Test Bank For Organizational Behavior 17Th Edition Robbins Judge 013410398X 9780134103983 Full Chapter PDF

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Organizational Behavior, 17e (Robbins) Chapter 2 Diversity in Organizations
1) Kimberly Ortiz strongly believes in working for a company that promotes diversity. She
believes that such organizations are respectful of differences and allow employees more
exposure. She recently attended an interview where she was told that the company follows
policies that focus on organizational diversity. However, when she finally joined the company,
she had a strong feeling that the company's claim was not true. Which of the following, if true,
weakens Kimberly's belief that the company does not encourage diversity?
A) Eighty-five percent of the top management positions in the company are held by men.
B) She is the only African-American member in the entire workforce.
C) The workforce is not dominated by any specific ethnic or racial group.
D) The previous company she worked for made a conscious effort to employ an equal number of
men and women.
E) Her team members believe that they are treated equally in spite of differences in performance.
Answer: C
Explanation: C) The fact that the workforce is not dominated by any one ethnic or racial group
indicates that the workplace has a mix of all ethnicities and races and does not discriminate. The
fact that 85 percent of the top management positions of the company are held by men works
against the argument because it shows that the company is biased toward men. In addition, if
Kimberly is the only African-American member in the entire workforce, it shows that the
company is biased toward other racial groups. Kimberly's previously working for a company that
believes in gender equality is irrelevant to this argument. Her team members being treated
equally in spite of differences in performance represents unfair discrimination. It works against
the argument.
1
Copyright © 2017 Pearson Education, Inc.
LO: 2.1: Describe the two major forms of workplace diversity.
AACSB: Reflective thinking
Difficulty: Hard
Quest. Category: Critical Thinking
2) diversity refers to diversity in observable attributes such as race, ethnicity, sex, and
age.
A) Psychographic
B) Additive
2
C) Surface-level
D) Disjunctive
E) Conjunctive
Answer: C
Explanation: C) Surface-level diversity refers to differences in easily perceived characteristics,
such as gender, race, ethnicity, age, and disability, that do not necessarily reflect the ways people
think or feel but that may activate certain stereotypes.
AACSB: Diverse and multicultural work environments
Difficulty: Easy
Quest. Category: Concept
3
3) Which of the following is true with respect to surface-level diversity?
A) It refers to psychographic characteristics of the members of a group.
B) People with surface-level diversity will also share deep-level diversity.
C) It indicates differences of values, emotions and personality traits between people.
D) It refers to differences in easily perceived characteristics, such as gender and race.
E) It represents a person's or group's thought processes and feelings.
Answer: D
Explanation: D) Surface-level diversity refers to differences in easily perceived characteristics,
Difficulty: Easy
4) Differences in indicate surface-level diversity.

A) personality
B) values
C) style of work
D) ethnicity
E) attitudes
Answer: D
Difficulty: Easy
5) Which of the following most likely indicates surface-level similarity?

A) Tim and Jake are colleagues who take risks and are quick decision makers.
B) The employees at GenSys prefer teamwork over individual assignments.
C) Nina and Chuck are colleagues who share similar views on corporate social responsibility.
D) Jane and Sara grew up in the same town and went to school together.
E) Hannah and Nate are both introspective and tend to be slow to reach decisions.
Answer: D
Difficulty: Moderate
Quest. Category: Application
4
6) diversity refers to diversity with respect to attributes that are less easy to observe
initially but that can be inferred after more direct experience.
A) Surface-level
B) Additive
C) Demographic
D) Deep-level
E) Conjunctive
Answer: D
Explanation: D) As people get to know one another, they become less concerned about
demographic differences if they see themselves as sharing more important characteristics, such
as personality and values, that represent deep-level diversity.
7) Which of the following best represents deep-level similarity?

A) colleagues who both come from the same neighborhood in Alabama
B) employees who are college graduates with a degree in business management
C) employees who speak Spanish and share similar religious values
D) employees who seek challenges in assignments and like to work collaboratively
E) employees in their mid-thirties with 10 years' work experience in the publishing industry
Answer: D
Explanation: D) Demographics mostly reflect surface-level diversity, not thoughts and feelings,
and can lead employees to perceive one another through stereotypes and assumptions. However,
evidence has shown that as people get to know one another, they become less concerned about
Difficulty: Easy
5
8) Malcolm Industries recently hired a large number of workers for the company's new
construction factory in Colorado. During the hiring process, the management made a clear effort
to recruit physically strong individuals because the work at the factory involves manual labor.
The jobs need to be performed by individuals who have the energy and physical stamina to work
for long hours. Which of the following surface-level characteristics did the company most likely
concentrate on when selecting the new workers?
A) age
B) values
C) beliefs
D) religion
E) personality
Answer: A
Explanation: A) Surface-level diversity refers to differences in easily perceived characteristics,
AACSB: Analytical thinking
9) A difference in would indicate deep-level diversity.

A) gender
B) age
C) ethnicity
D) disability
E) values
Answer: E
Explanation: E) Deep-level diversity comprises differences in values, personality, and work
preferences that become progressively more important for determining similarity as people get to
know one another better.
Difficulty: Easy
6
10) differences between people represent deep-level diversity.
A) Race
B) Age
C) Ethnicity
D) Gender
E) Personality
Answer: E
Difficulty: Easy
11) The management at Climate Action Development needs to recruit campaign managers for its
Renewable Energy Project. They are looking for candidates who are assertive, extroverted, and
who can tackle challenges head-on. Which of the following deep-level characteristics should
they focus on to best help them recruit the right candidate for the job?
A) race
B) age
C) ethnicity
D) values
E) personality
Answer: E
12) Since 1950, the percentage of females in the U.S. workforce has risen from approximately 30
percent to 47 percent.
Answer: TRUE
Explanation: In 1950 only 29.6 percent of the U.S. workforce was female, but by 2014, women
comprised 47 percent.
Difficulty: Easy
7
13) Demographics mostly reflect deep-level rather than surface-level diversity.
Answer: FALSE
Explanation: Demographics mostly reflect surface-level diversity, not thoughts and feelings, and
can lead employees to perceive one another through stereotypes and assumptions. However,
evidence has shown that as people get to know one another, they become less concerned about
Difficulty: Easy
14) Two colleagues who bond over similarities of growing up in a French-speaking locality can
be said to have deep-level similarities rather than surface-level similarities.
Answer: FALSE
Explanation: Differences in easily perceived characteristics, such as gender, race, ethnicity, age,
and disability, that do not necessarily reflect the ways people think or feel but that may activate
certain stereotypes are known as surface-level diversity.
Difficulty: Easy
15) Differences in easily perceived characteristics, such as gender, race, ethnicity, age, and
disability, give rise to surface-level diversity. The Atalissa scandal serves as a reminder that true
fairness is not just a warm feeling toward the disabled, but the ethical responsibility of us all.
Answer: TRUE
Explanation: Differences in easily perceived characteristics, such as gender, race, ethnicity, age,
and disability, that do not necessarily reflect the ways people think or feel but that may activate
certain stereotypes are known as surface-level diversity. The exploitation of the disabled men in
the opening story is a tragic example of mistreating people for the ways in which they are
different. Not only were the men abused by their supposed caretakers, but they also suffered
workplace discrimination that kept them in debilitating roles without regard to their abilities and
needs. In this chapter, we look at how organizations should work to maximize the potential
contributions of a diverse workforce.
Difficulty: Easy
8
16) Describe some of the changes in the age 55 and over workforce.
Answer: Workers over the age of 55 are an increasingly large portion of the workforce as well,
both in the United States and globally. In the United States, the 55-and-older age group will
increase from 19.5 percent of the labor force in 2010 to 25.2 percent by 2020. These changes are
increasingly reflected in the makeup of managerial and professional jobs.
17) Explain the play of surface-level similarity and deep-level diversity in a workplace
environment with the help of an example.
Answer: Yoko and Kishi who work in a finance firm both hail from Miyagi. They speak
Japanese fluently and easily bonded over their shared culture and love for karaoke. Such
similarities refer to surface-level similarities. However, a few months later, when they had to
work on an account together, they faced several disagreements due to differences in their work
styles and personalities. Yoko was more impulsive and liked to make quick decisions. On the
other hand, Kishi liked to deliberate over decisions and implementation processes. In addition,
Yoko was optimistic about situations whereas Kishi was overly critical and skeptical about most
processes. These fundamental differences in beliefs and thought processes resulted in clashes
between them. Such differences represent deep-level diversity.
Difficulty: Hard
Quest. Category: Synthesis
18) Define surface-level diversity and deep-level diversity.

Answer: Surface-level diversity refers to differences in easily perceived characteristics, such as
gender, race, ethnicity, age, and disability, that do not necessarily reflect the ways people think
or feel but that may activate certain stereotypes. On the other hand, differences in values,
personality, and work preferences that become progressively more important for determining
similarity as people get to know one another better are categorized under deep-level diversity.
9
19) The human resources department of Orbit Bank believes in being unbiased toward all
employees and treating them fairly. They believe it is crucial that the company treat all their
employees equally. However Susan Daniels, an employee at the bank, recently filed a lawsuit
against the company, claiming that she was discriminated against. Which of the following, if
true, best justifies Susan's action?
A) The company did not give her preferential treatment even though she was from the host
country.
B) She was asked whether she was over eighteen during the first round in the interview process.
C) Her colleagues expressed their dissatisfaction over their pay and severance packages.
D) She had faced a similar situation of discrimination in her previous company.
E) She was given the same incentives as her colleagues in spite of performing better than them.
Answer: E
Explanation: E) Orbit Bank discriminated against Susan by giving her the same incentives as her
colleagues even though she performed better than them. If the company gave her preferential
treatment because she was from the host country, the company would then be discriminating
against the other employees. Asking whether she is over eighteen years of age is a question that
interviewers are allowed to ask during the interview process to ensure the candidate is legally
allowed to gain employment. Whether Susan faced a similar situation in the previous company is
irrelevant to the argument. Susan's colleagues stating their unhappiness about their pay and
severance package is not related to Susan filing a lawsuit against the company for discriminating
against her.
LO: 2.2: Demonstrate how workplace discrimination undermines organizational effectiveness.
AACSB: Reflective thinking
Difficulty: Hard
Quest. Category: Critical Thinking
20) In a workplace, involves overt threats or bullying directed at members of specific

groups of employees.
A) intimidation
B) risk aversion
C) inequity aversion
D) optimism bias
E) ambiguity aversion
Answer: A
Explanation: A) In a workplace, intimidation involves overt threats or bullying directed at
members of specific groups of employees.
AACSB: Ethical understanding and reasoning
Difficulty: Easy
10
21) April's colleague Nathan has consistently pestered her to go out on a date with him. Though
she has refused his offer several times, he keeps persisting. She found an envelope on her desk
from Nathan with inappropriate pictures and cartoons, which left her infuriated. She now intends
to go discuss the matter with the human resource department of her company. Which of the
following forms of discrimination is April most likely to cite?
A) sexual harassment
B) cyberstalking
C) mobbing
D) exclusion
E) electronic harassment
Answer: A
Explanation: A) Sexual harassment refers to unwanted sexual advances and other verbal or
physical conduct of a sexual nature that create a hostile or offensive work environment.
22) Which of the following refers to a kind of discrimination that refers to overt threats or
bullying directed at members of specific groups of employees?
A) intimidation
B) impact bias
C) inequity aversion
D) framing effect
E) benefaction
Answer: A
Explanation: A) Intimidation is a kind of discrimination which refers to overt threats or bullying
directed at members of specific groups of employees.
Difficulty: Easy
11
23) Which of the following is the best example of the use of intimidation?
A) Anya's boss, Kira, sets difficult targets and hints that Anya may lose her job if she doesn't
meet them.
B) Jill's manager, Steve, rarely considers her business ideas, but he consistently praises the
contributions of Jill's colleague, Emily.
C) Natasha's colleagues often make jokes using cultural or ethnic stereotypes.
D) Although Kathleen had spent a longer time in the organization, her colleague Gary was
promoted to a management position.
E) Jane's colleagues recently forgot to invite her to a team lunch, a fact that caused her great
distress.
Answer: A
24) Hazel Samuels has been working at her company for the past two years and consistently gets
yelled at by her manager even when she is not at fault. He often makes derogatory references to
her ethnicity. In addition, during team meetings, she is his target for practical jokes and nasty
pranks. She is extremely upset and decides not to be subjected to such treatment any longer.
Which of the following kinds of discrimination is she most likely to report to the human resource
department in such a situation?
A) intimidation
B) sexual harassment
C) hazing
D) mobbing
E) inclivity
Answer: A
12
25) Which of the following is the best example of mockery as a tool of discriminatory treatment
in organizations?
A) Rifka's supervisor often stereotypes Rifka because of her ethnic heritage and makes jokes
about her ethnicity.
B) Because she is considerably older than the rest of her team, Hannah's colleagues often do not
invite her to team lunches or informal team get-togethers.
C) Joan's boss sets impossible targets and reprimands her in front of her colleagues if she fails to
complete them on time.
D) Sheena is the only African-American employee in her department and often feels left out of
office jokes and gossip.
E) Most of Leanne's co-workers are male and share inappropriate jokes at the office.
Answer: A
Explanation: A) Mockery often refers to jokes or jokes about negative stereotypes.
26) An employee who may be made fun of because he is an Arab-American is being subjected to
, a kind of discrimination in work environments.
A) mockery and insults
B) vandalism
C) cyberstalking
D) exclusion
E) inclivity
Answer: A
Explanation: A) Mockery and insults often refer to jokes or negative stereotypes. For instance,
Arab-Americans that may be asked whether they were carrying bombs or were members of
terrorist organizations is an example of mockery and insults.
Difficulty: Easy
13
27) Stacy Hanes is an African-American woman who has recently taken her first job and does
not seem to like the work environment at all. Her colleagues put down her ideas at team meetings
and refer to them as "stupid." In addition, they make fun of her race and often ask her if she is
educated enough to work for the company. Which of the following kinds of discrimination is
Hanes most likely subject to?
A) mockery
B) sexual harassment
C) stalking
D) deception
E) inclivity
Answer: A
Explanation: A) Jokes or negative stereotypes, which are sometimes the result of jokes taken too
far, refer to mockery and insults.
28) , which may occur intentionally or unintentionally, refers to keeping certain people
in a work place away from job opportunities, social events, discussions, or informal mentoring.
A) Exclusion
B) Mockery
C) Stalking
D) Ragging
E) Bullying
Answer: A
Explanation: A) Exclusion of certain people from job opportunities, social events, discussions,
or informal mentoring may occur unintentionally. For instance, many women in finance claim
they are assigned to marginal job roles or are given light workloads that do not lead to
promotion.
Difficulty: Easy
14
29) Jill Ivey has been working as a sales executive at Orbit Bank for the last two years. However,
she has noticed that she is often not given an opportunity to attend training programs that her
team members attend every quarter. She also is disappointed about the fact that she never gets to
handle corporate clients, which provides better chances of a promotion. Which of the following
kinds of discrimination is she most likely to have been subjected to?
A) exclusion
B) mockery
C) gaslighting
D) destabilization
E) mobbing
Answer: A
Explanation: A) Exclusion of certain people from job opportunities, social events, discussions,
or informal mentoring may occur unintentionally. For instance, many women in finance claim
they are assigned to marginal job roles or are given light workloads that do not lead to
promotion.
30) Women being assigned marginal job roles that do not lead to promotion is an example of the
form of discrimination.
A) hazing
B) gaslighting
C) coercion
D) exclusion
E) battery
Answer: D
Explanation: D) The exclusion of certain people from job opportunities, social events,
discussions, or informal mentoring may occur unintentionally. For instance, many women in
finance claim they are assigned to marginal job roles or are given light workloads that do not
lead to promotion.
Difficulty: Easy
15
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In the heart of Montreal’s Wall Street is the huge Church of Notre
Dame. It seats twelve thousand people, and in its tower is the largest
bell in America, weighing about twenty-nine thousand pounds. That
dome farther over marks the location of the Cathedral of St. James.
It is a replica, on a reduced scale, of St. Peter’s at Rome. It seats
several thousand worshippers; nevertheless, when I went there last
Sunday morning hundreds were standing, and within fifteen minutes
after one service was concluded it was again filled to capacity for the
next.
Downtown Montreal is built largely of limestone. It has a massive
look, but skyscrapers are barred by a city ordinance. Erection of
modern steel and concrete office buildings is now under way, and
they stand out conspicuously against the background of more old-
fashioned structures. Big as it is and important commercially,
Montreal seems a city without any Main Street. St. Catherine Street
has the largest retail stores and the “bright lights” of theatres and
cafés, but I have seen more impressive thoroughfares in much
smaller places at home. This is essentially a French city, though less
so than Quebec. The French do not naturally incline toward “big
business.” They seem content with small shops, which since the
days of their grandfathers have grown in numbers rather than in size.
They are by nature conservative, and though they make shrewd
business managers, they care little for innovations in either public or
private affairs.
I have visited the biggest market, the Bonsecours. It is quite as
French as those I have seen in southern France. This market takes
up a wide street running from the heart of Montreal down to the
wharves. The street is the overflow of the market proper, which fills a
church-like building covering an acre of ground. When I arrived the
open space was crowded with French farmers, who in the early
morning had driven their cars and light motor trucks loaded down
with fruits and vegetables into the city. Fully half of the wagons were
in charge of women, who looked much like those in the Halles
Central in Paris. As I pressed my way through the throng many of
them called out to me in French and some thrust their wares into my
face and urged me to buy.
The mayor of Montreal is always a French Canadian, and he is
usually reëlected for several terms. I talked with His Honour and
found him a most pleasant gentleman. Discussing his city, he said:
In the French market one feels he is indeed in a
foreign land, and among a people of alien tongue.
When he buys, however, he discovers that the
farmers understand perfectly when money does the
talking.
Kipling did not endear himself to Montreal when
he called Canada “Our Lady of the Snows,” yet the
people are really proud of their facilities for winter
sports, which include a toboggan slide down Mt.
Royal.
“Montreal is thriving as never before. Our population is rapidly
increasing and we expect soon to have more than a million. We have
taken in some of the suburbs, as your great cities have done, and
our increasing opportunities are constantly attracting new people.
“I believe we are one of the most cosmopolitan communities on
the continent,” continued the Mayor. “About seventy per cent. of us
are French, and a large part of the balance are English Canadians.
We have also Americans, Germans, Belgians, Italians, and Chinese,
besides large numbers of Irish and Scotch, and some of the peoples
of southeastern Europe. We are the Atlantic gate to Canada, so that
a large portion of our immigrants pass through here on their way
west. Many of them go no farther, as they find employment in our
varied industries.
“It costs us more than twenty million dollars a year to run
Montreal, but we feel that we can afford it. The value of our taxable
buildings amounts to nearly seven hundred and fifty millions, and is
increasing at the rate of fifteen millions a year. We have more than
one million acres of public parks, or in excess of an acre for every
man, woman, and child in the city.”
Montreal is one of the great sport centres of Canada. In the
warm months, the people play golf, baseball, football, and lacrosse.
The latter is a most exciting game, borrowed from the Indians, with
more thrills and rough play than our college football. It is a cross
between hockey and basketball. A light ball is tossed from player to
player by means of a little net on the end of a long curved stick, the
object of each side being to get the ball into the opponents’ goal. In
the game I saw, the players were often hit on the head and
shoulders, and before the afternoon was over there had been a good
deal of bloodshed from minor injuries. I was told, however, that this
match was exceptionally rough.
In the winter, hockey is the great game of Canada. Every large
city has its hockey rink, and, where there are many Scotch, curling
rinks as well. In curling, great round soapstones are slid across a
designated space on the ice toward the opponents, who stand guard
with brooms. By sweeping the ice in front of the approaching stone,
they try to veer it out of the course intended by the player who
started it toward their goal.
As far as the masses of the people are concerned, skiing,
snowshoeing, and coasting are the chief winter sports, and in them
nearly everybody takes part. In Montreal, toboggan slides are built
on the sides of Mount Royal, and its slopes are covered with young
men and women on snowshoes and skis.
Montreal used to build an ice palace every winter. Then the
business men feared the city was acquiring an antarctic reputation
that would discourage visitors. Consequently, organized exploitation
of winter sports fell off for a time, but this fall a fund of thirty thousand
dollars is being subscribed to finance them on a large scale.
CHAPTER X
CANADA’S BIG BANKS
There are more than eight thousand national banks in the United
States, but Canada has only sixteen. While new ones are organized
in our country every month, the number in Canada tends constantly
to grow less, and to-day is not half what it was twenty years ago. The
banking system of the Dominion is patterned somewhat after the
Scotch, and was worked out largely by men of that shrewd, hard-
headed race. The people think it suits their conditions better than
any other. Certainly it is true that while Canada has had its ups and
downs, the people have suffered far less than we from bank failures
and panics.
One might think that with all the banking business of Canada
monopolized by only sixteen institutions, they might make fabulous
profits. However, such is not the case. I have before me the current
monthly statement which the government publishes regarding the
condition and operation of each bank. This shows that all are making
money, but their dividends range from six to sixteen per cent., and
the Bank of Nova Scotia is the only one that paid the highest rate.
Nine of the banks paid twelve per cent. on their capital stock last
year, while the shareholders of five got less than ten per cent.
In the United States a handful of business men can start a bank
on a few thousand dollars. Here it is not so easy a matter. Canadian
law requires a minimum capital of five hundred thousand dollars, half
of which must be paid in, before a bank can be chartered, and there
are other conditions to be met that make the establishment of a new
bank a big undertaking. The smallest bank in Canada, at Weyburn,
Saskatchewan, is the only one with a capital of less than one million
dollars, while the largest, the Bank of Montreal, has paid-up stock
amounting to twenty-seven and one quarter millions. The total
combined capital of all the banks is one hundred and twenty-three
millions.
The great banks extend their service throughout the Dominion by
means of branches. These now number nearly five thousand, and
new ones are being constantly added. The branch plan is the most
striking difference between Canada’s banking system and ours,
which prohibits the establishment of branches except within a bank’s
home city, and, under certain regulations, in foreign countries. The
larger Canadian banks are represented by their own branches in
every city, from coast to coast, while the Bank of Montreal alone has
more than six hundred agencies. Nearly all the banks have their
head offices in Eastern Canada. Six of them are located in the
province of Quebec, seven in Ontario, and one each in Nova Scotia,
Manitoba, and Saskatchewan. Three of the banks in Quebec are
controlled by the French Canadians. Their combined capital is just
under nine million dollars, or not quite half that of the Royal Bank of
Canada, the second largest in the Dominion.
An official of the Canadian Bankers’ Association has explained to
me some of the advantages of this system. He said:
When the discoverers sailed up the St. Lawrence
to what is now Montreal they thought these rapids just
above the city blocked their passage to China, and so
named them “La Chine.”
Montreal’s rise as a great port began a century
ago when the Lachine Canal was built around the
rapids, and gave the city a water passage to the
upper St. Lawrence and the Great Lakes.
Many homes have the Rideau Canal and its fringe
of park at their front door. Built originally for military
reasons, the canal now makes possible a boat trip
through the Rideau Lakes to the St. Lawrence.
“Our plan of branch banks is based partly on the principle that
there is more strength in a bundle of fagots joined together than
there is in the same number of sticks taken separately. Poor
management or bad times, under your system, may bring disaster to
a single bank, whereas with us losses in any branch would be easily
absorbed in a great volume of business covering the whole country,
and the shock hardly felt at all. Under our system it is a simple
matter for a bank to concentrate its funds in the districts where they
are most needed, and money flows easily into the channels where
there is the greatest demand. This is of the utmost importance to
Canada, for we have limited capital, and therefore must keep it liquid
at all times.
“Canada is still a young country, not yet done with pioneering,
and its banks must lend a hand in promoting its development. When
a branch bank is opened in a tent or shack in a new mining camp,
the people know that the manager is there to give them service, and
that he represents a strong institution with millions in assets. A
remote fishing village or new paper-mill town is thus provided with
banking facilities quite as effective as those of Montreal or Toronto.
The difference in rates of interest charged is never more than two
per cent., no matter how remote from the money centre a branch
bank may be. The only reason it is ever higher is that where the
operations of a branch bank are small, the overhead expenses are
proportionately greater, and must be compensated for by the bank’s
customers. In recent years our wheat farmers of southern
Saskatchewan have been getting money cheaper than have the
farmers of your North Dakota, just over the border. The banks
represented in our three prairie provinces frequently have more
money on loan in that territory than the sum total of the deposits in
all their branches in the same area.”
The banks of Canada all obtain their charters from the Dominion
government, and their operations are strictly defined by law. This
law, known as the Canadian Banking Act, dates from 1870, and it
automatically comes up in Parliament for revision every ten years.
Under the act, the banks are permitted to issue paper money, which
ordinarily must not exceed the amount of their capital. Shareholders
are made liable for the redemption of bank notes up to the amount of
twice the value of the capital stock. In addition, each bank is required
to keep on deposit with the government a sum equal to five per cent.
of its note circulation. This goes into what is called the redemption
fund, which was created to make it absolutely certain that in case of
the failure of a bank, all its notes will be redeemed at face value.
During the period from September to February, when the crops are
moving to market, the banks may issue notes to fifteen per cent. in
excess of their capital, but must pay a tax of five per cent. on all such
extra circulation.
Canada’s banks are not audited by government examiners, as
with us, but each bank must submit a monthly statement of its
condition to the Minister of Finance. These reports are more detailed
than our bank statements and are regularly published by the
government. They show, among other things, the amount each bank
has loaned to members of its board of directors, or to firms in which
they are partners. The banks are not allowed to lend money on real
estate; this service is confined to loan and mortgage companies.
Nearly all the chartered banks of Canada conduct savings banks and
many of them also operate trust companies. The activities of the
latter are almost exclusively confined to acting as trustees and as
administrators of estates.
In the relations between the banks and the government, the
Canadian Bankers’ Association plays an important part. It has a
semi-official status, in that it was incorporated by special act of
Parliament, and is recognized as the joint representative of all the
chartered banks. It establishes clearing houses, supervises the
issues of bank notes, and manages the central gold reserves. The
chief executive officers of the Association are frequently consulted
by the government on financial questions.
During my stay in Montreal I had an interview with Sir Frederick
Williams-Taylor, president of the Association and general manager of
the Bank of Montreal, the oldest and largest financial institution in
Canada. In the Dominion, the chief executive of a bank is called the
manager. While the president occupies an important position as
chairman of the board of directors, he has not the same relation to
the daily transaction of business as is usually the case with us.
Canada’s banks are likewise distinguished for the long service of the
men in charge of their affairs. At the Bank of Montreal, for example,
the president and manager have put in, between them, nearly one
hundred years with the one institution. In all the banks, as a rule, the
men in authority have risen from the ranks to their present positions.
The Bank of Montreal is one of the great banks of the world. It
was founded more than one hundred years ago, about the time that
James Monroe was beginning his first term as President of the
United States. In those days, there was still fresh in the minds of the
Canadians knowledge of disastrous financial methods that had been
common in both the American colonies and Canada. In the time of
the French, for example, one of the governors, not receiving funds
expected from home, cut playing cards into small pieces, and wrote
thereon the government’s promises to pay. These he distributed
among his unpaid soldiers, and “card money,” as it was called,
continued to circulate for a great many years. Our own colony of
Massachusetts, learning of this easy method of “making” money,
produced a similar currency which later led to the phrase “not worth
a continental.” Even after banks were established in Canada, their
notes had different values in various parts of the country.
The home of the Bank of Montreal in St. James Street faces the
old Place d’Armes, a large square where formerly stood the
stockade built for protection against the Indians. Now it is the centre
of the financial district of Montreal, and, indeed, of all Canada. Of the
total capital of Canada’s banks, considerably more than half is held
by institutions having their main offices in this city.
When I went to call upon Sir Frederick, I passed through a
doorway supported by huge Corinthian pillars. Once inside, I found a
banking room larger than any I have ever seen in the United States.
Its great size, and the rows of counters and wicket windows
reminded me somewhat of the New York railroad stations and their
batteries of ticket offices. The roof, more than one hundred feet
above the floor, is supported by columns of black granite from
Vermont, each as big around as a flour barrel and as bright as
polished jet. The building has not the shine and new look of some of
our great banks, but everything about it is stately, and the servants
are as imposing as those of the Bank of England. A sleek, black-
haired attendant, who looked like Jerry Cruncher, wearing a blue suit
trimmed with red and a bright red vest with brass buttons, ushered
me into Sir Frederick’s office.
In speaking about Canadian banking, Sir Frederick said:
“By means of our branches in all parts of Canada we have our
hand on the pulse of the whole country. Every one of the great banks
receives constantly from its own representatives accurate
information of the state of business in his locality. We do not have to
depend upon friendly correspondents or outside agencies, but know
promptly and at first hand just what is going on. In this way we can
always anticipate the needs of a particular section, and act
accordingly. We can see the signs of any trouble ahead, and adopt
measures to prevent disaster. The managers of our branches are
responsible directly to us, and are therefore not likely to be
influenced so much by purely local considerations as might be the
case under a different system. On the other hand, it is our practice to
include in our board of directors men who reside in western and
central Canada, and are therefore in close touch with conditions in
those sections.”
“With such sources of information,” I said, “you should be in a
position to judge of the condition of Canada as a whole. I wish you
would tell me, Sir Frederick, just how you see her situation?”
“Canada is suffering from three great disadvantages,” he replied.
“I don’t wish to emphasize our troubles, but there is no country
without them, and we have our share, just as does the United States.
Our handicaps are the high cost of living, high taxation, and loss of
population.”
“But is Canada losing population?” I asked.
“I have mentioned these difficulties in the inverse order of their
importance,” said Sir Frederick. “Our loss of population is not only
the most serious problem, but it grows out of the other two. Here we
are, a nation of some eight million people. To the south of us is your
country, with a population twelve times as great. You are the richest
country in the world to-day. Canada occupies the north end of the
continent, and while she is larger than the United States in area, and
can match you in some of her natural resources, there are some
things that we lack. For example, we cannot grow cotton. We have
no hard coal. Most of our soft coal lies on our coasts, while a great
part of our industry and population is located in the eastern and
central sections of the country. This year, I believe, our bill for coal
from the United States will be something like one hundred and
twenty-five million dollars, or nearly thirteen dollars per capita of our
total population.
“We used to be a country of low costs and low taxes,” continued
Sir Frederick. “Now we are nearly up to you with regard to both the
cost of living and high taxes. On the other hand, you have created a
partial vacuum in the United States by your restrictions on
immigration. These do not, however, apply to Canadians. Just as
great bodies exercise a certain power of attraction upon smaller
ones, so your one hundred and ten millions draw upon our eight
millions. You are admitting fewer immigrants than your country could
easily absorb, with the result that you afford opportunities to our
people to better their condition. Strange as it may seem to you, there
are many of us who prefer, no matter what happens, to live our lives
under the British flag, but there are also others to whom this does
not seem so important. It is they who drift over to you.”
While Sir Frederick thus outlined the problems confronting his
country, his further remarks made it quite clear that he firmly believes
in her future and is proud that he has a part in her development.
In talking with business men, I find that they consider that
Canada has been especially fortunate in the extension of her banks
abroad. The Royal Bank of Canada and others have branches in the
United States and Great Britain, as well as in France and Spain. The
branch banks of Canada furnish the entire banking system of
Newfoundland, and I have myself done business with their branches
in the course of my travels in South and Central America, the British
and other European West Indies, Cuba, and Mexico. Canada’s
branch banks have gone to those countries with which the Dominion
has the largest foreign trade, and are an important factor in
promoting Canadian business abroad. They furnish Canadian
exporters with first hand data on markets, tariffs, and credits in
foreign countries. They help to finance exports and also aid the
importers to secure materials they need from other lands. An
American banking expert has made the statement that with the
exception of Great Britain, Canada has the best banking facilities for
foreign trade of any country in the world.
I find that the Dominion is gaining in financial strength. In the last
ten years the assets of her banks have increased seventy per cent.,
and the bank deposits have practically doubled. At the same time the
value of her production, both in agriculture and industry, has
mounted far above what it was before the World War. There is much
evidence to show that the people themselves are better off than they
used to be. For one thing, they have nearly two thousand million
dollars on deposit in the chartered banks, an average of one
hundred and eighty-eight dollars per person. They are buying more
life insurance than ever before, the total value of the policies now in
force in Canada amounting to over three thousand five hundred
millions of dollars. If they continue to increase at the present rate, by
1947 the lives of Canadians will be insured to the amount of more
than twelve thousand millions. This insurance represents a sum that
will be sufficient to buy three million homes, to keep in comfort
sixteen hundred and eighty thousand people, or to educate about
four million Canadian children.
“From my window overlooking the wooded ravine
through which the Rideau Canal descends in locks to
the Ottawa River. I can see the towers of the
university-like quadrangle of government buildings.”
The library of Parliament stands on the high bank
of the Ottawa River, a bit of old England in the
Canadian capital. It survived the fire that destroyed
the House and Senate chambers.
CHAPTER XI
OTTAWA—THE CAPITAL OF THE DOMINION
I have come to Ottawa to get a “close-up” of the government of

Canada, and to see for myself if the city deserves its name, the
“Washington of the North.” Ottawa gives one an impression of vigour,
youth, and energy. It seems up to the minute, and not hanging on the
coat-tails of the past like Quebec. It has some of the English flavour
of Halifax, but is more modern. Like Washington, it is built on plans
that, as they are developed, will emphasize its natural beauties.
Ottawa is becoming a centre of intellectual life as well as of
political activity. The city is attracting people of wealth and leisure
who find it a pleasant place of residence for all or a part of the year.
The government service includes men and women of unusual
attainments, who are less likely to lose their places on account of
politics than those holding similar offices in the United States.
Ottawa is also becoming the headquarters for scientific and other
organizations, and is developing rapidly as an educational centre.
Washington has the Potomac, but this capital is on the banks of
two rivers, the Ottawa and the Rideau. Its site was chosen only after
a bitter struggle between rival cities. Quebec, Montreal, Kingston,
and Toronto each wanted the honour, but in 1859 all gracefully
accepted the arbitration of Queen Victoria, who chose Ottawa. It was
then a town of less than ten thousand people. It now has more than
one hundred thousand. It lies in the province of Ontario, but is
separated from Quebec only by the Ottawa River.
In contrast with our national capital, Ottawa is an important city
in its own right aside from the presence of the Dominion government.
It is one of the chief lumber centres of all Canada, and besides saw

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Organizational Behavior, 17e (Robbins) Chapter 2 Diversity in Organizations

4) Differences in indicate surface-level diversity.

5) Which of the following most likely indicates surface-level similarity?

7) Which of the following best represents deep-level similarity?

9) A difference in would indicate deep-level diversity.

18) Define surface-level diversity and deep-level diversity.

20) In a workplace, involves overt threats or bullying directed at members of specific

I have come to Ottawa to get a “close-up” of the government of

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