Management, 13e (Robbins)
Chapter 3 Managing the External Environment and the Organization’s Culture
1) Which 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) reflective
D) symbolic
4) Wendell interviews many middle-level managers and discovers that they share a different
view of management. 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) reflective
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
________.
A) the symbolic view of management
B) the omnipotent view of management
C) the impotent view of management
D) the omniscient view of management
6) 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.
7) 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.
8) 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
9) 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
10) According to the symbolic view, managers have a(n) ________ effect on substantive
organizational outcomes.
A) limited
B) extensive
C) influential
D) significant
11) The symbolic view of management is based upon the belief that managers symbolize
________.
A) control and influence in 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
12) Internal constraints that influence managers’ decisions and actions come from ________.
A) the attitudes of customers
B) the culture of the organization
C) the prevailing political conditions
D) the fluctuations in the stock market
13) In the symbolic view of management, managers are seen as directly responsible for an
organization’s success or failure.
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14) 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.
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 ________ in a
firm’s external environment.
A) economic conditions
B) political conditions
C) sociocultural conditions
D) demographic conditions
18) 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
19) 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.
20) 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
21) The Metropolis News has experienced a decline in the number of subscriptions to its printed
newspaper over the last 5 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) psychological
C) demographic
D) sociocultural
22) 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 birth rate of the country is declining.
23) 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) political/legal
C) demographic
D) economic
24) 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
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-Millenials
26) ________ 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
27) 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.
28) Assume the global economy rebounds rapidly from the Great Recession. What constraint is
this likely to have on decisions managers make?
A) Qualified job candidates will become fewer and fewer.
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.
29) 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
30) Which of the following describes a dynamic environment?
A) Sales vary with the seasons.
B) Production methods have changed gradually over the last 25 years.
C) Competitors move into and out of the industry frequently.
D) Product demand increases every year on a steady upward trend.
31) 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
32) 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
33) The area in which your office operates has been relatively stable in terms of land prices and
demand. 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
34) 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.
35) Which 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.
36) Which 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.
37) In which 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
38) 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
39) 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
40) Which 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
41) People’s beliefs about conditions of economic inequality illustrate how societal attitudes can
constrain managers’ decisions and actions.
42) 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.
43) 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.
44) A dynamic and simple environment is characterized by the greatest level of environmental
uncertainty.
45) An organization’s competitors and employees are considered to be stakeholders who are
affected by the organization’s decisions and actions.
46) Managers of high-performing companies tend to consider the interests of the most profitable
stakeholder groups as they make decisions.
47) Define environmental uncertainty. Briefly discuss the dimensions of environmental
uncertainty.
48) 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
49) ________ 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