20 Questions
Which of the following is NOT part of the external environment affecting an organization's performance?
Competitive
What does environmental uncertainty refer to?
The degree of change and complexity in an organization's environment
Which demographic group is particularly important in the workplace according to the text?
Baby Boomers
What are the benefits of good stakeholder relationships mentioned in the text?
Increased predictability of environmental changes
What does the organizational culture of an organization refer to?
The unique personality of the organization
What characterizes strong organizational cultures?
Intensely held and widely shared key values
Which factor contributes to creating an innovative culture within an organization?
Freedom and trust
What is the primary managerial activity that involves defining goals, establishing strategy, and developing plans for work activities?
Formal planning
What do formal planning and performance have a positive association with?
Higher profits and returns on assets
What do goals in planning refer to as the desired outcomes for individuals, groups, or entire organizations?
Desired outcomes for individuals, groups, or entire organizations
Environmental uncertainty refers to the degree of change and complexity in an organization's environment.
True
Stakeholders are not affected by an organization's decisions and actions.
False
The economic context is not important for managers to make the best decisions for their organizations.
False
Each individual has a unique personality, but an organization does not have a personality.
False
Good stakeholder relationships do not lead to improved predictability of environmental changes.
False
Organizational culture with widely shared values and consistent messages about what's important is considered a weak culture.
False
In organizations with strong cultures, employees have little identification with the culture.
False
Formal planning is not associated with higher profits and returns on assets.
False
Strategic goals are related to the internal financial performance of the organization.
False
Sustainability is not typically integrated into the overall culture of many companies.
False
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.
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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