Chapter 2 · A Short History of Management Theory and Practice

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Adapted from Bruno Dyck, Arran Caza, Patrick Adriel H. Aure, James Leaman, Joel Marcus, Shieradel Jimenez, and Anne Kato, Management: Financial, Social, and Ecological Well-Being, 2nd ed. (2026), CC BY-SA 4.0. These adaptations use CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/). Questions are original study aids, not an instructor quiz or predictions of exam contents. Assigned chapter: https://pressbooks.openedmb.ca/management/?p=679 Four authored alternatives per question. Answer positions are balanced. Read the explanation after answering.

Questions

01The same product has been treated as sacred, medicinal, and a commercial commodity in different societies. Which concept best explains these changing meanings?
  1. A universal fixed definition of value
  2. Social construction of reality
  3. One best managerial method
  4. Closed-system independence
Chapter 2, §2.0–2.1
02A farmer organization is owned and democratically governed by its farmer members. What organizational form is described?
  1. Franchise agreement
  2. Corporation owned only by outside investors
  3. Cooperative
  4. Informal employee clique
Chapter 2, §2.0
03What is the main managerial lesson of the cosmic calendar?
  1. Modern financial markets are permanent natural features
  2. Management existed before the universe
  3. Human ownership makes nature independent of ecology
  4. Human institutions are recent and depend on much older ecological conditions
Chapter 2, §2.2.1
04Which development most directly explains why agriculture increased coordination needs?
  1. All people became fully self-sufficient
  2. Money and corporations immediately disappeared
  3. Settlements, surplus, specialization, and trade expanded
  4. Resource protection no longer mattered
Chapter 2, §2.2.3
05A grower sells tomatoes at a fair price to obtain needed sandals. Which idea best fits Aristotle’s natural management of money?
  1. Unlimited money accumulation as the final goal
  2. The pursuit of spurious wealth for its own sake
  3. Monopoly creation without useful contribution
  4. Exchange that sustains needs and community
Chapter 2, §2.2.4
06Which pair correctly describes materialism and individualism?
  1. Mutual sharing; centralized redistribution
  2. High value on possessions/financial well-being; high value on self-interest
  3. Democratic member ownership; limited liability
  4. Informal kinship; ecological migration
Chapter 2, §2.2.5
07What does Smith’s pin-factory illustration primarily demonstrate?
  1. Corporations have no effects on social power
  2. All high productivity eliminates negative externalities
  3. Specialization and division of labor can increase coordinated productivity
  4. Every worker must make the whole product independently
Chapter 2, §2.2.5
08Which statement correctly describes limited liability in the chapter’s corporate discussion?
  1. The organization cannot ever be sued
  2. A corporation has no separate legal identity
  3. Owners’ financial exposure is limited under the legal arrangement, generally to their investment
  4. Managers may ignore legal obligations
Chapter 2, §2.2.5
09Which sequence matches the dominant function emphasis of the first four contemporary eras?
  1. Leading, controlling, organizing, planning
  2. Controlling, planning, leading, organizing
  3. Organizing, leading, planning, controlling
  4. Planning, organizing, controlling, leading
Chapter 2, §2.3
10A manager studies shovel designs, matches tools to tasks, and trains workers in a more productive method. Which classical approach is emphasized?
  1. Stakeholder theory
  2. Scientific management
  3. Institutionalization
  4. Transformational leadership
Chapter 2, §2.3.1
11A project display shows work stages across time, deadlines, and progress. Which contributor is most closely associated?
  1. Henry Gantt
  2. Mary Parker Follett
  3. Chester Barnard
  4. Herbert Simon
Chapter 2, §2.3.1
12A firm uses competence-based appointments, formal records, and impersonal decision rules. Which approach fits?
  1. Weber’s bureaucratic organizing
  2. McGregor’s Theory Y alone
  3. Personal favoritism as the main organizing rule
  4. The Hawthorne effect
Chapter 2, §2.3.1
13An employee is instructed to report to only one immediate superior. Which principle is illustrated?
  1. Institutionalization
  2. Unity of command
  3. Scalar chain as the whole hierarchy
  4. Synergy
Chapter 2, §2.3.1
14A manager lets the person with the most relevant expertise guide a task, regardless of rank. Whose ideas most directly fit?
  1. Mary Parker Follett
  2. Frederick W. Taylor’s tool optimization
  3. Adam Smith’s pin-factory example
  4. Henry Gantt’s time-chart method
Chapter 2, §2.3.2
15Workers’ behavior changes when they know they are participating in a study. Which concept fits the chapter’s description?
  1. Natural money management
  2. Scalar chain
  3. Hawthorne effect
  4. Entropy
Chapter 2, §2.3.2
16A manager assumes employees avoid responsibility and will not work hard without pressure. Which assumptions are described?
  1. Contingency theory by definition
  2. Theory X
  3. SET virtue ethics by definition
  4. Theory Y
Chapter 2, §2.3.2
17A manager provides autonomy, development, and support because employees can find work fulfilling and accept responsibility. Which assumptions fit?
  1. A closed-system assumption
  2. Institutionalized self-interest by definition
  3. Theory X
  4. Theory Y
Chapter 2, §2.3.2
18A planner uses mathematical models to compare alternative allocations of scarce resources. Which broad field is illustrated?
  1. Informal organization alone
  2. Management science
  3. Figurehead representation
  4. Householding alone
Chapter 2, §2.3.3
19A restaurant considers suppliers, the labor market, and customer demand alongside internal kitchen work. Which perspective fits?
  1. Open systems
  2. A strictly internal-only view
  3. Unity of command
  4. Closed systems
Chapter 2, §2.3.3
20Two departments achieve more together than the sum of what each could achieve separately. What is illustrated?
  1. Synergy
  2. Entropy
  3. Bounded rationality
  4. Institutionalization
Chapter 2, §2.3.3
21A manager cannot process all available alternatives and lacks complete information. Which concept best explains the decision limit?
  1. Bounded rationality
  2. Reciprocity
  3. The scalar chain
  4. Perfect optimization
Chapter 2, §2.3.3
22A management arrangement works in a stable setting but fails in a volatile one. Which theory says the best method depends on such conditions?
  1. The figurehead role
  2. A universal one-best-way claim
  3. Theory X as a fixed employee category
  4. Contingency theory
Chapter 2, §2.3.3
23Employees keep a procedure because it is valued as tradition, even after it stops helping the organization. What is illustrated?
  1. Institutionalization
  2. Synergy
  3. Scientific tool redesign
  4. Forecasting
Chapter 2, §2.3.4
24Which pairing best captures the late-1980s contributions discussed in the sustainable development era?
  1. WCED promoted unlimited accumulation; IPCC rejected ecology
  2. WCED developed the Gantt chart; IPCC invented bureaucracy
  3. WCED formalized Theory X; IPCC created unity of command
  4. WCED supplied a vision; IPCC work supplied a science-based call for change
Chapter 2, §2.3.5
25Which pairing correctly connects the chapter’s SET triggers to concerns?
  1. 2008 crisis: money’s invention; Anthropocene: corporate charters; Occupy: agriculture
  2. 2008 crisis: unity of command; Anthropocene: informal cliques; Occupy: forecasting
  3. 2008 crisis: ceremonial roles; Anthropocene: time charts; Occupy: tool design
  4. 2008 crisis: financial assumptions; Anthropocene: planetary impacts; Occupy: inequality
Chapter 2, §2.3.6