International Management Culture Strategy and Behavior Luthans 9th Edition Test Bank

International Management Culture, Strategy, and Behavior Luthans 9th Edition Test Bank
International Management Culture, Strategy, and

Behavior Luthans 9th Edition Test Bank
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Chapter 06
Organizational Cultures and Diversity
True / False Questions
1. Regardless of the external environment or their national culture, managers and employees must
understand and follow their organization's culture to be successful.
True False
2. Organizational culture is complex and cannot be defined as a set of norms regulating the
behavior of the employees of a firm.
True False
3. Diverse and global teams are one of the most consistent sources of competitive advantage for
any organization.
True False
4. Hofstede's research found that the national cultural values of employees have an insignificant
impact on their organizational performance, and these values are easily changed by the
organization.
True False
5. Andre Laurent's research found that cultural differences actually are more pronounced among
foreign employees working within the same multinational organization than among personnel
working for firms in their native lands.
True False
6. For a global retail company, a focused sale campaign on Christmas gift items would be effective
in all of the company's markets.
True False
7. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.
True False
8. To manage a global team, international managers must take into consideration three factors:
culture, communication, and trust.
True False
6-1
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McGraw-Hill Education.
9. Guided missile organizational cultures generally are made up of cooperative project teams.
True False
10. A high collectivistic culture in found in the U.S., the U.K., and Australia.
True False
11. As firms began exporting to foreign clients, they became what Adler called "international
corporations."
True False
12. Among international firms, which focus on exporting and producing abroad, cultural diversity has
a relatively weak impact on their external relationships with potential buyers and foreign
employees.
True False
13. An example of a token group would be a group of male German bankers who are forecasting the
economic outlook for a foreign investment.
True False
14. Individuals in a high collectivistic culture perform better when their values are in harmony with
their managers.
True False
15. As the diversity of a group increases, the likelihood of all members perceiving things in the same
way increases sharply.
True False
16. An example of a token group is a group of three American, three German, three British and three
Japanese managers who are looking into oil exploration opportunities in Russia.
True False
17. One main benefit of diversity is the generation of more and better ideas.
True False
18. A disadvantage of diversity is that it often leads to groupthink, which is social conformity and
pressures on individual members of a group to conform and reach consensus.
True False
19. Having people with the right skills is essential to bring together a successful virtual team.
True False
20. In the entry stage of group development, the focus is typically on decision making and
implementation.
True False
6-2
Multiple Choice Questions
21. To ensure good communication in global teams, managers should do all of the following except:
A. Hold an initial meeting in which all members introduce themselves and describe their jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to avoid
misunderstandings
D. Put the details of the project in writing
22. To build trust among virtual team members, managers should:
A. Deep-six the egos and be friendly

B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on commitments
D. Keep the door open except when on private calls
23. Implementing a set of values where employees are rewarded or punished according to their
conformity with these values is found in the ______ management approach.
A. Clan control
B. Outcome control
C. Self-control
D. Behavior control
24. Which of the following is not an advantage of virtual teams?
A. They can reduce problems associated with personality conflicts

B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work
25. When individuals join a multinational corporation they bring their national culture, which greatly
affects all of the following except:
A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors
6-3
26. PepsiCo, personnel are expected to be cheerful, positive, enthusiastic, and have committed
optimism. This is an example of:
A. Being influenced by the external environment

B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values
27. Which of the following is not a possible management approach, according to Surinder Kahai?
A. Outcome control
B. Behavior control
C. Mind control
D. Clan control
28. _____ is a pattern of basic assumptions that are developed by a group as it learns to cope with
problems of external adaptation and internal integration and that are taught to new members as
the correct way to perceive, think, and feel in relation to these problems.
A. Organizational culture
B. Organizational learning
C. Organizational change
D. Organizational structure
29. Rules that dictate the dos and don'ts of employee behavior relating to areas such as productivity,
customer relations, and intergroup cooperation, are characteristics associated with an
organization's:
A. Ethics
B. Ambience
C. Culture
D. Structure
30. Observed behavioral regularities are typified by the following except:
A. Common language
B. Terminology
C. Customer relations
D. Rituals
31. Organizational climate is reflected by:
A. The degree of cooperation between management and employees

B. Common language, terminology, and rituals
C. High product and service quality
D. The way participants interact with each other
6-4
32. Norms are reflected by things such as:
A. Common language, terminology, and rituals

B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level management
33. A widely held belief that has not been found to be accurate is that organizational culture:
A. Tends to erase the impact of national culture

B. Tends to be affected by national culture
C. Cannot easily change the cultural values employees bring to the workplace
D. Is different in different subsidiaries
34. When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners to
meet and talk about their cultural differences. This is an example which illustrates that:
A. Organizational culture clashes often occur when partners do not fully understand the culture of
the new partner
B. Cultural differences are less pronounced among foreign employees working for the same
multinational company
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want one
culture influencing the other
35. Which of the following shows the identity dimension of corporate culture?
A. To put the demands of the job before the needs of the individual
B. To put the needs of the individual before the needs of the job
C. To identify with and uphold the expectations of the employing organizations
D. To strive for accuracy and attention to detail
36. Which of the following would be associated with the dimension of pragmatic conduct?
A. To put the expertise and standards of the employing organization first

B. To put the demands and expectations of the customers first
C. To comply with clear and definite systems
D. To pursue clear aims and objectives
37. The United Kingdom shows the following characteristics regarding the corporate dimension:
A. Administrative
B. Industrial
C. Pragmatic
D. Commercial
6-5
38. 'Dirigiste' is used to describe the _____ dimension.
A. Economics
B. Philosophical
C. Cultural
D. Structural
39. Which of the following sets of characteristics is typical of French negotiators?
A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes negotiations,
which are characterized by an exchange of grand ideas and general principles, social
competence is very important
D. Look for a meeting of minds, intellectual competence is very important, and a contract is
viewed as a well-reasoned transaction
40. There are three aspects of organizational functions that seem to be especially important in
determining an MNC's organizational culture. These are:
A. The general views that employees hold about the MNC's purpose, destiny, goals, and their
places in them; the age of the organization; and the degree of cultural diversity among the
members of the organization
B. The general relationship between the managers and rank-and-file employees in the
organization; the degree of cultural diversity among the members of the organization; and the
hierarchical system of authority that defines the roles of managers and subordinates
C. The degree of cultural diversity among the members of the organization; the age of the
organization; and the strength of the organization's leadership
D. The general relationship between the employees and their organization; the hierarchical
system of authority that defines the roles of managers and subordinates; and the general
views that employees hold about the MNC's purpose, destiny, goals, and their places in them
41. The following are the steps outlined by Numeroff and Abrahams used during mergers and
acquisitions except:
A. Establishing the purpose, goal, and focus of the merger

B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication
6-6
42. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
person.
A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile
43. _____ culture is a project-oriented culture.
A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator
44. Trompenaars found that a(n) _____ organizational culture is common in countries such as
Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator
45. When it works well, the _____ culture can catalyze and multiply the energies of the personnel and
appeal to their deepest feelings and aspirations.
A. Incubator
B. Guided missile
C. Eiffel Tower
D. Family
46. The family culture is foreign to most in:
A. China
B. United States
C. Venezuela
D. Turkey
47. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the task.
A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower
6-7
48. Under a(n) _____ culture, jobs are well defined, employees know what they are supposed to do,
and everything is coordinated from the top.
A. Guided missile
B. Family
C. Eiffel Tower
D. Incubator
49. Eiffel Tower cultures are most commonly found in:
A. Northwestern European countries, such as Germany, Denmark, and France

B. Asian countries, such as Taiwan, South Korea, and Japan
C. South American countries, such as Brazil, Argentina, and Chile
D. North Atlantic countries, such as England, Ireland, and Canada
50. _____ culture is characterized by a strong emphasis on equality in the workplace and orientation
to the task.
A. Guided missile
B. Family
C. Incubator
D. Eiffel Tower
51. A(n) _____ organizational culture is characterized by a strong emphasis on equality and
orientation to the person.
A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile
52. _____ cultures often create environments where participants thrive in an intense, emotional
commitment to the nature of the work.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator
53. Change in the incubator culture is:
A. Slow and calculated

B. Almost nonexistent
C. Moderate and methodological
D. Fast and spontaneous
6-8
54. Which of the following describes the "relationships between employees" in a family corporate
culture?
A. Diffuse relationships to organic whole to which one is bonded

B. Specific role in mechanical system of required interaction
C. Specific tasks in cybernetic system targeted on shared objectives
D. Diffuse, spontaneous relationships growing out of shared creative process
55. Which of the following describes the "attitude toward authority" in an Eiffel Tower corporate
culture?
A. Status is achieved by individuals exemplifying creativity and growth

B. Status is achieved by project group members who contribute to a targeted goal
C. Status is ascribed to superior roles that are distant yet powerful
D. Status is ascribed to parent figures that are close and powerful
56. Which of the following describes the "ways of thinking and learning" in a guided missile culture?
A. Process oriented, creative, ad hoc, inspirational

B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical, and rationally efficient
D. Intuitive, holistic, lateral, and error-correcting
57. As firms begin exporting to foreign clients and become what Adler calls "international
corporations," they must:
A. Increase the standardization of products and services

B. Adapt their products but not their approach to those of the local market
C. Adapt their approach and products to those of the local market
D. Adapt their approach but not their products to those of the local market
58. The following deal with largest, worldwide markets:
A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations
59. As companies become what Alder calls "multinational firms," they often find that _____ tends to
dominate all other considerations and the direct impact of culture may lessen slightly.
A. Quality
B. Serviceability
C. Durability
D. Price
6-9
60. According to Adler, the primary orientation of a global firm is:
A. Strategy
B. Price
C. Market
D. Product or service
61. Global firms need:
A. Neither an internal nor an external diversity focus

B. Both an internal and an external diversity focus
C. An internal but not an external diversity focus
D. An external but not an internal diversity focus
62. A _____ group is a group that is characterized by members who share similar backgrounds and
generally perceive, interpret, and evaluate events in similar ways.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous
63. A _____ group is a group in which two or more members represent each of two distinct cultures,
such as four Mexicans and four Taiwanese who have formed a team to investigate the possibility
of investing in a venture.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous
64. A _____ group is a group in which there are individuals from three or more different ethnic
backgrounds, such as three U.S., three German, three Uruguayan and three Chinese managers
who are looking into mining operations in South America.
A. Homogeneous
B. Token
C. Multicultural
D. Bicultural
6-10
65. To unite a diverse set of employees in a pharmaceutical company under a common corporate
culture, AstraZeneca's Global Steering Group has focused on three universal cultural pillars.
Which of the following is not one of those pillars?
A. Leadership and Management Capability

B. Transparency in Talent Management and Career Progression
C. Work/Life Challenges
D. Insight Exchange
66. The benefits or advantages of culturally diverse groups include the following except:
A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection
67. When _____ occurs, group participants believe that their ideas and actions are correct and that
those who disagree with them are either uninformed or deliberately trying to sabotage their
efforts.
A. Group cognitive inertia

B. Group reverse vigilance
C. Groupthink
D. Static decision-making
68. Multicultural teams are most effective when they face tasks requiring:
A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness
69. In the _____ stage of group development, the focus should be on building trust and developing
team cohesion.
A. Entry
B. Work
C. Action
D. Reflection
70. In the _____ stage of group development, attention may be directed more toward describing and
analyzing the problem or task that has been assigned.
A. Entry
B. Work
C. Action
D. Reflection
6-11
Essay Questions
71. What is organizational culture and what are some of its major characteristics?
72. Discuss findings of Hofstede and Andre Laurent about the relationship between national and
organizational culture.
73. What are the four types of organizational culture identified by Fons Trompenaars? Provide a brief
description of each of these cultures.
6-12
74. Discuss some of the potential problems associated with diversity.
75. Create a virtual team with two people from each of four countries, which you name. Include both
individualistic and collectivistic cultures. List as many positives for your team as you can and
explore the effects of each on the work of the team.
6-13
Chapter 06 Organizational Cultures and Diversity Answer Key
True / False Questions
1. Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.
TRUE
Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-01 DEFINE exactly what is meant by organizational culture; and discuss the interaction of national and
MNC cultures.
Level of Difficulty: 1 Easy
Topic: The Nature of Organizational Culture
2. Organizational culture is complex and cannot be defined as a set of norms regulating the
behavior of the employees of a firm.
FALSE
In its most basic form, organizational culture can be defined as the shared values and beliefs
that enable members to understand their roles in and the norms of the organization.
AACSB: Analytic
Blooms: Remember
MNC cultures.
Level of Difficulty: 2 Medium
3. Diverse and global teams are one of the most consistent sources of competitive advantage for
any organization.
TRUE
According to many international consultants and managers, diverse and global teams are one
of the most consistent sources of competitive advantage for any organization.
AACSB: Analytic
Blooms: Remember
MNC cultures.
Topic: Managing Culture and Diversity in Global Teams
6-14
4. Hofstede's research found that the national cultural values of employees have an insignificant
impact on their organizational performance, and these values are easily changed by the
organization.
FALSE
Hofstede's research found that the national cultural values of employees have a significant
impact on their organizational performance, and that the cultural values employees bring to
the workplace with them are not easily changed by the organization.
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-02 IDENTIFY the four most common categories of organizational culture that have been found through
research; and discuss the characteristics of each.
Topic: Interaction between National and Organizational Cultures
5. Andre Laurent's research found that cultural differences actually are more pronounced among
foreign employees working within the same multinational organization than among personnel
working for firms in their native lands.
TRUE
Andre Laurent's research supports Hofstede's conclusions. He found that cultural differences
are actually more pronounced among foreign employees working within the same
multinational organization than among personnel working for firms in their native lands.
AACSB: Analytic
Blooms: Remember
Level of Difficulty: 3 Hard
6. For a global retail company, a focused sale campaign on Christmas gift items would be
effective in all of the company's markets.
FALSE
One main benefit of diversity is the generation of more and better ideas. Because group
members come from a variety of cultures, they often are able to create a greater number of
unique (and thus creative) solutions and recommendations.
AACSB: Analytic
Blooms: Understand
Learning Objective: 06-04 DISCUSS common guidelines and principles that are used in building multicultural effectiveness at
the team and the organizational levels.
Topic: Managing Multiculturalism and Diversity
6-15
7. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
TRUE
Organizational cultures of MNCs are shaped by a number of factors, including the cultural
AACSB: Analytic
Blooms: Remember
Learning Objective: 06-03 PROVIDE an overview of the nature and degree of multiculturalism and diversity in today's MNCs.
Topic: Organizational Cultures in MNCs
8. To manage a global team, international managers must take into consideration three factors:
TRUE
To manage a global team, international managers must take into consideration three factors:
AACSB: Analytic
Blooms: Remember
MNC cultures.
9. Guided missile organizational cultures generally are made up of cooperative project teams.
TRUE
Guided missile culture is characterized by strong emphasis on equality in the workplace and
orientation to the task. This organizational culture is oriented to work, which typically is
undertaken by teams or project groups.
AACSB: Analytic
Blooms: Remember
10. A high collectivistic culture in found in the U.S., the U.K., and Australia.
FALSE
Kahai cites the research of Ravi Narayanaswamy, who found that managers are most
effective in using self-control and outcome control in virtual teams whose members come from
a "high individualism culture, i.e., a culture in which ties between individuals are loose and
people tend to achieve things individually and assume personal responsibility." This culture is
found in places such as the U.S., the U.K., and Australia.
AACSB: Analytic
Blooms: Remember
6-16
MNC cultures.
11. As firms began exporting to foreign clients, they became what Adler called "international
corporations."
TRUE
As firms begin exporting to foreign clients, however, and become what she calls "international
corporations" (Phase II in Table 6-4), they must adapt their approach and products to those of
the local market.
AACSB: Analytic
Blooms: Remember
12. Among international firms, which focus on exporting and producing abroad, cultural diversity
has a relatively weak impact on their external relationships with potential buyers and foreign
employees.
FALSE
Among international firms, which focus on exporting and producing abroad, cultural diversity
has a strong impact on their external relationships with potential buyers and foreign
employees.
AACSB: Analytic
Blooms: Remember
13. An example of a token group would be a group of male German bankers who are forecasting
the economic outlook for a foreign investment.
FALSE
Token groups, in which all members but one have the same background. An example would
be a group of Japanese retailers and a British attorney who are looking into the benefits and
shortcomings of setting up operations in Bermuda.
AACSB: Analytic
Blooms: Understand
6-17
14. Individuals in a high collectivistic culture perform better when their values are in harmony with
their managers.
TRUE
In contrast, managers are most effective in using clan control and behavior control in virtual
teams whose members come from a "high collectivistic culture, i.e., a culture characterized by
strong interpersonal ties and by collective achievement and responsibility."
AACSB: Analytic
Blooms: Remember
MNC cultures.
15. As the diversity of a group increases, the likelihood of all members perceiving things in the
same way increases sharply.
FALSE
As the diversity of a group increases, the likelihood of all members perceiving things in the
same way decreases sharply.
AACSB: Analytic
Blooms: Remember
16. An example of a token group is a group of three American, three German, three British and
three Japanese managers who are looking into oil exploration opportunities in Russia.
FALSE
Token groups, in which all members but one have the same background. An example would
be a group of Japanese retailers and a British attorney who are looking into the benefits and
shortcomings of setting up operations in Bermuda.
AACSB: Analytic
Blooms: Understand
17. One main benefit of diversity is the generation of more and better ideas.
TRUE
One main benefit of diversity is the generation of more and better ideas.
AACSB: Analytic
Blooms: Remember
6-18
18. A disadvantage of diversity is that it often leads to groupthink, which is social conformity and
pressures on individual members of a group to conform and reach consensus.
FALSE
A second major benefit is that culturally diverse groups can prevent groupthink, which is
caused by social conformity and pressures on individual members of a group to conform and
reach consensus.
AACSB: Analytic
Blooms: Remember
19. Having people with the right skills is essential to bring together a successful virtual team.
TRUE
Having people with the right skills is essential to bring together a successful virtual team.
AACSB: Analytic
Blooms: Remember
MNC cultures.
20. In the entry stage of group development, the focus is typically on decision making and
implementation.
FALSE
In the entry stage, the focus should be on building trust and developing team cohesion, as we
saw in The World of International Management at the opening of the chapter.
AACSB: Analytic
Blooms: Remember
Multiple Choice Questions
6-19
21. To ensure good communication in global teams, managers should do all of the following
except:
A. Hold an initial meeting in which all members introduce themselves and describe their jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to
avoid misunderstandings
D. Put the details of the project in writing
In her article, "Tips for Working in Global Teams," Melanie Doulton provides helpful
suggestions for good communication in a global team:
• When starting a project with a new team, hold an initial meeting in which all members
introduce themselves and describe the job each one is going to do.
• Hold regular meetings throughout the project to ensure everyone is "on the same page."
Follow up conference calls with written minutes to reinforce what was discussed and what
individual team members are responsible for.
• Put details of the project in writing, especially for a new team in which everyone speaks in
different accents and uses different idioms and colloquialisms.
• Communicate using the most effective technology. For example, decide when e-mail is
preferable to a phone call or instant messaging is preferable to a videoconference. In addition,
try to understand everyone's communication style. For example, for a high-context culture
such as India's, people tend to speak in the passive voice, whereas in North America, people
use the active voice.
AACSB: Analytic
Blooms: Remember
MNC cultures.
22. To build trust among virtual team members, managers should:
A. Deep-six the egos and be friendly

B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments
D. Keep the door open except when on private calls
From their research, Kirkman and colleagues discovered that "building trust requires rapid
responses to electronic communications from team members, reliable performance, and
consistent follow-through. Accordingly, team leaders should coach virtual team members to
avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments."
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-20
23. Implementing a set of values where employees are rewarded or punished according to their
conformity with these values is found in the ______ management approach.
A. Clan control
B. Outcome control
C. Self-control
D. Behavior control
Clan control—implement a set of values where employees are rewarded or punished

according to their conformity with these values.
AACSB: Analytic
Blooms: Remember
MNC cultures.
24. Which of the following is not an advantage of virtual teams?
A. They can reduce problems associated with personality conflicts

B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work
First, Kirkman concluded that "working virtually can reduce team process losses associated
with stereotyping, personality conflicts, power politics, and cliques commonly experienced by
face-to-face teams. Virtual team members may be unaffected by potentially divisive
demographic differences when there is minimal face-to-face contact." Managers may even
give fairer assessments of team members' work because managers are compelled to rely on
objective data rather than being influenced by their perceptual biases.
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-21
25. When individuals join a multinational corporation they bring their national culture, which greatly
affects all of the following except:
A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors
Regardless of whether this environment or cultural context affects the MNC, when individuals
join an MNC, not only do they bring their national culture, which greatly affects their learned
beliefs, attitudes, values, and behaviors, with them, but they also enter into an organizational
culture.
AACSB: Analytic
Blooms: Remember
MNC cultures.
26. PepsiCo, personnel are expected to be cheerful, positive, enthusiastic, and have committed
optimism. This is an example of:
A. Being influenced by the external environment

B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values
Employees of MNCs are expected to "fit in." For example, at PepsiCo, personnel are expected
to be cheerful, positive, enthusiastic, and have committed optimism; at Ford, they are
expected to show self-confidence, assertiveness, and machismo.
AACSB: Analytic
Blooms: Understand
MNC cultures.
6-22
27. Which of the following is not a possible management approach, according to Surinder Kahai?
A. Outcome control
B. Behavior control
C. Mind control
D. Clan control
Surinder Kahai explains how a manager's approach may differ based on whether the
employees are part of an individualist or collectivist national culture. He first identifies four
different possible management approaches:
• Outcome control—measure and regulate outcomes sought
• Behavior control—specify the procedures to be followed by employees
• Clan control—implement a set of values where employees are rewarded or punished
according to their conformity with these values
• Self-control—allow individuals to set their own goals and then monitor their performance in
achieving their goals
AACSB: Analytic
Blooms: Remember
MNC cultures.
28. _____ is a pattern of basic assumptions that are developed by a group as it learns to cope
with problems of external adaptation and internal integration and that are taught to new
members as the correct way to perceive, think, and feel in relation to these problems.
A. Organizational culture
B. Organizational learning
C. Organizational change
D. Organizational structure
A more detailed definition is offered by organizational cultural theorist Edgar Schein, who
defines it as a pattern of shared basic assumptions that the group learned as it solved its
problems of external adaptation and internal integration, and that has worked well enough to
be considered valid and, therefore, to be taught to new members as the correct way to
perceive, think, and feel in relation to those problems.
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-23
29. Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation, are characteristics associated
with an organization's:
A. Ethics
B. Ambience
C. Culture
D. Structure
Regardless of how the term is defined, a number of important characteristics are associated
with an organization's culture. These have been summarized as:
1. Observed behavioral regularities, as typified by common language, terminology, and rituals.
2. Norms, as reflected by things such as the amount of work to be done and the degree of
cooperation between management and employees.
3. Dominant values that the organization advocates and expects participants to share, such as
high product and service quality, low absenteeism, and high efficiency.
4. A philosophy that is set forth in the MNC's beliefs regarding how employees and customers
should be treated.
5. Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations, and intergroup cooperation.
6. Organizational climate, or the overall atmosphere of the enterprise, as reflected by the way
that participants interact with each other, conduct themselves with customers, and feel about
the way they are treated by higher-level management.
AACSB: Analytic
Blooms: Remember
MNC cultures.
30. Observed behavioral regularities are typified by the following except:
A. Common language
B. Terminology
C. Customer relations
D. Rituals
Observed behavioral regularities, as typified by common language, terminology, and rituals.
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-24
31. Organizational climate is reflected by:
A. The degree of cooperation between management and employees

B. Common language, terminology, and rituals
C. High product and service quality
D. The way participants interact with each other
Organizational climate, or the overall atmosphere of the enterprise, as reflected by the way
that participants interact with each other, conduct themselves with customers, and feel about
the way they are treated by higher-level management.
AACSB: Analytic
Blooms: Remember
MNC cultures.
32. Norms are reflected by things such as:
A. Common language, terminology, and rituals

B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level management
Norms, as reflected by things such as the amount of work to be done and the degree of
cooperation between management and employees.
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-25
33. A widely held belief that has not been found to be accurate is that organizational culture:
A. Tends to erase the impact of national culture

B. Tends to be affected by national culture
C. Cannot easily change the cultural values employees bring to the workplace
D. Is different in different subsidiaries
There is a widely held belief that organizational culture tends to moderate or erase the impact
of national culture. The logic of such conventional wisdom is that if a U.S. MNC set up
operations in, say, France, it would not be long before the French employees began to "think
like Americans." In fact, evidence is accumulating that just the opposite may be true.
impact on their organizational performance, and that the cultural values employees bring to
the workplace with them are not easily changed by the organization.
AACSB: Analytic
Blooms: Remember
34. When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners
to meet and talk about their cultural differences. This is an example which illustrates that:
A. Organizational culture clashes often occur when partners do not fully understand the
culture of the new partner
B. Cultural differences are less pronounced among foreign employees working for the same
multinational company
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want one
culture influencing the other
When the Upjohn Company of Kalamazoo, Michigan, merged with Pharmacia AB of Sweden,
which also has operations in Italy, Americans failed to realize some of the cultural differences
between themselves and their new European partners.
AACSB: Analytic
Blooms: Understand
6-26
35. Which of the following shows the identity dimension of corporate culture?
A. To put the demands of the job before the needs of the individual
B. To put the needs of the individual before the needs of the job
C. To identify with and uphold the expectations of the employing organizations
D. To strive for accuracy and attention to detail
According to Table 6-1, the identity dimension of corporate culture is to identify with and
uphold the expectations of the employing organizations.
AACSB: Analytic
Blooms: Understand
36. Which of the following would be associated with the dimension of pragmatic conduct?
A. To put the expertise and standards of the employing organization first

B. To put the demands and expectations of the customers first
C. To comply with clear and definite systems
D. To pursue clear aims and objectives
According to Table 6-1, pragmatic conduct means "To put the demands and expectations of
customers first. To do what they ask."
AACSB: Analytic
Blooms: Understand
37. The United Kingdom shows the following characteristics regarding the corporate dimension:
A. Administrative
B. Industrial
C. Pragmatic
D. Commercial
According to Table 6-2, the United Kingdom's corporate characteristic is commercial.
AACSB: Analytic
Blooms: Remember
6-27
38. 'Dirigiste' is used to describe the _____ dimension.
A. Economics
B. Philosophical
C. Cultural
D. Structural
According to Table 6-2, ‘Dirigiste' is used to describe the Economics dimension.
AACSB: Analytic
Blooms: Remember
39. Which of the following sets of characteristics is typical of French negotiators?
A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes
negotiations, which are characterized by an exchange of grand ideas and general
principles, social competence is very important
D. Look for a meeting of minds, intellectual competence is very important, and a contract is
viewed as a well-reasoned transaction
According to the text, the characteristics typical of French negotiators include:
• Looking for a meeting of minds.

• Intellectual competence is very important.
• Persuasion through carefully prepared and skilled rhetoric is employed.
• Strong emphasis is given to a logical presentation of one's position coupled with well-
reasoned, detailed solutions.
• A contract is viewed as a well-reasoned transaction.
• Trust emerges slowly and is based on the evaluation of perceived status and intellect.
AACSB: Analytic
Blooms: Remember
6-28
40. There are three aspects of organizational functions that seem to be especially important in
determining an MNC's organizational culture. These are:
A. The general views that employees hold about the MNC's purpose, destiny, goals, and their
places in them; the age of the organization; and the degree of cultural diversity among the
members of the organization
B. The general relationship between the managers and rank-and-file employees in the
organization; the degree of cultural diversity among the members of the organization; and
the hierarchical system of authority that defines the roles of managers and subordinates
C. The degree of cultural diversity among the members of the organization; the age of the
organization; and the strength of the organization's leadership
D. The general relationship between the employees and their organization; the hierarchical
system of authority that defines the roles of managers and subordinates; and the general
views that employees hold about the MNC's purpose, destiny, goals, and their places in
them
In addition, there are three aspects of organizational functioning that seem to be especially
important in determining MNC organizational culture: (1) the general relationship between the
employees and their organization; (2) the hierarchical system of authority that defines the roles
of managers and subordinates; and (3) the general views that employees hold about the
MNC's purpose, destiny, goals, and their place in them.
AACSB: Analytic
Blooms: Remember
41. The following are the steps outlined by Numeroff and Abrahams used during mergers and
acquisitions except:
A. Establishing the purpose, goal, and focus of the merger

B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication
Numeroff and Abrahams have suggested that there are four steps that are critical in this
process: (1) The two groups have to establish the purpose, goal, and focus of their merger. (2)
Then they have to develop mechanisms to identify the most important organizational
structures and management roles. (3) They have to determine who has authority over the
resources needed for getting things done. (4) They have to identify the expectations of all
involved parties and facilitate communication between both departments and individuals in the
structure.
AACSB: Analytic
Blooms: Remember
6-29
person.
A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile
Family culture is characterized by a strong emphasis on hierarchy and orientation to the

person.
AACSB: Analytic
Blooms: Remember
43. _____ culture is a project-oriented culture.
A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator
According to Figure 6-2, the guided missile culture is a project-oriented culture.
AACSB: Analytic
Blooms: Remember
44. Trompenaars found that a(n) _____ organizational culture is common in countries such as
Turkey, Pakistan, Venezuela, China, Hong Kong, and Singapore.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator
Family culture is characterized by a strong emphasis on hierarchy and orientation to the

person. The result is a family-type environment that is power-oriented and headed by a leader
who is regarded as a caring parent and one who knows what is best for the personnel.
Trompenaars found that this organizational culture is common in countries such as Turkey,
Pakistan, Venezuela, China, Hong Kong, and Singapore.
AACSB: Analytic
Blooms: Remember
6-30
45. When it works well, the _____ culture can catalyze and multiply the energies of the personnel
and appeal to their deepest feelings and aspirations.
A. Incubator
B. Guided missile
C. Eiffel Tower
D. Family
When it works well, family culture can catalyze and multiply the energies of the personnel and
appeal to their deepest feelings and aspirations.
AACSB: Analytic
Blooms: Remember
46. The family culture is foreign to most in:
A. China
B. United States
C. Venezuela
D. Turkey
This type of culture is foreign to most managers in the United States, who believe in valuing
people based on their abilities and achievements, not on their age or position in the hierarchy.
AACSB: Analytic
Blooms: Remember
task.
A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower
Eiffel Tower culture is characterized by strong emphasis on hierarchy and orientation to the
task.
AACSB: Analytic
Blooms: Remember
6-31
48. Under a(n) _____ culture, jobs are well defined, employees know what they are supposed to
do, and everything is coordinated from the top.
A. Guided missile
B. Family
C. Eiffel Tower
D. Incubator
Eiffel Tower culture is characterized by strong emphasis on hierarchy and orientation to the
task. Under this organizational culture, jobs are well defined, employees know what they are
supposed to do, and everything is coordinated from the top.
AACSB: Analytic
Blooms: Remember
49. Eiffel Tower cultures are most commonly found in:
A. Northwestern European countries, such as Germany, Denmark, and France

B. Asian countries, such as Taiwan, South Korea, and Japan
C. South American countries, such as Brazil, Argentina, and Chile
D. North Atlantic countries, such as England, Ireland, and Canada
Eiffel Tower culture most commonly is found in northwestern European countries. Examples
include Denmark, Germany, and the Netherlands.
AACSB: Analytic
Blooms: Remember
50. _____ culture is characterized by a strong emphasis on equality in the workplace and
orientation to the task.
A. Guided missile
B. Family
C. Incubator
D. Eiffel Tower
Guided missile culture is characterized by strong emphasis on equality in the workplace and
orientation to the task.
AACSB: Analytic
Blooms: Remember
6-32
51. A(n) _____ organizational culture is characterized by a strong emphasis on equality and
orientation to the person.
A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile
Incubator culture is the fourth major type of organizational culture that Trompenaars identified,
and it is characterized by strong emphasis on equality and personal orientation.
AACSB: Analytic
Blooms: Remember
52. _____ cultures often create environments where participants thrive in an intense, emotional
commitment to the nature of the work.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator
Incubator cultures often create environments where participants thrive on an intense,

emotional commitment to the nature of the work.
AACSB: Analytic
Blooms: Remember
53. Change in the incubator culture is:
A. Slow and calculated

B. Almost nonexistent
C. Moderate and methodological
D. Fast and spontaneous
As noted, change in the incubator culture often is fast and spontaneous.
AACSB: Analytic
Blooms: Remember
6-33
54. Which of the following describes the "relationships between employees" in a family corporate
culture?
A. Diffuse relationships to organic whole to which one is bonded

B. Specific role in mechanical system of required interaction
C. Specific tasks in cybernetic system targeted on shared objectives
D. Diffuse, spontaneous relationships growing out of shared creative process
According to Table 6-3 the relationships between employees in the family corporate culture
can be described as "diffuse relationships to organic whole to which one is bonded".
AACSB: Analytic
Blooms: Understand
55. Which of the following describes the "attitude toward authority" in an Eiffel Tower corporate
culture?
A. Status is achieved by individuals exemplifying creativity and growth

B. Status is achieved by project group members who contribute to a targeted goal
C. Status is ascribed to superior roles that are distant yet powerful
D. Status is ascribed to parent figures that are close and powerful
According to Table 6-3 the attitude toward authority in an Eiffel Tower corporate culture can be
described as "status is ascribed to superior roles that are distant yet powerful".
AACSB: Analytic
Blooms: Understand
56. Which of the following describes the "ways of thinking and learning" in a guided missile
culture?
A. Process oriented, creative, ad hoc, inspirational

B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical, and rationally efficient
D. Intuitive, holistic, lateral, and error-correcting
According to Table 6-3 the ways of thinking and learning in a guided missile culture can be
described as "problem centered, professional, practical, cross-disciplinary".
AACSB: Analytic
Blooms: Understand
6-34
57. As firms begin exporting to foreign clients and become what Adler calls "international
corporations," they must:
A. Increase the standardization of products and services

B. Adapt their products but not their approach to those of the local market
C. Adapt their approach and products to those of the local market
D. Adapt their approach but not their products to those of the local market
As firms begin exporting to foreign clients and become what Adler calls "international
corporations" (Phase II in Table 6-4), they must adapt their approach and products to those of
the local market.
AACSB: Analytic
Blooms: Remember
58. The following deal with largest, worldwide markets:
A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations
According to Table 6-4, the global corporations deal with the largest, worldwide markets.
AACSB: Analytic
Blooms: Remember
59. As companies become what Alder calls "multinational firms," they often find that _____ tends
to dominate all other considerations and the direct impact of culture may lessen slightly.
A. Quality
B. Serviceability
C. Durability
D. Price
As companies become what Adler calls "multinational corporations" (Phase III), they often find
that price tends to dominate all other considerations, and the direct impact of culture may
lessen slightly.
AACSB: Analytic
Blooms: Remember
6-35
60. According to Adler, the primary orientation of a global firm is:
A. Strategy
B. Price
C. Market
D. Product or service
According to Table 6-4, the primary orientation of a global firm is strategy.
AACSB: Analytic
Blooms: Remember
61. Global firms need:
A. Neither an internal nor an external diversity focus

B. Both an internal and an external diversity focus
C. An internal but not an external diversity focus
D. An external but not an internal diversity focus
Global firms need both an internal and an external diversity focus (again see Figure 6-4).
AACSB: Analytic
Blooms: Remember
62. A _____ group is a group that is characterized by members who share similar backgrounds
and generally perceive, interpret, and evaluate events in similar ways.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous
Homogeneous groups, in which members have similar backgrounds and generally perceive,
interpret, and evaluate events in similar ways. An example would be a group of male German
bankers who are forecasting the economic outlook for a foreign investment.
AACSB: Analytic
Blooms: Remember
6-36
63. A _____ group is a group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate
the possibility of investing in a venture.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous
Bicultural groups, in which two or more members represent each of two distinct cultures. An
example would be a group of four Mexicans and four Canadians who have formed a team to
investigate the possibility of investing in Russia.
AACSB: Analytic
Blooms: Remember
64. A _____ group is a group in which there are individuals from three or more different ethnic
backgrounds, such as three U.S., three German, three Uruguayan and three Chinese
managers who are looking into mining operations in South America.
A. Homogeneous
B. Token
C. Multicultural
D. Bicultural
Multicultural groups, in which there are individuals from three or more different ethnic
backgrounds. An example is a group of three American, three German, three Uruguayan, and
three Chinese managers who are looking into mining operations in Chile.
AACSB: Analytic
Blooms: Remember
6-37
65. To unite a diverse set of employees in a pharmaceutical company under a common corporate
culture, AstraZeneca's Global Steering Group has focused on three universal cultural pillars.
Which of the following is not one of those pillars?
A. Leadership and Management Capability

B. Transparency in Talent Management and Career Progression
C. Work/Life Challenges
D. Insight Exchange
To unite such a diverse set of employees under a common corporate culture, AstraZeneca's
Global Steering Group has focused on three universal cultural pillars: "Leadership and
Management Capability," "Transparency in Talent Management and Career Progression," and
"Work/Life Challenges."
AACSB: Analytic
Blooms: Remember
MNC cultures.
66. The benefits or advantages of culturally diverse groups include the following except:
A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection
While there are some potential problems to overcome when using culturally diverse groups in
today's MNCs, there are also very many benefits to be gained. In particular, there is growing
evidence that culturally diverse groups can enhance creativity, lead to better decisions, and
result in more effective and productive performance.
AACSB: Analytic
Blooms: Remember
6-38
67. When _____ occurs, group participants believe that their ideas and actions are correct and
that those who disagree with them are either uninformed or deliberately trying to sabotage
their efforts.
A. Group cognitive inertia

B. Group reverse vigilance
C. Groupthink
D. Static decision-making
When groupthink occurs, group participants come to believe that their ideas and actions are
correct and that those who disagree with them are either uninformed or deliberately trying to
sabotage their efforts.
AACSB: Analytic
Blooms: Remember
68. Multicultural teams are most effective when they face tasks requiring:
A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness
Multicultural teams are most effective when they face tasks requiring innovativeness. They are
far less effective when they are assigned to routine tasks.
AACSB: Analytic
Blooms: Remember
69. In the _____ stage of group development, the focus should be on building trust and
developing team cohesion.
A. Entry
B. Work
C. Action
D. Reflection
In the entry stage, the focus should be on building trust and developing team cohesion, as we
saw in The World of International Management at the opening of the chapter.
AACSB: Analytic
Blooms: Remember
6-39
70. In the _____ stage of group development, attention may be directed more toward describing
and analyzing the problem or task that has been assigned.
A. Entry
B. Work
C. Action
D. Reflection
In the work stage of development, attention may be directed more toward describing and
analyzing the problem or task that has been assigned.
AACSB: Analytic
Blooms: Remember
Essay Questions
71. What is organizational culture and what are some of its major characteristics?
Organizational culture is a set of shared values and beliefs that enable members to
understand their role and the norms of the organization. Some important characteristics of
organizational cultures include observed behavioral regularities, norms, dominant values,
philosophy, rules and organizational climate.
Feedback: Organizational culture is a set of shared values and beliefs that enable members to
understand their role and the norms of the organization. Some important characteristics of
organizational cultures include observed behavioral regularities, norms, dominant values,
philosophy, rules and organizational climate.
AACSB: Analytic
Blooms: Remember
MNC cultures.
6-40
72. Discuss findings of Hofstede and Andre Laurent about the relationship between national and
organizational culture.
There is a widely held belief that organizational culture tends to moderate or erase the impact
of national culture. The logic of such conventional wisdom is that if a U.S. MNC set up
operations in, say, France, it would not be long before the French employees began to "think
like Americans". In fact, evidence is accumulating that just the opposite may be true.
impact on their organizational performance and that the cultural values employees bring to the
workplace with them are not easily changed by the organization. So, for example, while some
French employees would have a higher power distance than Swedes and some a lower power
distance, chances are "that if a company hired locals in Paris, they would, on the whole, be
less likely to challenge hierarchical power than would the same number of locals hired in
Stockholm". Andre Laurent's research supports Hofstede's conclusions. He found that cultural
differences actually are more pronounced among foreign employees working within the same
Feedback: There is a widely held belief that organizational culture tends to moderate or erase
the impact of national culture. The logic of such conventional wisdom is that if a U.S. MNC set
up operations in, say, France, it would not be long before the French employees began to
"think like Americans". In fact, evidence is accumulating that just the opposite may be true.
impact on their organizational performance and that the cultural values employees bring to the
workplace with them are not easily changed by the organization. So, for example, while some
French employees would have a higher power distance than Swedes and some a lower power
distance, chances are "that if a company hired locals in Paris, they would, on the whole, be
less likely to challenge hierarchical power than would the same number of locals hired in
Stockholm". Andre Laurent's research supports Hofstede's conclusions. He found that cultural
differences actually are more pronounced among foreign employees working within the same
AACSB: Analytic
Blooms: Remember
6-41
73. What are the four types of organizational culture identified by Fons Trompenaars? Provide a
brief description of each of these cultures.
The four types of organizational culture identified by Trompenaars are as follows: Family
culture, Eiffel Tower culture, Guided missile culture and Incubator culture. Family culture is a
culture characterized by a strong emphasis on hierarchy and orientation to the person; Eiffel
Tower culture is a culture characterized by strong emphasis on hierarchy and orientation to
the task; Guided missile culture is a culture characterized by a strong emphasis on equality in
the workplace and orientation to the task and Incubator culture is a culture characterized by a
strong emphasis on equality and orientation to the person.
Feedback: The four types of organizational culture identified by Trompenaars are as follows:
Family culture, Eiffel Tower culture, Guided missile culture and Incubator culture. Family
culture is a culture characterized by a strong emphasis on hierarchy and orientation to the
person; Eiffel Tower culture is a culture characterized by strong emphasis on hierarchy and
orientation to the task; Guided missile culture is a culture characterized by a strong emphasis
on equality in the workplace and orientation to the task and Incubator culture is a culture
characterized by a strong emphasis on equality and orientation to the person.
AACSB: Analytic
Blooms: Understand
6-42
74. Discuss some of the potential problems associated with diversity.
Overall, diversity may cause a lack of cohesion that results in the unit's inability to take
concerted action, be productive and create a work environment that is conducive to both
efficiency and effectiveness. These potential problems are rooted in people's attitudes.
Another potential problem that may be perceptual is that when culturally diverse groups come
together, they often bring preconceived stereotypes with them. This perception can result in
status-related problems. A related problem is inaccurate biases. Still another potential problem
with diverse groups is inaccurate communication, which could occur for a number of reasons.
One is misunderstandings caused by words used by a speaker that are not clear to other
members. Another contribution to miscommunication may be the way in which situations are
interpreted. Diversity also may lead to communication problems because of different
perceptions of time.
Feedback: Overall, diversity may cause a lack of cohesion that results in the unit's inability to
take concerted action, be productive and create a work environment that is conducive to both
efficiency and effectiveness. These potential problems are rooted in people's attitudes.
Another potential problem that may be perceptual is that when culturally diverse groups come
together, they often bring preconceived stereotypes with them. This perception can result in
status-related problems. A related problem is inaccurate biases. Still another potential problem
with diverse groups is inaccurate communication, which could occur for a number of reasons.
One is misunderstandings caused by words used by a speaker that are not clear to other
members. Another contribution to miscommunication may be the way in which situations are
interpreted. Diversity also may lead to communication problems because of different
perceptions of time.
AACSB: Analytic
Blooms: Understand
6-43
International Management Culture, Strategy, and Behavior Luthans 9th Edition Test Bank
75. Create a virtual team with two people from each of four countries, which you name. Include
both individualistic and collectivistic cultures. List as many positives for your team as you can
and explore the effects of each on the work of the team.
Answers will vary depending on the composition of the team and the list of positives named.
Individualistic cultures include the U.S., the U.K. and other European countries, Australia, and
Canada. Collectivistic cultures include China, Japan, the Philippines, Vietnam, and South
Korea. The advantages/positives of a virtual team include reduction in stereotyping,
personality conflicts, power politics, and cliques. Potentially divisive demographic differences
may not interfere. Managers' assessments are more likely to rely on objective date rather than
perceptual biases. Work on a project may move around the clock from one time zone to
another. Complex problems may be solved quickly, thus providing a huge competitive
advantage. A diverse team may work best on multidimensional business problems.
Feedback: Answers will vary depending on the composition of the team and the list of
positives named. Individualistic cultures include the U.S., the U.K. and other European
countries, Australia, and Canada. Collectivistic cultures include China, Japan, the Philippines,
Vietnam, and South Korea. The advantages/positives of a virtual team include reduction in
stereotyping, personality conflicts, power politics, and cliques. Potentially divisive demographic
differences may not interfere. Managers' assessments are more likely to rely on objective date
rather than perceptual biases. Work on a project may move around the clock from one time
zone to another. Complex problems may be solved quickly, thus providing a huge competitive
advantage. A diverse team may work best on multidimensional business problems.
AACSB: Analytic
Blooms: Apply
MNC cultures.
6-44
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Organizational Cultures and Diversity

True / False Questions

22. To build trust among virtual team members, managers should:

A. Deep-six the egos and be friendly

24. Which of the following is not an advantage of virtual teams?

A. They can reduce problems associated with personality conflicts

A. Being influenced by the external environment

30. Observed behavioral regularities are typified by the following except:

31. Organizational climate is reflected by:

A. The degree of cooperation between management and employees

A. Common language, terminology, and rituals

A. Tends to erase the impact of national culture

A. To put the expertise and standards of the employing organization first

39. Which of the following sets of characteristics is typical of French negotiators?

A. Establishing the purpose, goal, and focus of the merger

43. _____ culture is a project-oriented culture.

46. The family culture is foreign to most in:

49. Eiffel Tower cultures are most commonly found in:

A. Northwestern European countries, such as Germany, Denmark, and France

53. Change in the incubator culture is:

A. Slow and calculated

A. Diffuse relationships to organic whole to which one is bonded

A. Status is achieved by individuals exemplifying creativity and growth

A. Process oriented, creative, ad hoc, inspirational

A. Increase the standardization of products and services

58. The following deal with largest, worldwide markets:

61. Global firms need:

A. Neither an internal nor an external diversity focus

A. Leadership and Management Capability

A. Group cognitive inertia

True / False Questions

Multiple Choice Questions

22. To build trust among virtual team members, managers should:

A. Deep-six the egos and be friendly

Clan control—implement a set of values where employees are rewarded or punished

24. Which of the following is not an advantage of virtual teams?

A. They can reduce problems associated with personality conflicts

A. Being influenced by the external environment

30. Observed behavioral regularities are typified by the following except:

Observed behavioral regularities, as typified by common language, terminology, and rituals.

A. The degree of cooperation between management and employees

32. Norms are reflected by things such as:

A. Common language, terminology, and rituals

A. Tends to erase the impact of national culture

A. To put the expertise and standards of the employing organization first

According to Table 6-2, the United Kingdom's corporate characteristic is commercial.

According to Table 6-2, ‘Dirigiste' is used to describe the Economics dimension.

39. Which of the following sets of characteristics is typical of French negotiators?

According to the text, the characteristics typical of French negotiators include:

• Looking for a meeting of minds.

A. Establishing the purpose, goal, and focus of the merger

Family culture is characterized by a strong emphasis on hierarchy and orientation to the

43. _____ culture is a project-oriented culture.

According to Figure 6-2, the guided missile culture is a project-oriented culture.

Family culture is characterized by a strong emphasis on hierarchy and orientation to the

46. The family culture is foreign to most in:

49. Eiffel Tower cultures are most commonly found in:

A. Northwestern European countries, such as Germany, Denmark, and France

Incubator cultures often create environments where participants thrive on an intense,

53. Change in the incubator culture is: