Exam 1: CH 2

gen y-ers

"millennials" born between the years 1978-1994; called the iGeneration because they've grown up with technology that customizes everything to the individual

three aspects of organizational culture

1) Perception: not something that can be physically touched or seen, but employees perceive it on the basis of what they experience within the organization 2) Descriptive: concerned with how members perceive the culture and describe it, not whether they like it 3) Shared: even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization's culture in similar terms

stakeholders

Any constituencies in the organization's environment that are affected by an organization's decisions and actions

Mary also found out that in order to build a strong new culture, she should do all but which of the following? A) hire employees who fit in with the company's culture B) develop socialization practices to build culture C) encourage a high turnover rate among employees D) have management make organizational values clear

C) encourage a high turnover rate among employees

The economic environment affects the performance of an organization, as was noted during the recent recession. Which of the following factors is cited as one of the causes of the recent recession triggered in the home mortgage markets in the United States? A) high interest rates on mortgages B) massive global liquidity C) lack of leverageability for business borrowers D) difficulty in securing housing credit

C) lack of leverageability for business borrowers

In which of the following environments do managers in an organization have the greatest influence on organizational outcomes? A) stable and complex environments B) dynamic and simple environments C) stable and simple environments D) dynamic and complex environments

C) stable and simple environments

Which of the following is a characteristic found in spiritual organizations? A) focus on team development, rather than individual development B) profit-oriented outlook towards all organizational activities C) tolerance towards mistakes and openness with customers and employees D) emphasis on controlling emotions and feelings

C) tolerance towards mistakes and openness with customers and employees

(T/F) A valid criticism of workplace spirituality is that secular institutions, especially businesses, have no right to impose spiritual values on employees, if spirituality means bringing religion into the workplace.

TRUE

(T/F) Conditions of economic inequality illustrate how societal attitudes can constrain managers' decisions and actions.

TRUE

(T/F) Strong cultures have more influence on employees than do weak cultures.

TRUE

(T/F) The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.

TRUE

strong cultures vs. weak cultures

company values are more deeply held and widely shared in strong cultures than in weak cultures

workplace spirituality

culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community

Workplace spirituality has become important in the contemporary workplace because it ________.

gives employees a sense of purpose

The current dominant assumption in management theory suggests that ________.

managers are directly responsible for an organization's success or failure

omnipotent view of management

View that managers are directly responsible for an organization's success or failure

symbolic view of management

View that much of an organization's success or failure is due to external forces outside managers' control; managers have a limited effect on substantive organization outcomes; based upon belief that managers symbolize control and influence in developing plans and making decisions

In an organization whose culture conveys a basic distrust of employees, managers are more likely to use a(n) ________ leadership style.

authoritarian

An organization's culture supports the belief that profits can be increased by cost cutting and that the company's best interests are served by achieving slow but steady increases in quarterly earnings. What is the nature of the programs that the organization's managers are likely to follow?

short-term

how employees learn culture (4)

stories: Typically contain a narrative of significant events or people including such things as the organization's founders, reactions to past mistakes, etc. rituals: Corporate repetitive sequences of activities that express and reinforce the values of the organization, what goals are most important, and which people are important. material symbols: Convey to employees who is important, the degree of equality desired by top management, and the kinds of behavior that are expected and appropriate. language: Used as a way to identify and unite members of a culture.

Internal constraints that influence managers' decisions and actions come from ________.

the culture of the organization

The grassroots slogan of the Occupy movement, "We are the 99%", refers to ________.

the sensitivities surrounding severe income disparities, particularly in the United States

The original source of an organization's culture usually reflects ________.

the vision or mission of the organization's founder

The ________ view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization's objectives.

omnipotent

Google has often been cited as a model for employee satisfaction. Google takes extensive care to ensure employees have the best available conditions to perform, ranging from free snack bars, free massages, innovation rooms, spas-on-site, and many more such measures. Which dimension of organizational culture is Google said to emphasize through such measures?

people orientation

Which dimension of the organizational culture is workplace spirituality most closely related to?

people-orientation

Which of the following is an example of a corporate ritual? A) Employees swapping stories about the company's history and past heroes who have made significant contributions to the company. B) Company executives using company-specific jargon or slogans intended to inspire other employees to perform better. C) Companies hosting annual parties to commemorate employee contributions and reward outstanding performance. D) The assortment of material artifacts that characterize an organization, including the layout of its facilities, how its employees dress, and the types of automobiles provided to top executives.

C) Companies hosting annual parties to commemorate employee contributions and reward outstanding performance.

35) Grayson's has been in the publishing business for fifty years. In the past two years, the company has noticed that book sales have been tapering off, as more and more readers prefer formats they can read on e-readers or smartphones. Grayson's needs to analyze the changes in the environment so that it can change its business strategies and meet the needs of the new market. It commissions a market research firm to collect information about the recent changes in reading habits. Which of the following questions is the most irrelevant for this purpose? A) How many books does an individual customer buy in a month? B) What types of books do customers buy in traditional form? C) Which format is more reader-friendly, e-books or traditional books? D) How much do readers spend on e-books in a month?

C) Which format is more reader-friendly, e-books or traditional books?

Goran Ekvall's characteristics of an innovative culture

Challenge and involvement—Are employees involved in, motivated by, and committed to long-term goals and success of the organization? Freedom—Can employees independently define their work, exercise discretion, and take initiative in their day-to-day activities? Trust and openness—Are employees supportive and respectful to each other? Idea time—Do individuals have time to elaborate on new ideas before taking action? Playfulness/humor—Is the workplace spontaneous and fun? Conflict resolution—Do individuals make decisions and resolve issues based on the good of the organization versus personal interest? Debates—Are employees allowed to express opinions and put forth ideas for consideration and review? Risk-taking—Do managers tolerate uncertainty and ambiguity, and are employees rewarded for taking risks

Elmo Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude? A) The CEO holds the omnipotent view of management, which believes that external factors have a significant effect on performance outcomes. B) As the organization has an autocratic management style, the employees are responsible for organizational policies. C) The organization has a participative management style and decisions are guided by consensus. D) The CEO holds the view that managers have only limited role in organization success or failure.

D) The CEO holds the view that managers have only limited role in organization success or failure.

D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the "first mover" in the market, the company has built a strong market share over the years and is the best-known firm in the area. The company strength increased steadily, and now stands at fifty employees. Which of the following, if true, would make the company's business environment more uncertain? A) Homeowners in the area take pride in their gardens and are avid do-it-yourself gardeners. B) Demand for landscaping services dips every autumn and winter. C) A long-time competitor quit the landscape design business last year. D) Zoning laws in the area change as each new city council comes into power.

D) Zoning laws in the area change as each new city council comes into power.

Which of the following is a disadvantage of having a strong organizational culture? A) high employee turnover B) decreased organizational performance C) low loyalty towards the organization D) inability to respond to changing conditions

D) inability to respond to changing conditions

(T/F) A dynamic and simple environment is characterized by the greatest level of environmental uncertainty.

FALSE

(T/F) A dynamic environment is characterized by the absence of new competitors, few technological breakthroughs by current competitors, and little activity by pressure groups to influence the organization.

FALSE

(T/F) In order to develop an innovative organizational culture, managers must minimize ambiguity and uncertainty and discourage risk-taking.

FALSE

(T/F) Managers of high-performing companies tend to consider the interests of the most profitable stakeholder groups as they make decisions.

FALSE

(T/F) Organizations that subscribe to workplace spirituality emphasize the importance of employees controlling their expressions and emotions.

FALSE

(T/F) Spiritual organizations tend to be intolerant of employees who commit mistakes.

FALSE

(T/F) The shared aspect of culture implies that all employees in an organization approve of the culture.

FALSE

(T/F) The symbolic view of management impact is useful in explaining the high turnover among sports coaches, who can be considered the "managers" of their teams.

FALSE

"ready-aim-fire" culture

Managers study and analyze proposed projects endlessly before committing to them

Managerial Decisions Affected by Culture

Planning: •The degree of risk that plans should contain •Whether plans should be developed by individuals or teams •The degree of environmental scanning in which management will engage Organizing: •How much autonomy should be designed into employees' jobs •Whether tasks should be done by individuals or in teams •The degree to which department managers interact with each other Leading: •The degree to which managers are concerned with increasing employee job satisfaction •What leadership styles are appropriate •Whether all disagreements, even constructive ones, should be eliminated Controlling: •Whether to impose external controls or to allow employees to control their own actions •What criteria should be emphasized in employee performance evaluations •What repercussions will occur from exceeding one's budget

socialization

Process that helps employees adapt to the organization's culture and way of doing things

environmental uncertainty

The degree of change and complexity in an organization's environment; can be stable or dynamic

environmental complexity

The number of component's in an organization's environment and the extent of the organization's knowledge about the components; can be simple or complex; complexity increases as the number of competitors increases; measured in terms of the knowledge an organization needs about its environment

organizational culture

The shared values, principles, traditions, and ways of doing things that influence the way organization members act and that distinguish the organization from others

The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization's environment. Imagine that the town to which your office caters sees a sudden spurt in popularity. There has been a lot of construction activity in the area and a number of properties are being developed. The number of customers has increased, and so have your competitors. In this situation, what should you do to reduce environmental uncertainty?

acquire or merge with one or more of your competitors

baby boomers

born between the years 1946-1964

The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization's environment. If the mortgage interest rates increase, this would be an example of changing ________ in your external environment.

economic conditions

cultural constraints on managers

•Whatever managerial actions the organization recognizes as proper or improper on its behalf •Whatever organizational activities the organization values and encourages •The overall strength or weakness of the organizational culture (rarely explicit, not written down, and not spoken of)

dynamic environment characteristics

•dynamic and unpredictable environment •components continually changing

components of external environment (7)

•economic: encompasses factors such as interest rates, inflation, changes in disposable income, stock market fluctuations, and business cycle stages •demographics: concerned with trends in population characteristics such as age, race, gender, education level, geographic location, income, and family composition. •political/legal: federal, state, and local laws as well as global laws and laws of other countries. It also includes a country's political conditions and stability •sociocultural: societal and cultural factors such as values, attitudes, trends, traditions, lifestyles, beliefs, tastes, and patterns of behavior •technological: scientific or industrial innovations •global: issues associated with globalization and a world economy

simple environment characteristics

•few components in environment •components somewhat similar •minimal need for sophisticated knowledge of components

spiritual organizational culture critisim

•legitimacy (Do organizations have the right to impose spiritual values on their employees?) •economics (Are spirituality and profits compatible?).

complex environment characteristics

•many components in environment •components are not similar to one another •high need for sophisticated knowledge of components

stable environment characteristics

•stable and predictable environment •components remain basically the same

characteristics that increase workplace spirituality (5)

•strong sense of purpose •focus on individual development •trust and openness •employee empowerment •toleration of employee expression

creating a customer-responsive culture

•type of employee: hire people with personalities and attitudes consistent with customer service •type of environment: design jobs so employees have as much control as possible to satisfy customers, without rigid rules or procedures •empowerment: give service-contact employees the discretion to make day-to-day decisions on job-related activities •role clarity: reduce uncertainty about what service-contact employees can and can not do by continual training on product knowledge, listening, and other behavioral skills •consistent desire to satisfy and delight customers: clarify organization's commitment to doing whatever it takes, even if it's outside an employee's normal job requirements

weak culture characteristics

•values limited to a few people; usually top management •culture sends contradictory messages about whats important •employees have little knowledge of company history or heroes •employees have little identification with culture •little connection between shared values and behaviors

strong culture characteristics

•values widely shared •culture conveys consistent messages about whats important •most employees can tell stories about company history or heroes •employees strongly identify with culture •strong connection between shared values and behaviors