Organizational Culture Answer Key Part 4

82) Top managers' actions set the general climate in an organization, including what is acceptable behavior and what is not, and employees sustain and perpetuate the culture. Answer: TRUE Explanation: Top managers' actions set the general climate in an organization, including what is acceptable behavior and what is not, and employees sustain and perpetuate the culture. 83) How does organizational culture develop? Answer: An organization's current customs, traditions, and general way of doing things are largely due to what it has done before and the degree of success it has had with those endeavors. The founders of an organization traditionally have a major impact on that organization's early culture. They have a vision of what the organization should be. The small size that typically characterizes new organizations further facilitates the founders' imposition of their vision on all organizational members. The process of culture-creation occurs in three ways. a) First, founders only hire and keep employees who think and feel the way they do. b) Second, they indoctrinate and socialize these employees to their way of thinking and feeling. c) And finally, the founders' own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions. When the organization succeeds, the founders' vision becomes seen as a primary determinant of that success. At this point, the founders' entire personalities become embedded in the culture of the organization. 84) Explain the primary methods of maintaining an organization's culture. Answer: Once a culture is in place, there are practices within the organization that act to maintain it by giving employees a set of similar experiences. Three forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods. a) Selection: Selection can ensure the hiring of people who have values essentially consistent with those of the organization, or at least a good portion of those values. In addition, the selection process provides information to applicants about the organization. Candidates learn about the organization and, if they perceive a conflict between their values and those of the organization, they can self-select themselves out of the applicant pool. b) Top management: In addition to selection, the actions of top management also have a major impact on the organization's culture. Through what they say and how they behave, senior executives establish norms that filter down through the organization as to whether risk taking is desirable; how much freedom managers should give their employees; what is appropriate dress; what actions will pay off in terms of pay raises, promotions, and other rewards; and the like. c) Socialization: Finally, no matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organization's culture. Because they are unfamiliar with the organization's culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organization will, therefore, want to help new employees adapt to its culture. This is done through the process of socialization. 85) Describe the three stages involved in the process of socialization. Answer: The process that helps new employees adapt to the prevailing culture is socialization. The three stages of socialization are prearrival, encounter, and metamorphosis. a) The prearrival stage recognizes that each individual arrives with a set of values, attitudes, and expectations. These cover both the work to be done and the organization. b) Upon entry into the organization, the new member enters the encounter stage. Here, the individual confronts the possible dichotomy between his or her expectations and reality. c) Finally, the new member must work out any problems discovered during the encounter stage. This may mean going through changes–hence, this is called the metamorphosis stage. 86) ________ typically contain narratives about the organization's founders, rule breaking, and reactions to past mistakes. A) Stories B) Material symbols C) Rituals D) Organizational charts E) Corporate chants Answer: A Explanation: Stories circulate through organizations. They typically contain narratives about the organization's founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. 87) Bruce is new at Wayne Corp., but after a week he already knows that the founder of the corporation started the business in his garage with only $4,000 and one client. This information was most likely transmitted to Bruce by way of ________. A) stories B) material symbols C) rituals D) organizational charts E) corporate chants Answer: A Explanation: Bruce most likely knows this legend through the passing of stories. Stories circulate through organizations. They typically contain a narrative of events about the organization's founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, and organizational coping. 88) Nike is using ________ to perpetuate its organizational culture when employees reminisce about the days when Oregon track star Steve Prefontaine worked to make running a professional sport. A) rituals B) material symbols C) stories D) company policies E) business strategies Answer: C Explanation: Today, a number of senior Nike executives spend much of their time serving as corporate storytellers. When new hires hear tales of Oregon running star Steve Prefontaine's battles to make running a professional sport and attain better performance equipment, they learn of Nike's commitment to helping athletes. Stories such as these circulate through many organizations, anchoring the present in the past and legitimizing current practices. 89) Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable are called ________. A) symbols B) rituals C) stories D) communication strategies E) spans of control Answer: B Explanation: Repetitive sequences of activities that express and reinforce the key values of the organization, which goals are most important, which people are important, and which are expendable are called rituals. 90) Which of the following can act as a common denominator to unite members of a given culture or subculture? A) mechanistic organizational structure B) 360-degree appraisals C) jargons and acronyms that are specific to the organization D) bureaucratic organizational structure E) narrow span of control Answer: C Explanation: Many organizations and subunits within them use language to help members identify with the culture, attest to their acceptance of it, and help preserve it. New employees may at first be overwhelmed by acronyms and jargon, that, once assimilated, act as a common denominator to unite members of a given culture or subculture. 91) Alcoa headquarters has few individual offices, even for senior executives. The space is essentially made up of cubicles, common areas, and meeting rooms. This informality conveys to employees that Alcoa values ________. A) autocracy B) competitiveness C) rigidity D) equality E) formalization Answer: D Explanation: The informality at the Alcoa headquarters conveys to employees that Alcoa values openness, equality, creativity, and flexibility. Ask Socrates Inc. is a computer software company that employs highly intelligent, but somewhat unusual people. Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how creative they were when they were children. All the new members of the organization are told about the founders who were three young people who "got lucky" and sold a video game that they invented. The employees are allowed to dress informally and can set their own working hours. 92) Which of the following is most likely to be used by Ask Socrates Inc. to inform its new employees about its founders? A) stories B) material symbols C) organizational charts D) rituals E) corporate chants Answer: A Explanation: Stories circulate through organizations. They typically contain a narrative of events about the organization's founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and explain and legitimize current practices. 93) The regular distribution of lollipops, toys, or treats every Friday is an example of a ________ that helps reinforce Ask Socrates' culture. A) dominant mechanism B) ritual C) primary process D) protective mechanism E) fundamental procedure Answer: B Explanation: Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important, and which people are expendable. 94) Ask Socrates Inc. employees are allowed to dress informally. This is an example of a ________ through which organizational culture is transmitted. A) primary procedure B) ritual C) material symbol D) symbolic act E) fundamental mechanism Answer: C Explanation: Material symbols convey to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate. A few examples of material symbols include the size of offices, the elegance of furnishings, executive perks, and attire. 95) What are the various ways in which the organizational culture can be transmitted to the employees? Answer: Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language. a) Stories: Stories contain a narrative of events about the organization's founders, rule breaking, rags-to-riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. These stories anchor the present in the past and provide explanations and legitimacy for current practices. b) Rituals: Rituals are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are most important, which people are important and which are expendable. c) Material symbols: The layout of corporate headquarters, the types of automobiles top executives are given, and the presence or absence of corporate aircraft are a few examples of material symbols. These material symbols convey to employees who is important, the degree of egalitarianism desired by top management, and the kinds of behavior that are appropriate. d) Language: Many organizations and units within organizations use language as a way to identify members of a culture or subculture. By learning this language, members attest to their acceptance of the culture and, in doing so, help to preserve it. Organizations, over time, often develop unique terms to describe equipment, offices, key personnel, suppliers, customers, or products that relate to its business. New employees are frequently overwhelmed with acronyms and jargon, that, once assimilated, act as a common denominator that unites members of a given culture or subculture. 96) Provide an example of how a company can use material symbols. Answer: One example of the intentional use of material symbols is Texas electric company Dynegy. Dynegy's headquarters doesn't look like a typical operation. There are few individual offices, even for senior executives. The space is essentially made up of cubicles, common areas, and meeting rooms. This informality conveys to employees that Dynegy values openness, equality, creativity, and flexibility. While some organizations provide their top executives with chauffeur-driven limousines and a corporate jet, other CEOs drive the company car themselves and travel in airlines' economy section. At some firms, like Chicago shirtmaker Threadless, an "anything goes" atmosphere helps emphasize a creative culture. At Threadless, meetings are held in an Airstream camper parked inside the company's converted FedEx warehouse, while employees in shorts and flip-flops work in bullpens featuring disco balls and garish decorations chosen by each team. 97) One reason for the growing interest in spirituality is ________. A) the formalization of religion in most people's lives B) the importance of material acquisitions C) the introduction of formalized religious practices in the workplace D) the slower pace of life of life facilitated by technology E) the desire to integrate personal life values with professional life Answer: E Explanation: One reason for the growing interest in spirituality is the desire to integrate personal life values with professional life. 98) Pam works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishly furnish their offices and even purchase "office" furniture that was found in their personal homes. Which method of maintaining an ethical culture is Pam's company pursuing? A) serve as a visible role model B) communicate ethical expectations C) provide ethical training D) visibly punish unethical acts E) provide protective mechanisms Answer: D Explanation: Research suggests managers can have an effect on the ethical behavior of employees by adhering to the following principles: be a visible role model, communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish unethical ones, and provide protective mechanisms. In this example, the company is visibly punishing unethical acts. 99) A positive organizational culture emphasizes ________. A) the use of negative reinforcement and punishment B) the use of rituals in transmitting organizational culture C) individual vitality and growth D) the significance of highly centralized management E) organizational standardization and institutionalization Answer: C Explanation: A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. 100) Larry has an employee who is amazing at clearly seeing rules and enforcing them. He has recently promoted her to the lead position in quality assurance. Which method of creating a positive organizational culture is Larry utilizing? A) rewarding more than punishing B) building on organization strengths C) using standardized practices D) building on employee strengths E) transmitting organizational culture through rituals Answer: D Explanation: Larry is building on employee strengths. Because his employee is good at enforcing rules, he is showing her how she can put that strength to use. Although a positive organizational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths. 101) Patricia is a team leader. When looking at an e-mail from one of her team members, Patricia noticed that the e-mail was sent at nine-thirty in the evening. The next day she personally went to the employee's cubicle and told him how much she appreciated him staying late to get the project to the client on time. Which aspect of creating a positive organizational culture is Patricia utilizing? A) rewarding more than punishing B) building on organization strengths C) emphasizing individual growth D) building on employee strengths E) providing extrinsic rewards Answer: A Explanation: Patricia is utilizing rewards, rather than punishment. Most organizations are focused on extrinsic rewards such as pay and promotions and often forget about the power of smaller rewards such as the praise that Patricia is giving. 102) Liz is the lead editor for a small, city newspaper. One of her advertising sales representatives is pulling in a lot of restaurant clients. Liz realizes that the representative is quite knowledgeable about food and speaks quite elegantly when describing different dishes. She has begun discussing with the representative the possibility of collaborating with a writer to include a weekly restaurant review that includes the representative on the byline. After the first couple of reviews, the representative is able to increase ad sizes and sales. He is very happy with his new job diversification. Which aspect of creating a positive organizational culture is Liz utilizing? A) rewarding more than punishing B) building on organization strengths C) emphasizing individual vitality and growth D) creating loose management oversight E) using narrow spans of control Answer: C Explanation: A positive organizational culture emphasizes not only organizational effectiveness but also individuals' growth. No organization will get the best from employees who see themselves as mere cogs in the machine. Liz is helping her employee discover new aspects of his abilities and giving him new career opportunities. 103) Organizations that promote a spiritual culture ________. A) use stories for transmitting the organizational culture to the employees B) use wide spans of control C) recognize that people seek to find meaning and purpose in their work D) de-emphasize community differences within the organization E) tend to downplay the importance of employee satisfaction Answer: C Explanation: Workplace spirituality is not about organized religious practices. It's not about God or theology. Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. Organizations that promote a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community. 104) Which of the following terms refers to the recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community? A) dominant culture B) fundamental mechanism C) workplace spirituality D) outcome orientation E) subculture Answer: C Explanation: Workplace spirituality refers to the recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community. 105) Art-Is-Us claims to be a spiritual organization. Company employees are encouraged to show kindness toward others. Employees are treated with esteem and value and supported for their creativity and flexibility. While the organization values profits, its purpose is to spread the pleasure of art to as many people as possible. Which of the following is not one of the cultural characteristics commonly found in spiritual organizations? A) benevolence B) competitiveness C) open-mindedness D) trust and respect E) strong sense of purpose Answer: B Explanation: Several cultural characteristics differentiate spiritual organizations from their nonspiritual counterparts, including benevolence, a strong sense of purpose, trust and respect, and open-mindedness. 106) Employees whose ethical values are similar to those of their department are more likely to be promoted, so we can think of ethical culture as flowing from the top down. Answer: FALSE Explanation: Employees whose ethical values are similar to those of their department are more likely to be promoted, so we can think of ethical culture as flowing from the bottom up. 107) A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. Answer: TRUE Explanation: A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. 108) Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. Answer: TRUE Explanation: Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. Organizations that promote a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community. 109) Encouraging employees to consider how their work provides a sense of purpose can help achieve a spiritual workplace. Answer: TRUE Explanation: Encouraging employees to consider how their work provides a sense of purpose can help achieve a spiritual work place. 110) What can management do to create a more ethical culture within an organization? Answer: To create a more ethical culture, management can take a number of steps. a) Management can be a visible role model. Employees will look to top management behavior as a benchmark for defining appropriate behavior. b) Management can communicate ethical expectations. Ethical ambiguities can be minimized by creating and disseminating an organizational code of ethics. It should state the organization's primary values and the ethical rules that employees are expected to follow. c) Management can provide ethical training. Training sessions can be used to reinforce the organization's standards of conduct, to clarify what practices are and are not permissible, and to address possible ethical dilemmas. d) Management can visibly reward ethical acts and punish unethical ones. Performance appraisals of managers should include a point-by-point evaluation of how his or her decisions measured against the organization's code of ethics. Appraisals must include the means taken to achieve goals as well as the ends themselves. e) Finally, the organization needs to provide formal mechanisms so that employees can discuss ethical dilemmas and report unethical behavior without fear of reprimand. This might include creation of ethical counselors, ombudsmen, or ethical officers. 111) Explain the characteristics of a positive organizational culture. Answer: A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. a) Building on employee strengths: Although a positive organizational culture does not ignore problems, it does emphasize showing workers how they can capitalize on their strengths. b) Rewarding more than punishing: Although most organizations are sufficiently focused on extrinsic rewards such as pay and promotions, they often forget about the power of smaller (and cheaper) rewards such as praise. c) Emphasizing vitality and growth: No organization will get the best from employees who see themselves as mere cogs in the machine. A positive culture recognizes the difference between a job and a career. It supports not only what the employee contributes to organizational effectiveness but also how the organization can make the employee more effective–personally and professionally. 112) Compare and contrast an ethical organizational culture and a positive organizational culture. How are they similar and different? Answer: The organizational culture most likely to shape high ethical standards among its members is one that's high in risk tolerance, low to moderate in aggressiveness, and focused on means as well as outcomes. This type of culture also takes a long-term perspective and balances the rights of multiple stakeholders, including the communities in which the business operates, its employees, and its stockholders. Managers are supported for taking risks and innovating, discouraged from engaging in unbridled competition, and guided to pay attention not just to what goals are achieved but also to how. If the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on employee behavior. Research suggests managers can have an effect on the ethical behavior of employees by adhering to the following principles: be a visible role model, communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish unethical ones, and provide protective mechanisms. A positive organizational culture emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality and growth. The steps to create a positive work culture are more focused on the behavior of the employee, whereas the steps to creating an ethical work culture focus more on the behavior and responsibilities of management. They both take a long-term perspective and are concerned with balancing the rights and happiness of the employees and the investors. 113) What is workplace spirituality? Answer: Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work in the context of community. Organizations that promote a spiritual culture recognize that people seek to find meaning and purpose in their work and desire to connect with other human beings as part of a community. 114) What are the characteristics of a spiritual organization? Answer: Several cultural characteristics tend to be evident in spiritual organizations: a) Benevolence. Spiritual organizations value showing kindness toward others and promoting the happiness of employees and other organizational stakeholders. b) Strong sense of purpose. Spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they're not the primary value of the organization. c) Trust and respect. Spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual. d) Open-mindedness. Spiritual organizations value flexible thinking and creativity among employees. 115) How can U.S. managers be culturally sensitive? A) by indulging in frequent discussions about religion B) by discussing politics frequently C) by listening more D) by speaking quickly E) by talking in a high tone of voice Answer: C Explanation: Some ways in which U.S. managers can be culturally sensitive include talking in a low tone of voice, speaking slowly, listening more, and avoiding discussions of religion and politics. 116) Which of the following statements is true regarding effects of national culture on organizational culture and ethical behavior within an organization? A) As compared to managers in the United States, managers in developing economies are less likely to see ethical decisions as embedded in a social environment. B) Organizations can safely ignore local culture while establishing its operation in another country. C) Generally, U.S. managers see bribery, nepotism, and favoring personal contacts as highly unethical. D) Organizational cultures rarely reflect national culture. E) Most U.S. managers do not view profit maximization as a moral obligation. Answer: C Explanation: Organizational cultures often reflect national culture, and organizations cannot ignore local culture while establishing its operation in another country. As compared to managers in the United States, managers in developing economies are more likely to see ethical decisions as embedded in a social environment. U.S. managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. This worldview sees bribery, nepotism, and favoring personal contacts as highly unethical. 117) Explain the difference between a typical U.S. manager's point of view of ethical behavior and that of a manager in a developing economy and the implications of the difference. Answer: U.S. managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. Accordingly, U.S. managers see bribery, nepotism, and favoring personal contacts as being highly unethical. Any action that deviates from profit maximization may indicate that inappropriate or corrupt behavior may be occurring. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in a social environment. Consequently, these managers see doing special favors for friends and family as not only being appropriate, but possibly even an ethical responsibility. Managers in these nations also view capitalism with skepticism and believe the interests of workers should be put on par with the interests of shareholders.