Chapter 18 Managing Organization Culture
1) Organization culture is established by a manager or the founder of the organization at the
time of its creation.
Answer: False
Rationale:
While the founder or early leaders of an organization can influence its culture, organization
culture is often shaped by a combination of factors including the values, beliefs, and
behaviors of its members over time. It evolves and develops as the organization grows and
adapts to its environment.
2) Subcultures can affect management efforts both positively and negatively.
Answer: True
Rationale:
Subcultures can form within an organization based on various factors such as departmental
differences, regional influences, or demographic characteristics. These subcultures can either
support or undermine management efforts, depending on how they align with or diverge from
the overarching organizational culture and goals.
3) Given an explicit organization culture, organization members tend to make decisions that
are consistent with the values embedded in that culture.
Answer: True
Rationale:
Organizational culture plays a significant role in shaping the behavior and decision-making of
its members. When there is a clear and well-communicated culture, members are more likely
to align their decisions with the values and norms of that culture.
4) A clan culture is an organization culture with a strong external focus coupled with a low
degree of flexibility and discretion.
Answer: False
Rationale:
Clan culture is characterized by a strong internal focus, emphasizing cohesion, collaboration,
and a sense of family. It is often associated with high flexibility and discretion, as trust and
relationships are paramount.
5) In an adhocracy culture, leaders are seen more as mentors and perhaps even parent figures.
Answer: False
Rationale:
Adhocracy culture values innovation, risk-taking, and creativity. In such cultures, leaders are
often seen more as visionaries or entrepreneurs who inspire and empower employees to take
initiative and explore new ideas.
6) An adhocracy culture is characterized by a pyramidal structure in which leaders are
considered all-important.
Answer: False
Rationale:
Adhocracy cultures are characterized by a more decentralized and flexible structure, where
authority and decision-making are dispersed throughout the organization. Leadership is often
distributed based on expertise and is not confined to a strict hierarchical pyramid.
7) Individuals within the workplace with a hierarchy culture are more concerned about
efficiency and let formal rules and policies govern how they operate.
Answer: True
Rationale:
Hierarchy culture values stability, efficiency, and consistency. In such cultures, formal rules
and policies play a significant role in guiding behavior and decision-making, often
prioritizing efficiency over flexibility.
8) An organization with a market culture focuses exclusively on its customers.
Answer: False
Rationale:
Market culture is characterized by a strong external focus on competition and achieving
results. While customer satisfaction and market success are important, a market culture also
emphasizes performance, achievement, and outperforming competitors.
9) The establishment and growth of culture within an organization can be influenced by
specific actions taken by management.
Answer: True
Rationale:
Management plays a crucial role in shaping and nurturing organizational culture. By
modeling desired behaviors, providing clear direction and communication, and reinforcing
values through policies and practices, management can influence the development and
growth of culture within an organization.
10) According to the "Track and talk about performance" step that managers take to build a
high performance-yielding organization culture, all the organization members should always
be thinking about their individual performance.
Answer: True
Rationale:
Tracking and discussing performance are important aspects of building a high-performance
culture. However, this does not mean that all organization members should be solely focused
on their individual performance at all times. It is also essential to foster collaboration,
teamwork, and a shared commitment to organizational goals.
11) Organizational commitment is defined as the dedication showed by an organization to the
wellbeing of its employees.
Answer: False
Rationale:
Organizational commitment refers to the degree to which employees are dedicated to the
organization's goals and values and are willing to put effort into their work to achieve those
goals. It is about the employees' commitment to the organization, not the other way around.
12) Customer dimension is an element of organization culture that focuses on making sure a
product, in the opinion of the customer, does what it is supposed to do.
Answer: False
Rationale:
The customer dimension of organizational culture refers to how the organization views and
interacts with its customers, including the level of customer orientation and service focus. It
is not solely about product performance but also about the overall customer experience.
13) Management can ensure that employees choose the desired ethical behavior in every
situation by providing ethical training.
Answer: False
Rationale:
While ethical training can help employees understand and navigate ethical dilemmas, it
cannot guarantee that employees will always choose the desired ethical behavior in every
situation. Ethical behavior is influenced by various factors, including individual values,
organizational culture, and situational factors.
14) Once an innovation dimension is established, management can be assured that it will
continue to exist over time.
Answer: False
Rationale:
Innovation is a dynamic process that requires ongoing effort and support from management.
While establishing an innovation dimension in organizational culture is important,
maintaining and nurturing it over time is essential for ensuring its continuation.
15) Organization cultures that have a spiritual emphasis typically focus on one specific type
of spiritual belief or religion.
Answer: False
Rationale:
Organization cultures with a spiritual emphasis can encompass a wide range of spiritual
beliefs and practices, and they are not limited to one specific type or religion. These cultures
often emphasize values such as purpose, meaning, and connection beyond the material world.
16) Cultural artifacts can change over time as organization culture changes.
Answer: True
Rationale:
Cultural artifacts, which include symbols, language, rituals, and stories, are visible
manifestations of organizational culture. As culture evolves and changes, these artifacts can
also change to reflect the new values, beliefs, and norms of the organization.
17) An organizational saga is a popular belief or story that has become associated with a
person or institution that is considered to illustrate an organization culture ideal.
Answer: False
Rationale:
An organizational saga is a long and detailed narrative that recounts the history and evolution
of an organization, often highlighting its values, achievements, and challenges. It is not
necessarily associated with a specific person or institution, nor does it always illustrate an
ideal culture.
18) Organizational myths are commonly discouraged as they tend to distort the real picture of
an organization.
Answer: False
Rationale:
Organizational myths are stories or beliefs that convey important messages about the
organization's values, history, and identity. While some myths may contain elements of
distortion or exaggeration, they can also serve as powerful tools for reinforcing culture and
inspiring employees.
19) New recruits must be able to practice new jobs, at times employing trial and error,
without fear of punishment or failure.
Answer: True
Rationale:
Creating a supportive environment for new recruits to learn and grow is essential for their
success. Allowing them to practice new jobs without fear of punishment or failure encourages
experimentation and learning, which are critical for development.
20) Even though an organization culture might be considered healthy, increasing a cultural
focus on risk-taking or excellence in job performance might make it even healthier.
Answer: True
Rationale:
Organizational culture is not static and can be continuously improved and refined. By
increasing a cultural focus on aspects such as risk-taking or excellence in job performance, an
organization can further enhance its culture and performance.
21) ________ is a set of shared values that organization members have regarding the
functioning and existence of their organization.
A) Organizational space
B) Corporate governance
C) Organization culture
D) Corporate behavior
E) Organizational ecology
Answer: C
Rationale:
Organization culture refers to the shared values, beliefs, and norms that shape the behavior
and attitudes of organization members and guide the functioning of the organization as a
whole.
22) ________ is not established at once by a manager, but evolves slowly over time.
A) Corporate governance
B) Organizational ecology
C) Organizational space
D) Corporate behavior
E) Organization culture
Answer: E
Rationale:
Organization culture is not something that can be established overnight by a manager. It
evolves gradually over time as a result of interactions, experiences, and shared history among
organization members.
23) Which of the following statements is true of organization culture?
A) Organization culture ensures complete personal and corporate transparency.
B) Organization culture is conceptualized and implemented by the founders of the
organization at the time of establishment.
C) Organization culture can be characterized in an organization by describing dimensions
such as organizational norms and habits.
D) Organization culture is often wrongly confused to mean the same as the personality of the
organization.
E) Organization culture is conceptually distinct from ideas such as organizational rituals and
special language.
Answer: C
Rationale:
Organization culture can be characterized by describing dimensions such as organizational
norms, values, beliefs, and habits that shape behavior within the organization.
24) The shared values about organizational functioning held by the majority of organization
members is known as the ________.
A) leading organization subculture
B) organization design
C) organizational hierarchy
D) dominant organization culture
E) organizational effectiveness
Answer: D
Rationale:
The dominant organization culture refers to the shared values, beliefs, and norms that are held
by the majority of organization members and shape the organization's behavior and
functioning.
25) A(n) ________ is a document that reflects the core values of an organization and suggests
how organization members should act in relation to them.
A) code of conduct
B) business record
C) memorandum of understanding
D) operating agreement
E) mission statement
Answer: A
Rationale:
A code of conduct is a document that outlines the core values and ethical standards of an
organization and provides guidelines on how organization members should behave in various
situations.
26) A(n) ________ is an organization culture characterized by a strong internal focus with a
high degree of flexibility and discretion.
A) adhocracy culture
B) clan culture
C) hierarchy culture
D) bureaucracy culture
E) market culture
Answer: B
Rationale:
Clan culture is characterized by a strong internal focus, with emphasis on collaboration,
cohesion, and flexibility. It is often likened to a family-like environment where teamwork and
shared values are important.
27) Which of the following is a characteristic of an organization with a clan culture?
A) strong external focus
B) autocratic leadership
C) emphasis on stability and control
D) cohesion among members
E) hard-driving leadership
Answer: D
Rationale:
Clan culture emphasizes cohesion among members, often creating a sense of family or tribe
within the organization. This cohesion is driven by shared values and a focus on teamwork.
28) Mark is an intern with Preston and Southend, a law firm. He finds that the senior
employees are highly involved in the training and acquaintance of younger staff within the
organization. The firm also displays a high degree of commitment towards employees and
resembles a close-knit family, with emphasis placed on teamwork and shared values. What
type of organization is prevalent in Preston and Southend?
A) clan culture
B) adhocracy culture
C) hierarchy culture
D) market culture
E) bureaucracy culture
Answer: A
Rationale:
The description of Preston and Southend, with its emphasis on training, commitment,
teamwork, and a family-like environment, aligns with the characteristics of a clan culture.
29) Which of the following activities is a manager most likely to perform if he or she is from
an organization with a clan culture?
A) make sure employees know exactly what is expected of them
B) accept only world-class quality in products and services
C) track how competitors are doing
D) give customers what they want the first time
E) celebrate the successes of work teams and individuals
Answer: E
Rationale:
In a clan culture, managers are likely to celebrate the successes of work teams and individuals
as a way to reinforce teamwork, collaboration, and shared values.
30) Leaders in organizations with clan cultures are likely to be ________.
A) autocrats
B) mentors
C) micromanagers
D) dictators
E) controllers
Answer: B
Rationale:
In a clan culture, leaders are often seen as mentors who guide and support their team
members. They focus on developing relationships and fostering a supportive environment for
their employees.
31) ________ is an organization culture characterized by flexibility and discretion along with
an external focus.
A) Bureaucracy culture
B) Market culture
C) Clan culture
D) Hierarchy culture
E) Adhocracy culture
Answer: E
Rationale:
Adhocracy culture is characterized by flexibility, innovation, and a focus on external
opportunities and challenges. It encourages creativity and risk-taking to achieve
organizational goals.
32) An adhocracy is a culture reflecting an organization with ________.
A) formal rules and policies for employees
B) a strong internal focus
C) an emphasis on stability and control
D) a simple structure or lack of structure
E) autocratic leadership
Answer: D
Rationale:
Adhocracy culture is characterized by a lack of formal rules and procedures, allowing for
flexibility and innovation. It often has a simple or fluid organizational structure that can adapt
quickly to changing circumstances.
33) Which of the following workplace characteristics is found in an organization with an
adhocracy culture?
A) structured
B) creative
C) formal
D) efficiency-oriented
E) hierarchical
Answer: B
Rationale:
Adhocracy cultures are known for their creativity and innovation, which are fostered by a
lack of rigid structure and a focus on flexibility and adaptation.
34) Which of the following activities is a manager most likely to perform if he or she is from
an organization with an adhocracy culture?
A) standardize policies and procedures so employees know exactly how to get work
accomplished
B) reward those who come up with new ways to perform work
C) give employees regular feedback on how well they are performing jobs
D) establish a structured monitoring system that shows how well employees are performing
jobs
E) include in employee orientation a focus on tradition, values, and vision of the organization
Answer: B
Rationale:
In an adhocracy culture, managers are likely to reward employees who come up with new and
innovative ways to perform work, as creativity and risk-taking are encouraged.
35) During an interview, Roy asks his interviewer about the type of culture of the
organization. The interviewer informs Roy that the organization has a very simple structure
and interactions between employees are extremely informal in nature. Also, there are few
rules and procedures that employees are expected to follow. Employees are encouraged to
take risks and be creative in the workplace. The organization has a(n) ________.
A) clan culture
B) hierarchy culture
C) adhocracy culture
D) market culture
E) bureaucracy culture
Answer: C
Rationale:
The description of the organization's simple structure, informal interactions, lack of strict
rules, and encouragement of risk-taking and creativity aligns with the characteristics of an
adhocracy culture.
36) ________ is an organization culture characterized by an internal focus along with an
emphasis on stability and control.
A) Bureaucracy culture
B) Market culture
C) Clan culture
D) Hierarchy culture
E) Adhocracy culture
Answer: D
Rationale:
Hierarchy culture is characterized by a strong internal focus, with an emphasis on stability,
control, and formalized processes and procedures.
37) Leaders in an organization with a hierarchy culture tend to focus on ________.
A) informal work practices
B) relationships with all stakeholders in the market
C) decentralization and increasing cohesion among members
D) coordination and organization
E) innovation and commitment to cost containment
Answer: D
Rationale:
In a hierarchy culture, leaders focus on coordination and organization to maintain stability
and control within the organization. They emphasize adherence to formal rules and
procedures.
38) Which of the following activities is a manager most likely to perform if he or she is from
an organization with a hierarchy culture?
A) give employees regular feedback on how well they are performing jobs
B) hold people accountable for generating innovative ideas
C) talk to people about their new ideas and what they expect the results of ideas could be
D) reward those who come up with new ways to perform work
E) make continuous improvement a feature of the workplace
Answer: A
Rationale:
In a hierarchy culture, managers are likely to focus on providing employees with regular
feedback on their performance to ensure adherence to established standards and procedures.
39) Edwin is starting his new job as an executive with a publishing firm. Which of the
following statements would be an indication that his new company has a hierarchy culture?
A) Edwin's supervisor constantly emphasizes the need for innovation during the orientation
session.
B) Edwin is told that he will have to perform duties that might be significantly different from
those mentioned in his job description.
C) Edwin learns that the firm has no formal set rules or procedures within the workplace that
he is expected to follow.
D) Edwin's new firm's CEO stresses the need to achieve coordination and organization within
the firm in his welcome speech.
E) Edwin's new firm is characterized by flexibility and discretion, coupled with a strong
external focus.
Answer: D
Rationale:
The CEO's emphasis on achieving coordination and organization within the firm is indicative
of a hierarchy culture, which values stability, control, and adherence to formal rules and
procedures.
40) ________ is an organization culture that reflects values that emphasize stability and
control along with an external focus.
A) Adhocracy culture
B) Clan culture
C) Market culture
D) Hierarchy culture
E) Bureaucracy culture
Answer: C
Rationale:
Market culture emphasizes stability and control, as well as a strong external focus on
competition and achieving results in the marketplace.
41) Which of the following types of organization culture is oriented toward all the
stakeholders of an organization?
A) clan culture
B) adhocracy culture
C) hierarchy culture
D) market culture
E) bureaucracy culture
Answer: D
Rationale:
Market culture is oriented toward all the stakeholders of an organization, including
customers, employees, and shareholders. It emphasizes competitiveness, achieving results,
and outperforming competitors in the marketplace.
42) Leaders in an organization with a market culture tend to be ________.
A) accommodating
B) mentors
C) conservative
D) hard-driving
E) parent figures
Answer: D
Rationale:
In a market culture, leaders are typically hard-driving and focused on achieving results,
outpacing the competition, and achieving stretch goals. They emphasize competitiveness and
drive.
43) Which of the following is a characteristic specific to an organization with a market
structure?
A) commitment to employees
B) shared values and goals among members
C) simple organization structure
D) focus on outpacing the competition
E) cohesion among members
Answer: D
Rationale:
A focus on outpacing the competition is a characteristic specific to an organization with a
market culture. Such organizations prioritize competitiveness and achieving results in the
marketplace.
44) Which of the following activities is a manager most likely to perform if he or she is from
an organization with a market culture?
A) celebrate the successes of work teams and individuals
B) make continuous improvement a feature of the workplace
C) understand the keys to their competitors' success
D) talk to people about their new ideas and what they expect the results of ideas could be
E) establish vehicles for trying out new ideas
Answer: C
Rationale:
In a market culture, managers are likely to focus on understanding the keys to their
competitors' success to improve their own competitive position and achieve better results in
the marketplace.
45) General Automobiles operates under the premise that if any of its subsidiaries are not
number one or two in market sales, the subsidiaries would be sold. This company is highly
competitive and is often used as an example of a company with a(n) ________.
A) market culture
B) hierarchy culture
C) adhocracy culture
D) clan culture
E) hypocrisy culture
Answer: A
Rationale:
General Automobiles' emphasis on market sales and the competitive nature of its business
approach align with the characteristics of a market culture, which values competitiveness and
achieving market success.
46) An organization with a highly competitive "results or else" mentality can be said to
follow a(n) ________.
A) market culture
B) adhocracy culture
C) clan culture
D) bureaucracy culture
E) ethical culture
Answer: A
Rationale:
A highly competitive "results or else" mentality aligns with the characteristics of a market
culture, which emphasizes competitiveness, achieving results, and outperforming
competitors.
47) Andrew has been working in Schezny and Co. for the past three months. Which of the
following statements made by Andrew about Schezny and Co. will support his claim that the
company has a market culture?
A) The firm's culture reflects values that emphasize stability and control along with a strong
internal focus.
B) The firm's leaders are hard-driving, focused on winning, achieving stretch goals, and
outpacing the competition.
C) The firm encourages activities that reflect shared values and goals, teamwork, and
organization commitment to employees.
D) The firm's culture is characterized by a simple structure or a lack of structure.
E) The firm has no formal set of rules or procedures in place for employees and encourages
creativity in the workplace.
Answer: B
Rationale:
Andrew's observation that the firm's leaders are hard-driving, focused on winning, and
outpacing the competition indicates a market culture, which values competitiveness and
achieving results in the marketplace.
48) Which of the following helps employees understand why their organization exists?
A) vision statement
B) propaganda
C) statement of faith
D) mission statement
E) balance sheet
Answer: D
Rationale:
A mission statement helps employees understand the purpose and reason for the existence of
their organization. It communicates the organization's core values, goals, and objectives.
49) Jane is starting a company and needs to give her employees a clear purpose of the
organization. Jane needs a ________.
A) vision statement
B) mission statement
C) propaganda
D) balance sheet
E) statement of faith
Answer: B
Rationale:
A mission statement is a statement that defines the purpose and reason for the existence of an
organization. It communicates the organization's core values, goals, and objectives.
50) Which of the following statements is true of the steps managers undertake to build a highperformance organization culture?
A) Managers must ensure that all employees always put the organization's performance above
their own.
B) Managers should strive to ensure that organizational mission and employees' performance
are distinct parameters and are delinked from each other.
C) Management must hire and retain talented employees even if they are more expensive, as
they are normally an effective means to better organizational performance.
D) An organization's management should encourage natural development of its culture, and
should refrain from trying to influence its development.
E) The performance of managers should be tracked with job-related progress being
communicated to them only through formal channels.
Answer: C
Rationale:
Hiring and retaining talented employees, even if they are more expensive, is an effective
means to better organizational performance. Talented employees can drive innovation,
productivity, and overall success within an organization.
51) ________ is defined as the dedication of organization members to uphold the values of
the organization and to make worthwhile contributions to fulfilling organizational purpose.
A) Job satisfaction
B) Organizational effectiveness
C) Employee proactivity
D) Business resilience
E) Organizational commitment
Answer: E
Rationale:
Organizational commitment refers to the dedication of organization members to the values
and goals of the organization. It involves a willingness to contribute to the organization's
success and uphold its values.
52) 3M, a cell phone company, aims to maintain an organizational focus on providing better
customer service. It hopes that this move will result in building strong ________.
A) job satisfaction
B) organizational effectiveness
C) organizational commitment
D) employee proactivity
E) business resilience
Answer: C
Rationale:
Building strong organizational commitment among employees can lead to better customer
service, as committed employees are more likely to align their efforts with the organization's
goals and values.
53) The ________ dimension of organization culture is the element which focuses on making
sure that a product, in the opinion of the customer, does what it is supposed to do.
A) ethics
B) technological
C) quality
D) diversity
E) innovation
Answer: C
Rationale:
The quality dimension of organization culture focuses on ensuring that products or services
meet or exceed customer expectations in terms of functionality, reliability, and performance.
54) Which of the following dimensions of an organization's culture is emphasized by the
management if it hopes to win customer loyalty and repeat purchases through customer
satisfaction with products or services?
A) ethics dimension
B) innovation dimension
C) quality dimension
D) diversity dimension
E) spirituality dimension
Answer: C
Rationale:
The quality dimension of organization culture is emphasized when management seeks to win
customer loyalty and repeat purchases through customer satisfaction with products or
services. Ensuring high-quality products or services is essential for maintaining customer
satisfaction.
55) The ________ dimension of organization culture is a facet of organization culture that
focuses on making sure that an organization emphasizes not only what is good for the
organization, but what is good for other human beings.
A) quality
B) customer
C) ethics
D) spirituality
E) innovation
Answer: C
Rationale:
The ethics dimension of organization culture focuses on ensuring that the organization
considers the ethical implications of its actions and decisions, not just for the organization
itself but also for other human beings and stakeholders.
56) Which of the following statements is true of the ethical dimension of an organization's
culture?
A) Rewarding ethical behavior of the past decreases the probability that organization
members will act ethically in the future.
B) Ethics training guarantees that employees will choose the desired ethical behavior in every
possible situation.
C) Ethics training normally focuses on developing a common understanding throughout the
organization of the role ethics plays in organizational operations.
D) Management should refrain from promoting employees on the sole basis of their previous
ethical behavior.
E) The ethics dimension of the organization's culture has historically been the most
emphasized dimension.
Answer: C
Rationale:
Ethics training in an organization typically focuses on developing a common understanding
of the role ethics plays in organizational operations and decision-making. It aims to promote
ethical behavior among employees by raising awareness and providing guidelines for ethical
conduct.
57) The ________ dimension of organization culture is an aspect that encourages the
application of new ideas to the improvement of organizational processes, products, or
services.
A) spirituality
B) quality
C) customer
D) innovation
E) diversity
Answer: D
Rationale:
The innovation dimension of organization culture focuses on encouraging creativity and the
application of new ideas to improve organizational processes, products, or services. It values
continuous improvement and adaptation to change.
58) The ________ dimension of organization culture is an aspect that encourages
organization members to integrate spiritual life and work.
A) innovation
B) spirituality
C) quality
D) diversity
E) ethics
Answer: B
Rationale:
The spirituality dimension of organization culture emphasizes the integration of spiritual
beliefs or values into work life. It focuses on the connection between personal beliefs and
work activities.
59) The ________ dimension of organization culture is a component that encourages the
existence of basic human differences among organization members.
A) spirituality
B) customer
C) diversity
D) innovation
E) ethics
Answer: C
Rationale:
The diversity dimension of organization culture encourages the recognition and acceptance of
basic human differences among organization members, such as differences in background,
culture, and perspective.
60) Which of the following is an advantage to organizations that emphasize the diversity
dimension of their culture?
A) increased perspectives on problem solving
B) lower organizational expenditure
C) greater customer loyalty towards their products
D) improved homogeneity of the workforce
E) higher levels of creativity among employees
Answer: A
Rationale:
Emphasizing the diversity dimension of organization culture can lead to increased
perspectives on problem-solving, as diverse teams bring a wider range of experiences and
viewpoints to the table. This can enhance creativity and innovation within the organization.
61) The ________ dimension of organization culture focuses on catering to the needs of those
individuals who buy goods and services produced.
A) customer
B) innovation
C) technological
D) spirituality
E) ethics
Answer: A
Rationale:
The customer dimension of organization culture focuses on understanding and meeting the
needs of customers who buy the organization's goods or services. It emphasizes customer
satisfaction and loyalty.
62) A(n) ________ is a dimension of an organization that helps to describe and reinforce the
beliefs, values, and norms in which an artifact exists.
A) archaeological artifact
B) cultural artifact
C) mentifact
D) family artifact
E) biofact
Answer: B
Rationale:
A cultural artifact is a dimension of an organization that helps to describe and reinforce its
beliefs, values, and norms. Cultural artifacts can include symbols, rituals, and stories that are
important to the organization's culture.
63) A(n) ________ is a belief of a person or social group in which they have an emotional
investment.
A) morale
B) value
C) aesthetic
D) virtue
E) vice
Answer: B
Rationale:
A value is a belief of a person or social group in which they have an emotional investment.
Values guide behavior and decision-making, shaping the culture of an organization.
64) A ________ is a formally drafted document that summarizes the primary beliefs within
the culture of a specific organization in which they have an emotional investment.
A) values statement
B) guidance document
C) bench memorandum
D) testament
E) green paper
Answer: A
Rationale:
A values statement is a formally drafted document that summarizes the primary beliefs within
the culture of a specific organization. It articulates the core values that guide the
organization's behavior and decisions.
65) Which of the following is a popular belief or story that becomes associated with a person
or institution and is considered to illustrate an organization culture ideal?
A) organizational saga
B) organizational ceremony
C) organizational myth
D) emblem
E) jargon
Answer: C
Rationale:
An organizational myth is a popular belief or story that becomes associated with a person or
institution and is considered to illustrate an organization culture ideal. Myths often convey
important cultural values and norms.
66) Which of the following is a narrative describing the adventures of a heroic individual or
family significantly linked to an organization's past or present?
A) organizational myth
B) organizational saga
C) organizational symbol
D) emblem
E) jargon
Answer: B
Rationale:
An organizational saga is a narrative describing the adventures of a heroic individual or
family significantly linked to an organization's past or present. Sagas are often used to
illustrate the organization's history and values.
67) The purpose of an organizational saga is to ________.
A) clarify the purpose of the organization
B) explain organizational beginnings or events that are of great significance to the
organization
C) identify and perpetuate the organization's shared values
D) build employee commitment reflected by organizational myths
E) appropriately integrate new employees within an organization's culture
Answer: C
Rationale:
The purpose of an organizational saga is to identify and perpetuate the organization's shared
values. Sagas help to reinforce the organization's culture and provide a sense of identity for
its members.
68) The act of passing organizational myths and sagas to other organization members is
known as organizational ________.
A) mentoring
B) identification
C) storytelling
D) configuration
E) proactivity
Answer: C
Rationale:
The act of passing organizational myths and sagas to other organization members is known as
organizational storytelling. Storytelling is a powerful way to convey cultural values and
beliefs within an organization.
69) In which of the following examples is the use of organizational language as a cultural
artifact most evident?
A) Lee Iacocca's efforts to save Chrysler Corporation from bankruptcy
B) Henry Ford's famous line: "Any customer can have a car painted any color that he wants
so long as it is black."
C) Prudential Life Insurance Company's use of the Rock of Gibraltar as a symbol of the
company's dependability, strength, and unchanging commitment to customers
D) Google's popular slogan: "Don't be evil."
E) Mary Kay Cosmetics' annual sales celebrations for employees
Answer: D
Rationale:
Google's slogan "Don't be evil" is an example of organizational language as a cultural
artifact. It reflects Google's values and beliefs about ethical behavior, which are important
aspects of its culture.
70) ________, an object that holds meaning beyond its intrinsic content, provides a roadmap
for what is important in a particular organization.
A) Organizational saga
B) Organizational symbol
C) Organizational myth
D) Jargon
E) Anecdote
Answer: B
Rationale:
An organizational symbol is an object that holds meaning beyond its intrinsic content. It
provides a roadmap for what is important in a particular organization, representing its values,
beliefs, and identity.
71) ________ refers to a formal activity conducted on important organizational occasions.
A) Organizational storytelling
B) Organizational saga
C) Organizational myth
D) Organizational ceremony
E) Organizational identification
Answer: D
Rationale:
Organizational ceremony refers to formal activities conducted on important organizational
occasions, such as award ceremonies, inauguration events, or annual meetings. These
ceremonies often reflect and reinforce the organization's culture and values.
72) Which one of the following includes compensation, satisfying work, and verbal
recognition?
A) organizational storytelling
B) organizational saga
C) organizational myth
D) organizational ceremony
E) organizational rewards
Answer: E
Rationale:
Organizational rewards include compensation, satisfying work, and verbal recognition. These
rewards are important for motivating employees and reinforcing desired behaviors within the
organization.
73) ________ is the process by which management can appropriately integrate new
employees within an organization's culture.
A) Organizational restructuring
B) Organizational identification
C) Organizational resilience
D) Organizational socialization
E) Organizational configuration
Answer: D
Rationale:
Organizational socialization is the process by which management can appropriately integrate
new employees within an organization's culture. It involves familiarizing new employees
with the organization's values, norms, and expectations.
74) Which of the following is the first step in an organizational socialization process?
A) providing initial work experiences
B) recruiting new employees
C) defining informal organization
D) providing role models
E) evaluating the cultural fit
Answer: B
Rationale:
The first step in an organizational socialization process is recruiting new employees. This
involves attracting and selecting individuals who are a good fit for the organization's culture.
75) Which of the following is the final step in an organizational socialization process?
A) providing initial work experiences
B) knowledge transfer to the new employees
C) defining informal organization
D) providing role models
E) evaluating the cultural fit
Answer: E
Rationale:
The final step in an organizational socialization process is evaluating the cultural fit of new
employees. This involves assessing how well new employees have integrated into the
organization's culture.
76) Which of the following is a characteristic of new recruits during their first year in an
organization?
A) exceptionally high productivity rates
B) low incidence of mistakes
C) struggle to fit within the organization
D) greater likelihood to break organizational rules
E) good acquaintance with organization culture
Answer: C
Rationale:
New recruits often struggle to fit within the organization during their first year. They may
face challenges adapting to the organization's culture, norms, and expectations.
77) What aspect of organization culture is reflected in the extent to which it facilitates the
achievement of organizational mission and objectives?
A) homogeneity
B) profitability
C) economy
D) diversity
E) health
Answer: E
Rationale:
The health of an organization culture is reflected in the extent to which it facilitates the
achievement of organizational mission and objectives. A healthy culture aligns with the
organization's goals and supports its success.
78) Midas', a jewelry chain, aims at launching more stores in the next five years. It began
recruiting new employees three months ago. Of late, the culture at Midas' has not been
facilitating the accomplishment of the organization's mission and objectives. More emphasis
was being laid on the accomplishment of the personal objectives of the employees. The
organizational culture at Midas' is, now, said to be ________.
A) diverse
B) irrelevant
C) homogeneous
D) unhealthy
E) omnipresent
Answer: D
Rationale:
The organizational culture at Midas' is said to be unhealthy because it is not facilitating the
accomplishment of the organization's mission and objectives. Instead, the culture is
emphasizing the personal objectives of employees, which may not align with the
organization's goals.
79) A(n) ________ culture is people-oriented.
A) diverse
B) healthy
C) homogeneous
D) unhealthy
E) omnipresent
Answer: B
Rationale:
A healthy culture is people-oriented, meaning it values and supports the well-being and
development of its employees. This type of culture is characterized by trust, collaboration,
and a focus on employee satisfaction.
80) Which of the following characteristics is found in a healthy organization culture?
A) strong results-orientation
B) profit-driven business practices
C) commitment to getting work done by any possible means
D) avoidance of risky business practices
E) unquestioned integrity and consistency
Answer: E
Rationale:
A healthy organization culture is characterized by unquestioned integrity and consistency.
This means that the organization's values and behaviors are aligned, and there is a strong
commitment to ethical conduct.
81) Provide a brief description of organization culture.
Answer: Organization culture is a set of shared values that organization members have
regarding the functioning and existence of their organization. The actual dimensions of a
particular culture are often difficult to define. Even employees in the same organization may
describe their culture differently. In part, this could be a reflection of their individual
experiences and the meanings ascribed to them.
Organization culture is not established at once by a manager, but evolves slowly over time.
Basically, organization culture can be thought of as the personality of the organization, a
description of how the organization functions. As such, organization culture has dimensions
such as organizational rituals, special language, norms, and habits. Organization culture can
be characterized in an organization by describing such dimensions. Management that
understands the significance of all such dimensions can use them to develop an organization
culture that is beneficial to the firm.
82) What is an organization subculture? What is its significance for an organization?
Answer: An organization subculture is a mini-culture within an organization that can reflect
the values and beliefs of a specific segment of an organization formed along lines such as
established departments or geographic regions. Managers must be aware of subcultures that
exist and how to manage them because subcultures can negatively or positively affect
management efforts, such as organizational planning. In managing organization culture,
managers sometimes have a tendency to manage only the dominant organization culture, the
shared values about organizational functioning held by the majority of organization members.
In managing organization culture, it's normally advisable for managers to consider the
characteristics and potential influence of an organization's dominant organization culture as
well as organization subcultures.
83) Write a short essay on the importance of organization culture.
Answer: Understanding and managing organization culture have become extremely important
issues for modern managers in achieving organizational success. According to Michael
Porter, a professor at Harvard Business School, organization culture is such an important
issue that managers should not merely be taking it seriously as a sound idea, but embedding it
into organizational strategy to help build a competitive advantage. Many management writers
believe an important prerequisite to organizational success is a manager's thorough
understanding of organization culture concepts. Only through such an understanding can a
manager begin to have impact on encouraging behavior of organization members that will
lead to organizational success.
84) What are the functions of organization culture?
Answer: In general terms, organization culture influences the behavior of everyone within an
organization and, if carefully crafted, can have a significant positive impact on organizational
success. Organization culture influences the way people carry out organizational processes
and can create immense pressure for organization members to act in ways consistent with the
culture. As a result, organization culture should reflect values that are conducive to
organizational goal attainment.
In more specific terms, organization culture has a variety of functions within an organization.
First, organization culture can enhance organizational productivity. Organization members
often become more productive as organization culture increases focus on such factors as
rewarding performance and setting goals. Second, organization culture can serve as a
component of organizational strategy. Following this line of reasoning, competitive
advantage arises from complex combinations of tangible as well as intangible resources. One
such intangible resource is a culture that enhances organizational success. Third, organization
culture provides a rationale for staffing. Management must make sure that new hires fit the
organization's culture. The employment interview is a prime opportunity for managers to see
whether applicants might fit within the organization culture and for applicants to assess
whether the organization culture is a good fit for their personal needs and aspirations. Within
the interview, employers are looking for clues to issues such as an applicant's work ethic and
personality while job seekers want to learn more about company culture issues, including the
allocation of rewards and promotions. Last, organization culture can act as a guideline for
making operational decisions. Given an explicit organization culture, organization members
tend to make decisions that are consistent with the values embedded in that culture.
85) How are organization cultures classified? What are the different types of organization
culture that exist?
Answer: According to the Competing Values Framework, cultures differ with respect to two
sets of opposite values. The first set of opposite values is organizational flexibility and
discretion versus organizational stability, order, and control. The second set of opposite
values is an internal organizational focus versus an external organizational focus. Depending
on how a culture contains various combinations of the competing values represented by these
two dimensions, cultures are divided into four types:
1. Clan culture — Clan culture is an organization culture characterized by a strong internal
focus with a high degree of flexibility and discretion. The clan culture derives its name from
the fact that this organization culture seems much like a family. This culture includes
activities that reflect shared values and goals, cohesion among organization members,
teamwork, and organization commitment to employees.
2. Adhocracy culture — Adhocracy culture is an organization culture characterized by
flexibility and discretion along with an external focus. An adhocracy is a culture reflecting an
organization with a simple structure or lack of structure. In essence, adhocracy is the opposite
of bureaucracy. Within the adhocracy culture one will find few rules or procedures. This
culture is characterized by a creative workplace where people are entrepreneurial, taking risks
to achieve success.
3. Hierarchy culture — Hierarchy culture is an organization culture characterized by an
internal focus along with an emphasis on stability and control. The workplace within this type
of culture is formal and structured. Leaders tend to focus on coordination and organization.
Individuals within the workplace are concerned about efficiency and formal rules and policies
govern how people operate.
4. Market culture — Market culture is an organization culture that reflects values that
emphasize stability and control along with an external focus. An organization with a market
culture is oriented toward all stakeholders in the market, not just customers. As such, this
culture emphasizes relationships with all constituencies including customers, suppliers,
contractors, government regulators, and unions. Leaders in this culture tend to be harddriving. The organization is focused on winning and emphasizes achieving stretch goals and
outpacing the competition.
86) How does building a hierarchy of objectives help build a high-performance organization
culture?
Answer: A hierarchy of objectives is a set of objectives wherein the overall objectives of the
organization are divided into subobjectives for all sections and levels of the organization. As
objectives at lower levels of the organization are accomplished, they contribute to the
attainment of objectives at the next higher level. Although defining objectives at lower levels
may be difficult, the effort used to develop the hierarchy is well spent. Even employees at the
lowest organizational levels will generally be more focused on performance when they see
the cascading set of objectives in the hierarchy of objectives. Throughout the organization,
objectives should be challenging and have clear rewards to be earned when reached.
87) Briefly explain the concept of organizational commitment.
Answer: Organizational commitment can be defined as the dedication of organization
members to uphold the values of the organization and to make worthwhile contributions to
fulfilling organizational purpose. Research indicates that one way to build organizational
commitment is to maintain an organizational focus on providing excellent customer service.
Such a focus seems to result in higher job satisfaction which, in turn, seems to help build
stronger organizational commitment. Overall, this increased commitment to the organization
seems to raise the desire of employees to remain in the organization and focus on providing
quality goods and services. Foundation studies in this area indicate that organizational
commitment serves as a "psychological bond" that influences individuals to act in ways that
are consistent with the interests of the organization.
88) What can managers do to increase the probability that ethics training influences
organization members to act ethically over time?
Answer: First, after ethics training concludes, management can provide employees with a
vehicle for making ethical queries anonymously. Some organizations provide a hotline that
employees can call to get advice about ethical dilemmas. Management can also try to make
sure organization members act ethically after ethics training concludes by establishing
methods for the resurfacing of topics covered in ethics training. For example, a company can
use its intranet, publish brochures, and even use screensavers to keep reminding employees
about issues covered in ethics training. Another tactic management can use to try to ensure
organization members act ethically after ethics training, is to promote employees who behave
ethically. Rewarding ethical behavior of the past is a powerful vehicle for increasing the
probability that organization members will act ethically in the future.
89) Briefly explain the role of organizational rewards as a cultural artifact.
Answer: Rewards tailor behavior in some way in most organizations. Some rewards come
from sources within the organization and can include compensation, satisfying work, and
verbal recognition. Rewards can also come from outside the organization and can include
comments from customers, competitors, and suppliers. Management should continually be
involved with identifying and rewarding those individuals who uphold the values of the
organization. Rewarding people for engaging in behavior that reflects important organization
culture values is critical in increasing the probability of organizational success.
90) Give a brief description of the organizational socialization process for new employees.
Answer: Organizational socialization is the process by which management can appropriately
integrate new employees within an organization's culture. The organizational socialization
process can begin by carefully planning the organization's recruitment process. As part of this
planning, management should determine what type of individual characteristics would best fit
within the organization culture. Such characteristics might include an individual's
determination to be successful in a job, commitment to personal ethics, and level of selfconfidence and competitiveness. After such best-fit characteristics have been determined,
management should use the recruitment process to identify individuals possessing those
characteristics.
Once individuals possessing the best-fit characteristics are hired, management should
continue their socialization process by carefully crafting meaningful experiences for them
within the first four to six weeks of new recruits' lives within the organization. In this
situation, experiences are meaningful if they expose new hires to important organization
culture values and emphasize the importance of new individuals' commitment to them. Such
values might include the importance of tackling challenging work, openness to training for
handling new situations, and the importance of functioning as a team member. Such initial
experiences can also involve new recruits observing and practicing new jobs with input from
established organization members.
Once individuals with appropriate personal characteristics have been hired and have
experienced meaningful activities within the first four to six weeks, management should
continue with the socialization of these individuals by exposing the new recruits to
appropriate role models. Management should be focused on connecting new recruits to role
models who possess vital characteristics that would be valuable for new recruits. The role
models should illustrate cultural values such as being productive, highly motivated, loyal to
the organization, and having high trust in management.
As a final step in the organizational socialization process, management must control the
cultural fit of new recruits. New recruits are generally considered new for about one year.
During this first year within the organization, management must keep in mind that new
recruits will be making mistakes and struggling to appropriately fit within organization
culture. This struggle to acquire organizational fit can be frustrating to new recruits and lead
to premature turnover if not handled sensitively by management. New recruits must be able
to practice new jobs, at times employing trial and error, without fear of punishment or failure.
Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546
