Chapter 2 The Management Environment | Test Bank with Answers – 11e

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Fundamentals of Management, 11e (Robbins)

Chapter 2 The Management Environment

1) What did the effect of a volcanic eruption in Iceland on the production of Nissans in a plant in Japan illustrate?

A) how much organizations depend on their banks

B) how much organizations depend on their external environment

C) how much organizations depend on corporate culture

D) how much organizations depend on a strong brand image

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

2) Which components of the external environment of the BMW plant in Spartanburg, South Carolina were disrupted by the volcanic eruption in Eyjafjallajökull, Iceland?

A) the demographic and global components

B) the political and legal components

C) the economic and global components

D) the sociocultural and demographic components

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

3) Which one of the following is not involved with the demographic component of an organization's external environment?

A) values

B) gender

C) race

D) income

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

4) The ________ component of an organization's external environment is concerned with scientific and industrial innovations.

A) demographic

B) technological

C) sociocultural

D) economic

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

5) The ________ component of an organization's external environment is concerned with interest rates and employment levels.

A) demographic

B) technological

C) sociocultural

D) economic

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

6) Court rulings allowing gay marriage are an example of a change in which components of an organization's external environment?

A) political/legal and technological

B) economic and demographic

C) sociocultural and global

D) sociocultural and political/legal

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Application

7) Global trade after the recent economic downturn has ________.

A) increased dramatically

B) decreased dramatically

C) increased, then decreased significantly

D) increased slowly

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

8) The majority of growth in the U.S. employment recently has been in this area.

A) part-time jobs

B) high paying jobs

C) technology jobs

D) full-time jobs

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

9) Which one of the following has been identified as a significant risk to business leaders in the next decade?

A) stagnation in technology

B) income disparity

C) declining birth rates

D) political instability

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

10) According to polls, which percent of adults believe that economic inequality "is not a problem at all?"

A) 90

B) 50

C) 30

D) 10

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

11) In the United States, the gap between the rich and poor is ________.

A) decreasing

B) accepted

C) hidden

D) increasingly tolerated

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

12) The use of peer-to-peer services such as Uber is an example of this type of economy.

A) capitalistic

B) socialistic

C) sharing

D) unplanned

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

13) Which one of the following assets can be used as part of a sharing economy?

A) cars

B) homes

C) skills

D) all of the above

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

14) Which one of the following views of management would agree with the statement that managers should not be held accountable for changing global economic conditions?

A) the geocentric view

B) the new-world order view

C) the demographic view

D) the symbolic view

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

15) Which view of management describes a situation in which managers are directly responsible for a company's success or failure?

A) the structural view of management

B) the symbolic view of management

C) the omnipotent view of management

D) the realistic view of management

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

16) Which kind of company would be less likely to fire its CEO for poor performance?

A) a company with a symbolic view of management

B) a company with a realistic view of management

C) a company with an external view of management

D) a company with an omnipotent view of management

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

17) Which kind of company would you expect to pay its CEO the most?

A) a company with a symbolic view of management

B) a company with a liberal view of management

C) a company with a semipotent view of management

D) a company with an omnipotent view of management

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

18) ________ is the study of population characteristics.

A) Sociology

B) Demographics

C) Sociographics

D) Anthropology

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

19) Experts predict that these two countries will be larger than the developed countries of the world by the year 2050.

A) Mexico and China

B) India and China

C) China and South Africa

D) India and Mexico

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

20) What will cause countries such as Denmark to shrink with respect to the size of their economy, relative to other nations?

A) no social safety net

B) welfare payments

C) high birth rate

D) low birth rate

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

21) Which one of the following identifies the best illustration of the phrase "demographics is destiny?"

A) India is experiencing explosive growth partly because its population is growing rapidly.

B) India is experiencing poverty because its population is growing rapidly.

C) The United States is experiencing slow growth partly because its population is growing rapidly.

D) The United States is experiencing healthy growth partly because its population is not growing and people are saving their resources.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

22) Which demographic do managers pay closest attention to with respect to large-scale trends in the business world?

A) age

B) sex

C) employment status

D) geographic location

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

23) How are Gen Z workers likely to be different from previous generations?

A) They require products that are Internet-enabled.

B) They require products that are completely generic and not at all customized to the individual.

C) They require products that are serious and meaningful rather than frivolous and fun.

D) They require products that are of much higher quality than those required by individuals in previous generations.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

24) Which popular name has been assigned to those individuals born between 1946–1964?

A) Generation Y

B) Millennials

C) Generation X

D) Baby Boomers

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

25) Which generation is predicted to be the most diverse and multicultural of any generation in the United States?

A) Baby Boomers

B) Generation X

C) Generation Y

D) Generation Z

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

Linden State University (Scenario)

Marta is a dean at Linden State University, a school with an enrollment of almost 20,000 students. In her daily activities, Marta has to deal with problems that involve students, faculty, curriculum, budgets, and a variety of other things.

26) Marta sees an opportunity for her school in increasing the enrollment in individuals who were born in the 1980s and early 1990s. Which term describes these prospective students?

A) Baby Boomers

B) Gen Yers

C) Gen Xers

D) Gen Zers

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

27) Marta is currently focusing her efforts on fundraising. She sees this generation as the cohort on which to focus most of her attention.

A) Gen Y, because it is the wealthiest generation

B) Gen X, because they are likely the parents of the students Marta is recruiting

C) The Baby Boomers, because they are the largest and wealthiest generation

D) The Post-Millennials, because they are the largest generation that is still looking forward to college

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

28) Marta has turned her attention to cultivating undergraduate students in the near future—three to five years from now. On which generation should she focus her attention?

A) the Baby Boomers, because they are looking for Continuing Education programs for self-improvement

B) Gen X, because they are looking to get advanced degrees so they can obtain high-paying jobs

C) Gen Y, because the job market is so difficult they are looking to specialize in a useful major such as accounting and biology

D) the Post-Millennials, because they are of the age that is just beginning to enroll in college

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

29) Marta wants to increase visibility for graduate programs in such areas as public health that are specialized for professionals who have already worked in their field for 10 years or more. On which generation should she focus her efforts?

A) Gen Z

B) Gen X

C) Gen Y

D) Pre-Millennials

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

30) Marta is worried that the facilities at Linden State are not as up-to-date as they could be with respect to wi-fi access and the availability of classes on-demand using podcasts, social networking, and other digital advances. Which generation is likely to notice this deficiency the most?

A) the children of the Baby Boomers

B) the Baby Boomers

C) the Post-Millennials

D) Gen X

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

31) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore feels that success depends on the decisions that he and Janice make in the near future with respect to personnel. If they hire the "right" people, Theodore thinks, the company will be successful. Which view of management does Theodore espouse?

A) the symbolic view of management, because success rides on the decisions of the managers

B) the symbolic view of management, because success rides on external factors—whom Theodore and Janice hire from the outside world

C) the omnipotent view of management, because success rides on the skills of the workers

D) the omnipotent view of management, because success rides on the decisions of the managers

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

32) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Janice loves the company but feels that the economy is too slow to expect any kind of overwhelming success at this point in time. For now, Janice just wants the company to survive. In a few years the company perhaps can look forward to true success. Which view of management does Janice espouse?

A) the omnipotent view of management, because success rides on external factors such as the economy

B) the symbolic view of management, because success rides on external factors such as the economy

C) the symbolic view of management, because success rides on internal factors such as the judgment of Theodore and Janice

D) the omnipotent view of management, because success rides on internal factors such as the judgment of Theodore and Janice

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

33) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just gotten wind from a highly reliable source that games involving animals and ecosystems are likely to be extremely "hot" in the coming year. Theodore is excited because TJ Soft has two games in development that fit the animal/eco niche perfectly. Which component of the external environment will affect TJ Soft the most in this situation?

A) the demographic component

B) the political component

C) the sociocultural component

D) the global component

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

34) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just gotten wind from a highly reliable source that Congress is likely to take action in the coming year to ban violent games. TJ Soft has several games that could be considered violent. Which component of the external environment will affect TJ Soft the most in this situation?

A) the political/legal component

B) the demographic component

C) the technological component

D) the economic component

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

35) Why were the Baby Boomers so much more influential than other generations with respect to changing American tastes and culture?

A) The Baby Boomers came after World War II when lifestyles were really changing.

B) The Baby Boomers were a much more coherent group than other generations.

C) The Baby Boomers were a much larger group than other generations.

D) The Baby Boomers were a much more free-spirited group than other generations.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

36) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just gotten wind that engineers have developed a new computer system that works like the devices shown in the Steven Spielberg movie Minority Report in which users can control a sophisticated computer using their hands in midair. Janice sees this development as highly important to new games for TJ Soft. Which component of the external environment will affect TJ Soft the most in this situation?

A) the global component

B) the sociocultural component

C) the economic component

D) the technological component

Diff: 2

AACSB: Information technology

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

37) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just read an article that describes the explosion of computer games among young people in India using cell phones and simple computers. This generation in India has well over 300 million people in it, and if TJ Soft can capture just a tiny portion of that market it will be highly successful. Which component of the external environment will affect TJ Soft the most in this situation?

A) the technological component

B) the demographic component

C) the political component

D) the legal component

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

38) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and other kinds of software for consumers. Theodore has just read an article that says that the low interest rates that currently prevail are likely to end in the coming months. Theodore thinks that TJ Soft may need to apply for a loan now to avoid high costs later. Which component of the external environment will affect TJ Soft the most in this situation?

A) the global component

B) the sociocultural component

C) the economic component

D) the technological component

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

39) Today's managers must learn to cope with a greater level of change than those of the past.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

40) Holding on tightly to organizational habits is one of the foundations of long-term success.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

41) Events in other parts of the world have no effect on production activities in the United States.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

42) The external environment of an organization includes factors and forces that can affect how the organization operates.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

43) The components of an organization's external environment include a technological component and a political component.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

44) The sociocultural component of the external environment of an organization includes trends and traditions, but not basic attitudes and values.

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

45) The overall trend toward globalization is part of the political component of an organization's external environment.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

46) Due to the large size of the economy, organizations in the United States are insulated from global economic failures.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

47) After the recent economic crisis, managers in the United States have found that there is "smooth sailing" in the global economic arena.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

48) External factors such as jobs and prices of natural resources are important factors that can affect organizational decisions.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

49) After the recent economic crisis, conditions in the United States have improved much better and faster than in the rest of the world.

Diff: 1

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

50) Recent data shows that employment in the United States is up, especially in high wage jobs.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

51) While global trade has improved since the recent recession, Europe and Asia are experiencing greater growth than in the United States.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

52) Experts believe that in the future, income disparity between countries and individual wage earners will be eliminated.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

53) According to a recent poll, 50 percent of adults feel that economic inequality is not a problem.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

54) The symbolic view of management holds that an organization's performance is based solely on the decisions of managers.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

55) The omnipotent view of management holds that good managerial decisions result in an organization's success.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

56) According to the omnipotent view of management, American managers would not be blamed if their company experienced sluggish sales in an economic downturn.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

57) The quarterback of a football team assumes a largely symbolic role for his team because his performance largely determines the outcome of the game.

Diff: 3

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

58) According to the text, economic and demographic changes are two important components of the environment that constrain the actions of managers.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

59) The age of a population is one of its most important demographics.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

60) The phrase "demography is destiny" refers to the idea that older nations get tired, which causes their performance to slip.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

61) According to demographic predictions, the world's population is becoming older.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

62) Gen Xers are generally the children of the Baby Boomers.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

63) Generation Y is becoming one of the most influential age groups.

Diff: 2

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

64) In a short essay, describe an example in which the global component of an organization's external environment has a large impact on the organization itself.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Critical thinking

65) In a short essay, describe the main problem of economic inequality.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Concept

66) In a short essay, describe and give an example of a sharing economy.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

67) In a short essay, explain the difference between the symbolic and the omnipotent view of management.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

68) Explain the phrase "demographics is destiny" and give an example of this idea in today's world.

Diff: 2

AACSB: Analytical thinking

LO: 2.1: Explain what the external environment is and why it's important.

Question Category: Analytical

69) Which one of the following provides the best illustration of technology transforming how managers manage in the workplace?

A) Managers oversee very large design teams of employees.

B) Managers must supervise design teams more closely.

C) Managers oversee very large clerical and secretarial staffs working in a single location.

D) Managers oversee very small clerical and secretarial staffs who may work in various environments and locations.

Diff: 3

AACSB: Information technology

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

70) Which statement about the external environment and employment is true?

A) External environmental conditions improve employment during upswings and worsen employment during downturns.

B) External environmental conditions worsen employment during upswings and improve employment during downturns.

C) External environmental conditions have no effect on employment during upswings and worsen employment during downturns.

D) External environmental conditions worsen employment during upswings and have no effect on employment during downturns.

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

71) Which one of the following is likely to be the permanent result of the recent economic downturn in the United States?

A) Very few jobs were lost and have already been restored.

B) Today's workers have the same opportunities for full-time, permanent employment as they did before the recession.

C) Many employers today are using flexible work arrangements such as freelancers, temps, or part-time workers.

D) Wages for today's workers are higher under flexible working arrangements than they were the full-time permanent jobs before the recession.

Diff: 1

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

72) Which trend do most managers need to get used to in the coming years?

A) Most workers will be hired as permanent employees at a lower pay scale than they were in the past.

B) Many workers will be hired as consultants rather than as freelance employees.

C) Most workers will be hired as permanent employees rather than on a freelance basis.

D) Many workers will be hired on a freelance basis rather than as permanent employees.

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

73) Companies that operate in a ________ environment have the lowest amount of environmental uncertainty as illustrated in the environmental uncertainty matrix.

A) simple, stable

B) simple, dynamic

C) complex, stable

D) complex, dynamic

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

74) Which one of the following best defines environmental uncertainty?

A) the amount of innovation and creativity in an organization's internal environment

B) the amount of resources and expertise in an organization's internal environment

C) the amount of change and confidence in an organization's external environment

D) the amount of change and complexity in an organization's external environment

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

75) A software company innovates constantly to keep up with new rivals that are constantly appearing on the scene. The software industry itself has an enormous number of players to deal with, including retailers, online distributors, educational institutions, and government agencies. Where does the company belong on the uncertainty matrix?

A) simple and stable

B) simple and dynamic

C) complex and stable

D) complex and dynamic

Diff: 3

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

76) A TV reality show program essentially puts out the same product episode after episode, year after year, with little change and few rivals. The show exists in a TV industry that has hundreds of different components to keep track of. In which kind of environment does this program operate on the uncertainty matrix?

A) simple and stable

B) simple and dynamic

C) complex and stable

D) complex and dynamic

Diff: 3

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

77) Which one of the following is LEAST likely to be considered a stakeholder for a newspaper company, The Daily Recorder?

A) the paper boy who delivers the paper to customers

B) critics who claim that all newspapers are biased and dishonest

C) customers who buy the paper at newsstands

D) subscribers

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

78) Which one of the following is an internal stakeholder for the newspaper, The Daily Recorder?

A) the editor of The Daily Sun

B) the city council

C) shareholders in The Daily Sun

D) The Daily Recorder shareholders

Diff: 1

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

79) Starbucks, facing increasing competition from "designer" and fast-food coffee shops, must reduce its operating costs and is considering lowering the price it offers to pay for coffee beans. Which one of the groups below should be included in the discussion regarding coffee bean price changes?

A) Coffee bean farmers, who are internal stakeholders, must be represented.

B) Employees, who are internal stakeholders, must be allowed to voice their opinions.

C) Coffee bean farmers, who are external stakeholders, because the decision directly affects their livelihoods.

D) Shareholders, who are external stakeholders, should vote on such measures at the next shareholders' meeting.

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

80) The Daily Recorder is considering raising its price from 60 cents to 75 cents. Which stakeholders should it consider most in making this decision?

A) All stakeholders should be considered equally.

B) all internal stakeholders

C) all external stakeholders

D) its customers

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

81) The Daily Recorder is considering charging online readers a flat fee for access to the news on their computers and electronic devices. Which stakeholder should the paper NOT worry about informing?

A) the paper's online customers

B) the paper's rival, The Daily Sun

C) the unions that control the paper's workers

D) the paper's print subscribers

Diff: 2

AACSB: Information technology

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

82) The Total Freedom political party is trying to determine its position on climate change. Whom should the party consider as its stakeholders?

A) official party members

B) all potential voters

C) all people in the world

D) all people in the United States

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

83) Which one of the following identifies one reason why managers should put time into managing stakeholder relationships?

A) Managing stakeholder relationships can lead to less predictability of environmental changes.

B) Managing stakeholder relationships can lead to more predictability of environmental changes.

C) Managing stakeholder relationships can lead to innovations.

D) Managing stakeholder relationships can lead to higher organizational performance.

Diff: 3

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

84) What do most high performing companies have in common when it comes to stakeholder relationships?

A) High performing companies tend to consider the interests of all stakeholder groups when they make important decisions.

B) High performing companies tend to consider the interests of internal stakeholder groups only when they make important decisions.

C) High performing companies tend to consider the interests of external stakeholder groups only when they make important decisions.

D) High performing companies tend not to consider the interests of stakeholder groups when they make important decisions.

Diff: 3

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

85) New York Mayor Michael Bloomberg's proposed ban on supersized sugary drinks is reflective of which external organizational issue?

A) the increasing power of Generation X's

B) the symbolic role of managers

C) the importance of stakeholders

D) the increasing economic disparity between the rich and poor

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

86) A new competitor has entered the market served by ABC Corp. Which one of the following has the most legitimate right to be informed about the situation?

A) the stockholders

B) the media

C) the CEO's colleagues

D) the employees of the CEO's company

Diff: 2

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

87) The CEO of a major corporation is considering retirement in the near future. Which one of the following has the most legitimate right to be informed about the situation?

A) the media,

B) the stockholders,

C) the CEO's direct reports

D) the firm's customers

Diff: 2

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

88) The CEO of a major corporation experiences a well-publicized auto accident that leaves him hospitalized and partially disabled.Which one of the following do the CEO's stakeholders have the most legitimate right to be informed about?

A) whether the disability can impair judgment

B) whether the disability is long term or short term

C) whether the CEO continues to receive physical therapy

D) whether the CEO's salary will continue during his disability

Diff: 3

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

89) A major corporation has announced it is adding a step to its production process. Rumors are circulating that this will increase its carbon footprint. Which one of the following stakeholder groups has the most interest in this decision?

A) competitors

B) suppliers

C) media

D) social and political action groups

Diff: 2

AACSB: Ethical understanding and reasoning

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

90) The union of a major U.S. automaker is negotiating a new contract for its members and has threatened to take the members out on strike if its demands are not met. Which one of the following stakeholder groups has the most interest in the outcome of these negotiations?

A) competitors whose employees are also represented by this union

B) media

C) government

D) social and political action groups

Diff: 2

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

91) Which one of the following issues would the employees be most interested in?

A) a price increase imposed by suppliers

B) a price increase imposed on customers

C) changes in the Federal health care law that will impact their health insurance

D) the entrance of a new competitor into the industry

Diff: 2

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

92) Technology has changed the way managers manage by forcing them to keep track of employees in remote locations at all times of the day and night.

Diff: 2

AACSB: Information technology

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

93) An industry with a dynamic business environment that is also highly complex faces the maximum amount of environmental uncertainty.

Diff: 3

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

94) Environmental complexity refers to the number of components that an organization must deal with.

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

95) Given a choice, managers would prefer to operate in an environment that has a minimum of uncertainty.

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

96) A good manager considers the interests of all stakeholders equally when making an important decision.

Diff: 2

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

97) In a short essay, describe the parameters in an environmental uncertainty matrix.

Diff: 3

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

98) In a short essay, describe a real or fictional company that exists in cell 1 of the environmental uncertainty matrix.

Diff: 3

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

99) In a short essay, describe a real or fictional company that exists in cell 4 of the environmental uncertainty matrix.

Diff: 3

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Concept

100) In a short essay, identify all of the stakeholders in a typical apparel company such as the Gap and rank them in terms of importance.

Diff: 2

AACSB: Analytical thinking

LO: 2.2: Discuss how the external environment affects managers.

Question Category: Analytical

101) The greater the environmental uncertainty, the ________ managers have over their organizational outcomes.

A) less influence

B) more influence

C) less responsibility

D) more responsibility

Diff: 2

AACSB: Analytical thinking

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

102) The culture of an organization is analogous to the ________ of an individual.

A) skills

B) personality

C) motivation

D) ability

Diff: 1

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

103) Three important things to know about organizational culture is that it is 1) perceived, 2) descriptive, and 3) ________.

A) consistent

B) shared

C) ethical

D) visible

Diff: 3

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

104) Which of the following is NOT a common way in which corporate cultures are transmitted to employees?

A) stories

B) informal rituals

C) formal culture meetings

D) symbols

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

105) Southwest Airlines, which is an industry leader in providing benefits and the way it treats employees, is an example of which one of the following dimensions of organizational culture?

A) member identity

B) people focus

C) risk tolerance

D) conflict tolerance

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

106) A regularly scheduled morning meeting of employees would be an example of this method of transmitting organizational culture.

A) language

B) artifacts

C) corporate rituals

D) stories

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

107) The original source of an organization's culture usually reflects the vision and attitudes of ________.

A) the current president or CEO of the organization

B) the organization's original employees

C) contemporaries who are admired by the organization

D) the organization's founders

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

108) Apple, which lives and breathes new product development, emphasizes which dimension of organizational culture?

A) member identity

B) innovation

C) people focus

D) conflict tolerance

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

109) All of the following show why corporate rituals can be valuable in a corporate culture EXCEPT ________.

A) rituals help initiate new employees into the culture

B) rituals reinforce corporate values

C) rituals symbolize key ideas that are important in the culture

D) rituals intimidate and silence critics of the corporate culture

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

110) Art Fry of 3M developed a weak glue that was not permanent when applied to surfaces, but he had no application for it–until he saw the choir director using small pieces of paper to mark pages in the hymnal and watched as those papers fell out. After applying his glue to small squares of paper, he solved the choir director's problem and created Post-It Notes® What is the implicit message in a story like the tale of the Post-it® note and Art Fry?

A) Your problems are not as difficult as the problems that Art Fry faced so you shouldn't complain.

B) You can solve your problems in novel and creative ways just like Art Fry.

C) Your problems are much harder than the problems that Art Fry faced, but the tools you have to solve them are much better.

D) Your problems are not like the problems that Art Fry faced so you can't solve them in the same way.

Diff: 2

AACSB: Analytical thinking

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

111) How is a corporate ritual different from a corporate story or legend?

A) A ritual does not attempt to teach a specific lesson while a story or legend does.

B) A story or legend does not attempt to teach a specific lesson while a ritual does.

C) A ritual is not to be taken seriously while a story or legend is.

D) A story or legend is not to be taken seriously while a ritual is.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

112) How might a manager at WorldNow, a technology company that manufactures innovative oil drilling solutions, use its drill to motivate employees?

A) by saying that if employees don't work hard, company rivals will "drill" WorldNow

B) by saying that if employees work hard, WorldNow will be able to "drill" its competitors

C) by saying that like an electric drill that can work all day without quitting, employees need to be persistent

D) by saying that to solve a tough problem, employees need to "drill" down to the truth of the situation

Diff: 2

AACSB: Analytical thinking

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

113) Corporate rituals should not be followed if they don't fit with the current organizational values and goals.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

114) A company's organizational culture refers to a system of shared political beliefs.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

115) Employees learn organizational culture by reading official organization documents and histories.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

116) An organization's founder has little influence on its culture.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

117) Using special language and unique terms to describe things is part of how culture is communicated.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

118) How employees dress has nothing to do with an organization's culture.

Diff: 3

AACSB: Diverse and multicultural work environments

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

119) Corporate rituals are repetitive sequences of activities that express and reinforce important organizational values and goals.

Diff: 2

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Concept

120) In a short essay, describe how an organization obtains its culture and give an example.

Diff: 3

AACSB: Analytical thinking

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

121) In a short essay, give an example of how an organizational story can have an impact on the organization itself.

Diff: 3

AACSB: Analytical thinking

LO: 2.3: Define what organizational culture is and explain why it's important.

Question Category: Analytical

122) Organizational culture affects managers in two main ways: 1) its effect on what employees do and how they behave and 2) ________.

A) the benefits and rewards established by the founder

B) its effect on organizational structure

C) its effect on what managers do

D) the communication pattern between organizational members

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

123) When rating how deeply held values are within an organization, culture is ranked from ________ to ________.

A) strong; weak

B) long-term; short-term

C) deep; shallow

D) static; dynamic

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

124) Which one of the following most accurately reflects the difference between strong cultures and weak cultures?

A) Strong cultures tend to encourage employee innovation, while weak cultures do not.

B) Weak cultures are found in most successful organizations, whereas strong cultures are relatively rare.

C) Strong cultures have less of an influence on employee behavior than do weak cultures.

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

125) What determines whether an organization has a strong culture or a weak culture?

A) how much employees are compensated for their efforts and whether they think their compensation is fair

B) how much employees accept the organization's key values and are committed to those values

C) whether or not employees feel that the organization is ethical

D) how fairly employees feel that they are being treated

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

126) Which kind of culture most affects the way managers plan?

A) A weak organizational culture gives managers the freedom to make their own decisions.

B) A strong organizational culture gives managers the freedom to make their own decisions independent of organizational values.

C) A strong organizational culture helps guide the way managers plan.

D) A weak organizational culture helps guide the way managers plan.

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

127) Which one of the following statements about organizational culture is correct?

A) An organization with a weak culture would need fewer written rules and regulations to conduct business than a strong culture.

B) An organization with a strong culture would need more written rules and regulations to conduct business than a weak culture.

C) An organization with a strong culture would need fewer written rules and regulations to conduct business than a weak culture.

D) Both weak and strong organizational cultures need as many written rules and regulations to conduct business as possible.

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

128) How does the Apache Corp. communicate its attitude toward risk taking to its employees?

A) through actions that reward risk taking and initiative

B) through actions that discourage risk taking and initiative

C) through written policies and rules that reward risk taking and initiative

D) through written policies and rules that discourage risk taking and initiative

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

129) Which kind of organizational culture do the following values describe?

1. Don't be lazy or sloppy.

2. It's better to try a good idea and fail than to stick with a bad idea.

3. When you think your product is perfect, go back and try to make it better.

A) a company that values innovation more than quality

B) an innovative, risk-taking company that has high standards

C) a company that values quality more than innovation

D) a conservative, risk-averse company that has high standards

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

130) Which one of the following will a "ready-aim-fire" culture tend to do with plans for building a new factory?

A) carefully study the plans before building

B) get the building process underway before the plans are finished in order to avoid possible objections to expansion

C) briefly study the plans before building

D) carry out the planning and building process simultaneously to make sure that the plans are updated continuously

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

131) Which company would be best suited to a "ready-aim-fire" culture?

A) a chocolate bar company that has made the same successful products for decades

B) a pharmaceutical company that is searching for a new way to prevent obesity

C) a cell phone company that is seeking to gain market share

D) a camera company that is worried that cell phones are taking over its business

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

132) Which company would be best suited to a "ready-fire-aim" culture?

A) a chocolate bar company that has made the same successful products for decades

B) a pharmaceutical company that is searching for a new way to prevent obesity

C) a cell phone company that is seeking to gain market share

D) a camera company that is worried that cell phones are taking over its business

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

133) Which managerial planning decision is most affected by organizational culture?

A) the degree of risk that plans contain

B) how much autonomy employees should have

C) how to implement the best leadership styles

D) how much to empower employees

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

134) Which managerial controlling decision is most affected by organizational culture?

A) how to improve employee job satisfaction

B) how much environmental scanning should be done

C) how much to empower employees

D) how to deal with sexual harassment

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

135) Which managerial organizing decision is most affected by organizational culture?

A) how much environmental scanning should be done

B) how to deal with employee disagreements

C) how to structure employee evaluations

D) whether workers should work individually or in teams

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

136) Which managerial controlling decision is most affected by organizational culture?

A) the amount of autonomy that employees should have

B) how much environmental scanning should be done

C) the amount of risk that is acceptable

D) how to structure employee evaluations

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

137) Strong organizational culture can eliminate the need for rules and regulations.

Diff: 3

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

138) In a ready-aim-fire culture, managers are more likely to carefully study a problem before making a decision.

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

139) Strong cultures make a manager's job easy because all organizational policies, practices, and traditions are provided in writing for easy reference.

Diff: 2

AACSB: Diverse and multicultural work environments

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

140) In a ready-fire-aim culture, managers will endlessly analyze a situation before taking action.

Diff: 1

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

141) Organizational culture largely determines how much risk members of an organization will take.

Diff: 2

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Concept

142) In a short essay, describe the difference between a strong and a weak organizational culture and how both affect organizational behavior.

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

143) Write a series of rules that a company could use to encourage its employees to be risk-takers and innovators.

1. Don't look for the obvious answer to every question.

2. If you are doing the same thing that your competition is doing, then you are probably doing the wrong thing.

3. Be like a shark: if you aren't moving forward you begin to drown.

4. "Dumb" ideas are useful. A person needs to go through 99 dumb ideas to get one "smart" idea.

Diff: 2

AACSB: Analytical thinking

LO: 2.4: Describe how organizational culture affects managers.

Question Category: Analytical

144) Which one of the following statements exemplifies a culture that is supportive of innovation?

A) Employees must obtain approval before taking any action.

B) Employees are allowed to independently define their work.

C) Managers select employees for problem-solving teams.

D) Production output supersedes quality.

Diff: 2

AACSB: Analytical thinking

LO: 2.5: Describe current issues in organizational culture.

Question Category: Analytical

145) Which one of the following management actions is most likely to create a culture of sustainability?

A) Hold daily production meetings emphasizing quantities shipped.

B) Share customer product complaints with employees.

C) Hire a paper shredding company to remove recyclables.

D) Involve employees in finding ways to eliminate waste in the production process.

Diff: 2

AACSB: Analytical thinking

LO: 2.5: Describe current issues in organizational culture.

Question Category: Analytical

146) Which one of the following statements best describes an ethical culture?

A) Raoul takes his friends out to dinner, asks if any of them has ever heard of his company's products, and claims the cost of the dinner on his sales expense report.

B) Patel is afraid to report his co-worker's behavior for fear of reprisal.

C) Lovee double-checks her reimbursement request to make sure only business-related expenses are included.

D) Ahmed under-reports the defects of his production line so he can earn his quality bonus this month.

Diff: 1

AACSB: Analytical thinking

LO: 2.5: Describe current issues in organizational culture.

Question Category: Analytical

147) Corporate rituals have no influence on the ethical (or not) behavior of managers and employees.

Diff: 1

LO: 2.5: Describe current issues in organizational culture.

Question Category: Concept

148) Creating a learning culture depends on buy-in from first-line managers and spreads both upward and downward form there.

Diff: 2

LO: 2.5: Describe current issues in organizational culture.

Question Category: Concept

149) List and discuss four characteristics of an innovative culture.

The eight characteristics are:

1. Challenge and involvement. Employees are involved in, motivated by, and committed to the long term goals and success of the organization.

2. Freedom. Employees independently define their work, exercise discretion, and take initiative in their day-to-day activities.

3. Trust and openness. Employees are supportive and respectful of each other.

4. Idea time. Individuals have time to elaborate on new ideas before taking action.

5. Playfulness/humor. The workplace is spontaneous and fun.

6. Conflict resolution. Individuals make decisions and resolve issues based on the good of the organization versus personal interest.

7. Debates. Employees are allowed to express opinions and suggest ideas to be considered and reviewed.

8. Risk taking. Managers tolerate uncertainty and ambiguity, and employees are rewarded for taking risks.

Diff: 3

LO: 2.5: Describe current issues in organizational culture.

Question Category: Concept

150) Identify four ways companies can create a culture of sustainability.

The four ways identified by the authors are:

1. Get everyone involved in defining what sustainability means to the organization. When employees aren't "on board" with it, its going to be hard to improve or measure sustainability efforts.

2. Get employees, either individually or in teams, involved in finding ways to be more sustainable.

3. Create rituals to reinforce the importance of sustainability. For instance, a day/week devoted to different sustainability practices or beginning every corporate meeting with a sustainability topic.

4. Use rewards. Tie employee bonuses to meeting sustainability goals. Or give prizes when an employee does something that supports or exemplifies the sustainability culture.

Diff: 2

LO: 2.5: Describe current issues in organizational culture.

Question Category: Concept