Deck 8: Organizational Culture, Structure, and Design: Building Blocks of the Organization

Question 1

A clan culture is a type of dysfunctional organization that has little collaboration and cohesion among employees, thus worker job satisfaction and commitment are low.

Answer 1

False

Question 2

Productivity expert Odette Pollar recommends that managers delegate emergencies and any matters that are confidential or involve counseling of subordinates to qualified assistant managers.

Answer 2

False

Question 3

The organizational culture is also called corporate culture.

Answer 3

True

Question 4

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the corporate system.

Question 5

The formal and informal marketing systems of goods, services, and ideas, along with the customer relationships, that an organization sells are known as its organizational structure.

Question 6

North Community College strives to portray its image to citizens of the community through advertising and the actions of its faculty and staff that "community is our middle name." This act of trying to depict this image is a symbol.

Question 7

A market culture has a strong internal focus, and it concentrates on developing the business and marketing plans and helping employees market their product(s).

Question 8

Upper-, middle-, and lower-level management and nonmanagement workers are the layers of organizational culture.

Question 9

While a college student at the University of Texas, Michael Dell, the CEO and founder of Dell Computer, started a computer business in his dorm room. Michael Dell is a hero, as a person whose accomplishments embody the values of the organization "to empower countries, communities, customers and people everywhere to use technology to realize their dreams."

Question 10

The elements that drive an organization's culture also vary, representing the values of the founder, the industry and business environment, the national culture, the organization's vision and strategies, and the behavior of leaders.

Question 11

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as rites and rituals.

Question 12

In order to be more profitable by increasing sales, Thrifty Bank has an external focus, concentrating on strategic planning, risk taking, and flexibility over stability. This is an example of a hierarchy culture.

Question 13

Joe, the owner of Ace Product Sales, emphasizes a professional culture. He is strict when it comes to the way his employees dress in the office and while visiting customers, saying "Our image and success is based on how people view us, so the way we dress is a priority." In addition, Joe strongly believes in awarding his employees during monthly ceremonies. Joe said, "We reward our employees so they feel good about what they are doing, which is the mark of a professional organization." This is a good example of how organizational culture is expressed in observable artifacts.

Question 14

Just as human beings have a personality, organizations also have a "personality"-the product(s) they sell and the type(s) of market(s) they participate in.

Question 15

Global Oil has posters hanging in the break rooms, offices, and lobbies of its offices and drilling rigs globally that talk about trust, caring, and teamwork as the driving company values. At the same time, upper management advises all company managers to exhibit these values with employees and while dealing with all stakeholders. The values of trust, caring, and teamwork that Global Oil exhibits are examples of enacted values.

Question 16

The community values of an organization's culture that typically do not change are represented by an organization's basic assumptions.

Question 17

Philanthropists Bill and Melinda Gates recently spoke about their Global Development Division that works to help the world's poorest people lift themselves out of hunger and poverty. This is an example of a story, which is a narrative based on true events emphasizing a particular value.

Question 18

Oakland, California, productivity expert Odette Pollar proposed that "To do more in a day, you must do more and do everything faster."

Question 19

Dave, a graphic designer with Development Advertising, enjoys the flexibility of his management and its culture, which encourages risk taking, innovation, and creativity. Because it is a small company, Dave gets quick answers from his boss, which allows him and Development Advertising to quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture.

Question 20

Another type of culture that stems from a dysfunctional organization, with an internal focus and little flexibility, innovation, and creativity, is an adhocracy culture.

Question 21

The arrangement of having discrete parts of a task done by different people is known as division of labor.

Question 22

Sam is the general manager of a movie theater. In his position he makes decisions related to managing the theater, giving orders, and using the company resources. These rights given to Sam as a manager are known as power.

Question 23

A box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations is known as an organization chart.

Question 24

The typical three-part communication network between companies, their customers, and their suppliers is known as a formal vertical hierarchy.

Question 25

The AFL-CIO is an example of a for-profit organization, and the March of Dimes is an example of a nonprofit organization.

Question 26

In cases where the culture of an organization is strong, management must focus on the structure found in the company's rule book for orderliness and predictability that employees look to for guidance rather than through the company culture.

Question 27

The control mechanism utilized for making sure the right people do the right things at the right time is known as the mechanism for authority.

Question 28

An advantage of centralization is that procedures are not uniform and thus easier to control.

Question 29

As a middle or upper-level manager, a good way to stay in touch and resist isolation is to talk daily with senior managers, have "town meetings" with staffers several times a year, and employ management by walking around.

Question 30

When the new nurse was hired at the hospital, HR gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines, the formal lines of authority and the organization's official positions at the hospital. This is an organization chart.

Question 31

Changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors.

Question 32

The employees of XYZ Production enjoy a culture that has developed over time to become a model for local companies. A manager with XYZ mentioned that "Through a careful selection process while hiring and the strong culture we have developed, our employee turnover is one of the lowest our industry." This is an example of how low turnover can be a consequence of a good organizational culture.

Question 33

A recent study demonstrated that the eight types of organizational outcomes had significant and positive relationships with clan, adhocracy, and market cultures, especially with the outcomes of job satisfaction and organizational commitment.

Question 34

Dave, the HR manager, was meeting with Amy, the new controller. He mentioned to her that "If you glance left and right on the line of that chart, you will see horizontal specialization, the different jobs and work specializations." The chart that Dave was showing to Amy is an organization chart.

Question 35

According to Chester I. Barnard, an organization is defined as more than two people who try to collaborate on activities to meet an organization's goals.

Question 36

When Greg and his wife Amy bought a local landscaping business, they wanted to make sure their values became embedded in the organization. Greg and Amy's company, like any organization, can accomplish this by having rites and rituals, watching how they react to each crisis, role modeling, training, and coaching.

Question 37

Tom's Hardware has a simple organizational structure. There are no levels of middle management, as all employees report to the owner, Tom, or his assistant managers. Tom's has a thin organizational structure.

Question 38

Managers can change organizational culture by maintaining rites and rituals; giving rewards, promotions, and bonuses; setting company goals; and establishing performance-measurable and controllable activities.

Question 39

When employees and management work well together and they all believe in the mission and vision of upper management, this is known as unity of command.

Question 40

At Ace Sales, the CEO and HR director are line managers, and the special adviser is an example of a staff position.

Question 41

The tendency of the parts of an organization to disperse and fragment is known as differentiation.

Question 42

According to the competing values framework, clan, adhocracy, market, and hierarchy are ____.

A) organizational values
B) industry cultural standards
C) organizational norms
D) MBO levels of achievement
E) organizational cultures

Question 43

Jean-Paul, the store manager, was speaking with Patty, his new assistant manager, about the store's system of job relationships and whom she will report to and who will report to her. He said, "This structure is one of the things that motivates our workers to work together to achieve our company's goals." Jean-Paul was telling Patty about the store's _____.

A) organizational structure
B) organizational culture
C) code of ethics
D) diversity plan
E) analytics

Question 44

Two advantages of decentralization are that managers are encouraged to solve their own problems, and decisions are made more quickly, increasing the organization's flexibility and efficiency.

Question 45

Companies that have gone through a rough start-up period may decide to change their structures so that they are less mechanistic, with greater flexibility.

Question 46

Key IT Products has decided to retain its computer design, human resources, and marketing departments at its corporate office. But to cut costs and increase speed, it outsources many other functions such as production in Canada, accounting in a neighboring city, warehousing and distribution across town. Many components are manufactured overseas. This is an example of a matrix structure.

Question 47

Paulina works as an order-taker at a fast food restaurant. She does not cook food, or even package the final order, but inputs the order and takes payment. Paulina reports directly to the shift manager, and seldom interacts with the general manager. This is an example of a mechanistic organization.

Question 48

When there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks, this is known as integration.

Question 49

The clan culture has a(n) _____.

A) internal focus and values flexibility
B) strong external focus and values stability and control
C) external focus and values flexibility
D) internal focus and values stability and control
E) continual focus on efficiency, cost cutting, and outsourcing

Question 50

The simple structure is not often found in a firm's very early, entrepreneurial stages.

Question 51

Fine Oil uses a structure that includes both functional divisions, such as marketing and HR, and a divisional chain of command, such as the chemical and petroleum products divisions. For example, Glen, a salesperson, reports to both the marketing manager and the petroleum products manager as he starts to develop the Shell Oil account. Fine Oil is an example of a matrix structure.

Question 52

Becky, the CEO of an electronics retailer, is looking at the corporate structure that groups employees by specialties, such as store sales, HR, and accounting. This is an example of a functional structure.

Question 53

Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that binds the members of our company together." Adam was referring to his company's _____.

A) organizational MBO
B) organizational culture
C) code of ethics
D) diversity plan
E) analytics

Question 54

While figuring out how to save money for a bride who is having financial problems, Paula, the catering manager, asked her assistant, "What do you think is the best menu to offer under these particular circumstances?" Paula and her assistant are trying to use the contingency approach.

Question 55

Reliable Office Equipment established a structure where people are grouped by similar products, such as the copier and computer divisions. It also has groups that handle certain types of customers, such as those in education and government. Reliable uses a divisional structure.

Question 56

When managers from different functional divisions are brought together in cross-functional teams to solve particular problems, this is a team-based design.

Question 57

Authority is decentralized, tasks and rules are flexible, and employees are given a lot of freedom at Reliable Copy Products, where the sales representatives are not closely supervised. Reliable is an example of a mechanistic organization.

Question 58

According to productivity expert Odette Pollar, "To do more in a day, ____."

A) do not delegate, but be more focused
B) you must do more-not do everything faster
C) you must do more-not do everything slower
D) hire more employees
E) you must do less-not do everything faster

Question 59

Routine tasks and paperwork, as well as jobs that help your subordinates grow are __.

A) things that a manager should not delegate, according to Odette Pollar
B) tasks that should be delegated, according to Maslow
C) things that a manager should delegate, according to Odette Pollar
D) tasks that should not be delegated, according to Maslow
E) things that a manager should delegate, according to Frank Gilbreth

Question 60

Beautiful Homes builds new homes with products from numerous companies, such as garages from Home Depot and specially designed kitchens from a company in North Carolina. Beautiful Homes is an example of a modular structure.

Question 61

Elly and Sylvia, owners of Organic Foods, do not have a formal policy about dress code and work procedures because they see their company as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. These beliefs by the owners of Organic Foods represent the core values of their organization's culture, and are known as ____.

A) a code of ethics
B) basic assumptions
C) family codes
D) rites and rituals
E) observable artifacts

Question 62

Bob, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and to deliver the results that customers want. He pushes his managers to continually exceed their productivity goals, and stresses that profits take precedence over employee development and satisfaction. Bob feels "there is not enough time for training." However, his employees are regularly rewarded for their success in meeting company goals. This is an example of a(n) ____ culture.

A) clan
B) target-driven
C) adhocracy
D) market
E) hierarchy

Question 63

A hierarchy culture has a(n) ____.

A) internal focus and values stability and control
B) strong external focus and values stability and control
C) external focus and values flexibility
D) internal focus and values innovation and creativity
E) continual focus on efficiency, cost cutting, and outsourcing

Question 64

Symbols, stories, heroes, and rites and rituals are ways in which ____ is(are) most often transmitted to employees.

A) plans
B) goals
C) objectives
D) culture
E) ethics

Question 65

Espoused values are _____.

A) a narrative based on true events, which emphasize a particular value
B) physical manifestations of organizational culture
C) the values and norms actually exhibited in the community
D) explicitly stated values and norms preferred by an organization
E) profit and cost expectations stated in the business plan

Question 66

The AFL-CIO, an union, and the National Federation of Independent Business, are both voluntary groups with the purpose of advancing member interests. They are examples of _____.

A) mutual-benefit organizations
B) nonprofit organizations
C) volunteer co-ops
D) for-profit organizations
E) trade alliances

Question 67

Which of the following is an accurate conclusion from the "Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework's Theoretical Suppositions" study involving the culture of 1,000 companies?

A) An organization's culture does not matter.
B) Employees prefer market cultures.
C) Managers can use elements of these cultures to boost innovation and quality.
D) Changing the organizational culture generally boosts financial performance.
E) Adhocracy cultures produce better results.

Question 68

Voluntary collectives with the purpose of advancing their members' interests are known as ___.

A) mutual associations
B) nonprofit organizations
C) volunteer co-ops
D) for-profit organizations
E) mutual-benefit organizations

Question 69

IKEA employees are expected to work hard, inspired by an anecdote from their Swedish founder, Invar Kamprad, in which he told how he was berated by his father for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "'Now by jiminy, I'm going to start a new life,' he determined, setting the alarm for twenty to six and removing the 'off button.'" Invar Kamprad is an example of a ____.

A) trend
B) fable
C) hero
D) urban legend
E) key employee

Question 70

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency around and to do so, Della wants to bring back some old ideas that previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's chosen values, beliefs, and expectations through holding some of the old rites and rituals, retelling stories about company legends, bringing back training and coaching, and once again having quarterly reward ceremonies. The things Della wants to do are an example of ____.

A) a value stabilizing plan
B) decentralizing authority
C) embedding culture
D) MBO
E) TQM

Question 71

Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to be flexible." He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Technology Sales has a(n) _____.

A) market culture
B) goal-driven agenda
C) adhocracy culture
D) clan culture
E) focused approach

Question 72

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to ____.

A) write a strategic plan
B) perform competitive analysis
C) effect corporate change
D) conduct formal market research
E) follow legal requirements

Question 73

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ____.

A) observable artifacts of organizational culture
B) espoused values of organizational culture
C) enacted values of organizational culture
D) basic assumptions about organizational culture
E) invisible artifacts of that industry's culture and values

Question 74

Sometimes culture can be strong enough to take the place of an organization's ____.

A) performance standards
B) code of ethics
C) business plan
D) mission statement
E) formal rules and regulations

Question 75

Dr. Jones is retiring from the hospital and he wants to start an organization, Doctor Help, that will provide low-income individuals in the United States with medical assistance at no cost. Doctor Help is an example of a(n) ____.

A) for-profit organization
B) union
C) association
D) nonprofit organization
E) co-op

Question 76

According to Chester I. Barnard's classic definition, an organization is a ____.

A) formal system of task and reporting relationships that coordinate and motivate employees
B) means to increase collaboration and cooperation among groups of people
C) set of shared, taken-for-granted implicit assumptions that a group holds
D) system of consciously coordinated activities or forces of two or more people
E) type of analytical tool used for planning

Question 77

Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their employees' job satisfaction and commitment. At their café, Paul and Betsey have built a(n) ____.

A) market culture
B) goal-driven agenda
C) bureaucracy culture
D) clan culture
E) adhocracy culture

Question 78

HP founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company, which were clearly stated values of the firm's founders. This is an example of _____.

A) espoused values
B) focused values
C) enacted values
D) analytics
E) a diverse perspective

Question 79

Rites and rituals are ____.

A) company values included in the code of ethics
B) the activities and ceremonies that celebrate important occasions and accomplishments for an organization
C) objects, acts, or the quality that conveys meaning to others
D) a narrative based on true events that emphasize a particular value
E) company expectations for employees, such as working hard, ethically, and honestly

Question 80

Organizations that are formed to offer services to clients and not make a profit are ____, and those organizations that are formed to make money, or profits, by offering products or services are _____.

A) for-profit organizations; nonprofit organizations
B) unions; associations
C) nonprofit organizations; associations
D) co-ops; for-profit organizations
E) nonprofit organizations; for-profit organizations