Chapter16

Essentials of Organizational Behavior, 14e (Robbins/Judge)Chapter 16
Organizational Culture1) An organizations culture develops over time and is rooted in ________ to which employees are strongly committed.A) valuesB) tasksC) rewardsD) both A and BE) all A, B, and CAnswer:  AExplanation:  A) Organizational culture is a system of shared meanings or values that distinguish the organization from other organizations.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.2) Alessio’s boss doesn’t care whether Alessio works at home, at the office, or from his beach house. All he cares about is that the project is completed on time, on budget, and with exemplary quality. Which characteristic of organizational culture best describes this aspect of Alessio’s job?A) low risk takingB) high outcome orientationC) high attention to detailD) low aggressivenessE) high stabilityAnswer:  BExplanation:  B) Outcome orientation is the organizational culture characteristic that describes the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. Alessio’s boss has a high focus on outcome.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.1 Describe the common characteristics of organizational culture.3) Which of the following is not a characteristic of organizational culture?A) attention to detailB) innovation and risk takingC) process orientationD) team orientationE) outcome orientationAnswer:  CExplanation:  C) Seven primary characteristics seem to capture the essence of an organization’s culture: innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.4) Which of the following characteristics of an organization’s culture indicates the degree to which management decisions take into consideration the effect of outcomes on employees within the organization?A) attention to detailB) outcome orientationC) team orientationD) people orientationE) stabilityAnswer:  DExplanation:  D) People orientation indicates the degree to which management decisions take into consideration the effect of outcomes on people within the organization.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.5) “Stability” is one of the seven primary characteristics that capture the essence of an organization’s culture. It indicates the degree to which ________.A) employees are encouraged to be innovative and take risksB) management focuses on results or outcomes rather than on the techniques and processes used to achieve themC) management decisions take into consideration the effect of outcomes on people within the organizationD) work activities are organized around teams rather than individualsE) organizational activities emphasize maintaining the status quo in contrast to growthAnswer:  EExplanation:  E) Stability indicates the degree to which organizational activities emphasize maintaining the status quo in contrast to growth.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.6) The key characteristic of organizational culture that addresses the degree to which people are competitive rather than easygoing is termed ________.A) assertivenessB) team orientationC) aversivenessD) risk takingE) aggressivenessAnswer:  EExplanation:  E) Aggressiveness describes the degree to which people are aggressive and competitive rather than easygoing.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.7) Which of the following statements distinguishes between organizational culture and job satisfaction?A) Job satisfaction is descriptive, whereas organizational culture is evaluative.B) Organizational culture is static, whereas job satisfaction is dynamic.C) Job satisfaction is immeasurable, whereas organizational culture is measurable.D) Organizational culture is descriptive, whereas job satisfaction is evaluative.E) Organizational culture measures how employees feel about an organization’s expectations, whereas job satisfaction is concerned about how employees perceive the organization’s culture.Answer:  DExplanation:  D) The concept of organizational culture is concerned with how employees perceive the characteristics of an organization’s culture, not whether they like them, and is therefore a descriptive term. On the other hand, the concept of job satisfaction seeks to measure how employees feel about the organization’s expectations, reward practices and therefore is an evaluative term.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.8) Which of the following statements is true regarding an organization’s culture?A) Organizational culture is evaluative rather than descriptive.B) Large organizations rarely have subcultures.C) A dominant culture expresses the core values shared by a majority of the organization’s members.D) A strong culture increases employee turnover.E) Subcultures and dominant cultures must not share any common values.Answer:  CExplanation:  C) Organizational culture is descriptive. Most large organizations have a dominant culture and numerous subcultures. A dominant culture expresses the core values shared by a majority of the organization’s members. A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents. Subcultures tend to develop in large organizations to reflect common problems or experiences members face in the same department or location. The purchasing department can have a subculture that includes the core values of the dominant culture plus additional values unique to members of that department.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.9) Cultures that tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location are often called ________.A) micro-culturesB) subculturesC) divisional culturesD) microcosmsE) counter culturesAnswer:  BExplanation:  B) Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. The purchasing department can have a subculture that includes the core values of the dominant culture plus additional values unique to members of the purchasing department.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.10) Which of the following statements is not true regarding subcultures?A) Subcultures include core values of the organization.B) Subcultures typically exist within a department.C) When we talk about an organization’s culture, we are referring to its subculture.D) If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful.E) Subcultures influence members’ behavior.Answer:  CExplanation:  C) Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subcultures include the core values of the dominant culture plus additional values unique to the respective department. If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful. Subcultures influence members’ behavior. When we talk about an organization’s culture, we are referring to its dominant culture.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.11) The values that convey an organization’s culture and are widely accepted throughout the organization are known as ________.A) foundational valuesB) core valuesC) shared valuesD) institutional valuesE) unique valuesAnswer:  BExplanation:  B) The dominant culture includes the core values, the primary or dominant values that are accepted throughout the organization.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.12) Which of the following is most likely to be the indicator of a strong organizational culture?A) high employee turnoverB) narrow span of controlC) employees’ diverse views of organization’s missionD) presence of several subculturesE) widely shared valuesAnswer:  EExplanation:  E) In a strong culture, the organization’s core values are both intensely held and widely shared. Narrow span of control and presence of several subcultures, do not indicate a strong culture. If most employees have the same opinions about the organization’s mission and values, the culture is strong; if opinions vary widely, the culture is weak. A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.13) Which of the following is most likely to result from a strong organizational culture?A) low employee turnover B) low employee satisfactionC) low organizational commitmentD) low agreement about what the organization representsE) low behavioral control resulting from the climate within the organizationAnswer:  AExplanation:  A) A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave. Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.14) Both ________ and strong culture achieve the same end result of predictability, orderliness, and consistency.A) high formalizationB) low departmentalizationC) wide span of controlD) low work specializationE) people orientationAnswer:  AExplanation:  A) High formalization creates predictability, orderliness, and consistency. A strong culture achieves the same end without the need for written documentation. Therefore, we should view formalization and culture as two different roads to a common destination.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.15) Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict time lines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented, and the finance department emphasizes attention to detail. The organizational culture of Trends Inc. values aggressiveness, innovation, and risk taking. These characteristics express its ________.A) autocratic cultureB) subcultureC) highly formalized cultureD) reflective cultureE) dominant cultureAnswer:  EExplanation:  E) A dominant culture expresses the core values shared by a majority of the organization’s members. When we talk about an organization’s culture, we are referring to its dominant culture, which gives an organization its distinct personality.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.1 Describe the common characteristics of organizational culture.16) Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict time lines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented, and the finance department emphasizes attention to detail. Aggressiveness, innovation, and risk taking are the ________ of the culture of Trends Inc.A) foundational valuesB) institutional traitsC) core valuesD) significant traitsE) unique valuesAnswer:  CExplanation:  C) The dominant culture includes the core values, the primary or dominant values that are accepted throughout the organization. In this example, aggressiveness, innovation, and risk taking are the core values of the organizational culture.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.1 Describe the common characteristics of organizational culture.17) In addition to the organizational culture, the finance department emphasizes attention to detail. In this example, attention to detail is a part of the ________ of the organization.A) core valuesB) significant traitsC) dominant cultureD) foundational valuesE) subcultureAnswer:  EExplanation:  E) Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subculture includes the core values of the dominant culture plus additional values unique to members of the respective department.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.1 Describe the common characteristics of organizational culture.18) Trends Inc. is an apparel company. To keep up with the latest changes in the fashion industry, the company has to come up with innovative designs and follow strict time lines. The culture of the company values aggressiveness, innovation, and risk taking. The members of the organization accept these cultural values. They know exactly what is expected of them and these expectations go a long way in shaping their behavior. In addition to this, the culture of the marketing department is outcome oriented, and the finance department emphasizes attention to detail. Based on the information in the example, we can say that Trends Inc. ________.A) is a highly centralized organizationB) is a virtual organizationC) has a strong cultureD) is a highly formalized organizationE) is a matrix organizationAnswer:  CExplanation:  C) Based on the information in the example, we can say that Trends Inc. has a strong culture. In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behavior. If an organization has a strong culture then the members of the organization know exactly what is expected of them, and these expectations go a long way in shaping their behavior.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.1 Describe the common characteristics of organizational culture.19) A strong culture should reduce employee turnover because it results in ________.A) a highly centralized organizationB) narrow spans of controlC) cohesiveness and organizational commitmentD) a highly formalized organizationE) an outcome-oriented organizationAnswer:  CExplanation:  C) A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.20) Organizational characteristics can be used to predict attitudes and behaviors of the people within the organization.Answer:  TRUEExplanation:  Organizations, like people, can be characterized as, for example, rigid, friendly, warm, innovative, or conservative. These traits, in turn, can then be used to predict attitudes and behaviors of the people within these organizations.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.21) Aggressiveness is one of the seven primary characteristics that capture the essence of an organization’s culture. It indicates the degree to which employees are encouraged to be innovative and take risks.Answer:  FALSEExplanation:  Aggressiveness indicates the degree to which people are aggressive and competitive rather than easygoing. Innovation and risk taking indicates the degree to which employees are encouraged to be innovative and take risks.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.22) Attention to detail indicates the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.Answer:  FALSEExplanation:  Attention to detail indicates the degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation indicates the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.23) Subcultures act to undermine the dominant culture.Answer:  FALSEExplanation:  Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subcultures include the core values of the dominant culture plus additional values unique to the respective departments.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.24) A strong culture creates an internal climate of high behavioral control.Answer:  TRUEExplanation:  In a strong culture, the organization’s core values are both intensely held and widely shared. The high degree of sharedness and intensity creates an internal climate of high behavioral control.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.25) A strong culture tends to reduce employee turnover.Answer:  TRUEExplanation:  A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.26) What are the seven prime characteristics that capture the essence of an organization’s culture?Answer:  The seven prime characteristics that capture the essence of an organization’s culture are:1. Innovation and risk taking: The degree to which employees are encouraged to be innovative and take risks.2. Attention to detail: The degree to which employees are expected to exhibit precision, analysis, and attention to detail.3. Outcome orientation: The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.4. People orientation: The degree to which management decisions take into consideration the effect of outcomes on people within the organization.5. Team orientation: The degree to which work activities are organized around teams rather than individuals.6. Aggressiveness: The degree to which people are aggressive and competitive rather than easygoing.7. Stability: The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.27) Compare and contrast dominant culture and subculture.Answer:  Organizational culture represents a common perception the organization’s members hold. A dominant culture expresses the core values shared by a majority of the organization’s members. Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subcultures include the core values of the dominant culture plus additional values unique to members of the respective department. If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful. It is the “shared meaning” aspect of culture that makes it such a potent device for guiding and shaping behavior.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.28) Describe the significant characteristics of a strong culture.Answer:  In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behavior because the high degree of sharedness and intensity creates an internal climate of high behavioral control. Employees of the organization that has a strong culture know exactly what is expected of them, and these expectations go a long way in shaping their behavior. A strong culture should reduce employee turnover, because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.1 Describe the common characteristics of organizational culture.29) Ethical Work Climate reflects the ________ of the organization and shapes the ________ of its members.A) political viewpoints; citizenship behaviorsB) citizenship behaviors; abilitiesC) abilities; true valuesD) true values; ethical decision makingE) ethical decision making; political viewpointsAnswer:  DExplanation:  D) EWC reflects the true values of the organization and shapes the ethical decision making of its members.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.30) Which of the following is not one of the five prevalent categories of the ethical climate index?A) institutionalB) caringC) independenceD) law/codeE) rulesAnswer:  AExplanation:  A) Institutional refers to a type of structure; the fifth element is instrumental.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.31) In which of the prevalent categories of ECI might a manager frame their decision making around the assumption that employees are motivated by self-interest?A) instrumentalB) caringC) independenceD) law/codeE) rulesAnswer:  AExplanation:  A) In an instrumental culture, motivations are determined by what is in the best interest of the party who is acting.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.32) Which of the following statements is true regarding the functions of culture in an organization?A) It hinders the generation of commitment to something larger than individual self-interest.B) It conveys a sense of identity for organization members.C) It reduces the stability of the social system.D) It reduces distinctions between one organization and others.E) It does not affect employees’ attitudes and behavior.Answer:  BExplanation:  B) Culture facilitates the generation of commitment to something larger than individual self-interest. It conveys a sense of identity for organization members. Culture has a boundary-defining role: it creates distinctions between one organization and others. It enhances the stability of the social system. Culture is the social glue that helps hold the organization together by providing standards for what employees should say and do. It is a sense-making and control mechanism that guides and shapes employees’ attitudes and behavior.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.33) The lack of frequent face-to-face contact in ________ organizations makes establishing a common set of norms very difficult.A) highly formalizedB) boundarylessC) virtualD) matrixE) highly centralizedAnswer:  CExplanation:  C) In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.34) Which of the following statements is true regarding the establishment of organizational culture and its effects on the organization?A) Today’s trend toward decentralized organizations makes it easier to establish a strong culture.B) In a virtual organization, a strong culture can be established quickly and easily.C) Employees organized in teams always show greater allegiance to the values of the organization as a whole than to their team and its values.D) Culture acts as a control mechanism and guides the behavior of employees.E) Cultures reduce the stability of the social system.Answer:  DExplanation:  D) Today’s trend toward decentralized organizations makes establishing a strong culture more difficult. In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult. When formal authority and control systems are reduced, culture’s shared meaning points everyone in the same direction. However, employees organized in teams may show greater allegiance to their team and its values than to the values of the organization as a whole. Culture enhances the stability of the social system and acts as a control mechanism that guides and shapes employees’ attitudes and behavior.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.35) Janice works for a pet store where everyone is committed to the happiness of the animals. Often employees, bosses and hourly workers alike, come into the store “off the clock” and spend time training the animals. Everyone loves the store, the animals, and their jobs. This attitude of her coworkers inspires Janice to do her best. Based on this information, we can say that Janice is experiencing the effects of ________.A) centralizationB) organizational climateC) high departmentalizationD) high formalizationE) high work specializationAnswer:  BExplanation:  B) Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.36) A(n) ________ organization is an organization that takes on a life of its own, apart from its founders or members and is valued for itself and not for the goods or services it produces.A) virtualB) matrixC) teamD) institutionalizedE) centralizedAnswer:  DExplanation:  D) An institutionalized organization is an organization that takes on a life of its own, apart from its founders or members and is valued for itself and not for the goods or services it produces.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.37) According to the ECI, the categories of caring, independence, rules, and law/code can influence an organization in all of the following ways except________.A) reduce employee turnover intentionsB) reduce workplace bullyingC) reduce employee theftsD) reduce employee conflictE) increase employee citizenship behaviorsAnswer:  EExplanation:  E) While focusing on these four categories has been shown to reduce deviant and dysfunctional behaviors, there is no indication that they actually work to promote the opposite.Diff: 3AACSB:  Ethical understanding and reasoningQuest. Category:  SynthesisLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.38) Culture is most likely to be a liability when ________.A) the employees of the organization are highly skilledB) the organization’s environment is dynamicC) the organization’s management is highly efficientD) the organization is highly centralizedE) the organization scores low on the degree of formalizationAnswer:  BExplanation:  B) Culture is a liability when the shared values are not in agreement with those that further the organization’s effectiveness. This is most likely when an organization’s environment is dynamic, undergoing rapid change, and its entrenched culture may no longer be appropriate.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.39) Consistency of behavior is an asset to an organization when the organization ________.A) has an aggressive cultureB) encourages innovation and risk takingC) is highly departmentalizedD) has an employee oriented cultureE) operates in a stable environmentAnswer:  EExplanation:  E) Consistency of behavior is an asset to an organization when the organization operates in a stable environment. But in a dynamic environment, it becomes a burden and makes it difficult for the organization to respond to changes.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.40) In recent years, ________ has become the primary concern in acquisitions and mergers.A) cultural compatibilityB) employee diversityC) financial advantageD) product synergyE) legal complicationAnswer:  AExplanation:  A) Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern. All things being equal, whether the acquisition actually works seems to have more to do with how well the two organizations’ cultures match up.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.41) ________ refers to practices that can be maintained over very long periods of time.A) Laws/codesB) RulesC) SustainabilityD) Corporate ResponsibilityE) ErosionAnswer:  CExplanation:  C) Sustainability refers to practices that can be maintained over very long periods of time because the tools or structures that support the practices are not damaged by the processes.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.42) Lynn wants to create a sustainable employee recognition program for her office. In keeping with the concepts of sustainability, which of the following is mostlikely to be successful?A) Awarding 100 dollars to the “Employee of the Month”B) Having an employee appreciation lunch every two weeksC) Having an employee appreciation lunch the last Friday of the monthD) Having employees write five appreciation cards to coworkers every monthE) Giving an extra week of vacation to the “Employee of the Year”Answer:  CExplanation:  C) For something to be sustainable, it must be maintained over long periods of time and not be harmed by the processes. Choices B and D have process issues in that the processes are overly taxing and tedious. Choices A and E and not sustainable over long periods of time due to the potential impact on the budget. Choice C has a simple process and is easy to sustain over time.Diff: 3AACSB:  Application of knowledgeQuest. Category:  ApplicationLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.43) The most innovative companies are often characterized by all of the following except________.A) vision-drivenB) collaborativeC) entrenched culturesD) unconventionalE) opennessAnswer:  CExplanation:  C) Innovative companies are characterized by accelerating cultures, not entrenched cultures.Diff: 1AACSB:  Application of knowledgeQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.44) In virtual organizations, it is difficult to establish a common set of norms.Answer:  TRUEExplanation:  In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.45) A strong culture tends to be a liability for an organization when its environment is undergoing rapid change.Answer:  TRUEExplanation:  Culture is a liability when the shared values are not in agreement with those that further the organization’s effectiveness. This is most likely when an organization’s environment is undergoing rapid change and its entrenched culture may no longer be appropriate.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.46) Today’s trend toward decentralized organizations makes it easier to establish a strong culture.Answer:  FALSEExplanation:  Today’s trend toward decentralized organizations makes culture more important than ever, but ironically it also makes establishing a strong culture more difficult.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.47) Even if a company is a more mature company, its culture can still make it innovative.Answer:  TRUEExplanation:  Companies such as Intuit have shown that despite being a mature company, their culture of innovation allows them to still compete in the creative and innovative market.Diff: 1AACSB:  Application of knowledgeQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.48) Social sustainability practices address the ways that social systems affect an organization in the short term.Answer:  FALSEExplanation:  Social sustainability practices address the ways social systems are affected by an organization’s actions over time, and in turn, how changing social systems may affect the organization.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.49) According to the ECI, organizations progress through different categories as their business life cycle progresses.Answer:  TRUEExplanation:  As an organization faces new and differing challenges over the span of its life, it is natural that its ethical issues and how it responds to those issues will change.Diff: 1AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.50) Having a strong, positive company culture is essential to having a successful business.Answer:  FALSEExplanation:  While it is helpful to have a strong, positive culture, there are numerous examples, such as with Dish Network, where a highly successful company has a weak, negative culture.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.51) Coherence around negativity and dysfunctional management systems in a corporation can pro-duce downward forces that are equally as powerful as coherence around a positive set of values and attitudes.Answer:  TRUEExplanation:  Culture is just as capable of entrenching negativity as it is positivity.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.52) Regarding the ECI, please differentiate between the categories of law/code and rules.Answer:
Law and code climates require managers and employees to use an external standardized moral compass such as a professional code of conduct for norms, while rules climates tend to operate by internal standardized expectations from, perhaps, an organizational policy manual.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ApplicationLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.53) Describe the functions of organizational culture.Answer:  Organizational culture performs a number of functions within an organization. First, it has a boundary-defining role. That is, it creates distinctions between one organization and others. Second, it conveys a sense of identity for organization members. Third, culture facilitates the generation of commitment to something larger than one’s individual self-interest. Fourth, it enhances social system stability. Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do. Finally, culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behavior of employees.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.54) Describe the various situations under which culture acts as a liability.Answer:  The various situations under which culture acts as a liability are:a) Institutionalization: When an organization undergoes institutionalization and becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—it takes on a life of its own, apart from its founders or members. It doesn’t go out of business even if its original goals are no longer relevant. Acceptable modes of behavior become largely self-evident to members, and although this isn’t entirely negative, it does mean behaviors and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization’s culture an end in itself.b) Barriers to change: Culture is a liability when the shared values are not in agreementwith those that further the organization’s effectiveness. This is most likely when an organization’s environment is undergoing rapid change and its entrenched culture may no longer be appropriate.c) Barriers to diversity: By limiting the range of acceptable values and styles, strong cultures put considerable pressure on employees to conform.d) Barriers to acquisitions and mergers: Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern.e) Strengthening Dysfunctions: Coherence around negativity and dysfunctional management systems in a corporation can produce downward forces that are equally powerful. Negative attitudes in groups add to negative outcomes, suggesting a powerful influence of culture on individuals.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.55) Which of the following does not work to create culture?A) Founder hires only employees who think as he/she does.B) Founder socializes employees to think and feel in similar ways.C) Founder acts in ways which allow employees to identify with his/her beliefs.D) Both A and BE) All A, B, and CAnswer:  EExplanation:  E) When an organization succeeds, the founders’ personality becomes embedded in the culture.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.56) The ultimate source of an organization’s culture is ________.A) its top managementB) its environmentC) the country in which the organization operatesD) its foundersE) the sociocultural backgrounds of its employeesAnswer:  DExplanation:  D) An organization’s customs, traditions, and general way of doing things are largely due to what it has done before and how successful it was in doing it. Because of this, the ultimate source of an organization’s culture tends to be its founders.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.57) The selection process helps sustain the organization’s culture by ________.A) encouraging discussion about normsB) hiring candidates who fit well within the organizationC) selecting employees who deserve to be promotedD) developing performance evaluation criteriaE) rewarding conformity of skillsAnswer:  BExplanation:  B) The selection process helps sustain the organization’s culture by hiring candidates who fit well within the organization. Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.58) Your first day at work is part of the ________ stage of socialization.A) orientationB) prearrivalC) encounterD) metamorphosisE) post-encounterAnswer:  CExplanation:  C) On entry into the organization, the new member enters the encounter stage and confronts the possibility that expectations—about the job, coworkers, the boss, and the organization in general—may differ from reality. If expectations were fairly accurate, the encounter stage merely cements earlier perceptions.Diff: 2AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.59) You are new to an organization and do not really know what to expect about the socialization process. You are a recent M.B.A. and have an undergraduate degree in computer science. Your new firm is a software development company with an emphasis in the health care industry. Your hiring process includes campus interviews, a day-long trip for an interview at the company, an offer phone call and letter, and some promotional material sent via the mail. When you arrive for your first day at work, you spend half a day in an orientation session that is conducted by the human resources department, where you complete paperwork and receive a company handbook. Then you spend the rest of the day with your supervisor, who gives you a tour, introduces you to your coworkers, and explains your first project. After that, you begin working and getting to know the others in the company. You find that in most respects, your experience fits your expectations, but in some ways you are surprised by realities that you hadn’t expected. None of these surprises is too difficult to accept, so you eventually begin to feel at home and happy with your new job. The information that you receive during the interviewing and hiring process is a part of the ________ stage of employee socialization.A) preencounterB) prearrivalC) encounterD) metamorphosisE) post-encounterAnswer:  BExplanation:  B) The prearrival stage explicitly recognizes that each individual arrives with a set of values, attitudes, and expectations about both the work to be done and the organization. One way to capitalize on the importance of prehire characteristics in socialization is to use the selection process to inform prospective employees about the organization as a whole.Diff: 3AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.60) The ________ stage of the socialization process explicitly recognizes that each individual that the organization comes across during the selection process has a set of values, attitudes, and expectations about both the work to be done and the organization.A) post-encounterB) prearrivalC) metamorphosisD) preencounterE) post-arrivalAnswer:  BExplanation:  B) The prearrival stage explicitly recognizes that each individual arrives with a set of values, attitudes, and expectations about both the work to be done and the organization.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.61) When you begin to notice things that are not as per your expectation, you are in the ________ stage of socialization.A) orientationB) prearrivalC) encounterD) metamorphosisE) post-arrivalAnswer:  CExplanation:  C) On entry into the organization, the new member enters the encounter stage and confronts the possibility that expectations, about the job, coworkers, the boss, and the organization in general, may differ from reality.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.62) Which of the following steps could your supervisor take to best help you develop a commitment to your new company?A) encourage you to work independently at first to learn the ropesB) explain the rules and policies of the organization to youC) discourage you from putting too much emphasis on your perception of the organizationD) encourage you to look carefully at your own assumptions, which may be biasedE) encourage you to develop friendship ties within the organizationAnswer:  EExplanation:  E) It is important to encourage the new comer to develop friendship ties in the organization because newcomers are more committed when friends and coworkers help them “learn the ropes.”Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.63) When you start to accept the differences between your expectations and the reality of the organization, you move into the ________ stage of socialization.A) prearrivalB) post-arrivalC) acceptanceD) metamorphosisE) post-encounterAnswer:  DExplanation:  D) To work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.64) During the ________ stage, a new employee compares her expectations with the realities in the organization.A) prearrival B) encounterC) metamorphosis D) post-arrivalE) post-encounterAnswer:  BExplanation:  B) On entry into the organization, the new member enters the encounter stage and confronts the possibility that expectations, about the job, coworkers, the boss, and the organization in general, may differ from reality.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.65) The ________ process helps candidates learn about the organization and if employees perceive a conflict between their values and those of the organization, they can remove themselves from the applicant pool.A) orientationB) trainingC) performance evaluationD) selectionE) institutionalizationAnswer:  DExplanation:  D) The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.66) ________ is a process that helps new employees adapt to the prevailing organizational culture.A) SatisficingB) Reciprocal interdependenceC) SocializationD) FormalizationE) Social loafingAnswer:  CExplanation:  C) No matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization’s culture and can disrupt beliefs and customs already in place. The process that helps new employees adapt to the prevailing culture is socialization.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.67) The process of socialization consists of three stages. Which of the following is one of these three stages?A) prearrivalB) preencounterC) evaluationD) post-arrivalE) post-encounterAnswer:  AExplanation:  A) We can think of socialization as a process with three stages: prearrival, encounter, and metamorphosis. This process has an impact on the new employee’s work productivity, commitment to the organization’s objectives, and eventual decision to stay with the organization.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.68) Identify the correct order in the socialization process.A) encounter, metamorphosis, post-encounterB) prearrival, arrival, evaluationC) prearrival, arrival, post-arrivalD) prearrival, encounter, metamorphosisE) metamorphosis, preencounter, arrivalAnswer:  DExplanation:  D) We can think of socialization as a process with three stages: prearrival, encounter, and metamorphosis.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.69) Elsa joined her new law firm expecting to participate in exciting environmental law cases, and cutting edge research. After one month at the firm she still hasn’t been assigned a case and spends most of her time filing standardized appeals for title disputes with insurance companies. In which stage of the socialization process is Elsa?A) prearrivalB) encounterC) metamorphosisD) post-encounterE) post-arrivalAnswer:  BExplanation:  B) On entry into the organization, the new member enters the encounter stage and confronts the possibility that expectations, about the job, coworkers, the boss, and the organization in general, may differ from reality. Elsa is in the encounter stage.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.70) If there is a basic conflict between the individual’s expectations and the reality of working in an organization, the employee is most likely to be disillusioned and quit during the ________ stage of socialization.A) prearrivalB) post-arrivalC) encounterD) metamorphosisE) post-encounterAnswer:  CExplanation:  C) On entry into the organization, the new member enters the encounter stage and confronts the possibility that expectations—about the job, coworkers, the boss, and the organization in general—may differ from reality. If there occurs a mismatch between the expectations of the new member and the reality, then the new member may become disillusioned enough with the reality to resign.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.71) During the socialization process, to work out any problems discovered during the encounter stage, the new member changes or goes through the ________ stage.A) post-arrivalB) metamorphosisC) post-encounterD) analysisE) evaluationAnswer:  BExplanation:  B) During the socialization process, to work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.72) New employees are usually comfortable with their organizations by the end of the ________ stage of socialization.A) encounterB) post-arrivalC) establishmentD) metamorphosisE) adaptationAnswer:  DExplanation:  D) To work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage, by the end of which they are usually comfortable in their new position.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.73) For newcomers to an organization, the level of support they receive generally decreases over the first few weeks. Why is this?A) Everyone is trying to protect their environment.B) Managers are trying to see if the employee can make it on their own.C) Everyone is too busy to help the new person.D) The organization simply returns to “business as usual.”E) The new employee’s incoming job satisfaction should sustain them.Answer:  DExplanation:  D) While some individuals may not want to help the new employee for whatever reason, generally after the metamorphosis stage, those within the organization simply go back to their jobs and the newcomer is now left with having to find their own way.Diff: 2AACSB:  Application of knowledgeQuest. Category:  ApplicationLO:  16.3 Identify the factors that create and sustain an organization’s culture.74) In the socialization process, the period of learning that occurs before a new employee joins an organization is termed the encounter stage.Answer:  FALSEExplanation:  The prearrival stage explicitly recognizes that each individual arrives with a set of values, attitudes, and expectations about both the work to be done and the organization.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.75) During the metamorphosis stage of the socialization process, a new employee compares her expectations—about the job, coworkers, the boss, and the organization in general—with the reality in the organization.Answer:  FALSEExplanation:  During the encounter stage of the socialization process, a new employee compares her expectations—about the job, coworkers, the boss, and the organization in general—with the reality in the organization. To work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.76) The more management relies on formal, collective, sequential, fixed, and serial socialization programs and emphasizes divestiture, the more likely newcomers’ differences will be stripped away and replaced by standardized predictable behaviors.Answer:  TRUEExplanation:  The more management relies on formal, collective, sequential, fixed, and serial socialization programs and emphasizes divestiture, the more likely newcomers’ differences will be stripped away and replaced by standardized predictable behaviors. These institutional practices are common in police departments, fire departments, and other organizations that value rule following and order.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.77) How does organizational culture develop?Answer:  An organization’s current customs, traditions, and general way of doing things are largely due to what it has done before and the degree of success it has had with those endeavors. The founders of an organization traditionally have a major impact on that organization’s early culture. They have a vision of what the organization should be. The small size that typically characterizes new organizations further facilitates the founders’ imposition of their vision on all organizational members. The process of culture-creation occurs in three ways.a) First, founders only hire and keep employees who think and feel the way they do.b) Second, they indoctrinate and socialize these employees to their way of thinking and feeling.c) And finally, the founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.When the organization succeeds, the founders’ vision becomes seen as a primary determinant of that success. At this point, the founders’ entire personalities become embedded in the culture of the organization.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.78) One of the main ways that culture is created and maintained within an organization is for the founder to only hire and keep employees who think and feel the same as he/she does. Discuss both the pros and cons of this idea and offer an opinion as to why this system can be effective.Answer:  Responses will vary but should include statements such as shared vision, potential discrimination, lack of diversity, reduced conflict, and such.Diff: 3AACSB:  Ethical understanding and reasoningQuest. Category:  Critical ThinkingLO:  16.3 Identify the factors that create and sustain an organization’s culture.79) Describe the significance of selection in the context of maintaining the organizational culture.Answer:  The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. The final decision, because it’s significantly influenced by the decision maker’s judgment of how well the candidates will fit into the organization, identifies people whose values are essentially consistent with at least a good portion of the organization’s. Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool. Selection thus becomes a two-way street, allowing employer or applicant to avoid a mismatch and sustaining an organization’s culture by selecting out those who might attack or undermine its core values.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.80) Describe the three stages involved in the process of socialization.Answer:  The process that helps new employees adapt to the prevailing culture is socialization. The three stages of socialization are prearrival, encounter, and metamorphosis.a) The prearrival stage recognizes that each individual arrives with a set of values, attitudes, and expectations. These cover both the work to be done and the organization.b) Upon entry into the organization, the new member enters the encounter stage. Here, the individual confronts the possible dichotomy between her expectations and reality.c) Finally, the new member must work out any problems discovered during the encounter stage. This may mean going through changes—hence, this is called the metamorphosis stage.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.81) Explain the primary methods of maintaining an organization’s culture.Answer:  Once a culture is in place, there are practices within the organization that act to maintain it by giving employees a set of similar experiences. Three forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods.a) Selection: Selection can ensure the hiring of people who have values essentially consistent with those of the organization, or at least a good portion of those values. In addition, the selection process provides information to applicants about the organization. Candidates learn about the organization and, if they perceive a conflict between their values and those of the organization, they can self-select themselves out of the applicant pool.b) Top management: In addition to selection, the actions of top management also have a major impact on the organization’s culture. Through what they say and how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable; how much freedom managers should give their employees; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like.c) Socialization: Finally, no matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization’s culture. Because they are unfamiliar with the organization’s culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organization will, therefore, want to help new employees adapt to its culture. This adaptation process is called socialization.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.3 Identify the factors that create and sustain an organization’s culture.82) The regular distribution of lollipops, toys, or treats every Friday is an example of a ________ that helps reinforce Nunya’s culture.A) story B) ritual C) material symbolD) protective mechanismE) narrationAnswer:  BExplanation:  B) Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important, and which people are expendable.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.4 Show how culture is transmitted to employees.83) Nunya employees are allowed to dress informally. This is an example of a ________ through which organizational culture is transmitted.A) story B) ritualC) material symbol D) symbolic act E) toolAnswer:  CExplanation:  C) Material symbols convey to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate. Few examples of material symbols include the size of offices, the elegance of furnishings, executive perks, and attire.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.4 Show how culture is transmitted to employees.84) Which of the following is not a means of transmitting culture within an organization?A) storiesB) people orientationC) rituals D) languageE) material symbolsAnswer:  BExplanation:  B) Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.85) ________ typically contain(s) a narrative of events about the organization’s founders, rule breaking, or reactions to past mistakes.A) StoriesB) Material symbolsC) RitualsD) LanguageE) Corporate chantsAnswer:  AExplanation:  A) Stories circulate through organizations. They typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.86) ________ help employees understand the history and past actions of an organization and explain and legitimate current practices by anchoring the present in the past.A) StoriesB) Material symbolsC) Rituals D) Organization-specific termsE) Corporate chantsAnswer:  AExplanation:  A) Stories typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and explain and legitimate current practices.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.87) Nunya is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who “got lucky” and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours. Informing employees about the founders is an example of which technique for transmitting culture?A) storiesB) material symbolsC) languageD) ritualsE) corporate chantsAnswer:  AExplanation:  A) Stories circulate through organizations. They typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and explain and legitimate current practices.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.4 Show how culture is transmitted to employees.88) Phil is new at JPS Corp., but after a week he already knows that the founder of the corporation started the business in his garage with only $4,000 and one client. This information was most likely transmitted to Phil by way of ________.A) storiesB) material symbolsC) ritualsD) languageE) corporate chantsAnswer:  AExplanation:  A) Phil most likely knows this legend through the passing of stories. Stories circulate through organizations. They typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, and organizational coping.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.4 Show how culture is transmitted to employees.89) Company chants are examples of ________.A) ritualsB) material symbols C) storiesD) company policiesE) business strategiesAnswer:  AExplanation:  A) Company chants are examples of rituals. Rituals are repetitive sequences of activities that express and reinforce the key values of the organization—what goals are most important, which people are important, and which people are expendable. Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.90) Which of the following is not an example of stories?A) how the new standard operating procedures will be implementedB) how the founders started the companyC) how the workforce grew from three to three hundred in one yearD) how the company had to cut one thousand employees last yearE) how one of its post popular products was inventedAnswer:  AExplanation:  A) Stories circulate through organizations. They typically contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, and organizational coping. The method of implementation of operating procedures is not considered a story.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.91) Alcoa headquarters has few individual offices, even for senior executives. The space is essentially made up of cubicles, common areas, and meeting rooms. This informality conveys to employees that Alcoa values ________.A) autocracyB) competitivenessC) rigidityD) equalityE) formalizationAnswer:  DExplanation:  D) The informality at the Alcoa headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.92) Which of the following act(s) as a common denominator to unite members of a given culture or subculture?A) mechanistic organizational structureB) 360 degree appraisalsC) jargons and acronyms that are specific to the organizationD) bureaucratic organizational structureE) unity of commandAnswer:  CExplanation:  C) Many organizations and subunits within them use language to help members identify with the culture, attest to their acceptance of it, and help preserve it. New employees may at first be overwhelmed by acronyms and jargon, that, once assimilated, act as a common denominator to unite members of a given culture or subculture.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.93) Which of the following is not a message conveyed by material symbols?A) organizational hierarchyB) top management’s egalitarianismC) the marketing strategy of the organizationD) appropriate risk-taking behaviorE) appropriate authoritarian behaviorAnswer:  CExplanation:  C) Material symbols such as the size of offices, the elegance of furnishings, executive perks, and attire, convey to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate, such as risk taking, conservative, authoritarian, participative, individualistic, or social. Marketing strategy of the organization is not conveyed by material symbols.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.94) Material symbols convey to employees the degree of egalitarianism that is desired by top management.Answer:  TRUEExplanation:  Material symbols are what conveys to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.95) Paid sabbaticals can be a symbol of an organizations culture.Answer:  TRUEExplanation:  The perks of an organization, such as on-site healthcare or paid sabbaticals, can become symbols of the organization’s culture.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.96) What are the various ways in which the organizational culture can be transmitted to the employees?Answer:  Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language.a) Stories: Stories contain a narrative of events about the organization’s founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and provide explanations and legitimacy for current practices.b) Rituals: Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important and which are expendable.c) Material symbols: The layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. These material symbols convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of behavior that are appropriate.d) Language: Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in doing so, help to preserve it. Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business. New employees are frequently overwhelmed with acronyms and jargon, that, once assimilated, acts as a common denominator that unites members of a given culture or subculture.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.4 Show how culture is transmitted to employees.97) An organizational culture most likely to shape high ethical standards among its members is one that ________.A) is low in risk toleranceB) is high in aggressivenessC) focuses only on outcomesD) takes a short-term perspectiveE) balances the rights of multiple stakeholdersAnswer:  EExplanation:  E) The organizational culture most likely to shape high ethical standards among its members is one that’s high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as outcomes. This type of culture also takes a long-term perspective and balances the rights of multiple stakeholders, including the communities in which the business operates, its employees, and its stockholders.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.98) A code of ethics is a mechanism which works to establish a strong organizational culture by ________.A) forcing employees to act in a certain mannerB) reducing ambiguities in how employees should actC) providing a strong message to the public about the companyD) both A and CE) both B and CAnswer:  BExplanation:  B) A code of ethics cannot make employees act in a certain manner; however, it can work as a unifying element allowing all employees to know what is and is not acceptable.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.99) To create a more ethical culture, management should do all of the following except________.A) serve as a visible role modelB) encourage unbridled competitionC) provide ethical trainingD) communicate ethical expectationsE) provide protective mechanismsAnswer:  BExplanation:  B) To create an ethical organizational culture, managers should be supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to pay attention not just to what goals are achieved but also to how. Management should serve as a visible role model, communicate ethical expectations, provide protective mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand, and provide ethical training.Diff: 2AACSB:  Ethical understanding and reasoningQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.100) Phyllis works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishly furnish their offices and even purchase “office” furniture that was found in their personal homes. Which method of maintaining an ethical culture is Phyllis’s company pursuing?A) serving as a visible role modelB) communicating ethical expectationsC) providing ethical trainingD) visibly punishing unethical actsE) providing protective mechanismsAnswer:  DExplanation:  D) Research suggests managers can have an effect on the ethical behavior of employees by adhering to the following principles: be a visible role model, communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish unethical ones, and provide protective mechanisms. In this example, the company is visibly punishing unethical acts.Diff: 3AACSB:  Analytical Thinking; Ethical understanding and reasoningQuest. Category:  ApplicationLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.101) Larry has an employee who is amazing at clearly seeing rules and enforcing them. He has recently promoted her to the lead position in quality assurance. Which aspect of creating a positive organizational culture is Larry utilizing?A) rewarding more than punishingB) building on organization strengthsC) encouraging intense competitionD) building on employee strengthsE) emphasizing short-term gainsAnswer:  DExplanation:  D) Larry is building on employee strengths. Because his employee is good at regulating rules, he is showing her how she can put that strength to use. Although a positive organizational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.102) Barbara is the lead editor for a small, city newspaper. One of her advertising sales representatives, Mathew, is pulling in a lot of restaurant clients. Barbara realizes that Mathew is quite knowledgeable about food and speaks quite elegantly while describing different dishes. She has offered Mathew an opportunity to write a weekly restaurant review. Mathew is very happy with his new job role. Which aspect of creating a positive organization is being utilized by Barbara?A) rewarding more than punishingB) building on organization strengthsC) emphasizing individual growthD) encouraging intense unbridled competitionE) focusing on outcomesAnswer:  CExplanation:  C) A positive organizational culture emphasizes not only organizational effectiveness but also individuals’ growth. No organization will get the best from employees who see themselves as mere tools or parts of the organization. Barbara is helping her employee discover new aspects of his abilities and giving him new career opportunities.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ApplicationLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.103) One of the misgivings about managers offering employees praise for good work is that ________.A) the manager fears praise will cause the employee to slack off in their workB) the manager feels that praise is not valuedC) the manager is afraid of offending someone who has not earned praiseD) both A and BE) all A, B, and CAnswer:  DExplanation:  D) The power of praise is often forgotten within an organization.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.104) A positive organizational culture emphasizes all of the following exceptwhich?A) building employee strengthsB) tailoring positions to encourage work life balanceC) rewarding more than it punishesD) encouraging individual vitalityE) encouraging individual growthAnswer:  BExplanation:  B) While companies can do certain things to promote work-life balance, this concept is more connected with the actions of the individual, not the organization itself.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.105) Which of the following is not one of the characteristics of a spiritual organization?A) BenevolenceB) Strong sense of purposeC) Trust and respectD) Open-mindednessE) Strong religious foundationAnswer:  EExplanation:  E) The concept of a spiritual organization has nothing to do with religion.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.106) A positive culture recognizes the difference between ________.A) a good employee and a poor employeeB) a job and a careerC) a reward and a punishmentD) a manager and a leaderE) an intrinsic and an extrinsic rewardAnswer:  BExplanation:  B) A positive culture recognizes the difference between a job and a career. It supports not only what the employee contributes to organizational effectiveness but also how the organization can make the employee more effective—personally and professionally.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.107) An organizational culture that encourages its managers for engaging in severe competition and discourages them from taking risks and innovating, is most likely to shape high ethical standards among its members.Answer:  FALSEExplanation:  An organizational culture that encourages its managers for taking risks and innovating, and discourages them from engaging in unbridled competition, is most likely to shape high ethical standards among its members.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.108) Many managers withhold praise because they are afraid employees will coast or because they think praise is not valued.Answer:  TRUEExplanation:  Offering praise is often awkward for managers because it is difficult to catch some doing something right as opposed to doing something wrong.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.109) A company can put too much focus on creating and maintaining a positive culture.Answer:  TRUEExplanation:  There may be benefits to establishing a positive culture, but an organization also needs to be objective and not pursue it past the point of effectiveness.Diff: 1AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.110) What can management do to create a more ethical culture within an organization?Answer:  To create a more ethical culture, management can take a number of steps.a) Management can be a visible role model. Employees will look to top management behavior as a benchmark for defining appropriate behavior.b) Management can also communicate ethical expectations. Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization’s primary values and the ethical rules that employees are expected to follow.c) Management can also provide ethical training. Training sessions can be used to reinforce the organization’s standards of conduct, to clarify what practices are and are not permissible, and to address possible ethical dilemmas.d) Management can visibly reward ethical acts and punish unethical ones. Performance appraisals of managers should include a point-by-point evaluation of how his or her decisions measured against the organization’s code of ethics. Appraisals must include the means taken to achieve goals as well as the ends themselves.e) Finally, the organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers.Diff: 3AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.111) A critic noted, “Promoting a social orthodoxy of positiveness focuses on a particular constellation of desirable states and traits but, in so doing, can stigmatize those who fail to fit the template.” Do you feel that managers can go too far in creating a positive culture? Explain your responses.Answer:  Responses will vary but should address that there may be benefits to establishing a positive culture, but an organization also needs to be objective and not pursue it past the point of effectiveness.Diff: 3AACSB:  Reflective thinkingQuest. Category:  ApplicationLO:  16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.112) How can United States managers be culturally sensitive?A) by indulging in frequent discussions about religionB) by discussing politics frequentlyC) by listening moreD) by speaking quicklyE) by talking in a high tone of voiceAnswer:  CExplanation:  C) Some ways in which United States managers can be culturally sensitive include talking in a low tone of voice, speaking slowly, listening more, and avoiding discussions of religion and politics.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.6 Show how national culture can affect the way organizational culture is interpreted in another country.113) Which of the following statements is true regarding effects of national culture on organizational culture and ethical behavior within an organization?A) As compared to managers in the United States, managers in developing economies are less likely to see ethical decisions as embedded in a social environment.B) Organizations can safely ignore local culture while establishing its operation in another country.C) Generally, United States managers see bribery, nepotism, and favoring personal contacts as highly unethical.D) Organizational cultures rarely reflect national culture.E) Most United States managers do not view profit maximization as a moral obligation.Answer:  CExplanation:  C) United States managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. This worldview sees bribery, nepotism, and favoring personal contacts as highly unethical.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.6 Show how national culture can affect the way organizational culture is interpreted in another country.114) Managers in a developing country would see which of the following as ethical responsibility?A) paying people “under the table”B) doing favors for family and friendsC) giving the workers a share of the companyD) both A and CE) both B and CAnswer:  EExplanation:  E) Managers in developing countries are more likely to see ethical decisions as embedded in a social environment.Diff: 2AACSB:  Analytical ThinkingQuest. Category:  ConceptLO:  16.6 Show how national culture can affect the way organizational culture is interpreted in another country.115) Organizational cultures often reflect national cultures.Answer:  TRUEExplanation:  Organizational cultures often reflect national culture. So when an organization opens up operations in another country, ignoring local culture can be risky.Diff: 2AACSB:  Diverse and multicultural work environmentsQuest. Category:  ConceptLO:  16.6 Show how national culture can affect the way organizational culture is interpreted in another country.116) The management of ethical behavior is one area where national culture can rub up against corporate culture. Discuss some differences in how individualist and collectivist cultures might view the difference in the management of ethical behavior in relation to corporate culture.Answer:  Responses will vary but should touch on that U.S. managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. This worldview sees bribery, nepotism, and favoring personal contacts as highly unethical. Any action that deviates from profit maximization may indicate that inappropriate or corrupt behavior may be occurring. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in a social environment. That means doing special favors for family and friends is not only appropriate but possibly even an ethical responsibility. Managers in many nations also view capitalism skeptically and believe the interests of workers should be put on a par with the interests of shareholders.Diff: 3AACSB:  Ethical understanding and reasoningQuest. Category:  Critical ThinkingLO:  16.6 Show how national culture can affect the way organizational culture is interpreted in another country.