Test Bank for International Management: Culture, Strategy, and Behavior, 11th Edition Fred L

Test Bank for International Management: Culture,

Strategy, and Behavior, 11th Edition Fred Luthans
Jonathan Doh

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Chapter 06 - Organizational Cultures and Diversity

Chapter 06
Organizational Cultures and Diversity

True/False Questions

1. Diverse and global teams are one of the most consistent sources of competitive advantage for
any organization.
Answer: True
Feedback: According to many international consultants and managers, diverse and global teams
are one of the most consistent sources of competitive advantage for any organization.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Managing Culture and Diversity in Global Teams

2. Andre Laurent's research found that cultural differences actually are more pronounced among
foreign employees working within the same multinational organization than among personnel
working for firms in their native lands.
Answer: True
Feedback: Andre Laurent's research supports Hofstede's conclusions. He found that cultural
differences are actually more pronounced among foreign employees working within the same
multinational organization than among personnel working for firms in their native lands.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Interaction between National and Organizational Cultures

3. To manage a global team, international managers must take into consideration three factors:
culture, communication, and trust.
Answer: True
Feedback: To manage a global team, international managers must take into consideration three
factors: culture, communication, and trust.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Managing Culture and Diversity in Global Teams
6-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

4. At Deloitte, training employees to trust and harness the benefits of global, diverse teaming
starts at the intern level.
Answer: True
Feedback: At Deloitte, training employees to trust and harness the benefits of global, diverse
teaming starts at the intern level. Through Deloitte's Global Project Challenge, interns cross-
collaborate with other Deloitte employees across the world to solve real business problems.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Managing Culture and Diversity in Global Teams

5. At Deloitte, employees are trained to adapt to the cultural differences that their globally
located leaders exhibit.
Answer: False
Feedback: At Deloitte, leadership is trained to adapt to the cultural differences that their globally
located employees exhibit. Leveraging the experiences of one of their global teams, the company
conducted a three-month study into how cultural dynamics impact performance and success.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

6. Being consciously aware of the way that teammates communicate can increase the chances of
success for the team.
Answer: True
Feedback: Being consciously aware of the way that teammates communicate can increase the
chances of success for the team. Communicating without face-to-face interaction can have its
drawbacks.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Managing Culture and Diversity in Global Teams

7. Kirkman and colleagues concluded that "working virtually increases team process losses
associated with stereotyping."
Answer: False
6-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: Kirkman and colleagues concluded that "working virtually can reduce team process
losses associated with stereotyping, personality conflicts, power politics, and cliques commonly
experienced by face-to-face teams. Virtual team members may be unaffected by potentially
divisive demographic differences when there is minimal face-to-face contact."
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

8. In the United States, companies tend to reach out to the government for assistance when
finances are pressured.
Answer: False
Feedback: In the United States, jobs are often cut when finances are pressured, whereas in
France, companies tend to reach out to the government for assistance.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Interaction between National and Organizational Cultures

9. Organizational climate refers to the overall atmosphere of an enterprise.

Answer: True
Feedback: Organizational climate refers to the overall atmosphere of an enterprise. It is reflected
by the way that employees interact with each other, conduct themselves with customers, and feel
about the way they are treated by higher-level management.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture

10. There often are substantial differences between the organizational cultures of different
subsidiaries.
Answer: True
Feedback: There often are substantial differences between the organizational cultures of different
subsidiaries. This can cause coordination problems.
AACSB: Diversity
Bloom's: Remember

6-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Interaction between National and Organizational Cultures

11. In the context of organizational cultures, change in the guided missile culture comes slowly.
Answer: False
Feedback: Unlike the family and Eiffel Tower cultures, change in the guided missile culture
comes quickly. Goals are accomplished, and teams are reconfigured and assigned new
objectives.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

12. In the context of organizational cultures, the Eiffel Tower culture is characterized by a strong
emphasis on equality in the workplace and orientation to the person.
Answer: False
Feedback: In the context of organizational cultures, the Eiffel Tower culture is characterized by a
strong emphasis on hierarchy and orientation to the task. Under this organizational culture, jobs
are well defined, employees know what they are supposed to do, and everything is coordinated
from the top.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

13. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.
Answer: True
Feedback: Organizational cultures of MNCs are shaped by a number of factors, including the
cultural preferences of the leaders and employees.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

6-4
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

14. Among international firms, which focus on exporting and producing abroad, cultural
diversity has a relatively weak impact on their external relationships with potential buyers and
foreign employees.
Answer: False
Feedback: Among international firms, which focus on exporting and producing abroad, cultural
diversity has a strong impact on their external relationships with potential buyers and foreign
employees.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

15. As the diversity of a group increases, the likelihood of all members perceiving things in the
same way increases sharply.
Answer: False
Feedback: As the diversity of a group increases, the likelihood of all members perceiving things
in the same way decreases sharply.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

16. A major benefit of culturally diverse groups is that they can prevent groupthink.
Answer: True
Feedback: A major benefit of culturally diverse groups is that they can prevent groupthink.
Groupthink is caused by social conformity and pressures on individual members of a group to
conform and reach consensus.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

17. It is necessary for today's organizations to do business in another country to encounter people
with diverse cultural backgrounds.
Answer: False

6-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: It is not necessary for today's organizations to do business in another country to

encounter people with diverse cultural backgrounds. Culturally distinct populations can be found
within organizations almost everywhere in the world.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

18. In the work stage of team development, attention may be directed toward decision making
and implementation.
Answer: False
Feedback: In the work stage of development, attention may be directed toward describing and
analyzing the problem or task that has been assigned. This stage often is fairly easy for managers
of multicultural teams because they can draw on the diversity of the members in generating
ideas.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

19. Multicultural teams are most effective when they are assigned to routine tasks.
Answer: False
Feedback: Multicultural teams are most effective when they face tasks requiring innovativeness.
They are far less effective when they are assigned to routine tasks.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

20. When setting out to manage a culturally diverse team, managers should select team members
for their task-related abilities and not solely based on ethnicity.
Answer: True
Feedback: When setting out to manage a culturally diverse team, managers should select team
members for their task-related abilities and not solely based on ethnicity. If the task is routine,
homogeneous membership often is preferable; if the task is innovative, multicultural membership
typically is best.
AACSB: Diversity
6-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Bloom's: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

Multiple Choice Questions

21. Kirkman and colleagues discovered that, to build trust among virtual team members,
managers should:
A. encourage lapses in unilateral priority shifts.
B. build a shared mythology.
C. avoid long lags in responding.
D. keep the door open except when on private calls.
Answer: C
Feedback: From their research, Kirkman and colleagues discovered that "building trust requires
rapid responses to electronic communications from team members, reliable performance, and
consistent follow-through. Accordingly, team leaders should coach virtual team members to
avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments."
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

22. To unite a diverse set of employees in a pharmaceutical company under a common corporate
culture, AstraZeneca's Global Steering Group has focused on three universal cultural pillars.
Which of the following is not one of those pillars?
A. Leadership and Management Capability
B. Transparency in Talent Management and Career Progression
C. Work/Life Challenges
D. Insight Exchange
Answer: D
Feedback: To unite a diverse set of employees under a common corporate culture, AstraZeneca's
Global Steering Group has focused on three universal cultural pillars: "Leadership and
Management Capability," "Transparency in Talent Management and Career Progression," and
"Work/Life Challenges."
AACSB: Diversity
Bloom's: Remember

6-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture

23. _____ is a pattern of basic assumptions that is developed by a group as it learns to cope with
problems of external adaptation and internal integration and is taught to new members as the
correct way to perceive, think, and feel in relation to these problems.
A. Organizational culture
B. Organizational learning
C. Organizational change
D. Organizational structure
Answer: A
Feedback: Organizational cultural theorist Edgar Schein defines organizational culture as a
pattern of shared basic assumptions that the group learned as it solved its problems of external
adaptation and internal integration, and that has worked well enough to be considered valid and,
therefore, to be taught to new members as the correct way to perceive, think, and feel in relation
to those problems.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture

24. Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation are characteristics associated with
an organization's _____.
A. ethics
B. ambience
C. culture
D. structure
Answer: C
Feedback: A number of important characteristics are associated with an organization's culture.
These include rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture

6-8
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

25. Organizational climate is reflected by:

A. the degree of cooperation between management and employees.
B. common language, terminology, and rituals.
C. high product and service quality.
D. the way employees interact with each other.
Answer: D
Feedback: Organizational climate, or the overall atmosphere of an enterprise, is reflected by the
way that participants interact with each other, conduct themselves with customers, and feel about
the way they are treated by higher-level management.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: The Nature of Organizational Culture

26. Norms of an organization are reflected by:

A. the rituals, common language, and terminology used.
B. the way employees and customers are treated.
C. the amount of work to be done.
D. the way participants feel about the way they are treated by higher-level management.
Answer: C
Feedback: Norms are reflected by things such as the amount of work to be done and the degree
of cooperation between management and employees.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture

27. According to a study by the Diagnosing Organizational Culture for Strategic Application
(DOCSA) group published in 1995, unlike Americans, Europeans:
A. were perceived as being very open in their communications.
B. were viewed as preferring very loose control.
C. saw themselves as somewhat pragmatic in their conduct.
D. were seen as having a slight identification with their own organization.
Answer: C
Feedback: According to a study by the Diagnosing Organizational Culture for Strategic
Application (DOCSA) group published in 1995, unlike Americans, Europeans saw themselves as
somewhat pragmatic in their conduct. Americans were seen as somewhat conventional in their
conduct.
AACSB: Analytic
6-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

28. According to a study by Ronald Lessen and Fred Neubauer, unlike Spanish negotiators,
French negotiators:
A. give importance to social competence.
B. employ persuasion through emotional appeal.
C. develop trust on the basis of frequent and warm interpersonal contact and transaction.
D. look for a meeting of minds.
Answer: D
Feedback: According to a study by Ronald Lessen and Fred Neubauer, unlike Spanish
negotiators, French negotiators look for a meeting of minds. Spanish negotiators look for a
meeting of people.
AACSB: Analytic
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

29. A widely held belief that has not been found to be accurate is that organizational culture:
A. tends to erase the impact of national culture.
B. tends to be affected by national culture.
C. cannot easily change the cultural values employees bring to the workplace.
D. is different in different subsidiaries.
Answer: A
Feedback: There is a widely held belief that organizational culture tends to moderate or erase the
impact of national culture. The logic of such conventional wisdom is that if a U.S. MNC sets up
operations in, say, France, it would not be long before the French employees began to "think like
Americans." In fact, evidence is accumulating that just the opposite may be true. Hofstede's
research found that the national cultural values of employees have a significant impact on their
organizational performance, and that the cultural values employees bring to the workplace with
them are not easily changed by the organization.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
6-10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Topic: Interaction between National and Organizational Cultures

30. Which of the following is the identity dimension of corporate culture?

A. To put the demands of the job before the needs of the individual
B. To put the needs of the individual before the needs of the job
C. To identify with and uphold the expectations of the employing organizations
D. To strive for accuracy and attention to detail
Answer: C
Feedback: The identity dimension of corporate culture is to identify with and uphold the
expectations of the employing organizations.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

31. Which of the following is associated with the dimension of pragmatic conduct?
A. To put the expertise and standards of the employing organization first
B. To put the demands and expectations of the customers first
C. To comply with clear and definite systems
D. To pursue clear aims and objectives
Answer: B
Feedback: Pragmatic conduct means "to put the demands and expectations of customers first; to
do what they ask."
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

32. The United Kingdom's corporate characteristic is:

A. administrative.
B. industrial.
C. pragmatic.
D. commercial.
Answer: D
Feedback: The United Kingdom's corporate characteristic is commercial.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
6-11
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Level of Difficulty: 1 Easy

Topic: Interaction between National and Organizational Cultures

33. "Dirigiste" is used to describe the _____ dimension of France.

A. economic
B. philosophical
C. cultural
D. structural
Answer: A
Feedback: "Dirigiste" is used to describe the economic dimension.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 1 Easy
Topic: Interaction between National and Organizational Cultures

34. Which of the following statements is true about Spanish negotiators?

A. They emphasize intellectual competence.
B. They employ persuasion through carefully prepared and skilled rhetoric.
C. They base trust on the evaluation of perceived status and intellect.
D. They view a contract as a long-lasting relationship.
Answer: D
Feedback: A contract is viewed as a long-lasting relationship by Spanish negotiators. Also, trust
is developed on the basis of frequent and warm interpersonal contact and transaction.
AACSB: Analytic
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

35. Which of the following types of organizational cultures can be considered a fulfillment-
oriented culture?
A. The family culture
B. The Eiffel Tower culture
C. The guided missile culture
D. The incubator culture
Answer: D
Feedback: The incubator culture can be considered a fulfillment-oriented culture. This culture is
based on the premise that the role of organizations is to serve as incubators for the self-
expression and self-fulfillment of their members.
6-12
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

36. Which of the following statements is true of the Eiffel Tower culture?
A. It is well equipped to handle changes.
B. Relationships are specific, and status remains with the job.
C. Job assignments are flexible, and personnel do whatever it takes to get the job done.
D. Replacing the person holding the top position affects work of the organization members.
Answer: B
Feedback: In the Eiffel Tower culture, relationships are specific and status remains with the job.
Therefore, if the boss of an Eiffel Tower subsidiary were playing golf with a subordinate, the
subordinate would not feel any pressure to let the boss win.
AACSB: Analytic
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

37. The guided missile culture is characterized by _____.

A. individual expertise
B. a formal hierarchy
C. personal orientation
D. a paternal relationship with management
Answer: A
Feedback: The guided missile culture is characterized by individual expertise. Formal
hierarchical considerations are given low priority.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

38. Which of the following types of organizational cultures is most likely egalitarian and project-
oriented?
6-13
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

A. The family culture

B. The Eiffel Tower culture
C. The guided missile culture
D. The incubator culture
Answer: C
Feedback: The guided missile culture is egalitarian and task-driven. All team members are equal
(or at least potentially equal), and they treat each other with respect.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

39. In which of the following types of organizational cultures are organizations typically
entrepreneurial and provide an environment for the self-expression and self-fulfillment of their
members?
A. The incubator culture
B. The guided missile culture
C. The Eiffel Tower culture
D. The family culture
Answer: A
Feedback: In the incubator culture, organizations are typically entrepreneurial and provide an
environment for the self-expression and self-fulfillment of their members. The organizations are
often founded by team members who want to be part of an organization where their creative
talents will not be stifled.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

40. There are three aspects of organizational functioning that seem to be especially important in
determining an MNC's organizational culture. They are:
A. the general views that employees hold about the MNC's purpose, destiny, goals, and their
places in them; the age of the organization; and the degree of cultural diversity among the
members of the organization.
B. the general relationship between the managers and the rank-and-file employees in the
organization, the degree of cultural diversity among the members of the organization, and the
hierarchical system of authority that defines the roles of managers and subordinates.
6-14
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

C. the degree of cultural diversity among the members of the organization, the age of the
organization, and the strength of the organization's leadership.
D. the general relationship between the employees and their organization; the hierarchical system
of authority that defines the roles of managers and subordinates; and the general views that
employees hold about the MNC's purpose, destiny, goals, and their places in them.
Answer: D
Feedback: There are three aspects of organizational functioning that seem to be especially
important in determining MNC organizational culture: (1) the general relationship between the
employees and their organization; (2) the hierarchical system of authority that defines the roles
of managers and subordinates; and (3) the general views that employees hold about the MNC's
purpose, destiny, goals, and their place in them.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

41. The _____ culture is characterized by a strong emphasis on hierarchy and orientation to the
person.
A. family
B. Eiffel Tower
C. incubator
D. guided missile
Answer: A
Feedback: The family culture is characterized by a strong emphasis on hierarchy and orientation
to the person. The result is a family-type environment that is power-oriented and headed by a
leader who is regarded as a caring parent and one who knows what is best for the personnel.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

42. The _____ culture is a project-oriented culture.

A. family
B. Eiffel Tower
C. guided missile
D. incubator
Answer: C
Feedback: The guided missile culture is a project-oriented culture.
AACSB: Diversity
6-15
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

43. Which of the following types of organizational cultures is power-oriented and headed by a
leader who is regarded as a caring parent?
A. The family culture
B. The Eiffel Tower culture
C. The guided missile culture
D. The incubator culture
Answer: A
Feedback: The family culture is power-oriented and headed by a leader who is regarded as a
caring parent and one who knows what is best for the personnel. Fons Trompenaars found that
this organizational culture is common in countries such as Turkey, Pakistan, Venezuela, China,
Hong Kong, and Singapore.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

44. When it works well, the _____ culture can catalyze and multiply the energies of the
personnel and appeal to their deepest feelings and aspirations.
A. incubator
B. guided missile
C. Eiffel Tower
D. family
Answer: D
Feedback: When it works well, family culture can catalyze and multiply the energies of the
personnel and appeal to their deepest feelings and aspirations.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

45. Unlike the organizational culture in the United States, in the family culture, appointments to
a high-level, sensitive position are most likely to be based on _____.
6-16
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

A. personal accomplishments
B. personal relationships
C. technicality
D. creativity
Answer: B
Feedback: Unlike the organizational culture in the United States, in the family culture,
appointments to a high-level, sensitive position are most likely to be based on personal
relationships. Family ties are so strong that the appointed relative would never do anything to
embarrass or let down the family member who made the appointment.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

46. The _____ culture is characterized by a strong emphasis on hierarchy and orientation to the
task.
A. incubator
B. family
C. guided missile
D. Eiffel Tower
Answer: D
Feedback: The Eiffel Tower culture is characterized by a strong emphasis on hierarchy and
orientation to the task. Under this organizational culture, jobs are well defined, employees know
what they are supposed to do, and everything is coordinated from the top.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

47. In the _____ culture, jobs are well defined, employees know what they are supposed to do,
and everything is coordinated from the top.
A. guided missile
B. family
C. Eiffel Tower
D. incubator
Answer: C

6-17
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: The Eiffel Tower culture is characterized by a strong emphasis on hierarchy and
orientation to the task. Under this organizational culture, jobs are well defined, employees know
what they are supposed to do, and everything is coordinated from the top.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

48. The Eiffel Tower culture is most commonly found in:

A. northwestern European countries, such as Germany, Denmark, and the Netherlands.
B. northeastern Asian countries, such as Taiwan, South Korea, and Japan.
C. South American countries, such as Brazil, Argentina, and Chile.
D. North Atlantic countries, such as England, Ireland, and Canada.
Answer: A
Feedback: The Eiffel Tower culture is most commonly found in northwestern European
countries. Examples include Denmark, Germany, and the Netherlands.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

49. The _____ culture is characterized by a strong emphasis on equality in the workplace and
orientation to the task.
A. guided missile
B. family
C. incubator
D. Eiffel Tower
Answer: A
Feedback: The guided missile culture is characterized by a strong emphasis on equality in the
workplace and orientation to the task. This organizational culture is oriented to work, which
typically is undertaken by teams or project groups.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

50. The _____ culture is characterized by a strong emphasis on equality and personal orientation.
6-18
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

A. incubator
B. Eiffel Tower
C. family
D. guided missile
Answer: A
Feedback: The incubator culture is one of the major types of organizational cultures that Fons
Trompenaars identified, and it is characterized by a strong emphasis on equality and personal
orientation.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

51. _____ cultures often create environments where participants thrive in an intense, emotional
commitment to the nature of the work.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator
Answer: D
Feedback: Incubator cultures, characterized by a strong emphasis on equality and personal
orientation, often create environments where participants thrive on an intense, emotional
commitment to the nature of the work.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

52. Change in the incubator culture is:

A. slow and calculated.
B. almost nonexistent.
C. moderate and methodological.
D. fast and spontaneous.
Answer: D
Feedback: Change in the incubator culture often is fast and spontaneous. All participants are
working toward the same objective.
AACSB: Diversity
Bloom's: Remember

6-19
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 1 Easy
Topic: Organizational Cultures in MNCs

53. Which of the following describes the relationships between employees in the family culture?
A. Diffuse relationships to organic whole to which one is bonded
B. Specific role in mechanical system of required interaction
C. Specific tasks in cybernetic system targeted on shared objectives
D. Diffuse, spontaneous relationships growing out of shared creative process
Answer: A
Feedback: The relationships between employees in the family culture can be described as
"diffuse relationships to organic whole to which one is bonded."
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

54. Which of the following describes the attitude toward authority in the Eiffel Tower culture?
A. Status is achieved by individuals exemplifying creativity and growth.
B. Status is achieved by project group members who contribute to a targeted goal.
C. Status is ascribed to superior roles that are distant yet powerful.
D. Status is ascribed to parent figures that are close and powerful.
Answer: C
Feedback: The characteristic of attitude toward authority in the Eiffel Tower culture involves
ascribing status to superior roles that are distant yet powerful.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

55. Which of the following describes the ways of thinking and learning in the guided missile
culture?
A. Process-oriented, creative, ad hoc, and inspirational
B. Problem centered, professional, practical, and cross-disciplinary
C. Logical, analytical, vertical, and rationally efficient
D. Intuitive, holistic, lateral, and error correcting
Answer: B

6-20
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: The ways of thinking and learning in the guided missile culture is "problem centered,
professional, practical, and cross-disciplinary."
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

56. A group in which all members but one have the same background is referred to as a _____.
A. multicultural group
B. bicultural group
C. token group
D. homogeneous group
Answer: C
Feedback: A group in which all members but one have the same background is referred to as a
token group. An example would be a group of Japanese retailers and a British attorney who are
looking into the benefits and shortcomings of setting up operations in Bermuda.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

57. In the action stage of team development, the focus shifts to:
A. building trust and developing team cohesion.
B. describing a problem.
C. analyzing an assigned task.
D. decision making and implementation.
Answer: D
Feedback: In the action stage of team development, the focus shifts to decision making and
implementation. This can be a difficult phase because it often requires consensus building among
team members.
AACSB: Analytic
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-21
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

58. According to Lee's research in Singapore on small Chinese family businesses, older
generations tend to:
A. stress hierarchies.
B. stress strategies.
C. focus on individual performance.
D. strive for new horizons.
Answer: A
Feedback: According to Lee's research in Singapore on small Chinese family businesses, older
generations tend to stress hierarchies, ethics, group dynamics, and the status quo. Whereas, the
younger generations focus on worker responsibility, strategy, individual performance, and
striving for new horizons.
AACSB: Analytic
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

59. As firms begin exporting to foreign clients and become what Adler calls "international
corporations," they must:
A. increase the standardization of products and services.
B. adapt their products but not their approach to those of the local market.
C. adapt their approach and products to those of the local market.
D. adapt their approach but not their products to those of the local market.
Answer: C
Feedback: As firms begin exporting to foreign clients and become what Adler calls "international
corporations," they must adapt their approach and products to those of the local market.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

60. In the context of international corporation evolution, which of the following corporations has
an ethnocentric perspective?
A. International corporations
B. Domestic corporations
C. Global corporations
D. Multinational corporations
Answer: B

6-22
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: The domestic corporations has an ethnocentric perspective. Adler has noted that
international cultural diversity has minimal impact on domestic organizations, although domestic
multiculturalism has a highly significant impact.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

61. As companies become what Alder calls "multinational firms," they often find that _____
tends to dominate all other considerations and the direct impact of culture may lessen slightly.
A. quality
B. serviceability
C. durability
D. price
Answer: D
Feedback: As companies become what Adler calls "multinational corporations," they often find
that price tends to dominate all other considerations and the direct impact of culture may lessen
slightly.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

62. Global firms need:

A. neither an internal nor an external diversity focus.
B. both an internal and an external diversity focus.
C. an internal but not an external diversity focus.
D. an external but not an internal diversity focus.
Answer: B
Feedback: Global firms need both an internal and an external diversity focus. To be effective,
everyone in a global organization needs to develop cross-cultural skills that allow them to work
effectively with internal personnel as well as external customers, clients, and suppliers.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-23
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

63. A _____ group is characterized by members who share similar backgrounds and who
generally perceive, interpret, and evaluate events in similar ways.
A. multicultural
B. bicultural
C. token
D. homogeneous
Answer: D
Feedback: In homogeneous groups, members have similar backgrounds and generally perceive,
interpret, and evaluate events in similar ways. An example would be a group of male German
bankers who are forecasting the economic outlook for a foreign investment.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

64. A _____ group is a group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Canadians who have formed a team to investigate the
possibility of investing in Russia.
A. multicultural
B. bicultural
C. token
D. homogeneous
Answer: B
Feedback: In bicultural groups, two or more members represent each of two distinct cultures. An
example would be a group of four Mexicans and four Canadians who have formed a team to
investigate the possibility of investing in Russia.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

65. A _____ group is a group in which there are individuals from three or more different ethnic
backgrounds, such as three U.S., three German, three Uruguayan, and three Chinese managers
who are looking into mining operations in Chile.
A. homogeneous
B. token
C. multicultural
D. bicultural
Answer: C
6-24
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: In multicultural groups, there are individuals from three or more different ethnic
backgrounds. An example is a group of three American, three German, three Uruguayan, and
three Chinese managers who are looking into mining operations in Chile.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

66. A team of employees looks into the benefits and shortcomings of setting up operations in the
country of Bodonia. This team consists of a group of retailers from the country of Denebland and
an attorney from the country of Altair. This team of employees exemplifies a _____.
A. homogeneous group
B. token group
C. multicultural group
D. bicultural group
Answer: B
Feedback: This team of employees exemplifies a token group. In this group, all members but one
have the same background.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

67. When _____ occurs, group participants believe that their ideas and actions are correct and
that those who disagree with them are either uninformed or deliberately trying to sabotage their
efforts.
A. group cognitive inertia
B. group reverse vigilance
C. groupthink
D. static decision making
Answer: C
Feedback: When groupthink occurs, group participants come to believe that their ideas and
actions are correct and that those who disagree with them are either uninformed or deliberately
trying to sabotage their efforts.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 1 Easy
6-25
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Topic: Managing Multiculturalism and Diversity

68. Identify a potential problem associated with diversity.

A. It limits idea generation.
B. It tends to increase groupthink.
C. It deteriorates customer relationships.
D. It tends to cause a lack of cohesion.
Answer: D
Feedback: Diversity may cause a lack of cohesion that results in a unit's inability to take
concerted action, be productive, and create a work environment that is conducive to both
efficiency and effectiveness. These potential problems are rooted in people's attitudes.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

69. In the _____ stage of group development, the focus should be on building trust and
developing team cohesion.
A. entry
B. work
C. action
D. reflection
Answer: A
Feedback: In the entry stage, the focus should be on building trust and developing team
cohesion. This can be difficult for diverse teams, whose members are accustomed to working in
different ways.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

70. In the _____ stage of group development, attention may be directed more toward describing
and analyzing the problem or task that has been assigned.
A. entry
B. work
C. action
D. reflection
Answer: B

6-26
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written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Feedback: In the work stage of development, attention may be directed more toward describing
and analyzing the problem or task that has been assigned. This stage often is fairly easy for
managers of multicultural teams because they can draw on the diversity of the members in
generating ideas.
AACSB: Diversity
Bloom's: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 1 Easy
Topic: Managing Multiculturalism and Diversity

Essay Questions

71. What is organizational culture, and what are some of its major characteristics?
Answer: Organizational culture is a set of shared values and beliefs that enable members to
understand their roles and the norms of an organization. Some important characteristics of
organizational cultures include observed behavioral regularities, norms, dominant values,
philosophy, rules, and organizational climate.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: The Nature of Organizational Culture

72. Discuss findings of Hofstede and Andre Laurent about the relationship between national and
organizational culture.
Answer: There is a widely held belief that organizational culture tends to moderate or erase the
impact of national culture. The logic of such conventional wisdom is that if a U.S. MNC sets up
operations in, say, France, it would not be long before the French employees began to "think like
Americans." In fact, evidence is accumulating that just the opposite may be true. Hofstede's
research found that the national cultural values of employees have a significant impact on their
organizational performance and that the cultural values employees bring to the workplace with
them are not easily changed by the organization. So, for example, while some French employees
would have a higher power distance than Swedes and some a lower power distance, chances are
"that if a company hired locals in Paris, they would, on the whole, be less likely to challenge
hierarchical power than would the same number of locals hired in Stockholm." Andre Laurent's
research supports Hofstede's conclusions. He found that cultural differences actually are more
pronounced among foreign employees working within the same multinational organization than
among personnel working for firms in their native lands.
AACSB: Diversity
Bloom's: Understand
6-27
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 06 - Organizational Cultures and Diversity

Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture, and discuss
the interaction of national and MNC cultures.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

73. What are the four types of organizational cultures identified by Fons Trompenaars? Provide a
brief description of each of these cultures.
Answer: The four types of organizational cultures identified by Fons Trompenaars are family
culture, Eiffel Tower culture, guided missile culture, and incubator culture. The family culture is
characterized by a strong emphasis on hierarchy and orientation to the person. The Eiffel Tower
culture is characterized by a strong emphasis on hierarchy and orientation to the task. The guided
missile culture is characterized by a strong emphasis on equality in the workplace and orientation
to the task. Finally, the incubator culture is characterized by a strong emphasis on equality and
personal orientation.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational
culture that have been found through research, and discuss the characteristics of each.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

74. Discuss some of the potential problems associated with diversity.

Answer: Overall, diversity may cause a lack of cohesion that results in a unit's inability to take
concerted action, be productive, and create a work environment that is conducive to both
efficiency and effectiveness. These potential problems are rooted in people's attitudes. Another
potential problem that may be perceptual is that when culturally diverse groups come together,
they often bring preconceived stereotypes with them. This perception can result in status-related
problems. A related problem is inaccurate biases. Still another potential problem with diverse
groups is inaccurate communication, which could occur for a number of reasons. One is
misunderstandings caused by words used by a speaker that are not clear to other members.
Another contribution to miscommunication may be the way in which situations are interpreted.
Diversity also may lead to communication problems because of different perceptions of time.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism
and diversity in today's MNCs.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

75. Briefly discuss the guidelines to be followed by managers when setting out to manage a
culturally diverse team.
Answer: Some specific guidelines for managers when setting out to manage a culturally diverse
team are as follows: (1) Team members must be selected for their task-related abilities and not
6-28
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written consent of McGraw-Hill Education.
Test Bank for International Management: Culture, Strategy, and Behavior, 11th Edition Fred L

Chapter 06 - Organizational Cultures and Diversity

solely based on ethnicity; (2) Team members must recognize and be prepared to deal with their
differences; (3) Because members of diverse teams tend to have more difficulty agreeing on their
purpose and task than members of homogeneous groups, the team leader must help the group to
identify and define its overall goal; (4) Members must have equal power so that everyone can
participate in the process; cultural dominance always is counterproductive; (5) It is important
that all members have mutual respect for each other; and (6) Because teams often have difficulty
determining what is a good or a bad idea or decision, managers must give teams positive
feedback on their process and output.
AACSB: Diversity
Bloom's: Understand
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building
multicultural effectiveness at the team and the organizational levels.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-29
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