BASIC MANAGEMENT Ch. 3 notes

In general, in a growing economy, more people are working and wages are growing, and therefore consumers have relatively more money to spend.

True

Managers often do a poor job of identifying potential competitors because they tend to focus on only two or three well-known competitors with similar goals and resources.

True

Organizational heroes are organizational people admired for their qualities and achievements within an organization.

True

Under the Family and Medical Leave Act, employees who have been on the job one year are guaranteed twelve weeks of unpaid leave per year.

True

_____ is the abundance or shortage of critical organizational resources in an organization's external environment.

Resource scarcity

_____ is the degree to which a company relies on a provider because of the importance of the provider's product to the company and the difficulty of finding other sources of that product.

Supplier dependence

Which of the following forms a component of the specific environment of an organization?

The customers

Which of the following is a tactic in which an advocacy group actively tries to persuade consumers not to purchase a company's goods or services?

A product boycott

_____ are groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

Advocacy groups

_____ is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

Behavioral addition

_____ is the degree to which a supplier relies on a customer because of the importance of that customer to the supplier's sales and the difficulty of finding other customers for its products.

Buyer dependence

_____ are graphic depictions of how managers believe environmental factors relate to possible organizational actions.

Cognitive maps

_____ are defined as companies in the same industry that sell similar products or services to customers.

Competitors

Environmental complexity refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

False

Environmental scanning does not contribute to organizational performance.

False

Environmental uncertainty refers to the abundance or shortage of critical organizational resources in an organization's external environment.

False

Opportunistic behavior focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers.

False

Proactive monitoring of customers involves identifying and addressing customer trends and problems after they occur.

False

Reactive customer monitoring involves identifying and addressing customer needs, trends, and issues before they occur.

False

Sponsors are companies in the same industry that sell similar products or services to customers.

False

Supplier dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products.

False

The dairy industry is an excellent example of a complex external environment.

False

Under the 1991 Civil Rights Act, if an employee is sexually harassed by anyone at work, the harasser—not the company—is liable for damages, attorneys' fees, and back pay.

False

_____ is a tactic that typically involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and creating controversy that is likely to receive extensive news coverage.

Media advocacy

In the context of federal regulatory agencies and commissions, the _____ stops companies from engaging in unfair workforce practices.

National Labor Relations Board

_____ refers to a transaction in which one party in the relationship benefits at the expense of the other.

Opportunistic behavior

_____ refers to the values, beliefs, and attitudes shared by organizational members.

Organizational culture

Which of the following is a component of the general environment that indirectly affects all organizations?

Political/legal trends

_____ involves identifying and addressing customer needs, trends, and issues before they occur.

Proactive monitoring of customers

Which of the following is the least aggressive tactic used by advocacy groups?

Public communications

In the context of the external environment of a firm, _____ involves searching the environment for important events or issues that might affect an organization.

environmental scanning

The economy is a part of the _____ that influences all organizations.

general environment

The _____ component of the specific environment of an organization consists of rules that govern the business practices and procedures of specific businesses and professions.

industry regulation

Organizational members use _____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

organizational stories

In the context of the number and the intensity of external factors in the environment that affect organizations, a(n) _____ is defined as an environment with few environmental factors.

simple environment

In the context of creation and maintenance of organizational cultures, a primary source of organizational culture is _____.

the company founder