Organization Theory And Design 12th Edition by Richard L. Daft – Test Bank

1. An organization’s _____ is the chosen environmental field of action.

  a.  domain

  b.  strategy

  c.  mission

  d.  policy

ANSWER:   a

RATIONALE:   Feedback: An organization’s domain is the chosen environmental field of action.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-01 – 04-01

NATIONAL STANDARDS:   United States – AACSB: Analytic

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Remember

2. Melissa works in the fashion industry. Her job is to research, by analyzing social media, the growing trends among youth. Her company designs and manufactures clothing based on her analysis. Melissa is a part of the _____ of the task environment.

  a.  industry sector

  b.  market sector

  c.  raw material sector

  d.  international sector

ANSWER:   b

RATIONALE:   Feedback: Melissa is a part of the market sector of the task environment. In the market sector, smart companies are keeping tabs on social media (tweets, Facebook) to see what customers and potential customers care about, gain rapid insight into trends, and learn what words to use in marketing.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-01 – 04-01

NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Apply

3. The _____ is a part of the task environment because of globalization and intense competition.

  a.  government sector

  b.  technology sector

  c.  international sector

  d.  natural sector

ANSWER:   c

RATIONALE:   Feedback: The international sector is a part of the task environment because of globalization and intense competition.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-01 – 04-01

NATIONAL STANDARDS:   United States – AACSB: Analytic

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Remember

4. A fast food chain in the United States, Simpson’s Kitchen, got its supply of chicken from a local farm. Its business was adversely affected when the country faced an epidemic of bird flu. The epidemic adversely affected Simpson’s Kitchen’s _____.

  a.  international environment

  b.  general environment

  c.  global environment

  d.  task environment

ANSWER:   d

RATIONALE:   Feedback: The epidemic adversely affected Simpson’s Kitchen’s task environment. The task environment typically includes the industry sector, raw materials sector, market sector, human resources sector, and international sector of an organization.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-01 – 04-01

NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Apply

5. Which of the following is a characteristic of the general environment?

  a.  It includes those sectors that will indirectly impact a firm.

  b.  It includes the raw materials and human resources sectors.

  c.  It includes sectors with which the organization interacts directly.

  d.  It includes sectors that are internally controlled by an organization.

ANSWER:   a

RATIONALE:   Feedback: The general environment includes those sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-02 – 04-02

NATIONAL STANDARDS:   United States – AACSB: Analytic

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Understand

6. Leo Burton is the CEO of a cigarette manufacturing company. He and his employees suffered a major loss when tobacco products were banned in his country. Leo’s organization was affected by changes in the _____.

  a.  technological environment

  b.  government sector

  c.  international sector

  d.  economic environment

ANSWER:   b

RATIONALE:   Feedback: Leo Burton and his employees suffered due to the ban of tobacco products by the government in his country. In the government sector, regulations influence every phase of organizational life.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-02 – 04-02

NATIONAL STANDARDS:   United States – AACSB: Reflective Thinking

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Apply

7. The sociocultural sector of an organization is concerned with issues such as:

  a.  the impact of the company’s products and policies on the environment.

  b.  strategies to be undertaken in times of adverse economic conditions.

  c.  the working conditions of workers hired by contractors.

  d.  trending issues on social media sites.

ANSWER:   c

RATIONALE:   Feedback: One significant element in the sociocultural sector is pressure from advocacy groups to improve working conditions for employees hired by contractors for large companies such as Walmart, Apple, and Amazon.

POINTS:   1

LEARNING OBJECTIVES:   ORGT.DAFT.16.04-02 – 04-02

NATIONAL STANDARDS:   United States – AACSB: Analytic

TOPICS:   The Organization’s Environment

KEYWORDS:   Bloom’s: Understand