Contemporary Management Chapter 2

Which of the following is an example of a rule? A. A general mandatory guideline asking all employees to leave their work machines in good order B. A statement issued by the company specifying the sales projection for the next fiscal year C. An informal code of conduct recommending that employees help each other if time permits D. A recommendation by the HR department that employees wear formal clothes during the week E. A suggestion by the technical department to save all work-related files on D drive

A. A general mandatory guideline asking all employees to leave their work machines in good order

_____ is the process by which division of labor occurs as different workers gain expertise in tasks over time. A. Job specialization B. Systems management C. Esprit de corps D. Job rotation E. Centralization

A. Job specialization

_____ refers to the chain of command extending from the top to the bottom of an organization A. Line of authority B. Division of labor C. Unity of direction D. Unity of command E. Esprit de corps

A. Line of authority

_____ is the performance gain caused by two or more departments coordinating their efforts. A. Synergy B. Entropy C. Esprit de corps D. Order E. Equity

A. Synergy

Which of the following is true of rules? A. They are mandatory instructions. B. They are unwritten expectations of behavior. C. They are informal codes of conduct. D. They focus more on creating goals rather than achieving them. E. They are suggestions about best practices.

A. They are mandatory instructions.

Fayol recommended the use of _____ to show the position and duties of each employee and to indicate which positions an employee might move to or be promoted to in the future. A. an organizational chart B. initiative analysis C. unity of direction D. critical path method (CPM) E. PERT chart

A. an organizational chart

Managers who accept the assumptions of Theory Y: A. create a work setting that encourages commitment. B. give little autonomy to workers. C. focus on developing rules and procedures. D. rely on rewards and punishments. E. view workers as lazy.

A. create a work setting that encourages commitment.

An advantage of achieving the right worker-task specialization and linking people and tasks by the speed of the production line is: A. lower costs. B. lower job satisfaction. C. decreased workplace monotony. D. decreased organizational output. E. decreased mechanization of work process.

A. lower costs.

According to Henri Fayol, initiative refers to: A. the ability to act on one's own without direction from a superior. B. shared feelings of comradeship, enthusiasm, or devotion to a common cause among members of a group. C. the justice, impartiality, and fairness to which all organizational members are entitled. D. the methodical arrangement of positions to provide the organization with the greatest benefit and to provide employees with career opportunities. E. obedience, energy, application, and other outward marks of respect for a superior's authority.

A. the ability to act on one's own without direction from a superior.

_____ refers to a formal system of organization and administration designed to ensure efficiency and effectiveness. A. Esprit de corps B. Bureaucracy C. Adhocracy D. Synergy E. Entropy

B. Bureaucracy

_____ is the idea that the organizational structures and control systems that are chosen by managers depend on characteristics of the external environment in which the organization operates. A. Equity theory B. Contingency theory C. Theory X D. Theory Y E. Behavioral management theory

B. Contingency theory

_____ is the study of the factors that have an impact on how individuals and groups respond to and act in organizations. A. Hawthorne studies B. Organizational behavior C. Management science D. Scientific management E. Administrative management

B. Organizational behavior

Which of the following principles of management by Henri Fayol specifies that an employee should report to only one superior? A. Line of authority B. Unity of command C. Centralization D. Esprit de corps E. Decentralization

B. Unity of command

Managers who accept the assumptions of Theory X: A. create a work setting that encourages commitment to organization goals. B. closely monitor workers to make sure that production is not affected. C. focus on giving employees opportunities to exercise initiative. D. provide opportunities for workers to be imaginative. E. view workers as motivated and capable of exercising self-control.

B. closely monitor workers to make sure that production is not affected.

Obedience to a manager's authority is most consistent with Fayol's principle of: A. order. B. discipline. C. esprit de corps. D. equity. E. decentralization

B. discipline.

When the tasks and authority associated with various positions in the organization are clearly specified, it creates a scenario where: A. employees are not sure of what is expected either of them or of each other. B. employees are held strictly accountable for their actions. C. managers face difficulty in tracking the assigned tasks. D. confused employees create havoc within the formal hierarchy of authority. E. order and discipline is undermined.

B. employees are held strictly accountable for their actions.

Administrative management is the study of: A. how managers control the organization's relationship with its external environment. B. how an organizational structure is to be created such that it leads to high efficiency and effectiveness. C. how the feelings, thoughts, and behavior of work group members and managers affect worker performance. D. how characteristics of the work setting—specifically the level of lighting—affect worker performance. E. how managers should personally behave to motivate employees and encourage them to perform at high levels.

B. how an organizational structure is to be created such that it leads to high efficiency and effectiveness.

The management theory that focuses on the use of rigorous quantitative techniques to assist managers to make the best use of organizational resources is called: A. contingency theory. B. management science theory. C. administrative management theory. D. behavioral management theory. E. human relations theory.

B. management science theory.

According to Henri Fayol, esprit de corps refers to: A. the ability to act on one's own without direction from a superior. B. shared feelings of comradeship, enthusiasm, or devotion to a common cause among members of a group. C. the justice, impartiality, and fairness to which all organizational members are entitled. D. the methodical arrangement of positions to provide the organization with the greatest benefit and to provide employees with career opportunities. E. obedience, energy, application, and other outward marks of respect for a superior's authority.

B. shared feelings of comradeship, enthusiasm, or devotion to a common cause among members of a group.

Job specialization refers to: A. the process by which each position's formal authority in an organizational hierarchy is established. B. the process by which division of labor occurs as different workers gain expertise in tasks. C. the process by which subordinates receive orders and report to only one superior. D. the process by which members of different departments work together in cross-departmental teams to accomplish projects. E. the process by which employees explore new ways to improve how tasks are performed.

B. the process by which division of labor occurs as different workers gain expertise in tasks.

_____ refers to the concentration of authority at the top of the organizational chart instead of being distributed throughout the managerial hierarchy. A. Unity of direction B. Synergy C. Centralization D. Unity of command E. Entropy

C. Centralization

_____ refers to a system where small workshops run by skilled workers produce hand-manufactured products. A. Mass production B. Flow production C. Crafts production D. Series production E. Mechanized production

C. Crafts production

Which of the following is true of an organization with a mechanistic structure? A. The organization uses the structure only when needed—when the organizational environment is unstable. B. A mechanistic structure requires more managerial time, money, and effort than an organic structure. C. Employees are closely supervised and follow well-defined rules and standard operating procedures. D. Authority is decentralized to middle and first-line managers to encourage them to take responsibility. E. Here, managers can react more quickly to a changing environment than can managers in an organic structure.

C. Employees are closely supervised and follow well-defined rules and standard operating procedures.

Which of the following is true of norms? A. They are mandatory instructions that must be followed by all employees of a company. B. They are written instructions about desired behavior in the workplace. C. They are informal codes of conduct among employees in a particular company. D. They give detailed instructions about how to perform a certain aspect of a task. E. They specify actions to be taken under different circumstances to achieve specific company goals.

C. They are informal codes of conduct among employees in a particular company.

A company that wishes to increase the quality of its products should opt for _____, a branch of management science that provides tools to analyze the company's input, conversion, and output activities. A. Quantitative management B. Operations management C. Total quality management D. Management information systems E. Numerical management

C. Total quality management

According to Taylor, the production process becomes more efficient with: A. an increase in the effort that each worker puts in to produce a unit of output. B. an increase in the amount of time required to produce a unit of output. C. an increase in division of labor through specialization. D. the use of informal-rule-of thumb knowledge. E. the use of intuitive knowledge.

C. an increase in division of labor through specialization.

The power to hold workers accountable for their actions and to make decisions about the use of organizational resources is known as: A. initiative. B. synergy. C. authority. D. esprit de corps. E. entropy.

C. authority.

The primary message of _____ is that there is no one best way to organize. A. Theory X B. administrative management theory C. contingency theory D. behavioral management theory E. management science theory

C. contingency theory

In the context of management, rules refer to: A. a reporting relationship in which an employee receives orders from only one superior. B. the ability of an individual to act on his own accord without direction from a superior. C. formal written instructions that specify actions to be taken under different circumstances. D. the performance gains that result when individuals and departments coordinate their actions. E. the methodical arrangement of positions to provide the organization with the greatest benefit.

C. formal written instructions that specify actions to be taken under different circumstances.

The aspect of management theory that uses mathematical techniques such as modeling and simulation to help managers make better decisions is called: A. behavioral management. B. contingency management. C. quantitative management. D. administrative management. E. human relations management.

C. quantitative management.

The line of authority in an organization is: A. the concentration of authority at the top of the managerial hierarchy. B. the singleness of purpose that makes possible the creation of one plan of action. C. the chain of command extending from the top to the bottom of an organization. D. the shared feelings of comradeship, enthusiasm, and devotion to a common cause. E. a reporting relationship in which an employee receives orders from only one superior.

C. the chain of command extending from the top to the bottom of an organization.

_____ gives managers the right to direct and control their subordinates' behavior to accomplish organizational goals. A. Entropy B. Synergy C. Esprit de corps D. Authority E. Equity

D. Authority

Which of the following is true of scientific management? A. It resulted in jobs that were usually non-repetitive. B. It brought all workers more gain than hardship. C. It revealed the maximum efficiency of work systems. D. It resulted in job dissatisfaction for many workers. E. It resulted in increased trust between managers and workers.

D. It resulted in job dissatisfaction for many workers.

_____ refers to a system of task and authority relationships that controls how employees use resources to achieve a company's goals. A. Corporate variance B. Work sharing C. Management scalability D. Organizational structure E. Job rotation

D. Organizational structure

The Marketing Manager at RST Global Inc. developed a five-year marketing plan that was in stark contrast with the objectives outlined in the organization's strategic plan. Which of the principles of Henri Fayol does this go against? A. Order B. Line of authority C. Unity of command D. Unity of direction E. Span of control

D. Unity of direction

Which of the following revelations from different research studies came to be known as the Hawthorne effect? A. Group members subjecting those workers who violate the group norms to sanctions B. Productivity increasing, regardless of the level of illumination in the workplace C. Workers concealing the true potential efficiency of a work system to protect their interests D. Workers' productivity being affected more by the attention received from researchers than by the work setting E. Employees in a "no-talking" workplace developing ways of talking to one another out of the sides of their mouths

D. Workers' productivity being affected more by the attention received from researchers than by the work setting

EZtronics' approach to management is consistent with Theory Y because: A. managers at EZtronics control workers' behavior by means of rewards and punishments. B. managers at EZtronics closely supervise their subordinates. C. managers at EZtronics do not believe in giving workers any autonomy in solving problems. D. managers at EZtronics have created a work setting that allows workers to exercise initiative. E. managers at EZtronics have created a work setting that reflects a belief that workers are lazy.

D. managers at EZtronics have created a work setting that allows workers to exercise initiative.

An organization that has a single, comprehensive long-term plan that leads every department within the organization is following Fayol's principle of: A. order. B. line of authority. C. unity of command. D. unity of direction. E. decentralization.

D. unity of direction.

Mayfair Mobile's external environment is changing rapidly and it responds by decentralizing decisions to lower-level managers so that the organization can react faster. Which of the following types of organizational structure allows this? A. A mechanistic structure B. A formal structure C. A bureaucratic structure D. An oligarchic structure E. An organic structure

E. An organic structure

Henry Fayol believed that in order to increase the efficiency of the management process it is essential that: A. authority should be concentrated at the top of the chain of command. B. managers should discourage creativity in employees so that they stay focused on their jobs. C. there should be greater number of levels in a managerial hierarchy. D. managers should not have the right give orders to employees; they should only give polite instructions. E. all organizational members are entitled to be treated with justice and respect.

E. all organizational members are entitled to be treated with justice and respect.

If an organization has a profit-sharing plan in which employees are able to purchase the company's stock at a discount whenever the organization makes huge profits, then this organization follows Fayol's principle of: A. centralization. B. discipline. C. initiative. D. esprit de corps. E. remuneration of personnel.

E. remuneration of personnel.

The idea that employees who stay with the organization for many years develop skills on the job which can help the organization to become more efficient is consistent with Fayol's principle of: A. unity of command. B. unity of direction. C. initiative. D. discipline. E. stability of tenure.

E. stability of tenure.

In a bureaucracy, a manager's formal authority derives from: A. his or her social standing and personal contacts. B. informal rule-of-thumb knowledge. C. intuitive knowledge. D. codifying the new methods of performing tasks into written rules. E. the position he or she holds in the organization.

E. the position he or she holds in the organization.

In the context of human relations movement and related studies, who among the following is a "ratebuster?" A. A person performing above the work group performance norm B. A person performing below the work group performance norm C. A person performing at the pace the manager requests D. A person performing below the company performance standard E. A person performing at a pace he feels matches his pay

A. A person performing above the work group performance norm

Which of the following is true of centralization in an organization? A. Authority is concentrated at the top of the managerial hierarchy. B. Subordinates play an important role in decision-making within the company. C. It prevents the organization from pursuing its strategy. D. It makes middle and first-line managers more flexible and adaptable. E. It allows people who are closest to problems to respond to them in a timely manner.

A. Authority is concentrated at the top of the managerial hierarchy.

Which of the following is true of dual command? A. It causes confusion among subordinates. B. It strengthens order and discipline. C. It makes assessing a manager's authority easy. D. It was advocated by Henry Fayol. E. It exists when a subordinate receives orders from only one supervisor

A. It causes confusion among subordinates.

Which of the following is an example of a company's standard operating procedure? A. A general recommendation that all employees leave their work machines in good order B. A compulsory practice of employees cleaning their work areas at the end of each day C. An informal code of conduct prescribing that employees help each other if time permits D. A suggestion by the technical department to save all work-related files on D drive E. A recommendation by the HR department that employees wear formal clothes during the week

B. A compulsory practice of employees cleaning their work areas at the end of each day

_____ refers to the tendency of a closed system to lose its ability to control itself, and thus disintegrate. A. Synergy B. Entropy C. Esprit de corps D. Order E. Equity

B. Entropy

Which of the following best reflects Mary Parker Follett's views on management and leadership in an organization? A. Managers should avoid involving workers in analyzing their jobs to identify better ways to perform tasks as this could lead to employees underperforming. B. If workers have the relevant knowledge, then workers, rather than managers, should be in control of the work process itself. C. The formal line of authority and vertical chain of command are the most essential steps to effective management. D. Members of different departments should avoid working together in cross-departmental teams to accomplish projects in order to minimize duplication of effort. E. Managers' formal authority deriving from their position in the hierarchy should decide who will lead at any particular moment.

B. If workers have the relevant knowledge, then workers, rather than managers, should be in control of the work process itself.

Fayol's principle of initiative suggests that: A. employees ought to be closely monitored. B. managers should encourage employees to be innovative and creative. C. managers should ensure that the tasks and roles of each employee are clearly specified. D. authority should be concentrated at the top of the hierarchy. E. mangers should use rewards and punishments to control the behavior of employees.

B. managers should encourage employees to be innovative and creative.

The idea that workers should be aware of how their performance affects the performance of the organization as a whole is most consistent with Fayol's principle of: A. unity of command. B. subordination of individual interests to the common interest. C. remuneration of personnel. D. esprit de corps. E. stability of tenure of personnel.

B. subordination of individual interests to the common interest.

An engineer receives orders from and reports to both his department manager as well as project manager. This violates Fayol's principle of: A. centralization. B. unity of command. C. unity of direction. D. division of labor. E. esprit de corps.

B. unity of command.

Which of the following is an example of a norm rather than a rule? A. A general mandatory guideline asking all employees to leave their work machines in good order B. A specific mandatory guideline asking employees to oil machine parts labeled A and B; and replace C and D C. An informal code of conduct recommending that employees help each other if time permits D. A recommendation by the HR department that employees wear formal clothes during the week E. A suggestion by the technical department that all work-related files are saved in a common location

C. An informal code of conduct recommending that employees help each other if time permits

If a manager designs the organizational hierarchy based on the characteristics of the organizational environment, he is acting in accordance with _____. A. Equity theory B. Fayol's theory C. Contingency theory D. Queuing theory E. Chaos theory

C. Contingency theory

Mary Parker Follett's primary criticism of Taylor's system of scientific management was that: A. Taylor proposed that managers should involve workers in analyzing their jobs to identify better ways to perform tasks. B. Taylor did not use scientific techniques like time-and-motion studies to analyze workers' jobs. C. scientific management did not allow workers to exercise initiative and contribute to the organization. D. scientific management advocated that workers, rather than managers, should be in control of the work process itself. E. Taylor said that managers should behave as coaches and facilitators—not as monitors and supervisors.

C. scientific management did not allow workers to exercise initiative and contribute to the organization.

Which of the following practices was advocated by Mary Parker Follett? A. Workers should not be allowed to participate in the work development process. B. Authority should go with hierarchical positions rather than knowledge. C. Managers should behave as monitors and supervisors. D. Workers should be allowed to exercise initiative in their everyday work lives. E. Members of each department should stick to their own department; cross-functioning should be discouraged.

D. Workers should be allowed to exercise initiative in their everyday work lives.

The human relations movement advocates that: A. mangers use punishments as a tool to elicit cooperation from employees. B. the level of work group performance be controlled by workers. C. employees be monitored outside the workplace. D. supervisors be behaviorally trained to manage subordinates. E. supervisors make all the important decisions concerning the company.

D. supervisors be behaviorally trained to manage subordinates.

Which of the following statements indicates that Megabytes Inc. has implemented an organic structure? A. At Megabytes, employees are discouraged from taking up more responsibilities. B. At Megabytes, forming of cross-departmental or functional teams is discouraged. C. At Megabytes, employees are closely supervised and follow well-defined rules. D. At Megabytes, emphasis is placed on strict discipline and order. E. At Megabytes, authority is decentralized to middle and first-line managers.

E. At Megabytes, authority is decentralized to middle and first-line managers.

Which of the following statements is consistent with the principles of scientific management? A. Stick to the current method of performing tasks and focus only on increasing the speed. B. New methods of performing tasks ought to be communicated verbally rather than in writing. C. Allow workers to establish their own rules and SOPs. D. Establish a standard pay system that is independent of performance. E. Increase job specialization in order to make the production process more efficient.

E. Increase job specialization in order to make the production process more efficient.

Which of the following is true of an open system? A. It is more likely to experience entropy than is a closed system. B. It uses resources from the external environment for internal processes, but does not return anything to the external environment. C. The input, process, and output stages in the production process are performed in the external environment. D. It is a self-contained system that is not affected by changes in its environment. E. It takes in resources from its external environment and converts them into goods that are then sent back to that environment for purchase by customers.

E. It takes in resources from its external environment and converts them into goods that are then sent back to that environment for purchase by customers.

According to Henri Fayol, discipline refers to: A. the ability to act on one's own without direction from a superior. B. shared feelings of comradeship, enthusiasm, or devotion to a common cause among members of a group. C. the justice, impartiality, and fairness to which all organizational members are entitled. D. the methodical arrangement of positions to provide the organization with the greatest benefit and to provide employees with career opportunities. E. Stability of tenure of personnel

E. Stability of tenure of personnel