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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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