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CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

Test Correlation Table               Question Types/Level of Difficulty

   LEARNING OBJECTIVES                         Easy                   Moderate                   Difficult

1. Describe the core elements of a   TF           4, 7                   1, 5, 8                   2, 3, 6
culture.
                                     MC    2, 4, 6, 9, 11, 14,    3, 7, 10, 12, 22, 25,    1, 5, 8, 13, 20, 26, 27
                                            15, 16, 17, 18,              28, 29
                                             19, 21, 23, 24

                                     ES            —                       —                         1

2. Compare and contrast four types   TF        9, 10, 13             11, 12, 16, 17                14, 15
of organizational culture.
                                     MC     33, 36, 37, 41,      30, 32, 34, 35, 38, 39,     31, 44, 45, 48, 52
                                                43, 50             40, 42, 46, 49, 51

                                     ES            —                     2, 3, 5                     4

3. Discuss several types of          TF          18, 23          19, 20, 22, 25, 26, 28          21, 24, 27
subcultures that may exist in
organizations.
                                     MC     53, 57, 60, 61,      55, 59, 62, 68, 71, 73,   54, 56, 58, 64, 66, 69,
                                            63, 65, 67, 72                 75                        70

                                     ES            —                       —                         6

4. Describe several activities for   TF          33, 38          29, 31, 34, 35, 36, 39,         30, 32, 37
successfully managing diversity.                                           40

                                     MC     76, 78, 84, 85,      77, 79, 80, 81, 82, 83,       86, 91, 92, 95
                                              90, 96, 98         87, 88, 89, 93, 94, 97

                                     ES            —                       —                        7, 8




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        True/False Questions

        Learning Objective 1

1.      The elements of a culture include symbols, language, and narratives.

        ANSWER: T, Knowledge, Moderate, p. 512

2.      At Southwest Airlines, “fun first” is a norm shared by the airline’s employees and
        customers alike.

        ANSWER: F, Knowledge, Difficult, p. 513

3.      A value comprises multiple beliefs that are compatible and supportive of one another.

        ANSWER: F, Knowledge, Difficult, p. 513

4.      The most powerful organizational socialization is through consistent role modeling,
        teaching, coaching, and enforcement by coworkers and managers.

        ANSWER: T, Knowledge, Easy, p. 514

5.      Symbols are the simplest and most basic observable form of cultural expression.

        ANSWER: T, Knowledge, Moderate, p. 514

6.      Narratives are based on legends that may not necessarily be entirely true.

        ANSWER: T, Knowledge, Difficult, p. 516

7.      Taboos are culturally forbidden behaviors.

        ANSWER: T, Knowledge, Easy, p. 517

8.      Ceremonies are elaborate and formal activities designed to generate strong feelings.

        ANSWER: T, Knowledge, Moderate, p. 517

        Learning Objective 2

9.      No one type of culture is ideal for every situation.

        ANSWER: T, Knowledge, Easy, p. 518

10.     The long-term concerns of a bureaucratic culture are predictability, efficiency, and
        stability.

        ANSWER: T, Knowledge, Easy, p. 518




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11.     Peer pressure to adhere to important norms is strong in a clan culture.

        ANSWER: T, Knowledge, Moderate, p. 518

12.     Tradition, loyalty, personal commitment, and extensive socialization are attributes of an
        entrepreneurial culture.

        ANSWER: F, Knowledge, Moderate, pp. 518–519

13.     Social relations are important and officially emphasized and rewarded in a market
        culture.

        ANSWER: F, Knowledge, Easy, p. 519

14.     Entrepreneurial cultures are only appropriate for the start-up phase of organizations. A
        different culture is more appropriate later.

        ANSWER: F, Knowledge, Difficult, p. 519

15.     Oracle is known for their nurturing of an entrepreneurial culture.

        ANSWER: F, Knowledge, Difficult, p. 519

16.     One reason for maintaining an established organizational culture is to create a
        stronger, more consistent organization as the external environment changes.

        ANSWER: F, Knowledge, Moderate, p. 520

17.     It is not unusual to find several subcultures within a single organization.

        ANSWER: T, Knowledge, Moderate, p. 520

        Learning Objective 3

18.     Departments and divisions within companies may have their own subcultures.

        ANSWER: T, Knowledge, Easy, p. 521

19.     Incompatibility of cultures is the most frequently cited reason for the failure of mergers.

        ANSWER: T, Knowledge, Moderate, p. 521

20.     In organizations that operate in several countries, subcultures that reflect these
        national differences are likely to exist even when there is a common organizational
        culture.

        ANSWER: T, Knowledge, Moderate, pp. 522–523

21.     The subculture of western China is the most individualistic of the main local cultures.

        ANSWER: F, Knowledge, Difficult, p. 523



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22.     Nearly 1 in 10 workers in the United States today is foreign born—the lowest rate in 70
        years.

        ANSWER: F, Knowledge, Moderate, pp. 523–524

23.     Employees within each generation tend to share a subculture distinct from the
        subcultures of other generations.

        ANSWER: T, Knowledge, Easy, p. 525

24.     The Generation Xers have become known for challenging authority and creating open
        lines of communication.

        ANSWER: F, Knowledge, Difficult, p. 525

25.     Diversity campaigns have finally eliminated most of the formation of organizational
        subcultures based on gender.

        ANSWER: F, Knowledge, Moderate, p. 525

26.     Many managers believe that the presence of distinct subcultures in an organization can
        be beneficial and should be valued.

        ANSWER: T, Knowledge, Moderate, p. 526

27.     The experience of African Americans working in the accounting profession was much
        different back in the 1980s when very few were made partners, compared to today
        when about 15% of all partners are African Americans.

        ANSWER: F, Knowledge, Difficult, p. 526

28.     A multicultural organization is one that tries to ensure that the dominant culture does
        not exploit the other subcultures.

        ANSWER: F, Knowledge, Moderate, p. 527

        Learning Objective 4

29.     In the 1980s the term diversity was used to refer to the number of women and
        minorities in an organization.

        ANSWER: T, Knowledge, Moderate, p. 527

30.     Language is an area of coverage in the diversity initiatives of less than 50 percent of
        surveyed companies.

        ANSWER: T, Knowledge, Difficult, p. 527

31.     The creation of economic value is not a major goal for organizations that are
        concerned about their management of cultural diversity.

        ANSWER: F, Knowledge, Moderate, p. 528


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32.     The basic goal of affirmative action is to compensate for past injustices.

        ANSWER: F, Knowledge, Difficult, p. 528

33.     The most common methods used to assess organizational culture are employee
        surveys and focus groups.

        ANSWER: T, Knowledge, Easy, p. 529

34.     The actual cost to Texaco for racial discrimination exceeded the $175 million
        settlement to former employees.

        ANSWER: T, Knowledge, Moderate, p. 530

35.     Texaco’s management established themselves as leaders in the industry for
        recognizing early the importance of developing cultural diversity in its organization.

        ANSWER: F, Application, Moderate, p. 530

36.     Some types of homogeneity may be appropriate for managers to effectively operate
        the organization and should be retained rather than replaced by diversity.

        ANSWER: T, Knowledge, Moderate, p. 530

37.     Non-U.S. citizens who work in the United States is one of the employee groups created
        by GM, designed to promote cultural diversity.

        ANSWER: T, Knowledge, Difficult, p. 531

38.     Planned organizational change usually follows an evolutionary—not revolutionary—
        path.

        ANSWER: T, Knowledge, Easy, p. 531

39.     Awareness training is aimed at ensuring that employees understand the meaning of
        the actions the company will take when someone complains of being harassed.

        ANSWER: T, Knowledge, Moderate, p. 534

40.     It is not unusual for the implementation of cultural diversity in an organization to
        actually result in heightened conflict within the team.

        ANSWER: T, Knowledge, Moderate, p. 537




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       Multiple Choice Questions
       Preview
1.     At the firm of GSD&M, the norm associated with “Your butt is connected to your head”
       is __________.
       a. immersion
       b. integrity
       c. responsibility
       d. fun

       ANSWER: A, Knowledge, Difficult, p. 512

2.     __________ is(are) so important to the cofounder of GSD&M in Austin, TX, that he has
       campaigned to have the city add it to their official slogan.
       a. Fun
       b. Freedom
       c. Ideas
       d. Curiosity

       ANSWER: C, Knowledge, Easy, p. 512

       Learning Objective 1

       The Elements of a Culture
3.     Which of the following is not considered one of the basic elements of a culture?
       a. shared values
       b. shared assumptions
       c. shared knowledge
       d. shared norms

       ANSWER: C, Knowledge, Moderate, p. 512

4.     A __________ is the unique pattern of shared assumptions, values, and norms that
       shape the socialization, language, symbols, narratives, and practices of a group of
       people.
       a. microclimate
       b. social system
       c. community
       d. culture

       ANSWER: D, Knowledge, Easy, p. 512

5.     Which of the following is not an observable element of culture?
       a. narratives
       b. norms
       c. symbols
       d. socialization

       ANSWER: B, Knowledge, Difficult, p. 513




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6.      To what does Herb Kelleher, Chairman of Southwest Airlines, attribute the success of
        the airline?
        a. on-time flights
        b. low airfares
        c. customer service
        d. the culture of the organization

        ANSWER: D, Knowledge, Easy, p. 512

7.      Culture has everything to do with Southwest Airlines’ success, according to founder
        Herb Kelleher, because __________.
        a. culture gives meaning and purpose to employees
        b. costs are already as low as they can go
        c. competitors can’t copy its culture
        d. all of the above

        ANSWER: C, Knowledge, Moderate, p. 512

8.      Karen Patel has recently begun a new job at a large engineering firm. She realizes
        that the new organization differs from her old organization about what the notion of
        effectiveness means. What element of culture does this illustrate?
        a. shared assumptions
        b. shared values
        c. shared socialization
        d. shared symbols

        ANSWER: A, Application, Difficult, pp. 512–513

9.      __________ are the underlying thoughts and feelings that members of a culture take
        for granted and believe to be true.
        a. Organizational symbols
        b. Shared assumptions
        c. Organizational realities
        d. Attitudes

        ANSWER: B, Knowledge, Easy, p. 513

10.     All of the following are true statements concerning shared assumptions in a culture
        except:
        a. at Linux, software programmers share the assumption that software code should be
            openly available to anyone.
        b. GSD&M assumes that creativity needs to be stimulated by the external
            environment.
        c. companies differ in their assumptions about strategy.
        d. all of the above

        ANSWER: D, Knowledge, Moderate, pp. 512–513




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11.     A __________ is a basic belief about something that has considerable importance and
        meaning to individuals and is stable over time.
        a. shared assumption
        b. ritual
        c. value
        d. symbol

        ANSWER: C, Knowledge, Easy, p. 513

12.     At   Southwest Airlines, __________ is a shared value.
        a.    having fun
        b.    working overtime
        c.    competitiveness
        d.    on-time flights

        ANSWER: A, Knowledge, Moderate, p. 513

13.     A European company has recently announced its intention to open a new office in the
        United States. Management of the company is aware that the cornerstones of private
        enterprise and individual rights are believed to be mutually supportive of each other.
        What element of culture is this company trying to understand?
        a. shared assumptions
        b. shared socialization
        c. shared values
        d. shared symbols

        ANSWER: C, Application, Difficult, p. 513

14.     __________ is a process by which new members are brought into a culture.
        a. Deindividuation
        b. Selection
        c. Brainwashing
        d. Socialization

        ANSWER: D, Knowledge, Easy, p. 514

15.     The most powerful way to socialize people into a culture is through consistent use of all
        of the following except __________.
        a. role modeling
        b. teaching
        c. coaching
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 514




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16.     A __________ is anything visible that can be used to represent an abstract shared
        value or something having special meaning.
        a. shared symbol
        b. shared assumption
        c. shared language
        d. shared practice

        ANSWER: A, Knowledge, Easy, p. 514

17.     __________ are the simplest and most basic observable form of cultural expression of
        an organization.
        a. Labels
        b. Mottos
        c. Symbols
        d. Mascots

        ANSWER: C, Knowledge, Easy, p. 514

18.     Prudential Life Insurance uses the Rock of Gibraltar to represent continuity and
        dependability, which have great meaning to both employees and customers. The Rock
        is a(n) __________ of Prudential.
        a. value
        b. mascot
        c. icon
        d. symbol

        ANSWER: D, Application, Easy, p. 514

19.     Setpoint’s alignment between company objectives and the way employees thought
        about their work can be attributed to __________.
        a. culture
        b. community
        c. social norms
        d. shared knowledge

        ANSWER: A, Knowledge, Easy, p. 515

20.     At   Setpoint, “the board” symbolized __________.
        a.    mistakes made by a failed management team
        b.    open and trusting relationships between managers and employees
        c.    a culture where quality is never at the point where it can be considered adequate
        d.    customer relationships

        ANSWER: B, Knowledge, Difficult, p. 515




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21.     From a cultural perspective, __________ is (are) a shared system of vocal sounds,
        written signs, and/or gestures used to convey special meanings among members of a
        culture.
        a. coalitions
        b. phenomenology
        c. symbols
        d. language

        ANSWER: D, Knowledge, Easy, p. 515

22.     Commerce Bank’s use of a “Wow Department” indicates their understanding of the link
        between __________ and culture.
        a. socialization
        b. symbols
        c. language
        d. values

        ANSWER: C, Knowledge, Moderate, p. 516

23.     __________ is (are) the unique stories, sagas, legends, and myths in a culture.
        a. Coalitions
        b. Symbols
        c. Jargon
        d. Narratives

        ANSWER: D, Knowledge, Easy, p. 516

24.     A(n) __________ describes the unique accomplishments and beliefs of the
        organization and its leaders over time, usually in heroic and romantic terms.
        a. icon
        b. reflection
        c. alliteration
        d. narrative

        ANSWER: D, Knowledge, Easy, p. 516

25.     A new salesperson for Mary Kay recently learned how Mary Kay Ash founded her
        successful company while struggling to support herself and her children as a single
        parent. What element of culture does this describe?
        a. shared practices
        b. shared narratives
        c. shared assumptions
        d. shared language

        ANSWER: B, Application, Moderate, p. 516




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26.     What is the most complex but observable cultural form?
        a. shared socialization
        b. shared assumptions
        c. shared narratives
        d. shared practices

        ANSWER: D, Knowledge, Difficult, p. 517

27.     In the entertainment industry, at the annual ceremonies that bestow the Oscar,
        Grammy, and Emmy awards, the recipients always thank many other people who made
        their success possible. What element of culture does this illustrate?
        a. shared practices
        b. shared assumptions
        c. shared narratives
        d. shared values

        ANSWER: A, Application, Difficult, p. 517

28.     Johnson & Johnson, a leader in the development of pharmaceuticals, has a culture
        that forbids putting profits ahead of ethical responsibilities to doctors, nurses, and
        patients. Shared practices, such as those evident at Johnson & Johnson, which forbid
        certain behaviors are known as __________.
        a. taboos
        b. rites
        c. ceremonies
        d. sagas

        ANSWER: A, Application, Moderate, p. 517

29.     Steven Jobs introduces Apple’s new product line during an elaborate and formal
        activity, designed to generate strong feelings of surprise and excitement among the
        employees. What type of activity is Jobs performing?
        a. rite
        b. ceremony
        c. practice
        d. narrative

        ANSWER: B, Application, Moderate, p. 517

        Learning Objective 2

        Basic Types of Organizational Cultures
30.     __________ is not one of the four major types of organizational cultures described in
        your textbook.
        a. Bureaucratic
        b. Market
        c. Clan
        d. Transformational

        ANSWER: D, Knowledge, Moderate, p. 517




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31.     All of the following statements are true concerning types of organizational cultures
        except:
        a. in a culturally homogeneous organization, no single type of culture will
            predominant.
        b. there are four pure types of organizational culture.
        c. a market culture has a stable control orientation.
        d. all of the above

        ANSWER: A, Knowledge, Difficult, pp. 517–518

32.     Which of the following correctly describes organizational cultures?
        a. Different organizational cultures may be appropriate under different conditions.
        b. Some employees prefer one culture over another.
        c. Employees who work in organizations with cultures that fit their view of an ideal
           culture tend to be committed to the organization.
        d. All of the above are true.

        ANSWER: D, Knowledge, Moderate, p. 518

33.     An organization in which employees value formalization, rules, standard operating
        procedures, and hierarchical coordination can best be described as a __________
        culture.
        a. bureaucratic
        b. functional
        c. formalized
        d. stable

        ANSWER: A, Knowledge, Easy, p. 518

34.     What type of organization would be a good “fit” for someone who believes it is their
        duty to “go by the book” and follow legalistic procedures?
        a. bureaucratic
        b. clan
        c. entrepreneurial
        d. market

        ANSWER: A, Application, Moderate, p. 518

35.     Samantha Robbins is a new employee with a major real estate developer and has
        noticed that her tasks, responsibilities, and authority have been very clearly defined
        and every one plays by a clear set of rules. What type of organizational culture has
        Samantha observed?
        a. functional
        b. clan
        c. bureaucratic
        d. entrepreneurial

        ANSWER: C, Application, Moderate, p. 518




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36.     What type of culture is evident in most local, state, and federal governments?
        a. market
        b. entrepreneurial
        c. functional
        d. bureaucratic

        ANSWER: D, Knowledge, Easy, p. 518

37.     Tradition, loyalty, personal commitments, extensive socialization, teamwork, self-
        management, and social influence are attributes of a(n) __________ culture.
        a. market
        b. entrepreneurial
        c. clan
        d. family

        ANSWER: C, Knowledge, Easy, p. 518

38.     Javier Torres has recently made a long-term commitment to his organization in the
        form of loyalty in exchange for the organization’s long-term commitment to his
        individual security. What type of organizational culture is Torres likely a member of?
        a. bureaucratic
        b. market
        c. clan
        d. none of the above

        ANSWER: C, Application, Moderate, p. 518

39.     All of the following correctly describe a clan culture except:
        a. members have a shared image of organizational style and conduct.
        b. a long and thorough socialization process takes place.
        c. members have a strong sense of identification and recognize the need to work
            together.
        d. there is a commitment to experimentation, innovation, and being on the leading
            edge.

        ANSWER: D, Knowledge, Moderate, p. 518

40.     Your brother-in-law has just graduated from college and is looking for work in an
        organization with a culture that fits his commitment to experimentation, innovation, and
        being on the leading edge. What organizational culture will be recommended to him?
        a. bureaucratic
        b. clan
        c. entrepreneurial
        d. none of the above

        ANSWER: C, Application, Moderate, pp. 518–519




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41.     High levels of risk taking, dynamism, and creativity characterize a(n) __________
        culture.
        a. bureaucratic
        b. evolving
        c. dynamic
        d. entrepreneurial

        ANSWER: D, Knowledge, Easy, p. 518

42.     During the 1990s, Internet-based start-ups enjoyed a great deal of success. What type
        of culture did the companies likely create?
        a. market
        b. entrepreneurial
        c. clan
        d. bureaucratic

        ANSWER: B, Knowledge, Moderate, p. 519

43.     The achievement of measurable and demanding goals, especially those that are
        financial and market-based, characterize a(n) __________ culture.
        a. economic
        b. market
        c. entrepreneurial
        d. free-enterprise

        ANSWER: B, Knowledge, Easy, p. 519

44.     All of the following correctly describe organizations with a market culture except:
        a. the relationship between individual and organization is negotiated.
        b. there is not much informal social pressure exerted on the organization's members.
        c. individuality and independence are discouraged for the sake of higher profits.
        d. hard-driving competitiveness and a profit orientation prevail throughout the
            organization.

        ANSWER: C, Knowledge, Difficult, p. 519

45.     Bryan Porter is the new marketing director of a regional bakery company. As a
        member of management, Bryan is hoping to be judged on his effectiveness as a role
        model and mentor to his employees. He is eager to develop social relations among co-
        workers and broaden his network of colleagues within the organization. What type of
        organizational culture would least satisfy Bryan?
        a. bureaucratic
        b. market
        c. entrepreneurial
        d. all of the above

        ANSWER: B, Application, Difficult, pp. 518–519




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46.     Frito-Lay and Hewlett-Packard have adopted a culture in order to survive in the highly
        competitive consumer products businesses. What type of culture have these
        organizations likely adopted?
        a. bureaucratic
        b. clan
        c. market
        d. entrepreneurial

        ANSWER: C, Knowledge, Moderate, p. 519

47.     Which organizational culture assures that an organization will yield high profits, have a
        productive and eager workforce, and make the stakeholders happy?
        a. clan
        b. market
        c. entrepreneurial
        d. none of the above

        ANSWER: D, Application, Moderate, pp. 518–519

48.     Organizational culture has the potential to enhance all of the following except
        __________.
        a. organizational performance
        b. individual satisfaction
        c. the sense of certainty about how problems are to be handled
        d. all of the above.

        ANSWER: D, Knowledge, Difficult, p. 519

49.     All of the following are attributes of a “strong” culture except:
        a. a single, consistent message is presented.
        b. managers and employees share a common behavioral style.
        c. problems are solved by top managers in a hierarchical structure.
        d. a common set of rules governs the use of rewards and punishments.

        ANSWER: C, Knowledge, Moderate, p. 519

50.     In Wilmington, DE, there is a noticeable clash of cultures between DuPont and
        __________.
        a. Dow Chemical
        b. Citicorp
        c. MNBA
        d. Oracle

        ANSWER: C, Knowledge, Easy, p. 520

51.     The MBNA culture is noticeable in all of the following except:
        a. workers buy homes in the same neighborhoods.
        b. men are described as looking like Secret Service agents.
        c. the MBNAers like to have fun together at group activities.
        d. women almost always wear their gold MBNA pin on their left lapel.

        ANSWER: A, Knowledge, Moderate, p. 520


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52.     Firms are assessing organizational change after the economic downturn of 2002. They
        need to understand the impact of __________.
        a. reductions in merger and acquisition activity
        b. the shift toward knowledge-based competition
        c. trends toward taxes, tariffs, and protection of markets
        d. all of the above

        ANSWER: B, Knowledge, Difficult, p. 520

        Learning Objective 3

        Subcultures within Organizations
53.     An __________ exists when assumptions, values, and norms are shared by some—
        but not all—organizational members.
        a. organizational subculture
        b. organizational merger
        c. organizational assumption
        d. organizational value

        ANSWER: A, Knowledge, Easy, p. 521

54.     Clashes of management style after a corporate merger is __________.
        a. a bigger problem than cultural incompatibility
        b. a less serious problem than culture clashes
        c. the most common reason for failure
        d. only acceptable in the short-term

        ANSWER: B, Knowledge, Difficult, p. 521

55.     Occupation-based subcultures __________.
        a. create cultural indoctrination, in some cases
        b. sometimes form their own mission statements
        c. group members of a profession together
        d. all of the above

        ANSWER: D, Knowledge, Moderate, p. 522

56.     The subculture found at each IBM location around the world is defined as a
        combination of the organizational culture and __________.
        a. gender
        b. ethnicity
        c. region
        d. language

        ANSWER: C, Knowledge, Difficult, p. 522




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57.     Subcultures with which employees may identify include all of the following except
        __________.
        a. occupational subcultures
        b. regional subcultures
        c. sexual orientation subcultures
        d. all of the above

        ANSWER: D, Knowledge, Easy, pp. 521–525

58.     The culture at the Alabama Mercedes-Benz factory that tends to be generalists rather
        than specialists is the __________.
        a. Japanese
        b. German
        c. American
        d. United Auto Workers Union

        ANSWER: A, Knowledge, Difficult, p. 523

59.     Mercedes-Benz did all of the following except __________ to successfully merge the
        manufacturing cultures of Germany, Japan, and America at their Alabama facility.
        a. send U.S. engineers to Germany to work with German engineers
        b. send U.S. team leaders to Japan to learn quality techniques
        c. create multidisciplinary teams to manage operations
        d. create open and egalitarian manager and subordinate relationships

        ANSWER: B, Knowledge, Moderate, p. 523

60.     A person who lives in the U.S. and identifies with a Cuban, Puerto Rican, South
        American, or Central American culture is considered in what ethnic category?
        a. Asian
        b. Hispanic
        c. Native Islander
        d. Pacific Islander

        ANSWER: B, Knowledge, Easy, p. 524

61.     Asian ethnicity includes people from all of the following groups except __________.
        a. Cambodia
        b. India
        c. Malaysia
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 524

62.     In the U.S., White ethnicity can include people originating from __________.
        a. Spain
        b. Cuba
        c. Iran
        d. all of the above

        ANSWER: D, Knowledge, Moderate, p. 524

63.     Characteristics such as age, ethnicity, and gender are typically referred to as

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        __________.
        a. diversity markers
        b. workforce demographics
        c. job qualifications
        d. employment attributes

        ANSWER: B, Knowledge, Easy, p. 523

64.     Some of the techniques used by managers to create positive subcultures include all of
        the following except:
        a. celebrating personal milestones such as workers’ birthdays.
        b. listening to employees and recognizing their efforts.
        c. sponsoring picnics and parties.
        d. all of the above

        ANSWER: C, Knowledge, Difficult, p. 523

65.     Karina Cardenas is the child of recent immigrants, the first child in her family to be born
        in the United States. It is likely that she __________.
        a. was strongly influenced by her parents’ home country culture
        b. feels homesick
        c. needed to rely on an interpreter for her school activities
        d. all of the above

        ANSWER: A, Application, Easy, p. 524

66.     The diversity director at Darden Restaurants said, “Our employees who were from
        __________ backgrounds were very pleased that we acknowledged their __________.
        a. African American; contributions
        b. foreign; needs
        c. Hispanic; language
        d. Muslim; faith

        ANSWER: D, Knowledge, Difficult, p. 525

67.     Employees within each generation tend to develop certain distinct __________ that
        have special meaning for them.
        a. slang
        b. symbols
        c. values
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 525

68.     __________ are characterized by achieving success, challenging authority, and
        creating open lines of communication.
        a. Traditionalists
        b. Baby Boomers
        c. Generation Xers
        d. Millenials

        ANSWER: B, Knowledge, Moderate, p. 525

69.     The last birth year for Generation Xers was __________.

      262
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY
        a.   1979
        b.   1980
        c.   1982
        d.   1984

        ANSWER: B, Knowledge, Difficult, p. 525

70.     Gender continues to be an important basis for the formation of subcultures. Other
        elements of __________ include family status, sexual orientation, and physical
        disabilities.
        a. diversity
        b. culture
        c. subculture
        d. workforce demographics

        ANSWER: D, Knowledge, Difficult, p. 525

71.     Diversity in the workforce of an organization creates all of the following potential
        benefits except __________.
        a. more creativity
        b. less conflict
        c. recognition of customers’ point of view
        d. all of the above

        ANSWER: B, Knowledge, Moderate, p. 526

72.     When one firm acquires another, employees of the acquired firm may be expected to
        give up their __________.
        a. performance
        b. diversity
        c. culture
        d. creativity

        ANSWER: C, Knowledge, Easy, p. 526

73.     What company has established bilingual support centers in southern California to serve
        the area’s many foreign-born entrepreneurs?
        a. UPS
        b. Disney
        c. Ford
        d. Pitney Bowes

        ANSWER: A, Knowledge, Moderate, p. 526




      263
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

74.     Clashes between __________ may be one reason why a recent survey found that 71
        percent of black engineers were considering leaving their companies.
        a. ethnic cultures
        b. multicultural goals
        c. diversity initiatives
        d. generations

        ANSWER: A, Knowledge, Difficult, p. 526

75.     __________ strive to permit many subcultures to coexist while ensuring that no one
        subculture dominates the others.
        a. Successful firms
        b. Multicultural organizations
        c. Entrepreneurial organizations
        d. Diversity managers

        ANSWER: B, Knowledge, Moderate, p. 527

        Learning Objective 4

        Successfully Managing Diversity
76.     __________ encompasses the full mix of the cultures and subcultures to which
        members of the workforce belong.
        a. Workforce demographics
        b. Cultural diversity
        c. Cultural complexity
        d. Ethnicity differences

        ANSWER: B, Knowledge, Easy, p. 527

77.     All of the following are goals that most organizations strive to achieve when managing
        diversity effectively except __________.
        a. complying with laws and regulations
        b. creating a positive culture for employees
        c. meeting stakeholders’ concerns for efficiency
        d. creating economic value

        ANSWER: C, Knowledge, Moderate, p. 528

78.     The basic premise that companies should actively recruit job applicants to build a
        workforce that reflects the demographics of the qualified labor force locally is referred
        to as __________.
        a. cultural compliance
        b. affirmative action
        c. positive conservatism
        d. progressive liberalism

        ANSWER: B, Knowledge, Easy, p. 528




      264
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

79.     What company publicly supported the University of Michigan’s efforts to achieve better
        cultural diversity through its admission decisions?
        a. Microsoft
        b. Bank One
        c. General Motors
        d. all of the above

        ANSWER: D, Knowledge, Moderate, p. 528

80.     All of the following correctly describe a positive organizational culture except:
        a. members are encouraged to file their grievances in court or with the EEOC.
        b. members of majority and minority subcultures feel respected.
        c. everyone has an equal chance to express views and influence decisions.
        d. everyone has similar access to both formal and informal networks within the
            organization.

        ANSWER: A, Knowledge, Moderate, pp. 528–529

81.     At the accounting firm of Deloitte and Touche, employment numbers alerted the
        partners to what disturbing trend?
        a. Hispanic males were seldom hired.
        b. Women college graduates were seldom hired.
        c. Only 5 percent of the partners were women and the turnover rate for women was
            30 percent.
        d. Derogatory racial comments were used during corporate meetings

        ANSWER: C, Knowledge, Moderate, p. 529

82.     Deloitte and Touche made significant changes to address high turnover among
        women. This included __________.
        a. flexible work arrangements
        b. paid child-care leave
        c. job sharing
        d. all of the above

        ANSWER: D, Knowledge, Moderate, p. 529

83.     Organizations that use cultural audits to evaluate their diversity efforts are likely to
        learn about all of the following except:
        a. whether the language used in organizational documents and advertising is
            appropriate.
        b. whether the symbols used to decorate public spaces are acceptable.
        c. whether the policies regarding holidays and absences are fair.
        d. all of the above

        ANSWER: C, Knowledge, Moderate, p. 529




      265
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

84.     With a diverse workforce and positive organizational culture in place, many managers
        believe their companies will be able to accomplish which of the following?
        a. develop products and services for new markets
        b. improve customer satisfaction and increase business from repeat customers
        c. reduce costs, including those associated with litigation
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 529

85.     Managers find that diversity efforts which improve customer satisfaction and increase
        business from repeat customers is a way to __________.
        a. create a positive subculture
        b. create economic value
        c. comply with laws an regulations
        d. carry out the process of change

        ANSWER: B, Knowledge, Easy, p. 529

86.     CEOs are finding that managing diversity poorly is __________.
        a. a fast way to get fired
        b. the most serious problem they face
        c. risky business
        d. all of the above

        ANSWER: C, Knowledge, Difficult, p. 530

87.     What company suffered from a nearly $1 billion decline in market value after a tape
        recording was released in which an executive was heard making racist remarks to
        other executives?
        a. Exxon
        b. Coopers & Lybrand
        c. Philip Morris
        d. Texaco

        ANSWER: D, Knowledge, Moderate, p. 530

88.     What company agreed to pay some $175 million to current and former employees who
        experienced racial discrimination?
        a. Exxon
        b. Texaco
        c. Burger King
        d. Baker & McKenzie

        ANSWER: B, Knowledge, Moderate, p. 530




      266
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

89.     Organizations that succeed in managing cultural diversity go through a process of
        change that typically includes all of the following except __________.
        a. vision of the future
        b. involvement of employees
        c. timing of the planned organizational change
        d. all of the above

        ANSWER: D, Knowledge, Moderate, pp. 530–531

90.     How do traditional organizational practices tend to minimize cultural diversity?
        a. recruiting practices are emphasized that find candidates from “reliable” sources
        b. interviews screen out candidates who “don’t fit”
        c. standardized work schedules
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 530

91.     Which of the following is true about legitimate reasons for not implementing cultural
        diversity?
        a. some types of homogeneity may be appropriate
        b. important employees may leave the firm
        c. the financial cost may not be justified
        d. none of the above

        ANSWER: A, Knowledge, Difficult, p. 530

92.     According to most experts, who is the key to articulating a vision of a new
        organizational culture that supports and builds on diversity?
        a. the stakeholders
        b. the employees themselves
        c. the CEO
        d. the human resources director

        ANSWER: C, Knowledge, Difficult, p. 530

93.     What company has a long record dating back before the mid-1970s of providing
        supportive diversity management, including caucus groups for African Americans and
        women?
        a. Texaco
        b. Xerox
        c. GM
        d. Ford

        ANSWER: B, Knowledge, Moderate, p. 531




      267
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

94.     When GM initiated cultural change, they created the __________ in order to make sure
        that all voices are heard.
        a. ERG: employee resource group
        b. RFG: regular feedback group
        c. CCG: communication competency group
        d. GMC: General Motors communicators

        ANSWER: A, Knowledge, Moderate, p. 531

95.     United Technologies believes that __________ diversity is just as important as cultural
        diversity.
        a. gender
        b. age
        c. intellectual
        d. political

        ANSWER: C, Application, Difficult, p. 533

96.     United Technologies uses all of the following diversity management practices except:
        a. maintaining a diverse pool of workers for career advancement.
        b. training managers to make accurate performance appraisals of subordinates.
        c. sponsoring forums and symposia for women and minorities.
        d. all of the above

        ANSWER: D, Knowledge, Easy, pp. 533–534

97.     Which of the following is an unanticipated problem that can result from diversity
        programs?
        a. Older workers may be resistant to change.
        b. A stigma may be created for members targeted to benefit.
        c. Courts may intervene if progress is too slow.
        d. all of the above

        ANSWER: B, Knowledge, Moderate, p. 536

98.     All of the following are problems that can occur when organizations begin the process
        of making improvements in their approach to cultural diversity except:
        a. some managers do not understand that cultural diversity can have organizational
            consequences.
        b. diversity may lead to creativity, but also breed conflicts.
        c. successfully recruiting women may irritate the men on the team.
        d. all of the above

        ANSWER: D, Knowledge, Easy, p. 537




      268
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY


       Essay Questions

       Learning Objective 1

1.     Describe the core elements of culture.

       A culture is the unique pattern of shared assumptions, values, and norms that shape
       the socialization activities, language, symbols, and practices that unite members of a
       group and make them distinctive relative to nonmembers. Assumptions are the
       underlying thoughts and feelings that are taken for granted and believed to be true.
       Values are basic beliefs about a condition that has considerable importance and
       meaning to individuals and is stable over time. Socialization is a systematic process by
       which new members are brought into a culture and taught the norms for behavior. A
       symbol is anything visible that can be used to represent an abstract shared value or
       something having special meaning. Language is a shared system of vocal sounds,
       written signs, and/or gestures used to convey special meanings among members.
       Narratives are the unique stories, sagas, legends, and myths in a culture. Shared
       practices include taboos (forbidden behaviors) and rites and ceremonies (formal
       activities that generate strong feelings).

       Difficult, pp. 512–517

       Learning Objective 2

2.     Compare and contrast four types of organizational culture.

       Each organization’s culture is unique.         Nevertheless, four general types of
       organizational cultures that are useful for comparing organizations are bureaucratic,
       clan, entrepreneurial, and market cultures. They are characterized by differences in
       formal control (ranging from stable to flexible) and focus of attention (ranging from
       internal to external).

       Moderate, pp. 517–519

3.     Describe the four pure types of organizational cultures that exist.

       a. Bureaucratic is an organization where employees value formalization, rules,
          standard operating procedures, and hierarchical coordination.
       b. Clan is an organization where members value tradition, loyalty personal
          commitment, extensive socialization, teamwork, self-management, and social
          influence. Members recognize an obligation beyond the simple exchange of labor
          for a salary.
       c. Entrepreneurial is an organization characterized by high levels of risk taking,
          dynamism, and creativity. Members are committed to experimentation, innovation,
          and being on the leading edge.
       d. Market is an organization that emphasizes achievement of measurable and
          demanding goals, especially those that are financial and market based. Members
          recognize that hard-driving competitiveness and a profit orientation prevail
          throughout the organization.

       Moderate, pp. 518–519

4.     Discuss how the types of organizational cultures can differ.
     269
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

       Although all organizational cultures are unique, some general types of cultures can be
       identified. The four types discussed are bureaucratic, clan, entrepreneurial, and
       market cultures. They are characterized by differences in the extent of formal control
       (ranging from stable to flexible) and focus of attention (ranging from internal to
       external). Thus an organization could represent many blends of these pure cultural
       types, either as a whole or through its subcultures. Strong cultures may work for or
       against organizational performance depending on their fit with the demands of external
       stakeholders and the competitive environment.

       Difficult, pp. 517–519

5.     Discuss how MBNA uses its communication competency to create a unique and highly
       functional culture.

       MBNA is the world’s largest independent credit card company, located in Wilmington,
       Delaware. It is a striking contrast to the other influential company in town—DuPont.
       While DuPont employees keep a low profile, MBNAers wear a characteristic look of
       suits and gold MBNA pins on their left lapel. One reporter said they look like Secret
       Service agents. MBNA workers tend to be in their mid-20s to mid-40s, physically fit
       and trim. They participate in many group activities and are considered to be cultish
       due to their strong culture. These qualities contribute to the firm’s strategic goals and
       successful performance in their industry.

       Moderate, p. 520

       Learning Objective 3

6.     Discuss several types of subcultures that may exist in organizations.

       The culture diversity of a workforce reflects the range of subcultures to which
       employees belong. When two organizations merge, the subcultures of the original
       firms may become subcultures within the new organization. Subcultures also reflect
       departmental and occupational differences. Subcultures that come about as a result of
       the demographic characteristics of employees include those based on age, gender,
       and ethnicity. In multicultural organizations, no one subculture dominates the others.
       The organizational culture reflects a blending of all the subcultures found within the
       organization.

       Difficult, pp. 521–526




     270
CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY

       Learning Objective 4

7.     Explain why managing cultural diversity is important and describe several activities
       required to manage it successfully.

       Concern about effectively managing workforce diversity reflects three types of
       organizational goals: complying with EEO laws and regulation, creating a positive
       organizational culture that makes work enjoyable for all employees, and creating
       economic value. Managing cultural diversity in order to achieve these objectives is a
       long-term process requiring substantial investments of time, money, and people.
       Organizations use many activities to manage diversity effectively. Diversity training and
       family-friendly practices are two popular approaches to creating a positive culture for a
       diverse workforce. An organization’s approach to managing diversity is determined by
       its specific goals and objectives as well as by the subcultures present within the
       organization.

       Difficult, pp. 527–530

8.     Discuss the challenges to implementation of diversity programs.

       Diversity programs can be affected by unanticipated problems that can cause them to
       backfire. This is particularly true if the programs seem to reinforce stereotypes or
       highlight cultural differences that workers have tried to erase in order to fit into the
       company’s culture. Affirmative action programs can create a stigma for members of
       groups targeted to benefit, as they are perceived to have an unfair advantage. Thus,
       even the most qualified people are presumed to have acquired their positions due to
       their demographics rather than on the basis of merit.

       Three challenges faced by companies implementing changes are:
       1) Managing reactions of members of the dominant culture, who may feel that they
          are losing their power base.
       2) Synthesizing the diversity of opinions from individuals and using them as the basis
          for reaching agreement on meaningful issues.
       3) Avoiding real and perceived tokenism and quota systems that are destructive to
          developing a positive culture while quantitative goals are being met.

       Difficult, pp. 536–537




     271

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Tb18

  • 1. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY Test Correlation Table Question Types/Level of Difficulty LEARNING OBJECTIVES Easy Moderate Difficult 1. Describe the core elements of a TF 4, 7 1, 5, 8 2, 3, 6 culture. MC 2, 4, 6, 9, 11, 14, 3, 7, 10, 12, 22, 25, 1, 5, 8, 13, 20, 26, 27 15, 16, 17, 18, 28, 29 19, 21, 23, 24 ES — — 1 2. Compare and contrast four types TF 9, 10, 13 11, 12, 16, 17 14, 15 of organizational culture. MC 33, 36, 37, 41, 30, 32, 34, 35, 38, 39, 31, 44, 45, 48, 52 43, 50 40, 42, 46, 49, 51 ES — 2, 3, 5 4 3. Discuss several types of TF 18, 23 19, 20, 22, 25, 26, 28 21, 24, 27 subcultures that may exist in organizations. MC 53, 57, 60, 61, 55, 59, 62, 68, 71, 73, 54, 56, 58, 64, 66, 69, 63, 65, 67, 72 75 70 ES — — 6 4. Describe several activities for TF 33, 38 29, 31, 34, 35, 36, 39, 30, 32, 37 successfully managing diversity. 40 MC 76, 78, 84, 85, 77, 79, 80, 81, 82, 83, 86, 91, 92, 95 90, 96, 98 87, 88, 89, 93, 94, 97 ES — — 7, 8 245
  • 2. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY True/False Questions Learning Objective 1 1. The elements of a culture include symbols, language, and narratives. ANSWER: T, Knowledge, Moderate, p. 512 2. At Southwest Airlines, “fun first” is a norm shared by the airline’s employees and customers alike. ANSWER: F, Knowledge, Difficult, p. 513 3. A value comprises multiple beliefs that are compatible and supportive of one another. ANSWER: F, Knowledge, Difficult, p. 513 4. The most powerful organizational socialization is through consistent role modeling, teaching, coaching, and enforcement by coworkers and managers. ANSWER: T, Knowledge, Easy, p. 514 5. Symbols are the simplest and most basic observable form of cultural expression. ANSWER: T, Knowledge, Moderate, p. 514 6. Narratives are based on legends that may not necessarily be entirely true. ANSWER: T, Knowledge, Difficult, p. 516 7. Taboos are culturally forbidden behaviors. ANSWER: T, Knowledge, Easy, p. 517 8. Ceremonies are elaborate and formal activities designed to generate strong feelings. ANSWER: T, Knowledge, Moderate, p. 517 Learning Objective 2 9. No one type of culture is ideal for every situation. ANSWER: T, Knowledge, Easy, p. 518 10. The long-term concerns of a bureaucratic culture are predictability, efficiency, and stability. ANSWER: T, Knowledge, Easy, p. 518 246
  • 3. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 11. Peer pressure to adhere to important norms is strong in a clan culture. ANSWER: T, Knowledge, Moderate, p. 518 12. Tradition, loyalty, personal commitment, and extensive socialization are attributes of an entrepreneurial culture. ANSWER: F, Knowledge, Moderate, pp. 518–519 13. Social relations are important and officially emphasized and rewarded in a market culture. ANSWER: F, Knowledge, Easy, p. 519 14. Entrepreneurial cultures are only appropriate for the start-up phase of organizations. A different culture is more appropriate later. ANSWER: F, Knowledge, Difficult, p. 519 15. Oracle is known for their nurturing of an entrepreneurial culture. ANSWER: F, Knowledge, Difficult, p. 519 16. One reason for maintaining an established organizational culture is to create a stronger, more consistent organization as the external environment changes. ANSWER: F, Knowledge, Moderate, p. 520 17. It is not unusual to find several subcultures within a single organization. ANSWER: T, Knowledge, Moderate, p. 520 Learning Objective 3 18. Departments and divisions within companies may have their own subcultures. ANSWER: T, Knowledge, Easy, p. 521 19. Incompatibility of cultures is the most frequently cited reason for the failure of mergers. ANSWER: T, Knowledge, Moderate, p. 521 20. In organizations that operate in several countries, subcultures that reflect these national differences are likely to exist even when there is a common organizational culture. ANSWER: T, Knowledge, Moderate, pp. 522–523 21. The subculture of western China is the most individualistic of the main local cultures. ANSWER: F, Knowledge, Difficult, p. 523 247
  • 4. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 22. Nearly 1 in 10 workers in the United States today is foreign born—the lowest rate in 70 years. ANSWER: F, Knowledge, Moderate, pp. 523–524 23. Employees within each generation tend to share a subculture distinct from the subcultures of other generations. ANSWER: T, Knowledge, Easy, p. 525 24. The Generation Xers have become known for challenging authority and creating open lines of communication. ANSWER: F, Knowledge, Difficult, p. 525 25. Diversity campaigns have finally eliminated most of the formation of organizational subcultures based on gender. ANSWER: F, Knowledge, Moderate, p. 525 26. Many managers believe that the presence of distinct subcultures in an organization can be beneficial and should be valued. ANSWER: T, Knowledge, Moderate, p. 526 27. The experience of African Americans working in the accounting profession was much different back in the 1980s when very few were made partners, compared to today when about 15% of all partners are African Americans. ANSWER: F, Knowledge, Difficult, p. 526 28. A multicultural organization is one that tries to ensure that the dominant culture does not exploit the other subcultures. ANSWER: F, Knowledge, Moderate, p. 527 Learning Objective 4 29. In the 1980s the term diversity was used to refer to the number of women and minorities in an organization. ANSWER: T, Knowledge, Moderate, p. 527 30. Language is an area of coverage in the diversity initiatives of less than 50 percent of surveyed companies. ANSWER: T, Knowledge, Difficult, p. 527 31. The creation of economic value is not a major goal for organizations that are concerned about their management of cultural diversity. ANSWER: F, Knowledge, Moderate, p. 528 248
  • 5. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 32. The basic goal of affirmative action is to compensate for past injustices. ANSWER: F, Knowledge, Difficult, p. 528 33. The most common methods used to assess organizational culture are employee surveys and focus groups. ANSWER: T, Knowledge, Easy, p. 529 34. The actual cost to Texaco for racial discrimination exceeded the $175 million settlement to former employees. ANSWER: T, Knowledge, Moderate, p. 530 35. Texaco’s management established themselves as leaders in the industry for recognizing early the importance of developing cultural diversity in its organization. ANSWER: F, Application, Moderate, p. 530 36. Some types of homogeneity may be appropriate for managers to effectively operate the organization and should be retained rather than replaced by diversity. ANSWER: T, Knowledge, Moderate, p. 530 37. Non-U.S. citizens who work in the United States is one of the employee groups created by GM, designed to promote cultural diversity. ANSWER: T, Knowledge, Difficult, p. 531 38. Planned organizational change usually follows an evolutionary—not revolutionary— path. ANSWER: T, Knowledge, Easy, p. 531 39. Awareness training is aimed at ensuring that employees understand the meaning of the actions the company will take when someone complains of being harassed. ANSWER: T, Knowledge, Moderate, p. 534 40. It is not unusual for the implementation of cultural diversity in an organization to actually result in heightened conflict within the team. ANSWER: T, Knowledge, Moderate, p. 537 249
  • 6. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY Multiple Choice Questions Preview 1. At the firm of GSD&M, the norm associated with “Your butt is connected to your head” is __________. a. immersion b. integrity c. responsibility d. fun ANSWER: A, Knowledge, Difficult, p. 512 2. __________ is(are) so important to the cofounder of GSD&M in Austin, TX, that he has campaigned to have the city add it to their official slogan. a. Fun b. Freedom c. Ideas d. Curiosity ANSWER: C, Knowledge, Easy, p. 512 Learning Objective 1 The Elements of a Culture 3. Which of the following is not considered one of the basic elements of a culture? a. shared values b. shared assumptions c. shared knowledge d. shared norms ANSWER: C, Knowledge, Moderate, p. 512 4. A __________ is the unique pattern of shared assumptions, values, and norms that shape the socialization, language, symbols, narratives, and practices of a group of people. a. microclimate b. social system c. community d. culture ANSWER: D, Knowledge, Easy, p. 512 5. Which of the following is not an observable element of culture? a. narratives b. norms c. symbols d. socialization ANSWER: B, Knowledge, Difficult, p. 513 250
  • 7. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 6. To what does Herb Kelleher, Chairman of Southwest Airlines, attribute the success of the airline? a. on-time flights b. low airfares c. customer service d. the culture of the organization ANSWER: D, Knowledge, Easy, p. 512 7. Culture has everything to do with Southwest Airlines’ success, according to founder Herb Kelleher, because __________. a. culture gives meaning and purpose to employees b. costs are already as low as they can go c. competitors can’t copy its culture d. all of the above ANSWER: C, Knowledge, Moderate, p. 512 8. Karen Patel has recently begun a new job at a large engineering firm. She realizes that the new organization differs from her old organization about what the notion of effectiveness means. What element of culture does this illustrate? a. shared assumptions b. shared values c. shared socialization d. shared symbols ANSWER: A, Application, Difficult, pp. 512–513 9. __________ are the underlying thoughts and feelings that members of a culture take for granted and believe to be true. a. Organizational symbols b. Shared assumptions c. Organizational realities d. Attitudes ANSWER: B, Knowledge, Easy, p. 513 10. All of the following are true statements concerning shared assumptions in a culture except: a. at Linux, software programmers share the assumption that software code should be openly available to anyone. b. GSD&M assumes that creativity needs to be stimulated by the external environment. c. companies differ in their assumptions about strategy. d. all of the above ANSWER: D, Knowledge, Moderate, pp. 512–513 251
  • 8. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 11. A __________ is a basic belief about something that has considerable importance and meaning to individuals and is stable over time. a. shared assumption b. ritual c. value d. symbol ANSWER: C, Knowledge, Easy, p. 513 12. At Southwest Airlines, __________ is a shared value. a. having fun b. working overtime c. competitiveness d. on-time flights ANSWER: A, Knowledge, Moderate, p. 513 13. A European company has recently announced its intention to open a new office in the United States. Management of the company is aware that the cornerstones of private enterprise and individual rights are believed to be mutually supportive of each other. What element of culture is this company trying to understand? a. shared assumptions b. shared socialization c. shared values d. shared symbols ANSWER: C, Application, Difficult, p. 513 14. __________ is a process by which new members are brought into a culture. a. Deindividuation b. Selection c. Brainwashing d. Socialization ANSWER: D, Knowledge, Easy, p. 514 15. The most powerful way to socialize people into a culture is through consistent use of all of the following except __________. a. role modeling b. teaching c. coaching d. all of the above ANSWER: D, Knowledge, Easy, p. 514 252
  • 9. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 16. A __________ is anything visible that can be used to represent an abstract shared value or something having special meaning. a. shared symbol b. shared assumption c. shared language d. shared practice ANSWER: A, Knowledge, Easy, p. 514 17. __________ are the simplest and most basic observable form of cultural expression of an organization. a. Labels b. Mottos c. Symbols d. Mascots ANSWER: C, Knowledge, Easy, p. 514 18. Prudential Life Insurance uses the Rock of Gibraltar to represent continuity and dependability, which have great meaning to both employees and customers. The Rock is a(n) __________ of Prudential. a. value b. mascot c. icon d. symbol ANSWER: D, Application, Easy, p. 514 19. Setpoint’s alignment between company objectives and the way employees thought about their work can be attributed to __________. a. culture b. community c. social norms d. shared knowledge ANSWER: A, Knowledge, Easy, p. 515 20. At Setpoint, “the board” symbolized __________. a. mistakes made by a failed management team b. open and trusting relationships between managers and employees c. a culture where quality is never at the point where it can be considered adequate d. customer relationships ANSWER: B, Knowledge, Difficult, p. 515 253
  • 10. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 21. From a cultural perspective, __________ is (are) a shared system of vocal sounds, written signs, and/or gestures used to convey special meanings among members of a culture. a. coalitions b. phenomenology c. symbols d. language ANSWER: D, Knowledge, Easy, p. 515 22. Commerce Bank’s use of a “Wow Department” indicates their understanding of the link between __________ and culture. a. socialization b. symbols c. language d. values ANSWER: C, Knowledge, Moderate, p. 516 23. __________ is (are) the unique stories, sagas, legends, and myths in a culture. a. Coalitions b. Symbols c. Jargon d. Narratives ANSWER: D, Knowledge, Easy, p. 516 24. A(n) __________ describes the unique accomplishments and beliefs of the organization and its leaders over time, usually in heroic and romantic terms. a. icon b. reflection c. alliteration d. narrative ANSWER: D, Knowledge, Easy, p. 516 25. A new salesperson for Mary Kay recently learned how Mary Kay Ash founded her successful company while struggling to support herself and her children as a single parent. What element of culture does this describe? a. shared practices b. shared narratives c. shared assumptions d. shared language ANSWER: B, Application, Moderate, p. 516 254
  • 11. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 26. What is the most complex but observable cultural form? a. shared socialization b. shared assumptions c. shared narratives d. shared practices ANSWER: D, Knowledge, Difficult, p. 517 27. In the entertainment industry, at the annual ceremonies that bestow the Oscar, Grammy, and Emmy awards, the recipients always thank many other people who made their success possible. What element of culture does this illustrate? a. shared practices b. shared assumptions c. shared narratives d. shared values ANSWER: A, Application, Difficult, p. 517 28. Johnson & Johnson, a leader in the development of pharmaceuticals, has a culture that forbids putting profits ahead of ethical responsibilities to doctors, nurses, and patients. Shared practices, such as those evident at Johnson & Johnson, which forbid certain behaviors are known as __________. a. taboos b. rites c. ceremonies d. sagas ANSWER: A, Application, Moderate, p. 517 29. Steven Jobs introduces Apple’s new product line during an elaborate and formal activity, designed to generate strong feelings of surprise and excitement among the employees. What type of activity is Jobs performing? a. rite b. ceremony c. practice d. narrative ANSWER: B, Application, Moderate, p. 517 Learning Objective 2 Basic Types of Organizational Cultures 30. __________ is not one of the four major types of organizational cultures described in your textbook. a. Bureaucratic b. Market c. Clan d. Transformational ANSWER: D, Knowledge, Moderate, p. 517 255
  • 12. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 31. All of the following statements are true concerning types of organizational cultures except: a. in a culturally homogeneous organization, no single type of culture will predominant. b. there are four pure types of organizational culture. c. a market culture has a stable control orientation. d. all of the above ANSWER: A, Knowledge, Difficult, pp. 517–518 32. Which of the following correctly describes organizational cultures? a. Different organizational cultures may be appropriate under different conditions. b. Some employees prefer one culture over another. c. Employees who work in organizations with cultures that fit their view of an ideal culture tend to be committed to the organization. d. All of the above are true. ANSWER: D, Knowledge, Moderate, p. 518 33. An organization in which employees value formalization, rules, standard operating procedures, and hierarchical coordination can best be described as a __________ culture. a. bureaucratic b. functional c. formalized d. stable ANSWER: A, Knowledge, Easy, p. 518 34. What type of organization would be a good “fit” for someone who believes it is their duty to “go by the book” and follow legalistic procedures? a. bureaucratic b. clan c. entrepreneurial d. market ANSWER: A, Application, Moderate, p. 518 35. Samantha Robbins is a new employee with a major real estate developer and has noticed that her tasks, responsibilities, and authority have been very clearly defined and every one plays by a clear set of rules. What type of organizational culture has Samantha observed? a. functional b. clan c. bureaucratic d. entrepreneurial ANSWER: C, Application, Moderate, p. 518 256
  • 13. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 36. What type of culture is evident in most local, state, and federal governments? a. market b. entrepreneurial c. functional d. bureaucratic ANSWER: D, Knowledge, Easy, p. 518 37. Tradition, loyalty, personal commitments, extensive socialization, teamwork, self- management, and social influence are attributes of a(n) __________ culture. a. market b. entrepreneurial c. clan d. family ANSWER: C, Knowledge, Easy, p. 518 38. Javier Torres has recently made a long-term commitment to his organization in the form of loyalty in exchange for the organization’s long-term commitment to his individual security. What type of organizational culture is Torres likely a member of? a. bureaucratic b. market c. clan d. none of the above ANSWER: C, Application, Moderate, p. 518 39. All of the following correctly describe a clan culture except: a. members have a shared image of organizational style and conduct. b. a long and thorough socialization process takes place. c. members have a strong sense of identification and recognize the need to work together. d. there is a commitment to experimentation, innovation, and being on the leading edge. ANSWER: D, Knowledge, Moderate, p. 518 40. Your brother-in-law has just graduated from college and is looking for work in an organization with a culture that fits his commitment to experimentation, innovation, and being on the leading edge. What organizational culture will be recommended to him? a. bureaucratic b. clan c. entrepreneurial d. none of the above ANSWER: C, Application, Moderate, pp. 518–519 257
  • 14. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 41. High levels of risk taking, dynamism, and creativity characterize a(n) __________ culture. a. bureaucratic b. evolving c. dynamic d. entrepreneurial ANSWER: D, Knowledge, Easy, p. 518 42. During the 1990s, Internet-based start-ups enjoyed a great deal of success. What type of culture did the companies likely create? a. market b. entrepreneurial c. clan d. bureaucratic ANSWER: B, Knowledge, Moderate, p. 519 43. The achievement of measurable and demanding goals, especially those that are financial and market-based, characterize a(n) __________ culture. a. economic b. market c. entrepreneurial d. free-enterprise ANSWER: B, Knowledge, Easy, p. 519 44. All of the following correctly describe organizations with a market culture except: a. the relationship between individual and organization is negotiated. b. there is not much informal social pressure exerted on the organization's members. c. individuality and independence are discouraged for the sake of higher profits. d. hard-driving competitiveness and a profit orientation prevail throughout the organization. ANSWER: C, Knowledge, Difficult, p. 519 45. Bryan Porter is the new marketing director of a regional bakery company. As a member of management, Bryan is hoping to be judged on his effectiveness as a role model and mentor to his employees. He is eager to develop social relations among co- workers and broaden his network of colleagues within the organization. What type of organizational culture would least satisfy Bryan? a. bureaucratic b. market c. entrepreneurial d. all of the above ANSWER: B, Application, Difficult, pp. 518–519 258
  • 15. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 46. Frito-Lay and Hewlett-Packard have adopted a culture in order to survive in the highly competitive consumer products businesses. What type of culture have these organizations likely adopted? a. bureaucratic b. clan c. market d. entrepreneurial ANSWER: C, Knowledge, Moderate, p. 519 47. Which organizational culture assures that an organization will yield high profits, have a productive and eager workforce, and make the stakeholders happy? a. clan b. market c. entrepreneurial d. none of the above ANSWER: D, Application, Moderate, pp. 518–519 48. Organizational culture has the potential to enhance all of the following except __________. a. organizational performance b. individual satisfaction c. the sense of certainty about how problems are to be handled d. all of the above. ANSWER: D, Knowledge, Difficult, p. 519 49. All of the following are attributes of a “strong” culture except: a. a single, consistent message is presented. b. managers and employees share a common behavioral style. c. problems are solved by top managers in a hierarchical structure. d. a common set of rules governs the use of rewards and punishments. ANSWER: C, Knowledge, Moderate, p. 519 50. In Wilmington, DE, there is a noticeable clash of cultures between DuPont and __________. a. Dow Chemical b. Citicorp c. MNBA d. Oracle ANSWER: C, Knowledge, Easy, p. 520 51. The MBNA culture is noticeable in all of the following except: a. workers buy homes in the same neighborhoods. b. men are described as looking like Secret Service agents. c. the MBNAers like to have fun together at group activities. d. women almost always wear their gold MBNA pin on their left lapel. ANSWER: A, Knowledge, Moderate, p. 520 259
  • 16. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 52. Firms are assessing organizational change after the economic downturn of 2002. They need to understand the impact of __________. a. reductions in merger and acquisition activity b. the shift toward knowledge-based competition c. trends toward taxes, tariffs, and protection of markets d. all of the above ANSWER: B, Knowledge, Difficult, p. 520 Learning Objective 3 Subcultures within Organizations 53. An __________ exists when assumptions, values, and norms are shared by some— but not all—organizational members. a. organizational subculture b. organizational merger c. organizational assumption d. organizational value ANSWER: A, Knowledge, Easy, p. 521 54. Clashes of management style after a corporate merger is __________. a. a bigger problem than cultural incompatibility b. a less serious problem than culture clashes c. the most common reason for failure d. only acceptable in the short-term ANSWER: B, Knowledge, Difficult, p. 521 55. Occupation-based subcultures __________. a. create cultural indoctrination, in some cases b. sometimes form their own mission statements c. group members of a profession together d. all of the above ANSWER: D, Knowledge, Moderate, p. 522 56. The subculture found at each IBM location around the world is defined as a combination of the organizational culture and __________. a. gender b. ethnicity c. region d. language ANSWER: C, Knowledge, Difficult, p. 522 260
  • 17. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 57. Subcultures with which employees may identify include all of the following except __________. a. occupational subcultures b. regional subcultures c. sexual orientation subcultures d. all of the above ANSWER: D, Knowledge, Easy, pp. 521–525 58. The culture at the Alabama Mercedes-Benz factory that tends to be generalists rather than specialists is the __________. a. Japanese b. German c. American d. United Auto Workers Union ANSWER: A, Knowledge, Difficult, p. 523 59. Mercedes-Benz did all of the following except __________ to successfully merge the manufacturing cultures of Germany, Japan, and America at their Alabama facility. a. send U.S. engineers to Germany to work with German engineers b. send U.S. team leaders to Japan to learn quality techniques c. create multidisciplinary teams to manage operations d. create open and egalitarian manager and subordinate relationships ANSWER: B, Knowledge, Moderate, p. 523 60. A person who lives in the U.S. and identifies with a Cuban, Puerto Rican, South American, or Central American culture is considered in what ethnic category? a. Asian b. Hispanic c. Native Islander d. Pacific Islander ANSWER: B, Knowledge, Easy, p. 524 61. Asian ethnicity includes people from all of the following groups except __________. a. Cambodia b. India c. Malaysia d. all of the above ANSWER: D, Knowledge, Easy, p. 524 62. In the U.S., White ethnicity can include people originating from __________. a. Spain b. Cuba c. Iran d. all of the above ANSWER: D, Knowledge, Moderate, p. 524 63. Characteristics such as age, ethnicity, and gender are typically referred to as 261
  • 18. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY __________. a. diversity markers b. workforce demographics c. job qualifications d. employment attributes ANSWER: B, Knowledge, Easy, p. 523 64. Some of the techniques used by managers to create positive subcultures include all of the following except: a. celebrating personal milestones such as workers’ birthdays. b. listening to employees and recognizing their efforts. c. sponsoring picnics and parties. d. all of the above ANSWER: C, Knowledge, Difficult, p. 523 65. Karina Cardenas is the child of recent immigrants, the first child in her family to be born in the United States. It is likely that she __________. a. was strongly influenced by her parents’ home country culture b. feels homesick c. needed to rely on an interpreter for her school activities d. all of the above ANSWER: A, Application, Easy, p. 524 66. The diversity director at Darden Restaurants said, “Our employees who were from __________ backgrounds were very pleased that we acknowledged their __________. a. African American; contributions b. foreign; needs c. Hispanic; language d. Muslim; faith ANSWER: D, Knowledge, Difficult, p. 525 67. Employees within each generation tend to develop certain distinct __________ that have special meaning for them. a. slang b. symbols c. values d. all of the above ANSWER: D, Knowledge, Easy, p. 525 68. __________ are characterized by achieving success, challenging authority, and creating open lines of communication. a. Traditionalists b. Baby Boomers c. Generation Xers d. Millenials ANSWER: B, Knowledge, Moderate, p. 525 69. The last birth year for Generation Xers was __________. 262
  • 19. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY a. 1979 b. 1980 c. 1982 d. 1984 ANSWER: B, Knowledge, Difficult, p. 525 70. Gender continues to be an important basis for the formation of subcultures. Other elements of __________ include family status, sexual orientation, and physical disabilities. a. diversity b. culture c. subculture d. workforce demographics ANSWER: D, Knowledge, Difficult, p. 525 71. Diversity in the workforce of an organization creates all of the following potential benefits except __________. a. more creativity b. less conflict c. recognition of customers’ point of view d. all of the above ANSWER: B, Knowledge, Moderate, p. 526 72. When one firm acquires another, employees of the acquired firm may be expected to give up their __________. a. performance b. diversity c. culture d. creativity ANSWER: C, Knowledge, Easy, p. 526 73. What company has established bilingual support centers in southern California to serve the area’s many foreign-born entrepreneurs? a. UPS b. Disney c. Ford d. Pitney Bowes ANSWER: A, Knowledge, Moderate, p. 526 263
  • 20. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 74. Clashes between __________ may be one reason why a recent survey found that 71 percent of black engineers were considering leaving their companies. a. ethnic cultures b. multicultural goals c. diversity initiatives d. generations ANSWER: A, Knowledge, Difficult, p. 526 75. __________ strive to permit many subcultures to coexist while ensuring that no one subculture dominates the others. a. Successful firms b. Multicultural organizations c. Entrepreneurial organizations d. Diversity managers ANSWER: B, Knowledge, Moderate, p. 527 Learning Objective 4 Successfully Managing Diversity 76. __________ encompasses the full mix of the cultures and subcultures to which members of the workforce belong. a. Workforce demographics b. Cultural diversity c. Cultural complexity d. Ethnicity differences ANSWER: B, Knowledge, Easy, p. 527 77. All of the following are goals that most organizations strive to achieve when managing diversity effectively except __________. a. complying with laws and regulations b. creating a positive culture for employees c. meeting stakeholders’ concerns for efficiency d. creating economic value ANSWER: C, Knowledge, Moderate, p. 528 78. The basic premise that companies should actively recruit job applicants to build a workforce that reflects the demographics of the qualified labor force locally is referred to as __________. a. cultural compliance b. affirmative action c. positive conservatism d. progressive liberalism ANSWER: B, Knowledge, Easy, p. 528 264
  • 21. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 79. What company publicly supported the University of Michigan’s efforts to achieve better cultural diversity through its admission decisions? a. Microsoft b. Bank One c. General Motors d. all of the above ANSWER: D, Knowledge, Moderate, p. 528 80. All of the following correctly describe a positive organizational culture except: a. members are encouraged to file their grievances in court or with the EEOC. b. members of majority and minority subcultures feel respected. c. everyone has an equal chance to express views and influence decisions. d. everyone has similar access to both formal and informal networks within the organization. ANSWER: A, Knowledge, Moderate, pp. 528–529 81. At the accounting firm of Deloitte and Touche, employment numbers alerted the partners to what disturbing trend? a. Hispanic males were seldom hired. b. Women college graduates were seldom hired. c. Only 5 percent of the partners were women and the turnover rate for women was 30 percent. d. Derogatory racial comments were used during corporate meetings ANSWER: C, Knowledge, Moderate, p. 529 82. Deloitte and Touche made significant changes to address high turnover among women. This included __________. a. flexible work arrangements b. paid child-care leave c. job sharing d. all of the above ANSWER: D, Knowledge, Moderate, p. 529 83. Organizations that use cultural audits to evaluate their diversity efforts are likely to learn about all of the following except: a. whether the language used in organizational documents and advertising is appropriate. b. whether the symbols used to decorate public spaces are acceptable. c. whether the policies regarding holidays and absences are fair. d. all of the above ANSWER: C, Knowledge, Moderate, p. 529 265
  • 22. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 84. With a diverse workforce and positive organizational culture in place, many managers believe their companies will be able to accomplish which of the following? a. develop products and services for new markets b. improve customer satisfaction and increase business from repeat customers c. reduce costs, including those associated with litigation d. all of the above ANSWER: D, Knowledge, Easy, p. 529 85. Managers find that diversity efforts which improve customer satisfaction and increase business from repeat customers is a way to __________. a. create a positive subculture b. create economic value c. comply with laws an regulations d. carry out the process of change ANSWER: B, Knowledge, Easy, p. 529 86. CEOs are finding that managing diversity poorly is __________. a. a fast way to get fired b. the most serious problem they face c. risky business d. all of the above ANSWER: C, Knowledge, Difficult, p. 530 87. What company suffered from a nearly $1 billion decline in market value after a tape recording was released in which an executive was heard making racist remarks to other executives? a. Exxon b. Coopers & Lybrand c. Philip Morris d. Texaco ANSWER: D, Knowledge, Moderate, p. 530 88. What company agreed to pay some $175 million to current and former employees who experienced racial discrimination? a. Exxon b. Texaco c. Burger King d. Baker & McKenzie ANSWER: B, Knowledge, Moderate, p. 530 266
  • 23. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 89. Organizations that succeed in managing cultural diversity go through a process of change that typically includes all of the following except __________. a. vision of the future b. involvement of employees c. timing of the planned organizational change d. all of the above ANSWER: D, Knowledge, Moderate, pp. 530–531 90. How do traditional organizational practices tend to minimize cultural diversity? a. recruiting practices are emphasized that find candidates from “reliable” sources b. interviews screen out candidates who “don’t fit” c. standardized work schedules d. all of the above ANSWER: D, Knowledge, Easy, p. 530 91. Which of the following is true about legitimate reasons for not implementing cultural diversity? a. some types of homogeneity may be appropriate b. important employees may leave the firm c. the financial cost may not be justified d. none of the above ANSWER: A, Knowledge, Difficult, p. 530 92. According to most experts, who is the key to articulating a vision of a new organizational culture that supports and builds on diversity? a. the stakeholders b. the employees themselves c. the CEO d. the human resources director ANSWER: C, Knowledge, Difficult, p. 530 93. What company has a long record dating back before the mid-1970s of providing supportive diversity management, including caucus groups for African Americans and women? a. Texaco b. Xerox c. GM d. Ford ANSWER: B, Knowledge, Moderate, p. 531 267
  • 24. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY 94. When GM initiated cultural change, they created the __________ in order to make sure that all voices are heard. a. ERG: employee resource group b. RFG: regular feedback group c. CCG: communication competency group d. GMC: General Motors communicators ANSWER: A, Knowledge, Moderate, p. 531 95. United Technologies believes that __________ diversity is just as important as cultural diversity. a. gender b. age c. intellectual d. political ANSWER: C, Application, Difficult, p. 533 96. United Technologies uses all of the following diversity management practices except: a. maintaining a diverse pool of workers for career advancement. b. training managers to make accurate performance appraisals of subordinates. c. sponsoring forums and symposia for women and minorities. d. all of the above ANSWER: D, Knowledge, Easy, pp. 533–534 97. Which of the following is an unanticipated problem that can result from diversity programs? a. Older workers may be resistant to change. b. A stigma may be created for members targeted to benefit. c. Courts may intervene if progress is too slow. d. all of the above ANSWER: B, Knowledge, Moderate, p. 536 98. All of the following are problems that can occur when organizations begin the process of making improvements in their approach to cultural diversity except: a. some managers do not understand that cultural diversity can have organizational consequences. b. diversity may lead to creativity, but also breed conflicts. c. successfully recruiting women may irritate the men on the team. d. all of the above ANSWER: D, Knowledge, Easy, p. 537 268
  • 25. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY Essay Questions Learning Objective 1 1. Describe the core elements of culture. A culture is the unique pattern of shared assumptions, values, and norms that shape the socialization activities, language, symbols, and practices that unite members of a group and make them distinctive relative to nonmembers. Assumptions are the underlying thoughts and feelings that are taken for granted and believed to be true. Values are basic beliefs about a condition that has considerable importance and meaning to individuals and is stable over time. Socialization is a systematic process by which new members are brought into a culture and taught the norms for behavior. A symbol is anything visible that can be used to represent an abstract shared value or something having special meaning. Language is a shared system of vocal sounds, written signs, and/or gestures used to convey special meanings among members. Narratives are the unique stories, sagas, legends, and myths in a culture. Shared practices include taboos (forbidden behaviors) and rites and ceremonies (formal activities that generate strong feelings). Difficult, pp. 512–517 Learning Objective 2 2. Compare and contrast four types of organizational culture. Each organization’s culture is unique. Nevertheless, four general types of organizational cultures that are useful for comparing organizations are bureaucratic, clan, entrepreneurial, and market cultures. They are characterized by differences in formal control (ranging from stable to flexible) and focus of attention (ranging from internal to external). Moderate, pp. 517–519 3. Describe the four pure types of organizational cultures that exist. a. Bureaucratic is an organization where employees value formalization, rules, standard operating procedures, and hierarchical coordination. b. Clan is an organization where members value tradition, loyalty personal commitment, extensive socialization, teamwork, self-management, and social influence. Members recognize an obligation beyond the simple exchange of labor for a salary. c. Entrepreneurial is an organization characterized by high levels of risk taking, dynamism, and creativity. Members are committed to experimentation, innovation, and being on the leading edge. d. Market is an organization that emphasizes achievement of measurable and demanding goals, especially those that are financial and market based. Members recognize that hard-driving competitiveness and a profit orientation prevail throughout the organization. Moderate, pp. 518–519 4. Discuss how the types of organizational cultures can differ. 269
  • 26. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY Although all organizational cultures are unique, some general types of cultures can be identified. The four types discussed are bureaucratic, clan, entrepreneurial, and market cultures. They are characterized by differences in the extent of formal control (ranging from stable to flexible) and focus of attention (ranging from internal to external). Thus an organization could represent many blends of these pure cultural types, either as a whole or through its subcultures. Strong cultures may work for or against organizational performance depending on their fit with the demands of external stakeholders and the competitive environment. Difficult, pp. 517–519 5. Discuss how MBNA uses its communication competency to create a unique and highly functional culture. MBNA is the world’s largest independent credit card company, located in Wilmington, Delaware. It is a striking contrast to the other influential company in town—DuPont. While DuPont employees keep a low profile, MBNAers wear a characteristic look of suits and gold MBNA pins on their left lapel. One reporter said they look like Secret Service agents. MBNA workers tend to be in their mid-20s to mid-40s, physically fit and trim. They participate in many group activities and are considered to be cultish due to their strong culture. These qualities contribute to the firm’s strategic goals and successful performance in their industry. Moderate, p. 520 Learning Objective 3 6. Discuss several types of subcultures that may exist in organizations. The culture diversity of a workforce reflects the range of subcultures to which employees belong. When two organizations merge, the subcultures of the original firms may become subcultures within the new organization. Subcultures also reflect departmental and occupational differences. Subcultures that come about as a result of the demographic characteristics of employees include those based on age, gender, and ethnicity. In multicultural organizations, no one subculture dominates the others. The organizational culture reflects a blending of all the subcultures found within the organization. Difficult, pp. 521–526 270
  • 27. CHAPTER 18: ORGANIZATIONAL CULTURE AND CULTURAL DIVERSITY Learning Objective 4 7. Explain why managing cultural diversity is important and describe several activities required to manage it successfully. Concern about effectively managing workforce diversity reflects three types of organizational goals: complying with EEO laws and regulation, creating a positive organizational culture that makes work enjoyable for all employees, and creating economic value. Managing cultural diversity in order to achieve these objectives is a long-term process requiring substantial investments of time, money, and people. Organizations use many activities to manage diversity effectively. Diversity training and family-friendly practices are two popular approaches to creating a positive culture for a diverse workforce. An organization’s approach to managing diversity is determined by its specific goals and objectives as well as by the subcultures present within the organization. Difficult, pp. 527–530 8. Discuss the challenges to implementation of diversity programs. Diversity programs can be affected by unanticipated problems that can cause them to backfire. This is particularly true if the programs seem to reinforce stereotypes or highlight cultural differences that workers have tried to erase in order to fit into the company’s culture. Affirmative action programs can create a stigma for members of groups targeted to benefit, as they are perceived to have an unfair advantage. Thus, even the most qualified people are presumed to have acquired their positions due to their demographics rather than on the basis of merit. Three challenges faced by companies implementing changes are: 1) Managing reactions of members of the dominant culture, who may feel that they are losing their power base. 2) Synthesizing the diversity of opinions from individuals and using them as the basis for reaching agreement on meaningful issues. 3) Avoiding real and perceived tokenism and quota systems that are destructive to developing a positive culture while quantitative goals are being met. Difficult, pp. 536–537 271