, Chapter 01 Effective Managers Understand Organizational Behavior Answer
Key
True / False Questions
1. World trade is growing at a slower rate than is world gross domestic product.
FALSE
As a result of global integration, the rate of world trade is growing faster than is world gross domestic
product. That is, the trading of goods and services among nations has been increasing faster than the
world production of goods.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
2. In recent years, Japan and China have become racially diverse societies.
FALSE
Japan and China are basically homogeneous societies in terms of race.
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Environmental Forces Reshaping Management Practice
3. Older workers are entering the workforce at decreasing rates.
FALSE
Not only is racial and ethnic diversity growing, but also more women, older workers, and people with
disabilities (including wounded veterans) are entering the workforce in increasing numbers.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
4. In a general sense, technology is the process that converts raw materials or intellectual capital into
products or services.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
1-1
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,5. Efficiency is defined as the ratio of outputs to inputs.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Systems Theory and Organizational Effectiveness
6. Technology can yield a competitive advantage only when it is utilized effectively.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: Environmental Forces Reshaping Management Practice
7. A common body of management knowledge had been developed before the rise of the Roman Empire.
FALSE
There was no common body of knowledge or theoretical basis for managing the Roman Empire or
building the Great Pyramid of Cheops.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: The Evolution of Management
8. A new industrial era began in the United States around the time of the Civil War.
TRUE
A new industrial era began in the United States around the time of the Civil War. There was a dramatic
expansion of mechanical industries such as the railroad. In addition, large industrial manufacturing
complexes employed hundreds of thousands of workers and grew in importance. Attempts to better
plan, organize, lead, and control the work of employees in these complexes led managers to discuss and
write about their ideas and managerial problems in engineering journals.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
9. Information is a commodity that, when applied effectively, can result in higher growth and
productivity.
TRUE
The introduction of computer technology has fostered an era of information technology (IT). The IT era,
combined with improved selection, training, and a positive and strong organizational culture, provides
the potential for using information and technology in a more knowledgeable and effective way. The
right information is a precious commodity that, when applied effectively, can result in higher growth
and productivity.
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
1-2
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Environmental Forces Reshaping Management Practice
10. The formal and modern study of management started in Babylonia, around 5000 B.C.
FALSE
The formal and modern study of management started around 1900.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: The Evolution of Management
11. According to Frederick W. Taylor, father of scientific management, management and labor must operate
independently to achieve the maximum good for society.
FALSE
According to Frederick W. Taylor, management and labor must cooperate to achieve the maximum
good for society.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
12. Frederick Taylor's concept of economic rationality of the employee was later characterized as
"Hawthorne effect."
FALSE
The "Hawthorne effect" was the attribution that workers felt important (and increased their productivity)
because someone was observing and studying them at work.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
13. Organizational Behavior (OB) is considered a way of thinking.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: Why Study Organizational Behavior?
14. The field of organizational behavior focuses on just two levels of analysis: individual and group.
FALSE
The field of organizational behavior focuses on three levels of analysis: individual, group, and
organizational.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
1-3
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Key
True / False Questions
1. World trade is growing at a slower rate than is world gross domestic product.
FALSE
As a result of global integration, the rate of world trade is growing faster than is world gross domestic
product. That is, the trading of goods and services among nations has been increasing faster than the
world production of goods.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
2. In recent years, Japan and China have become racially diverse societies.
FALSE
Japan and China are basically homogeneous societies in terms of race.
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Environmental Forces Reshaping Management Practice
3. Older workers are entering the workforce at decreasing rates.
FALSE
Not only is racial and ethnic diversity growing, but also more women, older workers, and people with
disabilities (including wounded veterans) are entering the workforce in increasing numbers.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
4. In a general sense, technology is the process that converts raw materials or intellectual capital into
products or services.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-04 Analyze the environmental forces affecting today's management practices.
Topic: Environmental Forces Reshaping Management Practice
1-1
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,5. Efficiency is defined as the ratio of outputs to inputs.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Systems Theory and Organizational Effectiveness
6. Technology can yield a competitive advantage only when it is utilized effectively.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: Environmental Forces Reshaping Management Practice
7. A common body of management knowledge had been developed before the rise of the Roman Empire.
FALSE
There was no common body of knowledge or theoretical basis for managing the Roman Empire or
building the Great Pyramid of Cheops.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: The Evolution of Management
8. A new industrial era began in the United States around the time of the Civil War.
TRUE
A new industrial era began in the United States around the time of the Civil War. There was a dramatic
expansion of mechanical industries such as the railroad. In addition, large industrial manufacturing
complexes employed hundreds of thousands of workers and grew in importance. Attempts to better
plan, organize, lead, and control the work of employees in these complexes led managers to discuss and
write about their ideas and managerial problems in engineering journals.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
9. Information is a commodity that, when applied effectively, can result in higher growth and
productivity.
TRUE
The introduction of computer technology has fostered an era of information technology (IT). The IT era,
combined with improved selection, training, and a positive and strong organizational culture, provides
the potential for using information and technology in a more knowledgeable and effective way. The
right information is a precious commodity that, when applied effectively, can result in higher growth
and productivity.
Accessibility: Keyboard Navigation
Difficulty: 1 Easy
1-2
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, Learning Objective: 01-03 Explain how systems theory relates to organizational effectiveness.
Topic: Environmental Forces Reshaping Management Practice
10. The formal and modern study of management started in Babylonia, around 5000 B.C.
FALSE
The formal and modern study of management started around 1900.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-02 Discuss why it is important to understand organizational behavior.
Topic: The Evolution of Management
11. According to Frederick W. Taylor, father of scientific management, management and labor must operate
independently to achieve the maximum good for society.
FALSE
According to Frederick W. Taylor, management and labor must cooperate to achieve the maximum
good for society.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
12. Frederick Taylor's concept of economic rationality of the employee was later characterized as
"Hawthorne effect."
FALSE
The "Hawthorne effect" was the attribution that workers felt important (and increased their productivity)
because someone was observing and studying them at work.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: The Evolution of Management
13. Organizational Behavior (OB) is considered a way of thinking.
TRUE
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
Learning Objective: 01-01 Summarize key contributions from the evolution of management.
Topic: Why Study Organizational Behavior?
14. The field of organizational behavior focuses on just two levels of analysis: individual and group.
FALSE
The field of organizational behavior focuses on three levels of analysis: individual, group, and
organizational.
Accessibility: Keyboard Navigation
Difficulty: 2 Medium
1-3
Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
