Chapter 02: The Environment: Culture, Ethics, and Social Responsibility
Test Bank
MULTIPLE CHOICE
1. The ___________ include(s) the factors that affect the organization’s performance from within
its boundaries.
a.
internal environment
b.
external environment
c.
organizational culture
d.
external factors
2. The five components of the internal environment include management and culture, mission,
system processes, structure, and ________.
a.
resources
b.
value
c.
quality
d.
competition
3. Kim interviewed prospective new employees for ten new jobs in her company. Which internal
environmental factor was Kim utilizing?
a.
Management and culture
b.
Mission
c.
Resources
d.
Systems process
4. What does one call the organization’s purpose or reason for being?
a.
Culture
b.
Mission
c.
Environment
d.
Stakeholders
5. ________ are people whose interests are affected by organizational behavior.
a.
Managers
b.
Employees
c.
Stakeholders
d.
Customers
6. Which of the following answers the question, “Who we are as an organization?”
a.
Organizational culture
b.
Mission statement
c.
Internal environment
d.
Organizational structure
7. Kevin has recently graduated from college and is applying for a new job. What might Kevin
look at if he wants to find out more information about the company?
a.
Mission statement
b.
Organization structure
c.
Management team
d.
Stakeholders in the company
8. An example of a company’s mission would be which of the following?
a.
Internet systems and telecommunications
b.
We focus on bringing the best customer service to anyone in the world.
c.
Customer product orders that are filled and shipped to the customer
d.
Have a U.S. headquarters and subsidiaries in other countries
9. Which of the following consists of the values, beliefs, and assumptions about appropriate
behavior that members of an organization share?
a.
Organizational culture
b.
Management culture
c.
Mission statement
d.
Internal environment
10. Robert works for Nordstrom and loves coming to his job. He attributes the love for his job to the
values and beliefs that the company shares with its employees. Robert’s affinity for his job is
most likely due to the company’s _______
a.
organizational culture
b.
organizational structure
c.
mission statement
d.
management team
11. Peter is starting his own delivery company called “Ding Dong Delivery.” He is currently
starting the company for his home town and the surrounding area (20-mile radius). Peter
currently has $500,000 in capital, an office space with Internet and telephones, and 10 delivery
trucks, but no employees. What resource is Peter missing that is crucial for his business to get
running?
a.
Physical
b.
Human
c.
Informational
d.
Financial
12. __________ is/are the technology used to transform inputs into outputs.
a.
Physical resources
b.
Management tools
c.
System process
d.
Human resources
13. Which of the following provides a means of control to ensure that the inputs and transformation
process are producing the desired results?
a.
Transformation
b.
Outputs
c.
Inputs
d.
Feedback
14. McDonald’s transformation of bread and hamburger meat into one of the best-selling products
in the world is an example of utilizing which internal environmental factor?
a.
Management and culture
b.
Mission
c.
Resources
d.
Systems process
15. Which of the following is not part of the systems process?
a.
Inputs
b.
Outputs
c.
Feedback
d.
Structure
16. Jim is the logistics manager and a large portion of his position requires him to utilize
computer-driven data to keep track of orders and inventory. Which part of the systems process
is Jim most likely exhibiting?
a.
Transformation
b.
Feedback
c.
Inputs
d.
Outputs
17. Hachiro noticed that sales of his bakery’s normally best-selling bread decreased after he
switched to a different brand of flour. This is an example of a problem at which part of the
systems process?
a.
Transformation
b.
Feedback
c.
Inputs
d.
Outputs
18. Adilah modified the assembly line at her plant, which produces toy dinosaur figures. By
painting the parts before they are assembled, she was able to increase the line’s daily production
by 5%. This was a change to which part of the systems process?
a.
Transformation
b.
Feedback
c.
Inputs
d.
Outputs
19. Products and services offered to customers are ________.
a.
resources
b.
physical inputs
c.
outputs
d.
internal factors
20. ________ is the process that involves everyone in an organization focusing on the customer to
continually improve product value.
a.
Quality
b.
Customer value
c.
Systems process
d.
Total quality management (TQM)
21. The Japanese term for continuous improvement is ________.
a.
Keisatsu
b.
Kaizen
c.
Kiken
d.
Kaishain
22. What are the two primary principles of Total Quality Management (TQM)?
a.
Focusing on delivering customer value and continually improving the system and its
processes
b.
Focusing on delivering customer value and continually developing new products
c.
Focusing on controlling costs and continually improving the system and its
processes
d.
Focusing on controlling costs and continually developing new products
23. _____ is what motivates us to buy products.
a.
Quality
b.
Envy
c.
Value
d.
Wealth
24. _________ is the perceived benefit of a product, used by customers to determine whether to buy
the product.
a.
Customer quality
b.
Customer wealth
c.
Customer value
d.
Customer thought process
25. _____ can be considered founders or others who have made outstanding contribution to their
organizations.
a.
Heroes
b.
Slogans
c.
Stories
d.
CEOs
26. What are the six artifacts of organizational culture?
a.
Stories, heroes, slogans, rituals, ceremonies, and behavior
b.
Symbols, customers, competition, ceremonies, heroes, and stories
c.
Stories, value, symbols, ceremonies, money, and heroes
d.
Heroes, slogans, rituals, ceremonies, symbols, and stories
27. Keeshawn has hired a local advertising firm to create a new logo for his restaurant using the
restaurant name. The new logo will be a _________ of the restaurant.
a.
slogan
b.
symbol
c.
story
d.
ritual
28. Employees learn organizational culture primarily through ____________.
a.
observing people and events
b.
interacting with their supervisor
c.
orientation training programs
d.
listening to customers’ comments about the organization
29. Which of the following cultural artifacts is critical to Level 2 culture as a way of expressing
organizations’ key values?
a.
Heroes
b.
Rituals
c.
Slogans
d.
Stories
30. ______ includes the observable things that people do and say or the actions employees take.
a.
Assumption
b.
Behavior
c.
Value
d.
Evaluation
31. The Levels of Culture pyramid are comprised of all of the following, except ______________.
a.
values and beliefs
b.
environment
c.
behavior
d.
assumptions
32. How many levels are there in the Levels of Organizational Culture?
a.
One
b.
Two
c.
Three
d.
Four
33. ______ are values and beliefs that are so deeply ingrained they are considered unquestionably
true and taken for granted.
a.
Laws
b.
Imperatives
c.
Instincts
d.
Assumptions
34. Jan, an employee of a distribution company, never speaks to anyone in her office. From when
she arrives to when she leaves, no one around her talks during the work day. Though she has
never been told she cannot mingle with her coworkers, Jan feels as though she is not allowed to
do so, since no one ever does. Jan made her decision based on the ______________ of her
coworkers.
a.
values
b.
behaviors
c.
beliefs
d.
assumptions
35. Organizations with many employees who do not behave as expected have _____ cultures.
a.
chaotic
b.
strong
c.
learning
d.
weak
36. In a ______ culture, the group peer pressures nonconformists to behave as expected.
a.
strong
b.
weak
c.
mediocre
d.
changing
37. Organizations with strong cultures do all of the following, except ____________.
a.
have employees who subconsciously know the shared assumptions
b.
consciously know the values and beliefs
c.
agree with the shared assumptions, values, and beliefs
d.
avoid stagnation and readily undergo change when needed
38. The primary benefits of a strong culture include all of the following, except ____________.
a.
unity of direction
b.
increased acceptance of nonconformists
c.
easier-to-reach consensus
d.
easier communication
39. ________ articulate a vision for an organization and reinforce the culture through slogans,
symbols, and ceremonies.
a.
Mid-level managers
b.
Symbolic leaders
c.
Salespeople
d.
Consumers
40. Symbolic leaders do all of the following, except _____________.
a.
manage, change, and merge cultures
b.
articulate a vision for an organization
c.
reinforce the culture through slogans
d.
impose cultural values
41. A ________ has a culture that values sharing knowledge so as to adapt to the changing
environment and continuously improve.
a.
symbolic organization
b.
learning organization
c.
changing organization
d.
values organization
42. Which of the following is not critical to continuous improvements in learning organizations?
a.
Integrating opportunities
b.
Solving problems
c.
Identifying opportunities
d.
Exploiting opportunities
43. The _________ includes the factors outside its boundaries that affect a business’s performance.
a.
business environment
b.
internal environment
c.
external environment
d.
competitive environment
44. Julia runs a sporting goods business that supplies equipment for the schools in her area. She is
forced to delay her shipment of equipment this week because some of the tennis balls were
shipped late from the factory. What major external environmental factor is to blame?
a.
Competition
b.
Suppliers
c.
Labor force
d.
Technology
45. Renata’s video rental store has seen a drastic decline in business over the past five years. What
major external environmental factor is to blame?
a.
Shareholders
b.
Suppliers
c.
Labor force
d.
Technology
46. Ron Johnson, the former CEO of JC Penney, was fired after 17 months on the job when the
many changes he made throughout the company resulted in a drastic drop in profits. What major
external environmental factor pressured the board of directors to let him go?
a.
Shareholders
b.
Suppliers
c.
Labor force
d.
Society
47. Which of these is not a general external environmental factor?
a.
Customers
b.
Society
c.
Technology
d.
Governments
48. ______ is searching for important events or issues that might affect the firm.
a.
Opportunity scanning
b.
Competitive scanning
c.
Strategic scanning
d.
Environmental scanning
49. Which managers make changes only when forced to by external factors?
a.
Proactive managers
b.
Reactive managers
c.
Responsive managers
d.
Interactive managers
50. ____________ try to adapt to the environment by predicting and preparing for change before
they are required to do so.
a.
Proactive managers
b.
Reactive managers
c.
Responsive managers
d.
Interactive managers
51. ____________ design a desirable future and invent ways of bringing it about.
a.
Proactive managers
b.
Reactive managers
c.
Responsive managers
d.
Interactive managers
52. Business environments generally change at a(n) ____ pace.
a.
steady
b.
slow
c.
fast
d.
irregular
53. The ____________ Act was passed in 2002 to tighten laws affecting business ethics.
a.
Sherman Anti-Trust
b.
Racketeer Influenced and Corrupt Organizations
c.
Sarbanes-Oxley
d.
Taft Hartley
54. The standards of right and wrong that influence behavior are ____________.
a.
morals
b.
laws
c.
values
d.
ethics
55. When we behave unethically, we often justify the behavior to protect our ______ so that we do
not have to feel bad.
a.
personal gain
b.
self-concept
c.
personal ability
d.
self-awareness
56. ______ refers to distinguishing right from wrong and choosing to do the right thing.
a.
Ethical choices
b.
Personality traits
c.
Moral development
d.
The golden rule
57. At which level of moral development do leaders use their position to gain personal advantages?
a.
Preconventional behavior
b.
Conventional behavior
c.
Nonconventional behavior
d.
Postconventional behavior
58. Kala works in a retail store and a manager caught her giving her employee discount to her
friends. When asked why she would do this, she said, “All of the other employees give their
friends discounts, so I did, too.” This is an example of ____________.
a.
preconventional behavior
b.
conventional behavior
c.
nonconventional behavior
d.
postconventional behavior
59. Vijay works in a retail store. He noticed that all of the other employees give their friends their
employee discount, and the manager doesn’t seem to mind. However, when Vijay’s friends
asked him to do the same, he declined. He told them, “I think it’s wrong, even if everyone else is
doing it.” This is an example of ____________.
a.
preconventional behavior
b.
conventional behavior
c.
nonconventional behavior
d.
postconventional behavior
60. All of the following are situations in which unethical behavior is more likely, except
____________.
a.
when employees are supervised in a noncompetitive situation
b.
when performance falls below aspiration levels
c.
when unethical behavior is not punished
d.
when there is no formal ethics policy