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Organizational Behavior, 14e (Robbins/Judge)

Chapter 16 Organizational Culture

1) Alessio's boss doesn't care whether Alessio works at home, at the office, or from his beach
house. All he cares about is that the project is completed on time, on budget, and with exemplary
quality. Which characteristic of organizational culture best describes this aspect of Alessio's job?
A) low risk taking
B) high outcome orientation
C) high attention to detail
D) low aggressiveness
E) high stability
Answer: B
Explanation: Outcome orientation is the organizational culture characteristic that describes the
degree to which management focuses on results or outcomes rather than on the techniques and
processes used to achieve them. Alessio's boss has a high focus on outcome.
Diff: 2 Page Ref: 520
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Organizational Culture
Quest. Category: Application
LO: 1

2) Which of the following is not a characteristic of organizational culture?


A) attention to detail
B) innovation
C) formality orientation
D) team orientation
E) outcome orientation
Answer: C
Explanation: Seven primary characteristics seem to capture the essence of an organization's
culture: innovation and risk taking, attention to detail, outcome orientation, people orientation,
team orientation, aggressiveness, and stability.
Diff: 2 Page Ref: 520
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Characteristics of an Organizational Culture
Quest. Category: Concept/Definitional
LO: 1

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3) Jose is a manager for a manufacturing company in which managers are expected to fully
document all decisions, and it is important to provide detailed data to support any
recommendations. Which characteristic of organizational culture best describes this aspect of
Jose's job?
A) low team orientation
B) high aggressiveness
C) low risk taking
D) high stability
E) high people orientation
Answer: C
Explanation: Innovation and risk taking describes the degree to which employees are encouraged
to be innovative and take risks. Jose's company wants full research and documentation and seems
reluctant to take risks and is a low risk taking culture.
Diff: 2 Page Ref: 520
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Attention to Detail
Quest. Category: Application
LO: 1

4) ________ orientation 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
E) Relationship
Answer: D
Explanation: People orientation describes the degree to which management decisions take into
consideration the effect of outcomes on people within the organization. A company in which
management is concerned with high productivity, regardless of the impact on employee morale
or turnover rates low in people orientation.
Diff: 2 Page Ref: 521
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: People Orientation
Quest. Category: Concept/Definitional
LO: 1

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5) 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
Explanation: Aggressiveness describes the degree to which people are aggressive and
competitive rather than easygoing.
Diff: 2 Page Ref: 520
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Aggressiveness
Quest. Category: Concept/Definitional
LO: 1

6) 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
Explanation: The concept of organizational culture is concerned with how employees perceive
the characteristics of an organization's culture, not whether they like them, and is therefore a
descriptive term. On the other hand, the concept of job satisfaction seeks to measure how
employees feel about the organization's expectations, reward practices and therefore is an
evaluative term.
Diff: 2 Page Ref: 521-522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Organizational Culture and Job Satisfaction
Quest. Category: Concept/Definitional
LO: 1

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7) The macro view of culture that gives an organization its distinct personality is its ________
culture.
A) dominant
B) sub-
C) strong
D) national
E) marginal
Answer: A
Explanation: A dominant culture expresses the core values shared by a majority of the
organization's members. When we talk about an organization's culture, we are referring to its
dominant culture, which gives an organization its distinct personality.
Diff: 1 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Dominant Culture
Quest. Category: Concept/Definitional
LO: 1

8) Jean works for HJC publishing which is a publisher of scientific journals. The company is
dominated by low risk taking and high attention to detail. Jean's department is also committed to
high team orientation and provides many team-building activities in which Jean and other
department members work together and socialize. Which of the following statements best
describes Jean's department?
A) It represents the dominant culture.
B) It does not include core values.
C) It is a subculture sharing core values.
D) The organizational culture is undefined.
E) It has low stability.
Answer: C
Explanation: Jean's department is a subculture that reflects the common situations, or
experiences faced by group members in the same department or location. It includes the core
values of the dominant culture plus additional team values unique to members of the department.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Dominant Culture
Quest. Category: Application
LO: 1

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9) 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
Explanation: Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences faced by groups of members in the same department or location. The
purchasing department can have a subculture that includes the core values of the dominant
culture plus additional values unique to members of the purchasing department.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Subcultures
Quest. Category: Concept/Definitional
LO: 1

10) Which characteristic is not reflective of subcultures?


A) includes core values of the organization
B) typically defined by department designations
C) includes values shared only within the organization
D) can influence individuals behavior
E) includes values unique to members of a department or group
Answer: C
Explanation: Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences faced by groups of members in the same department or location. They
include the core values of the dominant culture plus additional values unique to members of a
department. Many organizations have subcultures that can influence members' behavior.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Subcultures
Quest. Category: Concept/Definitional
LO: 1

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11) 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
Explanation: The dominant culture includes the core values, the primary or dominant values that
are accepted throughout the organization.
Diff: 1 Page Ref: 522-523
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Core Values
Quest. Category: Concept/Definitional
LO: 1

12) Which of the following terms is part of the definition 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
Explanation: In a strong culture, the organization's core values are both intensely held and widely
shared. The more members who accept the core values and the greater their commitment, the
stronger the culture and the greater its influence on member behavior because the high degree of
sharedness and intensity creates an internal climate of high behavioral control.
Diff: 1 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Strong Cultures
Quest. Category: Concept/Definitional
LO: 1

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13) ________ are indicators of a strong organizational culture.
A) High levels of dissension
B) Weak managers
C) Completely horizontal organizational charts
D) Narrowly defined roles
E) Widely shared values
Answer: E
Explanation: In a strong culture, the organization's core values are both intensely held and widely
shared. The more members who accept the core values and the greater their commitment, the
stronger the culture and the greater its influence on member behavior because the high degree of
sharedness and intensity creates an internal climate of high behavioral control.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Strong Cultures
Quest. Category: Concept/Definitional
LO: 1

14) 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) none of the above
Answer: A
Explanation: A strong culture should reduce employee turnover, because it demonstrates high
agreement about what the organization represents. Such unanimity of purpose builds
cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen
employees' propensity to leave.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Strong Cultures
Quest. Category: Concept/Definitional
LO: 1

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15) 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) close ties between workers within the organization
Answer: C
Explanation: In a strong culture, the organization's core values are both intensely held and widely
shared. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment.
These qualities, in turn, lessen employees' propensity to leave.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Strong Cultures
Quest. Category: Concept/Definitional
LO: 1

16) A strong culture can act as a substitute for which of the following?
A) institutionalization
B) formalization
C) socialization
D) organizational rules
E) social support
Answer: B
Explanation: High formalization creates predictability, orderliness, and consistency. A strong
culture achieves the same end without the need for written documentation. Formalization and
culture can be viewed as two different roads to a common destination.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Strong Culture versus Formalization
Quest. Category: Concept/Definitional
LO: 1

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17) High formalization in an organization creates all of the following except ________.
A) predictability
B) cohesiveness
C) orderliness
D) consistency
E) none of the above
Answer: B
Explanation: High formalization creates predictability, orderliness, and consistency. A strong
culture achieves the same end without the need for written documentation. Formalization and
culture can be viewed as two different roads to a common destination.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Formalization
Quest. Category: Concept/Definitional
LO: 2

18) Culture performs all the following functions except ________.


A) displaying the dominance of particular organizations
B) enhancing social system stability
C) conveying a sense of identity for organization members
D) facilitating commitment to something larger than individual self-interest
E) defining boundaries
Answer: A
Explanation: Culture has a boundary-defining role. It conveys a sense of identity for organization
members. Culture facilitates the generation of commitment to something larger than individual
self-interest. It enhances the stability of the social system. It does not display organizational
dominance.
Diff: 2 Page Ref: 523
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture's Functions
Quest. Category: Concept/Definitional
LO: 2

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19) 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
Explanation: Today's trend toward decentralized organizations makes culture more important
than ever. When formal authority and control systems are reduced, culture's shared meaning
points everyone in the same direction.
Diff: 3 Page Ref: 524
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture's Functions
Quest. Category: Concept/Definitional
LO: 2

20) Janice works for a pet store in which everyone is absolutely committed to the happiness of
the animals. Often employees, bosses and hourly workers alike, come into the store "off the
clock" and spend time socializing and training the animals. Everyone loves the store, the
animals, and their jobs. According to the information provided, Janice encounters a ________ in
her job.
A) positive safety climate
B) positive performance climate
C) negative safety climate
D) positive diversity climate
E) negative performance climate
Answer: B
Explanation: Organizational climate refers to the shared perceptions organizational members
have about their organization and work environment. When everyone has the same general
feelings about what's important, the effect of these attitudes will be more than the sum of the
individual parts. A person who encounters a positive climate for performance will think about
doing a good job more often and will believe others support his or her success. Janice's job
promotes a positive performance climate.
Diff: 2 Page Ref: 524
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture's Functions
Quest. Category: Application
LO: 2

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21) Institutionalization can be an asset and a liability. In which of the following situations is it a
liability?
A) It doesn't go out of business when a leader is changed.
B) Acceptable modes of behavior are self evident to all.
C) Maintaining the organization becomes an end in itself.
D) The organization is valued for itself.
E) The organization has a life apart from the founders.
Answer: C
Explanation: Behaviors and habits that should be questioned and analyzed become taken for
granted, which can stifle innovation and make maintaining the organization's culture an end in
itself.
Diff: 2 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture as a Liability
Quest. Category: Concept/Definitional
LO: 2

22) Culture is most likely to be a liability when ________.


A) it increases the consistency of behavior
B) the organization's environment is dynamic
C) the organization's management is ineffectual
D) it reduces ambiguity
E) countercultures are integrated into the dominant cultures
Answer: B
Explanation: Culture is a liability when the shared values are not in agreement with those that
further the organization's effectiveness. This is most likely when an organization's environment
is dynamic, undergoing rapid change, and its entrenched culture may no longer be appropriate.
Diff: 2 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Barriers to Change
Quest. Category: Concept/Definitional
LO: 2

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23) Consistency of behavior is an asset to an organization when it faces ________.
A) a dynamic environment
B) an unknown environment
C) social upheaval
D) massive changes
E) a stable environment
Answer: E
Explanation: Consistency of behavior, an asset in a stable environment, may then burden the
organization and make it difficult to respond to changes. Strong cultures worked well for them in
the past but become barriers to change when "business as usual" is no longer effective.
Diff: 2 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Barriers to Change
Quest. Category: Concept/Definitional
LO: 2

24) In recent years, ________ has become the primary concern in acquisitions and mergers.
A) cultural compatibility
B) cultural synergy
C) financial advantages
D) product synergy
E) value dominance
Answer: A
Explanation: Historically, when management looked at acquisition or merger decisions, the key
factors were financial advantage and product synergy. In recent years, cultural compatibility has
become the primary concern. All things being equal, whether the acquisition actually works
seems to have more to do with how well the two organizations' cultures match up.
Diff: 2 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Barriers to Acquisitions and Mergers
Quest. Category: Concept/Definitional
LO: 2

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25) The ultimate source of an organization's culture is ________.
A) top management
B) the environment
C) the country in which the organization operates
D) the organization's founders
E) the belief systems of it employees
Answer: D
Explanation: An organization's customs, traditions, and general way of doing things are largely
due to what it has done before and how successful it was in doing it. Because of this, the ultimate
source of an organization's culture tends to be its founders.
Diff: 2 Page Ref: 526
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Culture Creation
Quest. Category: Concept/Definitional
LO: 3

26) Culture creation occurs in all of the following ways except when ________.
A) founders hire and keep employees who think and feel the way they do
B) founders indoctrinate and socialize employees to their way of thinking and feeling
C) founders develop their vision covertly
D) founders' behavior acts as a role model
E) founders refuse to be constrained by previous ideologies
Answer: C
Explanation: Culture creation occurs in three ways. First, founders hire and keep only employees
who think and feel the same way they do. Second, they indoctrinate and socialize these
employees to their way of thinking and feeling. And finally, the founders' own behavior
encourages employees to identify with them and internalize their beliefs, values, and
assumptions.
Diff: 2 Page Ref: 526
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Culture Creation
Quest. Category: Concept/Definitional
LO: 3

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27) All of the following are factors that serve to sustain organizational cultures except ________.
A) selection
B) orientation
C) socialization
D) top management
E) frugality
Answer: E
Explanation: Three forces play a particularly important part in sustaining a culture: selection and
orientation practices, the actions of top management, and socialization methods.
Diff: 2 Page Ref: 527
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Sustaining Culture
Quest. Category: Concept/Definitional
LO: 3

28) The selection process helps sustain the organization's culture by ________.
A) establishing and enforcing norms
B) ensuring that candidates fit well within the organization
C) socializing the applicant
D) identifying individuals who have the skills to perform certain jobs
E) rewarding conformity
Answer: B
Explanation: Selection is a two-way street, allowing employer or applicant to avoid a mismatch
and sustaining an organization's culture by selecting out those who might attack or undermine its
core values.
Diff: 2 Page Ref: 527
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Selection
Quest. Category: Concept/Definitional
LO: 3

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29) The selection process helps candidates learn about an organization. If employees perceive a
conflict between their values and those of the organization, this gives them a chance to
________.
A) work to change the organization
B) express their concerns
C) inform the organization of appropriate changes
D) self-select out of the applicant pool
E) rectify their cognitive dissonance
Answer: D
Explanation: Selection is a two-way street, allowing employer or applicant to avoid a mismatch
and sustaining an organization's culture by selecting out those who might attack or undermine its
core values.
Diff: 2 Page Ref: 527
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Selection
Quest. Category: Concept/Definitional
LO: 3

30) Top management has a major impact on the organization's culture through ________.
A) establishing norms that filter down through the organization
B) ensuring a proper match of personal and organizational values
C) socializing new applicants in the pre-hiring phase
D) providing a framework for metamorphosis of new hires
E) properly rewarding management's initiatives
Answer: A
Explanation: The actions of top management also have a major impact on the organization's
culture. Through words and behavior, senior executives establish norms that filter through the
organization about, for instance, whether risk taking is desirable, how much freedom managers
should give employees, what is appropriate dress, and what actions pay off in terms of pay
raises, promotions, and other rewards.
Diff: 2 Page Ref: 527
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Top Management
Quest. Category: Concept/Definitional
LO: 3

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31) The process through which employees are adapted to an organization's culture is called
________.
A) personalization
B) mentoring
C) socialization
D) institutionalization
E) intimidation
Answer: C
Explanation: No matter how good a job the organization does in recruiting and selection, new
employees are not fully indoctrinated in the organization's culture and can disrupt beliefs and
customs already in place. The process that helps new employees adapt to the prevailing culture is
socialization.
Diff: 2 Page Ref: 528
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Socialization
Quest. Category: Concept/Definitional
LO: 3

32) Jennifer is opening a new clothing boutique and she wants to cultivate a positive, hip, culture
at the store. Which of the following is not something that Jennifer could do to create the culture
that she desires?
A) Hire sales staff that wears the style of clothing that she intends to promote.
B) Dress in very modern and hip fashions for her staff interviews.
C) Offer the staff flexible schedules that coordinate with their hobbies or studies.
D) Establish firm rules and dress codes during the staff orientation session.
E) Clearly express in a mission statement the type of service desired at the store.
Answer: D
Explanation: Three forces play a particularly important part in sustaining a culture: selection and
orientation practices, the actions of top management, and socialization methods. Jennifer should
hire people that fit her values in attitude and dress, offer positive work schedules and express her
statement. She should not have high formalization in the form of rules.
Diff: 2 Page Ref: 527-528
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Stages of Socialization
Quest. Category: Application
LO: 3

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33) The correct order for the stages of the socialization process is ________.
A) prearrival, metamorphosis, encounter
B) prearrival, encounter, ritual
C) prearrival, ritual, encounter
D) prearrival, encounter, metamorphosis
E) prearrival, ritual, arrival
Answer: D
Explanation: We can think of socialization as a process with three stages: prearrival, encounter,
and metamorphosis.
Diff: 2 Page Ref: 528
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Stages of Socialization
Quest. Category: Concept/Definitional
LO: 3

34) Elsa joined her new law firm expecting to have a part in exciting environmental law cases,
and cutting edge research. After one month at the firm she still hasn't been assigned a case and
spends most of her time filing standardized appeals for title disputes with insurance companies.
In which stage of the socialization process is Elsa?
A) prearrival
B) encounter
C) metamorphosis
D) ritual
E) systemic
Answer: B
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality. Elsa is in the encounter stage.
Diff: 2 Page Ref: 529
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Application
LO: 3

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35) The employee compares her expectations to organizational reality in which stage of
socialization?
A) prearrival
B) encounter
C) metamorphosis
D) ritual
E) analysis
Answer: B
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality.
Diff: 2 Page Ref: 529
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Concept/Definitional
LO: 3

36) If there is a basic conflict between the individual's expectations and the reality of working in
an organization, the employee is most likely to be disillusioned and quit during which stage of
socialization?
A) prearrival
B) ritual
C) encounter
D) metamorphosis
E) reflection
Answer: C
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality. A new member may become disillusioned
enough with the reality to resign.
Diff: 2 Page Ref: 529
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Concept/Definitional
LO: 3

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37) The time when a new employee sees what the organization is really like and realizes that
expectations and reality may diverge is called the ________ stage.
A) encounter
B) exploration
C) establishment
D) metamorphosis
E) mirroring
Answer: A
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality.
Diff: 2 Page Ref: 529
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Concept/Definitional
LO: 3

38) Javier is starting a job for an advertising agency as a graphic designer. He is highly creative.
Which of the following socialization options would be least effective in Javier's cultural
socialization process?
A) Javier in allowed to begin designing a small portion of a project without any formal training.
B) Javier's boss feels that Javier's skills and experience require little training.
C) Javier is not expected to advance to taking on his own project until he's ready
D) Javier is appointed a mentor and is told he must follow his mentor's directions.
E) Javier is socialized through lunches with each of his team members.
Answer: D
Explanation: Creative fields, such as advertising, rely on individual practices. Their programs are
informal, individual, random, variable, and disjunctive and emphasize investiture and are more
likely to give newcomers an innovative sense of their role and methods of working. Javier would
be better left alone, without a mentor tightly monitoring his work.
Diff: 3 Page Ref: 530
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Socialization
Quest. Category: Application
LO: 3

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39) New employees are usually comfortable with their organizations by the end of the ________
stage of socialization.
A) encounter
B) exploration
C) establishment
D) metamorphosis
E) adaptation
Answer: D
Explanation: To work out any problems discovered during the encounter stage, the new member
changes or goes through the metamorphosis stage, by the end of which they are usually
comfortable in their new position.
Diff: 2 Page Ref: 529-530
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Metamorphosis Stage
Quest. Category: Concept/Definitional
LO: 3

40) Which of the following is not a means of transmitting culture within an organization?
A) stories
B) aversion therapy
C) rituals
D) language
E) material symbols
Answer: B
Explanation: Culture is transmitted to employees in a number of forms, the most potent being
stories, rituals, material symbols, and language.
Diff: 2 Page Ref: 530
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Transmitting Culture
Quest. Category: Concept/Definitional
LO: 4

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41) ________ typically contain(s) a narrative of events about the organization's founders, rule
breaking, or reactions to past mistakes.
A) Stories
B) Material symbols
C) Rituals
D) Language
E) Reflections
Answer: A
Explanation: Stories circulate through organizations. They typically contain a narrative of events
about the organization's founders, rule breaking, rags-to-riches successes, reductions in the
workforce, relocation of employees, reactions to past mistakes, and organizational coping.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Stories
Quest. Category: Concept/Definitional
LO: 4

42) Phil is new at JPS Corp, but after a week he already knows that the founder of the
corporation started the business in his garage with only $10,000 and one client. This information
was most likely transmitted to Phil by way of ________.
A) stories
B) material symbols
C) rituals
D) language
E) reflections
Answer: A
Explanation: Phil most likely knows this legend through the passing of stories. Stories circulate
through organizations. They typically contain a narrative of events about the organization's
founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of
employees, and organizational coping.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Stories
Quest. Category: Application
LO: 4

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43) ________ help(s) employees understand the history and past actions of an organization, and
make the current organizational culture more legitimate.
A) Stories
B) Material symbols
C) Rituals
D) Language
E) Reflections
Answer: A
Explanation: Stories anchor the present in the past and explain and legitimate current practices.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Stories
Quest. Category: Application
LO: 4

44) Which of the following is not an example of stories?


A) how the new standard operating procedures will be implemented
B) how the founders started the company
C) how the workforce grew from three to three hundred in one year
D) how the company had to cut one thousand employees last year
E) how the company redesigned their product after near bankruptcy
Answer: A
Explanation: Stories circulate through organizations. They typically contain a narrative of events
about the organization's founders, rule breaking, rags-to-riches successes, reductions in the
workforce, relocation of employees, and organizational coping. Implementation of operating
procedures are not considered stories.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Stories
Quest. Category: Application
LO: 4

22
Copyright © 2011 Pearson Education, Inc.
45) Which one of the following terms is not a component of rituals?
A) material symbols
B) sequenced activities
C) repetition
D) key values
E) reinforcement
Answer: A
Explanation: Rituals are repetitive sequences of activities that express and reinforce the key
values of the organization, what goals are most important, which people are important, and
which people are expendable.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Rituals
Quest. Category: Concept/Definitional
LO: 4

46) 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
Explanation: Rituals are repetitive sequences of activities that express and reinforce the key
values of the organization, what goals are most important, which people are important, and
which people are expendable.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Rituals
Quest. Category: Concept/Definitional
LO: 4

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47) 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
Explanation: Rituals are repetitive sequences of activities that express and reinforce the key
values of the organization, what goals are most important, which people are important, and
which people are expendable. Office placement is not a ritual.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Rituals
Quest. Category: Application
LO: 4

48) All of the following are examples of material symbols except ________.
A) top executives' use of the company jet
B) a swimming pool for the employees to use
C) new employee orientations
D) luxury cars for executives
E) private parking spots
Answer: C
Explanation: The layout of corporate headquarters, the types of automobiles top executives are
given, company swimming pools, and the presence or absence of corporate aircraft are a few
examples of material symbols. Others include the size of offices, the elegance of furnishings,
executive perks, and attire.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Material Symbols
Quest. Category: Application
LO: 4

24
Copyright © 2011 Pearson Education, Inc.
49) Which of the following is not a message conveyed by material symbols?
A) who is important
B) top management's egalitarianism
C) who is going to be hired or fired
D) appropriate risk-taking behavior
E) appropriate authoritarian behavior
Answer: C
Explanation: Material symbols such as the size of offices, the elegance of furnishings, executive
perks, and attire, convey to employees who is important, the degree of egalitarianism top
management desires, and the kinds of behavior that are appropriate, such as risk taking,
conservative, authoritarian, participative, individualistic, or social.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Material Symbols
Quest. Category: Concept/Definitional
LO: 4

50) An organizational culture most likely to shape high ethical standards is one that ________.
A) is high in risk tolerance
B) is low-to-moderate in aggressiveness
C) focuses on means as well as outcomes
D) all of the above
E) none of the above
Answer: D
Explanation: The organizational culture most likely to shape high ethical standards among its
members is one that's high in risk tolerance, low to moderate in aggressiveness, and focused on
means as well as outcomes.
Diff: 2 Page Ref: 532
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Ethical Reasoning
Objective: Ethical Organizational Culture
Quest. Category: Concept/Definitional
LO: 5

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Copyright © 2011 Pearson Education, Inc.
51) To create a more ethical culture, management should do 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
Explanation: Research suggests managers can have an effect on the ethical behavior of
employees by adhering to the following principles: be a visible role model, communicate ethical
expectations, provide ethical training, and provide protective mechanisms.
Diff: 2 Page Ref: 533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Analytic Skills; Ethical Reasoning
Objective: Creating an Ethical Organizational Culture
Quest. Category: Concept/Definitional
LO: 5

52) Phyllis works for a corporation that recently fired three top managers who were caught using
the company credit cards to lavishly furnish their offices and even purchase "office" furniture
that was found in their personal homes. Which method of maintaining an ethical culture is
Phyllis's company pursuing?
A) serve as a visible role model
B) communicate ethical expectations
C) provide ethical training
D) visibly punish unethical acts
E) provide protective mechanisms
Answer: D
Explanation: Research suggests managers can have an effect on the ethical behavior of
employees by adhering to the following principles: be a visible role model, communicate ethical
expectations, provide ethical training, and provide protective mechanisms. In this example the
company is visibly punishing unethical acts.
Diff: 2 Page Ref: 533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Analytic Skills; Ethical Reasoning
Objective: Creating an Ethical Organizational Culture
Quest. Category: Application
LO: 5

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Copyright © 2011 Pearson Education, Inc.
53) What does a positive organizational culture do?
A) uses negative reinforcement and punishment
B) rarely uses rewards
C) emphasizes individual growth
D) emphasizes building on the organization's strengths
E) emphasizes organizational vitality
Answer: C
Explanation: A positive organizational culture emphasizes building on employee strengths,
rewards more than it punishes, and emphasizes individual vitality and growth.
Diff: 2 Page Ref: 534
Topic: Creating a Positive Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating a Positive Organizational Culture
Quest. Category: Concept/Definitional
LO: 6

54) Larry has an employee that is amazing at clearly seeing rules and enforcing them. He has
recently promoted her to the lead position in quality assurance. Which aspect of creating a
positive organizational culture is Larry utilizing?
A) rewarding more than punishing
B) building on organization strengths
C) emphasize individual growth
D) building on employee strengths
E) emphasizing organizational vitality and growth
Answer: D
Explanation: Larry is building on employee strengths. Because his employee is good at
regulating rules, he is showing her how she can put that strength to use. Although a positive
organizational culture does not ignore problems, it does emphasize showing workers how they
can capitalize on their strengths.
Diff: 2 Page Ref: 534
Topic: Creating a Positive Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating a Positive Organizational Culture
Quest. Category: Application
LO: 6

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Copyright © 2011 Pearson Education, Inc.
55) When looking at an e-mail from one of her project managers, Patricia noticed that the e-mail
was sent at nine-thirty in the evening. The next day she personally went to the employee's
cubicle and told him how much she appreciated him staying late to get the project to the client on
time. Which aspect of creating a positive organizational culture is Patricia utilizing?
A) rewarding more than punishing
B) building on organization strengths
C) emphasize individual growth
D) building on employee strengths
E) emphasizing organizational vitality and growth
Answer: A
Explanation: Patricia is utilizing rewards, rather than punishment. Most organizations are
focused on extrinsic rewards such as pay and promotions, and often forget about the power of
smaller rewards such as the praise that Patricia is giving.
Diff: 2 Page Ref: 534
Topic: Creating a Positive Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating a Positive Organizational Culture
Quest. Category: Application
LO: 6

56) Barbara is the lead editor for a small, city newspaper. One of her advertising sales
representatives is pulling in a lot of restaurant clients. Barbara realizes that the representative is
quite knowledgeable about food and speaks quite elegantly when describing different dishes. She
has begun discussing with the representative the possibility of collaborating with a writer to
include a weekly restaurant review, which includes the representative on the by-line. After the
first couple of reviews, the representative is able to increase ad sizes and sales. He is very happy
with his new job diversification. Which aspect of creating a positive organizational culture is
Barbara utilizing?
A) rewarding more than punishing
B) building on organization strengths
C) emphasize individual growth
D) creating loose management oversight
E) emphasizing organizational vitality and growth
Answer: C
Explanation: A positive organizational culture emphasizes not only organizational effectiveness
but also individuals' growth. No organization will get the best from employees who see
themselves as mere tools or parts of the organization. Barbara is helping her employee discover
new aspects of his abilities and giving him new career opportunities.
Diff: 2 Page Ref: 535
Topic: Creating a Positive Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating a Positive Organizational Culture
Quest. Category: Application
LO: 6

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Copyright © 2011 Pearson Education, Inc.
57) Organizations that promote a spiritual culture ________.
A) have organized religious practices
B) adopt a corporate religion
C) recognize that people have both a mind and a spirit
D) de-emphasize community in the work place
E) tend to downplay the importance of employee satisfaction
Answer: C
Explanation: Workplace spirituality is not about organized religious practices. It's not about God
or theology. Workplace spirituality recognizes that people have an inner life that nourishes and is
nourished by meaningful work in the context of community.
Diff: 2 Page Ref: 536
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Concept/Definitional
LO: 7

58) Which of the following is not a common cultural characteristic evident in a spiritual
organization?
A) strong sense of purpose
B) trust and respect
C) material symbols
D) humanistic work practices
E) toleration of employee expression
Answer: C
Explanation: There are four cultural characteristics that tend to be evident in spiritual
organizations: strong sense of purpose, trust and respect, humanistic work practices, and
toleration of employee expression. Material symbols are a way that employees learn culture.
Diff: 2 Page Ref: 538
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Concept/Definitional
LO: 7

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59) A corporation that makes sure that all of their products are purchased directly from the
producers, effectively eliminating the middle-man, and striving for fair trade practices is
engaging in ________, a common element of a spiritual organization.
A) strong sense of purpose
B) trust and respect
C) material symbols
D) humanistic work practices
E) toleration of employee expression
Answer: A
Explanation: Spiritual organizations build their cultures around a meaningful purpose, such as
fair trade practices. Although profits may be important, they're not the primary values of the
organization. People want to be inspired by a purpose they believe is important and worthwhile.
Diff: 2 Page Ref: 538
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Application
LO: 7

60) HUP corporation discussed the economic downturn with all of the employees and offered
them the option to have the entire corporation reduce their hours to a part time status, or force
management to reduce the staff by fifteen percent. Management allowed the employees to vote
on the best method, and they chose to go part time. HUP is engaging in ________, a common
element of a spiritual organization.
A) strong sense of purpose
B) trust and respect
C) material symbols
D) humanistic work practices
E) toleration of employee expression
Answer: D
Explanation: Humanistic work practices include flexible work schedules, group-and
organization-based rewards, narrowing of pay and status differentials, guarantees of individual
worker rights, employee empowerment, and job security. HUP is engaging in humanistic work
practices by keeping everyone employed and by allowing the employees to be a part of the
decision.
Diff: 2 Page Ref: 538
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Application
LO: 7

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61) Which of the following is not a criticism of the idea of the spiritual organizational culture?
A) there is very little research
B) work and religion should be separate
C) spirituality and profits aren't compatible
D) it helps people find purpose in work
E) there is no scientific foundation
Answer: D
Explanation: Critics of the spirituality movement in organizations have focused on three issues.
First is the question of scientific foundation. What really is workplace spirituality? Second, are
spiritual organizations legitimate? Specifically, do organizations have the right to impose
spiritual values on their employees? Third is the question of economics: Are spirituality and
profits compatible?
Diff: 2 Page Ref: 539
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Concept/Definitional
LO: 7

62) How might U.S. managers be culturally sensitive?


A) discuss religion more
B) discuss politics frequently
C) listen more
D) speak quickly
E) talk in a high tone of voice
Answer: C
Explanation: Some ways in which U.S. managers can be culturally sensitive include talking in a
low tone of voice, speaking slowly, listening more, and avoiding discussions of religion and
politics.
Diff: 2 Page Ref: 540
Topic: Global Implications
Skill: AACSB: Analytic Skills; Multicultural and Diversity
Objective: Globalization and Workforce Diversity
Quest. Category: Concept/Definitional
LO: 8

31
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63) Which of the following is not a general perception that the international business community
has of U.S. managers?
A) arrogant
B) loud
C) self-absorbed
D) capitalist
E) unethical
Answer: E
Explanation: The United States is a dominant force in business and in culture, and with that
influence comes a reputation. It is relatively accepted that U.S. citizens abroad are seen
throughout the world as arrogant people, totally self-absorbed, capitalist concerned, and loud.
However, bribery and other unethical practices are not generally expected from U.S.
management abroad.
Diff: 2 Page Ref: 540
Topic: Global Implications
Skill: AACSB: Analytic Skills; Multicultural and Diversity
Objective: Globalization and Workforce Diversity
Quest. Category: Concept/Definitional
LO: 8

64) The degree to which employees are encouraged to be innovative and take risks is termed
aggressiveness.
Answer: FALSE
Explanation: Aggressiveness is the degree to which people are aggressive and competitive rather
than easygoing. Innovation and risk taking is the degree to which employees are encouraged to
be innovative and take risks.
Diff: 2 Page Ref: 520
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Innovation and Risk-Taking
Quest. Category: Concept/Definitional
LO: 1

65) Individuals with different backgrounds in an organization will tend to describe the
organization's culture in similar terms.
Answer: TRUE
Explanation: Organizational culture represents a common perception the organization's members
hold. We should expect, therefore, that individuals with different backgrounds or at different
levels in the organization will tend to describe its culture in similar terms.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Organizational Culture
Quest. Category: Concept/Definitional
LO: 1

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66) Research demonstrates that subcultures act to undermine the dominant culture.
Answer: FALSE
Explanation: Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences faced by groups of members in the same department or location. The
purchasing department can have a subculture that includes the core values of the dominant
culture plus additional values unique to members of the purchasing department.
Diff: 2 Page Ref: 522
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Subcultures
Quest. Category: Concept/Definitional
LO: 1

67) A strong culture can be a liability for an organization.


Answer: TRUE
Explanation: There are many potentially dysfunctional aspects of culture, especially a strong
one, on an organization's effectiveness.
Diff: 2 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture as a Liability
Quest. Category: Concept/Definitional
LO: 2

68) The success of a merger depends most strongly upon the example set by the top management
of the merged organizations.
Answer: FALSE
Explanation: All things being equal, whether the acquisition actually works seems to have more
to do with how well the two organizations' cultures match up.
Diff: 3 Page Ref: 525
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Barriers to Acquisitions and Mergers
Quest. Category: Concept/Definitional
LO: 2

69) Senior executives establish norms that filter down through the organization as to whether risk
taking is desirable.
Answer: TRUE
Explanation: This leads us to the ultimate source of an organization's culture: its founders.
Founders traditionally have a major impact on an organization's early culture.
Diff: 2 Page Ref: 526
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Top Management
Quest. Category: Concept/Definitional
LO: 3

33
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70) In the socialization process, the period of learning that occurs before a new employee joins
an organization is termed the encounter stage.
Answer: FALSE
Explanation: The prearrival stage explicitly recognizes that each individual arrives with a set of
values, attitudes, and expectations about both the work to be done and the organization.
Diff: 2 Page Ref: 528
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Prearrival Stage
Quest. Category: Concept/Definitional
LO: 3

71) The stage of socialization where an individual confronts the possible dichotomy between her
expectations and reality is the encounter stage.
Answer: TRUE
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality. If expectations were fairly accurate, the
encounter stage merely cements earlier perceptions.
Diff: 2 Page Ref: 529
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Concept/Definitional
LO: 3

72) The most potent means of transmitting culture to employees are stories, rituals, related
symbols, and language.
Answer: FALSE
Explanation: Culture is transmitted to employees in a number of forms, the most potent being
stories, rituals, material symbols, and language.
Diff: 2 Page Ref: 530
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Transmitting Culture
Quest. Category: Concept/Definitional
LO: 4

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73) Material symbols convey to employees the degree of egalitarianism that is desired by top
management.
Answer: TRUE
Explanation: Material symbols are what conveys to employees who is important, the degree of
egalitarianism top management desires, and the kinds of behavior that are appropriate.
Diff: 2 Page Ref: 531
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Material Symbols
Quest. Category: Concept/Definitional
LO: 4

74) 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
Explanation: Because language for each organization is different, new employees may at first be
overwhelmed by acronyms and jargon, that, once assimilated, act as a common denominator to
unite members of a given culture or subculture.
Diff: 2 Page Ref: 532
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Language
Quest. Category: Concept/Definitional
LO: 4

75) A strong company that encourages pushing the limits can be a powerful force in shaping
unethical behavior.
Answer: TRUE
Explanation: The organizational culture most likely to shape high ethical standards among its
members is one that's high in risk tolerance, low to moderate in aggressiveness, and focused on
means as well as outcomes. On the other hand, a strong culture that encourages pushing the
limits can be a powerful force in shaping unethical behavior.
Diff: 2 Page Ref: 533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Ethical Reasoning
Objective: Unethical Behavior
Quest. Category: Concept/Definitional
LO: 5

35
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76) 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
Explanation: Setting a positive ethical climate has to start at the top of the organization.
Research suggests managers can have an effect on the ethical behavior of employees by adhering
to the following principles: acting as visible role models, communicating ethical expectations,
providing ethical training, visibly rewarding ethical acts and punishing unethical ones, and
providing protective mechanisms.
Diff: 2 Page Ref: 533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Ethical Reasoning
Objective: Creating an Ethical Organizational Culture
Quest. Category: Concept/Definitional
LO: 5

77) Evidence shows that spirituality and profits may be compatible objectives.
Answer: TRUE
Explanation: Evidence indicates that spirituality and profits may be compatible objectives. A
recent research study by a major consulting firm found companies that introduced spiritually-
based techniques improved productivity and significantly reduced turnover. Another study found
organizations that provided their employees with opportunities for spiritual development
outperformed those that didn't. Other studies also report that spirituality in organizations was
positively related to creativity, employee satisfaction, job involvement, and organizational
commitment.
Diff: 3 Page Ref: 539
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality and Organizational Culture
Quest. Category: Concept/Definitional
LO: 7

78) Organizational cultures often reflect national cultures.


Answer: TRUE
Explanation: As the opening vignette suggests, organizational cultures are so powerful they
often transcend national boundaries. But that doesn't mean organizations should, or could, be
blissfully ignorant of local culture. Organizational cultures often reflect national culture.
Diff: 2 Page Ref: 539
Topic: Global Implications
Skill: AACSB: Multicultural and Diversity
Objective: National Culture and Organizational Culture
Quest. Category: Concept/Definitional
LO: 8

36
Copyright © 2011 Pearson Education, Inc.
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 life-long 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 are 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 fundamentals of their discipline; and 2) internships are an important
method of establishing the connections and opportunities for employment.

79) The belief in a liberal arts education is part of the ________ of the college.
A) subculture of the business department
Diff: 2 Page Ref: 522
Topic: Application of What Is Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Dominant Culture
Quest. Category: Application
LO: 1

80) 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) none of the above
Answer: A
Explanation: Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences faced by groups of members in the same department or location. The
business school is a subculture that includes the core values of the dominant culture plus
additional values unique to members of the department.
Diff: 2 Page Ref: 522
Topic: Application of What Is Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Subcultures
Quest. Category: Application
LO: 1

37
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81) 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
Explanation: The business school is a subculture that includes the core values of the dominant
culture plus additional values, such as helping students find employment, that are unique to
members of the department.
Diff: 2 Page Ref: 522
Topic: Application of What Is Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Core Values
Quest. Category: Application
LO: 1

82) Which of the following represents a core value of the college?


A) affordable education
B) scientific knowledge
C) technological innovation
D) remedial reinforcement
E) life-long learning
Answer: E
Explanation: Core values are the primary or dominant values that are accepted throughout the
organization. They are committed to the idea that a liberal arts education is the best preparation
for life-long learning
Diff: 1 Page Ref: 522-523
Topic: Application of What Is Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Core Values
Quest. Category: Application
LO: 1

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.

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83) The culture of the Young Woman's Club can be defined as ________.
A) a strong culture
B) a weak culture
C) an ambiguous culture
D) a diverse culture
E) a tolerant culture
Answer: A
Explanation: In a strong culture, the organization's core values are both intensely held and widely
shared. The more members who accept the core values and the greater their commitment, the
stronger the culture and the greater its influence on member behavior. The club shows
commitment and a strong culture.
Diff: 2 Page Ref: 522
Topic: Application of Strong Cultures
Skill: AACSB: Analytic Skills
Objective: Strong Cultures
Quest. Category: Application
LO: 1

84) The culture of the Young Woman's Club will be a liability if ________.
A) newcomers embrace it
B) it does not further the organization's effectiveness
C) it reduces ambiguity
D) it enhances social system stability
E) none of the above
Answer: B
Explanation: Culture is a liability when the shared values are not in agreement with those that
further the organization's effectiveness. This is most likely when an organization's environment
is undergoing rapid change, and its entrenched culture may no longer be appropriate.
Diff: 2 Page Ref: 525
Topic: Application of Culture as a Liability
Skill: AACSB: Analytic Skills
Objective: Barriers to Change
Quest. Category: Application
LO: 2

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85) It is probable that the 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) none of the above
Answer: A
Explanation: Consistency of behavior, an asset in a stable environment, may burden the
organization and make it difficult to respond to the changes it needs to make to continue to be
effective.
Diff: 2 Page Ref: 525
Topic: Application of Culture as a Liability
Skill: AACSB: Analytic Skills
Objective: Barriers to Change
Quest. Category: Application
LO: 2

86) The Young Woman's Club is most likely to ________.


A) experience internal division regarding the future of the organization
B) broaden its membership to include women of different classes
C) shift its core values in response to the perceived needs of newcomers
D) expand its membership significantly, given the town's population increase
E) remain similar in size, despite the town's population increase
Answer: E
Explanation: Consistency of behavior will burden the organization and make it difficult to
respond to the changes it needs to make to continue to be effective. It will most likely remain at
its current size.
Diff: 3 Page Ref: 525
Topic: Application of Culture as a Liability
Skill: AACSB: Analytic Skills
Objective: Barriers to Change
Quest. Category: Application
LO: 2

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87) Women who are newcomers to the town of Williams are most likely to ________.
A) find membership in the Young Women's Club helpful for increasing their social support
B) help to enhance the prestige of the Young Women's Club by increasing the average income of
the group's members
C) find that the Young Woman's Club values the unique strengths of those from different
backgrounds
D) help improve the profitability of the Young Woman's Club by recommending increases in its
membership dues
E) find that the Young Woman's Club has a low tolerance for diversity
Answer: E
Explanation: By limiting the range of acceptable values and styles, the Women's Club's strong
culture puts considerable pressure on members to conform and will show a low tolerance for
diversity.
Diff: 3 Page Ref: 525
Topic: Application of Culture as a Liability
Skill: AACSB: Analytic Skills; Multicultural and Diversity
Objective: Barriers to Diversity
Quest. Category: Application
LO: 2

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You are new to an organization and do not really know what to expect about the socialization
process. You are a recent M.B.A. and have an undergraduate degree in computer science. Your
new firm is a software development company with an emphasis in the health care industry. Your
hiring process includes campus interviews, a day-long trip to interview at the company, an offer
phone call and letter, and some promotional material sent via the mail. When you arrive for your
first day of work, you spend half a day in an orientation session with Human Resources, where
you complete paperwork and receive a company handbook. Then you spend the rest of the day
with your supervisor, who gives you a tour, introduces you to your co-workers, and explains
your first project. After that, you begin working and getting to know the others in the company.
You find that in most respects, your experience fits your expectations, but in some ways you are
surprised by realities that you hadn't expected. None of these surprises is too difficult to accept,
so you eventually begin to feel at home and happy with your new job.

88) The learning that you experience during the interviewing and hiring process occurs as part of
the ________ stage of employee socialization.
A) selection
B) prearrival
C) encounter
D) metamorphosis
E) none of the above
Answer: B
Explanation: The prearrival stage explicitly recognizes that each individual arrives with a set of
values, attitudes, and expectations about both the work to be done and the organization. One way
to capitalize on the importance of prehire characteristics in socialization is to use the selection
process to inform prospective employees about the organization as a whole.
Diff: 2 Page Ref: 529
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Prearrival Stage
Quest. Category: Application
LO: 3

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89) Your first day at work is part of the ________ stage of socialization.
A) orientation
B) prearrival
C) encounter
D) metamorphosis
E) none of the above
Answer: C
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality. If expectations were fairly accurate, the
encounter stage merely cements earlier perceptions.
Diff: 2 Page Ref: 529
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Application
LO: 3

90) When you begin to notice things that are not as you expected, you are in the ________ stage
of socialization.
A) orientation
B) prearrival
C) encounter
D) metamorphosis
E) none of the above
Answer: C
Explanation: On entry into the organization, the new member enters the encounter stage and
confronts the possibility that expectations, about the job, co-workers, the boss, and the
organization in general, may differ from reality.
Diff: 2 Page Ref: 529
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Application
LO: 3

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91) Which of the following steps could your supervisor take to best help you develop a
commitment to your new company?
A) encourage you to work independently at first to learn the ropes
B) discourage you from putting too much weight on your initial expectations
C) discourage you from putting too much emphasis on your perception of the organization
D) encourage you to look carefully at your own assumptions, which may be biased
E) encourage you to develop friendship ties within the organization
Answer: E
Explanation: Proper recruiting and selection should significantly reduce that outcome, along with
encouraging friendship ties in the organization, newcomers are more committed when friends
and coworkers help them "learn the ropes."
Diff: 3 Page Ref: 529
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Encounter Stage
Quest. Category: Application
LO: 3

92) When you start to work through the problems that you discover about the organization, you
move into the ________ stage of socialization.
A) prearrival
B) encounter
C) acceptance
D) metamorphosis
E) none of the above
Answer: D
Explanation: To work out any problems discovered during the encounter stage, the new member
changes or goes through the metamorphosis stage.
Diff: 2 Page Ref: 530
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Metamorphosis Stage
Quest. Category: Application
LO: 3

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93) Your supervisor arranges for you to become involved in an apprenticeship program to learn
the ins and outs of your job from an experienced employee. What effect is this apprenticeship
program likely to have on your assimilation into the company?
A) It is likely to have a negative effect, because random socialization works more effectively
than serial socialization in helping new employees to adjust to a company's culture.
B) It is likely to have an insignificant effect, because serial socialization is not correlated with
helping employees to adjust to a company's values and norms.
C) It is likely to have a positive effect, because random socialization is most critical at the time
of an employee's entry into an organization.
D) It is likely to have a positive effect, because serial socialization works more effectively than
random socialization in helping new employees to accept a company's culture.
E) It is likely to have a negative effect, because serial and random socialization processes only
benefit employees at later stages in their tenure with an organization.
Answer: D
Explanation: Serial socialization is characterized by the use of role models who train and
encourage the newcomer. Apprenticeship and mentoring programs are examples. In random
socialization, role models are deliberately withheld. New employees are left on their own to
figure things out. High levels of institutional practices, such as serial socialization, better
encourage person–organization fit.
Diff: 2 Page Ref: 530
Topic: Application of Socialization
Skill: AACSB: Analytic Skills
Objective: Entry Socialization Options
Quest. Category: Application
LO: 3

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Nunya is a computer software company that employs highly intelligent, but somewhat unusual
people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to
remember how creative they were when they were children. At the beginning of each quarterly
executive meeting, employees are reminded that the founders were three young people who "got
lucky" and sold a video game that they invented. Employees are allowed to dress in blue jeans
and can set their own working hours.

94) Reminding employees about the founders at each quarterly meeting is an example of which
technique for transmitting culture?
A) stories
B) material symbols
C) language
D) rituals
E) tools
Answer: A
Explanation: Stories circulate through organizations. They typically contain a narrative of events
about the organization's founders, rule breaking, rags-to-riches successes, reductions in the
workforce, relocation of employees, reactions to past mistakes, and organizational coping. These
stories anchor the present in the past and explain and legitimate current practices.
Diff: 3 Page Ref: 531
Topic: Application of How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Stories
Quest. Category: Application
LO: 4

95) The regular distribution of lollipops, toys, or treats every Friday is an example of a ________
that helps reinforce Nunya's culture.
A) story
B) ritual
C) material symbol
D) symbolism
E) tool
Answer: B
Explanation: Rituals are repetitive sequences of activities that express and reinforce the key
values of the organization, what goals are most important, which people are important, and
which people are expendable.
Diff: 3 Page Ref: 531
Topic: Application of How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Rituals
Quest. Category: Application
LO: 4

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96) 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
Explanation: Material symbols convey to employees who is important, the degree of
egalitarianism top management desires, and the kinds of behavior that are appropriate.
Diff: 3 Page Ref: 531
Topic: Application of How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Material Symbols
Quest. Category: Application
LO: 4

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97) Explain how an institutionalized culture can be a barrier to diversity. Describe how an
organization could utilize the three forces at play in sustaining a culture to help create a diverse
workforce.
Answer: By limiting the range of acceptable values and styles, strong cultures put considerable
pressure on employees to conform. In some instances, a strong culture that condones prejudice
can even undermine formal corporate diversity policies. Strong cultures can also be liabilities
when they support institutional bias or become insensitive to people who are different.

Hiring new employees who differ from the majority in race, age, gender, disability, or other
characteristics creates a paradox: management wants to demonstrate support for the differences
these employees bring to the workplace, but newcomers who wish to fit in must accept the
organization's core cultural values. Because diverse behaviors and unique strengths are likely to
diminish as people attempt to assimilate, strong cultures can become liabilities when they
effectively eliminate these advantages.

The explicit goal of the selection process is to identify and hire individuals with the knowledge,
skills, and abilities to perform successfully. Taking diversity into consideration at this phase does
not have to be antagonistic to the culture. The final decision, because it's significantly influenced
by the decision maker's judgment of how well the candidates will fit into the organization,
identifies people whose values are essentially consistent with at least a good portion of the
organization's. Looking beyond surface level differences at the selection phase will help create a
diverse workforce.

Through words and behavior, senior executives establish norms that filter through the
organization about, for instance, whether risk taking is desirable, how much freedom managers
should give employees, what is appropriate dress, and what actions pay off in terms of pay
raises,
promotions, and other rewards. Management actions should be inclusive and non-prejudicial to
create a diverse and functional culture.

During the metamorphosis stage of socialization management should use institutional practices
to encourage person–organization fit and high levels of commitment.
Diff: 3 Page Ref: 525, 527-530
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Organizational Culture
Quest. Category: Synthesis
LO: 2, 3

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98) Provide examples of how an ethical culture can be transmitted through stories, rituals, and
material symbols?
Answer: A company could transmit ethical culture through stories that tell of employees that
were punished for unethical acts such as excessive use of company funds or stealing. Ethics
could be transferred through rituals that enforce ethical behavior, such as counting or tracking
perfect banking accounting and rewarding those employees that never have discrepancies with a
ritual of recognition. A manager that maintained a humble work environment would be an
example of material symbols that would promote an ethical environment.
Diff: 3 Page Ref: 530-533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating an Ethical Organizational Culture
Quest. Category: Synthesis
LO: 4, 5

99) 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 do. Finally,
culture serves as a sense-making and control mechanism that guides and shapes the attitudes and
behavior of employees.
Diff: 3 Page Ref: 525-526
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture's Functions
Quest. Category: Critical Thinking
LO: 2

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100) 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.
a) The prearrival stage recognizes that each individual arrives with a set of values, attitudes, and
expectations. These cover both the work to be done and the organization.
b) Upon entry into the organization, the new member enters the encounter stage. Here the
individual confronts the possible dichotomy between her expectations and reality.
c) Finally, the new member must work out any problems discovered during the encounter stage.
This may mean going through changes - hence, this is called the metamorphosis stage.
Diff: 2 Page Ref: 528-530
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Stages of Socialization
Quest. Category: Critical Thinking
LO: 3

101) Compare and contrast an ethical organizational culture and a positive organizational
culture. How are they similar and different?
Answer: The organizational culture most likely to shape high ethical standards among its
members is one that's high in risk tolerance, low to moderate in aggressiveness, and focused on
means as well as outcomes. This type of culture also takes a long-term perspective and balances
the rights of multiple stakeholders, including the communities in which the business operates, its
employees, and its stockholders. Managers are supported for taking risks and innovating,
discouraged from engaging in unbridled competition, and guided to pay attention not just to what
goals are achieved but also to how. If the culture is strong and supports high ethical standards, it
should have a very powerful and positive influence on employee behavior.

Research suggests managers can have an effect on the ethical behavior of employees by adhering
to the following principles: be a visible role model, communicate ethical expectations, provide
ethical training, visibly reward ethical acts and punish unethical ones, provide protective
mechanisms.

A positive organizational culture emphasizes building on employee strengths, rewards more than
it punishes, and emphasizes individual vitality and growth. The steps to create a positive work
culture are more focused on the behavior of the employee, whereas the steps to creating an
ethical work culture focus more on the behavior and responsibilities of management. They both
take a long-term perspective and are concerned with balancing the rights and happiness of the
employees and the investors.
Diff: 3 Page Ref: 532-536
Topic: Creating a Positive Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Creating a Positive Organizational Culture
Quest. Category: Synthesis
LO: 5, 6

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102) What is workforce spirituality and how is it similar to a positive organizational culture?
Answer: Workplace spirituality is not about organized religious practices. It's not about God or
theology. Workplace spirituality recognizes that people have an inner life that nourishes and is
nourished by meaningful work that takes place in the context of community. Organizations that
promote a spiritual culture recognize that people have both a mind and a spirit, seek to find
meaning and purpose in their work, and desire to connect with other human beings and be part of
a community.

A positive organizational culture emphasizes building on employee strengths, rewards more than
it punishes, and emphasizes individual vitality and growth. Let's consider each of these areas.
Although most organizations are sufficiently focused on extrinsic rewards such as pay and
promotions, they often forget about the power of smaller (and cheaper) rewards such as praise,
which helps employees find meaning in the work they do if they feel it is appreciated.

A positive organizational culture emphasizes not only organizational effectiveness but also
individuals' growth. No organization will get the best from employees who see themselves as
mere tools or parts of the organization. A positive culture recognizes the difference between a
job and a career and supports not only what the employee does to contribute to organizational
effectiveness but also what the organization can do to make the employee more effective
(personally and professionally). This idea is closely linked to the spiritual idea of helping
employees find meaning in their work lives.
Diff: 3 Page Ref: 533-539
Topic: Spirituality and Organizational Culture
Skill: AACSB: Analytic Skills
Objective: Workplace Spirituality
Quest. Category: Synthesis
LO: 6, 7

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103) Discuss the difference between strong and weak organizational cultures and discuss the
effect that a strong culture can have on an acquisition or merger.
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.

In recent years, cultural compatibility has become the primary concern. All things being equal,
whether the acquisition actually works seems to have more to do with how well the two
organizations' cultures match up. The primary cause of failure is conflicting organizational
cultures, when people simply don't match up. Therefore, when considering an acquisition or
merger, management would need to carefully evaluate the cultures of each organization.
Diff: 2 Page Ref: 522, 525-526
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Strong versus Weak Cultures
Quest. Category: Synthesis
LO: 1, 2

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104) 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.

a) First, founders only hire and keep employees who think and feel the way they do.
b) Second, they indoctrinate and socialize these employees to their way of thinking and feeling.
c) And finally, the founders' own behavior acts as a role model that encourages employees to
identify with them and thereby internalize their beliefs, values, and assumptions.

When the organization succeeds, the founders' vision becomes seen as a primary determinant of
that success. At this point, the founders' entire personalities become embedded in the culture of
the organization.
Diff: 2 Page Ref: 526-527
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Creating Culture
Quest. Category: Critical Thinking
LO: 3

105) What can management do to create a more ethical culture within an organization?
Answer: To create a more ethical culture, management can take a number of steps.
a) Management can be a visible role model. Employees will look to top management behavior as
a benchmark for defining appropriate behavior.
b) Management can also communicate ethical expectations. Ethical ambiguities can be
minimized by creating and disseminating an organizational code of ethics. It should state the
organization's primary values and the ethical rules that employees are expected to follow.
c) Management can also provide ethical training. Training sessions can be used to reinforce the
organization's standards of conduct, to clarify what practices are and are not permissible, and to
address possible ethical dilemmas.
d) Management can visibly reward ethical acts and punish unethical ones. Performance
appraisals of managers should include a point-by-point evaluation of how his or her decisions
measured against the organization's code of ethics. Appraisals must include the means taken to
achieve goals as well as the ends themselves.
e) Finally, the organization needs to provide formal mechanisms so that employees can discuss
ethical dilemmas and report unethical behavior without fear of reprimand. This might include
creation of ethical counselors, ombudsmen, or ethical officers.
Diff: 2 Page Ref: 533
Topic: Creating an Ethical Organizational Culture
Skill: AACSB: Analytic Skills; Ethical Reasoning
Objective: Ethical Organizational Culture
Quest. Category: Critical Thinking
LO: 5

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106) What are the characteristics of a spiritual organization?
Answer: There are five cultural characteristics that tend to be evident in spiritual organizations.
Spiritual organizations build their cultures around a meaningful purpose. Spiritual organizations
recognize the worth and value of people. They seek to create cultures where employees can
continually learn and grow. Spiritual organizations are characterized by mutual trust, honesty,
and openness. Managers aren't afraid to admit mistakes. And they tend to be extremely up front
with their employees, customers, and suppliers. The high-trust climate in spiritual organizations,
when combined with the desire to promote employee learning and growth, leads to management
empowering employees to make most work-related decisions. Managers in spiritually-based
organizations are comfortable delegating authority to individual employees and teams. They trust
their employees to make thoughtful and conscientious decisions. The final characteristic that
differentiates spiritually-based organizations is that they don't stifle employee emotions. They
allow people to be themselves.
Diff: 2 Page Ref: 536-538
Skill: AACSB: Analytic Skills
Objective: Characteristics of a Spiritual Organization
Quest. Category: Concept/Definitional
LO: 6

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107) 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. Each of these
characteristics exists on a continuum from low to high.

Appraising the organization on these seven characteristics, then, gives a composite picture of the
organization's culture. This picture becomes the basis for feelings of shared understanding
members have about the organization, how things are done in it, and the way members are
supposed to behave.

a) Innovation and risk taking are the degree to which employees are encouraged to be innovative
and take risks.
b) Attention to detail is the degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
c) 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.
d) People orientation is the degree to which management decisions take into consideration the
effect of outcomes on people within the organization.
e) Team orientation is the degree to which work activities are organized around teams rather
than individuals.
f) Aggressiveness is the degree to which people are aggressive and competitive rather than
easygoing.
g) Stability is the degree to which organizational activities emphasize maintaining the status quo
in contrast to growth.
Diff: 2 Page Ref: 520-521
Topic: What Is Organizational Culture?
Skill: AACSB: Analytic Skills
Objective: Characteristics of an Organizational Culture
Quest. Category: Critical Thinking
LO: 1

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108) When can culture be a liability?
Answer: a) Barriers to Change. 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.
b) Barriers to Diversity. Strong cultures put considerable pressure on employees to conform.
They limit the range of values and styles that are acceptable. A strong culture that condones
prejudice can even undermine formal corporate diversity policies. Organizations seek out and
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. Strong cultures, therefore, can be liabilities when they effectively eliminate the
unique strengths that people of different backgrounds bring to the organization. Moreover, strong
cultures can also be liabilities when they support institutional bias or become insensitive to
people who are different.
c) Barriers to Acquisitions and Mergers. Many acquisitions fail shortly after their
consummation. The primary cause of failure is conflicting organizational cultures.
Diff: 3 Page Ref: 523-526
Topic: What Do Cultures Do?
Skill: AACSB: Analytic Skills
Objective: Culture as a Liability
Quest. Category: Critical Thinking
LO: 2

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109) Explain the primary methods of maintaining an organization's culture.
Answer: Once a culture is in place, there are practices within the organization that act to
maintain it by giving employees a set of similar experiences. Three forces play a particularly
important part in sustaining a culture: selection practices, the actions of top management, and
socialization methods.
a) 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.
b) In addition to selection, the actions of top management also have a major impact on the
organization's culture. Through what they say and how they behave, senior executives establish
norms that filter down through the organization as to whether risk taking is desirable; how much
freedom managers should give their employees; what is appropriate dress; what actions will pay
off in terms of pay raises, promotions, and other rewards; and the like.
c) 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.
Diff: 3 Page Ref: 526-530
Topic: Creating and Sustaining Culture
Skill: AACSB: Analytic Skills
Objective: Sustaining Culture
Quest. Category: Critical Thinking
LO: 3

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110) Discuss four ways that employees learn culture.
Answer: Culture is transmitted to employees in a number of forms, the most potent being
stories, rituals, material symbols, and language.
a) Stories contain a narrative of events about the organization's founders, rule breaking, rags-to-
riches successes, reductions in the workforce, relocation of employees, reactions to past
mistakes, and organizational coping. These stories anchor the present in the past and provide
explanations and legitimacy for current practices.
b) Rituals are repetitive sequences of activities that express and reinforce the key values of the
organization, what goals are most important, which people are important and which are
expendable.
c) The layout of corporate headquarters, the types of automobiles top executives are given, and
the presence or absence of corporate aircraft are a few examples of material symbols. These
material symbols convey to employees who is important, the degree of egalitarianism desired by
top management, and the kinds of behavior that are appropriate.
d) Many organizations and units within organizations use language as a way to identify members
of a culture or subculture. By learning this language, members attest to their acceptance of the
culture and, in doing so, help to preserve it. Organizations, over time, often develop unique terms
to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its
business. New employees are frequently overwhelmed with acronyms and jargon that, after 6
months on the job, have become fully part of their language. Once assimilated, this terminology
acts as a common denominator that unites members of a given culture or subculture.
Diff: 3 Page Ref: 530-532
Topic: How Employees Learn Culture
Skill: AACSB: Analytic Skills
Objective: Transmitting Culture
Quest. Category: Critical Thinking
LO: 4

58
Copyright © 2011 Pearson Education, Inc.

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