The question asks to identify the false statement regarding Blake and Mouton's Managerial Grid Theory. This theory evaluates leadership styles based on two dimensions: concern for people and concern for production.

Managerial Grid Theory Explained

The Managerial Grid uses a scale from 1 to 9 for both concern for production and concern for people. Different combinations result in distinct management styles:

• Impoverished Management (1,1): Low concern for both people and production.
• Country Club Management (1,9): High concern for people, low concern for production.
• Authority-Compliance Management (9,1): High concern for production, low concern for people.
• Middle-of-the-Road Management (5,5): Moderate concern for both people and production.
• Team Management (9,9): High concern for both people and production.

Analyzing the Statements

Let's evaluate each statement:

• Statement 1: "In impoverished style managers have low concern for both people and production." This aligns with the (1,1) position on the grid and is a true statement.
• Statement 2: "In team management style managers have high concern for production only." Team management represents the (9,9) style, characterized by high concern for both people and production. The word "only" makes this statement inaccurate. Therefore, this is a false statement.
• Statement 3: "In country club management style managers have high concern for people and low concern for production." This matches the (1,9) position and is a true statement.
• Statement 4: "In middle of the road style managers maintain a balance between company goals and workers' needs." This describes the (5,5) style, representing a moderate balance, and is a true statement.

Conclusion

The false statement about the Managerial Grid Theory is that team management style involves high concern for production *only*. In reality, it involves high concern for both production and people.