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Chapter 2—The Changing Environment of Organizations

 

MULTIPLE CHOICE

 

1. The environment of all organizations is changing at a(n) ____ rate.
   1. decreased
   2. slowing
   3. unprecedented
   4. moderate
   5. inelastic

 

 

ANS: C                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Environmental Influences       TYP: Knowledge

 

2. Understanding and addressing the environment of a business has traditionally been the purview of a. supervisors
   1. stockholders
   2. workers and line managers
   3. stakeholders
   4. top managers

 

 

ANS: E                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Strategy                                 TYP: Knowledge

 

3. The most significant source of change impacting many organizations today is increasing a. cultural change
   1. corporate governance
   2. globalization
   3. business ethics
   4. all of the above

 

 

ANS: C                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Strategy | AACSB: Environmental Influences

TYP: Knowledge

 

4. Which of the following statements regarding cross-cultural differences and similarities is not true?
   1. Cultures and national boundaries always coincide.
   2. Culture is a set of values that is often taken for granted.
   3. A manager behaves differently in different cultural settings.
   4. There are profound cultural differences between Southern California and Texas.
   5. Japanese and U.S. workers are likely to have different attitudes toward work.

 

 

ANS: A                     PTS: 1                       REF: p. 32

NAT: AACSB: Diversity | AACSB: Environmental Influences      TYP: Knowledge

 

5. Which of the following is true about employees working in the same company but in different locations?
   1. Their behavior may differ within and across countries.
   2. Their behavior will be the same regardless of their location.
   3. Their behavior at work is not important.
   4. Their behavior will have nothing to do with their location.
   5. Their behavior will be the same within single countries, but may differ from one country to the next.

 

 

ANS: A                     PTS: 1                       REF: p. 32

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Understanding

 

6. All of the following are considered cultural values except
   1. individualism/collectivism.
   2. uncertainty avoidance.
   3. power distance.
   5. open-mindedness.

 

 

ANS: E                      PTS: 1                       REF: p. 34-35

NAT: AACSB: Diversity | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Knowledge

 

7. Which of the following statements is not true about individualistic cultures?
   1. It is important to stand out in the crowd.
   2. It is important to fit in with the group.
   3. Tasks are more important than relationships.
   4. Promotion is based on skills and rules.
   5. People are more concerned with themselves than their work groups.

 

 

ANS: B                      PTS: 1                       REF: p. 34-35

NAT: AACSB: Diversity | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Understanding

 

8. Another term for power distance is ____.
   1. deontology
   2. teleology
   3. individualism
   4. orientation to authority
   5. collectivism

 

 

ANS: D                     PTS: 1                       REF: p. 35

NAT: AACSB: Diversity | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Knowledge

 

9. The dimension of uncertainty avoidance is the extent to which
   1. workers prefer unambiguous situations.
   2. workers focus on the future.
   3. acquisition of money and things is emphasized.
   4. women are allowed to work in society.
   5. men maintain a glass ceiling.

 

 

ANS: A                     PTS: 1                       REF: p. 35

NAT: AACSB: Diversity | AACSB: Individual Dynamics             TYP: Knowledge

 

10. Masculinity
    1. gives employees a sense of autonomy.
    2. is the extent to which workers focus on the future.
    3. enhances organizational effectiveness.
    4. emphasizes assertiveness.
    5. is the extent to which workers prefer clear situations.

 

 

ANS: D                     PTS: 1                       REF: p. 35

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Knowledge

 

11. The cultural dimensions identified by Hofstede include
    1. individualism
    2. uncertainty avoidance
    3. power distance
    4. a, b, and c
    5. none of the above

 

 

ANS: D                     PTS: 1                       REF: p. 34-35

NAT: AACSB: Diversity | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Knowledge

 

12. All of the following are true about stereotypes except
    1. they lead to an appreciation of individual differences.
    2. they are based on certain characteristics or traits.
    3. they ignore the specific person.
    4. they are generalizations
    5. they ignore the current situation.

 

 

ANS: A                     PTS: 1                       REF: p. 37

NAT: AACSB: Diversity | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Understanding

 

13. Stereotypes can best be defined as
    1. favoring people similar to you.
    2. focusing on differences among people.
    3. grouping people into different categories.
    4. judgments about others that reinforce beliefs about superiority and inferiority.
    5. making generalizations about groups of people.

 

 

ANS: E                      PTS: 1                       REF: p. 37

NAT: AACSB: Diversity | AACSB: Individual Dynamics             TYP: Knowledge

 

14. Which of the following is not an example of a primary dimension of diversity?
    1. age
    2. gender
    3. sexual orientation
    4. mental abilities
    5. all of the above are primary dimensions of diversity

 

 

ANS: E                      PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: Individual Dynamics             TYP: Knowledge

 

15. Which of the following is an example of a primary dimension of diversity?
    1. ethnicity
    2. physical abilities
    3. parental status
    4. a and b
    5. a, b, and c

 

 

ANS: D                     PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: Individual Dynamics             TYP: Knowledge

 

16. Which of the following is a secondary dimension of diversity?
    1. education
    2. where a person lives
    3. work experience
    4. a and c
    5. a, b, and c

 

 

ANS: E                      PTS: 1                       REF: p. 39

NAT: AACSB: Analytic | AACSB: Diversity | AACSB: HRM      TYP: Knowledge

 

17. Which of the following groups of people is not increasing as a percentage of the total workforce in the United States? a. Hispanics
    1. Blacks
    2. Women
    3. White males
    4. Asians

 

 

ANS: D                     PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: HRM                                    TYP: Knowledge

 

18. Which of the following workforce groups will increase the least in size between 2000 and 2010? a. 12 to 16 year olds
    1. 16 to 24 year olds
    2. 25 to 54 year olds
    3. 50 to 54 year olds
    4. 55 and older

 

 

ANS: C                      PTS: 1                       REF: p. 39

NAT: AACSB: Analytic | AACSB: Diversity | AACSB: HRM      TYP: Knowledge

 

19. When the European Union opened borders in 1992, goods and services moved freely among the member countries. What other change resulted from opening the borders? a. Managers practiced a more open leadership style.
    1. Non-European Union members shut their borders.
    2. Workers demanded higher wages.
    3. Workers moved across national borders.
    4. Stricter trade restrictions were imposed.

 

 

ANS: D                     PTS: 1                       REF: p. 41

NAT: AACSB: Diversity | AACSB: Environmental Influences      TYP: Knowledge

 

20. Assimilation occurs when
    1. stereotypes are exposed.
    2. a minority group is forced to learn the ways of the majority group.
    3. differences among cultural groups are celebrated.
    4. diversity is truly valued.
    5. prejudice is eradicated.

 

 

ANS: B                      PTS: 1                       REF: p. 42

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Understanding

 

21. Which of the following is not true about dominant groups?
    1. They tend to eat lunch together.
    2. They tend to be self-perpetuating.
    3. They are keenly aware of opinions from the “outside.”
    4. Informal discussions tend to exclude minority group members.
    5. They tend to avoid people who are different.

 

 

ANS: C                      PTS: 1                       REF: p. 42

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Knowledge

 

22. Not paying attention to diversity can be costly to organizations in all of the following ways except it can decrease turnover.
    1. it can lower productivity.
    2. it can block minority involvement in decision making.
    3. it can increase tensions among workers.
    4. it can increase lawsuits.

 

 

ANS: A                     PTS: 1                       REF: p. 43

NAT: AACSB: Diversity | AACSB: HRM                                    TYP: Understanding

 

23. Which of the following is not a benefit of valuing diversity?
    1. Access to more perspectives on a problem
    2. Fresh perspectives
    3. Less interpersonal conflict
    4. Greater homogeneity
    5. Richer ideas

 

 

ANS: D                     PTS: 1                       REF: p. 43

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Knowledge

 

24. A form of business that combines and transforms resources into tangible outcomes that are then sold to others is called a(n)
    1. manufacturing organization.
    2. biotechnology firm.
    3. information technology firm.
    4. service organization.
    5. hybrid organization.

 

 

ANS: A                     PTS: 1                       REF: p. 44

NAT: AACSB: Operations Management | AACSB: Creation of Value

TYP: Knowledge

 

25. A form of business that transforms resources into an intangible output and creates time or place utility for its customers is called a(n)
    1. manufacturing organization.
    2. biotechnology firm.
    3. information technology firm.
    4. service organization.
    5. hybrid organization.

 

 

ANS: D                     PTS: 1                       REF: p. 44

NAT: AACSB: Analytic | AACSB: Creation of Value                   TYP: Knowledge

 

26. AMD makes computer chips that are installed in various computers. AMD is an example of a(n)
    1. manufacturing organization.
    2. biotechnology firm.
    3. information technology firm.
    4. service organization.
    5. hybrid organization.

 

 

ANS: A                     PTS: 1                       REF: p. 44

NAT: AACSB: Analytic | AACSB: Creation of Value                   TYP: Understanding

 

27. Which of the following statements about technology is not true?
    1. Technology is a major driver for organizational change.
    2. It has widespread effects on the behavior of people in the organization.
    3. Technology provides a competitive advantage
    4. It combines and transforms resources into outcomes.
    5. It is causing shift toward a service-based economy.

 

 

ANS: D                     PTS: 1                       REF: p. 44

NAT: AACSB: Analytic | AACSB: Technology | AACSB: Creation of Value

TYP: Understanding

 

28. Car makers design and produce new model cars much more quickly now than they did in the past. This is an example of
    1. effective leadership.
    2. decreased cycle time.
    3. increased employee morale.
    4. valued diversity.
    5. low-cost production.

 

 

ANS: B                      PTS: 1                       REF: p. 45

NAT: AACSB: Information Technology | AACSB: Creation of Value

TYP: Knowledge

 

29. An ice cream maker requires approximately two months from the time a new flavor is decided on in the corporate board room to the time it is produced and available to consumers in stores. This time is called
    1. competitive advantage time.
    2. information technology time.
    3. cycle time.
    4. production time.
    5. made-to-order time.

 

 

ANS: C                      PTS: 1                       REF: p. 45

NAT: AACSB: Analytic | AACSB: Creation of Value | AACSB: Operations Management

TYP: Understanding

 

30. Which of the following statements about information technology is not true?
    1. It has resulted in leaner organizations.
    2. Provides more flexible operations.
    3. Technology increases the financial position of a company.
    4. Technology has increased collaboration among employees.
    5. Technology has improved management processes.

 

 

ANS: C                      PTS: 1                       REF: p. 46

NAT: AACSB: Use of Information Technology | AACSB: Creation of Value | AACSB: Information Technology   TYP: Knowledge

 

31. The downside of information technology includes all of the following except
    1. It has resulted in less personal communication.
    2. Has increased a sense of urgency vis-à-vis decision-making.
    3. Increased ethical decision-making for managers.
    4. It has resulted in less down time for managers.
    5. All of the above are reasons.

 

 

ANS: C                      PTS: 1                       REF: p. 46

NAT: AACSB: Technology | AACSB: Information Technology | AACSB: Individual Dynamics

TYP: Knowledge

 

32. In a blatant display of unethical conduct, Enron’s
    1. managers forced employees to work in deplorable conditions.
    2. employees stole information from the company and sold it to competitors.
    3. administrators withheld products and services from needed customers.
    4. public reports concealed many of its partnerships and obligations with other companies.
    5. “blew the whistle” on competitors who were engaged in equally unethical practices.

 

 

ANS: D                     PTS: 1                       REF: p. 46

NAT: AACSB: Ethical | AACSB: Individual Dynamics                TYP: Knowledge

 

33. Arthur Andersen’s (the accounting firm that audited Enron’s finances) failure to catch problems at

Enron

1. may have been motivated by future high-revenue consulting services with Enron.
2. was due to Andersen’s inability to hire good talent.
3. probably was based on restrictive accounting regulations that limit access to information.
4. was proven to be part of a larger white-collar crime ring.
5. stemmed from Andersen’s interest in Enron’s failure.

 

 

ANS: A                     PTS: 1                       REF: p. 46

NAT: AACSB: Ethical | AACSB: Individual Dynamics | AACSB: Group Dynamics

TYP: Knowledge

 

34. The duty of the board of directors of a public corporation is to
    1. audit the company’s financial statements for accuracy.
    2. recommend new products and services.
    3. control the day-to-day operations of the firm.
    4. protect the company from harsh overseas competition and lower labor costs.
    5. ensure decisions by senior managers are in the best interests of the shareholders.

 

 

ANS: E                      PTS: 1                       REF: p. 47

NAT: AACSB: Analytic | AACSB: Strategy                                 TYP: Knowledge

 

35. The oversight of a public corporation by its board of directors is called ____. a. board isolation
    1. deontological overview
    2. corporate governance
    3. pricing policy
    4. profit maximization

 

 

ANS: C                      PTS: 1                       REF: p. 47

NAT: AACSB: Analytic | AACSB: Ethical | AACSB: Strategy      TYP: Understanding

 

36. One way to address privacy concerns on the Internet is to
    1. keep all information collected confidential.
    2. publicly display any information collected by the company.
    3. post a privacy policy on the company’s web site.
    4. avoid collecting any private information.
    5. share collected information only with respectable firms.

 

 

ANS: C                      PTS: 1                       REF: p. 48

NAT: AACSB: Technology | AACSB: Information Technology

TYP: Knowledge

 

37. Which of the following statements about knowledge workers is not true?
    1. Knowledge workers include computer scientists.
    2. Knowledge workers require highly specialized training.
    3. Compensation is specially tailored for the knowledge worker.
    4. Knowledge workers do not add value to the organization.
    5. Knowledge workers are video game developers.

 

 

ANS: D                     PTS: 1                       REF: p. 48-49

NAT: AACSB: Analytic | AACSB: Reflective Thinking | AACSB: HRM |

TYP: Understanding

 

38. A knowledge worker’s career path may run parallel to a management career path. The benefit of this path for the worker is
    1. the chance to take on substantial management responsibilities.
    2. more frequent training in management tasks.
    3. less highly specialized training.
    4. compensation that is equivalent to that available to management.
    5. freedom from specialized technical work.

 

 

ANS: D                     PTS: 1                       REF: p. 49

NAT: AACSB: Analytic | AACSB: Reflective Thinking | AACSB: HRM

TYP: Knowledge

 

39. In the past, Karson Photography Studios directly hired and managed its own custodial staff. Now, Karson contracts this work to a cleaning company. This is an example of a. corporate governance.

 

 

ANS: C                      PTS: 1                       REF: p. 49

NAT: AACSB: Analytic | AACSB: Strategy                                 TYP: Understanding

 

40. Examples of organizational functions to outsource include all of the following except
    1. The organization’s payroll function.
    2. The organization’s human resource training program.
    3. The organization’s corporate governance program.
    4. The organization’s facility maintenance program.
    5. The organization’s food service facility.

 

 

ANS: C                      PTS: 1                       REF: p. 49

NAT: AACSB: Analytic | AACSB: HRM | AACSB: Strategy        TYP: Knowledge

 

TRUE/FALSE

 

41. In 2008, the volume of international trade in current dollars was less than 50 times greater than the amount in 1960.

 

ANS: F                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Environmental Influences       TYP: Knowledge

 

42. More and more firms are moving back to domestic markets to control costs, especially to reduce labor costs.

 

ANS: F                      PTS: 1                       REF: p. 32

NAT: AACSB: Analytic | AACSB: Strategy | AACSB: HRM        TYP: Knowledge

 

43. The environment of business is expected to continue changing in the future.

 

               ANS: T                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Environmental Influences       TYP: Knowledge

 

44. Some of the growth of international business can be attributed to communication and transportation advances.

 

ANS: T                      PTS: 1                       REF: p. 31

NAT: AACSB: Analytic | AACSB: Strategy                                 TYP: Knowledge

 

45. Cultural diversity can enhance synergy in an organization.

 

ANS: T                      PTS: 1                       REF: p. 34

NAT: AACSB: Diversity | AACSB: Environmental Influences      TYP: Knowledge

 

46. Culture helps a group understand which actions are acceptable and which are unacceptable.

 

ANS: T                      PTS: 1                       REF: p. 32

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics TYP: Knowledge

 

47. An employee in a collectivistic culture would be much more concerned about her work than about her relationships with others.

 

ANS: F                      PTS: 1                       REF: p. 35

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Knowledge

 

48. In Mexico, people prefer to be in a situation in which authority is not emphasized and lines of authority are overlooked or deemphasized.

 

ANS: F                      PTS: 1                       REF: p. 35

NAT: AACSB: Diversity | AACSB: Individual Dynamics             TYP: Knowledge

 

49. A culture low in masculinity is not aggressive and is not concerned with the acquisition of money and other possessions.

 

ANS: T                      PTS: 1                       REF: p. 35-36

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Knowledge

 

50. Workforce diversity refers to the important similarities and differences among the employees of the organization.

 

ANS: T                      PTS: 1                       REF: p. 36

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics TYP: Knowledge

 

51. A prejudice is a generalization about a person or a group of persons based on certain characteristics or traits.

ANS: F                      PTS: 1                       REF: p. 37

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Understanding

 

52. Differences in age, gender, ethnicity, and physical ability are all considered to be components of diversity.

 

ANS: T                      PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Understanding

 

53. The white male segment of the workforce is expected to decrease as a proportion of the workforce in the next decade.

 

ANS: T                      PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Knowledge

 

54. Females are expected to increase their percentage in the workforce to more than 62 percent by the year 2010.

 

ANS: T                      PTS: 1                       REF: p. 39

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Understanding

 

55. Workforce diversity is mostly occurring in the United States, rather than in other countries around the world.

 

               ANS: F                      PTS: 1                       REF: p. 41

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Knowledge

 

56. Today, the workplace in the United States might be regarded as more of a “tossed salad” made up of a mosaic of different flavors, colors, and textures.

 

ANS: T                      PTS: 1                       REF: p. 41-42

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Understanding

 

57. Assimilating diverse workers into the culture and values of the dominant group can usually be facilitated very easily.

 

ANS: F                      PTS: 1                       REF: p. 42

NAT: AACSB: Diversity | AACSB: Group Dynamics | AACSB: Individual Dynamics

TYP: Understanding

 

58. Those who work in dominant groups tend to be less aware of the problems that homogeneity can cause.

 

               ANS: T                      PTS: 1                       REF: p. 43

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Understanding

 

59. Valuing diversity means appreciating the varying ideas and perspectives that are provided by a heterogeneous workforce.

 

               ANS: T                      PTS: 1                       REF: p. 43

NAT: AACSB: Diversity | AACSB: Group Dynamics                   TYP: Understanding

 

60. Four Seasons Hotels is an example of a manufacturing organization.

 

               ANS: F                      PTS: 1                       REF: p. 44

NAT: AACSB: Analytic | AACSB: Creation of Value                   TYP: Understanding

 

61. The most effective service organizations produce intangible outcomes for their customers.

 

ANS: T                      PTS: 1                       REF: p. 44

NAT: AACSB: Analytic | AACSB: Creation of Value                   TYP: Knowledge

 

62. Businesses have found that they can be more competitive if they can greatly decrease cycle times.

 

ANS: T                      PTS: 1                       REF: p. 45

NAT: AACSB: Analytic | AACSB: Creation of Value                   TYP: Knowledge

 

63. Advances in information technology have resulted in communication at work that is less personal in nature.

 

ANS: T                      PTS: 1                       REF: p. 46

NAT: AACSB: Communication | AACSB: Technology | AACSB: Information Technology

TYP: Knowledge

 

64. Board independence is an issue when a board of directors includes members from related or partner firms.

 

ANS: T                      PTS: 1                       REF: p. 47

NAT: AACSB: Analytic | AACSB: Ethical                                   TYP: Understanding

 

65. Knowledge workers include scientists, engineers, product designers, and video game developers.

 

ANS: T                      PTS: 1                       REF: p. 48

NAT: AACSB: Analytic | AACSB: HRM                                     TYP: Knowledge

 

COMPLETION