Chapter 2 & 3 – Management Thinking and External Environment
Exam info
- Subject
- Principle Of Management
- Exam type
- University
- Questions
- 60
- Duration
- 40 min
- Answers
- ✓ With explanations
Questions (60)
- Q 1.
According to Chapter 3, the external organizational environment consists of which two main layers?
- A.
Internal and external environments
- B.
General environment and task environment
- C.
Domestic environment and global environment
- D.
Micro environment and macro environment
- A.
- Q 2.
Which sector of the external environment is closest to the organization and directly influences its basic operations?
- A.
General environment
- B.
International environment
- C.
Task environment
- D.
Sociocultural environment
- A.
- Q 3.
Customers are considered important to an organization primarily because they:
- A.
provide raw materials for production
- B.
determine the organization's success
- C.
compete for the same market share
- D.
set government regulations
- A.
- Q 4.
Organizations in the same industry that offer similar goods or services to the same customers are called:
- A.
Suppliers
- B.
Stakeholders
- C.
Competitors
- D.
Distributors
- A.
- Q 5.
A network of multiple businesses and individuals connected through the flow of products or services is known as a:
- A.
value chain
- B.
distribution channel
- C.
supply chain
- D.
labor market
- A.
- Q 6.
The labor market represents people in the environment who:
- A.
purchase the organization's goods or services
- B.
supply raw materials to the organization
- C.
regulate the organization's activities
- D.
can be hired to work for the organization
- A.
- Q 7.
Which of the following is cited in the chapter as an example of broader environmental change affecting the labor market?
- A.
The Great Depression
- B.
The COVID-19 pandemic and the entry of Gen Z
- C.
The Industrial Revolution
- D.
The launch of the euro currency
- A.
- Q 8.
The international dimension of the external environment includes:
- A.
events originating in foreign countries
- B.
domestic employment laws
- C.
the demographic profile of the local population
- D.
natural resources and climate
- A.
- Q 9.
According to the chapter, industries that fail to adapt to technological shifts face the prospect of:
- A.
government intervention
- B.
labor market shortages
- C.
decline and obsolescence
- D.
international sanctions
- A.
- Q 10.
The sociocultural dimension of the general environment represents:
- A.
interest rates and purchasing power
- B.
demographic characteristics, norms, customs, and values
- C.
scientific and technological advances
- D.
government regulations and political activities
- A.
- Q 11.
Which indicator is most associated with the economic dimension of the general environment?
- A.
Consumer purchasing power
- B.
Religious customs of the population
- C.
Rate of scientific innovation
- D.
Forest and air quality
- A.
- Q 12.
The legal–political dimension of the general environment includes:
- A.
consumer tastes and lifestyle trends
- B.
interest rates and inflation
- C.
government regulations and political activities
- D.
raw material providers
- A.
- Q 13.
The natural dimension of the general environment includes:
- A.
plant and animal species, air, water, and climate
- B.
unions and employee associations
- C.
international trade agreements
- D.
technological innovations
- A.
- Q 14.
The Nike 'Move to Zero' campaign discussed in the chapter is most directly related to which dimension of the general environment?
- A.
Technological
- B.
Sociocultural
- C.
Economic
- D.
Natural
- A.
- Q 15.
Why does the chapter suggest the natural dimension has 'no voice of its own'?
- A.
Because plants and animals cannot vote
- B.
Because influence on managers comes from other sectors such as interest groups
- C.
Because it is the smallest dimension of the environment
- D.
Because governments ban advocacy for nature
- A.
- Q 16.
Millennials are mentioned in Chapter 3 as an example of which dimension influencing business?
- A.
International
- B.
Sociocultural
- C.
Technological
- D.
Legal–political
- A.
- Q 17.
Which type of force relates to the influence of political and legal institutions and systems on people and organizations?
- A.
Social forces
- B.
Political forces
- C.
Economic forces
- D.
Cultural forces
- A.
- Q 18.
According to the textbook, which forces affect the availability, production, and distribution of a society's resources?
- A.
Social forces
- B.
Political forces
- C.
Economic forces
- D.
Technological forces
- A.
- Q 19.
Frederick Winslow Taylor is best known as the:
- A.
father of bureaucratic management
- B.
father of general management
- C.
father of scientific management
- D.
father of the human relations movement
- A.
- Q 20.
A key belief of scientific management was that:
- A.
managers should rely on rules of thumb and tradition
- B.
decisions should be based on precise procedures developed through study
- C.
workers should not be selected or trained systematically
- D.
bureaucratic rules are essential for productivity
- A.
- Q 21.
Which of the following is a criticism of scientific management mentioned in the chapter?
- A.
It overemphasized wage incentives
- B.
It ignored the social context of work and higher needs of workers
- C.
It placed too much emphasis on personnel selection
- D.
It required too much paperwork
- A.
- Q 22.
Max Weber is associated with introducing the concept of:
- A.
human relations
- B.
bureaucratic organizations
- C.
management science
- D.
administrative principles
- A.
- Q 23.
According to Weber, managers in a bureaucracy should exercise authority based on:
- A.
personal charisma and personality
- B.
informal relationships
- C.
rules and records, not personal favoritism
- D.
tradition and inherited status
- A.
- Q 24.
Why has the term 'bureaucracy' taken on a negative tone in everyday usage?
- A.
Because it is always inefficient
- B.
Because excessive rules and procedures create 'red tape'
- C.
Because it removes hierarchy from organizations
- D.
Because it eliminates all forms of authority
- A.
- Q 25.
Henri Fayol is best known for developing:
- A.
scientific management principles
- B.
14 general principles of management
- C.
Maslow's hierarchy of needs
- D.
Theory X and Theory Y
- A.
- Q 26.
Which of the following is one of Fayol's 14 principles of management?
- A.
Division of work
- B.
Theory X
- C.
Hierarchy of needs
- D.
Synergy
- A.
- Q 27.
Which of the following is one of Fayol's five functions of management?
- A.
Motivating
- B.
Controlling
- C.
Budgeting
- D.
Staffing
- A.
- Q 28.
Management science is also referred to as the:
- A.
humanistic perspective
- B.
bureaucratic perspective
- C.
quantitative perspective
- D.
behavioral perspective
- A.
- Q 29.
Management science was originally developed for:
- A.
private corporations
- B.
the military during World War II
- C.
agricultural cooperatives
- D.
public schools
- A.
- Q 30.
The development of the computer enhanced which classical management approach?
- A.
Scientific management
- B.
Bureaucratic management
- C.
Management science
- D.
Administrative principles
- A.
- Q 31.
Which pair of thinkers led the humanistic perspective in management?
- A.
Taylor and Weber
- B.
Fayol and Drucker
- C.
Mary Parker Follett and Chester Barnard
- D.
Maslow and McGregor
- A.
- Q 32.
The Hawthorne studies were key contributors to which management approach?
- A.
Scientific management
- B.
Bureaucratic organizations
- C.
Human relations movement
- D.
Management science
- A.
- Q 33.
Which finding is most directly associated with the Hawthorne studies?
- A.
Workers can be retrained like machines
- B.
Employees perform better when managers treat them positively
- C.
Organizations should rely on impersonal rules
- D.
Quantitative techniques solve management problems best
- A.
- Q 34.
The human resources perspective differs from the human relations movement in that it:
- A.
focused only on wages
- B.
emphasized workers' daily tasks and combining job design with motivation
- C.
ignored human needs
- D.
used only quantitative methods
- A.
- Q 35.
Maslow is known for creating the:
- A.
hierarchy of human needs
- B.
14 principles of management
- C.
Theory X and Theory Y
- D.
Weberian bureaucracy model
- A.
- Q 36.
In Maslow's hierarchy, which need must generally be satisfied before self-actualization can be achieved?
- A.
Only physiological needs
- B.
Lower-level needs (physiological, safety, love/belonging, esteem)
- C.
Only safety needs
- D.
No needs need to be met first
- A.
- Q 37.
McGregor's Theory X and Theory Y address:
- A.
organizational structure design
- B.
managers' assumptions about worker motivation
- C.
supply chain management
- D.
international trade policy
- A.
- Q 38.
Which assumption is consistent with McGregor's Theory Y?
- A.
Most people inherently dislike work
- B.
People must be coerced and threatened to achieve organizational goals
- C.
Under proper conditions, people can seek and accept responsibility
- D.
Most people prefer being directed and want security above all
- A.
- Q 39.
The behavioral sciences approach draws from disciplines such as:
- A.
sociology, psychology, and anthropology
- B.
mathematics and statistics only
- C.
engineering and production only
- D.
law and political science only
- A.
- Q 40.
Organizational development (OD) emerged primarily from which management approach?
- A.
Scientific management
- B.
Behavioral sciences approach
- C.
Management science
- D.
Bureaucratic management
- A.
- Q 41.
Systems theory encourages managers to view organizations as:
- A.
isolated units competing in isolation
- B.
interrelated parts working together toward a common purpose
- C.
strict hierarchies with no interaction across departments
- D.
collections of independent tasks with no shared goal
- A.
- Q 42.
In systems theory, 'synergy' means that:
- A.
each part functions independently
- B.
the whole is greater than the sum of its parts
- C.
subsystems compete against each other
- D.
management decisions are based on a single best way
- A.
- Q 43.
The contingency view of management argues that:
- A.
there is one best way to organize
- B.
successful management depends on the situation
- C.
workers must always be treated identically
- D.
organizations should ignore external conditions
- A.
- Q 44.
Which of the following is identified as a popular use of new digital technology in today's workplace?
- A.
Big data analytics
- B.
Bureaucratic paperwork
- C.
Scientific stopwatch measurement
- D.
Manual filing systems
- A.
- Q 45.
Which of the following is NOT a dimension of the general environment in Chapter 3?
- A.
Suppliers
- B.
Technological
- C.
Legal–political
- D.
Sociocultural
- A.
- Q 46.
Which pair correctly matches a thinker with their contribution?
- A.
Taylor – 14 principles of management
- B.
Weber – Theory X and Theory Y
- C.
Maslow – hierarchy of needs
- D.
Follett – bureaucratic organizations
- A.
- Q 47.
In systems theory, 'subsystems' are best described as:
- A.
parts of a system that depend on one another
- B.
external customers of a firm
- C.
standalone functions with no interaction
- D.
government regulators
- A.
- Q 48.
Which of Fayol's principles states that each employee should receive orders from only one superior?
- A.
Unity of command
- B.
Unity of direction
- C.
Scalar chain
- D.
Esprit de corps
- A.
- Q 49.
Which of the following most accurately describes the 'father of general management'?
- A.
Frederick Winslow Taylor
- B.
Henri Fayol
- C.
Max Weber
- D.
Peter Drucker
- A.
- Q 50.
Bureaucratic management, as developed by Weber, is most applicable to:
- A.
small family-run shops
- B.
government sectors and large organizations
- C.
short-term project teams only
- D.
creative artistic studios
- A.
- Q 51.
Compared to scientific management, administrative principles (Fayol) emphasize:
- A.
low-level management and engineering tasks
- B.
top-level management and managerial functions
- C.
shop-floor worker routines only
- D.
statistical decision analysis only
- A.
- Q 52.
Which of the following best illustrates the concept of synergy in systems theory?
- A.
Departments working together produce better outcomes than the sum of their individual contributions
- B.
Each department works entirely independently with no interaction
- C.
A single employee outperforms the entire team
- D.
Subsystems compete destructively for resources
- A.
- Q 53.
The Hawthorne studies contributed most directly to management by showing that:
- A.
productivity is determined solely by wages
- B.
human and social factors influence worker performance
- C.
rules and procedures are the most important motivator
- D.
workers are best motivated by fear of punishment
- A.
- Q 54.
McGregor's Theory X assumes that:
- A.
most people enjoy work and seek responsibility
- B.
most people dislike work and must be coerced to perform
- C.
creativity is widespread and fully utilized
- D.
self-direction is the natural state of workers
- A.
- Q 55.
Which statement best captures the relationship between the general and task environments?
- A.
Both influence the organization indirectly
- B.
Both directly influence day-to-day operations
- C.
The task environment influences operations directly, while the general environment influences it indirectly
- D.
The general environment contains only international factors
- A.
- Q 56.
Peter Drucker is most associated with leading the development of:
- A.
bureaucratic organizations
- B.
management science
- C.
human relations movement
- D.
contingency view
- A.
- Q 57.
A supply chain most directly involves which sector of the task environment?
- A.
Customers
- B.
Suppliers
- C.
Labor unions only
- D.
Government regulators
- A.
- Q 58.
Which management perspective would most directly address sustainability concerns like Nike's 'Move to Zero'?
- A.
Scientific management only
- B.
Bureaucratic management only
- C.
Systems theory and a holistic view
- D.
Theory X only
- A.
- Q 59.
Which of the following best illustrates the concept of organizational ecosystem?
- A.
A single firm operating without external contacts
- B.
A firm and its network of customers, competitors, suppliers, and labor market
- C.
Only the internal departments of a company
- D.
Only government regulators
- A.
- Q 60.
Which set of forces does the textbook identify as shaping management and organizations in the larger society?
- A.
Social, political, and economic forces
- B.
Technological, natural, and international forces
- C.
Customers, competitors, and suppliers
- D.
Managers, employees, and shareholders only
- A.
Answers and explanations are in mode.