Chapter 7

In which type of organization is decision making delegated as far down the chain of command as possible?

Decentralized

Which of the following statements is FALSE concerning the concept of Differential Association?

Differential Association is not described in the decision-making framework of this book

Unfortunately, in today's competitive world, a company's history and unwritten rules are not part of its corporate culture.

False

Which of the following is NOT a characteristic of a centralized organization?

Few and informal rules

A cultural audit_____.

Is an assessment of an organization's values

What is the definition of corporate culture?

The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business.

Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.

True

A compliance culture ______.

Uses a legalistic approach to ethics

A_____ organizational structure is best for organizations in which processes are routine and the division of labor is very well-defined. There organizations have a lot of formal rules, policies, and procedures.

Centralized

Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?

Compliance

Which is NOT a characteristic of culture?

Culture can be changed easily and quickly

The MOST important attribute for effective leadership is ______.

Leading by example

What kind of power stems from a belief that a certain person has the right to exert power over others?

Legitimate power

What type of power is being used when one person perceives that his or her goals or objectives are similar to another's and the second person attempts to influence the first to take actions allowing both to achieve their objectives?

Referent

A values-based ethics culture _________.

Relies upon an explicit mission statement that defines the core values of the firm