The Evolution of Management Thought
TRUE/FALSE
1. Founded in 1623, the Zildjian Company attributes its success to good management principles and an
appreciation for the company legacy that keeps everyone focused on preserving the business for the
long haul.
ANS: T
2. The Zildjian Company has an estimated 65% of the world cymbal market. They attribute this success
to sticking with one product and never making changes.
ANS: F
3. When studying management, history and historical perspective do not matter because management is a
new, forward-looking field.
ANS: F
4. We gain a better understanding of the present by taking a historical perspective.
ANS: T
5. Women and men from around the globe have been contributors to management theory and practice.
ANS: T
6. Business management courses were not taught in the U.S. until the end of World War II.
ANS: F
7. In early cultures, management was something one learned by word of mouth and trial and error, rather
than something one studied.
ANS: T
8. Management has been practiced for thousands of years.
ANS: T
9. The field of management is presently experiencing information overload.
ANS: T
10. The interdisciplinary nature of management is a principal cause of the information explosion in
management theory.
ANS: T
11. The only universally accepted theory of management is the systems approach.
ANS: F
12. The universal process approach is the oldest, and one of the most popular, approaches to management.
ANS: T
13. According to the universalist or functional approach to management, administration of public and
private organizations requires different processes.
ANS: F
14. Chain of command refers to who is ultimately responsible for getting things done.
ANS: F
15. According to Henri Fayol, a manager’s job can be divided into the following five areas of
responsibility: planning, organizing, leading, motivating, and controlling.
ANS: F
16. According to Henri Fayol’s unity of command principle, each employee should receive orders from
only one superior..
ANS: T
17. According to Fayol's centralization principle, the right to give orders must be centralized and the
responsibility decentralized.
ANS: F
18. Subordinates should observe the formal chain of command unless expressly authorized by their
respective superiors to communicate with each other. Fayol called this the scalar chain.
ANS: T
19. There is virtually no evidence of Henry Fayol's universal process approach in today's management
literature.
ANS: F
20. The operational approach to management focuses on improving efficiency and quality.
ANS: T
21. Frederick Taylor's scientific management movement involved standardization, time and task study,
systematic selection and training, and pay incentives.
ANS: T
22. As an advocate of employee rights, Frederick Taylor believed in letting workers determine their own
way of doing tasks.
ANS: F
23. According to scientific management, workers produced more when paid by the hour.
ANS: F
24. Henry L. Gantt humanized Frederick Taylor's differential piece-rate plan by combining a guaranteed
day rate (minimum wage) with an above-standard bonus.
ANS: T
25. Frank and Lillian Gilbreth were dedicated to finding the one best way to do every job.
ANS: T
26. A Pareto analysis can be used to separate major problems from minor ones by determining the 20
percent of possible causes leading to 80 percent of all problems.
ANS: T
27. According to Armand V. Feigenbaum, quality is determined by the customer.
ANS: T
28. The concept of a fishbone diagram, or doing it right the first time, was promoted by Philip B. Crosby.
ANS: F
29. Whereas scientific management is limited largely to hand labor and machine shops, operations
management specialists apply their expertise to all types of production and service operations.
ANS: T
30. Frederick Taylor and the early scientific management proponents have been praised for viewing
workers as complex beings, not mindless machines who work just for money.
ANS: F
31. Advocates of the behavioral approach to management argue that profits must be the central focus of
organized activity, since without profits the organization cannot exist.
ANS: F
32. The legal formation of labor unions was an important historical influence behind the human relations
movement.
ANS: T
33. The idea that "satisfied employees would be less inclined to join unions" was proposed by early human
relations theory after the Wagner Act was passed.
ANS: T
34. Frederick Taylor's scientific management studies began in 1924 in a Western Electric plant near
Chicago.
ANS: F
35. The performance of a select group of employees in the Hawthorne studies tended to improve, no
matter how the physical surroundings were manipulated.
ANS: T
36. The Hawthorne studies concluded that productivity was affected less by changes in work conditions
than by the attitudes of the workers.
ANS: T
37. Mary Parker Follett viewed organizations as technical systems.
ANS: F
38. Douglas McGregor's Theory Y assumes people are energetic and creative individuals capable of
achieving great things if given the opportunity.
ANS: T
39. Douglas McGregor's Theory Y assumes that most will only do as their told and that employees prefer
to be directed.
ANS: F
40. The idea that most people dislike work, and will avoid it when they can, is a Theory Y assumption,
according to McGregor.
ANS: F
41. The behavioral approach to management makes it clear to present and future managers that people are
the key to productivity.
ANS: T
42. Systems theorists studied management by taking things apart.
ANS: F
43. According to Chester Barnard's early systems model, the principal elements in an organization are
willingness to serve, common purpose, and communication.
ANS: T
44. Chester Barnard's systems perspective has encouraged management and organization theorists to study
organizations as complex and dynamic wholes instead of piece by piece.
ANS: T
45. Everything belongs to only one system 3/4 the solar system, according to general systems theory.
ANS: F
46. Given that a battery-powered digital watch runs without help from the outside environment, it could be
described as a relatively closed system, after the battery is in place.
ANS: T
47. Organizational learning advocates say organizations can learn from experience, just as people do.
ANS: T
48. A commonality between chaos theory and organizational learning is the concept that systems are
influenced by feedback.
ANS: T
49. Complex adaptive systems cannot be changed.
ANS: F
OBJ: LO: 2-6
p. 52
50. The most significant contribution of contingency theory has been the identification of the one best way
to manage.
ANS: F
OBJ: LO: 2-6
p. 54
51. According to the contingency approach, different situations require different managerial responses.
ANS: T
OBJ: LO: 2-6
p. 54
52. The contingency approach to management amounts to a purely situational view.
ANS: F
OBJ: LO: 2-6
p. 54
53. The three characteristics of the contingency approach are a multivariate approach, an open-system
perspective, and a practical research orientation.
ANS: T
OBJ: LO: 2-6
pp. 54-55
54. Closed-system thinking is fundamental to the contingency view.
ANS: F
OBJ: LO: 2-6
p. 55
55. Bivariate analysis is a research technique used to determine how a combination of variables interacts
to cause a particular outcome.
ANS: F
OBJ: LO: 2-6
p. 55
56. The contingency approach is strictly theoretical 3/4 not research-oriented.
ANS: F
OBJ: LO: 2-6
pp. 54-55
57. Practical and relevant multivariate analyses are what contingency management theorists strive to
carry out.
ANS: T
OBJ: LO: 2-6
p. 55
58. Management theory probably will not evolve beyond the contingency approach.
ANS: F
p. 55
OBJ: LO: 2-6
59. The contingency approach is a helpful addition to management thought because it emphasizes
situational appropriateness.
ANS: T
OBJ: LO: 2-6
pp. 54-55
60. In order to avoid the quick-fix mentality, which makes management by best-seller so tempting,
managers should ensure that recommendations are based on science or, at least, on some form of
rigorous documentation, rather than purely on advocacy.
ANS: T
OBJ: LO: 2-7
p. 58
MULTIPLE CHOICE
61. The Zildjian Company’s key to success is
a. their secret strategy
b. good management practices
c. avoiding risky R&D (research and development)
d. buying their competitors
e. their location
ANS: B
pp. 35-36
62. The Zildjian Company has achieved long-term success in part, because they are guided by their core
values. Which of the following is NOT one of their core values?
a. innovation
b. craftsmanship
c. avoiding risk taking
d. empowering employees
e. customer collaboration
ANS: C
p. 35
63. Where did the pioneering contributors to management theory and practice come from?
a. Around the globe
b. The United States
c. The Western Hemisphere
d. The Third World countries
e. The Eastern Hemisphere
ANS: A
NAT:
p. 37
BUSPROG: Diversity
64. As an area of academic study, management is essentially a product of
a. the sixteenth century.
b. the British system.
c. the twentieth century.
d. trial and errors.
e. corporate America.
ANS: C
p. 37
65. Which of these best describes the body of management knowledge today?
a. Japan-dominated
b. Disappearing
c. Experiencing information overload
d. Severely limited
e. Unified
ANS: C
p. 38
KEY: Bloom's: Evaluation
66. Steve Wozniak, cofounder of Apple sets the record straight on many factual errors written about him
including that he dropped out of college (he didn’t). His story reminds managers that they should
a. research only online using sites such as Wikipedia
b. always trust data that has been published in books
c. validate the real story by going to the person who is the subject of the article
d. always trust data that has been published in journals
e. validate the real story by going to the person writing the article or publication
ANS: C
p. 38
67. The field of management can be described as
a. interdisciplinary
b. applied social science
c. little more than common sense
d. highly scientific
e. seriously out of date
ANS: A
p. 38
68. Which of the following is not one of the approaches to management discussed in the text?
a. The systems approach
b. The contingency approach
c. The universal process approach
d. The multinational approach
e. The behavioral approach
ANS: D
p. 39
69. Which approach is the oldest, and one of the most popular, approaches to management thought?
a. Contingency
b. Universal process
c. Operational
d. Systems theory
e. Behavioral
ANS: B
p. 39
70. The functional approach to management is also known as the
a. systems approach.
b. behavioral approach.
c. excellence approach.
d. operational approach.
e. universal process approach.
ANS: E
p. 39
71. The universal process approach assumes that
a. managing in public and private organizations is basically the same.
b. small organizations are hardest to manage.
c. management is not practiced in small organizations.
d. managing in public and private organizations is completely different.
e. it is more difficult to manage public organizations.
ANS: A
p. 39
72. Henry Fayol’s 14 Universal Principles of Management includes ___________, the principle that
specialization of labor is necessary for organizational success.
a. discipline
b. authority
c. the chain of command
d. the division of work
e. the unity of direction
ANS: D
p. 40
73. ____ refers to who is ultimately responsible for getting things done.
a. Specialization of labor
b. Chain of command
c. Communication
d. Delegation
e. Authority
ANS: E
p. 40
74. Frenchman Henri Fayol's management writings were influenced by
a. Chester I. Barnard.
b. his thirty years as a college professor.
c. his experience as an administrator.
d. his military experience.
e. his wife, Mary Parker Follett.
ANS: C
pp. 39-40
75. ____ is one of Henry Fayol's five functions or areas of managerial responsibility.
a. Cooperation
b.
c.
d.
e.
Control
Optimization
Leading
Communicating
ANS: B
p. 40
76. Imagine that you work for Laura Rice. She believes that you will be a devoted and loyal employee if
she treats you with a combination of kindliness and justice. This belief refers to which of Henry
Fayol's principles of management?
a. Equity
b. Stability and tenure of personnel
c. Centralization
d. Scalar chain
e. Discipline
ANS: A
p. 40
STA: DISC: Individual Dynamics
77. Chris Randert, the CEO of Randert Printing Company, remarked in a recent speech that specialization
of labor will be necessary for his company's success. Which of Henry Fayol's principles of
management was he referring to?
a. Unity of command
b. Division of Work
c. Unity of direction
d. Scalar chain
e. Authority
ANS: B
p. 40
STA: DISC: Individual Dynamics
78. Which one of these is NOT one of Henry Fayol's 14 universal principles of management?
a. Esprit de corps
b. Equity
c. Authority
d. Diversity
e. Centralization
ANS: D
p. 40
79. To reduce employee confusion, Star Cruise Company recently instituted a policy stating that an
employee should receive orders from only one supervisor. Which of Henry Fayol's principles of
management relates to this policy?
a. Unity of command
b. Unity of purpose
c. Scalar chain
d. Authority
e. Esprit de corps
ANS: A
p. 40
80. Which of Henry Fayol's principles indicates that the right to give orders must accompany
responsibility?
a. Unity of direction
b. Discipline
c. Unity of command
d. Scalar chain
e. Authority
ANS: E
p. 40
81. Which of Henry Fayol's principles might help a home building company that is very uncoordinated
and unfocused because everyone is authorized to work with complete autonomy?
a. Initiative
b. Unity of direction
c. Scalar chain
d. Authority
e. Stability and tenure of personnel
ANS: B
p. 40
82. According to Henry Fayol's ____ principle, harmonious effort among individuals is the key to
organizational success.
a. unity of direction
b. scalar chain
c. equity
d. unity of command
e. esprit de corps
ANS: E
p. 40
83. When Laura, a service manager at a graphic design company shared with her boss, "This was a great
week. While you were on vacation we had a power outage that shut down the office. However, I
quickly formulated and implemented a plan for everyone in the design department to work from home
so we still met all of our deadlines.” Laura’s actions are an excellent example of Henry Fayol's
__________ principle?
a. Esprit de corps
b. Centralization
c. Order
d. Initiative
e. Scalar chain
ANS: D
p. 40
STA: DISC: Individual Dynamics
84. The ____ approach is useful because it specifies generally what managers should do, while the other
approaches help explain why and how.
a. operational
b. functional
c. systems
d. contingency
e. behavioral
ANS: B
p. 41
85. The operational approach, by definition, is oriented toward what type of management?
a. Personnel
b. Production
c. Accounting
d. Finance
e. Marketing
ANS: B
p. 41
86. _________ is involved when performance standards are developed on the basis of systematic
observation and experimentation.
a. Fayol's universal principle
b. Therbligs
c. Gantt chart
d. Total quality control
e. Scientific management
ANS: E
p. 41
87. ____ is one of the key elements that captures the spirit of scientific management.
a. Capitalism
b. Communication
c. Experimentation
d. Cooperation
e. Indoctrination
ANS: C
p. 41
88. Which of the following is NOT an area that Frederick W. Taylor focused his work on?
a. Standardization
b. Time and task study
c. Human relations study
d. Systematic selection and training
e. Pay incentives
ANS: C
89. Kevin Sweeney a manager at Mixed Metals Manufacturing, recently posted data for employees on the
optimum cutting tool speeds and the rate at which stock should be fed into machines for each job. This
exemplifies which of Frederick W. Taylor's areas of study?
a. Human relations study
b. Time and task study
c. Selection and training
d. Standardization
e. Pay incentives
ANS: D
90. In an effort move the greatest amount of material in a day, what did Frederick W. Taylor do when his
studies revealed the optimum shovel load to be 21 pounds?
a. Automated the process to eliminate human labor
b. Invented a steam-powered shoveling machine
c. Suggested employees bring their own shovels to work
d. Replaced workers' shovels with specialized company shovels
e. Replaced all the shovelers with harder workers
ANS: D
p. 42
91. During Frederick W. Taylor's pig iron handling experiments, he claims to have dramatically improved
output by
a. having the workers rest more than they worked.
b. cutting the size of the standard iron "pig" in half.
c. eliminating half the walking distance.
d. automating the process to eliminate human labor.
e. hiring only weight lifters.
ANS: A
p. 42
92. According to Frederick W. Taylor, above anything else, workers want ____ from their employers?
a. interesting work
b. high wages
c. friendly treatment
d. participation in decision making
e. clean and safe working conditions
ANS: B
p. 42
93. The ____ assumption led Frederick W. Taylor to believe that piece rates were important to improved
productivity.
a. social network
b. behavioral
c. economic man
d. irrational man
e. systems approach
ANS: C
p. 42
94. Inspired by Frederick W. Taylor's time studies and motivated by a desire to expand human potential,
Frank and Lillian Gilbreth turned ____ into an exact science.
a. human relations
b. motion study
c. motivation
d. labor relations
e. employees
ANS: B
p. 43
95. What did Frank and Lillian Gilbreth mean when using the term "therbligs"?
a. Types of employment experience
b. Units of time
c. Hand motions such as grasp and hold
d. Bricks and morter movement
e. Movements for folding cotton cloth
ANS: C
p. 43
96. Henry L. Gantt humanized Frederick W. Taylor's differential pay system by
a. paying everyone the same.
b. paying employees in cash.
c. introducing a minimum wage.
d. eliminating bonuses.
e. introducing hourly wages.
ANS: C
p. 44
97. Henry L. Gantt urged management to concentrate on service rather than ____ and emphasized the
importance of ____.
a. manufacturing; profits
b. profits; the human factor
c. profits; the production factor
d. manufacturing; communication
e. security; profits
ANS: B
p. 44
98. In the United States, advice from quality advocates finally began to sink in during the
a. 1950s.
b. 1960s.
c. 1970s.
d. 1980s.
e. 1990s.
ANS: D
p. 44
99. Walter A. Shewart, a former Bell Laboratories employee is recognized for introducing?
a. Differential piece-scale system
b. Focus on internal customers
c. Pareto Analysis
d. Zero defect
e. The concept of statistical quality control
ANS: E
p. 44
100. Who among the following was NOT a pioneering advocate of quality?
a. Mary Parker Follett
b. Walter A. Shewhart
c. W. Edwards Deming
d. Kaoru Ishikawa
e. Joseph M. Juran
ANS: A
pp. 44-45
101. Marco is a production manager at a boat manufacturing facility. He recently told his production
employees that they have the authority to stop the production line if they spot problems. This
exemplifies the approach of which quality advocate?
a. Kaoru Ishikawa
b. W. Edwards Deming
c. Philip B. Crosby
d. Frederick W. Taylor
e. Peter Drucker
ANS: B
pp. 44-45
102. Kaoru Ishikawa included ______________in his expanded idea of customers.
a. primarily suppliers
b. competitors
c. hourly employees only
d. external customers only
e. both internal and external customers
ANS: E
p. 44
103. A popular problem-solving tool developed by Kaoru Ishikawa is
a. the Pareto analysis.
b. the EOQ model.
c. the zero-defect system.
d. the fishbone diagram.
e. linear programming.
ANS: D
p. 44
104. What sort of improvement did W. Edwards Deming recommended for all types of operations?
a. Segmented
b. Continuous
c. Economic
d. Training
e. Parallel
ANS: B
105. Which of these is also known as the 80/20 rule?
a. Linear programming
b. Contingency planning
c. Pareto analysis
d. Fishbone analysis
e. Strategic scanning
pp. 44-45
ANS: C
p. 45
106. Who developed the concept of total quality control?
a. W. Edwards Deming
b. Philip B. Crosby
c. Joseph M. Juran
d. Kaoru Ishikawa
e. Armand V. Feigenbaum
ANS: E
p. 45
107. The ____, according to Armand V. Fiegenbaum, is the one who ultimately determines quality.
a. customer
b. competitor
c. top management
d. government
e. employee
ANS: A
p. 45
108. Which concept most closely parallels Philip Crosby's idea of zero defects.
a. Do it right the first time
b. Find lots of reliable suppliers
c. Listen to the customer
d. Involve the entire organization
e. Get top-management support for quality improvement
ANS: A
KEY:
p. 45
Bloom's: Evaluation
109. Norske Skog, a Norwegian paper maker used _______________ to enable managers to study the
business with a new level of detail which ultimately led improved efficiency and effectiveness.
a. a model of its global operations built by two math whizzes
b. a model of its unionization and labor relations built by Kare Leira
c. an us-versus-them approach to union-management relations
d. a differential piece-rate plan
e. a traditional piece-rate plan
ANS: A
p. 46
110. ____ is defined as the process of transforming material and human resources into useful goods and
services.
a. Contingency management
b. Scientific management
c. Behavioral management
d. Operations management
e. Quality control management
ANS: D
p. 46
111. ____ managers could be called the frontline troops in the battle for productivity growth.
a. Contingency
b. Scientific
c. Operations
d. Upper-level
e. New
ANS: C
p. 46
112. An important post-World War II outgrowth of the operational approach is
a. operations management.
b. scientific management.
c. contingency management.
d. quality control management.
e. behavioral management.
ANS: A
p. 45
113. Advocates of the _______________ approach to management believe that ____________ should be
the central focus of organized activity.
a. operations; quality
b. scientific management; functions
c. universal process; technology
d. quality control; suppliers
e. behavioral; people
ANS: E
p. 46
114. Which of these was a concerted effort among theorists and practitioners to make managers more
sensitive to their employees' needs?
a. Operations approach
b. Systems movement
c. Human relations movement
d. Universal process approach
e. Excellence in attributes management
ANS: C
p. 46
115. Which of these helped support the human relations movement?
a. General systems theory
b. Fayol's universal principles
c. Gantt charts
d. Statistical process control
e. The threat of unionization
ANS: E
p. 46
116. When the Wagner Act was passed in 1935 legalizing collective bargaining, business managers began
adopting morale-boosting human relations techniques as a(n)
a.
b.
c.
d.
e.
motivator.
way to avoid pay raises.
union-avoidance tactic.
experiment in scientific management.
legal requirement.
ANS: C
p. 47
117. Who cautioned managers that emotional factors were a more important determinant of productive
efficiency than were physical and logical factors?
a. Elton Mayo
b. W. Edwards Deming
c. Henry L. Gantt
d. Philip B. Crosby
e. Chester I. Barnard
ANS: A
p. 47
118. In the Hawthorne studies, what variable was found to be the most significant relative to worker
productivity?
a. Labor union activities
b. Size of the work group
c. Pay levels
d. Lighting
e. Relations between employees, peers, and supervisors
ANS: E
p. 47
119. Jeff believes that, as a manager, cooperation, a spirit of unity, and self-control are the keys to both
productivity and a democratic way of life. This philosophy exemplifies the work of
a. Mary Parker Follett.
b. Frederick W. Taylor.
c. W. Edwards Deming.
d. Douglas McGregor.
e. Chester I. Barnard.
ANS: A
p. 48
120. We can credit the Hawthorne studies with turning management theorists away from the ____ model
and toward the ____ model of the average working person.
a. economic person; social person
b. hedonistic person; economic person
c. social person; economic person
d. psychological person; political person
e. political person; social person
ANS: A
p. 47
121. What did Mary Parker Follett urge managers to do?
a. Motivate rather than simply demand performance
b.
c.
d.
e.
Adopt a Theory X view of workers
Ignore the findings of the Hawthorne studies
Get rid of the traditional hierarchy of authority
Share profits equally with workers
ANS: A
p. 48
122. Emily Jefferson is a supervisor for a local bank who sums up her management philosophy by saying
"My people are basically lazy and it is my job to tell them what, when, and how to do things. In fact,
they want to be told what to do." What label would McGregor have applied to Ms. Jefferson’s
management style?
a. Theory Z
b. Ineffective
c. Theory X
d. Task-motivated
e. Theory Y
ANS: C
p. 48
STA: DISC: Individual Dynamics
123. Chey, a district manager at Direct Divisions Inc., remarks that "my employees are creative,
imaginative, and capable of self-direction and self-control." What label would McGregor have applied
to Chey’s management style?
a. Theory Z
b. Idealistic
c. Relations-motivated
d. Theory X
e. Theory Y
ANS: E
p. 48
STA: DISC: Individual Dynamics
124. American Express experienced a 10% increase to service margins in their global customer service
division’s call center by revamping the division with the theory: __________.
a. shorter customer calls leads to greater productivity
b. happier employees mean happier customers
c. standardized schedules will create greater consistency
d. focus more on outcomes and less on attitude
e. shift from employee centered to technology centered for customer satisfaction
ANS: B
p. 48
125. Which approach makes it clear to managers that people are the key to productivity?
a. Scientific management
b. Behavioral
c. Operations management
d. Contingency
e. Systems
ANS: B
p. 49
126. Andrea Wells believes that many people in the general population have imagination, ingenuity, and
creativity. This is what kind of an assumption?
a. Theory X
b. Theory Y
c. Type A
d. Type B
e. Positivist concept
ANS: B
p. 48
STA: DISC: Individual Dynamics
127. How has traditional human relations doctrine been criticized?
a. As a closed system
b. As too complex
c. As vague and simplistic
d. As monocultural
e. As old-fashioned
ANS: C
p. 50
128. Management is studied by ____ theorists by putting things together and assuming that the whole is
greater than the sum of its parts.
a. universal process
b. systems
c. human relations
d. behavioral
e. scientific management
ANS: B
p. 50
129. Since management is not practiced in a vacuum, systems theorists recommend inside-out or
a. a one way process.
b. a closed environment.
c. command-and-control technique.
d. taking a unionized approach.
e. synthetic thinking.
ANS: E
p. 50
130. According to Chester I. Barnard, willingness to serve, common purpose, and _____________ are the
principal elements in an organization or cooperative system.
a. Interpersonal trust
b. Labor-management cooperation
c. Communication
d. Human motivation
e. Individual needs
ANS: C
p. 50
131. According to Chester I. Barnard's early systems theory, a natural gap exists between ____ and the
organization's common purpose.
a.
b.
c.
d.
e.
personal needs and motives
standard administrative procedures
technology
group norms
the individual's willingness to serve
ANS: E
p. 50
132. A(n) ____ is a self-sufficient entity, whereas, a(n) ____ depends on the surrounding environment for
survival.
a. universal system; specific system
b. open system; closed system
c. general system; closed system
d. open system; general system
e. closed system; open system
ANS: E
p. 51
133. Organizations should be considered ____ systems.
a. open
b. specialized
c. closed
d. functional
e. independent
ANS: A
p. 51
134. ____ portrays the organization as a living and thinking system.
a. Organizational learning
b. Matrix theory
c. Scientific management
d. Operations management
e. Theory Y
ANS: A
p. 52
135. Which statement most accurately captures the meaning of chaos theory?
a. There is unknowable complexity in the natural world.
b. There can be failure from apparent success.
c. There is no rational order in the natural world.
d. There is order among seemingly random patterns.
e. There is complete predictability in the natural world.
ANS: D
KEY:
p. 52
Bloom's: Evaluation
136. Managers now have greater appreciation for the importance of seeing the whole picture because of the
influence of the
a. systems approach.
b. behavioral approach.
c. contingency approach.
d. matrix theory.
e. multivariate analysis.
ANS: A
p. 53
137. Olivia is a storeowner who tells a management class that she tries to match the appropriate
management technique to the situation. What is her general approach to management?
a. Contingency
b. Excellence
c. Scientific management
d. Universal process
e. Systems
ANS: A
OBJ: LO: 2-6
STA:
pp. 54-55
DISC: Individual Dynamics
138. The contingency approach lies midway between the systems approach and
a. closed systems theory.
b. chaos theory.
c. the purely situational approach.
d. the excellence approach.
e. organizational behavior.
ANS: C
OBJ: LO: 2-6
p. 54
139. A characteristic of the contingency approach to management is
a. bivariate analysis.
b. open-system perspective.
c. closed-system view.
d. highly theoretical research orientation.
e. a Theory X view.
ANS: B
OBJ: LO: 2-6
p. 55
140. Which of the following best describes the contingency approach?
a. Differential management
b. Managerial similarity
c. Continuous improvement
d. Situational management
e. One best way to manage
ANS: D
OBJ: LO: 2-6
pp. 54-55
141. Jeremiah Townsley has an open-system perspective, a practical research orientation, and uses a
multivariate decision making process. Jeremiah uses a(n) ____ management approach.
a. scientific
b. management-by-best-seller
c. quality control
d. contingency
e. human relations
ANS: D
OBJ: LO: 2-6
pp. 54-55
142. Regarding the evolution of management thought, the contingency approach is
a. open system analysis.
b. the final word.
c. only the beginning.
d. a promising step.
e. a confusing addition.
ANS: D
OBJ: LO: 2-6
KEY:
p. 55
Bloom's: Evaluation
143. Authors of business best-sellers have been criticized by researchers for fostering a ____ mentality.
a. closed-system
b. quick-fix
c. success-at-any-cost
d. wasteful
e. multinational
ANS: B
OBJ: LO: 2-7
p. 57
144. To avoid the quick-fix mentality, managers are advised to read which sort of management journals?
a. Those reporting nonquantitative studies
b. Ones that report highly controlled laboratory studies
c. Those reporting the results of public opinion polls
d. Ones specifying how-to-do-it procedures
e. Ones that translate research into practice
ANS: E
OBJ: LO: 2-7
pp. 57-58
145. Craig M. McAllaster's critique of management by best seller warns of
a. pie-in-the-sky academic research.
b. get-rich-quick schemes.
c. one-size-fits-all solutions.
d. outdated research.
e. too much theory.
ANS: C
OBJ: LO: 2-7
p. 57
146. Which approach to management do successful managers tend to use?
a. Modified contingency
b. Closed systems
c. Mixed bag
d. Incremental
e. Contingency
ANS: C
OBJ: LO: 2-7
p. 59
147. To develop your own personally relevant and useful approach to management begin by blending
_______, the experience and advice of others, and your own experience.
a. systems
b. technology
c. theory
d. quality
e. tasks
ANS: C
OBJ: LO: 2-7
p. 59
Harriet and Ben
Harriet and Ben recently went to a management conference where they attended sessions on total
quality control, production-oriented management, and employee involvement and employee needs.
Both Harriet and Ben agree on the quality and production-oriented issues; however, they disagree on
employee-related issues. Harriet believes that her employees are responsible and capable of
self-direction and self-control. Ben disagrees with Harriet about her assumptions and argues that most
people prefer to be directed and they avoid responsibility. Both have decided to apply the new lessons
learned from the conference.
148. Refer to Harriet and Ben. The production-oriented management session attended by Harriet and Ben at
the conference falls under which of these approaches to management?
a. The contingency approach
b. The behavioral approach
c. The operational approach
d. The systems approach
e. The universal process approach
ANS: C
pp. 45-46
149. Refer to Harriet and Ben. Harriet and Ben were very impressed by the concept of Total Quality
Control. Who should get historical credit for the concept?
a. Kaoru Ishikawa
b. Armand V. Feigenbaum
c. Joseph M. Juran
d. W. Edward Deming
e. Walter A. Shewhart
ANS: B
p. 45
150. Refer to Harriet and Ben. Harriet's beliefs reflect which one of the labels used by Douglas McGregor
to describe management assumptions about people?
a. Theory X
b. Theory Y
c. Task-motivated
d. Relations-motivated
e. Theory Z
ANS: B
p. 48
151. Refer to Harriet and Ben. Ben's argument that most people prefer to be directed would be classified by
McGregor as which of these?
a.
b.
c.
d.
e.
Ineffective
Theory Y
Theory Z
Excellence in management
Theory X
ANS: E
p. 48
152. Refer to Harriet and Ben. A focus on employee needs represents which of these approaches to
management?
a. The contingency approach
b. The behavioral approach
c. The systems approach
d. The operational approach
e. The universal process approach
ANS: B
p. 46
Mountain View Children's Care
Dr. Samantha Wong, chief pediatric physician at Mountain View Children's Care, has been
experimenting with the number and size of patient rooms, and the location of these rooms, to develop
performance standards and efficient operation. In improving her processes, Dr. Wong obtains feedback
from both internal and external customers and advocates the idea of zero defects (every patient must be
served right the first time) to all her partners and nurses. Dr. Wong's personal involvement in all areas
of this pediatric practice appears to be leading the business to success.
153. Refer to Mountain View Children's Care. Dr. Wong is following whose work when she is
experimenting to improve operational efficiency at Mountain View Children's Care?
a. Mayo's human relations movement
b. Chester I. Barnard's contingency theory
c. Philip B. Crosby's systematic management
d. Douglas McGregor's Theory X/Y
e. Frederick W. Taylor's scientific management
ANS: E
p. 41 | p. 43
154. Refer to Mountain View Children's Care. When Dr. Wong obtains feedback from her customers, who
should be credited for the idea of both internal and external customers?
a. Kaoru Ishikawa
b. Joseph M. Juran
c. Walter A. Shewhart
d. Armand V. Feigenbaum
e. W. Edward Deming
ANS: A
p. 44
155. Refer to Mountain View Children's Care. When Dr. Wong advocates the idea of zero defects to her
employees, she is advocating whose idea?
a. Philip B. Crosby
b. Kaoru Ishikawa
c. W. Edward Deming
d. Armand V. Feigenbaum
e. Joseph M. Juran
ANS: A
p. 45
156. Refer to Mountain View Children's Care. Mountain View Children's Care can be best described as
which of these?
a. Open system
b. Independent system
c. Specialized system
d. Closed system
e. Theory X system
ANS: A
p. 51
ESSAY
157. Imagine that you work for one of the top sporting goods retailers in the country. You are considered
one of their top managers so it comes as no surprise that they have asked you to provide guidance and
mentoring to a new manager at another store in your state. When you meet with this person you
quickly discover why they are struggling - they constantly try to find the one best way to do things.
What advice will you give this person to improve their management skills?.
ANS:
Because specific management techniques tend to work better in certain situations, there really is no
one best way to do things. The idea is to fit the management technique to the situation in an "if-then"
manner. Management tools and techniques must be appropriate to the demands of the situation. For
example, flexible and adaptable organizations tend to perform better in unstable and rapidly changing
situations. Reviewing systems, contingency and situational approaches to management will also help
this new manager adapt their style to the organization and her employees.
pp. 54-55
OBJ: LO: 2-6
158. Congratulations! You have been hired by SuperComputers to revamp their customer service call center.
Currently, they reward employees who handle the most calls in the shortest amount of time.
Employees are discouraged from problem solving and instead are directed to only do what their told.
The CEO of SuperComputers is concerned about this work unit as customers are complaining about
poor customer service and unresolved issues. What approach will you take to turn this call center
around? What management theory or theories will you use to improve customer service?
ANS:
Following the example from American Express on page 48, students responses will likely include
multiple theories including the behavioral approach, placing emphasis on the people. Using the
philosophy that happier employees mean happier customers. To address customer dissatisfaction,
students may also incorporate concepts from quality advocates such as Kaoru Ishikawa including both
internal and external customers in the search for improvement. They may also reference Mary
Parker Follett’s belief that managers need to recognize individual employee’s motivators to inspire
performance. They may also infuse a little of McGregor’s Theory Y and suggest eliminating the
Theory X management attitude to help improve employee performance. The approach should
include inviting input and feedback from employees and customers to determine expectations and
identify strategies to provide great service.
p. 39 | p. 55
SHORT ANSWER
159. What would Frenchman Henri Fayol have to say about a computer company's plans to hire a retired
army general as its new chief executive officer?
ANS:
Because Fayol believed management is a universal process that is the same everywhere, regardless of
the purpose of the organization, he would probably say the general would do a good job. The general
would perform the same basic managerial functions 3/4 planning, organizing, command, coordination,
and control 3/4 for the computer company that he did in the army. In other words, a good manager in
one situation would likely be a good manager in all situations.
160. How would you suggest that managers avoid the quick-fix mentality that makes management by
best-seller so tempting.
ANS:
To avoid the quick-fix mentality, managers should: 1) Remain current with literature in the field,
particularly with journals that translate research into practice. 2) Ensure that concepts applied are
based on science or, at least, on some form of rigorous documentation, rather than purely on advocacy.
3) Be willing to examine and implement new concepts, but first do so using pilot tests with small units.
4) Be skeptical when simple solutions are offered; analyze them thoroughly. 5) Constantly anticipate
the effects of current actions and events on future results.
161. Why is it appropriate for managers to view their organizations as open systems?
ANS:
Open systems, as opposed to self-sufficient closed systems, can survive only through active interaction
with the environment. Organizations are open systems because they interact constantly with the
surrounding environment; they are not self-sufficient closed systems. By viewing organizations as
open systems, managers can develop an appreciation for important organization-environment
interactions (e.g., acquiring labor, money, energy, and resources and dispensing products, services, and
wastes).
162. Briefly explain Frederick W. Taylor's important scientific management contributions.
ANS:
First, Taylor's metal-cutting experiments helped him develop standard operating procedures for
machine shops. Second, his time-and-task shoveling experiments identified the most efficient shovel
for each task. Third, Taylor's systematic selection and training of pig iron handlers demonstrated that
more material could be moved with less effort. Fourth, Taylor's differential piece-rate pay plan gave
above-standard workers an opportunity to earn more per unit. All four approaches significantly
improved productivity.
163. Briefly describe factors that contributed to the rise of the human relations movement?
ANS:
Factors were the threat of unionization, the Hawthorne studies, and the philosophy of industrial
humanism. Managers embraced human relations techniques as a way to stem the rising tide of labor
unions following the passage of the Wagner Act in 1935. The Hawthorne studies at a Chicago-area
Western Electric plant drew management's attention to the impact of worker attitudes and social
interactions on output. Industrial humanists such as Elton Mayo, Mary Parker Follett, and Douglas
McGregor cautioned managers to pay more attention to employee motivation, needs, and emotions.
The Evolution of Management Thought
1.
T
F
Craigie Zildjian is the first women to head the cymbal company bearing her family name.
Ans: True
2.
T
F
Zildjian has a secret strategic formula that has made the firm the world's largest cymbal maker.
Ans: False
3.
T
F
Zildjian's strategy includes bringing artists into the plant so their R&D manager and marketing people can meet directly with them.
Ans: True
4.
T
F
Management is a forward-looking field and history doesn't matter.
Ans: False
5.
T
F
By taking a historical perspective, we can gain a better understanding of the present.
Ans: True
6.
T
F
Contributors to management theory and practice have come from around the globe.
Ans: True
7.
T
F
Management was something one learned, in early cultures, by word of mouth and trial and
error, rather than something one studied.
Ans: True
8.
T
F
Management has been practiced in one form or another for thousands of years.
Ans: True
9.
T
F
The field of management is experiencing information overload.
Ans: True
10.
T
F
The interdisciplinary nature of management is a principal cause of the information explosion
in management theory.
Ans: True
11.
T
F
The contingency approach is the only universally accepted theory of management.
Ans: False
12.
T
F
The oldest and one of the most popular approaches to studying management is the universal
process approach.
Ans: True
13.
T
F
According to the functional approach, the administration of public organizations and the administration of private organizations require distinctly different processes.
Ans: False
Page: 35
14.
T
F
The organizational computer network is referred to as the chain of command.
Ans: False
AACSB Outcomes: C; R
Page: 35
15.
T
F
According to Henri Fayol, the manager's job can be divided into planning, organizing, communicating, motivating, and controlling.
Ans: False
Page: 35
16.
T
F
Coordination is one of Fayol's five universal management functions.
Ans: True
Page: 35
17.
T
F
According to Fayol's unity-of-command principle, each employee should receive orders from
only one superior.
Ans: True
Page: 36
18.
T
F
The right to give orders must be centralized and the responsibility to give order must be decentralized, according to Fayol's centralization principle.
Ans: False
Page: 36
19.
T
F
Fayol's scalar chain stated that subordinates should observe the formal chain of command
unless expressly authorized by their respective superiors to communicate with each other.
Ans: True
Page: 36
20.
T
F
In today's management literature, there is virtually no evidence of Fayol's universal process
approach.
Ans: False
Page: 36
21.
T
F
Fayol's managerial functions teach why and how modern managers behave.
Ans: False
Page: 36
22.
T
F
Throughout its historical development, the operational approach has been technically and
quantitatively oriented.
Ans: True
Page: 37
23.
T
F
The father of scientific management was Elton Mayo.
Ans: False
Page: 37
24.
T
F
Frederick W. Taylor is considered the father of scientific management.
Ans: True
Page: 37
25.
T
F
Standardization, time and task study, systematic selection and training, and pay incentives
were all areas in Taylor's scientific management movement.
Ans: True
Page: 37
26.
T
F
Taylor believed, as a pioneering advocate of employee rights, in letting workers determine
their own way of doing tasks.
Ans: False
Page: 37
27.
T
F
Traditional scientific management held that workers produce more when paid by the hour.
Ans: False
Page: 38
28.
T
F
According to Frank and Lillian Gilbreth, "What the workmen want from their employers
beyond anything else is high wages."
Ans: False
Page: 38
29.
T
F
Taylor's differential piece-rate plan was humanized by Henry L. Gantt by adding a minimum
wage.
Ans: True
Page: 39
30.
T
F
Frank and Lillian Gilbreth were dedicated to finding the one best way to do every job, including tasks they performed at home with their 12 children.
Ans: True
Page: 39
31.
T
F
A "therblig," according to the Gilbreths, was a standard unit of time for measuring productivity.
Ans: False
Page: 38
32.
T
F
Economic Control of Quality of Manufactured Product, written by Walter A. Shewhart, introduced the concept of a fishbone diagram.
Ans: False
Page: 39
33.
T
F
Japan's Kaoru Ishikawa considered both internal and external customers when improving
quality.
Ans: True
Page: 39
34.
T
F
The Pareto analysis was introduced through Deming's book Out of the Crisis.
Ans: False
Page: 40
35.
T
F
Although best known for Pareto analysis, Joseph M. Juran was the first to recommend statistical quality control.
Ans: False
Page: 40
36.
T
F
A Pareto analysis looks for the 20 percent of possible causes that lead to 80 percent of all
problems.
Ans: True
Page: 40
37.
T
F
Quality, according to Armand V. Feigenbaum, is determined by the customer.
Ans: True
Page: 40
38.
T
F
Philip B. Crosby promoted the concept of a fishbone diagram, or doing it right the first time.
Ans: False
Page: 40
39.
T
F
Scientific management often appears unscientific to those who live in a world of genetic engineering and industrial robots.
Ans: True
Page: 40
40.
T
F
Operations management specialists apply their expertise to all types of production and service
operations, whereas scientific management was limited largely to hand labor and machine shops.
Ans: True
Page: 40-41
41.
T
F
Scientific management tends to be broader in scope and application than operations management.
Ans: False
Page: 40
42.
T
F
Taylor and the proponents of early scientific management have been praised for viewing
workers as complex beings, not mindless machines who work just for money.
Ans: False
Page: 40
43.
T
F
Since without profits the organization cannot exist, advocates of the behavioral approach to
management argue that profits must be the central focus of organized activity.
Ans: False
Page: 41
44.
T
F
One important historical influence behind the human relations movement was unionization.
Ans: True
Page: 42
45.
T
F
Proposed by early human relations theory after the Wagner Act was passed was the idea that
satisfied employees would be less inclined to join unions.
Ans: True
Page: 42
46.
T
F
Taylor began his scientific management studies in 1924 at a Western Electric plant near Chicago.
Ans: False
Page: 42
47.
T
F
No matter how the physical surroundings were manipulated, the performance of a select group
of employees in the Hawthorne studies tended to improve.
Ans: True
Page: 42
48.
T
F
The Hawthorne studies concluded that productivity was affected less by changes in work
conditions than by the attitudes of the workers.
Ans: True
Page: 42
49.
T
F
The Hawthorne studies can be credited with turning management theorists away from the
simplistic “social man” model to a more realistic “economic man” model.
Ans: False
Page: 43
50.
T
F
Mary Parker Follett viewed organizations as technical systems.
Ans: False
Page: 43
51.
T
F
Mary Parker Follett was ahead of her time in calling for cooperation, a spirit of unity, and
self-control in the workplace.
Ans: True
Page: 43
52.
T
F
Historians fault Douglas McGregor for advocating a negative view of employees.
Ans: False
Page: 43
53.
T
F
McGregor's Theory Y assumes that people are capable of self-control.
Ans: True
Page: 44
54.
T
F
McGregor's Theory Y assumes that most people prefer to be directed than to exert
self-control.
Ans: False
Page: 44
55.
T
F
According to McGregor, the idea that most people dislike work, and will avoid it when they
can, is a Theory Y assumption.
Ans: False
Page: 44
56.
T
F
The behavioral approach makes it clear to present and future managers that people are the key
to productivity.
Ans: True
Page: 44
57.
T
F
Human relations is a more research-oriented field than organizational behavior.
Ans: False
Page: 44
58.
T
F
Systems theorists studied management by taking things apart.
Ans: False
Page: 45
59.
T
F
The principal elements in an organization, according to Barnard's early systems model, are
willingness to serve, common purpose, and communication.
Ans: True
Page: 45
60.
T
F
Barnard's systems perspective has encouraged management and organization theorists to
study organizations as complex and dynamic wholes.
Ans: True
Page: 45
61.
T
F
According to general systems theory, everything belongs to only one level of system—the
solar system.
Ans: False
Page: 45
62.
T
F
After the battery is in place, a battery-powered digital watch that runs without help from the
outside environment could be described as a relatively closed system.
Ans: True
T
Page: 46
63.
T
F
Because they are independent of their environment, organizations are closed systems.
Ans: False
Page: 46
64.
T
F
According to organizational learning advocates, organizations can learn from experience, just
as people do.
Ans: True
Page: 46
65.
T
F
The concept that systems are influenced by feedback is something at chaos theory and organizational learning have in common.
Ans: True
Page: 47
66.
T
F
Chaos theorists believe it is useless to try to find any order in complex systems such as organizations.
Ans: False
Page: 47
67.
T
F
Complex adaptive systems cannot be changed.
Ans: False
Page: 47
68.
T
F
Complex adaptive systems theory holds that organizational behavior is essentially linear and
predictable.
Ans: False
Page: 47
69.
T
F
Both operations management and organizational behavior have been strongly influenced by
systems thinking.
Ans: True
Page: 48
70.
T
F
According to the contingency approach, different situations require different managerial responses.
Ans: True
Page: 48
71.
T
F
The contingency approach to management amounts to a purely situational view.
Ans: False
Page: 48
72.
T
F
A multivariate approach, an open-system perspective, and a practical research orientation are
the three characteristics of the contingency approach.
Ans: True
Page: 48
73.
T
F
Closed-system thinking is fundamental to the contingency view.
Ans: False
Page: 49
74.
T
F
A research technique used to determine how a combination of variables interact to cause a
particular outcome is bivariate analysis.
Ans: False
Page: 49
75.
T
F
The contingency approach is strictly theoretical, not research-oriented.
Ans: False
Page: 49
76.
T
F
Contingency management theorists strive to carry out practical and relevant multivariate
analyses.
Ans: True
Page: 49
77.
T
F
Management theory is unlikely to evolve beyond the contingency approach.
Ans: False
Page: 49
78.
T
F
The contingency approach is a helpful addition to management thought because it emphasizes
situational appropriateness.
Ans: True
Page: 49
79.
T
F
The era of "management by best seller" can be traced back to the work of Peter Drucker.
Ans: True
Page: 51
80.
T
F
The One Minute Manager is on the list of business management best-sellers.
Ans: True
Page: 50
81.
T
F
Managers should ensure that recommendations are based on science, rather than purely on
advocacy, in order to avoid the quick-fix mentality that makes management by best-seller so tempting.
Ans: True
Page: 52
82.
T
F
The author contends that managers are, first and foremost, pragmatists who use whatever
works.
Ans: True
Page: 52
83.
Zildjian has an estimated _______ percent of the world cymbal market.
a)
19
b)
33
c)
45
d)
65
e)
80
Ans: d
Page: 31
84.
Zildjian is guided by their core value, which include all of the following except
a)
a focus on continuous improvement.
b)
a Six Sigma quality program.
c)
empowering employees.
d)
innovation.
e)
craftsmanship.
Ans: b
Page: 31
85.
Historical perspective is said to sharpen our vision of
a)
the long-term future.
b)
both past and future.
c)
what we need to learn.
d)
the present.
e)
the past.
Ans: d
Page: 32
86.
Which of these best describes the historical development of management thought?
a)
Evolution
b)
On again, off again
c)
Convoluted
d)
Hit-and-miss
e)
Revolution
Ans: a
Page: 32
87.
The pioneering contributors to management theory and practice come from
a)
the Eastern Hemisphere.
b)
the United States.
c)
the Western Hemisphere.
d)
the Third World countries.
e)
around the globe.
Ans: e
Page: 33
88.
Management, as an area of academic study, is essentially a product of
a)
the sixteenth century.
b)
the twentieth century.
c)
the British industrial system.
d)
trial and error.
e)
corporate America.
Ans: b
Page: 33
89.
Today, the body of management knowledge is best characterized as
a)
Japan-dominated.
b)
experiencing information overload.
c)
disappearing.
d)
severely limited.
e)
unified.
Ans: b
Page: 34
90.
Which of these best describes the field of management?
a)
Seriously out of date
b)
Applied social science
c)
Little more than common sense
d)
Highly scientific
e)
Interdisciplinary
Ans: e
Page: 34
91.
Which of these is the universally accepted theory of management today?
a)
The contingency approach
b)
The behavioral approach
c)
None of these; there is no universally accepted theory of management.
d)
The universal process approach
e)
The systems approach
Ans: c
Page: 34
92.
Which of the following is not one of the approaches to management discussed in the text?
a)
The systems approach
b)
The contingency approach
c)
The traditional approach
d)
The universal process approach
e)
The behavioral approach
Ans: c
Page: 34
93.
The _______ approach is the oldest and one of the most popular approaches to management thought.
a)
universal process
b)
contingency
c)
operational
d)
systems theory
e)
behavioral
Ans: a
Page: 35
94.
Which approach is also known as the functional approach to management?
a)
Systems approach
b)
Behavioral approach
c)
Excellence approach
d)
Universal process approach
e)
Operational approach
Ans: d
Page: 35
95.
The universal process approach assumes that
a)
it is more difficult to manage public organizations.
b)
small organizations are hardest to manage.
c)
management is not practiced in small organizations.
d)
managing in public organizations and managing in private organizations are completely different.
e)
managing in public organizations and managing in private organizations are basically the same.
Ans: e
Page: 35
96.
_______ involves “who does what.”
a)
Span of control
b)
Authority
c)
The specialization of labor
d)
The chain of command
e)
Communication
Ans: c
Page: 35
97.
Which of the following refers to who is ultimately responsible for getting things done?
a)
Specialization of labor
b)
Command center
c)
Communication
d)
Authority
e)
Delegation
Ans: d
Page: 35
98.
What most influenced Frenchman Henri Fayol's management writings?
a)
Chester I. Barnard
b)
His experience as an administrator
c)
His 30 years as a college professor
d)
His military experience
e)
His wife, Mary Parker Follett
Ans: b
Page: 35
99.
Which of the following is one of Fayol's POC3 functions?
a)
Control
b)
Cooperation
c)
Budgeting
d)
Leading
e)
Communicating
Ans: a
Page: 35
100. Betsy Duvall believes that a combination of kindliness and justice will lead to a staff that is devoted and
loyal. This belief is in accordance with which of Fayol's principles of management?
a)
Discipline
b)
Stability and tenure of personnel
c)
Centralization
d)
Scalar chain
e)
Equity
Ans: e
Learning Level: appl
Page: 36
101. Harry Harrison, the CEO of Harrison Printing Company, remarked in a recent speech that specialization of
labor will be necessary for his company's success. Which of Fayol's principles of management was he referring to?
a)
Division of work
b)
Unity of command
c)
Unity of direction
d)
Scalar chain
e)
Authority
Ans: a
Learning Level: appl
Page: 36
102. _______ is not one of Fayol's 14 universal principles of management.
a)
Esprit de corps
b)
Equity
c)
Conflict avoidance
d)
Authority
e)
Centralization
Ans: c
Page: 36
103. To reduce employee confusion, Moonlight Manufacturing recently instituted a policy stating that an employee should receive orders from only one supervisor. Which of Fayol's principles of management is related to this policy?
a)
Esprit de corps
b)
Common purpose
c)
Scalar chain
d)
Authority
e)
Unity of command
Ans: e
Learning Level: appl
Page: 36
104. According to Fayol, the principle of _______ indicates that the right to give orders must accompany responsibility.
a)
unity of direction
b)
discipline
c)
unity of command
d)
authority
e)
scalar chain
Ans: d
Page: 36
105. Adopted Fayol's principle of _______ might help a home-building company that is very uncoordinated and
unfocused.
a)
unity of direction
b)
initiative
c)
scalar chain
d)
authority
e)
unity of command
Ans: a
Learning Level: appl
Page: 36
106. Harmonious effort among individuals is the key to organizational success, according to Fayol's ________
principle.
a)
unity of direction
b)
scalar chain
c)
equity
d)
esprit de corps
e)
unity of command
Ans: d
Page: 36
107. Which of Fayol's principles is Belinda, a service manager at a graphic design company, referring to when
she says, “One of the greatest satisfactions is formulating and carrying out a plan”?
a)
Esprit de corps
b)
Centralization
c)
Initiative
d)
Order
e)
Scalar chain
Ans: c
Learning Level: appl
Page: 36
108. Which approach is useful because it specifies what managers should do?
a)
Functional
b)
Operational
c)
Systems
d)
Contingency
e)
Behavioral
Ans: a
Page: 36
109. By definition, the operational approach is oriented toward what area of management?
a)
Production
b)
Personnel
c)
Accounting
d)
Finance
e)
Marketing
Ans: a
Page: 36
110. _______ involved developing performance standards on the basis of systematic observation and experimentation.
a)
Fayol's universal principles
b)
Therbligs
c)
Gantt charts
d)
Scientific management
e)
Total quality control
Ans: d
Page: 37
111. What is the key word that captures the spirit of scientific management?
a)
Capitalism
b)
Experimentation
c)
Communication
d)
Cooperation
e)
Indoctrination
Ans: b
Page: 37
112. Frederick W. Taylor focused his work on all of the following except
a)
standardization.
b)
group dynamics.
c)
time and task study.
d)
systematic selection and training.
e)
pay incentives.
Ans: b
Page: 37
113. Brady Hoyts, owner of Hoyts Inc., recently posted data for employees on the optimum speed and rate at
which stock should be fed into machines for each job. This exemplifies which of Frederick W. Taylor's areas of study?
a)
Human relations study
b)
Time and task study
c)
Standardization
d)
Selection and training
e)
Pay incentives
Ans: c
Learning Level: appl
Page: 37
114. When Taylor's studies revealed the optimum shovel load to be 21 pounds, he
a)
automated the process to eliminate human labor.
b)
invented a steam-powered shoveling machine.
c)
replaced workers' personal shovels with standardized company shovels.
d)
developed the ideal shovel for all tasks.
e)
replaced all the shovelers with harder workers.
Ans: c
Page: 37
115. Taylor claimed, during his pig iron handling experiments, to have dramatically improved output by
a)
hiring only weight lifters.
b)
cutting the size of the standard iron “pig” in half.
c)
eliminating half the walking distance.
d)
automating the process to eliminate human labor.
e)
having the workers rest more than they worked.
Ans: e
116. According to Taylor, what do workers want, above all else, from their employers?
a)
High wages
b)
Interesting work
c)
Friendly treatment
d)
Participation in decision making
e)
Clean and safe working conditions
Ans: a
117. Which assumption led Taylor to believe that piece rates were important to improved productivity?
a)
Social network
b)
Economic man
c)
Behavioral approach
d)
Irrational man
e)
Systems approach
Ans: b
118. What sort of piece-rate pay plan did Frederick W. Taylor develop?
a)
Conditional
b)
Unified
c)
Segmented
d)
Quasi
e)
Differential
Ans: e
119.
Frank and Lillian Gilbreth, following in Taylor's footsteps,
a)
motion study
b)
human relations
c)
motivation
d)
labor relations
e)
upward communication
Ans: a
120. What did Frank and Lillian Gilbreth mean by “therbligs”?
a)
Types of employment experience
b)
Workers' hand motions
c)
Units of time
d)
Bricks
e)
Educational units
Ans: b
turned _______ into an exact science.
121. How did Henry L. Gantt humanize Taylor's differential pay system?
a)
By paying everyone the same
b)
By introducing a minimum wage
c)
By paying employees in cash
d)
By eliminating bonuses
e)
By introducing hourly wages
Ans: b
122. Henry L. Gantt emphasized the importance of ___________ and urged management to concentrate on
service rather than ____________.
a)
the human factor; profits
b)
manufacturing; profits
c)
profits; the production factor
d)
manufacturing; communication
e)
security; profits
Ans: a
123. Advice from quality advocates finally began to sink in during the _______ in the United States.
a)
1970s
b)
1960s
c)
1980s
d)
1950s
e)
1990s
Ans: c
124. Walter A. Shewart introduced
a)
the differential piece-scale system.
b)
a focus on internal customers.
c)
Pareto analysis.
d)
the concept of statistical quality control.
e)
the zero-defect concept.
Ans: d
125. Among the following, who was not a pioneering advocate of quality?
a)
Joseph M. Juran
b)
Walter A. Shewhart
c)
W. Edwards Deming
d)
Kaoru Ishikawa
e)
Peter Drucker
Ans: e
126. Jeanetta recently told her production employees that they have the authority to stop the production line if
they spot problems. This exemplifies the approach of which quality advocate?
a)
W. Edwards Deming
b)
Thomas J. Peters
c)
Mary Parker Follett
d)
Frederick W. Taylor
e)
Peter Drucker
Ans: a
127. _______ were included in Kaoru Ishikawa's idea of the customer.
a)
Primarily suppliers
b)
Competitors
c)
Hourly employees only
d)
Both internal and external customers
e)
External customers only
Ans: d
128. _______ is a popular problem-solving tool developed by Kaoru Ishikawa.
a)
Pareto analysis
b)
The EOQ model
c)
The fishbone diagram
d)
The zero-defect system
e)
Linear programming
Ans: c
129. W. Edwards Deming recommended _______ improvement for all types of operations.
a)
continuous
b)
segmented
c)
economic
d)
training
e)
parallel
Ans: a
130. _______ is also known as the 80/20 rule.
a)
Linear programming
b)
Pareto analysis
c)
Contingency planning
d)
Fishbone analysis
e)
Strategic scanning
Ans: b
131. _______ developed the concept of total quality control.
a)
W. Edwards Deming
b)
Philip B. Crosby
c)
Joseph M. Juran
d)
Armand V. Feigenbaum
e)
Kaoru Ishikawa
Ans: d
132. According to Fiegenbaum, the __________ is the one who ultimately determines quality.
a)
employee
b)
competitor
c)
top manager
d)
government
e)
customer
Ans: e
133. Which of the following recommendations concept most closely parallels Philip Crosby's idea of zero defects?
a)
Get top-management support for quality improvement.
b)
Find lots of reliable suppliers.
c)
Listen to the customer.
d)
Involve the entire organization.
e)
Do it right the first time.
Ans: e
134. By today's standards, the _______ label best fits Taylor's scientific management.
a)
open-systems thinking
b)
contingency management
c)
labor exploitation
d)
systematic management
e)
human relations
Ans: d
135. _______ and early proponents of scientific management have been roundly criticized for viewing workers
as mechanical economic beings interested only in more money.
a)
Crosby
b)
Deming
c)
Taylor
d)
Feigenbaum
e)
McGregor
Ans: c
136. _______ is the process of transforming material and human resources into useful goods and services.
a)
Contingency management
b)
Scientific management
c)
Operations management
d)
Behavioral management
e)
Quality control management
Ans: c
137. _______ managers could be called the frontline troops in the battle for productivity growth.
a)
Contingency
b)
Operations
c)
Scientific
d)
Upper-level
e)
New
Ans: b
138. Which of the following is an important post-World War II outgrowth of the operational approach?
a)
Behavioral management
b)
Scientific management
c)
Contingency management
d)
Quality control management
e)
Operations management
Ans: e
139. According to advocates of _______, the central focus of organized activity should be people.
a)
the operations approach
b)
scientific management
c)
the universal process approach
d)
the behavioral approach
e)
quality control management
Ans: d
140. The _______ was a concerted effort among theorists and practitioners to make managers more sensitive to
their employees' needs.
a)
operations approach
b)
human relations movement
c)
systems movement
d)
universal process approach
e)
excellence movement
Ans: b
141. _______ helped support the human relations movement.
a)
General systems theory
b)
Fayol's universal principles
c)
Gantt charts
d)
The threat of unionization
e)
Statistical process control
Ans: d
142. After the Wagner Act was passed in 1935, U.S. business managers began adopting morale-boosting human
relations techniques as a(n)
a)
operations management technique.
b)
union-avoidance tactic.
c)
way to avoid pay raises.
d)
experiment in scientific management.
e)
public relations ploy.
Ans: b
143. _______ cautioned managers that emotional factors were a more important determinant of productive
efficiency than physical and logical factors.
a)
Chester I. Barnard
b)
W. Edwards Deming
c)
Henry L. Gantt
d)
Joseph M. Juran
e)
Elton Mayo
Ans: e
144. The Hawthorne studies found _______ to be the most significant factor in worker productivity.
a)
labor union activities
b)
size of the work group
c)
pay levels
d)
relations among employees, peers, and supervisors
e)
lighting
Ans: d
145. Simon believes, as a manager, that cooperation, a spirit of unity, and self-control are the keys to both
productivity and a democratic way of life. This philosophy exemplifies the ideas of
a)
Chester I. Barnard.
b)
Frederick W. Taylor.
c)
W. Edwards Deming.
d)
Douglas McGregor.
e)
Mary Parker Follett.
Ans: e
146. The Hawthorne studies can be credited with turning management theorists away from the "_______" model and toward the "_______" model of the average working person.
a)
political man; social man
b)
hedonistic man; economic man
c)
social man; economic man
d)
psychological man; political man
e)
economic man; social man
Ans: e
147. Mary Parker Follett urged managers to
a)
share profits equally with workers.
b)
adopt a Theory X view of workers.
c)
ignore the findings of the Hawthorne studies.
d)
get rid of the traditional hierarchy of authority.
e)
motivate workers rather than simply demanding performance.
Ans: e
148. Which word best describes McGregor's Theory X?
a)
Modern
b)
Traditional
c)
Optimistic
d)
Progressive
e)
Positive
Ans: b
149. Jessica Jameson is an old-fashioned supervisor for a local bank who sums up her management philosophy
by saying, “My people are basically lazy and it's my job to tell them what, when, and how to do things. In
fact, they want to be told what to do.” What label would McGregor have applied to Ms. Jameson?
a)
Theory Z
b)
Theory X
c)
Ineffective
d)
Task-motivated
e)
Theory Y
Ans: b
150. Barbara, a district manager at Subtle Segments Inc., remarks that “my employees are creative, imaginative,
and capable of self-direction and self-control.” What label would McGregor have applied to Barbara?
a)
Theory Z
b)
Idealistic
c)
Relations-motivated
d)
Theory Y
e)
Theory X
Ans: d
151. Which of the following is a modern approach seeking to discover the causes of work behavior and to develop better management techniques?
a)
Organizational behavior
b)
The systems approach
c)
The universal process approach
d)
The operational approach
e)
Scientific management
Ans: a
152. The _______ approach makes it clear to managers that people are the key to productivity.
a)
behavioral
b)
scientific management
c)
operations management
d)
contingency
e)
systems
Ans: a
153. Daniel Beam believes that many people in the general population have imagination, ingenuity, and creativity. This is what kind of an assumption?
a)
Theory Y
b)
Theory X
c)
Type A
d)
Type B
e)
Positivist concept
Ans: a
154. ________ is a _______ of human relations.
a)
Organizational behavior; practical extension
b)
Contingency management; subfield
c)
Organizational behavior; scientific extension
d)
Operations management; practical extension
e)
Scientific management; foundation
Ans: c
155. The traditional human relations doctrine has been criticized
a)
as a closed system.
b)
as vague and simplistic.
c)
as too complex.
d)
as monocultural.
e)
as old-fashioned.
Ans: b
156. Management is studied by _______ theorists, who put things together and assume that the whole is greater
than the sum of its parts.
a)
systems
b)
universal process
c)
human relations
d)
behavioral
e)
scientific management
Ans: a
157. Which word best conveys the meaning of the term "system"?
a)
Predictable
b)
Contingent
c)
Interdependent
d)
Circular
e)
Independent
Ans: c
158. What do systems theorists recommend because management is not practiced in a vacuum?
a)
A one-way process
b)
A closed environment
c)
Command-and-control techniques
d)
Synthetic thinking
e)
Taking a unionized approach
Ans: d
159. _______ energized Chester I. Barnard's early systems theory of the organization.
a)
Interpersonal trust
b)
Communication
c)
Labor-management cooperation
d)
Human motivation
e)
Individual needs
Ans: b
160. According to Barnard's early systems theory, a natural gap exists between _______ and the organization's
common purpose.
a)
personal needs and motives
b)
standard administrative procedures
c)
technology
d)
the individual's willingness to serve
e)
group norms
Ans: d
161. Which term applies to the interdisciplinary area of study based on the assumption that everything is part of
a larger, interdependent arrangement?
a)
Equifinality
b)
General systems theory
c)
Dynamic equilibrium
d)
Closed-systems theory
e)
Chaos theory
Ans: b
Page: 45
162. Which label best describes a closed system?
a)
Interdependent
b)
Self-sufficient
c)
Large
d)
Universal
e)
Environmentally dependent
Ans: b
163. A(n) ________ depends on the surrounding environment for survival, whereas, a(n) _________ is a
self-sufficient entity.
a)
universal system; specific system
b)
open system; closed system
c)
general system; closed system
d)
open system; general system
e)
closed system; open system
Ans: b
164. Organizations are what type of system?
a)
Independent
b)
Specialized
c)
Closed
d)
Functional
e)
Open
Ans: e
165. Which of the following portrays the organization as a living and thinking system?
a)
Theory Y
b)
Matrix theory
c)
Scientific management
d)
Operations management
e)
Organizational learning
Ans: e
166. Which statement most accurately captures the meaning of chaos theory?
a)
There is unknowable complexity in the natural world.
b)
Failure can emerge from apparent success.
c)
There is order among seemingly random patterns.
d)
There is no rational order in the natural world.
e)
There is complete predictability in the natural world.
Ans: c
167. According to which theory should change be controlled by minimizing uncertainty and tension, limiting
information, and centralizing decision making?
a)
Contingency
b)
Classical management
c)
Complex adaptive systems
d)
Human relations
e)
Information dynamics
Ans: b
168. Because of the influence of _______, managers now have greater appreciation for the importance of seeing
the whole picture.
a)
multivariate analysis
b)
the behavioral approach
c)
the contingency approach
d)
matrix theory
e)
the systems approach
Ans: e
169. Monica is a storeowner who tells a management class that she tries to match the appropriate management
technique to each situation. What is her general approach to management?
a)
Systems
b)
Excellence
c)
Scientific management
d)
Universal process
e)
Contingency
Ans: e
170. The contingency approach lies midway between the systems approach and
a)
closed-systems theory.
b)
the purely situational approach.
c)
chaos theory.
d)
the excellence approach.
e)
organizational behavior.
Ans: b
171. _______ is a characteristic of the contingency approach to management.
a)
The open-system perspective
b)
Bivariate analysis
c)
The closed-system view
d)
Pure theory
e)
The Theory X view
Ans: a
172. _______ best describes the contingency approach.
a)
Differential management
b)
Managerial similarity
c)
Situational management
d)
Continuous improvement
e)
One best way to manage
Ans: c
173. Tony Daniels has an open-system perspective, has a practical research orientation, and uses a multivariate
approach in his decision making. Tony is a ___________ advocate.
a)
scientific management
b)
management-by-best-seller
c)
contingency management
d)
quality control
e)
human relations
Ans: c
174. Which of the following terms refers to a simple one-to-one causal relationship?
a)
Open-system analysis
b)
Univariate analysis
c)
Bivariate analysis
d)
Multivariate analysis
e)
Contingency analysis
Ans: c
175. Regarding the evolution of management thought, the author calls the contingency approach
a)
a detour.
b)
the final word.
c)
a promising step.
d)
only the beginning.
e)
a confusing digression.
Ans: c
176. _______ is credited with bringing management by best-seller into the mainstream.
a)
Mary Parker Follett
b)
Frederick W. Taylor
c)
Stephen R. Covey
d)
Jack Welch
e)
Peter F. Drucker
Ans: e
177. The popularization of management shifted into high gear in 1982 with the publication of Peters and Waterman's book
a)
The Apprentice.
b)
In Search of Excellence.
c)
The One Minute Manager.
d)
High Output Management.
e)
Good to Great: Why Some Companies Make the Leap ... and Others Don't.
Ans: b
178. Authors of business best-sellers have been criticized by researchers for fostering a _______ mentality.
a)
quick-fix
b)
closed-system
c)
success-at-any-cost
d)
wasteful
e)
multinational
Ans: a
179. To avoid the quick-fix mentality, managers are advised to read management journals that
a)
report nonquantitative studies.
b)
report highly controlled laboratory studies.
c)
report the results of public opinion polls.
d)
translate research into practice.
e)
specify how-to-do-it procedures.
Ans: d
180. McAllaster's critique of management by best-seller warns of
a)
pie-in-the-sky academic research.
b)
one-size-fits-all solutions.
c)
get-rich-quick schemes.
d)
outdated research.
e)
too much theory.
Ans: b
181. Successful managers use which approach to management?
a)
Modified contingency
b)
Mixed bag
c)
Closed-systems
d)
Incremental
e)
Contingency
Ans: b
182. The author calls managers
a)
overworked and undereducated.
b)
lazy.
c)
reluctant heros.
d)
closed-sytsem thinkers.
e)
pragmatists who use whatever works.
Ans: e
183. What does the author recommend that future managers use?
a)
A quasi-systems approach
b)
The approach they themselves find most useful
c)
A universal contingency approach
d)
The excellence approach
e)
A Theory Y approach
Ans: b
Use the following to answer questions 184-188:
Will and Grace
Will and Grace recently went to a management conference where they attended sessions on total quality control, production-oriented management, and employee involvement and employee needs. Both Will and Grace
agree on the quality and production-oriented issues; however, they disagree on employee-related issues. Grace
believes that her employees are responsible and capable of self-direction and self-control. Will disagrees with
this assumption and argues that most people prefer to be directed and try to avoid responsibility. Both have
decided to apply the lessons they learn from the conference.
184. Which of these approaches to management does the production-oriented management session attended by
Will and Grace at the conference reflect?
a)
The contingency approach
b)
The operational approach
c)
The behavioral approach
d)
The systems approach
e)
The universal process approach
Ans: b
185. Will and Grace were very impressed by the concept of total quality control. _______ should get historical
credit for this concept.
a)
Armand V. Feigenbaum
b)
Kaoru Ishikawa
c)
Joseph M. Juran
d)
W. Edward Deming
e)
Walter A. Shewhart
Ans: a
186. Grace's beliefs reflect which one of McGregor's labels?
a)
Theory Y
b)
Theory X
c)
Task-motivated
d)
Relations-motivated
e)
Theory Z
Ans: a
187. Will's argument that most people prefer to be directed would be classified by McGregor as which of these?
a)
Ineffective
b)
Theory Y
c)
Theory Z
d)
Theory X
e)
Excellence in management
Ans: d
188. Which of these approaches to management represents a focus on employee needs?
a)
The behavioral approach
b)
The contingency approach
c)
The systems approach
d)
The operational approach
e)
The universal process approach
Ans: a
Grand Valley Children's Hospital
Dr. Kim Chu, chief pediatric physician at Grand Valley Children's Hospital, has been experimenting with the
number and size of patient rooms, and the location of these rooms, to develop performance standards and
enhance efficient operation. In improving her processes, Dr. Chu obtains feedback from both internal and external customers; she also advocates the idea of zero defects (every patient must be served right the first time)
to all her partners and nurses. Dr. Chu's personal involvement in all areas of this pediatric practice appears to be
leading the business to success.
189. Whose work is Dr. Chu following when she experiments to improve operational efficiency at Grand Valley
Children's Hospital?
a)
Mayo's human relations movement
b)
Barnard's contingency theory
c)
Philip B. Crosby's systematic management
d)
Taylor's scientific management
e)
McGregor's Theory X/Y
Ans: d
190. Who should be credited with promoting the idea of obtaining feedback from both internal and external
customers, as Dr. Chu is doing?
a)
W. Edward Deming
b)
Joseph M. Juran
c)
Walter A. Shewhart
d)
Armand V. Feigenbaum
e)
Kaoru Ishikawa
Ans: e
191. When Dr. Chu advocates the idea of zero defects to her employees, she is advocating _______ idea.
a)
Joseph M. Juran's
b)
Kaoru Ishikawa's
c)
W. Edward Deming's
d)
Armand V. Feigenbaum's
e)
Philip B. Crosby's
Ans: e
192. Grand Valley Children's Hospital can be best described a(n)
a)
Theory X system.
b)
Iidependent system.
c)
specialized system.
d)
closed system.
e)
open system.
Ans: e
193. What would Frenchman Henri Fayol have to say about a computer company's plans to hire a retired army
general as its new chief executive officer?
Ans: Because Fayol believed management is a universal process that is the same everywhere, regardless
of the purpose of the organization, he would probably say the general would do a good job. The general
would perform the same basic managerial functions—planning, organizing, command, coordination, and
control—for the computer company that he did in the army. In other words, a good manager in one situation is likely to be a good manager in all situations.
194. Briefly explain at least two of Frederick W. Taylor's important scientific management contributions.
Ans: First, Taylor's metal-cutting experiments helped him develop standard operating procedures for
machine shops. Second, his time-and-task shoveling experiments identified the most efficient shovel for
each task. Third, Taylor's systematic selection and training of pig iron handlers demonstrated that more
material could be moved with less effort. Fourth, Taylor's differential piece-rate pay plan gave
above-standard workers an opportunity to earn more per unit. All four approaches significantly improved
productivity.
195. What three factors contributed to the rise of the human relations movement? What was the historical significance of each?
Ans: The three factors were the threat of unionization, the Hawthorne studies, and the philosophy of industrial humanism. Managers embraced human relations techniques as a way to stem the rising tide of labor unions following the passage of the Wagner Act in 1935. The Hawthorne studies at a Chicago-area
Western Electric plant drew management's attention to the impact of worker attitudes and social interactions on output. Industrial humanists such as Elton Mayo, Mary Parker Follett, and Douglas McGregor
cautioned managers to pay more attention to employee motivation, needs, and emotions.
196. Why is it appropriate for managers to view their organizations as open systems?
Ans: Open systems, unlike self-sufficient closed systems, can survive only through active interaction with
the environment. Organizations are open systems because they interact constantly with the surrounding
environment; they are not self-sufficient closed systems. By viewing organizations as open systems, managers can develop an appreciation for important organization-environment interactions (such as acquiring
labor, money, energy, and resources and dispensing products, services, and wastes).
197. What would a manager who takes a contingency approach say to a young assistant who constantly tries to
find the one best way to do things?
Ans: Because specific management techniques tend to work better in certain situations, there really is no
one best way to do things. The idea is to fit the management technique to the situation in an “if-then”
manner. Management tools and techniques must be appropriate to the demands of the situation. For example, flexible and adaptable organizations tend to perform better in unstable and rapidly changing situations, and highly regimented organizations may perform better under very static conditions.
198. Describe five suggestions that can help managers avoid the quick-fix mentality that makes management by
best-seller so tempting.
Ans: To avoid the quick-fix mentality, managers should follow these suggestions: (1) Remain current with
literature in the field, particularly with journals that translate research into practice. (2) Ensure that concepts applied are based on science or, at least, on some form of rigorous documentation, rather than
purely on advocacy. (3) Be willing to examine and implement new concepts, but first do so using pilot tests
with small units. (4) Be skeptical when simple solutions are offered; analyze them thoroughly. (5) Constantly anticipate the effects of current actions and events on future results.