Management Ch. 3

67. Governments are part of the __________ environment of organizations. A) unplanned B) task C) general D) internal E) sociocultural

B

55. Diversity is synonymous with differences.

False

6. The Board of Directors of a firm consists entirely of its top executives.

False

10. Customers are those who pay to use an organization's goods or services.

True

85. Which of the following is considered a demographic characteristic? A) lifestyle B) gender C) health and fitness level D) personal influences E) unemployment

B

93. Issues of equity and fairness are usually tied to which of the following approaches to deciding ethical dilemmas? A) utilitarian B) justice C) individual D) moral idealism E) moral rights

B

68. Demographic forces are part of the __________ environment of organizations. A) legal B) task C) general D) internal E) sociocultural

C

71. Which of the following is an example of an internal stakeholder of an organization? A) Distributors B) Suppliers C) Unions D) Individual workers E) Media

D

73. Which of the following is an example of an external stakeholder of an organization? A) the barista at Starbucks B) the Starbucks district manager C) the President and CEO of Starbucks D) owners of Starbucks stock E) customers who go to Starbucks for a latte

E

1. Organizations with high turnover and low productivity are usually called "learning organizations."

False

17. Government regulators are regulatory agencies that establish ground rules under which organizations may operate.

True

18. External stakeholders include the government.

True

4. Internal stakeholders include the employees of an organization.

True

65. Wal-Mart's low wage policy has forced Safeway to do which of the following? A) reduce benefits for their workers B) increase their hourly wage C) increase their product prices D) decrease their hourly wage E) increase benefits for their workers

A

76. A(n) __________ is a person or organization that provides raw materials, services, equipment, labor, or energy to other organizations. A) supplier B) distributor C) strategic ally D) special interest group E) ESOP

A

83. Unemployment rates are examples of _____________ forces in an organization's general environment. A) economic B) technological C) political-legal D) sociocultural E) demographic

A

87. Whistleblowers are most likely presented with which of the following? A) an ethical dilemma B) an idealistic situation C) a professional behavior by their boss D) coworkers that enjoy their company E) sociocultural trends

A

88. Standards of right and wrong that influence behavior are known as A) ethics. B) ethical behavior. C) morals. D) a value system. E) values.

A

94. Drug companies are often criticized for selling their drugs at exorbitant prices. When asked, they will often say that the pricing is fair given the amount of research and development that has gone into the drug. Without this high price, they argue that other new drugs that will help millions of people around the world could not be developed. Yet, those who cannot afford the high price and may die without the drug feel unjustly discriminated against. The drug companies are practicing which approach to this ethical dilemma? A) utilitarian B) justice C) fairness D) moral idealism E) moral rights

A

95. The Sarbanes-Oxley Act of 2002 requires that a company's chief executive officer and chief financial officer must comply with which of the following? A) must certify financial reports B) must keep a personal line of credit open C) must hire an ethics officer D) must hire a diversity officer E) must set procedures and guidelines for the Board of Directors

A

97. Which of the following statements about a code of ethics is most true? A) Most codes of ethics offer guidance on how to treat stakeholders. B) The purpose of a code of ethics is to keep top management out of jail. C) Most codes of ethics prohibit bribes unless it is the accepted way of doing business in a foreign country. D) Workforce diversity is never covered in a code of ethics; instead it is covered in its own diversity code. E) A code of ethics is almost always an informal understanding between people who work for a particular organization.

A

98. Thomas, an assembly line worker for SoftTools Company, observes that his graveyard shift (midnight - 8 a.m.) manager removes safety guards from some machines so that the work can be done faster. Thomas sends a letter to top management reporting this. Thomas is a: A) whistleblower B) disloyal employee C) victim D) activist E) gossip

A

72. People who can claim an organization as their legal property are called A) employees. B) owners. C) the Board of Directors. D) customers. E) financial institutions.

B

75. A(n) __________ is a person or organization that helps another organization sell its goods and services to customers. A) supplier B) distributor C) strategic ally D) special interest group E) upstream company

B

77. Two drug companies agree to work together to pool their research and development funds to develop a new drug for arthritis. In doing so, these two organizations can best be described as A) a union. B) strategic allies. C) having analyzed their internal environment. D) having influenced the mass media. E) having empowered their employees.

B

79. ChemTech International is being picketed by a group of people who live by its biggest plant. The group is concerned about ChemTech's disposal of waste products into nearby waterways. In this instance, ChemTech is most likely dealing with __________ part of its __________ environment. A) special-interest groups; task B) local communities; task C) sociocultural; general D) sociocultural; task E) local communities; general

B

82. The general environment of an organization is also known as its A) microenvironment. B) macroenvironment. C) internal environment. D) task environment. E) climate.

B

84. In the insurance industry, claims files previously maintained as paper documents are now stored on computers. This is an example of __________ forces in an organization's _________ environment. A) economic; general B) technological; general C) sociocultural; general D) economic; task E) technological; task

B

89. The pattern of values within an organization is known as its A) code of ethics. B) value system. C) moral code. D) moral rights. E) code of conduct.

B

91. A manager, attempting to decide what decision will result in the individual's best long-term interests, is engaged in the __________ approach to deciding an ethical dilemma. A) utilitarian B) individual C) moral-rights D) justice E) environmental

B

69. United Airlines is 55% employee owned through a mechanism called A) participative management. B) bond sharing. C) employee stock ownership. D) profit sharing. E) the Callaway plan.

C

78. The Environmental Protection Agency (EPA) administers environmental standards in the U.S. The EPA represents __________, part of an organizations' __________. A) local communities; task environment B) financial institutions; internal environment C) government regulators; task environment D) special interest groups; external environment E) political-legal forces; general environment

C

81. Which of the following statements about the mass media is true? A) Exxon had an excellent media strategy in dealing with the Valdez incident. B) The mass media has very little power. C) No manager can afford to ignore the power of the mass media. D) Only rare companies have public-relations people to communicate with the press. E) Thankfully, it is not necessary for top-level executives to deal with the media.

C

96. New MBAs sometimes expect the employees they supervise to be obedient for obedience's sake. The level of personal moral development for which this statement is an example is the __________ level according to Kohlberg. A) conventional B) unconventional C) preconventional D) postconventional E) anti-conventional

C

100. __________ is the notion that corporations are expected to go above and beyond following the law and making a profit. A) The blue sky concept B) The over the hill concept C) Corporate paternal responsibility D) Corporate social responsibility E) Corporate ethical responsibility

D

66. Employees are part of the __________ environment of organizations. A) external B) task C) general D) internal E) sociocultural

D

70. The group responsible for setting the organization's overall strategic goals and for approving decisions and salaries of top management is known as the A) Board of stockholders. B) Board of shareholders. C) Board of Investors. D) Board of Directors. E) Board of intrapreneurs.

D

74. Which of the following is an example of a group in an organization's task environment? A) employees B) owners C) company CEO D) mass media E) Board of Directors

D

80. A human rights organization is urging consumers to boycott products made by Outbound Clothing because Outbound exploits labor in less developed countries where its manufacturing facilities are located. Outbound is dealing with __________, part of its __________ environment. A) special-interest groups; general B) sociocultural forces; general C) mass media; task D) special-interest groups; task E) sociocultural forces; task

D

86. Which of these is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal? A) ethics B) ethical behavior C) moral decision D) ethical dilemma E) idealistic situation

D

92. Pat, a manager at State University, is deciding how to set up a procedure for registering on-line that gives students fair access to courses. Pat is engaged in the ________ approach. A) utilitarian B) individual C) moral-rights D) justice E) environmental

D

99. A manager's duty to take actions that will benefit the interests of society as well as of the organization is known as A) philanthropy. B) ethics. C) moral rights. D) social responsibility. E) the profit motive.

D

90. __________ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. A) Ethics B) Ethical behaviors C) Morals D) Value systems E) Values

E

11. Customers are the focus of "for-profit" organizations only.

False

13. A supplier is a person or an organization that provides supplies to consumers.

False

14. A distributor is a person or an organization that helps a consumer sell his or her goods on eBay.

False

16. Alone, publishers of magazines represent a good example of strategic allies

False

2. The internal environment of an organization includes stakeholders, but the external environment does not.

False

24. Factors such as unemployment conditions and interest rates would be considered part of demographic forces in an organization's general environment.

False

27. Antitrust issues are part of the international forces confronting a company.

False

28. The economic integration of the European Union can best be considered part of economic forces.

False

3. A stakeholder is anyone who has stock in a particular firm.

False

30. A situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal is called social performance.

False

34. A manager performing a "cost-benefit analysis" is approaching a decision from the individual approach.

False

35. The approach to decision making that is guided by respect for fairness and equity is the utilitarian approach.

False

39. The first stage of personal moral development is conventional.

False

40. The purpose of a code of ethics is to state an organization's expectations for all its external stakeholders.

False

41. A code of ethics is usually a guarantee that the company and its employees maintain high ethical standards of behavior.

False

42. Organizations that want to promote ethical behavior within should provide codes of ethics for employees, but ethics training programs are not needed or beneficial.

False

46. Corporate social responsibility (CSR) is the notion that corporations are expected to be as profitable as possible.

False

5. All firms have a Board of Directors.

False

50. Sustainability is defined as economic development that meets the needs of the past without compromising the needs of the present.

False

58. Internal dimensions of diversity include an element of choice; they consist of the personal characteristics that people acquire, discard, or modify throughout their lives.

False

59. External dimensions of diversity are those human differences that exert a powerful, sustained effect throughout every stage of our lives.

False

61. The "glass ceiling" is a concept that applies to minorities, but not to women.

False

9. The task environment consists of the internal environment that explains to workers their goals for the day.

False

12. Competitors are people or organizations that compete for customers or resources.

True

15. "Strategic allies" describes the relationship of two organizations that join forces to achieve advantages neither can perform as well alone.

True

19. To a commercial airline, the Federal Aviation Agency is an example of a stakeholder.

True

20. The World Trade Organization is an example of a government regulator.

True

21. An example of a special-interest group is the National Rifle Association (NRA).

True

22. Another term for "general environment" is the "macroenvironment."

True

23. Technological forces are part of an organization's general environment.

True

25. Entire industries have been rocked when the culture underwent a lifestyle change that affected the industry's product or services.

True

26. Demographic forces include influences on an organization arising from changes in the characteristics of a population.

True

29. The standards of right and wrong that influence behavior are called ethics.

True

31. Ethical behavior is behavior that is accepted as "right" as opposed to "wrong" according to ethical standards.

True

32. Values are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior.

True

33. A value system is the pattern of values within an organization.

True

36. Ethical behavior in the individual approach is guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest.

True

37. The moral-rights approach is guided by respect for the fundamental rights of human beings.

True

38. The Sarbanes-Oxley Act establishes requirements for proper financial record keeping for public companies and penalties for noncompliance.

True

43. The law prohibits employers from firing employees who report workplace hazards.

True

44. A whistleblower is an employee who reports organizational misconduct to the public.

True

45. Social responsibility is a manager's duty to take actions that will benefit the interests of society as well as of the organization.

True

47. If ethical responsibility is about being a good individual citizen, social responsibility is about influencing firms to be good organizational citizens.

True

48. According to Friedman, the social responsibility of business is to make profits.

True

49. Blended value suggests that all investments are understood to operate simultaneously in both economic and social realms.

True

51. Philanthropy means making charitable donations to benefit humankind.

True

52. Bill Gates of Microsoft is an example of a philanthropist.

True

53. According to recent research, 80% of people indicated that they buy a firm's goods or services partly on their perception of its ethics.

True

54. Ethical behavior and social responsibility give an organization a clear competitive advantage.

True

56. Personality, internal dimensions, external dimensions, and organizational dimensions are the four layers of diversity on Rowe's "diversity wheel."

True

57. Personality is defined as the stable physical and mental characteristics responsible for a person's identity.

True

60. Traditionally, the further up the pay scale and the higher the education level, the wider the earnings gap between men and women.

True

62. The Americans with Disabilities Act requires organizations to reasonably accommodate an individual's disabilities.

True

63. "Underemployed" refers to people who work at jobs that require less education than they have.

True

64. "Ethnocentrism" is the belief that one's native country, culture, language, abilities, or behavior is superior to those of another culture.

True

7. In an organization's environment, internal stakeholders include the owners of an organization.

True

8. The two parts of the external environment are the task environment and the general environment.

True