Final answer:
The statement is true; essential management skills such as planning and organizing are necessary regardless of an organization's size. Both small and large businesses require effective coordination, and modern management trends also suggest a shift towards flatter structures that emphasize teamwork. Hence, the foundational skills of managing remain relevant in various contexts.
Step-by-step explanation:
The statement that the same basic skills of management are needed in both small and large organizations is true. This is because the fundamental tasks of management such as planning, organizing, leading, and controlling are applicable to any organizational size.
A manager in a small business still needs to set goals, organize resources, motivate employees, and monitor performance just as a manager in a large corporation would. The scale and complexity of these tasks may differ, but the skills remain consistent.
In modern business environments, task division and organizational structure are integral aspects of management. A small restaurant and a large manufacturing factory both require management to effectively coordinate the division of labor, albeit in varied scopes. Additionally, the trend towards flat organizational structures emphasizes the importance of flexible management skills that support teamwork and open communication between hierarchical levels.
Theory X and Theory Y illustrate contrasting managerial styles that could apply to both small and larger organizations. While Theory X assumes employees are inherently lazy and require strict supervision, Theory Y offers a more collaborative approach that suggests employees are self-motivated and seek fulfillment in their work. The shifting dynamic towards a less hierarchical and more partnership-based manager/employee relationship further supports the need for consistent management skills across different organizational sizes.