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Fundamentals of Management, 7e (Robbins/DeCenzo/Coulter) History Module 1) People value history because it can help put events that are

taking place today into perspective. Answer: TRUE E planation: !nowing how we got to where we are today helps "anagers "ake decisions about the #uture. $or e a"ple% looking back and seeing how things have changed since the &ndustrial Revolution allows current "anagers to see that organi'ations and "anage"ent evolve(and that continued evolution should be e pected in the #uture. )i##: * Page Re#: *+ *) The Egyptian pyra"ids are an e a"ple o# a pro,ect that was co"pleted without the aid o# "anagers. Answer: $A-.E E planation: To the contrary% there is no way that the planning% organi'ing% and supervising o# workers that the pro,ect re/uired could have been acco"plished without strong "anage"ent. )i##: 1 Page Re#: *+ +) The &ndustrial Revolution "arked the birth o# "anage"ent. Answer: $A-.E E planation: As evidenced by Egypt0s pyra"ids and the 1asse"bly lines1 o# 2enice% "anage"ent was around long be#ore the &ndustrial Revolution% so this state"ent is #alse. )i##: 1 Page Re#: *+ 3) Ada" ."ith argued that division o# labor increased productivity. Answer: TRUE E planation: ."ith #elt that breaking down co"ple ,obs into si"ple% repetitive tasks could allow a single worker to increase speed and thus increase productivity. ."ith0s idea was true% as division o# labor is seen to increase productivity% but only up to a point. )i##: 1 Page Re#: *+ 4) The division o# labor is also re#erred to by the ter" job specification. Answer: $A-.E E planation: The ter" that re#ers to division o# labor is ,ob specialization% not ,ob specification. )i##: 1 Page Re#: *+ 5) $actories in the &ndustrial Revolution needed to #orecast de"and to "ake sure that workers were paid #airly. Answer: $A-.E E planation: The reason to #orecast de"and was not to "ake sure that workers were well paid% but rather to "ake sure that there were enough supplies and trained workers to satis#y the de"and. )i##: 1 Page Re#: *+

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9) The &ndustrial Revolution began in the seventeenth century. Answer: $A-.E E planation: The date generally given #or the beginning o# the &ndustrial Revolution is 19:8% which is the late eighteenth century. )i##: * Page Re#: *+ :) The year 1995 is an i"portant date in the history o# "anage"ent because it saw the birth o# the world0s #irst de"ocratic republic. Answer: $A-.E E planation: 1995 is i"portant in "anage"ent history because it was the year Ada" ."ith0s groundbreaking book% Wealth of Nations% appeared. )i##: * Page Re#: *+ ;) <ob speciali'ation continues to be a popular way to increase productivity today. Answer: TRUE E planation: <ob speciali'ation% pro"oted by Ada" ."ith to be a way to dra"atically increase productivity% continues today to be a way to "ake an organi'ation "ore productive. =owever% productivity gains #ro" ,ob speciali'ation are not as dra"atic as ."ith thought% and li"ited in the long run. )i##: * Page Re#: *+ 18) 6lassical approaches to "anage"ent include the work o# Taylor% $ayol% and >eber. Answer: TRUE E planation: $rederick >. Taylor% ?a >eber% and =enri $ayol were "a,or contributors to the classical theories o# "anage"ent. =enry @antt and $rank and -illian @ilbreth were also i"portant classical contributors. )i##: * Page Re#: *3 11) 1E"ployee "otivation1 is the phrase "ost associated with scienti#ic "anage"ent. Answer: $A-.E E planation: The phrase "ost co""only associated with Taylor0s scienti#ic "anage"ent was 1one best way%1 re#erring the to best "ethod #or getting a task done. )i##: * Page Re#: *3 1*) $rank and -illian @ilbreth got their ideas #or "anage"ent #ro" the book Cheaper by the Dozen. Answer: $A-.E E planation: The @ilbreths didn0t get their ideas #ro" Cheaper by the Dozen% they actually wrote the book% based on their e perience raising a #a"ily o# twelve children. )i##: * Page Re#: *3 1+) The pri"ary issue that "otivated Taylor to create a "ore scienti#ic approach to "anage"ent was worker satis#action. Answer: $A-.E E planation: Taylor was searching #or e##iciency rather than worker satis#action. =e wanted to #ind the 1one best way1 to do a ,ob so all workers in an organi'ation could use that "ethod and beco"e "ore productive. )i##: * Page Re#: *3
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13) Taylor was the originator o# the concept o# scienti#ic "anage"ent. Answer: TRUE E planation: Taylor0s 1;11 book% Principles of Scientific Management% developed the idea o# scienti#ic "anage"ent in which "anage"ent issues were looked at e"pirically and ob,ectively. )i##: * Page Re#: *3 14) $rank and -illian @ilbreth0s bestAknown contribution to scienti#ic "anage"ent concerned selecting the best worker #or a particular ,ob. Answer: $A-.E E planation: The @ilbreths pro"oted ti"eAandA"otion studies rather than the best worker #or a given ,ob. )i##: * Page Re#: *3 15) =enri $ayol and the $rederick >. Taylor learned about "anage"ent #ro" studying actual "anagers at work. Answer: $A-.E E planation: $ayol did collect data #ro" "anagers at work but Taylor0s work was entirely theoretical% "aking the state"ent #alse. )i##: * Page Re#: *3 19) =enry @antt0s contribution to "anage"ent theory was to develop e##icient ways to schedule. Answer: TRUE E planation: @antt0s scheduling charts Bthe @antt chart and the load chart) are still widely used today to keep track o# organi'ational chores. )i##: * Page Re#: *3 1:) =enri $ayol and ?a >eber developed the idea o# the #ive basic "anage"ent #unctions. Answer: $A-.E E planation: $ayol and >eber worked together% but not in developing the basic "anage"ent #unctions% which have been reduced to #our in today0s view: planning% organi'ing% leading% and controlling. )i##: * Page Re#: *3 1;) Coth =enri $ayol and Ada" ."ith saw division o# work as an i"portant principle o# "anage"ent Answer: TRUE E planation: ."ith called the concept 1division o# labor1 while $ayol% in his $ourteen Principles o# ?anage"ent used the ter" division of work. ?anagers today use the ter" job specialization. )i##: * Page Re#: *3 *8) $ayol #eels that "anagers should be given authority over workers% but not the ability to give orders. Answer: $A-.E E planation: $ayol0s principle o# authority actually #ocuses on giving orders. A "anager is given the authority to give orders to workers(that is one o# a "anager0s key #unctions. )i##: * Page Re#: *3

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*1) Unity o# co""and "eans that all e"ployees should answer to only one superior. Answer: TRUE E planation: $ayol0s unity o# co""and principle "eans that a worker should receive orders #ro" only one superior. $ayol thought that the idea o# unity o# co""and could prevent con#licts and a"biguity. )i##: 1 Page Re#: *3 **) A highly centrali'ed organi'ation is one in which subordinates are given a lot o# opportunity to "ake decisions. Answer: $A-.E E planation: The opposite is true(the "ore centrali'ed an organi'ation is the less decisionA "aking power subordinates are given. )i##: * Page Re#: *3 *+) $ayol thought that allowing e"ployees to originate their own plans would increase "otivation. Answer: TRUE E planation: $ayol used the ter" initiative to identi#y the idea o# e"ployees initiating their own plans to carry out tasks and then carrying out those plans. $ayol thought that giving e"ployees initiative would increase their e##ort and "otivation. )i##: * Page Re#: *3 *3) The idea o# e"ployees being paid a #air wage #or their services did not e"erge until the 1;58s. Answer: $A-.E E planation: Dne o# $ayol0s $ourteen Principles o# ?anage"ent was re"uneration% which called #or a #air wage #or all e"ployees. $ayol0s work was done in the 1;15A1;39 period. )i##: * Page Re#: *3 *4) The behavioral approach to "anage"ent #ocuses on "otivating workers to work productively. Answer: TRUE E planation: The behavioral approach #ocuses on actions o# workers and "otivating the" to achieve high levels o# per#or"ance. )i##: * Page Re#: *4 *5) The behavioral approach to "anage"ent began in the 1;58s with organi'ational behavior BDC). Answer: $A-.E E planation: Cehavioral ideas reach all the way back to the late eighteenth century with Robert Dwen and others. )i##: * Page Re#: *4 *9) Robert Dwen was greatly concerned with how workers were treated in #actories o# the &ndustrial Revolution. Answer: TRUE E planation: Dwen was appalled by the terrible working conditions in #actories% and proposed the creation o# the ideal workplace% where workers were treated #airly and honorably. )i##: * Page Re#: *4
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*:) Drgani'ational behavior studies were based purely on theoretical ideals rather than actual observation. Answer: $A-.E E planation: DC studies were e"pirical(that is% based on actual behavior that took place in actual organi'ations(rather than theoryAbased. )i##: * Page Re#: *4 *;) The =awthorne studies showed that the brighter the lights in the roo"% the "ore productive were workers who worked in the roo". Answer: $A-.E E planation: Researchers #or the =awthorne studies e pected productivity to be proportional to light intensity% but instead #ound no direct relationship between the two variables. )i##: * Page Re#: *4 +8) Abraha" ?aslow0s hierarchy o# #ive needs theory suggested once a need was satis#ied% it stopped "otivating behavior. Answer: TRUE E planation: ?aslow thought% #or e a"ple% that basic needs such as #ood and shelter were enor"ously "otivating when they were insu##icient. =owever% once those basic needs were taken care o#% these ceased to have "a,or in#luence on behavior. )i##: * Page Re#: *4 +1) The =awthorne studies suggested that groups could in#luence the productivity o# an individual. Answer: TRUE E planation: $or e a"ple% individuals in a group that had high per#or"ance e pectations tended to be "uch "ore productive than those in groups with low per#or"ance e pectations. )i##: * Page Re#: *4 +*) The /uantitative approach to "anage"ent evolved out o# "athe"atical "ethods o# solving "ilitary proble"s. Answer: TRUE E planation: The /uantitative "ethod ca"e out o# the statistical and "athe"atical proble" solving techni/ues that were used to solve proble"s in the "ilitary during >orld >ar &&. )i##: * Page Re#: *5 ++) The 1>hi' !ids1 used statistical "ethods to i"prove decision "aking at the $ord ?otor 6o"pany in the "idA1;38s. Answer: TRUE E planation: The >hi' !ids were a group o# e A"ilitary o##icers who applied their statistical proble" solving "ethods #ro" the "ilitary to decision "aking at $ord with great success. )i##: * Page Re#: *5

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+3) >. Edwards )e"ing0s ideas about /uality and "anage"ent were #irst e"braced by <apanese co"panies. Answer: TRUE E planation: The ideas o# Edwards were #irst adopted by <apanese co"panies. >hen these co"panies began to outper#or" A"erican co"panies% U... organi'ations began to take notice o# the". )i##: * Page Re#: *5 +4) )e"ing0s total /uality "anage"ent syste" largely ignored the needs o# custo"ers. Answer: $A-.E E planation: &nstead% )e"ing0s TE? syste" #ocused al"ost e clusively on responding to the e pectations and needs o# the custo"er. )i##: * Page Re#: *5 +5) 6onte"porary approaches to "anage"ent saw the organi'ation as a closed syste" in which all inputs and outputs stay within the syste". Answer: $A-.E E planation: This approach saw the organi'ation as an open% rather than a closed syste" that takes in inputs #ro" the outside environ"ent and e"its outputs to the outside environ"ent. )i##: * Page Re#: *5 +9) The idea o# an organi'ation as a system was borrowed #ro" psychological concepts. Answer: $A-.E E planation: The syste" concept was borrowed #ro" physical sciences% not psychology. &n physical science an open syste" is a syste" that e changes "atter and energy with its outside environ"ent. )i##: * Page Re#: *9 +:) The contingency approach to "anage"ent states that there is a single best way to "anage all organi'ations. Answer: $A-.E E planation: The contingency approach says that there is no single approach that works best #or an organi'ation. &nstead% "anagers need to look at individual situations and #igure out the approach that was likely to work best. )i##: * Page Re#: *9 +;) A contingency variable that can a##ect "anaging style is organi'ation si'e. Answer: TRUE E planation: Drgani'ation si'e% environ"ental uncertainty% task routineness% and individual di##erences are all variables that can a##ect "anagerial style. )i##: * Page Re#: *9 38) &n today0s organi'ation% al"ost all e"ployees have access to the "ain#ra"e co"puters that "ake up the co"pany0s co"puting resources. Answer: $A-.E E planation: E"ployees in today0s workplace don0t have or need access to "ain#ra"e co"puters. &nstead% the e"ployees the"selves have co"puters and access to networks that in the past were controlled only by the co"pany0s "ain#ra"e co"puters. )i##: * Page Re#: *9
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31) =enry $ord0s state"ent that 1=istory is "ore or less bunk1 is best re#uted by which o# the #ollowing state"entsF A) =istory has been shown to be 188 percent accurate. C) =istory can put current activities in perspective. 6) =istorical #acts are seldo" proven to be wrong. )) People who write history always have an agenda. Answer: C E planation: C) =istory doesn0t clai" to be co"pletely accurate or co"pletely without bias% so these state"ents #ail to re#ute $ord0s state"ent. The #act that history% even though #lawed% can provide people with a valuable perspective on what current events "ean is the best response to $ord. >ithout knowing the events that got us where we are% it is very hard to interpret events that are taking place now(or plan intelligently #or the #uture. )i##: * Page Re#: *+ 3*) The best evidence that "anagers "ust have guided the construction o# the Egyptian pyra"ids is GGGGGGGG. A) how long ago they were built C) the #act that they were built by hand 6) their sheer si'e )) their "a,estic beauty Answer: 6 E planation: 6) The sheer si'e and scope o# the pyra"ids is the best evidence that "anagers "ust have guided their construction. The construction took years and thousands o# workers. This could not have been acco"plished without people planning and supervising activities. The age% beauty% or construction "ethod o# the pyra"ids do not provide evidence o# "anage"ent. Plenty o# ite"s in ancient Egpyt% such as gold artwork% were built by hand and /uite beauti#ully and show no signs o# being supervised by "anagers. )i##: * Page Re#: *+ 3+) =ow "any workers were involved in building a single Egyptian pyra"idF A) "illions C) tens o# "illions 6) less than 188%888 )) "ore than 188%888 Answer: ) E planation: )) Evidence shows that at least tens o# thousands and probably "ore than 188%888 workers were needed to construct a single pyra"id% "aking "ore than 188%888 the correct response #or this /uestion and ruling out all other responses. )i##: * Page Re#: *+

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33) Proo# that the pyra"ids were well "anaged pro,ects can be seen in the #act that they GGGGGGGG. A) are #a"ous the world over C) are uni/ue 6) have lasted thousands o# years )) were built in a desert land Answer: 6 E planation: 6) A sign that a pro,ect is well "anaged is that it "eets its goals. Though we can only guess at the o##icial goals "anagers had #or the pyra"ids% one o# those goals "ust have been that the structures would be longAlasting(and the #act that they are still standing a#ter "ore than 3888 years shows that the goal was "et% "aking 1lasting thousands o# years1 the correct response #or this /uestion. Ceing uni/ue or #a"ous are conse/uences that the construction o# the structures was well "anaged% not evidence o# the "anage"ent itsel#. Ceing built in a desert probably helped the structures avoid deterioration% so their desert site does not provide evidence o# good "anage"ent. )i##: * Page Re#: *+ 34) @etting 188%888 workers to work together to build an enor"ous pyra"id is evidence o# which "anage"ent #unctionF A) planning C) organi'ing 6) "onitoring )) budgeting Answer: C E planation: C) The process o# getting workers to #unction together is an organi'ing #unction% "aking this choice the correct response #or this /uestion. Planning occurs be#ore the actual construction and re/uires designing the structure and anticipating the resources it will need. ?onitoring occurs during construction and "akes sure that things are proceeding according to plan. Cudgeting is the process o# allocating resources e##iciently so the cost o# the pro,ect stays low. )i##: * Page Re#: *+ 35) .uccess#ully designing a 348A#oot tall pyra"id is pri"arily evidence o# which "anage"ent #unctionF A) planning C) organi'ing 6) "onitoring )) leading Answer: A E planation: A) The process o# designing an enor"ous pyra"id so it does not collapse upon itsel# is a #unction o# planning% "aking this the correct response #or this /uestion. Drgani'ing involves procuring "aterials and e/uip"ent #or the ,ob and getting workers to #unction together as a unit. ?onitoring occurs during construction and "akes sure that things are proceeding according to plan. -eading is the process o# "otivating workers to work e##iciently and e##ectively and persuading people to do what you want done. )i##: * Page Re#: *+

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39) ?aking sure that a pyra"id is built on ti"e and according to plan is evidence o# which "anage"ent #unctionF A) planning C) organi'ing 6) "onitoring )) leading Answer: 6 E planation: 6) ?onitoring occurs during construction and "akes sure that things are done on ti"e and proceeding according to plan% "aking this choice the correct response #or this /uestion. Drgani'ing involves procuring "aterials and e/uip"ent #or the ,ob and getting workers to #unction together as a unit. -eading is the process o# "otivating workers to work e##iciently and e##ectively and persuading people to do what you want done. The process o# designing an enor"ous pyra"id so it does not collapse upon itsel# is a #unction o# planning. )i##: * Page Re#: *+ 3:) 6onvincing the "inisters who controlled "oney and resources in ancient Egypt that building a pyra"id was worth the e##ort is evidence o# which "anage"ent #unctionF A) planning C) organi'ing 6) "onitoring )) leading Answer: ) E planation: )) -eading includes the skill o# persuading people to do what you want done% "aking this the correct response #or this /uestion. ?onitoring occurs during construction and "akes sure that things are done on ti"e and proceeding according to plan. Drgani'ing involves procuring "aterials and e/uip"ent #or the ,ob and getting workers to #unction together as a unit. The process o# designing an enor"ous pyra"id so it does not collapse upon itsel# is a #unction o# planning. )i##: * Page Re#: *+ 3;) The shipAbuilding #acility in #i#teenth century 2enice rese"bled GGGGGGGG. A) )etroit auto asse"bly lines C) how .ilicon 2alley workers design new so#tware 6) how hand"ade sweaters are knitted )) how a che# "akes a superb pasta dish Answer: A E planation: A) The #loating ship #acility in 2enice rese"bled a )etroit asse"bly line because each stage o# construction was done at various points in the line% si"ilar to the way autos were put together% "aking )etroit auto asse"bly lines the correct response #or this /uestion. ?akers o# so#tware% sweaters% or pasta all avoid the asse"blyAline division o# labor approach% so they are incorrect responses #or this /uestion. )i##: * Page Re#: *+

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48) The 1#loating asse"bly line1 in 2enice operated GGGGGGGG. A) centuries be#ore the &ndustrial Revolution C) during the &ndustrial Revolution 6) shortly a#ter the &ndustrial Revolution )) long a#ter the &ndustrial Revolution Answer: A E planation: A) The #loating asse"bly line operated in the 1388s% at least *48 years be#ore the start o# the &ndustrial Revolution% which began around 19:8. This "akes 1centuries be#ore the &ndustrial Revolution1 the correct response and rules out all other responses #or this /uestion. )i##: * Page Re#: *+ 41) Evidence that "anagers in the #i#teenth century 2enetian ship building #acility were interested in ,ob satis#action is best shown by which o# the #ollowingF A) inventory syste"s C) warehouses #or "aterials 6) wine breaks #or e"ployees )) an accounting syste" Answer: 6 E planation: 6) &nventory syste"s% warehouses% and accounting syste"s are all "anagerial #unctions that increase e##iciency but do not address custo"er needs or concerns% so they are incorrect responses #or this /uestion. The #act that wine breaks do see" to have the wel#are o# e"ployees in "ind "akes this choice the correct response. )i##: * Page Re#: *+ 4*) Evidence that "anagers in the #i#teenth century 2enetian ship building #acility were interested in controlling costs is best shown by which o# the #ollowingF A) inventory syste"s C) warehouses #or "aterials 6) wine breaks #or e"ployees )) an accounting syste" Answer: ) E planation: )) &nventory syste"s and warehouses are "easures that are taken to "ake sure that the proper a"ount o# "aterials and e/uip"ent were available #or workers in the #acility% not controlling costs. >ine breaks were evidence that "anagers were interested in e"ployee ,ob satis#action% not cost control. D# the choices% only an accounting syste" is directly involved in keeping track o# revenues and outputs% "aking this choice the correct response #or this /uestion. )i##: * Page Re#: *+

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4+) Evidence that "anagers in the #i#teenth century 2enetian ship building #acility were interested in keeping track o# "aterials is best shown by which o# the #ollowingF A) an accounting syste" C) an asse"bly line 6) an inventory syste" )) wine breaks #or e"ployees Answer: 6 E planation: 6) An accounting syste" keeps control o# revenues and costs% not "aterials. >ine breaks were evidence that "anagers were interested in e"ployee ,ob satis#action% not keeping track o# "aterials. The asse"bly line itsel# showed that "anagers were interested in e##iciency "ore than keeping track o# "aterials. D# the choices% only an inventory syste" is directly involved in keeping track o# "aterials% "aking this choice the correct response #or this /uestion.. )i##: * Page Re#: *+ 43) The &ndustrial Revolution is largely credited with ushering in the birth o# GGGGGGGG. A) the corporation C) #air pay #or workers 6) cra#ts"anship )) #air treat"ent #or workers Answer: A E planation: A) The &ndustrial Revolution is credited with originating the corporation% "aking this choice the correct response #or this /uestion. Rather than speciali'e in cra#ts"anship% #air pay% or #air treat"ent #or workers% &ndustrial Revolution #actories and corporations tended to do a poor ,ob with these ite"s% "aking the" all incorrect responses. )i##: * Page Re#: *+ 44) &ndustrial Revolution #actories needed accurate de"and #orecasts to avoid "aking GGGGGGGG products. A) too #ew C) too "any 6) too "any or too #ew )) too large or too s"all Answer: 6 E planation: 6) The enor"ous capacity o# &ndustrial Revolution #actories needed to be ad,usted to de"and. Previously% "anu#acturers pretty "uch worked at their own pace% hoping that production kept up with de"and. &n the &ndustrial Revolution% however% #actories could gear up i# de"and was strong or scale down i# de"and weakened. These #actors all "ake the choice indicating too "any or too #ew the correct response #or this /uestion and rule out all other responses. )i##: * Page Re#: *+

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45) The &ndustrial Revolution "ade GGGGGGGG necessary #or "anu#acturing organi'ation0s success #or the #irst ti"e in history. A) decentrali'ation C) custo"er satis#action 6) product de"and )) "anage"ent Answer: ) E planation: )) The large scale o# &ndustrial Revolution #actories suddenly brought "anage"ent to the #ore#ront #or the success o# a business% "aking "anage"ent the correct response #or this /uestion. Product de"and and custo"er satis#action were i"portant #actors both be#ore and a#ter the &ndustrial Revolution. The &ndustrial Revolution actually increased% rather than decreased centrali'ation in organi'ations% so decentrali'ation is not a correct response. )i##: * Page Re#: *+ 49) The "ost i"portant preAtwentieth century develop"ent in "anage"ent was the GGGGGGGG. A) &ndustrial Revolution C) the personal co"puter 6) building o# Crooklyn Cridge )) A"erican Revolution Answer: A E planation: A) Though organi'ational activities re/uired in both the A"erican Revolution and the building o# the Crooklyn Cridge probably "ade so"e contributions to the evolution o# "anage"ent% they were "inor co"pared to those contributed by the &ndustrial Revolution% which changed the scale and scope o# "anu#acturing and business% "aking the &ndustrial Revolution the correct response. The advent o# the personal co"puter had an enor"ous i"pact on "anage"ent practices% but it was a twentieth century% not a preAtwentieth century develop"ent. )i##: * Page Re#: *+ 4:) The si'e and scope o# &ndustrial Revolution #actories "ade such things as GGGGGGGG necessary #or co"panies. A) "aterials C) hierarchical organi'ation 6) supplies )) revenues and costs Answer: C E planation: C) Coth be#ore and a#ter the &ndustrial Revolution began organi'ations and individuals that produced products needed supplies% "aterials% and had revenues and costs% so those answers are incorrect #or this /uestion. >hat the &ndustrial Revolution did change was the organi'ation o# the #actories the"selves. They were so large that they needed a #airly rigid hierarchical structure and chain o# co""and to "ake sure that each person knew who" to report to and what his or her ,ob was% "aking hierarchical organi'ation the correct response. )i##: * Page Re#: *+

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4;) >hat we call ,ob speciali'ation today was ter"ed this in the eighteenth century. A) hierarchy C) ,ob sharing 6) division o# work )) division o# labor Answer: ) E planation: )) =ierarchy re#ers to a pyra"idAtype structure in an organi'ation% "aking this choice an incorrect response. <ob sharing re#ers to two or "ore individuals splitting the responsibilities #or a ,ob% so it is incorrect. <ob speciali'ation has been called both division o# work and division o# labor% but division o# labor is the eighteenth century ter" used by Ada" ."ith% so division o# labor is the correct response #or this /uestion. )i##: * Page Re#: *+ 58) GGGGGGGG was a strong proponent o# division o# labor. A) ?a >eber C) $rederick >. Taylor 6) Ada" ."ith )) =enry @antt Answer: 6 E planation: 6) >eber was known #or looking at what constituted good "anage"ent. Taylor was the 1#ather1 o# scienti#ic "anage"ent. @antt developed a nu"ber o# brilliant scheduling devices #or "anagers. D# the #our "en% ."ith was the strongest advocate #or division o# labor% "aking Ada" ."ith the correct response #or this /uestion. )i##: * Page Re#: *+ 51) Early proponents o# division o# labor "ade clai"s that it could dra"atically GGGGGGGG. A) i"prove e"ployee "orale C) increase sales 6) increase /uality )) increase productivity Answer: ) E planation: )) Proponents o# division o# labor such as Ada" ."ith touted its ability to increase productivity% "aking this choice the correct response #or this /uestion. &# anything% division o# labor had little e##ect on sales and product /uality% and i# anything served to decrease% rather than i"prove% e"ployee "orale. )i##: * Page Re#: *+

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5*) Real world studies have shown that division o# labor GGGGGGGG. A) results in dra"atic% per"anent productivity increases C) has drawbacks 6) has no drawbacks )) works only in very s"all organi'ations Answer: C E planation: C) Though division o# labor can show productivity increases% it has drawbacks that include low worker "orale and a#ter an initial boost in productivity% a subse/uent drop due to boredo" and task repetition. These #actors together eli"inate per"anent productivity increases and having no drawbacks since division o# labor clearly does have drawbacks. >orking only in very s"all organi'ations is wrong because i# anything% division o# labor works best in large% not s"all organi'ations. >ith the other choices ruled out% the only answer that "akes sense #or this /uestion is having drawbacks. )i##: * Page Re#: *+ 5+) Ada" ."ith0s Wealth of Nations was #irst published in the sa"e GGGGGGGG as the )eclaration o# &ndependence. A) city C) year 6) publishing house )) country Answer: C E planation: C) Wealth of Nations was #irst published in England in 1995 while the )eclaration o# &ndependence was created in Philadelphia in 1995. That "eans the two ite"s were not published in the sa"e city or publishing house since they were published in co"pletely di##erent countries. .ince they both ca"e out in 1995% year is the correct response. )i##: * Page Re#: *+ 53) <ob speciali'ation entails breaking down a co"ple ,ob into GGGGGGGG. A) #ive key co"ponents C) broad general categories 6) si"ple% narrow repetitive tasks )) nonArepeating tasks Answer: 6 E planation: 6) The essence o# ,ob speciali'ation is that it breaks down a co"ple process into a series o# si"ple% narrowly de#ined steps that can be repeated. .ince the steps are narrow% not broad and repeating rather than nonArepeating% broad general categories and nonArepeating tasks can both be ruled out as a correct response #or this /uestion. There is no set nu"ber o# co"ponents re/uired #or ,ob speciali'ation so #ive key co"ponents is incorrect. This leaves si"ple tasks as the correct response since it correctly characteri'es ,ob speciali'ation as re/uiring narrow% repetitive tasks. )i##: * Page Re#: *+

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54) $rederick >. Taylor is "ost closely associated with which o# the #ollowingF A) general ad"inistrative theory C) ti"eAandA"otion studies 6) idealistic workplace )) scienti#ic "anage"ent Answer: ) E planation: )) Taylor0s book% Principles of Scientific Management% introduced the idea o# "anaging using ob,ective% scienti#ic "easures and e"pirical data rather than intuition to "ake decisions% "aking scienti#ic "anage"ent the correct response #or this /uestion. Robert Dwen was concerned with working conditions and developed the idealistic workplace. =enri $ayol and ?a >eber worked out ideas about good "anage"ent in the general ad"inistrative theory. $rank and -illian @ilbreth "ade ti"eAandA"otion studies. )i##: * Page Re#: *3 55) ?a >eber helped GGGGGGGG. A) develop the idea o# the idealistic workplace C) develop general ad"inistrative theory 6) develop scienti#ic "anage"ent )) carry out ti"eAandA"otion studies Answer: C E planation: C) =enri $ayol and ?a >eber worked out ideas about good "anage"ent in the general ad"inistrative theory% "aking this choice the correct response #or this /uestion. Robert Dwen was concerned with working conditions and developed the idea o# the idealistic workplace. $rank and -illian @ilbreth "ade ti"eAandA"otion studies. $rederick >. Taylor0s Principles of Scientific Management introduced the idea o# "anaging using ob,ective% scienti#ic "easures and e"pirical data rather than intuition to "ake decisions. )i##: * Page Re#: *3 59) GGGGGGGG is the originator o# the $ourteen Principles o# ?anage"ent. A) =enri $ayol C) ?a >eber 6) =ugo ?unsterberg )) =enry @antt Answer: A E planation: A) =enri $ayol and ?a >eber worked out ideas about good "anage"ent in the general ad"inistrative theory% but $ayol alone was the one who worked out the $ourteen Principlces o# ?anage"ent% "aking =enri $ayol the correct response #or this /uestion. =enry @antt developed a nu"ber o# brilliant scheduling devices #or "anagers. =ugo ?unsterberg was a pioneer in industrial psychology% using psychological tests to evaluate e"ployees. )i##: * Page Re#: *3A*4

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5:) $rank and -illian @ilbreth were best known in "anage"ent circles #or GGGGGGGG. A) ti"eAandA"otion studies C) industrial psychology 6) the $ourteen Principles o# ?anage"ent )) scienti#ic "anage"ent Answer: A E planation: A) $rank and -illian @ilbreth per#or"ed ti"eAandA"otion studies using $rank0s original vocation% bricklaying% as a "odel to deter"ine how to "ake tasks "ore e##icient% "aking ti"eAandA"otion studies the correct response #or this /uestion. =ugo ?unsterberg was a pioneer in industrial psychology% using psychological tests to evaluate e"ployees. $rederick >. Taylor0s book% Principles of Scientific Management introduced the idea o# scienti#ic "anage"ent. =enri $ayol developed the $ourteen Principles o# ?anage"ent. )i##: * Page Re#: *3 5;) =enry @antt developed graphical "ethods to help "anagers with GGGGGGGG proble"s. A) discipline C) scheduling 6) leadership )) decisionA"aking Answer: C E planation: C) =enry @antt developed a nu"ber o# brilliant graphical "ethods #or the i"prove"ent o# scheduling and planning that included the @antt chart and the load chart% "aking scheduling the correct response #or this /uestion. @antt0s charts did not address proble"s o# discipline or leadership% and only very peripherally touched on decision "aking as it pertained to scheduling. )i##: * Page Re#: *3 98) Cheaper by the Dozen is a book about this topic. A) e##iciency in bulk buying C) li#e in a large #a"ily 6) the rise o# <apanese "anu#acturing )) the theory o# pricing Answer: C E planation: C) Though all o# the choices are plausible% only li#e in a large #a"ily is correct. Cheaper by the Dozen chronicled the e periences o# $rank and -illian @ilbreth with their very large #a"ily. Though the @ilbreths contributed to "anagerial theory% their book had nothing to do with e##iciency% <apanese industry% or pricing. )i##: * Page Re#: *3

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91) According to =enri $ayol% the principle o# GGGGGGGG gives "anagers the right to give orders. A) discipline C) centrali'ation 6) order )) authority Answer: ) E planation: )) The principle o# authority gives "anagers the right to give orders% "aking authority the correct response #or this /uestion. The principle o# discipline re/uires e"ployees to respect and obey organi'ational rules. The principle o# centrali'ation re#ers to how "uch e"ployees are involved in decision "aking. The principle o# order states that "aterials and people should be in place at the right ti"e and in the right location in an organi'ation. )i##: * Page Re#: *3 9*) According to =enri $ayol% the principle o# GGGGGGGG re/uires e"ployees to respect the rules o# their organi'ation. A) e/uity C) re"uneration 6) discipline )) order Answer: 6 E planation: 6) The principle o# discipline re/uires e"ployees to respect and obey organi'ational rules% "aking discipline the correct response #or this /uestion. The principle o# order states that "aterials and people should be in place at the right ti"e and in the right location in an organi'ation. The principle o# e/uity states that "anagers should treat subordinates #airly and with kindness. The principle o# re"uneration states that e"ployees should be paid a #air wage #or their labor. )i##: * Page Re#: *3 9+) $ayol0s principle o# GGGGGGGG states that an e"ployee in an organi'ation should answer to only one superior. A) authority C) unity o# co""and 6) e/uity )) centrali'ation Answer: C E planation: C) The principle o# unity o# co""and states that each e"ployee should receive orders #ro" only one superior% "aking unity o# co""and the correct response #or this /uestion. The principle o# centrali'ation re#ers to how "uch e"ployees are involved in decision "aking. The principle o# authority gives "anagers the right to give orders. The principle o# e/uity states that "anagers should treat subordinates #airly and with kindness. )i##: * Page Re#: *3

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93) $ayol0s principle o# GGGGGGGG states that e"ployees in an organi'ation should be #airly co"pensated #or their labor. A) re"uneration C) discipline 6) authority )) unity o# co""and Answer: A E planation: A) The principle o# re"uneration states that e"ployees should be paid a #air wage #or their labor% "aking re"uneration the correct response #or this /uestion. The principle o# authority gives "anagers the right to give orders. The principle o# discipline re/uires e"ployees to respect and obey organi'ational rules. The principle o# unity o# co""and states that each e"ployee should receive orders #ro" only one superior. )i##: * Page Re#: *3 94) $ayol0s principle o# GGGGGGGG re#ers to how e tensively e"ployees participate in decision "aking in an organi'ation. A) division o# labor C) centrali'ation 6) order )) e/uity Answer: C E planation: C) The principle o# centrali'ation re#ers to how "uch e"ployees are involved in decision "aking% "aking centrali'ation the correct response #or this /uestion. The principle o# e/uity states that "anagers should treat subordinates #airly and with kindness. The principle o# order states that "aterials and people should be in place at the right ti"e and in the right location in an organi'ation. The principle o# division o# labor states that ,ob speciali'ation increases e##iciency. )i##: * Page Re#: *3 95) $ayol0s principle o# GGGGGGGG re#ers to how e tensively e"ployees participate in decision "aking. A) discipline C) re"uneration 6) initiative )) authority Answer: 6 E planation: 6) The principle o# initiative states that e"ployees who can originate and carry out plans will e ert high levels o# e##ort% "aking initiative the correct response #or this /uestion. The principle o# re"uneration states that e"ployees should be paid a #air wage #or their labor. The principle o# discipline re/uires e"ployees to respect and obey organi'ational rules. The principle o# authority gives "anagers the right to give orders. )i##: * Page Re#: *3

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99) $ayol0s principle o# GGGGGGGG re#ers to how to build har"ony and unity in an organi'ation. A) centrali'ation C) e/uity 6) order )) espirit de corps Answer: ) E planation: )) The principle o# espirit de corps states that pro"oting tea" spirit builds unity and har"ony in an organi'ation% "aking this choice the correct response #or this /uestion. The principle o# centrali'ation re#ers to how "uch e"ployees are involved in decision "aking. The principle o# e/uity states that "anagers should treat subordinates #airly and with kindness. The principle o# order states that "aterials and people should be in place at the right ti"e and in the right location in an organi'ation. )i##: * Page Re#: *3 9:) ?a >eber #elt this was an ideal #or" o# organi'ation. A) a de"ocracy C) a work group 6) a bureaucracy )) a "eritocracy Answer: 6 E planation: 6) >eber spent a lot o# ti"e and e##ort studying bureaucracies% which he characteri'ed as an ideal o# organi'ational structure% especially #or large organi'ations% "aking a bureaucracy the correct response #or this /uestion and ruling out all other choices. )i##: * Page Re#: *3 9;) Robert Dwen tried to develop GGGGGGGG to i"prove the workplace conditions in #actories. A) "anagerial scheduling "ethods C) what he ter"ed the idealistic workplace 6) general ad"inistrative theory )) industrial psychology Answer: C E planation: C) Robert Dwen was appalled by the conditions that workers were sub,ected to and in response developed the idea o# the idealistic workplace that was #ree o# oppression% "aking this choice the correct response #or this /uestion. =enri $ayol and ?a >eber worked out ideas about good "anage"ent in the general ad"inistrative theory. =enry @antt developed a nu"ber o# brilliant scheduling devices #or "anagers. =ugo ?unsterberg was a pioneer in industrial psychology% using psychological tests to evaluate e"ployees. )i##: * Page Re#: *3A*4

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:8) >hat inspired Robert Dwen to devote e##orts into creating an idealistic workplaceF A) possible pro#it #ro" #actories C) articles in the newspaper 6) deplorable #actory conditions )) greedy #actory owners Answer: 6 E planation: 6) Though Dwen "ay have been "otivated at least in part by newspaper articles o# the ti"e that pro#iled sel#ish industrialists% his pri"ary reason #or pro"oting the idea o# an idealistic workplace ca"e #ro" observing the less than hu"ane conditions in "any #actories% "aking deplorable #actory conditions the correct response #or this /uestion. There is no evidence that personal gain was a "otivation #or Dwen. )i##: * Page Re#: *4 :1) Robert Dwen% ?ary Parker $ollett% and =ugo ?unsterberg wrote e tensively about how i"portant GGGGGGGG to an organi'ation0s success. A) people are C) topAlevel "anagers are 6) resources are )) #inancial backing is Answer: A E planation: A) Dwen% Parker $ollett% and ?unsterberg are all part o# the early behavior approach to "anage"ent that #ocused on people as a resource% "aking people the correct response #or this /uestion. Though "anage"ent% resources% and #inance are all i"portant to an organi'ation% none o# the" were the pri"ary topic that interested the early behaviorists. )i##: * Page Re#: *4 :*) GGGGGGGG #elt that "anagers could learn how to "otivate workers better by studying basic hu"an behavior. A) ?ary Parker $ollett C) =ugo ?unsterberg 6) Robert Dwen )) )ouglas ?c@regor Answer: C E planation: C) =ugo ?unsterberg advocated studying basic hu"an behavior to see what "otivates workers% "aking hi" the correct response #or this /uestion. ?ary Parker $ollett #ocused on di##erentiating between people as they behaved individually and people as they behaved in groups. Robert Dwen tried to develop the idealistic workplace to i"prove #actory conditions. )ouglas ?c@regor developed Theory H and Theory I which di##erentiated people into those who were "otivated by #ear and coercion and those who were "otivated by their own goals. )i##: * Page Re#: *4

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:+) ?ary Parker $ollett0s work was devoted to identi#ying di##erences in the way individual people behaved when they were GGGGGGGG. A) under stress C) discri"inated against 6) lacking in resources )) in groups Answer: ) E planation: )) Though stress% discri"ination% and resource availability can all have signi#icant i"pact on behavior% ?ary Parker $ollett #ocused pri"arily on group dyna"ics and identi#ying how being a "e"ber o# a group could alter the perceptions and attitudes o# an individual% "aking being in groups the correct response #or this /uestion. )i##: * Page Re#: *4 :3) =ugo ?unsterberg suggested that psychological tests could be help#ul in GGGGGGGG #or an organi'ation. A) #inding custo"ers C) selecting e"ployees 6) #iring e"ployees )) selecting advertise"ents Answer: C E planation: C) Though psychological testing "ight conceivably help an organi'ation #ind custo"ers or create ads to pro"ote business% ?unsterberg did not e plore those possibilities. &nstead% he looked into the practice o# using psychological pro#iles to select e"ployees who were likely to per#or" at high levels% "aking selecting e"ployees the correct response #or this /uestion. Jote that testing would be unlikely to help in #iring e"ployees and ?unsterberg did not suggest that it was. )i##: * Page Re#: *4 :4) ?ary Parker $ollett #elt that an organi'ation #unctioned best when e"ployees had a strong sense o# this. A) individual independence C) group identity 6) autono"y )) sel#Acon#idence Answer: C E planation: C) Parker $ollett thought organi'ations worked well when e"ployees #elt a group ethic rather than a strong sense o# independence% autono"y% or sel#Acon#idence. )i##: * Page Re#: *4

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:5) A good "odel #or ?ary Parker $ollett0s view o# a success#ul organi'ation "ight be GGGGGGGG. A) a "ovie theater audience C) a state legislature 6) a beehive )) college classroo" Answer: 6 E planation: 6) ?ary Parker $ollett saw identity with the group as the key to success#ul organi'ations. Rather than strongly identi#ying with the group% a theater audience% college classroo"% or legislature are collections o# individuals who are not particularly interested in being part o# the group% "aking those choices incorrect. The collective nature o# a beehive% on the other hand% #its Parker $ollett0s view o# a success#ul organi'ation well% "aking this choice the correct response #or this /uestion. )i##: + Page Re#: *4 AA6.C: Analytic .kills :9) The organi'ers o# the =awthorne studies e pected worker productivity to be proportional to GGGGGGGG in the #actory. A) light intensity levels C) pay rates 6) te"perature levels )) noise levels Answer: A E planation: A) The original =awthorne study organi'ers #igured that brighter light would increase productivity #or workers% "aking light intensity levels the correct response #or this /uestion and ruling out all other responses. )i##: * Page Re#: *4 ::) The =awthorne studies engineers #ound that brighter light levels in the #actory GGGGGGGG productivity. A) dra"atically increased C) had no consistent e##ect on 6) decreased )) slightly increased Answer: C E planation: C) To their surprise% the =awthorne engineers #ound that greater light intensity in the #actory #ailed to increase or decrease productivity in any consistent way. &n #act% the studies showed no consistent relationship between light intensity and productivity% results that they #ound pu''ling% which "akes having no consistent e##ect the correct response #or this /uestion. )i##: * Page Re#: *4

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:;) This was one o# the conclusions o# the =awthorne studies engineers. A) @roup pressure can a##ect individual productivity. C) @roup pressure has no e##ect on individual productivity. 6) -ight level can a##ect individual productivity. )) Joise levels can a##ect individual productivity. Answer: A E planation: A) The engineers saw no connection between light levels and productivity% and didn0t "easure #or noise levels. >hat the engineers did conclude was that group pressure could in#luence individual per#or"ance "ore than e ternal #actors such as light or noise% "aking 1group pressure having an e##ect on individual productivity1 the correct response and ruling out 1group pressure having no e##ect.1 )i##: * Page Re#: *4 ;8) $ro" the =awthorne studies0 results% you "ight predict that the per#or"ance o# a poor per#or"ing individual "ight GGGGGGGG when he ,oins a high per#or"ing group. A) increase C) decrease 6) not change )) beco"e erratic Answer: A E planation: A) &# the i"plications o# the =awthorne studies are correct% group pressures can have great in#luence on the behavior o# individuals% so you would e pect even a low productivity individual to i"prove when he or she e periences group pressure #ro" a high per#or"ing group. This "akes increase the correct response and rules out all other responses. )i##: + Page Re#: *4 AA6.C: Analytic .kills ;1) A conclusion that engineers #ro" the =awthorne studies "ade was that people behave GGGGGGGG when they are being observed. A) unnaturally C) erratically 6) naturally )) co"#ortably Answer: A E planation: A) 6onclusions #ro" the =awthorne studies included the idea that being observed caused individuals to behave in ways that they wouldn0t behave i# they were not being observed% "aking unnaturally the correct response #or this /uestion. )i##: * Page Re#: *4

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;*) Prior to the =awthorne studies% "anagers paid little attention to the role o# GGGGGGGG in "aking decisions. A) productivity C) hu"an behavior 6) e##iciency )) cost control Answer: C E planation: C) E##iciency% productivity% and cost control were always #actors that "anagers paid attention to% both be#ore and a#ter the =awthorne studies were conducted% so those responses can be eli"inated. >hat the =awthorne studies helped establish was that workers on the ,ob were neither si"ple nor predictable and that basic ideas about psychology and hu"an behavior needed to considered in the workplace% "aking hu"an behavior the correct response. )i##: * Page Re#: *4 ;+) Drgani'ational behavior BDC) uses GGGGGGGG e peri"ents to #ind out how and why people behave in certain ways. A) theoretical C) ani"al 6) laboratory )) e"pirical Answer: ) E planation: )) Dne key to DC is that it #ocuses on e"pirical research% "aking this choice the correct response #or this /uestion. Ani"al studies are used in basic psychology% but are not a part o# organi'ational behavior. E"pirical e peri"ents are based on observation o# actual behavior in actual organi'ations rather than theoretical con,ectures about how workers behave or nonA workplace laboratory studies. )i##: * Page Re#: *4 ;3) A "anager "ight turn to organi'ational behavior research when she has proble"s GGGGGGGG. A) controlling costs C) with budgets 6) with scheduling )) building e"ployee trust Answer: ) E planation: )) DC research helps "anagers deal with proble"s that involve hu"an behavior% including issues o# trust% "otivation% tea" cooperation% and "anaging con#lict% "aking building e"ployee trust the correct answer #or this /uestion. The other three choices all re#er to planning or e##iciency issues% not behavioral issues so they are incorrect responses #or this /uestion. )i##: * Page Re#: *4

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;4) >hich o# the #ollowing is JDT a topic that is addressed by organi'ational behavior researchF A) "otivation C) "anaging con#lict 6) de"and #orecasts )) establishing trust Answer: 6 E planation: 6A) DC is directly concerned with behavior in the workplace% so /uestions that involve "otivation% trust% or "anaging con#lict are all standard organi'ational behavior research topics. A de"and #orecast is so"ething that involves predicting the /uantity o# products that will be needed to be produced% so it is not directly a behavioral issue% "aking de"and #orecasts the correct response #or this /uestion. )i##: * Page Re#: *4 ;5) >hich o# the #ollowing is "ost closely associated with "aking the workplace "ore hu"aneF A) the classical approaches C) the hu"an relations "ove"ent 6) the =awthorne studies )) the general ad"inistrative theory Answer: C E planation: C) 6lassical approaches to "anage"ent such as the general ad"inistrative theory as presented by $ayol and >eber were "ore concerned with what constituted good "anage"ent rather than hu"ane "anage"ent. The =awthorne studies were strictly behavioral and looked #or productivity #actors% not i"prove"ents in understanding workers as individuals. That approach% o# paying attention to what "ade e"ployees 1tick%1 was cha"pioned by the hu"an relations "ove"ent. )i##: * Page Re#: *4 ;9) >hich person was best known #or developing the hierarchy o# #ive needs theoryF A) Elton ?ayo C) Abraha" ?aslow 6) =ugo ?unsterberg )) )ouglas ?c@regor Answer: C E planation: C) Abraha" ?aslow developed the hierarchy o# #ive needs theory that "aintained that once a hu"an need is taken care o# it ceases to be a strong "otivating #actor #or a person. This "akes Abraha" ?aslow the correct response. Elton ?ayo was a pro#essor who was brought in to help interpret the =awthorne studies results. =ugo ?unsterberg advocated studying basic hu"an behavior to better understand worker "otivation. )ouglas ?c@regor developed the Theory H and Theory I assu"ptions about hu"an nature. )i##: * Page Re#: *4

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;:) ?aslow #elt that once a need was satis#ied% it GGGGGGGG. A) "ade people very happy C) "otivated people strongly to "aintain the need 6) "ade people la'y )) stopped being a "otivating #actor #or people Answer: ) E planation: )) ?aslow0s key idea was that needs% such as the need #or #ood and water% were strong "otivating #actors when they re"ained un"et. Dnce a need was "et% however% the person0s "otivation "oved up to a di##erent% higherAlevel need. This "akes 1no longer being a "otivating #actor1 the correct response. &t also rules out "otivating people to "aintain the need since people lose their strong "otivation to address an already #ul#illed need. The other two choices are ruled out because neither is "entioned by ?aslow as a conse/uence o# a need being "et. )i##: * Page Re#: *4 ;;) >hich person was best known #or developing the Theory H and Theory IF A) )ouglas ?c@regor C) Abraha" ?aslow 6) Robert Dwen )) Elton ?ayo Answer: A E planation: A) )ouglas ?c@regor developed Theory H and Theory I which di##erentiated people into those who were "otivated by #ear and coercion and those who were "otivated by their own internal goals% "aking )ouglas ?c@regor the correct response #or this /uestion. Abraha" ?aslow developed the hierarchy o# #ive needs theory that "aintained that once a hu"an need is taken care o# it ceases to be a strong "otivating #actor #or a person. Elton ?ayo was a pro#essor who was brought in to help interpret the =awthorne studies results. Robert Dwen tried to develop the idealistic workplace to i"prove #actory conditions. )i##: * Page Re#: *4 188) A proble" with the theories o# both ?aslow and ?c@regor is that they both GGGGGGGG. A) "ade no intuitive sense C) #ocused e clusively on #ear as a "otivating #actor 6) were never /uestioned by researchers )) were never supported by e"pirical research Answer: ) E planation: )) The theories o# ?aslow and ?c@regor "ade a great deal o# intuitive sense and included #ear but did not #ocus e clusively on #ear. Coth theories were tested by researchers and #ailed to be supported by any "a,or e"pirical studies% "aking never being supported by e"pirical research the correct response #or this /uestion. )i##: * Page Re#: *4

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181) >hich o# the #ollowing is JDT included as part o# the /uantitative approach to "anage"entF A) statistics C) opti"i'ation "odels 6) organi'ational behavior )) co"puter si"ulations Answer: 6 E planation: 6) .tatistics% opti"i'ation% and co"puter si"ulations are all technical% "athe"atical approaches to understanding "anage"ent% so they can all be eli"inated as correct responses #or this /uestion. Drgani'ational behavior BDC) studies were based on observational rather than /uantitative "ethods% so organi'ational behavior is the correct response. )i##: * Page Re#: *5 18*) The /uantitative approach to "anage"ent was largely used to i"prove GGGGGGGG. A) productivity C) e##iciency 6) decision "aking )) planning Answer: 6 E planation: 6) Though they certainly could be applied to productivity% e##iciency% or planning% /uantitative studies at $ord ?otor 6o"pany and elsewhere were used pri"arily to i"prove the /uality o# decision "aking% causing this choice to be the correct response #or this /uestion. )i##: * Page Re#: *5 18+) ?any techni/ues in the /uantitative approach to "anage"ent were borrowed #ro" GGGGGGGG. A) co"puter "odels C) the physical sciences 6) the "ilitary )) biological science Answer: 6 E planation: 6) A#ter >orld >ar &&% "any "anagers ca"e out o# the ar"ed #orces and applied statistical "ethods that they had e"ployed to solve "ilitary proble"s to "anage"ent situations% "aking the "ilitary the correct response. .i"ilar "ethods have been applied e tensively in both the physical and biological sciences% but they did not originate in those sciences. >ide use o# co"puter "odels in "anage"ent did not co"e until a #ew decades later. )i##: * Page Re#: *5

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183) The 1>hi' !ids1 applied statistical "ethods to "anage"ent at GGGGGGGG. A) the >estern Electric 6o"pany C) the $ord ?otor 6o"pany 6) &C? )) the .ony 6orporation Answer: C E planation: C) The 1>hi' !ids1 were co"puter 1whi''es1 who ca"e out o# the ar"ed #orces and began applying statistical "ethods that they had developed in the "ilitary to i"prove decision "aking at the $ord ?otor 6o"pany% "aking the $ord ?otor 6o"pany the correct response #or this /uestion. The =awthorne plant that was used in the =awthorne studies was part o# the >estern Electric 6o"pany. .ony and &C? were not helped by the 1>hi' !ids.1 )i##: * Page Re#: *5 184) These organi'ations were the #irst to e"ploy the ideas o# /uality e perts such as >. Edwards )e"ing and <oseph ?. )uran. A) <apanese co"panies C) 6hinese co"panies 6) A"erican co"panies )) 6anadian co"panies Answer: A E planation: A) &n the 1;48s% <apanese "anu#acturing lagged behind A"erican "anu#acturing in al"ost every way% but /uality was a particular de#iciency so they turned to /uality e perts. E"ploying the ideas o# the /uality e perts% over the ne t three decades <apanese co"panies took the lead in /uality #or such products as televisions and auto"obiles% "aking <apanese co"panies the correct response #or this /uestion% and ruling out all other responses. &n subse/uent decades A"erican% 6anadian% and 6hinese organi'ations learned "uch about /uality #ro" the <apanese co"panies that had #irst #ocused on it. )i##: * Page Re#: *5 185) >hich o# the #ollowing is "ost closely associated with the work o# >. Edwards )e"ingF A) total /uality "anage"ent C) the =awthorne studies 6) the general ad"inistrative theory )) the hu"an relations "ove"ent Answer: A E planation: A) Euality was the pri"ary concern o# >. Edwards )e"ing in his total /uality "anage"ent progra"% "aking this choice the correct response #or this /uestion. The general ad"inistrative theory as presented by $ayol and >eber were "ore concerned with what constituted good "anage"ent than /uality. The =awthorne studies were strictly behavioral and looked #or productivity #actors% not i"prove"ents in /uality. The hu"an relations "ove"ent #ocused on what "ade e"ployees 1tick%1 not /uality. )i##: * Page Re#: *4

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189) Dne o# the key co"ponents o# total /uality "anage"ent BTE?) is a #ocus on GGGGGGGG i"prove"ent. A) gradual C) dra"atic 6) continual )) "eaning#ul Answer: 6 E planation: 6) Though i"prove"ent with TE? is so"eti"es gradual and hope#ully "eaning#ul% the true #ocus o# the approach is to "ake attention to /uality a continuous concern that doesn0t end when the organi'ation e periences success. &n other words% products "ust be continually i"provedK they are never dee"ed 1good enough.1 This continuous i"prove"ent approach is clearly not sudden or dra"atic% so dra"atic is incorrect. )i##: * Page Re#: *5 18:) >hich o# the #ollowing is a key ele"ent o# total /uality "anage"ent BTE?)F A) responding to custo"er needs C) responding to e"ployee needs 6) anticipating "oves o# co"petitors )) anticipating e"ployee needs Answer: A E planation: A) TE? is concerned "ore with custo"ers than it is with e"ployees or co"petitors% so responding to and anticipating e"ployee needs% as well as anticipating co"petitors0 "oves can be eli"inated as correct responses. This leaves responding to custo"er needs as the correct response since it correctly identi#ies responding to custo"er needs as a top priority o# TE?. )i##: * Page Re#: *5 18;) ?anagers began to look at how syste"s theory related to organi'ations in this decade. A) 1;38s C) 1;48s 6) 1;58s )) 1;:8s Answer: 6 E planation: 6) The idea that the organi'ation is a syste" began to be looked at seriously in the 1;58s% "aking this choice the correct response and ruling out all other responses. A syste" is de#ined as a set o# interrelated and interdependent parts that #unction together as a uni#ied whole. C) The idea that the organi'ation is a syste" began to be looked at seriously in the 1;58s% "aking this choice the correct response and ruling out all other responses. A syste" is de#ined as a set o# interrelated and interdependent parts that #unction together as a uni#ied whole. )i##: * Page Re#: *5

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118) A syste" is de#ined as a set o# interrelated and interdependent parts that #unction GGGGGGGG. A) as separate entities C) together as a uni#ied whole 6) in co"petition with one another )) without any link to the outside world Answer: C E planation: C) Rather than #unction separately% or in co"petition with one another% the parts o# syste"s #unction collectively as single unit% "aking uni#ied whole the correct response #or this /uestion. Jo link to the outside world describes a closed syste"% which is one type o# syste" but is not a correct response because it leaves out the other "ain category o# syste"% the open syste". )i##: * Page Re#: *5 111) A typical organi'ation can be characteri'ed as GGGGGGGG. A) a oneAway syste" C) a closed syste" 6) an open syste" )) a virtual syste" Answer: 6 E planation: 6) An organi'ation is not a oneAway or a closed syste"% since in#or"ation #lows #reely both in and out o# the syste". This characteri'es the organi'ation as an open syste" in which inputs co"e in and outputs #low out% "aking an open syste" the correct response. A virtual syste" is not correct because the organi'ation is a real entity% so it is not virtual in any way. )i##: * Page Re#: *5 11*) &n an open syste"% a "anager is responsible #or "anaging GGGGGGGG. A) ,ust the internal co"pany itsel# and not the e ternal environ"ent C) ,ust the e ternal environ"ent 6) both the internal and the e ternal environ"ent )) the inputs but not the outputs Answer: 6 E planation: 6) &n an open syste" a "anager "ust pay attention to all parts o# the organi'ation. .ince the organi'ation0s reach e tends outside o# the organi'ation itsel#% that "eans in an open syste" "anage"ent involves attention to both the internal co"pany and the e ternal environ"ent which includes both inputs and outputs. This "akes the choice indicating both the internal and e ternal environ"ent the correct response #or this /uestion since it is the only choice that includes both internal and e ternal environ"ents. )i##: * Page Re#: *3

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11+) The idea o# an organi'ation being an open syste" was borrowed #ro" this discipline. A) "athe"atics C) the physical sciences 6) ga"e theory )) psychology Answer: C E planation: CA) An open syste" is de#ined in the physical sciences as a syste" that e changes "atter and energy with its outside environ"ent. This de#inition #its the organi'ation /uite well% since an organi'ation e changes both "aterials Binputs% outputs% products% #or e a"ple) and ideas Bco""unication% #or e a"ple) with the outer world. Accordingly% the correct response #or this /uestion is the physical sciences. All other choices should be ruled out. )i##: * Page Re#: *5 113) ?aterial outputs in an open syste" organi'ation include GGGGGGGG. A) services C) products 6) raw "aterials )) in#or"ation Answer: C E planation: C) Jeither in#or"ation or services are "aterial ite"s so they are incorrect responses #or this /uestion. Raw "aterials are inputs% not outputs so raw "aterials is incorrect. Products are the only choice provided that re#ers to a "aterial that is an output o# a syste"% "aking products the correct response #or this /uestion. )i##: * Page Re#: *5 114) ?aterial inputs in an open syste" organi'ation include GGGGGGGG. A) capital C) hu"an resources 6) raw "aterials )) in#or"ation Answer: 6 E planation: 6) 6apital% in#or"ation% and hu"an resources are all nonA"aterial inputs in an open syste" organi'ation. Dnly raw "aterials are actual physical% tangible ite"s that can have "ass and take up space as "atter% "aking raw "aterials the correct response #or this /uestion. )i##: * Page Re#: *5 115) The only ite" that serves as both an input and an output in an open syste" organi'ation is GGGGGGGG. A) capital C) in#or"ation 6) technology )) products Answer: C E planation: C) Coth capital and technology #unction only as inputs to an organi'ation% not outputs. Products% on the other hand /uali#y as outputs only. &n#or"ation is the one thing that both goes into an organi'ation as an input and is given out by the organi'ation as an output% "aking in#or"ation the correct response #or this /uestion. )i##: * Page Re#: *5
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119) 6ontingency approaches to "anage"ent contend that GGGGGGGG. A) situations deter"ine "anagerial approach C) all organi'ations should be "anaged in the sa"e way 6) "anagers deter"ine "anagerial approach )) no two organi'ations should be "anaged the sa"e way Answer: A E planation: A) The key to contingency approaches is that situations% and not "anagers deter"ine the approach that "anagers should use% "aking situations the correct response. .ince situations vary in di##erent organi'ations% di##erent approaches will be used% eli"inating all organi'ations being "anaged in the sa"e way as a correct response. Jo two organi'ations being "anaged in the sa"e way is wrong because it contends that all organi'ations should be "anaged di##erently. &# two di##erent organi'ations happen to have the sa"e situation% they should both be "anaged in the sa"e way. )i##: * Page Re#: *9 11:) A contingency variable is a #actor that can GGGGGGGG. A) "ake an organi'ation success#ul C) destroy an organi'ation 6) in#luence choice o# "anagerial style )) i"prove organi'ational "orale Answer: 6 E planation: 6) 6ontingency variables have nothing to do with the success or #ailure o# an organi'ation. Jor do contingency variables on their own a##ect organi'ational "orale. &nstead% contingency variables serve as "arkers that guide "anagers toward identi#ying the best "anaging style #or an organi'ation. $or e a"ple% large organi'ations are "anaged di##erently than s"all ones because organi'ational si'e is a contingency variable. -arge organi'ations that #eature ,obs that involve repetitive tasks Banother contingency variable) are "anaged di##erently than si"ilar organi'ations that #eature ,obs with nonArepetitive tasks. All o# this illustrates how contingency variables deter"ine "anagerial style% "aking in#luencing choice o# "anagerial style the correct response #or this /uestion. )i##: * Page Re#: *9 11;) >hich o# the #ollowing is a contingency variableF A) how success#ul an organi'ation is C) how large an organi'ation is 6) how wellAknown an organi'ation is )) how wellA"anaged an organi'ation is Answer: C E planation: C) D# the choices provided% only the si'e o# an organi'ation is a contingency variable that can a##ect the style that suits the organi'ation best. >hether or not the organi'ation is success#ul% wellAknown% or wellA"anaged does not deter"ine "anage"ent style because those characteristics are not contingency variables. )i##: * Page Re#: *9

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1*8) >hich o# the #ollowing is JDT a contingency variableF A) routineness o# tasks per#or"ed C) organi'ational si'e 6) environ"ental uncertainty )) organi'ational history Answer: ) E planation: )) Drgani'ational si'e% the type o# tasks that an organi'ation per#or"s% and environ"ental uncertainty are all typical contingency variables that "anagers turn to when trying to identi#y an appropriate "anaging style #or a co"pany. An organi'ation0s history% on the other hand% typically does not a##ect "anage"ent style and is not a co""only used contingency variable. $or e a"ple% a co"pany "ay have stayed s"all #or decades in the past% but i# it currently has e panded% the "anage"ent style "ust be cra#ted to "atch its current con#iguration% not the con#iguration o# the past. )i##: * Page Re#: *9 1*1) >hich technology develop"ent is likely to have the greatest i"pact on the organi'ation o# the #utureF A) "ain#ra"e co"puters C) cell phones 6) wired networks )) wireless networks Answer: ) E planation: )) Though "ain#ra"e co"puters are still used by large co"panies% their in#luence is likely to decrease as co"puting power is increasingly decentrali'ed and in#or"ation gets disse"inated wherever e"ployees are through both wired and wireless networks. &n the #uture% wireless networks are likely to replace "ost wired syste"s% so wireless networks is the correct response #or this /uestion. 6ell phones% as part o# wireless networks% will have signi#icant i"pact on the organi'ation o# the #uture% but not as "uch as the networks the"selves. )i##: * Page Re#: *9 AA6.C: Technology 1**) &n a short essay discuss the i"pact that the &ndustrial Revolution had on "anage"ent. Answer: )uring the &ndustrial Revolution% which started in the late eighteenth century% "achine power began to substitute #or hu"an power. This "ade it "ore econo"ical to "anu#acture goods in centrali'ed #actories as opposed to s"all shops. The capacity o# a #actory to turn out hundreds rather than a hand#ul o# products each day suddenly created a need #or such things as accurate planning% budgeting% scheduling% supervising% and "onitoring o# work that needed to be done. 6learly% these kinds o# activities could not be done casually or hapha'ardly so a group o# "anage"ent pro#essionals e"erged. -arge e##icient #actories needed "anagers to #orecast de"and and to ensure that enough "aterial was on hand to "ake products. ?anagers were also needed to assign tasks to people and to direct daily activities. The increase in "anagers in turn necessitated the develop"ent o# #or"al theories to guide "anagers in running large organi'ations. )i##: + Page Re#: *+

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1*+) &n a short essay% discuss the i"pact that the publication o# Ada" ."ith0s Wealth of Nations had on "anage"ent. Answer: &n Wealth of Nations Ada" ."ith argued% a"ong other things% that the division o# labor that took place in #actories in which large% co"ple ,ob tasks were broken down into s"all% repetitive actions% would result in dra"atic increases in productivity. This productivity would in turn bring new wealth to the countries that could e"ploy this syste" o# production. ."ith0s prediction turned out to be only partly true% as division o# labor was discovered to have drawbacks. Though division o# labor initially increased productivity% that increase tended to #ade as workers% bogged down in repetitive tasks% lost "orale and "otivation to put out "a i"u" e##ort. )i##: + Page Re#: *+ 1*3) &n a short essay% discuss scienti#ic "anage"ent. Answer: .cienti#ic "anage"ent was largely developed by $rederick >. Taylor and su""ari'ed in his 1;11 book Principles of Scientific Management. Taylor and the other proponents o# scienti#ic "anage"ent observed workers on the ,ob and assessed their per#or"ance. Taylor #elt that ,ob per#or"ance o# workers generally lacked uni#or"ity% and rather than per#or" the task in the best way possible% workers were apt to use sloppy% ine##ective% or ine##icient techni/ues. Accordingly% Taylor developed the idea o# the 1one best way1 to per#or" a ,ob that "aintained that "anagers should: Ba) identi#y the best possible "anner in which a task could be per#or"ed% and Bb) re/uire that workers use this "ethod on the ,ob. )i##: + Page Re#: *3 1*4) &n a short essay% discuss the work o# =enri $ayol and ?a >eber as it relates to the general ad"inistrative approach to "anage"ent. Answer: Rather than look at the per#or"ance o# individual workers the way Taylor did% $ayol and >eber applied scienti#ic "anage"ent to "anagers the"selves. They observed how "anagers #unctioned on the ,ob in an atte"pt to identi#y practices and attitudes o# good "anage"ent. $ayol0s #irst "a,or contribution was to identi#y the #ive #unda"ental #unctions o# "anage"ent. These #ive #unctions still serve as "a,or building blocks o# basic "anage"ent theory today% though they have been pared down to only #our #unctions: planning% organi'ing% leading% and controlling. $ayol also identi#ied the $ourteen Principles o# ?anage"ent. >eber #ocused on observing and analy'ing bureaucracies% which he saw as highly rational and constituted an ideal way to con#igure an organi'ation. >eber did not #eel that all organi'ations should be bureaucracies% however. The #or" worked best% he thought% #or very large organi'ations. )i##: + Page Re#: *3

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1*5) &n a short essay% describe how the work o# Abraha" ?aslow in#luenced "anage"ent. Answer: ?aslow thought that basic hu"an needs #or"ed a hierarchy in which% as soon as one need was "et% the individual "oved on to seek to #ul#ill a higherAlevel need. -owerAlevel needs served as strong "otivating #actors as long as they re"ained un#ul#illed. Dnce #ul#illed% needs ceased being strong "otivators. As an e a"ple o# ?aslow0s view% when a person is hungry he or she is highly "otivated to #ul#ill that need% even risking his or her li#e to obtain nourish"ent. &ndeed% while the person is still without #ood% that need totally do"inates the person0s consciousness. =owever% once the person #inds a situation that supplies a"ple #ood to "eet that un#ul#illed need% the "otivation to obtain the need is greatly reduced. &nstead o# thinking about the need all the ti"e% the person rarely gives the nowA#ul#illed need even a thought. )i##: + Page Re#: *3 AA6.C: Analytic .kills 1*9) &n a short essay% identi#y the principles o# "anage"ent identi#ied by =enri $ayol that are "ost i"portant #or establishing a "anager0s control over e"ployees. Answer: LAnswers will vary.M Authority(gives "anagers the right to give orders and have those orders #ollowed. )iscipline(re/uires e"ployees to obey and respect the rules that govern the organi'ation. Unity o# co""and(states that every e"ployee should receive orders #ro" only one superior. .ubordination o# individual interests to the general interest(states that the interests o# any one e"ployee or group o# e"ployees should not take precedence over the interests o# the organi'ation as a whole. .calar chain(the chain o# co""and that allows the individuals who rank higher in the hierarchy to have authority over individuals below the". )i##: + Page Re#: *3 AA6.C: Analytic .kills

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1*:) &n a short essay% identi#y the principles o# "anage"ent identi#ied by =enri $ayol that are "ost i"portant #or the satis#action and wel#are o# e"ployees. Answer: LAnswers will vary.M Re"uneration(workers "ust be paid a #air wage #or their services. 6entrali'ation(the degree to which e"ployees are allowed to "ake decisions. E/uity(the idea that "anagers should treat subordinates #airly and with kindness. &nitiative(the opportunity #or e"ployees to originate and carry out their own plans to solve proble"s. Esprit de corps(a #eeling o# tea" spirit that gives e"ployees a sense o# belonging. )i##: + Page Re#: *3 AA6.C: Analytic .kills 1*;) &n a short essay% identi#y the principles o# "anage"ent identi#ied by =enri $ayol that are "ost i"portant #or e##iciency and productivity o# the entire organi'ation. Answer: LAnswers will vary.M )ivision o# work(,ob speciali'ation that increases individual output by having e"ployees per#or" si"ple% easyAtoAper#ect ,ob tasks. Unity o# direction(the organi'ation should have a single plan o# action to guide "anagers and workers. Drder(people and "aterials should be in the right place at the right ti"e. .tability o# tenure o# personnel("anage"ent should provide orderly personnel planning and ensure that replace"ents are available to #ill vacancies. )i##: + Page Re#: *3 AA6.C: Analytic .kills

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1+8) &n a short essay% describe the =awthorne .tudies and how they were interpreted. Answer: The =awthorne .tudies were a series o# studies conducted by engineers at the >estern Electric 6o"pany >orks in 6icero% &llinois. The engineers initially designed the studies as a scienti#ic "anage"ent e peri"ent to test the e##ect o# various illu"ination levels on worker productivity. The engineers e pected a si"ple relationship to e"erge(the greater the illu"ination was% the higher they e pected productivity to be. The results did not support the e pectations o# the engineers. &nstead o# a clearAcut relationship between light intensity and productivity% they saw varied results(so"e groups per#or"ed better than others in low light levels% #or e a"ple. To e plain these results they began e ploring the nature o# groups and group interactions. These additional studies resulted in two pri"ary conclusions. $irst% the authors o# the studies concluded that group pressures could signi#icantly a##ect individual per#or"ance. And second% they concluded that people behave di##erently when they know they are being observed in a test situation. These results #unctioned to #urther the i"portance o# hu"an behavior as it pertains to "anage"ent. A#ter the =awthorne studies "anagers reali'ed that people in a workplace could be a##ected by "ore things than ,ust their ,obs and the work conditions the"selves. )i##: + Page Re#: *4 1+1) &n a short essay% e plain how the syste"s approach contributes to the understanding o# "anage"ent. Answer: A syste" is de#ined as a set o# interrelated and interdependent parts that #unction together as a single unit% or uni#ied whole. This view that sees the goal o# a syste" to #unction as a unit is valuable because it puts the #ocus o# "anagers on #irst Ba) to "ake sure that individual parts are the best they can beK Bb) to "ake sure that the coordination o# the parts is opti"alK and #inally Bc) to "ake sure that the entire organi'ation as a #unctioning unit is operating at opti"al level. The second aspect o# the syste"s approach that helps in#or" "anagers is the idea that an organi'ation is an open syste"(that is% an organi'ation doesn0t e ist in isolation #ro" the rest o# the world. The organi'ation has its boundaries% and within those boundaries "anagers need to work to "ake sure that things are per#or"ing at an opti"al level. That said% "anagers also need to keep the outer environ"ent in "ind #ro" which organi'ations obtain inputs and to which they provide outputs. Though "anagers have "uch less control o# the outer environ"ent than they do o# the inner organi'ation itsel#% paying attention to the outer world and how it relates to the organi'ation can help the organi'ation beco"e success#ul. )i##: + Page Re#: +3A+4

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1+*) &n a short essay% describe the contingency approach to "anage"ent. Answer: $or years% "anagers searched #or the single best "anage"ent approach that could be applied to any organi'ation. Then% in the 1;58s theorists started thinking that perhaps there was no single 1best1 approach that could be applied universally. &nstead% there were a variety o# di##erent 1best1 approaches that each was best suited to a particular situation. Theorists dubbed this "ethod o# #inding an appropriate "anage"ent style the contingency approach because the style a "anager would choose was contingent% or dependent on the situation. To de#ine di##erent situations% the theorists identi#ied a nu"ber o# contingency variables that included organi'ation si'e% routineness o# task% and environ"ental uncertainty. )i##: + Page Re#: *9 1++) &n a short essay% describe how the contingency variable o# organi'ation si'e "ight a##ect "anage"ent style. Answer: As the si'e o# an organi'ation increases% so do the proble"s o# "anaging that organi'ation. $or e a"ple% a single "anagerNboss "ight be able to handle all planning% organi'ing% "otivating% leading% and controlling chores #or an organi'ation that has less than ten or so e"ployees. =owever% when the si'e o# the organi'ation suddenly ,u"ps to twenty or thirty% a certain a"ount o# #or"al hierarchy "ust be instituted% and when it ,u"ps to one hundred or #ive hundred e"ployees the organi'ation "ust #eature /uite a bit o# #or"al structure and control. There#ore% the ideal "anage"ent style o# a s"all organi'ation is necessarily very di##erent #ro" that o# a very large organi'ation. )i##: + Page Re#: *9 1+3) &n a short essay% describe how the contingency variable o# routineness o# task "ight a##ect "anage"ent style. Answer: =ow routine the task is that e"ployees per#or" can a##ect "anage"ent style in a variety o# ways. $or e a"ple% a creative work tea" that routinely solves highly uni/ue proble"s "ight re/uire a "anagerial style that provides very little with respect to "otivation(as the workers are "otivated by the tasks the"selves(but /uite a bit in ter"s o# structure in "aking sure that the tea"% #or e a"ple% stays on task% doesn0t stray to irrelevant% unproductive topics% adheres to schedules% and so on. Asse"bly line workers% on the other hand% who per#or" the sa"e repetitive tasks every day% "ight re/uire a "anagerial style that includes /uite a bit o# "otivation and encourage"ent as well as a variety o# di##erent rewards such as pri'es to keep workers working at a highly productive rate. )i##: + Page Re#: *9

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1+4) &n a short essay% describe how the contingency variable o# environ"ental uncertainty "ight a##ect "anage"ent style. Answer: &n an industry such as the newspaper business% #or e a"ple% where there is a lot o# uncertainty about ,obs% revenues% and strategies that the paper will take% and priorities it should have% "anagers need to take on a very #le ible but #ir" approach. They need to convey to e"ployees that they are in charge and on the ball. At the sa"e ti"e they need to be able to change strategies /uickly(i# the business cli"ate suddenly changes(and pro"ote a new strategy and set o# priorities i# the situation warrants it. &n an industry with "uch less environ"ental uncertainty "anagers can take a "uch "ore #or"al and prescribed course o# action% putting% #or e a"ple% great e"phasis on sticking to planned goals rather than changing plans. )i##: + Page Re#: *9

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