Management, 14e (Robbins/Coulter)
Chapter 3 Managing the External Environment and the Organization’s Culture
1) Which one of the following represents the two views of managerial impact on the success or
failure of the organization?
A) omnipotent and symbolic
B) omnipotent and reflective
C) symbolic and interactive
D) reflective and interactive
2) The dominant view in management theory suggests that ________.
A) an organization’s success or failure is due to external forces outside managers’ control
B) managers’ roles are increasingly becoming peripheral and staff manage their own areas of
expertise
C) managers are directly responsible for an organization’s success or failure
D) managers cannot significantly affect an organization’s performance because they are
constrained by the abilities of their employees
3) Wendell notices that the company’s top executives share a belief that managers are directly
responsible for the organization’s success or failure. This belief reflects a(n) ________ view of
management.
A) traditional
B) omnipotent
C) omniscient
D) symbolic
4) Wendell interviews many middle-level managers and discovers that these individuals believe
that external factors constrain managers’ influence over outcomes. The mid-level managers have
a(n) ________ view of management.
A) traditional
B) omnipotent
C) omniscient
D) symbolic
5) Calvin’s goals for the coming year include specific targets for increasing market share and
quantity of units shipped. If he succeeds, he will be handsomely rewarded. If he fails, he is likely
to be replaced. Judging from this, it would appear that Calvin’s employer subscribes to the
________.
A) symbolic view of management
B) omnipotent view of management
C) impotent view of management
D) omniscient view of management
6) The ________ view of management is consistent with the stereotypical picture of the take-
charge business executive who can overcome any obstacle in carrying out the organization’s
objectives.
A) omnipotent
B) impotent
C) omniscient
D) symbolic
7) The soccer league in England is notorious for the number of team managers fired over the
course of a single season, which stands at no fewer than eight managers on average, owing to
poor team form and consequently, poor results. It is evident from this information that the league
endorses a(n) ________ view of management.
A) symbolic
B) omnipotent
C) impotent
D) omniscient
8) Which of the following most accurately reflects the symbolic view of management?
A) Managers are directly responsible for an organization’s success or failure.
B) Managers have to ensure that every obstacle is overcome on the way to achieving the
organization’s goals.
C) External forces are responsible for an organization’s success or failure.
D) Employees are directly responsible for an organization’s success or failure.
9) Elmo Research & Development has been going through a rough patch lately. Turnover has
been high and employee morale is at an all-time low. Though employees and competitors hold
management responsible for the decline, the CEO does not let the managers go or change the
management style. Which of the following could explain this attitude?
A) The CEO holds the omnipotent view of management, which asserts that external factors have
a significant effect on performance outcomes.
B) Because the organization has a “take-charge” management style, the employees are
responsible for organizational policies.
C) The CEO is unresponsive to the criticisms from stakeholders.
D) The CEO holds the view that managers have only a limited role in organization success or
failure.
10) The symbolic view of management is based upon the belief that managers symbolize
________.
A) control and influence by developing plans and making decisions
B) every aspect of an organization’s performance, from the top level to the operational level
C) the fluctuating fortunes of the organization as they alternate between profits and losses
D) the take-charge executive who overcomes any obstacle to see that the organization achieves
its goals
11) According to the symbolic view, managers have a(n) ________ effect on substantive
organizational outcomes.
A) limited
B) extensive
C) influential
D) subtle
12) Internal constraints that influence managers’ decisions and actions come from the ________.
A) attitudes of customers
B) culture of the organization
C) prevailing political conditions
D) fluctuations in the stock market
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13) The view of managers as omnipotent is consistent with the stereotypical picture of the take-
charge business executive who can overcome any obstacle in carrying out the organization’s
objectives.
14) In the symbolic view of management, managers are seen as directly responsible for an
organization’s success or failure.
15) The symbolic view of management impact is useful in explaining the high turnover among
sports coaches, who can be considered the “managers” of their teams.
16) In a short essay, differentiate between the symbolic view and the omnipotent view of
management. Include specific examples of each view to support your answer.
17) If mortgage interest rates increase, this would be an example of changing ________
conditions in a firm’s external environment.
A) economic
B) political
C) sociocultural
D) financial
18) Which of the following factors is an economic component of an organization’s external
environment?
A) The employees of the organization have, on average, 2.3 children.
B) The average customer of a firm has a high school education.
C) The firm’s customers’ disposable income falls in the range of $25,000-$40,000.
D) Most of the firm’s customers live in the Midwest.
19) The ________ component of an organization’s external environment is concerned with trends
in population characteristics such as age, race, gender, education level, geographic location,
income, and family composition.
A) economic
B) political
C) demographic
D) sociocultural
20) Which of the following factors is a demographic component of an organization’s external
environment?
A) lifestyles and behavior
B) political stability
C) geographic location
D) stock market fluctuations
21) Gerber makes and sells baby products. A shift in the birth rate would represent a change in
the ________ component of this firm’s external environment.
A) psychographic
B) demographic
C) political
D) cultural
22) Assume the global economy rebounds rapidly from the Great Recession. What constraint is
this likely to have on decisions managers make?
A) The number of qualified candidates available for hire will become smaller.
B) Managers will be asked to eliminate positions to cut labor costs.
C) The hourly compensation average will have to fall; managers will be asked to offer less to job
candidates.
D) Positions will be easier to fill as college graduates settle for lower paying jobs.
23) The Metropolis News has experienced a decline in the number of subscriptions to its printed
newspaper over the last five years. It seems people prefer news feeds sent to their smartphones
rather than a printed paper delivered to their homes. Which component in the external
environment does this change represent?
A) economic
B) political
C) demographic
D) sociocultural
24) Thanks to iTunes and similar websites, sales of compact discs have declined severely,
forcing entertainers to seek alternative revenue streams. This represents a change in the
________ component of the external environment.
A) psychological
B) behavioral
C) sociocultural
D) economic
25) Which of the following groups includes individuals who were born between the years 1978-
1994?
A) the Gen X-ers
B) the Gen Y-ers
C) the Baby Boomers
D) Pre-Millennials
26) Which of the following factors is a sociocultural component of an organization’s external
environment?
A) Most of the firm’s customers have at least one year of college.
B) The government of the country holds elections whenever confidence in the current regime
falters.
C) Over time, society has become more accepting of alternative lifestyles.
D) The average number of hours worked per year is increasing.
27) Suppose the government of Abolonia imposed a national sales tax on its citizens that reduced
their disposable income. Which component of the external environment would this affect?
A) global
B) cultural
C) demographic
D) economic
28) The citizens of Abolonia believe no top executive should ever earn more than 40 times the
average wage of the company’s employees. This is an example of ________.
A) how changes in the demographics limit the discretion managers have
B) how societal attitudes in the economic context create constraints on the decisions managers
make
C) how government regulation affects the salaries executives can earn
D) a trend in the sociocultural environment that limits disposable income in the economic
environment
29) The generational cohort that has had the most influence on the American economy is
________.
A) the Millennials born between 1994 and 2010
B) the Baby Boomers born between 1946 and 1964
C) Generation X born between 1964 and 1978
D) Generation Y born between 1978 and 1994
30) ________ are called the iGeneration, because they’ve grown up with technology that
customizes everything to the individual.
A) Post-Millennials
B) Pre-Millennials
C) Baby Boomers
D) Gen Y-ers
31) Which of the following, if true, represents a demographic change that will affect decisions
future managers make?
A) The unemployment rate is likely to continue to fall.
B) The percentage of Hispanics in the candidate pool will increase.
C) More job candidates are likely to have tattoos and body piercings.
D) More jobs will be performed by robots.
32) Faced with incomplete information about the future national economic conditions, many
employers have eschewed the tradition of hiring full-time, permanent employees in favor of
________.
A) hiring only high school graduates willing to work for lower wages
B) a reduced work week of no more than 30 hours per week per employee
C) off-shoring as many jobs as possible to reduce costs associated with government-mandated
programs
D) a flexible work arrangement that includes freelancers and temporary workers
33) If the components of an organization’s environment change frequently, the organization is
operating in a ________ environment.
A) stable
B) simple
C) dynamic
D) complex
34) Which of the following are the two dimensions of environmental uncertainty?
A) degree of change and degree of complexity
B) degree of change and degree of volume
C) degree of complexity and degree of impact
D) degree of impact and degree of timing
35) D&B Designs has been in the landscape design business in Pleasantville for the past twenty
years. As the “first mover” in the market, the company has built a strong market share over the
years and is the best-known firm in the area. The company strength increased steadily, and now
stands at fifty employees. Which of the following, if true, would make the company’s business
environment more uncertain?
A) Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners.
B) Demand for landscaping services dips every autumn and winter.
C) A long-time competitor quit the landscape design business last year.
D) Zoning laws in the area change as each new city council comes into power.
36) Which of the following describes a dynamic environment?
A) Sales vary with the seasons.
B) Production methods change about once every 5 years.
C) Competitors move into and out of the industry frequently.
D) Product demand increases every year on a steady upward trend.
37) If the components in an organization’s environment exhibit minimal change, such an
environment is said to be ________.
A) volatile
B) dynamic
C) stable
D) simple
38) Home prices in the area in which your real estate office operates have increased only
gradually for the past several years. However, you have noticed that demand for housing in the
area usually spikes in summer. Which of the following best describes your business
environment?
A) stable and simple
B) dynamic and simple
C) stable and complex
D) dynamic and complex
39) Moreno’s Pub Burgers has enjoyed its status as the Numero Uno hamburger restaurant in
Pleasantville for the past ten years. Its only competitor is a national fast food chain preferred by
children rather than adults. Which of the following, if true, would make Moreno’s business
environment more uncertain?
A) The fast food chain closes.
B) A new employer moves into the area, bringing hundreds of jobs and more families.
C) Moreno’s buys the lot next door to expand its parking.
D) Because of the growth of Pleasantville’s population, more hamburger chains build facilities in
Pleasantville.
40) Which one of the following represents the highest level of environmental uncertainty?
A) Mario’s restaurant competes against 325 others in the city; the city’s ethnic mix is constantly
changing.
B) Maria’s is still the only restaurant in a small town. She took it over from her mother and still
uses the same equipment.
C) Millie’s customers expect to see new menu items regularly and want Millie to install Wi-Fi.
D) Marty has to deal with the local council, the health department, the franchisor, the zoning
commission-the list keeps growing. He is grateful there are no new competitors moving in.
41) Which one of the following represents the lowest level of environmental uncertainty?
A) Mario’s restaurant competes against 325 others in the city; the city’s ethnic mix is constantly
changing.
B) Maria’s is still the only restaurant in a small town. She took it over from her mother and still
uses the same equipment.
C) Millie’s customers expect to see new menu items regularly and want Millie to install Wi-Fi.
D) Marty has to deal with the local council, the health department, the franchisor, the zoning
commission-the list keeps growing. He is grateful there are no new competitors moving in.
42) In which one of the following environments do managers in an organization have the greatest
influence on organizational outcomes?
A) stable and complex environments
B) dynamic and simple environments
C) stable and simple environments
D) dynamic and complex environments
43) Which of the following environments is characterized by the highest level of environmental
uncertainty?
A) a stable and complex environment
B) a dynamic and simple environment
C) a stable and simple environment
D) a dynamic and complex environment
44) The term ________ is used to collectively refer to any constituencies in an organization’s
environment that are affected by its decisions and actions.
A) competitors
B) shareholders
C) unions
D) stakeholders
45) Which one of the following represents an important constituent of a small-town bake shop
selling desserts and coffee?
A) wheat farmers in Kansas
B) the state department of revenue
C) the bakery’s regular customers
D) the local campus of the community college
46) People’s beliefs about conditions of economic inequality illustrate how societal attitudes can
constrain managers’ decisions and actions.
47) A dynamic environment is characterized by the absence of new competitors, few
technological breakthroughs by current competitors, and little activity by pressure groups to
influence the organization.
48) Environmental uncertainty refers to the number of components in an organization’s
environment and the extent of the knowledge that the organization has about those components.
49) A dynamic and simple environment is characterized by the greatest level of environmental
uncertainty.
50) An organization’s competitors and employees are considered to be stakeholders who are
affected by the organization’s decisions and actions.
51) Managers have greater influence over organizational performance when relationships with
the stakeholders are obvious and secure.
52) Managers of high-performing companies tend to consider the interests of the most profitable
stakeholder groups as they make decisions.
53) Assume that medical science is able to extend the life expectancy in the United States by 20
years, on average. Give examples of how this will affect the decisions managers make. Respond
in terms of the economic, demographic, political/legal, and sociocultural contexts.
54) Define environmental uncertainty. Briefly discuss the dimensions of environmental
uncertainty.
55) If you were talking to Todd, an average person, and asked him what the term culture meant,
he would reply that it is ________.
A) the formal rules of an organization
B) the nature of products/services offered by the company
C) the shared values and practices of the firm
D) a set of operational procedures for the company
56) ________ has been described as the shared values, principles, traditions, and ways of doing
things that influence the way organization members act.
A) Corporate hierarchy
B) Business configuration
C) Organization culture
D) Industrial psychology
57) A person desiring to understand the culture of an organization would examine ________.
A) its formal rules
B) the nature of products/services offered by the company
C) the shared values and practices of the firm
D) a set of operational procedures for the company