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International Management Culture

Strategy and Behavior 9th Edition


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Chapter 06

Organizational Cultures and Diversity

True / False Questions

1. Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.

True False

2. Organizational culture is complex and cannot be defined as a set of norms regulating the
behavior of the employees of a firm.

True False

3. Diverse and global teams are one of the most consistent sources of competitive advantage
for any organization.

True False

4. Hofstede's research found that the national cultural values of employees have an
insignificant impact on their organizational performance, and these values are easily changed
by the organization.

True False

5. 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.

True False

6-1
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McGraw-Hill Education.
6. For a global retail company, a focused sale campaign on Christmas gift items would be
effective in all of the company's markets.

True False

7. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.

True False

8. To manage a global team, international managers must take into consideration three factors:
culture, communication, and trust.

True False

9. Guided missile organizational cultures generally are made up of cooperative project teams.

True False

10. A high collectivistic culture in found in the U.S., the U.K., and Australia.

True False

11. As firms began exporting to foreign clients, they became what Adler called "international
corporations."

True False

12. 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.

True False

13. An example of a token group would be a group of male German bankers who are forecasting
the economic outlook for a foreign investment.

True False

6-2
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McGraw-Hill Education.
14. Individuals in a high collectivistic culture perform better when their values are in harmony
with their managers.

True False

15. As the diversity of a group increases, the likelihood of all members perceiving things in the
same way increases sharply.

True False

16. An example of a token group is a group of three American, three German, three British and
three Japanese managers who are looking into oil exploration opportunities in Russia.

True False

17. One main benefit of diversity is the generation of more and better ideas.

True False

18. A disadvantage of diversity is that it often leads to groupthink, which is social conformity and
pressures on individual members of a group to conform and reach consensus.

True False

19. Having people with the right skills is essential to bring together a successful virtual team.

True False

20. In the entry stage of group development, the focus is typically on decision making and
implementation.

True False

Multiple Choice Questions

6-3
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21. To ensure good communication in global teams, managers should do all of the following
except:

A. Hold an initial meeting in which all members introduce themselves and describe their jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to
avoid misunderstandings
D. Put the details of the project in writing

22. To build trust among virtual team members, managers should:

A. Deep-six the egos and be friendly


B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments
D. Keep the door open except when on private calls

23. Implementing a set of values where employees are rewarded or punished according to their
conformity with these values is found in the ______ management approach.

A. Clan control
B. Outcome control
C. Self-control
D. Behavior control

24. Which of the following is not an advantage of virtual teams?

A. They can reduce problems associated with personality conflicts


B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work

6-4
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25. When individuals join a multinational corporation they bring their national culture, which
greatly affects all of the following except:

A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors

26. PepsiCo, personnel are expected to be cheerful, positive, enthusiastic, and have committed
optimism. This is an example of:

A. Being influenced by the external environment


B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values

27. Which of the following is not a possible management approach, according to Surinder Kahai?

A. Outcome control
B. Behavior control
C. Mind control
D. Clan control

28. _____ is a pattern of basic assumptions that are developed by a group as it learns to cope
with problems of external adaptation and internal integration and that are 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

6-5
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29. 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

30. Observed behavioral regularities are typified by the following except:

A. Common language
B. Terminology
C. Customer relations
D. Rituals

31. 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 participants interact with each other

32. Norms are reflected by things such as:

A. Common language, terminology, and rituals


B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level management

6-6
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33. 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

34. When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners
to meet and talk about their cultural differences. This is an example which illustrates that:

A. Organizational culture clashes often occur when partners do not fully understand the
culture of the new partner
B. Cultural differences are less pronounced among foreign employees working for the same
multinational company
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want one
culture influencing the other

35. Which of the following shows 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

36. Which of the following would be 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

6-7
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37. The United Kingdom shows the following characteristics regarding the corporate dimension:

A. Administrative
B. Industrial
C. Pragmatic
D. Commercial

38. 'Dirigiste' is used to describe the _____ dimension.

A. Economics
B. Philosophical
C. Cultural
D. Structural

39. Which of the following sets of characteristics is typical of French negotiators?

A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and
transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes
negotiations, which are characterized by an exchange of grand ideas and general
principles, social competence is very important
D. Look for a meeting of minds, intellectual competence is very important, and a contract is
viewed as a well-reasoned transaction

6-8
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40. There are three aspects of organizational functions that seem to be especially important in
determining an MNC's organizational culture. These 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 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
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

41. The following are the steps outlined by Numeroff and Abrahams used during mergers and
acquisitions except:

A. Establishing the purpose, goal, and focus of the merger


B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication

42. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
person.

A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile

6-9
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43. _____ culture is a project-oriented culture.

A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator

44. Trompenaars found that a(n) _____ organizational culture is common in countries such as
Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore.

A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

45. 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

46. The family culture is foreign to most in:

A. China
B. United States
C. Venezuela
D. Turkey

6-10
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47. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
task.

A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower

48. Under a(n) _____ 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

49. Eiffel Tower cultures are most commonly found in:

A. Northwestern European countries, such as Germany, Denmark, and France


B. 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

50. _____ 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

6-11
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51. A(n) _____ organizational culture is characterized by a strong emphasis on equality and
orientation to the person.

A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile

52. _____ 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

53. Change in the incubator culture is:

A. Slow and calculated


B. Almost nonexistent
C. Moderate and methodological
D. Fast and spontaneous

54. Which of the following describes the "relationships between employees" in a family corporate
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

6-12
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55. Which of the following describes the "attitude toward authority" in an Eiffel Tower corporate
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

56. Which of the following describes the "ways of thinking and learning" in a guided missile
culture?

A. Process oriented, creative, ad hoc, inspirational


B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical, and rationally efficient
D. Intuitive, holistic, lateral, and error-correcting

57. 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

58. The following deal with largest, worldwide markets:

A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations

6-13
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59. 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

60. According to Adler, the primary orientation of a global firm is:

A. Strategy
B. Price
C. Market
D. Product or service

61. 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

62. A _____ group is a group that is characterized by members who share similar backgrounds
and generally perceive, interpret, and evaluate events in similar ways.

A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

6-14
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63. A _____ group is a group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate
the possibility of investing in a venture.

A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

64. 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 South America.

A. Homogeneous
B. Token
C. Multicultural
D. Bicultural

65. 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

66. The benefits or advantages of culturally diverse groups include the following except:

A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection

6-15
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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

68. Multicultural teams are most effective when they face tasks requiring:

A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness

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

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

6-16
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Essay Questions

71. What is organizational culture and what are some of its major characteristics?

72. Discuss findings of Hofstede and Andre Laurent about the relationship between national and
organizational culture.

73. What are the four types of organizational culture identified by Fons Trompenaars? Provide a
brief description of each of these cultures.

6-17
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74. Discuss some of the potential problems associated with diversity.

75. Create a virtual team with two people from each of four countries, which you name. Include
both individualistic and collectivistic cultures. List as many positives for your team as you can
and explore the effects of each on the work of the team.

6-18
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McGraw-Hill Education.
Chapter 06 Organizational Cultures and Diversity Answer Key

True / False Questions

1. Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.

TRUE

Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.

AACSB: Analytic
Blooms: 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

2. Organizational culture is complex and cannot be defined as a set of norms regulating the
behavior of the employees of a firm.

FALSE

In its most basic form, organizational culture can be defined as the shared values and
beliefs that enable members to understand their roles in and the norms of the
organization.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: The Nature of Organizational Culture

6-19
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McGraw-Hill Education.
3. Diverse and global teams are one of the most consistent sources of competitive advantage
for any organization.

TRUE

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: Analytic
Blooms: 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

4. Hofstede's research found that the national cultural values of employees have an
insignificant impact on their organizational performance, and these values are easily
changed by the organization.

FALSE

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: Analytic
Blooms: 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: 2 Medium
Topic: Interaction between National and Organizational Cultures

6-20
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McGraw-Hill Education.
5. 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.

TRUE

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: Analytic
Blooms: 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: 3 Hard
Topic: Interaction between National and Organizational Cultures

6. For a global retail company, a focused sale campaign on Christmas gift items would be
effective in all of the company's markets.

FALSE

One main benefit of diversity is the generation of more and better ideas. Because group
members come from a variety of cultures, they often are able to create a greater number
of unique (and thus creative) solutions and recommendations.

AACSB: Analytic
Blooms: 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

6-21
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McGraw-Hill Education.
7. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.

TRUE

Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.

AACSB: Analytic
Blooms: 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: Organizational Cultures in MNCs

8. To manage a global team, international managers must take into consideration three
factors: culture, communication, and trust.

TRUE

To manage a global team, international managers must take into consideration three
factors: culture, communication, and trust.

AACSB: Analytic
Blooms: 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

9. Guided missile organizational cultures generally are made up of cooperative project


teams.

TRUE

Guided missile culture is characterized by 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: Analytic

6-22
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McGraw-Hill Education.
Blooms: Remember
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: Organizational Cultures in MNCs

10. A high collectivistic culture in found in the U.S., the U.K., and Australia.

FALSE

Kahai cites the research of Ravi Narayanaswamy, who found that managers are most
effective in using self-control and outcome control in virtual teams whose members come
from a "high individualism culture, i.e., a culture in which ties between individuals are
loose and people tend to achieve things individually and assume personal responsibility."
This culture is found in places such as the U.S., the U.K., and Australia.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

11. As firms began exporting to foreign clients, they became what Adler called "international
corporations."

TRUE

As firms begin exporting to foreign clients, however, and become what she calls
"international corporations" (Phase II in Table 6-4), they must adapt their approach and
products to those of the local market.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-23
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McGraw-Hill Education.
12. 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.

FALSE

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: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

13. An example of a token group would be a group of male German bankers who are
forecasting the economic outlook for a foreign investment.

FALSE

Token groups, in which all members but one have the same background. 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
Blooms: 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

6-24
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McGraw-Hill Education.
14. Individuals in a high collectivistic culture perform better when their values are in harmony
with their managers.

TRUE

In contrast, managers are most effective in using clan control and behavior control in
virtual teams whose members come from a "high collectivistic culture, i.e., a culture
characterized by strong interpersonal ties and by collective achievement and
responsibility."

AACSB: Analytic
Blooms: 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

15. As the diversity of a group increases, the likelihood of all members perceiving things in the
same way increases sharply.

FALSE

As the diversity of a group increases, the likelihood of all members perceiving things in the
same way decreases sharply.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-25
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McGraw-Hill Education.
16. An example of a token group is a group of three American, three German, three British and
three Japanese managers who are looking into oil exploration opportunities in Russia.

FALSE

Token groups, in which all members but one have the same background. 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
Blooms: 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

17. One main benefit of diversity is the generation of more and better ideas.

TRUE

One main benefit of diversity is the generation of more and better ideas.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

18. A disadvantage of diversity is that it often leads to groupthink, which is social conformity
and pressures on individual members of a group to conform and reach consensus.

FALSE

A second major benefit is that culturally diverse groups can prevent groupthink, which is
caused by social conformity and pressures on individual members of a group to conform
and reach consensus.

AACSB: Analytic
Blooms: Remember

6-26
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McGraw-Hill Education.
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

19. Having people with the right skills is essential to bring together a successful virtual team.

TRUE

Having people with the right skills is essential to bring together a successful virtual team.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

20. In the entry stage of group development, the focus is typically on decision making and
implementation.

FALSE

In the entry stage, the focus should be on building trust and developing team cohesion, as
we saw in The World of International Management at the opening of the chapter.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

Multiple Choice Questions

6-27
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McGraw-Hill Education.
21. To ensure good communication in global teams, managers should do all of the following
except:

A. Hold an initial meeting in which all members introduce themselves and describe their
jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to
avoid misunderstandings
D. Put the details of the project in writing

In her article, "Tips for Working in Global Teams," Melanie Doulton provides helpful
suggestions for good communication in a global team:
• When starting a project with a new team, hold an initial meeting in which all members
introduce themselves and describe the job each one is going to do.
• Hold regular meetings throughout the project to ensure everyone is "on the same page."
Follow up conference calls with written minutes to reinforce what was discussed and what
individual team members are responsible for.
• Put details of the project in writing, especially for a new team in which everyone speaks
in different accents and uses different idioms and colloquialisms.
• Communicate using the most effective technology. For example, decide when e-mail is
preferable to a phone call or instant messaging is preferable to a videoconference. In
addition, try to understand everyone's communication style. For example, for a high-
context culture such as India's, people tend to speak in the passive voice, whereas in
North America, people use the active voice.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

6-28
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McGraw-Hill Education.
22. To build trust among virtual team members, managers should:

A. Deep-six the egos and be friendly


B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments
D. Keep the door open except when on private calls

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: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

23. Implementing a set of values where employees are rewarded or punished according to
their conformity with these values is found in the ______ management approach.

A. Clan control
B. Outcome control
C. Self-control
D. Behavior control

Clan control—implement a set of values where employees are rewarded or punished


according to their conformity with these values.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

6-29
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
24. Which of the following is not an advantage of virtual teams?

A. They can reduce problems associated with personality conflicts


B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work

First, Kirkman 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."
Managers may even give fairer assessments of team members' work because managers
are compelled to rely on objective data rather than being influenced by their perceptual
biases.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Culture and Diversity in Global Teams

25. When individuals join a multinational corporation they bring their national culture, which
greatly affects all of the following except:

A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors

Regardless of whether this environment or cultural context affects the MNC, when
individuals join an MNC, not only do they bring their national culture, which greatly affects
their learned beliefs, attitudes, values, and behaviors, with them, but they also enter into
an organizational culture.

AACSB: Analytic

6-30
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: 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: 2 Medium
Topic: The Nature of Organizational Culture

26. PepsiCo, personnel are expected to be cheerful, positive, enthusiastic, and have
committed optimism. This is an example of:

A. Being influenced by the external environment


B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values

Employees of MNCs are expected to "fit in." For example, at PepsiCo, personnel are
expected to be cheerful, positive, enthusiastic, and have committed optimism; at Ford,
they are expected to show self-confidence, assertiveness, and machismo.

AACSB: Analytic
Blooms: 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

6-31
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McGraw-Hill Education.
27. Which of the following is not a possible management approach, according to Surinder
Kahai?

A. Outcome control
B. Behavior control
C. Mind control
D. Clan control

Surinder Kahai explains how a manager's approach may differ based on whether the
employees are part of an individualist or collectivist national culture. He first identifies four
different possible management approaches:
• Outcome control—measure and regulate outcomes sought
• Behavior control—specify the procedures to be followed by employees
• Clan control—implement a set of values where employees are rewarded or punished
according to their conformity with these values
• Self-control—allow individuals to set their own goals and then monitor their performance
in achieving their goals

AACSB: Analytic
Blooms: 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

6-32
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
28. _____ is a pattern of basic assumptions that are developed by a group as it learns to cope
with problems of external adaptation and internal integration and that are 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

A more detailed definition is offered by organizational cultural theorist Edgar Schein, who
defines it 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: Analytic
Blooms: 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

6-33
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McGraw-Hill Education.
29. 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

Regardless of how the term is defined, a number of important characteristics are


associated with an organization's culture. These have been summarized as:
1. Observed behavioral regularities, as typified by common language, terminology, and
rituals.
2. Norms, as reflected by things such as the amount of work to be done and the degree of
cooperation between management and employees.
3. Dominant values that the organization advocates and expects participants to share,
such as high product and service quality, low absenteeism, and high efficiency.
4. A philosophy that is set forth in the MNC's beliefs regarding how employees and
customers should be treated.
5. Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation.
6. Organizational climate, or the overall atmosphere of the enterprise, as 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: Analytic
Blooms: 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: 2 Medium
Topic: The Nature of Organizational Culture

6-34
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
30. Observed behavioral regularities are typified by the following except:

A. Common language
B. Terminology
C. Customer relations
D. Rituals

Observed behavioral regularities, as typified by common language, terminology, and


rituals.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: The Nature of Organizational Culture

31. 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 participants interact with each other

Organizational climate, or the overall atmosphere of the enterprise, as 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: Analytic
Blooms: 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: 2 Medium
Topic: The Nature of Organizational Culture

6-35
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
32. Norms are reflected by things such as:

A. Common language, terminology, and rituals


B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level
management

Norms, as reflected by things such as the amount of work to be done and the degree of
cooperation between management and employees.

AACSB: Analytic
Blooms: 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

33. 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

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 set
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: Analytic
Blooms: 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.

6-36
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McGraw-Hill Education.
Level of Difficulty: 3 Hard
Topic: Interaction between National and Organizational Cultures

34. When UpJohn Company merged with Pharamcia AB, problems emerged forcing the
partners to meet and talk about their cultural differences. This is an example which
illustrates that:

A. Organizational culture clashes often occur when partners do not fully understand the
culture of the new partner
B. Cultural differences are less pronounced among foreign employees working for the
same multinational company
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want
one culture influencing the other

When the Upjohn Company of Kalamazoo, Michigan, merged with Pharmacia AB of


Sweden, which also has operations in Italy, Americans failed to realize some of the cultural
differences between themselves and their new European partners.

AACSB: Analytic
Blooms: 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: Interaction between National and Organizational Cultures

35. Which of the following shows 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

According to Table 6-1, the identity dimension of corporate culture is to identify with and
uphold the expectations of the employing organizations.

AACSB: Analytic

6-37
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Blooms: 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: 3 Hard
Topic: Interaction between National and Organizational Cultures

36. Which of the following would be 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

According to Table 6-1, pragmatic conduct means "To put the demands and expectations
of customers first. To do what they ask."

AACSB: Analytic
Blooms: 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: 3 Hard
Topic: Interaction between National and Organizational Cultures

37. The United Kingdom shows the following characteristics regarding the corporate
dimension:

A. Administrative
B. Industrial
C. Pragmatic
D. Commercial

According to Table 6-2, the United Kingdom's corporate characteristic is commercial.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Interaction between National and Organizational Cultures

6-38
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
38. 'Dirigiste' is used to describe the _____ dimension.

A. Economics
B. Philosophical
C. Cultural
D. Structural

According to Table 6-2, ‘Dirigiste' is used to describe the Economics dimension.

AACSB: Analytic
Blooms: 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: Interaction between National and Organizational Cultures

6-39
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
39. Which of the following sets of characteristics is typical of French negotiators?

A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and
transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes
negotiations, which are characterized by an exchange of grand ideas and general
principles, social competence is very important
D. Look for a meeting of minds, intellectual competence is very important, and a contract
is viewed as a well-reasoned transaction

According to the text, the characteristics typical of French negotiators include:

• Looking for a meeting of minds.


• Intellectual competence is very important.
• Persuasion through carefully prepared and skilled rhetoric is employed.
• Strong emphasis is given to a logical presentation of one's position coupled with well-
reasoned, detailed solutions.
• A contract is viewed as a well-reasoned transaction.
• Trust emerges slowly and is based on the evaluation of perceived status and intellect.

AACSB: Analytic
Blooms: 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: 3 Hard
Topic: Interaction between National and Organizational Cultures

6-40
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
40. There are three aspects of organizational functions that seem to be especially important in
determining an MNC's organizational culture. These 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 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
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

In addition, 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: Analytic
Blooms: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's
MNCs.
Level of Difficulty: 3 Hard
Topic: Organizational Cultures in MNCs

6-41
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
41. The following are the steps outlined by Numeroff and Abrahams used during mergers and
acquisitions except:

A. Establishing the purpose, goal, and focus of the merger


B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication

Numeroff and Abrahams have suggested that there are four steps that are critical in this
process: (1) The two groups have to establish the purpose, goal, and focus of their merger.
(2) Then they have to develop mechanisms to identify the most important organizational
structures and management roles. (3) They have to determine who has authority over the
resources needed for getting things done. (4) They have to identify the expectations of all
involved parties and facilitate communication between both departments and individuals
in the structure.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

42. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
person.

A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile

Family culture is characterized by a strong emphasis on hierarchy and orientation to the


person.

AACSB: Analytic
Blooms: Remember

6-42
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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: Organizational Cultures in MNCs

43. _____ culture is a project-oriented culture.

A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator

According to Figure 6-2, the guided missile culture is a project-oriented culture.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

44. Trompenaars found that a(n) _____ organizational culture is common in countries such as
Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore.

A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

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. Trompenaars found that this organizational culture is common in countries
such as Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore.

AACSB: Analytic
Blooms: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's

6-43
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
MNCs.
Level of Difficulty: 2 Medium
Topic: Organizational Cultures in MNCs

45. 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

When it works well, family culture can catalyze and multiply the energies of the personnel
and appeal to their deepest feelings and aspirations.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

46. The family culture is foreign to most in:

A. China
B. United States
C. Venezuela
D. Turkey

This type of culture is foreign to most managers in the United States, who believe in
valuing people based on their abilities and achievements, not on their age or position in
the hierarchy.

AACSB: Analytic
Blooms: Remember
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

6-44
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Topic: Organizational Cultures in MNCs

47. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
task.

A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower

Eiffel Tower culture is characterized by strong emphasis on hierarchy and orientation to


the task.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

48. Under a(n) _____ 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

Eiffel Tower culture is characterized by 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: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

6-45
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McGraw-Hill Education.
49. Eiffel Tower cultures are most commonly found in:

A. Northwestern European countries, such as Germany, Denmark, and France


B. 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

Eiffel Tower culture most commonly is found in northwestern European countries.


Examples include Denmark, Germany, and the Netherlands.

AACSB: Analytic
Blooms: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's
MNCs.
Level of Difficulty: 3 Hard
Topic: Organizational Cultures in MNCs

50. _____ 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

Guided missile culture is characterized by strong emphasis on equality in the workplace


and orientation to the task.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

6-46
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McGraw-Hill Education.
51. A(n) _____ organizational culture is characterized by a strong emphasis on equality and
orientation to the person.

A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile

Incubator culture is the fourth major type of organizational culture that Trompenaars
identified, and it is characterized by strong emphasis on equality and personal orientation.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

52. _____ 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

Incubator cultures often create environments where participants thrive on an intense,


emotional commitment to the nature of the work.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

6-47
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McGraw-Hill Education.
53. Change in the incubator culture is:

A. Slow and calculated


B. Almost nonexistent
C. Moderate and methodological
D. Fast and spontaneous

As noted, change in the incubator culture often is fast and spontaneous.

AACSB: Analytic
Blooms: Remember
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: Organizational Cultures in MNCs

54. Which of the following describes the "relationships between employees" in a family
corporate 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

According to Table 6-3 the relationships between employees in the family corporate
culture can be described as "diffuse relationships to organic whole to which one is
bonded".

AACSB: Analytic
Blooms: 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: Organizational Cultures in MNCs

6-48
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McGraw-Hill Education.
55. Which of the following describes the "attitude toward authority" in an Eiffel Tower
corporate 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

According to Table 6-3 the attitude toward authority in an Eiffel Tower corporate culture
can be described as "status is ascribed to superior roles that are distant yet powerful".

AACSB: Analytic
Blooms: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's
MNCs.
Level of Difficulty: 3 Hard
Topic: Organizational Cultures in MNCs

56. Which of the following describes the "ways of thinking and learning" in a guided missile
culture?

A. Process oriented, creative, ad hoc, inspirational


B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical, and rationally efficient
D. Intuitive, holistic, lateral, and error-correcting

According to Table 6-3 the ways of thinking and learning in a guided missile culture can be
described as "problem centered, professional, practical, cross-disciplinary".

AACSB: Analytic
Blooms: Understand
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's
MNCs.
Level of Difficulty: 3 Hard
Topic: Organizational Cultures in MNCs

6-49
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McGraw-Hill Education.
57. 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

As firms begin exporting to foreign clients and become what Adler calls "international
corporations" (Phase II in Table 6-4), they must adapt their approach and products to
those of the local market.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

58. The following deal with largest, worldwide markets:

A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations

According to Table 6-4, the global corporations deal with the largest, worldwide markets.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

6-50
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McGraw-Hill Education.
59. 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

As companies become what Adler calls "multinational corporations" (Phase III), they often
find that price tends to dominate all other considerations, and the direct impact of culture
may lessen slightly.

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

60. According to Adler, the primary orientation of a global firm is:

A. Strategy
B. Price
C. Market
D. Product or service

According to Table 6-4, the primary orientation of a global firm is strategy.

AACSB: Analytic
Blooms: 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

6-51
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McGraw-Hill Education.
61. 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

Global firms need both an internal and an external diversity focus (again see Figure 6-4).

AACSB: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

62. A _____ group is a group that is characterized by members who share similar backgrounds
and generally perceive, interpret, and evaluate events in similar ways.

A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

Homogeneous groups, in which 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: Analytic
Blooms: 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

6-52
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McGraw-Hill Education.
63. A _____ group is a group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Taiwanese who have formed a team to
investigate the possibility of investing in a venture.

A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

Bicultural groups, in which 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: Analytic
Blooms: 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

64. 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 South America.

A. Homogeneous
B. Token
C. Multicultural
D. Bicultural

Multicultural groups, in which 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: Analytic
Blooms: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building multicultural
effectiveness at the team and the organizational levels.

6-53
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McGraw-Hill Education.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

65. 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

To unite such 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: Analytic
Blooms: 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: 3 Hard
Topic: The Nature of Organizational Culture

66. The benefits or advantages of culturally diverse groups include the following except:

A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection

While there are some potential problems to overcome when using culturally diverse groups
in today's MNCs, there are also very many benefits to be gained. In particular, there is
growing evidence that culturally diverse groups can enhance creativity, lead to better
decisions, and result in more effective and productive performance.

AACSB: Analytic

6-54
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McGraw-Hill Education.
Blooms: 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: 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

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: Analytic
Blooms: 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: 2 Medium
Topic: Managing Multiculturalism and Diversity

68. Multicultural teams are most effective when they face tasks requiring:

A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness

Multicultural teams are most effective when they face tasks requiring innovativeness.
They are far less effective when they are assigned to routine tasks.

AACSB: Analytic
Blooms: Remember

6-55
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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

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

In the entry stage, the focus should be on building trust and developing team cohesion, as
we saw in The World of International Management at the opening of the chapter.

AACSB: Analytic
Blooms: 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: 2 Medium
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

In the work stage of development, attention may be directed more toward describing and
analyzing the problem or task that has been assigned.

AACSB: Analytic
Blooms: Remember
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building multicultural
effectiveness at the team and the organizational levels.

6-56
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Level of Difficulty: 2 Medium
Topic: Managing Multiculturalism and Diversity

Essay Questions

71. What is organizational culture and what are some of its major characteristics?

Organizational culture is a set of shared values and beliefs that enable members to
understand their role and the norms of the organization. Some important characteristics of
organizational cultures include observed behavioral regularities, norms, dominant values,
philosophy, rules and organizational climate.

Feedback: Organizational culture is a set of shared values and beliefs that enable
members to understand their role and the norms of the organization. Some important
characteristics of organizational cultures include observed behavioral regularities, norms,
dominant values, philosophy, rules and organizational climate.

AACSB: Analytic
Blooms: 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

6-57
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
72. Discuss findings of Hofstede and Andre Laurent about the relationship between national
and organizational culture.

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 set
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.

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 set 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: Analytic
Blooms: 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.

6-58
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McGraw-Hill Education.
Level of Difficulty: 2 Medium
Topic: Interaction between National and Organizational Cultures

73. What are the four types of organizational culture identified by Fons Trompenaars? Provide
a brief description of each of these cultures.

The four types of organizational culture identified by Trompenaars are as follows: Family
culture, Eiffel Tower culture, Guided missile culture and Incubator culture. Family culture
is a culture characterized by a strong emphasis on hierarchy and orientation to the person;
Eiffel Tower culture is a culture characterized by strong emphasis on hierarchy and
orientation to the task; Guided missile culture is a culture characterized by a strong
emphasis on equality in the workplace and orientation to the task and Incubator culture is
a culture characterized by a strong emphasis on equality and orientation to the person.

Feedback: The four types of organizational culture identified by Trompenaars are as


follows: Family culture, Eiffel Tower culture, Guided missile culture and Incubator culture.
Family culture is a culture characterized by a strong emphasis on hierarchy and orientation
to the person; Eiffel Tower culture is a culture characterized by strong emphasis on
hierarchy and orientation to the task; Guided missile culture is a culture characterized by a
strong emphasis on equality in the workplace and orientation to the task and Incubator
culture is a culture characterized by a strong emphasis on equality and orientation to the
person.

AACSB: Analytic
Blooms: 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: Organizational Cultures in MNCs

6-59
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
74. Discuss some of the potential problems associated with diversity.

Overall, diversity may cause a lack of cohesion that results in the 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.

Feedback: Overall, diversity may cause a lack of cohesion that results in the 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: Analytic
Blooms: 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

6-60
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McGraw-Hill Education.
75. Create a virtual team with two people from each of four countries, which you name.
Include both individualistic and collectivistic cultures. List as many positives for your team
as you can and explore the effects of each on the work of the team.

Answers will vary depending on the composition of the team and the list of positives
named. Individualistic cultures include the U.S., the U.K. and other European countries,
Australia, and Canada. Collectivistic cultures include China, Japan, the Philippines,
Vietnam, and South Korea. The advantages/positives of a virtual team include reduction in
stereotyping, personality conflicts, power politics, and cliques. Potentially divisive
demographic differences may not interfere. Managers' assessments are more likely to rely
on objective date rather than perceptual biases. Work on a project may move around the
clock from one time zone to another. Complex problems may be solved quickly, thus
providing a huge competitive advantage. A diverse team may work best on
multidimensional business problems.

Feedback: Answers will vary depending on the composition of the team and the list of
positives named. Individualistic cultures include the U.S., the U.K. and other European
countries, Australia, and Canada. Collectivistic cultures include China, Japan, the
Philippines, Vietnam, and South Korea. The advantages/positives of a virtual team include
reduction in stereotyping, personality conflicts, power politics, and cliques. Potentially
divisive demographic differences may not interfere. Managers' assessments are more
likely to rely on objective date rather than perceptual biases. Work on a project may move
around the clock from one time zone to another. Complex problems may be solved quickly,
thus providing a huge competitive advantage. A diverse team may work best on
multidimensional business problems.

AACSB: Analytic
Blooms: Apply
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

6-61
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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