Chapter 17 Organizational Culture

MULTIPLE CHOICE

Institutionalization: A Forerunner of Culture

1. When an organization takes on a life of its own, we can say that it has _____.
a. acquired a culture
b. developed subcultures
c. evolved
d. become immortal
e. become institutionalized
(e; Moderate; Institutionalization; p. 551)

2. Which of the following is not true about institutionalization?

a. It operates to produce common understandings about appropriate behavior.
b. Acceptable modes of behavior become largely self-evident to its members.
c. It means the organization has acquired immortality.
d. The organization’s mission becomes stable.
e. The organization becomes valued for itself.
(d; Challenging; Institutionalization; p. 551) {AACSB: Analytic Skills}

What Is Organizational Culture?

3. _____is a shared system of meaning held by the organization’s members that distinguishes the
organization from other organizations.
a. Institutionalization
b. Organizational culture
c. Socialization
d. Formalization
e. Corporate image
(b; Easy; Organizational Culture; p. 551)

4. Which of the following is not a characteristic of organizational culture?

a. attention to detail
b. innovation
c. formality orientation
d. team orientation
e. outcome orientation
(c; Moderate; Characteristics of an Organizational Culture; pp. 551-552) {AACSB: Analytic Skills}

5. The key characteristic of organizational culture that addresses the degree to which employees
are expected to exhibit precision is termed _____.
a. accuracy orientation
b. accountability
c. attention to detail
d. stability
e. reactivity
(c; Easy; Attention to Detail; p. 551)

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6. _____ orientation is the characteristic of organizational culture that addresses the degree to
which management decisions take into consideration the effect of outcomes on people within the
organization.
a. Humanistic
b. Community
c. Team
d. People
e. Relationship
(d; Moderate; People Orientation; p. 552)

7. The key characteristic of organizational culture that addresses the degree to which people are
competitive rather than easygoing is termed _____.
a. assertiveness
b. competitiveness
c. aversiveness
d. risk taking
e. aggressiveness
(e; Moderate; Aggressiveness; p. 552)

8. The key characteristic of organizational culture that assesses the degree to which organizational
activities emphasize maintaining the status quo in contrast to growth is termed _____.
a. permanence
b. aggressiveness orientation
c. stability
d. competitiveness
e. reflexivity
(c; Easy; Stability; p. 552)

9. In contrasting organizational culture with job satisfaction, organizational culture is a(n) _____
term, while job satisfaction is a(n) _____ term.
a. predictive; reactive
b. implied; stated
c. reflective; affective
d. descriptive; evaluative
e. inductive; deductive
(d; Moderate; Organizational Culture and Job Satisfaction; p. 552) {AACSB: Analytic Skills}

10. The macro view of culture that gives an organization its distinct personality is its _____ culture.
a. dominant
b. sub-
c. strong
d. national
e. marginal
(a; Easy; Dominant Culture; p. 553)

11. A dominant culture is _____.

a. the sum of an organization’s subcultures
b. defined by the leader of an organization
c. synonymous with an organization’s culture
d. usually a strong culture
e. likely to be a weak culture
(c; Moderate; Dominant Culture; p. 553)

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12. Cultures within an organization that are defined by departmental designations are often called
_____.
a. micro-cultures
b. subcultures
c. divisional cultures
d. microcosms
e. counter cultures
(b; Moderate; Subcultures; p. 554)

13. Which characteristic is not reflective of subcultures?

a. includes core values of the organization
b. typically defined by department designations
c. includes values shared only within the organization
d. usually defined by geographical separation
e. includes values unique to members of a department or group
(c; Moderate; Subcultures; pp. 553-554) {AACSB: Analytic Skills}

14. The primary or dominant values that are accepted throughout the organization are known as
_____.
a. foundational values
b. core values
c. shared values
d. institutional traits
e. manifestos
(b; Easy; Core Values; p. 554)

15. Which of the following terms is part of the definition of a strong culture?
a. little influence over members’ behavior
b. low behavioral controls
c. narrowly shared values
d. intensely held values
e. weakly held values
(d; Easy; Strong Cultures; p. 554)

16. _____ are indicators of a strong organizational culture.

a. High levels of dissention
b. Weak managers
c. Completely horizontal organizational charts
d. Narrowly defined roles
e. Widely shared values
(e; Easy; Strong Cultures; p. 554)

17. Which of the following is most likely to result from a strong organizational culture?
a. low employee turnover
b. low employee satisfaction
c. high employee turnover
d. high absenteeism
e. none of the above
(a; Moderate; Strong Cultures; p. 554)

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18. The unanimity of a strong culture contributes to all of the following except _____.
a. cohesiveness
b. loyalty
c. higher product quality
d. organizational commitment
e. close ties between workers within the organization
(c; Moderate; Strong Cultures; p. 554) {AACSB: Analytic Skills}

19. A strong culture can act as a substitute for which of the following?
a. institutionalization
b. formalization
c. socialization
d. organizational rules
e. social support
(b; Moderate; Strong Culture versus Formalization; p. 554)

20. High formalization in an organization creates all of the following except _____.
a. predictability
b. cohesiveness
c. orderliness
d. consistency
e. none of the above
(b; Moderate; Formalization; p. 554) {AACSB: Analytic Skills}

What Do Cultures Do?

21. Culture performs all the following functions except _____.

a. displaying the dominance of particular organizations
b. enhancing social system stability
c. conveying a sense of identity for organization members
d. facilitating commitment to something larger than individual self-interest
e. defining boundaries
(a; Easy; Culture’s Functions; p. 555) {AACSB: Analytic Skills}

22. As organizations have widened spans of control, flattened structures, introduced teams, reduced
formalization, and empowered employees, the _____ provided by a strong culture ensures that
everyone is pointed in the same direction.
a. rules and regulations
b. shared meaning
c. rituals
d. socialization
e. rigid hierarchy
(b; Challenging; Culture’s Functions; p. 556)

23. Culture may be a liability because it is a barrier to _____.

a. change
b. diversity
c. mergers and acquisitions
d. all of the above
e. none of the above
(d; Moderate; Culture as a Liability; p. 557)

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24. Culture is most likely to be a liability when _____.
a. it increases the consistency of behavior
b. the organization’s environment is dynamic
c. the organization’s management is ineffectual
d. it reduces ambiguity
e. countercultures are integrated into the dominant cultures
(b; Moderate; Barriers to Change; p. 557)

25. Consistency of behavior is an asset to an organization when it faces _____.

a. a dynamic environment
b. an unknown environment
c. social upheaval
d. massive changes
e. a stable environment
(e; Moderate; Barriers to Change; p. 557)

26. In recent years, _____ has become the primary concern in acquisitions and mergers.
a. cultural compatibility
b. cultural synergy
c. financial advantages
d. product synergy
e. value dominance
(a; Moderate; Barriers to Acquisitions and Mergers; p. 557)

Creating and Sustaining Culture

27. The ultimate source of an organization’s culture is _____.

a. top management
b. the environment
c. the country in which the organization operates
d. the organization’s founders
e. the belief systems of it employees
(d; Moderate; Culture Creation; p. 558)

28. Culture creation occurs in all of the following ways except when _____.
a. founders hire and keep employees who think and feel the way they do
b. founders indoctrinate and socialize employees to their way of thinking and feeling
c. founders develop their vision covertly
d. founders’ behavior acts as a role model
e. founders refuse to be constrained by previous ideologies
(c; Moderate; Culture Creation; p. 558) {AACSB: Analytic Skills}

29. All of the following are factors that serve to sustain organizational cultures except _____.
a. selection
b. orientation
c. socialization
d. top management
e. frugality
(e; Moderate; Sustaining a Culture; p. 559) {AACSB: Analytic Skills}

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30. The selection process helps sustain the organization’s culture by _____.
a. establishing and enforcing norms
b. ensuring that candidates fit well within the organization
c. socializing the applicant
d. identifying individuals who have the skills to perform certain jobs
e. rewarding conformity
(b; Moderate; Selection; p. 559)

31. The selection process helps candidates learn about an organization. If employees perceive a
conflict between their values and those of the organization, this gives them a chance to _____.
a. work to change the organization
b. express their concerns
c. inform the organization of appropriate changes
d. self-select out of the applicant pool
e. rectify their cognitive dissonance
(d; Moderate; Selection; p. 560)

32. Top management has a major impact on the organization’s culture through _____.
a. establishing norms that filter down through the organization
b. ensuring a proper match of personal and organizational values
c. socializing new applicants in the pre-hiring phase
d. providing a framework for metamorphosis of new hires
e. properly rewarding management’s initiatives
(a; Moderate; Top Management; p. 560)

33. The process through which employees are adapted to an organization’s culture is called _____.
a. personalization
b. mentoring
c. socialization
d. institutionalization
e. intimidation
(c; Moderate; Socialization; p. 561)

34. Which of the following is not a stage of the socialization process?

a. prearrival
b. encounter
c. metamorphosis
d. ritual
e. none of the above
(d; Moderate; Stages of Socialization; p. 561) {AACSB: Analytic Skills}

35. The correct order for the stages of the socialization process is _____.
a. prearrival, metamorphosis, encounter
b. prearrival, encounter, ritual
c. prearrival, ritual, encounter
d. prearrival, encounter, metamorphosis
e. prearrival, ritual, arrival
(d; Moderate; Stages of Socialization; p. 561) {AACSB: Analytic Skills}

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36. The socialization stage that encompasses the learning that occurs before a new member joins an
organization is known as_____ socialization.
a. prearrival
b. encounter
c. metamorphosis
d. ritual
e. systemic
(a; Easy; Prearrival Stage; p. 561)

37. The employee compares her expectations to organizational reality in which stage of
socialization?
a. prearrival
b. encounter
c. metamorphosis
d. ritual
e. analysis
(b; Moderate; Encounter Stage; p. 561)

38. If there is a basic conflict between the individual’s expectations and the reality of working in an
organization, the employee is most likely to be disillusioned and quit during which stage of
socialization?
a. prearrival
b. ritual
c. encounter
d. metamorphosis
e. reflection
(c; Easy; Encounter Stage; p. 562)

39. The time when a new employee sees what the organization is really like and realizes that
expectations and reality may diverge is called the _____ stage.
a. encounter
b. exploration
c. establishment
d. metamorphosis
e. mirroring
(a; Moderate; Metamorphosis Stage; p. 562)

40. Employee attitudes and behavior change during the _____ stage of socialization.
a. establishment
b. transformation
c. encounter
d. metamorphosis
e. cocoon
(d; Easy; Metamorphosis Stage; p. 562)

41. New employees are usually comfortable with their organizations by the end of the _____ stage of
socialization.
a. encounter
b. exploration
c. establishment
d. metamorphosis
e. adaptation
(d; Moderate; Metamorphosis Stage; p. 562)

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How Employees Learn Culture

42. Which of the following is not a means of transmitting culture within an organization?
a. stories
b. aversion therapy
c. rituals
d. language
e. material symbols
(b; Easy; Transmitting Culture; p. 564)

43. _____ typically contain(s) a narrative of events about the organization’s founders, rule breaking,
or
reactions to past mistakes.
a. Stories
b. Material symbols
c. Rituals
d. Language
e. Reflections
(a; Easy; Stories; p. 564)

44. Which one of the following terms is not a component of rituals?

a. material symbols
b. sequenced activities
c. repetition
d. key values
e. reinforcement
(a; Moderate; Rituals; p. 564) {AACSB: Analytic Skills}

45. Rituals perform all of the following functions except that of _____.
a. reinforcing the key values of the organization
b. emphasizing the organization’s goals
c. revealing the company’s bottom line in terms of net profit
d. reinforcing the company’s perspective on which people are important
e. revealing the company’s view of which people are expendable
(b; Easy; Rituals; p. 564) {AACSB: Analytic Skills}

46. All of the following are examples of rituals except _____.

a. anniversary parties honoring long-time employees
b. annual award meetings
c. fraternity initiations
d. the placement of offices within corporate headquarters
e. singing company songs
(d; Moderate; Rituals; p. 564) {AACSB: Analytic Skills}

47. All of the following are examples of material symbols except _____.
a. top executives’ use of the company jet
b. a swimming pool for the employees to use
c. new employee orientations
d. luxury cars for executives
e. private parking spots
(c; Moderate; Material Symbols; pp. 564-565) {AACSB: Analytic Skills}

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Creating an Ethical Organizational Culture

48. An organizational culture most likely to shape high ethical standards is one that _____.
a. is high in risk tolerance
b. is low-to-moderate in aggressiveness
c. focuses on means as well as outcomes
d. all of the above
e. none of the above
(d; Moderate; Ethical Organizational Culture; p. 566) {AACSB: Ethical Reasoning}

49. To create a more ethical culture, management should do all of the following except _____.
a. serve as a visible role model
b. cover up unethical acts
c. provide ethical training
d. communicate ethical expectations
e. provide protective mechanisms
(b; Easy; Creating an Ethical Organizational Culture; p. 567) {AACSB: Ethical Reasoning}
{AACSB: Analytic Skills}

Creating a Positive Organizational Culture

50. What does a positive organizational culture do?

a. uses positive reinforcement instead of punishment
b. rarely uses rewards
c. emphasizes individual growth
d. emphasizes building on the organization’s strengths
e. emphasizes organizational vitality
(c; Moderate; Creating a Positive Organizational Culture; p. 567)

Spirituality and Organizational Culture

51. Organizations that promote a spiritual culture _____.

a. have organized religious practices
b. adopt a corporate religion
c. recognize that people have both a mind and a spirit
d. de-emphasize community in the work place
e. tend to downplay the importance of employee satisfaction
(c; Moderate; Workplace Spirituality and Organizational Culture; p. 570)

Global Implications

52. How might U.S, managers be culturally sensitive?

a. discuss religion more
b. discuss politics frequently
c. listen more
d. speak quickly
e. talk in a high tone of voice
(c; Moderate; Workplace Spirituality and Organizational Culture; p. 573) {AACSB: Analytic Skills}
{AACSB: Multicultural and Diversity}

TRUE/FALSE

53. A strong organizational culture creates volatility within an organization.

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(False; Moderate; Organizational Culture; p. 550)
Institutionalization: A Forerunner of Culture

54. The idea of viewing organizations as cultures is a relatively recent phenomenon.

(True; Easy; Organizational Culture; p. 550)

55. Culture as an independent variable affecting employee’s attitudes and behavior can be traced
back more than 50 years to the notion of institutionalization.
(True; Moderate; Institutionalization; p. 551)

56. When an organization has become institutionalized, its original goals become ingrained
throughout the organization.
(False; Easy; Institutionalization; p. 551)

What Is Organizational Culture?

57. Organizational culture is a set of key characteristics that an organization values.

(True; Easy; Organizational Culture; p. 551)

58. The degree to which employees are encouraged to be innovative and take risks is termed
aggressiveness.
(False; Moderate; Innovation and Risk-Taking; p. 551)

59. The degree to which management focuses on results rather than on techniques and processes is
termed results orientation.
(False; Moderate; Outcome Orientation; p. 552)

60. Individuals with different backgrounds in an organization will tend to describe the organization’s
culture in similar terms.
(True; Moderate; Organizational Culture; p. 553)

61. “Dominant culture” refers to cultures that value aggressive personalities.

(False; Moderate; Dominant Culture; p. 553)

62. Research demonstrates that subcultures act to undermine the dominant culture.
(False; Moderate; Subcultures; p. 554)

63. Subcultures rarely influence the behavior of an organization’s members.

(False; Easy; Subcultures; p. 554)

64. Strong cultures have a greater impact on employees’ behavior than do weak cultures.
(True; Easy; Strong versus Weak Cultures; p. 554)

65. One specific result of a weak culture should be lower employee turnover.
(False; Moderate; Weak Cultures; p. 554)

66. A strong culture can act as a substitute for rules and regulations.
(True; Challenging; Strong Culture versus Formalization; p. 554)

What Do Cultures Do?

67. Culture has a boundary-defining role; it creates distinctions between one organization and others.
(True; Moderate; Culture’s Functions; p. 555)

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68. Organizational culture serves to reinforce the self-interest of individual employees.
(False; Moderate; Culture’s Functions; p. 555)

69. Culture is the social glue that holds an organization together by providing appropriate standards
for what employees should say and do.
(True; Easy; Culture’s Functions; p. 555)

70. Culture by definition is tangible and explicit.

(False; Easy; Culture’s Functions; p. 556)

71. Culture increases ambiguity for employees.

(False; Easy; Culture as a Liability; p. 557)

72. A strong culture can be a liability for an organization.

(True; Moderate; Culture as a Liability; p. 557)

73. An entrenched culture can be a burden to an organization when it faces a dynamic environment.
(True; Moderate; Barriers to Change; p. 557)

74. A strong culture provides a supportive atmosphere for diversity.

(False; Moderate; Barriers to Diversity; p. 557) {AACSB: Multicultural and Diversity}

75. Strong cultures encourage individuality.

(False; Moderate; Barriers to Diversity; p. 557) {AACSB: Multicultural and Diversity}

76. The success of a merger depends most strongly upon the example set by the top management
of the merged organizations.
(False; Challenging; Barriers to Acquisitions and Mergers; p. 557)

Creating and Sustaining Culture

77. The selection process involved with hiring an employee is a two-way process.
(True; Easy; Selection; p. 560)

78. The values within an organization’s culture tend to flow down from top management.
(True; Easy; Top Management; p. 560)

79. Senior executives establish norms that filter down through the organization as to whether risk
taking is desirable.
(True; Moderate; Top Management; p. 560)

80. Socialization is the process that defines group interaction patterns.

(False; Moderate; Socialization; p. 561)

81. In the socialization process, the period of learning that occurs before a new employee joins an
organization is termed the encounter stage.
(False; Moderate; Prearrival Stage; p. 561)

82. The most critical socialization stage is the metamorphosis stage.

(False; Challenging; Stages of Socialization; p. 561)

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83. One major purpose of a business school is to socialize business students to the attitudes and
behaviors that business firms want.
(True; Moderate; Prearrival Stage; p. 561)

84. The stage of socialization where an individual confronts the possible dichotomy between her
expectations and reality is the encounter stage.
(True; Moderate; Encounter Stage; p. 562)

85. Socialization is complete when an employee completes his probationary period with a new
company.
(False; Easy; Socialization; p. 562)

How Employees Learn Culture

86. The most potent means of transmitting culture to employees are stories, rituals, related symbols,
and language.
(False; Moderate; Transmitting Culture; p. 564)

87. Stories are a form of socialization ritual.

(False; Moderate; Stories; p. 564)

88. A ritual is a sequence of activities that continually expresses the key values of the organization.
(True; Easy; Rituals; p. 564)

89. Rituals serve to reinforce the hierarchical structure of an organization.

(False; Moderate; Rituals; p. 564)

90. Providing an executive with a chauffer-driven limousine is an example of a ritual.

(False; Easy; Material Symbols; p. 565)

91. Material symbols convey to employees the degree of egalitarianism that is desired by top
management.
(True; Moderate; Material Symbols; p. 565)

92. All organizations within an industry use the terminology designated by the industry so that their
employees can move freely from organization to organization.
(False; Moderate; Language; p. 566)

93. Language can serve to unite members of a given culture as new employees learn the acronyms
and jargon specific to the organization.
(True; Easy; Language; p. 566)

Creating an Ethical Organizational Culture

94. The content and strength of an organizational culture influences the organization’s ethical
climate.
(True; Easy; Ethical Organizational Culture; p. 566) {AACSB: Ethical Reasoning}

95. A strong organizational culture exerts more influence on employees than does a weak culture.
(True; Easy; Strong versus Weak Culture; p. 566) {AACSB: Ethical Reasoning}

96. A strong company that encourages pushing the limits can be a powerful force in shaping
unethical behavior.

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(True; Moderate; Unethical Behavior; p. 566) {AACSB: Ethical Reasoning}

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97. Management can create more ethical cultures through the following means: acting as visible role
models, communicating ethical expectations, providing ethical training, visibly rewarding ethical
acts and punishing unethical ones, and providing protective mechanisms.
(True; Moderate; Creating an Ethical Organizational Culture; p. 567) {AACSB: Ethical Reasoning}

98. Performance appraisals of managers should include a point-by-point evaluation of how the
manager’s decisions measure up against the organization’s code of ethics.
(True; Moderate; Creating an Ethical Organizational Culture; p. 567) {AACSB: Ethical Reasoning}

Creating a Positive Organizational Culture

99. Cultures value being positive.

(True; Easy; Culture and Positive Organizational Culture; p. 569)

Spirituality and Organizational Culture

100. Workplace spirituality encourages regular religious practices within work environments.
(False; Easy; Workplace Spirituality and Organizational Culture; p. 570)

101. Spiritually-based organizations encourage employees to express their moods and feelings.
(True; Moderate; Workplace Spirituality and Organizational Culture; p. 571)

102. Evidence shows that spirituality and profits may be compatible objectives.
(True; Challenging; Workplace Spirituality and Organizational Culture; p. 572)

Global Implications

103. Organizational cultures often reflect national cultures.

(True; Moderate; National Culture and Organizational Culture; p. 573) {AACSB: Multicultural and
Diversity}

SCENARIO-BASED QUESTIONS

Application of What Is Organizational Culture

Masterson College is a small liberal arts women’s college in North Carolina. The founders of the college
were Baptist and were committed to the idea that a liberal arts education was the best preparation for life-
long learning. The college has continued to support this orientation towards liberal arts education and has
actually moved to strengthen that commitment recently. Within the last two decades, the business
department has become one of the larger departments on campus. The faculty of the business
department are also committed to finding employment for their graduates and believe that two things are
critical for this to happen: 1) their students must have a solid understanding of the fundamental of their
discipline; and 2) internships are an important method of establishing the connections and opportunities
for employment.

104. The belief in a liberal arts education is part of the _____ of the college.
a. subculture of the business department
b. management culture
c. dominant culture
d. mission statement
e. none of the above
(c; Easy; Dominant Culture; p. 553) {AACSB: Analytic Skills}

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105. The commitment to finding employment for graduates is part of the _____.
a. subculture of the business department
b. management culture
c. dominant culture
d. mission statement
e. none of the above
(a; Easy; Subcultures; p. 554) {AACSB: Analytic Skills}

106. The business department holds some unique values in addition to the _____ of the dominant
culture.
a. core values
b. sub-values
c. formal values
d. holistic values
e. spiritual orientation
(a; Easy; Core Values; p. 554) {AACSB: Analytic Skills}

107. Which of the following represents a core value of the college?

a. affordable education
b. scientific knowledge
c. technological innovation
d. remedial reinforcement
e. life-long learning
(e; Easy; Core Values; p. 554) {AACSB: Analytic Skills}

Application of Strong Cultures

The Young Woman’s Club of Williams has been operating for seventy-five years as an organization that
supports women who stay at home. For years it has been one of the most prestigious organizations in
town with a strong membership. This group has always held classes in cooking, sewing, and child
rearing. It has always been made up of upper middle class women from the small town of Williams. As
the area has grown, many people have moved into Williams and now commute to Capital City, just 15
miles away. Most of the newcomers are dual-income couples, with both spouses holding full-time jobs.

108. The culture of the Young Woman’s Club can be defined as _____.
a. a strong culture
b. a weak culture
c. an ambiguous culture
d. a diverse culture
e. a tolerant culture
(a; Moderate; Strong Cultures; p. 554) {AACSB: Analytic Skills}

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Application of Culture as a Liability

The Young Woman’s Club of Williams has been operating for seventy-five years as an organization that
supports women who stay at home. For years it has been one of the most prestigious organizations in
town with a strong membership. This group has always held classes in cooking, sewing, and child
rearing. It has always been made up of upper middle class women from the small town of Williams. As
the area has grown, many people have moved into Williams and now commute to Capital City, just 15
miles away. Most of the newcomers are dual-income couples, with both spouses holding full-time jobs.

109. The culture of the Young Woman’s Club will be a liability if _____.
a. newcomers embrace it
b. it does not further the organization’s effectiveness
c. it reduces ambiguity
d. it enhances social system stability
e. none of the above
(b; Easy; Barriers to Change; p. 557) {AACSB: Analytic Skills}

110. It is probable that the culture of the Young Woman’s Club of Williams will _____.
a. prevent the organization from changing as the population of the community changes
b. enable the organization to meet the needs of diverse women in the community
c. be embraced by all of the newcomers to the community
d. be strengthened by the presence of the newcomers in the community
e. none of the above
(a; Moderate; Barriers to Change; p. 557) {AACSB: Analytic Skills}

111. The Young Woman’s Club is most likely to _____.

a. experience internal division regarding the future of the organization
b. broaden its membership to include women of different classes
c. shift its core values in response to the perceived needs of newcomers
d. expand its membership significantly, given the town’s population increase
e. remain similar in size, despite the town’s population increase
(e; Challenging; Barriers to Change; p. 557) {AACSB: Analytic Skills}

112. Women who are newcomers to the town of Williams are most likely to _____.
a. find membership in the Young Women’s Club helpful for increasing their social support
b. help to enhance the prestige of the Young Women’s Club by increasing the average income
of the group’s members
c. find that the Young Woman’s Club values the unique strengths of those from different
backgrounds
d. help improve the profitability of the Young Woman’s Club by recommending increases in its
membership dues
e. find that the Young Woman’s Club has a low tolerance for diversity
(e; Challenging; Barriers to Diversity; p. 557) {AACSB: Analytic Skills} {AACSB: Multicultural and
Diversity}

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Application of Socialization

You are new to an organization and do not really know what to expect about the socialization process.
You are a recent M.B.A. and have an undergraduate degree in computer science. Your new firm is a
software development company with an emphasis in the health care industry. Your hiring process
includes campus interviews, a day-long trip to interview at the company, an offer phone call and letter,
and some promotional material sent via the mail. When you arrive for your first day of work, you spend
half a day in an orientation session with Human Resources, where you complete paperwork and receive a
company handbook. Then you spend the rest of the day with your supervisor, who gives you a tour,
introduces you to your co-workers, and explains your first project. After that, you begin working and
getting to know the others in the company. You find that in most respects, your experience fits your
expectations, but in some ways you are surprised by realities that you hadn’t expected. None of these
surprises is too difficult to accept, so you eventually begin to feel at home and happy with your new job.

113. The learning that you experience during the interviewing and hiring process occurs as part of the
_____ stage of employee socialization.
a. selection
b. prearrival
c. encounter
d. metamorphosis
e. none of the above
(b; Easy; Prearrival Stage; p. 561) {AACSB: Analytic Skills}

114. Your first day at work is part of the _____ stage of socialization.
a. orientation
b. prearrival
c. encounter
d. metamorphosis
e. none of the above
(c; Moderate; Encounter Stage; p. 562) {AACSB: Analytic Skills}

115. When you begin to notice things that are not as you expected, you are in the _____ stage of
socialization.
a. orientation
b. prearrival
c. encounter
d. metamorphosis
e. none of the above
(c; Moderate; Encounter Stage; p. 562) {AACSB: Analytic Skills}

116. Which of the following steps could your supervisor take to best help you develop a commitment
to your new company?
a. encourage you to work independently at first to learn the ropes
b. discourage you from putting too much weight on your initial expectations
c. discourage you from putting too much emphasis on your perception of the organization
d. encourage you to look carefully at your own assumptions, which may be biased
e. encourage you to develop friendship ties within the organization
(e; Challenging; Encounter Stage; p. 562) {AACSB: Analytic Skills}

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117. When you start to work through the problems that you discover about the organization, you move
into the _____ stage of socialization.
a. prearrival
b. encounter
c. acceptance
d. metamorphosis
e. none of the above
(d; Moderate; Metamorphosis Stage; p. 562) {AACSB: Analytic Skills}

118. Your supervisor arranges for you to become involved in an apprenticeship program to learn the
ins and outs of your job from an experienced employee. What effect is this apprenticeship
program likely to have on your assimilation into the company?
a. It is likely to have a negative effect, because random socialization works more effectively
than serial socialization in helping new employees to adjust to a company’s culture.
b. It is likely to have an insignificant effect, because serial socialization is not correlated with
helping employees to adjust to a company’s values and norms.
c. It is likely to have a positive effect, because random socialization is most critical at the time of
an employee’s entry into an organization.
d. It is likely to have a positive effect, because serial socialization works more effectively than
random socialization in helping new employees to accept a company’s culture.
e. It is likely to have a negative effect, because serial and random socialization processes only
benefit employees at later stages in their tenure with an organization.
(d; Moderate; Entry Socialization Options; p. 563) {AACSB: Analytic Skills}

Application of How Employees Learn Culture

Nunya is a computer software company that employs highly intelligent, but somewhat unusual people.
Every Friday, free lollipops, toys, or other treats are given out to encourage employees to remember how
creative they were when they were children. At the beginning of each quarterly executive meeting,
employees are reminded that the founders were three young people who “got lucky” and sold a video
game that they invented. Employees are allowed to dress in blue jeans and can set their own working
hours.

119. Reminding employees about the founders at each quarterly meeting is an example of which
technique for transmitting culture?
a. stories
b. material symbols
c. language
d. rituals
e. tools
(a; Challenging; Stories; p. 564) {AACSB: Analytic Skills}

120. The regular distribution of lollipops, toys, or treats every Friday is an example of a _____ that
helps reinforce Nunya’s culture.
a. story
b. ritual
c. material symbol
d. symbolism
e. tool
(b; Challenging; Rituals; p. 564) {AACSB: Analytic Skills}

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121. The dress code worn by Nunya employees is an example of a _____ through which organization
culture is transmitted.
a. story
b. ritual
c. material symbol
d. symbolic act
e. tool
(c; Challenging; Material Symbols; p. 565) {AACSB: Analytic Skills}

SHORT DISCUSSION QUESTIONS

122. What is organizational culture?

Organizational culture refers to a system of shared meaning held by members that

distinguishes the organization from other organizations. This system of shared meaning
is, on closer examination, a set of key characteristics that the organization values. (Easy;
Organizational Culture; p. 551) {AACSB: Analytic Skills}

123. Distinguish dominant culture from a subculture within organizations.

A dominant culture expresses the core values that are shared by a majority of the
organization’s members. When we talk about an organization’s culture, we are referring
to its dominant culture. It is this macro view of culture that gives an organization its
distinct personality. Subcultures tend to develop in large organizations to reflect
common problems, situations, or experiences that members face. These subcultures are
likely to be defined by department designations and geographical separation. (Easy;
Dominant Culture and Subculture; pp. 553-554) {AACSB: Analytic Skills}

124. What are the functions of organizational culture?

Culture performs a number of functions within an organization. First, it has a boundary-

defining role. That is, it creates distinctions between one organization and others.
Second, it conveys a sense of identity for organization members. Third, culture facilitates
the generation of commitment to something larger than one’s individual self-interest.
Fourth, it enhances social system stability. Culture is the social glue that helps hold the
organization together by providing appropriate standards for what employees should say
and do. Finally, culture serves as a sense-making and control mechanism that guides and
shapes the attitudes and behavior of employees. (Easy; Culture’s Functions; p. 555)
{AACSB: Analytic Skills}

125. What are the three stages of socialization through which employees become indoctrinated into an
organization’s culture?

The three stages of socialization are prearrival, encounter, and metamorphosis.

a) The prearrival stage recognizes that each individual arrives with a set of values,
attitudes, and expectations. These cover both the work to be done and the
organization.
b) Upon entry into the organization, the new member enters the encounter stage. Here
the individual confronts the possible dichotomy between her expectations and reality.
c) Finally, the new member must work out any problems discovered during the
encounter stage. This may mean going through changes – hence, this is called the
metamorphosis stage.
(Moderate; Stages of Socialization; pp. 561-562) {AACSB: Analytic Skills}

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126 Explain the definition of rituals as they are used for helping employees to learn organizational
culture.

Rituals are repetitive sequences of activities that express and reinforce the key values of
the organization, what goals are most important, which people are important and which
are expendable. (Easy; Rituals; p. 564) {AACSB: Analytic Skills}

127. What is workforce spirituality?

Workplace spirituality is not about organized religious practices. It’s not about God or
theology. Workplace spirituality recognizes that people have an inner life that nourishes
and is nourished by meaningful work that takes place in the context of community.
Organizations that promote a spiritual culture recognize that people have both a mind
and a spirit, seek to find meaning and purpose in their work, and desire to connect with
other human beings and be part of a community. (Easy; Workplace Spirituality; p. 570)
{AACSB: Analytic Skills}

MEDIUM LENGTH DISCUSSION QUESTIONS

128. Discuss the difference between strong and weak organizational cultures.

Strong cultures have a greater impact on employee behavior and are more directly related
to reduced turnover. In a strong culture, the organization’s core values are both intensely
held and widely shared. The more members who accept the core values and the greater
their commitment to those values is, the stronger the culture is. A strong culture will have
a great influence on the behavior of its members because the high degree of sharedness
and intensity creates an internal climate of high behavioral control. One specific result of
a strong culture should be lower employee turnover. A strong culture demonstrates high
agreement among members about what the organization stands for. Such unanimity of
purpose builds cohesiveness, loyalty, and organizational commitment. These qualities, in
turn, lessen employees’ propensity to leave the organization. (Easy; Strong versus Weak
Cultures; p. 554) {AACSB: Analytic Skills}

129. How does organizational culture develop?

An organization’s current customs, traditions, and general way of doing things are
largely due to what it has done before and the degree of success it has had with those
endeavors. The founders of an organization traditionally have a major impact on that
organization’s early culture. They have a vision of what the organization should be. They
are constrained by previous customs or ideologies. The small size that typically
characterizes new organizations further facilitates the founders’ imposition of their vision
on all organizational members.

The process of culture-creation occurs in three ways.

a) First, founders only hire and keep employees who think and feel the way they do.
b) Second, they indoctrinate and socialize these employees to their way of thinking and
feeling.
c) And finally, the founders’ own behavior acts as a role model that encourages
employees to identify with them and thereby internalize their beliefs, values, and
assumptions.

When the organization succeeds, the founders’ vision becomes seen as a primary
determinant of that success. At this point, the founders’ entire personalities become

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embedded in the culture of the organization. (Moderate; Creating Culture; 558-559)
{AACSB: Analytic Skills}

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130. What can management do to create a more ethical culture within an organization?

To create a more ethical culture, management can take a number of steps.

a) Management can be a visible role model. Employees will look to top management
behavior as a benchmark for defining appropriate behavior.
b) Management can also communicate ethical expectations. Ethical ambiguities can be
minimized by creating and disseminating an organizational code of ethics. It should
state the organization’s primary values and the ethical rules that employees are
expected to follow.
c) Management can also provide ethical training. Training sessions can be used to
reinforce the organization’s standards of conduct, to clarify what practices are and
are not permissible, and to address possible ethical dilemmas.
d) Management can visibly reward ethical acts and punish unethical ones. Performance
appraisals of managers should include a point-by-point evaluation of how his or her
decisions measured against the organization’s code of ethics. Appraisals must
include the means taken to achieve goals as well as the ends themselves.
e) Finally, the organization needs to provide formal mechanisms so that employees can
discuss ethical dilemmas and report unethical behavior without fear of reprimand.
This might include creation of ethical counselors, ombudsmen, or ethical officers.
(Moderate; Ethical Organizational Culture; p. 566) {AACSB: Ethical Reasoning} {AACSB:
Analytic Skills}

131. What are the characteristics of a spiritual organization?

There are five cultural characteristics that tend to be evident in spiritual organizations.
Spiritual organizations build their cultures around a meaningful purpose. Spiritual
organizations recognize the worth and value of people. They seek to create cultures
where employees can continually learn and grow. Spiritual organizations are
characterized by mutual trust, honesty, and openness. Managers aren’t afraid to admit
mistakes. And they tend to be extremely upfront with their employees, customers, and
suppliers. The high-trust climate in spiritual organizations, when combined with the
desire to promote employee learning and growth, leads to management empowering
employees to make most work-related decisions. Managers in spiritually-based
organizations are comfortable delegating authority to individual employees and teams.
They trust their employees to make thoughtful and conscientious decisions. The final
characteristic that differentiates spiritually-based organizations is that they don’t stifle
employee emotions. They allow people to be themselves. (Moderate; Characteristics of a
Spiritual Organization; pp. 570-572) {AACSB: Analytic Skills}

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COMPREHENSIVE ESSAYS

132. Identify and describe the seven primary characteristics that capture the essence of an
organization’s culture.

Organizational culture refers to a system of shared meaning held by members that

distinguishes the organization from other organizations. This system of shared meaning
is, on closer examination, a set of key characteristics that the organization values. There
are seven primary characteristics that capture the essence of an organization’s culture.
a) Innovation and risk taking are the degree to which employees are encouraged to be
innovative and take risks.
b) Attention to detail is the degree to which employees are expected to exhibit precision,
analysis, and attention to detail.
c) Outcome orientation is the degree to which management focuses on results or
outcomes rather than on the techniques and processes used to achieve these
outcomes.
d) People orientation is the degree to which management decisions take into
consideration the effect of outcomes on people within the organization.
e) Team orientation is the degree to which work activities are organized around teams
rather than individuals.
f) Aggressiveness is the degree to which people are aggressive and competitive rather
than easygoing.
g) Stability is the degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.
(Moderate; Characteristics of an Organizational Culture; pp. 551-552) {AACSB: Analytic
Skills}

133. When can culture be a liability?

a) Barriers to Change. Culture is a liability when the shared values are not in agreement
with those that will further the organization’s effectiveness. This is most likely to
occur when an organization’s environment is dynamic. When an environment is
undergoing rapid change, an organization’s entrenched culture may no longer be
appropriate. So consistency of behavior is an asset to an organization when it faces a
stable environment. It may, however, burden the organization and make it difficult to
respond to changes in the environment. These strong cultures become barriers to
change when business as usual is no longer effective.
b) Barriers to Diversity. Strong cultures put considerable pressure on employees to
conform. They limit the range of values and styles that are acceptable. A strong
culture that condones prejudice can even undermine formal corporate diversity
policies. Organizations seek out and hire diverse individuals because of the
alternative strengths these people bring to the workplace. Yet these diverse behaviors
and strengths are likely to diminish in strong cultures as people attempt to fit in.
Strong cultures, therefore, can be liabilities when they effectively eliminate the unique
strengths that people of different backgrounds bring to the organization. Moreover,
strong cultures can also be liabilities when they support institutional bias or become
insensitive to people who are different.
c) Barriers to Acquisitions and Mergers. Many acquisitions fail shortly after their
consummation. The primary cause of failure is conflicting organizational cultures.
(Challenging; Culture as a Liability; pp. 557-558) {AACSB: Analytic Skills}

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134. Explain the primary methods of maintaining an organization’s culture.

Once a culture is in place, there are practices within the organization that act to maintain
it by giving employees a set of similar experiences. Three forces play a particularly
important part in sustaining a culture: selection practices, the actions of top
management, and socialization methods.
a) First, the explicit goal of the selection process is to identify and hire individuals who
have the knowledge, skills, and abilities to perform the jobs within the organization
successfully. It would be naive to ignore that the final decision as to who is hired will
be significantly influenced by the decision maker’s judgment of how well the
candidates will fit into the organization. This attempt to ensure a proper match,
whether purposely or inadvertently, results in the hiring of people who have values
essentially consistent with those of the organization, or at least a good portion of
those values. In addition, the selection process provides information to applicants
about the organization. Candidates learn about the organization and, if they perceive
a conflict between their values and those of the organization, they can self-select
themselves out of the applicant pool.
b) In addition to selection, the actions of top management also have a major impact on
the organization’s culture. Through what they say and how they behave, senior
executives establish norms that filter down through the organization as to whether
risk taking is desirable; how much freedom managers should give their employees;
what is appropriate dress; what actions will pay off in terms of pay raises,
promotions, and other rewards; and the like.
c) Finally, no matter how good a job the organization does in recruiting and selection,
new employees are not fully indoctrinated in the organization’s culture. Because they
are unfamiliar with the organization’s culture, new employees are potentially likely to
disturb the beliefs and customs that are in place. The organization will, therefore,
want to help new employees adapt to its culture. This adaptation process is called
socialization. This is when the organization seeks to mold the outsider into an
employee “in good standing.” Employees who fail to learn the essential or pivotal role
behaviors risk being labeled “nonconformists” or “rebels,” which often leads to
expulsion. But the organization will be socializing every employee, though maybe not
as explicitly, throughout his or her entire career in the organization. This further
contributes to sustaining the culture.
(Challenging; Sustaining Culture; pp. 559-561) {AACSB: Analytic Skills}

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135. Discuss four ways that employees learn culture.

Culture is transmitted to employees in a number of forms, the most potent being stories,
rituals, material symbols, and language.
a) Stories contain a narrative of events about the organization’s founders, rule breaking,
rags-to-riches successes, reductions in the workforce, relocation of employees,
reactions to past mistakes, and organizational coping. These stories anchor the
present in the past and provide explanations and legitimacy for current practices.
b) Rituals are repetitive sequences of activities that express and reinforce the key values
of the organization, what goals are most important, which people are important and
which are expendable.
c) The layout of corporate headquarters, the types of automobiles top executives are
given, and the presence or absence of corporate aircraft are a few examples of
material symbols. These material symbols convey to employees who is important, the
degree of egalitarianism desired by top management, and the kinds of behavior that
are appropriate.
d) Many organizations and units within organizations use language as a way to identify
members of a culture or subculture. By learning this language, members attest to
their acceptance of the culture and, in doing so, help to preserve it. Organizations,
over time, often develop unique terms to describe equipment, offices, key personnel,
suppliers, customers, or products that relate to its business. New employees are
frequently overwhelmed with acronyms and jargon that, after 6 months on the job,
have become fully part of their language. Once assimilated, this terminology acts as a
common denominator that unites members of a given culture or subculture.
(Challenging; Transmitting Culture; p. 564-566) {AACSB: Analytic Skills}

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