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270 PART 2 Managing Business Behavior
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True/False Questions following reasons except
Please indicate if the following statements are true or a. employees are the greatest source of
false: competitive advantage among compa-
1. Understanding what motivation is may be nies and countries.
of great interest to a psychologist, but it is b. employee job satisfaction and welfare are
of little use in the real business world. crucial to retaining productive employees.
c. employees seem to get motivated when
2. Frederick Taylor believed that there was
they are provided with certain incentives.
one best way to get a job done because
d. a major corporate goal is to enhance
factory work could be broken up into its
profits, which can be achieved with the
logical components, and the most efficient
help of motivated workers.
way of getting the job done could be
e. human capital, land, natural resources,
figured out.
and capital are all equally important.
3. The Hawthorne Studies proved that better
2. Which of the following statements is not
lighting in factories motivated employees to
true of Frederick Taylor’s scientific manage-
perform better.
ment theory?
4. Theory Z combines the best practices of
a. Employees are interested only in making
Theory X and Theory Y.
money.
5. Contemporary motivation theories take
b. There is only one best way of getting any
into consideration the realities of the
job done and that way can and needs to
present-day work environment to better
be identified.
understand employee motivation.
c. Specialization of labor is important in
6. Peter Drucker believed strongly that a firm’s scientific management.
management must be driven by a set of d. The ultimate goal of scientific manage-
corporate objectives if it is to succeed, and ment is to maximize productivity and
this led to the MBO concept. corporate profits.
7. Management’s primary objective in job e. Cooperation should be promoted
enrichment and job redesign programs is to between managers and workers.
make existing jobs more complex so that 3. Which of the following statements is not
employees remain alert at work. true in Maslow’s hierarchy of needs?
8. Work-life programs are designed in such a a. Employees have some basic needs that
way that they facilitate employees to work must be satisfied before they can be
for life. motivated to perform better and be
9. On the basis of the FT/PwC World’s Most rewarded.
Respected Companies Report, one could b. Some of the basic needs are membership
argue that behind every great company in social and professional clubs.
there is a respected leader. c. Physiological needs must be satisfied first.
d. Self-actualization is the drive to realize
10. Employees prefer the autocratic style of
one’s full potential.
leadership because they can receive quick
e. Health insurance is one way to help
responses to their problems.
meet employees’ safety needs.
4. In Herzberg’s motivation-hygiene theory,
Multiple-Choice Questions
a. employee satisfaction and dissatisfaction
Choose the best answer. are part of the same spectrum.
1. Motivating employees is a high-priority b. motivation factors are as important as
issue, especially in private firms, for all the hygiene factors.
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