Integrated Business Policy Chapter 12

The purpose of managing by walking around or MBWA is to Multiple Choice give employees a chance to make suggestions for improvement. learn more about company operations and see how activities are really being done. gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding. be visible and accessible to employees. gather information about what strategy to follow and to learn what competitors are doing.

gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding.

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? Multiple Choice validating the integrity and above-board nature of the company's business principles and operating methods establishing a corporate conscience steering company personnel toward both doing things right and doing the right thing communicating the company's good intentions identifying how best to adapt to changing market conditions

identifying how best to adapt to changing market conditions

The most important symbolic actions are those that top executives take to Multiple Choice lead by example. lead by influence. lead to the contrary. follow by example. follow the majority.

lead by example.

What technique can be utilized by leaders to stay informed on how well the strategy execution process is progressing? Multiple Choice multi-business warning actions multi-business walking ahead managers being well-advised managing bothersome work activities managing by walking around

managing by walking around

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

mandating full compliance with all laws and regulations

Which of the following is NOT an integral part of transforming core values and ethical standards into cultural norms? Multiple Choice instituting procedures for enforcing ethical standards screening out job applicants who do not exhibit compatible character traits periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles immediately dismissing any employee caught violating the company's code of ethics or disregarding core values having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and internal communications to employees

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

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

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

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 Multiple Choice as disciplinary measures in making the employees perform better and achieve targets. to ensure the staff will embrace the new strategy like they have in the past. as reinforcement for convincing staff that the strategy is sound and molded in tradition. to manipulate jobholders into thinking traditions are important. as levers to mobilize commitment to executing the chosen strategy.

as levers to mobilize commitment to executing the chosen strategy.

A strongly implanted corporate culture has a powerful influence on behavior because of all of the following EXCEPT Multiple Choice most corporate personnel have acknowledged and accepted the cultural traditions. management expectations and co-worker peer pressure cause employees to conform. a strong leader can use coercion and the threat of punishment to enforce norms. over time achieving low-workforce-turnover is a catalyst for conformity and acceptance. over time people who do not like the culture tend to leave.

a strong leader can use coercion and the threat of punishment to enforce norms.

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

when they embrace conflicting business philosophies that are inconsistent with superior strategy execution

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

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

Why is a company's corporate culture important? Multiple Choice Because it represents the integration of the strategy and business model that a company has adopted. Because it influences the organization's actions and approaches to conducting business. Because it codifies formal traditions that company executives are committed to maintaining to ensure the company's strategy-supportive culture is change resistant. Because it guides core values and its internal code of ethics. Because it influences the dedication to ethical conduct and accepted work practices.

Because it influences the organization's actions and approaches to conducting business.

All of the following are distinctive characteristics of an unhealthy corporate culture EXCEPT Multiple Choice a preoccupation with risk management and capitalizing on related market opportunities. a decision-making effort that is subject to pressure from many different cliques. ethical behavior that is driven by subcultures. the presence of counterproductive cultural traits that adversely impact the work climate and company performance. a strong fixation on attending to what customers are saying and how their needs and expectations are to be met.

a strong fixation on attending to what customers are saying and how their needs and expectations are to be met.

Even if a company has a strong culture, the culture and work climate may or may not Multiple Choice share certain deeply rooted values and norms of behavior. be compatible with what is needed for effective implementation of the chosen strategy. reward initiative, risk-taking, and creativity to spur innovation in a technology-based company. reflect a deep commitment to benchmarking, best practices, and operating excellence. reward identification of cost savings opportunities in support of a low-cost strategy.

be compatible with what is needed for effective implementation of the chosen strategy.

Company folktales and stories frequently Multiple Choice mirror formal documentation about what are a company's best practices and performance benchmarks. articulate a company's strategic vision and strategic intent. are indicative of a company's openness in sharing its financial performance and strategic plan with all staff members. document troublesome customers who return products or who encounter problems with deliveries. capture a significant part of a company's culture.

capture a significant part of a company's culture.

A company's culture is NOT indicative of Multiple Choice its core competencies and capabilities along the value chain. accepted work practices that are held in high esteem. its company psyche and organizational DNA. its self-replicating operating system that defines how things are done. company traditions and stories that exemplify behavioral norms.

its core competencies and capabilities along the value chain.

Which of the following actions would NOT help to rectify a company's unethical and greed-driven culture? Multiple Choice Promote individuals who have stepped forward to spearhead the shift to a different culture and who can serve as role models for the desired cultural behavior. Adopt accounting principles that make the company's financial performance appear better than it really is. Hire frontline employees display high-performance behaviors and a passion for making the company successful. Dismiss executives that exude an "ends-justify-the-means" mentality in pursuing overambitious operating and financial targets. Require all company personnel to attend culture-training programs to better understand the new culture-related actions and behaviors that are expected.

Adopt accounting principles that make the company's financial performance appear better than it really is.

Which of the following statements about a high-performance culture is true? Multiple Choice In high-performance cultures, there's strong managerial commitment to paying big bonuses and granting generous stock options. 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). In a high-performance culture, the clear and unyielding expectation is that all company personnel will strictly follow company policies and procedures. 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. Results-oriented, high-performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets.

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

Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture? Multiple Choice Make a concerted effort to turn the company's core competencies into distinctive competencies. 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. Empower employees to adopt whatever new work practices they believe will be an improvement. Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change. Identify aspects of the present culture that pose problems.

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.

The character of a company's corporate culture is a product of all of the following EXCEPT Multiple Choice its lack of mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. 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 shared values and core business principles and beliefs that management preaches and practices. 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.

A company's culture is in part defined and identified by Multiple Choice 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. whether decision making is centralized or decentralized and whether it is a single-business company or a diversified company. whether it employs a low-cost provider, best-cost provider, differentiation, or focused strategy. 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."

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."

Changing a problem culture Multiple Choice takes less time than changing a healthy culture. is always a short-term exercise. is usually easier than it is to instill a strategy-supportive culture from scratch in a brand-new organization. means eliminating unhealthy or dysfunctional traits as fast as possible. requires a determined effort by a limited number of employees.

means eliminating unhealthy or dysfunctional traits as fast as possible.

Companies with multinational operations and/or newly acquired businesses typically have Multiple Choice adaptive cultures. weak cultures. strong cultures. low-performance cultures. multiple cultures (or subcultures) rather than a single culture.

multiple cultures (or subcultures) rather than a single culture.

The character of a company's culture is a NOT a product of Multiple Choice core values and beliefs espoused by executives. the "chemistry" and the "personality" that permeate the work environment. its traditions and the stories that get told over and over. organizational learning from past errant behavior on the part of executives and employees. standards of what is ethically acceptable and what is not.

organizational learning from past errant behavior on the part of executives and employees.

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

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