Management Chapter 2 Test Bank

35. When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic, Cuban, and Latin American news and sports, it is responding to changes in the __________ environment. a. sociocultural b. technological c. economic d. supply chain e. geographic

a. sociocultural

66. A senior manager at the car manufacturer Big Rigs, Inc. sees that turbulence in the Middle East is increasing, which will likely significantly drive up the cost of oil. This is an example of (a) _____. a. strategic issue b. boundary spanning c. merger d. joint venture e. uncertainty

a. strategic issue

33. __________ is(are) included in an organization's task environment. a. Suppliers b. Accounting procedures c. Technology d. Economics e. Demographic characteristics

a. suppliers

47. Culture can be defined as ______. a. the set of key values, beliefs, understandings, and norms shared by members of an organization b. a figure who exemplifies the deeds, character, and attributes of an environment c. an object, act, or event that conveys meaning to others d. a narrative based on true events that is repeated frequently and shared by organizational employees e. a planned activity at a special event that is conducted for the benefit of an audience

a. the set of key values, beliefs, understandings, and norms shared by the memebers of an organization

71. One organization values its longevity and the history of its business, which was started by a single family about a hundred years ago. Which of the following would be a fitting symbol for this organization? a. Their first dollar ever made, framed up on the wall b. The saying "We're a family here for your family." c. New art on the walls every year d. Rooms where employees can meditate and do yoga e. An annual event during which customers are given homemade cookies

a. their first dollar ever made, framed up on the wall

53. Involvement culture emphasizes a(n) __________ focus on the participation of employees to adapt rapidly to changing needs from the environment. a. external b. internal c. structural d. competitive e. technological

b. internal

37. The __________ dimension of the general environment includes federal, state, and local government regulations. a. technological b. legal-political c. economic d. sociocultural e. international

b. legal-political

63. Large public companies must disclose the pay gap between their CEOs and rank-and-file employees. This is a result of which general environment dimension? a. The economic dimension b. The legal-political dimension c. The international dimension d. The natural dimension e. The technological dimension

b. the legal-political dimension

75. What is true of companies that fall into Quadrant A? a. They are most likely to be successful in the long run. b. They focus primarily on bottom-line results. c. Their shared cultural values are strong. d. They work effectively and maintain good work-life balance. e. Their culture is termed a high-performance culture.

b. they focus primarily on bottom-line results

48. The level of corporate culture in which values are so deeply embedded that members are no longer consciously aware of them takes the form of _____. a. invisible artifacts b. underlying assumptions and beliefs c. explicit code of conduct d. dress and office layout e. slogans and ceremonies

b. underlying assumptions and beliefs

38. Which of the following roles is assumed by people and/or departments that link and coordinate the organization with key elements in the external environment? a. Figurehead b. Liaison c. Boundary spanning d. Disturbance handler e. Leader

c. boundary spanning

39. The people and organizations in the environment who acquire goods or services from the organization are ______. a. competitors b. suppliers c. customers d. employees e. the labor market

c. customers

73. Which of the following actions would be most consistent for an organization with involvement culture? a. Encouraging, at times, aggressive competition b. Giving orderly instructions for employees to methodically follow c. Refusing to lay off employees during a recession d. Rewarding employees for ambitious goals e. Emphasizing the need to solve problems as quickly as possible

c. refusing to lay off employees during a recession

50. A __________ is a narrative based on true events that is repeated frequently and shared among organizational employees. a. symbol b. slogan c. story d. hero e. culture

c. story

61. A clothing store decides to expand to the international market and follows the same strategy in Europe and Asia that it did in North America. Their sales in Asia fail to pick up. What general environment dimension is affecting this company? a. The technological dimension b. The economic dimension c. The international dimension d. The sociocultural dimension e. The natural dimension

c. the international dimension

67. Which of the following is an example of an organization using big data analytics? a. A political lobbyist influencing the government to take action on behalf of an electric company b. A baseball team recruiting pitchers who the managers like and think will work hard c. A health insurance company maintaining a list of how many customers are behind on big medical bills and their addresses d. A bank studying which customers to offer a certain credit card based on credit risk and other characteristics e. A technology firm collecting all the information they possibly can about their number one competitor

d. a bank studying which customers to offer a certain credit card based on credit risk and other characteristics

69. For its twentieth anniversary, a restaurant organizes a "neighborhood cookout" style event in their parking lot. Near the end of the event, they wheel out a large cake and give every partygoer a coupon for 20 percent off their next meal. This is an example of _______. a. a story b. a hero c. culture d. a ceremony e. a symbol

d. a ceremony

54. Which of the following types of culture values and rewards a methodical, rational, and orderly way of doing things? a. Achievement culture b. Involvement culture c. Accomplishment culture d. Consistency culture e. Adaptability culture

d. consistency culture

60. The task environment includes factors that ________ affect an organization's operations and performance. a. indirectly b. might c. occasionally d. directly e. almost never

d. directly

36. The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest rates is called the _______. a. legal-political dimension b. sociocultural dimension c. technological dimension d. economic dimension e. task dimension

d. economic dimension

31. All of the following are a part of an organization's task environment, EXCEPT ________. a. customers b. labor markets c. competitors d. employers e. suppliers

d. employers

58. Executives at One World Advertising have learned that it is necessary to establish strong personal relationships and emotional bonds with Chinese business partners. This relates most closely to which of the following dimensions of the general business environment? a. Natural b. Sociocultural c. Legal-political d. International e. Internal

d. international

32. GreenTech Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally. The company sources most of its cocoa and sugar from South American companies. This business relationship highlights which of the following dimensions of the task environment? a. Customers b. Competitors c. Labor market d. Culture e. Suppliers

e. suppliers

15. The consistency culture has an external focus and adapts quickly to a dynamic environment. a. True b. False

False

7. An example of part of the legal-political dimension of the general environment includes the government's report on the unemployment rate. a. True b. False

False

6. If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is considered a supplier for Westvaco. a. True b. False

True

8. A political lobbyist for General Motors fills an essential boundary-spanning role. a. True b. False

True

41. Roberta is a top-level executive at a banking institution. She spends a significant part of her day meeting with local government officials, everyday consumers, and federal banking officials to address key issues in the banking industry. Roberta's role can best be described as _____. a. boundary spanning b. adaptive c. interorganizational d. external e. internal

a. boundary spanning

52. Adaptability culture emerges in an environment that requires __________ response and __________ decision making. a. fast; high-risk b. fast; low-risk c. slow; high-risk d. slow; low-risk e. regulated; low-risk

a. fast; high risk

57. In a study by Kotter and Heskett, evidence is provided to support the claim that __________ is important for performance. a. managing cultural values b. leading partnerships within an industry c. surveying the external environment d. focusing on production e. empowering employees

a. managing cultural values

30. _________ environment includes all elements existing outside the boundary of the organization that have the potential to affect the organization. a. Organizational b. Internal c. Task d. General e. Technological

a. organizational

59. What is the reason that two companies enter a joint venture together? a. One company plans on buying the other. b. Both companies are in danger of going bankrupt. c. The project is too expensive for one company to handle alone. d. The companies are no longer competitors. e. One company has decided to become nonprofit.

c. the project is too expensive for one company to handle alone

40. When managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes, this is known as ______. a. adaptation b. risk c. uncertainty d. competitive intelligence e. boundary spanning

c. uncerainty

77. Which of the following companies falls into Quadrant A? a. The LEGO Group and its emphasis on creativity b. GE and its culture whereby risk is rewarded and accountability is key c. Zynga and its constant challenges to meet lofty goals d. Johnson & Johnson and its encouragement for employees to work on team and remain open to change e. Southwest Airlines and its focus on creating an "employee first" culture

c. zynga and its constant challenges to meet lofty goals

62. What is one of the main focus points of the sociocultural dimension of the general environment? a. Government regulations at local, state, and federal levels b. New opportunities for the United States in other countries c. The general economic health of a country or region d. Scientific and technological advancements e. Demographic characteristics, norms, and values

e. demographic characteristic

55. __________ plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities, or organizational crises. a. Mission statement b. Vision statement c. Competitive intelligence d. Employee training e. Corporate culture

e. corporate culture

1. The most recent U.S. census data show that about one-third of all babies born in 2011 were members of minority group. a. True b. False

False

12. The set of key values, beliefs, understandings, and norms that are shared by members of an organization are combined to create the symbols of an organization. a. True b. False

False

14. An achievement culture is found in an environment that is dynamic and requires high-risk decision making. a. True b. False

False

16. In today's business environment, companies are most likely to build a consistency culture. a. True b. False

False

19. In the quadrants of organizational performance and culture, companies in Quadrant D put high emphasis on both culture and solid business performance as drivers of organizational success. a. True b. False

False

2. The task environment dimension of a company includes all elements that occur naturally on Earth, including plants, animals, rocks, and resources such as air, water, and climate. a. True b. False

False

21. Managers must be careful not to overcommunicate new cultural values; otherwise, employees will get bored. a. True b. False

False

23. The just-in-time production strategy decreases inventory costs, but most companies are not willing to take on the risk that comes with it. a. True b. False

False

24. Disney's cable network division has been suffering in recent years mostly due to internal organizational factors. a. True b. False

False

26. Slogans express a key corporate value but rarely have any special meanings to employees. a. True b. False

False

28. Marketing and technology companies are most likely to choose an achievement culture. a. True b. False

False

4. Some companies are so successful that they do not have any competitors. a. True b. False

False

10. A joint venture involves a strategic alliance or program by two or more organizations. a. True b. False

True

11. Physical symbols are associated with the surface level of organizational culture. a. True b. False

True

13. A narrative based on events within the organization that is frequently repeated is called an organizational story. a. True b. False

True

17. Corporate culture plays a key role in creating an organizational climate that enables learning and innovative responses to threats from the external environment, challenging new opportunities or organizational crises. a. True b. False

True

18. In the quadrants of organizational performance and culture, Quadrant A represents organizations that are focused primarily on bottom-line results and pay little attention to organizational values. a. True b. False

True

20. The cultural leader articulates a vision for the organizational culture that employees can believe in. a. True b. False

True

22. General environment dimensions affect an organization indirectly. a. True b. False

True

25. A manager working for a soft-drink bottler will likely experience lower uncertainty than a manger who works for an electronics company. a. True b. False

True

27. An involvement culture places a high value on meeting the needs of employees, as exemplified by Four Seasons Hotels and Resorts a. True b. False

True

29. An achievement culture values competitiveness, aggressiveness, and personal initiative, which some see as a negative aspect and others view as positive. a. True b. False

True

3. Current employees, management, and especially corporate culture are part of an organization's internal environment. a. True b. False

True

5. Labor market forces affecting organizations right now include the growing need for computer-literate knowledge workers and the effects of outsourcing. a. True b. False

True

9. Strategic issues that could arise for a food-producing organization could include a change in the cost of certain staple foods, an increase in the cost of production, and a large shift in company management. a. True b. False

True

76. Which of the following statements applies to high-performance cultures? a. They embody shared adaptive values that guide decisions and business practices. b. They are not concerned with a well-defined organizational purpose. c. They encourage employee ownership of bottom-line results but not organizational culture. d. They do not connect cultural values to business performance. e. They value bottom-line results over shared cultural values.

a. they embody shared adaptive values that guide decisions and business practice

43. Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate culture. The company uses bold coloring with expensive accents in all office décor. This exemplifies which of the following levels of corporate culture? a. Visible artifacts b. Underlying assumptions c. Expressed values d. Heroes e. Ceremonies

a. visible artifacts

70. Martha wants to join a company with a culture that centers around teamwork and allows employees to make mistakes. Which of the following statements best fits what she is looking for? a. "Every worker works alone." b. "Find help achieving your goals." c. "High pressure situations for hardworking people." d. "We get it right the first time, every time." e. "You can wear jeans on Casual Fridays."

b. "find help achieving your goals"

72. A new company enters the market and realizes that they have to be able to change quickly to meet new market demands and make decisions quickly. Which of the following corporate cultures fits best with their needs? a. Involvement culture b. Adaptability culture c. Achievement culture d. Consistency culture e. No one culture fits their needs

b. adaptability culture

42. __________ is an approach to boundary spanning that results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant. a. Political lobbying b. Business intelligence c. Strategic uncertainty d. Predictive analytics e. Competitive intelligence

b. business intelligence

78. Which of the following actions would a cultural leader avoid? a. Taking clear actions that represent the new values of the company b. Encouraging employees to take actions that they don't do themselves c. Overcommunicating new culture values d. Communicating central values for employees to rally around e. Finding ways to signal that the old way of doing things is no longer acceptable

b. encouraging employees to take actions that they don't do themselves

49. Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation of employees and places high value on meeting the needs of its employees. The company is known for its caring, family-like atmosphere. Which of the following types of corporate culture does Roadtec possess? a. Adaptability culture b. Achievement culture c. Consistency culture d. Involvement culture e. Matrix culture

d. involvement culture

34. Ally's Applesauce is in the process of hiring 60 new workers. The personnel department has a large pool of unskilled labor to draw from due to the high unemployment rate in the local area. Which of the following dimensions of the external environment is involved here? a. Sociocultural b. Competitors c. Technological d. Labor market e. Legal-political

d. labor market

45. When two or more organizations combine to become one, it is referred to as a(n) _____. a. joint venture b. flexible structure c. mechanistic structure d. merger e. inorganic venture

d. merger

56. Terry manages a food distribution company that is highly focused on creating a strong cohesive culture, but the company does not tie organizational values directly to goals and desired business results. Terry's company most likely falls into which of the following quadrants of organizational performance and culture? a. Quadrant A b. Quadrant B c. Quadrant C d. Quadrant D e. Quadrant E

d. quadrant D

51. McDonald's "I'm lovin' it" is an example of a _____. a. ceremony b. symbol c. ritual d. slogan e. political activity

d. slogan

68. A hotel frequently tells its employees about an instance whereby one worker went to great lengths to return a stuffed animal to a little girl complete with pictures of the toy relaxing by the pool as a commitment to customer service. This is a ____. a. symbol b. hero c. slogan d. story e. visible artifact

d. story

46. Molly Madison received "The Employee of the Month" award at Internal Workings Remodeling Service in April. Molly would be considered a part of which of the following environments for Internal Workings? a. The general environment b. The task environment c. The economic environment d. The internal environment e. The organizational environment

d. the internal environment

64. Which general environment dimension is different from the others in that it has no voice of its own? a. The legal-political dimension b. The technological dimension c. The international dimension d. The natural dimension e. The economic dimension

d. the natural dimension

74. Two organizations are both in the technology industry. What is most likely true about their corporate cultures? a. Their cultures are likely distinct and very different from each other as the cultures of competitors often are. b. Both companies probably employ a consistency culture that fits well with the need for rapid change. c. Due to their industry, both cultures have to adopt an involvement culture. d. The organizations likely have similar cultural characteristics because they operate in similar environments. e. They likely consulted with each other to develop similar corporate cultures that work best in their industry.

d. the organizations likely have similar cultural characteristics because they operate in similar environments

65. A manager at which of the following companies will typically face a low amount of uncertainty and can devote less attention to external issues? a. An aerospace firm b. An entertainment company c. An Internet-based organization d. A telecommunications firm e. A food processor

e. a food processor

44. In the current external business environment, which of the following is true? a. Corporate culture defines success. b. The business environment is static. c. Companies are more adversarial than ever before. d. Mergers are declining. e. Joint ventures are on the rise.

e. joint ventures are on the rise