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 The number of values a firm holds is not as important as how strongly held they are and how much organizational buy-in they generate.

A) True
B) False

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 Which of the following is a source from which a firm's culture develops?


A) The employees' skill set
B) The suppliers and customers
C) The organization's competitors
D) The founder of the organization

E) A) and D)
F) B) and C)

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 Analyze the ways in which a strong culture can affect a firm's performance.

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A strong, positive culture can significa...

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 When Ms. Chase interviews prospective employees, she shows them the office layout, the work space, the game room, and the professional awards displayed in the lobby. In doing so, she is sharing the _____ of the company's culture.


A) artifacts
B) values
C) beliefs
D) assumptions

E) None of the above
F) C) and D)

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 Which of the following is the best example of an organization with a strong culture?


A) TechPark is a company characterized by low levels of agreement among employees about what is valued in the organization.
B) The employees of Z-Gadgets, a manufacturing company, experience role ambiguity and therefore they require more coordination and monitoring.
C) The performance of ElectronicZone tends to fluctuate, wherein it's good under stable environments and very poor under turbulent environments.
D) Z-Furn's organizational culture is very flexible and can be easily changed in response to changing environments.

E) All of the above
F) B) and C)

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 Which of the following aspects of a leader's role in relation to culture is deemed critically important to an organization's success?


A) Acquire more companies and adopt all elements of the acquired company's weak culture.
B) Reward employees and managers with pay based on commitment and continue raising the bar.
C) Empower employees to make independent decisions and to find ways to improve operations.
D) Inspire managers and employees to work as they wish in an attempt to reduce their job-related stress.

E) B) and C)
F) A) and D)

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 Which of the following questions regarding culture should a manager address while acquiring a company?


A) Which culture is the best?
B) How socialized are the employees?
C) Is culture linked to performance?
D) Where are the similarities and differences between the merging cultures?

E) C) and D)
F) B) and D)

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 Which of the following is a characteristic of an organization's culture?


A) Culture is unchangeable.
B) Culture is unrelated to performance.
C) Culture is dynamic.
D) A company's culture can be easily copied by competitors.

E) All of the above
F) A) and D)

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 Strong cultures lead to increased performance in both stable and turbulent environments.

A) True
B) False

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 When a Ritz-Carlton employee went above and beyond what was asked to create a memorable experience for guests, he was


A) following formal, written organizational rules and guidelines.
B) disregarding organizational assumptions.
C) showing a lack of organizational commitment.
D) following the informal rules embodied in organizational culture.

E) C) and D)
F) B) and C)

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 Which of the following statements about strong cultures is true?


A) Strong cultures often result in greater role ambiguity.
B) Strong cultures allow a company to run more smoothly and quickly.
C) Strong cultures lead to decreased performance in stable environments.
D) In strong cultures, there are low levels of agreement among employees.

E) B) and C)
F) A) and B)

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 Once a behavior has become an assumption, it is even more visible.

A) True
B) False

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False

 When employees take risks that are not financially prudent in their quest for new innovation, they are likely following in the path of the company's


A) board of directors.
B) founders.
C) stockholders.
D) new CEO.

E) A) and B)
F) All of the above

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 Which of the following evolves over three stages-from compliance to identification to internalization?


A) Internal integration
B) Organizational commitment
C) Cultural socialization
D) External adaptation

E) None of the above
F) B) and D)

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 Evaluate the importance of culture in mergers and acquisitions.

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When one company acquires another, the acquiring company is getting the company's "resources, its processes, and its business model, with the priorities embedded therein." While the resources are easily observable, the company's processes and business model are largely embedded in the unwritten, unarticulated assumptions that make up the group's culture. Before an acquisition takes place, managers of acquiring companies must understand their own company's culture, including its strengths and weaknesses. Then the managers must understand the culture of the company to be acquired. Culture clashes sometimes occur when one company acquires another. In extreme cases, the end result of the incorporation of one company into another is that the culture of the acquired company gets completely replaced by the culture of the acquiring firm. Or, in some rare cases, it is the reverse where the acquired firm's culture becomes the dominant culture of the new entity. The most challenging instances are those where the aspired goal is to truly merge the two cultures into a new one. In this instance, leaders must carefully assess which elements of each organization's culture to incorporate into the new culture and then proceed to do it in a deliberate and thoughtful way. Regardless of which approach to culture is followed, it is important to make sure that the two entities have broadly compatible cultures such that employees of both organizations can be brought together under a common banner. 

 The employees of Konakoala Company are in high agreement about company values but have little passion for them. Konakoala's culture is


A) strong.
B) weak.
C) passive.
D) aggressive.

E) C) and D)
F) A) and B)

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 Discuss the role of founders in influencing a firm's culture.

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Founders have a variety of ways in which...

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 When employees of Hewlett-Packard had difficulty adjusting to a changing marketplace and a new CEO, they demonstrated a(n)


A) strong culture.
B) weak culture.
C) passive culture.
D) aggressive culture.

E) B) and C)
F) None of the above

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 _____ refer to the meanings that members of an organization attach to visible aspects of a firm.


A) Artifacts
B) Values and beliefs
C) Assumptions
D) Objectives

E) A) and D)
F) B) and C)

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 In formal organizations, the backbone of culture generally begins with a founder.

A) True
B) False

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True

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