MGMT7 7th Edition By Chuck Williams – Test Bank

 

 

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Sample Test

Chapter_03_Chapter_Quiz_

 

1.    The two kinds of external organizational environments are the general environment and the specific environment. a. True

2.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01 – 3.1

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

2.    External environments are the forces and events outside a company that have the potential to influence or affect it. a. True

3.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01 – 3.1

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

3.    According to its rate of environmental change, an organization’s environment can be either stable or dynamic, but not both.

4.    a. True

5.    False

 

ANSWER:                            False

RATIONALE:                       According to punctuated equilibrium theory, companies often experience both stable and dynamic external environments.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01a – 3.1a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

4.    Environmental complexity refers to the degree of change in the external factors that affect organizations. a. True

5.    False

 

ANSWER:                            False

RATIONALE:                       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.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01b – 3.1b

TOPICS:                              AACSB Analytic

KEYWORDS:                       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.

6.    a. True

7.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01c – 3.1c

TOPICS:                              AACSB Analytic

KEYWORDS:                       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.

7.    a. True

8.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01d – 3.1d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

7.    The general environment consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly affect all organizations.

8.    a. True

9.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

8.    The general environment is unique to each firm’s industry and directly affects the way it conducts day-to-day business.

9.    a. True

10.  False

 

ANSWER:                            False

RATIONALE:                       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.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

9.    Changes in any sector of the general environment eventually affect most organizations. a. True

10.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

10.  10. The specific segment of an organization’s external environment is unique to its region of the a. True

11.  False

 

ANSWER:                            False

RATIONALE:                       The specific environment is unique to the firm’s industry, not region of the country.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03 – 3.3

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

11.  11. Business confidence indices are a viable alternative to economic statistics for management decision a. True

12.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02a – 3.2a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

12.  12. Managers often prefer economic statistics to business confidence indices as tools for managerial decision making because of their inherently greater

13.  a. True

14.  False

 

ANSWER:                            False

RATIONALE:                       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.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02a – 3.2a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

13.  13. The best way to manage legal responsibilities is to retain a large staff of legal specialists to defend the company against any

14.  a. True

15.  False

 

ANSWER:                            False

RATIONALE:                       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.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02d – 3.2d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Legal Responsibilities

 

14.  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

15.  a. True

16.  False

 

ANSWER:                            False

RATIONALE:                       General environments INDIRECTLY influence organizations, while changes in an organization’s specific environment DIRECTLY affects the way a company conducts its business.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

WILL.MGMT.15.3.03 – 3.3

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

15.  15. Proactive customer monitoring is defined as identifying and addressing customer trends and problems after they

16.  a. True

17.  False

 

ANSWER:                            False

RATIONALE:                       This defines reactive customer monitoring.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03a – 3.3a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

16.  16. Managers often do a poor job of identifying potential a. True

17.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03b – 3.3b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

17.  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

18.  a. True

19.  False

 

ANSWER:                            False

RATIONALE:                       This is the definition of supplier dependence.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

18.  18. A decrease in either buyer dependence or supplier dependence can lead to opportunistic a. True

19.  False

 

ANSWER:                            False

RATIONALE:                       An increase in either buyer dependence or supplier dependence can lead to opportunistic behavior.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

AACSB Ethics

KEYWORDS:                       Environmental Influence | Ethical Responsibilities | Strategy

 

19.  19. Advocacy groups are typically composed of concerned citizens who have a strong feeling about a common issue even though the members’ viewpoints differ

20.  a. True

21.  False

 

ANSWER:                            False

RATIONALE:                       The members of advocacy groups generally share the same point of view on a particular issue.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e

TOPICS:                              AACSB Analytic

AACSB Ethics

KEYWORDS:                       Environmental Influence | Ethical Responsibilities

 

20.  20. The three techniques used by advocacy groups to influence companies are public communications, media advocacy, and product

21.  a. True

22.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e

TOPICS:                              AACSB Ethics

AACSB Communication

KEYWORDS:                       Environmental Influence | Ethical Responsibilities

 

21.  21. Advocacy groups cannot directly regulate organization a. True

22.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e

TOPICS:                              AACSB Analytic

AACSB Ethics

KEYWORDS:                       Environmental Influence | Ethical Responsibilities

 

22.  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

23.  a. True

24.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.04 – 3.4

TOPICS:                              AACSB Ethics

KEYWORDS:                       Environmental Influence | Strategy

 

23.  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. a. True

1.    False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.04 – 3.4

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

24.  24. Organizational culture refers to the set of key values, beliefs, and attitudes shared by organizational a. True

25.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05 – 3.5

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

25.  25. A primary source of organizational culture is the company a. True

26.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

26.  26. After the company founders are gone, stories and heroes can help to sustain the founder’s values, attitudes, and beliefs in the organizational

27.  a. True

28.  False

 

ANSWER:                            True

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

AACSB Communication

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

27.  27. Organizational heroes can be used to make sense of organizational events and a. True

28.  False

 

ANSWER:                            False

RATIONALE:                       Organizational stories are used to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions. While organizational heroes may be included in such stories, it is the story that provides the sense-making function.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

AACSB Communication

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

28.  28. Extensive research demonstrates clearly that organizational culture is strongly related to organizational a. True

29.  False

 

ANSWER:                            False

RATIONALE:                       There is only preliminary research showing that organizational culture is related to organizational success.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

29.  29. Successful organizational cultures seem to be based solely upon consistency (i.e., “strength” of the organizational culture).

30.  a. True

31.  False

 

ANSWER:                            False

RATIONALE:                       Successful organizational cultures seem to be based upon adaptability, involvement, a clear mission, and consistency.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05b – 3.5b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

30.  30. The term behavioral multiplication refers to 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

31.  a. True

32.  False

 

ANSWER:                            False

RATIONALE:                       This process is called behavioral addition.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

31.  31. When used together, the combination of behavioral substitution, behavioral addition, and changing visible artifacts is extremely likely to achieve the desired changes in organizational

32.  a. True

33.  False

 

ANSWER:                            False

RATIONALE:                       Corporate cultures are very difficult to change. Consequently, there is no guarantee that these techniques will work.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Group Dynamics | HRM | Leadership Principles

 

32.  32. What are the two types of external organizational environments?

33.  a. general and the specific public and private

34.  c. global and the national

35.  organizational and the interpersonal

36.  e. market-specific and the product-specific

 

ANSWER:                            a

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01 – 3.1

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

 

33.  33. In terms of external organizational environments, the environment is unique to each

34.  a. global; national

35.  customer-driven; production-driven c. general; specific

36.  informal; formal e. specific; general

 

ANSWER:                            c

RATIONALE:                       Exhibit 3.2

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01 – 3.1

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

environment affects all organizations while the

 

34.  34. All events outside a company that have the potential to influence or affect it occur in the a. specific

35.  external c. formal

36.  potential e. national

 

ANSWER:                            b

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01 – 3.1

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

35.  35. Which of the following companies is most likely operating in a dynamic environment?

36.  a. a video game manufacturer a bakery

37.  c. a brewery, winery, or distillery in the liquor industry a manufacturer of pet food

38.  e. a cereal manufacturer

 

ANSWER:                            a

RATIONALE:                       A dynamic environment is one in which the rate of change is fast. A video game maker faces short product life cycles and rapid changes in technology.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01a – 3.1a TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

 

36.  36. According to the

theory, companies go through long, simple periods of environmental stability, followed by

 

short, complex periods of dynamic, fundamental environmental change, finishing with a return to environmental stability.

1.    a. environmental change theory

2.    theory of environmental dynamics c. punctuated equilibrium theory

3.    theory of resource scarcity e. environmental cycle

 

ANSWER:                            c

RATIONALE:                       This is the definition of punctuated equilibrium theory.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01a – 3.1a TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

37.  37. Over the past 20 years, which of the following is an industry that has experienced both the stable and dynamic environments predicted by punctuated equilibrium theory?

38.  a. the airline industry the baking industry

39.  c. the video game industry

40.  the breakfast cereal industry e. the landscaping industry

 

ANSWER:                            a

RATIONALE:                       The U.S. airline industry is used in the text as an example of punctuated equilibrium, or a long, simple period of stability followed by short periods of dynamic, fundamental change.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01a – 3.1a TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

38.  38. Suppose that a Mexican car manufacturer wants to export cars to Guatemala. The fact that the distribution of income within Guatemala is highly unequal and that about 75 percent of the population is below the poverty line would be a(n)          component in the manufacturer’s general

39.  a. technological socio-cultural c. economic

40.  political/legal e. demographic

 

ANSWER:                            c

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02a – 3.2a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

39.  39. A company facing a simple environment would .

40.  a. most likely be in the first stage of the environmental cycle exhibit proof of the punctuated equilibrium theory

41.  c. be unable to succeed due to lack of innovation

42.  be influenced by only factors in its specific environment

43.  e. have few external factors in the environment that affect it

 

ANSWER:                            e

RATIONALE:                       Definition of a simple environment.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01b – 3.1b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

40.  40. In terms of environmental complexity,

environments have few environmental factors, whereas

 

environments have many environmental factors. a. non-competitive; competitive

1.    simple; complex c. stable; dynamic

2.    scarce; abundant

3.    e. market-oriented; product-oriented

 

ANSWER:                            b

RATIONALE:                       Definitions of simple and complex environments.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01b – 3.1b TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

 

41.

is the degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources.

1.    a. Environmental complexity Environmental capacity

2.    c. Differentiation opportunity Environmental dynamism e. Resource scarcity

 

ANSWER:                            e

POINTS:                              1

DIFFICULTY:                     Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01c – 3.1c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

 

42.  42. In a very strong economy, where the demand for qualified job applicants exceeds the supply, the environmental characteristic of is likely to be particularly salient for many

43.  a. environmental complexity environmental change

44.  c. resource scarcity

45.  environmental uncertainty e. environmental risk

 

ANSWER:                            c

RATIONALE:                       Resource scarcity is a lack of critical organizational resources (in this case, human resources).

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01c – 3.1c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

43.  43. Environmental is affected by environmental complexity, change, and a. uncertainty

44.  differentiation c. difficulty

45.  essence

46.  e. entrepreneurship

 

ANSWER:                            a

RATIONALE:                       Environmental uncertainty is defined as the extent to which managers can understand or predict which environmental changes will affect their businesses. Complexity and change make it more difficult for managers to achieve such understanding or make sound forecasts.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.01c – 3.1c TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

44.  44. Legislation concerning the disposal of biological wastes, the development of more sophisticated imaging machines, and longer patient life spans would all be part of the for a public

45.  a. internal environment specific environment

46.  c. socio-cultural environment general environment

47.  e. environmental differentiation

 

ANSWER:                            d

RATIONALE:                       These are changes that indirectly affect all organizations.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

45.  45. The

consists of the economy and the technological, socio-cultural, and political/legal trends that indirectly

 

affect all organizations.

1.    a. economic environment specific environment

2.    c. general environment indirect environment e. direct environment

 

ANSWER:                              c

RATIONALE:                        This is the definition of general environment.

POINTS:                                1

DIFFICULTY:                       Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence

 

46.  46. Which of the following is a component of the specific environment that would directly influence a restaurant’s day- to-day operation?

47.  a. its regular customers GNP

48.  c. a trend toward eating less fat

49.  more rigid enforcement of OSHA laws e. all of these

 

ANSWER:                              a

RATIONALE:                       Customers are a major component of a firm’s specific environment. All of the other items would exert an indirect influence as part of the firm’s general environment.

POINTS:                                1

DIFFICULTY:                       Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence

 

47.  47. Changes in any sector of the general environment . a. will typically not impact most organizations

48.  tend to slow down how quickly an organization moves through the environmental cycle c. inhibit the innovation process

49.  influence customers first and then suppliers e. will eventually affect most organizations.

 

ANSWER:                            e

RATIONALE:                       It is a fundamental attribute of general environment factors that they affect all organizations over time.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

48.  48. Which of the following is a component of Coca-Cola’s specific environment and will directly influence how it does business?

49.  a. Pepsi-Cola

50.  laws concerning sanitation c. inflation

51.  the increased popularity of energy drinks

52.  e. the development of vending machines that accept debit cards

 

ANSWER:                            a

RATIONALE:                       Pepsi is a direct competitor and thus a component of Coke’s specific environment.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

49.  49. Which of the following is a component of a book publisher’s general environment and will indirectly influence how it does business?

50.  a. other book publishing companies pornography laws

51.  c. an advocacy group supporting free books for children a trend toward less leisure time

52.  e. paper and ink suppliers

 

ANSWER:                            d

RATIONALE:                       Leisure time trends will affect other companies such as boat manufacturers. The other

elements are part of the publisher’s specific environment.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02 – 3.2

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

50.  50. Which of the following is the LEAST aggressive approach likely to be used by an advocacy group?

51.  a. public communications media advocacy

52.  c. product boycotts

53.  class action lawsuits e. picketing

 

ANSWER:                            a

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

51.  51. Consider a hamburger fast-food chain that began operations prior to World War II. In which of the following would have been part of its specific environment after the start of World War II?

52.  a. other fast-food restaurants that sell hamburgers

53.  its customers who eat burgers at least once a week c. the meat packing company that supplied its beef

54.  government-mandated beef rationing as a result of World War II

55.  e. all of these

 

ANSWER:                            d

RATIONALE:                       Competitors, customers, and suppliers are part of a company’s specific environment at any time. Rationing, an example of industry-specific regulation, is not a typically part of a company’s specific environment but occurs only under certain circumstances, in this case the need to divert resources to the war effort.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03 – 3.3

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

52.  52. Managers often prefer to use business confidence indices . a. to identify socio-cultural trends

53.  as predictors of future economic activity when making business decisions c. which are based on intuition and experience

54.  to encourage customers to make long-term buying decisions e. to improve consumer confidence forecasts

 

ANSWER:                            b

RATIONALE:                       Economic statistics tend to be poor predictors of future business activity. Confidence indexes measure manager sentiment, which may yield a stronger prediction of near-term economic activity.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02a – 3.2a TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

53.  53. Technology is the services).

used to transform inputs (raw materials, information, etc.) into outputs (products or

 

1.    a. knowledge, tools, and techniques knowledge and machinery

2.    c. plans and machinery tools and techniques e. strategy and tactics

 

ANSWER:                              a

POINTS:                                1

DIFFICULTY:                       Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02b – 3.2b

TOPICS:                                AACSB Analytic

AACSB Technology

KEYWORDS:                        Environmental Influence | Information Technologies

 

54.  54. More premature babies than ever before are surviving due to improvements in medical knowledge and care. This improved survival rate can be attributed to the component of

55.  a. technological socio-cultural c. economic

56.  political/legal e. demographic

 

ANSWER:                              a

POINTS:                                1

DIFFICULTY:                       Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02b – 3.2b

TOPICS:                                AACSB Technology

AACSB Analytic

KEYWORDS:                        Environmental Influence

 

55.  55. Tourism was not the only travel-associated industry that was visibly hurt by what happened on 9/11. People decided to vacation at home and sales of luggage and similar travel gear decreased significantly. Sales of home swimming pools increased. This decision to stay at home reflects a change in attitudes toward the perceived safety of long- distance traveling. This is an example of a change in the component of the general

56.  a. technological socio-cultural c. economic

57.  competitive e. geographic

 

ANSWER:                            b

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02c – 3.2c TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

56.  56. Fear of a lawsuit prevents many employers from giving totally honest recommendations to former employees. This reflects a change in the component of the general

57.  a. technological social

58.  c. economic

59.  political/legal e. demographic

 

ANSWER:                            d

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02d – 3.2d TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

57.  57. The manager of a company that produces a soy-based sausage wants to conduct a competitive analysis. During this competitive analysis, he should look at .

58.  a. companies that produce other brands of pork-based sausage

59.  Morningstar, a company that has a complete line of soy-based products c. companies that produce other forms of breakfast meats like bacon

60.  individuals who make their own sausage e. all of these

 

ANSWER:                            e

RATIONALE:                       Competitive analysis is a process for monitoring the competition that involves identifying competitors, anticipating their moves, and determining their strengths and weaknesses. To understand competitive behavior, it is important that this company identify all of its likely competitors.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03b – 3.3b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

58.  58. A fast-food restaurant chain is famous for its small, square hamburgers. Which of the following would be a component of its socio-cultural environment?

59.  a. a period of business prosperity

60.  the development of fully automated drive-through windows c. a price war with Burger King and McDonald’s

61.  the fact most consumers prefer eating out rather than at home e. regulations passed by the Food & Drug Administration

 

ANSWER:                            d

RATIONALE:                       Consumer preferences are an example of a trend in general behavior, an aspect of the socio-cultural environment.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02c – 3.2c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02d – 3.2d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Legal Responsibilities

 

60.  60. Which of the following is NOT a dimension of the political/legal component of the general environment that governs and regulates business behavior?

61.  a. legislation

62.  competitive products c. court decisions

63.  regulation

64.  e. customer-initiated lawsuits

 

ANSWER:                            b

RATIONALE:                       The political/legal component includes legislation, regulation, and court decisions that govern and regulate business behavior.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02d – 3.2d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Legal Responsibilities

 

LEARNING OBJECTIVES:  WILL.MGMT.15.3.02d – 3.2d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Legal Responsibilities

 

62.  62. Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two- acre yards. The other is offering a similarly sized house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the larger lots could use  to determine why his homes are not

63.  a. proactive customer monitoring consumer confidence forecasts c. demographic information

64.  reactive customer monitoring e. a competitive location study

 

ANSWER:                            d

RATIONALE:                       Reactive customer monitoring is defined as identifying and addressing customer trends and problems after they occur.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03a – 3.3a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03a – 3.3a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

64.  64. Two homebuilders are building homes in nearby subdivisions. One is offering 2,500-square-foot homes with two- acre yards. The other is offering a similar size of house with quarter-acre yards. The builder offering the smaller lots cannot keep up with demand. The builder offering the larger lots has several unsold houses. The builder with the smaller lots most likely used  to determine what homebuyers

65.  a. reactive customer monitoring proactive customer monitoring c. competitive analysis

66.  environmental munificence

67.  e. consumer confidence forecasts

 

ANSWER:                            b

RATIONALE:                       Proactive customer monitoring is defined as identifying and addressing customer needs, trends and issues before they occur.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03a – 3.3a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03b – 3.3b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

66.  66. Companies doing a competitive analysis typically err by . a. doing an incomplete job of identifying competitors

67.  overestimating their competition c. ignoring proactive monitoring

68.  relying on competitive intelligence e. doing all of these

 

ANSWER:                            a

RATIONALE:                       Managers tend to focus on two or three well-known competitors and may overlook less visible/familiar competitors.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03b – 3.3b TOPICS:                              AACSB Analytic KEYWORDS:                                            Environmental Influence

 

67.  67. Typically the most important factor in the relationship between companies and their suppliers is . a. how dependent they are on each other

68.  how much they know about each other

69.  c. how compatible their organizational cultures are the type of product being manufactured

70.  e. all of these

 

ANSWER:                            a

RATIONALE:                       A high degree of buyer or seller dependence can lead to opportunistic behavior by one party at the expense of the other.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

1.    e. consumer confidence indicators

 

ANSWER:                            b

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

69.  69. The creation of Ingram Distribution allows booksellers to streamline the ordering and return procedures of their books. Ingram made all the books bookstore owners wanted available in one centralized warehouse. Many new bookstore owners would be unwilling and/or unable to return to the method of ordering books from the individual publishers. This is an example of the creation of .

70.  a. high buyer dependence on a supplier pure competition

71.  c. transactional freedom

72.  high supplier dependence on a buyer e. none of these

 

ANSWER:                            a

RATIONALE:                       A high degree of buyer or seller dependence can lead to opportunistic behavior by one party at the expense of the other.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

1.    a. buyer dependent

2.    relationship-based c. transformational

3.    supplier dependent e. none of these

 

ANSWER:                            a

RATIONALE:                       A high degree of buyer or seller dependence can lead to opportunistic behavior by one party at the expense of the other.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

 

71.  71. A high degree of buyer or seller dependence can lead to

72.  a. relationship behavior transactional behavior c. behavioral monogamy d. relational monopoly

73.  e. opportunistic behavior

in which one party benefits at the expense of the

 

 

ANSWER:                            e

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

inspector had him remove the expensive carpeting and replace it with a carpet that did allow for wheelchair

 

maneuverability. This is an example of how the

it.

1.    a. socio-cultural economic

2.    c. political/legal supplier

3.    e. industry regulation

component of a company’s specific environment influences

 

 

ANSWER:                            e

RATIONALE:                       Industry regulation includes rules that govern business practices and procedures, including accessibility for disabled workers.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03d – 3.3d

TOPICS:                              AACSB Analytic

AACSB Diversity

KEYWORDS:                       Environmental Influence | Ethical Responsibilities | Legal Responsibilities

 

73.  73. An emphasis on is likely to decrease opportunistic behavior but will never completely eliminate a. buyer dependence

74.  supplier dependence c. industry regulation

75.  relationship behavior e. competitive advocacy

 

ANSWER:                            d

RATIONALE:                       A high degree of buyer or seller dependence can lead to opportunistic behavior by one party at the expense of the other. Relationship behavior focuses on establishing long-term, mutually beneficial relationships.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03c – 3.3c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Ethical Responsibilities

 

1.    a. an increase in the prime lending rate local health inspectors

2.    c. class-action suits against all fast-food restaurants inflation

3.    e. all of these

 

ANSWER:                            b

RATIONALE:                       Industry regulations and rules govern the business practices and procedures of specific industries, businesses, and professions. The restaurant industry is regulated by local health inspectors.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03d – 3.3d

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

 

75.

is a tactic in which an advocacy group actively tries to convince consumers not to purchase a company’s product or service.

1.    a. Lobbying

2.    Public communications c. Media advocacy

3.    Product boycott

4.    e. Market denigration

 

ANSWER:                            d

RATIONALE:                       Media advocacy is defined as a tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage. Lobbying, public communications, and market denigration are not listed in the book as advocacy tactics.

POINTS:                              1

DIFFICULTY:                     Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e TOPICS:                              AACSB Communication KEYWORDS:                                            Environmental Influence

 

of the following advocacy group tactics would be most likely to cause a business to fail?

1.    a. media advocacy product boycotts

2.    c. public communications

3.    requiring a business license e. lobbying

 

ANSWER:                            b

RATIONALE:                       Product boycotts are the most aggressive public advocacy tactic, as they may directly impact

a company’s potential to profit and grow.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.03e – 3.3e

TOPICS:                              AACSB Communication

AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

77.  77. The first step managers use to make sense of their changing environments is . a. environmental scanning

78.  perceptual re-engagement c. modifying budgets

79.  downsizing

80.  e. benchmarking

 

ANSWER:                            a

RATIONALE:                       Environmental scanning precedes action steps such as downsizing, modifying budgets, or benchmarking. Perceptual re-engagement is a red herring.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.04 – 3.4

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Leadership Principles | Strategy

 

78.  78. Which of the following is one of the steps in the process that managers use to make sense of their changing environments?

79.  a. perceptual re-engagement environmental laddering

80.  c. acting on threats and opportunities creating strategic windows

81.  e. behavioristic relations

 

ANSWER:                            c

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.04 – 3.4

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Leadership Principles | Strategy

 

79.  79. Kodak makes digital cameras and paper for prints. Kodak would view the growing popularity of digital cameras as

 

a(n)

in its external environment if it considered how digital cameras affect sales of cameras that use film. On

 

the other hand, Kodak would view the growing popularity of digital cameras as a(n)

in its external

 

environment if it considered the amount of Kodak processing paper used in printing pictures made by digital cameras.

1.    a. strength; weakness risk; certainty

2.    c. opportunity; threat certainty; risk

3.    e. threat; opportunity

 

ANSWER:                            e

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.04b – 3.4b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | Strategy

 

 

80.  80. The term

refers to the events and trends inside an organization that affect management, employees, and the

 

organizational culture.

1.    a. managerial environment internal environment

2.    c. industry environment general environment

3.    e. organizational structure

 

ANSWER:                            b

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05 – 3.5

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | HRM

 

81.  81. The is the set of key values, beliefs, and attitudes shared by members of an a. industry code of ethics

82.  internal environment c. organizational culture d. organizational strategy e. organizational vision

 

ANSWER:                            c

RATIONALE:                       This is the definition of organizational culture.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05 – 3.5

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

82.  82. When Susan started work at Henderson Textile , she was amazed at its employees who would take 30-minute restroom breaks, leave for the day at 2 p.m., and generally belittle the company’s management. Such employees’ actions most likely developed over time as a result of a faulty .

83.  a. general environment benchmark

84.  c. response to an opportunity organizational culture

85.  e. formalization strategy

 

ANSWER:                            d

RATIONALE:                       The organizational culture is the set of key values, beliefs, and attitudes shared by members of an organization.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05 – 3.5

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence

 

83.  83. is a primary source of organizational a. The company’s founder

84.  The organization’s competitive strategy

85.  c. The industry in which the organization operates Suppliers

86.  e. Customers

 

ANSWER:                            a

RATIONALE:                       Company founders (such as Sam Walton of Wal-Mart) exert a primary influence on the

development of an organization’s culture.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | HRM

 

84.  84. After an organization’s founders are gone, the organization can use to sustain its organizational a. industry associations

85.  organizational heroes

86.  c. organizational structure organizational maps

87.  e. reciprocal formalization

 

ANSWER:                            b

RATIONALE:                       Organizational stories and heroes are two means of perpetuating an organizational culture after a founder retires, dies, or chooses to leave the organization.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | HRM

 

85.  85. According to a book by a Harvard Business School professor, some organizational cultures simply cannot meet the challenges posed by innovation and must respond to threats from new technologies by building outside Digital Equipment is described as having one of those organizational cultures. The company squandered the opportunities presented by the PC revolution even though it was well equipped to build cheap PCs. The company did not have .

86.  a. adaptability synergy

87.  c. a formula for success laddering knowledge management

88.  e. comprehension

 

ANSWER:                              a

RATIONALE:                        Adaptability is the ability to notice and respond to changes in organizational environment.

Digital Equipment failed to recognize the shift from mainframes to PCs.

POINTS:                                1

DIFFICULTY:                       Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05b – 3.5b

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence | HRM

 

86.  86. Which of the following is a characteristic of successful organizational cultures?

87.  a. adaptability consistency c. involvement

88.  a clear mission e. all of these

 

ANSWER:                              e

POINTS:                                1

DIFFICULTY:                       Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05b – 3.5b

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence | HRM

 

87.  87. The Edmonton Oilers ice hockey team develops a sense of history for its current players by raising banners showing its success – five championships – and the retired numbers of great players from the past in its stadium and locker room. What tactics for maintaining organizational culture are the Edmonton Oilers using?

88.  a. organizational complexity and consistency organizational benchmarking

89.  c. cultural laddering

90.  organizational stories and organizational heroes e. behavioral addition and behavioral substitution

 

ANSWER:                              d

POINTS:                                1

DIFFICULTY:                       Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05a – 3.5a

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence | HRM

 

88.  88. One of the difficulties encountered in recent mergers has been the inability of employees in the two existing organizational cultures to operate harmoniously. In other words, merging organizational cultures often lack the that would increase the likelihood of a merger’s

89.  a. responsiveness adaptability

90.  c. involvement consistency e. validity

 

ANSWER:                              b

RATIONALE:                       Adaptability is the ability to notice and respond to changes in the environment. Merging changes the internal environment of the merged organizations.

POINTS:                                1

DIFFICULTY:                       Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05b – 3.5b

TOPICS:                                AACSB Analytic

KEYWORDS:                        Environmental Influence | HRM

 

89.  89. One of the problems with many of the dot-com companies that failed in the mid-1990s was a lower and middle management adherence to innovation and an expectation that work would be fun while top management envisioned

 

the company being profitable and the elimination of unnecessary expenses. These companies lacked organizational cultures.

1.    a. empathy

2.    formalization c. consistency

3.    broad spans of management

4.    e. responsiveness

in their

 

 

ANSWER:                            c

RATIONALE:                       Consistency is defined as actively defining and teaching the organizational values, beliefs and attitudes. In this description, dot-com companies allowed two different (and often conflicting) sub-cultures to emerge naturally.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05b – 3.5b

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | HRM

OTHER:                               Comprehension

 

90.  90. Organizations use behavioral addition, behavioral substitution, and to change their organizational a. media advocacy

91.  visible artifacts

92.  c. psychological counseling affective stores

93.  e. incremental valences

 

ANSWER:                            b

RATIONALE:                       Visible artifacts are signs of an organization’s culture (e.g., company dress code). Changes

in artifacts may be made in order to support the change process.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       Environmental Influence | HRM

OTHER:                               Knowledge

 

91.

is the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture a company wants to create.

1.    a. Relationship transformation Behavioral substitution

2.    c. Partnering

3.    Attitudinal modification e. Behavioral addition

 

ANSWER:                            e

POINTS:                              1

DIFFICULTY:                     Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       HRM | Individual Dynamics | Motivation Concepts

OTHER:                               Knowledge

 

 

 

92.  92. When using

techniques to change organizational culture, the key to success is to choose behaviors that are

 

central to and symbolic of the old culture that is changing and the new culture you want to create. a. attitudinal motivation and conditioned learning

1.    behavioral substitution and behavioral addition c. conditioned and classical learning

2.    negative and positive reinforcements e. organizational stories and heroes

 

ANSWER:                            b

RATIONALE:                       Behavioral substitution is replacing old behaviors with new behaviors in support of the change effort. Behavioral addition is adding new behaviors that support the change.

POINTS:                              1

DIFFICULTY:                      Difficult

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       HRM | Individual Dynamics | Motivation Concepts

OTHER:                               Comprehension

 

93.  93. Which of the following approaches will guarantee the successful change of an organizational culture?

94.  a. employee munificence perceptual substitution

95.  c. the recognition of new organizational heroes new organizational stories

96.  e. none of these

 

ANSWER:                            e

RATIONALE:                       Organizational cultures are very difficult to change, and no intervention guarantees success.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       HRM | HRM | Leadership Principles

OTHER:                               Knowledge

 

94.  94. Managers can use behavioral addition and behavioral substitution to . a. create benchmarks

95.  assess the threats and opportunities in the internal environment c. develop new products

96.  locate new markets for existing products e. modify corporate culture

 

ANSWER:                            e

RATIONALE:                       Behavioral addition and behavioral substitution are types of behavioral interventions commonly used in organizational change efforts.

POINTS:                              1

DIFFICULTY:                      Moderate

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       HRM | Leadership Principles | Motivation Concepts

OTHER:                               Comprehension

 

95.  95. In order to change an organizational culture, top management can persuade other managers and employees to perform a new behavior in place of an older one. This technique is called .

96.  a. behavioral iteration

97.  behavioral substitution c. behavioral subtraction

98.  organizational acculturation e. replacement behavior

 

ANSWER:                            b

RATIONALE:                       Behavioral substitution is the process of having managers and employees perform new behaviors central to the new organizational culture in place of those behaviors that were central to the old organizational culture.

POINTS:                              1

DIFFICULTY:                      Easy

LEARNING OBJECTIVES:  WILL.MGMT.15.3.05c – 3.5c

TOPICS:                              AACSB Analytic

KEYWORDS:                       HRM | Individual Dynamics | Leadership Principles

OTHER:                               Comprehension