Managing the External Environment and Organizational Culture
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Questions and Answers

Which of the following is NOT part of the external environment affecting an organization's performance?

  • Competitive (correct)
  • Technological
  • Sociocultural
  • Political/Legal
  • What does environmental uncertainty refer to?

  • The stability of an organization's external factors
  • The predictability of an organization's stakeholder relationships
  • The degree of change and complexity in an organization's environment (correct)
  • The unpredictability of an organization's internal factors
  • Which demographic group is particularly important in the workplace according to the text?

  • Gen Y (Millennials)
  • Baby Boomers (correct)
  • Generation X
  • Post-Millennials
  • What are the benefits of good stakeholder relationships mentioned in the text?

    <p>Increased predictability of environmental changes</p> Signup and view all the answers

    What does the organizational culture of an organization refer to?

    <p>The unique personality of the organization</p> Signup and view all the answers

    What characterizes strong organizational cultures?

    <p>Intensely held and widely shared key values</p> Signup and view all the answers

    Which factor contributes to creating an innovative culture within an organization?

    <p>Freedom and trust</p> Signup and view all the answers

    What is the primary managerial activity that involves defining goals, establishing strategy, and developing plans for work activities?

    <p>Formal planning</p> Signup and view all the answers

    What do formal planning and performance have a positive association with?

    <p>Higher profits and returns on assets</p> Signup and view all the answers

    What do goals in planning refer to as the desired outcomes for individuals, groups, or entire organizations?

    <p>Desired outcomes for individuals, groups, or entire organizations</p> Signup and view all the answers

    Environmental uncertainty refers to the degree of change and complexity in an organization's environment.

    <p>True</p> Signup and view all the answers

    Stakeholders are not affected by an organization's decisions and actions.

    <p>False</p> Signup and view all the answers

    The economic context is not important for managers to make the best decisions for their organizations.

    <p>False</p> Signup and view all the answers

    Each individual has a unique personality, but an organization does not have a personality.

    <p>False</p> Signup and view all the answers

    Good stakeholder relationships do not lead to improved predictability of environmental changes.

    <p>False</p> Signup and view all the answers

    Organizational culture with widely shared values and consistent messages about what's important is considered a weak culture.

    <p>False</p> Signup and view all the answers

    In organizations with strong cultures, employees have little identification with the culture.

    <p>False</p> Signup and view all the answers

    Formal planning is not associated with higher profits and returns on assets.

    <p>False</p> Signup and view all the answers

    Strategic goals are related to the internal financial performance of the organization.

    <p>False</p> Signup and view all the answers

    Sustainability is not typically integrated into the overall culture of many companies.

    <p>False</p> Signup and view all the answers

    Study Notes

    Environmental Factors Affecting Organizations

    • The economic context is an important external environmental factor affecting an organization's performance.

    Environmental Uncertainty

    • Environmental uncertainty refers to the degree of change and complexity in an organization's environment.

    Demographics in the Workplace

    • A particularly important demographic group in the workplace is not specified in the text.

    Stakeholder Relationships

    • Good stakeholder relationships lead to improved predictability of environmental changes.

    Organizational Culture

    • Organizational culture refers to the overall personality of an organization.
    • A strong organizational culture is characterized by widely shared values and consistent messages about what's important.

    Innovative Culture

    • Creating an innovative culture within an organization involves encouraging creativity and experimentation.

    Planning and Performance

    • The primary managerial activity that involves defining goals, establishing strategy, and developing plans for work activities is planning.
    • Good planning has a positive association with higher profits and returns on assets.
    • Goals in planning refer to the desired outcomes for individuals, groups, or entire organizations.

    Sustainability

    • Sustainability is typically integrated into the overall culture of many companies.

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    Description

    Test your knowledge on managing the external environment and organizational culture with this revision sheet for Chapter 3. Explore factors such as economic, demographic, political/legal, sociocultural, technological, and global influences on organizational performance.

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