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Chapter 16 Organizational Culture
MULTIPLE CHOICE
Institutionalization: A Forerunner of Culture
1.

When an organization takes on a life of its own, we can say that it has:
a. acquired a culture.
b. developed subcultures.
c. become institutionalized.
d. become immortal.
(c; Moderate; p. 484)
2.

Institutionalization is when:
a. people become indoctrinated into an organization’s culture.
b. an organization becomes valued for itself.
c. when rules and bureaucracy becomes a dominant culture.
d. an organization employs over 1,000 people.
(b; Moderate; p. 484)
3.

Which of the following is not true about institutionalization?
a. It operates to produce common understandings about appropriate behavior.
b. Acceptable modes of behavior become largely self-evident to its members.
c. It means the organization has acquired immortality.
d. The organization’s mission becomes stable.
(d; Challenging; p. 484-485)
What Is Organizational Culture?
4.

_____is a shared system of meaning held by the organization’s members that distinguishes the
organization from other organizations.
a. Institutionalization
b. Organizational culture
c. Socialization
d. Formalization
(b; Easy; p. 485)
5.

Which of the following is not a characteristic of organizational culture?
a. attention to detail
b. innovation
c. formality orientation
d. team orientation
(c; Moderate; p. 485)

112
6.

The key characteristic of organizational culture which addresses the degree to which management
decisions take into consideration the effect of outcomes on people within the organization is
termed:
a. humanistic work practices.
b. sense of community.
c. team orientation.
d. people orientation.
(d; Moderate; p. 485)
7.

The key characteristic of organizational culture which addresses the degree to which people are
competitive rather than easygoing is termed:
a. assertiveness.
b. competitiveness.
c. aggressiveness.
d. risk taking.
(c; Moderate; p. 485)
8.

The key characteristic of organizational culture which addresses the degree to which employees are
expected to exhibit precision is termed:
a. accuracy orientation.
b. precision.
c. attention to detail.
d. stability.
(c; Easy; p. 485)
9.

The key characteristic of organizational culture which assesses the degree to which organizational
activities emphasize maintaining the status quo in contrast to growth is:
a. permanence.
b. aggressiveness orientation.
c. stability.
d. competitiveness.
(c; Easy; p. 485)
10.

In contrasting organizational culture with job satisfaction, the former _____while the latter _____.
a. is written; is implied
b. is implied; describes
c. evaluates; describes
d. describes; evaluates
(d; Moderate; p. 486)
11.

_____expresses the core values that are shared by a majority of the organization’s members.
a. Dominant culture
b. Subculture
c. Socialization
d. Cultural reality
(a; Easy; p. 487)

12.

The macro view of culture that gives an organization its distinct personality is its:
113
a. dominant culture.
b. subculture.
c. strong culture.
d. national culture.
(a; Easy; p. 487)
13.

Cultures within an organization, typically defined by departmental designations are often called:
a. microcultures.
b. subcultures.
c. divisional cultures.
d. microcosms.
(b; Moderate; p. 487)
14.

Which does not define a subculture?
a. cultures within an organization
b. typically defined by department organizations
c. cultural values that are shared only within the organization
d. usually defined by geographical separation
(c; Moderate; p. 487)
15.

The dominant culture is:
a. the sum of the subcultures.
b. defined by the leader.
c. synonymous with the organization’s culture.
d. the same as strong culture.
(c; Moderate; p. 487)
16.

The primary or dominant values that are accepted throughout the organization are:
a. foundational values.
b. core values.
c. shared values.
d. institutionalized.
(b; Easy; p. 488)
17.

Which of the following terms is not part of the definition of a strong culture?
a. great influence on members’ behavior
b. low behavioral controls
c. widely shared values
d. intensely held values
(b; Moderate; p. 488)

18.

A culture where the core values are intensely held and widely shared is termed a:
a. dominant culture.
b. subculture.
c. strong culture.
114
d. formal culture.
(c; Moderate; p. 488)
19.

A specific result of a strong culture should be:
a. lower employee turnover.
b. lower employee satisfaction.
c. higher employee turnover.
d. higher absenteeism.
(a; Moderate; p. 488)
20.

The unanimity of a strong culture builds all of the following except:
a. cohesiveness.
b. loyalty.
c. quality.
d. organizational commitment.
(c; Easy; p. 488)
21.

According to your text, a strong culture can act as a substitute for:
a. institutionalization.
b. formalization
c. socialization.
d. organizational rules.
(b; Moderate; p. 488)
22.

High formalization in an organization creates all of the following except:
a. predictability.
b. cohesiveness.
c. orderliness.
d. consistency.
(b; Moderate; p. 488)
23.

The research indicates that national culture has a _____ on employees than does their
organization’s culture.
a. greater impact
b. lesser impact
c. similar impact
d. marginal impact
(a; Moderate; p. 489)

What Do Cultures Do?
24.

Which one of the following is not a function of culture cited in your text?
a. conveys a sense of organizational identity
b. controls employee behavior
c. affects the organization’s ability to hire capable employees
115
d. has a boundary-defining role
(c; Moderate; p. 489)
25.

Culture performs all the following functions except:
a. displays the dominance of some organizations.
b. enhances social system stability.
c. conveys a sense of identity for organization members.
d. facilitates commitment to something larger than individual self-interest.
(a; Easy; p. 489)
26.

As organizations have widened spans of control, flattened structures, introduced teams, reduced
formalization, and empowered employees, the _____ provided by a strong culture ensures that
everyone is pointed in the same direction.
a. rules and regulations
b. shared meaning
c. rituals
d. socialization
(b; Challenging; p. 490)
27.

Culture is most likely to be a liability when:
a. it increases consistency of behavior.
b. the environment is dynamic.
c. management is ineffectual.
d. it reduces ambiguity.
(b; Moderate; p. 490)
28.

Consistency of behavior is an asset to an organization when it faces:
a. a dynamic environment.
b. an unknown environment.
c. a stable environment.
d. massive changes.
(c; Moderate; p. 491)
29.

Culture may be a liability because it is a barrier to:
a. change.
b. diversity.
c. mergers and acquisitions.
d. all of the above
(d; Moderate; p. 491)

30.

In recent years, _____ has become the primary concern in acquisitions and mergers.
a. cultural compatibility
b. cultural synergy
c. organizational compatibility
d. none of the above
(a; Moderate; p. 491)
Creating and Sustaining Culture
116
31.

The ultimate source of an organization’s culture is:
a. top management.
b. the environment.
c. the country in which the organization operates.
d. its founders.
(d; Moderate; p. 492)
32.

Culture creation occurs in all of the following ways except:
a. founders hire and keep employees who think and feel the way they do.
b. founders indoctrinate and socialize employee to their way of thinking and feeling.
c. founders develop their vision covertly.
d. founders’ behavior acts as a role model.
(c; Moderate; p. 493)
33.

All of the following serve to sustain a culture except:
a. selection.
b. institutionalization.
c. socialization.
d. top management.
(b; Moderate; p. 493)
34.

The selection process helps sustain the organization’s culture by:
a. establishing and enforcing norms.
b. ensuring a proper match of personal and organizational values.
c. socializing the applicant.
d. identifying individuals who have the knowledge, skills, and abilities to perform the jobs.
(b; Moderate; p. 494)
35.

The selection process helps candidates learn about the organization and if they perceive a conflict
between their values and those of the organization, they should:
a. work to change the organization.
b. express their concerns.
c. inform the organization of appropriate changes.
d. self-select out of the applicant pool.
(d; Moderate; p. 494)

36.

Top management has a major impact on the organization’s culture by:
a. establishing norms that filter down through the organization.
b. ensuring a proper match of personal and organizational values.
c. socializing the applicant.
d. providing the metamorphosis framework
(a; Moderate; p. 494)
37.

The process that adapts employees to the organization’s culture is called:
a. indoctrination.
b. orientation.
117
c. socialization.
d. institutionalization.
(c; Moderate; p. 494)
38.

The Marine boot camp, where Marines “prove” their commitment is an example of:
a. indoctrination.
b. orientation.
c. socialization.
d. institutionalization.
(c; Moderate; p. 494)
39.

The socialization stage that encompasses the learning before a new member joins the organization
is:
a. prearrival.
b. encounter.
c. metamorphosis.
d. ritual.
(a; Easy; p. 495)
40.

Which of the following is not a stage of the socialization process?
a. prearrival
b. encounter
c. metamorphosis
d. ritual
(d; Easy; p. 495)
41.

_____ is the process that adapts employees to the organization’s culture.
a. Training
b. Indoctrination
c. Socialization
d. Orientation
(c; Easy; p. 496)

42.

The correct order for the stages of the socialization process is:
a. prearrival, metamorphosis, encounter.
b. prearrival, encounter, ritual.
c. prearrival, ritual, encounter.
d. prearrival, encounter, metamorphosis.
(d; Moderate; Exh. 16-2; p. 496)
43.

The employee compares her expectations to organizational reality in which stage of socialization?
a. prearrival
b. encounter
c. metamorphosis
d. ritual
118
(b; Easy; p. 496)
44.

If there is a basic conflict between the individual’s expectations and the organization’s
expectations, the employee is most likely to be disillusioned and quit during which stage?
a. prearrival
b. ritual
c. encounter
d. metamorphosis
(c; Easy; p. 496)
45.

Employee attitudes and behavior change during the _____ stage of socialization.
a. establishment
b. transformation
c. encounter
d. metamorphosis
(d; Easy; p. 496)
46.

The time when a new employee sees what the organization is really like and realizes that
expectations and reality may diverge is called:
a. encounter stage.
b. exploration stage.
c. establishment stage.
d. metamorphosis stage.
(a; Moderate; p. 496)
47.

The employee has become comfortable by the end of the:
a. encounter stage.
b. exploration stage.
c. establishment stage.
d. metamorphosis stage.
(d; Moderate; p. 497)

How Employees Learn Culture
48.

Which of the following is not a form listed in the book by which culture is transmitted to
employees?
a. stories
b. metamorphosis
c. rituals
d. language
(b; Easy; p. 498)
49.

Which one of the following terms is not consistent with the definition of a ritual?
a. material symbols
b. sequence of activities
c. repetition
119
d. key values
(a; Challenging; p. 498
50.
or

_____ typically contain(s) a narrative of events about the organization’s founders, rule breaking,

reactions to past mistakes.
a. Stories
b. Material symbols
c. Rituals
d. Language
(a; Easy; p. 498)
51.

According to your text, one of the most potent ways that employees learn culture is through:
a. material symbols.
b. role models.
c. colleagues.
d. mentors.
(a; Moderate; p. 499)
52.

_____ are repetitive sequences of activities that express and reinforce the key values of the
organization, what goals are important, which people are important, and which are expendable.
a. Stories
b. Rituals
c. Material symbols
d. Formal procedures
(b; Easy; p. 498)
53.

All of the following are examples of rituals except:
a. college faculty seeking tenure.
b. annual award meeting.
c. fraternity initiation.
d. the placement of offices within corporate headquarters.
(d; Moderate; p. 498)
54.

All of the following are examples of material symbols except:
a. top executives’ use of the company jet.
b. a swimming pool for the employees to use.
c. an annual award meeting.
d. different types of cars for executives.
(c; Moderate; p. 499)
Creating an Ethical Organizational Culture
55.

An organizational culture most likely to shape high ethical standards is one that:
a. is high in risk tolerance.
b. is low-to-moderate in aggressiveness.
c. focuses on means as well as outcomes.
d. all of the above
(d; Moderate; p. 500)
120
56.

To create a more ethical culture, management should do all of the following except:
a. Be a visible role model.
b. Hush up unethical acts.
c. Provide ethical training.
d. Communicate ethical expectations.
(b; Easy; p. 500-501)
Creating a Customer-Responsive Culture
57.

Which of the following is not a variable evident in customer-responsive cultures?
a. Outgoing and friendly employees.
b. Standardization of responses to customer needs.
c. Good listening skills.
d. Organizational citizenship behavior.
(b; Moderate; p. 501)
58.

Once a customer-responsive culture hires service-oriented employees, the organization must:
a. Clarify their roles.
b. Conduct formal orientation sessions.
c. Allow role ambiguity.
d. All of the above
(a; Moderate; p. 501)
59.

The place to start in building a customer-responsive culture is:
a. Hire service-contact people who have appropriate personality and attitudes.
b. Conduct orientation and socialization of employees.
c. Reduce rules and regulations.
d. Empower employees with the discretion to make day-to-day decisions.
(a; Moderate; p. 502)

Spirituality and Organizational Culture
60.

Organizations that promote a spiritual culture:
a. Have organized religious practices.
b. Adopt a corporate religion.
c. Recognize that people have both a mind and a spirit.
d. All of the above
(c; Moderate; p. 504)
61.

Critics of the spirituality movement in organizations focus on what issue(s)?
a. Legitimacy
b. Economics.
c. All the above..
d. None of the above.
(c; Challenging; p. 506)
TRUE/FALSE
121
Institutionalization: A Forerunner of Culture
62.
A strong organizational culture creates volatility within an organization.
(False; Moderate; p. 484)
63.
The idea of viewing organizations as cultures is a relatively recent phenomenon.
(True; Easy; p. 484)
64.

When an organization has become institutionalized, its original goals become ingrained throughout
the organization.
(False; Easy; p. 484)
65.

Culture as an independent variable affecting employee’s attitudes and behavior can be traced back
more than 70 years to the notion of institutionalization.
(False; Challenging; p. 484)
What Is Organizational Culture?
66.
Organizational culture is a set of key characteristics that the organization values.
(True; Easy; p. 485)
67.

The degree to which employees are encouraged to be innovative and take risks is termed
aggressiveness.
(False; Moderate; p. 485)
68.

The degree to which management decisions take into consideration the effect of outcomes on
people within the organization is termed outcome orientation.
(False; Moderate; p. 485)
69.

The degree to which management focuses on results rather than on techniques and processes is
termed results orientation.
(False; Moderate; p. 485)
70.

The degree to which organizational activities emphasize maintaining the status quo in contrast to
growth is termed stability.
(True; Moderate; p. 485)
71.

Individuals with different backgrounds or at different levels in the organization will tend to
describe the organization’s culture in similar terms because of the organizational indoctrination.
(False; Moderate; p. 486)
72.

The primary or dominant values that are accepted throughout the organization are the core
principles.
(False; Moderate; p. 489)
73.
“Giving your best effort” is part of every organization’s culture.
(False; Moderate; p. 487)

122
74.

The key element in organizational culture is that it gives meaning to the organization that different
employees can share.
(True; Moderate; p. 490)
75.
“Dominant culture” refers to cultures that value aggressive personalities.
(False; Moderate; p. 487)
76.
Research demonstrates that subcultures act to undermine the dominant culture.
(False; Moderate; p. 487-488)
77.
Strong cultures have a greater impact on employees’ behavior than weak cultures.
(True; Easy; p. 488)
78.
Dominant cultures are made up of values that are intensely held and widely shared.
(False; Easy; p. 487-488)
79.

According to the book, strong cultures have been shown to be related to higher employee
productivity.
(False; Moderate; p. 488)
80.
One specific result of a strong culture should be lower employee turnover.
(True; Challenging; p. 488)
81.
A strong culture can act as a substitute for rules and regulations.
(True; Challenging; p. 488)
82.

Research indicates that organizational culture has a greater impact on employees than does their
national culture.
(False; Moderate; p. 489)
What Does Culture Do?
83.
Culture has a boundary-defining role; it creates distinctions between one organization and others.
(True; Moderate; p. 489)
84.
Organizational culture serves to reinforce an individual’s self-interest.
(False; Moderate; p. 489)
85.

Culture is the social glue which holds the organization together by providing appropriate standards
for what employees should say and do.
(True; Easy; p. 489)
86.
Culture by definition is tangible and explicit.
(False; Easy; p. 489)
87.
Culture increases ambiguity for employees.
(False; Easy; p. 489)
88.
A strong culture can be a liability.
(True; Moderate; p. 491)

123
89.
Consistency of behavior is an asset to an organization when it faces a dynamic environment.
(False; Challenging; p. 491)
90.
A strong culture provides a supportive atmosphere for diversity.
(False; Moderate; p. 491)
91.
Strong cultures encourage individuality.
(False; Moderate; p. 491)
92.

Whether a merger works seems to have more to do with the example the two organizations’ top
management portray.
(False; Challenging; p. 491)
Creating and Sustaining Culture
93.

The founders of an organization generally have little impact on the organization’s culture since
they are so far removed from the employees.
(False; Moderate; p. 493)
94.
The selection process is two-way.
(True; Easy; 494)
95.

Three forces play a particularly important part in sustaining culture: selection practices, promotion
policies, and socialization methods.
(False; Challenging; p. 493)
96.
The values within an organization’s culture tend to flow down from top management.
(True; Easy; p. 494)
97.

Senior executives establish norms that filter down through the organization as to whether risk
taking is desirable.
(True; Moderate; p. 494)
98.
Socialization is the process that defines group interaction patterns.
(False; Moderate; p. 494-495)
99.
The socialization process is made up of three steps: prearrival, adjustment, and metamorphosis.
(False; Moderate; p. 495)
100.

The period of learning in the socialization process that occurs before a new employee joins the
organization is termed the encounter stage.
(False; Moderate; p. 496)
101.
The most critical socialization stage is the metamorphosis stage.
(False; Challenging; p. 495)
102.

One major purpose of a business school is to socialize business students to the attitudes and
behavior that business firms want.
(True; Moderate; p. 496)
124
103.

The stage of socialization where an individual confronts the possible dichotomy between her
expectations and reality is the encounter stage.
(True; Moderate; p. 496)
104.

When the new member works out problems discovered upon entry to the organization, he is in the
metamorphosis stage of the socialization process.
(True; Easy; p. 496)
105.
Socialization is complete when an employee completes his probationary period.
(False; Easy; p. 497)
How Employees Learn Culture
106.
Stories are a form of ritual.
(False; Moderate; p. 498)
107.

The book indicates that the most potent means of transmitting culture to employees are stories,
rituals, related symbols, and language.
(False; Moderate; p. 498)
108.
A ritual is a sequence of activities that continually express the key values of the organization.
(True; Easy; p. 498)
109.

Rituals are repetitive sequences of activities that express and reinforce the hierarchical structure of
the organization.
(False; Moderate; p. 498)
110.
Providing an executive with a chauffer-driven limousines is an example of a ritual.
(False; Easy; p. 499)
111.

College faculty members undergo a lengthy ritual in their quest for permanent employment –
tenure.
(True; Easy; p. 498)
112.

Material symbols convey to employees the degree of egalitarianism that is desired by top
management.
(True; Moderate; p. 499)
113.

Language can serve to unite members of a given culture as new employees learn the acronyms and
jargon specific to the organization.
(True; Easy; p. 500)
114.

All organizations within an industry use the terminology designated by the industry so that their
employees can move freely from organization to organization.
(False; Moderate; p. 500)
Creating an Ethical Organizational Culture

125
115.
A strong organizational culture will exert more influence on employees than a weak one.
(True; Easy; p. 500)
116.
Johnson & Johnson is an example of a strong culture that supports high ethical standards.
(True; Moderate; p. 500)
117.

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.
(True; Moderate; p. 501)
118.
The content and strength of a culture influences an organization’s ethical climate.
(True; Easy; p. 500)
119.

An organizational culture most likely to shape high ethical standards is one that is high in risk
tolerance, low in aggressiveness, and focuses on means instead of outcomes.
(False; Challenging; p. 500)
120.

The book suggests the following ways to create a more ethical culture: be a visible role model,
communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish
unethical ones, and provide protective mechanisms.
(True; Moderate; p. 500-501)
Creating a Customer-Responsive Culture
121.

Employees in customer-responsive cultures are willing to take the initiative even when it’s outside
their normal job requirements, to satisfy a customer’s needs.
(True; Easy; p. 501)
122.

In almost every organization that has successfully created and maintained a strong customerresponsive culture, its founder has played a major role in conveying the message.
(False; Challenging; p. 503)
123.

Evidence indicates that attitudinal-based performance evaluations are consistent with improved
customer service.
(False; Moderate; p. 503)
Spirituality and Organizational Culture
124.
Workplace spirituality encourages organized religious practices.
(False; Easy; p. 504)
125.
Spiritually-based organizations do not stifle employee emotions.
(True; Moderate; p. 506)
126.
Spirituality and profits may be compatible objectives.
(True; Challenging; p. 506)
SCENARIO-BASED QUESTIONS

126
Application of What Is Organizational Culture
Masterson College is a small liberal arts women’s college in North Carolina. The founders of the college
were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning. The college has continued to support this orientation towards liberal arts education and has
actually moved to strengthen that commitment recently. Within the last two decades, the business
department has become one of the larger departments on campus. The faculty of the business department
are also committed to finding employment for their graduates and believe that two things are critical for
this to happen: 1) their students must have a solid understanding of the fundamental of their discipline,
and 2) internships are an important method of establishing the connections and opportunities for
employment.
127.

The belief in a liberal arts education is part of the:
a. subculture of the business department.
b. management culture.
c. dominant culture.
d. mission statement.
(c; Easy; p. 487)

128.

The commitment to finding employment for graduates is part of the:
a. subculture of the business department.
b. management culture.
c. dominant culture.
d. mission statement.
(a; Easy; p. 487-488)
129.

The business department holds some unique values in addition to the _____ of the dominant
culture.
a. core values
b. sub-values
c. formal values
d. holistic values
(a; Easy; p. 487-488)
130.

Members of the language department have accused the business department of being more
vocational education oriented than liberal arts education oriented. The dominant culture of the
college is:
a. weakened by the business department.
b. the belief in a liberal arts education.
c. undergoing a metamorphosis.
d. none of the above.
(b; Moderate; p. 487)
Application of Culture as a Liability
The Young Woman’s Club of Williams has been operating for seventy-five years as an organization which
supports women who stay at home. For years it has been one of the most prestigious organizations in town
with a strong membership. This group has always held classes in cooking, sewing, and child rearing. It
127
has always been made up of upper middle class women from the small town of Williams. As the area has
grown, many people have moved into Williams and now commute to Capital City, just 15 miles away.
131.

It is probable that the culture of the Young Woman’s Club of Williams will be:
a. a barrier to change.
b. helpful for meeting the needs of diverse women.
c. embraced by all the newcomers.
d. strengthened by the newcomers.
(a; Moderate; p. 491)
132.

The culture of the Young Woman’s Club is likely to be:
a. strong.
b. helpful in reducing ambiguity for current members.
c. a liability.
d. all of the above
(d; Moderate; p. 490-491)

133.

The culture of the Young Woman’s Club will be a liability if:
a. newcomers embrace it.
b. it does not further the organization’s effectiveness.
c. it reduces ambiguity.
d. enhances social system stability.
(b; Easy; p. 491)
134.

The Young Woman’s Club is likely to:
a. have quite a bit of division regarding the future of the organization.
b. believe that their organization is vulnerable.
c. not spend much effort in recruiting new members.
d. all of the above.
(c; Moderate; 491)
Application of Socialization
You are new to an organization and do not really know what to expect about the socialization process.
You are a recent M.B.A. and have an undergraduate degree in computer science. Your new firm is a
software development company with an emphasis in the health care industry. Your hiring process included
campus interviews, a day-long trip to and interview at the company, an offer phone call and letter, and
some promotional material that was mailed to you. When you arrived for your first day of work, you spent
½ day in an orientation session with human resources in which you competed paperwork and received a
company handbook. Then you spent the rest of the day with your supervisor who gave you a tour,
introduced you to your co-workers, and explained your first project. After that, you began working and
getting to know the others in the company. You found that most things were as you expected, but there
were some things that you didn’t expect. None of these things were things you couldn’t accept, and you
began to feel at home and happy with your job.
135.

The interview and hiring process is called the:
a. selection stage.
b. prearrival stage.
128
c. encounter stage.
d. metamorphosis stage.
(b; Easy; p. 496)
136.

Your first day at work is part of the:
a. orientation stage.
b. prearrival stage.
c. encounter stage.
d. metamorphosis stage.
(c; Moderate; p. 496)
137.

When you began to notice things that were not as you expected, you were in the:
a. orientation stage.
b. prearrival stage.
c. encounter stage.
d. metamorphosis stage.
(c; Moderate; p. 496)
138.

When you accepted the problems and became happy with the job, you moved into the:
a. prearrival stage.
b. encounter stage.
c. acceptance stage.
d. metamorphosis stage.
(c; Moderate; p. 497)
Application of How Employees Learn Culture
Nunya 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. At the beginning of each quarterly executive meeting,
employees are reminded that the founders were three young people who “got lucky” and sold a video game
that they invented. Employees are allowed to dress in blue jeans and can set their own working hours.
139.

Reminding employees about the founders at each quarterly meeting is an example of:
a. stories.
b. material symbols.
c. language.
d. rituals.
(a; Easy; p. 498)
140.

Friday’s lollipops, toys, and treats are examples of a:
a. story.
b. ritual.
c. material symbol.
d. symbolism.
(b; Moderate; p. 498)
141.

The dress code is an example of a:
a. story.
b. ritual.
129
c. material symbol.
d. symbolic act.
(c; Moderate; p. 498)
SHORT DISCUSSION QUESTIONS
142.

What is organizational culture?
Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations. This system of shared meaning is, on
closer examination, a set of key characteristics that the organization values. (Page 485)

143.

Distinguish the dominant culture from a subculture.
A dominant culture expresses the core values that are shared by a majority of the
organization’s members. When we talk about an organization’s culture, we are referring to
its dominant culture. It is this macro view of culture that gives an organization its distinct
personality. Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences that members face. These subcultures are likely to be defined by
department designations and geographical separation. (Page 487)

144.

What are the functions of culture?
Culture performs a number of functions within an organization. First, it has a boundarydefining role. That is, it creates distinctions between one organization and others. Second, it
conveys a sense of identity for organization members. Third, culture facilitates the generation
of commitment to something larger than one’s individual self-interest. Fourth, it enhances
social system stability. Culture is the social glue that helps hold the organization together by
providing appropriate standards for what employees should say and do. Finally, culture
serves as a sense-making and control mechanism that guides and shapes the attitudes and
behavior of employees. (Page 489)

145.

When can culture be a liability?
Culture is a liability when the shared values are not in agreement with those that will further
the organization’s effectiveness. This is most likely to occur when an organization’s
environment is dynamic. When an environment is undergoing rapid change, an
organization’s entrenched culture may no longer be appropriate. So consistency of behavior
is an asset to an organization when it faces a stable environment. It may, however, burden
the organization and make it difficult to respond to changes in the environment. These strong
cultures become barriers to change when business as usual is no longer effective. (Page 491)

146.

What are the three stages of socialization?
The three stages of socialization are prearrival, encounter, and metamorphosis. 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. Upon entry into
the organization, the new member enters the encounter stage. Here the individual confronts
the possible dichotomy between her expectations and reality. Finally, the new member must
work out any problems discovered during the encounter stage. This may mean going through
130
changes – hence, this is called the metamorphosis stage. (Exh. 16-2; Page 496)
147.

What are 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. (Page 498)

148.

What are the six key variables in shaping customer-responsive cultures?
There are six key variables in shaping customer-responsive cultures. First is the type of
employees themselves. Successful, service-oriented organizations hire employees who are
outgoing and friendly. Second is low formalization. Service employees need to have the
freedom to meet changing customer service requirements. Third is an extension of low
formalization – it’s the widespread use of empowerment. Empowered employees have the
decision discretion to do what’s necessary to please the customer. Fourth is good listening
skills. Employees in customer-responsive cultures have the ability to listen to and understand
messages sent by the customer. Fifth is role clarity. Service employees act as boundary
spanners between the organization and its customers. Finally, customer-responsive cultures
have employees that exhibit organizational citizenship behavior. They are conscientious in
their desire to please the customer. And they’re willing to take the initiative, even when it’s
outside their normal job requirements, to satisfy a customer’s needs. (Page 501)

149.

What is spirituality?
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 that takes place in the context of community. Organizations
that promote a spiritual culture recognize that people have both a mind and a spirit, seek to
find meaning and purpose in their work, and desire to connect with other human beings and
be part of a community. (Page 504)

MEDIUM LENGTH DISCUSSION QUESTIONS
150.

What is organizational culture? What are the seven primary characteristics that capture the
essence of an organization’s culture?
Organizational culture refers to a system of shared meaning held by members that
distinguishes the organization from other organizations. This system of shared meaning is, on
closer examination, a set of key characteristics that the organization values. There are seven
primary characteristics that capture the essence of an organization’s culture. Innovation and
risk taking are the degree to which employees are encouraged to be innovative and take risks.
Attention to detail is the degree to which employees are expected to exhibit precision,
analysis, and attention to detail. Outcome orientation is the degree to which management
focuses on results or outcomes rather than on the techniques and processes used to achieve
these outcomes. People orientation is the degree to which management decisions take into
consideration the effect of outcomes on people within the organization. Team orientation is
the degree to which work activities are organized around teams rather than individuals.
Aggressiveness is the degree to which people are aggressive and competitive rather than
easygoing. Stability is the degree to which organizational activities emphasize maintaining the
131
status quo in contrast to growth. (Page 485)
151.

Discuss the difference between strong and weak cultures.
Strong cultures have a greater impact on employee behavior and are more directly related to
reduced turnover. In a strong culture, the organization’s core values are both intensely held
and widely shared. The more members who accept the core values and the greater their
commitment to those values is, the stronger the culture is. A strong culture will have a great
influence on the behavior of its members because the high degree of sharedness and intensity
creates an internal climate of high behavioral control. One specific result of a strong culture
should be lower employee turnover. A strong culture demonstrates high agreement among
members about what the organization stands for. Such unanimity of purpose builds
cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen
employees’ propensity to leave the organization. (Page 488)

152.

Discuss how employees learn culture.
Culture is transmitted to employees in a number of forms, the most potent being stories,
rituals, material symbols, and language. 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.
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. 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.
(Pages 498-499)

153.

What are the characteristics of a spiritual organization?
There are five cultural characteristics that tend to be evident in spiritual organizations.
Spiritual organizations build their cultures around a meaningful purpose. Spiritual
organizations recognize the worth and value of people. They seek to create cultures where
employees can continually learn and grow. Spiritual organizations are characterized by
mutual trust, honesty, and openness. Managers aren’t afraid to admit mistakes. And they
tend to be extremely upfront with their employees, customers, and suppliers. The high-trust
climate in spiritual organizations, when combined with the desire to promote employee
learning and growth, leads to management empowering employees to make most workrelated decisions. Managers in spiritually-based organizations are comfortable delegating
authority to individual employees and teams. They trust their employees to make thoughtful
and conscientious decisions. The final characteristic that differentiates spiritually-based
organizations is that they don’t stifle employee emotions. They allow people to be themselves.
(Pages 504-506)

COMPREHENSIVE ESSAYS
154.

How does culture begin and how can an organization keep its culture alive?

132
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. They are constrained by
previous customs or ideologies. 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. First, founders only hire and keep
employees who think and feel the way they do. Second, they indoctrinate and socialize these
employees to their way of thinking and feeling. 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.
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. The selection process, performance
evaluation criteria, training and career development activities, and promotion procedures
ensure that those hired fit in with the culture, reward those who support it, and penalize those
who challenge it. Three forces play a particularly important part in sustaining a culture:
selection practices, the actions of top management, and socialization methods. (Pages 492493)
155.

What can management do to create a more ethical culture?
To create a more ethical culture, management can take a number of steps. Management can
be a visible role model. Employees will look to top management behavior as a benchmark for
defining appropriate behavior. Management can also 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. Management can also 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. Finally, 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. (Pages 500-501)

156.

Explain the factors and means of maintaining an organization’s culture.
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.
Selection. The explicit goal of the selection process is to identify and hire individuals who
have the knowledge, skills, and abilities to perform the jobs within the organization
successfully. It would be naive to ignore that the final decision as to who is hired will be
significantly influenced by the decision maker’s judgment of how well the candidates will fit
into the organization. This attempt to ensure a proper match, whether purposely or
inadvertently, results in 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
133
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.
Top Management. 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.
Socialization. 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 adaptation process is called socialization. This is when
the organization seeks to mold the outsider into an employee “in good standing.” Employees
who fail to learn the essential or pivotal role behaviors risk being labeled “nonconformists” or
“rebels,” which often leads to expulsion. But the organization will be socializing every
employee, though maybe not as explicitly, throughout his or her entire career in the
organization. This further contributes to sustaining the culture. (Pages 493-495)

134

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Chap16

  • 1. Chapter 16 Organizational Culture MULTIPLE CHOICE Institutionalization: A Forerunner of Culture 1. When an organization takes on a life of its own, we can say that it has: a. acquired a culture. b. developed subcultures. c. become institutionalized. d. become immortal. (c; Moderate; p. 484) 2. Institutionalization is when: a. people become indoctrinated into an organization’s culture. b. an organization becomes valued for itself. c. when rules and bureaucracy becomes a dominant culture. d. an organization employs over 1,000 people. (b; Moderate; p. 484) 3. Which of the following is not true about institutionalization? a. It operates to produce common understandings about appropriate behavior. b. Acceptable modes of behavior become largely self-evident to its members. c. It means the organization has acquired immortality. d. The organization’s mission becomes stable. (d; Challenging; p. 484-485) What Is Organizational Culture? 4. _____is a shared system of meaning held by the organization’s members that distinguishes the organization from other organizations. a. Institutionalization b. Organizational culture c. Socialization d. Formalization (b; Easy; p. 485) 5. Which of the following is not a characteristic of organizational culture? a. attention to detail b. innovation c. formality orientation d. team orientation (c; Moderate; p. 485) 112
  • 2. 6. The key characteristic of organizational culture which addresses the degree to which management decisions take into consideration the effect of outcomes on people within the organization is termed: a. humanistic work practices. b. sense of community. c. team orientation. d. people orientation. (d; Moderate; p. 485) 7. The key characteristic of organizational culture which addresses the degree to which people are competitive rather than easygoing is termed: a. assertiveness. b. competitiveness. c. aggressiveness. d. risk taking. (c; Moderate; p. 485) 8. The key characteristic of organizational culture which addresses the degree to which employees are expected to exhibit precision is termed: a. accuracy orientation. b. precision. c. attention to detail. d. stability. (c; Easy; p. 485) 9. The key characteristic of organizational culture which assesses the degree to which organizational activities emphasize maintaining the status quo in contrast to growth is: a. permanence. b. aggressiveness orientation. c. stability. d. competitiveness. (c; Easy; p. 485) 10. In contrasting organizational culture with job satisfaction, the former _____while the latter _____. a. is written; is implied b. is implied; describes c. evaluates; describes d. describes; evaluates (d; Moderate; p. 486) 11. _____expresses the core values that are shared by a majority of the organization’s members. a. Dominant culture b. Subculture c. Socialization d. Cultural reality (a; Easy; p. 487) 12. The macro view of culture that gives an organization its distinct personality is its: 113
  • 3. a. dominant culture. b. subculture. c. strong culture. d. national culture. (a; Easy; p. 487) 13. Cultures within an organization, typically defined by departmental designations are often called: a. microcultures. b. subcultures. c. divisional cultures. d. microcosms. (b; Moderate; p. 487) 14. Which does not define a subculture? a. cultures within an organization b. typically defined by department organizations c. cultural values that are shared only within the organization d. usually defined by geographical separation (c; Moderate; p. 487) 15. The dominant culture is: a. the sum of the subcultures. b. defined by the leader. c. synonymous with the organization’s culture. d. the same as strong culture. (c; Moderate; p. 487) 16. The primary or dominant values that are accepted throughout the organization are: a. foundational values. b. core values. c. shared values. d. institutionalized. (b; Easy; p. 488) 17. Which of the following terms is not part of the definition of a strong culture? a. great influence on members’ behavior b. low behavioral controls c. widely shared values d. intensely held values (b; Moderate; p. 488) 18. A culture where the core values are intensely held and widely shared is termed a: a. dominant culture. b. subculture. c. strong culture. 114
  • 4. d. formal culture. (c; Moderate; p. 488) 19. A specific result of a strong culture should be: a. lower employee turnover. b. lower employee satisfaction. c. higher employee turnover. d. higher absenteeism. (a; Moderate; p. 488) 20. The unanimity of a strong culture builds all of the following except: a. cohesiveness. b. loyalty. c. quality. d. organizational commitment. (c; Easy; p. 488) 21. According to your text, a strong culture can act as a substitute for: a. institutionalization. b. formalization c. socialization. d. organizational rules. (b; Moderate; p. 488) 22. High formalization in an organization creates all of the following except: a. predictability. b. cohesiveness. c. orderliness. d. consistency. (b; Moderate; p. 488) 23. The research indicates that national culture has a _____ on employees than does their organization’s culture. a. greater impact b. lesser impact c. similar impact d. marginal impact (a; Moderate; p. 489) What Do Cultures Do? 24. Which one of the following is not a function of culture cited in your text? a. conveys a sense of organizational identity b. controls employee behavior c. affects the organization’s ability to hire capable employees 115
  • 5. d. has a boundary-defining role (c; Moderate; p. 489) 25. Culture performs all the following functions except: a. displays the dominance of some organizations. b. enhances social system stability. c. conveys a sense of identity for organization members. d. facilitates commitment to something larger than individual self-interest. (a; Easy; p. 489) 26. As organizations have widened spans of control, flattened structures, introduced teams, reduced formalization, and empowered employees, the _____ provided by a strong culture ensures that everyone is pointed in the same direction. a. rules and regulations b. shared meaning c. rituals d. socialization (b; Challenging; p. 490) 27. Culture is most likely to be a liability when: a. it increases consistency of behavior. b. the environment is dynamic. c. management is ineffectual. d. it reduces ambiguity. (b; Moderate; p. 490) 28. Consistency of behavior is an asset to an organization when it faces: a. a dynamic environment. b. an unknown environment. c. a stable environment. d. massive changes. (c; Moderate; p. 491) 29. Culture may be a liability because it is a barrier to: a. change. b. diversity. c. mergers and acquisitions. d. all of the above (d; Moderate; p. 491) 30. In recent years, _____ has become the primary concern in acquisitions and mergers. a. cultural compatibility b. cultural synergy c. organizational compatibility d. none of the above (a; Moderate; p. 491) Creating and Sustaining Culture 116
  • 6. 31. The ultimate source of an organization’s culture is: a. top management. b. the environment. c. the country in which the organization operates. d. its founders. (d; Moderate; p. 492) 32. Culture creation occurs in all of the following ways except: a. founders hire and keep employees who think and feel the way they do. b. founders indoctrinate and socialize employee to their way of thinking and feeling. c. founders develop their vision covertly. d. founders’ behavior acts as a role model. (c; Moderate; p. 493) 33. All of the following serve to sustain a culture except: a. selection. b. institutionalization. c. socialization. d. top management. (b; Moderate; p. 493) 34. The selection process helps sustain the organization’s culture by: a. establishing and enforcing norms. b. ensuring a proper match of personal and organizational values. c. socializing the applicant. d. identifying individuals who have the knowledge, skills, and abilities to perform the jobs. (b; Moderate; p. 494) 35. The selection process helps candidates learn about the organization and if they perceive a conflict between their values and those of the organization, they should: a. work to change the organization. b. express their concerns. c. inform the organization of appropriate changes. d. self-select out of the applicant pool. (d; Moderate; p. 494) 36. Top management has a major impact on the organization’s culture by: a. establishing norms that filter down through the organization. b. ensuring a proper match of personal and organizational values. c. socializing the applicant. d. providing the metamorphosis framework (a; Moderate; p. 494) 37. The process that adapts employees to the organization’s culture is called: a. indoctrination. b. orientation. 117
  • 7. c. socialization. d. institutionalization. (c; Moderate; p. 494) 38. The Marine boot camp, where Marines “prove” their commitment is an example of: a. indoctrination. b. orientation. c. socialization. d. institutionalization. (c; Moderate; p. 494) 39. The socialization stage that encompasses the learning before a new member joins the organization is: a. prearrival. b. encounter. c. metamorphosis. d. ritual. (a; Easy; p. 495) 40. Which of the following is not a stage of the socialization process? a. prearrival b. encounter c. metamorphosis d. ritual (d; Easy; p. 495) 41. _____ is the process that adapts employees to the organization’s culture. a. Training b. Indoctrination c. Socialization d. Orientation (c; Easy; p. 496) 42. The correct order for the stages of the socialization process is: a. prearrival, metamorphosis, encounter. b. prearrival, encounter, ritual. c. prearrival, ritual, encounter. d. prearrival, encounter, metamorphosis. (d; Moderate; Exh. 16-2; p. 496) 43. The employee compares her expectations to organizational reality in which stage of socialization? a. prearrival b. encounter c. metamorphosis d. ritual 118
  • 8. (b; Easy; p. 496) 44. If there is a basic conflict between the individual’s expectations and the organization’s expectations, the employee is most likely to be disillusioned and quit during which stage? a. prearrival b. ritual c. encounter d. metamorphosis (c; Easy; p. 496) 45. Employee attitudes and behavior change during the _____ stage of socialization. a. establishment b. transformation c. encounter d. metamorphosis (d; Easy; p. 496) 46. The time when a new employee sees what the organization is really like and realizes that expectations and reality may diverge is called: a. encounter stage. b. exploration stage. c. establishment stage. d. metamorphosis stage. (a; Moderate; p. 496) 47. The employee has become comfortable by the end of the: a. encounter stage. b. exploration stage. c. establishment stage. d. metamorphosis stage. (d; Moderate; p. 497) How Employees Learn Culture 48. Which of the following is not a form listed in the book by which culture is transmitted to employees? a. stories b. metamorphosis c. rituals d. language (b; Easy; p. 498) 49. Which one of the following terms is not consistent with the definition of a ritual? a. material symbols b. sequence of activities c. repetition 119
  • 9. d. key values (a; Challenging; p. 498 50. or _____ typically contain(s) a narrative of events about the organization’s founders, rule breaking, reactions to past mistakes. a. Stories b. Material symbols c. Rituals d. Language (a; Easy; p. 498) 51. According to your text, one of the most potent ways that employees learn culture is through: a. material symbols. b. role models. c. colleagues. d. mentors. (a; Moderate; p. 499) 52. _____ are repetitive sequences of activities that express and reinforce the key values of the organization, what goals are important, which people are important, and which are expendable. a. Stories b. Rituals c. Material symbols d. Formal procedures (b; Easy; p. 498) 53. All of the following are examples of rituals except: a. college faculty seeking tenure. b. annual award meeting. c. fraternity initiation. d. the placement of offices within corporate headquarters. (d; Moderate; p. 498) 54. All of the following are examples of material symbols except: a. top executives’ use of the company jet. b. a swimming pool for the employees to use. c. an annual award meeting. d. different types of cars for executives. (c; Moderate; p. 499) Creating an Ethical Organizational Culture 55. An organizational culture most likely to shape high ethical standards is one that: a. is high in risk tolerance. b. is low-to-moderate in aggressiveness. c. focuses on means as well as outcomes. d. all of the above (d; Moderate; p. 500) 120
  • 10. 56. To create a more ethical culture, management should do all of the following except: a. Be a visible role model. b. Hush up unethical acts. c. Provide ethical training. d. Communicate ethical expectations. (b; Easy; p. 500-501) Creating a Customer-Responsive Culture 57. Which of the following is not a variable evident in customer-responsive cultures? a. Outgoing and friendly employees. b. Standardization of responses to customer needs. c. Good listening skills. d. Organizational citizenship behavior. (b; Moderate; p. 501) 58. Once a customer-responsive culture hires service-oriented employees, the organization must: a. Clarify their roles. b. Conduct formal orientation sessions. c. Allow role ambiguity. d. All of the above (a; Moderate; p. 501) 59. The place to start in building a customer-responsive culture is: a. Hire service-contact people who have appropriate personality and attitudes. b. Conduct orientation and socialization of employees. c. Reduce rules and regulations. d. Empower employees with the discretion to make day-to-day decisions. (a; Moderate; p. 502) Spirituality and Organizational Culture 60. Organizations that promote a spiritual culture: a. Have organized religious practices. b. Adopt a corporate religion. c. Recognize that people have both a mind and a spirit. d. All of the above (c; Moderate; p. 504) 61. Critics of the spirituality movement in organizations focus on what issue(s)? a. Legitimacy b. Economics. c. All the above.. d. None of the above. (c; Challenging; p. 506) TRUE/FALSE 121
  • 11. Institutionalization: A Forerunner of Culture 62. A strong organizational culture creates volatility within an organization. (False; Moderate; p. 484) 63. The idea of viewing organizations as cultures is a relatively recent phenomenon. (True; Easy; p. 484) 64. When an organization has become institutionalized, its original goals become ingrained throughout the organization. (False; Easy; p. 484) 65. Culture as an independent variable affecting employee’s attitudes and behavior can be traced back more than 70 years to the notion of institutionalization. (False; Challenging; p. 484) What Is Organizational Culture? 66. Organizational culture is a set of key characteristics that the organization values. (True; Easy; p. 485) 67. The degree to which employees are encouraged to be innovative and take risks is termed aggressiveness. (False; Moderate; p. 485) 68. The degree to which management decisions take into consideration the effect of outcomes on people within the organization is termed outcome orientation. (False; Moderate; p. 485) 69. The degree to which management focuses on results rather than on techniques and processes is termed results orientation. (False; Moderate; p. 485) 70. The degree to which organizational activities emphasize maintaining the status quo in contrast to growth is termed stability. (True; Moderate; p. 485) 71. Individuals with different backgrounds or at different levels in the organization will tend to describe the organization’s culture in similar terms because of the organizational indoctrination. (False; Moderate; p. 486) 72. The primary or dominant values that are accepted throughout the organization are the core principles. (False; Moderate; p. 489) 73. “Giving your best effort” is part of every organization’s culture. (False; Moderate; p. 487) 122
  • 12. 74. The key element in organizational culture is that it gives meaning to the organization that different employees can share. (True; Moderate; p. 490) 75. “Dominant culture” refers to cultures that value aggressive personalities. (False; Moderate; p. 487) 76. Research demonstrates that subcultures act to undermine the dominant culture. (False; Moderate; p. 487-488) 77. Strong cultures have a greater impact on employees’ behavior than weak cultures. (True; Easy; p. 488) 78. Dominant cultures are made up of values that are intensely held and widely shared. (False; Easy; p. 487-488) 79. According to the book, strong cultures have been shown to be related to higher employee productivity. (False; Moderate; p. 488) 80. One specific result of a strong culture should be lower employee turnover. (True; Challenging; p. 488) 81. A strong culture can act as a substitute for rules and regulations. (True; Challenging; p. 488) 82. Research indicates that organizational culture has a greater impact on employees than does their national culture. (False; Moderate; p. 489) What Does Culture Do? 83. Culture has a boundary-defining role; it creates distinctions between one organization and others. (True; Moderate; p. 489) 84. Organizational culture serves to reinforce an individual’s self-interest. (False; Moderate; p. 489) 85. Culture is the social glue which holds the organization together by providing appropriate standards for what employees should say and do. (True; Easy; p. 489) 86. Culture by definition is tangible and explicit. (False; Easy; p. 489) 87. Culture increases ambiguity for employees. (False; Easy; p. 489) 88. A strong culture can be a liability. (True; Moderate; p. 491) 123
  • 13. 89. Consistency of behavior is an asset to an organization when it faces a dynamic environment. (False; Challenging; p. 491) 90. A strong culture provides a supportive atmosphere for diversity. (False; Moderate; p. 491) 91. Strong cultures encourage individuality. (False; Moderate; p. 491) 92. Whether a merger works seems to have more to do with the example the two organizations’ top management portray. (False; Challenging; p. 491) Creating and Sustaining Culture 93. The founders of an organization generally have little impact on the organization’s culture since they are so far removed from the employees. (False; Moderate; p. 493) 94. The selection process is two-way. (True; Easy; 494) 95. Three forces play a particularly important part in sustaining culture: selection practices, promotion policies, and socialization methods. (False; Challenging; p. 493) 96. The values within an organization’s culture tend to flow down from top management. (True; Easy; p. 494) 97. Senior executives establish norms that filter down through the organization as to whether risk taking is desirable. (True; Moderate; p. 494) 98. Socialization is the process that defines group interaction patterns. (False; Moderate; p. 494-495) 99. The socialization process is made up of three steps: prearrival, adjustment, and metamorphosis. (False; Moderate; p. 495) 100. The period of learning in the socialization process that occurs before a new employee joins the organization is termed the encounter stage. (False; Moderate; p. 496) 101. The most critical socialization stage is the metamorphosis stage. (False; Challenging; p. 495) 102. One major purpose of a business school is to socialize business students to the attitudes and behavior that business firms want. (True; Moderate; p. 496) 124
  • 14. 103. The stage of socialization where an individual confronts the possible dichotomy between her expectations and reality is the encounter stage. (True; Moderate; p. 496) 104. When the new member works out problems discovered upon entry to the organization, he is in the metamorphosis stage of the socialization process. (True; Easy; p. 496) 105. Socialization is complete when an employee completes his probationary period. (False; Easy; p. 497) How Employees Learn Culture 106. Stories are a form of ritual. (False; Moderate; p. 498) 107. The book indicates that the most potent means of transmitting culture to employees are stories, rituals, related symbols, and language. (False; Moderate; p. 498) 108. A ritual is a sequence of activities that continually express the key values of the organization. (True; Easy; p. 498) 109. Rituals are repetitive sequences of activities that express and reinforce the hierarchical structure of the organization. (False; Moderate; p. 498) 110. Providing an executive with a chauffer-driven limousines is an example of a ritual. (False; Easy; p. 499) 111. College faculty members undergo a lengthy ritual in their quest for permanent employment – tenure. (True; Easy; p. 498) 112. Material symbols convey to employees the degree of egalitarianism that is desired by top management. (True; Moderate; p. 499) 113. Language can serve to unite members of a given culture as new employees learn the acronyms and jargon specific to the organization. (True; Easy; p. 500) 114. All organizations within an industry use the terminology designated by the industry so that their employees can move freely from organization to organization. (False; Moderate; p. 500) Creating an Ethical Organizational Culture 125
  • 15. 115. A strong organizational culture will exert more influence on employees than a weak one. (True; Easy; p. 500) 116. Johnson & Johnson is an example of a strong culture that supports high ethical standards. (True; Moderate; p. 500) 117. 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. (True; Moderate; p. 501) 118. The content and strength of a culture influences an organization’s ethical climate. (True; Easy; p. 500) 119. An organizational culture most likely to shape high ethical standards is one that is high in risk tolerance, low in aggressiveness, and focuses on means instead of outcomes. (False; Challenging; p. 500) 120. The book suggests the following ways to create a more ethical culture: be a visible role model, communicate ethical expectations, provide ethical training, visibly reward ethical acts and punish unethical ones, and provide protective mechanisms. (True; Moderate; p. 500-501) Creating a Customer-Responsive Culture 121. Employees in customer-responsive cultures are willing to take the initiative even when it’s outside their normal job requirements, to satisfy a customer’s needs. (True; Easy; p. 501) 122. In almost every organization that has successfully created and maintained a strong customerresponsive culture, its founder has played a major role in conveying the message. (False; Challenging; p. 503) 123. Evidence indicates that attitudinal-based performance evaluations are consistent with improved customer service. (False; Moderate; p. 503) Spirituality and Organizational Culture 124. Workplace spirituality encourages organized religious practices. (False; Easy; p. 504) 125. Spiritually-based organizations do not stifle employee emotions. (True; Moderate; p. 506) 126. Spirituality and profits may be compatible objectives. (True; Challenging; p. 506) SCENARIO-BASED QUESTIONS 126
  • 16. Application of What Is Organizational Culture Masterson College is a small liberal arts women’s college in North Carolina. The founders of the college were Baptist and were committed to the idea that a liberal arts education was the best preparation for lifelong learning. The college has continued to support this orientation towards liberal arts education and has actually moved to strengthen that commitment recently. Within the last two decades, the business department has become one of the larger departments on campus. The faculty of the business department are also committed to finding employment for their graduates and believe that two things are critical for this to happen: 1) their students must have a solid understanding of the fundamental of their discipline, and 2) internships are an important method of establishing the connections and opportunities for employment. 127. The belief in a liberal arts education is part of the: a. subculture of the business department. b. management culture. c. dominant culture. d. mission statement. (c; Easy; p. 487) 128. The commitment to finding employment for graduates is part of the: a. subculture of the business department. b. management culture. c. dominant culture. d. mission statement. (a; Easy; p. 487-488) 129. The business department holds some unique values in addition to the _____ of the dominant culture. a. core values b. sub-values c. formal values d. holistic values (a; Easy; p. 487-488) 130. Members of the language department have accused the business department of being more vocational education oriented than liberal arts education oriented. The dominant culture of the college is: a. weakened by the business department. b. the belief in a liberal arts education. c. undergoing a metamorphosis. d. none of the above. (b; Moderate; p. 487) Application of Culture as a Liability The Young Woman’s Club of Williams has been operating for seventy-five years as an organization which supports women who stay at home. For years it has been one of the most prestigious organizations in town with a strong membership. This group has always held classes in cooking, sewing, and child rearing. It 127
  • 17. has always been made up of upper middle class women from the small town of Williams. As the area has grown, many people have moved into Williams and now commute to Capital City, just 15 miles away. 131. It is probable that the culture of the Young Woman’s Club of Williams will be: a. a barrier to change. b. helpful for meeting the needs of diverse women. c. embraced by all the newcomers. d. strengthened by the newcomers. (a; Moderate; p. 491) 132. The culture of the Young Woman’s Club is likely to be: a. strong. b. helpful in reducing ambiguity for current members. c. a liability. d. all of the above (d; Moderate; p. 490-491) 133. The culture of the Young Woman’s Club will be a liability if: a. newcomers embrace it. b. it does not further the organization’s effectiveness. c. it reduces ambiguity. d. enhances social system stability. (b; Easy; p. 491) 134. The Young Woman’s Club is likely to: a. have quite a bit of division regarding the future of the organization. b. believe that their organization is vulnerable. c. not spend much effort in recruiting new members. d. all of the above. (c; Moderate; 491) Application of Socialization You are new to an organization and do not really know what to expect about the socialization process. You are a recent M.B.A. and have an undergraduate degree in computer science. Your new firm is a software development company with an emphasis in the health care industry. Your hiring process included campus interviews, a day-long trip to and interview at the company, an offer phone call and letter, and some promotional material that was mailed to you. When you arrived for your first day of work, you spent ½ day in an orientation session with human resources in which you competed paperwork and received a company handbook. Then you spent the rest of the day with your supervisor who gave you a tour, introduced you to your co-workers, and explained your first project. After that, you began working and getting to know the others in the company. You found that most things were as you expected, but there were some things that you didn’t expect. None of these things were things you couldn’t accept, and you began to feel at home and happy with your job. 135. The interview and hiring process is called the: a. selection stage. b. prearrival stage. 128
  • 18. c. encounter stage. d. metamorphosis stage. (b; Easy; p. 496) 136. Your first day at work is part of the: a. orientation stage. b. prearrival stage. c. encounter stage. d. metamorphosis stage. (c; Moderate; p. 496) 137. When you began to notice things that were not as you expected, you were in the: a. orientation stage. b. prearrival stage. c. encounter stage. d. metamorphosis stage. (c; Moderate; p. 496) 138. When you accepted the problems and became happy with the job, you moved into the: a. prearrival stage. b. encounter stage. c. acceptance stage. d. metamorphosis stage. (c; Moderate; p. 497) Application of How Employees Learn Culture Nunya 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. At the beginning of each quarterly executive meeting, employees are reminded that the founders were three young people who “got lucky” and sold a video game that they invented. Employees are allowed to dress in blue jeans and can set their own working hours. 139. Reminding employees about the founders at each quarterly meeting is an example of: a. stories. b. material symbols. c. language. d. rituals. (a; Easy; p. 498) 140. Friday’s lollipops, toys, and treats are examples of a: a. story. b. ritual. c. material symbol. d. symbolism. (b; Moderate; p. 498) 141. The dress code is an example of a: a. story. b. ritual. 129
  • 19. c. material symbol. d. symbolic act. (c; Moderate; p. 498) SHORT DISCUSSION QUESTIONS 142. What is organizational culture? Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key characteristics that the organization values. (Page 485) 143. Distinguish the dominant culture from a subculture. A dominant culture expresses the core values that are shared by a majority of the organization’s members. When we talk about an organization’s culture, we are referring to its dominant culture. It is this macro view of culture that gives an organization its distinct personality. Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face. These subcultures are likely to be defined by department designations and geographical separation. (Page 487) 144. What are the functions of culture? Culture performs a number of functions within an organization. First, it has a boundarydefining role. That is, it creates distinctions between one organization and others. Second, it conveys a sense of identity for organization members. Third, culture facilitates the generation of commitment to something larger than one’s individual self-interest. Fourth, it enhances social system stability. Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do. Finally, culture serves as a sense-making and control mechanism that guides and shapes the attitudes and behavior of employees. (Page 489) 145. When can culture be a liability? Culture is a liability when the shared values are not in agreement with those that will further the organization’s effectiveness. This is most likely to occur when an organization’s environment is dynamic. When an environment is undergoing rapid change, an organization’s entrenched culture may no longer be appropriate. So consistency of behavior is an asset to an organization when it faces a stable environment. It may, however, burden the organization and make it difficult to respond to changes in the environment. These strong cultures become barriers to change when business as usual is no longer effective. (Page 491) 146. What are the three stages of socialization? The three stages of socialization are prearrival, encounter, and metamorphosis. 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. Upon entry into the organization, the new member enters the encounter stage. Here the individual confronts the possible dichotomy between her expectations and reality. Finally, the new member must work out any problems discovered during the encounter stage. This may mean going through 130
  • 20. changes – hence, this is called the metamorphosis stage. (Exh. 16-2; Page 496) 147. What are 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. (Page 498) 148. What are the six key variables in shaping customer-responsive cultures? There are six key variables in shaping customer-responsive cultures. First is the type of employees themselves. Successful, service-oriented organizations hire employees who are outgoing and friendly. Second is low formalization. Service employees need to have the freedom to meet changing customer service requirements. Third is an extension of low formalization – it’s the widespread use of empowerment. Empowered employees have the decision discretion to do what’s necessary to please the customer. Fourth is good listening skills. Employees in customer-responsive cultures have the ability to listen to and understand messages sent by the customer. Fifth is role clarity. Service employees act as boundary spanners between the organization and its customers. Finally, customer-responsive cultures have employees that exhibit organizational citizenship behavior. They are conscientious in their desire to please the customer. And they’re willing to take the initiative, even when it’s outside their normal job requirements, to satisfy a customer’s needs. (Page 501) 149. What is spirituality? 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 that takes place in the context of community. Organizations that promote a spiritual culture recognize that people have both a mind and a spirit, seek to find meaning and purpose in their work, and desire to connect with other human beings and be part of a community. (Page 504) MEDIUM LENGTH DISCUSSION QUESTIONS 150. What is organizational culture? What are the seven primary characteristics that capture the essence of an organization’s culture? Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations. This system of shared meaning is, on closer examination, a set of key characteristics that the organization values. There are seven primary characteristics that capture the essence of an organization’s culture. Innovation and risk taking are the degree to which employees are encouraged to be innovative and take risks. Attention to detail is the degree to which employees are expected to exhibit precision, analysis, and attention to detail. Outcome orientation is the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes. People orientation is the degree to which management decisions take into consideration the effect of outcomes on people within the organization. Team orientation is the degree to which work activities are organized around teams rather than individuals. Aggressiveness is the degree to which people are aggressive and competitive rather than easygoing. Stability is the degree to which organizational activities emphasize maintaining the 131
  • 21. status quo in contrast to growth. (Page 485) 151. Discuss the difference between strong and weak cultures. Strong cultures have a greater impact on employee behavior and are more directly related to reduced turnover. In a strong culture, the organization’s core values are both intensely held and widely shared. The more members who accept the core values and the greater their commitment to those values is, the stronger the culture is. A strong culture will have a great influence on the behavior of its members because the high degree of sharedness and intensity creates an internal climate of high behavioral control. One specific result of a strong culture should be lower employee turnover. A strong culture demonstrates high agreement among members about what the organization stands for. Such unanimity of purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in turn, lessen employees’ propensity to leave the organization. (Page 488) 152. Discuss how employees learn culture. Culture is transmitted to employees in a number of forms, the most potent being stories, rituals, material symbols, and language. 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. 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. 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. (Pages 498-499) 153. What are the characteristics of a spiritual organization? There are five cultural characteristics that tend to be evident in spiritual organizations. Spiritual organizations build their cultures around a meaningful purpose. Spiritual organizations recognize the worth and value of people. They seek to create cultures where employees can continually learn and grow. Spiritual organizations are characterized by mutual trust, honesty, and openness. Managers aren’t afraid to admit mistakes. And they tend to be extremely upfront with their employees, customers, and suppliers. The high-trust climate in spiritual organizations, when combined with the desire to promote employee learning and growth, leads to management empowering employees to make most workrelated decisions. Managers in spiritually-based organizations are comfortable delegating authority to individual employees and teams. They trust their employees to make thoughtful and conscientious decisions. The final characteristic that differentiates spiritually-based organizations is that they don’t stifle employee emotions. They allow people to be themselves. (Pages 504-506) COMPREHENSIVE ESSAYS 154. How does culture begin and how can an organization keep its culture alive? 132
  • 22. 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. They are constrained by previous customs or ideologies. 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. First, founders only hire and keep employees who think and feel the way they do. Second, they indoctrinate and socialize these employees to their way of thinking and feeling. 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. 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. The selection process, performance evaluation criteria, training and career development activities, and promotion procedures ensure that those hired fit in with the culture, reward those who support it, and penalize those who challenge it. Three forces play a particularly important part in sustaining a culture: selection practices, the actions of top management, and socialization methods. (Pages 492493) 155. What can management do to create a more ethical culture? To create a more ethical culture, management can take a number of steps. Management can be a visible role model. Employees will look to top management behavior as a benchmark for defining appropriate behavior. Management can also 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. Management can also 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. Finally, 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. (Pages 500-501) 156. Explain the factors and means of maintaining an organization’s culture. 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. Selection. The explicit goal of the selection process is to identify and hire individuals who have the knowledge, skills, and abilities to perform the jobs within the organization successfully. It would be naive to ignore that the final decision as to who is hired will be significantly influenced by the decision maker’s judgment of how well the candidates will fit into the organization. This attempt to ensure a proper match, whether purposely or inadvertently, results in 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 133
  • 23. 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. Top Management. 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. Socialization. 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 adaptation process is called socialization. This is when the organization seeks to mold the outsider into an employee “in good standing.” Employees who fail to learn the essential or pivotal role behaviors risk being labeled “nonconformists” or “rebels,” which often leads to expulsion. But the organization will be socializing every employee, though maybe not as explicitly, throughout his or her entire career in the organization. This further contributes to sustaining the culture. (Pages 493-495) 134