Management, 9e (Kinicki)
Chapter 3 The Manager’s Changing Work Environment and Ethical Responsibilities:
Doing the Right Thing
1) Over half of millennials believe that companies operate to meet society’s needs first and their
own agenda second.
2) “Good” boards have balanced gender representation.
3) The employees of a production facility that produce parts for boats are meeting to discuss ways
to control rising costs, which are affecting their bonus (incentive pay). The employees are internal
stakeholders of the factory.
4) The task environment of Eye of the Needle Costume Designers consists of just two groups,
customers and stockholders, who give the employees and management of Eye of the Needle the
daily tasks that the company’s employees will handle.
5) Sunset Resort, a successful 100-year-old hotel and resort, entered into a co-marketing
arrangement with Sleepytime Hotels, a five-star hotel chain. Both companies benefit from the new
relationship. Pleasant is now able to market its facility and services through Sleepytime’s
marketing team, and Sleepytime Hotels now offers access to an upscale resort that it can
recommend to its customers who are looking for a resort experience. Sleepytime Hotels and Sunset
Resort can be considered strategic allies.
6) The general environment, or macroenvironment, includes six forces: economic, technological,
sociocultural, demographic, political-legal, and international.
7) When the Young Minds Child Care Center looks at the recent increase in the number of working
mothers in its neighborhood to determine how many employees to hire, its managers are studying
demographic forces.
8) Despite recent pressure from stockholders to increase profits, Global Oil., a global petroleum
organization, has maintained a practice of consistently acting ethically by being a good global
corporate citizen, taking host-country and global standards into consideration when making
decisions, and obeying the laws of host countries as well as international law. Global Oil. provides
an example of a company acting in a socially responsible way.
9) Ashish comes to work looking exhausted almost every day. He is a new father and the baby is
not sleeping well. James, his manager, asks Ashish to change the number of documents that the
team has processed for the month so that the report shows the quota was met. Ashish agrees
without putting up much of fight. James takes advantage of the fact that Ashish is sleep-deprived
and will be more likely to engage in unethical behavior.
10) After the scandals at WorldCom, Tyco, Adelphia, and Enron, in which company employees
lost millions of dollars and their nest eggs, U.S. companies showed less concern for corporate
governance and more interest in the development of corporate social responsibility.
11) Shane, a sales manager, remarked that typically her employees are resentful when the CEO
announces bonuses because the employees know that the bonuses will not be given out based on
A) an employee’s punctuality.
B) an appreciation for one’s work.
C) fairness.
D) defined criteria.
E) respect for longevity.
12) Alonzo, the president of his high school’s senior class and honor society, has been very busy
and did not study for an important history test. Although Alonzo is very confident, he realizes that
he probably will not do well on the test. He has talked himself into cheating because he believes
that cheating will help him maintain his strong GPA, which he will need to be accepted by a good
college. He tells his friend, “I don’t usually cheat, but I really have to do it.” His friend talks him out
of it. Kohlberg would say that his friend is in which stage or moral development?
A) preconventional
B) conventional
C) moral-rights
D) postconventional
E) utilitarian
13) Julian, the owner of a t-shirt shop, attended an entrepreneurship workshop that discussed the
triple bottom line, which measures an organization’s ________ performance.
A) social, environmental, and financial
B) financial, diversity, and environmental
C) social, synergy, and overall
D) marketing, profit, and efficiency
E) social, sustainability and financial
14) What mechanism is used to provide a systematic assessment of an organization’s performance
in implementing socially responsible programs, often based on predefined goals?
A) sustainability program
B) code of ethics
C) diversity training program
D) financial audit
E) social audit
15) An organization’s internal stakeholders consist of
A) the board of directors, employees, and suppliers.
B) the board of directors, customers, and owners.
C) customers, families of employees, and employees.
D) the board of directors, employees, and owners.
E) competitors, the community, and suppliers.
16) The marketing director for GForce Games, a video game company, has informed his
employees that he feels the company needs to improve its relationship with the distributors of the
company’s products because the distributors are part of the ________ environment for GForce
Games. He believes that a stronger relationship with distributors will lead to more market share,
and higher profits, for both GForce Games and its distributors.
A) strategic
B) external
C) outlying
D) internal
E) task
17) Penelope, a registered nurse, has decided to start a home healthcare service to assist with the
medical, meal preparation, and light housecleaning needs of older adults. To grow her business,
Penelope is focusing her marketing efforts on the older adult population; in these efforts, she is
involved with the ________ environment.
A) task
B) general
C) internal
D) external
E) strategic alliance
18) Roberto was recently promoted, and his salary increase includes retirement investment
options, so he has decided to take part in an ESOP. This means that Roberto
A) will soon be added to the company’s board of directors.
B) will participate in an Externship Supervisors’ Oversight Plan.
C) will be buying or receiving shares of his company’s stock.
D) is now one of the company’s external stakeholders.
E) is in charge of an investment group.
19) Arielle, a successful banker and educator, has decided to retire, but she is very interested in
staying involved with a company “that cares.” So when asked to serve on its board of directors, she
gladly accepted the invitation. As a member of the board, Arielle will be involved with the
organization’s
A) overall strategic goals and approval of major decisions.
B) daily company management and employee supervision.
C) overall strategic goals and global HR management.
D) daily and specific company goals and management of specific departments.
E) oversight of sales and marketing.
20) Soul Soup is a nonprofit organization that brings warm meals to older adults and runs errands
for its clients; the board of Soul Soup is called the
A) board of directors.
B) board of ethics.
C) strategic board.
D) daily oversight committee.
E) board of regents.
21) Tia and Sam are partners who solely own T and S Florist. As owners, they can
A) claim only limited liability.
B) avoid taking any legal responsibility for T and S.
C) sell stock in their company.
D) claim the organization as their legal property.
E) decide not to pay a dividend to their stockholders.
22) To focus on improving company customer service this year, the CEO of a home goods
manufacturing company outlined a list of stakeholders to concentrate on: distributors, local
communities, and special-interest groups. These three groups are
A) external stakeholders.
B) general stakeholders.
C) internal stakeholders.
D) preferred stockholders.
E) interest groups.
23) Rosemarie and Dominique, owners of Sugarplum Coffee and Pastry Shop, are concerned
because Panera Bread is opening a new store just one mile from their shop. Rosemarie and
Dominique know that Panera will be offering similar products; therefore, Panera Bread will be
a(n) ________ of Rosemarie and Dominique.
A) competitor
B) competitive ally
C) strategic ally
D) distributor
E) internal stakeholder
24) A supplier is an external stakeholder that
A) competes for customers or resources.
B) helps a company sell its goods and services to customers.
C) joins forces with another company to achieve advantages that neither can achieve on its own.
D) rescinds tax breaks when firms don’t deliver promised jobs.
E) provides raw materials, services, equipment, labor, or energy.
25) Every Saturday Mrs. Luo and hundreds of other shoppers visit Zion Market, a grocery store, to
buy food for their home or business. These shoppers are ________ of Zion.
A) suppliers
B) community allies
C) competitors
D) customers
E) partners
26) Blue Brothers’ cleaning products and equipment are sold to consumers and commercial
cleaning companies in Clean Supply’s janitorial supply and equipment store. Blue Brothers’ relies
heavily on Clean Supply to help sell its goods and services to customers. Clean Supply is a(n)
________ of Blue Brothers’ products.
A) competitor
B) distributor
C) customer
D) subsidiary
E) account ally
27) Kentucky Derby, a successful farm equipment supply company in the South, has joined forces
with Hammer and Nail, a national hardware and home retailer. As a result of this new relationship,
Kentucky Derby can open stores in other regions and Hammer and Nail can now offer a
high-quality product in the farm community. Kentucky Derby and Hammer and Nail are now
A) distributors.
B) competitors.
C) customers.
D) suppliers.
E) strategic allies.
28) Since the 1950s, the percentage of the U.S. labor force represented by unions has
A) rapidly increased.
B) steadily increased.
C) fallen to nearly zero.
D) steadily declined.
E) remained unchanged.
29) Local communities are stakeholders of organizations because communities
A) rely on the products the companies produce.
B) rely on the tax base from companies and the jobs the company provides.
C) wish to join forces with organizations to create strategic alliances.
D) need a major corporate presence to maintain federal funding of the local highway system.
E) prefer products made by large multinational organizations over locally made products.
30) The city government of Frostville promised significant tax breaks to a large retailer if it opened
a store in Frostville, which would result in nearly 200 new local jobs. However, the retailer
decided that it would staff the new Frostville store with employees from its other stores, meaning
no new jobs were created. As a result, the city of Frostville instituted clawbacks by
A) increasing the tax breaks offered to the retailer.
B) forcing the retailer to pay large fines.
C) rescinding the tax breaks given to the retailer.
D) rescinding its building permits.
E) forcing the retailer to unionize.
31) Which type of funding raises small amounts of money from many people to finance a new
venture?
A) crowdfunding
B) multifunding
C) duplicating
D) venture-funding
E) angel-financing
32) ________ are regulatory agencies, such as the SEC (Securities and Exchange Commission),
that establish ground rules under which organizations may operate.
A) Whistle-blowers
B) Government moderators
C) Government regulators
D) Interest groups
E) Watchdogs
33) Jose, a lobbyist who represents the oil industry, is meeting with several members of Congress
to try to exert political influence by contributing funds to the lawmakers’ election campaigns. Jose
also is involved in a letter-writing campaign to promote his cause. Jose is working on behalf of a
A) government regulator.
B) task force.
C) political action committee
D) strategic alliance.
E) special-interest group.
34) Maryanne was looking over her son’s school supply list and saw that he needed three 2-inch
binders, a pack of copy paper, and a box of staples. Knowing that her company had all of this in the
supply closet, she planned to just bring them home with her the next day. This would be considered
A) unethical behavior.
B) employee theft.
C) workplace cheating.
D) value system conflict.
E) misuse of company property
35) Which forces are part of the macroenvironment?
A) Economic, technological, sociocultural, and diversity
B) Diversity, microenvironment, sociocultural, demographic, and political-legal
C) Globalism, technological, sociocultural, demographic, and microenvironment
D) Economic, technological, sociocultural, demographic, political-legal, and international
E) International, demographic, diversity, family, culture, and technology
36) The macroenvironment, also known as the ________ includes six forces.
A) economic environment
B) ethical environment
C) microenvironment
D) task environment
E) general environment
37) Simon and his managers are discussing the unemployment, inflation, and interest-rate trends
that might affect their chain of sandwich shops over the next 12 months and the projected growth
in the areas where the stores are located. The managers are studying the ________ forces in their
organization’s general environment.
A) technological
B) sociocultural
C) political
D) economic
E) international
38) Fewer children are interested in learning how to play a musical instrument, and young people
have less interest in owning cars. These two trends are examples of ________ forces at work.
A) developmental
B) financial
C) political
D) sociocultural
E) legal
39) ________ forces lead to new developments in methods for transforming resources into goods
or services. For example, a new technique called hydraulic fracturing (or fracking) has been
developed to harvest natural gas trapped below the earth’s surface.
A) Sociocultural
B) Technological
C) Demographic
D) Political-legal
E) Economic
40) When a food distributor considers changing the products it markets in the southern states
because of an increasing percentage of customers from Central and South America, it is examining
the ________ forces at work in the southern United States.
A) economic
B) demographic
C) technological
D) political
E) legal
41) ________ forces affect the way politics shape laws and the way laws shape the opportunities
for and threats to an organization. For example, some cities in the United States (including New
York and San Francisco) have set the minimum wage far above the federally mandated minimum
wage.
A) Political-legal
B) Demographic
C) Economic
D) Sociocultural
E) Technological