Chapter 1: Management: Science, Theory, and Practice

Exercise

Short Answer Questions

1. What is Management?

Explanation: Management is the process of designing and maintaining an environment in

which individuals, working together in groups, efficiently accomplish selected aims.

Question Type: Short Answers Question

Bloom’s: Define
Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: Definition of Management: Its Nature and Purpose

2. Describe the functions of Management.

Explanation: In studying management, it is helpful to break it down into five managerial

functions—planning, organizing, staffing, leading, and controlling—around
which the knowledge that underlies those functions can be organized.

Question Type: Short Answers Question

Bloom’s: Summarize
Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: Function of Management

3. Why management is an essential part of the Organization?

Explanation: Managers are charged with the responsibility of taking actions that will enable
individuals to make their best contributions to group objectives.

Question Type: Short Answers Question

Bloom’s: Explain
Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: Definition of Management: Its nature and purpose

4. What are the differences between Effectiveness and Efficiency?

Explanation: Productivity implies effectiveness and efficiency in individual and

 organizational performance. Effectiveness is the achievement of objectives and efficiency is
the achievement of the ends with the least number of resources. Managers cannot know
whether they are productive unless they first know their goals and those of the organization.

Question Type: Short Answers Question

Bloom’s: Distinguish
Difficulty: Easy
Learning Objective: Identify current developments in technology
Topic: Productivity, Effectiveness, and Efficiency

5. Explain the characteristics of excellent and most admired Companies.

Explanation: In the United States, profitability is an important measure of company

excellence. At times, however, other criteria are also used that frequently coincide with
financial performance. In their book In Search of Excellence, Thomas Peters and Robert
Waterman identified 43 companies that they regarded as excellent. In choosing the firms,
they considered factors such as growth of assets and equity, average return on total capital,
and similar measures.

Question Type: Short Answers Question

Bloom’s: Describe
Difficulty: Medium
Learning Objective: Describe the evolution of management
Topic: Characteristics of Excellent Companies

6. Is managing a science or an art? Explain.

Explanation: Managing, like all other practices—whether medicine, music composition,

engineering, accountancy, or even baseball—is an art. It is know-how. It is doing things in
light of the realities of a situation. Yet, managers can work better by using the organized
knowledge about management. It is this knowledge that constitutes a science. Thus,
managing as practice is an art; the organized knowledge underlying the practice may be
referred to as science.

Question Type: Short Answers Question

Bloom’s: Evolute
Difficulty: Medium
Learning Objective: Describe the evolution of management
Topic: Managing: Science or Art?

7. What is the impact of advances in technologies, globalization, and entrepreneurship on

businesses?

Explanation: Technology, and especially information technology (IT), has a pervasive impact
on both organizations and individuals. As of January 2019, over four billion people across the
world were active Internet users and just under four billion used the mobile web. The
second major trend is globalization. Most major corporations have an international
presence. The World Trade Organization (WTO), an umbrella organization, was established
 in 1995 to govern international trade. An increasing focus on innovation and
entrepreneurship as national and organizational imperatives has become more evident.
Innovation is focused on enhancing products and services and commercializing them while
entrepreneurship is a process that is centered in the notion of identifying market
opportunities and unmet needs.

Question Type: Short Answers Question

Bloom’s: Identify
Difficulty: Medium
Learning Objective: Identify current developments in technology
Topic: Advances in Technologies, Trends in Globalization, and a Focus on Entrepreneurship
for Adapting to Changes in the 21st Century

8. Who has been called the father of scientific management?

Explanation: Frederick Winslow Taylor is generally acknowledged as the father of scientific

management.

Question Type: Short Answers Question

Bloom’s: Recall
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Evolution of Management Thought

9. Describe the function of Managers.

Explanation: The functions of managers provide a useful structure for organizing

management knowledge. There have been no new ideas, research findings, or techniques
that cannot readily be placed in the classifications of planning, organizing, staffing, leading,
and controlling.

Question Type: Short Answers Question

Bloom’s: Explain
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The Functions of Managers

10. What is the difference between managers and leaders or are they both same?

Explanation: We suggest that good managers have to be good leaders. However, we

maintain that good leaders also have to carry out effectively the managerial functions of
planning, organizing, staffing, controlling and, of course, leading. Fred Luthans, in his book
Great Leaders: An Evidence-Based Approach, uses the term leaders and managers
interchangeably.

Question Type: Short Answers Question

Bloom’s: Distinguish
Difficulty: Medium
 Learning Objective: Explain the managerial functions
Topic: Three Management Perspectives: International, Innovation, and Leadership

Matching

1.

1. Management a. A business, government agency, hospital,

university, or any other type of
organization.
2. Enterprise b. is the process of designing and
maintaining an environment in which
individuals, working together in groups,
efficiently accomplish selected aims.
3. Productivity c. The achievement of the ends with the
least number of resources.
4. Effectiveness d. The achievement of objectives.
5. Efficiency e. The output–input ratio within a time
period with due consideration for quality.

Answers:

1. b
2. a
3. e
4. d
5. c

Explanation: Management is the process of designing and maintaining an environment in which

individuals, working together in groups, efficiently accomplish selected aims. The term enterprise
refers to a business, government agency, hospital, university, and any other type of organization.
Productivity is the output–input ratio within a time period with due consideration for quality.
Effectiveness is the achievement of objectives and efficiency is the achievement of the ends with the
least number of resources.

Question Type: Match the Following

Bloom’s: Match

Difficulty: Medium

Learning Objective: Explain the nature and purpose of management

Topic: Definition of Management: Its nature and purpose, Productivity, Effectiveness, and Efficiency.

2.
 1. Frederick W. Taylor a. The Hawthorne Studies
2. Henri Fayol b. Very prolific writer on many general
management topics
3. Elton Mayo c. Principles of Scientific Management
4. Peter F. Drucker d. Modern Management Theory

Answers:

1. c
2. d
3. a
4. b

Explanation: Taylor’s famous work Principles of Scientific Management was published in 1911. The
real father of modern management theory is the French industrialist Henri Fayol. Elton Mayo, F. J.
Roethlisberger, and others undertook the famous experiments at the Hawthorne plant of the
Western Electric Company between 1927 and 1932. Peter F. Drucker has written on a variety of
general management topics.

Question Type: Match the Following

Bloom’s: Match

Difficulty: Easy

Learning Objective: Describe the various approaches to management

Topic: The Evolution of Management Thought

Quiz

Fill in the Blanks

1. Selecting missions and objectives as well as the actions to achieve them, which requires
decision-making is known as ____________________.

Answer: Planning

Explanation: Planning involves selecting missions and objectives as well as the actions to
achieve them.

Question Type: Fill in the blanks

Bloom’s: State
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The functions of Managers
2. The output–input ratio within a time period with due consideration for quality is called
___________________.

Answer: Productivity

Explanation: Productivity is the output–input ratio within a time period with due
consideration for quality.

Question Type: Fill in the blanks

Bloom’s: State
Difficulty: Easy
Learning Objective: Identify current developments in technology
Topic: Productivity, Effectiveness, and Efficiency

3. A business, government agency, hospital, university, or any other type of organization is also
known as ____________________.

Answer: Enterprise

Explanation: The term enterprise refers to a business, government agency, hospital,

university, and any other type of organization, since almost everything said in this book
refers to business as well as nonbusiness organizations.

Question Type: Fill in the blanks

Bloom’s: Recognise
Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: Management as an Essential for Any Organization

4. The achievement of the ends with the least number of resources is called _______________.

Answer: Efficiency

Explanation: Efficiency is the achievement of the ends with the least number of resources.

Question Type: Fill in the blanks

Bloom’s: State
Difficulty: Easy
Learning Objective: Identify current developments in technology
Topic: Productivity, Effectiveness, and Efficiency

5. People, capital, managerial skills, technical knowledge, and skills is called _______________.

Answer: Input

Explanation: The inputs from the external environment may include people, capital, and
managerial skills as well as technical knowledge and skills.
 Question Type: Fill in the blanks
Bloom’s: Recognise
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Systems Approach to The Management Process

6. Products, services, profits, satisfaction, and integration of the goals of claimants to the
enterprise is called __________________.

Answer: Output

Explanation: The kinds of outputs will vary with the enterprise, they usually include many of
the products, services, profits, satisfaction, and integration of the goals of various claimants
to the enterprise.

Question Type: Fill in the blanks

Bloom’s: Recognise
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Systems Approach to The Management Process

7. Influencing people so that they will contribute to organizational and group goals is called
________________.

Answer: Leading

Explanation: Leading is influencing people so that they will contribute to organizational and
group goals.

Question Type: Fill in the blanks

Bloom’s: Define
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The Functions of Managers

8. An influence, that is, the art or process of influencing people so that they will strive willingly
and enthusiastically toward the achievement of group goals is called _________________.

Answer: Leadership

Explanation: We define leadership as influence, that is, the art or process of influencing
people so that they will strive willingly and enthusiastically toward the achievement of group
goals.

Question Type: Fill in the blanks

Bloom’s: State
Difficulty: Easy
Learning Objective: Identify a managerial opportunity or challenge
 Topic: Three Management Perspectives

9. The aim of the ____________ should be to create a surplus by establishing an environment

in which people can accomplish group goals.

Answer: Manager

Explanation: Nonbusiness executives sometimes say that the aim of business managers is
simple—to make a profit. But profit is really only a measure of a surplus of sales receipts
over expenses. For many businesses, an important goal is the long-term increase in the value
of their common stock.

Question Type: Fill in the blanks

Bloom’s: Recognise
Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: The Goals of All Managers and Organizations

10. The _____________________ draws together the pertinent knowledge of management by

relating it to the managerial job.

Answer: Operational Approach

Explanation: The process or operational approach to management theory and science draws
together the pertinent knowledge of management by relating it to the managerial job—
what leaders do. Like other operational sciences, it tries to integrate the concepts,
principles, and techniques that underlie the task of managing.

Question Type: Fill in the blanks

Bloom’s: Define
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Managerial Roles Approach

Test Bank

Fill in the Blanks

1 __________________ is the process of designing and maintaining an environment in which

individuals, working together in groups, efficiently accomplish selected aims.

Answer: Management

Explanation: The process of designing and maintaining an environment in which individuals,

working together in groups, efficiently accomplish selected aims is called Management.

Question Type: Fill in the blanks

Bloom’s: Define
 Difficulty: Easy
Learning Objective: Explain the nature and purpose of management
Topic: Definition of Management

2. Planning, organizing, staffing, leading, and controlling is ____________________ around

which managerial knowledge is organized.

Answer: Managerial Functions

Explanation: In studying management, therefore, it is helpful to break it down into five

managerial functions—planning, organizing, staffing, leading, and controlling—around which
the knowledge that underlies those functions can be organized.

Question Type: Fill in the blanks

Bloom’s: Recognise
Difficulty: Medium
Learning Objective: Explain the nature and purpose of management
Topic: Definition of Management

3. The task of managers is to transform the inputs in an ______________ and ____________

manner into outputs.

Answer: Effective, Efficient

Explanation: It is the task of managers to transform the inputs in an effective and efficient
manner into outputs. Of course, the transformation process can be viewed from different
perspectives.

Question Type: Fill in the blanks

Bloom’s: Identify
Difficulty: Medium
Learning Objective: Describe the various approaches to management
Topic: The Managerial Transformation Process

4. Measuring and correcting individual and organizational performance to ensure that events
conform to plans is called __________________.

Answer: Controlling

Explanation: Controlling is measuring and correcting individual and organizational

performance to ensure that events conform to plans.

Question Type: Fill in the blanks

Bloom’s: Define
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The Functions of Managers
 5. The Principles of Scientific Management was published by _____________________ in 1911.

Answer: Frederick Winslow Taylor

Explanation: Taylor’s famous work Principles of Scientific Management was published in

1911.

Question Type: Fill in the blanks

Bloom’s: Identify
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Evolution of Management Thought

State True and False

1. Controlling involves filling and keeping the filled positions in the organization structure.

Answer: False

Explanation: Staffing is the function of hiring and keeping filled the positions in the
organization structure. Controlling is measuring and correcting individual and organizational
performance to ensure that events conform to plans.

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The functions of Managers

2. Innovation is the real-world implementation of ideas that result in the introduction of new
goods or services or improvement in offering goods or services.

Answer: True

Explanation: We define innovation as creating more effective and efficient processes,

products, and services by using creative ideas and solutions to solve problems, finding
opportunities, and enriching people’s lives.

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Identify a managerial opportunity
Topic: Three Management Perspectives
3. Making the right decisions and successfully implementing them is recognized as effective
management.

Answer: True

Explanation: Effectiveness is the achievement of objectives and efficiency is the

achievement of the ends with the least number of resources. Managers cannot know
whether they are productive unless they first know their goals and those of the organization

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Identify current developments in technology
Topic: Productivity, Effectiveness, and Efficiency

4. "Chief Executive officer" is a common title for a middle manager.

Answer: False

Explanation: Although many researchers have studied the actual work of managers—from
CEOs to line supervisors—Mintzberg has given this approach higher visibility.

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Describe the various approaches to management
Topic: The Managerial Roles Approach

5. Mangers who deal with the marketing parts of a firm are frequently referred to as Financial
Mangers.

Answer: False

Explanation: Managers are charged with the responsibility of taking actions that will enable
individuals to make their best contributions to group objectives.

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The functions of Managers

6. Planning is the most challenging of all the managerial actions.

Answer: False
 Explanation: There are various types of plans, ranging from overall purposes and objectives
to the most detailed actions to be taken such as ordering a special stainless-steel bolt for an
instrument or hiring and training workers for an assembly line.

Question Type: True/False

Bloom’s: Select
Difficulty: Easy
Learning Objective: Explain the managerial functions
Topic: The functions of Managers

7. A company operating solely in the UAE will not be impacted by globalization.

Answer: False

Explanation: The World Trade Organization (WTO), an umbrella organization, was

established in 1995 to govern international trade. Despite street protests at WTO meetings,
globalization continues. The gains from globalization not only benefit corporations, but also
result in higher incomes for workers in developing countries and more organizational
functions are outsourced or off-shored to rationalize cost structures.

Question Type: True/False

Bloom’s: Select
Difficulty: Medium
Learning Objective: Identify current developments in technology
Topic: Advances in Technologies and Trends in Globalization.

8. Tesla is known for its electric cars, rapid growth, and unusual working environment. Based
on this information, Tesla must be an effective company.

Answer: True

Explanation: Productivity implies effectiveness and efficiency in individual and organizational

performance. Effectiveness is the achievement of objectives and efficiency is the
achievement of the ends with the least number of resources.

Question Type: True/False

Bloom’s: Select
Difficulty: Medium
Learning Objective: Identify current developments in technology
Topic: Advances in Technologies and Trends in Globalization.

9. Managers can recognise by both the level of the organisation at which they work and the
area in which they specialise.

Answer: True
 Explanation: All managers carry out managerial functions. However, the time spent for each
function may differ. Approximation of the relative time spent for each function. Top-level
managers spend more time on planning and organizing than do lower-level managers.

Question Type: True/False

Bloom’s: Select
Difficulty: Medium
Learning Objective: Explain the nature and purpose of management
Topic: Definition of Management

10. Scientific management is termed "scientific" because it attempts to use scientific methods
such as focused observation, experimentation, and quantifying of results to improve
management.

Answer: True

Explanation: Frederick Winslow Taylor is generally acknowledged as the father of scientific

management. Probably no other person has had a greater impact on the early development
of management. His experiences as an apprentice, a common laborer, a foreman, a master
mechanic, and then the chief engineer of a steel company gave Taylor ample opportunity to
know firsthand the problems and attitudes of workers and to see the great possibilities for
improving the quality of management.

Question Type: True/False

Bloom’s: Select
Difficulty: Medium
Learning Objective: Describe the various approaches to management
Topic: The Evolution of Management Thought

11. Administrative management focuses on improving the output of individual workforces as

opposed to improving the management of the entire organization.

Answer: False

Explanation: The organization administration must indeed provide many “satisfactions” if it

hopes to retain and elicit contributions from its members. It must contribute to the
satisfaction not only of basic material needs (e.g., employees’ needs to earn money for food
and shelter or to have job security), but also of the needs for affiliation, acceptance, esteem,
and perhaps even self-actualization so that one can realize one’s potential at the workplace.
Another output is goal integration.

Question Type: True/False

Bloom’s: Select
Difficulty: Medium
Learning Objective: Describe the various approaches to management
Topic: The Systems Approach to The Management Process
12. The original Hawthorne studies found that the expected outcome of workers productivity
seemed unrelated to the level of lighting.

Answer: False

Explanation: Elton Mayo, F. J. Roethlisberger, and others undertook the famous experiments
at the Hawthorne plant of the Western Electric Company between 1927 and 1932.20 Earlier,
from 1924 to 1927, the National Research Council made a study in collaboration with
Western Electric to determine the effect of illumination and other conditions on workers
and their productivity. Finding that productivity improved when illumination was either
increased or decreased for a test group, the researchers were about to declare the whole
experiment a failure.

Question Type: True/False

Bloom’s: Select
Difficulty: Difficult
Learning Objective: Describe the various approaches to management
Topic: The Evolution of Management Thought