Chapter 1.5 Test.

Question 1

What are the main elements of the internal environment?

Answer 1

Employees, Managers, Management style, Corporate culture and company policies.

Question 2

Employees.

Answer 2

Most important resource. It is important to hire appropriate employees. Businesses that provide a happy and productive workplace for their employees achieve high levels of production.

Question 3

Managers.

Answer 3

Every business needs effective management to succeed. The skills and knowledge of the managers in coordinating the businesses resources determine whether the objectives of the business are achieved.

Question 4

Management style.

Answer 4

Some managers value employee participation and assign tasks and responsibilities to those below them in the hierarchy. This management style results in productive employees. Some managers are very strict and are often feared by their employees, which results in workers not achieving their best.

Question 5

Corporate culture.

Answer 5

The belief, values, expectations, attitudes and behaviours of the people within the business. All these aspects combine to give a business its distinctive personality. This is known as corporate culture. This culture can be positive or negative.

Question 6

Company policies.

Answer 6

A company policy is an established set of broad guidelines to be followed by all employees when dealing with important areas of decision-making. These policies ensure that the employees will always be treated fairly during disciplining, promoting and compensating.