1) Describe the four internal forces and why can they present challenges for
organizations?
Answer:
a. Labour (The Employee-Employer Relationship)
The ability to attract qualified workers and to extract maximum effort from them
can be
crucial to business success. However, navigating the labour relationship can be
difficult and
is fraught with risks. The context in which the labour relationship operates is a
highly complex
one. Workers are usually interested in maximizing the income they receive from
the sale
of their labour, whereas businesses usually desire to maximize profit. These two
objectives
can clash, creating conflicts that can have negative effects on productivity and
profits, as
well as the economy and society more generally.
b. Leadership (Effectively managing people)
There is no one perfect way to manage people. It can depend on a variety of
factors.
c. Structure
Organizational structure is a deliberately planned network or pattern of
relationships that exists among individuals in various roles or positions. This
includes the formal hierarchy of authority, the distribution or grouping of work
(for example, into departments) and the rules or procedures
that control and coordinate behaviour in the organization. The way work is
distributed can affect the success of the firm.
d. Strategy
Strategy involves using organizational resources and capabilities in the firm to
compete. The ability to generate a game plan to succeed is critical. Strategies may
need to be adapted as the organization adapts to changes in its external
environment.
Objective: LO1 - Identify the key internal forces that shape any business.
2) Compare and contrast the difference between the specific and general environments of
organizations.
Answer:
The specific sphere has been referred to as the environmental domain of the organization.
For example, changes in the international environment may be a common factor for all
organizations with, say, trade agreements affecting Canadian industry in general.
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
organizations?
Answer:
a. Labour (The Employee-Employer Relationship)
The ability to attract qualified workers and to extract maximum effort from them
can be
crucial to business success. However, navigating the labour relationship can be
difficult and
is fraught with risks. The context in which the labour relationship operates is a
highly complex
one. Workers are usually interested in maximizing the income they receive from
the sale
of their labour, whereas businesses usually desire to maximize profit. These two
objectives
can clash, creating conflicts that can have negative effects on productivity and
profits, as
well as the economy and society more generally.
b. Leadership (Effectively managing people)
There is no one perfect way to manage people. It can depend on a variety of
factors.
c. Structure
Organizational structure is a deliberately planned network or pattern of
relationships that exists among individuals in various roles or positions. This
includes the formal hierarchy of authority, the distribution or grouping of work
(for example, into departments) and the rules or procedures
that control and coordinate behaviour in the organization. The way work is
distributed can affect the success of the firm.
d. Strategy
Strategy involves using organizational resources and capabilities in the firm to
compete. The ability to generate a game plan to succeed is critical. Strategies may
need to be adapted as the organization adapts to changes in its external
environment.
Objective: LO1 - Identify the key internal forces that shape any business.
2) Compare and contrast the difference between the specific and general environments of
organizations.
Answer:
The specific sphere has been referred to as the environmental domain of the organization.
For example, changes in the international environment may be a common factor for all
organizations with, say, trade agreements affecting Canadian industry in general.
Test Bank for Karakowsky and Guriel, The Context of Business, 1e
Copyright © 2015 Pearson Canada Inc. 1
