MCQ Chapter 5 PDF

CHAPTER 5 1. The culture considered vital in an organization because ________ A. It determines the legal structure of the organization. B. It influences how an organization creates values and how it is perceived. C. It primarily affects the financial stability of the organization. D. It ensures...

CHAPTER 5 1. The culture considered vital in an organization because ________ A. It determines the legal structure of the organization. B. It influences how an organization creates values and how it is perceived. C. It primarily affects the financial stability of the organization. D. It ensures that all organizations within the same industry operate identically. Answer: B 2. How does organizational culture impact two organizations within the same industry and location? A. They will have identical cultures due to their industry and location. B. They will develop their own unique cultures and display different ways of operating. C. They will be unable to create distinct cultures. D. They will be forced to adopt the culture of the most successful organization in their industry. Answer: B 3. Organizational culture refers to _____________ A. A collection of financial strategies. B. The specific collection of values and norms shared by people and groups in an organization. C. The technological advancements used by an organization. D. The physical environment in which an organization operates. Answer: B 4. Which of the following is NOT influenced by organizational culture? A. Performance and competitive advantage. B. Integration process of mergers and knowledge transfer. C. Shareholder values and adoption of the marketing concept. D. The physical location of the organization's headquarters. Answer: D 5. Usually the main influence on an organization's culture is _________________ A. The customers. B. The founder. C. The competitors. D. The government. Answer: B 6. How do the founder’s assumptions about success impact the organization? A. They form the foundation of the organization’s culture and influence its strategies and operations. B. They determine the financial stability of the organization. C. They have no significant impact on the organization’s operations. D. They are only relevant during the initial years of the organization. Answer: A 7. How can organizational culture impact an organization’s strategic actions? A. It can neither facilitate nor hinder strategic actions. B. It can only facilitate strategic actions. C. It can either facilitate or hinder strategic actions. D. It can only hinder strategic actions. Answer: C 8. Successful organizations develop cultures that emphasize which key groups of stakeholders? A. Customers, competitors, and suppliers. B. Customers, stakeholders, and employees. C. Employees, suppliers, and government. D. Shareholders, suppliers, and competitors. Answer: B 9. An organization consider ________________ when intending to create a fit between organizational strategy and culture A. Financial forecasts and market trends. B. Symbolic actions and substantive actions. C. Technological advancements and infrastructure. D. Legal regulations and compliance. Answer: B 10. Which of the following is NOT an element an organization must consider to align strategy with culture? A. Building a culture or spirit of high performance. B. Fostering a strategy supportive of climate and culture. C. Expanding physical office space. D. Taking symbolic and substantive actions. Answer: C 11. ___________ is essential for maintaining a fit between organizational strategy and culture A. Increasing marketing expenditure. B. Maintaining internal responsiveness and innovativeness. C. Outsourcing all operations. D. Expanding globally. Answer: B 12. What is one of the actions an organization must take to align its strategy with its culture? A. Ignoring internal politics. B. Enforcing ethical behavior. C. Focusing solely on financial growth. D. Limiting employee input. Answer: B 13. Organizational culture influence an organization by ________________ A. By determining its financial policies and market strategies. B. By influencing its philosophy, style, and behavior. C. By setting its legal framework and regulations. D. By defining its physical infrastructure. Answer: B 14. What must managers do to use culture to an organization’s advantage? A. Focus only on short-term financial gains. B. Understand the culture, transmit it to others, and sustain it by rewarding and promoting those who work towards maintaining it. C. Ignore the existing culture and create a new one. D. Ensure that culture is discussed only among top management. Answer: B 15. Which of the following is NOT included in organizational culture? A. Values B. Symbols C. Legal regulations D. Rituals and ceremonies Answer: C 16. Which element of organizational culture involves sharing beliefs and practices that shape how decisions are made? A. Cooperation B. Decision-making C. Perception D. Control Answer: B 17. How does transformational leadership differ from transactional leadership in shaping organizational culture? A. Transformational leadership focuses on exchanging rewards for performance, while transactional leadership changes the organizational culture. B. Transformational leadership works within the existing organizational culture, while transactional leadership inspires involvement in a mission. C. Transformational leadership inspires involvement in a mission and changes the organizational culture, while transactional leadership works within the existing culture by exchanging rewards for performance. D. Transformational leadership and transactional leadership are the same in shaping organizational culture. Answer: C 18. What characterizes adaptive cultures compared to inert cultures? A. Adaptive cultures discourage innovation and initiative, while inert cultures encourage and reward it. B. Adaptive cultures encourage and reward initiative taken by middle and lower-level managers, while inert cultures are conservative and do not value such initiative. C. Both adaptive and inert cultures encourage and reward initiative taken by middle and lower-level managers. D. Adaptive cultures focus on charismatic leadership, while inert cultures focus on transactional leadership. Answer: B 19. What does the concept of "power distance" refer to in organizational culture? A. The extent to which organizations prioritize financial performance. B. The extent to which less powerful members of institutions and organizations accept that power is distributed unequally. C. The extent to which organizations encourage innovation and creativity. D. The extent to which leaders use charisma to influence others. Answer: B 20. What does "uncertainty avoidance" refer to in the context of organizational culture? A. The extent to which organizations promote risk-taking behaviors. B. The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. C. The extent to which organizations reward performance with incentives. D. The extent to which leaders use transformational leadership to change culture. Answer: B 21. What does the concept of "individualism" emphasize in organizational culture? A. The importance of collective community values over personal interests. B. The tendency of people to look after themselves and their immediate family, valuing independence and autonomy. C. The focus on achieving high levels of organizational efficiency. D. The emphasis on creating a hierarchical structure within the organization. Answer: B 22. What does "masculinity" refer to in the context of organizational culture? A. A focus on cooperation and nurturing relationships within the organization. B. A culture where the dominant values are success, money, and material things. C. A culture emphasizing gender equality and inclusiveness. D. A focus on creative problem-solving and innovation. Answer: B