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1 In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure.. 4 5 In the omnipotent view of management, much of an organizati

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Test bank for Fundamentals of Management Sixth Canadian 6th

Edition by Nancy Langton Robbins

TRUE/FALSE Write 'T' if the statement is true and 'F' if the statement is false

1) In the symbolic view of management, managers are seen as directly responsible for an

organization's success or failure

1)

2) The dominant view in management theory suggests that managers are omnipotent

2)

3) 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

3)

4) The symbolic view of management helps to explain the high turnover among college and

professional sports coaches, who are often fired and replaced when their teams perform poorly

4)

5) In the omnipotent view of management, much of an organization's success or failure is due to

forces outside management's control

5)

6) If an organization subscribes to the symbolic view of management, it is unreasonable to expect

managers to have a significant effect on the organization's performance

6)

7) A manager's role in the omnipotent view of management is to create meaning out of

randomness, confusion, and ambiguity

7)

8) The part of the environment that is directly relevant to achievement of an organization's goals is

the specific environment

13) The European Union (EU) and the North American Free Trade Agreement (NAFTA) have both

created regional trading alliances

13)

14) The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to create the EU 14)

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15) Through the creation of the EU, each member country now has increased border controls,

nationalist policies, and protected industries

19) The World Trade Organization was formed in 1995 and evolved from the Maastricht Treaty, an

agreement in effect since the end of World War II

19)

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20) The legal-political environment is an important factor of managing in a foreign environment

24) Power distance refers to the degree to which a society encourages people to be tough,

confrontational, assertive, and competitive

24)

25)

People in a society that is high in uncertainty avoidance don't feel threatened by uncertainty and

experience low levels of anxiety, stress, and aggressiveness

25)

26) Jim was born and raised in a country with a long-term orientation In his culture, leisure time is

highly valued because it is a vital part of the long-term health plan for the individual

29) "Born globals" are companies that choose to go global from inception; they commit

resources up front (material, people, financing) to doing business in more than one country

29)

30) Multidomestic corporations use one strategy for all global operations based on the different domestic

influences that are present in the firm's original home market

32) Global sourcing called global outsourcing refers to the practice of purchasing materials or labour

from around the world wherever it is cheapest

35) Shareholders are defined as any constituency in the organization's external environment that

may be affected by the organization's decisions and actions

35)

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36) The Environmental Uncertainty Matrix ranges in complexity from "stable to 36) dynamic" on the horizontal axis and from "simple to complex" (degree of change) on the vertical axis

MULTIPLE CHOICE Choose the one alternative that best completes the statement or answers the question

37) What are the two views of managerial impact on the success or failure of the organization? 37)

A) symbolic and interactive

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B) omnipotent and symbolic

C) omnipotent and reflective

D) dynamic and reflective

E) reflective and interactive

38) The omnipotent view of management means

A) managers have little or no responsibility for an organization's success or failure B) the top

manager is the only person in charge

C) managers are directly responsible for an organization's success or failure

D) managers are directly responsible for all internal factors within their control E) outside

forces have the most influence on organizational outcomes

38)

39) 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) managers are only responsible for those factors that influence organizational performance

B) successful managers become role models for employees

C) employees are directly responsible for an organization's success or failure

D) managers have only a limited effect on organizational outcomes

E) managers are directly responsible for an organization's success or failure

41) Internal constraints that restrict a manager's decision options arise from A) the

rules and policies implemented by top managers B) the organization's culture

C) the activities of industry competitors

D) the organization's environment

E) the laws and regulations governing workplace practices

B) the organization's board of directors

C) the organization's culture and environment

D) industry regulation

E) the employees of the organization

44) Despite the existence of both internal and external constraints, managers can still improve

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A) influencing the organization's culture and environment

B) electing new government officials at the federal and provincial levels

C) introducing new rules and procedures

D) redesigning the organization's structure

E) delegating more responsibility to employees

45) The external environment consists of the global environment,

A) primary environment, and the secondary environment B)

primary environment, and the general environment

C) specific environment, and the general environment

D) organizational culture, and the general environment E)

national culture, and the specific environment

A) is the same regardless of the organization's age

B) includes economic and global conditions that may affect the organization C) is

unique and changes with conditions

D) is determined by the top level of management

E) includes demographic and technological conditions that may affect the organization

C) industry entrants to help maximize the competition among suppliers e

D) customers at the distribution outlets r E) cash from investors into the organization E) g o

50) For an amusement theme park like Paramount Canada's Wonderland in Toronto, an v insurance provider would be

an example of which factor in its specific environment? e

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50)

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51) For an organization such as a hospital that needs nurses, the labour union and the local labour

market are examples of which factors in its specific environment?

A) government agency and competitor B) pressure group and supplier

C) pressure group and competitor D) customer and special-interest group E) both are examples of suppliers

51)

52) Which of the following is included in an organization's specific environment? A)

competitors B) inflation C) government legislation D) interest rates

E) demographics

52)

53) According to the textbook, the environment includes those external forces that have a

direct and immediate impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals

A) general B) primary C) forward D) specific E) secondary

53)

54) United Parcel Service represents which factor to Canada Post in its specific environment? 54) A) supplier

B) pressure group C) government agency D) customer

E) competitor

55) Economic conditions include all of the following factors except A) stock market fluctuations

B) federal government legislation C) inflation

D) interest rates E) changes in disposable income

55)

56) Political/legal conditions in Canada include all of the following factors except A) interest

rates B) the competition bureau C) human rights

D) egg marketing boards E) employment equity

57) To a cable television provider like Shaw Cablesystems, a satellite TV company like Bell

would be considered a A) customer

B) regulator C) pressure group D) competitor E) supplier

58) Neighbourhood activists who protest against the building of "big box" stores would be

considered which factor in the specific environment for Wal-Mart or

H

o

m

e

D

e

p

o

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t?

57)

58)

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61) Interest rates, inflation rates, and stock market indexes are all examples of what factor in an

organization's general environment?

62) A downturn in contributions from the public to the United Way charity is an example of the

impact from what factor in its general environment?

64) Which Act makes it illegal for employers to discriminate on the basis of race, national or ethnic

origin, colour, religion, age, sex, marital status, mental or physical disability, or sexual

orientation?

A) Canadian Human Rights Act

B) Canadian Charter of Rights and Freedoms C)

Canadian Civil Liberties Act

D) Canada's Employment Equity Act

E) Canada's Competition Act

64)

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A) demographic profiles of an organization's suppliers

B) laws that govern human rights and the competitive activities of organizations in a society C)

changing expectations of the society in which organizations operate

D) socialization processes that help to maintain organizational cultures E) level

of unemployment and real economic incomes of workers

D

66) When researchers discovered a link between trans fatty acids and heart disease, many consumers became

concerned As a result, Ontario-based Voortman's Cookies

decided to eliminate all trans fats from its products Voortman's was responding to

B) t

h

e conditions

67) As employees have begun to seek more balance in their lives, organizations have had to

adjust by offering family leave policies, more flexible work hours, and even on-site child

care facilities This is an example of how changing conditions can affect an organization

68) As more consumers have become aware of the use of rendered feed and the poor treatment

of chickens in many large-scale poultry farms, some farm managers have switched to

all-natural feed and "free range" breeding methods This is an example of

69) Human resources managers are increasingly using the Internet to search for qualified

candidates through on-line résumé systems and job-posting websites This is an example of

how changing conditions can affect an organization

Y D) t

h

e

W

a

r

I

I

g

r

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oup 66)

67)

68)

69)

70) 71) According to the textbook, the members of which one of the following demographic groups are

thinking, learning, creating, shopping, and playing in fundamentally different ways that are

likely to greatly impact organizations and managers?

A) Generation Y

B) the Depression group C)

Generation X

D) the World War II group

E) the baby boomers

71)

72) For most organizations, the most rapidly changing factor has been conditions 72)

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A) nearly 90 percent

B) nearly 80 percent C) one-half

D) one-third E) 70 percent

76) Which of the following is a trading alliance of Southeast Asian nations? A)

Southern Cone Common Market B) FTAA C) Mercosur

D) ASEAN E) NAFTA

76)

77) Which of the following is a multilateral trading system formed in 1995? 77)

E) NAFTA 78) The WTO is a global organization that evolved from A) GATT 78)

A) technological B) economic

C) political/legal D) global E) sociocultural

73) The enhanced speed and quality of managerial decision making due to improvements in office

automation is an example of the impact of which general environmental factor?

A) political B) demographic C) sociocultural D) global E) technological

73)

74) Through the creation of the EU, member countries now have A) government

subsidies B) protected industries C) a single market

D) border controls E) nationalistic policies

74)

75) Canada exports of its total exports to the United States 75)

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B) NAFTA

C) EEC

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D) ASEAN

E) the Maastricht Treaty

79) Canada's economy is best described as 79)

A) a command economy with no private sector control

B) a market economy with no government control

C) a command economy with some private sector control

D) a command economy with some government control

E) a market economy with some government control

80) Three economic issues that a global manager might need to understand include 80)

A) tax policies, political stability, and cultural differences

B) currency exchange rates, inflation rates, and tax policies

C) tax policies, employment laws, and cultural differences

D) inflation rates, tax policies, and political stability

E) employment laws, currency exchange rates, and political stability

C) national culture; organizational culture r

D) organizational culture; national culture l

E) organizational culture; religion e

82) The cultural dimension of measures the degree to which the members of a s

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social norms and procedures to alleviate the unpredictability of future events t A) assertiveness i

A) Power avoidance B) Freedom vs Restraint

C) Open-Minded vs Close-minded D) Achievement vs Nurturing

85) When an organization drops its structure based on countries and reorganizes according to industries, it is pursuing a global business approach known as

A) transactional organization B) polycentric organization

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B) multidomestic

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i organization

88) Which of the following definitions is most accurate for a multinational corporation?

A) a company that maintains significant operations in at least two countries but decentralizes

management to each country B) a company that maintains significant operations in at least two countries but is managed from

a base in the home country C) a company that maintains significant operations in at least two countries

D) a company that maintains significant operations in at least two countries and has multiple

home bases E) a company that maintains significant operations in at least two countries but organizes by

industry to reduce geographical barriers

88)

89) Which of the following definitions best describes a borderless corporation?

A) a company that maintains significant operations in at least two countries but organizes by

industry to reduce geographical barriers B) a company that maintains significant operations in at least two countries

C) a company that maintains significant operations in at least two countries but decentralizes

management to each country D) a company that maintains significant operations in at least two countries but is managed from

a base in the home country E) a company that maintains significant operations in at least two countries and has multiple

home bases

89)

90) IBM is the world's largest information technology company with over 300,000 employees in 170

countries It once had a country-based structure, but reorganized into industry groups to compete

more effectively in the global marketplace IBM is best described as a

D) m

u

l

t

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