Chapter 2

Question 1

External Environment

Answer 1

Factors, forces, situations, and events outside the organization that affect the performance

Question 2

Economic component

Answer 2

encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages.

Question 3

Demographic component

Answer 3

includes trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition

Question 4

Technological Component

Answer 4

focuses on scientific and industrial innovations.

Question 5

Sociocultural Component

Answer 5

is concerned with societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior.

Question 6

The political / legal component

Answer 6

looks at federal, state, and local laws, as well as other countries’ laws and global laws. It also includes a country’s political conditions and stability.

Question 7

The global component

Answer 7

encompasses issues associated with globalization and a world economy.

Question 8

Sharing economy

Answer 8

asset owners share with other individuals peer to peer service, for a fee, their underutilized assets, physical assets, or their knowledge, expertise, skills, or time

Question 9

Baby boomers

Answer 9

Born between 1946 - 64

Question 10

Gen X

Answer 10

1965-77

Question 11

Gen Y

Answer 11

1978 - 1994

Question 12

What affects external environment?

Answer 12

impact on jobs and employment
Assessing environmental uncertainty
managing stakeholder relationships

Question 13

Stakeholders

Answer 13

any constituents in an organizations environment that are affected by that organizations decisions and actions

Question 14

Organizational Culture

Answer 14

shared values, principals, traditions, and ways of doing things that influence the way an organizations members act out

Question 15

Culture is

Answer 15

Perceived, Descriptive, Shared

Question 16

Corporate rituals

Answer 16

repetitive sequences of activities that express and reinforce important organizational values and goals

Question 17

Material symbols or artifacts

Answer 17

layout of facilities, how employees dress, size of offices material perks, provided to executives, furnishing, and so forth

Question 18

Language

Answer 18

special acronyms, unique terms to describe equipment, key personnel, customers, suppliers, processes, and products

Question 19

How does organizational culture affect managers

Answer 19

Effect on what employees do and how they behave

Effect on what managers do

Question 20

Strong cultures

Answer 20

cultures in which the key values are deeply held and widely shared

Question 21

Strong cultures can

Answer 21

substitute for formal rules and regulations

create predictability, orderliness, and consistency

Question 22

Planning

Answer 22

the degree of risk the plan should contain
whether plans should be developed by teams or individuals
the degree of environmental scanning in which management will engage

Question 23

Organizing

Answer 23

how much autonomy should be designed into employees jobs
whether tasks should be done by individuals or in teams
the degree to which department managers interact with each other

Question 24

Leading

Answer 24

the degree to which managers are concerned with increasing employee job satisfaction
what leadership styles are appropriate
whether all disagreements even constructive ones should be eliminated

Question 25

controlling

Answer 25

whether to impose external controls or to allow employees to control their own actions
what criteria should be emphasized in employee performance evaluations
what repercussions will occur from exceeding one’s budget