Deck 2: The Managerial Environment

Question 1

A slow change rate in the environment indicates that it is unstable.

Answer 1

False

Question 2

Information technology has affected organisations' efficiency, but not their effectiveness.

Answer 2

False

Question 3

Fertility rate is part of the _________ dimension of the general environment.

A)sociocultural
B)technological
C)economic
D)political

Answer 3

sociocultural

Question 4

Unions are employee associations that negotiate pay and conditions with employers on behalf of their members.

Question 5

The sociocultural, technological, economic, political/legal and _________ conditions in which an organisation operates is known as the general environment.

A)cultural
B)governmental
C)value-based
D)global

Question 6

Organisations function as open systems.

Question 7

The World Health Organization estimates that 300 million people worldwide are affected by _________.

A)depression
B)physical disability
C)terrorism
D)homicide

Question 8

Define workplace diversity and explain three ways people may be similar to and different from one another in a workforce.

Question 9

Which activity do unions typically carry out?

A)Suing employees
B)Enforcing laws
C)Negotiating pay increases
D)Educating political leaders

Question 10

Environmental uncertainty is affected by environmental complexity.

Question 11

The environment only provides feedback about outputs.

Question 12

Resource availability affects an organisation's _________.

A)financial results
B)outputs
C)inputs
D)transformational processes

Question 13

An industry is expected to experience increased environmental complexity if _________.

A)a critical resource becomes unavailable due to a natural disaster
B)rigid rules and standards control the industry
C)the government approves high customs taxes on imported goods
D)a major producer buys out some of its competitors

Question 14

Which of the following is the most likely demographic prediction for the future, based on recent analysis of birth rates?

A)India will be the oldest country by the year 2020.
B)By 2050, China will have more people aged 85 and older than the rest of the world combined.
C)More than 80 per cent of babies being born worldwide are from Africa and Asia
D)By 2050, the number of individuals over age 65 will average less than 3 per cent per country.

Question 15

An organisation's suppliers influence the organisation's product and service quality, competitiveness and profitability.

Question 16

In a dynamic environment, managers need to delay responses until stability is reached.

Question 17

Which of the following statements about ethnicity and race is correct?

A)Ethnicity is related to race.
B)Ethnicity is a subset of race.
C)Ethnicity refers to how people see themselves, whereas race is about how other people see them.
D)Race is a subset of ethnicity.

Question 18

The Australian Conservation Foundation is an example of a supplier of the environmental sustainability industry.

Question 19

When resources are abundant, they increase environmental uncertainty.

Question 20

The customs, values, attitudes and behaviours in a particular society is known as its _________.

A)demographic conditions
B)cultural characteristics
C)ethnic dimensions
D)workforce diversity

Question 21

Not-for-profit organisations _________.

A)do not have competition because they do not seek profits
B)have no competition because they offer unique services
C)compete over donations, volunteers and clients
D)compete only over donations

Question 22

According to the textbook, which of the following statements is correct?

A)New Zealand is an example of a capitalist economic system because market forces operate freely.
B)Most countries have either a socialist or a capitalist economic system.
C)No socialist economic systems exist anymore.
D)Most countries combine elements from socialist and capitalist economic systems.

Question 23

Which cultural dimension relates to altruism?

A)Quantity versus quality of life
B)Assertiveness
C)Uncertainty avoidance
D)Individualism/collectivism

Question 24

Can global factors influence organisations directly?

A)Yes, because other influences belong to other categories.
B)No, because they originate in other countries, and therefore have no direct access to the organisations.
C)Yes, because they are so strong.
D)No, they can influence indirectly through other dimensions of the general environment.

Question 25

What is the effect of higher pension rates on the economy?

A)Higher pension rates increase pensioners' disposable income and lead to greater retail spending.
B)Higher pension rates reduce pensioners' disposable income and reduce retail spending.
C)Higher pension rates reduce pensioners' consumer awareness and stimulate spending.
D)Higher pension rates increase pensioners' consumer awareness and reduce trade.

Question 26

The global dimension of the general environment is defined as factors that _________.

A)affect at least four countries
B)originate from different continents
C)are subsidised by a foreign entity
D)operate across national boundaries

Question 27

Which of the following is part of a country's economic conditions?

A)Interest rates
B)Fertility rates
C)Health stability
D)Government stability

Question 28

The semiconductors industry uses silicon, which comes from sand, as a raw material.This industry would be _________.

A)stable and complex
B)dynamic and simple
C)dynamic and complex
D)stable and simple

Question 29

In a society with high _________, you would expect members of a corporation to have a strong identification with the corporation.

A)humane orientation
B)gender differentiation
C)collectivism
D)power distance

Question 30

Which term is often associated with an organisation's specific environment?

A)Stakeholders
B)Socialism
C)Technology
D)Race

Question 31

What are the risks of a strategic partnership?

A)Strategic partners can influence government agencies in ways that are adverse to the organisation
B)Strategic partnerships increase the costs of labour, because collaboration is very expensive
C)Strategic partners can use the knowledge gained by the partnership and become competitive rivals
D)There are no risks in strategic partnerships

Question 32

Why is it beneficial to have a strategic partnership with suppliers?

A)The company can be sure of the source of their input material
B)The organisation can collaborate and share information with the supplier and achieve better effectiveness
C)The suppliers develop a specific ordering system for the organisation
D)The supplier can have more power over the organisation to determine prices

Question 33

_________ is a cultural dimension measured by Hofstede in which people are encouraged to identify with a group within a society.

A)Individualism/collectivism
B)In-group collectivism
C)Gender differentiation
D)Performance orientation

Question 34

What is the effect of government spending on pensions?

A)Pensioners invest more, and this reduces the interest rate.
B)Pensioners reduce the availability of workers.
C)Retailers benefit from pensioners' spending.
D)There is a decrease in pensioners' service requests.

Question 35

The jewellery industry uses mostly precious metals and gemstones, and has many designers.However, the classic designs are the highest selling.The jewellery industry would be _________.

A)dynamic and complex
B)stable and complex
C)dynamic and simple
D)stable and simple

Question 36

Which statement is correct about environmental complexity?

A)Environmental complexity increases as resource availability decreases.
B)Environmental complexity is not dependent on dynamism, but it does depend on environmental uncertainty.
C)Environmental complexity mainly depends on resource availability.
D)Environmental complexity is directly related to environmental uncertainty.

Question 37

Which trait is likely to be prevalent in a society with a high assertiveness rating?

A)Modesty
B)Thrift
C)Confrontation
D)Unpredictability

Question 38

Organisations that exchange goods and services with consumers in other countries are considered _________.

A)capitalist
B)socialist
C)global
D)inclusive

Question 39

Which of the following is vulnerable to competitors' influence?

A)Product innovation
B)Unions' demands
C)Strategic partnerships with suppliers
D)Advertising campaigns

Question 40

When does the labour market have a strong influence on the organisation's production capacity?

A)When technological advancements are infrequent
B)With long-term employees only
C)When demand outstrips supply for employees with a specific skill
D)When unions are involved

Question 41

The knowledge involved in transforming raw materials into products or services is part of the organisation's technological dimension of the general environment.

Question 42

A change in the technological dimension of the general environment means all company production processes have to be changed.

Question 43

An increase in a population's education level is an example of a change in the general environment.

Question 44

The GFC is an example of a change in the economic dimension of the general environment.

Question 45

Competition is only against organisations in the same industry, offering the same products and services.

Question 46

Technological advancements are part of the organisation's specific environment.

Question 47

Environmental uncertainty is the rate and predictability of change in the elements of an organisation's environment.

Question 48

Which of the following entities is likely to influence organisations by lobbying governments?

A)Committees
B)Regulators
C)Suppliers
D)Interest groups

Question 49

Which of the following is an example of an interest group?

A)The Australian Medical Association
B)The Australian Workers' Union
C)The Australian Taxation Office
D)The Australian Federal Police

Question 50

In a short essay, describe the sociocultural dimension of the general environment, and how it relates to managers.

Question 51

The GLOBE research program is concerned with differences in the economic conditions around the world.

Question 52

Most economic systems cycle between capitalism and socialism.

Question 53

The economic dimension of the general environment is not relevant for not-for-profit organisations because they are not concerned with making profits and operate the same way under all economic conditions.

Question 54

An organisation's competitors are other organisations only.

Question 55

Interest rates are part of the political dimension of the general environment because they are determined by the government.

Question 56

Changes to a dimension of the general environment have no effect on organisations and their specific environment.

Question 57

Urbanisation in developing countries led to reduced rural population.This is an example of a change in the specific environment.

Question 58

Describe and give an example of GLOBE's cultural dimension uncertainty avoidance.

Question 59

When customers reduce their consumption of a product because of a growing awareness of its impact on the natural environment, it is an example of change in the producing organisation's specific environment.

Question 60

Demographic conditions are part of the organisation's general environment.

Question 61

Which of the following is an example of how language can unite members of an organisational culture?

A)Corporate rituals
B)Employees' use of jargon
C)A manager's attitudes about taking risks
D)A department's purchasing policies

Question 62

Describe and give an example of GLOBE's cultural dimension power distance.

Question 63

Which important aspect of organisational culture provides explanations for current practices and provides compelling examples of its goals?

A)Symbols
B)Rituals
C)Artefacts
D)Stories

Question 64

The degree to which organisational decisions and actions emphasise maintaining the status quo is known as _________.

A)attention to detail
B)innovation and risk taking
C)labour market orientation
D)stability

Question 65

An organisation's office layout, furnishings and dress code represents the organisation's culture through _________.

A)shared language and understanding
B)organisational stories and narratives
C)material symbols or artefacts
D)corporate rituals

Question 66

If the company sets up operations in India, which of the following would be a cultural characteristic that it will have to take into account?

A)Income composition
B)Education level
C)Geographic dispersal
D)Attitudes

Question 67

In Russia, Jana found that people tended to show great deference towards their superiors.When meeting with one higher-up, she noticed that the local managers seemed to exhibit extremely obsequious behaviour.How would you characterise this trait?

A)High power distance
B)Low power distance.
C)High uncertainty avoidance
D)Future oriented

Question 68

Which phrase best characterises the culture of an organisation?

A)Our official code of conduct
B)How things are done around here
C)The most efficient way to do things
D)Guidelines for where this organisation is going

Question 69

The original source of an organisation's culture usually reflects the vision and attitudes of _________.

A)the organisation's founders
B)the organisation's original employees
C)contemporaries who are admired by the organisation
D)the current president or CEO of the organisation

Question 70

In Denmark, Jana met people who were astonished at the ability of Americans to be so 'bold' and flexible when it came to making decisions about the future, while the Danish tended to rely on rules when facing uncertainty.How would you characterise this trait that Americans appear to have?

A)Low uncertainty avoidance
B)High power distance
C)High uncertainty avoidance
D)Individualistic

Question 71

A company that lives and breathes new product development, and employees' work behaviours support that goal, most likely adopts which one of the following organisational cultures?

A)Attention to detail
B)Innovation and risk taking
C)Stability
D)Aggressiveness

Question 72

Which of the following communicates an organisation's personality?

A)Informal rituals
B)Formal culture meetings
C)Stories
D)Artefacts

Question 73

The following are examples of an organisation with a strong culture except _________.

A)key values are deeply held by a few key members
B)strong leaders with a firm sense of direction and purpose
C)effective communication with all employees regarding policies and organisational issues
D)lower than average staff turnover rates

Question 74

In a short essay, explain the differences between high environmental uncertainty and low environmental uncertainty.

Question 75

Describe the technological dimension of the organisation's external environment.

Question 76

In China and Morocco, Jana noticed that it seemed easy to convince people to work together for the good of the group.How would you characterise this trait?

A)In-group collectivist
B)Assertive
C)Collectivist
D)Humane

Question 77

Which of the following global factors should TJ Soft consider if they want to set up operations in Israel?

A)Global warming
B)Global financial crisis
C)Iceland's volcanic eruption
D)Earthquakes in Southeast Asia

Question 78

Describe the organisation's stakeholders.

Question 79

An organisation's culture usually reflects the vision of its _________.

A)founders
B)stakeholders
C)unions
D)managers

Question 80

If TJ Soft considers operating in China as well, why is it important for them to establish contacts with the government?

A)Because China has stable governments.
B)Because the Chinese government does not approve software games.
C)Because the government in China is responsible for software development.
D)Because China is mainly a socialist economy, where the government plans all economic activities.