Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
File: Chapter 8: Organizational Cultures, Innovation, and Change
Multiple Choice
1. A system of shared beliefs and values that guides organizational behavior is called an
________.
a) organizational policy
b) organizational procedure
c) organizational design
d) organizational culture
2. Which of the following statements is NOT true about organizational culture?
a) It describes the structure of an organization.
b) It is a system of shared beliefs and values.
c) It represents the personality of an organization.
d) It represents the way of doing things in an organization.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
3. The __________ of an organization is reflected in how people dress at work, arrange their
offices, and speak to and behave toward one another in the organization.
a) functional culture
b) observable culture
c) underground culture
d) core culture
4. All of the following are true about strong organizational cultures EXCEPT that:
a) they are performance driven.
b) they are restricted to the top management.
c) they provide a clear vision.
d) they discourage dysfunctional work behaviors and encourage positive ones.
5. What people see or hear when they walk around in an organization is part of the
organization’s:
a) observable culture.
b) goals.
c) strategy.
d) employee training.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
6. The senior managers of West Corp. do not have private offices or parking spaces. This is an
example of the organization’s __________.
a) corporate policy
b) employee training
c) performance appraisal
d) observable culture
7. The process through which new members learn the culture of an organization is called
__________.
a) training
b) coaching
c) socialization
d) employee development
8. According to the competing values framework, __________ emphasize authority, tradition,
and clear roles.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures
9. According to the competing values framework, which of the following types of cultures
emphasizes change, growth, creativity, and competition?
a) Entrepreneurial cultures
b) Hierarchical cultures
c) Rational cultures
d) Team cultures
10. According to the competing values framework, __________ emphasize process, efficiency,
and slow change.
a) entrepreneurial cultures
b) hierarchical cultures
c) rational cultures
d) team cultures
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
11. At Callaway Golf, which of the following would NOT be a part of the observable culture?
a) The way people dress
b) The layout of the offices
c) The absence of executive parking spaces
d) The organizational beliefs
12. Which of the following represents a deeper level of organizational culture that consists of the
beliefs and values shared by organization members?
a) Bureaucratic culture
b) Core culture
c) Organic culture
d) Mechanistic culture
13. The beliefs shared by an organization’s members are called __________.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
a) corporate doctrines
b) management directives
c) corporate requests
d) core values
14. Merck’s “Highest level of scientific excellence;” Whole Foods’ “Creating ongoing win-win
partnerships with our suppliers;” and FedEx’s “We are honest, ethical, and do the right thing” are
examples of __________.
a) process innovations
b) value-based management
c) values statements
d) mission statements
15. Organizations that actively develop, communicate, and enact shared values are practicing
__________.
a) functional management
b) value-based management
c) decentralized bureaucracy
d) bureaucratic control
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
16. Which of the following terms refers to the practices that create meaning and shared
community among employees?
a) Functional management
b) Workplace spirituality
c) Employee manipulation
d) Bureaucratic control
17. The process of taking a new idea and putting it into practice is called __________.
a) production
b) innovation
c) creativity
d) brainstorming
18. Creating better ways of doing things is called __________.
a) product innovation
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
b) process innovation
c) creativity
d) invention
19. __________ result in new or improved goods and services.
a) Process innovations
b) Product innovations
c) Technology innovations
d) Business-model innovations
20. At ABC Manufacturing, the process of turning ideas into products and methods that can
increase profits would be called __________.
a) virtual processing
b) organizational development
c) business model innovation
d) transformational change
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
21. Netflix turned movie rental into a subscription business; eBay earns revenues by connecting
users of its online marketplace; Google thrives on advertising revenues driven by ever-expanding
Web technologies. These are all examples of __________.
a) process innovations
b) virtual innovations
c) business model innovations
d) green innovations
22. Which of the following types of innovations creates ways to reduce the carbon footprint of an
organization or its products?
a) Reverse innovation
b) Sustainable innovation
c) Commercializing innovation
d) Business model innovation
23. Hyd Inc., a clinical research company, recently introduced videoconferencing. As a result,
employees are rarely required to commute to office. By doing this, Hyd Inc. has considerably
reduced their carbon emissions. This is an example of __________.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
a) invention
b) product innovation
c) reverse innovation
d) green innovation
24. Gene pursues creative and innovative ways to solve social problems. Hence, we can say that
Gene participates in __________.
a) social responsibility
b) social entrepreneurship
c) green innovation
d) commercializing innovation
25. The innovation process begins with __________.
a) commercialization
b) invention
c) application
d) implementation
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
26. __________ recognizes the potential for valuable innovations to be launched from lower
organizational levels and diverse locations, including emerging markets.
a) Reverse innovation
b) Forward innovation
c) Commercializing innovation
d) Virtual innovation
27. Identify a primary characteristic of reverse innovation.
a) It is a type of business innovation driven by a social conscience.
b) It supports sustainability by creating ways to reduce the carbon footprint of an organization or
its products.
c) It creates products or services that become so widely used that they largely replace prior
practices and competitors.
d) It takes products and services developed in emerging markets and finds ways to use them
elsewhere.
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
28. __________ creates products or services that become so widely used that they largely replace
prior practices and competitors.
a) Reverse innovation
b) Basic research
c) Green innovation
d) Disruptive innovation
29. Which of the following is a characteristic of highly innovative organizations?
a) They focus on having a highly bureaucratic organizational structure.
b) They tend to value creativity while moving people to responsible positions.
c) People from similar disciplines use the assembly line model to focus on problems.
d) The strategies of the organization target profitability.
30. __________ is the enemy of innovation.
a) Creativity
b) Bureaucracy
c) Experimentation
d) Imagination
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
31. Which of the following terms can be described as the special creative units set free from the
normal organizational structure for the purpose of innovation?
a) Divisions
b) Skunkworks
c) Research labs
d) Business units
32. Michelle is a manager at MDH Corporation. She tries different approaches to alter the
existing pattern of behavior among her employees to adapt to new situations. Michelle would be
considered a(n) _______.
a) opinion leader
b) ethics manager
c) status quo manager
d) change leader
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
33. If ABC, Inc. is focusing on a major and comprehensive redirection of the company, it is
called a(n) ___________ change.
a) innovative
b) planned
c) transformational
d) incremental
34. A(n) __________ tweaks and nudges people, systems, and practices to better align them with
emerging problems and opportunities.
a) transactional change
b) incremental change
c) improvisational change
d) transformational change
35. Nicole is a manager at N.E.W. Corporation. In order to improve performance, she bends and
adjusts the existing ways of performance improvement techniques. Nicole is using what type of
change?
a) Transactional change
b) Incremental change
c) Improvisational change
d) Transformational change
Schermerhorn & Bachrach / Exploring Management, 5th Edition Test Bank
36. A leader must do all of the following in order to lead transformational change EXCEPT:
a) establish a sense of urgency for change.
b) empower others to move change forward.
c) create and communicate a change vision.
d) order and hope that the change is implemented.
37. Which of the following is true about status quo managers?
a) They encourage innovation.
b) They are not bothered by uncertainty.
c) They prefer change over monotony.
d) They feel threatened by change.
38. The main reason for the failure of major transformational change is: