1.

Consider the following two statements:

(1) Culture was expressed by Handy as ‘the sum total of the belief, knowledge, attitudes, norms and
customs that prevail in an organisation’?

(2) The tales of company creation, such as difficulties the founder had to face and how he/she managed
to overcome them successfully often form a part of organizational culture. Which of the above
statements is/are correct?

A (1) only

B (2) only

C Both

D Neither

2. John begins a new job at a company. He discovers that, unlike his previous job, all staff members
dress casually. According to Schein, which level of culture is John observing?

A Artefacts

B Espoused values

C Informal rules

D Basic assumptions

3. The first leaders of the organisation tend to define its later culture. Which major writer on
culture came to this conclusion?

A Handy

B Schein

4. Which of the following is one of the three levels of culture described by Schein?

A Things that are short term only, such as staffing levels

B Things that are difficult to identify as they are unseen and often unconscious

C Things that endure, such as organisational hierarchy

D Things that initially appear superficial, such as timekeeping rules

 5. Which TWO of the following are cultural types identified by Handy?

(i) Role

(ii) Person

(iii) Bureaucratic

(iv) Individual

A (ii) and (iii) only

B (i) and (iii) only

C (i), (ii) and (iii) only

D (i) and (ii) only

6. The informal organisation can either enhance or hold the business back.

Is this statement TRUE or FALSE?

A True

B False

7. According to Handy’s theory, in the person culture which of the following would be correct?

A Contribution made by each employee is recognised and appreciated

B Status symbols are there to remind staff of their place

C People believe that if they meet their job requirement, they will slowly progress to the senior
management

D Rules are put in place and must be strictly followed by all

8. Which of the four cultural types popularised by Handy is often found in organisations with an
entrepreneurial structure?

A Task

B Person

C Power

D Role
 9. Research has indicated that workers in country A display characteristic such as the desire for
material wealth and possessions, while workers in country B value personal relationships,
belonging and the quality of life.

According to Hofstede’s theory, these distinctions relate to which of the following cultural dimensions?

A Masculinity-femininity

B Power-distance

C Indulgence-restraint

D Uncertainty avoidance

10. Consider the following cultural ‘dimensions’ as popularised by Hofstede.

(i) High uncertainty avoidance

(ii) Masculinity

(iii) Low power distance

(iv) Individualism

In country A, most businesses are highly bureaucratic with many defined rules for employees. However,
even junior staff members are usually involved in the creation of these rules, as they expect to have a
say in the running of the business.

Which TWO of the cultural dimensions identified above are shown to exist in country A?

A (i) and (ii)

B (i) and (iii)

C (ii) and (iii)

D (iii) and (iv)

11. ‘The _____________ is the network of relationships that exist within an organisation and arises
through common interests and friendships between members of staff.’

Which word fits the gap in the above definition?

A Grapevine

B Organisational culture

C Scalar chain

D Informal organisation
 12. GHF Co is currently examining its organisational structure, with particular focus on its informal
organisation.

Which of the following statements regarding the informal organisation is correct?

A If managers become involved in the informal organisation, employee motivation and productivity
usually fall

B The informal organisation typically tends to encourage employees to act as individuals

C The informal organisation may form a significant part of the opposition managers face if they attempt
to implement changes in the organisation

D Interdivisional communication tends to be weaker through the informal network when compared with
formal communications

13. Hofstede examined differences between national cultures. Which of following is part of his
analysis?
i. Individualism
ii. Masculinity
iii. Opportunity

A. 1,2, and 3
B. 2 and 3 only
C. 1 and 2 only
D. 1 and 3 only

14. Which two of the following are connected stakeholders?

A. Sales manager
B. Executive director
C. Supplier
D. Non-executive director

15. Which of the following statements reflects the stakeholder approach to decision making?
A. Various people have a legitimate interest in the business
B. All stakeholders have a financial interest in the business
C. Competitors are classed as stakeholders
D. Owners are the most important stakeholders.
16. Cyert and March described a coalition between stakeholders. Which two of the following are
from this coalition?
A. Lender
B. Shareholders
C. Supplier
D. Mangers

17. Which author considered organization culture in the context of the following elements?
1. Artefacts
2. Espoused values
3. Basic assumptions
A. Hofstede
B. Ouchi
C. Schien
D. Handy

18. What is the prime interest of the shareholders of the organization?

A. Increase in sale values
B. Return on investment
C. Share price increase
D. Profit sharing

19. MNO CO. is an ACCA tuition provider. It has decide to use a reward system to help determine
lectures pay, based on lectures performance. Which two of following are fair criteria to assess
individual lectures?
A. Result of student satisfaction survey
B. Examination result
C. Number of students in the class
D. Company profits

20. HOFSTEDE devised a framework that describes dimensions of differences/values perspectives

between national cultures. Which cultural dimension is described as the degree of inequality
among people which the population of a country considered normal
A. Individualism versus collectivism
B. Uncertainty avoidance
C. Power distance
D. Masculinity versus femininity
21. Which writer on organization structures is associated which each of the following terms?
Hofstede Scholes
 Uncertainty avoidance
 Individualism/collectivism

22. An organisations is controlled by a key central figure, owner or founder. It is a small organization
where people all know each other and get on well. Which of the following is the culture of the
above organization as recognized by Handy?
A. Dominance
B. Power culture
C. Authority

23. To which the following cultural types, did Handy give the name of Greek god Athena?
A. Role culture
B. Task culture
C. Power culture
D. Person culture

24. Which of the following according with Schein’s view of organizational culture?
A. Myths and legends weaken a culture
B. A strong culture makes the environment irrelevant
C. The culture should fit the environment

25. Which culture got matrix structure?

A. Role
B. Task
C. Power
D. Person

26. One model of organizational culture defines four basic types, namely power, role, and task and
person cultures. Which writer proposed this model?
A. Hofstede
B. Schein
C. Handy
D. Tuckman

27. Interest of customer and shareholders can often appear to conflict. Is this statement true or
false?
A. True
B. False
28. Employees and finance providers belong to which two of the following stakeholder groups?
A. Internal, connected
B. External, internal
C. Connected, outsiders
D. Internal, suppliers

29. Which stakeholder have a particularly strong interest in an organization’s survival and growth?
A. Shareholders
B. Bankers
C. Employees and management
D. Suppliers

30. An organization which has high uncertainty avoidance is likely to adopt which of the following
cultures?
A. Power
B. Role
C. Task
D. Person

31. State whether the following statements about stakeholders mapping are true or false?
1 Stakeholders with a high level of power but low interest are most important.
2 Stakeholders with a low interest and power are of medium importance.
3 The least important stakeholder groups are those high interests and a high level of power.

A. They are all true

B. They are all false
C. 1 and 2 are true
D. 1 and 3 are false

32. According to Charles handy four cultural types which of the following organizations would adopt
a role culture?
A. A large traditional corporate
B. An owner operated enterprise
C. An NGO
D. A partnership firm
33. The government is an external stakeholder of an organization. In which of the following ways
does it affect an organization?
1. Through the regulatory framework set by Government.
2. By monitoring the day to day activities of the organization
3. By selling the economic environment within which an organization is expected to operate.
4. By trying to influence the business of an organization.

A. All of the above

B. 1,2, and 3
C. 2 and 4
D. 1 and 3

34. What is meant by the grapevine?

A. The way unofficial information is communicated to employees
B. A formal communication of information
C. An informal communication network
D. Social relationship and behavioral norms

35. Which of the following is the potential advantage of an informal organization for a business?
A. Team work and cooperation
B. The grapevine effect
C. Escape from formal procedures and systems
D. Personal and social relationship among employees.