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Indicate whether the statement is true or false.
1. In the quadrants of organizational performance and culture, companies in Quadrant D put high emphasis on both
culture and solid business performance as drivers of organizational success.
a. True
b. False
2. A narrative based on events within the organization that is frequently repeated is called an organizational story.
a. True
b. False
3. Physical symbols are associated with the surface level of organizational culture.
a. True
b. False
4. A joint venture involves a strategic alliance or program by two or more organizations.
a. True
b. False
5. The task environmental dimension includes all elements that occur naturally on Earth, including plants, animals, rocks,
and resources such as air, water, and climate.
a. True
b. False
6. In the quadrants of organizational performance and culture, companies in Quadrant A represent the high-performance
culture.
a. True
b. False
7. The cultural leader articulates a vision for the organizational culture that employees can believe in.
a. True
b. False
8. In the quadrants of organizational performance and culture, Quadrant A represents organizations that are focused
primarily on bottom-line results and pay little attention to organizational values.
a. True
b. False
9. Current employees, management, and especially corporate culture are part of an organization’s internal environment.
a. True
b. False
10. Managers in partnering organizations, given the increasing environmental uncertainty, are shifting from a partnership
orientation to an adversarial orientation.
a. True
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b. False
11. The consistency culture has an external focus and a consistency orientation for a dynamic environment.
a. True
b. False
12. Corporate culture plays a key role in creating an organizational climate that enables learning and innovative responses
to threats from the external environment, challenging new opportunities, or organizational crises.
a. True
b. False
13. An example of part of the legal-political dimension of the general environment is a government’s report on the decline
of unemployment rate.
a. True
b. False
14. In today’s business environment, most companies operate in a stable and rigid environment.
a. True
b. False
15. An achievement culture is found in an environment that is dynamic and requires high-risk decision making.
a. True
b. False
16. The set of key values, beliefs, understandings, and norms that are shared by members of an organization are combined
to create the symbols of an organization.
a. True
b. False
17. If Johnson Lumber provides trees for Westvaco Paper Manufacturing, then Johnson Lumber is considered a supplier
for Westvaco.
a. True
b. False
18. A political lobbyist for General Motors fills an essential boundary-spanning role.
a. True
b. False
19. McDonald’s, Burger King, and Checkers are competitors since all three sell fast food to individuals.
a. True
b. False
20. The most recent U.S. census data show that about one-third of all babies born 2011 were members of minority group.
a. True
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b. False
21. Labor market forces affecting organizations right now include the growing need for computer-literate knowledge
workers and the necessity for continuous investment in human resources through recruitment, education, and training.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
22. When Miami Herald launches a Spanish-language newspaper, El Nuevo Herald, with articles emphasizing Hispanic,
Cuban, and Latin American news and sports, it is responding to changes in __________ environment.
a. sociocultural
b. technological
c. economic
d. supply chain
e. geographic
23. Terry manages a food distribution company that is highly focused on creating a strong cohesive culture, but the
company does not tie organizational values directly to goals and desired business results. Terry’s company most likely
falls into which of the following quadrants of organizational performance and culture?
a. Quadrant A
b. Quadrant B
c. Quadrant C
d. Quadrant D
e. Quadrant E
24. __________ is(are) included in an organization’s task environment.
a. Suppliers
b. Accounting procedures
c. Technology
d. Government
e. Demographic characteristics
25. The general environment dimension that includes consumer purchasing power, the unemployment rate, and interest
rates is called the:
a. legal-political dimension.
b. sociocultural dimension.
c. technological dimension.
d. economic dimension.
e. task dimension.
26. Roadtec Tire Company has a corporate culture that emphasizes an internal focus on the involvement and participation
of employees, placing high value on meeting the needs of employees. The company is known for its caring, family-like
atmosphere. Which of the following types of corporate culture does Roadtec possess?
a. Adaptability culture
b. Achievement culture
c. Consistency culture
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d. Involvement culture
e. Matrix culture
27. In a study by Kotter and Heskett, evidence is provided to support the claim that __________ is important for
performance.
a. managing cultural values
b. leading partnerships within an industry
c. surveying the external environment
d. managing client relationships as boundary spanners
e. empowering employees
28. Roberta is a top-level executive at a banking institution. She spends a significant part of her day meeting with local
government officials, everyday consumers, and federal banking officials to address key issues in the banking industry.
Roberta’s role can best be described as:
a. boundary spanning.
b. adaptive.
c. interorganizational.
d. external.
e. internal.
29. Executives at One World Advertising have learned that it is necessary to establish strong personal relationships and
emotional bonds with Chinese business partners. This relates most closely to which of the following dimensions of the
general business environment?
a. Natural
b. Sociocultural
c. Legal/Political
d. International
e. Internal
30. The people and organizations in the environment who acquire goods or services from the organization are:
a. competitors.
b. suppliers.
c. customers.
d. employees.
e. potential employees.
31. In the current external business environment, which of the following is true?
a. Corporate culture defines success.
b. The business environment is static.
c. Companies are more adversarial than ever before.
d. Mergers are declining.
e. Joint ventures are on the rise.
32. The adaptability culture emerges in an environment that requires __________ response and __________ decision
making.
a. fast; high-risk
b. fast; low-risk
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c. slow; high-risk
d. slow; low-risk
e. regulated; low-risk
33. Culture can be defined as:
a. the set of key values, beliefs, understandings, and norms shared by members of an organization.
b. the ability to speak different languages.
c. an object, act, or event that conveys meaning to others.
d. a narrative based on true events that is repeated frequently and shared by organizational employees.
e. a planned activity at a special event that is conducted for the benefit of an audience.
34. Molly Madison received “The Employee of the Month” award at Internal Workings Remodeling Service in April.
Molly would be considered a part of which of the following for Internal Workings?
a. General environment
b. Task environment
c. Economic environment
d. Internal environment
e. Legal-political environment
35. Which of the following roles is assumed by people and/or departments that link and coordinate the organization with
key elements in the external environment?
a. Figurehead
b. Liaison
c. Boundary spanning
d. Disturbance handler
e. Leader
36. Jefferson and Squire is an advertising firm that is viewed as having a fast-paced and posh corporate culture. The
company uses bold coloring with expensive accents in all office décor. This exemplifies which of the following levels of
corporate culture?
a. Visible artifacts
b. Underlying assumptions
c. Expressed values
d. Heroes
e. Ceremonies
37. __________ plays a key role in creating an organizational climate that enables learning and innovative responses to
threats from the external environment, challenging new opportunities, or organizational crises.
a. Mission statement
b. Vision statement
c. Competitive intelligence
d. Employee training
e. Corporate culture
38. The level of corporate culture in which values are so deeply embedded that members are no longer consciously aware
of them is:
a. invisible artifacts.
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b. expressed values and beliefs.
c. explicit code of conduct.
d. dress and office layout.
e. slogans and ceremonies.
39. The __________ dimension of the general environment includes federal, state, and local government regulations.
a. technological
b. legal-political
c. economic
d. sociocultural
e. international
40. A __________ is a narrative based on true events that is repeated frequently and shared among organizational
employees.
a. symbol
b. slogan
c. story
d. hero
e. culture
41. Which of the following means that managers do not have sufficient information about environmental factors to
understand and predict environmental needs and changes?
a. Adaptation
b. Risk
c. Uncertainty
d. Knowledge
e. Education
42. __________ is an approach to boundary spanning that results from using sophisticated software to search through
large amounts of internal and external data to spot patterns, trends, and relationships that might be significant.
a. Merger intelligence
b. Business intelligence
c. Competitive intelligence
d. Partnership intelligence
e. Environment intelligence
43. McDonald’s “We Love to See You Smile” is an example of a:
a. ceremony.
b. symbol.
c. ritual.
d. slogan.
e. political activity.
44. GreenTech Candies is a U.S.-based company that manufactures and distributes candy bars and snack foods globally.
The company sources most of its cocoa and sugar from South American companies. This business relationship highlights
which of the following dimensions of the task environment?
a. Customers
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b. Competitors
c. Labor market
d. Culture
e. Suppliers
45. In the shift from an adversarial to a partnership orientation, an organization should:
a. concentrate on price, efficiency, and profits.
b. limit feedback and information.
c. use long-term contracts.
d. use lawsuits to resolve conflict.
e. limit the business relationship to the contract.
46. Ally’s Applesauce is in the process of hiring 60 new workers. The personnel department has a large pool of unskilled
labor to draw from due to the high unemployment rate in the local area. Which of the following dimensions of the external
environment is involved here?
a. Sociocultural
b. Competitors
c. Technological
d. Labor market
e. Legal-political
47. _________ includes all elements existing outside the boundary of the organization that have the potential to affect the
organization.
a. Organizational environment
b. Internal environment
c. Task environment
d. General environment
e. Technological environment
48. All of the following are a part of an organization’s task environment, except:
a. customers.
b. labor markets.
c. competitors.
d. employers.
e. suppliers.
49. When two or more organizations combine to become one, it is referred to as a(n):
a. joint venture.
b. flexible structure.
c. mechanistic structure.
d. merger.
e. inorganic venture.
50. The involvement culture emphasizes a(n) __________ focus on the participation of employees to adapt rapidly to
changing needs from the environment.
a. external
b. internal
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c. structural
d. competitive
e. technological
51. Which of the following types of culture values and rewards a methodical, rational, and orderly way of doing things?
a. Achievement culture
b. Involvement culture
c. Accomplishment culture
d. Consistency culture
e. Adaptability culture
Enter the appropriate word(s) to complete the statement.
52. An object, act, or event that conveys meaning to others is known as a(n) __________.
53. In today’s business environment, many companies have shifted away from the __________ culture, which supports
and rewards a methodical, rational, and orderly way of doing things.
54. As environmental turbulence increases, __________, which alter an organization’s ability to achieve its goals, emerge
more frequently.
55. A(n) __________ defines and uses signals and symbols to influence corporate culture.
56. __________ are becoming more popular as organizations strive to keep up with rapid technological advancements and
compete in the global economy.
57. The __________ environment includes the sectors that conduct day-to-day transactions with the organization and
directly influence its basic operations and performance.
58. Steve Jobs exemplified the __________ figure in corporate culture.
59. The __________ culture places high value on meeting the needs of employees, and the organization may be
characterized by a caring, family-like atmosphere.
60. List two reasons why ceremonies are held in an organization.
61. Name one of the two dimensions on which the categories of culture are based.
62. List three visible artifacts of an organization’s culture.
63. List the four categories of culture and describe the kind of environment in which each fits best.
64. Discuss the relationship between external environmental characteristics and uncertainty.
65. Discuss the different levels of culture.
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Answer Key
1. False
2. True
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26. d
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52. symbol
53. consistency
54. strategic issues
55. cultural leader
56. Joint ventures
57. task
58. hero
59. involvement
60. Reasons would include:
1. To reinforce valued accomplishments.
2. To create a bond among people by allowing them to share an important event.
3. To anoint and celebrate heroes.
61. 1. The extent to which the external environment requires flexibility or stability.
2. The extent to which a company’s strategic focus is internal or external.
62. Visible artifacts include dress, heroes, office layout, symbols, slogans, and ceremonies.
63. Adaptability culture fits best in fast response and high-risk, decision-making environments. Achievement culture fits
best in results-oriented cultures that value competitiveness, aggressiveness, personal initiative, and willingness to work
long and hard to achieve results. Involvement culture fits best in internal and employee-need-focused environments where
the organization is seen as having a caring, family-like atmosphere. Consistency culture fits best in internal-focused
organizations that have a consistency orientation for a stable environment.
64. The external environment can be evaluated along two dimensions. First, one can evaluate (high to low) a number of
factors in the environment. Second, one can evaluate (high to low) the rate of change of those factors. When both
variables are low, low uncertainty characterizes the external environment. When both variables are high, the external
environment is marked by a high level of uncertainty. A highly uncertain environment requires organizations to adapt
and/or attempt to influence the external environment.
65. Culture can be analyzed at two levels. At the surface, there are the visible representations of culture, such as ceremonies and
patterns of behaviors. These representations are easily observable. The second level of culture can be found in expressed ideas
and values. These ideas and values can be identified through an analysis of such things as symbols and stories. Some values
become so deeply embedded in a culture that members are no longer consciously aware of them.