Chapter 12

Changing a problem culture: A. is never a short-term exercise. B. is always a short-term exercise. C. requires a determined effort by a limited number of employees. D. is usually easier than it is to instill a strategy-supportive culture from scratch. E. can be achieved by an overnight transformation

A. is never a short-term exercise

Which of the following is NOT one of the positive impacts that a company's stated values and ethical standards have on its corporate culture? A. Communicating the company's good intentions B. Validating the integrity and above-board nature of the company's business principles and operating methods C. Steering company personnel toward both doing things right and doing the right thing D. Establishing a corporate conscience E. Identifying how best to adapt to changing market conditions

E. Identifying how best to adapt to changing market conditions

In a strong-culture company: A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out. B. there is wide support for high ethical standards among both managers and employees. C. a company has more strategy flexibility because it can change its strategy and be confident that the culture will welcome the strategy changes and be an ally in implementing whatever changes are called for. D. there is little room for employee empowerment, because independent-thinking empowered employees may well make decisions or engage in actions that weaken the culture. E. management insists that official policies and procedures be followed religiously.

A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out.

Leading the drive for good strategy execution and operating excellence calls upon senior executives to: A. be very personable, effective communicators, and skilled in the empowerment of company personnel. B. personally lead the implementation process and drive the pace of progress. C. delegate little to subordinates and, instead, personally exert a strong, highly visible influence on the company's approaches to strategy execution. D. be creative in establishing policies and procedures that will instill high standards of operating excellence. E. be charismatic, decisive decision-makers, and make inspiring speeches at company events

B. personally lead the implementation process and drive the pace of progress.

A hallmark of a strong-culture company is: A. strictly enforced policies and procedures. B. a strongly entrenched competitive strategy. C. the dominating presence of certain deeply rooted values and norms of behavior that are widely shared. D. decentralized decision-making and empowered employees. E. a deep commitment to benchmarking, best practices, and operating excellence

C.the dominating presence of certain deeply rooted values and norms of behavior that are widely shared.

Which of the following topics would least likely be contained in a company's code of ethics? A. Prohibiting giving or accepting bribes, kickbacks, or gifts B. Expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest C. Barring dealing with suppliers that employ child labor or engage in other unsavory practices D. Committing to a no-layoff policy and to adequate funding of employee retirement programs E. Avoiding use of company assets, resources, and property for personal or other inappropriate purposes

D. Committing to a no-layoff policy and to adequate funding of employee retirement programs

Which of the following is NOT a fundamental part of a company's culture? The work practices and behaviors that define "how we do things around here" The company's standard of what is ethically acceptable and what is not, along with the "chemistry" and "personality" that permeates its work environment The core values and business principles that management preaches and practices The company's strategic vision, strategic intent, and culture strategy The legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices

The company's strategic vision, strategic intent, and culture strategy

Which of the following statements about a high-performance culture is true? A. Results-oriented, high-performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets. B. High-performance cultures often have a low regard for high ethical standards (because some disregard for ethics is a normal part of meeting or beating performance targets). C. The challenge in creating a high-performance culture is to come up with a strategic vision and strategy that wins enthusiastic support from most all company personnel. D. In a high-performance culture, the clear and unyielding expectation is that all company personnel will strictly follow company policies and procedures. E. In high-performance cultures, there's strong managerial commitment to paying big bonuses and granting generous stock options.

A. Results-oriented, high-performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets.

Once established, company cultures can be perpetuated by: A. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. B. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel. C. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision. D. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts. E. making cultural values and beliefs the centerpiece of the company's competitive strategy

A. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.

Companies with change-resistant cultures are: A. typically opposed to performance-based incentive compensation and employee empowerment. B. prone to be preoccupied with avoiding risks and are unlikely to pursue actions to capture emerging opportunities. C. often overly gung ho about looking outside the company for best practices, new managerial approaches, and innovative ideas. D. often preoccupied with making sure the company has an aggressive strategic vision that embraces risky business strategies. E. typically run by amoral managers who have little regard for high ethical standards

B. prone to be preoccupied with avoiding risks and are unlikely to pursue actions to capture emerging opportunities.

A company's culture is typically grounded in and shaped by: A. its core competencies and competitive capabilities. B. its long-term strategic success or lack thereof. C. the degree to which top management is committed to achieving market leadership. D. its core values and the bar it sets for ethical standards. E. its strategic intent and its reward system

D. its core values and the bar it sets for ethical standards.

Which of the following is something to look for in identifying a company's culture? A. The atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices B. The track record in meeting or beating its financial and strategic performance targets C. The intensity and makeup of the company's value chain D. The strategic intent and competitive strategy inherent within the company's efforts for successful strategy execution E. The resource strengths, core competencies, and competitive capabilities that permeate the organization

A. The atmosphere, spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

A strongly implanted culture provides a huge assist in executing strategy because company managers can use the traditions, beliefs, values, common bonds, or behavioral norms: A. as levers to mobilize commitment to executing the chosen strategy. B. as reinforcement for convincing staff that the strategy is sound and molded in tradition. C. to ensure the staff will embrace the new strategy like they have in the past. D. to manipulate jobholders into thinking traditions are important. E. as disciplinary measures in making the employees perform better and achieve targets.

A. as levers to mobilize commitment to executing the chosen strategy.

A company's value statement and code of ethics: A. help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel. B. help prevent it from coming across to customers and the general public as greedy. C. serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical. D. are the most important factors determining its reputation with customers, suppliers, employees, shareholders, and society at large. E. should always be made a prominent and visible part of the company's strategic intent and strategy

A. help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel.

The place for management to begin in trying to change a problem culture is: A. identifying facets of the present culture that are obstacles to executing the company's strategy and meeting performance targets. B. spending heavily on programs to train employees in the ways and beliefs of the new culture to be implanted. C. visibly praising and rewarding people who exhibit traits and behaviors that undermine the existing culture. D. writing a new value statement and describing in highly motivating terms the kind of culture that is needed. E. instituting incentive compensation programs that generously reward employees for adopting best practices

A. identifying facets of the present culture that are obstacles to executing the company's strategy and meeting performance targets.

Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A. Identify aspects of the present culture that pose problems. B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes. C. Empower employees to adopt whatever new work practices they believe will be an improvement. D. Make a concerted effort to turn the company's core competencies into distinctive competencies. E. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change

B. Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.

What defines an insular, inwardly focused culture? A. The firm never underestimates rivals because of their proven track record in defending challenges. B. The firm believes they have all the answers because of their past great market success and is thus overconfident. C. The firm's unflinching belief in the company's superiority breeds a champion's attitude and thus they thrive on doing better by adapting to fresh thinking from outside the company. D. The firm values their customers' opinions and fully understands their needs and expectations. E. The firm has a commitment to hiring young people who can offer fresh thinking and new perspectives

B. The firm believes they have all the answers because of their past great market success and is thus overconfident.

A work environment where the culture is in sync with the chosen strategy and is conducive to good strategy execution is considered a valuable managerial ally because: A. there is much less risk of embarrassing ethical violations. B. it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressure from co-workers to conform to culturally acceptable norms. C. there is reduced need to incorporate negative motivational practices and punitive-type incentives into the reward structure and in the company's approach to people management. D. there is reduced need to employ benchmarking, best practice programs, reengineering, Six Sigma, and TQM to achieve competitive advantage. E. the culture can be readily incorporated into the company's strategic vision and facilitate the achievement of stretch objectives.

B. it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressure from co-workers to conform to culturally acceptable norms.

Frequently, a significant part of a company's culture is captured in: A. the company's strategic vision and strategic intent. B. the stories that get told over and over again to illustrate the importance of certain values and the depth of commitment that various company personnel have displayed. C. how much stretch is built into the company's financial and strategic performance targets. D. the vigor and enthusiasm with which it engages in benchmarking and seeks out best practices. E. the company's track record in taking market share away from rivals

B. the stories that get told over and over again to illustrate the importance of certain values and the depth of commitment that various company personnel have displayed.

Which of the following contribute to the emergence and sustainability of a strong culture? A. Senior executives that walk the talk of high ethical standards B. A strong emphasis on developing innovative core competencies and competitive capabilities C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision making and strict enforcement of company policies E. A long-standing commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and procedures

C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms

Which of the following is a benefit of closely aligning the corporate culture with the requirements for proficient strategy execution? A. A good strategy-culture alignment makes it possible to establish a much bolder strategic vision and strategic intent. B. A good strategy-culture alignment enhances a company's cost competitiveness. C. A tight strategy-culture fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution. D. A tight strategy-culture alignment enhances the creation of core competencies and distinctive competencies. E. A tight strategy-culture alignment makes it easier to change a company's culture over time—as a company's strategy evolves, the culture automatically evolves too

C. A tight strategy-culture fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution.

Which one of the following is NOT an appropriate step management can take to change a problem culture? A. Identifying which aspects of the present culture are supportive of good strategy execution and which ones are not B. Specifying what new actions, behaviors, and work practices should be prominent in the "new" culture C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture D. Talking openly about the problems of the present culture and how new behaviors will improve performance E. Employing visible, forceful actions—both substantive and symbolic—to ingrain a new set of behaviors, practices and cultural norms

C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture

Which of the following is NOT a typical characteristic of a weak company culture? A. A lack of values and principles that are consistently preached or widely shared B. A tendency among employees to view their jobs as just a way of making a living C. Co-worker peer pressure to do things in a particular way D. Few widely revered traditions and few culture-induced norms E. No strong employee allegiance to what the company stands for or to operating the business in well-defined ways

C. Co-worker peer pressure to do things in a particular way

Which of the following topics would least likely be contained in a company's statement of its core values? A. A commitment to having fun and creating a fun work environment B. A commitment to operating excellence and superior results C. Mandating full compliance with all laws and regulations D. Exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, respect for co-workers, and ethical behavior E. Exhibiting teamwork and cooperative attitudes

C. Mandating full compliance with all laws and regulations

The task of top executives in making corrective adjustments includes: A. knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture. B. being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments. C. thoroughly analyzing the situation and exercising good business judgment in deciding what actions to take. D. deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly. E. deciding how to identify the problems that need fixing

C. thoroughly analyzing the situation and exercising good business judgment in deciding what actions to take.

The leadership challenges that top executives face in making corrective adjustments when things are not going well include: A. knowing when to replace poorly performing workers and when to do a better job of coaching them to do the right things. B. being able to discern whether to emphasize adjustments that will promote better achievement of strategic performance targets or whether to emphasize adjustments that will promote better achievement of financial performance targets. C. undertaking a thorough analysis of the situation, exercising good business judgment in deciding what actions to take, and then ensuring good implementation of the corrective actions that are initiated. D. having the analytical skills to separate the problems due to a bad strategy from the problems due to bad strategy execution. E. deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives or that curtail the achievement of some of both

C. undertaking a thorough analysis of the situation, exercising good business judgment in deciding what actions to take, and then ensuring good implementation of the corrective actions that are initiated

Which of the following is NOT a factor in contributing to the emergence and sustainability of a strong culture? A. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success B. A founder or strong leader who establishes values, principles, and practices that are consistent and sensible in light of customer needs, competitive conditions, and strategic requirements C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader E. A genuine concern for the well-being of the organization's three biggest constituencies—customers, employees, and shareholders

D. Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader

Which of the following statements about a strong-culture company is NOT true? A. In a strong-culture company, culturally approved behaviors and ways of doing things are nurtured while culturally disapproved behaviors and work practices get squashed. B. In a strong-culture company, senior managers make a point of reiterating key principles and core values to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behavior and they insist that company values and business principles be reflected in the decisions and actions taken by all company personnel. C. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture. D. Centralized decision making, strict enforcement of company policies, diligent pursuit of a distinctive competence, and a bold strategic intent are the hallmarks of a strong-culture company

D. Centralized decision making, strict enforcement of company policies, diligent pursuit of a distinctive competence, and a bold strategic intent are the hallmarks of a strong-culture company

When are multiple subcultures MOST problematic? A. When they are compatible with the overarching corporate culture and are supportive of strategy-execution B. When they don't clash and coordinating efforts to craft and execute strategy within each subculture is relatively easy C. When they foster teamwork and support a collaborative approach to strategy execution D. When they embrace conflicting business philosophies that are inconsistent with superior strategy execution E. When they guide management in coming up with consistent approaches to executing company strategies

D. When they embrace conflicting business philosophies that are inconsistent with superior strategy execution

A corporate culture founded on ethical business principles and socially approved values: A. virtually guarantees that a company will be (or soon become) the acknowledged industry leader because of the ethical and socially approved manner in which its business is being conducted. B. doesn't necessarily impact a company's long-term strategic success favorably or unfavorably. C. does more to detract from a company's chances for strategic success and market leadership than to help it. D. is a positive force underlying a company's long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation. E. is seldom more than window-dressing and is generally regarded by customers, suppliers, employees, shareholders, and society at large as nothing more than good public relations.

D. is a positive force underlying a company's long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation.

At companies where executives believe in the merits of practicing the values and ethical principles that have been espoused, the: A. executives have usually personally written the statement of core values and the code of ethics. B. company's pursuit of higher profits is tempered, so that the company will not come across to customers and the general public as greedy. C. company's chances for strategic success and market leadership are substantially reduced because company personnel are hesitant to engage in business practices that are unethical. D. stated core values and ethical principles are the foundation of the corporate culture. E. core values and ethical standards are made a prominent and visible part of the company's strategic intent and strategy.

D. stated core values and ethical principles are the foundation of the corporate culture.

In adaptive corporate cultures: A. the prevailing view is that the best way to look out for the interests of employees is to change core values and cultural norms in whatever ways are needed to fit the changing requirements of an evolving strategy. B. company personnel are amenable to changing policies and operating practices as long as the core elements of the company's strategic vision and strategy remain intact. C. members are willing to embrace a proactive approach to trying new ideas, altering operating practices, and changing pieces of the strategy provided it doesn't imperil their job security, entail cuts in compensation, or require different work practices. D. there's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders. E. there is little need for policies and procedures because group members willingly accept experimentation and innovation

D. there's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders.

Which of the following is NOT a technique that companies employ to embed core values and ethical standards? A. Incorporating the statement of values and the code of ethics into orientation programs for new employees and training courses for managers and employees B. Making the display of core values and ethical principles a factor in evaluating each person's job performance C. Encouraging everyone to use their influence in helping enforce observance of core values and ethical standards D. Using ceremonial occasions to recognize individuals and groups who display the values and ethical principles E. Instituting standard practices and procedures for employees to follow as a foundation for maintaining ethical and cultural norm conflict clashes and behavioral lapses

E. Instituting standard practices and procedures for employees to follow as a foundation for maintaining ethical and cultural norm conflict clashes and behavioral lapses

A company's culture is NOT manifested in which of the following? A. Its approaches to people management and problem-solving and in the "chemistry" and "personality" that permeates the work environment B. Its revered traditions and the stories that get told over and over to illustrate the importance of certain values C. Its acceptance of the peer pressures that exist to do things in particular ways and conform to expected norms D. Its approach to people management and its official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel E. Its strategic vision, strategic intent, and strategy

E. Its strategic vision, strategic intent, and strategy

In moving to alter a problem culture, management should do all of the following EXCEPT: A. identify which aspects of the present culture are supportive of good strategy execution and which ones are not. B. specify what new actions, behaviors, and work practices should be prominent in the "new" culture. C. talk openly about the problems of the present culture and how new behaviors will improve performance. D. employ visible, forceful actions—both substantive and symbolic—to ingrain a new set of behaviors, practices, and cultural norms. E. avoid cross-unit cooperation

E. avoid cross-unit cooperation.

The characteristics of a strong-culture company include all of the following EXCEPT: A. deeply rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace. B. strong managerial commitment to display company values and principles in their own actions and behavior. C. dedicated efforts on the part of management to communicating values and business principles to organization members and explaining how they relate to the company's business environment. D. ingrained shared values and business principles guide management in making decisions E. co-worker peer pressure to challenge cultural norms.

E. co-worker peer pressure to challenge cultural norms.

In leading the push for proficient strategy execution and operating excellence, the roles of top-level managers include all of the following EXCEPT: A. being out in the field and seeing how well operations are going. B. delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward. C. gathering information firsthand and gauging the progress being made. D. learning the obstacles in the path of good execution and clearing the way for progress. E. holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

E. holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

Symbolic culture changing actions include all of the following EXCEPT: A. leading by example. B. reinforcing and celebrating culture-change successes. C. praising individuals and groups that exemplify the new desired behavior. D. ensuring top executives' actions match their rhetoric. E. revising policies and procedures in ways that will help drive cultural change

E. revising policies and procedures in ways that will help drive cultural change

A company's culture is in part defined and identified by: its internal work climate and personality—as shaped by its shared values, work practices, traditions, and ingrained attitudes and behaviors that define "how we do things around here." whether it employs a low-cost provider, best-cost provider, differentiation, or focused strategy. whether decision-making is centralized or decentralized and whether it is a single-business company or a diversified company. how strongly its strategic vision is linked to its core values. whether it is a well-known industry leader, an up-and-coming company that is gaining market share, a middle-of-the- pack company unlikely to move up in the industry ranks, or an industry also-ran that may or may not survive.

its internal work climate and personality—as shaped by its shared values, work practices, traditions, and ingrained attitudes and behaviors that define "how we do things around here."

The character of a company's corporate culture is a product of all of the following EXCEPT: the shared values and core business principles and beliefs that management preaches and practices. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's shared values, business practices, and traditions. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. the work practices and behaviors that define "how we do things around here." its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel.

its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel.

A company's corporate culture is BEST defined and identified by: the integration of the strategy and business model that a company has adopted. the company's shared values, ingrained attitudes,corebeliefs and company traditions that determine norms of behavior, accepted work practices of "how we do things around here," and styles of operating. its ingrained statement of core values and its internal code of ethics. its internal politics that influence the dedication to ethical conduct and accepted work practices. the formal traditions that company executives are committed to maintaining to ensure the company strategy-supportive culture is change resistant.

the company's shared values, ingrained attitudes, corebeliefs and company traditions that determine norms of behavior,

Which of the following is NOT an integral part of transforming core values and ethical standards into cultural norms? A. Instituting procedures for enforcing ethical standards B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values C. Screening out job applicants who do not exhibit compatible character traits D. Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles E. Having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and internal communications to employees

B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values