1. Expert power usually stems from |
a |
2. Which of the following statements about power is true? |
d |
3. An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is |
b |
4. _______ includes a requirement that management assess the effectiveness of an organization’s internal controls and commission an audit of these controls by an external auditor in conjunction with the audit of its financial statements. |
c |
5. When considering centralized and decentralized structures, which one tends to be more ethical and why? |
c |
6. The ability to influence the behavior of others by offering them something desirable is best described as |
b |
7. An advantage of the decentralized organization is that |
d |
8. When developing an ethical culture, there has to be a(n) _____ element because every organization has employees that will try to take advantage if there is an opportunity for misconduct. |
d |
9. The apathetic organizational culture exhibits |
c |
10. The exacting organizational culture is interested in |
a |
11. Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as |
e |
12. Which of the following statements about corporate culture is false? |
b |
13. No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent |
e |
14. A cultural audit may be used to assess |
d |
15. The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary concern about these new incentives is |
c |
16. Marcus is the best performing development director his non-profit organization has ever had. He possesses countless tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have _____ over new development department staff. |
d |
17. _____ bring together the functional expertise of employees from several different areas of the organization on a single project. |
c |
18. Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as |
b |
19. In order for whistle-blowing to be effective, |
d |
20. Which of the following statements about group norms is false? |
e |
21. Management’s sense of the organization’s culture |
d |
22. Motivation is defined as |
b |
23. When a foreman orders an assembly-line employee to carry out a task which the employee perceives as unethical, yet the employee feels compelled to do it because of the foreman’s position, the foreman is exercising |
a |
24. To motivate employees, an organization offers _____ to _____ employees to work toward organizational objectives. |
c |
25. Which of the following cultures combines high levels of concern for people and performance? |
c |
26. Ethical concerns in centralized structures can occur because of very little |
b |
27. A high concern for people but minimal concern for performance can best describe the _____ culture. |
a |
28. The establishment of an ethics committee within an organization |
c |
29. New employees in bureaucratic organizations usually have ___________ into the basic operating rules and procedures for getting things done. |
e |
30. _____ are used to subdivide duties within functional areas of a company. |
a |
31. The _____ leader demands instantaneous obedience and focuses on punishing wrong behavior, achievement, initiative, and self-control. |
d |
32. Melinda is a very popular executive. She inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. Melinda has helped to create a(n) _____ culture. |
c |
33. _____ are satisfied by social and interpersonal relationships, and _____ are satisfied by creative or productive activities. |
d |
34. Over the years, scholars have developed more than 100 definitions of culture. According to the text, all have the following common elements: |
a |
35. Because all organizations have some type of culture, _____ and _____ are often used interchangeably. |
c |
36. Both individual ethics and organizational ethics have an impact on an employee’s |
e |
37. A values-based ethics approach to ethical corporate cultures relies on a(n) _____ that defines the firm as well as how customers and employees should be treated |
b |
38. The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets is referred to as |
d |
39. The Sarbanes-Oxley Act |
b |
40. The ____ rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent. |
d |
41. Why do centralized organizations tend to be more ethical than decentralized ones? Can you think of a situation or example in which a decentralized organization might be more ethical than a centralized one? |
Because of the strict formalization and implementation of ethics policies and procedures in centralized organizations, they tend to be more ethical in their practices than decentralized organizations. Centralized organizations may also exert more influence on their employees because they have a central core of policies and codes of ethical conduct. However, it is also true that decentralized organizations may avoid ethical dilemmas through the use of effective codes of conduct and ethics. Students will come up with their own examples of ethical decentralized companies. One good example of a decentralized organization often perceived as ethical is Zappos. Zappos strives to be an ethical corporate citizen through its emphasis on a fun working environment, employee empowerment, and WOW customer service. |
42. How do societal expectations affect corporations and their ethical initiatives? Give an example of a company that had to alter a product or service because of society’s concerns about its health, moral, or social impacts. |
Students can use the entire chapter to discuss this question. If society deems a certain action taken by a business as unethical, even if it’s legal, it is likely legislation will follow. Conversely, members of society are important stakeholders; therefore, companies know they must meet their expectations not only so they are viewed as ethical, but also as a way to attract stakeholders to their good or service. Students may come up with many examples of companies that have changed their goods, services, or business practices in light of societal expectations. One good example is the fast-food industry. Many restuarants are putting healthier items in kid’s meals or are getting rid of toys in kid’s meals due to concerns over the childhood obesity epidemic. |
43. Describe the four organizational cultures and provide a company example of each organizational culture. |
The four types of corporate cultures are apathetic, caring, exacting, and integrative and are based on how much concern they have for people and profits. An apathetic culture shows minimal concern for people or profits. Individuals in this culture focus mainly on their own self-interests. Countrywide might be an example of this before the recession. Employees were encouraged to sell to borrowers, even when they could not afford the loan, going so far as to create "liar loans" for them. This seriously jeopardized the long-term well-being of the organization. A caring culture exhibits high concern for people over profits. The Container Store might be a good example of this. The Container Store views employees as its most important stakeholder. An exacting culture shows more concern for profits over people. UPS has a an exacting culture and holds employees to high standards. However, even an exacting culture should show concern for people if it wants to be successful. An integrative culture shows high concern for both people and profits. Starbucks is an example of an integrative culture. This culture is characterized by the fact that employees see themselves as important to meeting the firm’s performance criteria. |
44. Describe the different kinds of power. Are some types of power more likely to result in ethical behavior than others? |
The five power bases include reward power, coercive power, legitimate power, expert power, and referent power. Reward power refers to a person’s ability to influence the behavior of others by offering them something desirable. Reward power can get people to change their behavior in the long-run but is not as effective in the short-run as coercive power. Coercive power penalizes actions or behaviors to induce change. It is highly effective in the short-run. However, followers get resentful in the long-run and coercive power tends to fall apart. Legitimate power stems from the belief that a person has the right to exert influence and certain others have an obligation to accept it. A boss often has legitimate power. Many people tend to acquiesce to individuals perceived to have legitimate power. Expert power is derived from a person’s knowledge (or a perception that a person possesses knowledge). Expert power has high credibility among followers. Referent power may exist when one person perceives that his or her goals or objectives are similar to another’s. Identification with others helps boost the decision maker’s confidence. |
45. How do group norms influence the ethical behavior of an organization? What happens when the norms of a particular group conflict with the organization’s corporate culture or objectives? |
Group norms are standards of behavior groups expect of their members. Just as corporate culture establishes behavior guidelines for an organization’s members, group norms help define acceptable and unacceptable behavior within a group. In particular, group norms define the limit allowed on deviations from group expectations. Norms also provide explicit ethical directions. They have the power to enforce a strong degree of conformity among group members. At the same time, they define the different roles for various positions within the organization. Sometimes group norms conflict with the values and rules prescribed by the organization’s culture. If this happens, it often results in a culture that is inconsistent with its purported rules and values. In this case, management should take corrective action and continually monitor not only the corporate culture but the norms of all the various groups in the organization. |
46. Which of the following is an informal channel of communication? |
b |
47. Which power is likely to be effective in the short-run but not in the long-run? |
a |
48. Because company retaliation of whistle-blowers is illegal, incidents of retaliation taken against employees are rare today. |
a |
49. Non-profit organizations, corporations, and government agencies all have their own organizational cultures. |
a |
50. A cultural audit can be performed internally within the organization. |
a |
51. Approximately 40 percent of employees believe their own values are superior to the company’s and will always follow their own beliefs. |
b |
52. Committees, work groups, and teams are all types of formal groups. |
a |
BUSI 4601 Chapter 7
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