MGT Chapter 3 Organizational Culture & Environment PDF

Management, 10e (Robbins) Chapter 3 Organizational Culture and Environment 1) In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure. Answer: FALSE Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 2) The current dom...

Management, 10e (Robbins) Chapter 3 Organizational Culture and Environment 1) In the symbolic view of management, managers are seen as directly responsible for an organization's success or failure. Answer: FALSE Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 2) The current dominant assumption in management theory suggests that managers are omnipotent. Answer: TRUE Diff: 2 Page Ref: 44 Topic: The Manager: Omnipotent or Symbolic? 3) The view of managers as omnipotent is consistent with the stereotypical picture of the take- charge business executive who can overcome any obstacle in carrying out the organization's objectives. Answer: TRUE Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 4) The symbolic view of management impact is useful in explaining the high turnover among college and professional sports coaches, who can be considered the "managers" of their teams. Answer: FALSE Diff: 3 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 5) In the omnipotent view of management, much of an organization's success or failure is due to forces outside management's control. Answer: FALSE Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 6) In the symbolic view of management, it is unreasonable to expect managers to have a significant effect on the organization's performance. Answer: TRUE Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 7) In the omnipotent view of management, a manager's role is to create meaning out of randomness, confusion, and ambiguity. Answer: FALSE Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 8) An organizational culture refers to a system of shared meaning. Answer: TRUE Diff: 2 Page Ref: 46 Topic: Organizational Culture 9) Organizational cultures influence how employees behave in an organization. Answer: TRUE Diff: 2 Page Ref: 46 Topic: Organizational Culture 10) Organizational culture is a perception, not reality. Answer: TRUE Diff: 2 Page Ref: 46 Topic: Organizational Culture 11) Presently, there is no method for analyzing or assessing organizational culture. Answer: FALSE Diff: 2 Page Ref: 46 Topic: Organizational Culture 12) Strong cultures have more influence on employees than do weak cultures. Answer: TRUE Diff: 2 Page Ref: 47 Topic: Organizational Culture 13) An increasing body of evidence suggests that strong cultures are associated with high organizational performance. Answer: TRUE Diff: 1 Page Ref: 47 Topic: Organizational Culture 14) Most organizations have very weak cultures. Answer: FALSE Diff: 2 Page Ref: 48 Topic: Organizational Culture 15) An organization's founder has little influence on its culture. Answer: FALSE Diff: 2 Page Ref: 49 Topic: Organizational Culture 16) Rituals are repetitive sequences of activities that express and reinforce the key values of an organization. Answer: TRUE Diff: 2 Page Ref: 50 Topic: Organizational Culture 2 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 17) Organizational stories typically contain a narrative regarding significant events or people. Answer: TRUE Diff: 2 Page Ref: 49 Topic: Organizational Culture 18) Employee stock options are one example of a material symbol that might represent organizational culture. Answer: FALSE Diff: 2 Page Ref: 50 Topic: Organizational Culture 19) The link between values and managerial behavior is fairly straightforward. Answer: TRUE Diff: 2 Page Ref: 51 Topic: Organizational Culture 20) A strong ethical culture is likely to have a powerful positive influence on employee behavior. Answer: TRUE Diff: 1 Page Ref: 53 Topic: Organizational Culture Skill: AACSB: Ethics 21) Low risk tolerance generally leads to high ethical standards within an organization. Answer: FALSE Diff: 2 Page Ref: 53 Topic: Organizational Culture Skill: AACSB: Ethics 22) Companies that allow their employees freedom tend to encourage innovative cultures. Answer: TRUE Diff: 2 Page Ref: 54 Topic: Organizational Culture 23) To encourage a customer-responsive culture, organizations should formalize and enforce strict customer service policies. Answer: FALSE Diff: 2 Page Ref: 55 Topic: Organizational Culture 24) Customer service employees tend to provide better customer service when they are very clear about their employee roles. Answer: TRUE Diff: 2 Page Ref: 55 Topic: Organizational Culture 3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 25) To increase customer responsiveness, organizations should hire employees who are outgoing and friendly. Answer: TRUE Diff: 2 Page Ref: 55 Topic: Organizational Culture 26) The part of the environment directly related to achievement of an organization's goals is the specific environment. Answer: TRUE Diff: 2 Page Ref: 58 Topic: The Environment 27) The general environment refers to environmental factors operating inside an organization. Answer: FALSE Diff: 1 Page Ref: 58 Topic: The Environment 28) Environmental uncertainty can be divided into two dimensions: degree of trust and degree of integration. Answer: FALSE Diff: 2 Page Ref: 61 Topic: The Environment 29) Because certainty is a threat to an organization's effectiveness, managers try to minimize it. Answer: FALSE Diff: 1 Page Ref: 62 Topic: The Environment 30) The term suppliers includes providers of financial and labor inputs. Answer: TRUE Diff: 2 Page Ref: 58 Topic: The Environment 31) Economic conditions are part of the organization's specific environment. Answer: FALSE Diff: 2 Page Ref: 58 Topic: The Environment 32) Which of the following represent the two views of managerial impact on the success or failure of the organization? A) omnipotent and symbolic B) omnipotent and reflective C) symbolic and interactive D) reflective and interactive Answer: A Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 4 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 33) The omnipotent view of management states that ________. A) the top manager is the only person in charge B) managers are directly responsible for an organization's success or failure C) that there is only one boss in the organization, and she or he is responsible for delegating orders D) managers have little or no responsibility for an organization's success or failure Answer: B Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 34) The ________ view of management is consistent with the stereotypical picture of the take- charge business executive who can overcome any obstacle in carrying out the organization's objectives. A) omnipotent B) symbolic C) functional D) systems Answer: A Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 35) Which of the following most accurately reflects the symbolic view of management? A) Managers are directly responsible for an organization's success or failure. B) Managers have little or no responsibility for an organization's success or failure. C) External forces are directly responsible for an organization's success or failure. D) Employees are directly responsible for an organization's success or failure. Answer: C Diff: 1 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 36) Internal constraints that restrict a manager's decision options ________. A) exist within every organization B) do not exist, as all managers have decision-making discretion C) exist only to the extent that upper management imposes them D) exist only to the extent that followers won't do as they are told Answer: A Diff: 3 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 37) The current dominant assumption in management theory suggests ________. A) a balanced view of managers as symbolic and omnipotent B) an emphasis on the view that managers are symbolic C) an emphasis on the view that managers are omnipotent D) that both the symbolic and omnipotent views are obsolete Answer: C Diff: 2 Page Ref: 44 Topic: The Manager: Omnipotent or Symbolic? 5 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 38) According to the symbolic view, managers have a(n) ________ effect on substantive organizational outcomes. A) neutral B) controlling C) limited D) unlimited Answer: C Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 39) The symbolic view of management is based upon the belief that managers symbolize ________. A) control and influence B) ambiguity and confusion C) stakeholders' interests D) decisions of top management Answer: A Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 40) In reality, managers are most accurately viewed as ________. A) dominant over an organization's environment B) neither helpless nor all powerful C) powerless to influence an organization's performance D) ultimately responsible for organizational outcomes Answer: B Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 41) The culture of an organization is analogous to the ________ of an individual. A) skills B) personality C) motivation D) ability Answer: B Diff: 1 Page Ref: 46 Topic: Organizational Culture 42) All organizational cultures consist of each of the following except ________. A) shared values B) principles C) innovation D) traditions Answer: C Diff: 3 Page Ref: 46 Topic: Organizational Culture 6 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 43) Strong cultures ________. A) are found in organizations with high employee turnover B) have a minimal influence on employee decision making C) can be found in all organizations that exist D) have a greater influence on employees than do weak cultures Answer: D Diff: 2 Page Ref: 46 Topic: Organizational Culture 44) Employees in organizations with strong cultures ________. A) are more committed to their organizations B) are more likely to leave their organizations C) are more willing to perform illegal activities D) are more likely to follow directives from peers Answer: A Diff: 2 Page Ref: 48 Topic: Organizational Culture 45) Which of the following phrases is associated with the definition of organizational culture? A) individual response B) shared meaning C) diversity of thought D) explicit directions Answer: B Diff: 1 Page Ref: 46 Topic: Organizational Culture 46) Which of the following is not considered to be a dimension of organizational culture? A) attention to detail B) people orientation C) purchasing policies D) aggressiveness Answer: C Diff: 2 Page Ref: 46 Topic: Organizational Culture 47) Which of the following dimensions of organizational culture is defined as the degree to which an organization's actions and decisions emphasize maintaining the status quo? A) stability B) outcome orientation C) team orientation D) innovation and risk taking Answer: A Diff: 2 Page Ref: 47 Topic: Organizational Culture 7 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 48) A company whose managers focus on results, rather than how results are achieved, most likely possesses a high degree of which of the following? A) outcome orientation B) people orientation C) team orientation D) aggressiveness Answer: A Diff: 2 Page Ref: 47 Topic: Organizational Culture 49) Sony Corporation's focus on product innovation is an example of which of the following dimensions of organizational culture? A) attention to detail B) people orientation C) outcome orientation D) aggressiveness Answer: C Diff: 2 Page Ref: 46 Topic: Organizational Culture 50) Which of the following most accurately reflects the difference between strong cultures and weak cultures? A) Strong cultures tend to encourage employee innovation, while weak cultures do not. B) Weak cultures are found in most organizations, whereas strong cultures are relatively rare. C) Strong cultures have less of an influence on employee behavior than do weak cultures. D) Company values are more deeply held and widely shared in strong cultures than in weak cultures. Answer: D Diff: 2 Page Ref: 46 Topic: Organizational Culture 51) Corporate ________ are repetitive sequences of activities that express and reinforce the values of an organization. A) languages B) rituals C) symbols D) ceremonies Answer: B Diff: 1 Page Ref: 50 Topic: Organizational Culture 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 52) Which of the following represents the most significant ways through which corporate cultures are transmitted to employees? A) rituals, myths, competitions, and language B) symbols, rituals, language, and business systems C) stories, rituals, symbols, and language D) language, stories, rituals, and rewards Answer: C Diff: 2 Page Ref: 50 Topic: Organizational Culture 53) When employees at Microsoft use terms such as work judo, eating your own dog food, and flat food, they are using organizational ________. A) languages B) rituals C) symbols D) ceremonies Answer: A Diff: 1 Page Ref: 50 Topic: Organizational Culture 54) Most organizations have ________ cultures. A) very weak B) weak to moderate C) moderate D) moderate to strong Answer: D Diff: 2 Page Ref: 48 Topic: Organizational Culture 55) The original source of an organization's culture usually ________. A) is shared among the first workers hired into the organization B) is formulated by the board of directors when the organization is formed C) identifies what the organization is successful doing D) reflects the vision or mission of the organization's founder Answer: D Diff: 2 Page Ref: 48 Topic: Organizational Culture 56) Organizational ________ typically contain narratives about significant events or people in the organization. A) stories B) rituals C) charts D) material symbols Answer: A Diff: 2 Page Ref: 50 Topic: Organizational Culture 9 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 57) All of the following are mentioned in the textbook as examples of material symbols except ________. A) employee dress attire B) size of employee offices C) availability of stock options D) reserved parking spaces for certain employees Answer: C Diff: 2 Page Ref: 50 Topic: Organizational Culture 58) The link between organizational values and managerial behavior is ________. A) usually uncertain B) fairly straightforward C) often highly complex D) relatively dynamic Answer: B Diff: 2 Page Ref: 51 Topic: Why Do Managers Plan? 59) In learning an organization's specific language, members are displaying their ________. A) willingness to communicate with the organization's stockholders B) confidence that they will soon be promoted to greater responsibility C) willingness to help preserve the culture of the organization D) consent to share material symbols with the other members of the organization Answer: C Diff: 3 Page Ref: 50 Topic: Organizational Culture 60) An organization's culture affects managers by ________. A) providing them with additional decision-making power B) restricting them from disciplining certain employees C) encouraging them to bend or even break company rules D) establishing what is appropriate and expected behavior Answer: D Diff: 2 Page Ref: 51 Topic: Organizational Culture 61) A company that primarily values a strong sense of purpose through meaningful work has a(n) ________ organizational culture. A) spiritual B) customer-responsive C) ethical D) innovative Answer: A Diff: 2 Page Ref: 55-56 Topic: Current Organizational Culture Issues Skill: AACSB: Ethics 10 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 62) Which of the following is most likely to have a highly ethical organizational culture? A) a highly aggressive, competitive business B) a company with high risk tolerance C) a business that focuses strictly on outcomes D) a business with outgoing and friendly employees Answer: B Diff: 2 Page Ref: 53 Topic: Current Organizational Culture Issues Skill: AACSB: Ethics 63) To encourage ethical cultures, managers should ________. A) enforce strict discipline policies B) encourage employees to compete C) act in their own self-interest D) serve as visible role models Answer: D Diff: 2 Page Ref: 53 Topic: Current Organizational Culture Issues Skill: AACSB: Ethics 64) Conscientious employees with good listening skills are highly valuable for building a(n) ________ organizational culture. A) ethical B) innovative C) customer-responsive D) spiritual Answer: C Diff: 2 Page Ref: 55 Topic: Current Organizational Culture Issues 65) An innovative organizational culture is characterized by all of the following characteristics except ________. A) freedom B) conformity C) debates D) risk taking Answer: B Diff: 2 Page Ref: 53 Topic: Current Organizational Culture Issues 66) Workplace spirituality has become important in the contemporary workplace because it helps to ________. A) reduce unemployment rates B) boost company profits C) restore a sense of community D) bring religion into business Answer: C Diff: 2 Page Ref: 55 Topic: Current Organizational Culture Issues 11 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 67) Which of the following is most characteristic of an organization with a strong spiritual culture? A) Employees are encouraged to express themselves. B) Such companies experience high employee turnover. C) Employees are rewarded for innovation and risk taking. D) Employees are required to join organized religions. Answer: A Diff: 2 Page Ref: 55 Topic: Current Organizational Culture Issues 68) Which of the following best characterizes the relationship between spirituality and business profitability? A) Evidence shows that spirituality and business profitability are incompatible. B) Limited evidence suggests that spirituality may be compatible with profitability. C) Research shows that workplace spirituality constrains employee performance. D) High productivity has been extensively documented in spiritual workplaces. Answer: B Diff: 3 Page Ref: 56 Topic: Current Organizational Culture Issues 69) External environment refers to ________. A) forces outside the organization that limit the organization's performance B) factors and forces outside the organization that affect the organization's performance C) forces and institutions inside the organization that affect the organization's performance D) forces inside the organization that increase the organization's performance Answer: B Diff: 3 Page Ref: 57 Topic: The Environment 70) According to the textbook, the ________ environment includes those forces that have a direct and immediate impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals. A) general B) specific C) secondary D) forward Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 71) An organization's specific environment ________. A) is unique and changes with conditions B) is the same regardless of the organization's age C) is determined by the top level of management D) must be quantified to establish its existence Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 12 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 72) The main forces that make up an organization's specific environment are ________. A) suppliers, legislators, customers, and employees B) customers, suppliers, competitors, and pressure groups C) employees, competitors, pressure groups, and regulators D) suppliers, employees, competitors, and legislators Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 73) Organizations exist to meet the needs of which of the following constituencies? A) customers B) legislators C) suppliers D) competitors Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 74) When you think of an organization's suppliers, you ________. A) know that they are the main customers of the organization B) typically think of governments that pass the laws the organization must follow C) know that they are located close to the organization itself D) typically think in terms of organizations that provide materials and equipment Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 75) Each of the following is considered an organizational supplier except providers of ________. A) financial inputs B) labor inputs C) materials D) political pressure Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 76) The Internet is having an impact on determining whom an organization's competitors are because it has ________. A) defined the common markets for organizations B) made certain products invaluable to customers C) virtually eliminated the need for shopping malls D) virtually eliminated geographic boundaries Answer: D Diff: 3 Page Ref: 60 Topic: The Environment 13 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 77) For a company such as Walt Disney World in Florida, a bank would be an example of what kind of factor in a specific environment? A) competitor B) supplier C) special-interest group D) government agency Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 78) Which of the following is not an example of a specific environmental factor? A) population demographics B) political conditions C) federal laws D) all of the above Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 79) For organizations such as hospitals, which hire nurses, the labor union and the local labor market are examples of which of the following specific environmental factors? A) competitor and supplier B) customer and pressure group C) both are examples of suppliers D) both are examples of pressure groups Answer: C Diff: 3 Page Ref: 58 Topic: The Environment 80) Typically, the specific organizational environment includes which of the following? A) economic factors B) political conditions C) technological factors D) competitors Answer: D Diff: 1 Page Ref: 58 Topic: The Environment 81) UPS represents which of the following to the U.S. Postal Service? A) competitor B) supplier C) customer D) government agency Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 14 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 82) The general environment factor of economic conditions consists of all of the following except ________. A) legislation recently passed by Congress B) interest rates C) changes in disposable income D) stock market fluctuations Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 83) Sociocultural conditions consist of ________. A) demographic profiles of an organization's suppliers B) legal issues as determined by court decisions C) the level of unemployment and real economic incomes of workers D) changing expectations and values within society Answer: D Diff: 3 Page Ref: 60 Topic: The Environment 84) To a national broadcast network such as NBC, your home DVD player is considered a ________. A) customer B) supplier C) special-interest group D) competitor Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 85) Groups such as Mothers Against Drunk Driving (MADD) are examples of what factor in the specific external environment? A) competitors B) pressure groups C) customers D) government agencies Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 86) Typically, the general organizational environment includes which of the following? A) political conditions B) business plans C) stakeholders D) suppliers Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 15 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 87) Compared to the specific environment, which of the following is an accurate statement about the general environment of an organization? A) It has less impact on the organization's operations. B) It has more impact on the organization's operations. C) It has about the same impact on an organization's operations. D) It is predominantly the concern of upper management. Answer: A Diff: 3 Page Ref: 58 Topic: The Environment 88) Which of the following is not a component of an organization's general environment? A) economic conditions B) political conditions C) social conditions D) industry conditions Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 89) Interest rates, inflation rates, and stock market fluctuations are all examples of what factor in an organization's general environment? A) economic B) political C) social D) technological Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 90) The Americans with Disabilities Act of 1990 is an example of a ________. A) sociolegal condition B) political/legal condition C) political/sociological condition D) sociocultural condition Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 91) A decrease in contributions from the public to the United Way charity is most likely the result of which of the following general environmental factors? A) political B) social C) technological D) economic Answer: D Diff: 2 Page Ref: 58 Topic: The Environment 16 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 92) Which of the following groups includes individuals who were born between the years 1946- 1964? A) the Depression group B) the World War II group C) the baby boomers D) Generation X Answer: C Diff: 1 Page Ref: 60 Topic: The Environment 93) The members of which of the following groups are behaving in fundamentally different ways that are likely to greatly impact organizations and managers? A) the Depression group B) the World War II group C) the baby boomers D) Generation Y Answer: D Diff: 2 Page Ref: 60 Topic: The Environment 94) Automation represents an example of a(n) ________ general environmental factor. A) technological B) demographic C) political/legal D) economic Answer: A Diff: 2 Page Ref: 60 Topic: The Environment Skill: AACSB: Technology 95) Which of the following has been the most rapidly changing component in an organization's general environment? A) global B) economic C) social D) technological Answer: D Diff: 2 Page Ref: 60 Topic: The Environment Skill: AACSB: Technology 17 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 96) Which of the following best represents a global general environmental factor? A) increased surveillance B) education levels C) electronic meetings D) international markets Answer: D Diff: 2 Page Ref: 60 Topic: The Environment Skill: AACSB: Globalizations 97) Which of the following are the two dimensions of environmental uncertainty? A) degree of change and degree of complexity B) degree of change and degree of volume C) degree of complexity and degree of impact D) degree of impact and degree of timing Answer: A Diff: 2 Page Ref: 61 Topic: The Environment 98) If the components of an organization's environment change frequently, the organization is operating in a ________ environment. A) disruptive B) diverse C) dynamic D) difficult Answer: C Diff: 3 Page Ref: 61 Topic: The Environment 99) Managers try to minimize ________ because it threatens organizational effectiveness. A) product development B) uncertainty C) price charges D) the number of suppliers Answer: B Diff: 2 Page Ref: 61 Topic: The Environment 100) ________ are any constituencies in an organization's external environment that are affected by the organization's decisions and actions. A) Stockholders B) Pressure groups C) Suppliers D) Stakeholders Answer: D Diff: 2 Page Ref: 62 Topic: The Environment 18 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 101) Degree of ________ refers to the number of components in an organization's environment and the extent of the knowledge that the organization has about those components. A) stability B) openness C) complexity D) transition Answer: C Diff: 2 Page Ref: 61 Topic: The Environment 102) The first step of managing external stakeholder relationships is to identify whom the stakeholders are. The second step is to ________. A) determine what specific approach should be used to manage the stakeholder relationship B) determine what the courts might do when a stakeholder files a claim against the organization C) determine what particular interests or concerns these stakeholders might have D) determine how many stakeholders there are in each stakeholder group Answer: C Diff: 3 Page Ref: 63 Topic: The Environment Apex Construction (Scenario) Apex Construction has hired Wendell Phillips to provide management consulting for the organization. Wendell's first assignment involves helping the company to improve productivity by recommending ways to strengthen managers supervisory skills. 103) Wendell notices that the company's top executives share a belief that managers are directly responsible for the organization's success or failure. This belief reflects a(n) ________ view of management. A) traditional B) omnipotent C) standard D) symbolic Answer: B Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 104) Wendell interviews many middle-level managers and discovers that they share a different view of management. These individuals believe that external factors constrain managers' influence over outcomes. The mid-level managers have a ________ view of management. A) traditional B) omnipotent C) standard D) symbolic Answer: D Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 19 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Corporate Takeover (Scenario) Todd works for SeaLan Tech, an environmental consulting firm that has just been purchased by Zerex, Inc., a biomedical research organization. Based on his early encounters with the new upper management from Zerex, Todd feels that SeaLan is a "lower-key, friendlier" organization. He is concerned that the new company will eliminate SeaLan's old culture, and he does not like the prospects. 105) If you were talking with Todd and asked him what the term culture meant, he would reply that, basically, it is ________. A) the formal rules of an organization B) the nationality of the workers in the company C) a system of shared meaning D) a system that reflects diversity and respect for differences Answer: C Diff: 1 Page Ref: 46 Topic: Organizational Culture 106) Todd is concerned with the degree to which managers focus on results or outcomes rather than techniques and the processes used to achieve those outcomes. He is concerned with ________. A) stability B) aggressiveness C) team orientation D) outcome orientation Answer: D Diff: 2 Page Ref: 47 Topic: Organizational Culture 107) Todd notices that management is very concerned with the effects of outcomes on people within the organization. This is referred to as ________. A) stability B) aggressiveness C) team orientation D) people orientation Answer: D Diff: 2 Page Ref: 47 Topic: Organizational Culture 108) Todd is assessing the organization's ________, the degree to which organizational activities emphasize maintaining the status quo in contrast to growth. A) stability B) aggressiveness C) team orientation D) outcome orientation Answer: A Diff: 2 Page Ref: 47 Topic: Organizational Culture 20 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 109) Todd has been learning the seven dimensions of organizational culture. Which of the following is not one of those seven dimensions? A) stability B) aggressiveness C) member orientation D) outcome orientation Answer: C Diff: 2 Page Ref: 47 Topic: Organizational Culture Changing Organizational Culture (Scenario) Mary has been asked by the company president to change the organizational culture to reflect the company's new organizational goals. As executive vice president, she certainly understands the goals, but is really not sure that she understands what to do about the culture. 110) Mary asked employees if they knew what constituted "good employee behavior." She found that very few understood, and most had a variety of ideas. This is one indication that her company ________. A) has a strong culture B) has a weak culture C) has no culture D) must have high turnover Answer: B Diff: 2 Page Ref: 48 Topic: Organizational Culture 111) Mary also found out that in order to build a strong new culture, she should do all but which of the following? A) hire employees who fit in with the company's culture B) develop socialization practices to build culture C) encourage a high turnover rate among employees D) have management make organizational values clear Answer: C Diff: 3 Page Ref: 48 Topic: Organizational Culture 112) Mary was surprised to find that most organizational cultures are ________. A) weak B) weak to moderate C) moderate to strong D) strong Answer: C Diff: 2 Page Ref: 48 Topic: Organizational Culture 21 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Environmental Constraints (Scenario) It is safe to say that managers do not have complete control over organizational outcomes; the environment has a significant impact. However, there are different environmental factors that shape a managers work life. 113) As a manager, if you were working in an industry that was dependent on rapidly changing software technologies, with many new companies competing for the same customers, you would be working in what kind of environment? A) general B) static C) stable D) dynamic Answer: D Diff: 2 Page Ref: 61 Topic: The Environment Skill: AACSB: Technology 114) Political conditions, which include attitudes that officials hold toward specific industries, fall within an organization's ________ environment. A) global B) internal C) competitive D) general Answer: D Diff: 2 Page Ref: 58 Topic: The Environment The Election (Scenario) At the present time, your organization is faced with many changes. One of these is the election of a new president and Congress. Another concerns new requests from customers for changes to the look of your product design. A third involves changes in the ages and education levels of your customer base. Your customers have also recently expressed a desire to have your product manufactured using a newly discovered type of plastic. 115) The changes in the presidency and Congress represent which of the following environmental factors for your organization? A) general environment B) specific environment C) pressure group D) customers Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 22 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 116) The change in how customers want your product to look in design is an example of which of the following types of factors? A) political/legal B) specific environment C) global D) demographic Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 117) The changes in the ages and education levels of your customers are an example of which of the following conditions? A) economic B) political/legal C) demographic D) technological Answer: C Diff: 2 Page Ref: 58 Topic: The Environment The New Medical Product (Scenario) You are a manager of marketing for your company. The company is planning to introduce a new medical product that has stirred up controversy among certain public groups. Members of your research and development department have pointed out that the company has a history of introducing controversial products successfully. Members of your marketing staff respond by emphasizing that this product is more controversial than any product introduced previously. 118) The public groups that oppose the introduction of the new medical product are known as which of the following? A) service groups B) defense groups C) pressure groups D) informal groups Answer: C Diff: 2 Page Ref: 58 Topic: The Environment 119) The company plans to introduce the new product into a particular segment of its market. This segment represents which of the following to the organization as a whole? A) general environment B) specific environment C) political/legal condition D) sociocultural condition Answer: B Diff: 3 Page Ref: 58 Topic: The Environment 23 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Operating Within the Environment (Scenario) The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organizations environment. 120) If the mortgage interest rates increase, this would be an example of changing ________ in your general environment. A) economic conditions B) political conditions C) competition D) social conditions Answer: A Diff: 2 Page Ref: 58 Topic: The Environment 121) The customer component of your specific environment most likely consists of ________. A) mortgage brokers B) home buyers and sellers C) real estate brokers D) mortgage lenders Answer: B Diff: 2 Page Ref: 58 Topic: The Environment 122) A real estate certification program would be considered as which of the following for your organization? A) customer B) pressure group C) supplier D) demographic group Answer: C Diff: 2 Page Ref: 58 Topic: The Environment 24 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chris Co. (Scenario) Mr. Taylor has been hired by Chris Co., a manufacturer of precious metal jewelry. Chris Co. has been having significant issues with some of their major stakeholders. For instance, they have been receiving poor quality products from their suppliers and complaints from their customers. Mr. Taylor has been hired to help resolve these issues and to help build a plan for improving the company's relationships with its major stakeholders. 123) In addition to suppliers and customers, each of the following might also be considered Chris Co. stakeholders except ________. A) communities and unions B) competitors and media C) all of the above D) none of the above Answer: D Diff: 2 Page Ref: 62 Topic: The Environment 124) Mr. Taylor assesses how critical each stakeholder is to the organization's decisions and actions. This represents the ________ step of managing the company's relationships with its stakeholders. A) first B) second C) third D) final Answer: C Diff: 1 Page Ref: 63 Topic: The Environment 125) Mr. Taylor identifies whom the organization's stakeholders are. This is the ________ step in the process of managing stakeholder relationships. A) first B) second C) third D) final Answer: A Diff: 1 Page Ref: 63 Topic: The Environment 126) Mr. Taylor decides how to manage the external stakeholder relationships. This represents the ________ step of managing the company's stakeholder relationships. A) first B) second C) third D) final Answer: D Diff: 1 Page Ref: 63 Topic: The Environment 25 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 127) In a short essay, differentiate between the symbolic view and the omnipotent view of management. Include specific examples of each view to support your answer. Answer: a. The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's goals. This omnipotent view, of course, isn't limited to business organizations. We can also use it to help explain the high turnover among college and professional sports coaches, who can be considered the "managers" of their teams. Coaches who lose more games than they win are fired and replaced by new coaches who, it is hoped, will correct the inadequate performance. In the omnipotent view, when organizations perform poorly, someone has to be held accountable regardless of the reasons, and in our society, that "someone" is the manager. Of course, when things go well, we need someone to praise. So managers also get the credit even if they had little to do with achieving positive outcomes. b. The symbolic view says that a manager's ability to affect outcomes is influenced and constrained by external factors. In this view, it's unreasonable to expect managers to significantly affect an organization's performance. Instead, an organization's results are influenced by factors managers don't control such as the economy, customers, governmental policies, competitors' actions, industry conditions, control over proprietary technology, and decisions made by previous managers. The "symbolic" view is based on the belief that managers symbolize control and influence. How? By creating meaning out of randomness, confusion, and ambiguity or by trying to innovate and adapt. Because their effect on organizational outcomes is limited, a managers actions often involve developing plans, making decisions, and engaging in other managerial activities, which are done for the benefit of stockholders, customers, employees, and the public. However, the actual part that managers play in organizational success or failure is minimal. Fleetwood Enterprises of Riverside, California, represents one example that might be seen through the lens of the symbolic view of management. Fleetwood is the number one U.S. maker of recreational vehicles and the number three maker of manufactured housing. In a period of about 6 weeks from late August 2005, the company's stock price rose 29 percent. Also, Joanne Foist, director of marketing services, confirmed that FEMA (Federal Emergency Management Agency) had bought much of the company's retail stock after Hurricanes Katrina and Rita. Were these outcomes the result of managers' decisions and actions, or was it beyond their control? The symbolic view would suggest the latter. Diff: 2 Page Ref: 45 Topic: The Manager: Omnipotent or Symbolic? 26 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 128) In a short essay, define organizational culture and discuss its three primary implications. Answer: What is organizational culture? It's the shared values, principles, traditions, and ways of doing things that influence the way organizational members act. In most organizations, these important shared values and practices have evolved over time and determine, in large degree, what employees perceive about their organizational experiences and how they behave in the organization. When doing their work, the organizational culture the "way we do things around here" influences what employees can do and how they view, define, analyze, and resolve problems and issues. Our definition of culture implies three things. First, culture is a perception. Individuals perceive the organizational culture on the basis of what they see, hear, or experience within the organization. Second, even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms. That's the shared aspect of culture. Finally, organizational culture is descriptive. It's concerned with how members perceive the organization, not with whether they like it. It describes rather than evaluates. Diff: 2 Page Ref: 46 Topic: Organizational Culture 129) In a short essay, identify and define the seven dimensions that make up an organization's culture. Answer: a. Innovation and risk taking degree to which employees are encouraged to be innovative and to take risks. b. Attention to detail degree to which employees are expected to exhibit precision, analysis, and attention to detail. c. Outcome orientation degree to which managers focus on results or outcomes rather than on how these outcomes are achieved. d. People orientation degree to which management decisions take into account the effects on people in the organization. e. Team orientation degree to which work is organized around teams rather than individuals. f. Aggressiveness degree to which employees are aggressive and competitive rather than cooperative. g. Stability degree to which organizational decisions and actions emphasize maintaining the status quo. Diff: 2 Page Ref: 47 Topic: Organizational Culture 27 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 130) List the factors that influence the strength of an organization's culture and discuss the impact of a strong culture on employees. Answer: Factors: a. size of the organization b. how long it has been around c. how much turnover there has been among employees d. intensity with which the culture was originated e. high agreement regarding what is important The more employees accept the organization's key values and the greater their commitment to those values, the stronger the culture is. Strong cultures have a greater influence on employees than do weak cultures. One study found that employees in organizations with strong cultures were more committed to their organization than were employees in organizations with weak cultures. The organizations with strong cultures also used their recruitment efforts and socialization practices to build employee commitment. And an increasing body of evidence suggests that strong cultures are associated with high organizational performance. It's easy to understand why a strong culture enhances performance. After all, when values are clear and widely accepted, employees know what they're supposed to do and what's expected of them so they can act quickly to take care of problems, thus preventing any potential performance decline. However, the drawback is that the same strong culture also might prevent employees from trying new approaches especially during periods of rapid change. Diff: 2 Page Ref: 47 Topic: Organizational Culture 28 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 131) How is culture transmitted to employees of an organization? In a short essay, explain the four primary transmission modalities and provide an example of each. Answer: Culture is transmitted to employees in a number of ways. The most significant are stories, rituals, material symbols, and language. a. Stories: Organizational "stories" typically contain a narrative of significant events or people including such things as the organization's founders, rule breaking, reactions to past mistakes, and so forth. For instance, managers at Nike feel that stories told about the company's past help shape the future. Whenever possible, corporate "storytellers" (senior executives) explain the company's heritage and tell stories that celebrate people getting things done. b. Rituals: Corporate rituals are repetitive sequences of activities that express and reinforce the values of the organization, what goals are most important, and which people are important. The "Passing of the Pillars" is an important ritual at Boston Scientific's facility near Minneapolis, for example. When someone has a challenging and tough project or assignment, they're "awarded" a small two-foot high plaster-of-Paris pillar to show that they've got support from all their colleagues. c. Material Symbols: Material symbols convey to employees who is important, the degree of equality desired by top management, and the kinds of behavior that are expected and appropriate. Examples of material symbols include the layout of an organization's facilities, how employees dress, the types of automobiles provided to top executives, and the availability of corporate aircraft. At WorldNow, a provider of Internet technology to local media companies, an important material symbol is an old dented drill that the founders purchased for $2 at a thrift store. The drill symbolizes the company's culture of "drilling down to solve problems." d. Language: Many organizations and units within organizations use language as a way to identify and unite members of a culture. By learning this language, members attest to their acceptance of the culture and their willingness to help preserve it. For instance, Microsoft employees have their own unique vocabulary: the term work judo is used to mean "the art of deflecting a work assignment to someone else without making it appear that you're avoiding it. Diff: 2 Page Ref: 50 Topic: Organizational Culture 29 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 132) In a short essay, discuss how culture constrains managers. Include specific examples to support your answer. Answer: Because an organization's culture constrains what they can and cannot do, it is particularly relevant to managers. These constraints are rarely explicit. They're not written down. It's unlikely that they'll even be spoken. But they're there, and all managers quickly learn what to do and not to do in their organization. For instance, you won't find the following values written down anywhere, but each comes from a real organization. Look busy even if you're not. If you take risks and fail around here, you'll pay dearly for it. Before you make a decision, run it by your boss so that he or she is never surprised. We make our product only as good as the competition forces us to. What made us successful in the past will make us successful in the future. If you want to get to the top here, you have to be a team player. The link between values such as these and managerial behavior is fairly straightforward. Take, for example, a so-called "ready-aim-fire" culture. In such an organization, managers will study proposed projects first and analyze them endlessly before committing to them. However, in a "ready-fire-aim" culture, managers take action and then analyze what has been done. Or, say an organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings. Managers are unlikely to pursue programs that are innovative, risky, long term, or expansionary. For organizations that value and encourage workforce diversity, the organizational culture and thus managers' decisions and actions, will be supportive of diversity efforts. In an organization whose culture conveys a basic distrust of employees, managers are more likely to use an authoritarian leadership style than a democratic one. Why? The culture establishes for managers what is appropriate and expected behavior. At St. Luke's advertising agency in London, for example, a culture shaped by the value placed on freedom of expression, a lack of coercion and fear, and a determination to make work fun influences the way employees work and the way that managers plan, organize, lead, and control. The organization's culture is reinforced even by the office environment which is open, versatile, and creative. Diff: 2 Page Ref: 51 Topic: Organizational Culture 30 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 133) In a short essay, explain the reasons behind the increasing importance of workplace spirituality in recent years. How can managers best promote workplace spirituality within their organizations? Answer: Workplace spirituality seems to be important now for a number of reasons: a. Employees are looking for ways to counterbalance the stresses and pressures of a turbulent pace of life. b. Contemporary lifestyles underscore the lack of community that many people feel. People are looking for involvement and connection. c. Aging baby boomers are reaching mid-life and looking for something meaningful in their lives, something beyond the job. d. Individuals desire to integrate their personal life values with their professional lives. e. For some, formalized religion hasn't worked. These individuals continue to look for anchors to replace a lack of faith and to fill a growing sense of emptiness. To increase workplace spirituality within their organizations, managers can work to promote five primary characteristics: a. Strong sense of purpose: Spiritual organizations build their cultures around a meaningful purpose. To build spiritual organizations, managers should emphasize that while profits are important, they're not the primary values of the organization. b. Focus on individual development: Spiritual organizations recognize the worth and value of individuals. To increase workplace spirituality, managers should seek to create cultures in which employees can continually grow and learn. c. Trust and openness: Spiritual organizations are characterized by mutual trust, honesty, and openness. To promote spirituality, managers shouldn't be afraid to admit mistakes. They should be upfront with employees, customers, and suppliers. d. Employee empowerment: The high-trust climate in spiritual organizations, when combined with the desire to promote learning and growth, leads to managers empowering employees to make most work-related decisions. To promote spirituality, managers should trust employees to make thoughtful and conscientious decisions. e. Toleration of employee expression: Spiritually based organizations don't stifle employee emotions. To promote workplace spirituality, managers should create environments in which employees can express their moods and feelings without guilt or fear of reprimand. Diff: 3 Page Ref: 55 Topic: Organizational Culture 31 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 134) In a short essay, describe what is meant by the specific and general environments within which organizations operate. Provide one example of each type of environment. Answer: a. The specific environment of an organization includes those external forces that have a direct impact on managers' decisions and actions and are directly relevant to the achievement of the organization's goals. The main forces that make up the specific environment are customers, suppliers, competitors, and pressure groups. One component of the specific environment is suppliers. For Walt Disney World resorts in Florida, suppliers include organizations that sell materials and equipment, such as soft drinks, computers, and food. But the term suppliers also includes providers of financial and labor inputs. Stockholders, banks, insurance companies, pension funds, and other similar organizations are needed to ensure a continuous supply of capital. Labor unions, colleges and universities, occupational associations, trade schools, and local labor markets are sources of employees. b. An organization's general environment includes the broad economic, political/legal, sociocultural, demographic, technological, and global conditions that affect the organization. Although these external factors don't affect organizations to the extent that changes in the specific environment do, managers must consider them as they plan, organize, lead, and control. One example of general environmental factor is political/legal conditions. Legislation represents one element of such conditions. Federal, state, and local laws, as well as global and other country laws and regulations, influence what organizations can and cannot do. Some federal legislation has significant implications. For example, the Americans with Disabilities Act of 1990 (ADA) was designed to make jobs and facilities more accessible to people with disabilities, whether they are customers or employees. Diff: 2 Page Ref: 58 Topic: Organizational Culture 32 Copyright © 2009 Pearson Education, Inc. 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