Question 1

Organizations using which of the following approaches have the lowest level of commitment to social responsibility?
A) accommodative approach
B) proactive approach
C) defensive approach
D) obstructionist approach

Accepted Answer

The obstructionist approach is marked by the lowest level of commitment to social responsibility as it involves doing the bare minimum required by law and avoiding any additional efforts towards social responsibility.

Question 2

Which of the following statements about property rights is true?
A) In an organization top managers have the strongest property rights.
B) Distribution of property rights has no effect on the instrumental values in the organization.
C) The property rights are the rights of the customers to demand compensation when a product purchased by them is faulty.
D) The distribution of property rights to different stakeholders determines how effective an organization is.

Accepted Answer

The distribution of property rights to different stakeholders determines how effective an organization is. This is because property rights define who has control over organizational resources and how they can be used. The stronger the property rights of key stakeholders like shareholders, managers, or customers, the more effective an organization is likely to be in achieving its goals.

Question 3

The socialization programs used in companies like 3M and Microsoft recognize their most creative people with special job titles. This is an example of a rite of ________.
A) differentiation
B) passage
C) responsibility
D) integration

Accepted Answer

This is an example of a rite of passage, which marks a person's transition from one status to another. The special job titles recognize the transition of employees from being simply workers to being recognized as the most creative individuals in the company.

Question 4

A high-tech company has a casual dress code. This dress code is considered a part of the organizational ________.
A) theory
B) structure
C) design
D) language

Accepted Answer

The dress code is part of the organizational language, which includes symbols, rituals, and practices that convey the company's culture and values.

Question 5

Pension and severance pay are the examples of the property rights given to the ________.
A) suppliers
B) customers
C) workforce
D) shareholders

Accepted Answer

Pension and severance pay are property rights given to the workforce, as these benefits are typically provided to employees as part of their employment contract. Suppliers, customers, and shareholders do not typically receive these types of benefits.

Question 6

The distribution of property rights in an organization influences the ________.
A) stance of the organization on the corporate social responsibility
B) individual ethics of the employees
C) instrumental values that shape employee behavior
D) richness of the organization's environment

Accepted Answer

The distribution of property rights in an organization influences the instrumental values that shape employee behavior. Property rights determine who has control over assets and resources, which can impact decision-making, incentives, and behaviors within the organization. For example, if property rights are concentrated in the hands of top-level executives, then lower-level employees may be less likely to take risks or challenge authority. On the other hand, if property rights are distributed more evenly among employees, then there may be greater collaboration, innovation, and motivation to contribute to the organization's success. The distribution of property rights is not necessarily a direct influence on a company's stance on corporate social responsibility or the individual ethics of employees. It may indirectly shape these factors by impacting organizational culture, incentives, and power dynamics. The richness of the organization's environment is not directly related to the distribution of property rights.

Question 7

What are golden parachutes?
A) the rights of the managers to lay off employees if they are not performing well
B) the rights of the customers to receive compensation if the product bought by them is faulty
C) rights of the managers to receive large sums of money if they are fired when their company is taken over
D) the rights of the workers to receive compensation if they are injured on the job

Accepted Answer

Golden parachutes refer to the compensation packages that are provided to top executives or managers in a company in the event of their termination due to a merger or takeover. These packages often include large sums of money, stock options, and other perks, which are designed to provide some financial security to the executives who may lose their jobs due to the change in ownership or leadership.

Question 8

A manager in a company believes that it is ok to give illegal bribes to city officials to get favorable decisions. His stance on corporate social responsibility could best be described as ________.
A) defensive
B) obstructionist
C) accommodative
D) proactive

Accepted Answer

The manager's stance on corporate social responsibility is obstructionist, as he is advocating for illegal and unethical behavior in order to benefit the company. This goes against the idea of being socially responsible and ethical in business practices.

Question 9

Which of the following is used to convey cultural values to organizational members?
A) annual reports
B) organizational stories
C) red herring prospectus
D) BCG matrix

Accepted Answer

Organizational stories are used to convey cultural values to organizational members. They can help members understand the history and values of the organization, as well as what is important to its leaders. Annual reports provide financial information and performance metrics, but do not necessarily convey cultural values. A red herring prospectus is a preliminary prospectus used to gauge investor interest in an upcoming securities offering. The BCG matrix is a tool used to analyze a company's product portfolio.

Question 10

Which of the following terms refers to the authority that an organization gives to its members to receive and use organizational resources?
A) enhancement rights
B) patents
C) property rights
D) licenses

Accepted Answer

Property rights refer to the authority that an organization gives to its members to receive and use organizational resources, encompassing the rights to possess, use, and manage specific assets.

Question 11

Which of the following statements is most likely to be true regarding organic organizational structures?
A) Organic structures are taller than mechanistic structures.
B) Organic structures encourage a culture in which predictability and stability are the desired end states.
C) In organic structures people are encouraged to be creative and to take risks.
D) Organic structures are highly centralized.

Accepted Answer

Organic structures are known for being flexible, adaptable, and decentralized. These characteristics encourage employees to be creative, take risks, and think outside the box. Organic structures are also typically flatter than mechanistic structures, as there is less emphasis on hierarchy and more focus on collaboration and teamwork. However, predictability and stability may not be the desired end states in an organic structure.

Question 12

The term "________" refers to a manager's duty or obligation to make decisions that nurture, protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.
A) rite of enhancement
B) organizational citizenship
C) social responsibility
D) rite of integration

Accepted Answer

The term described in the question is social responsibility. Social responsibility is the ethical theory and system of obligations that individuals, organizations, and governments have to promote the welfare and well-being of stakeholders and society as a whole. It requires managers to make decisions with consideration to the impacts on society and the environment, in addition to the economic goals of the organization. Organizational citizenship refers to the voluntary activities and behaviors that go beyond the formal job description, while rites of enhancement and integration are not relevant to the concept of social responsibility.

Question 13

In an organization, who has the strongest property rights?
A) shareholders
B) top managers
C) employees
D) customers

Accepted Answer

Shareholders have the strongest property rights in an organization because they own the company and thus have the right to make decisions regarding the company's property and assets. Top managers and employees are employees of the company and do not have ownership rights. Customers also do not have property rights in the company as they are only purchasing goods or services.

Question 14

Cultural values of the organization are most likely to be derived from ________.
A) the practices followed by the competitors
B) the beliefs of the founders
C) the preferences of the customers
D) the opinions of the industry experts

Accepted Answer

The cultural values of an organization are most likely to be derived from the beliefs of the founders, as they are the ones who establish the core values and principles of the organization. While practices followed by competitors and opinions of industry experts may influence the organization's culture, they are not the primary source. Preferences of customers may influence the organization's strategy and actions, but not necessarily the cultural values.

Question 15

Which of the following statements is true regarding mechanistic organizational structures?
A) Mechanistic structures are highly decentralized.
B) Mechanistic structures encourage a culture in which innovation and flexibility are the desired end states.
C) Mechanistic structures are flat.
D) Mechanistic structures give little personal autonomy to employees.

Accepted Answer

Mechanistic organizational structures are known for their rigid, hierarchical nature with a focus on specific tasks and standardization. This often results in limited personal autonomy for employees.

Question 16

One manufacturing company in the aluminum industry has an innovative culture, and a competitor from the same country has a conservative culture. What could account for this difference in organizational culture?
A) stance on social responsibility
B) environmental richness
C) organizational structure
D) societal ethics

Accepted Answer

Organizational structure can heavily impact the culture of a company. The innovative culture may be a result of a more flexible and adaptable structure, while the conservative culture may be a result of a more rigid and traditional structure.

Question 17

Golden parachutes are property rights generally given to the ________.
A) managers
B) suppliers
C) shareholders
D) customers

Accepted Answer

Golden parachutes are usually contractual agreements granted to top level executives/managers of a company in case of a merger or acquisition. These agreements ensure that the executives receive a lucrative payout or benefits package if they are terminated or displaced due to the restructuring of the company. Shareholders, suppliers, and customers are not typically granted golden parachutes.

Question 18

Which of the following is a source of organizational culture?
A) environmental dynamism
B) organizational specialization
C) property rights
D) environmental richness

Accepted Answer

Property rights influence organizational culture by shaping the values, norms, and behaviors within an organization, as they determine how resources and rewards are distributed.

Question 19

Managers adopting the ________ approach to social responsibility agree that organizational members ought to behave legally and ethically. These managers want to make choices that are reasonable in the eyes of society and want to do the right thing when called on to do so.
A) integrative
B) obstructionist
C) accommodative
D) associative

Accepted Answer

Managers adopting the accommodative approach to social responsibility agree that organizations should behave legally and ethically and want to do the right thing when called on to do so. They want to make choices that are reasonable in the eyes of society and are willing to go beyond legal requirements to meet the expectations of stakeholders.

Question 20

Samantha is a manager in a company. She believes strongly in following existing laws, but when making ethical choices, she puts the claims of the shareholders above the other stakeholders. Her stance on corporate social responsibility could best be described as ________.
A) defensive
B) obstructionist
C) accommodative
D) proactive

Accepted Answer

Samantha's approach aligns with a defensive stance on corporate social responsibility, as she prioritizes compliance with the law and shareholder interests, without actively seeking to advance broader social goals.

Quiz 7: Creating and Managing Organizational Culture

Organizations using which of the following approaches have the lowest level of commitment to social responsibility?

Which of the following statements about property rights is true?

The socialization programs used in companies like 3M and Microsoft recognize their most creative people with special job titles. This is an example of a rite of ________.

A high-tech company has a casual dress code. This dress code is considered a part of the organizational ________.

Pension and severance pay are the examples of the property rights given to the ________.

The distribution of property rights in an organization influences the ________.

What are golden parachutes?

A manager in a company believes that it is ok to give illegal bribes to city officials to get favorable decisions. His stance on corporate social responsibility could best be described as ________.

Which of the following is used to convey cultural values to organizational members?

Which of the following terms refers to the authority that an organization gives to its members to receive and use organizational resources?

Which of the following statements is most likely to be true regarding organic organizational structures?

The term "________" refers to a manager's duty or obligation to make decisions that nurture, protect, enhance, and promote the welfare and well-being of stakeholders and society as a whole.

In an organization, who has the strongest property rights?

Cultural values of the organization are most likely to be derived from ________.

Which of the following statements is true regarding mechanistic organizational structures?

One manufacturing company in the aluminum industry has an innovative culture, and a competitor from the same country has a conservative culture. What could account for this difference in organizational culture?

Golden parachutes are property rights generally given to the ________.

Which of the following is a source of organizational culture?

Managers adopting the ________ approach to social responsibility agree that organizational members ought to behave legally and ethically. These managers want to make choices that are reasonable in the eyes of society and want to do the right thing when called on to do so.

Samantha is a manager in a company. She believes strongly in following existing laws, but when making ethical choices, she puts the claims of the shareholders above the other stakeholders. Her stance on corporate social responsibility could best be described as ________.