Essentials of Organizational Behavior, 10e (Robbins/Judge) Chapter 15 Organizational Culture 1) is a shared system of meaning held by the organization's members that distinguishes the organization from other organizations A) Institutionalization B) Organizational culture C) Socialization D) Formalization E) Corporate image Answer: B Diff: Page Ref: 231 Topic: What Is Organizational Culture? 2) Which of the following is not a primary characteristic that captures the essence of organizational culture? A) attention to detail B) innovation C) formality orientation D) team orientation E) outcome orientation Answer: C Diff: Page Ref: 231 Topic: What Is Organizational Culture? 3) is the characteristic of organizational culture that addresses the degree to which management decisions take into consideration the effect of outcomes on people within the organization A) Humanistic B) Community C) Team D) People orientation E) Relationship Answer: D Diff: Page Ref: 231 Topic: What Is Organizational Culture? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 4) The key characteristic of organizational culture that addresses the degree to which people are competitive rather than easygoing is termed A) assertiveness B) competitiveness C) aversiveness D) risk taking E) aggressiveness Answer: E Diff: Page Ref: 231 Topic: What Is Organizational Culture? 5) The key characteristic of organizational culture that addresses the degree to which employees are expected to exhibit precision is termed A) accuracy orientation B) accountability C) attention to detail D) stability E) reactivity Answer: C Diff: Page Ref: 231 Topic: What Is Organizational Culture? 6) The key characteristic of organizational culture that assesses the degree to which organizational activities emphasize maintaining the status quo in contrast to growth is termed A) permanence B) aggressiveness orientation C) stability D) competitiveness E) reflexivity Answer: C Diff: Page Ref: 231 Topic: What Is Organizational Culture? 7) Organizational culture is A) not concerned with how employees perceive their culture B) a descriptive term C) concerned with whether employees like certain characteristics of their culture D) evaluative E) synonymous with job satisfaction Answer: B Diff: Page Ref: 231 Topic: What Is Organizational Culture? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 8) In contrasting organizational culture with job satisfaction, organizational culture is a(n) term, while job satisfaction is a(n) term A) predictive; reactive B) implied; stated C) reflective; affective D) descriptive; evaluative E) inductive; deductive Answer: D Diff: Page Ref: 232 Topic: What Is Organizational Culture? 9) The macro view of culture that gives an organization its distinct personality is its culture A) dominant B) subC) strong D) national E) marginal Answer: A Diff: Page Ref: 232 Topic: What Is Organizational Culture? 10) Cultures within an organization that are defined by departmental designations are often called A) micro-cultures B) subcultures C) divisional cultures D) microcosms E) counter cultures Answer: B Diff: Page Ref: 232 Topic: What Is Organizational Culture? 11) Which characteristic is not reflective of subcultures? A) includes core values of the organization B) typically defined by department designations C) rejects the core values of the dominant culture D) usually defined by geographical separation E) includes values unique to members of a department or group Answer: C Diff: Page Ref: 232 Topic: What Is Organizational Culture? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 12) Masterson College is a small liberal arts women's college in North Carolina The founders of the college were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning The college has continued to support this orientation towards liberal arts education and has actually moved to strengthen that commitment recently Within the last two decades, the business department has become one of the larger departments on campus The faculty of the business department is also committed to finding employment for their graduates and believe that two things are critical for this to happen: 1) their students must have a solid understanding of the fundamental of their discipline; and 2) internships are an important method of establishing the connections and opportunities for employment The belief in a liberal arts education is part of the of the college A) subculture of the business department B) management culture C) dominant culture D) mission statement E) logic Answer: C Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Reflective Thinking Skills 13) Masterson College is a small liberal arts women's college in North Carolina The founders of the college were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning The college has continued to support this orientation towards liberal arts education and has actually moved to strengthen that commitment recently Within the last two decades, the business department has become one of the larger departments on campus The faculty of the business department is also committed to finding employment for their graduates and believe that two things are critical for this to happen: 1) their students must have a solid understanding of the fundamental of their discipline; and 2) internships are an important method of establishing the connections and opportunities for employment The commitment to finding employment for graduates is part of the A) subculture of the business department B) management culture C) dominant culture D) mission statement E) logic Answer: A Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Reflective Thinking Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 14) Masterson College is a small liberal arts women's college in North Carolina The founders of the college were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning The college has continued to support this orientation towards liberal arts education and has actually moved to strengthen that commitment recently Within the last two decades, the business department has become one of the larger departments on campus The faculty of the business department is also committed to finding employment for their graduates and believe that two things are critical for this to happen: 1) their students must have a solid understanding of the fundamental of their discipline; and 2) internships are an important method of establishing the connections and opportunities for employment The business department holds some unique values in addition to the of the dominant culture A) core values B) sub-values C) formal values D) holistic values E) spiritual orientation Answer: A Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Reflective Thinking Skills 15) Masterson College is a small liberal arts women's college in North Carolina The founders of the college were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning The college has continued to support this orientation towards liberal arts education and has actually moved to strengthen that commitment recently Within the last two decades, the business department has become one of the larger departments on campus The faculty of the business department is also committed to finding employment for their graduates and believe that two things are critical for this to happen: 1) their students must have a solid understanding of the fundamental of their discipline; and 2) internships are an important method of establishing the connections and opportunities for employment Which of the following represents a core value of the college? A) affordable education B) scientific knowledge C) technological innovation D) remedial reinforcement E) lifelong learning Answer: E Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Reflective Thinking Skills Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 16) A dominant culture is A) the sum of an organization's subcultures B) defined by the leader of an organization C) synonymous with an organization's culture D) usually a strong culture E) likely to be a weak culture Answer: C Diff: Page Ref: 232 Topic: What Is Organizational Culture? 17) The primary or dominant values that are accepted throughout the organization are known as A) foundational values B) core values C) shared values D) institutional traits E) manifestos Answer: B Diff: Page Ref: 232 Topic: What Is Organizational Culture? 18) Which of the following is characteristic of a strong culture? A) little influence over members' behavior B) low behavioral controls C) narrowly shared values D) intensely held values E) weakly held values Answer: D Diff: Page Ref: 232 Topic: What Is Organizational Culture? 19) are indicators of a strong organizational culture A) High levels of dissention B) Weak managers C) Completely horizontal organizational charts D) Narrowly defined roles E) Widely shared values Answer: E Diff: Page Ref: 232 Topic: What Is Organizational Culture? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 20) A strong culture can create a climate of A) creativity B) high behavioral control C) low commitment D) disloyalty E) uncertainty Answer: B Diff: Page Ref: 232 Topic: What Is Organizational Culture? 21) The retailer known for their strong service culture is A) Macy's B) Nordstrom's C) Kmart D) Target E) Gap Answer: B Diff: Page Ref: 232 Topic: What Is Organizational Culture? 22) Which of the following is most likely to result from a strong organizational culture? A) low employee turnover B) low employee satisfaction C) high employee turnover D) high absenteeism E) low organizational commitment Answer: A Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Analytic Skills 23) The unanimity of a strong culture contributes to all of the following except A) cohesiveness B) loyalty C) higher product quality D) organizational commitment E) lower employees' propensity to leave the organization Answer: C Diff: Page Ref: 232 Topic: What Is Organizational Culture? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 24) A strong organizational culture may reduce A) internalizing behaviors B) formalization C) norms D) the regulation of employee behavior E) consistency Answer: B Diff: Page Ref: 233 Topic: What Is Organizational Culture? 25) Since a strong organizational culture increases behavioral consistency, you would expect A) narrower spans of control B) less formalization C) longer chains of command D) less open communication E) less predictability Answer: B Diff: Page Ref: 232 Topic: What Is Organizational Culture? AASCB Tag: Analytic Skills 26) Which of the following is NOT a function of culture? A) It conveys a sense of organizational identity B) It shapes employee attitude and behavior C) It reduces the stability of the social system D) It has a boundary-defining role E) It facilitates the generation of commitment to something larger than one's individual selfinterests Answer: C Diff: Page Ref: 233 Topic: What Do Cultures Do? 27) The culture of Disney has been very effective in performing which of the following functions? A) displaying the dominance of their industry B) ensuring employees will act in a relatively uniform way C) improving company profits D) facilitating commitment to the theme park industry E) blurring department boundaries Answer: B Diff: Page Ref: 233 Topic: What Do Cultures Do? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 28) As organizations have widened spans of control, flattened structures, introduced teams, reduced formalization, and empowered employees, the provided by a strong culture ensures that everyone is pointed in the same direction A) rules and regulations B) shared meaning C) rituals D) socialization E) rigid hierarchy Answer: B Diff: Page Ref: 233 Topic: What Do Cultures Do? AASCB Tag: Analytic Skills 29) Gary has been reading an OB book on culture to improve his managerial skills As a result, he realizes A) when selecting a candidate, he should take into account the individual-organization fit B) organizational culture does not play a role in selection C) promotion decisions are not influenced by organizational culture D) organizational fit determines if employees like the management of the organization E) organizational fit is seldom important when rules guide the behavior of employees Answer: A Diff: Page Ref: 233 Topic: What Do Cultures Do? 30) Culture is important from an employee's standpoint because A) it reduces ambiguity B) it tells employees how things are done C) it tells employees what is important D) it increases the consistency of employee behavior E) all of the above Answer: E Diff: Page Ref: 233-234 Topic: What Do Cultures Do? Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 31) The Young Woman's Club of Williams has been operating for seventy-five years as an organization that supports women who stay at home For years it has been one of the most prestigious organizations in town with a strong membership This group has always held classes in cooking, sewing, and child rearing It has always been made up of upper middle class women from the small town of Williams As the area has grown, many people have moved into Williams and now commute to Capital City, just 15 miles away Most of the newcomers are dual-income couples, with both spouses holding full-time jobs It is probable that the strong culture of the Young Woman's Club of Williams will A) prevent the organization from changing as the population of the community changes B) enable the organization to meet the needs of diverse women in the community C) be embraced by all of the newcomers to the community D) be strengthened by the presence of the newcomers in the community E) enable the organization to become more effective Answer: A Diff: Page Ref: 234 Topic: What Do Cultures Do? AASCB Tag: Reflective Thinking Skills 32) The Young Woman's Club of Williams has been operating for 75 years as an organization that supports women who stay at home For years it has been one of the most prestigious organizations in town with a strong membership This group has always held classes in cooking, sewing, and child rearing It has always been made up of upper middle class women from the small town of Williams As the area has grown, many people have moved into Williams and now commute to Capital City, just 15 miles away Most of the newcomers are dual-income couples, with both spouses holding full-time jobs The culture of the Young Woman's Club can be defined as A) a liability B) a weak culture C) an ambiguous culture D) a diverse culture E) a tolerant culture Answer: A Diff: Page Ref: 234 Topic: What Do Cultures Do? AASCB Tag: Reflective Thinking Skills 10 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 71) Nunya is a computer software company that employs highly intelligent, but somewhat unusual people The dress code worn by Nunya employees is an example of a through which organization culture is transmitted A) story B) ritual C) material symbol D) symbolic act E) tool Answer: C Diff: Page Ref: 240 Topic: How Employees Learn Culture AASCB Tag: Analytic Skills 72) The Wal-Mart company chant is an example of a(n) A) story B) material symbol C) ritual D) language E) reflection Answer: C Diff: Page Ref: 240 Topic: How Employees Learn Culture 73) Socialization rituals perform all of the following functions except that of A) reinforcing the key values of the organization B) emphasizing the organization's goals C) revealing the company's bottom line in terms of net profit D) reinforcing the company's perspective on which people are important E) revealing the company's view of which people are expendable Answer: C Diff: Page Ref: 240 Topic: How Employees Learn Culture 74) All of the following are examples of rituals EXCEPT A) anniversary parties honoring long-time employees B) annual award meetings C) fraternity initiations D) the placement of offices within corporate headquarters E) singing company songs Answer: D Diff: Page Ref: 240 Topic: How Employees Learn Culture 21 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 75) All of the following are examples of material symbols that transmit organizational culture EXCEPT A) top executives' use of the company jet B) the layout of corporate headquarters C) new employee orientations D) luxury cars for executives E) private parking spots Answer: C Diff: Page Ref: 240 Topic: How Employees Learn Culture 76) The acronyms and jargon that employees use in an organization are part of A) stories B) material symbols C) rituals D) language E) reflections Answer: D Diff: Page Ref: 240 Topic: How Employees Learn Culture 77) An organizational culture most likely to shape high ethical standards is one that A) is high in risk tolerance B) is high in aggressiveness C) focuses on outcomes D) punishes innovation E) creates a highly competitive internal environment Answer: A Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 78) A highly publicized example of a company with a strong culture that supports high ethical standards that influenced employee behavior in a crisis is A) Enron B) Disney C) Johnson & Johnson D) Boeing E) American Airlines Answer: C Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 22 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 79) To create a more ethical culture, management should all of the following EXCEPT A) serve as a visible role model B) cover up unethical acts C) provide ethical training D) communicate ethical expectations E) provide protective mechanisms Answer: B Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 80) A culture that emphasizes building on employee strengths and emphasizes individual vitality and growth is known as a/an A) strong culture B) positive organizational culture C) strengths-driven culture D) ethical culture E) reward culture Answer: B Diff: Page Ref: 242 Topic: Creating a Positive Organizational Culture 81) The positive organizational culture focuses more on than A) profits; building individual strengths B) building individual strengths; rewards C) rewarding; punishing D) punishing; building individual strengths E) employee's health; profits Answer: C Diff: Page Ref: 242 Topic: Creating a Positive Organizational Culture 82) Which of the following statements best reflects the current state of positive organizational culture? A) While there are benefits to a positive organizational culture, caution must be exercised that it is not pursued beyond the point of effectiveness B) There is no such thing as too much of a positive organizational culture C) Positive organizational cultures are an idealistic vision, but unable to be achieved in reality D) There is no uncertainty in the research about how positive organizational cultures work and benefit organizations E) All cultures across the globe value being positive as much as the US Answer: A Diff: Page Ref: 243 Topic: Creating a Positive Organizational Culture 23 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 83) The best advice to offer US managers when opening up operations in another country is to A) let the US culture dominate B) be culturally sensitive C) ignore local cultures D) merge the local culture with the dominant US culture E) let the local culture dominate Answer: B Diff: Page Ref: 243 Topic: Global Implications AASCB Tag: Multicultural and Diversity Understanding 84) US managers can learn to be more culturally sensitive Recommendations for achieving this include A) talking in a low tone of voice B) speaking slowly C) listening more D) avoiding discussions of religion and politics E) all of the above Answer: E Diff: Page Ref: 243 Topic: Global Implications AASCB Tag: Multicultural and Diversity Understanding 85) All of the following factors increase the probability that cultural change can be successfully implemented EXCEPT A) the existence of a dramatic crisis B) a positive organizational culture C) a turnover in the organization's top leadership D) an organization that is both young and small E) a weak dominant culture Answer: B Diff: Page Ref: 244 Topic: Implications for Managers 86) Organizational culture is a set of key characteristics that an organization values Answer: TRUE Diff: Page Ref: 231 Topic: What Is Organizational Culture? 87) The degree to which employees are encouraged to be innovative and take risks is termed aggressiveness Answer: FALSE Diff: Page Ref: 231 Topic: What Is Organizational Culture? 24 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 88) The degree to which management decisions take into consideration the effect of outcomes on people within the organization is termed outcome orientation Answer: FALSE Diff: Page Ref: 231 Topic: What Is Organizational Culture? 89) The degree to which management focuses on results rather than on techniques and processes refers to results orientation Answer: FALSE Diff: Page Ref: 231 Topic: What Is Organizational Culture? 90) The degree to which organizational activities emphasize maintaining the status quo in contrast to growth is known as stability Answer: TRUE Diff: Page Ref: 231 Topic: What Is Organizational Culture? 91) Individuals with different backgrounds in an organization will tend to describe the organization's culture in similar terms Answer: TRUE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 92) The primary or dominant values that are accepted throughout an organization are known as its core principles Answer: FALSE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 93) "Dominant culture" refers to cultures that value aggressive personalities Answer: FALSE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 94) Research demonstrates that subcultures act to undermine the dominant culture Answer: FALSE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 95) Subcultures rarely influence the behavior of an organization's members Answer: FALSE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 25 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 96) Strong cultures have a greater impact on employees' behavior than weak cultures Answer: TRUE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 97) One specific result of a strong culture should be lower employee turnover Answer: TRUE Diff: Page Ref: 232 Topic: What Is Organizational Culture? 98) Culture has a boundary-defining role; it creates distinctions between one organization and others Answer: TRUE Diff: Page Ref: 233 Topic: What Do Cultures Do? 99) Culture is the social glue that holds an organization together by providing appropriate standards for what employees should say and Answer: TRUE Diff: Page Ref: 233 Topic: What Do Cultures Do? 100) Organizational culture serves to reinforce the self-interest of individual employees Answer: FALSE Diff: Page Ref: 233 Topic: What Do Cultures Do? 101) Culture by definition is tangible and explicit Answer: FALSE Diff: Page Ref: 233 Topic: What Do Cultures Do? 102) Culture increases ambiguity for employees Answer: FALSE Diff: Page Ref: 234 Topic: What Do Cultures Do? 103) A strong culture can be a liability for an organization Answer: TRUE Diff: Page Ref: 234 Topic: What Do Cultures Do? 104) An entrenched culture can be a burden to an organization when it faces a dynamic environment Answer: TRUE Diff: Page Ref: 234 Topic: What Do Cultures Do? 26 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 105) A strong culture provides a supportive atmosphere for diversity Answer: FALSE Diff: Page Ref: 234 Topic: What Do Cultures Do? 106) Strong cultures encourage individuality Answer: FALSE Diff: Page Ref: 234 Topic: What Do Cultures Do? 107) The success of a merger depends most strongly upon the example set by the top management of the merged organizations Answer: FALSE Diff: Page Ref: 234 Topic: What Do Cultures Do? 108) People issues are cited as the reason for the unusually high failure rate of mergers Answer: TRUE Diff: Page Ref: 234 Topic: What Do Cultures Do? 109) The founders of an organization generally have little impact on the organization's culture since they are so far removed from the employees Answer: FALSE Diff: Page Ref: 235 Topic: Creating and Sustaining Culture 110) Three forces play a particularly important part in sustaining culture: selection practices, promotion policies, and socialization methods Answer: FALSE Diff: Page Ref: 235 Topic: Creating and Sustaining Culture 111) The selection process involved with hiring an employee is a two-way process Answer: TRUE Diff: Page Ref: 236 Topic: Creating and Sustaining Culture 112) The values within an organization's culture tend to flow down from top management Answer: TRUE Diff: Page Ref: 236 Topic: Creating and Sustaining Culture 113) Socialization is the process that defines group interaction patterns Answer: FALSE Diff: Page Ref: 236 Topic: Creating and Sustaining Culture 27 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 114) The socialization process is made up of three steps: prearrival, adjustment, and metamorphosis Answer: FALSE Diff: Page Ref: 236 Topic: Creating and Sustaining Culture 115) In the socialization process, the period of learning that occurs before a new employee joins an organization is termed the encounter stage Answer: FALSE Diff: Page Ref: 236 Topic: Creating and Sustaining Culture 116) One major purpose of a business school is to socialize business students to the attitudes and behaviors that business firms want Answer: TRUE Diff: Page Ref: 236-237 Topic: Creating and Sustaining Culture 117) The stage of socialization where an individual confronts the possible dichotomy between her expectations and reality is the encounter stage Answer: TRUE Diff: Page Ref: 237 Topic: Creating and Sustaining Culture 118) When a new employee works out problems discovered upon entry to an organization, he is in the metamorphosis stage of the socialization process Answer: TRUE Diff: Page Ref: 237 Topic: Creating and Sustaining Culture 119) Socialization is complete when an employee completes his probationary period with a new company Answer: FALSE Diff: Page Ref: 238 Topic: Creating and Sustaining Culture 120) A successful metamorphosis should reduce the employee's propensity to leave the organization Answer: TRUE Diff: Page Ref: 238 Topic: Creating and Sustaining Culture 28 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 121) Fraternity pledges go through divestiture socialization whereby they are shaped into the proper role Answer: TRUE Diff: Page Ref: 239 Topic: Creating and Sustaining Culture AASCB Tag: Analytic Skills 122) The most potent means of transmitting culture to employees are stories, rituals, related symbols, and language Answer: TRUE Diff: Page Ref: 240 Topic: How Employees Learn Culture 123) Stories are a form of socialization ritual Answer: FALSE Diff: Page Ref: 240 Topic: How Employees Learn Culture 124) A ritual is a repetitive sequence of activities that continually expresses the key values of the organization Answer: TRUE Diff: Page Ref: 240 Topic: How Employees Learn Culture 125) Rituals serve to reinforce the hierarchical structure of an organization Answer: FALSE Diff: Page Ref: 240 Topic: How Employees Learn Culture 126) Providing an executive with a chauffer-driven limousine is an example of a ritual Answer: FALSE Diff: Page Ref: 240 Topic: How Employees Learn Culture 127) Material symbols may convey to employees the degree of egalitarianism that is desired by top management Answer: TRUE Diff: Page Ref: 240 Topic: How Employees Learn Culture 128) Language can serve to unite members of a given culture as new employees learn the acronyms and jargon specific to the organization Answer: TRUE Diff: Page Ref: 240 Topic: How Employees Learn Culture 29 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 129) All organizations within an industry use the terminology designated by the industry so that their employees can move freely from organization to organization Answer: FALSE Diff: Page Ref: 240 Topic: How Employees Learn Culture 130) A strong organizational culture exerts more influence on employees than does a weak culture Answer: TRUE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 131) The content and strength of an organizational culture influences the organization's ethical climate Answer: TRUE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 132) An organizational culture most likely to shape high ethical standards is one that is high in risk tolerance, low in aggressiveness, and focuses on means instead of outcomes Answer: FALSE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 133) A strong company that encourages pushing the limits can be a powerful force in shaping unethical behavior Answer: TRUE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 134) Performance appraisals of managers should include a point-by-point evaluation of how the manager's decisions measure up against the organization's code of ethics Answer: TRUE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 30 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 135) Management can create more ethical cultures through the following means: acting as visible role models, communicating ethical expectations, providing ethical training, visibly rewarding ethical acts and punishing unethical ones, and providing protective mechanisms Answer: TRUE Diff: Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 136) A positive organizational culture is defined as a culture that rewards more than it punishes and emphasizes individual growth Answer: TRUE Diff: Page Ref: 242 Topic: Creating a Positive Organizational Culture 137) A positive organizational culture emphasizes not only organizational effectiveness, but individuals' growth as well Answer: TRUE Diff: Page Ref: 242 Topic: Creating a Positive Organizational Culture 138) An organization's culture often reflects the national culture Answer: TRUE Diff: Page Ref: 243 Topic: Global Implications AASCB Tag: Multicultural and Diversity Understanding 139) An organization's culture is relatively easy to change Answer: FALSE Diff: Page Ref: 244 Topic: Implications for Managers 140) A surprising financial setback can provide an impetus for culture change Answer: TRUE Diff: Page Ref: 244 Topic: Implications for Managers 141) What is organizational culture? Answer: Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations This system of shared meaning is a set of key characteristics that the organization values Page Ref: 231 Topic: What Is Organizational Culture? 31 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 142) Identify and describe the seven primary characteristics that capture the essence of an organization's culture Answer: Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations This system of shared meaning is, on closer examination, a set of key characteristics that the organization values There are seven primary characteristics that capture the essence of an organization's culture Innovation and risk taking are the degree to which employees are encouraged to be innovative and take risks Attention to detail is the degree to which employees are expected to exhibit precision, analysis, and attention to detail Outcome orientation is the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes People orientation is the degree to which management decisions take into consideration the effect of outcomes on people within the organization Team orientation is the degree to which work activities are organized around teams rather than individuals Aggressiveness is the degree to which people are aggressive and competitive rather than easygoing Stability is the degree to which organizational activities emphasize maintaining the status quo in contrast to growth Page Ref: 231 Topic: What Is Organizational Culture? 143) Discuss the difference between strong and weak organizational cultures Answer: Strong cultures have a greater impact on employee behavior and are more directly related to reduced turnover 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 to those values is, the stronger the culture is A strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control One specific result of a strong culture should be lower employee turnover A strong culture demonstrates high agreement among members about what the organization stands for Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment These qualities, in turn, lessen employees' propensity to leave the organization Page Ref: 232 Topic: What Is Organizational Culture? 144) What are the functions of organizational culture? Answer: 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 Finally, culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behavior of employees Page Ref: 233 Topic: What Do Cultures Do? 32 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 145) When can culture be a liability? Answer: Culture is a liability when the shared values are not in agreement with those that will further the organization's effectiveness This is most likely to occur when an organization's environment is dynamic When an environment is undergoing rapid change, an organization's entrenched culture may no longer be appropriate So consistency of behavior is an asset to an organization when it faces a stable environment It may, however, burden the organization and make it difficult to respond to changes in the environment These strong cultures become barriers to change when business as usual is no longer effective Culture can also serve as a liability when hiring a diverse workforce Organizations hire diverse individuals because of the alternative strengths these people bring to the workplace, yet these diverse behaviors and strengths are likely to diminish in strong cultures as people attempt to fit in Finally, culture can be a liability in acquisitions and mergers In recent years, cultural compatibility has become the primary concern with acquisition and merger decisions The primary cause of failure is conflicting organizational cultures Page Ref: 234 Topic: What Do Cultures Do? 146) 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 They are constrained by previous customs or ideologies 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 First, founders only hire and keep employees who think and feel the way they Second, they indoctrinate and socialize these employees to their way of thinking and feeling 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 Page Ref: 235 Topic: Creating and Sustaining Culture 33 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 147) 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 First, the explicit goal of the selection process is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully It would be naive to ignore that the final decision as to who is hired will be significantly influenced by the decision maker's judgment of how well the candidates will fit into the organization This attempt to ensure a proper match, whether purposely or inadvertently, results in 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 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 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 This is when the organization seeks to mold the outsider into an employee "in good standing." Employees who fail to learn the essential or pivotal role behaviors risk being labeled "nonconformists" or "rebels," which often leads to expulsion But the organization will be socializing every employee, though maybe not as explicitly, throughout his or her entire career in the organization This further contributes to sustaining the culture Page Ref: 235-236 Topic: Creating and Sustaining Culture 148) What are the three stages of socialization through which employees become indoctrinated into an organization's culture? Answer: The three stages of socialization are prearrival, encounter, and metamorphosis 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 Upon entry into the organization, the new member enters the encounter stage Here the individual confronts the possible dichotomy between her expectations and reality 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 Page Ref: 236-238 Topic: Creating and Sustaining Culture 34 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall 149) Discuss how culture is transmitted to employees Answer: Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language 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 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 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 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 so doing help to preserve it Once assimilated, terminology acts as a common denominator that unites members of a given culture or subculture Page Ref: 240 Topic: How Employees Learn Culture 150) What can management to create a more ethical culture within an organization? Answer: To create a more ethical culture, management can take a number of steps Management can be a visible role model Employees will look to top management behavior as a benchmark for defining appropriate behavior 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 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 Finally, 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 A formal mechanism should also be provided so employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand Page Ref: 241 Topic: Creating an Ethical Organizational Culture AASCB Tag: Ethical Understanding and Reasoning Abilities 35 Copyright © 2010 Pearson Education, Inc Publishing as Prentice Hall ... Page Ref: 232 Topic: What Is Organizational Culture? 18) Which of the following is characteristic of a strong culture? A) little influence over members' behavior B) low behavioral controls C) narrowly... 232 Topic: What Is Organizational Culture? 19) are indicators of a strong organizational culture A) High levels of dissention B) Weak managers C) Completely horizontal organizational charts... strong organizational culture may reduce A) internalizing behaviors B) formalization C) norms D) the regulation of employee behavior E) consistency Answer: B Diff: Page Ref: 233 Topic: What Is Organizational