BUS 382 CH. 4
A hardware store would be in a complex environment.
F
A soft drink bottler functions in a complex, unstable environment.
F
An acquisition is the unification of two or more organizations into a single unit.
F
As environmental uncertainty increases, organizations tend to become more mechanistic.
F
Competitive intelligence refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant.
F
Every organization faces uncertainty globally but not domestically.
F
Incompetence means that decision makers do not have sufficient information about environmental factors.
F
Planning guarantees successful coping with an unstable environment.
F
The boundary-spanning role is designed to bring information to the organization about changes in the environment, but not to work in reverse to take information into the environment about the organization.
F
The complex-stable dimension concerns environmental complexity, which refers to heterogeneity, or the number and dissimilarity of external elements relevant to an organization's operations.
F
The general environment includes sectors with which the organization interacts directly and which have a direct and regular impact on the organization's ability to achieve its goals.
F
The greatest uncertainty for an organization occurs in the simple, unstable environment.
F
The international environment includes sectors with which the organization interacts directly and that have a direct impact on the organization's ability to achieve its goals.
F
The purpose of boundary-spanning roles is to absorb uncertainty from the environment.
F
The purpose of task roles is to absorb uncertainty from the environment
F
The socio-cultural sector refers to city, state, federal laws and regulations, taxes, courts systems, and political processes that may be in an organization's environment.
F
When organizations depend on the environment but strive to acquire control over resources to minimize their dependence, it is referred to as cooptation.
F
A company in a highly uncertain environment is more likely to need a formal integrator
T
An interlocking directorate is a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company.
T
An organization's domain is the chosen environmental field of action, or the organization's niche that has been staked out for itself with respect to products, services, and markets served.
T
As the complexity in the external environment increases, so does the number of positions and departments within the organization, which in turn increases internal complexity.
T
Boundary spanners can prevent the organization from stagnating by keeping top managers informed about environmental changes.
T
Complex + Unstable environments = high uncertainty
T
Differentiation refers to differences in cognitive and emotional orientations among managers in different functional departments.
T
If the external environment is stable, a mechanistic and formal organization can be successful.
T
In addition to establishing favorable linkages to obtain resources, organizations also may try to change the environment.
T
In rapidly changing environments, an organic structure is usually better.
T
Munificence refers to the amount of resources available to support the organization's growth.
T
One outcome of high differentiation is that coordination between departments becomes more difficult until integrative devices are put in place.
T
Rather than establish buffer departments, a newer approach in many organizations is to drop the buffers and expose the technical core to its uncertain environment.
T
Resource dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence
T
The environmental conditions of complexity and change create a greater need to gather information and to respond based on that information.
T
The general environment includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.
T
The organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization.
T
The technology sector refers to techniques of production, science, computers, information technology, and e-commerce.
T
Transferring or exchanging executives offers a method of establishing favorable linkages with external organizations.
T
When differentiation is high, integration should be high if the level of environmental uncertainty is high.
T
With scenario planning, managers mentally rehearse different scenarios based on anticipating various changes that could affect the organization.
T
*A(n) ____ involves the purchase of one organization by another so that the buyer assumes control.* a. acquisition b. merger c. joint venture d. domain
a
*As part of the "green movement," Nike began making shoes with recycled materials and eco-friendly glues. The big oil company Valero is using windmills to run its refineries more efficiently and produce petroleum-based fuels more easily. These examples belong to which sector of the general environment?* a. Sociocultural b. Economic c. Government d. Technology
a
*Assessment of environmental uncertainty of an organization is based primarily on analysis of two dimensions which are:* a. the need for information about the environment and the need for resources from the environment. b. the number of sectors and the organization's niche. c. the extent of turbulence and the amount of available resources. d. differentiation and integration.
a
*In organizations characterized by very ____ and ____ environments, almost no managers are assigned to integration roles.* a. simple, stable b. simple, unstable c. complex, stable d. complex, unstable
a
*Sectors of the environment which have direct impact on the organization are called the:* a. task environment. b. general environment. c. organizational buffers. d. environmental boundary-spanners.
a
*The ____ includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.* a. general environment b. international context c. task environment d. buffering roles
a
*When one individual is the link between two companies, this is typically referred to as a _____ interlock.* a. direct b. indirect c. organic d. mechanistic
a
*Which of the following is a cross-functional group of managers and employees, led by a competitive intelligence professional, who work together to gain a deep understanding of a specific business issue?* a. Intelligence team b. Business team c. Boundary team d. Task force
a
*Which of the following is a proper dimension of the framework for assessing environmental uncertainty?* a. Stable-unstable b. Loose-tight c. Known-unknown d. High competitiveness-low competitiveness
a
*____ is a way that high uncertainty influences organizational characteristics.* a. Extensive planning and forecasting b. Few departments c. No integrating roles d. Mechanistic structure
a
*____ is especially important in highly competitive consumer industries and in industries that experience variable demand.* a. Advertising b. Cooptation c. Executive recruitment d. Contracts
a
*____ refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant.* a. Business intelligence b. Competitive intelligence c. Boundary spanning d. Environment intelligence
a
*A(n) ____ is a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company.* a. joint venture b. interlocking directorate c. integration d. indirect interlock
b
*All of the following, except ____, are examples of the general environment.* a. financial resources b. human resources c. economic conditions d. government sector
b
*Allowing customers in an auto dealership service department to talk directly to the mechanic rather than to a service manager:* a. is an example of creating a buffering role. b. is creating a boundary-spanning role. c. will make the company less fluid. d. will make the company less responsive to customers.
b
*Chapter 4's Bookmark examines the volatile nature of today's business world and gives some tips for managing in a fast-shifting environment. Which of the following is not one of those tips?* a. Seek out and welcome diverse ideas b. Understand the environment as it was in the past c. Ruthlessly assess your organization d. Avoid the common causes of manager failure to confront reality, including filtered information and selective hearing
b
*In the framework for assessing environmental uncertainty:* a. soft drink bottlers are examples of typical firms in the simple and unstable quadrant. b. universities are examples of organizations typically found in the complex and stable quadrant. c. electronic firms are typically found in the simple and stable quadrant. d. fashion clothing or toy manufacturers would exemplify the complex and unstable quadrant.
b
*Roger Ramon is a militant member of a faculty union at a medium-sized college. When the union's negotiating committee is reporting to a meeting of the faculty, he always finds fault with the work of that committee and strongly advocates striking. When a member of the negotiating committee resigns because of illness, the union's executive committee appoints Roger to take his place. This is an example of:* a. formal strategic alliance. b. cooptation. c. change of domain. d. public relations.
b
*The greatest uncertainty for an organization occurs in which environment?* a. Complex, stable b. Complex, unstable c. Simple, unstable d. Simple, stable
b
*The task environment is:* a. all elements that exist outside the organizational boundary. b. sectors with which the organization interacts directly. c. domain. d. all jobs and positions inherent within the organizational activity.
b
*Which of the following is a proper dimension of the framework for assessing environmental uncertainty?* a. Dispersion-contiguity b. Simple-complex c. Certain-uncertain d. Internal-external
b
*____ is the quality of collaboration among departments.* a. Differentiation b. Integration c. Uncertainty d. Cooptation
b
*____ means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence.* a. Integration b. Resource dependence c. Organic process d. Cooptation
b
*_____ gives top executives a systematic way to collect and analyze public information about rivals and use it to make better decisions.* a. Business intelligence b. Competitive intelligence c. Cooptation d. Integration
b
*"Generation C" refers to people born after:* a. 1970. b. 1980. c. 1990. d. 2000.
c
*An organization can change its domain most directly by:* a. hiring a new CEO. b. changing the nature of the labor-management agreements. c. divesting a division of the organization. d. moving to a more favorable structure.
c
*An organization's domain is:* a. the set of positions and departments within the organization. b. the buildings and grounds that are owned or leased by the organization in which inputs are transformed into outputs. c. the organization's niche that has been staked out for itself with respect to products, services, and markets served. d. the technical core that is buffered by other departments so that it can operate as a closed system.
c
*Bobby Barista is a researcher in the R&D department at 3M. Part of her job is to read technical and scientific journals, and to attend conferences to find out what new developments are occurring. When she is doing this part of her job she is carrying out a ____ role.* a. buffering b. maintenance c. boundary spanning d. managerial
c
*Boundary-spanning roles:* a. primarily link data to information. b. buffer the manufacturing department from outside intrusion that would interfere with efficiency. c. bring into the organization information about environmental changes. d. move the firm to internationalism.
c
*Organizations in rapidly changing environments tend to have ____ management processes.* a. differentiated b. mechanistic c. organic d. dependent
c
*Organizations in which of the following types of industries would face the greatest amount of environmental uncertainty?* a. Beer distributors because of simplicity b. Universities because of complexity c. Airlines because of instability d. Appliance manufacturers because of complexity
c
*The following examples illustrate how various sectors can impact organizations:* a. in the industry sector, labor unions are a significant force. b. in the market sector, we see an increasing number of foreign-owned manufacturing plants built in the U.S. c. in the raw materials sector, we note that steel makers owned the beverage can market until the mid-1960s. d. in the human resources sector, brand names are fighting it out with lower-cost store brands.
c
*Which of the following means that decision makers do not have sufficient information about environmental factors and they have a difficult time predicting external change?* a. Cooptation b. Differentiation c. Uncertainty d. Integration
c
*____ result in the creation of a new organization that is formally independent of the parents.* a. Strategic alliances b. Supplier arrangements c. Joint ventures d. Cooptation
c
*An organization's environment includes all except:* a. labor market. b. city, state, and federal laws. c. competitors. d. firm's employees.
d
*In the ____ sector, regulations influence every phase of organizational life.* a. sociocultural b. human resources c. international d. government
d
*Oil companies, aerospace firms, and telecommunications firms function within a _____ environment.* a. simple, stable b. complex, stable c. simple, unstable d. complex, unstable
d
*The differences in cognitive and emotional orientations among managers in different functional departments, and the difference in formal structure among these departments is referred to as:* a. integration. b. resource dependence. c. cooptation. d. differentiation.
d
*Trend-setting toy companies or high-fashion clothing manufacturers have in common:* a. an environment that is stable but complex, therefore requiring a mechanistic structure. b. an organic structure, from which we can reason that the environment is highly uncertain. c. a large number of dissimilar external elements, which remain about the same over time. d. an environment that is simple but unstable, creating relatively high uncertainty.
d
*When Johnson & Johnson had to cope with the unpredictable Tylenol poisoning issue, their experience best exemplified the____ dimension of the environment.* a. simple b. complex c. stable d. unstable
d
*Which of the following laws required several types of corporate governance reforms, including better internal monitoring to reduce the risk of fraud, certification of financial results by top executives, and improved measures for internal auditing?* a. Fair Accounting Standards Act b. Taft-Hartley Act c. Occupational Safety and Health Act d. Sarbannes-Oxley Act
d
*Which of the following occurs when leaders from important sectors in the environment are made part of an organization?* a. Integration b. Joint venture c. Resource dependence d. Cooptation
d
*____ can be used to erect regulatory barriers against new competitors or to squash unfavorable legislation.* a. Cooptation b. Contracts c. Joint venture d. Political strategy
d