Effective Management, 6th Edition solutions manual and test bank Chuck Williams
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Chapter 2—Organizational Environments and
Cultures
TRUE/FALSE
1. The two kinds of external organizational
environments are the general environment and the specific environment.
ANS: T PTS: 1 DIF: Easy REF: 2-2
NAT: Level V Synthesis TOP: AACSB
Analytic
KEY: Environmental Influence
2. External environments are the forces and
events outside a company that have the potential to influence or affect it.
ANS: T PTS: 1 DIF: Easy REF: 2-1
NAT: Level III Application TOP: AACSB
Analytic
KEY: Environmental Influence
3. According to its rate of environmental
change, an organization's environment can be either stable or dynamic, but not
both.
ANS: F
According to punctuated equilibrium theory,
companies often experience both stable and dynamic external environments.
PTS: 1 DIF: Difficult REF: 2-1a NAT: Level II Comprehension
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
4. Environmental complexity refers to the degree
of change in the external factors that affect organizations.
ANS: F
Environmental complexity is the number of
external factors in the environment that affect organizations. Environmental
change refers to the rate at which a company's general and specific
environments change.
PTS: 1 DIF: Moderate REF: 2-1b NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
5. Resource scarcity is the degree to which an
organization's external environment has an abundance or lack of critical
organizational resources.
ANS: T PTS: 1 DIF: Moderate REF: 2-1c
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence | Strategy
6. Under conditions in which the rate of both
environmental change and complexity go up while environmental resources become
scarce, environmental uncertainty can be expected to increase.
ANS: T PTS: 1 DIF: Moderate REF: 2-1d
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence | Strategy
7. The general segment of a company’s external
environment consists of the economy and the technological, socio-cultural, and
political/legal trends that indirectly affect all organizations.
ANS: T PTS: 1 DIF: Easy REF: 2-2
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence
8. The general segment of a company’s external
environment is unique to each firm's industry and directly affects the way it
conducts day-to-day business.
ANS: F
This is the definition of the specific
environment. The general environment consists of the economy and the
technological, socio-cultural, and political/legal trends that indirectly
affect all organizations.
PTS: 1 DIF: Easy REF: 2-2 | 2-3 NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence
9. Changes in any sector of the general
environment eventually affect most organizations.
ANS: T PTS: 1 DIF: Moderate REF: 2-2
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence
10. The specific segment of an organization's
external environment is unique to its region of the country.
ANS: F
The specific environment is unique to the
firm's industry, not region of the country.
PTS: 1 DIF: Easy REF: 2-3 NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence
11. Business confidence indices are a viable
alternative to economic statistics for management decision making.
ANS: T PTS: 1 DIF: Moderate REF: 2-2a
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Strategy| Environmental Influence
12. Managers often prefer economic statistics to
business confidence indices as tools for managerial decision making because of
their inherently greater accuracy.
ANS: F
Managers often prefer business confidence
indices to economic statistics because they know that the level of confidence
reported by real managers affects their business decisions. Unfortunately, the
economic statistics that managers rely on when making these decisions are
notoriously poor predictors of future economic activity.
PTS: 1 DIF: Moderate REF: 2-2a NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
13. The best way to manage legal responsibilities
is to retain a large staff of legal specialists to defend the company against
any charges.
ANS: F
The best way to manage legal responsibilities
is to educate managers and employees about laws and regulations and potential
lawsuits that could affect a business.
PTS: 1 DIF: Easy REF: 2-2d NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Legal
Responsibilities | Environmental Influence
14. In contrast to the general segment of the
external environment that DIRECTLY influences an organization, changes in the
specific segment of an organization's external environment INDIRECTLY affect
the way a company conducts its business.
ANS: F
General environments INDIRECTLY influence
organizations, while changes in an organization's specific environment DIRECTLY
affects the way a company conducts its business.
PTS: 1 DIF: Easy REF: 2-3 NAT: Level II Comprehension
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
15. Proactive customer monitoring is defined as
identifying and addressing customer trends and problems after they occur.
ANS: F
This defines reactive customer monitoring.
PTS: 1 DIF: Easy REF: 2-3a NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
16. Managers often do a poor job of identifying
potential competitors.
ANS: T PTS: 1 DIF: Easy REF: 2-3b
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence | Strategy
17. Buyer dependence is the degree to which a
company relies on a supplier because of the importance of the supplier's
product to the company and the difficulty of finding other sources of that
product.
ANS: F
This is the definition of supplier
dependence.
PTS: 1 DIF: Easy REF: 2-3c NAT: Level I Knowledge
TOP: AACSB Analytic KEY: Environmental
Influence | Strategy
18. A decrease in either buyer dependence or
supplier dependence can lead to opportunistic behavior.
ANS: F
An increase in either buyer dependence or
supplier dependence can lead to opportunistic behavior.
PTS: 1 DIF: Moderate REF: 2-3c NAT: Level I Knowledge
TOP: AACSB Analytic| AACSB Ethics
KEY: Environmental Influence | Strategy | Ethical
Responsibilities
19. Advocacy groups are typically composed of
concerned citizens who have a strong feeling about a common issue even though
the members' viewpoints differ significantly.
ANS: F
The members of advocacy groups generally
share the same point of view on a particular issue.
PTS: 1 DIF: Moderate REF: 2-3e NAT: Level I Knowledge
TOP: AACSB Ethics| AACSB Analytic KEY: Environmental
Influence | Ethical Responsibilities
20. The three techniques used by advocacy groups
to influence companies are public communications, media advocacy, and product
boycotts.
ANS: T PTS: 1 DIF: Easy REF: 2-3e
NAT: Level I Knowledge TOP: AACSB
Ethics| AACSB Communication
KEY: Environmental Influence | Ethical Responsibilities
21. Advocacy groups cannot directly regulate
organization practices.
ANS: T PTS: 1 DIF: Moderate REF: 2-3e
NAT: Level II Comprehension TOP: AACSB
Analytic| AACSB Ethics
KEY: Environmental Influence | Ethical
Responsibilities
22. Because external environments can be dynamic,
confusing, and complex, managers use a three-step process to make sense of the
changes in their external environments. Those steps are (1) environmental
scanning, (2) interpreting environmental factors, and (3) acting on threats and
opportunities.
ANS: T PTS: 1 DIF: Easy REF: 2-4
NAT: Level I Knowledge TOP: AACSB
Ethics
KEY: Strategy | Environmental Influence
23. Managers can make sense of their changing
external environments by completing all three of the following steps:
environmental scanning, interpreting environmental factors, and acting on
threats and opportunities.
ANS: T PTS: 1 DIF: Moderate REF: 2-4
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Environmental Influence | Strategy
24. Organizational culture refers to the set of
key values, beliefs, and attitudes shared by organizational members.
ANS: T PTS: 1 DIF: Easy REF: 2-5a
NAT: Level II Comprehension TOP: AACSB
Analytic
KEY: Group Dynamics | Leadership Principles | HRM
25. A primary source of organizational culture is
the company founder.
ANS: T PTS: 1 DIF: Easy REF: 2-5a
NAT: Level I Knowledge TOP: AACSB
Analytic
KEY: Group Dynamics | Leadership Principles | HRM
26. After the company founders are gone, stories
and heroes can help to sustain the founder's values, attitudes, and beliefs in
the organizational culture.
ANS: T PTS: 1 DIF: Easy REF: 2-5a
NAT: Level I Knowledge TOP: AACSB
Analytic| AACSB Communication
KEY: Group Dynamics | Leadership Principles | HRM
