MGT 350 Final Exam

A leader's power comes from organizational authority.

False

A people tend to surround themselves with A people, and B people tend to surround themselves with B people.

False

According to Arthur Brooks, we should celebrate the leisure that our economic wealth makes possible.

False

According to Iverson, a high-performance organization must continually work to improve its traditional performance evaluation.

False

According to Iverson, a high-performance organization must continually work to reform its hierarchy and make it more efficient.

False

Approval of others and being concerned about their welfare is an alternative to exchange.

False

As jobs changed from farm work to factory work, labor discipline was necessary because farm work was easier than factory work.

False

Bureaucracy imposes higher costs on an organization but leads to higher quality of output.

False

Demand for labor is highest in the richest countries.

False

Direct reports to FLLs typically exhibit the systemic soldiering that Frederick Taylor warned about.

False

Direction builds an organization on commitment.

False

Employees, except for hourly clock-punchers, will make an extraordinary effort if you reward them richly, treat them with respect, and give them real power.

False

Factor payments include only wages and profit.

False

Factors of production include only labor and capital.

False

General Motors, with its command and control model, could choose to adopt some version of Nucor's approach.

False

Initiative and incentive and Scientific Management are contrasts.

False

It is from the benevolence of the butcher, the brewer, and the baker that we gain our dinner.

False

Leadership is the use of power, and management is the use of influence.

False

Magnanimity and humility are contrasting virtues that are difficult to reconcile.

False

Modern fiat money is safe from inflation, because it is based on "the full faith and credit" of the US government.

False

Noyce believed that profit sharing was the most powerful incentive in a business dependent on research.

False

Noyce gained the nickname "rapid Robert" for the speed with which he was promoted within his organization.

False

Noyce won a Nobel Prize for his invention of the integrated circuit.

False

Purity of intention of the leader means a commitment to career success.

False

Referent power is given to the leader by the organization.

False

Scientific Management clearly distinguished between teaching and control.

False

Systemic soldiering can be overcome if workers know that production standards are established by management.

False

Taylor took an entry-level position in a corporation after completing his education at an ivy league university.

False

Taylor's father was a highly successful professional.

False

The Principles of Leadership are planning, alignment, and motivation.

False

The differential piece rate is a cause of soldiering.

False

The hard bureaucracy that Intel developed after Noyce suggests that Intel had a culture of leadership.

False

Value in exchange is "the utility of some particular object."

False

Virtues of the will include courage, prudence, humility, and justice.

False

Who was the first economist to teach at Oxford University?

Nassau Senior

What is wealth?

The welfare of the whole person

Alignment is the process of selecting strong leaders for all levels of an organization.

True

An organization's belief that everyone can and must lead creates pride and builds trust.

True

At Nucor, working-level teams have the authority to make capital investments.

True

Bureaucracies are natural opponents of anything that challenges their dominant role.

True

Discipline means asking everyone on the front line to be their own toughest boss.

True

Excess consumption and unproductive labor are impediments to growth.

True

Genuine interest in the workman is above all other elements of incentive.

True

Growth occurs from intense use of labor and capital.

True

Havard argues that virtuous leadership depends upon Aristotle's transcendentals.

True

Industries that produce light-weight and valuable products will tend toward monopoly.

True

Ken Iverson stated that "if your people ever have reason to want a union, you have already lost."

True

Leaders always have expert power.

True

Leaders can grow in character by repetition of the classical human virtues.

True

Leadership is the antidote to statism.

True

Leadership joins initiative and incentive with Scientific Management.

True

Management in which workmen give their best initiative and in return receive some special incentive is the best type of management in ordinary use.

True

Modern economics places great importance on growth and development, because it causes the natural rates of wages, profit, and rent to go up.

True

Noyce believed that the young engineers were the real homo novus.

True

Nucor's pay method is similar to that recommended by Frederick Taylor.

True

Open book management must get the people to trust the integrity of the management.

True

Rapid industrial growth led organizations to be founded in a hurried and haphazard manner.

True

Real price and nominal price both express value in exchange.

True

Revealed preference is the insight that your market purchases provide into your preference ordering.

True

Strong leadership is built on virtues of the heart and virtues of the will.

True

Taylor said that Scientific Management can be applied with equal force to UNCW.

True

Taylor viewed the individual as an isolated decision maker, in contrast to the Gilbreths who viewed the individual as a social being whose meaning is found in organizations and culture.

True

Taylor's views of management were shaped by his experience working as a common laborer.

True

Ted Hoff proved to Noyce that if you created the right type of corporate community, genius would flower.

True

The "Great Game of Business" is Jack Stack's distinctive rand of open book management.

True

The Eastern Rate Case of 1910 brought Taylor both fame and the hatred of large bureaucracies.

True

The Gilbreths differed from Taylor by seeing the organization as a setting for productivity.

True

The Great Game of Business includes two ideas: making everyone into owners and making performance tracking into a game.

True

The ability to identify environmental trends is an expression of the expert power of the leader.

True

The culture of Nucor embodies competition among facilities and shifts balanced by cooperation and idea sharing.

True

The division of labor is limited by the extent of the market, because the extent of the market increases the power of exchanging.

True

The division of labor is the separation of different trades and employments from one another and makes possible an increase of the productive powers of labor.

True

The interest of the laborer became separated from the interest of the organization due to the increasing size of the organization.

True

The mystery of work is why people soldier when they benefit from work and they like to work.

True

The principle of Natural Liberty is the analytic proposition that free interaction of individuals produces not chaos but an orderly pattern that is logically determined.

True

The problem presented by the division of labor requires exchange as a solution and uses markets as the mechanism.

True

The rank order of the goods that you prefer to buy is called your "preference ordering."

True

The realization that, in the semiconductor business, brainpower was the entire franchise led to defection capital.

True

The standards of open book management provide a productive setting within an organization.

True

The subjects of Book 2 through Book 5 of The Wealth of Nations are as follows: Book 2: Theory of capital Book 3: Historical study of economic growth Book 4: Critique of monopolies and colonialism Book 5: Public finance

True

The vision statement expresses to the organization the purpose of the leader.

True

The worker who works at a moderate but constant pace not only preserves his health but also creates the greatest amount of output over time.

True

To determine the price of your labor, value in use must be replaced by value in exchange.

True

To provide a setting for productivity an organization must replace less productive people with more productivity people.

True

USMC leadership training seeks to create the strategic corporal.

True

We choose to soldier because we don't know how to perform the work correctly and because management fails to motivate.

True

When an organization stresses strong leadership down to the working level, it is said to have a culture of leadership.

True

A team is an organization that _________?

has no manager with power and shares rewards equally among members.

If the market price is greater than the natural price, then __________.

one or more of the factors is getting more than the natural payment.

What are the components of the "tripartite nature of man"?

physical, mental, spiritual

The division of labor results from

self-interest and the propensity to truck, barter, and exchange

Management is the _______?

shaping of an individual's purpose to focus on the organization's purpose.

The ordinary rate factor payments is determined by __________.

the general circumstances of the society

Effectual demand is determined by __________.

the total number of people willing to pay the natural price for a commodity.

According to Lillian Gilbreth, an engineer/manager/leader is on a quest for complete knowledge and perfect work.

True

According to Lillian Gilbreth, the modern Holy Grail is the One Best Way.

True

What of the following best describes Richard Cantillon's definition of an entrepreneur?

Anyone who buys at a fixed price and sells at an uncertain price.

The three determinants of GDP growth are driven by _________?

Capital investment

A first-level leader is a leader who leads others who do not lead others.

True

A principle of leadership is to identify purpose amidst uncertainty and change

True

A rising wage rate leads to rising human capital, higher motivation, a higher infant survival, and, logically, a higher birth rate.

True

A true team needs little or no management and draws its motivation from its mission.

True

According to Arthur Brooks, happy people work harder than unhappy people.

True

According to Cantilon, a thief is an entrepreneur.

True

Which of the following is true about "work" versus "labor"?

Work becomes labor when a human subordinates their personal purpose to an organizational purpose.

An industry is ____________?

a group of businesses that create a similar product.

A corporation is ___________.

a method of ownership.

Markets are enlarged by

aggregation and transportation

The need for social approbation is expressed in _________?

both status seeking and submission to social norms

A wage just sufficient to maintain the worker and his family is __________.

called the subsistence rate