Chapter 2 – The Management Environment
Chapter Two: The Management Environment
True/False
1. Computer systems professionals represent one of the fastest growing worker populations in the global economy.
(True; Easy; p. 49)
2. The silicon chip has permanently altered the economics and the ability of computers to communicate with each other.
(True; Easy; p. 48)
3. From the late 1800’s until the 1960’s, all economies were agrarian.
(False; Easy; p. 49)
4. The most powerful technological innovation to influence business in the past decade has been the rise of the knowledge worker.
(False; Moderate; p. 50)
5. Globalization has all of the following consequences on management: reduced constraints of national barriers, increased unemployment and the need to adapt to different cultures, systems and techniques.
(False; Moderate; pp. 52-53)
6. By the 1950s, industrial workers had become the largest single group in every developed country.
(True; Moderate; p. 49)
7. Today, blue-collar industrial workers account for over 40% of the US workforce.
(False; Easy; p. 49)
8. Knowledge workers are an important group of technical and professional employees that currently make up 50% of the US workforce.
(False; Moderate; p. 50)
9. The national boundaries of world businesses today are becoming increasingly well - defined and controlled as global competition increases.
(False; Moderate; p. 50)
10. A multinational corporation is a company that maintains significant operations in more than one company simultaneously and decentralizes decision making in each operation to the local country level.
(False; Moderate; p. 51)
11. In order to be effective in a boundaryless world, managers need to focus on their own cultures, systems, and techniques.
(False; Moderate; p. 52)
12. Transnational corporations maintain significant operations in two or more countries simultaneously, but are based in one home country.
(False; Challenging; p. 52)
13. Strategic alliances provide domestic companies with faster and less expensive ways to compete globally than if they did it on their own.
(True; Easy; p. 53)
14. Collectivism is the degree to which people in a country act as individuals rather than members of a group.
(False; Moderate; p. 54)
15. Hofstede’s research demonstrated that there are relatively few major differences in values between employees from different national cultures.
(False; Moderate; p. 54)
16. Assertiveness is the extent to which a society encourages people to be tough, confrontational and competitive versus modest and tender.
(True; Easy; p. 56)
17. The emphasis in the United States is on ascribed status, in which status is often the result of factors such as seniority and education.
(False; Moderate; p. 54)
18. According to the Globe Ratings of Leadership, the United States has high ratings on assertiveness.
(True; Easy; p. 55 Ex. 2-4)
19. E-commerce is the full breath of activities included in a successful Internet-based business.
(False; Easy; pp. 57-58)
20. “Quality of life" refers to cultures that value things such as assertiveness and the acquisition of money and material goods.
(False; Moderate; p. 54)
21. Type A organizations are contemporary organizations with heavy reliance on intranets and extranets.
(False; Easy; p. 58)
22. As manager of Xithropy, Inc. you may become regularly confronted with decisions that have a dimension of social responsibility. Examples of major factors would be decisions about distribution, advertising, employee insurance, or length of workweek.
(False; Challenging; pp. 60-62)
23. Moral responsibility refers to a business firm's obligation to pursue long-term goals that are good for society.
(False; Moderate; p. 62)
24. Brown Company plans to layoff five employees to meet organizational goals. Whittier, Inc. is attempting to create a more efficient operation through extreme layoffs of 27 employees. Whittier, Inc. is practicing rightsizing.
(False; Challenging; p. 69)
25. The empowerment movement is being driven by two forces. The first is the need for quick decisions by those people who are most knowledgeable about the issues. The second is the reality that the large layoffs in the upper-management ranks have left many managers with considerably more people to supervise than they had in the past.
(False; Challenging; p. 78)
26. Cyclical labor trends are difficult to predict.
(True; Moderate; p. 71)
27. Many organizations today are increasing the decision-making discretion of workers by redesigning their jobs. Management calls this practice empowerment.
(True; Easy; p. 74)
28. Because customers demand higher quality, more organizations are making commitments to constantly improving the quality of their products and services through a practice called total quality management.
(False; Easy; p. 75)
29. The Theory of Justice view of ethics refers to a situation in which an individual imposes and enforces rules fairly and impartially.
(True; Moderate; p. 63; Ex.2-7)
30. Only 67% of Fortune 1000 companies have a stated code of ethics.
(False; Easy; p. 63)
31. The work of Hofstede on national culture indicated that national culture does not have a major impact on employees' work-related values and attitudes.
(False; Easy; p. 54)
32. Hofstede's cultural dimension term "individualism" refers to a loosely knit social framework in which people are supposed to look after their own interests and those of their immediate family.
(True; Challenging; p. 54)
33. In essence, parochialism is an ethnocentric view.
(True; Easy; p. 53)
34. Traditional approaches to studying international business have sought to advance specific principles for each culture.
(False; Moderate; p. 53)
Multiple Choice Questions
35. Which of the following is the fastest growing worker population in the global economy?
a. Blue collar workers
b. Technical professionals
c. Computer systems analysts
d. Managers
(c; Moderate; p. 49)
36. From the following choice of answers, choose the one that is not currently changing the way information is created, stored, used, or shared.
a. digital electronics
b. optical data transmissions
c. computer networking
d. optical data storage
(b; Moderate; p. 48)
37. According to Toffler, which wave of modern civilization focused on the individual who was his/her own boss performing a variety of tasks?
a. agriculture
b. industrialization
c. manufacturing
d. information
(a; Moderate; p. 48)
38. According to Toffler all of the following were characteristic of Wave 2-Industrialization except
a. mass production.
b. specialized jobs.
c. rise of skilled craftsmen.
d. rise of blue-collar workers.
(c; Moderate; p. 48)
39. Which wave of modern civilization transformed society from a manufacturing focus to a focus on service?
a. agriculture
b. industrialization
c. manufacturing
d. information
(d; Moderate; p. 49)
40. The most powerful technological innovation to influence business in the past ten years has been
a. knowledge workers.
b. globalization.
c. industrialization.
d. dot-com businesses.
(d; Moderate; p. 50)
41. Computer programmers, software designers, and systems analysts are commonly referred to as
a. service workers.
b. the first wave.
c. industrial workers.
d. information technologists.
(d; Moderate; p. 50)
42. The concept of a boundaryless world where goods and services are produced and marketed worldwide is known as
a. the global village.
b. the global community.
c. MNCs.
d. international businesses.
(a; Moderate; p. 50)
43. Hofstede identified all of the following fundamental differences in values that can be used to characterize people in different national cultures except
a. power orientation.
b. social orientation.
c. economic orientation.
d. time orientation.
(c; Moderate; p. 54)
44. Which of the following is a characteristic of the new economy?
a. Population is relatively homogeneous.
b. National borders are nearly meaningless in defining an organization's operating
boundaries.
c. Business is estranged from its environment.
d. Customers get what business chooses to give them.
(b; Moderate; p. 50; Ex. 2-1)
45. ______is the cultural belief that the group is more important and takes priority over the interests of the individual.
a. Individualism
b. Assertiveness
c. Collectivism
d. Humane Orientation
(b; Moderate; p. 56)
46. Which of the following type of corporation initiated the rapid growth in international trade?
a. transnational corporations
b. uninational corporations
c. multinational corporations
d. blue-chip corporations
(a; Moderate; p. 52)
47. Multinational corporations maintain significant operations in _____ or more countries, but are based in _____ home country/countries.
a. four; one
b. two; one
c. one; two
d. one; four
(b; Challenging; p. 51)
48. Decision making in transnational corporations occurs at the _____ level.
a. local
b. home office
c. continental
d. regional
(a; Moderate; p. 52)
49. Who runs operations in each country for a transnational corporation?
a. management teams sent from the Home Office
b. management teams sent from the Regional Office
c. nationals
d. management teams sent from the United States
(c; Moderate; p. 52)
50. According to the GLOBE leadership study which country had among the highest ratings of assertiveness?
a. Switzerland
b. Germany
c. Spain
d. Sweden
(c; Moderate; p. 55; Ex. 2-4)
51 According to the GLOBE leadership study which counties were rated the most collective, or least individualistic?
a. Singapore and Japan
b. Hong Kong and U.S.
c. Japan and Israel
d. Greece and Germany
(a; Challenging; p. 55; Ex. 2-4)
52. In terms of the use of information technology, Type C organizations are _____.
a. small traditional retail and service firms
b. contemporary organizations that rely on intranets and extranets
c. fully functioning e-organizations
d. small e-commerce firms
(c; Moderate; p. 58)
53. The use of intranets and extranets is lowest in which type of organization?
a. Type B
b. Type A
c. Type C
d. Type E
(b; Easy; p. 58)
54. Which of the following is NOT an argument that supports Corporate Social Responsibility?
a. Public expectations
b. Cost
c. Stockholder Interest
d. Better Environment
(b; Moderate; p. 61; Ex. 2-6)
55. The utilitarian view of ethical behavior is that which provides______.
a. the greatest good for the greatest number of people
b. respect and protects the individual’s fundamental rights
c. fair and impartial enforcement of rules
d. protection of individual rights to free speech, privacy, religion and due process
interests
(a; Moderate; p. 63; Ex. 2-7)
56. The main focus of the Theory of Justice view of ethical behavior is ______.
a. the greatest good for the greatest number of people
b. that it respects and protects the individual’s fundamental rights
c. that it enforces rules fairly and impartially
d. that it protects individual rights to free speech, privacy, religion and due process
interests
(c; Moderate; p. 63; Ex. 2-7)
57. Many U.S. Corporations were forced to downsize in 2003 due to the economic recession. What impact did this have on the workforce?
a. More blue-collar worker were employed.
b. Workers found it easier to find jobs.
c. More than 2.5 million jobs were eliminated.
d. More minority workers found jobs.
(c; Easy; p. 69)
58. Which of the following are not part of the contingent workforce?
a. employees who work more than 40 hours per week
b. part-time consultants
c. contractors
d. outsourced employees
(a; Moderate; p. 69; Ex. 2-9)
59. Which of the following is a characteristic of the old economy?
a. The economy was driven by large corporations.
b. Job opportunities were for knowledge workers.
c. Business accepted its social responsibilities.
d. Customer needs drove business.
(a; Easy; p. 50; Ex. 2-1)
60. Which of the following is not a component of the Continuous Improvement Process?
a. intense customer focus
b. concern for continuous improvement
c. accurate measurement process
d. reward for performance
(d; Moderate; p. 76)
61. A(n) _____ business transcends national boundaries and decentralizes decision making in each operation to the local level.
a. international
b. domestic
c. multinational
d. transnational
(d; Moderate; p. 52)
62. Which of the following international business strategies has the lowest amount of risk?
a. Importing/exporting strategy
b. Joint venture
c. Licensing strategy
d. Direct investment
(a; Moderate; p. 52)
63. All but which of the following are options if a business decides to go global?
a. exporting its product
b. contracting with foreign manufacturers
c. franchising
d. importing its product
(d; Moderate; pp. 52-53)
64. An organization going global typically proceeds through three stages. In Stage I,
a. the organization hires host country nationals.
b. managers export products to foreign countries.
c. the organization sells products in foreign countries or makes them in foreign
factories.
d. the organization signs a licensing or franchise agreement.
(b; Challenging; p. 52)
65. In Stage II of going global, an organization might
a. build production facilities in a foreign country.
b. export products to foreign countries.
c. hire foreign agents or brokers to represent the organization's product lines.
d. license or franchise to another firm the right to use the organization's brand name.
(c; Challenging; pp. 52-53)
66. A narrow focus where managers see things solely through their own eyes and within their own perspective is known as
a. an ethnocentric view.
b. a world view.
c. parochialism.
d. a global view.
(c; Moderate; p. 53)
67. The United States does not produce rubber, so when a U.S. Tire Manufacturer wants
to purchase rubber to manufacture its tires locally in the U.S., it must engage in which
kind of strategy?
a. Importing
b. Direct investment
c. Global sourcing
d. Exporting
(a; Moderate; p. 52)
68. In France, status is often the result of all the following factors except
a. seniority.
b. education.
c. personal accomplishment.
d. organizational factors.
(c; Moderate; pp. 53-54)
69. _____ is the first type of international business (Stage I) in which firms usually become
involved.
a. Joint venture
b. Licensing
c. Importing/exporting
d. Direct investment
(c; Easy; p. 52)
70. An international business advances to stage III. Which of the following new strategies
are used (Stage I) usually become involved?
a. Joint ventures and licensing
b. Agents and importing
c. Importing and exporting
d. Direct investment and exporting
(a; Easy; p. 53)
71. What strategy did HP use when it agreed to let some Japanese firms manufacture
computers and printers and use the HP name and logo?
a. Importing/exporting