MGMT 490-Chapter 12
Which of the following actions would NOT help to rectify a company's unethical and greed-driven culture? Require all company personnel to attend culture-training programs to better understand the new culture-related actions and behaviors that are expected. 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. Dismiss executives that exude an "ends-justify-the-means" mentality in pursuing overambitious operating and financial targets. 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.
Adopt accounting principles that make the company's financial performance appear better than it really is.
Which of the following statements does NOT accurately describe corporate culture? Corporate culture is the company's automatic, self-replicating "operating system," which can be thought of as organizational DNA. Corporate culture depends on how strongly its strategic vision is linked to the company's core values. Corporate culture varies widely in companies, depending on internal and external forces. Corporate culture refers to the character of a company's internal work climate. Corporate culture is shaped by a system of shared values, beliefs, ethical standards, and traditions that define behavioral norms, work practices, and styles of operating.
Corporate culture depends on how strongly its strategic vision is linked to the company's core values.
Which of the following can help in changing a problem culture? A company's strategic approach needs to be revamped to better fit the company's desired cultural traits. A bottom-up approach is needed to change the culture; having top management out in front leading the effort tends to be counterproductive. Executives have to know the weaknesses of their subordinates to begin the change process. It requires writing a new statement of core values, having a series of meetings with employees to explain the new cultural expectations, and having shareholders vote to ratify and adopt the new culture. It takes concerted management action over a period of time to root out unconstructive behaviors and replace them with new ways of doing things.
It takes concerted management action over a period of time to root out unconstructive behaviors and replace them with new ways of doing things.
Which of the following is a hallmark of adaptive corporate cultures? Skepticism about the importance of new developments and a fear of change are the norm. Issues and problems are promptly addressed and there is a razor-sharp focus on what needs to be done. There is a high willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. The culture arises most commonly because of a crisis that requires a team effort to resolve. Employees at companies with adaptive cultures display a passion for making the company successful.
There is a high willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies.
Technology companies, software companies, and Internet-based companies are good illustrations of organizations with achievement-oriented cultures. integrative cultures. diverse cultures. adaptive cultures. inwardly focused cultures.
adaptive cultures.
The strongest signs that management is truly committed to installing a new culture include all the following, EXCEPT replacing key executives who are stonewalling needed organizational and cultural changes. revising policies and procedures in ways that will help drive cultural change. screening all candidates for new positions and carefully hiring only those who appear to fit in with the new culture. promoting individuals who have stepped forward to advocate the shift to a different culture and who can serve as role models for the desired culture. appointing only insiders to high-profile positions.
appointing only insiders to high-profile positions
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 as levers to mobilize commitment to executing the chosen strategy. as reinforcement for convincing staff that the strategy is sound and molded in tradition. to ensure the staff will embrace the new strategy like they have in the past. to manipulate jobholders into thinking traditions are important. as disciplinary measures in making the employees perform better and achieve targets.
as levers to mobilize commitment to executing the chosen strategy.
Which of the following is a common characteristic of unhealthy corporate cultures? centralized decision making decentralized human resource policies and procedures an aversion to offsite employee training programs a reluctance to engage in business process reengineering, TQM, and Six Sigma counterproductive cultural traits that adversely impact the work climate and company performance
counterproductive cultural traits that adversely impact the work climate and company performance
Change-resistant cultures encourage all the following undesirable and unhealthy behaviors, EXCEPT viewing circumstances myopically, avoiding risks, and having little appetite for being first movers or fast followers. pursuing bold actions to capture emerging opportunities, and responding more slowly than is warranted to market change. preferring to follow rather than lead market change, and prompting managers to lean toward safe options intended to maintain the status quo and protect their power base. taking a lax approach to both product innovation and continuous improvement in performing value chain activities. executives exuding an "ends-justify-the-means" mentality in pursuing overambitious revenue and profitability targets.
executives exuding an "ends-justify-the-means" mentality in pursuing overambitious revenue and profitability targets.
The first step in fixing a problem culture is for top management to talk openly about problems in the present culture and how new behaviors will improve company performance. follow with visible, forceful actions to ingrain a new set of behaviors, practices, and norms. identify facets of the present culture that are conducive to good strategy execution and those that are not. specify what new actions, behaviors, and work practices should be prominent in the new culture. mandate that all company personnel attend culture-training programs to learn more about the new work practices.
identify facets of the present culture that are conducive to good strategy execution and those that are not.
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? communicating the company's good intentions validating the integrity and above-board nature of the company's business principles and operating methods steering company personnel toward both doing things right and doing the right thing establishing a corporate conscience identifying how best to adapt to changing market conditions
identifying how best to adapt to changing market conditions
Which of the following is NOT an integral part of transforming core values and ethical standards into cultural norms? instituting procedures for enforcing ethical standards immediately dismissing any employee caught violating the company's code of ethics or disregarding core values 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 having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and internal communications to employees
instituting procedures for enforcing ethical standards
Long-term industry success can give rise to a(n) high-performance culture. politicized culture. insular, inwardly focused culture. unethical and greed-driven culture. incompatible subculture.
insular, inwardly focused culture.
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 there is much less risk of embarrassing ethical violations. 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. 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. there is reduced need to employ benchmarking, best practice programs, reengineering, Six Sigma, and TQM to achieve competitive advantage. 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.
Companies with multinational operations and/or newly acquired businesses typically have strong cultures. multiple cultures (or subcultures) rather than a single culture. weak cultures. adaptive cultures. low-performance cultures.
multiple cultures (or subcultures) rather than a single culture.
Symbolic culture changing actions include all of the following EXCEPT leading by example. reinforcing and celebrating culture-change successes praising individuals and groups that exemplify the new desired behavior. ensuring top executives' actions match their rhetoric. revising policies and procedures in ways that will help drive cultural change.
revising policies and procedures in ways that will help drive cultural change.
Which of the following is NOT one of the chief factors that defines a company's corporate culture? the values, business principles, and ethical standards that management preaches and practices the atmosphere and spirit that pervades the work climate the strength of peer pressure that exists to do things in particular ways and conform to expected norms the manner in which the company deals with external shareholders the attractiveness and the competitive strength of the industry the company is operating in
the attractiveness and the competitive strength of the industry the company is operating in
Which of the following is NOT a fundamental part of a company's culture? the work practices and behaviors that define "how we do things around here" the company's standard of what is ethically acceptable and what is not, along with the "chemistry" and "personality" that permeates its work environment the core values and business principles that management preaches and practices the company's strategic vision, strategic intent, and culture strategy the legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices
the company's strategic vision, strategic intent, and culture strategy
For an enterprise to execute its strategy in truly proficient fashion and approach operating excellence mid-level executives must be charismatic, be decisive decision makers, and make inspiring speeches at company events. all employees must be very personable, effective communicators, and be skilled in the empowerment of company personnel. the management must be creative in establishing policies and procedures that will instill high standards of operating excellence. top executives must take the lead in the implementation/execution process and personally drive the pace of progress. the CEO must gather information firsthand and demand progress from mid-level managers.
top executives must take the lead in the implementation/execution process and personally drive the pace of progress.
Enron, Countrywide Financial, and JPMorgan Chase are examples of companies whose culture became change-resistant. politicized. insular and inwardly focused. unethical and greed-driven. an incompatible subculture.
unethical and greed-driven.
