Exploring Management 5th Edition Schermerhorn Test Bank 1

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Exploring Management 5th Edition by

Schermerhorn Bachrach ISBN 1119117747
9781119117742
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File: Chapter 8: Organizational Cultures, Innovation, and Change
Multiple Choice
1. A system of shared beliefs and values that guides organizational behavior is called an
________.
a) organizational policy
b) organizational procedure
c) organizational design
d) organizational culture
Ans: d
Bloom’s: Knowledge
Level: Easy
Learning Objective 1: Understand the nature of organizational culture.
Section Reference: Organizational culture is the personality of the organization.
AACSB: Analytic
Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 1

2. Which of the following statements is NOT true about organizational culture?

a) It describes the structure of an organization.
b) It is a system of shared beliefs and values.
c) It represents the personality of an organization.
d) It represents the way of doing things in an organization.
Ans: a
Bloom’s: Comprehension
Level: Easy
AACSB: Analytic
3. The __________ of an organization is reflected in how people dress at work, arrange their
offices, and speak to and behave toward one another in the organization.
a) functional culture
b) observable culture
c) underground culture
d) core culture
Ans: b
Level: Easy
Section Reference: The observable culture is what you see and hear as an employee or customer.
AACSB: Analytic
4. All of the following are true about strong organizational cultures EXCEPT that:
a) they are performance driven.
b) they are restricted to the top management.
c) they provide a clear vision.
d) they discourage dysfunctional work behaviors and encourage positive ones.
Ans: b

Level: Easy
Section Reference: Organizational culture shapes behavior and influences performance.
AACSB: Analytic
5. What people see or hear when they walk around in an organization is part of the
organization’s:
a) observable culture.
b) goals.
c) strategy.
d) employee training.
Ans: a
Level: Easy
AACSB: Analytic
6. The senior managers of West Corp. do not have private offices or parking spaces. This is an
example of the organization’s __________.
a) corporate policy
b) employee training
c) performance appraisal
d) observable culture
Ans: d
Bloom’s: Application
Level: Medium
AACSB: Reflective Thinking

7. The process through which new members learn the culture of an organization is called
__________.
a) training
b) coaching
c) socialization
d) employee development
Ans: c
Level: Easy
AACSB: Analytic
8. According to the competing values framework, __________ emphasize authority, tradition,

and clear roles.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures
Ans: b
Level: Easy
Section Reference: Not all organization cultures are alike.
AACSB: Analytic
9. According to the competing values framework, which of the following types of cultures
emphasizes change, growth, creativity, and competition?
a) Entrepreneurial cultures
b) Hierarchical cultures
c) Rational cultures
d) Team cultures
Ans: a

Level: Easy
AACSB: Analytic
10. According to the competing values framework, __________ emphasize process, efficiency,
and slow change.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures
Ans: c
Level: Easy
AACSB: Analytic
11. At Callaway Golf, which of the following would NOT be a part of the observable culture?
a) The way people dress
b) The layout of the offices
c) The absence of executive parking spaces
d) The organizational beliefs
Ans: d
Level: Medium

12. Which of the following represents a deeper level of organizational culture that consists of the
beliefs and values shared by organization members?
a) Bureaucratic culture
b) Core culture
c) Organic culture
d) Mechanistic culture
Ans: b
Level: Easy
Section Reference: The core culture is found in the underlying values of the organization.
AACSB: Analytic
13. The beliefs shared by an organization’s members are called __________.

a) corporate doctrines
b) management directives
c) corporate requests
d) core values
Ans: d
Level: Easy
AACSB: Analytic
14. Merck’s “Highest level of scientific excellence;” Whole Foods’ “Creating ongoing win-win
partnerships with our suppliers;” and FedEx’s “We are honest, ethical, and do the right thing” are
examples of __________.
a) process innovations
b) value-based management
c) values statements
d) mission statements
Ans: c

Level: Easy
AACSB: Analytic
15. Organizations that actively develop, communicate, and enact shared values are practicing
__________.
a) functional management
b) value-based management
c) decentralized bureaucracy
d) bureaucratic control
Ans: b
Level: Easy
Section Reference: Value-based management supports a strong organizational culture.
AACSB: Analytic
16. Which of the following terms refers to the practices that create meaning and shared
community among employees?
a) Functional management
b) Workplace spirituality
c) Employee manipulation
d) Bureaucratic control
Ans: b
Level: Easy
AACSB: Analytic

17. The process of taking a new idea and putting it into practice is called __________.
a) production
b) innovation
c) creativity
d) brainstorming
Ans: b
Level: Easy
Learning Objective 2: Recognize how organizations support and achieve innovation.
Section Reference: Organizations pursue process, product, and business model innovations.
AACSB: Analytic
18. Creating better ways of doing things is called __________.

a) product innovation
b) process innovation
c) creativity
d) invention
Ans: b
Level: Easy
AACSB: Analytic
19. __________ result in new or improved goods and services.

a) Process innovations
b) Product innovations
c) Technology innovations
d) Business-model innovations
Ans: b
Level: Easy

AACSB: Analytic
20. At ABC Manufacturing, the process of turning ideas into products and methods that can
increase profits would be called __________.
a) virtual processing
b) organizational development
c) business model innovation
d) transformational change
Ans: c
Level: Easy
AACSB: Analytic
21. Netflix turned movie rental into a subscription business; eBay earns revenues by connecting
users of its online marketplace; Google thrives on advertising revenues driven by ever-expanding
Web technologies. These are all examples of __________.
a) process innovations
b) virtual innovations
c) business model innovations
d) green innovations
Ans: c
Level: Medium
22. Which of the following types of innovations creates ways to reduce the carbon footprint of an
organization or its products?

a) Reverse innovation
b) Sustainable innovation
c) Commercializing innovation
d) Business model innovation
Ans: b
Level: Easy
Section Reference: Green innovations pursue and support the goals of sustainability.
AACSB: Analytic
23. Hyd Inc., a clinical research company, recently introduced videoconferencing. As a result,
employees are rarely required to commute to office. By doing this, Hyd Inc. has considerably
reduced their carbon emissions. This is an example of __________.
a) invention
b) product innovation
c) reverse innovation
d) green innovation
Ans: d
Level: Medium
Section Reference: Green innovations pursue and support the goals of sustainability.
24. Gene pursues creative and innovative ways to solve social problems. Hence, we can say that
Gene participates in __________.
a) social responsibility
b) social entrepreneurship
c) green innovation
d) commercializing innovation
Ans: b

Level: Medium
Section Reference: Social innovations seek solutions to important societal problems.
25. The innovation process begins with __________.

a) commercialization
b) invention
c) application
d) implementation
Ans: b
Level: Easy
Section Reference: Commercializing innovation turns new ideas into salable products.
AACSB: Analytic
26. __________ recognizes the potential for valuable innovations to be launched from lower
organizational levels and diverse locations, including emerging markets.
b) Forward innovation
c) Commercializing innovation
d) Virtual innovation
Ans: a
Level: Easy
AACSB: Analytic
27. Identify a primary characteristic of reverse innovation.

a) It is a type of business innovation driven by a social conscience.

b) It supports sustainability by creating ways to reduce the carbon footprint of an organization or

its products.
c) It creates products or services that become so widely used that they largely replace prior
practices and competitors.
d) It takes products and services developed in emerging markets and finds ways to use them
elsewhere.
Ans: d
Level: Easy
AACSB: Analytic
28. __________ creates products or services that become so widely used that they largely replace
prior practices and competitors.
b) Basic research
c) Green innovation
d) Disruptive innovation
Ans: d
Level: Easy
Section Reference: Disruptive innovation uses new technology to displace existing practices.
AACSB: Analytic
29. Which of the following is a characteristic of highly innovative organizations?

a) They focus on having a highly bureaucratic organizational structure.
b) They tend to value creativity while moving people to responsible positions.
c) People from similar disciplines use the assembly line model to focus on problems.
d) The strategies of the organization target profitability.
Ans: b

Level: Easy
Section Reference: Innovative organizations share many common characteristics.
AACSB: Analytic
30. __________ is the enemy of innovation.

a) Creativity
b) Bureaucracy
c) Experimentation
d) Imagination
Ans: b
Level: Easy
AACSB: Analytic
31. Which of the following terms can be described as the special creative units set free from the
normal organizational structure for the purpose of innovation?
a) Divisions
b) Skunkworks
c) Research labs
d) Business units
Ans: b
Level: Easy
AACSB: Analytic

32. Michelle is a manager at MDH Corporation. She tries different approaches to alter the
existing pattern of behavior among her employees to adapt to new situations. Michelle would be
considered a(n) _______.
a) opinion leader
b) ethics manager
c) status quo manager
d) change leader
Ans: d
Level: Medium
Learning Objective 3: Describe how managers lead the process of organizational change.
Section Reference: Organizations and teams need change leaders.
33. If ABC, Inc. is focusing on a major and comprehensive redirection of the company, it is
called a(n) ___________ change.
a) innovative
b) planned
c) transformational
d) incremental
Ans: c
Level: Medium
Section Reference: Some organizational change is incremental.
34. A(n) __________ tweaks and nudges people, systems, and practices to better align them with
emerging problems and opportunities.
a) transactional change
b) incremental change
c) improvisational change
d) transformational change

Ans: b
Level: Easy
AACSB: Analytic
35. Nicole is a manager at N.E.W. Corporation. In order to improve performance, she bends and
adjusts the existing ways of performance improvement techniques. Nicole is using what type of
change?
a) Transactional change
b) Incremental change
c) Improvisational change
d) Transformational change
Ans: b
Level: Medium
36. A leader must do all of the following in order to lead transformational change EXCEPT:
a) establish a sense of urgency for change.
b) empower others to move change forward.
c) create and communicate a change vision.
d) order and hope that the change is implemented.
Ans: d
Level: Easy
Section Reference: Some organizational change is transformational.
AACSB: Analytic

37. Which of the following is true about status quo managers?

a) They encourage innovation.
b) They are not bothered by uncertainty.
c) They prefer change over monotony.
d) They feel threatened by change.
Ans: d
Level: Easy
AACSB: Analytic
38. The main reason for the failure of major transformational change is:
a) establishing a sense of urgency for change.
b) bad planning.
c) that such efforts are intense and highly stressful.
d) bad implementation.
Ans: d
Level: Easy
Section Reference: Some organizational change is transformational.
AACSB: Analytic
39. According to Lewin, the correct order in the steps of change is:
a) freezing, refreezing, and changing.
b) unfreezing, changing, and refreezing.
c) refreezing, changing, and unfreezing.
d) changing, unfreezing, and refreezing.
Ans: b
Level: Easy

Section Reference: Three phases of planned change are unfreezing, changing, and refreezing.
AACSB: Analytic
40. According to Lewin, which of the following steps prepares a system for change?
a) Refreezing
b) Unfreezing
c) Freezing
d) Thawing
Ans: b
Level: Easy
AACSB: Analytic
41. In the __________ phase of planned change, managers help others to develop, experience,
and feel a real need for change.
a) thawing
b) refreezing
c) freezing
d) unfreezing
Ans: d
Level: Easy
AACSB: Analytic
42. According to Kurt Lewin, the __________ phase of planned change focuses on stabilizing
the change with rewards, positive reinforcement, and resource support.
a) thawing

b) refreezing
c) freezing
d) unfreezing
Ans: b
Level: Easy
Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.
AACSB: Analytic
43. __________ makes continual adjustments as changes are being implemented.

a) Incremental change
b) Transactional change
c) Improvisational change
d) Transformational change
Ans: c
Level: Easy
Section Reference: Improvising is important to the change process.
AACSB: Analytic
44. A(n) __________ strategy pursues change through formal authority or the use of rewards or
punishments.
a) rational persuasion
b) shared power
c) force-coercion
d) irrational
Ans: c
Level: Easy

Section Reference: Managers use force-coercion, rational persuasion, and shared power change
strategies.
AACSB: Analytic
45. A(n) __________ strategy creates change through rational argument and empirical data.
b) shared power
c) force-coercion
d) empirical force
Ans: a
Level: Easy
strategies.
AACSB: Analytic
46. A(n) __________ strategy pursues change by participation in assessing change needs, values,
and goals.
b) shared power
c) force-coercion
d) empirical force
Ans: b
Level: Easy
strategies.
AACSB: Analytic

47. Which of the following strategies engages people in a collaborative process of identifying
values, assumptions, and goals from which support for change will naturally emerge?
a) Force-coercion strategy
b) Rational persuasion strategy
c) Shared power strategy
d) Political maneuvering strategy
Ans: c
Level: Easy
strategies.
AACSB: Analytic
48. The board of directors of Esten Inc. is planning an incremental change within the company.
In order to reduce employee resistance to the change, the management provides encouragement,
training, channels for communicating problems and complaints, and ways of helping overcome
performance pressures. Which of the following approaches has been used by Esten to deal with
the resistance to change?
a) Facilitation and support
b) Participation and involvement
c) Manipulation and cooptation
d) Explicit and implicit coercion
Ans: a
Level: Medium
Section Reference: Change leaders identify and deal positively with resistance to change.
49. Jake is a change leader who is responsible for bringing about a transformational change in his
organization. He forces resisters to accept change by threatening them with a variety of
undesirable consequences if they do not cooperate. Which of the following approaches is used by
Jake to deal with the resistance to change?

a) Education and communication

b) Participation and involvement
c) Manipulation and cooptation
d) Explicit and implicit coercion
Ans: d
Level: Medium
50. Which of the following is NOT a source of resistance to change?

a) Successful changes in the past
b) Fear of the unknown
c) Loss of control
d) Loss of face
Ans: a
Level: Easy
AACSB: Analytic
True/False
51. Research finds that if a company employs the right people, a strong corporate culture will
happen on its own.
Ans: False
Level: Easy


AACSB: Analytic
52. Core cultures are found in the underlying values of an organization.
Ans: True
Level: Easy
AACSB: Analytic
53. One of the challenges for managers is that values statements are easy to develop and write
but hard to live up to.
Ans: True
Level: Easy
AACSB: Analytic
54. Strong corporate cultures are easy to develop and quick to implement.
Ans: False
Level: Easy
AACSB: Analytic
55. Commercializing is the process of taking an idea and putting it into action.

Ans: False
Level: Easy
AACSB: Analytic
56. Using robots to improve manufacturing efficiency is an example of product innovation.
Ans: False
Level: Easy
AACSB: Analytic
57. Creating innovative ways to solve pressing social problems is called social engineering.
Ans: False
Level: Easy
Section Reference: Social innovations seek solutions to important societal problems.
AACSB: Analytic
58. Special creative units set free from the normal organizational structure for the purpose of
innovation are called advanced development teams.
Ans: False
Level: Easy

AACSB: Analytic
59. In highly innovative organizations, staffing builds talent for innovation.
Ans: True
Level: Easy
AACSB: Analytic
60. Transformational change is more important to an organization than incremental change.
Ans: False
Level: Easy
AACSB: Analytic
61. The success of a rational persuasion strategy depends on having very good facts and
information and being able to communicate them well.
Ans: True
Level: Easy
strategies.
AACSB: Analytic
Fill-in

62. __________ can be defined as a system of shared beliefs and values that develop within an
organization and guides the behavior of its members.
Ans: Organizational (or corporate) culture

Level: Easy
AACSB: Analytic
63. __________ is the process through which new members learn the culture of an organization.
Ans: Socialization
Level: Easy
AACSB: Analytic
64. The __________ of an organization is found in the stories, heroes, rituals, and symbols that
are part of daily organizational life.
Ans: observable culture

Level: Easy
AACSB: Analytic
65. The underlying values and assumptions that support the observable culture are part of the
__________ culture.

Ans: core
Level: Easy
AACSB: Analytic
66. __________ involves operating with a commitment to actively help develop, communicate,
and represent the shared values within an organization.
Ans: Value-based management

Level: Easy
AACSB: Analytic
67. Practices that create meaning and shared community among organizational members are
known as __________.
Ans: workplace spirituality

Level: Easy
AACSB: Analytic
68. The process of developing new ideas and putting them into practice is known as
__________.
Ans: innovation
Level: Easy


AACSB: Analytic
69. __________ is the process of turning new ideas into applications that generate profits.
Ans: Commercializing innovation

Level: Easy
AACSB: Analytic
70. __________ are individuals who take initiative to change the existing pattern of behavior of
another person or social system.
Ans: Change leaders

Level: Easy
AACSB: Analytic
71. Leadership of __________ focuses on building upon existing ways of doing things with the
goal of doing them better in the future.
Ans: incremental change

Level: Easy
AACSB: Analytic

72. In the force-coercion change strategy, the __________ tactic involves working indirectly to
gain special advantage over other people in order to force a change.
Ans: political maneuvering

Level: Easy
strategies.
AACSB: Analytic
73. In the __________ strategy, change is pursued through empirical data and rational judgment.
Ans: rational persuasion

Level: Easy
strategies.
AACSB: Analytic
Essay
74. Define organizational culture, observable culture, and core culture.
Ans: Organizational culture is a system of shared beliefs and values that develops within an
organization and guides the behavior of its members. The observable culture is what you would
see in people’s behaviors and hear in their conversations when walking around an organization.
The core culture is found in the underlying values of an organization.
Level: Easy

AACSB: Analytic
75. Define innovation and describe the three types of innovation.
Ans: Innovation is the process of taking a new idea and putting it into practice. The three types
of innovation are process innovation, product innovation, and business model innovation.
Process innovation is improving the way things are done. Product innovation is the development
and introduction of new or improved goods and services. Business model innovation is finding
new ways of making money for a firm.
Level: Easy
AACSB: Analytic
76. Explain the three phases of planned change developed by Kurt Lewin.
Ans: The three phases of planned change are unfreezing, changing, and refreezing.
Unfreezing is the first step in the process. It prepares an organization for change by convincing
others that there is a need for change.
Changing is the second step in the process. This is the actual implementation of the change.
Refreezing is the final step in the process. The intent of refreezing is to stabilize the change to
make it as long lasting as needed.
Level: Easy
Section Reference: Three phases of planned changes are unfreezing, changing, and refreezing.
AACSB: Analytic
77. Name and define the three types of change strategies along with their corresponding power
bases.

Ans: The three types of change strategies are force-coercion, rational persuasion, and shared
power.
Force-coercion is a strategy that pursues change through formal authority or the use of rewards
or punishments. It uses the power bases of legitimacy, rewards, and punishments as the primary
inducements to change.
Rational persuasion seeks to bring about change through persuasion backed by special
knowledge, information, facts, and rational argument. It works best when the change agent has
credibility as an expert.
A shared power strategy engages people in a collaborative process of identifying values,
assumptions, and goals from which support for change will naturally emerge. It relies on
empowerment and participation.
Level: Easy
strategies.
AACSB: Analytic
78. Do you support the management practice of manipulation and cooptation to deal with the
resistance to change in an organization? Give reasons.
Ans: Student answers will vary.

Bloom’s: Evaluation
Level: Hard

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Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank

Exploring Management 5th Edition by

Download full test bank at :

File: Chapter 8: Organizational Cultures, Innovation, and Change

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 1

2. Which of the following statements is NOT true about organizational culture?

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 2

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 3

8. According to the competing values framework, __________ emphasize authority, tradition,

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 4

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 5

13. The beliefs shared by an organization’s members are called __________.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 6

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 7

18. Creating better ways of doing things is called __________.

19. __________ result in new or improved goods and services.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 8

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 9

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 10

25. The innovation process begins with __________.

27. Identify a primary characteristic of reverse innovation.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 11

b) It supports sustainability by creating ways to reduce the carbon footprint of an organization or

29. Which of the following is a characteristic of highly innovative organizations?

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 12

30. __________ is the enemy of innovation.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 13

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 14

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 15

37. Which of the following is true about status quo managers?

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 16

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 17

43. __________ makes continual adjustments as changes are being implemented.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 18

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 19

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 20

a) Education and communication

50. Which of the following is NOT a source of resistance to change?

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 21

Section Reference: Organizational culture shapes behavior and influences performance.

52. Core cultures are found in the underlying values of an organization.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 22

56. Using robots to improve manufacturing efficiency is an example of product innovation.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 23

59. In highly innovative organizations, staffing builds talent for innovation.

60. Transformational change is more important to an organization than incremental change.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 24

Ans: Organizational (or corporate) culture

Ans: observable culture

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 25

Ans: Value-based management

Ans: workplace spirituality

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 26

Learning Objective 2: Recognize how organizations support and achieve innovation.

Ans: Commercializing innovation

Ans: Change leaders

Ans: incremental change

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 27

Ans: political maneuvering

Ans: rational persuasion

74. Define organizational culture, observable culture, and core culture.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 28

75. Define innovation and describe the three types of innovation.

Copyright © 2016 John Wiley & Sons, Inc. TB 8 - 29