MGMT chap 8 Quiz EXAM 2

1. A hierarchy culture has an internal focus and most values ____.

-flexibility
-stability and control
-external stakeholders
-community standards
-risk-taking

stability and control A hierarchy culture has an internal focus and values stability and control over flexibility.

2. The company dress code and award ceremonies are part of its ____.

ethical codes
mission statement
organization benefits
core values
observable artifacts

observable artifacts At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

3. Espoused values are _____.

-a narrative based on true events, which emphasize a particular value
-physical manifestations of its core beliefs
-the values and norms actually exhibited in the community
-explicitly stated values and norms preferred by an organization
-profit and cost expectations stated in the business plan

• explicitly stated values and norms preferred by an organization Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm’s founder or top managers.

4. Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and beliefs. Greg has encouraged the seasoned employees to retell stories about the company legends, and he plans on bringing back the monthly rewards. Greg is endeavouring to ____.

-embed company culture
-use a diversity plan
-establish a value system
-add heroes
-embed industry culture

embed company culture Changing organizational culture is a teaching process in which organizational members teach each other about the organization’s preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms; 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems and procedures.

5. A(n) ______ is a system of consciously coordinated activities or forces of two or more people.
-task plan
-culture
-closed system
-hierarchy of authority
-organization

organization According to Chester I. Barnard’s classic definition, an organization is a system of consciously coordinated activities or forces of two or more people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the entire StarKist Tuna Co.

6. Ann is a teacher who became interested in helping adults in some of the poorer neighborhoods learn how to read. She plans to start a reading center in a low income area to help residents with reading skills at no cost. Ann’s center is an example of a(n) _____.

-nonprofit organization
-for-profit organization
-association
-coop
-union

• nonprofit organization A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

7.The chain of command is also known as _____.
-the movement chart
-the horizontal specialization
-an analytics tool
-the organizational picture
-the vertical hierarchy

the vertical hierarchy The vertical hierarchy is also known as the chain of command.

8. The arrangement of having discrete parts of a task done by different people is known as a(n) ____.

-organization chart
-common purpose
-contingency approach
-employee structure
-division of labor

division of labor Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

9. A control mechanism for making sure the right people do the right things at the right time is a(n) _____.

-organization chart
-hierarchy of authority
-contingency design
-matrix structure
-division of labor

hierarchy of authority The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

10. Philip, a shift manager in a factory, has 40 employees on his shift that he directly supervises. The 40 workers who report directly to Philip represent his _____.
-unity of command
-hierarchy of authority
-span of direction
-span of control
-division of labor

span of control The span of control, or span of management, refers to the number of people reporting directly to a given manager.

11. A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the company’s culture or organizational culture.
True
False

True A system of shared beliefs and values that develops within an organization and guides the behaviour of its members is known as the company’s culture or organizational culture.

12. The IT network that allows for the movement of organizational information within that company is known as the organizational structure.
True
False

False Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization’s members so that they can work together to achieve the organization’s goals.

13. Thomas, an employee for a government contractor, likes the strict culture that he finds with ABC Industries, which supplies equipment parts to several government bases. There is very little focus on the external environment and little company flexibility due to the type of customers they serve. Since the product they sell needs little improvement and there is virtually no competition, few are risks taken. This is an example of an adhocracy culture.
True
False

False A hierarchy culture has an internal focus and values stability and control over flexibility. An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products (new drugs) by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done (drug research).

14. Organizational culture appears as five layers: observable artifacts, espoused values, basic assumptions, informal groups, and management groups.
True
False

False Organizational culture appears as three layers: (1) observable artifacts, (2) espoused values, and (3) basic assumptions.

15. Hannah, the youngest owner of a family-owned grocery, wants to make sure her company’s culture is embedded in their organization. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees.
True
False

True Embedding organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization’s preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems & procedures.

16. According to Chester I. Barnard, an organization is made up of at least one person who strives daily to achieve the organization’s goals.
True
False

False According to Chester I. Barnard’s classic definition, an organization is a system of consciously coordinated activities or forces of two or more people.

17. Mutual-benefit organizations are voluntary collectives whose purpose is to advance members’ interests, while nonprofit organizations are formed to offer services to some clients, not to make a profit.
True
False

True Mutual-benefit organizations are voluntary collectives whose purpose is to advance members’ interests (examples: unions, trade associations). Nonprofit organizations are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft, Dell Computer. Delta Airlines).

18. Productivity expert Odette Pollar proposed that "To accomplish more in a day, you must do more and do everything faster."
True
False

False Oakland, California, productivity expert Odette Pollar proposed that "To do more in a day, you must do less—not do everything faster."

19. Two advantages of decentralization are that managers are encouraged to not solve their own problems, but ask for assistance as soon as possible, and decisions are made slower, since they are discussed at a higher level of management.
True
False

False An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization’s flexibility and efficiency.

20. When managers and employees within the same department are brought together in cross-functional teams to solve particular problems, this is a team-based design.
True
False

True When managers from different functional divisions are brought together in cross-functional teams to solve particular problems, the barriers between the divisions break down. The focus on narrow divisional interests yields to a common interest in solving the problems that brought them together.

In the Mary Kay Cosmetics Co., the best salespeople receive pink Cadillacs in special awards ceremonies. This is an example of a:
Symbol
Value
Rite or ritual
Both A and C

The correct answer is "D". Page: 240 LO: 1 Difficulty: Moderate AACSB: 6, 9 BT: Knowledge

The United Way, a charitable organization, is considered a ______ organization.
For-profit
Nonprofit
Mutual-benefit
May be any one of the above

The correct answer is "B" – nonprofit

XYZ Hospital has a Chief of Medical Services, a Director of Administrative Services, and a Director of Outpatient Services. XYZ has a ___________ structure.
Functional
Simple
Divisional
Matrix

The correct answer is "A" – functional.