CHP 12

52. Which of the following is NOT a factor that makes a politicized internal environment so unhealthy? A. the political infighting that consumes a great deal of organizational energy B. the continuous empire-building that is a common practice as managers pursue their own agendas C. the building of autonomous fiefdoms that pervades the work climate D. the overabundance of political maneuvering that takes away from efforts to execute strategy E. the taking of positions on issues

the taking of positions on issues

45. 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.

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.

49. Which of the following does NOT describe an unhealthy company culture? A. insular and inwardly-focused B. change-resistant C. unethical and greed-driven D. politicized E. hyper-adaptive

hyper-adaptive

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

its core competencies and capabilities along the value chain.

27. What actions, behaviors, and work practices that are conducive to good strategy implementation support the strategy execution effort? A. using peer pressure to company personnel to perform, enhancing worker productivity and buy-in, and focusing the attention of employees on what is most important B. energizing the workforce, ensuring that personnel memorize the company values statement and code of ethics, and achieving competitive advantage C. providing for greater strategic flexibility, using peer pressure to company personnel to perform, and energizing the workforce D. enhancing worker productivity and buy-in, focusing the attention of employees on what is most important, and ensuring adherence to the company culture E. focusing the attention of employees on what is most important, insisting that official policies and procedures be followed religiously, and using peer pressure to company personnel to perform

using peer pressure to company personnel to perform, enhancing worker productivity and buy-in, and focusing the attention of employees on what is most important

86. The process of making corrective adjustments in strategy execution A. is a typical cultural mechanism for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel. B. exemplifies a results-oriented work climate where people go the extra mile to meet or beat stretch objectives. C. features a ceremony honoring individuals who believe so strongly in their ideas that they take it on themselves to hurdle the bureaucracy, maneuver their projects through the system, and turn them into improved services, new products, or even new businesses. D. varies according to the situation. E. enables companies to indoctrinate new hires rapidly into widely shared and strongly held values, principles, and behavioral norms.

varies according to the situation.

74. Which of the following is NOT one of the leadership roles that senior managers have to play in pushing for good strategy execution and operating excellence? A. learning the obstacles in the path of good execution and clearing the way for progress B. being out in the field, seeing how well operations are going C. being out front personally, leading the execution process and driving the pace of progress D. weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10 percent) and who are not enthusiastic about the strategy or how it is being executed E. delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward

weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10 percent) and who are not enthusiastic about the strategy or how it is being executed

25. Which of the following statements about a company's culture is NOT true? A. The more new employees a company is hiring the more important it becomes to screen job applicants every bit as much for how well their values, beliefs, and personalities match up with the culture as for their technical skills and experience. B. The longer people stay at an organization, the more that they come to embrace and mirror the corporate culture—their values and beliefs tend to be molded by mentors, fellow workers, company training programs, and the reward structure. C. A company's culture, once established, tends to remain stable and entrenched over time. D. Typically, key elements of the culture originate with a founder or certain strong leaders who articulated them as a set of business principles, company policies, operating approaches, and ways of dealing with employees, customers, vendors, shareholders, and local communities where the company has operations. E. Company cultures can be perpetuated by the telling and retelling of company legends, by regular ceremonies honoring members who display desired cultural behaviors, and by visibly rewarding those who display cultural norms and penalizing those who don't.

A company's culture, once established, tends to remain stable and entrenched over time.

39. Which of the following statements about the match between a company's culture and its strategy is NOT true? A. When a company's present work climate promotes attitudes and behaviors that are well suited to first-rate strategy execution, its culture functions as a valuable ally in the strategy execution process. B. A deeply embedded culture tightly matched to the strategy aids the cause of competent strategy execution by steering company personnel to culturally approved behaviors and work practices and thus makes it far simpler to root out operating practices that are a misfit. C. It is in management's best interest to dedicate considerable effort to embedding a corporate culture that encourages behaviors and work practices conducive to good strategy execution. D. A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage. E. When a company's culture is grounded in many of the needed strategy-executing behaviors, employees feel genuinely better about their jobs and what the company is trying to accomplish; as a consequence, greater numbers of company personnel exert their best efforts to execute the strategy and achieve performance targets.

A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage.

38. 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.

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

54. Which of the following actions would NOT help to rectify a company's unethical and greed-driven culture? A. Require all company personnel to attend culture-training programs to better understand the new culture-related actions and behaviors that are expected. B. 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. C. Dismiss executives that exude an "ends-justify-the-means" mentality in pursuing overambitious operating and financial targets. D. Adopt accounting principles that make the company's financial performance appear better than it really is. E. Hire frontline employees display high-performance behaviors and a passion for making the company successful.

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

8. Which of the following statements about companies and their corporate cultures is incorrect? A. W. L. Gore's culture promotes multidiscipline teams to organize around opportunities and in the process leaders emerge. B. Walmart's culture encourages the zealous pursuit of low costs and frugal operating practices. C. Nordstrom's corporate culture is centered on delivering exceptional service to customers. D. Apple's employee-centric culture fosters openness and sharing of company-developed technology. E. Epic Systems' corporate culture is based on the slogan "Do good. Have fun. Make money."

Apple's employee-centric culture fosters openness and sharing of company-developed technology.

1. Why is a company's corporate culture important? A. Because it represents the integration of the strategy and business model that a company has adopted. B. Because it influences the organization's actions and approaches to conducting business. C. Because it guides core values and its internal code of ethics. D. Because it influences the dedication to ethical conduct and accepted work practices. E. 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 influences the organization's actions and approaches to conducting business.

31. 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. E. In a strong-culture company, values and behavioral norms are like crabgrass: deeply rooted and hard to weed out.

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.

42. Which of the following statements about a high-performance culture is NOT 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, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace. C. The challenge in creating a high-performance culture is to inspire high loyalty and dedication on the part of employees, such that they are both energized and preoccupied with putting forth their very best efforts to do things right and be unusually productive. D. In a high-performance culture, the clear and unyielding expectation is that all company personnel, from senior executives to front-line employees, will display high-performance behaviors and a passion for making the company successful. E. In high-performance cultures, there's a strong sense of involvement on the part of company personnel and emphasis on individual initiative and creativity.

High-performance cultures often have a low regard for high ethical standards, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace.

43. 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.

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

65. 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.

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.

53. 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.

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

46. Which of the following statements about adaptive corporate cultures is NOT true? A. The hallmark of adaptive corporate cultures is willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. B. The standout cultural traits are a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. C. Company personnel share a feeling of confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices. D. Adaptive cultures are exceptionally well-suited to companies with fast-changing strategies and market environments. E. For an adaptive culture to remain intact over time, top management must orchestrate organizational changes in a manner that (1) demonstrates genuine care for the well-being of all key constituencies and (2) tries to satisfy all their legitimate interests simultaneously.

The standout cultural traits are a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

66. Which of the following is NOT a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A. Promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior B. Appointing outsiders with the desired cultural attributes to high-profile positions C. Screening all candidates for new positions carefully, and hiring only those who appear to fit in with the new culture D. Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing, and paying sizable bonuses to those employees who identify practices that the company ends up adopting E. Designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hitting change-resisters in the pocketbook

Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing, and paying sizable bonuses to those employees who identify practices that the company ends up adopting

36. Which of the following statements about a weak company culture is true? A. In a weak-culture company, there is virtually no employee support for the company's strategic vision and strategy. B. Weak-culture companies do not usually have a code of ethics and have little regard for high ethical standards. C. Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy. D. Weak-culture companies are fairly receptive to change and to people who champion new ways of doing things. E. In a weak-culture company, there is usually a dearth of intellectual capital and inattention to building core competencies.

Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy.

56. When should a culture be changed as rapidly as it can be managed? A. Never, because the actions and behaviors needed to execute the new strategy successfully are well entrenched, and thus are not changeable B. Only rarely, because it is natural for company personnel to cling to existing practices and to be wary of new approaches C. When a company decides on any innovations to its products or services D. When a strong culture is unhealthy or otherwise out of sync with the actions and behaviors needed to execute the strategy successfully E. When the case for cultural reform is not credible, symbolic, nor substantive

When a strong culture is unhealthy or otherwise out of sync with the actions and behaviors needed to execute the strategy successfully

41. The hallmarks of a high-performance corporate culture include A. a deep commitment to employee training, unusually attractive fringe benefit packages for company personnel, and frequently revised and updated values and ethics statements. B. a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. C. a strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees aligned with a balanced scorecard approach to measuring performance. D. a deep commitment to pioneering new best practices, a preference for being a fast-follower as opposed to a first-mover or late-mover, and across-the-board bonuses for all personnel when the company meets or beats stretch objectives. E. a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.

a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

83. The hallmarks of a weak-culture company DO NOT include A. a lack of widely shared and strongly held values, principles, and behavioral norms. B. a lack of cultural mechanisms for aligning, constraining, and regulating the actions, decisions, and behaviors of company personnel. C. a work climate where there is no strong employee allegiance to what the company stands for or to operating the business in well-defined ways. D. an environment where many employees' view their company as just a place to work and their job as just a way to make a living. E. a "can-do" spirit, where people take pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

a "can-do" spirit, where people take pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

44. What is the hallmark of an adaptive corporate culture? A. a shared willingness to adapt core values to fit the changing requirements of an evolving strategy B. a conservative strategy, prudent risk-taking, and strong peer pressures to observe cultural norms C. a clear willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies D. a commitment to the types of core values and ethical standards that make a company a great place to work E. a strong preference for performance-based compensation systems—especially the payment of bonuses and stock options

a clear willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies

48. Unhealthy company cultures typically have such characteristics as A. tight budget controls, overly strict enforcement of long-standing policies and procedures, and high ethical standards. B. a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability. C. a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas. D. overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures. E. an emphasis on innovation, a strong preference for hiring managers from outside the company, and few core values and traditions.

a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas.

29. 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

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

50. All of the following are distinctive characteristics of an unhealthy corporate culture EXCEPT A. the presence of counterproductive cultural traits that adversely impact the work climate and company performance. B. a preoccupation with risk management and capitalizing on related market opportunities. C. a decision-making effort that is subject to pressure from many different cliques. D. ethical behavior that is driven by subcultures. E. 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.

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

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

67. Changing a problem culture to create better alignment with strategy generally does NOT involve A. replacing old-culture managers with new-breed managers. B. designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook. C. altering the company's financial objectives. D. using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors. E. both symbolic and substantive actions by executives to implant new cultural behaviors.

altering the company's financial objectives.

87. Success in making corrective actions does NOT depend on A. recognizing that unsatisfactory performance may be due as much or more to flawed strategy as to weak strategy execution. B. good implementation of the corrective actions that are initiated. C. the exercise of good business judgment in deciding what actions to take. D. a thorough analysis of the situation. E. an action plan for executing strategy that enables managers to foresee all the problems that will arise.

an action plan for executing strategy that enables managers to foresee all the problems that will arise.

47. Which of the following is NOT a common trait of an unhealthy company culture? A. a politicized internal environment and empire-building managers who jealously guard their turf B. hostility to change and a wariness of people who champion new ways of doing things C. an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas D. an aversion to incentive compensation and overemphasis on working in teams E. overzealous pursuit of wealth and status on the part of key executives

an aversion to incentive compensation and overemphasis on working in teams

40. When a company's culture is out of sync with what is needed for strategic success and good strategy execution A. the strategy has to be changed as rapidly as possible to regain harmony with cultural norms. B. company personnel need to cling to familiar practices, be wary of change, and blame top management for any shortfalls in performance. C. management needs to go on the offensive to reinterpret the culture and explain to company personnel why there really is good overall cultural fit with the strategy. D. any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first-rate strategy execution. E. management must sanction any company personnel who refuse to participate in an all-out effort to create a different portfolio of competencies and capabilities that will permit the strategy to be changed in ways that will fit the culture.

any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first-rate strategy execution.

63. 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

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

10. Many executives want the work climate at their companies to mirror certain values and ethical standards because they A. desire validation of the company's formal values statement and code of ethics. B. want to impress outsiders and create a positive company image. C. want to increase the likelihood that the public will ignore any future lapses in approved behavior. D. are committed to improving the company's strategy execution, performance, and reputation. E. are certain that their company's strategic intent and strategy execution efforts will come to naught without those values and standards.

are committed to improving the company's strategy execution, performance, and reputation.

33. 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.

as levers to mobilize commitment to executing the chosen strategy.

62. 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.

avoid cross-unit cooperation.

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

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

68. Which of the following is NOT likely to be an effective management action (making a compelling case to employees) about culture-remodeling efforts that can create a better strategy-culture fit? A. citing reasons why and how certain behavioral norms and work practices in the current culture pose obstacles to good execution of new strategic initiatives B. explaining how new behaviors and work practices that are to be introduced and have important roles in the new culture will be more advantageous and produce better results C. calling upon first-level supervisors and rank-and-file employees to identify cultural barriers to good strategy execution and then to lead the cultural change effort D. granting pay raises to individuals who step out front, lead the adoption of the desired work practices, display the new-style behaviors, and achieve pace-setting results E. revising policies and procedures in ways that will help drive cultural change

calling upon first-level supervisors and rank-and-file employees to identify cultural barriers to good strategy execution and then to lead the cultural change effort

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

capture a significant part of a company's culture.

30. 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

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

28. 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.

co-worker peer pressure to challenge cultural norms.

35. 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

co-worker peer pressure to do things in a particular way

15. 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

committing to a no-layoff policy and to adequate funding of employee retirement programs

58. The single most visible factor that distinguishes successful culture-change efforts from failed attempts is A. forceful management actions to empower employees to adopt new operating practices. B. competent leadership at the top. C. de-layering the management hierarchy. D. developing a new value statement that inspires company personnel to put forth their best efforts to achieve performance targets. E. convincing employees that top management is genuinely committed to high ethical standards and the exercise of corporate social responsibility.

competent leadership at the top.

84. Successfully leading the effort to instill a spirit of high achievement into a company's culture and put constructive pressure on the organization to achieve good results A. entails such actions as treating employees with dignity and respect, celebrating individual, group, and company successes, and setting stretch objectives. B. hinges on the extent to which top management emphasizes a positive rather than a negative reward system. C. requires that top executives make operating excellence the company's only core value. D. calls for top executives to stress the adoption of best practices, push for continuous product innovation, and provide employees with a stream of suggestions for improving company operations. E. hinges on the degree to which lower-level managers and supervisors are good practitioners of MBWA.

entails such actions as treating employees with dignity and respect, celebrating individual, group, and company successes, and setting stretch objectives.

75. When management is leading the drive for good strategy execution and operating excellence, it calls for all of the following actions on their part EXCEPT A. staying on top of what is happening. B. monitoring progress closely. C. putting constructive pressure on the organization to execute the strategy with excellence. D. establishing a must-be-invented-here mindset. E. empowering rank-and-file employees to act on their own initiative.

establishing a must-be-invented-here mindset.

12. The two culture-building roles of a company's stated values and ethical standards are to A. communicate the company's good intentions and establish a corporate conscience. B. confirm the integrity of company personnel and signal the above-board nature of the company's business principles and operating methods. C. steer company personnel toward doing the right thing and convince outsiders that the company is socially responsible. D. foster a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and to provide them with guidance about how to do their jobs, steering them toward both doing things right and doing the right things. E. provide a basis for designing culture-supportive incentive compensation plans and reinforcing the appropriateness of particular ethical and moral actions.

foster a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and to provide them with guidance about how to do their jobs, steering them toward both doing things right and doing the right things.

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

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

9. 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.

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

73. In leading the push for proficient strategy execution and operating excellence, top-level managers need to take the lead on all of the following EXCEPT A. spending time with, listening to, and encouraging people in the organization to act on their own initiative. 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. initiating corrective actions to improve or remove impediments to strategy execution. E. holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

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

59. 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.

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

61. When trying to change a problem culture, management should undertake such steps as A. selecting a team of key employees to lead the culture change effort and design a plan for cultural change. B. identifying facets of the present culture that are supportive of good strategy execution and which ones are not and then specifying what new actions, behaviors, and work practices are needed in the new culture to improve performance. C. drawing up an action plan to change the present culture and then persuading company personnel why this plan of action is good and will be successful. D. conducting an employee survey to determine the organization's cultural norms and what company personnel like and dislike about the current culture. E. employing a consultant with expertise in culture change and following his or her advice on how to proceed.

identifying facets of the present culture that are supportive of good strategy execution and which ones are not and then specifying what new actions, behaviors, and work practices are needed in the new culture to improve performance.

21. 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

identifying how best to adapt to changing market conditions

19. 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

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

17. 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

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

11. 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.

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.

57. Changing a problem culture A. is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things. B. is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted. C. is best done by selecting a team of key employees to lead the culture change effort. D. requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture. E. can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.

37. 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.

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.

4. A company's culture is in part defined and identified by A. 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." B. whether it employs a low-cost provider, best-cost provider, differentiation, or focused strategy. C. whether decision making is centralized or decentralized and whether it is a single-business company or a diversified company. D. how strongly its strategic vision is linked to its core values. E. 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."

2. The character of a company's corporate culture is a product of all of the following EXCEPT A. the shared values and core business principles and beliefs that management preaches and practices. B. 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. C. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. D. the work practices and behaviors that define "how we do things around here". E. 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.

69. The most important symbolic actions are those that top executives take to A. lead by example. B. lead by influence. C. follow by example. D. follow the majority. E. lead to the contrary.

lead by example.

24. Which of the following is NOT particularly helpful in perpetuating a company's culture? A. word-of-mouth indoctrination of new members in the culture's fundamentals B. frequent reiteration of core values by senior managers and group members C. visibly rewarding those who display cultural norms and penalizing those who don't D. maintaining a consistent strategic vision and strategic intent over time E. telling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors

maintaining a consistent strategic vision and strategic intent over time

18. Once values and ethical standards have been formally adopted, a company must A. require every employee to memorize the company's formal statement of core values and code of ethics. B. make it unequivocally clear that the company's core values and ethical standards are strictly enforced cultural norms. C. rely only on word-of-mouth indoctrination and company tradition to instill values and ethical conduct. D. grant compensation increases and promotions only to those managers who are willing to act as evangelists for the company's core values and ethical standards. E. hold periodic ceremonies to vilify employees that do not live up to the company's core values or who are found guilty of violating the company's code of ethics.

make it unequivocally clear that the company's core values and ethical standards are strictly enforced cultural norms.

76. What technique can be utilized by leaders to stay informed on how well the strategy execution process is progressing? A. managing by walking around B. managing bothersome work activities C. multi-business warning actions D. managers being well-advised E. multi-business walking ahead

managing by walking around

14. 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

mandating full compliance with all laws and regulations

71. Changing a problem culture A. means eliminating unhealthy or dysfunctional traits as fast as possible. 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 in a brand-new organization. E. takes less time than changing a healthy culture.

means eliminating unhealthy or dysfunctional traits as fast as possible.

16. A company's stated core values and ethical principles are A. important because of their role in ensuring that company executives will not engage in unethical behavior or behave in a manner that is contrary to the company's core values. B. typically tightly linked to its strategic vision and strategy. C. the best indicators of a company's social responsibility strategy. D. meant to foster a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and provide guidance in displaying the core values in their actions and behaviors. E. strictly enforced in strong culture companies and weakly enforced in weak culture companies.

meant to foster a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and provide guidance in displaying the core values in their actions and behaviors.

60. Companies with multinational operations and/or newly acquired businesses typically have A. strong cultures. B. multiple cultures (or subcultures) rather than a single culture. C. weak cultures. D. adaptive cultures. E. low-performance cultures.

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

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

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

72. 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.

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

77. Which of the following managerial practices is NOT used to lead the effort to foster a results-oriented, high-performance culture? A. using empowerment to help create a fully engaged workforce B. making champions out of the people who spearhead new ideas and/or turn in winning performances C. celebrating individual, group, and company successes D. treating employees as valued partners in the drive for operating excellence and good business performance E. placing a premium on not making mistakes, prompting managers to lean toward safe, conservative options intended to maintain the status quo

placing a premium on not making mistakes, prompting managers to lean toward safe, conservative options intended to maintain the status quo

34. A weak company culture A. celebrates change and consensual decision making. B. produces champions of innovation and creativity. C. creates harmonious subcultures along its value chain. D. promotes greed-driven and unethical behaviors. E. rewards consensus thinking.

promotes greed-driven and unethical behaviors.

51. 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.

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

20. The retelling of legendary stories does a lot for establishing a company's core values, but it should NOT A. place pressure on company personnel to display core values and to do their part in keeping the companies traditions alive. B. illustrate the kind of behavior the company reveres. C. inspire company personnel to perform similarly and reinforce the depth of commitment that people have displayed. D. reflect an aspect of company culture no longer current. E. steer company personnel toward both doing things right and doing the right thing.

reflect an aspect of company culture no longer current.

23. 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.

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.

70. 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.

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

13. Codes of ethics and statements of core values A. are the single most effective measure of enforcing ethical behavior and cultural norms, provided they are written down and every employee is given a copy. B. serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors. C. serve as the best benchmarks for judging whether the corporate culture is deeply ingrained, planted and accepted or not. D. need to be personally written and presented by the CEO to reinforce the company values and convictions so that employees will take it seriously. E. serve to give top-priority emphasis to every employee in training programs a company conducts.

serve as yardsticks for gauging the appropriateness of particular actions, decisions, and behaviors.

64. The menu of actions management can take to change problem culture does NOT include which of the following? A. making a compelling case for why the company's new strategic direction and culture-remodeling efforts are in the organization's best interests and why company personnel should wholeheartedly join the effort to doing things somewhat differently B. replacing senior executives who are strongly identified with the old culture and who may be stonewalling needed organizational and cultural changes C. promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior D. revising policies and procedures in ways that will help drive cultural change E. shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving the cultural change

shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving the cultural change

7. 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

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

6. Which of the following is NOT something to look for in identifying a company's culture? A. the company's defined spirit and character that pervades the work climate B. the company's resource strengths, core competencies, and competitive capabilities C. the company's revered traditions and oft-repeated stories about "heroic acts" and "how we do things around here" D. the company's approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel E. the company's shared values, business principles, and ethical standards that management preaches and practices

the company's resource strengths, core competencies, and competitive capabilities

3. Which of the following is NOT a fundamental part of a company's culture? A. the work practices and behaviors that define "how we do things around here" B. the company's standard of what is ethically acceptable and what is not, along with the "chemistry" and "personality" that permeates its work environment C. the core values and business principles that management preaches and practices D. the company's strategic vision, strategic intent, and culture strategy E. 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

81. 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.

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

80. All of the following are examples of leadership actions or managerial practices taken to foster a results-oriented, high-performance culture EXCEPT A. treating employees as individuals with no regard for their rank or contributions. B. building morale and fostering pride. C. setting stretch objectives and clearly communicating expectations for reaching targets. D. using motivational techniques and compensation incentives to inspire employees. E. using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma to focus attention on continuous improvement.

treating employees as individuals with no regard for their rank or contributions.

78. 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.

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.

79. Which of the following would NOT be typical of leadership actions or managerial practices that perpetuate an unhealthy or problem culture? A. using empowerment to help create a motivated workforce B. treating employees as indentured servants C. procrastinating in setting objectives and only occasionally communicating expectations for reaching targets D. ignoring individual, group, and company successes E. following a "must-be-invented-here" mindset

using empowerment to help create a motivated workforce

55. 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

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