Test Bank Ch.13 | Developing Organizational Culture And

Package Title: Neubert 1e Testbank

Course Title: Organizational Behaviour

Chapter Number: 13

Shuffle: No

Multiple Choice

1. According to Edgar Schein, organizational culture is created by _____.

a) Economists

b) Leaders

c) Employees

d) Customers

Difficulty: Easy

Learning Objective: Discuss how organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic skills

Bloom’s: Knowledge

2. An organization is said to have a strong culture when:

a) There are high levels of information collection from organizational members.

b) There are higher levels of monitoring of activities by the organizations leaders.

c) There are high levels of consistency among the values held by organizational members.

d) There are higher levels of experimentation in the activities of the organization.

Difficulty: Medium

Learning Objective: Discuss how organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic skills

Bloom’s: Knowledge

3. An organization culture can be strengthened via:

a) Differentiation.

b) Socialization.

c) Monopolization.

d) Attrition.

Difficulty: Medium

Learning Objective: Discuss how organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic skills

Bloom’s: Knowledge

4. Which of the following is true of the attraction-selection-attrition framework?

a) It sheds light on how organizational cultures can contribute to economic stability.

b) It sheds light on how organizational cultures can contribute to a sense of uniformity.

c) It sheds light on how organizational cultures can contribute to market penetration.

d) It sheds light on how organizational cultures can contribute to production stability.

Difficulty: Medium

Learning Objective: Discuss how organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

5. Which of the following best describes a conventional clan culture organization?

a) It is any organization that acts like an extended family favouring teamwork, loyalty, commitment, and cohesion.

b) It is any organization that is held together by internal processes, formal procedures, policies, and rules.

c) It is any organization that has open systems that value risk-taking, innovating, and staying on the cutting edge of the market.

d) It is any organization that is dynamic in nature, similar to entrepreneurial set ups.

Level of Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

6. Which of the following is true of clan culture?

a) It is secretive and results-oriented.

b) It is a rule-based bureaucracy.

c) It is participative and comfortable.

d) It is monopolistic and controlling.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

7. What are the terms on which a clan culture defines its success?

a) Efficiency, cost of production, and dependable delivery

b) Market penetration and market share

c) Having the newest product and technology and being a product leader

d) Teamwork, human resource development, and concern for people

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Knowledge

8. John, the founder of Belgrade Corp., ensures that his employees are comfortable and are happy to come to work. He makes himself available to his employees no matter how busy he may be, and he often offers advice to employees who slack in their work. John states that his organization is successful because every individual and department works together as a team. Which of the following organizational cultures does Belgrade Corp. possess?

a) A clan culture

b) A market culture

c) An adhocracy culture

d) An inward-facing culture

Difficulty: Hard

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective thinking skills

Bloom’s: Application

9. Which of the following is true of a sustainable clan culture?

a) It places less emphasis on top-down organizational goals originating from leaders.

b) It focuses on benefitting the community by means of finance.

c) It promotes autocracy and centralization of organizational goals.

d) It focuses on increasing profits and reducing the turnover costs of the organization.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

10. A difference between a conventional clan culture and a sustainable clan culture is that:

a) A sustainable clan culture involves improving methods to increase profits, whereas a conventional clan culture involves benefitting the community by non-finance terms.

b) A sustainable clan culture involves benefitting the community by non-finance terms, whereas a conventional clan culture involves improving methods to increase profits.

c) A conventional clan culture promotes collaboratively chosen goals, whereas a sustainable clan culture has autocratic methods of choosing goals.

d) A conventional clan culture promotes collaboratively chosen goals, whereas a sustainable clan culture has more autocratic methods of choosing goals.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Analysis

11. Chris, the manager of Quad Corp., has been with the organization for more years than any other employee. He has been consistent in his service to the organization and has played a major part in the success of the organization. He monitors his subordinates closely, looking for inconsistencies and inefficiency. Quad Corp. makes a small profit, which is a result of its cost cutting to maintain a lower cost of production and avoidance of risk. Which of the following organizational cultures does Quad Corp. follow?

a) A clan culture

b) A market culture

c) A hierarchy culture

d) An adhocracy culture

Difficulty: Hard

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective thinking skills

Bloom’s: Application

12. Which of the following is true of hierarchy organization cultures?

a) They are rule-based bureaucracies.

b) They are much like an extended family.

c) They are based on self-managed systems.

d) They are based on informal procedures.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

13. Which of the following terms are the bases on which hierarchy organization cultures define their success?

a) Market penetration and market share

b) Efficiency, low-cost production, and dependable delivery

c) Teamwork, human resource development, and concern for people

d) Having the newest product and technology and being a product leader

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Comprehension

14. Which of the following is a difference between a conventional hierarchy culture and a sustainable hierarchy culture?

a) A conventional hierarchy culture focuses on a 360-degree feedback, whereas a sustainable hierarchy culture focuses on monitoring employees.

b) A conventional hierarch culture is more like an extended family, whereas a sustainable hierarchy culture is more autocratic.

c) A conventional hierarchy culture focuses on monitoring employees, whereas a sustainable hierarchy culture focuses on a 360-degree feedback.

d) A conventional hierarchy culture is more like an extended family, whereas a sustainable hierarchy culture is more autocratic.

Level of Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic skills

Bloom’s: Analysis

15. Which of the following best describes an adhocracy culture?

a) It is an organizational culture that treats members like an extended family and values developing human resources, loyalty, commitment, participation, and teamwork to meet organizational goals.

b) It is an organizational culture that is goal-focused and results-oriented; it emphasizes productivity as well as the organization’s position in the marketplace, while avoiding risk-taking.

c) It is an organizational culture that has a rule-based bureaucracy that values efficiency, low-cost production, predictability, low turnover, and formal procedures.

d) It is an organizational culture that promotes entrepreneurial open systems that value innovation, risk-taking, bringing new products and services to the market, and staying on the cutting edge of the market.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

16. Which of the following terms are the bases on which an adhocracy culture defines its success?

a) Teamwork, human resource development, and concern for people

b) Having the newest product and technology and being a product leader

c) Market penetration and market share

d) Efficiency, low-cost production, and dependable delivery

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

17. Harry, the CEO of Crescent Corp., expects the organization to be nothing less than the best in the industry. The organization is currently in the beginning stages of an innovation that is the first of its kind. Despite the risk involved, Harry pushes forward and states that there is no success without risk, and his attitude serves as a motivational factor to the workers. Which of the following organizational cultures does Crescent Corp. follow?

a) An inward-facing culture

b) An adhocracy culture

c) A mechanistic culture

d) A clan culture

Difficulty: Hard

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective thinking Skills

Bloom’s: Application

18. Which of the following is true of a conventional adhocracy culture?

a) It emphasizes instrumental organizational goals that enhance competitiveness.

b) It emphasizes innovations that enhance ecological well-being.

c) It emphasizes community benefits and treating people with dignity.

d) It emphasizes seeking new opportunities to enhance stakeholders’ well-being.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

19. Which of the following is a difference between a conventional adhocracy culture and a sustainable adhocracy culture?

a) A conventional adhocracy culture emphasizes community well-being, whereas a sustainable adhocracy culture emphasizes profit maximization.

b) A conventional adhocracy culture emphasizes community well-being, whereas a sustainable adhocracy culture emphasizes instrumental organizational goals to enhance competitiveness.

c) A conventional adhocracy culture emphasizes profit maximization, whereas a sustainable adhocracy culture emphasizes community well-being.

d) A conventional adhocracy culture emphasizes instrumental organizational goals to enhance competitiveness, whereas a sustainable adhocracy culture emphasizes profit maximization.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skill

Bloom’s: Analysis

20. Organizations that adopt a market culture can be best described as:

a) Entrepreneurial open systems that value innovation, risk-taking, bringing new products and services to the market, and staying on the cutting edge of the market.

b) Goal-focused and result-oriented cultures that emphasize productivity as well as the organization’s position in the market place.

c) Rule-based bureaucracies that value efficiency, low-cost production, predictability, low turnover, and formal procedures.

d) Extended families that value developing human resources, loyalty, commitment, participation, and teamwork to meet organizational goals.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

21. Ron, the CEO of Tristin Corp., has built the company from scratch. It now produces ten times as much as its competitors and is a market leader in the industry. With demand meeting supply and holding a high market share, Ron states that the organization is extremely successful with its high annual turnover. Tristin Corp. is an example of a(n) _____ culture.

a) Clan

b) Hierarchy

c) Market

d) Adhocracy

Difficulty: Hard

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective thinking Skills

Bloom’s: Application

22. Which of the following is true of sustainable market culture?

a) It values winning at all costs.

b) It values friendly competition.

c) It favours a more contemporary commodity market.

d) It places lesser value on innovation.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

23. In terms of job satisfaction, a clan culture’s members primarily favour:

a) Systems that ensure interpersonal fairness.

b) Systems that ensure organic fairness.

c) Systems that ensure distributive fairness.

d) Systems that ensure procedural fairness.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

24. In terms of job satisfaction, a market culture’s members primarily favour:

a) Systems that ensure procedural fairness.

b) Systems that ensure interpersonal fairness.

c) Systems that ensure distributive fairness.

d) Systems that ensure organic fairness.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

25. In terms of job satisfaction, a hierarchy culture’s members primarily favour:

a) Systems that ensure organic fairness.

b) Systems that ensure distributive fairness.

c) Systems that ensure interpersonal fairness.

d) Systems that ensure procedural fairness.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Comprehension

26. A difference between a hierarchy culture and a market culture is that:

a) a hierarchy culture’s members favour systems that ensure procedural fairness, whereas a market culture’s members favour systems that ensure distributive fairness.

b) a hierarchy culture’s members favour systems that ensure distributive fairness, whereas a market culture’s members favour systems that ensure procedural fairness.

c) a hierarchy culture’s members favour systems that ensure interpersonal fairness, whereas a market culture’s members favour systems that ensure distributive fairness.

d) a hierarchy culture’s members favour systems that ensure distributive fairness, whereas a market culture’s members favour systems that ensure interpersonal fairness.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Analysis

27. Which of the following is a difference between a market culture and a clan culture?

a) A market culture’s members favour systems that ensure interpersonal fairness, whereas a clan culture’s members favour systems that ensure distributive fairness.

b) A market culture’s members favour systems that ensure distributive fairness, whereas a clan culture’s members favour systems that ensure procedural fairness.

c) A market culture’s members favour systems that ensure procedural fairness, whereas a clan culture’s members favour systems that ensure distributive fairness.

d) A market culture’s members favour systems that ensure distributive fairness, whereas a clan culture’s members favour systems that ensure interpersonal fairness.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Analysis

28. A mechanistic structure is an organizational structure that:

a) Is characterized by relatively high levels of standardization, specialization, and centralization, and by a functional departmentalization.

b) Is characterized by relatively low levels of standardization, specialization, and centralization, and by a divisional departmentalization.

c) Emphasizes experimentation, sensitization, dignification, and participation among an organization’s internal stakeholders and operations.

d) Emphasizes experimentation, sensitization, dignification, and participation among an organization’s external stakeholders and operations.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

29. Which of the following is a difference between a mechanistic organizational structure and an organic organizational structure?

a) A mechanistic structure is decentralized, whereas an organic structure is highly centralized.

b) A mechanistic structure follows functional departmentalization, whereas an organic structure follows divisional departmentalization.

c) A mechanistic structure places low emphasis on standardization, whereas an organic structure places high emphasis on standardization.

d) A mechanistic structure follows divisional departmentalization, whereas an organic structure follows functional departmentalization.

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Analysis

30. Which of the following is a characteristic of a mechanistic organization structure?

a) Broad specialization

b) Relatively high centralization

c) Relatively low levels of standardization

d) Divisional departmentalization

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

31. Which of the following is a characteristic of an organic organization structure?

a) High centralization

b) Narrow specialization

c) Functional departmentalization

d) Low standardization

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

32. The CEO of Grey Inc. makes sure that the organization’s investors receive their dividends correctly and are well informed about the organization’s financial position. He accepts suggestions from the investors and, in several cases, has incorporated them into the organization’s systems. Grey Inc. is an example of an organization with a(n) _____ structure.

a) Inward-facing

b) Outward-mechanistic

c) Outward-facing

d) Differentiation

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Reflective thinking Skills

Bloom’s: Application

33. A(n) _____ is an organization structure that emphasizes experimentation, sensitization, dignification, and participation among an organization’s internal stakeholders and operations.

a) Inward-mechanistic structure

b) Outward-facing structure

c) Contingent structure

d) Inward-facing structure

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

34. A(n) _____ is an organizational structure that emphasizes experimentation, sensitization, dignification, and participation among an organization’s external stakeholders and operations.

a) Inward-facing structure

b) Outward-facing structure

c) External-mechanistic structure

d) Inward-sustained structure

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

35. The Regal Hotel invites its largest shareholders to a monthly meeting in which it briefs them on what is being done in the hotel and receives suggestions and insights from them on its systems and processes. The shareholders are invited to an elaborate dinner and the best service from the friendly staff. Which of the following organization structures is apparent in the Regal Hotel?

a) An inward-facing structure

b) An inward-mechanistic structure

c) An outward-facing structure

d) An outward-mechanistic structure

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Reflective thinking Skills

Bloom’s: Application

36. A routine technology may be characterized by:

a) Low analyzability and low variety.

b) High analyzability and low variety.

c) Low analyzability and high variety.

d) High analyzability and high variety.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Comprehension

37. A(n) _____ technology creates work with low analyzability and high variety.

a) Engineering

b) Routine

c) Non-routine

d) Craft

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

38. A(n) _____ technology has low analyzability and low variety.

a) Craft

b) Engineering

c) Routine

d) Non-routine

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

39. Which of the following is true of a routine technology?

a) It is related to an outward orientation and a market culture.

b) It is related to an outward orientation and an adhocracy culture.

c) It is related to an inward orientation and a hierarchical culture.

d) It is related to an inward orientation and a clan culture.

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

40. Which of the following is true of an engineering technology?

a) It is related to an inward orientation and a clan culture.

b) It is related to an inward orientation and a hierarchical culture.

c) It is related to an outward orientation and an adhocracy culture.

d) It is related to an outward orientation and a market culture.

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

41. Which of the following is true of a non-routine technology?

a) It is related to an inward orientation and a hierarchical culture.

b) It is related to an outward orientation and a market culture.

c) It is related to an inward orientation and a clan culture.

d) It is related to an outward orientation and an adhocracy culture.

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

42. A _____ strategy refers to increasing profit margins by keeping financial costs lower than those of competitors, while still maintaining price and quality at roughly the same level as competitors.

a) Cost leadership

b) Focus

c) Cost differentiation

d) Routine

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

43. Largo Inc. is one of the market leaders in the food industry. It ensures that everything it does in the production process is geared toward keeping production costs low. A price cut is then passed on to its customers. Despite its cost control drive, Largo Inc. still makes products that are on par with industry standards. The organization strategy that Largo Inc. has adopted is referred to as a _____ strategy.

a) Cost leadership

b) Differentiation

c) Minimizer

d) Transformer

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Reflective thinking Skills

Bloom’s: Application

44. Organizations that adopt a differentiation strategy:

a) Increase profit margins by keeping financial costs lower than those of competitors, while still maintaining price and quality at roughly the same level as competitors.

b) Offer unique products or services for which buyers are willing to pay a premium price.

c) Choose a small niche in the overall market and concentrate only on that niche market.

d) Offer products and services to buyers at a discounted price in a quest to obtain buyers.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Comprehension

45. A _____ strategy provides desired goods and services by redeeming previously discarded or underappreciated resources.

a) Minimizer

b) Transformer

c) Differentiation

d) Cost leadership

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

46. Noble Corp. has a process where it converts organic waste from expired food products into manure for plants, which it packages and sells to farmers. This is an example of a _____ strategy.

a) Cost leadership

b) Differentiation

c) Minimizer

d) Transformer

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology, and Strategy

AACSB: Reflective thinking Skills

Bloom’s: Application

47. Which of the following best describes a conventional simple type of organization?

a) It is a small organization with a clan culture, an organic structure, a craft technology, and a focused strategy.

b) It has a hierarchical culture, a mechanistic structure, routine technology, and a cost leadership strategy.

c) It has an adhocracy culture, an organic structure, a non-routine technology, and a differentiation strategy.

d) It is an organization with a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

48. _____ organizations are small with a clan culture, an inward-facing culture, a craft technology, and a focused strategy.

a) Conventional simple type

b) Voluntary defender type

c) Voluntary simplicity type

d) Conventional prospector type

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

49. Which of the following best describes the conventional defender type of organization?

a) It is an organization with a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy.

b) It has an adhocracy culture, an organic structure, a non-routine technology, and a differentiation strategy.

c) It has a hierarchical culture, a mechanistic structure, routine technology, and a cost leadership strategy.

d) It is a small organization with a clan culture, an organic structure, a craft technology, and a focused strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

50. Which of the following is a difference between a conventional simple type organization and a conventional defender type organization?

a) A conventional simple type organization has a clan culture, whereas a conventional defender type organization has an adhocracy culture.

b) A conventional simple type organization has an adhocracy culture, whereas a conventional defender type organization has a clan culture.

c) A conventional simple type organization has a hierarchy culture, whereas a conventional defender type organization has a clan culture.

d) A conventional simple type organization has a clan culture, whereas a conventional defender type organization has a hierarchy culture.

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

51. _____ organizations have a hierarchy culture, an inward-facing structure, a routine technology, and a minimizer strategy.

a) Conventional simple type

b) Sustainable defender type

c) Conventional prospector type

d) Sustainable analyzer type

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

52. Which of the following is a similarity between the voluntary simplicity type organization and the sustainable defender type organization?

a) Both have a clan culture.

b) Both have a hierarchy culture.

c) Both have an inward-facing structure.

d) Both have an outward-facing structure.

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

53. _____ organizations have an adhocracy culture, an organic structure, a non-routine technology, and a differentiation strategy.

a) Conventional prospector type

b) Sustainable defender type

c) Conventional simple type

d) Sustainable analyzer type

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

54. Sustainable Prospector type organizations:

a) Have a hierarchical culture, a mechanistic structure, a routine technology, and a cost leadership strategy.

b) Have a clan culture, an organic structure, a craft technology, and a focused strategy.

c) Have an adhocracy culture, an outward-facing structure, a non-routine technology, and a transformer strategy.

d) Have a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

55. Which of the following is a difference between a conventional prospector type organization and a conventional defender type organization?

a) A conventional prospector type organization has an adhocracy culture, whereas a conventional defender type organization has a clan culture.

b) A conventional prospector type organization has a hierarchy culture, whereas a conventional defender type organization has an adhocracy culture.

c) A conventional prospector type organization has a clan culture, whereas a conventional defender type organization has an adhocracy culture.

d) A conventional prospector type organization has an adhocracy culture, whereas a conventional defender type organization has a hierarchy culture.

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

56. Conventional analyzer type organizations:

a) Have an adhocracy culture, an organic structure, a non-routine technology, and a differentiation strategy.

b) Have a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy.

c) Have a market culture, a dual inward- and outward-facing structure, an engineering culture, and a dual minimizer and transformer strategy.

d) Have an adhocracy culture, an outward-facing structure, a non-routine technology, and a transformer strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

57. Which of the following is a difference between a conventional defender type organization and a conventional analyzer type organization?

a) A conventional defender type organization has an adhocracy culture, whereas a conventional analyzer type organization has a hierarchy culture.

b) A conventional defender type organization has a hierarchy culture, whereas a conventional analyzer type organization has a market culture.

c) A conventional defender type organization has a hierarchy culture, whereas a conventional analyzer type organization has an adhocracy culture.

d) A conventional defender type organization has a market culture, whereas a conventional analyzer type organization has a hierarchy culture.

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

58. _____ organizations have a market culture, a dual inward- and outward-facing structure, an engineering culture, and a dual minimizer and transformer strategy.

a) Sustainable analyzer type

b) Conventional prospector type

c) Sustainable defender type

d) Conventional simple type

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Comprehension

59. Which of the following is a difference between a sustainable prospector type organization and a sustainable analyzer type organization?

a) A sustainable prospector type organization has a dual minimizer and transformer strategy, whereas a sustainable analyzer type has a differentiation strategy.

b) A sustainable prospector type organization has a transformer strategy, whereas a sustainable analyzer type has a dual minimizer and transformer strategy.

c) A sustainable prospector type organization has a transformer strategy, whereas a sustainable analyzer type has a dual minimizer and differentiation strategy.

d) A sustainable prospector type organization has a differentiation strategy, whereas a sustainable analyzer type has a dual minimizer and transformer strategy.

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

60. Halo Corp. is led by its CEO, Henry, who has been with the organization since its inception. All the organization’s decisions are made collaboratively by the employees and management. Halo Corp. tries its best to ensure its employees have job satisfaction and happiness, providing them with adequate holidays and an annual paid leave. Production is done according to strict company policies and methods. Halo Corp. is an example of a _____ type of organization.

a) Conventional simple

b) Sustainable simple

c) Conventional defender

d) Sustainable defender

Difficulty: Hard

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Reflective thinking skills

Bloom’s: Application

61. Which of the following describes how organizational culture is being created?

a) Sustainable OB emphasizes that it’s not only the organization’s formal leaders who bring their values and assumptions about how the world works, but other members do the same.

b) Conventional OB emphasizes that it’s not only the organization’s formal leaders who bring their values and assumptions about how the world works, but other members do the same.

c) Sustainable OB emphasizes that it’s only the organization’s formal leaders who bring their values and assumptions about how the world works and what is important.

d) Conventional OB tends to embrace diverse voices and multiple forms of well-being that work together to create an organizational culture.

Difficulty: Medium

Learning Objective: Discuss how an organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic Skills

Bloom’s: Analysis

62. Organizational culture can be strengthened or weakened. Which of the following affects organizational culture?

a) Selection, socialization, or reward recognition

b) Personalities, backgrounds, or attributes

c) According to sustainable OB, only leaders can affect organizational culture

d) According to conventional OB, leaders and other members affect organizational culture

Difficulty: Medium

Learning Objective: Discuss how an organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic Skills

Bloom’s: Analysis

63. Which of the following applies to the strength or weakness of organizational culture?

a) Once a culture gets established in an organization’s structure, it no longer needs the active support of leaders to create and maintain it.

b) Once a culture gets established in an organization’s structure, it does need the active support of leaders to create and maintain it.

c) Flexible, balanced culture is more likely not to respond to the diverse requirements of its customers.

d) Culture change is not possible, even if the leader is able to successfully introduce systems and structures associated with a different culture.

Difficulty: Medium

Learning Objective: Discuss how an organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Reflective Thinking Skills

Bloom’s: Analysis

64. As a new employee, your manager is describing the organizational culture as an entrepreneurial, open system that values innovation, risk-taking, bringing new products and services to market, and staying on the cutting edge of the market. Which of the following applies to this description?

a) Adhocracy organizational culture

b) Market organizational culture

c) Hierarchy organizational culture

d) Clan organizational culture

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Communication Skills

Bloom’s: Analysis

65. You have been working for a company for a few years. You have noticed that many of its leaders have adapted to the rule-based bureaucracies that value efficiency, low-cost production, predictability, low turnover, and formal procedures. Which of the following describes this culture?

a) Hierarchy organizational culture

b) Clan organizational culture

c) Market organizational culture

d) Adhocracy organizational culture

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective Thinking Skills

Bloom’s: Analysis

66. Which type of culture seeks new opportunities to enhance multiple forms of well-being for multiple stakeholders; in other words, how to provide environmentally friendly products in a financially viable way that also benefits other stakeholders?

a) Sustainable adhocracy culture

b) Conventional market culture

c) Conventional clan culture

d) Sustainable hierarchy culture

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective Thinking Skills

Bloom’s: Analysis

67. Which of the following culture types is competitive, results oriented, and constantly seeking the best way to get the job done, and in which achieving goals in both productivity and market aggressiveness are the hallmarks of the organization?

a) Conventional market culture

b) Sustainable market culture

c) Conventional clan culture

d) Sustainable clan culture

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Reflective Thinking Skills

Bloom’s: Analysis

68. Which of the following applies to an organization structure that emphasizes experimentation, sensitization, dignification, and participation among an organization’s external stakeholders and operations?

a) Outward-facing structure

b) Inward-facing structure

c) Mechanistic structure

d) Organic structure

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Analysis

69. Which of the following organization types has a market culture, a dual inward- and outward-facing structure, and a dual minimizer and transformer strategy?

a) Sustainable analyzer type

b) Conventional defender type

c) Sustainable prospector type

d) Conventional prospector type

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

70. Which of the following applies to an organization type with a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy?

a) Conventional analyzer type

b) Sustainable prospector type

c) Conventional prospector type

d) Sustainable defender type

Difficulty: Medium

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Analysis

Fill In The Blanks

71. _____ refers to the set of shared values, norms, standards, and expectations that influence individuals, teams, and groups to interact with one another and work toward organizational goals.

Difficulty: Easy

Learning Objective: Discuss how organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

72. _____ are like extended families that value developing human resources, loyalty, commitment, participation, and teamwork to meet organizational goals.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

73. _____ are entrepreneurial open systems that value innovation, risk-taking, bringing new products and services to the market, and staying on the cutting edge of the market.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

74. A _____ culture places greater emphasis on goals like finding mutually beneficial ways to cooperate with other stakeholders and improve a community’s overall productivity.

Difficulty: Medium

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

75. Organizations where predictability is valued tend to have a _____ culture.

Difficulty: Medium

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

76. Organizations that offer tailor-made products and services are more profitable when they adopt a(n) _____ structure.

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

77. _____ refers to the combination of equipment and skills used to acquire, design, produce, and distribute goods and services.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

78. _____ is the frequency of unexpected, unfamiliar, or different activities involved in performing work.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

79. _____ type organizations have an adhocracy culture, an outward-facing structure, a non-routine technology, and a transformer strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

80. _____ type organizations have a market culture, a dual mechanistic and organic structure, an engineering technology, and a dual cost leader and differentiation strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

81. Regardless of how it has been created, an organization is considered to have a ______________ when there are high levels of consistency among the assumptions and values held by organizational members.

Difficulty: Easy

Learning Objective: Discuss how an organizational culture is created.

Section Reference: 13.1 Creating an Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

82. Once a culture gets established in an organization’s structures and systems, then no matter what kind of culture it is, it no longer needs the ______________ of leaders to create and maintain it.

Difficulty: Easy

Learning Objective: Discuss how an organizational culture is created

Section Reference: 13.1 Creating an Organizational Structure

AACSB: Analytic Skills

Bloom’s: Knowledge

83. The conventional __________________ describes an organization held together by internal processes, formal procedures, policies, and rules.

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

84. A conventional ______________ is a dynamic and entrepreneurial organization whose people are willing to take risks and “stick their necks out.”

Difficulty: Easy

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Analytic Skills

Bloom’s: Knowledge

85. An ______________________ has relatively low levels of standardization, specialization, centralization, and a divisional departmentalization.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

86. ____________________ is an organization structure that emphasizes experimentation, sensitization, dignification, and participation among an organization’s internal stakeholders and operations.

Difficulty: Easy

Learning Objective: Explain how to align organizational culture with structure, technology and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Analytic Skills

Bloom’s: Knowledge

87. ____________________ is a specific, coherent way that an organization’s culture and the four elements of its organization structure fit with each other and with the organization’s technology and strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

88. ________________________ organizations are small with a clan culture, an organic structure, a craft technology, and a focused strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

89. ___________________ organizations have a market culture, a dual inward-and outward-facing structure, an engineering culture, and a dual minimizer and transformer strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

90. _______________________________ organizations have a hierarchical culture, a mechanistic structure, a routine technology, and a cost leadership strategy.

Difficulty: Easy

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Analytic Skills

Bloom’s: Knowledge

Short Answer Questions

91. What is an organizational culture? Discuss briefly.

Difficulty: Hard

Learning Objective: Discuss how organizational culture is created.

Section Reference : 13.1 Creating an Organizational Culture

AACSB: Communication abilities

Bloom’s: Comprehension

92. Describe the basis on which various organizational culture members measure job satisfaction.

Difficulty: Hard

Learning Objective: Describe the key assumptions and values associated with four basic organizational cultures.

Section Reference: 13.2 Prioritizing a Form of Organizational Culture

AACSB: Communication abilities

Bloom’s: Comprehension

93. List and discuss briefly any two of the strategies stated by the sustainable OB theory.

The sustainable OB theory and practice highlight four parallel strategies: (1) minimizer, (2) transformer, (3) focus, and (4) combination of transformer and minimizer.

1) A minimizer strategy provides desired goods and services in a way that limits not just a firm’s financial costs but a variety of costs including financial, social, and ecological.

2) A transformer strategy provides desired goods and services by redeeming previously discarded or underappreciated resources.

3) A focus strategy targets a small niche such as a specific geographic area or a small product segment.

4) Some organizations may try to combine aspects of a minimizer strategy and a transformer strategy.

Difficulty: Hard

Learning Objective: Explain how to align organizational culture with structure, technology, and strategy.

Section Reference: 13.3 Aligning Culture with Structure, Technology and Strategy

AACSB: Communication abilities

Bloom’s: Comprehension

94. Give a brief description of the conventional prospector type of organization.

Difficulty: Hard

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Communication abilities

Bloom’s: Comprehension

95. Discuss briefly the conventional analyzer type or organization.

Difficulty: Hard

Learning Objective: Identify the four basic organizational types and how they should fit together to form a coherent whole.

Section Reference: 13.4 Combining the Pieces to Make Four Organizational Types

AACSB: Communication abilities

Bloom’s: Comprehension