Question 1

Tansal is a new marketing manager for JustBooks, a small bookstore chain in the Midwest. He has been told by the human resources department that management thinks he is having difficulty assimilating into the organization culture of the company. To improve his situation, Tansal should consider whether
A)the organization culture is too weak for a strong personality like him.
B)he should spend more time socializing with the top managers.
C)his educational qualifications are too high for the position he is doing.
D)his dress, behavior, and interactions fit in with those of his colleagues.
E)he needs to increase the success rate of his marketing campaigns.

Accepted Answer

Tansal has been told that management thinks he is having difficulty assimilating into the organization culture of the company. To improve his situation, he should consider whether his dress, behavior, and interactions fit in with those of his colleagues. This indicates that there might be a cultural misalignment between Tansal and the organization, and adjusting his behavior to fit in with the company's culture could help him assimilate better. The other options, such as spending more time socializing with top managers or increasing the success rate of marketing campaigns, may not necessarily address the issue of cultural fit that Tansal is facing.

Question 2

Which of the following statements about organizational culture is true?
A)Corporate mission statements are always a true expression of a firm's culture.
B)Who is hired and fired and why indicate the firm's real values and are a clue to the culture.
C)A firm with a strong culture will have different people holding different values.
D)A culture that was advantageous in a prior era continues to be so in a new environment.
E)It is not necessary to consider culture when considering a merger.

Accepted Answer

The statement "Who is hired and fired and why indicate the firm's real values and are a clue to the culture" is true because a company's actions reveal its true values, rather than its mission statement or other public-facing materials. A company's culture is reflected in its behavior and decisions, including who it chooses to hire and who it chooses to let go.

Question 3

Corporate mission statements, business practices, symbols and ceremonies, and the stories people tell can all give clues to
A)organizational climate.
B)organizational culture.
C)competitive environment.
D)external environment.
E)macroenvironment.

Accepted Answer

Mission statements, business practices, symbols, and ceremonies are all elements of organizational culture, which refers to the shared values, beliefs, attitudes, and behaviors that guide how people within an organization interact with each other and stakeholders outside the organization. Climate refers to the prevailing mood or atmosphere within an organization, while the competitive environment, external environment, and macroenvironment are all external factors that can impact an organization.

Question 4

In some situations, two or more organizations work together using ________ to influence the environment.
A)independent strategies
B)competitive aggression
C)cooperative strategies
D)competitive pacification
E)public relations

Accepted Answer

When two or more organizations work together to influence the environment, it is known as cooperative strategies. In this approach, organizations combine their resources and expertise to achieve mutual goals or objectives. This can be beneficial in situations where individual organizations might not have the capacity to achieve their objectives alone or where there is a need for a more collaborative approach to achieve results. Cooperative strategies can involve a range of activities, from joint ventures and partnerships to alliances and networks, and can be particularly useful in complex or uncertain environments.

Question 5

Which of the following is the best description of organizational culture?
A)conditions that prevent new companies from entering an industry
B)the network that obtains raw materials, transforms them into products, and distributes them to customers
C)the process of searching out information that is unavailable to most people and sorting through it to interpret what is important and what is not
D)the process of comparing an organization's practices and technologies with those of other companies
E)a system of shared values about what is important and beliefs about how the world works

Accepted Answer

Organizational culture refers to the system of shared values about what is important and beliefs about how the world works within an organization. Culture can shape behavior and decision-making within a company, and may vary between organizations. Options A, B, C, and D do not accurately describe organizational culture.

Question 6

Diversified Industries decides to use the expertise it has from its canned-pet-food division and its health-food division to enter the fast-growing market for fresh, natural pet foods. This is an example of
A)diversification.
B)benchmarking.
C)a merger.
D)domain selection.
E)an acquisition.

Accepted Answer

Domain selection involves entering a new market or industry with existing expertise. Diversified Industries is using its expertise from related divisions to enter a new market, which is a classic example of domain selection.

Question 7

Little Learners is a company that designs and manufactures fun and educational toys. The company makes it a point to stress to its employees that innovation is its core strength. The employees even get an hour a day to brainstorm and come up with out-of-the-box ideas. This highlights the ________ of the company.
A)cooperative strategies
B)external environment
C)organization culture
D)competitive pacification
E)domain selection

Accepted Answer

The company's emphasis on innovation and granting an hour a day for brainstorming indicates a strong organizational culture that values creativity and new ideas as a core strength.

Question 8

NBIC (National Bicycle Industrial Company)of Japan specializes in mass customization to cater to the changing demands of its customers. Customers can choose the frame and other parts of the bicycle and it is made according to their order. This is one example of how NBIC uses
A)cooptation.
B)flexible processes.
C)smoothing techniques.
D)benchmarking.
E)diversification.

Accepted Answer

NBIC is using flexible processes to cater to the changing demands of its customers through mass customization.

Question 9

Which of the following would be a sign of a weak organizational culture?
A)Everyone knows the organization's goals.
B)Everyone understands how things are done.
C)Everyone believes in the company's mission.
D)Everyone uses a rulebook to decide what to do.
E)Everyone helps new employees fit in.

Accepted Answer

If everyone in the organization is relying on a rulebook to decide what to do, it suggests that there is no clear understanding of the company's values and norms that guide behavior. This can indicate a weak organizational culture where employees do not have a strong sense of shared identity and purpose.

Question 10

Tim Compton, communications manager for SellRight Products, said to his CEO, "We must do some damage control, and we must act on our own, using an independent strategy. I recommend that we
A)issue a press release." (public relations)
B)negotiate a new agreement with our supplier." (contraction)
C)appoint a retired former client to our board of directors." (cooptation)
D)work with our trading partners to seek relief." (coalition)
E)work with a competitor to jointly demand a recount." (cooperation)

Accepted Answer

Issuing a press release is the best option for damage control as it allows SellRight Products to communicate directly with the public and industry stakeholders, clarifying any false information or correcting any misunderstandings. It also shows a proactive approach to addressing the situation. Contracting with the supplier, appointing a retired client to the board, working with trading partners, or cooperating with a competitor are all potential strategies, but they may not directly address the issue at hand or could potentially create new problems.

Question 11

Paolo has been offered jobs at two different retail companies and needs to decide which one to accept. Which of the following can be a useful clue about each organization's culture?
A)the way employees interact with customers
B)information printed in the media about stock prices
C)the macroenvironment
D)the personality characteristics of employees
E)the industrial environment

Accepted Answer

The way employees interact with customers can give clues about the organization's culture, such as the level of customer service expected and the attitude towards customers.

Question 12

The set of important assumptions about an organization and its goals and practices that members of the company share is called organization
A)culture.
B)design.
C)climate.
D)layout.
E)structure.

Accepted Answer

The set of important assumptions about an organization and its goals and practices that members of the company share is known as organizational culture. Organizational design refers to the formal systems, structures, and processes that an organization uses to achieve its goals. Organizational climate refers to the atmosphere or work environment in an organization. Layout refers to the arrangement of physical elements within a space, while structure refers to the way in which an organization is organized, including its hierarchy and reporting lines.

Question 13

The attitude and behavior patterns that shape people's experience of an organization is called an organizational
A)culture.
B)climate.
C)environment.
D)strategy.
E)adhocracy.

Accepted Answer

The answer of The attitude and behavior patterns that shape...

Question 14

Paul Oglesby, North American division manager for Rembrandt Products, was in crisis. His entire marketing and sales staff had resigned yesterday to start up a new firm. Next year's business plan for his division was due in 10 days, and Paul did not have a sense of his clients' needs nor his competitors' strategies. Thus, he did not know how to prepare his business plan. By not having the information necessary to decide how best to manage in his competitive environment, Paul was lacking
A)competitive intelligence.
B)environmental complexity.
C)environmental uncertainty.
D)performance gaps.
E)environmental dynamism.

Accepted Answer

Competitive intelligence is the information necessary for making informed decisions in a competitive environment. Since Paul lacks the necessary information, he is lacking competitive intelligence. Environmental complexity refers to the number of components in a company's external environment, while environmental uncertainty refers to the amount and type of change in the external environment. Performance gaps refer to discrepancies between desired and actual performance, and environmental dynamism refers to the rate at which change occurs in the external environment. None of these terms fully capture Paul's situation.

Question 15

A human resources manager is considering changing her company's vacation policy. Before she makes a proposal to the senior executive team, she researches the vacation policies of other leading companies in her industry. This is an example of
A)benchmarking.
B)demographics.
C)inputs.
D)buffering.
E)smoothing.

Accepted Answer

Benchmarking involves comparing a company's processes and policies to those of other companies in the same industry in order to identify areas for improvement. In this case, the HR manager is researching vacation policies of other leading companies in her industry to determine whether her company's policies are competitive and to gather ideas for potential changes.

Question 16

Kate, the manager of Halpern Tooling Company, wants to create a stronger, more positive culture at the company. How might Kate promote and encourage a stronger culture?
A)Create a spreadsheet showing that employees are better paid than at other companies.
B)Treat employees to a lunch/presentation that showcases the firm's goals and priorities.
C)Analyze the macroenvironment of the company and that of its competitors.
D)Analyze the competitive environment and competitive intelligence of the company.
E)Suggest that supervisors review the company handbook with their departments.

Accepted Answer

The answer of Kate, the manager of Halpern Tooling Company,...

Question 17

Marla's Basement is a small retail store that specializes in antique figurines and decorative knickknacks. In analyzing the environment, Marla has uncovered the following interesting findings:1. Marla has recently purchased more inventory than in the past. The people from whom she buys are selling off more knickknacks because their children are not interested in this type of decorative items and they would prefer to liquidate unnecessary household items to help them with their daily expenses.2. Marla discovered that her business is in a historical preservation district. As she considers remodeling the shop, she realized that she must pay attention to the guidelines set forth in the governing laws.3. Marla's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern decor, so the customer base to which she sells is shrinking.4. Marla has been told that she should consider selling her inventory via the Internet, but she does not own (or understand how to use)a computer.5. In reading a survey of regional business, Marla discovered that there are no other antique knickknack stores within 200 miles. Which of the following elements of the macroenvironment was part of Marla's findings?
A)sustainability
B)psychology
C)corporate governance
D)sociology
E)technology

Accepted Answer

The answer of Marla's Basement is a small retail store...

Question 18

In comparison to organizational culture, organizational climate
A)is more deeply held.
B)is based on values rather than attitudes.
C)does not have a discernible pattern.
D)can be measured more readily.
E)is less easy to manage.

Accepted Answer

Organizational climate can be measured more readily than organizational culture. Organizational culture is a more abstract concept and can be difficult to measure, while organizational climate refers to the tangible and observable aspects of the work environment, such as employee attitudes, leadership styles, and communication patterns, which can be measured using surveys, assessments, or observations.

Question 19

Maria's mentor has taught her that managing culture within Frederick Construction, Inc., requires time and effort, but that the best managers understand its importance. A very important part of Frederick Construction's culture is emphasis on employee safety. Determine which action below would not be among the ways that Maria reinforces a desired safety culture.
A)Maria publicly celebrates the zero injury rate for Dave's project.
B)Maria assesses job candidates' background and attention to safety in the workplace.
C)Maria schedules safety training for all new employees.
D)Maria supports Teresa for firing a subcontractor who refused to abide by Frederick Construction's safety procedures.
E)Maria allows Candace to miss her required annual safety training due to budget and time constraints.

Accepted Answer

All of the other actions listed demonstrate an emphasis on safety culture, while allowing an employee to skip required safety training goes against this culture. Safety training is essential for maintaining a safe workplace, so allowing an employee to skip it due to budget or time constraints could increase the risk of injury or accidents.

Question 20

What is the purpose of benchmarking?
A)to save money
B)to reduce the workforce
C)to adopt best practices
D)to expand internationally
E)to diversify products

Accepted Answer

The purpose of benchmarking is to identify and adopt best practices from other organizations in order to improve performance and achieve operational excellence. It is not primarily focused on saving money, reducing the workforce, expanding internationally, or diversifying products, although those may be potential outcomes of effective benchmarking.

Quiz 2: The External and Internal Environments

Which of the following statements about organizational culture is true?

Corporate mission statements, business practices, symbols and ceremonies, and the stories people tell can all give clues to

In some situations, two or more organizations work together using ________ to influence the environment.

Which of the following is the best description of organizational culture?

Diversified Industries decides to use the expertise it has from its canned-pet-food division and its health-food division to enter the fast-growing market for fresh, natural pet foods. This is an example of

NBIC (National Bicycle Industrial Company) of Japan specializes in mass customization to cater to the changing demands of its customers. Customers can choose the frame and other parts of the bicycle and it is made according to their order. This is one example of how NBIC uses

Which of the following would be a sign of a weak organizational culture?

Tim Compton, communications manager for SellRight Products, said to his CEO, "We must do some damage control, and we must act on our own, using an independent strategy. I recommend that we

Paolo has been offered jobs at two different retail companies and needs to decide which one to accept. Which of the following can be a useful clue about each organization's culture?

The set of important assumptions about an organization and its goals and practices that members of the company share is called organization

The attitude and behavior patterns that shape people's experience of an organization is called an organizational

A human resources manager is considering changing her company's vacation policy. Before she makes a proposal to the senior executive team, she researches the vacation policies of other leading companies in her industry. This is an example of

Kate, the manager of Halpern Tooling Company, wants to create a stronger, more positive culture at the company. How might Kate promote and encourage a stronger culture?

In comparison to organizational culture, organizational climate

What is the purpose of benchmarking?