Organizational Culture Answer Key Part 2

28) What are the six primary characteristics that capture the essence of an organization's culture? Answer: The six primary characteristics that capture the essence of an organization's culture are: 1. Adaptability. The degree to which employees are encouraged to be innovative and flexible as well as to take risks and experiment. 2. Detail orientation. The degree to which employees are expected to exhibit precision, analysis, and attention to detail. 3. Results/outcome orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them. 4. People/customer orientation. The degree to which management decisions consider the effect of outcomes on people within and outside the organization. 5. Collaboration/team orientation. The degree to which work activities are organized around teams rather than individuals. 6. Integrity. The degree to which people exhibit integrity and high ethical standards in their work. 29) Compare and contrast dominant culture and subculture. Answer: Organizational culture represents a common perception the organization's members hold. A dominant culture expresses the core values shared by a majority of the organization's members. Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences faced by groups of members in the same department or location. Subcultures include the core values of the dominant culture plus additional values unique to members of the respective department. If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful. It is the "shared meaning" aspect of culture that makes it such a potent device for guiding and shaping behavior. 30) Describe the characteristics of a strong culture. Answer: A strong culture should more directly affect organizational outcomes because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, meaning, and organizational commitment. For example, with high cultural consensus and intensity surrounding the adaptability dimension of culture, organizations in one study experienced gains in net income, revenue, and operating cash flow. A study of nearly 90,000 employees from 137 organizations found that culture strength or consistency was related to numerous financial outcomes when there was a strong sense of mission and high employee involvement. 31) "Formalization and culture are two different roads to a common destination." Explain the statement. Answer: High formalization creates predictability, orderliness, and consistency. A strong culture achieves the same end without the need for written documentation. Therefore, we should view formalization and culture as two different roads to a common destination. The stronger an organization's culture, the less management need be concerned with developing formal rules and regulations to guide employee behavior. Those guides will be internalized in employees when they accept the organization's culture. 32) Discuss the difference between the clan, the adhocracy, the market, and the hierarchy. Answer: A common culture framework groups organizations into one of four types, each with has its own assumptions, beliefs, values, artifacts, and even criteria for effectiveness: 1. "The Clan." A culture based on human affiliation. Employees value attachment, collaboration, trust, and support. 2. "The Adhocracy." A culture based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy. 3. "The Market." A culture based on achievement. Employees value communication, competence, and competition. 4. "The Hierarchy." A culture based on stability. Employees value communication, formalization, and routine. 33) Which of the following statements is true regarding the functions of culture in an organization? A) It hinders the generation of commitment to something larger than individual self-interest among employees. B) It conveys a sense of identity for organization members. C) It reduces the stability of the organizational system. D) It reduces distinctions between one organization and others. E) It does not affect employees' attitudes and behavior. Answer: B Explanation: Culture facilitates the generation of commitment to something larger than individual self-interest. It conveys a sense of identity for organization members. Culture has a boundary-defining role: it creates distinctions between one organization and others. It is a sense-making and control mechanism that guides and shapes employees' attitudes and behavior. 34) When formal authority and control systems are reduced, the ________ provided by a strong culture ensure(s) that everyone is pointed in the same direction. A) rules and regulations B) shared meaning C) rituals D) socialization E) rigid hierarchy Answer: B Explanation: Today's trend toward decentralized organizations makes culture more important than ever. When formal authority and control systems are reduced, culture's shared meaning points everyone in the same direction. 35) A(n) ________ climate requires managers and employees to use an external, standardized moral compass such as a professional code of conduct for norms. A) independence B) rules C) law and code D) caring E) instrumental Answer: C Explanation: A law and code climate requires managers and employees to use an external, standardized moral compass such as a professional code of conduct for norms. 36) Which of the following statements is true regarding the establishment of the organizational culture and its effects on the organization? A) Today's trend toward decentralized organizations makes it is easier to establish a strong culture. B) In a virtual organization, a strong culture can be established quickly and easily. C) Employees organized in teams always show greater allegiance to the values of the organization as a whole than to their team and its values. D) Culture acts as a control mechanism and guides the behavior of employees. E) Cultures reduce the stability of the social system in an organization. Answer: D Explanation: Today's trend toward decentralized organization makes establishing a strong culture more difficult. In virtual organizations, the lack of frequent face-to-face contact makes establishing a common set of norms very difficult. When formal authority and control systems are reduced, culture's shared meaning points everyone in the same direction. However, employees organized in teams may show greater allegiance to their team and its values than to the values of the organization as a whole. Culture enhances the stability of the social system and acts as a control mechanism that guides and shapes employees' attitudes and behavior. 37) ________ refers to the shared perceptions organizational members have about their organization and work environment. A) Organizational climate B) Institutionalization C) Microcosm D) Groupthink E) Organizational apprehension Answer: A Explanation: Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level. 38) Grace works for a pet store where everyone is committed to the happiness of the animals. Often employees, bosses, and hourly workers alike come into the store "off the clock" and spend time training the animals. Everyone loves the store, the animals, and their jobs. This attitude of her co-workers inspires Grace to do her best. Based on this information, we can say that Grace is experiencing the effects of ________. A) decentralization B) organizational climate C) high departmentalization D) low formalization E) high work specialization Answer: B Explanation: Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level. 39) ________ organizations often don't go out of business even if the original goals are no longer relevant. A) Virtual B) Matrix C) Independent D) Institutionalized E) Centralized Answer: D Explanation: Institutionalized organizations often don't go out of business even if the original goals are no longer relevant. 40) Culture is most likely to be a liability when ________. A) the employees of the organization are highly skilled B) the organization's environment is dynamic C) the organization's management is highly efficient D) the organization is highly centralized E) the organization scores low on the degree of formalization Answer: B Explanation: Culture is a liability when the shared values are not in agreement with those that further the organization's effectiveness. This is most likely when an organization's environment is dynamic and is undergoing rapid change. In this case, its entrenched culture may no longer be appropriate. 41) Rainbow Corp. hires a new secretary, Polonova, who differs from the vast majority of the company's employees in terms of her ethnicity. The company has a collectivist culture with a culturally diverse workforce and several policies to support the minorities. Yet, after a few weeks, she quits the company. Which of the following, if true, helps explain why she quit? A) Rainbow Corp. recently had a huge turnover and plans to expand its market. B) All secretaries, regardless of their gender, are paid equal salaries at Rainbow Corp. C) Polonova is gregarious and comfortable in changing contexts and ambiguous situations. D) Polonova has a strong sense of personal ambition and independence. E) Polonova is more likely to conform to others' ideas and opinions rather than come up with her own. Answer: D Explanation: Hiring new employees who differ from the majority in race, age, gender, disability, or other characteristics creates a paradox: management wants to demonstrate support for the differences these employees bring to the workplace, but newcomers who wish to fit in must accept the organization's core cultural values. In this case, Polonova couldn't accept the organization's collectivist culture due to her individualistic nature and hence quit. All other options are either irrelevant or add to the seeming paradox. If all secretaries were paid equal salaries, then it offers no grounds for Polonova to quit. 42) Which of the following is not one of the five most prevalent climate categories making up the ethical dimensions of organization culture? A) instrumental B) caring C) dependence D) law and code E) rules Answer: C Explanation: Researchers have developed the ethical climate theory and the ethical climate index to categorize and measure the ethical dimensions of organizational cultures. Of the nine identified climate categories, five are found to be most prevalent in organizations: instrumental, caring, independence, law and code, and rules. Each explains the general mindset, expectations, and values of the managers and employees in relationship to their organization. 43) In which of the following climates do managers operate under the expectation that their decisions will positively affect the greatest number of stakeholders? A) caring B) instrumental C) law and code D) rules E) independence Answer: A Explanation: In a caring climate, managers may operate under the expectation that their decisions will positively affect the greatest number of stakeholders (employees, customers, suppliers) possible. 44) Sustainability refers to practices that can be maintained over very long periods of time because the tools or structure that support the practices is not damaged in the process. Answer: TRUE Explanation: Sustainability refers to practices that can be maintained over very long periods of time because the tools or structure that support the practices is not damaged in the process. Social sustainability practices address the ways social systems are affected by an organization's actions over time, and in turn, how changing social systems may affect the organization. 45) Instrumental climates are positively associated with employee job satisfaction and organizational commitment. Answer: FALSE Explanation: Instrumental climates are negatively associated with employee job satisfaction and organizational commitment. 46) Systematic reviews of the research literature show a generally positive relationship between sustainability and financial performance. Answer: TRUE Explanation: Systematic reviews of the research literature show a generally positive relationship between sustainability and financial performance. However, there is often a strong moral and ethical component that shapes organizational culture and must be a genuine value. 47) To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice. Answer: TRUE Explanation: To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice. In other words, there needs to be a sustainable system for creating sustainability! In one workplace study, a company seeking to reduce energy consumption found that soliciting group feedback reduced energy use significantly more than simply issuing materials about the importance of conservation. 48) Explain the concept of organizational climate. Answer: Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level. When everyone has the same general feelings about what's important or how well things are working, the effect of these attitudes will be more than the sum of the individual parts. One meta-analysis found that across dozens of different samples, psychological climate was strongly related to individuals' level of job satisfaction, involvement, commitment, and motivation. A positive overall workplace climate has been linked to higher customer satisfaction and financial performance as well. 49) Describe the various situations under which culture acts as a liability. Answer: The various situations under which culture acts as a liability are: a) Institutionalization: When an organization undergoes institutionalization and becomes institutionalized–that is, it is valued for itself and not for the goods or services it produces–it takes on a life of its own, apart from its founders or members. It doesn't go out of business even if its original goals are no longer relevant. Acceptable modes of behavior become largely selfevident to members, and although this isn't entirely negative, it does mean behaviors and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization's culture an end in itself. b) Barriers to change: Culture is a liability when the shared values are not in agreement with those that further the organization's effectiveness. This is most likely when an organization's environment is undergoing rapid change and its entrenched culture may no longer be appropriate. c) Barriers to diversity: By limiting the range of acceptable values and styles, strong cultures put considerable pressure on employees to conform. d) Barriers to acquisitions and mergers: Historically, when management looked at acquisition or merger decisions, the key factors were financial advantage and product synergy. In recent years, cultural compatibility has become the primary concern. 50) Describe and explain the five most prevalent climate categories that comprise the ethical dimensions of organization cultures. Answer: The five most prevalent climate categories are instrumental, caring, independence, law and code, and rules. Each explains the mindset, expectations, and values of the managers and employees in relationship to their organization. In an instrumental ethical climate, managers may frame their decision making around the assumption that employees are egoistic. In a caring climate, managers may operate under the expectation that their decisions will positively affect the greatest number of stakeholders possible. In a climate of independence, personal moral ideas dictate an individual's workplace behavior. Law and code climates require managers and employees to use an external standardized moral compass, while rules climates tend to operate by internal standardized expectations. 51) The ultimate source of an organization's culture is ________. A) its top management B) its environment C) the country in which the organization operates D) its founders E) the sociocultural backgrounds of its employees Answer: D Explanation: An organization's customs, traditions, and general way of doing things are largely due to what it has done before and how successful it was in doing it. Because of this, the ultimate source of an organization's culture tends to be its founders. 52) The ________ process helps candidates learn about the organization, and if employees perceive a conflict between their values and those of the organization, they can remove themselves from the applicant pool. A) orientation B) training C) performance evaluation D) selection E) institutionalization Answer: D Explanation: Selection is a two-way street, allowing employer or applicant to avoid a mismatch and sustaining an organization's culture by selecting out those who might attack or undermine its core values. 53) The selection process helps sustain the organization's culture by ________. A) establishing and enforcing norms B) hiring candidates who fit well within the organization C) socializing the new employees D) developing performance evaluation criteria E) rewarding conformity Answer: B Explanation: The selection process helps sustain the organization's culture by hiring candidates who fit well within the organization. Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool.