The Evolution of Management Thought 9th Edition Test Bank

The Evolution of Management Thought, 9th Edition By

Wren & Bedeian

Test Bank Chapter #1 1-1

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The author of your text defined management as “the activity whose True purpose is to achieve desired results through the efficient allocation and utilization of human and material resources.”

Management thought is the existing body of knowledge about True management as an activity and as an academic discipline The traditional method of resource allocates resources based on custom True and belief.

The market method of resource allocation relies on marketplace True competition to maintain equilibrium between the supply and demand of resources and, in turn, automatically adjusts price levels, wages, and employment.

The political facet of culture concerns the relationship between True individuals and sovereign states and includes institutional arrangements for establishing social order and protecting life and property.

The organization is the fundamental unit of analysis in the study of False management.

Management facilitates the efforts of people in organized groups and True arises when people seek to cooperate to achieve goals.

Management is a closed-end activity since managers operate False organizations and make decisions within a given set of cultural values and institutions.

Customs rarely influences the decisions people make.

False The practice of management is ancient, but the formal study of the body True of management knowledge is relatively new.

The command method of resource allocation is the imposition of the will True of some central person or agency upon the rest of the economy about how resources will be allocated and utilized.

A universal concern in management is the scarcity of economic True resources for a multiplicity of economic and social ends.

Economic historian Robert L. Heilbroner identified three different (2) methods for allocating resources. Which of the following is not one of these?

(1) Tradition (2) Economic (3) Command (4) Market forces

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Test Bank Chapter #1 1-14

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Some of the common elements of organizations throughout history (4) include which of the following?

(1) A goal to be accomplished (2) Organizational members needed something with which to accomplish their goals (3) A leader (4) All of the above (5) Only (1) and (2) above Which of the following is not one of the types of humans not mentioned (2) in the chapter?

(1) Homo habilis (2) Homo heidelbergensis (3) Homo erectus (4) Homo sapiens The relationship of people to resources was determined to be: (3) (1) the political facet of management (2) the social facet of management (3) the economic facet of management (4) all of the above (5) none of the above What is the distinction between management "thought" and the activity of management?

An appreciation of the evolution of management thought contributes to a more logical, coherent picture of the present field through providing a historical backdrop for unifying the different approaches to management.

Without a knowledge of the past, individuals have only their own limited experiences as a base for thought and action. Making sense of the current status and prospective evolution of management thought, therefore, requires a recognition of its origins and development over time.

Identify the economic, social, technological, and political facets of culture as described in the text. How do these factors influence the job of the manager? Is management “culture-free?”

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Test Bank Chapter #1

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Economic historian Robert L. Heilbroner identified three different methods for allocating resources: by tradition, by command, and by market forces.7 The traditional method allocates resources based on custom and belief. Occupations are passed down from one generation to the next, agriculture predominates over industry, and social and economic systems remain essentially closed to change. The command method is based on authority imposed by an economic “commander-inchief.” Resources are allocated based on the decree of a monarch, dictator, or central planning agency. In situations involving monarchs and dictators, one-man rule allows a single individual’s interest to trump national interests. The market method relies on marketplace competition to maintain equilibrium between the supply and demand of resources and, in turn, automatically adjusts price levels, wages, and employment.

Why do organizations exist?

Even before people began to record their activities, they found it necessary to coordinate their combined efforts as they worked together to fulfill their shared needs. As an overview, Figure 1.1 places humans in a “state of nature” characterized by a relatively harsh environment and general scarcity of resources. Acknowledging that all people have a shared set of needs, it traces the quest for need satisfaction through the formation of economic, social, and political organizations. Management, an activity essential to organized endeavors, facilitates the satisfaction of people’s needs.

Can an organization succeed without management?

No. Early humans found that they could magnify their own abilities by working with others to better satisfy their respective needs. Differences in natural skills and abilities led to the observation that some people were better at certain tasks than others. Tasks, thus, were logically differentiated; that is, there was a division of labor to take advantage of inborn talents. Once labor was divided, some agreement had to be reached about how to structure and interrelate various activities to accomplish desired goals. As the activities required to accomplish a task grew in number, it became necessary to combine similar tasks and develop a hierarchy of authority to assure adequate coordination across activities. group members had to achieve some agreement about what was to be done, how it was to be done, and who would be responsible for expending the required effort. Indeed, as has been observed, “if left free of exogenous forces, any affinity group will naturally evolve a hierarchal network inherently structured to maximize the desired output of the group.”

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Test Bank Chapter 2 2-1

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Leadership, delegation, span of control, planning, organizing, and controlling were managerial practices that were rarely found among ancient peoples.

In modern organizational terms, the early Catholic church leaders perceived a need to "institutionalize" the church; that is, the need to specify policies, procedures, doctrine, and authority.

Sun Tzu's decision rules developed for military strategy over 2,000 years ago are not useful in guiding modern business strategy.

The idea of a span of control is at least as old as the Egyptian civilization and was practiced by early civilizations as well.

Craft guilds promoted the division of labor by specifying job jurisdictions--that is, what work was to be done by members of that craft only.

According to Adam Smith, the division of labor led to greater productivity without any negative consequences.

Charisma is an Egyptian concept that pertained to the "rule of ten" in administrative ratios.

The "just price" for a product, according to St. Thomas Aquinas, was the market, or prevailing price.

Business ethics, according to Nider, should be caveat venditor.

The domestic system of production emerged because of the development of steam power.

McClelland isolated the psychological factor "need for power" to help explain Protestant values toward work.

The Liberty ethic was the idea that government is created to protect our basic human rights.

Max Weber created the idea of a Market ethic.

Ethics in business transactions was generally ignored in the development of western society until the 21st century.

The Protestant ethic was the idea that working hard, reinvesting your money, and living frugally was good.

In the development of management thought, the Egyptians were probably the first to recognize the concept of: (1) merit rating system (2) span of control (3) early concept of a "corporation" (4) double entry accounting system (5) product liability Perhaps the one person who had the greatest influence on the formation of modern constitutional governments was: (1) Adam Smith (2) Max Weber (3) Thomas Hobbes (4) Nicolo Machiavelli (5) none of the above

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Test Bank Chapter 2 2-18

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Machiavelli identified three routes to the top. Which of the following was not one of these?

(1) Family (2) Fortune (3) Ability (4) Villainy _____ employed the "exception principle."

(1) Socrates (2) Aristotle (3) Plato (4) Moses (5) none of the above To explain the emergence of capitalism from a previously feudal society, Max Weber examined: (1) the political policies of the rulers of early modern Europe.

(2) the contrasting social values of the Protestants and Catholics which came out of the Reformation.

(3) the contrasting levels of economic progress between America and Europe.

(4) the abolition of a feudal peasantry in Britain before any other continental nation.

(5) all of the above Who believed that Protestantism did not cause capitalism, but that capitalism led to Protestantism?

(1) R. H. Tawney (2) Werner Sombart (3) Max Weber (4) David McClelland (5) Adam Smith The first historical mention of accounting and dealing with the handling of receipts can be found in the writings of: (1) Hammurabi (2) Confucius (3) Kautilya (4) Sun Tzu (5) Moses According to Max Weber, the idea(s) that had a significant impact on the motivations of people included: (1) waste of time was the deadliest of sins (2) a willingness to work (3) division and specialization of labor was Divine Will (4) the consumption beyond basic needs was wasteful and sinful (5) all of the above

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Test Bank Chapter 2 2-24

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Managerial practices that could be found among many ancient peoples include: (1) leadership (2) delegation (3) controlling (4) all of the above (5) only (2) and (3) above Aristotle had numerous insights into management. Among them were: (1) the specialization of labor (2) departmentalization (3) synergy (4) leadership (5) all of the above The Greek who described the advantages of the division of labor was: (1) Aristotle (2) Xavier (3) Socrates (4) Xenophon (5) Plato A Greek philosopher who proposed a system of ethics was: (1) Xenophon (2) Aristotle (3) Socrates (4) Plato (5) Aesop McClelland supported Max Weber's conclusions about the spirit of capitalism for the following reason(s): (1) the Protestant reformation emphasized self-reliance rather than reliance on others in all facets of life.

(2) Protestant parents changed child-rearing practices to teach selfreliance and independence.

(3) it has been empirically demonstrated by McClelland and his associates that child-rearing practices lead to a higher need for achievement in sons.

(4) a higher need for achievement leads to spurts of economic activity such as that which Weber characterized as the spirit of capitalism.

(5) all of the above The cultural rebirth was described in terms of: (1) the Protestant ethic (2) the Liberty ethic (3) the Market ethic (4) all of the above (5) only (1) and (2) above

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Test Bank Chapter 2 2-30

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The domestic system of production can be described best as: (1) labor intensive (2) efficient in its distribution of products (3) capital intensive (4) only (1) and (2) above (5) only (2) and (3) above Adam Smith had doubts about the behavior of “joint stock” ventures and those who managed “other people’s money.” Discuss this in terms of contemporary management practices.

The directors of such [joint-stock] companies, however, being the managers rather of other people’s money than of their own, it cannot well be expected, that they should watch over it with the same anxious vigilance with which the partners in a private copartnery frequently watch over their own. . . . Negligence and profusion . . . . must always prevail, more or less, in the management of the affairs of such a company.

Machiavelli described three ways to “the top.” Describe each and its advantages and disadvantages.

1. Fortune. Those who rose through their good fortune had little trouble in reaching the top but had difficulty maintaining their position because they depended on the goodwill of others and were indebted entirely to those who elevated them.

2. Ability. Those who reached the top through ability encountered many difficulties but maintained their position more easily.

3. Villainy. Those who employed villainy used methods that would gain power, but not glory; their crown would always rest uneasily as they awaited the next usurper or palace revolt.

Max Weber argued there was a difference between one’s “greed for gain” and “rational capitalism.” Agree? Disagree?

Student answers will vary. According to Weber:

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The impulse to acquisition, pursuit of gain, of money, of the greatest possible amount of money, has in itself nothing to do with capitalism.

This impulse [to acquisition] has been common to all sorts and conditions of men at all times and in all countries of the earth, wherever the objective possibility of it is or has been given. It should be taught in the kindergarten of cultural history that this naïve idea of capitalism must be given up once and for all. Unlimited greed for gain is not in the least identical with capitalism, and is still less its spirit. Capitalism may even be identical with the restraint, or at least a rational tempering, of this irrational impulse. But capitalism is identical with the pursuit of profit, and forever renewed profit, by means of continuous, rational, capitalistic enterprise. For it must be so: in a wholly capitalistic order of society, an individual capitalistic enterprise which did not take advantage of its opportunities for profit-making would be doomed to extinction.

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Test Bank Chapter #3 3-1 3-2 3-3 3-4

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The industrial revolution began first in the United States of America and False then moved to England.

The craft workers, (for example, wool combers) found factory work very False attractive since it resembled their guild workshops.

Early factory managers thought that managerial skills could be False transferred easily from one industry to another.

In a comparative study, James Montgomery found that Britain had False higher costs of production, paid higher wages, had lower materials costs, and had a lack of qualified managers. The United States, on the other hand, had lower costs, paid lower wages, paid more for raw materials, and had many capable managers.

"Saint Monday" referred to workers not appearing for work on Mondays True or working very slowly at the beginning of the week.

The critics of the factory system were influenced by the moral ideals True known as "Victorian."

James Montgomery of Glasgow (Scotland) prepared what were most True probably the first "management" texts.

Thomas Malthus's "population argument" stated that population True increases in geometric proportion while the food supply at best increases only arithmetically. Thus, wages would rarely rise above the subsistence level.

Great Britain was unconcerned regarding child-labor practices.

False The Industrial Revolution did not create poverty; it inherited it.

True Child and female labor were created by the Industrial Revolution.

False The heart of the Industrial Revolution was the substitution of machine True power for human and other natural sources of power.

Training during the Industrial Revolution was conducted largely in False vocational-technical schools that were financed by the government.

Adam Smith held that monetary incentives brought out the best in people True and that they would work harder to get more.

The goal of the new "factory ethos" was to use religious morals and True values to create the proper attitudes toward work.

The mercantilist economists believed that worker income and the amount True of labor offered were negatively related--that is, as wages rose, workers would be less willing to work.

Preindustrial societies are characterized by: (4) (1) low per capita income (2) economic stagnation (3) dependence on agriculture (4) all of the above (5) only (1) and (2) above

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Test Bank Chapter #3 3-18

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The labor problems during the Industrial Revolution included: (5) (1) unions of both craft and industrial workers (2) training (3) discipline (4) all of the above (5) only (2) and (3) above The heart of the industrial revolution was really the: (2) (1) printing press (2) steam engine (3) workers' acceptance of the factory ethos (4) idea of division of labor (5) development of management thought Regarding worker income and the abundance of labor, Adam Smith: (5) (1) found them positively related (that is, higher wages led to a greater willingness to work).

(2) found no relationship between income and willingness to work.

(3) felt that higher wages encouraged workers to be more active, diligent, and expeditious.

(4) only (1) and (2) above (5) only (1) and (3) above Which of the following was not a management problem during the (4) Industrial Revolution?

(1) finding good managers (2) finding adequate labor (3) performing the management functions (4) preventing workers from joining unions (5) developing skilled workers Perfection of the steam engine was due to the work of: (3) (1) Hero of Alexandria (2) Thomas Newcomen (3) James Watt (4) Matthew Boulton (5) Daniel McCallum The factory system led to: (4) (1) a general rise in the standard of living (2) rising real wages (3) decreasing infant mortality (4) all of the above (5) only (1) and (3) above The emergence of steam power in the Industrial Revolution enabled: (4) (1) lower production costs (2) lower prices (3) expanded markets (4) all of the above (5) only (1) and (2) above

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Test Bank Chapter #3 3-25

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The first "management" texts were prepared by: (1) James Montgomery (2) James Watt (3) Charles Babbage (4) Andrew Ure (5) Charles Dupin Which of the following is not a method of discipline or motivation discussed in Chapter 3?

(1) positive inducements (2) negative inducements (3) job enrichment (4) the factory ethos (5) wage incentive plans Based on the evidence that James Montgomery gathered in comparing the early British and American factories, one would conclude that: (1) American labor was unskilled and lower paid than in Britain (2) British management was better than American management (3) Britain paid less for raw materials because of its numerous colonies (4) American females earned the same wages as American male workers (5) The British domestic system was very profitable J. B. Say added a fourth factor of production, management. What were the other factors? Why was Say's idea important?

The other three factors were land, labor, and capital. Say considered managers/management an indispensable fourth factor of production.

What were the differences between the mercantilists and Adam Smith regarding motivation?

The mercantilist school believed that income (i.e., wages) and the supply of labor were negatively related; that is, as wages rose, workers would leave to spend their money, returning only after it had been spent and more was needed.

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With an appeal to moderation, Smith disagreed with the tradition that wages must be kept at a subsistence level and that the best workers were the hungriest. Rather, he held that high wages brought out the best in people and that they would work harder to earn more. This break with mercantilist theory offered the opportunity for individual rewards based on initiative.

Why did Adam Smith ask employers to “moderate” their use of piecework incentive payment plans? Do you agree with his reasoning?

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Test Bank Chapter #3 According to Smith, “Some workmen, indeed when they can earn in four days what will maintain them through the week, will be idle the other three. This, however, is by no means the case with the greater part.

Workmen, on the contrary, when they are liberally paid by the piece, are very apt to overwork themselves, and to ruin their health and constitution in a few years. . . . If masters [employers] would always listen to the dictates of reason and humanity, they have frequently occasion rather to moderate, than to animate the application of many of their workmen.”

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Test Bank Chapter # 4-1

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The "silent monitor" was a forerunner of modern management's public posting of sales and production data to instill departmental pride or to encourage competition.

Charles Babbage advocated an early profit-sharing scheme.

Andrew Ure developed a particularly unique device, the "silent monitor," to aid discipline.

Robert Owen was concerned with human problems of the factory, but his primary concern was the analysis of production techniques. Charles Babbage, on the other hand, was more concerned with the impact of industrialization on people.

Robert Owen was against capitalism but favored the church because it promoted the Protestant work ethic.

Charles Dupin believed that technological advancement eliminated jobs.

Augusta Ada warned people against becoming dependent on the computer because it could never originate anything and operated only as it was instructed.

Charles Babbage pleaded with the workers to recognize that a properly designed factory was to their benefit.

Charles Babbage felt that the prosperity and success of a firm depended on its market share rather than the welfare of its workers.

Andrew Ure agreed with Charles Dickens that the factory system was too harsh in disciplining the employees.

Compared with the general population, Andrew Ure provided evidence that factory workers were better off in their health, diet, and with a lower occurrence of disease.

According to Robert Owen, the "vital machines" in his firm were those pieces of equipment that were necessary to the smooth flow of work in the factory layout.

Robert Owen claimed it was more profitable to show a concern for your employees and this also served to relieve the accumulation of human misery.

According to Charles Dupin, industrial training and education would allow agrarian and unskilled workers to share in the prosperity of industrialization. _____ was the computer programmer for Charles Babbage: (1) Augusta Ada (2) Herman Hollerith (3) Joseph-Marie Jacquard (4) Andrew Ure (5) none of the above In his study of manufacturing, Charles Babbage was interested in: (1) the expense of each process (2) the firm's return on investment (3) the economic use of raw materials (4) all of the above (4) only (1) and (3) above

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Test Bank Chapter # 4-17

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_____ learned from Andrew Ure and took those ideas on industrial education to France.

(1) Henri Fayol (2) M. Curie (3) Charles Dupin (4) Jean Baptiste Say (5) none of the above Which of the following does not apply to Robert Owen?

(1) successful cotton mill operator (2) had silent monitor (3) believed in the division of labor (4) founded New Harmony (5) employed child labor Babbage felt that profit-sharing was good because: (1) each worker would have a direct interest in the firm's prosperity (2) each worker would be stimulated to prevent waste and mismanagement (3) the worker received immediate feedback about performance results (4) all of the above (5) only (1) and (2) above The first teacher of "management" was most probably: (1) Charles Babbage (2) N. Machiavelli (3) James Watt (4) Robert Owen (5) none of the above Andrew Ure advocated three principles of action or three organic systems; which of the following is not one of the three?

(1) social (2) mechanical (3) commercial (4) moral Which of the following is not connected with Charles Babbage?

(1) the Countess of Lovelace (2) first computer (3) bonus for good suggestions (4) teaching management (5) the analytical engine Which of the following would be known as an early teacher and a strong defender of the factory system?

(1) Charles Babbage (2) Andrew Ure (3) James Montgomery (4) Samuel Arkwright (5) James Watt

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Test Bank Chapter # 4-24

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It is possible that both Jean Baptiste Say and Andrew Ure influenced _____ view of management as being a separate study which could be taught.

(1) Charles Babbage's (2) Charles Dupin's (3) Max Weber's (4) Adam Smith's (5) Robert Owen's At New Lanark, Robert Owen sought more labor-intensive practices to employ more workers and support the growing population. Evaluate his views in terms of what was known then (early 1800s) and what occurred by the end of the twentieth century.

In 1797, Owen became part owner and sole manager of New Lanark Mills, located in New Lanark, Scotland. At New Lanark, he encountered a labor shortage and noted, “[I]t was then most difficult to induce any sober, well-doing family to leave their home to go into cotton mills as then conducted.”4 This difficulty influenced Owen’s labor policies, and he began envisioning a new society. Between 400 and 500 parish apprentices—paupers or deserted children, supplied by the Poor Law Authorities to whomever would take them—were employed at New Lanark. The children worked 13 hours per day, 6 days a week. Owen continued to employ children but tried to improve their living and working conditions by cutting their workday to 10 3/4 hours, setting 10 years as the minimum age for employment, providing meals and rest breaks, and stressing mill safety. In addition, he sought to reshape the whole village of New Lanark, including its streets, houses, sanitation practices, and school.

(2)

At the end of the twentieth century, child labor was mostly outlawed or strictly regulated, and overtime was required for more than eight hours a day or 40 hours a week. (Some states have stricter regulations.)

Additionally, it is unlikely that most employers would try to reshape an entire village/city/town.

Why did Frederick Taylor get credit for systematic/scientific management and not Charles Babbage?

1. Early writings emphasized specific techniques and not managing per se.

2. The figures of the technical genius, the inventor-pioneer, and the founder-entrepreneur dominated the era.

3. The limits of disseminating knowledge.

Although scholars read the books of other scholars, it is unlikely that Babbage, Dupin, and Ure were widely read by practicing managers of the day. The lessons taught by Ure and Dupin reached managers in only a comparatively small number of factories.

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Test Bank Chapter # 4-27

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What was the basis of Andrew Ure's belief that the factory system provided benefits to employees and to society? (Clue: review his survey of England’s cotton mills in 1833.)

Ure based many of his conclusions on data from the same 1833 survey of Lancashire, Cheshire, and Derbyshire County factories. Focusing on responses collected from 151 cotton mills, Ure countered that the average mill worker labored for 69 hours per week. Of 48,645 “Hands,” he calculated that approximately half were female, and 41.29 percent were under the age of 18, with 47.5 percent of this latter group between ages 14 and 18.

Compare and contrast Robert Owen’s views of industrial progress with the ideas of Andrew Ure and Charles Dupin.

Industrial progress, Owen felt, was inadequate to support the growing population. In 1821, he prepared a report for the citizens of Lanark Parish stating his belief that “manual labor, properly directed, is the source of all wealth and of national prosperity.”5 In Owen’s view, the dominant economic and social challenge was to develop agriculture, using intensive methods of cultivation, to feed more people.

In Ure’s judgment, the essential principle in manufacturing was “to substitute mechanical science for hand skill . . . [and to provide] for division or the graduation of labour among artisans.”

According to Dupin, “It is to the director of workshops and factories that it is suitable to make, by means of geometry and applied mechanics, a special study [étude spéciale] of all the ways to economize the efforts of workers…”

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Test Bank Chapter #5 5-1 5-2 5-3 5-4 5-5 5-6

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The "Rhode Island System" of Samuel Slater remained the dominant method of textile manufacturing until the coming of the railroads.

Charles Dickens praised the Lowell and Waltham factories (that is, the "Waltham System”) for their treatment of labor.

The telegraph in the nineteenth century has been called the “Victorian internet.”

In the case of Commonwealth vs. Hunt, the U.S. courts agreed with British common law that unions were conspiracies in restraint of trade.

The textile mills were truly America's first "big business."

To attract workers, the Waltham system was patterned after English practice of hiring the whole family, if possible, therefore resulting in more child labor.

The American System of Manufacturing was based on using interchangeable parts for ease of assembly.

McCallum developed information management to probably the highest state of the art for the times by using the telegraph to make operations safer as well as to facilitate administration.

During McCallum's time, organizational growth, geographical separation of activities, and the separation of ownership and management were the driving forces for systematizing railroad management.

When compared with British factories of the early 19th century, U.S. factories paid lower wages and used more child labor.

During the early 19th century, the Springfield (Massachusetts) Armory provided a good example of: (1) an increasing division of labor (2) accounting techniques for wage payments and control of time and material costs (3) tightened employee discipline (4) all of the above (5) only (1) and (2) above _____ had a large influence on those who wrote the U.S. Constitution, particularly in the role of government in economic matters: (1) Samuel Slater (2) Adam Smith (3) Alfred Marshall (4) Thomas Hobbes (5) none of the above The McLane Report (1832) found that American industrial development could be best described at that time by: (1) the wide use of the corporate organization (2) relatively little use of steam power (3) small organizations which were organized around entrepreneurs and/or partnerships (4) (1) and (2) above (5) (2) and (3) above

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Test Bank Chapter #5 5-14

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Advances in making the parts of a product interchangeable resulted in possibilities of mass production. Mass production required mass markets which were made possible by advances in: (1) transportation (2) agriculture (3) communication (4) both (1) and (2) above (5) both (1) and (3) above The "American System" of manufactures as exhibited in Great Britain in 1851 referred to: (1) Slater's Rhode Island system of personnel policies (2) manufacture by interchangeable parts (3) McCallum's system of management (4) Montgomery's study of textile spinning techniques (5) none of the above The editor of the American Railroad Journal who formalized the principles of organization, communication, and information was: (1) Samuel Slater (2) Daniel McCallum (3) Henry Poor (4) Alfred Chandler (5) Albert Fink Systematic management for American railroads was the creation of: (1) Alfred Chandler (2) Albert Fink (3) Henry Poor (4) David McClelland (5) Daniel McCallum Daniel McCallum's principles of management included: (1) a division of responsibilities (2) promptness in reporting of derelictions of duty (3) following state and federal regulations (4) all of the above (5) only (1) and (2) above Henry V. Poor's fundamental principles of management included: (1) organization (2) communication (3) information (4) all of the above (5) only (2) and (3) above

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Test Bank Chapter #5 5-20

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Daniel McCallum developed a high degree of organizational specificity to carry out his principles. He did this through: (1) separating and identifying each grade of worker (2) developing comprehensive rules to limit the ability of individuals to do their tasks as they pleased (3) developing a formal organizational chart (4) all of the above (5) only (1) and (3) above _____ developed a formal organizational chart in the form of a tree and depicted the lines of authority and responsibility, the division of labor, and the communication lines for reporting and control.

(1) Daniel McCallum (2) Henry Poor (3) Andrew Carnegie (4) Robert Owen (5) General Robert E. Lee Study the example of George Hudson and compare his actions with more recent practices of some executives in the United States.

Hudson took advantage of these speculative impulses. By 1849, nearly one-third of Britain’s 5,007 miles of rail lines were under his management or control. In addition, he had raised money to buy land, build docks, and form canal companies. Hudson was, as all Britain knew, the “King of Railways.” His operations extended from Brighton and Southampton in the southeast to Edinburgh in the northeast.

Unfortunately, Hudson’s machinations offer one of the earliest examples of top-management malfeasance. He wittingly paid dividends out of capital rather than earnings, inflated railway-traffic counts and revenue, and published false financial statements. He was found to have misappropriated a half-million pounds sterling in railway funds for his own personal use.

(4)

(1)

The executive each student selects to compare with Hudson will vary, as will their behavior.

George Hudson’s practices fulfilled Adam Smith’s fears—why? What did Henry Poor propose as a solution?

Adam Smith felt there was a danger in joint-stock, limited-liability companies, where ownership and management were typically separated.

This was demonstrated by Hudson.

According to Poor, “the only way to introduce honesty into the management of railroads, is to expose every thing in or about it, to the public gaze. Concealment in either case is certain to breed disease.

Instances are very rare in which integrity is preserved unless strict accountability is exacted. Such accountability to the public should be exacted from directors of railroads…”

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Test Bank Chapter #5 5-24

5-25

Discuss the impact of the telegraph on travel, trade, and information practices. Would you agree that, for its time, the telegraph rivaled the internet in its impact on the economy and how people lived?

The electric telegraph provided the beginnings of a worldwide communication system. Its impact on long-distance and international communication was dramatic—where it might have taken days, weeks, or months for messages to be sent and received by mail, the telegraph brought instantaneous communication around the world.36 News items could be sent by the telegraph, enabling daily newspapers to keep their readers informed of global events; stock prices could be sent across the nation to investors from trade exchanges via ticker tape; money could be transferred by wire; and a cable under the Atlantic Ocean connected the United States to Great Britain and the European continent starting in 1858.

Describe Daniel McCallum's ideas on management. Why would the train engineers resist some of his rules?

To McCallum, sound management was based on good discipline, specific and detailed job descriptions, frequent and accurate performance reports, pay and promotion based on merit, a clearly defined hierarchy of authority, and personal responsibility and accountability.

The Erie’s enginemen had never forgiven McCallum for “infamous Rule 6”; 29 engineers had been dismissed for breaking the rule and for violating various other safety standards. A 6-month strike ensued.

(Rule 6 was “Run Safe First, Fast Afterwards,” enjoined engineers to “take all the time necessary to run safe . . . acting under the assumption that every switch was out of place, and a train standing on the main line.”

5-26

Enginemen were told they would be accountable for “running off a switch,” even if a switchman were at fault. It is not hard to imagine that they would object to being held accountable for something they did not do.

Describe the beginning of interchangeable parts in the United States.

In the United States, the use of interchangeable parts began with Connecticut clockmakers when, in 1809, Eli Terry began to produce “fully interchangeable wooden-movement clocks.” It was, however, in manufacturing firearms, one of the era’s most sophisticated products, that interchangeability was most notably achieved.

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Test Bank Chapter #6 6-1

6-2

6-3

6-4

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6-6

6-7 6-8

6-9

6-10

6-11

According to your authors, Carnegie's found a way to combine management and technology to create more jobs, reduce prices, expand markets, and advance industrial development.

Henry R. Towne proposed that the American Society of Mechanical Engineers (ASME) create an economic section to act as a clearinghouse and forum for shop management.

The notions of limited charter powers and of management as trustee of the stockholders' property combined to form the nineteenth century legal basis regarding corporate philanthropy.

Immigration provided a growing work force during America's 19th century and this increased supply of labor resulted in lower wages and declining real wages for the American worker.

The American Federation of Labor was organized in 1886 as a federation of craft unions that concentrated on the pursuit of immediate economic gains for the workers on the job rather than on distant political reforms.

Andrew Carnegie's monopolistic pricing power in the steel industry enabled him to increase the price of his products, for example, iron rails, during his period of ownership.

Between 1860 and 1890, industrial unions in the U.S.A. were successful in starting because of low wages and declining real wages.

Followers of the Social Gospel would be in favor of: (1) temperance in the use of alcohol (2) the prohibition of trade unions (3) profit sharing (4) all of the above (5) only (1) and (3) above Alfred D. Chandler's phases in the history of the large American enterprise included: (1) the initial expansion and accumulation of resources (2) the rationalization of the use of resources (3) the need for a managerial hierarchy (4) all of the above (5) only (2) and (3) above Andrew Carnegie's success in the steel industry was due to (1) his ability to integrate and speed up the "throughput."

(2) his use of McCallum's management methods.

(3) his cost accounting techniques.

(4) all of the above (5) only (1) and (2) above Vertical integration, moving forward or backward in the inputthroughput-output stream, would be an example of: (1) Chandler's Phase 1, resource accumulation (2) Carnegie's strategy in the steel industry (3) McCallum's method of organization (5) both (1) and (2) above (5) both (2) and (3) above

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True

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Test Bank Chapter #6 6-12

6-13

6-14

6-15

6-16

6-17

Labor violence in American industry in the late 19th century: (1) led to the formation of successful industrial unions (2) demonstrated that McCallum's principles were unsound (3) was directly related to falling wages and declining real wages (4) all of the above (5) none of the above The principles that formed the nineteenth century legal basis regarding corporate philanthropy included: (1) the notion of limited corporate charter powers (2) the notion of management as trustee of the stockholders' property (3) the notion of deductions from corporate gross income to reduce federal taxes (4) only (1) and (2) above (5) only (2) and (3) above One successful union organized in 1886 as a federation of craft unions was: (1) the AFL (2) the CIO (3) the Cordwainers (4) the teamsters (5) none of the above Inventors and innovators were referred to as “prime movers.” Compare and contrast this period in American history with developments in other countries. What were the primary differences?

The remarkable spirit of inventive and innovative impulses that shaped the era’s technological advances was due to innumerable “prime movers,” individuals (such as Montgomery Ward) whose ideas created new wealth. As Edwin A. Locke expressed it, “for wealth to be created, individuals must create it . . . prime movers . . . moved society forward by the force of their own creative imagination, their own energy, and their own productive capacity.”

Henry Towne wanted engineers to think in "economic" terms. Why engineers? Why not accountants, or lawyers, or financiers, etc.? What did economists contribute?

Because no group seemed to be concerned with “the management of works,” Towne proposed that the ASME create an Economic Section to act as a clearinghouse and forum for shop management and shop accounting. Shop management would deal with the subjects of organization, responsibility, reports, and all that pertained to the “executive management of works, mills, and factories.” Shop accounting would address the questions of time and wage systems, determination and allocation of costs, methods of bookkeeping, and all that pertained to manufacturing accounts.

What views did American business hold toward its obligations to society? What legal limits shaped those views?

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Test Bank Chapter #6 As one observer noted, in general, business operators of the late nineteenth and early twentieth centuries were pragmatic doers who did not read Darwin (or Adam Smith’s musings on marketplace forces and competition) and cared little for abstract social and economic theories.

The owners did, however, make many personal donations to various causes.

6-18

6-19

In 1872, the Massachusetts Supreme Court ruled that a festival underwritten by Old Colony Railroad was ultra vires (i.e., outside the railroad’s chartered powers). In the 1953 A. P. Smith Manufacturing v.

Barlow et al case, the New Jersey Chancery Court held that the directors had acted within their rights to further corporate (and not personal) ends when they made a donation to Princeton University.

Describe developments in the early American labor movement in terms of wages, real wages, union membership, and so forth.

Total union membership grew from 300,000 members in 1870 to 791,000 in 1900; however, only 2.3 percent of the total U.S labor force was organized in 1870, and this percentage declined in the 1880s and 1890s, but recovered and rose to 2.7 percent by 1900. Under Samuel Gompers’s presidency, AFL membership increased from over 600,000 in 1887 to some 2,865,000 at the time of Gompers’s death in 1924.

Daily wages and annual earnings in manufacturing increased some 50 percent between 1860 and 1890, and real wages (the purchasing power of workers’ incomes) increased more than 60 percent from 1860 to 1890.

Wage earners benefited from the growth of U.S. industry in terms of both employment and real income.

Identify the role of the "Social Gospel" in influencing managerial thought.

Social Gospel advocates held that, above all, society must be Christianized and the Golden Rule applied by both labor and management. They felt a duty to reform social and economic conditions, both inside and outside of the workplace. Rather than wait for a gradual improvement in the quality of life found in poorer neighborhoods, they argued for immediate action in remaking personnel administration (or, as we know it today, “human-resource management”) and industrialrelations policies. They advocated for profit sharing, the right to organize unions, impartial workplace arbitration, and the freedom to establish worker cooperatives, as well as for legislation governing the hiring and firing practices, the employment of women and children, and workplace sanitation.

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Test Bank Chapter #7 7-1 7-2 7-3 7-4 7-5

7-6

7-7 7-8

7-9 7-10 7-11 7-12 7-13

7-14 7-15 7-16

7-17

7-18 7-19 7-20

The “lump of labor” theory said there was a limited amount of work in the True world and that to do more today meant less to be done tomorrow.

Taylor thought that he could overcome soldiering by a careful True investigation of work that would then be used in setting standards.

Frederick Taylor was unaware of the informal actions of workers.

False Natural soldiering, according to Taylor, proceeded from the “instinct and True tendency of men to take it easy.”

Systematic soldiering, according to Taylor, came from workers' “more True intricate second thought and reasoning caused by their relations with other men.”

Taylor's “natural soldiering” came from a “lump of labor” theory that said False if workers worked too fast they would run out of work both for themselves and for other workers.

Taylor saw industrial inefficiency as the fault of workers rather than False management.

Scientific management involved the use of scientific fact-finding methods True to determine empirically instead of traditionally the right ways to perform tasks.

According to Taylor, a daily or hourly wage system encouraged soldiering True because pay was based on attendance and position, not effort.

Taylor thought that “high wages and low costs” were impossible.

False Taylor developed a unique form of supervision called “functional True foremen.”

The functional foremanship idea was successful because it made False coordination easier.

The only person who did not come under “first-class,” as Taylor defined True it, was the person who was physically and mentally able to work but would not work.

Time study was used by Taylor to establish standards of performance.

True The notion of a “first-class man” indicated that Taylor was aware of the True need to match people's abilities to a job’s requirements.

After the Eastern Rate case, the Federal Government recognized False immediately the benefits of Scientific Management and encouraged its use.

Taylor believed that the principal objective of management should be to True secure the maximum prosperity for employers, coupled with the maximum prosperity for employees.

The “mental revolution” was Taylor's philosophy that management must False exploit labor to be profitable.

The “mental revolution” between labor and management was to be the True recognition of mutual self-interest.

Taylor's major fault was his failure to include the human element as part of False a management situation.

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Test Bank Chapter #7 7-21

7-22

7-23

7-24

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7-26

According to Taylor, why do workers “soldier”?

(1) it is human nature to take the easy way (2) to work any faster would raise unemployment (3) adherence to rule-of-thumb work methods (4) because of poor management practices (5) all of the above Systematic soldiering: (1) is the normal instinct and tendency of workers to take easy.

(2) arises out of a lump of labor theory.

(3) can be overcome by a manager able to inspire or force workers to come up to the mark.

(4) occurs very seldom in any work environment.

(5) all of the above Taylor's idea of a mental revolution can best be described as (1) the acceptance by union of scientific management (2) management's efficient use of “men and materials” (3) using uniform work methods (4) a mutuality of interests between labor and management (5) none of the above Taylor saw unions as: (1) receptive to new ideas (2) warts on the face of humankind (3) interfering with stimulating each person to do his/her best (4) essential to free enterprise (5) none of the above Taylor’s proposition for general managers to leave the small details to specialists and thus avoid the details of shop management was called the: (1) functional principle (2) principle of analysis and synthesis (3) exception principle (4) principle of mutual interests (5) none of the above The idea of “economic man,” that is, people would produce more if they were rewarded for doing so, was the belief of: (1) Adam Smith (2) Robert Owen (3) Frederick Taylor (4) only (1) and (2) above (5) only (1) and (3) above

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Test Bank Chapter #7 7-27

7-28

7-29

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7-31

7-32

When asked to teach his system at Harvard University, Taylor was reluctant because: (1 )he felt he did not have the teaching abilities that were needed to teach his system (2) he was antibusiness when it involved education (3) he felt one could learn his system only through practice (4) he wanted to continue his own research (5) all of the above Which of the following was not a part of Taylor's Scientific Management philosophy?

(1) functional foremen (2) piece-rate incentives (3) first-class man (4) time study (5) the management process Taylor felt profit sharing was not an adequate motivator because: (1) of the remoteness of rewards (2) management always cut the share down when workers earned too much (3) it took a portion of the profits which a business would need for capital investment (4) workers would earn so much they no longer would need to work (5) none of the above Time study, the careful study of the time in which work ought to be done, was first developed by: (1) Charles Babbage (2) American Society of Mechanical Engineers (3) Henry L. Gantt (4) Harrington Emerson (5) F. W. Taylor In describing functional foremen, Taylor described one of the duties of the “_____” as selecting and discharging employees.

(1) shop disciplinarian (2) gang boss (3) welfare secretary (4) social secretary (5) none of the above The notion of a_____ indicated that Taylor was aware of the need to match people's abilities to the requirements of the job.

(1) “individual betterment plan” (2) “first-class man” (3) union management cooperation plan (4) differential wage plan (5) none of the above

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Test Bank Chapter #7 7-33

7-34

7-35

7-36

7-37

7-38

Taylor most probably said, (2) (1) “management skills are inherited” (2) “you must learn management by experience” (3) “management can be taught on the university level” (4) “management should be taught in vocational schools” (5) none of the above Taylor's scientific management emphasized: (3) (1) profit-sharing to increase wages (2) unions as a protective device for laborers (3) a mental revolution between labor and management (4) capital investment as a means of increasing production (5) forming cohesive groups of workers Explain the importance of performance standards. In what areas of performance should standards be set (e.g. quality of work)?

Taylor thought he could overcome soldiering by determining how each job could be done most efficiently and then establishing performance standards. He believed once workers saw that performance standards had been set “scientifically,” rather than on guesswork and tradition, there could be no appeal and their motivation to soldier would be eliminated.

He believed that proper performance standards had to be determined before establishing a fair piece-rate. Under Taylor’s plan, a special department analyzed each job and then set a performance standard and pay scale instead of relying on guesswork and tradition. Taylor’s notion of “paying men rather than positions” partially addressed soldiering but was primarily intended to reward individual initiative.

Identify the significant elements of the task management system (later to be called scientific management)?

For Taylor, no single element constituted scientific management. Rather it was a combination f elements, which could be summarized as follows: 1. Science, not rule of thumb. Harmony, not discord.

2. Cooperation, not individualism.

3. Maximum output, in place of restricted output.

4. The development of each man to his greatest efficiency and prosperity.

What was Taylor's idea of a “mental revolution”? Do you feel that any U.S.A. firms have achieved this? Any non-U.S.A. firms?

Taylor saw a “mental revolution” where “both sides take their eyes off the division of surplus . . . and together turn their attention toward increasing the size of the surplus.”

Students’ opinions regarding firms that have accomplished this will vary.

Likely candidates are employee-owned firms.

Review Taylor's ideas on “soldiering.” Does this practice exist today?

What would you, as a supervisor, do to eliminate soldiering?

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Test Bank Chapter #7 Taylor saw soldiering as “making a pretense at work” without actually working. Taylor distinguished between two types of soldiering. “Natural soldiering” proceeded from “the natural instinct and tendency of men to take it easy”; “systematic soldiering” came from the workers’ “more intricate second thought and reasoning caused by their relations with other men.”

7-39

Students who work have no doubt encountered workers who soldier. Their suggestions for eliminating it will vary widely. Look for them to incorporate concepts from the chapter in their suggestions.

Taylor seemed to have difficulty in getting others to understand his concept of “the first-class man.” Can you describe the idea better?

Taylor described the opposite of a first-class man as “I believe the only man who does not come under “first class” as I have defined it, is the man who can work and won’t work. I have tried to make it clear that for each type of workman some job can be found at which he is “first class,” with the exception of those men who are perfectly well able to do the job but won’t do it.”

Students will have a wide variety of alternative of definitions.

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Test Bank Chapter #8 8-1 8-2 8-3 8-4 8-5 8-6 8-7 8-8

8-9 8-10 8-11 8-12

8-13

8-14

Carl Barth, using scientific management, improved productivity in an automobile company before assembly line methods were introduced.

The development of standard cost accounting is attributed to Henry L. Gantt.

Gantt made it in the financial interest of first-line supervisors to teach workers the right way to do their jobs.

Although interesting, Gantt's graphic aids to management planning and controlling were had little impact on the practice of management.

The essence of the Gantt chart concept was to use time to show how work was planned and controlled through various operations to its completion.

The Gantt Chart is a graphic layout of the amount of time it should take for an operation vs. the actual time.

Henry L. Gantt's contribution to scientific management was his extensive research on fatigue and industrial psychology.

One characteristic of Frank Gilbreth's lifelong efforts was that he asked workers to help improve methods and achieve motion economy for their own sake as well as for management's.

Lillian Gilbreth saw the possibilities for applying Scientific Management in the home as well as the factory.

Lillian Gilbreth brought a human element into scientific management through her training, insight, and understanding.

To Harrison Emerson, one of the reasons for industrial inefficiency was the lack of organization.

The pioneer who assisted in installing scientific management in the infant automobile industry was: (1) Carl Barth (2) H. L. Gantt (3) Frank Gilbreth (4) Lillian Gilbreth (5) H. Emerson The essence of the _____ was to show how work was routed and scheduled through various operations to its completion.

(1) Gantt chart concept (2) Lillian Gilbreth home planning technique (3) DuPont control schedule (4) Frank Gilbreth brick-laying method (5) only (2) and (3) above “The Psychology of Management,” by _____, stands in the literature as one of the earliest contributions to understanding scientific management and employee relations.

(1) H. L. Gantt (2) Frank Gilbreth (3) Wilhelm Wundt (4) Lillian Gilbreth (5) Whiting Williams

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True False True False True True False True

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Test Bank Chapter #8 8-15

8-16

8-17

8-18

8-19

8-20

8-21

The Gilbreths devised “_____” as a technique for following flow of work as it moved throughout a workshop.

(1) PERT (2) Gantt charts (3) process charts (4) micromotion study (5) therbligs Harrington Emerson adapted the _____ to be applied as line-staff in industry.

(1) general staff concept (2) French legionnaire’s staff concept (3) Santa Fe standards concept (4) overlapping staff concept (5) none of the above Taylor called his approach “time study” and Gilbreth called his “_____”.

(1) motion study (2) therblig study (3) cyclegraphic study (4) chronocyclegraph study (5) none of the above The idea of using “standard cost accounting” rather than historical costs was the work of the scientific management pioneer: (1) Frederick W. Taylor (2) Henry L. Gantt (3) Frank Gilbreth (4) Harrington Emerson (5) Morris L. Cooke Harrington Emerson would be associated with all of the following statements except one. Which one?

(1) principles of efficiency (2) “ideals” as objectives for the organization (3) efficiency engineering (4) adapting the general staff concept to be used in industry (5) the return-on-investment concept _____ advocated improved efficiency through line-staff organization: (1) Lillian Gilbreth (2) Morris Cooke (3) Harrington Emerson (4) Frederick W. Taylor (5) none of the above Which of the following person(s) extended the gospel of efficiency to educational and municipal organizations?

(1) Morris Cooke (2) Frederick Taylor (3) Frank Gilbreth (4) (1) and (3) only

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Test Bank Chapter #8 8-22

8-23

8-24

(5) all of the above _____ worked to gain organized labor's acceptance of scientific (3) management after Taylor's death.

(1) Frank Gilbreth (2) Lillian Gilbreth (3) Morris Cooke (4) Robert Hoxie (5) Robert Valentine Would Gantt's charts have been as effective if Taylor had not pioneered the use of time study to establish performance standards?

Gantt’s focus was to increase productivity by using effective measurement and planning. His starting point was the work measurement pioneered by Frederic Taylor. According to Taylor, the best way to understand a complex task is to break it down into its various component parts. You can then student each component individually to come up with the best way to perform that component and to know how long that component should take. That then is the basis for the charts created by Gantt so they would have been much less effective without time study and Taylor.

Apply the same reasoning you used regarding the Gantt chart to Emerson's standard cost accounting.

Emerson devised an incentive plan that paid employees a 20 percent bonus for 100 percent efficiency; above 100 percent efficiency, employees received their standard wages for time saved plus a 20 percent bonus for the time worked. These bonuses would not have been possible (or at least accurate) without the foundation of scientific management.

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Test Bank Chapter #9 9-1 9-2

9-3 9-4 9-5 9-6 9-7

9-8 9-9 9-10 9-11 9-12

9-13 9-14

9-15

Females were influential in the welfare/industrial betterment movement, True occupying positions that helped shape corporate policy.

Whereas the welfare movement stressed the value of people to an True organization, it lacked the rigor and professionalism necessary for the growth of modern human- resource management.

“Plutology,” the study of how humans satisfied their wants, anticipated True the later work of “need theorists,” such as Abraham Maslow.

Fred Taylor was the creator of industrial psychology as an academic False discipline.

Whiting Williams's views were unique in that he established earnings as True a means of social comparison.

Münsterberg considered Gantt the “brilliant originator” of scientific False management.

Whiting Williams's experiences taught him that the worker was a rational False “economic man” who maximized wages regardless of how much other persons earned.

Whiting Williams felt that all persons--including managers--measured True their individual worth and their value to society in terms of their job.

The Gestalt theory of psychology emphasized the importance of False individuals rather than groups.

Emile Durkheim substituted groups as the source of values and norms as True the new collective consciousness.

Vilfredo Pareto originated the notion of “social systems.”

True Unions suffered a decline in membership during the 1920–1921 True economic depression, leading to an era of union-management cooperation.

The philosophy of the American Federation of Labor was to use False productivity, not political power, to achieve gains for labor.

The dual heritage of personnel management comes from: (1) (1) the notion of personnel work as “welfare” and scientific management ideas (2) New England and the “Waltham Plan” (3) John Patterson and Lena Tracy of N.C.R. (4) Wundt and Münsterberg (5) the emphasis on efficiency and effectiveness The pseudoscience that proclaimed it could aid in personnel selection (5) through the study of bumps and indentations on the human skull was: (1) andrometry (2) psychometry (3) optometry (4) graphology (5) phrenology

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Test Bank Chapter #9 9-16

9-17

9-18

9-19

9-20

9-21

9-22

Henry Ford hired 100 “advisers” to investigate his worker's homes. What did Ford want to find out about his workers?

(1) if their homes were neat and clean (2) if they drank too much (3) if their sex life was without tarnish (4) if they used their leisure time profitably (5) all of the above Münsterberg's book, Psychology and Industrial Efficiency, called for industrial research to find: (1) “The Best Possible Man” (2) “The Best Possible Work” (3) “The Best Possible Effect” (4) all of the above (5) only (1) and (2) above The father of experimental psychology, _____ opened the way for applied, and eventually, industrial psychology.

(1) Sigmund Freud (2) Thorstein Veblen (3) Wilhelm Wundt (4) Ordway Tead (5) Hugo Münsterberg _____ was the creator of industrial psychology.

(1) Wilhelm Wundt (2) Ordway Tead (3) Sigmund Freud (4) Hugo Münsterberg (5) Thorstein Veblen The _____ was a reform movement that advocated a personal involvement in solving social and economic problems.

(1) Social Gospel (2) Social Scientism (3) Social Darwinism (4) both (1) and (2) above (5) none of the above The beginnings of industrial sociology can be found in: (1) the Social Gospel (2) Hugo Münsterberg's research (3) the ideas of Whiting Williams (4) only (1) and (3) above (5) only (1) and (2) above What did Whiting Williams do to study working conditions?

(1) he traveled from company to company and asked the managers.

(2) he quit his job as personnel director and became a participantobserver.

(3) he started interviewing labor leaders.

(4) he took surveys that used Likert-type measurement scales.

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Test Bank Chapter #9 9-23

9-24

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9-28

According to _____, all persons measured their individual worth and their value to society in terms of their job.

(1) Harlow Person (2) Whiting Williams (3) Walter Dill Scott (4) Hugo Münsterberg (5) none of the above Whiting Williams's view was unique in that he established earnings as a means of _____.

(1) providing incentives to work harder (2) comparing levels of fringe benefits (3) social comparison (4) insuring the application of the “Eleventh Commandment” (5) none of the above Why was it important to bring the social sciences to bear on the problems of industry?

The social sciences try to understand human nature. Approaches like scientific management can measure how work is being performed but cannot measure or understand the motivation behind how the worker is performing.

Why did Henry Ford establish a “Sociology Department”? Why was it abandoned?

In March 1913, Ford Motor Company created a Sociological Department to improve employees’ standard of living. It hired 100 “advisers” to visit its employees’ homes to ensure that the homes were neat and clean and to verify that the employees did not abuse alcohol, that their sex lives were without tarnish, and that they used their leisure time wisely.

(2)

(3)

According to Ford, “There is too much of this snooping around in private affairs. We’ll change this from a sociology department to an education department.”

Compare and contrast the ideas of Hugo Münsterberg with those found in a contemporary industrial/organizational psychology text or an organizational behavior text.

Answers will vary widely; especially in comparing to a contemporary text.

The direction of Münsterberg’s work was directly linked to Taylor’s vision for scientific management and contained three broad parts: (1) “The Best Possible Man”; (2) “The Best Possible Work”; and (3) “The Best Possible Effect.”

What role did the “Social Gospel” play in industrial sociology?

Social Gospel proponents felt that they had a duty to reform social and economic conditions in both the home and workplace.

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Test Bank Chapter #9 9-29

9-30

What was “applied economics”? What contributions did John R. Commons make to applied economics?

Commons was a central figure in institutional labor economics, which emphasized the employment relationship in broad social and legal terms rather than the labor market view of neoclassical economics.

What modern ideas resemble the events that Whiting Williams observed in practice (clue: “equity”)?

Within factories, Williams observed the operations of a job hierarchy that had little or nothing to do with pay, but rather emphasized the nature of an individual’s work. While working in a steel mill, he was promoted to millwright’s helper. His pay was now 2 cents more per hour, but his former fellow shovelers envied him not because of the pay increase, but because the nature of his job had changed from the dirty, hot work of a shoveler to the cleaner, more pleasant work of an assistant to a skilled worker. This made Williams skeptical about the notion that people would work harder if they were given more money. He recognized that one’s occupation or the type of work one performs confers social status.

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Test Bank Chapter #10 10-1

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10-15 10-16

Fayol, in contrast with Taylor, focused on the orderly arrangement and integration of a firm’s basic business functions (e.g., accounting, commercial production), rather than on devising systems and work methods.

Henri Fayol felt that management was a special study that could be taught in schools and universities.

Fayol, like Taylor, started at the bottom and worked his way up into management.

Henri Fayol insisted that his work was very different from Taylor's work.

Henri Fayol felt that a leader who is a good administrator but technically mediocre was more useful to the enterprise than a good technical person with poor administrative skills.

Henri Fayol's first element of management was organization.

Organizing, according to Fayol, included provisions for the structuring of activities and relationships, as well as for staffing an enterprise.

Henri Fayol distinguished between formal and personal authority.

Henri Fayol's notion of centralization was that all decisions had to be made at the top by an enterprise’s CEO. Henri Fayol's principles were intended as guides to theory and practice and were not exhaustive in scope or to be interpreted as rigid in application.

According to Fayol, an organization’s structure must be so arranged that it provided unity of direction toward an enterprise’s objectives.

Of the types of authority discussed by Weber, the traditional type, provided the best basis for a bureaucracy.

Bureaucracy was considered by Weber to be the ideal form of organization for the purpose of theoretical analysis.

Bureaucracy was conceived by Weber as a blueprint for efficiency that would emphasize rules rather than people and competence rather than favoritism.

For Weber, bureaucracy was management by the "office" or position rather than by the person.

According to Fayol, why did schools and universities neglect management to focus on teaching technical skills?

(1) the absence of management theory (2) the over-emphasis on scientific management (3) the prejudice of classical/humanistic education against business schools (4) both (2) and (3) above (5) none of the above

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Test Bank Chapter #10 10-17

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Authority, as one of Fayol's principles, is divided into two types: what are they?

(1) civil and legal (2) formal and personal (3) internal and external (4) line and staff (5) de facto and de persona Which of the elements that Fayol proposed meant "to harmonize all activities of a concern so as to facilitate its working, and its success."

(1) coordination (2) control (3) command (4) organizing (5) none of the above Which of the elements that Fayol proposed consisted of "verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles established."

(1) coordination (2) control (3) command (4) organizing (5) none of the above According to Fayol, organizational success depended more on (1) the managerial ability of its leaders (2) the technical ability of its leaders (3) the social ability of its leaders (4) both (2) and (3) above (5) none of the above Henri Fayol's first "element" and the one he stressed the most was _____.

(1) control (2) staffing (3) planning (4) discipline (5) organizing Which of the following is not one of Max Weber's types of authority?

(1) tradition (2) charisma (3) legal (4) functional Weber's type(s) of authority was (were): (1) legal (2) traditional (3) charisma (4) all of the above (5) only (2) and (3) above

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Test Bank Chapter #10 10-24

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Of the various types of authority, Weber said that _____ must provide the basis for a bureaucracy.

(1) traditional (2) legal (3) charisma (4) personal (5) none of the above Max Weber's conceptualization of bureaucracy merits substantial consideration for naming him the founder of: (1) educational administration (2) public administration (3) organization theory (4) all of the above (5) both (1) and (2) above For Weber, bureaucracy was management by: (1) charisma (2) tradition (3) elected governmental employees (4) office (5) none of the above Weber identified _____ authority as the most appropriate for capitalism: (1) legal (2) traditional (3) charisma (4) theocratic (5) both (2) and (3) above Compare and contrast Fayol’s background and ideas with those of Taylor.

How were they similar? Different? How did this shape their view of management?

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Test Bank Chapter #10 Fayol entered l’Ecole Nationale Supérieure des Mines de Saint-Étienne (the youngest in his class at age 17) to become a mining engineer. He then went to work at the Commentry coalfield in central France. Société Boigues, Rambourg et Cie, a limited partnership (société en commandité), owned the coalfield and steel mills at Fourchambault and Torteron, a forge at d’Imphy, foundries at Fourchambault and Montluçon, and an iron mine at Berry.

(See Chapter 7.) Taylor (1856–1915) was a son of privilege. His early education was liberally sprinkled with the classics, music, the arts, the study of French and German, and three-and-a-half years’ schooling and travel in Europe. He withdrew from Phillips Exeter Academy due to vision problems and headaches. At the age of 18, Taylor began an apprenticeship as a machinist and patternmaker for the Enterprise Hydraulic Works. He was an apprentice for four years. Taylor then took a job as a laborer at Midvale Steel Company, where he worked for twelve years.

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Thus, Fayol came from an educated background and Taylor came from a more working background.

What did Fayol do that would be considered “strategic”?

Fayol held that all employees, from supervisors to work superintendents, should receive some managerial training. He believed that schools and universities did not teach management theory because it was thought that practice was the only way to acquire managerial skill. Recognizing that most higher managers have “neither the time nor inclination for writing,” Fayol used his experiences and observations to propose a body of knowledge that included principles as guides to thinking and practice and general elements or functions that compose a manager’s job. His goal was to begin a general discussion from which a theory of management might emanate.

Fayol developed 14 principles of management. Fayol is also credited with being the first person to identify and describe the elements or functions that compose a manager’s job.

What were the contributions of Max Weber, and why were they important to the evolution of management thought? Compare Weber’s “ideal” in terms of a modern university and a firm manufacturing computers. How would they be different? Any similarities?

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Test Bank Chapter #10 Weber’s major contribution was an outline of the characteristics of what he termed “bureaucracy,” that is, government by bureaus (German Büro).

Weber’s ideal bureaucracy is based on legal authority rather than on either tradition (custom) or charisma (divine grace). As developed by Weber, legal authority stems from rules and other controls that govern an undertaking in pursuit of specific goals. Managers are given the authority to interpret and enforce these rules and other controls by virtue of their position.

Students will apply these principles in a variety of ways to a university and to manufacturing.

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Test Bank Chapter #11 11-1 11-2

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The Scientific Management revolution began in Great Britain and spread to the rest of the world just as had the Industrial Revolution.

The Russians were the first to show that Scientific Management could be practiced and a mental revolution between labor and management achieved.

The Japanese refused to recognize Taylor's ideas and developed their own theories of management (called “Japanese-style management”).

Henry Ford and his associates used scientific Management widely when they increased the work pace using assembly lines.

The Hoxie Report agreed with the ideas of scientific management about how work methods could be improved.

Other studies of scientific management, such as Thompson’s and Nelson’s, support the conclusions of the Hoxie report.

The Scientific Management era was characterized as one of less efficiency and lowered productivity.

Alfred P. Sloan Jr., president of General Motors, created the concept of decentralized administration and operations with centralized control and review with the “M” form of organizing.

Russell Robb's research revealed that military and business organizations were very much alike.

The case method that was used to teach business policy originated with the clinical case approach used in medical education.

DuPont and General Motors found return on investment (ROI) a particularly useful technique because of their: (1) multidivisional organizations (2) problems with antitrust suits (3) line-staff organization (4) well developed staff offices (5) intermittent production systems Donaldson Brown developed the famous _____ which used a ROI formula to portray the relative performance of various departments, to forecast, and to control.

(1) PERT system (2) Brown Chart System (3) DuPont Chart System (4) Barksdale Chart System (5) none of the above At General Motors, _____ created the concept of decentralized administration and operations with centralized policy and control.

(1) Frederick W. Taylor (2) Henri Fayol (3) Hamilton Barksdale (4) Alfred P. Sloan, Jr. (5) Donaldson Brown

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Test Bank Chapter #11 11-14

11-15

11-16

The Gantt Chart found its way into managerial practice in the Soviet Union because of the efforts of who?

(1) Harrington Emerson (2) Walter N. Polakov (3) Wallace Clark (4) N. Lenin (5) Henry L. Gantt Scientific management was most widely used in: (1) capital intensive industries (2) labor intensive industries (3) mass production (assembly line) companies (4) none of the above How did Scientific Management influence management in Japan?

Russia? France? China?

Japan. What many popular writers call “Japanese-style management” is not a recent phenomenon, but a direct result of scientific management’s introduction into Japan during the late Meiji period. Under the influence of scholars such as Ueno and practitioners such as Mutō, scientific management provided the basis for modernizing Japanese industry.

(2)

(2)

Russia. After Lenin’s death in 1924, the General Secretary of the Communist Party, Iosif Vissarionovich Dzhugashvili, better known as Stalin, emerged as the leader of the Soviet Union. He viewed scientific management as a way to achieve economic growth equal to that of the United States. To assist in developing a national plan to increase the Soviet Union’s economic capacity, Stalin hired one of Gantt’s disciples, Walter N. Polakov, as a consultant.

France. In France, scientific management took hold in its oldest technical university, the Conservatoire National des Arts et Métiers (CNAM), founded in 1794. CNAM’s director, Jules Amar, applied Taylor’s methods to explore aspects of work physiology and organized three lectures on scientific management by C. Bertrand Thompson.

CNAM’s faculty discussed formal courses on “Taylorisme,” but did not reach a consensus until 1929, when a chair for l’organisation scientifique du travail was given to Louis Danty-Lafrance. Danty-Lafrance became a leading authority on scientific management, and CNAM “became the main body in French higher education for the spread of Taylor’s thinking and practice, to be joined by the Institut d’Études Supérieures des Techniques de l’Organisation (IESTO) in 1955 China. Taylor’s differential piece-rate plan was first described in a 1914 paper by Dingxin Yi in the journal Zhonghua Shi Ye Jie; and, in 1915, Xingfo Yang discussed Taylor’s methods in a paper titled “Employee Efficiency” in the journal Ke xue. By the 1920s, various Chinese firms were experimenting with Taylor’s methods.

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Test Bank Chapter #11 11-17

The authors say scientific management was “shaped by context and culture in other nations.” Choose one nation and discuss how this influenced its practice and/or the teaching of scientific management.

The first applications of Taylor’s principles in Australia occurred in the early 1920s with Pearson Law and Company (later Pelaco), a clothing manufacturer, and the New South Wales Railways as examples. Later in the decade, scientific management was implemented in Australia by the subsidiaries of multinational corporations such as General Motors Corporation, Goodyear Tire & Rubber Co., and Standard Telephones & Cables. Lucy Taksa has documented how scientific management spread to Australian educational practices, “resulting in the dissemination of a [single] managerial culture which is still relevant today.” Based on a wider analysis of scientific management’s adoption, Taksa has concluded that “the diffusion of scientific management in different national contexts depended on two interrelated preconditions: a relatively fluid class structure, which gave professionals opportunities for social mobility and an integrated educational system, which provided the credentials to support such mobility” and “these were precisely the conditions that existed in Australia during the early decades of the twentieth century, where leading Australian professionals, public administrators and educators were increasingly drawn to American ideas on industrial reform.”

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Test Bank Chapter #12 12-1

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Early scientific management theory was consistent with the social values True of reward for individual effort and the virtues of “rational man,” that is, individuals were directed by their own self-interest.

Real wages (that is, the purchasing power of wages) for workers declined False during Taylor's era because of his attitude toward unions.

The Social Gospel movement’s efforts to reform social and economic True conditions found a political voice in its successor, progressivism.

The Progressives opposed scientific management because of Taylor's False statements about labor leaders in the U.S. The ideas of scientific management matched Alfred Chandler's notion of: (4) (1) resource accumulation (2) multidivisional organizations (3) strategy and structure (4) rationalization of resource utilization (5) none of the above To those who followed the Social Gospel, unions: (2) (1) needed to form a separate political party (2) were instruments of social and economic reform (3) would decline as business leaders practiced welfare techniques more (4) would finally enable organized workers to catch up with the wages of non-organized employees (5) none of the above What ideas or techniques of Taylor and other scientific management writers contributed to meeting industry's needs for better resource utilization?

Taylor and his disciples were the products of an era that, in economic terms, sought the rationalization, or full use, of the world’s natural resources. Taylor was concerned about the great loss which the whole country is suffering through inefficiency in almost all of our daily acts.

The large influx of immigrant labor from the 1880s to 1920s did not result in lower wages. Rather, as technology and production processes improved, in part due to scientific management, the resulting increase in productivity required a larger workforce.

What was the “collision effect”? According to Scott, what “ethics” collided? Where did Taylor's philosophy fit in terms of these ethics?

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Test Bank Chapter #12 As the twentieth century progressed, however, new dimensions became apparent that would affect the course of management thought that began to shape the scientific-management movement. Two disparate yet strangely congenial dimensions were coming together to mark a new era in U.S. cultural thinking: (1) the U.S. Census Bureau’s declaration that, by 1890, a year after the Oklahoma Land Rush, there was no longer a Western frontier, as “a solid band of states stretched across the continent” to the Pacific Ocean, and (2) the Social Gospel movement’s drive to reform social and economic conditions in the nation’s workplaces and beyond.

12-9

With regard to the passing of the Western frontier, historian Frederick Jackson Turner identified four forces that reshaped economic, social, and political ideals in the United States during this period: (1) “the exhaustion of the supply of free land and the closing of the movement of Western advance as an effective factor in American development”; (2) “the concentration of capital in the control of fundamental industries as to make a new epoch in the economic development of the United States”; (3) “expansion of the United States politically and commercially into lands beyond the seas”; and (4) the division of political parties on “issues that involve the question of Socialism.”

According to your text, the task of government and political justification has revolved around balancing two themes. What were these themes?

Where was the “balance” during the scientific management era? Where is it now?

The task of government and political institutions throughout time has primarily revolved around two basic themes: (1) the need to balance protecting one person’s rights against violating another person’s rights, and (2) the need to limit the power of government in order to protect individual rights.

In the late nineteenth century, the United States was seeking to perfect democracy. In striving to do so, the United States encountered the “collision effect” and the capitalistic excesses of an industrializing nation. Both prompted an outpouring of legislation to change the relationship between individuals and government, as well as between business and government. Founded on a belief in a government with limited powers, the right to own private property, human liberty, and business operation without excessive regulation, the United States encountered imbalances among the ideals and reality of a growing nation.

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Test Bank Chapter #13 13-1 13-2 13-3

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13-7 13-8 13-9 13-10

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13-17

The original study at Hawthorne by researchers from MIT investigated False the relation between productivity and group isolates.

The relay-assembly studies found that output increased regardless of the False supervisory style of the observer-experimenter.

Elton Mayo believed that workers’ problems could not be explained by True any one factor but in what he called “the psychology of the total situation.”

According to the Hawthorne researchers, the technical aspect of needs False for efficiency and economic return should be addressed separately from the human aspect of an organization.

The human-relations advocates felt that in the past there had been too True much stress placed on a manager's technical skills.

According to the Hawthorne researchers, improvements in efficiency and True morale were felt to be due to improved social or human conditions rather than improved physical working conditions.

The opportunity to “let off steam” made the Western Electric Workers True feel better about their situation even though it had not changed.

Mayo concluded that managerial authority should be based on technical False skills or expertise rather than cooperation and social skills.

Mayo sought the same goals as Taylor; that is, collaboration and True cooperation.

In Mayo's view, workers had been unable to find satisfactory outlets for True expressing personal problems and dissatisfactions in their life, and this led to “pessimistic reveries.”

Mayo used the idea of anomie to demonstrate the need for workers to True form groups and develop norms.

The human relations leadership role was to be one of openness, concern, True and willingness to listen to how people felt.

The manifest level of communication involves the psychological form of False a complaint.

The outcome of the interviewing program at Hawthorne was supervisory True training in the need to listen and understand the personal problems of workers.

The bank wiring room study at Western Electric concerned informal True group behavior.

Due to earlier research into group pressures, the researchers at False Hawthorne were not surprised to find that social groups could exert strong control.

In interpreting the early relay assembly group experiments at the (4) Hawthorne plant, Clair Turner felt that the increased productivity was due to: (1) the cohesive small group of workers (2) increased earnings (3) the style of supervision (4) all of the above (5) only (1) and (3) above

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Test Bank Chapter #13 13-18

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Researchers at Western Electric found that cliques performed these (5) functions for workers: (1) protected them from internal indiscretions of members such as rate busting and chiseling.

(2) protected them from outside interference of management officials (3) protected them from job layoffs when the Depression began (4) all of the above (5) only (1) and (2) above From the Hawthorne researchers' viewpoint, worker preoccupation with (4) personal concerns inhibited their performance, a conclusion that Mayo had called _____ in his early research.

(1) manifest complaints (2) latent complaints (3) cathartic crises (4) pessimistic reveries (5) none of the above The Hawthorne researchers concluded there were two levels of (5) complaints _____ and _____.

(1) important and unimportant (2) latent and psychological (3) personal and formal (4) pessimistic and optimistic (5) manifest and latent Concerning the “bank wiring room” studies, the Hawthorne researchers (5) concluded that: (1) restriction of output was deliberate (2) output was set by the group, regardless of management's expectations (3) workers smoothed out production reports (4) the group had methods to enforce discipline (5) all of the above _____ involved a rather firm blow upon the upper arm of the object of (3) disfavor and was used to enforce all violations of group norms.

(1) Busting (2) Chiseling (3) Binging (4) Bogeying (5) none of the above According to Mayo, the human problem of industry was that managers (3) thought that the answers to industrial problems resided in _____ when, in fact, the answers were also _____.

(1) social inefficiency; technical knowledge (2) economic efficiency; engineering (3) technical efficiency; social and human (4) human inefficiency; economic efficiency (5) none of the above

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Test Bank Chapter #13 13-24

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Mayo concluded that authority should be based on _____.

(4) (1) technical skills (2) expertise (3) autocratic skills (4) social skills (5) none of the above Identify three findings from the Hawthorne studies that you could use as a manager. Explain the importance of each to contemporary management practice.

Answers will vary. Some possible answers are: •

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It was realized that workplaces are not only technical systems, but also social systems replete with informal structures and with ceremonials, rituals, and non-logical sentiments that regulate relations between people and their attitudes toward one another • It became clear that employees are not motivated solely by money • The influence of personal and social factors, as well as physical conditions and physiological parameters on workplace motivation and employee attitudes was revealed, highlighting that work behavior is determined by a complex set of interacting forces • It was again confirmed that work groups develop and maintain their own accepted standards of behavior • It was learned that employee participation in making work-related decisions can reduce resistance to new ways of doing things • The importance of effective supervision in maintaining employee job satisfaction and productivity was reaffirmed Do today’s employees restrict output? If so, how would you try to manage this behavior?

Answers will vary depending on the student’s work experience.

What can managers learn from the results of the interviewing program initiated by Elton Mayo?

Supervisors were trained to be interviewers, to listen rather than to talk, and “to exclude from their personal contacts with employees any moral admonition, advice, or emotion.” In addition, it was found that “[t]he mere fact that the company was asking the questions appeared to improve [employee] morale.” Use of this nondirective interviewing technique enabled supervisors to handle employees’ personal concerns more intelligently, locate factors adversely affecting employee performance, and remove the events or factors in employees’ social or physical environment that were adversely influencing their lives. The “new” supervisor was to be more people-oriented, less aloof, and better skilled in handling social and personal situations.

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Test Bank Chapter #14 14-1 14-2 14-3 14-4

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14-10 14-11 14-12 14-13 14-14 14-15

14-16

Mary Follett was a great believer in group action.

True Follett sought a new society that would be based on the principle of False individualism.

Follett's thesis was that “man discovers his true nature, gains his true True freedom only through the group.”

Relying upon Gestalt psychology, Mary Follett thought that through True group experiences individuals could reach a greater release of their own creative powers.

Mary Follett approved of collective bargaining as the ideal way to False resolve labor-management conflict.

The rationale for the law of the situation was based on scientific True management in the sense that Taylor's functional management sought obedience to facts determined by study and not based on the will of one person.

Follett considered defining an organization’s purpose to be the primary True task of leadership.

Follett felt that the essence of good human relations was creating the True feeling of working with someone rather than working under someone.

Mary Follett called for a new philosophy of control that was “manFalse control” rather than “fact-control,” and “super-imposed control” rather than “correlated control.”

Barnard defined an organization as “a system of consciously coordinated True activities or forces of two or more persons.”

Barnard stressed “the determination of authority remains with the True individual.”

Elton Mayo developed the acceptance theory of authority.

False Chester Barnard's theory of organization neglected informal groupings of False workers.

Barnard developed the “zone of indifference” for each individual within True which orders were accepted without questioning authority.

Follett's idea of integration is most clearly: (4) (1) solution with compromise (2) compromise without violence (3) both sides give in (4) solution without compromise (5) compromising just a little Follett would say that authority is _____.

(2) (1) formal (2) coactive (3) rational-legal (4) traditional (5) charismatic

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Test Bank Chapter #14 14-17

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_____ sought to depersonalize orders and to shift obedience to the law of the situation.

(1) Chester Barnard (2) Mary Follett (3) Elton Mayo (4) F. J. Roethlisberger (5) only (3) and (4) above Follett disapproved of _____ because it rested on the relative balance of power and inevitably ended in compromise.

(1) circular response (2) the law of the situation (3) union management cooperation (4) collective bargaining (5) none of the above According to Follett, the primary leadership task was _____.

(1) organizing the resources of the organization (2) planning the direction of the organization (3) defining an organization’s purpose (4) controlling an organization’s (5) none of the above According to Mary Follett, control was impossible to achieve without (1) a clearly defined hierarchy of authority (2) strict rules policing the actions of subordinates (3) cooperation among all elements (4) all of the above (5) only (1) and (2) above Which of the following persons wrote the first in-depth analysis of organizations as cooperative systems?

(1) Chester Bernard (2) Kurt Lewin (3) Ralph C. Davis (4) Mary Follett (5) Elton Mayo Concerning Barnard's effective-efficient dichotomy, efficiency was: (1) the degree of integration of goals.

(2) a measure of performance regarding meeting corporate goals.

(3) using the fewest possible number of executives.

(4) a condition that only the individual could determine whether or not it was being met.

(5) all of the above.

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Test Bank Chapter #14 14-23

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According to Barnard, if cooperation was successful and an (2) organization's goals were attained, then the organization was _____.

(1) efficient (2) effective (3) coordinated (4) all of the above (5) none of the above According to Bernard, _____ was the degree to which individual motives (1) were satisfied and only the individual could determine whether this condition was being met.

(1) efficiency (2) effectiveness (3) coordination (4) all of the above (5) none of the above All but one of the following are included in Barnard's elements of the (2) formal organization. Which one?

(1) communication (2) maintenance of cohesiveness (3) common purpose (4) willingness to cooperate According to Barnard, the source of formal authority resides in _____.

(1) (1) acceptance or non-acceptance by subordinates (2) persons of authority (3) formal organizational positions (4) communication (5) none of the above Which of the following is not one of Barnard's executive functions?

(4) (1) to provide a system of communication (2) to promote the securing of essential personal efforts (3) to formulate and define purpose (4) all of the above are executive functions (5) none of the above are executive functions Which of the following is most likely associated with Chester Barnard? (1) (1) The functions of the executive (2) Circular response (3) Catharsis (4) Group incentive plans (5) Span of control Apply Mary Follett’s idea of integration to resolve the conflict in some situation you have experienced, or to a labor-management dispute, or to some national or international event. Is an integrated solution possible?

Why or why not?

Answers will vary.

What is the “law of the situation”? How would this idea influence leadership? Authority? How is the “situation” defined and by whom?

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Test Bank Chapter #14

14-31

Follett proposed depersonalizing orders and shifting obedience to the “law of the situation, referring to the necessity of acting in accord with the unique requirements inherent in any situation”: “One person should not give orders to another person, but both should agree to take their orders from the situation.”

Discuss Barnard’s views on “moral leadership.” Do you agree or disagree with his statement that “a low morality will not sustain leadership long, its influence quickly vanishes.”

Barnard stressed that moral leadership is essential to an organization’s long-lasting success. By this he was referring to executive behavior “governed by beliefs or feelings of what is right or wrong, regardless of self-interest or immediate consequences of a decision to do or not to do specific things under particular conditions.” This included behavior related to personal responsibility (an individual’s character development); official responsibility (when acting “on behalf” of an organization); and corporate responsibility (internal to the interests of stockholders, creditors, and employees, and external to one’s community and society in general). Barnard believed that executives should adhere to a code of right and wrong behavior and strive to create a moral faculty in others. He observed, “[T]he endurance of organization depends upon the quality of leadership; and that quality derives from the breadth of the morality upon which it rests . . . . A low morality will not sustain leadership long, its influence quickly vanishes, it cannot produce its own succession.”

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Test Bank Chapter #15 15-1 15-2 15-3 15-4 15-5

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Moreno contributed the idea of sociodrama to the formation of “role playing” techniques and the analysis of interpersonal relations.

Lewin's ideas were contained in “field theory” which held that group behavior was an intricate set of symbolic interactions and forces.

According to Lewin, a group was always at a steady state of equilibrium.

Lewin felt that subordinate participation in decision making and the use of the group to achieve changes in behavior was a waste of time.

“Field theory” contended that group behavior was an intricate set of symbolic interactions and forces that not only affected group structure but also modified individual behavior.

According to the text, Lewin's “laissez-faire leader” was really the absence of leadership and not a major contribution to our understanding of leadership theory.

Sociodrama focused on individual therapy, whereas psychodrama focused on the group as a method of analysis.

Moreno pioneered in the idea of introducing change in organizations through “unfreezing”, “moving”, and “refreezing”.

Lewin provided a new analytical tool, sociometry.

The essence of Maslow's contribution was in the evolutionary, dynamic qualities of the nature of human needs.

The essence of Maslow's theory was that individual needs were static and unchanging.

“Human need” theory is one of our newest notions about motivation.

The top rung of Maslow's hierarchy was esteem needs.

The heart of the Scanlon plan was in a suggestion plan and production committees that sought methods and means to reduce labor costs.

One unique aspect of the Scanlon plan was that workers would share in reduced costs, not increased profits.

In 1944, IBM began to combine the jobs of two or more machine operators into one job thus beginning the interest in job enlargement.

The McCormick “Multiple Management Plan” was an effort to extend management participation and took the form of a junior board of company officers.

The Ohio State studies provided a three-dimensional view of leadership: initiating structure, consideration, and authority dimensions, which was very different from the University of Michigan theories of leadership.

The “F scale” was developed by Mary Follett to demonstrate the need for coordination.

A key concept in the work of William Foote Whyte was that of status, or the relative prestige of a job in a person's eye or in the regard of others.

George Homans described a total social system as having internal and external components, enabling the view of all organizations as sociotechnical systems.

According to Herbert Simon, limits that “bound the areas of rationality” meant that decisions were rational as long as they were kept within the formal structure of an organization.

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Test Bank Chapter #15 15-23

15-24

15-25

15-26

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15-28

The work of Moreno and Lewin (for examples) reflected the ideas of _____ and led to further studies of social change, social control, collective behavior, and the effects of groups on individuals.

(1) Freudian psychology (2) Hugo Münsterberg (3) Adlerian analysis (4) Gestalt psychology (5) none of the above A technique that can be used to broaden role flexibility and create an understanding of opposite or alien members of a group is called _____.

(1) role reversal (2) optimology (3) sociometry (4) Likert's system 5 (5) multiple management Psychodrama and sociodrama were contributions of: (1) J. L. Moreno (2) Kurt Lewin (3) William F. Whyte (4) Rensis Likert (5) none of the above The Scanlon plan worked because: (1) each individual was placed on a pay for performance plan (2) a joint committee was formed for discussing and pro-posing costsaving techniques (3) of union-management profit sharing (4) all of the above (5) none of the above The heart of the _____ was in a suggestion plan and production committees that sought methods and means to reduce labor costs.

(1) Maslow plan (2) Lewin plan (3) Scanlon plan (4) Lincoln plan (5) none of the above A high paying individual incentive plan that provides rewards based on demonstrated skills has worked very well for the firm of _____.

(1) Chester Barnard (2) Joseph Scanlon (3) William B. Given (4) James Lincoln (5) Charles McCormick

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Test Bank Chapter #15 15-29

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_____ developed the motivation theory that involves a hierarchy of needs.

(1) David McClelland (2) A. H. Maslow (3) Victor Vroom (4) Whiting Williams (5) F. W. Taylor In 1944, at its Endicott (New York) plant, the International Business Machines Corporation (IBM) began to combine the work of two or more machine operators into one job in an effort to relieve the monotony associated with “highly simplified repetitive operations.” IBM called this _____.

(1) Ergonomics (2) Job enlargement (3) Job dynamics (4) Job analysis (5) Scanlon's plan The idea of “junior boards” was started by: (1) Chester Barnard (2) Ralph C. Davis (3) William Given (4) Charles McCormick (5) Kurt Lewin _____ was viewed as democracy in action, opening communication channels, diffusing authority, and motivating people to give a greater commitment of themselves to an organization’s goals.

(1) Executive centralization (2) Employee participation in decision-making (3) Authoritative management (4) Canonical management The individual who advocated participative management from the “bottom up” was: (1) James Lincoln (2) William Given (3) Charles McCormick (4) T. W. Adorno (5) James Mooney _____, used first at IBM, served to relieve monotony, to enhance skill levels, and to increase the workers' feeling of commitment to the total product.

(1) Team job design (2) Job enhancement (3) Job ennui (4) Job enlargement

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Test Bank Chapter #15 15-35

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William Foote Whyte's restaurant experiment revealed the importance (2) of: (1) prejudice against women in the business world (2) job prestige and status in organizations (3) participation by labor in company decisions (4) the need for improved hygiene (5) none of the above “Satisficing” in decision making was the idea of: (2) (1) Mary Follett (2) Herbert Simon (3) Kurt Lewin (4) Chester Barnard (5) Rensis Likert Homans divided a total social system into two groups: internal and (4) external. Three dimensions of group behavior which interacted between each system included: (1) activities (2) interactions (3) sentiments (4) all of the above (5) only (1) and (2) above Explain role reversal and its use. What possible behavioral changes might come because of role reversal?

Role reversal, or enacting the roles of opposite social or cultural group members—for example, a white supervisor playing the role of an African American worker—might be used to broaden role flexibility and create an understanding of others’ views.

Job enlargement emerged as a way of designing jobs during this period.

Explain this approach to work design. How would this technique fit into Maslow's theory of motivation?

Job enlargement is giving the worker a larger set of work in an effort to relieve the monotony associated with “highly simplified repetitive operations.” Students might discuss how this fits into either esteem or self-actualization.

Why does your text suggest that laissez-faire is not a leadership style?

Agree? Disagree? Explain.

White was supposed to be a democratic leader, but when the results for his group were discussed, Ronald Lippitt (another group leader) remarked, “This isn’t democratic leadership. That is laissez-faire.”

Rather than discard the observations from White’s group, Lewin declared, “Okay, we’ll make a third group. A laissez-faire group.” Over the years, the notion has been erroneously passed down that laissez-faire was intended as a style of leadership when in fact it was recognized as a lack of leadership.

Students may agree or disagree and will have a variety of explanations.

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Test Bank Chapter #15 15-41

Herbert Simon observed that decision makers have limited (“bounded”) rationality and that they satisfy. Take the role of Frederick W. Taylor and present how he would react to Simon's conclusions.

Rather than portraying managers as completely rational decision-makers who invariably seek to maximize expected benefits (or minimize costs), Simon advanced the view that all decision-makers are subject to cognitive limitations and emotions, as well as uncontrollable environmental factors. He labeled this “bounded rationality” to reflect the limited capability of humans to grasp not only the full complexity of decisions, but also the uncertainty of future events with which they must cope.

Most likely, students will point out that Taylor was looking for the one best way to perform a job and would disagree with Simon.

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Test Bank Chapter #16 16-1

16-2

16-3 16-4 16-5 16-6 16-7

16-8 16-9

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16-12

Luther Gulick developed a view of the functions of an executive that included planning, organizing, staffing, directing, co-ordination, reporting, and budgeting.

Gulick visualized management as a universal activity, but his description of the managerial function was applied primarily to nonprofit administration.

Gulick's principle of departmentalization noted four methods for the grouping of activities; purpose, process, persons or things, and the place.

Luther Gulick emphasized transactions as the smallest unit of analysis in the transfer of property rights.

Vytautas A. Graičiūnas felt that span of control should never exceed four.

Ronald Coase viewed firms as a potential means of reducing the costs of market transactions.

Davis's work, The Fundamentals of Top Management, defined management as the function of executive leadership and stressed the need for professional managers.

Management theorists such as Mooney and Reiley believed that people worked better when they knew what was expected of them.

Mooney and Reiley (1) saw organization as a means to attain a common purpose (2) developed a framework of principles, processes, and effects (3) recognized the need for coordination, scalar authority, and distinction of duties (4) developed principles which resembled Weber's bureaucratic hierarchy (5) all of the above POSDCORB was developed by: (1) V. A. Graicunas (2) Ralph C. Davis (3) Lyndall Urwick (4) Luther Gulick (5) none of the above Luther Gulick's _____ required the grouping of similar activities under one head.

(1) principle of coordination (2) principle of homogeneity (3) principle of variation (4) principle of heterogeneity (5) none of the above POSDCORB is an acronym for: (1) a governmental agency (2) describing a manager’s job (3) an improvement on the Gantt Chart (4) a control technique (5) both (3) and (4) above

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Test Bank Chapter #16 16-13

16-14

16-15

16-16

16-17

16-18

The person who used mathematics to explain the span of control was _____.

(1) Lyndall Urwick (2) Charles McCormick (3) Ralph C. Davis (4) Alex Carey (5) none of the above One of the factors indicated by V. A. Graicunas to support his argument for a narrow or limited span of control was the _____.

(1) the salaries of executives (2) “tapping labor's brains (i.e., participation) (3) definition of the acceptance theory of authority (4) the span of attention (5) job enlargement Which of the following was not identified by Ralph C. Davis as an organic function of management?

(1) planning (2) organizing (3) coordinating (4) controlling The “organic functions of management” were developed by: (1) Ralph C. Davis (2) Lyndall Urwick (3) Luther Gulick (4) Chester Barnard (5) Henry Dennison _____ felt that all managers were judged and should be rewarded by the results they obtained. (“Optimology” is also one of the ides of this person.)

(1) V. A. Graicunas (2) H. A. Hopf (3) Luther Gulick (4) Lyndall Urwick (5) none of the above Harry Hopf argued that a firm should (1) maximize earnings thereby serving society (2) serve society and thereby maximize earnings (3) minimize profits to serve society (4) disregard society and operate where total costs equaled total revenues (5) practice none of the above

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Test Bank Chapter #16 16-19

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16-24

_____ started the “management audit” approach by formulating a (1) continuing series of publications on appraising managerial competence in organizations?

(1) Jackson Martindell (2) Alvin Brown (3) Harry Hopf (4) Ralph Davis (5) none of the above What were the contributions of Mooney and Reiley, Gulick, Urwick, and Graicunas to organization theory? Examine a contemporary organization—business, social, religious, or political---and assess how applicable these ideas are today.

Student answers will vary.

Study some recent instances in which top management and/or the board of directors have not served shareholder interests. Speculate on why the issue of ownership and control has been such a controversial since Adam Smith expressed his concern about those who manage “other peoples’ money” many years ago.

Student answers will vary.

When Ronald Coase wondered about why business firms existed, what did he find? Would his ideas also apply to noneconomic organizations?

Why or why not?

Coase recalled Smith’s observation that barter transactions are only possible when two people coincidentally wish to exchange commodities that are mutually needed by one another. Simply stated, the butcher does not always desire the baker’s bread or the brewer’s beer. Because money or currency is tradable and can be stored for future use, it eliminated not only the “double coincidence of wants,” but also the costs associated with searching for a willing barter partner, and the “disutility” of having to wait for such a partner to be found. In a similar effort to reduce costs, as Coase went on to explain, at some point, someone (an entrepreneur) will create a business to engage in all or most of the transactions necessary to secure the resources required to produce a desired product.

As Coase reasoned, “the operation of a market costs something and by forming an organisation and allowing some authority (an ‘entrepreneur’) to direct the resources, certain marketing costs are saved.”

Luther Gulick accepted Henri Fayol’s managerial elements (functions) and expanded these to apply to public administration. What would be some major differences between managerial work in for-profit compared with not- for-profit organizations?

Student answers will vary.

Harry Hopf thought that corporate earnings were a product of service to society, rather than the goal of an enterprise. How do you feel about this interpretation in terms of what other business courses, e.g. finance or economics, would say?

Student answers will vary.

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Test Bank Chapter #16

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Test Bank Chapter #17 17-1

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One of the challenges to the basic premises of Mayo and his colleagues was that they confused means and ends in assuming that the goal of contentment and happiness would lead to conflict-free equilibrium and organizational success.

The Hawthorne researchers been criticized for using too much statistical data in their findings and thereby ignoring the human factors that made up the work groups they studied.

The “Hawthorne effect” has been demonstrated in numerous studies to explain why workers in the relay-assembly test room increased their output.

One of the criticisms of Mayo and his colleagues was that they assumed that contented workers would produce more work.

After further research, we can conclude that Mayo was correct by not including economic motives in his analysis.

After the passage of the National Labor Relations (Wagner) Act in 1935: (1) the number of strikes about wages and hours more than doubled (2) the number of strikes about forming labor unions increased (3) union management cooperation began (4) the Supreme Court upheld company unions (5) human relations practices made unions less important Hawthorne researchers were labeled as _____, by their critics.

(1) heroes (2) cow sociologists (3) turncoats (4) lab monkeys (5) none of the above _____ criticized the Hawthorne researchers for their rejection of economic incentives: (1) William F. Whyte (2) Luther Gulick (3) A.J.M. Sykes (4) David McClelland (5) James Lincoln Assume this situation: You are a first line supervisor responsible for ten employees and wish to be seen as a “human relations oriented” manager by your employees. Your supervisor, however, has stated the most important task is to get the work done promptly and correctly. Are these expectations reconcilable? Why or why not?

Student answers will vary.

Are human relations practices incompatible with the goals of unionized employees? Would it make any difference if the employees belonged to a union or not?

Student answers will vary.

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Test Bank Chapter #18 18-1 18-2 18-3

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The social man era was characterized by a shift from the “invisible hand” True to the “glad hand.”

During the era of the social person, there was a shift from the “innerTrue directed” to the “other-directed” individual.

During the era of the social person, social competence and the True manipulation of people began to assume a new importance, and technical skills were played down.

During the era of the social person, the social ethic emphasized False achievement by individual striving because the Protestant-ethic continued to serve the needs of society well.

The literature of the 1930s and 1940s reflected the anti-business True sentiment which was prevalent during the Depression.

The Fair Labor Standards Act of 1938 was the first national False unemployment protection.

Research indicates that the needs for achievement and affiliation in (5) America from 1890 to 1950: (1) both decreased (2) experienced no change (3) both increased (4) increased for achievement and decreased for affiliation (5) none of the above The person who started a program on how to win friends and influence (1) people was _____.

(1) Dale Carnegie (2) Fritz Roethlisberger (3) Norman Vincent Peale (4) Alex Carey (5) William B. Given The social ethic was: (4) (1) a philosophy which emphasized human individuality (2) a radical product of World War I (3) brought about by the management process school of thought (4) a philosophy which played down the individual in exchange for group security (5) all of the above The _____ guaranteed employees “the right to self-organization, to form, (1) join, or assist labor organization, to bargain collectively through representatives, and to engage in concerted activities for the purpose of collective bargaining.”

(1) National Labor Relations Act (2) Human Relations Act (3) Labor Management Relations Act (4) Act to Regulate Commerce (5) Sherman Anti-Trust Act

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Test Bank Chapter #18 18-11

18-12

18-13

Organized labor gained substantial power during the 1930s through: (1) union-management cooperation (2) employee representation plans (3) legislation (4) human relations practices (5) both (2) and (4) above The most significant legislation for labor unions during the 20th century has been the _____.

(1) Robinson-Patman Fair Labor Treatment Act (2) Unfair Labor Practices Act (3) Full Employment Act (4) National Labor Relations Act (5) National Industrial Recovery Act Fictional literature was used by Scott to indicate a shift in social values during this period. Take a sample of best-selling contemporary fictional literature and comment on what social values are being portrayed. Or examine how businesspeople are being portrayed in today’s fictional literature or other media? Do you feel these views are unbiased and realistic or are biased and over dramatized?

Student answers will vary.

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Test Bank Chapter #19 19-1 19-2 19-3 19-4 19-5 19-6 19-7

19-8 19-9 19-10 19-11

19-12

19-13

19-14

The business policy/strategy literature focuses primarily on how strategy False is implemented rather than its formulation.

Henri Fayol’s description of the manager’s job has been a continuing False influence in studies of multinational enterprise.

The United States of America has led the world in international business False education since the Wharton School was established in 1881.

Since the time of Adam Smith, the separation of ownership and control False has not caused any problems.

Rosemary Stewart viewed the manager’s job as consisting of demands, True constraints, and choices.

Practicing human resource managers have found academic research to be False of substantial value.

Evidence-based management is not a new or novel idea. Henri Fayol was True an early proponent when he wrote management principles should be “tried and checked by general experience.”

Evidence-based management means translating principles based on the True best evidence into organizational practices.

Edwin Locke and Gary Latham’s “goal-setting theory” of motivation has True been used as an example of evidence-based management.

“Actionable research” is the goal of management scholars.

False Ronald Coase would say that the firm, in most cases, is more efficient (1) than the market in allocating resources because: (1) the firm can save marketing costs by internalizing operations.

(2) the market depends on barter.

(3) of limits that bound the area of rationality.

(4) managerial decision making maximizes resource utilization.

(5) none of the above.

Opportunistic behavior in organizations, that is, “self-interest seeking (2) with guile,” can be mitigated by: (1) carefully formulated strategic plans.

(2) monitoring mechanisms during and after performance.

(3) following Theory Y. (4) well developed information systems.

(5) none of the above.

The theory-practice divide is believed to be caused by: (5) (1) the academic reward system (2) too much emphasis on “hard” management skills (3) professors who have not been practitioners (4) the tradition of academic freedom (5) all of the above The phrase “management theory jungle” is identified with: (1) (1) Harold Koontz (2) Peter Drucker (3) Henri Fayol (4) Henry Mintzberg (5) Rosemary Stewart

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Test Bank Chapter #19 19-15

19-16

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19-18

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19-20

In explaining why firms are different, Edith Penrose attributed this to: (1) which firm was better at reducing transaction costs.

(2) the heterogeneity of the firm’s resources.

(3) the potential that existed in knowledge within the firm to extend its capabilities.

(4) the firm’s effectiveness in formulating generic strategies.

(5) only (2) and (3) above.

As the owners of the firm, the shareholders, became separated from those who managed the firm, the issue of _______ became important: (1) service leadership (2) institutional economics (3) corporate social flexibility (4) corporate governance (5) only (1) and (2) above In the book The Practice of Management, _________ established the basic conceptual framework for the business policy/strategy field: (1) Henri Fayol (2) Peter Drucker (3) R.C. Davis (4) Henry Mintzberg (5) William Newman Which of the following would not be one of Henry Mintzberg’s managerial roles?

(1) Interpersonal (2) Informational (3) Behavioral (4) Decisional Which of the following was (were) not included in Rosemary Stewart's view of the manager's job?

(1) Choices (2) Demands (3) Agendas (4) Constraints (5) Both (1) and (4) above were not included Your textbook authors believe that ___ has become an international acronym.

(1) MBA (2) PDQ (3) MBO (4) PPBS (5) None of the above.

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Test Bank Chapter #19 19-21

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Peter Drucker felt that objectives should be set: (1) (1) in any area where the results were vital to organizational performance.

(2) only in areas where results could be quantified and measured.

(3) for each managerial function as defined by Henri Fayol.

(4) all of the above (5) only (2) and (3) above. _____ originated the idea of MBO in the modern era.

(3) (1) Frederick Fiedler (2) Harold Koontz (3) Peter Drucker (4) Rensis Likert (5) Rosemary Stewart _____ “motivates the manager to action not because somebody tells him (1) to do something... but because the objective needs of his task demand it.”

(1) Management by objectives (2) System 5 management (3) Task-based forecasting (4) Job enrichment (5) Organizational objectives management Examine the studies of managerial work in other nations. Are there more recent studies? Do these support the idea there are some widely accepted management practices in all organizations?

Student answers will vary.

According to Oliver Williamson, the move from markets to hierarchy (a firm) was based on two assumptions—bounded rationality and opportunism. What attributes of the firm make it superior to the market in dealing with these issues?

Beginning in the mid-1970s, Oliver E. Williamson extended Coase’s thinking and coined the phrase “new institutional economics” to refer to the study of imperfections in markets that require a consideration of nonmarket factors. These imperfections include laws, cultural constraints, and political systems under which firms must operate, as well as considerations such as “bounded rationality” (Herbert A. Simon’s label for Barnard’s limits to “the power of choice”; see Chapter 14) and the need for monitoring mechanisms to thwart self-serving “opportunism”—the “effort to realize individual gains through a lack of candor or honesty in transactions.” Williamson’s opportunism paralleled Barnard’s “theory of opportunism,” which Williamson described as “self-interest seeking with guile,” as “even among the less opportunistic, most have their price.”

What is the resource-based view of the firm? What is the knowledgebased view of the firm? Where did these views originate and how did they influence the history of strategic management?

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Test Bank Chapter #19 Resource-based: “What a firm wants is to create a situation where its own resource position directly or indirectly makes it more difficult for others to catch up.” Jay B. Barney has emphasized that gaining a competitive advantage in this way requires that a firm’s resources be valuable, rare, inimitable, and non-substitutable (VRIN).

Knowledge-based: “There is no reason to assume that the new knowledge and services [from corporate exploration and research] will be useful only in the firm’s existing products; on the contrary, they may . . . provide a foundation which will give the firm an advantage in some entirely new area.” “Knowledge” may also be inherited, residing in the experience, education, and intuition of a firm’s human resources.

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Test Bank Chapter #20 20-1 20-2 20-3 20-4 20-5 20-6 20-7 20-8 20-9 20-10 20-11 20-12 20-13 20-14 20-15 20-16 20-17

20-18 20-19

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The Gordon and Howell report encouraged more emphasis on the True behavioral sciences in business schools’ curricula.

Keith Davis felt that human relations and organizational behavior were False separate approaches to human resource management.

Argyris and Schon emphasized “double-loop” learning for organizational True change and development. .

“Double-loop learning” is important in the knowledge-based view of the True firm.

Project GLOBE research has concluded national culture is a predictor of False effective CEO behavior.

It was McGregor's fundamental belief that organizational integration True could be achieved by changing managerial assumptions about people.

To McGregor, how people were treated was largely a self-fulfilling True prophecy.

Douglas McGregor's Theory Y says that workers are lazy and must be False forced to do the job.

A manager who accepts Theory Y assumptions would select a narrow False span of management to insure better coordination and control.

The Gordon and Howell report concluded that personnel management False courses were far superior to other business school subjects.

The central concern of human resources management is the personal False happiness of the employees.

Human resources management is the responsibility of the personnel or False labor relations department rather than of the managers of the firm.

Herzberg called the factors that were identified in the job context True hygiene factors.

According to Herzberg, management should recognize that hygiene True factors were necessary but not sufficient to motivate employees.

For Herzberg, the motivation to work must come from job enlargement. False According to Herzberg, if the worker feels the job context is satisfactory False then the worker will be motivated.

Strategic human-resource management and developing high False performance systems are new ideas and reflect our understanding of the changing needs of multinational enterprises.

If an employee feels his/her “growth need strength” is satisfactory, job True enrichment is less important.

Strategic human-resource management departments should be formed to False relieve managers of the complexities of managing in different nations under different laws and regulations.

In the expectancy theory of motivation, motivation is a product of True valence, the value of a particular reward to the individual, and expectancy, the individual's perception of whether or not their behavior will likely lead to satisfaction.

In the equity theory of motivation, individuals choose what need can be False met if the supervisor is fair and equitable.

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Test Bank Chapter #20 20-22 20-23

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Goal setting is the process of developing and setting general work goals or “do the best you can” targets for employees to accomplish.

Goal setting theory advises managers to allow employees who have a high need for achievement to participate in decision making but to assign tasks and goals to those who have a low need for achievement.

Studies by GLOBE research teams have provided a better understanding of leadership in different cultures.

The “two-factor theory” of job design has been widely and effectively applied in developing nations.

Charismatic leaders get things done by delegating and sharing their power with others.

Transformational leaders change the beliefs of their followers so that they will obey and follow without asking questions.

Expectancy theory is based on the assumption that rewards will be commensurate with an employee’s expectations. _____ would say that the formal organization structure interferes with healthy personality development.

(1) Keith Davis (2) Peter Drucker (3) Fred Herzberg (4) Chris Argyris (5) Abraham Maslow One could measure an individual's degree of self-actualization by plotting his or her position on the _____.

(1) immaturity-maturity continuum of Argyris (2) Maslow Chart (3) Likert Scale (4) motivational grid of Blake and Mouton (5) no methods have ever been proposed to measure self-actualization According to Argyris and Schon, individuals’ defensive reactions to organizational change could be reduced by _____.

(1) experiential learning (2) following Theory X (3) double-loop learning (4) meeting individual’s self-actualization needs (5) all of the above According to Argyris, individuals may engage in certain defense mechanisms to adapt or react to the demands of the organization, which is to _____.

(1) becoming aggressive (2) restricting output (3) becoming apathetic (4) only (1) and (3) above (5) all of the above From his experience as President of Antioch College, _____ developed a “new” theory of management.

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Test Bank Chapter #20

20-34

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(1) Chris Argyris (2) Douglas McGregor (3) Harold Koontz (4) Fred Herzberg (5) none of the above _____ felt that managerial assumptions about human nature and human behavior were all-important in determining managers' styles of operating.

(1) Chris Argyris (2) Frederick Herzberg (3) Douglas McGregor (4) A. Maslow (5) Rensis Likert According to McGregor, managers who accepted the _____ image of human nature would not structure, control or closely supervise the work environment.

(1) Theory X (2) Theory Y (3) Theory Z (4) Theory W (5) none of the above.

Human resources management is the responsibility of _____.

(1) the union-management council (2) all managers (3) the personnel manager (4) the office of manpower and the budget (5) the shop steward According to Herzberg, which of the following is (are) hygiene factor(s)?

(1) Improved working conditions (2) Better supervisors (3) Challenging work (4) (1) and (2) above (5) (1) and (3) above Herzberg would say that the motivators are found in _____.

(1) interpersonal relations (2) the job context (3) the job content (4) all of the above (5) both (1) and (2) above Goal-setting theory involves: (1) specific and challenging goals.

(2) job enrichment as the primary motivation.

(3) regular feedback about results.

(4) all of the above.

(5) only (1) and (3) above.

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Test Bank Chapter #20 20-40

20-41

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20-46

Project GLOBE research identified: (1) universally desirable leader behaviors (2) participative leaders are universally desirable (3) universally undesirable leader behaviors (4) autonomous leaders are universally undesirable (5) only (1) and (3) above _____ pioneered the idea that a number of leader behavior styles may be effective or ineffective depending on important elements of the situation.

(1) Fred Fiedler (2) Robert Blake (3) Edwin Locke (4) Rensis Likert (5) Joan Woodward Which of the following is (are) not a major factor of the leadership situation as identified by Fiedler's research?

(1) leader-member relations (2) task structure (3) position power (4) organizational environment (5) all of the above are factors According to Fiedler, the _____ oriented leader tends to perform best in situations which are either very favorable or very unfavorable.

(1) high LPC (2) laissez-faire (3) relationships (4) people (5) task _____ is a term used to describe manager/leaders who display the personality traits to attract people to her/his beliefs and goals and to follow obediently: (1) Charisma (2) Task oriented (3) Transformational (4) Relationships (5) People oriented The _____ leader/manager is able to form a “vision” of what needs to be done to make his/her organization more effective in the future and “empower” people, getting them to share in this vision.

(1) charismatic (2) task oriented (3) transformational (4) autocratic (5) relations oriented

(5)

(1)

(4)

(5)

(1)

(3)

Describe Chris Argyris' personality versus organization hypothesis. As a first line supervisor, what could you do to promote a more “mature”

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Test Bank Chapter #20

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work group?

He proposed a “personality versus organization” hypothesis based on an “immaturity–maturity” theory of human behavior.4 According to Argyris, there was an incongruence between the demands of formal organizations (with their extreme division of labor and close oversight and control) and the needs of healthy, mature individuals. Argyris argued that from infancy to adulthood, there was a tendency for the healthy personality to develop along a continuum from immaturity to maturity by moving from being passive to being active, from dependence to independence, from a lack of awareness of self to an awareness and control over self, and so on. In Argyris’s view, when the needs of healthy personalities conflicted with the requirements of formal organizations, individuals naturally protected themselves by responding defensively (e.g., by becoming aggressive or apathetic, or restricting output). All too often, managers responded by either becoming autocratic and directive or, alternatively, turning to human relations. With regard to the latter, it was Argyris’s opinion that many managers turned to pseudo-humanrelations programs to sugarcoat workplace realities rather than address the actual causes of employee discontent.

Identify the assumptions of Theory X; of Theory Y. Which do you feel describes more accurately people you have worked with on a job or in a group-oriented classroom assignment?

Theory X assumed: 1. The average human being has an inherent dislike of work and will avoid it if he can . . . .

2. Because of this human characteristic of dislike of work, most people must be coerced, controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. . . .

3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, [and] wants security above all.

Theory Y assumed: 1. The expenditure of physical and mental effort in work is as natural as play or rest. The average human being does not inherently dislike work.

2. External control and the threat of punishment are not the only means for bringing about effort toward organizational objectives. Man will exercise self-direction and self-control in the service of objectives to which he is committed.

3. Commitment to objectives is a function of the rewards associated with their achievement. The most significant of such rewards, for example, the satisfaction of ego and self-actualization needs, can be

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direct products of effort directed toward organizational objectives.

4. The average human being learns, under proper conditions, not only to accept but also to seek responsibility. Avoidance of responsibility, lack of ambition, and emphasis on security are generally consequences of experience, not inherent human characteristics.

5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.

6. Under the conditions of modern industrial life, the intellectual potentialities of the average human being are only partially utilized.

In response to the ideas of Frederick Herzberg, a union official said, “to enrich the job, enrich the paycheck.” What assumptions about people is the union official making? Agree? Disagree?

Student answers will very.

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Test Bank Chapter #21 21-1 21-2

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21-4 21-5

21-6 21-7

21-8 21-9 21-10

21-11

21-12

W. Edwards Deming pioneered statistical quality control at the Western Electric Company.

Operations research techniques were applied first in human resource management where there was a great need for more quantifiable decisions.

During World War II, the Germans formed the first “operations research teams” of various specialists to bring their knowledge to bear upon the problems of radar systems and civilian defense matters.

W. Edwards Deming was very successful with Japanese industry before the U.S. managers became interested.

The Gordon and Howell report (1959) praised production management courses as the most “intellectually stimulating” in business school curricula.

The Gantt Chart concept was extended and enriched by PERT and CPM techniques.

Cybernetics showed that all systems could be designed to control themselves through a communications loop that fed back information allowing the organism to adjust to its environment.

Taiichi Ohno developed his “just-in-time” system of inventory management from practices at the Ford Motor Company.

The International Organization for Standardization was established to ensure each nation followed the best practices within its industry. _____ was the application of scientific knowledge and methods to the study of complex problems with the stated purpose of deriving a quantitative basis for decisions which would accomplish the organization's objective.

(1) scientific research (2) behavioral research (3) operations research (4) organizational research (5) none of the above In the modern era, management science uses mathematics and the scientific method to help solve the problem(s) of: (1) the allocation of limited resources.

(2) defining the firm's social responsibility.

(3) facilitating human adjustment to environmental changes.

(4) all of the above.

(5) none of the above.

Statistical quality control was pioneered at Hawthorne Works by who?

(1) Elton Mayo (2) Walter Shewhart (3) Clair Turner (4) Frederick W. Taylor (5) Bing Crosby

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False

True False

True True

False False (3)

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Test Bank Chapter #21 21-13

21-14

21-15

21-16

21-17

_____ is a modern adaptations of the Gantt Chart: (1) Statistical Quality Control (2) POSDCORB (3) Industry best practices (4) PPBS (5) PERT _____ took Shewhart’s ideas on quality control to Japan.

(1) Ludwig von Bertalanffy (2) P.M.S. Blackett (3) Lillian Gilbreth (4) W. Edwards Deming (5) A.V. Feigenbaum _____ is the phrase used to describe the formation of small problemsolving groups of workers, supervisors, and specialists for the purpose of developing better ways of doing a job.

(1) Project research groups (2) Task improvement teams (3) Quantity cadres (4) Quality circles (5) Participative planning teams _____ of the Toyota Motor Company developed “just-in-time” inventory management from earlier ideas at the Ford Motor Company.

(1) P.M.S. Blackett (2) Frederick W. Taylor (3) W. Edwards Deming (4) Joseph Juran (5) Taiichi Ohno How did operations research begin? What was its purpose? How did it impact production management? Compare Operations Research methods with Frederick Taylor's metal-cutting experiments.

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Test Bank Chapter #21 World War I gave widespread recognition and acceptance to the application of the scientific method to management, as evidenced in Gantt’s work for the Emergency Fleet Corporation and Wallace Clark’s efforts for the U.S. Shipping Board. World War II brought managers, government officials, and scientists together to introduce order and rationality to the logistics of global hostilities. The British formed the first operations-research (OR) groups comprised of various specialists to bring their diverse knowledge together to develop radar systems, perfect ground-to-air and air-to-air gunnery, design antisubmarine measures, guide bombing runs, and provide civilian defense.

Operations research and management science were not so much the search for a science of management as a striving for the use of science in management. In this endeavor, the tools of mathematics and science were enlisted to solve the age-old challenge of optimally allocating society’s scarce resources. This would reshape the prevailing view of production management.

21-18

In brief, operations researchers, management scientists, and decision theorists reshaped the earlier notions of “industrial administration” or “production management.” The techniques that they developed and applied enhanced the academic credibility of production/operations management in U.S. business schools.

Compare and contrast the Gantt Chart with PERT and CPM. To what kind of production system would these apply -- batch, mass, continuous processing? Explain why.

Postwar developments in computer technology furthered Gantt’s early work with progress and performance bar charts (see Chapter 8).

Beginning in 1956, the DuPont Company developed a computerized network method for planning and controlling, which became known as the Critical Path Method (CPM). At about the same time, the U.S. Navy, Lockheed Aircraft Corporation, and management consultants Booz Allen Hamilton created the Program Evaluation and Review Technique (PERT) for mapping the activities necessary for constructing the Polaris missile. PERT and CPM rely on diagrams depicting the relationships between the events and activities that compose a project across time.

These diagrams, called “networks,” allow managers to total the required time for each activity along every sequence—or path—of activities necessary for a project’s completion. The path having the longest time is the “critical path,” indicating the earliest date that a project can be completed. Having identified the critical path, project managers can focus their attention on reducing the time of activities in this path or, at minimum, watching closely for any delays. Although PERT and CPM are more complex than this brief description implies, they are little more than Gantt’s pioneering bar charts enriched by increased computing power.

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Test Bank Chapter #21

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Test Bank Chapter #22 22-1 22-2 22-3 22-4

22-5 22-6 22-7 22-8 22-9 22-10

22-11

22-12 22-13 22-14 22-15 22-16 22-17

22-18

Ethics are the moral “oughts” that sustain a civilized society.

True The “just price” of Saint Thomas Aquinas meant that the courts or the False prevailing system of justice determined the price of a product or service.

Ethics and social responsibility are clearly two different issues.

False Businesspersons did not become involved in social responsibility and False philanthropy until the courts, in a 1953 decision, provided a legal precedent.

Commutative justice, in Aristotle’s ethics, considers the equitable True distribution of income or wealth.

The modern view of social responsibility is that business firms have the False power, resources, and responsibility to resolve all current social issues.

One of the arguments against business assuming social responsibility is True that the firm is a trustee of the stockholders.

Stakeholder is synonymous with stockholder or shareholder.

False Social or non-economic objectives can be pursued only if the primary True economic objectives of the firm have been attained.

In Archie Carroll's framework, the “discretionary” category of True responsibility refers to the voluntary choices of the firm, such as philanthropy.

Drucker would say that social objectives must be satisfied before False economic objectives because business success depends on society's approval.

Mercantilism was a successful trade policy because the consumers False benefited from protected prices.

Hypernorms of ethical behavior have been developed in the United False Nations to be applied through the U.N.’s Ethical Security Council.

Johnson & Johnson’s credo separates ethics from social responsibility False for its employees.

Social entrepreneurship suggests business firms to re-think their True operations to accomplish social and economic goals.

The founder of the first collegiate school of business, Joseph Wharton, True felt that ethics belonged in the business school curriculum. _____ saw accumulated wealth as a trust fund which was to be (5) administered to produce the most beneficial results to the community.

(1) John S. R. Shad (2) Howard Bowen (3) Morrell Heald (4) Joseph P. Kennedy (5) Andrew Carnegie In the modern era, provision(s) for corporate philanthropy was (were) (2) found in: (1) the Federal Revenue Act of 1935.

(2) A. P. Smith Manufacturing Co. v. Barlow et al.

(3) Wade v. Roe Manufacturing Co. (4) the Federal Reserve Act of 1958.

(5) only (1) and (2) above.

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Test Bank Chapter #22 22-19

22-20

22-21

22-22

22-23

22-24

The Meat Inspection Act (1906) and the Pure Food and Drug Act (1906) were passed because of: (1) Theodore Roosevelt's book, The Trusts as Monsters.

(2) animal rights activists.

(3) Upton Sinclair's book, The Jungle.

(4) the advocacy of certain business leaders at that time.

(5) only (2) and (3) above.

Arguments in favor of social responsibility for business would include: (1) the improvement of the public image of business.

(2) business could optimize its return to its shareholders.

(3) government regulation could be avoided.

(4) all of the above.

(5) only (1) and (3) above.

Arguments against social responsibility for business would include: (1) management should optimize shareholder return.

(2) business should not be given responsibilities it is not equipped to perform.

(3) management is a trustee for the shareholders.

(4) all of the above.

(5) only (1) and (3) above. _____ refers to the view that a business firm is part of a larger system of customers, investors, suppliers, etc.

(1) Social trusteeship (2) Stakeholders (3) The Gospel of Wealth (4) All of the above (5) Only (1) and (3) above Drucker believes business cannot meet its social responsibilities unless: (1) it achieves its economic objectives.

(2) the courts provide approval.

(3) consumer advocates become more militant.

(4) all of the above.

(5) none of the above.

Which of the following is not one of Archie Carroll's categories for describing corporate responsibilities?

(1) Hypernorms (2) Legal (3) Discretionary (4) Ethical (5) Economic

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Test Bank Chapter #22 22-25

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22-28

22-29

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22-31

22-32

_____ used politics to subsidize local businesses, develop colonies, promote tariffs to keep out foreign products, and develop a strong military presence to protect its home markets.

(1) Liberalism (2) Socialism (3) Mercantilism (4) Conservatism (5) None of these “isms” The global markets of today have (has) been made possible by: (1) a transportation revolution.

(2) a cultural revolution.

(3) a communication revolution.

(4) all of the above.

(5) only (1) and (3) above. _____ comparative advantage was the idea that, with free trade, each nation would find its best advantage in a global marketplace.

(1) David Ricardo's (2) Peter Drucker's (3) John M. Keynes' (4) Saint Thomas Aquinas' (5) Thomas Malthus' Environmental management standards have been developed by the _____.

(1) Organziation for Community Development (2)International Organization for Standardization (3) United Nations Accord on Sustainability (4) Sierra group (5) None of the above Regarding the ethics of merchants, Johannes Nider would advise _____.

(1) caveat emptor (2) caveat venditor (3) quo vadis (4) omni vincit amor (5) none of the above Can ethics be taught in the classroom? Where do we learn “right” and “wrong”?

Student answers will vary.

Legislation typically follows corporate and/or individual wrong-doing.

Has this legislation been successful? If not, what do you suggest as a solution?

Student answers will vary.

Discuss the question of whether ethics are “situational.” That is, vary depending on where you are. Or is there some higher code of moral conduct that transcends local and national boundaries?

Student answers will vary.

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Test Bank Chapter #22 22-33

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Identify some events that have made business ethics an “evergreen” issue. Would business ethics be included in our understanding of agency theory? Of corporate governance?

Student answers will vary.

Review the ideas of Keith Davis and discuss the pros and cons of social responsibility. Has anything changed since 1973, when that article was written, to add to the arguments of either side? What?

Student answers will vary.

Drucker says “management has failed if it fails to produce economic results.” Agree? Disagree?

Student answers will vary.

Review Archie Carroll's categories of responsibilities. How do these interact and overlap?

Archie B. Carroll and Kareem M. Shabana helped clarify this issue by describing four categories of business responsibilities: economic, legal, ethical, and discretionary (later labeled philanthropic). These were “not mutually exclusive, nor . . . intended to portray a continuum with economic concerns on one end and social concerns on the other. . . .

They are neither cumulative nor additive . . . [but] are simply [reminders] that motives or actions can be categorized as primarily one or another of these four kinds.” Economic responsibilities are primary, because before all else a business has an obligation to produce and sell products and services society wants at a profit. Legal responsibilities are those regulations and rules created by political institutions to legitimize and govern business activities. Ethical responsibilities are expectations of how a firm should conduct its business beyond what the law requires.

Philanthropic responsibilities are voluntary. The intent of these categories is to show that corporate social responsibility is not an eitheror proposition; that is, a firm’s economic responsibility to earn a profit for its owners interacts with, rather than excludes, its other stakeholder responsibilities.

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Test Bank Part #1 A.

B.

Three “ethics” were offered as preconditions to the Industrial Revolution. What were these ethics and what role did each play in setting the stage for industrialization?

1. Protestant ethic 2. Liberty ethic 3. Market ethic The roots and course of three ethics, or standards for individual behavior, that subsequently interacted to change prevailing values toward people, work, and profits may be traced to this renewal. The Protestant ethic, which flowed from the Protestant Reformation, ended the near millennium-long religious dominance of the Roman Catholic Church in Western Europe. The liberty ethic imposed legal limits on political power by promoting representative government. The market ethic, first mentioned in Chapter 1, brought forth the notion of a market-directed economy. Together these three ethics established the foundations of an industrial age that brought people from subservience to a newfound freedom in allocating resources, in social relations, and in political institutions. The outcome of the resulting cultural rebirth was the creation of an environmental ethos that would lead to the formal study of management.

What was the "Industrial Revolution"? What were some early problems for management caused by the emergence of the factory system?

The Industrial Revolution was an era in which technology progressed more rapidly than ever before. The essence of the Industrial Revolution was the substitution of machine power for other natural sources of energy, such as human, animal, wind, and water power.

As organizations grew larger with the burgeoning factory system, managers in general faced challenges unlike those previously encountered. The Roman Catholic Church could organize and manage its properties because of accepted dogma and the devotion of its faithful; armies and other military organizations could control thousands of conscripts through a rigid hierarchy of discipline and authority; and government-funded bureaucracies could survive without having to face competition or show a profit. Managers in the fledgling factory system could not resort to any of these methods to ensure effective and efficient performance.

C.

Many entrepreneurs, thus, found themselves in a quandary: technology and capital made large-scale production possible, and competitive forces made economies of scale imperative, but at the same time, as factories increased in size, unforeseeable managerial challenges emerged.

Select five (5) from the following list of individuals and briefly discuss the contributions of each to the development of management thought: 1.

2.

3.

4.

5.

6.

Charles Babbage Charles Dupin Robert Owen Andrew Ure Daniel McCallum Henry Varnum Poor

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Test Bank Part #1 1. Charles Babbage. Babbage sought to apply technology to replace human effort and, in doing so, earned a place in history as the patron saint of Operations Research and Management Science. He applied a scientific approach to management long before the scientific-management era began in the United States. He also demonstrated a small working model of the world’s first automatic calculator, his Difference Engine, in 1822.

2. Charles Dupin. He was a French mathematician, economist, politician, and naval engineer. His contribution to the practice of management lies in the influence he had on the course of French industrial education and possibly on the later work of Henri Fayol.

He is widely credited with being the first writer to distinguish between technical and managerial skills and to argue for the necessity of teaching management.

3. Robert Owen. Robert Owen and Richard Arkwright led the way in factory layout and design. Their requirements, or principles, emphasized workflow orderliness. New technologies demanded planning power sources and connections, arranging machinery and space for smooth workflow, and reducing confusion through well-placed materials.

4. Andrew Ure. He was deeply concerned with industrial education and provided academic training for fledgling managers in the early days of the factory system.

5. Daniel McCallum. He laid down the following general principles for assuring the New York and Erie Railroad Company’s efficient management. He also developed an org chart and information system for the company. The employees revolted against “Rule 6” he resigned. He patented an arched truss bridge and formed the McCallum Bridge Company in 1857. In 1862, McCallum was asked by U.S. Secretary of War Edwin M. Stanton to manage the nation’s rail traffic during the Civil War. 6. Henry Varnum Poor. He was the eminent editor of the American Railroad Journal and spokesperson for the industry. He took a broader perspective in appraising the industry’s power and vital role in the nation’s daily life. Poor looked for broader principles to overcome the risk of “regarding man as a mere machine, out of which all the qualities necessary to a good servant can be enforced by the mere payment of wages.”

D.

America's nineteenth century witnessed revolutions in transportation and communication.

One result was America's "first big business." What were the results of these "revolutions" in terms of management thought and practice?

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Test Bank Part #1 Advances in communication encouraged producers, suppliers, and distributors to pursue regional and international markets. Improved transportation and communication also made it possible to produce and market in volume; thus, identical items could be produced in large batches or in a continuous process, and companies could seek mass-market distribution.

With growth also came the need to formalize communications, especially in written memos and reports. JoAnne Yates has shown how, between 1850 and 1920, business communication changed as oral and informal modes of communication gave way to written documents. During this era, however, there was no real appreciation of the skills required to be a successful manager. A great deal of emphasis was placed on technical or financial knowledge, but very little on how to plan, organize, staff, motivate, and control.

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Test Bank Part 2 A.

B.

Frederick Taylor's first published paper (1895) was titled “A Piece-Rate System; Being a Step Toward a Partial Solution of the Labor Problem.”

What was this “problem”? What did Frederick Taylor propose as solutions? Finally, what contributions did Taylor make that would be considered important to management theory and practice today?

In a paper presented to the ASME in 1895, Taylor criticized both the Towne and Halsey plans and proposed a new alternative.23 He felt that a weakness in both the Towne and Halsey plans was that they took present worker output as their performance standard. In contrast, Taylor proposed a new three-part plan: (1) observation and analysis through time study to set output standards and pay rates; (2) a differential piecework system in which a higher rate per piece is paid if work is done in less time than specified, and a lower rate is paid if it is done in more time than allowed; and (3) “paying men and not positions.”

Identify and discuss briefly the following ideas/events as they relate to Frederick W. Taylor: (a) Mental Revolution (b) Setting standards (c) Exception principle (d) Functional foremen (e) Eastern Rate Case (f) “First Class Man”

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Test Bank Part 2 Mental Revolution. Taylor declared: “The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee.” To make this a reality, he called for a “mental revolution” where “both sides take their eyes off the division of surplus . . . and together turn their attention toward increasing the size of the surplus.”

Setting standards. A fifth area of concern, and of greater criticism, was the use of time study and task setting. Standards and performance incentives were often established after only a cursory inquiry. This led to inaccuracies and injustices. In general, time-study men were poorly trained and inexperienced, and often set rates based on management’s desires rather than true scientific inquiry and observation. Piece-rate pay plans also came under scrutiny. The investigators found no pure adoptions of the Taylor, Gantt, or Emerson piece-rate pay plans.

Exception principle. Taylor believed that all authority should be based on knowledge, not position or title, and that the exception principle would improve efficiency by allowing managers time to focus on their most pressing and significant concerns over both the long and short term.

Functional foremen. Taylor saw unevenness in traditional shop management and foremen who lacked the special knowledge necessary to plan, teach, and supervise workers. As a remedy, he proposed that workers be instructed by teachers known as “functional foremen,” who would bring specialized knowledge to the workplace. Taylor sought “expert teachers”—chosen for their knowledge, skill, and experience—to become functional foremen. One teacher (the inspector) was responsible for output quality; a second teacher (the gang boss) was in charge of all work up to the time it was machined; a third teacher (the speed boss) took over while work was being machined, and determined the proper tools and cutting operations; and a fourth teacher (the repair boss) was in charge of machinery care and maintenance.

Eastern Rate Case. In response to a request for a rate hike, Brandeis took up the cause of the shippers who would be affected by the proposed increase. In doing so, he brought about an unusual series of hearings, known as the “Eastern Rate Case,” which thrust Taylor’s task management into the public eye. This resulted in task management getting some extraordinary free publicity.

“First Class Man”. Taylor defined what it meant to be a “first-class man” by describing a workman who did not meet his definition: I believe the only man who does not come under “first class” as I have defined it, is the man who can work and won’t work. I have tried to make it clear that for each type of workman some job can be found at which he is

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Test Bank Part 2 “first class,” with the exception of those men who are perfectly well able to do the job but won’t do it.

C.

How did Henri Fayol's approach to management compare with Taylor's?

How did Fayol's solutions differ? Identify and describe Fayol's assumptions and the components of his theory of management. Finally, what remnants of Fayol's ideas exist today in management theory and practice?

D.

Concerning Henri Fayol: (a) Why was management “theory” needed? (b) What assumptions did he make about the activity of management? (c) What were his “elements” and how did they fit into his theory? (d) What were “principles” supposed to do for managers? (e) Contemporary writers have proposed “evidence-based management” as a means to narrow the theory-practice divide. What would Fayol suggest?

E.

Discuss industrial psychology and industrial sociology in terms of: (a) their origins (names of contributing and/or pioneering individuals should be mentioned); (b) how were these disciplines similar and how did they differ?(c) what impact did they have on subsequent management theory and practice?

Two avenues were described as means to give workers a “voice,” that is, to participate somehow in managerial decision making. Identify these and discuss their merits.

In his book Industrial Goodwill, Commons wrote of the need for workers to unionize so that they would have a “voice” in workplace governance.

Hoover felt that shop councils were antiunion. He felt that shop councils provided an alternative for workers who wished to have a voice and a choice in the nation’s economic system.

Choose any three of the following individuals and write a brief essay that identifies their contributions to management thought. Justify (defend) your choice; that is, why did you feel the persons you chose were significant? (a) Lillian Gilbreth (b) Henry L. Gantt (c) Hugo Münsterberg (d) Whiting Williams (e) Harrington Emerson (f) Max Weber (g) Frank Gilbreth Student answers will vary.

F.

G.

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Test Bank Part 3 A.

Regarding the Hawthorne studies, discuss how the first relay-assembly test room was formed, what changes were made, and the findings from this part of the studies. Are these findings a historic relic or do they have any relevance for today?

This experiment was designed to determine changes in group productivity based on job conditions. Two women were selected. They were asked to pick four more women. They worked in a separate room.

The following changes were made: 1. Incentive pay was based on the other five women rather than a larger group. Productivity increased.

2. Short rest periods were added. Productivity increased.

3. Rest periods were shortened but more were added. Productivity decreased.

4. The number of rest periods was reduced but coffee and snacks were provided. Productivity increased.

5. Working hours were reduced. Productivity increased.

B.

C.

D.

Student discussion of relevance for today will vary.

What happened at the Hawthorne works? Did these outcomes match Elton Mayo’s interpretation? What lessons can we learn from Hawthorne in our studies of work and workers?

In short, the outcome of the Hawthorne studies was a call for an additional set of managerial skills. Technical skills alone were insufficient to cope with the employee sentiments and behavior discovered at Hawthorne. A second set of skills was required: first, diagnostic skills in understanding human behavior; and second, interpersonal skills in counseling, motivating, leading, and communicating with employees. The economic logic of efficiency must be balanced with an appreciation for the full range of employee sentiments.

Student discussion of lessons for study of work and workers will vary.

Mary Follett has been called a “most modern management expert.” Do you agree that her ideas could be used in labor-management negotiations today? In settling political differences?

Student answers will vary.

Chester Barnard wrote of limits that bound rational decision-making, the need for moral leadership, and organization theory. Examine recent management literature in its scholarly journals for the frequency of mentions of Barnard. Do his ideas influence contemporary research in organization theory, ethics, and/or decision-making?

Student answers will vary.

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Test Bank Part 4 A.

B.

C.

D.

E. F.

The ideas of Henri Fayol enjoyed a “renaissance” in the modern era.

Then, some other interpretations of what managers did emerge? Identify at least one other study of managerial work and what was found.

Evaluate the status of Fayol's ideas today -- i.e. are they generally valid, neglected, rejected, or what?

Student answers will vary.

In your readings assigned to your class, ask for an assessment of how practical, that is, useful to a practicing manager, this article will be. Do you as an instructor, subscribe to a “theory-practice divide?” Do your students?

Student answers will vary.

The nature of jobs has been changing for centuries. The Luddites sought to destroy textile machines believed to be depriving them of their livelihood. Robert Owen advocated “spade husbandry” to create jobs.

Discuss contemporary beliefs about the anticipated impact of robots, drones, and other automated devices will have. Should these be resisted?

How to accommodate change? Is there a lesson from history for us?

Student answers will vary.

As the nature of working changes, how will that influence our views of motivation?

Student answers will vary.

In a similar fashion, how will our notions about leadership evolve?

Student answers will vary.

Different individuals have reached different conclusions about the nature and exercise of authority. With history as your guide, identify some of these and examine each as to its usefulness. Conclude with an expression of your understanding of authority as it relates to management and to leadership.

Student answers will vary.

Evolution of Management Thought

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