HRE test 2
____ means identifying who is best at something in an industry and then duplicating the technique for creating excellence, perhaps even improving it in the process.
Benchmarking
_____ link and coordinate an organization with key elements in the external environment.
Boundary-spanning roles
You are the CEO of a global financial services organization with more than 100,000 employees operating in nearly 95 countries. You recognize the need for flexibility and autonomy among the different operating units, yet you want to unify and coordinate the organization's efforts so you've chosen to adopt a transnational model. How will you succeed in coordinating worldwide units?
By creating and communicating a common strategic vision and values
____ are the external pressures exerted on an organization to adopt structures, techniques, or behaviors similar to other organizations.
Coercive forces
Universities function in the _____ environment.
Complex and stable
Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements.
Complexity
Which of the following is one of the United Nations' Sustainable Development Goals related to the health of the biosphere?
Conserve and sustain marine resources
n the context of the population-ecology perspective, which of the following best illustrates a generalist strategy?
Maffles Inc. sells books, electronic equipment, furniture, and fashion accessories.
Which of the following refers to the set of moral principles and values that governs the behavior of a person or group with respect to what is right or wrong?
Personal ethics
You were brought in from another organization to assume the CEO position at Renew, a hybrid employment agency focused on putting the unemployed and underemployed back to work. Now that you're on the job, however, you can see that this organization is suffering from an extreme case of mission drift. Which of the following is the first technique you should employ to start restoring balance right away?
Set clear goals, establish performance measurements, and communicate them out to the entire organization
The CEO has asked you to devise a way to generate ideas that will facilitate sustainability. Which of the following is the first step you would take to start designing a sustainability program in your organization?
Set up multiple sustainability task forces made up of employees from all levels and all departments
Located in central California's agricultural region, South Coast Fruits processes locally grown fruits of all kinds. Growers transport their crops to South Coast's facilities, and the organization then cleans, prepares, and packages the fruit for sale to grocery stores and other commercial buyers. Into which quadrant of the environmental uncertainty framework does South Coast Fruits fall?
Simple and stable with low uncertainty
Hillary is the operations manager at HealthTrans, an organization that uses a fleet of about 30 vehicles to transport sick and elderly people to doctor and hospital appointments. The company uses a sophisticated computer system to combine trips and use its resources as efficiently as possible. Employees are reasonably well-paid with decent benefits, and they all value their contribution to the community. Recently, Hillary used an ESG scorecard to evaluate HealthTrans. She was somewhat surprised to find that the organization scored lower than she expected. Of the following, which step should Hillary take to raise the score?
Start replacing company vehicles with hybrids or electric cars
Boundary spanners prevent an organization from stagnating by keeping top managers informed about environmental changes.
True
Business intelligence refers to the high-tech analysis of large amounts of internal and external data to spot patterns and relationships that might be significant.
True
Companies that have a presence in multiple countries gain marketing power and synergy compared to the same-size firm that has a presence in fewer countries.
True
Cooptation occurs when leaders from important sectors in the environment are made part of an organization.
True
Supply chains are a source of ongoing ethical challenges for global organizations because they are so broad and diffuse that managers cannot monitor the actions of all supply chain contractors and subcontractors.
True
The social basis for the mimetic process is that the innovations are culturally supported.
True
With the triple bottom line approach, organizations measure three types of performance: social, environmental, and financial.
True
When several sectors change simultaneously, the environment becomes _____.
Turbulent
A(n) _____ involves the purchase of one organization by another so that the buyer assumes control.
acquisition
Now authorized in more than 20 states and the District of Columbia, a _____ corporation is a for-profit entity that specifies positive social and environmental impact as well as profit in its legally chartered goals.
benefit
Tesla's top managers aligned with Panasonic Corporation's top managers to jointly invest in a $5 billion lithium-ion battery plant. This is an example of executive-level managers:
forming a cooperative relationship with another contributor to the ecosystem.
Organizations with a wide niche or domain, that is, those that offer a broad range of products and services or that serve a broad market are:
generalists.
Companies that use a global _____ structure have typically been those with mature product lines and stable technologies.
geographic
In the _____, companies join together to become more competitive and to share scarce resources.
collaborative-network perspective
Leo Burton is the CEO of a cigarette manufacturing company. He and his employees suffered a major loss when tobacco products were banned in his country. Leo's organization was affected by changes in the _____.
government sector
A company may use any or all of the mechanisms of mimetic, coercive, or normative forces to change itself for greater _____ in the institutional environment.
legitimacy
There are about four billion people around the globe who earn less than US$1,500 per year. These people who make up the "bottom of the pyramid" obviously have some unique needs. Many organizational leaders who embrace corporate social responsibility believe they:
may be able to serve the unique needs of the BOP while still earning a profit.
In the _____ stage of international development, a company has extensive experience in a number of international markets and has established marketing, manufacturing, or research and development (R&D) facilities in several foreign countries.
multinational
The two ways in which the environment influences organizations are the need for information about changes in the environment and the need for :
resources from the environment.
As the CEO of a furniture manufacturer in Michigan, you are painfully aware that sales have been dropping off in recent years, forcing you to lay off some employees and decrease production. You aren't sure why, but you thought it was due to competition from foreign manufacturers entering the U.S. market. The HR manager just told you something that has made you pause. She says that a number of employees have recently quit their jobs in your factory to go work for two other manufacturers in the same area, both of which are increasing production. What step should you take to cope with the uncertainty?
Form a competitive intelligence team to study your organization's competitors
Which of the following structures is great for standardizing production and sales around the globe?
Global product structure
Which of the following is a characteristic of the simple, stable environment?
It has few external elements that change slowly.
Which of the following is a characteristic of the general environment?
It includes those sectors that will indirectly impact a firm.
Which of the following is true of a global product structure?
It provides a fairly straightforward way to effectively manage a variety of businesses and products around the world.
_____ is defined as the general perspective that an organization's actions are desirable, proper, and appropriate within the environment's system of norms, values, and belief.
Legitimacy
Environmental _____ refers to heterogeneity, or the number and dissimilarity of external elements.
. complexity
Which of the following is a difference between the international division and the domestic division of a company?
The international division is organized according to geographic interests, while the domestic division is typically organized along functional or product lines.
Which of the following is the best example of a sustainability effort?
A paper mill redesigning the mill to use less water and lower the amount of emissions it releases into the environment
Which of the following is one of the United Nations' Sustainable Development Goals related to the health of the world's economy?
Ensure sustainable consumption and production patterns
Pacific Packaging has been supplying shipping materials and packaging for your garden supply manufacturing firm for more than 10 years. Pacific's salesperson is practically a member of your team. She knows your products inside and out, and she often solves problems for you. However, you've noticed that Pacific's prices have increased an average of 4% each year, which is troubling since resources are already so tight. Following the resource-dependence theory, which strategy would you choose to reduce dependence on other organizations and maintain control of resources?
Enter into a joint venture
Which of the following is a characteristic of the new orientation to interorganizational relationships?
Equity and fair dealing
A global matrix structure works best when coordination to share resources is less important.
False
For years, Wells Fargo's tellers and bankers were instructed to convince customers to take on as many products and services—such as opening additional checking accounts and credit cards—as they could, whether the customers needed them or not. In fact, bank employees were pushed so hard to "sell" these products that some of them illegally set up new products in customers' names without the customers'ir approval. Managers were aware of the problem but did little to stop it. Many of the banks customers switched to other banks when the "hard sell" tactics began, and thousands more terminated their accounts when the illegal activity was revealed. Which type of interorganizational relationship does this describe?
Institutionalism
Melissa works in the fashion industry. Her job is to research, by analyzing social media, the growing trends among youth. Her company designs and manufactures clothing based on her analysis. Melissa is a part of the _____ sector of the task environment.
Market
In a global _____ structure, for multinational corporations, the geographic distances for communication are greater and coordination is more complex than in other structures.
Matrix
Garin Corp., an automobile manufacturing company, tried to increase its sales by releasing car models with new colors. In the light of its huge success, other automobile manufacturers began doing the same. Which of the following mechanisms for institutional adaptation is best illustrated in this scenario?
Mimetic forces
As the product manager for the pudding product line of a growing snack foods manufacturer in the U.S., you were excited to learn that senior leadership is thinking about going global. However, initial research into new markets has revealed that consumers in Great Britain think your puddings are too sweet, while consumers in Bangladesh think your products aren't sweet enough. Plus, the target audience changed depending on the market, which means a unique marketing strategy for each. You're starting to doubt that entering foreign markets will work for your product and others made by your organization. Which strategy makes the most sense for your organization to use to expand globally?
Multidomestic or localization strateg
Trained by his father, Bob Butler is an excellent appliance repair person. Under Bob's guidance, Butler Appliance Repair has grown, and Bob now employs several other repair technicians, which he's personally trained. However, more and more often, potential clients are asking whether Butler's repair techs are licensed and bonded. They're not, which has caused Bob to lose a growing amount of business. Bob is wondering if it would be worth it for him and his three repair techs to take a course and get licensed. In this instance, which type of forces could cause institutional adaptation?
Normative
_____ are pressures to achieve standards of professionalism and to adopt techniques that are considered by the professional community to be up to date and effective.
Normative forces
Operating with only 12 employees, Bay City Tax Associates is a privately owned, family-operated organization that provides tax and accounting services. Which of the following represents Bay City's three most important stakeholder groups?
Owners, employees, customers
Hanging up the phone after talking to the VP of Asia, you feel dismayed. You're the new CEO of a global organization that has four fairly autonomous divisions in Asia, North America, the Middle East, and Europe. You had asked the Asia VP if he would take over manufacturing capacitors for sale in Europe—the same capacitors he produces for the Asian market—so that you can shut down an expensive plant located in France. He refused because he said high shipping costs to Europe would make the production of the items less profitable and would therefore reflect badly on his division's bottom line. And sadly, this is just one example of resistance you've been getting from managers across all four independent divisions. Looking ahead, what should you do to address the need for better coordination in your global organization?
Restructure the organization along global product lines, rather than geographic divisions
Which of the following stages of the population-ecology model of organizations refers to the preservation and institutionalization of selected organizational forms?
Retention
Which of the following arises from a set of codified principles and regulations that describe how people are required to act, that are generally accepted in society, and that are enforceable in the courts?
Rule of Law
Which of the following theories argues that organizations try to minimize their reliance on other organizations for the supply of important resources and try to influence the environment to make resources available?
The Resource-dependence theory
Some years ago, Wells Fargo was caught up in a far-reaching and devastating scandal. Top-level executives wanted to increase the number of accounts and credit cards opened through the bank, so they set high quotas for bank tellers and bankers. In order to meet those quotas, employees began engaging in unethical behavior by convincing bank customers to open accounts and credit cards that they really didn't need or want. Some employees reported the problem to their managers, but the unethical practice continued, even though the organization's code stated that bank employees should operate in the best interest of the customers. Of the following, which is the most likely explanation of this widespread problem?
The organization's culture favored financial performance over ethical behavior.
Which of the following environments has the lowest level of uncertainty?
The simple, stable environment
Which of the following is true of country managers?
They identify and link an organization's expertise and resources worldwide.
In today's economy, organizations think of themselves as teams that _____ rather than autonomous companies that compete with all others.
create value jointly
Organizational changes that result from coercive forces occur due to _____.
dependence
An organization's _____ is the chosen environmental field of action.
domain
Hill Fog is a brand of bottled water in India. Asif, the marketing manager at Hill Fog, is aware of the global environment and is considering initial foreign involvement in the United States to expand production volume and realize economies of scale. Hill Fog is in the _____ stage of international development
domestic
In the _____ stage of international development, market potential is limited and is primarily in the home country.
domestic
Organizations' commitment to corporate social responsibility can now be assessed and measured on ESG dimensions, which stands for:
environmental, social, and governance.
Corporate social responsibility refers to an organization's contributions to the welfare and interests of:
shareholders, employees, customers, members of the community, and the environment.
Organizations operating under the resource-dependence philosophy will:
succeed by emphasizing interdependence with other companies, thereby establishing lasting relationships.
The sociocultural sector of an organization is concerned with issues such as:
the working conditions of workers hired by contractors
When an organization is concerned about its social performance, its environmental performance, and its financial performance, it measures its actions using the:
triple bottom line.
Which of the following is a characteristic of the complex, stable environment?
External elements do not change rapidly in this environment.
A hybrid organization is best served by a structure in which employees are divided into two departments: one focused on social welfare and the other focused on profit goals.
False
A strategic alliance is more formal and binding than a joint venture.
False
Although written codes of ethics and value statements are important, they hold little value because managers have no means of enforcing the guidelines contained in these documents.
False
Given that sustainability efforts add an extra burden of responsibility for most employees, it is better for an organization to create a separate department that designs, implements, and monitors sustainability programs.
False
In intercultural teams, members remain in separate locations around the world and conduct their work electronically.
False
The bottom of the pyramid refers to the approximately one billion people who earn less than US$1 a day.
False
Percy developed a new accounting system which processed data that was previously computed by ten accountants. As a result, the new technology replaced ten employees. Due to Percy's innovation, the technological sector impacted the _____ environment of the organization.
General
A situation concerning right and wrong in which values are in conflict and cannot easily be resolved is called an ethical dilemma.
True
According to the resource-dependence perspective, when threatened by greater dependence, organizations will assert control over external resources to minimize that dependence.
True
Economic conditions are included in the general environment.
True
Environmental complexity refers to heterogeneity, or the number and dissimilarity of external elements that affect an organization's operations.
True
In organizations characterized by very simple, stable environments, almost no managers are assigned to integration roles.
True
At the Navy's nuclear-reactor training center in Charleston, South Carolina, an investigation revealed that at least 34 senior enlisted sailors had been cheating on qualification exams. This is an example of:
an ethical violation.
Brian makes a habit of attending monthly city council meetings to ensure that he's always aware of local governmental changes that could affect his manufacturing business. At last night's meeting, he heard a proposal that could have a powerful impact on his organization, so he wants to learn more. He remembers that Carol, a city council member, is also a board member of a regional bank. Brian is a member of the same board, so he reaches out to Carol to ask for more information on the proposal. Brian is currently performing a(n) _____ role.
collaborative
You've just started your new job as the Operations Manager of an organization that manufactures wooden toys and other household items made from wood, and now you're hearing about all kinds of issues. Demand for the organization's products has grown so rapidly that the production plant can barely keep up. Plus, the plant's foreman says he doesn't receive the right raw materials at the right times, and you've discovered that there isn't a good system in place for ordering these supplies. To top it all off, the sales team is worried that the organization won't be able to fill all the orders, now that they've worked so hard to find great customers. What is the first step you should take to cope with the uncertainty?
. Establish a materials purchasing department, which will act as a buffer department
Getwel Corp. and Sebastian Inc. are two computer manufacturers that share with each other the details of commonly occurring issues and customer complaints. This enables them to work together and provide better service to their customers and also saves the time required to diagnose the issues. Which of the following does this scenario illustrate?
A Collaborative network
Arkal Corp. manufactures wooden chairs and Borston Corp. manufactures plastic chairs. Arkal Corp. wants to enter into a resource-dependence relationship with Borston Corp. Which of the following types of resource-dependence relationships is most likely to result in Arkal Corp. gaining full control over the joint outcome?
Acquisition
Over the years, Phoenix Electronics has grown through international acquisitions. The organization's many businesses are grouped into three geographic units: North America, South America, and Asia. Unfortunately, the three division presidents don't communicate, often compete for resources, and usually fight for dominance in the eyes of the CEO. What is the primary benefit Phoenix would get from establishing a global coordination group at the organization's headquarters?
Better decision making and control
Organizations operating on a global basis often face particularly tough ethical challenges due to the complexity of the environment. Which of the following statements about global ethical challenges is true?
Broad, diffuse supply chains and cultural differences among employees of different nationalities are the two primary sources of ethical challenges for organizations doing business globally.
Imagine the day when artificial intelligence will enable all of us to drive fully autonomous vehicles that can navigate directions on their own and respond to the movement of surrounding vehicles. Our cars and trucks will take us wherever we want to go while we talk, read, watch streaming media, or even take naps on the way. Of the following industries, which will be most affected by this dramatic change in the technology sector?
Car insurance providers
Dave, the operations manager at a paper mill, is deeply concerned. The Environmental Protection Agency has just tightened restrictions on the amount of pollution mills can legally emit into the environment. He's not sure his mill will meet the new restrictions, and the last time he had to make modifications like this, it cost the mill more than a million dollars. In this instance, which type of forces could cause institutional adaptation?
Coercive
Village Greens, an organic, farm-to-table restaurant, is a hybrid organization. In addition to serving delicious food, the organization wants to educate the public on the health benefits of organic eating. What is one technique Village Greens could use to avoid "mission drift"?
Collaborate with organic food growers that supply ingredients to the restaurant
As one of the largest retailers, Walmart purchases huge quantities of wholesale products from its suppliers. This enables the organization to negotiate lower prices on these products, which it passes along to customers in the form of "price rollbacks." Which type of interorganizational relationship does this describe?
Collaborative network
ou are one of the co-founders of Omnitech Games, an app developer that creates games that can be played on smartphones. Your organization has had three major successes, but it has also developed a couple of duds that didn't sell at all. You and your partner recognize you're operating in a challenging, ever-changing environment. You want to make sure you're creating new games that will take advantage of technological changes, appeal to evolving consumer preferences, and beat the growing number of competitors. What step should you take to help cope with the uncertainty?
Create two boundary-spanning roles to monitor technological advances and consumer preferences
An organization's _____ is the chosen environmental field of action.
Domain
Which of the following statements is true of environmental complexity?
It refers to the number and dissimilarity of external elements.
In business for more than 30 years, you've seen the market for the engine parts you manufacture fluctuate, and you've learned the hard way that you've got to run a cost-effective business to weather the lean years. Recently, you've been wondering if you should invest in a new manufacturing plant in Asia or South America, where local raw materials and labor are less expensive. But then you'll have to balance that with the cost of the new plant, as well as the expense of shipping the finished goods back to your customers in the U.S. Which of the following provides the strongest motivation for you to expand globally?
Low-cost production factors
You are the CEO of a digital camera manufacturer. Although your organization's products are moderately priced, they are known for their high quality, and as a result, sales and profits have skyrocketed. Lately, you've been having trouble with your supplier for lenses. That organization produces excellent quality, but delivery is unreliable and prices are rising. Plus, the organization has been unwilling to make minor modifications that would better fit your products. Following the resource-dependence theory, which strategy would you choose to reduce dependence on other organizations and maintain control of resources?
Make an acquisition
A relatively small grocery store chain operates 35 stores in three New England states. Recently, the organization has been facing intensified competition from resource-rich dominant players like Kroger and Walmart, new players with innovative services like Amazon, and new low-cost leaders like Aldi. This small chain is seeing declining sales because it cannot offer consumers the same or better products, services, or prices as any of these competitors. Which type of interorganizational relationship does this describe?
Population ecology
A relatively small grocery store chain operates 35 stores in three New England states. Recently, the organization has been facing intensified competition from resource-rich dominant players like Kroger and Walmart, new players with innovative services like Amazon, and new low-cost leaders like Aldi. This small chain is seeing declining sales because it cannot offer consumers the same or better products, services, or prices as any of these competitors. Which type of interorganizational relationship does this describe?
Resource dependence
Over the last five years Omnitech Games, an app developer that creates games that can be played on smartphones, has released one new game app each year. Three of them have become huge hits, earning the company more revenues than the co-owners ever imagined. This year, however, it looks like a recently released app from one of the dozens of new competitors that enter the market every year is going to be the big hit of the season. Into which quadrant of the environmental uncertainty framework does Omnitech Games fall?
Simple and unstable with high-moderate uncertainty
As the operations manager of a home appliance manufacturer, you've been asked to set key performance indicators to measure your organization's sustainability efforts. You've asked each department head to submit at least one sustainability KPI, and now you're in the process of reviewing their submissions. Some managers have done a great job, while others have missed the mark. Which of the following is an appropriate KPI?
To reduce the amount of electric energy used in the manufacturing plants by 3% each year over the next 10 years
Uber, one of the biggest peer-to-peer ridesharing and delivery organizations, has recognized that self-driving vehicles would eliminate the organization's need for human drivers, which are its biggest operating expense. Thus, the organization set up a new division dedicated to developing self-driving vehicles and sought out investments of $1 billion. Toyota then committed to contributing somewhere between $500 and $800 million to Uber's product development. Why is Toyota such a good ally for Uber?
Toyota is able to offer valuable financial and technological resources.
With the transnational model, the management philosophy is based on _____ rather than either autonomous divisions or units being wholly reliant on headquarters for decision making.
interdependence
In the context of mechanisms for institutional adaptation, benchmarking is a:
mimetic process.
Penrose Inc. is an American corporation that provides business consulting, information technology, and outsourcing services. The company has extensive experience in a number of international markets and has established facilities in several foreign countries. Penrose Inc. is in the _____ stage of international development.
multinational
A complex environment is one in which an:
organization interacts with and is influenced by numerous diverse external elements
A system formed by the interaction of a community of organizations and their environment is referred to as a(n):
organizational ecosystem.
