Management test (chapter 3 )

Which of the following is true of business confidence indices? Question options: They show how sure actual managers are about future business growth. They indicate how businesses have been performing over the previous years. They show how confident customers are about the companies they do business with. They indicate general economic statistics over the previous years.

a. They show how sure actual managers are about future business growth.

_____ 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. Question options: Buyer dependence Customer due diligence Resource dependence Supplier dependence

a. buyer dependence

_____ are graphic depictions of how managers believe environmental factors relate to possible organizational actions. Question options: Cognitive maps Organizational charts Gantt charts Process maps

a. cognitive maps

In the context of creation and maintenance of organizational cultures, a primary source of organizational culture is _____. Question options: the company founder the board of directors a new employee a new customer

a. company founder

_____ are defined as companies in the same industry that sell similar products or services to customers. Question options: Competitors Lobbies Intermediaries Sponsors

a. competitors

In the context of the external environment of a firm, _____ involves searching the environment for important events or issues that might affect an organization. Question options: environmental scanning environmental zoning environmental designing environmental testing

a. environmental scanning

In the context of the external environment of a firm, which of the following statements is true of environmental scanning? Question options: Managers scan their firm's environment to reduce uncertainty. It remains unaffected by organizational strategies. CEOs in poorer-performing firms scan their firms' environments more frequently than CEOs in better-performing firms. It is reactive in nature and leads to the detection of environmental problems after they become organizational crises.

a. managers scan their firm's environment to reduce uncertainty

Which of the following is a component of the general environment that indirectly affects all organizations? Question options: Political/legal trends Customers Industry regulations Suppliers

a. political/ legal trends

Which of the following is the least aggressive tactic used by advocacy groups? Question options: Public communications Media advocacy Distributive bargaining Class action lawsuits

a. public communications

In the context of the specific environment of an organization, which of the following is a difference between supplier dependence and buyer dependence? Question options: Supplier dependence relates to the difficulty of finding consumers for a particular product, whereas buyer dependence relates to the difficulty of finding dealers of a particular product. Supplier dependence is the degree to which a company relies on a dealer for the dealer's product, whereas buyer dependence is the degree to which a supplier relies on a consumer. Supplier dependence takes into account the importance of a consumer to a supplier's sales, whereas buyer dependence takes into account the importance of a manufacturer's products to a company. A high degree of buyer dependence can lead to opportunistic behavior, whereas a high degree of supplier dependence does not lead to opportunistic behavior.

b. Supplier dependence is the degree to which a company relies on a dealer for the dealer's product, whereas buyer dependence is the degree to which a supplier relies on a consumer.

Environmental uncertainty in an organization is high when: Question options: resource scarcity is low. environmental change is extensive. environmental complexity is low. industry regulations are strict.

b. environmental change is extensive.

In the context of federal regulatory agencies and commissions, the _____ stops companies from engaging in unfair workforce practices. Question options: Federal Trade Commission National Labor Relations Board Equal Employment Opportunity Commission Occupational Safety and Health Administration

b. equal employment opportunity commission

The economy is a part of the _____ that influences all organizations. Question options: specific environment general environment niche environment internal environment

b. 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. Question options: sociocultural media advocacy industry regulation business confidence

b. media advocacy

____ refers to a transaction in which one party in the relationship benefits at the expense of the other. Question options: Transactional behavior Opportunistic behavior Advocacy behavior Relationship behavior

b. opportunistic behavior

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. Question options: dynamic environment simple environment complex environment uncertain environment

b. simple environment

Managers feel confident that they can understand, predict, and react to the external forces affecting their businesses when: Question options: resource scarcity is low. environmental change is extensive. the industry is not at an equilibrium state. environmental complexity is high.

b. the industry is not at an equilibrium state.

In the context of the specific environment of organizations, which of the following is a similarity between the public communications approach and a product boycott? Question options: Both are more aggressive than media advocacy. Both typically involve framing a group's concerns as public issues. Both are advocacy group tactics. Both create controversies that are likely to receive extensive news coverage.

c. Both are advocacy group tactics.

In the context of the specific environment of an organization, which of the following is a difference between opportunistic behavior and relationship behavior? Question options: Opportunistic behavior is observed when both buyers and sellers show least reliability on the other, whereas relationship behavior is observed when both buyers and sellers believe in creating short-term client relationships. A low degree of buyer or seller dependence can lead to opportunistic behavior, whereas a high degree of buyer or seller dependence can lead to relationship behavior. In opportunistic behavior, either the buyer or the seller benefits at the expense of the other, whereas in relationship behavior, both the buyer and the seller mutually benefit. Opportunistic behavior leads to compromises that both the supplier and the buyer agree upon, whereas relationship behavior leads to development of new business relationships when existing ones fail to work.

c. In opportunistic behavior, either the buyer or the seller benefits at the expense of the other, whereas in relationship behavior, both the buyer and the seller mutually benefit.

In the context of the internal and external forces that affect business, which of the following is a difference between stable environments and dynamic environments? Question options: The stable environment of a company is only related to the external factors affecting the company, whereas the dynamic environment of a company is only related to the internal factors affecting the company. In stable environments, fundamental changes are observed in the environment, whereas in dynamic environments, incremental changes occur. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast. Companies with stable environments experience changing customer preferences and attitudes, whereas companies with dynamic environments experience a fixed set of customer needs.

c. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.

In the context of changing environments, identify a true statement about environmental uncertainty. Question options: It is most likely to be high when there is technological stability in the industry. It is most likely to be high when the industry is at an equilibrium state. It is most likely to be low when environmental complexity is at a low level. It is most likely to be low when environmental change is extensive.

c. It is most likely to be low when the environmental complexity is at a low level

Which of the following exemplifies a political/legal trend in the general organizational environments? Question options: Scarcity of medical equipment suppliers Recruitment of highly skilled nurses Regulations concerning the disposal of biological wastes High attrition rate of medical staff

c. Regulations concerning the disposal of biological wastes

In the context of the specific environment of an organization, identify a difference between the public communications approach and a media advocacy approach. Question options: The public communications approach can force organizations to change their practices, whereas a media advocacy approach cannot force organizations to change their practices. The public communications approach is much more aggressive than a media advocacy approach. The public communications approach relies on voluntary participation by the advertising industry to send out an advocacy group's message, whereas a media advocacy approach involves framing a group's concerns as public issues. The public communications approach creates controversies that are likely to receive extensive news coverage, whereas a media advocacy approach relies on discretionary participation by the news media.

c. The public communications approach relies on voluntary participation by the advertising industry to send out an advocacy group's message, whereas a media advocacy approach involves framing a group's concerns as public issues.

In the context of the external environments that influence organizations, which of the following is a difference between the general environment and the specific environment? Question options: Unlike the specific environment, the general environment includes customers, competitors, and suppliers. Unlike in the specific environment, in the general environment, proactive monitoring takes place that addresses customers' needs before they occur. Unlike the specific environment, the general environment is responsible for indirectly affecting all organizations. Unlike in the specific environment, in the general environment, a shrinking economy is directly related to consumers willing to spend more to purchase products.

c. Unlike the specific environment, the general environment is responsible for indirectly affecting all organizations.

Which of the following exemplifies a sociocultural component in the general organizational environments? Question options: New FDA regulations on food handling and storage in fast food chains Increase in the number of fast food chains offering similar menus Increasing popularity of weight management programs Shortage of spice suppliers

c. increasing popularity of weight management programs

Because of a financial crisis, Isaavne, an automobile manufacturer, terminated 200 factory employees without prior notice. As a result, the labor union filed a suit against the company on the grounds of wrongful termination, and it had to pay a large amount as fine. In the context of the general environment, this scenario best illustrates the effect of the _____ on organizations. Question options: technological component sociocultural component legal component geographical component

c. legal component

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? Question options: A class action lawsuit Company divestment Media advocacy A product boycott

c. media advocacy

____ refers to the values, beliefs, and attitudes shared by organizational members. Question options: Organizational hierarchy Organizational innovation Organizational culture Organizational design

c. organizational culture

Organizational members use _____ to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions. Question options: cultural maps organizational hierarchies organizational stories business confidence indices

c. organizational stories

__ involves identifying and addressing customer needs, trends, and issues before they occur. Question options: Customer due diligence Reactive customer monitoring Proactive monitoring of customers Cognitive mapping

c. proactive monitoring of customers

n the context of changing organizational cultures, which of the following is a difference between behavioral addition and behavioral substitution? Question options: Behavioral addition refers to the collection of information by managers before selecting job candidates to match their behaviors with that of the organizational culture, whereas behavioral substitution refers to building procedures to train employees about ethical practices. Behavioral addition refers to the process of hiring candidates who have been judged by Bar Raisers, whereas behavioral substitution refers to the process of transferring employees to different departments based on their behavioral attributes. Behavioral addition refers to changing the visible artifacts of an organization's old culture, whereas behavioral substitution refers to the process where managers eliminate employees whose behavior is not consistent with that of the organizational culture. Behavioral addition is the process of having managers and employees perform a new behavior, whereas behavioral substitution is having managers and employees perform a new behavior in place of another behavior.

d. Behavioral addition is the process of having managers and employees perform a new behavior, whereas behavioral substitution is having managers and employees perform a new behavior in place of another behavior.

In the context of the specific environment of an organization, which of the following is a difference between reactive customer monitoring and proactive monitoring of customers? Question options: Unlike reactive customer monitoring, proactive monitoring of customers involves listening closely to customer complaints and responding to customer concerns. Unlike reactive customer monitoring, proactive monitoring of customers involves identifying potential customers and seeking ways to attract them to indulge in a product or service. Unlike reactive customer monitoring, proactive monitoring of customers includes the use of an advocacy tactic that revolves around product boycotting. Unlike reactive customer monitoring, proactive monitoring of customers identifies and addresses customer needs before they occur.

d. Unlike reactive customer monitoring, proactive monitoring of customers identifies and addresses customer needs before they occur.

____ 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. Question options: Behavioral substitution Behavioral deskilling Behavioral opportunism Behavioral addition

d. behavioral addition

To motivate employees to perform better, the human resources department of Martianse, a chain of retail apparel stores, replaced the company's fixed incentive system with a performance-based incentive system. In this scenario, Martianse's human resources department is most likely using _____. Question options: behavioral opportunism behavioral deskilling behavioral disorientation behavioral substitution

d. behavioral substitution

While setting up his new office, an attorney ordered thick, frieze carpets for the floor. However, the building inspector had him remove the expensive carpeting. The building inspector stated that according to federal law, the office must be wheelchair accessible as it is a public area. He further explained that since wheelchairs do not maneuver well in thick, frieze carpeting, the carpets had to be removed and be replaced with smooth-textured carpets that do not restrict wheelchair maneuverability. This scenario illustrates how an organization is influenced by the _____ component of its specific environment. Question options: sociocultural economic/demographic technological industry regulation

d. industry regulation

The health awareness board in the country of Gelhanwa made it mandatory for all brands that sell tobacco and tobacco products to display a disclaimer highlighting the dangers of tobacco on their product covers. In the context of the specific environment, this scenario best illustrates the effect of the _____ on organizations. Question options: competitor component supplier component technological component industry regulation component

d. industry regulation component

_____ 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. Question options: A product boycott Distributive bargaining Proactive monitoring Media advocacy

d. media advocacy

Most of the managers and team members of Wilbesht, a pharmaceutical company, are under the age of 40. The structure of the company is informal and flexible. This scenario best illustrates Wilbesht's _____. Question options: opportunistic behavior industry regulation punctuated equilibrium organizational culture

d. organizational culture

A court ruling against the wrongful dismissal of employees is a development in the _____ component of the general environment. Question options: technological sociocultural economic/demographic political/legal

d. political/ legal

____ is the abundance or shortage of critical organizational resources in an organization's external environment. Question options: Resource equilibrium Resource leveling Resource augmentation Resource scarcity

d. 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. Question options: Buyer dependence Internal dependence Regulator dependence Supplier dependence

d. supplier dependence

Which of the following forms a component of the specific environment of an organization? Question options: The suppliers The political component The technological component The customers

d. the customers