpose of the bank wiring observation room experiment, which is one of the phases of
the Hawthorne studies, was to analyze ________.
A) the impact of scientifically designed jobs on worker efficiency
B) the most basic movements necessary to achieve a task
C) the system improvements through task-scheduling innovation
D) the social relationships in a work group
E) the impact of unity of command in terms of productivity
Answer: D
Rationale:
The bank wiring observation room experiment aimed to analyze the social relationships within a
work group and how these relationships influenced individual and group behavior in the
workplace.
52) Which one of the following conclusions was drawn by the experimenters from the bank
wiring observation room experiment?
A) The subjects did not find working in the test room enjoyable.
B) Human factors within organizations could significantly influence production.
C) Members of the work group pressured one another to work harder so that each group member
would receive more pay.
D) Improved working conditions resulted in increased production.
E) Social groups in organizations could effectively exert pressure to influence individuals to
disregard monetary incentives.

Answer: E
Rationale:
The conclusion drawn from the bank wiring observation room experiment was that social groups
in organizations could effectively exert pressure to influence individuals to disregard monetary
incentives, highlighting the importance of social dynamics in the workplace.
53) Hawthorne study results helped managers to see that ________.
A) better working conditions are subject to the managers' discretion
B) reducing each work task to the most basic movements improves worker efficiency
C) worker bonuses for overproduction helped increase productivity
D) the best way to increase productivity was to set a good piece-rate system
E) understanding what motivates employees is a critical part of being a manager
Answer: E
Rationale:
The Hawthorne studies highlighted the importance of understanding what motivates employees,
leading managers to recognize the significance of addressing the social and psychological needs
of employees in addition to providing good working conditions.
54) ________, sparked off by the Hawthorne studies, is a people-oriented approach to
management in which the interaction of people in organizations is studied to judge its impact on
organizational success.
A) The behavioral study movement
B) The human relations movement
C) The scientific management movement
D) The "one best way" model
E) The motion studies initiative

Answer: B
Rationale:
The human relations movement, sparked by the Hawthorne studies, emphasizes the importance
of understanding and managing the social and psychological aspects of the workplace to improve
organizational success.
55) The ultimate objective of the human relations approach is to ________.
A) find "one best way" of managing people in an organization
B) analyze the impact of environmental factors on worker behavior
C) increase production by analyzing mathematical models of human behavior
D) develop workers' job skills and reduce the movements necessary for them to accomplish a
task
E) enhance organizational success by building appropriate relationships with people
Answer: E
Rationale:
The human relations approach aims to enhance organizational success by building appropriate
relationships with people, recognizing that satisfied and motivated employees are more
productive and contribute to organizational goals.
56) According to Abraham Maslow, managers must understand the following needs of
organization members: physiological, safety, social, esteem, and ________.
A) motivational
B) leadership
C) monetary
D) self-actualization
E) intrinsic

Answer: D
Rationale:
Maslow's hierarchy of needs includes physiological, safety, social, esteem, and self-actualization
needs, with self-actualization representing the highest level of need.
57) The management science approach suggests that managers can best improve their
organizations by ________.
A) using the scientific method and mathematical techniques to solve operational problems
B) understanding the physiological, safety, social, esteem, and self-actualization needs of
organization members
C) providing wage incentives to workers exceed their target production
D) reducing the number of steps involved in performing a particular task
E) making sure that all employees are treated as equally as possible
Answer: A
Rationale:
The management science approach emphasizes using the scientific method and mathematical
techniques to solve operational problems and improve organizational efficiency and
effectiveness.
58) In the scientific approach to management advocated by management science researchers,
after using a model to deduce how the system will behave under conditions, researchers must
________.
A) observe the workings of the parts of the system
B) separate the system into its component parts
C) construct a generalized framework of the system
D) observe the system whose behavior must be explained

E) test the model by performing an experiment on the actual system
Answer: E
Rationale:
After using a model to deduce how the system will behave, researchers in the management
science approach must test the model by performing an experiment on the actual system to
validate the model's predictions.
59) The scientific method dictates that scientists must test the model by performing an
experiment on ________.
A) the actual system to see whether the effects of changes predicted using the model actually
occur when the changes are made
B) various systems to see whether the effects of changes predicted using the model actually
occur when the changes are made
C) various systems to see whether the necessary changes can be incorporated
D) the actual system and other systems to see whether the necessary changes can be incorporated
E) various systems to see whether the necessary changes can be incorporated on the actual
system
Answer: A
Rationale:
The scientific method requires scientists to test the model by performing an experiment on the
actual system to determine whether the effects of changes predicted by the model actually occur
when the changes are made.
60) Which one of the following approaches has its origin in World War II, when scientists were
asked to help the military solve complex operational problems?
A) classical approach
B) operations research approach

C) behavioral approach
D) human relations approach
E) systems approach
Answer: B
Rationale:
The operations research approach originated during World War II when scientists were asked to
help the military solve complex operational problems, such as logistics and strategy planning.
61) Which of the following is a characteristic of situations in which management science
techniques are applied?
A) Managers need help analyzing a large number of variables.
B) The use of behavioral models to investigate the decision situation is indicated.
C) Managers want to determine the psychological and behavioral attitudes of employees.
D) Managers want to determine the quality of the customer experience.
E) Social implications are used as guidelines for making a particular decision.
Answer: A
Rationale:
Management science techniques are applied in situations where managers need help analyzing a
large number of variables to make informed decisions. These techniques use mathematical
models to represent complex systems and help managers understand the implications of different
decision choices.
62) Which of the following statements is true for the management science approach?
A) It is only suitable for management problems with a small number of variables.
B) The use of behavioral models to investigate the decision situation is typical in management
science applications.

C) Management science techniques are not suited for analyzing quantifiable factors.
D) Management science techniques decrease the effectiveness of managers in decision making.
E) Management science applications generally use economic implications as guidelines for
making a particular decision.
Answer: E
Rationale:
The management science approach uses mathematical models and quantitative techniques to
solve management problems. It emphasizes using scientific methods to analyze complex
situations and make decisions based on economic implications.
63) One of the primary characteristics present in situations in which management science
techniques are applied is ________.
A) that the management problems have only a few variables
B) that the situation deals with quantifiable factors such as sales
C) that the situation deals with the physiological, safety, social, esteem, and self-actualization
needs of organization members
D) that the situation deals with assessing qualitative factors of the workplace or environment
E) that social implications are the guidelines for making a particular decision
Answer: B
Rationale:
Management science techniques are applied in situations where the problems involve
quantifiable factors that can be analyzed using mathematical models. These techniques are used
to analyze sales, production, inventory, and other factors that can be quantified.
64) The use of mathematical models to investigate the decision situation is typical in ________.
A) the classical approach

B) lower-level management analysis
C) upper-level management analysis
D) management science applications
E) motion study techniques
Answer: D
Rationale:
The management science approach uses mathematical models to represent complex decision
situations and analyze the implications of different decisions. This approach is used in upperlevel management analysis to solve complex problems.
65) Leo is analyzing ways to improve efficiency and productivity in a particular organization.
The management problems being studied are very complicated and he needs help analyzing a
large number of variables. He also intends to construct mathematical models to represent reality
to determine how the real-world situation might be improved. In this scenario, Leo is applying
the ________.
A) systems approach
B) management science approach
C) lower-level management analysis approach
D) motion-study techniques approach
E) contingency approach
Answer: B
Rationale:
Leo is applying the management science approach, which uses mathematical models to analyze
complex problems and improve decision-making in organizations. This approach is used to
analyze a large number of variables and construct models to represent real-world situations.

66) ________ to management emphasizes that what managers do, in practice, depends on the
given set of circumstances.
A) The classical approach
B) The lower-level management analysis approach
C) The management science approach
D) The contingency approach
E) The comprehensive management analysis approach
Answer: D
Rationale:
The contingency approach to management emphasizes that managerial decisions and actions
depend on the specific circumstances of a situation. It recognizes that there is no one-size-fits-all
solution to management problems.
67) Jenna and two of her college friends recently initiated their own start-up. Jenna is in charge
of recruiting people and personnel management. She hasn't had any experience in managing
people and wants to establish a clear approach to management. However, she notices that the
decisions she makes often vary depending on the people and situations. She realizes that the way
she manages programmers needs a different outlook from the way she manages accountants. The
most appropriate approach that Jenna could use in this scenario is the ________.
A) classical approach
B) behavioral approach
C) management science approach
D) comprehensive management approach
E) contingency approach
Answer: E
Rationale:

The contingency approach to management is the most appropriate for Jenna because it
emphasizes that managerial decisions and actions depend on the specific circumstances of a
situation. It recognizes that different situations require different management approaches.
68) The ________ approach to management emphasizes "if-then" relationships: "If" this
situational variable exists, "then" a manager probably would take this action.
A) contingency
B) management science
C) behavioral
D) comprehensive management analysis
E) classical
Answer: A
Rationale:
The contingency approach to management emphasizes "if-then" relationships, where the
appropriate managerial action depends on the specific circumstances or variables present in a
situation. Managers must adapt their actions to fit the unique circumstances they face.
69) The ________ in which various management methods have the best chance of success are
attempted to be outlined by the contingency approach.
A) conditions
B) techniques
C) tools
D) guidelines
E) methods
Answer: A
Rationale:

The contingency approach attempts to outline the conditions in which various management
methods are most likely to succeed. It recognizes that different situations require different
management approaches for optimal outcomes.
70) Which of the following statements is supported by the contingency approach to
management?
A) There is one best way to solve a management problem in any organization.
B) Managers' decisions vary depending on the particular situation and the people involved.
C) In most cases, solutions to similar problems will apply across organizations.
D) Managers within the same organization should follow the same solution for similar problems.
E) Managers should make decisions that are consistent from employee to employee.
Answer: B
Rationale:
The contingency approach to management supports the idea that managers' decisions should vary
depending on the specific circumstances of a situation and the people involved. It emphasizes
that there is no one-size-fits-all solution to management problems.
71) Dress codes are a contentious subject in workplaces. Gen Y workers favor a more casual
style than older workers, who are often uncomfortable with the idea of wearing casual clothes to
work. Human resources departments often find it difficult to enforce company dress codes
appropriately. Managers find that one of the ways to address this situation is by using the
contingency approach. Which of the following is the best example of the contingency approach
to management?
A) Rotec Inc. requires all employees to dress formally throughout the week, and allows business
casuals on Fridays.
B) Sandman Designs allows employees who don't meet clients to dress casually, while
employees who must meet clients are required to wear formals.

C) G&B Solutions developed a series of guidelines to let employees know what is considered
appropriate and inappropriate office wear.
D) Waterstones observed and compared employee behavior and productivity on "formal wear"
and "casual wear" days and used the findings to devise a company dress code.
E) Letterman Inc. invited employees to share their clothing preferences and used these
suggestions to frame a company dress code.
Answer: B
Rationale:
The contingency approach to management emphasizes that there is no one-size-fits-all solution
and that management practices should be tailored to fit the situation. In this case, Sandman
Designs has tailored its dress code policy based on the situation (whether employees meet clients
or not), which aligns with the principles of the contingency approach.
72) ________ is recognized as the founder of general system theory.
A) Ludwig von Bertalanffy
B) Henri Fayol
C) Abraham Maslow
D) L. Thomas Hopkins
E) F.W. Taylor
Answer: A
Rationale:
Ludwig von Bertalanffy is credited with founding general system theory, which is an
interdisciplinary practice that describes systems with interacting components.
73) If a television (as a whole) is to exist and serve its purpose, its screen, controls, and other
parts must function in a predetermined way, regardless of the weather. This is an example of a(n)
________.

A) static system
B) open system
C) passive system
D) closed system
E) conditional system
Answer: D
Rationale:
A closed system is self-contained and does not interact with its environment. In this case, the
television's components must function regardless of external factors like weather, indicating a
closed system.
74) Constant interaction with the environment influences a human's state of existence and future.
Hence, a human is an example of a(n) ________.
A) static system
B) inert system
C) closed system
D) conditional system
E) open system
Answer: E
Rationale:
An open system interacts with its environment, exchanging matter, energy, or information.
Humans constantly interact with their environment, making them an example of an open system.
75) According to the guidelines suggested by L. Thomas Hopkins for anyone conducting system
analysis, the nature of the part and its function is determined by its ________.
A) position in the whole

B) importance to the operation
C) structural integrity
D) source and origin
E) design and orientation
Answer: A
Rationale:
In system analysis, the nature of a part and its function is determined by its position in the whole
system, as stated by L. Thomas Hopkins.
76) In terms of management system, the cheese used in the making of a sandwich at a restaurant
is a(n) ________.
A) finished good
B) organizational output
C) production process
D) organizational process
E) organizational input
Answer: E
Rationale:
The cheese used in making a sandwich is an input to the restaurant's production process, making
it an organizational input.
77) The use of the classical, behavioral, and management science approaches as sources of
information to analyze the management system is referred to as ________.
A) open-system management
B) democratic management

C) triangular management
D) middle-level management
E) lower-level management
Answer: C
Rationale:
Triangular management refers to the synthesis of classical, behavioral, and management science
approaches in analyzing the management system.
78) A synthesis of classically based information, behaviorally based information, and
management science-based information is critical to the effective use of the ________.
A) management system
B) operations system
C) science approach
D) classical approach
E) behavioral approach
Answer: A
Rationale:
The effective use of the management system requires a synthesis of information from classical,
behavioral, and management science approaches.
79) Every Monday morning, the hundred-odd employees at Axis Systems Ltd. meet to discuss
the work situation. The managers of various departments summarize what their departments have
done over the past week. Employees can track the various stages of any project and understand
how their tasks fit into the whole process. Which of the following aspects of a learning
organization does this scenario illustrate?
A) shared vision

B) team learning
C) personal mastery
D) systems thinking
E) challenging of mental models
Answer: D
Rationale:
Systems thinking involves understanding how various parts of an organization interact and how
individual actions impact the whole. In this scenario, employees can track the various stages of
projects and understand their role in the process, demonstrating systems thinking.
80) A ________ is an organization that does well in creating, acquiring, and transferring
knowledge, and in modifying behavior to reflect new knowledge.
A) conducive organization
B) mastering organization
C) learning organization
D) transfer organization
E) modified organization
Answer: C
Rationale:
A learning organization is characterized by its ability to create, acquire, and transfer knowledge,
as well as modify behavior based on new knowledge.
81) ________ emphasize systematic problem solving, experimenting with new ideas, learning
from experience and past history, learning from the experiences of others, and transferring
knowledge rapidly throughout the organization.
A) Systems thinking

B) Contingency approach
C) Creative environments
D) Learning organizations
E) Managers
Answer: D
Rationale:
Learning organizations are characterized by their emphasis on systematic problem solving,
experimenting with new ideas, learning from experience and past history, learning from the
experiences of others, and transferring knowledge rapidly throughout the organization.
82) In a learning organization, every organization member should understand his or her own job
and how the jobs fit together to provide final products to the customer. This is known as
________.
A) personal mastery
B) team learning
C) challenging of mental models
D) shared vision
E) systems thinking
Answer: E
Rationale:
Systems thinking in a learning organization involves every member understanding their own job
and how it fits into the larger process of providing final products or services to customers.
83) Organization members routinely challenge the way business is done and the thought
processes people use to solve organizational problems. This is known as ________.
A) challenging of mental models

B) team learning
C) personal mastery
D) challenging systems thinking
E) learning experience
Answer: A
Rationale:
Challenging of mental models in a learning organization involves questioning and challenging
the way things are done and the underlying thought processes used to solve organizational
problems.
84) Which of the following is the best example of a learning organization?
A) Patersons, a family firm, has been in business for a century and operates in much the same
way as it did when it first began. Many find the company culture paternalistic, but it provides
generous employee benefits, which is a definite advantage.
B) Lowry Ltd emphasizes the reductionist philosophy in management: the company attempts to
analyze and understand operational problems by reducing them to the interactions of their parts.
C) Cleary Consulting takes pride in the fact that all its departments are autonomous and selfsufficient. Each functions independently, with minimal interaction with other departments.
D) Nesbit & White has been in business for just two years, and the small firm still operates
almost informally. The weekly company meeting gives employees a sense of community and a
chance to know how everyone is working to achieve their common goals.
E) Park Systems has been immensely successful in a very short time. The key to this has been
the individual freedom that it offers employees, who develop their own ways of working and
solving problems. The company concentrates only on the end result.
Answer: D
Rationale:

Nesbit & White best exemplifies a learning organization as it emphasizes weekly company
meetings where employees share experiences and insights, fostering a culture of learning and
understanding of how everyone contributes to common goals.
85) How is lower-level management analysis different from comprehensive analysis of
management? Is the latter approach suitable for an organization focusing on increasing
productivity by concentrating on the "one best way" to perform a task? Explain your answer.
Answer: The two areas in the classical approach are the lower-level management analysis and
comprehensive analysis of management.
Lower-level management analysis consists primarily of the work of Frederick W. Taylor, Frank
and Lillian Gilbreth, and Henry L. Gantt. These individuals studied mainly the jobs of workers at
lower levels of the organization. Lower-level management analysis concentrates on the "one best
way" to perform a task; that is, it investigates how a task situation can be structured to get the
highest production from workers.
Managers who embrace the comprehensive view are concerned with the entire range of
managerial performance. The most notable contributor to this view was Henri Fayol. The
elements of management he outlined — planning, organizing, commanding, coordinating, and
control — are still considered worthwhile divisions under which to study, analyze, and affect the
management process.
For an organization focusing on increasing productivity by concentrating on the "one best way"
to perform a task, the lower-level management approach is best suited if the tasks are applicable
only to the workers and lower management. But by embracing the comprehensive view the
organization can address the entire range of managerial performance, if required.
86) List any seven general principles of management and their defining themes as described by
Fayol.
Answer: (Students may write about any seven of the following points.)
Fayol's general principles of management cover a broad range of topics, but organizational
efficiency, the handling of people, and appropriate management action are the three general
themes he stresses.

1. Division of work — Work should be divided among individuals and groups to ensure that
effort and attention are focused on special portions of the task. Fayol presented work
specialization as the best way to use the human resources of the organization.
2. Authority — The concepts of authority and responsibility are closely related. Authority was
defined by Fayol as the right to give orders and the power to exact obedience. Responsibility
involves being accountable, and is therefore naturally associated with authority. Whoever
assumes authority also assumes responsibility.
3. Discipline — A successful organization requires the common effort of workers. Penalties
should be applied judiciously to encourage this common effort.
4. Unity of command — Workers should receive orders from only one manager.
5. Unity of direction — The entire organization should be moving toward a common objective,
in a common direction.
6. Subordination of individual interests to the general interests — The interests of one person
should not take priority over the interests of the organization as a whole.
7. Remuneration — Many variables, such as cost of living, supply of qualified personnel, general
business conditions, and success of the business, should be considered in determining a worker's
rate of pay.
8. Centralization — Fayol defined centralization as lowering the importance of the subordinate
role. Decentralization is increasing the importance. The degree to which centralization or
decentralization should be adopted depends on the specific organization in which the manager is
working.
9. Scalar chain — Managers in hierarchies are part of a chainlike authority scale. Each manager,
from the first-line supervisor to the president, possesses certain amounts of authority. The
president possesses the most authority; the first-line supervisor, the least.
Lower-level managers should always keep upper-level managers informed of their work
activities. The existence of a scalar chain and adherence to it are necessary if the organization is
to be successful.

10. Order — For the sake of efficiency and coordination, all materials and people related to a
specific kind of work should be assigned to the same general location in the organization.
11. Equity — All employees should be treated as equally as possible.
12. Stability of tenure of personnel — Retaining productive employees should always be a high
priority of management. Recruitment and selection costs, as well as increased product reject
rates, are usually associated with hiring new workers.
13. Initiative — Management should take steps to encourage worker initiative, which is defined
as new or additional work activity undertaken through self-direction.
14. Esprit de corps — Management should encourage harmony and general good feelings among
employees.
87) What is the behavioral approach to management?
Answer: The behavioral approach to management emphasizes increasing production through an
understanding of people. According to proponents of this approach, if managers understand their
people and adapt their organizations to them, organizational success will usually follow.
88) What is the human relations movement in management theory? How would you, as a
manager in an organization, use the human relations approach to manage employees?
Answer: The Hawthorne Studies sparked the human relations movement, a people-oriented
approach to management in which the interaction of people in organizations is studied to judge
its impact on organizational success. The ultimate objective of this approach is to enhance
organizational success by building appropriate relationships with people.
Student answers may vary but they need to explain how they would incorporate humane methods
in managing people, focus on building appropriate relationships with people and what facilities
would encourage these tasks.
89) How does a manager's understanding of his employees' physiological, safety, social, esteem,
and self-actualization needs improve productivity?
Answer: Student answers may vary.

An individual pursues a task that best meets his needs — an employee is no different. Employees
continue with organizations that meet their needs, and once they don't, the employees move on to
other avenues. By understanding the various needs of an employee, such as physiological, safety,
social, esteem, and self-actualization needs, the manager can create an environment that is
conducive to meet these needs. This motivational environment is ideal for encouraging employee
behaviors that result in increased productivity.
90) What are the steps involved in using the scientific method?
Answer: The scientific method dictates that scientists:
1. Systematically observe the system whose behavior must be explained to solve the problem.
2. Use these specific observations to construct a generalized framework (a model) that is
consistent with the specific observations and from which consequences of changing the system
can be predicted.
3. Use the model to deduce how the system will behave under conditions that have not been
observed but could be observed if the changes were made.
4. Finally, test the model by performing an experiment on the actual system to see whether the
effects of changes predicted using the model actually occur when the changes are made.

Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546

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