Effective Management, 6th Edition solutions manual and test bank Chuck Williams

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