Fundamentals of Management, 10e (Robbins)
Chapter 2 The Management Environment
1) What did the effect of a volcanic eruption in Iceland have on the production of Nissans in a
plant in Japan illustrate?
A) how much organizations depend on their banks
B) how much organizations depend on their external environment
C) how much organizations depend on corporate culture
2) Which components of the external environment of the BMW plant in Spartanburg, South
Carolina were disrupted by the volcanic eruption in Eyjafjallajökull, Iceland?
A) the demographic and global components
B) the political and legal components
C) the economic and global components
3) Which of the following is not involved with the demographic component of an organization's
external environment?
A) values
B) gender
C) race
4) This component of an organization's external environment is concerned with scientific and
industrial innovations.
A) Demographic
B) Technological
C) Sociocultural
5) This component of an organization's external environment is concerned with interest rates and
employment levels.
A) Demographic
B) Technological
C) Sociocultural
6) Court rulings allowing gay marriage is an example of a change in which components of an
organization's external environment?
A) political/legal and technological
B) economic and demographic
C) sociocultural and global
7) Global trade after the recent economic downturn has ________.
A) increased dramatically
B) decreased dramatically
C) increased, then decreased significantly
8) The majority of growth in the U.S. employment recently has been in this area.
A) Low paying jobs
B) High paying jobs
C) Technology jobs
9) Which of the following has been identified as a significant risk to business leaders in the next
decade?
A) stagnation in technology
B) income disparity
C) declining birth rates
10) According to polls, which percent of adults believe that economic inequality is not a problem
at all?
A) 90
B) 50
C) 30
11) In the United States the gap between the rich and poor is ________.
A) decreasing
B) accepted
C) hidden
12) The use of peer-to-peer services such as Uber is an example of this type of economy.
A) Capitalistic
B) Socialistic
C) Sharing
13) Which of the following assets can be used as part of a sharing economy?
A) Cars
B) Homes
C) Skills
14) Which of the following views of management would agree with the statement that managers
should not be held accountable for changing global economic conditions?
A) the geocentric view
B) the new-world order view
C) the demographic view
15) Which view of management describes a situation in which managers are directly responsible
for a company's success or failure?
A) the structural view of management
B) the symbolic view of management
C) the omnipotent view of management
16) Which kind of company would be less likely to fire its CEO after a poor performance?
A) a company with a symbolic view of management
B) a company with a realistic view of management
C) a company with an external view of management
17) Which kind of company would you expect to pay its CEO the most?
A) a company with a symbolic view of management
B) a company with a liberal view of management
C) a company with a semipotent view of management
18) ________ is the study of population characteristics.
A) Sociology
B) Demographics
C) Sociographics
19) Experts predict that these two countries will be larger than the developed countries of the
world by year 2050.
A) Mexico and China
B) India and China
C) China and South Africa
20) What will cause countries such as Denmark to shrink with respect to the size of their
economy, relative to other nations?
A) no social safety net
B) welfare payments
C) high birth rate
21) Which of the following identifies the best illustration of the phrase "demographics is
destiny"?
A) India is experiencing explosive growth partly because its population is growing rapidly.
B) India is experiencing poverty because its population is growing rapidly.
C) The United States is experiencing slow growth partly because its population is growing
rapidly.
D) The United States is experiencing healthy growth partly because its population is not growing
22) Which of the following provides the best illustration of technology transforming how
managers manage in the workplace?
A) Managers oversee very large design teams.
B) Managers must supervise design teams more closely.
C) Managers oversee very large clerical and secretarial staffs.
23) Which demographic do managers pay closest attention to with respect to large-scale trends in
the business world?
A) age
B) sex
C) employment status
24) How are the "Post-Millennials" likely to be different from previous generations?
A) They require products that are completely customized to the individual.
B) They require products that are completely generic and not at all customized to the individual.
C) They require products that are serious and meaningful rather than frivolous and fun.
D) They require products that are of much higher quality than those required by individuals in
25) Which popular name has been assigned to those individuals born between 1946—1964?
A) Generation Y
B) Millennials
C) Generation X
26) Which generation is predicted to be the most diverse and multicultural of any generation in
the United States?
A) Baby Boomers
B) Generation X
C) Generation Y
Linden State University (Scenario)
27) Marta sees an opportunity for her school in increasing the enrollment in individuals who
were born in the 1980s and early 1990s. Which term describes these prospective students?
A) Baby Boomers
B) Gen Yers
C) Gen Xers
28) Marta is currently focusing her efforts on fundraising. She sees this generation as the cohort
on which to focus most of her attention.
A) Gen Y, because it is the wealthiest generation
B) the Baby Boomers, because they are the most ethical generation
C) the Baby Boomers, because they are the largest and wealthiest generation
D) the Post-Millennials, because they are the largest generation that is still looking forward to
29) Marta has turned her attention to cultivating undergraduate students in the near future–three
to five years from now. On which generation should she focus her attention?
A) the Baby Boomers, because they are looking for Continuing Education programs for self-
improvement
B) Gen X, because they are looking to get advanced degrees so they can obtain high-paying jobs
C) Gen Y, because the job market is so difficult they are looking to specialize in a useful major
such as accounting and biology
30) Marta wants to increase visibility for graduate programs in such areas as public health that
are specialized for professionals who have already worked in their field for ten years or more. On
which generation should she focus her efforts?
A) Gen W
B) Gen X
C) Gen Y
31) Marta is worried that the facilities at Linden State are not as up-to-date as they could be with
respect to wi-fi access and the availability of classes on-demand using podcasts, social
networking, and other digital advances. Which generation is likely to notice this deficiency the
most?
A) the children of the Baby Boomers
B) the Baby Boomers
C) the Post-Millennials
32) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore feels that success depends on the decisions that
he and Janice make in the near future with respect to personnel. If they hire the "right" people,
Theodore thinks, the company will be successful. Which view of management does Theodore
espouse?
A) the symbolic view of management, because success rides on the decisions of the managers
B) the symbolic view of management, because success rides on external factors–whom Theodore
and Janice hire from the outside world
C) the omnipotent view of management, because success rides on the skills of the workers
33) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Janice loves the company but feels that the economy is
too slow to expect any kind of overwhelming success at this point in time. For now, Janice just
wants the company to survive. In a few years the company perhaps can look forward to true
success. Which view of management does Janice espouse?
A) the omnipotent view of management, because success rides on external factors such as the
economy
B) the symbolic view of management, because success rides on external factors such as the
economy
C) the symbolic view of management, because success rides on internal factors such as the
judgment of Theodore and Janice
D) the omnipotent view of management, because success rides on internal factors such as the
34) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just gotten wind from a highly reliable
source that games involving animals and ecosystems are likely to be extremely "hot" in the
coming year. Theodore is excited because TJ Soft has two games in development that fit the
animal/eco niche perfectly. Which component of the external environment will affect TJ Soft the
most in this situation?
A) the demographic component
B) the political component
C) the sociocultural component
35) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just gotten wind from a highly reliable
source that Congress is likely to take action in the coming year to ban violent games. TJ Soft has
several games that could be considered violent. Which component of the external environment
will affect TJ Soft the most in this situation?
A) the political/legal component
B) the demographic component
C) the technological component
38) Organizational traditions should not be followed if they don't fit with the current demands of
39) A major cause of the shutdown of a BMW assembly plant in South Carolina was a bank
40) The external environment of an organization includes factors and forces that can affect how
41) The components of an organization's external environment include a technological
42) The sociocultural component of the external environment of an organization includes trends
43) The overall trend toward globalization is part of the political component of an organization's
44) Due to the large size of the economy, organizations in the United States are insulated from
45) After the recent economic crisis, managers in the United States have found that there is
46) External factors such as jobs and prices of natural resources are important factors that can
47) After the recent economic crisis, conditions in the United States have improved much better
49) While global trade has improved since the recent recession, it has not rebounded to pre-2008
50) Experts believe that in the future, income disparity between countries and individual wage
51) According to a recent poll, 50 percent of adults feel that economic inequality is not a
52) The symbolic view of management holds that an organization's performance is based solely
53) The omnipotent view of management holds that good managerial decisions result in an
54) According to the omnipotent view of management, American managers would not be blamed
55) The quarterback of a football team assumes a largely symbolic role for his team because his
56) According to the text, economic and demographic changes are two important components of
58) The phrase "demographics is destiny" refers to the idea that older nations get tired, which
59) Technology has changed the way managers manage by forcing them to keep track of
63) In a short essay, describe an example in which the global component of an organization's
66) In a short essay, explain the difference between the symbolic and the omnipotent view of
67) Explain the phrase "demographics is destiny" and give an example of this idea in today's
68) Why were the Baby Boomers so much more influential than other generations with respect to
changing American tastes and culture?
A) The Baby Boomers came after World War II when lifestyles were really changing.
B) The Baby Boomers were a much more coherent group than other generations.
C) The Baby Boomers were a much larger group than other generations.
69) Which statement about the external environment and employment is true?
A) External environmental conditions improve employment during upswings and worsen
employment during downturns.
B) External environmental conditions worsen employment during upswings and improve
employment during downturns.
C) External environmental conditions have no effect on employment during upswings and
worsen employment during downturns.
D) External environmental conditions worsen employment during upswings and have no effect
70) Which of the following is likely to be the permanent result of the recent economic downturn
in the United States?
A) Almost all of the jobs lost will not return.
B) About half of the jobs lost will not return.
C) About a quarter of the jobs lost will not return.
71) Which trend do most managers need to get used to in the coming years?
A) Most workers will be hired as permanent employees at a lower pay scale than they were in the
past.
B) Many workers will be hired as consultants rather than as freelance employees.
C) Most workers will be hired as permanent employees rather than on a freelance basis.
72) Which kind of company has the lowest amount of environmental uncertainty in the
environmental uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
73) Which of the following best defines environmental uncertainty?
A) the amount of innovation and creativity in an organization's internal environment
B) the amount of resources and expertise in an organization's internal environment
C) the amount of change and confidence in an organization's external environment
74) A software company innovates constantly to keep up with new rivals that are constantly
appearing on the scene. The software industry itself has an enormous number of players to deal
with that includes retailers, online distributors, educational institutions, and government
agencies. Where does the company belong on the uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
75) A TV reality show program essentially puts out the same product episode after episode, year
after year, with little change and few rivals. The show exists in a TV industry that has hundreds
of different components to keep track of. Where does the show belong on the uncertainty matrix?
A) cell 1
B) cell 2
C) cell 3
76) Which of the following is LEAST likely to be considered a stakeholder for a newspaper
company, The Daily Recorder?
A) the paper boy who delivers the paper to customers
B) critics who claim that all newspapers are biased and dishonest
C) customers who buy the paper at newsstands
77) Which of the following is an internal stakeholder for the newspaper, The Daily Recorder?
A) the editor of The Daily Sun
B) the city council
C) shareholders in The Daily Sun
78) The Daily Recorder is trying to decide whether it will fire about 200 employees if things
don't change in the near future. The paper is scheduling a meeting with the 200 employees. The
employees want to include their own family members at the meeting. How should the paper
respond?
A) Family members are internal stakeholders, so they should have a separate meeting with the
paper without the employees.
B) Family members are internal stakeholders, but they should not be allowed to attend the
meeting.
C) Family members are external stakeholders, so they should be allowed to attend the meeting.
79) The Daily Recorder is considering raising its price from 60 cents to 75 cents. Which
stakeholders should it consider most in making this decision?
A) All stakeholders should be considered equally.
B) all internal stakeholders
C) all external stakeholders
80) The Daily Recorder is considering charging online readers a flat fee for access to the news
on their computers and electronic devices. Which stakeholder should the paper NOT worry about
informing?
A) the paper's online customers
B) the paper's rival, The Daily Sun
C) the unions that control the paper's workers
81) The Total Freedom political party is trying to determine its position on climate change.
Whom should the party consider as its stakeholders?
A) official party members
B) all potential voters
C) all people in the world
82) Which of the following identifies one reason why managers should NOT put time into
managing stakeholder relationships?
A) Managing stakeholder relationships can lead to less predictability of environmental changes.
B) Managing stakeholder relationships can lead to more predictability of environmental changes.
C) Managing stakeholder relationships can lead to innovations.
83) What do most high performing companies have in common when it comes to stakeholder
relationships?
A) High performing companies tend to consider the interests of all stakeholder groups when they
make important decisions.
B) High performing companies tend to consider the interests of internal stakeholder groups only
when they make important decisions.
C) High performing companies tend to consider the interests of external stakeholder groups only
when they make important decisions.
D) High performing companies tend not to consider the interests of stakeholder groups when
84) New York mayor Michael Bloomberg's proposed ban on supersized sugary drinks is
reflective of which external organizational issue?
A) the increasing power of Generation X's
B) the symbolic role of managers
C) the importance of stakeholders
85) The CEO of a major corporation experiences emotional problems and makes an appointment
to see a psychiatrist. Which of the following has the LEAST legitimate right to be informed
about the situation?
A) the stockholders
B) the media
C) the CEO's colleagues
86) The CEO of a major corporation experiences emotional problems and begins to see a
psychiatrist. Which of the following has the most legitimate right to be informed about the
situation?
A) the media, if it is possible that the CEO will need to take medication for his condition
B) the stockholders, if it is likely that the CEO's condition will affect his personal life
C) the CEO's colleagues, if it is possible that the CEO's condition can affect his ability to make
decisions
D) the CEO's colleagues, if it is likely that the CEO will need to take medication for his
87) The CEO of a major corporation experiences emotional problems and is prescribed
antidepressants by his psychiatrist. Which of the following do the CEO's stakeholders have the
most legitimate right to be informed about?
A) whether the medication can impair judgment
B) whether the medication is long term or short term
C) whether the CEO continues to receive counseling from the psychiatrist
88) The CEO of a major corporation experiences emotional problems and is prescribed
antidepressants by his psychiatrist. The medication has been shown in studies to "cloud
judgment." Which of the following do the CEO's stakeholders have the most legitimate right to
demand?
A) that the CEO resign from his position
B) that the CEO appoint a colleague to share his leadership position and keep an eye on him
C) that the CEO curtail his use of the medication
89) The CEO of a major corporation experiences emotional problems and is treated for his
condition by a psychiatrist. Shortly after he begins taking medication, the CEO is arrested for
reckless driving and appears in the media making bizarre statements that sound misguided and
bigoted. When questioned about his competence to lead, the CEO blames his troubles on his
medication, then continues to behave erratically and make statements in "bad taste." Which of
the following do the CEO's stakeholders have the most legitimate right to demand?
A) that the CEO resign from his position
B) that the CEO appoint a colleague to share his leadership position and keep an eye on him
C) that the CEO increase his medication dose
90) The CEO of a major corporation experiences emotional problems and is treated for his
condition by a psychiatrist. After being arrested and repeatedly behaving in bizarre and erratic
ways, the company's board tries to oust the CEO but fails, so he remains in office. Following the
failure to oust him from office, the CEO makes a series of brilliant decisions that vault the
company into unprecedented success. Which of the following do the CEO's stakeholders have
the most legitimate right to ask for?
A) that the CEO resign from his position
B) that the CEO be given a "figurehead" position in which he is no longer responsible to make
decisions
C) that the CEO appoint a colleague to share his leadership position and keep an eye on him
91) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just gotten wind that engineers have
developed a new computer system that works like the devices shown in the Steven Spielberg
movie Minority Report in which users can control a sophisticated computer using their hands in
midair. Janice sees this development as highly important to new games for TJ Soft. Which
component of the external environment will affect TJ Soft the most in this situation?
A) the global component
B) the sociocultural component
C) the economic component
92) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just read an article that describes the
explosion of computer games among young people in India using cell phones and simple
computers. This generation in India has well over 300 million people in it, and if TJ Soft can
capture just a tiny portion of that market it will be highly successful. Which component of the
external environment will affect TJ Soft the most in this situation?
A) the technological component
B) the demographic component
C) the political component
93) Theodore and Janice have formed TJ Soft, an entrepreneurial venture to develop games and
other kinds of software for consumers. Theodore has just read an article that says that the low
interest rates that currently prevail are likely to end in the coming months. Theodore thinks that
TJ Soft may need to apply for a loan now to avoid high costs later. Which component of the
external environment will affect TJ Soft the most in this situation?
A) the global component
B) the sociocultural component
C) the economic component
94) An industry with a dynamic business environment that is also highly complex faces the
95) Environmental complexity refers to the number of components that an organization must
96) Given a choice, managers would prefer to operate in an environment that has a minimum of
97) A good manager considers the interests of all stakeholders equally when making an
99) In a short essay, describe a real or fictional company that exists in cell 1 of the environmental
100) In a short essay, describe a real or fictional company that exists in cell 4 of the
101) In a short essay, identify all of the stakeholders in a typical apparel company such as the
102) The greater the environmental uncertainty, the more an organization needs to become
________.
A) organic
B) mechanistic
C) stable
103) The culture of an organization is analogous to the ________ of an individual.
A) skills
B) personality
C) motivation
104) Three important things to know about organizational culture is that it is 1) perceived, 2)
descriptive, and 3) ________.
A) consistent
B) shared
C) ethical
105) Which of the following is NOT a common way in which corporate cultures are transmitted
to employees?
A) stories
B) informal rituals
C) formal culture meetings
106) Southwest Airlines, which is an industry leader in providing benefits and the way it treats
employees, is an example of which of the following dimensions of organizational culture?
A) member identity
B) people focus
C) risk tolerance
107) A regularly scheduled morning meeting of employees would be an example of this method
of transmitting organizational culture.
A) Language
B) Artifacts
C) Corporate rituals
108) The original source of an organization's culture usually reflects the vision and attitudes of
________.
A) the current president or CEO of the organization
B) the organization's original employees
C) contemporaries who are admired by the organization
109) Apple, which lives and breathes new product development, emphasizes which dimension of
organizational culture?
A) member identity
B) innovation
C) people focus
110) All of the following show why corporate rituals can be valuable in a corporate culture
EXCEPT ________.
A) rituals help initiate new employees into the culture
B) rituals reinforce corporate values
C) rituals symbolize key ideas that are important in the culture
111) What is the implicit message in a story like the tale of the Post-it® note and Art Fry?
A) Your problems are not as difficult as the problems that Art Fry faced so you shouldn't
complain.
B) You can solve your problems in novel and creative ways just like Art Fry.
C) Your problems are much harder than the problems that Art Fry faced, but the tools you have
to solve them are much better.
D) Your problems are not like the problems that Art Fry faced so you can't solve them in the
112) How is a corporate ritual different from a corporate story or legend?
A) A ritual does not attempt to teach a specific lesson while a story or legend does.
B) A story or legend does not attempt to teach a specific lesson while a ritual does.
C) A ritual is not to be taken seriously while a story or legend is.
113) How might a manager at WorldNow, a technology company that manufactures innovative
oil drilling solutions, use its drill to motivate employees?
A) by saying that if employees don't work hard, company rivals will "drill" WorldNow
B) by saying that if employees work hard, WorldNow will be able to "drill" its competitors
C) by saying that like an electric drill that can work all day without quitting, employees need to
be persistent
D) by saying that to solve a tough problem, employees need to "drill" down to the truth of the
115) Employees learn organizational culture by reading official organization documents and
117) Using special language and unique terms to describe things is part of how culture is
119) Corporate rituals are repetitive sequences of activities that express and reinforce important
121) In a short essay, give an example of how an organizational story can have an impact on the
122) Organizational culture affects managers in two main ways: 1) its effect on what employees
do and how they behave and 2) ________.
A) the benefits and rewards established by the founder
B) its effect on organizational structure
C) its effect on what managers do
123) When rating how deeply held values are within an organization, culture is ranked from
________ to ________.
A) strong; weak
B) long-term; short-term
C) deep; shallow
124) Which of the following most accurately reflects the difference between strong cultures and
weak cultures?
A) Strong cultures tend to encourage employee innovation, while weak cultures do not.
B) Weak cultures are found in most successful organizations, whereas strong cultures are
relatively rare.
C) Strong cultures have less of an influence on employee behavior than do weak cultures.
D) Company values are more deeply held and widely shared in strong cultures than in weak
125) What determines whether an organization has a strong culture or a weak culture?
A) how much employees are compensated for their efforts and whether they think their
compensation is fair
B) how much employees accept the organization's key values and are committed to those values
C) whether or not employees feel that the organization is ethical
126) Which kind of culture most affects the way managers plan?
A) A weak organizational culture gives managers the freedom to make their own decisions.
B) A strong organizational culture gives managers the freedom to make their own decisions
independent of organizational values.
C) A strong organizational culture helps guide the way managers plan.
127) Which of the following statements about organizational culture is correct?
A) An organization with a weak culture would need fewer written rules and regulations to
conduct business than a strong culture.
B) An organization with a strong culture would need more written rules and regulations to
conduct business than a weak culture.
C) An organization with a strong culture would need fewer written rules and regulations to
conduct business than a weak culture.
D) Both weak and strong organizational cultures need as many written rules and regulations to
128) How does the Apache Corp. communicate its attitude toward risk taking to its employees?
A) through actions that reward risk taking and initiative
B) through actions that discourage risk taking and initiative
C) through written policies and rules that reward risk taking and initiative
129) Which kind of organizational culture do the following values describe?
1. Don't be lazy or sloppy.
2. It's better to try a good idea and fail then to stick with a bad idea.
3. When you think your product is perfect, go back and try to make it better.
A) a company that values innovation more than quality
B) an innovative, risk-taking company that has high standards
C) a company that values quality more than innovation
130) Which of the following will a "ready-aim-fire" culture tend to do with plans for building a
new factory?
A) carefully study the plans before building
B) get the building process underway before the plans are finished in order to avoid possible
objections to expansion
C) briefly study the plans before building
D) carry out the planning and building process simultaneously to make sure that the plans are
131) Which company would be best suited to a "ready-aim-fire" culture?
A) a chocolate bar company that has made the same successful products for decades
B) a pharmaceutical company that is searching for a new way to prevent obesity
C) a cell phone company that is seeking to gain market share
132) Which company would be best suited to a "ready-fire-aim" culture?
A) a chocolate bar company that has made the same successful products for decades
B) a pharmaceutical company that is searching for a new way to prevent obesity
C) a cell phone company that is seeking to gain market share
133) Which managerial planning decision is most affected by organizational culture?
A) the degree of risk that plans contain
B) how much autonomy employees should have
C) how to implement the best leadership styles
134) Which managerial controlling decision is most affected by organizational culture?
A) how to improve employee job satisfaction
B) how much environmental scanning should be done
C) how much to empower employees
135) Which managerial organizing decision is most affected by organizational culture?
A) how much environmental scanning should be done
B) how to deal with employee disagreements
C) how to structure employee evaluations
136) Which managerial organizing decision is most affected by organizational culture?
A) the amount of autonomy that employees should have
B) how much environmental scanning should be done
C) the amount of risk that is acceptable
138) In a ready-aim-fire culture, managers are more likely to carefully study a problem before
139) Strong cultures make a manager's job easy because all organizational policies, practices,
141) Organizational culture largely determines how much risk members of an organization will
142) In a short essay, describe the difference between a strong and a weak organizational culture
143) Write a series of rules that a company could use to encourage its employees to be risk-