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CHAPTER 9CORPORATE CULTURE AND VALUES

MULTIPLE CHOICE
1. ____ refers to the quality of interactions among people and whether they share a common perspective.
a. Social capital
b. Social audit
c. Culture
d. Clan culture
ANS: A
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
2. Culture exists at two levels called:
a. sub- and super-structure.
b. people and structure.
c. underlying values and visible artifacts.
d. social and psychological.
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
3. All of the following are visible artifacts of culture except:
a. feelings.
b. slogans.
c. behaviors.
d. ceremonies.
ANS: A
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
4. Organizational culture:
a. is usually written.
b. provides members with a sense of identity.
c. generates commitment to improving market share.
d. all of these.
ANS: B
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
5. ____ means that members develop a collective identity and know how to work together effectively.
a. External adaptation
b. Socialization
c. Internal integration
d. Cultural identity
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
6. When a student finishes his studies at a college, he goes through a graduation ceremony with the idea
of soon finding a new social role. This is an example of a rite of:
a. passage.
b. enhancement.

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

c. renewal.
d. integration.
ANS: A

PTS: 1

NAT: AACSB Analytic | AACSB Individual Dynamics

7. Which of the following is an example of the rite of integration in corporate culture?


a. Awards given to employee-of-the-month
b. Unpaid three week orientation and training for prospective (new) employees
c. Office Valentine party
d. Organization development activities
ANS: C

PTS: 1

NAT: AACSB Analytic | AACSB Motivation Concepts

8. ____ refers to how the organization meets goals and deals with outsiders.
a. Internal adaptation
b. Culture strength
c. Internal integration
d. External adaptation
ANS: D
PTS: 1
NAT: AACSB Communication | AACSB Group Dynamics
9. Which of the following is (are) manifestation(s) of corporate culture?
a. Symbols
b. Ceremonies
c. Stories
d. All of these
ANS: D

PTS: 1

NAT: AACSB Analytic | AACSB Motivation Concepts

10. Stories in an organization which are used to perpetuate culture are based on:
a. anything that reeks of symbolism.
b. nothing in fact, but on the ideals of the organization.
c. true events.
d. unsubstantiated rumors.
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
11. Nordstrom's upside-down organization chart is an example of ____ being used to convey
organizational culture to all employees.
a. a story
b. a myth
c. an organization structure
d. language
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
12. Which of the following is not one of the four categories of culture?
a. Clan
b. Flexibility
c. Mission
d. Adaptability

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

ANS: B

PTS: 1

NAT: AACSB Analytic | AACSB Creation of Value

13. The relationship of environment and strategy to corporate culture is plotted in our text on a matrix that
has the following two dimensions:
a. (1) strategic focus: internal vs. external; (2) needs of the environment: flexible vs. stable
b. (1) strategic focus: prospector vs. defender; (2) needs of the environment: simple vs.
complex
c. (1) human focus: flexible vs. stable; (2) task focus: internal vs. environmental
d. (1) human focus: open vs. closed; (2) task focus: strategic vs. operative
ANS: A

PTS: 1

NAT: AACSB Reflective Thinking | AACSB Strategy

14. What type of culture exists in a stable environment with an external strategic focus?
a. Adaptability
b. Bureaucratic
c. Clan
d. Mission
ANS: D
PTS: 1
NAT: AACSB Analytic | AACSB Environmental Influence
15. The ____ culture is characterized by strategic focus on the external environment through flexibility
and change to meet customer needs.
a. adaptability
b. mission
c. clan
d. bureaucratic
ANS: A
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
16. The mission culture places major emphasis on:
a. the external environment through flexibility and change to meet customer needs.
b. a shared vision of organization purpose.
c. the involvement and participation of the organization's members.
d. the internal environment and a consistency orientation for a stable environment.
ANS: B

PTS: 1

NAT: AACSB Reflective Thinking | AACSB Strategy

17. A leader who ____ would thrive in a clan culture.


a. creates values for social responsibility
b. embodies values
c. integrates people into action and responsibility through participation
d. can change culture
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Leadership Principles
18. The ____ culture has an internal focus and a consistency orientation for a stable environment.
a. organic
b. clan
c. traditional
d. bureaucratic
ANS: D

PTS: 1

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

NAT: AACSB Reflective Thinking | AACSB Environmental Influence


19. Most managers are shifting away from bureaucratic cultures because of a need for:
a. greater flexibility.
b. better decision making techniques.
c. easier communication channels.
d. reducing employee participation.
ANS: A

PTS: 1

NAT: AACSB Reflective Thinking | AACSB Strategy

20. The degree of agreement among members of an organization about the importance of specific values is
referred to as:
a. adaptability.
b. culture strength.
c. internal integration.
d. social responsibility.
ANS: B
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
21. ____ develop to reflect the common problems, goals, and experiences that members of a team,
department, or other unit share.
a. Learning organization
b. Ethical committees
c. Subcultures
d. Ethics hotlines
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
22. It has been found that a learning organization has a strong organizational culture characterized by
which of the following value(s)?
a. The whole is more important than the part, and boundaries between parts are minimized.
b. External strategic focus with continual thoughts of what others are doing that's right.
c. Life-time employment for workers at every level (unless a work rule is violated).
d. All of these.
ANS: A
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
23. When behavior is governed by a set of moral principles and values, it is called:
a. the rule of law.
b. ethics.
c. a mission environment.
d. none of these.
ANS: B

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

24. The ____ arises from a set of codified principles and regulations that describe how people are required
to act, are generally accepted in society, and are enforceable in the courts.
a. code of ethics
b. rule of law
c. core values
d. managerial ethics

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

ANS: B
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Legal Responsibilities
25. ____ are principles that guide the decisions and behaviors of managers with regard to whether they are
right or wrong in a moral sense.
a. Managerial ethics
b. Social responsibility
c. Codes of ethics
d. Organization culture
ANS: A

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

26. A(n) ____ arises in a situation concerning right and wrong where values are in conflict.
a. culture problem
b. legal issue
c. social responsibility issue
d. ethical dilemma
ANS: D

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

27. ____ is an extension of the idea of managerial ethics and refers to management's obligation to make
choices and take action so that the organization contributes to the welfare and interest of all
organizational stakeholders.
a. Culture strength
b. Values-based leadership
c. Corporate social responsibility
d. External adaptation
ANS: C

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

28. A relationship between a leader and followers that is based on shared, strongly internalized values that
are advocated and acted upon by the leader is referred to as:
a. mission culture.
b. values-based leadership.
c. clan culture.
d. servant leadership.
ANS: B

PTS: 1

NAT: AACSB Ethics | AACSB Leadership Principles

29. Formal structure and formal systems that can be used to shape ethical values include all of the
following except:
a. an ethics committee.
b. repetition of words such as those ending Wal-Mart's cheer: "Who's No. 1? The Customer!"
c. whistle-blowing disclosure mechanism.
d. a code of ethics.
ANS: B

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

30. Ethical training programs may include:


a. ethical frameworks such as the utilitarian approach.
b. the stages of moral development.
c. giving ethical dilemmas for discussion.
d. All of these.
ANS: D

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

31. _____ is (are) the set of values, norms, guiding beliefs, and understandings that is shared by members
of an organization and taught to new members as the correct way to think, feel, and behave.
a. Stories
b. Rules of law
c. Ethics
d. Culture
ANS: D
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
32. Ron recently had an interview at XYZ Clothing Company. As he was touring the organization, he
noticed that employees were dressed in flip flops and shorts and that none of the offices had doors.
Ron witnessed the _____ level of corporate culture.
a. visible
b. underlying
c. symbolic
d. shared
ANS: A
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
33. _____ are consistent with the values and beliefs of the organization but are not supported by facts.
a. Legends
b. Myths
c. Heroes
d. Stories
ANS: B
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
34. Most Internet-based companies use the _____ type of culture, as do many companies in the marketing,
electronics, and cosmetics industries.
a. clan
b. mission
c. adaptability
d. bureaucratic
ANS: C
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
35. At Anheuser-Busch InBev, professionalism, ambition, and aggressiveness are key values. Managers
keep employees focused on achieving high sales and profit levels, and those who meet the demanding
goals are handsomely rewarded. Bonuses and promotions are based on performance, not seniority.
Anheuser-Busch InBev embodies a _____ culture.
a. bureaucratic
b. adaptability
c. clan
d. mission
ANS: D
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
36. Which of the following is not true regarding managers in non-constructive cultures?

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

a.
b.
c.
d.

Managers tend to be isolated and bureaucratic.


Managers care deeply about stakeholders.
Managers are comfortable with the status quo.
Managers care mainly about themselves.

ANS: B
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
37. A _____ measures and reports the ethical, social, and environmental impact of a companys operations.
a. social audit
b. whistle-blower
c. rule of law
d. shared value
ANS: A

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

TRUE/FALSE
1. Internal integration, as related to corporate culture, means that members develop a collective identity
and know how to work together effectively.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
2. Written rules and policies are an integral part of corporate culture.
ANS: F
PTS: 1
NAT: AACSB Communication | AACSB Group Dynamics
3. External adaptation is the term for members developing a collective identity and knowing how to work
together effectively.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
4. When interpreting culture, one of the important observable aspects of the culture would be rites and
ceremonies such as the rite of passage.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
5. Legends are stories which are consistent with the values and beliefs of the organization but are not
supported by facts.
ANS: F
PTS: 1
NAT: AACSB Communication | AACSB Creation of Value
6. Symbols are narratives based on true events that are frequently shared among organizational
employees and told to new employees to inform them about an organization.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

7. A symbol is something that represents another thing.


ANS: T
PTS: 1
NAT: AACSB Communication | AACSB Creation of Value
8. In studies of culture and effectiveness, it has been found that two factors form the basis of the fit: (1)
the extent to which the environment requires change or stability, and (2) the extent to which the
technology is analyzable or unanalyzable.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
9. The adaptability culture encourages entrepreneurial values, norms, and beliefs that support the
capacity of the organization to detect, interpret, and translate signals from the environment into new
behavior responses.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Environmental Influence
10. A clan culture exists in a stable environment with an internal strategic focus.
ANS: F

PTS: 1

NAT: AACSB Analytic | AACSB Strategy

11. In a mission culture, managers shape behavior by envisioning and communicating a desired future
state for the organization.
ANS: T
PTS: 1
NAT: AACSB Communication | AACSB Motivation Concepts
12. In a bureaucratic culture, an important value is taking care of employees and making sure they have
whatever they need to help them be satisfied as well as productive.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
13. Most managers today are moving towards bureaucratic cultures because of a need for greater
flexibility.
ANS: F

PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

14. The bureaucratic culture has a primary focus on the involvement and participation of the organizations
members and on rapidly changing expectations from the external environment.
ANS: F

PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

15. Several subcultures may exist within large organizations, each differing from each other and from the
culture as a whole.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

16. Culture strength refers to there being a low number of different subcultures within the culture as a
whole.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
17. A strong organizational culture is a primary characteristic of a learning organization.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Creation of Value
18. The culture encouraging risk taking, change, and improvement is a value of a learning organization
with a strong adaptive culture.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Group Dynamics
19. In successful organizations, culture becomes set and therefore does not require adaptation to the
environment.
ANS: F
PTS: 1
NAT: AACSB Analytic | AACSB Environmental Influence
20. If the rule of law and ethical standards were drawn as a venn diagram, the two circles would overlap
completely.
ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Legal Responsibilities

21. All ethical standards are legal requirements.


ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Legal Responsibilities

22. All legal requirements are ethical standards.


ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Legal Responsibilities

23. Top leaders are responsible for creating and sustaining a culture that emphasizes the importance of
ethical behavior for every employee.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Leadership Principles

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

24. Companies that put ethics on the back burner in favor of fast growth and short-term profits succeed in
the long-run.
ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

25. Values-based leadership is best instituted throughout the management hierarchy via an authoritative
directive.
ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Leadership Principles

26. Whistle-blowing is a disclosure mechanism.


ANS: T

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

27. Learning ethical frameworks helps managers to act autonomously and still think their way through a
difficult decision.
ANS: T

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

28. Culture represents the formal organization, whereas organizational structure, size, and strategy
represent the informal organization.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
29. The way in which people and departments are arranged into a whole, and the degree of flexibility and
autonomy people have, tells a lot about which cultural values are emphasized in the organization.
ANS: T
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
30. Top managers typically should focus their energy more on strategy and stucture than on corporate
culture.
ANS: F
PTS: 1
NAT: AACSB Reflective Thinking | AACSB Motivation Concepts
31. A code of ethics is a formal statement of the companys values concerning ethics and social
responsibility; it clarifies to employees what the company stands for and its expectations for employee
conduct.
ANS: T

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

32. The single best way to make sure an organization stays on solid ethical ground is to have a strong code
of ethics and make sure all employees are familiar with its guidelines.
ANS: F

PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

ESSAY
1. Explain social capital and its benefits to an organization.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Reflective Thinking | AACSB Creation of Value

2. Some organizations have dress codes that limit individual freedom in the workplace. Do such rules
inhibit the establishment of corporate culture?
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Individual Dynamics

3. Identify a specific organization that has a culture you know enough about to discuss. Then describe
that organization's culture at both of its levels. In your answer, let it be clear what makes up each of the
two levels.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

4. Explain the differences between the various types of rites--passage and integration.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

5. What are the important functions of corporate culture in an organization?


ANS:
Answer not provided.
PTS: 1

NAT: AACSB Reflective Thinking | AACSB Group Dynamics

6. What kinds of leadership symbols are important in the creation of a positive corporate culture? Give
specific examples.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Leadership Principles

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

7. What are the major differences between the adaptability culture and the mission culture? Which of
these two would be most appropriate for a company in a high tech industry and why?
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Technology | AACSB Group Dynamics

8. Take a position on the following statement: A bureaucratic culture is less employee-oriented than a
clan culture. Defend your position.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

9. Discuss culture strength and organizational subcultures.


ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Group Dynamics

10. List and describe the three values incorporated into a strong adaptive culture.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Reflective Thinking | AACSB Group Dynamics

11. Discuss and draw a diagram of the relationship between ethical standards and legal requirements.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Legal Responsibilities

12. Give an example of an ethical dilemma that would perplex you as a manager if it were to occur in an
organization where you work. What makes the situation you describe meet the definition of "ethical
dilemma?"
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

13. Explain corporate social responsibility and why so many companies are embracing it. Give some
examples of ways companies are good corporate citizens.
ANS:
Answer not provided.

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

PTS: 1

NAT: AACSB Analytic | AACSB Creation of Value

14. Explain why ethical behavior of companies is as much an issue of organization culture as it is an issue
of personal ethics.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

15. What is values-based leadership? Give an example.


ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Leadership Principles

16. The president of a college once said in a guest lecture to a management class on his campus that, "The
only important facet of leadership is symbolism." Although many people on his campus would
disagree with his views on leadership because of mismanagement that occurred during his presidency,
his claim about the importance of symbolism lives on. Explain his view in light of our text's discussion
of values based leadership.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Leadership Principles

17. Describe the characteristics that define values-based leaders.


ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Individual Dynamics

18. Why should whistle-blowers be protected in an organization? In your opinion, where does protection
of the whistle-blower fall in the relationship between legal requirements (or rule of law) and ethical
standards?
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Legal Responsibilities

19. Discuss how organizations are managing and coordinating ethics activities.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Ethics | AACSB Ethical Responsibilities

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.

20. Assume that you have just been promoted to a plant manager's position in a city 500 miles from your
previous position. As you become acquainted with the workers, supervisors, and procedures of the
plant, you come to the conclusion that the values and attitudes of the workers and supervisors are the
source of the low morale in the plant, as well as the apathetic attitude toward production. Quality
inspections have shown that there are a large number of defects in the finished product. Explain the
kinds of things you might do to change the organizational culture to one that will be more conducive to
positive morale and higher production with better quality.
ANS:
Answer not provided.
PTS: 1

NAT: AACSB Analytic | AACSB Motivation Concepts

2013 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with
content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a
publicly accessible website, in whole or in part.