MGT212 Chapter 3: Managing the External Environment

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Questions and Answers

Which component addresses scientific and industrial innovations?

Social component

Technological component (correct)

Global component

Demographic component

What does the socio-cultural component primarily encompass?

Global economic issues and trade relations

Scientific innovations and technological advancements

Values, attitudes, and cultural trends (correct)

Barriers faced by minorities in the workplace

What describes the demographic component of the external environment?

Cultural values and traditions

Increasingly diverse workforce characteristics (correct)

The persistence of gender-wage gaps

Global market expansions

What is the glass ceiling phenomenon?

The barriers preventing women and minorities from top management Signup and view all the answers

Which of the following is an aspect of the social component?

Gender-wage gap discrepancies Signup and view all the answers

The global component encompasses issues associated with what?

Globalization and the world economy Signup and view all the answers

What does the socio-cultural component NOT include?

Demographic challenges in the workforce Signup and view all the answers

Which demographic change is noted as part of the new workforce?

It is more gender and racially diverse Signup and view all the answers

What is a key component of managing diversity within organizations?

Enabling all employees to realize their full potential Signup and view all the answers

What role does technology play in competitive advantage?

It facilitates the evolution of the information age Signup and view all the answers

Which step comes first in the innovation process?

Conceptualization Signup and view all the answers

What is the omnipotent view of management?

Managers are completely responsible for the success or failure of an organization. Signup and view all the answers

How does environmental uncertainty affect organizations?

It pertains to the degree of change and complexity in the environment Signup and view all the answers

What does the symbolic view of management suggest?

External forces play a significant role in an organization's success or failure. Signup and view all the answers

What does the degree of change in environmental components signify?

The dynamic or stable nature of the external environment Signup and view all the answers

What does the degree of environmental complexity refer to?

The number of components in the external environment Signup and view all the answers

What is NOT a step in the innovation process?

Market evaluation Signup and view all the answers

Which component of the external environment includes interest rates and inflation?

Economic component Signup and view all the answers

Which of the following best describes the demographic component of the external environment?

It concerns trends in population characteristics, such as age and income. Signup and view all the answers

Which option correctly identifies an aspect of technological components in management?

Technology serves as a foundation for competitive advantage Signup and view all the answers

Which statement best describes stakeholders?

Any constituencies affected by an organization's decisions Signup and view all the answers

What outcome does a stable external environment typically promote for organizations?

Consistent strategies and predictable outcomes Signup and view all the answers

What is a stakeholder audit?

Systematically identifying all parties affected by the company’s performance Signup and view all the answers

How is organizational culture best defined?

Shared values, principles, and traditions influencing member behavior Signup and view all the answers

How do external forces relate to the management of an organization?

They can significantly influence an organization's success or failure. Signup and view all the answers

Which of the following factors is typically classified under the economic component?

Inflation rates Signup and view all the answers

What characterizes strong organizational cultures?

Key values that are intensely held and widely shared Signup and view all the answers

What is the primary focus of the political/legal component in the external environment?

Political conditions and laws Signup and view all the answers

The shared values and traditions in an organization can influence which of the following?

How organizational members interact and perform Signup and view all the answers

Which aspect is NOT considered part of the political/legal component?

Market competition Signup and view all the answers

Which of the following is NOT a component of environmental complexity?

The organization’s profit margins Signup and view all the answers

What is the significance of understanding an organization’s stakeholders?

It helps in aligning business strategies with public perception Signup and view all the answers

Study Notes

Managerial Perspectives

Omnipotent View: Managers are considered directly responsible for the organization's success or failure.
Symbolic View: Success or failure largely attributed to factors beyond managers' control.

External Environment

Definition: Encompasses factors and forces outside the organization influencing its performance.

Components of External Environment

Economic: Interest rates, inflation, disposable income changes, stock market behaviors, and business cycle stages.
Demographic: Trends in population characteristics like age, race, gender, education, and family composition.
Political/Legal: Federal, state, and local laws, along with political conditions and stability.
Socio-cultural: Societal factors such as values, beliefs, lifestyle trends, and cultural attitudes.
Technological: Innovations in science and industry that impact organizational operations.
Global: Issues related to globalization and the world economy.

Workforce Characteristics: An increasingly larger, diverse, and older workforce emphasizing gender and ethnic diversity.
Equality Challenges: Persistent barriers for women and minorities in the workplace, including the Glass Ceiling, which hinders access to top management roles.
Gender-Wage Gap: Ongoing disparities in earnings between genders and obstacles to career advancement.

Technological Component

Information Age: Technology has made information a vital strategic resource for competitive advantage.
Innovation Process: Includes three stages:
- Conceptualization: Initial idea formation.
- Product Technology: Prototype development.
- Production Technology: Establishing a profitable production process.

Environmental Uncertainty

Definition: Pertains to the degree of change and complexity within an organization's external environment.
Dimensions:
- Degree of Change: Measurement of how stable or dynamic the environment is.
- Complexity: The number of external components impacting the organization and the extent of knowledge about those components.

Stakeholder Relationships

Stakeholders: Constituents in the external environment affected by organizational decisions and actions.
Stakeholder Audit: A systematic identification of all parties potentially impacted by the organization’s performance.

Organizational Culture

Definition: Shared values, principles, traditions, and operational methods that guide member behavior within the organization.
Strong Cultures: Cultures where key values are deeply held and widely embraced among members.

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Description

This quiz covers Chapter Three of MGT212: Organizational Management, focusing on how management views influence organizational success. Explore the omnipotent and symbolic perspectives on managerial responsibility in shaping the external environment.