Management, 9e (Kinicki)
Chapter 8 Organizational Culture, Structure, and Design:
Building Blocks of the Organization
1) Organizational psychologist Edgar Schein recommends that managers delegate
(1) emergencies, (2) confidential matters, and (3) personnel-related matters.
2) An organizational structure is a set of shared, taken-for-granted implicit assumptions that a
group holds and that determines how it perceives, thinks about, and reacts to its environments.
3) Organizational culture appears in four layers: clan, adhocracy, market, and hierarchy.
4) Tyree, a graphic designer with Lincoln Advertising, enjoys working for the company because of
the flexibility of its management and its culture, which encourages risk taking, innovation, and
creativity. Tyree gets quick answers from his boss, allowing him and Lincoln Advertising to
quickly respond to changes in the marketplace. Lincoln Advertising is an example of an adhocracy
culture.
5) Simply Marketing has a hierarchy culture, which means focusing externally, concentrating on
strategic planning, taking risks, and preferring flexibility over stability.
6) Changing organizational culture is essentially a teaching process in which members instruct
each other about the organization’s preferred values, beliefs, expectations, and behaviors.
7) Teamsters is an example of a for-profit organization, and the Susan G. Komen for the Cure is an
example of a nonprofit organization.
8) For division of labor to work, there must be a minimum of four employees.
9) Imagination Station uses an organizational structure that includes both functional divisions
(such as marketing and HR) and a divisional chain of command (such as the marketing and sales
divisions). For example, Raj, a salesperson for Imagination Station, reports to both the marketing
manager and the sales manager as he starts to develop the Creative Minds account. Imagination
Station uses a matrix structure.
10) While figuring out how to save money for a bride who is having financial problems, Cadence,
the catering manager of I Do I Do, asked her assistant, “What do you think is the best menu to offer
under these particular circumstances? How can we offer the bride and groom’s guests a great meal
within their budget?” Cadence and her assistant are using the contingency approach.
11) Routine tasks and paperwork, as well as jobs that help your subordinates grow, are tasks that
A) a manager should not delegate, according to Edgar Schein.
B) should be delegated, according to Maslow.
C) a manager should delegate, according to Edgar Schein.
D) should not be delegated, according to Maslow.
E) a manager should never delegate, according to Frank Gilbreth.
12) Which of Edgar Schein’s common elements unifies employees and gives everyone an
understanding of the organization’s reason for being?
A) coordinated effort
B) division of labor
C) hierarchy of authority
D) span of control
E) common purpose
13) Will, the owner of Will’s Landscaping, was talking to a visitor in his office, telling her that “We
are a fun-loving group that believes in teamwork and a family atmosphere at work, which
significantly affects our work outcomes. Plus, we do things together outside of work. This is the
‘social glue’ that binds the members of our company together.” Will was referring to his company’s
A) mission statement.
B) organizational culture.
C) code of ethics.
D) diversity plan.
E) analytics.
14) Richard, the store manager at an Old Navy outlet, was speaking with Brescia, his new assistant
manager, about the store’s system of job relationships; he also explained whom she will report to
and who will report to her. Richard said, “This system is one of the things that motivates our
employees to work together to achieve our company’s goals.” Richard was telling Brescia about
the store’s
A) organizational structure.
B) organizational culture.
C) code of ethics.
D) diversity plan.
E) values statement.
15) According to the competing values framework, the four types of ________ are clan,
adhocracy, market, and hierarchy.
A) organizational values
B) industry cultural standards
C) organizational norms
D) value statements
E) organizational cultures
16) Tech company ITOpportunity has a clan culture; employees have generous perks and are
empowered to participate in a way in the company that is fun. The end results are profitability and
an enviably low 2 percent turnover rate. A clan culture has a(n)
A) internal focus and values flexibility.
B) strong external focus and values stability and control.
C) external focus and values flexibility.
D) internal focus and values stability and control.
E) continual focus on efficiency, cost cutting, and outsourcing.
17) Online retailer Amazon relies heavily on a hierarchy culture to manage its vast and complex
shipping processes. ________ are part of Amazon’s hierarchy culture.
A) An internal focus and valuing stability and control
B) A strong external focus and valuing stability and control
C) An external focus and valuing flexibility
D) An internal focus and valuing innovation and creativity
E) A continual focus on efficiency, cost cutting, and outsourcing
18) Brodie, the owner of Wave Pools, is driven by competition. He is very focused on meeting
deadlines and quality, and on delivering the results that customers want. He pushes his managers to
continually exceed their productivity goals, and he stresses that profits take precedence over
employee development and satisfaction. Brodie feels “there is not enough time for training.”
However, his employees are regularly rewarded for their success in meeting company goals. Wave
Pools has a(n) ________ culture.
A) clan
B) target-driven
C) adhocracy
D) market
E) hierarchy
19) Employees and customers are treated like a family at State Street Coffee House. Jason and Jill,
the owners, work to encourage unity to increase their employees’ job satisfaction and commitment.
At their coffee house, Jason and Jill have built a(n)
A) market culture.
B) goal-driven agenda.
C) bureaucracy culture.
D) clan culture.
E) adhocracy culture.
20) Sidwan, owner of Jacuzzi Warehouse, said, “We have to focus on our customers and how we
can beat the competition, so we have to be flexible.” He encourages his R&D department to
develop innovative products and focuses on being quick to respond to market changes. Jacuzzi
Warehouse has a(n)
A) market culture.
B) goal-driven agenda.
C) adhocracy culture.
D) clan culture.
E) focused approach.
21) Eriq and Steven, owners of Happy Times Ice Cream Shoppe, do not have a formal policy about
dress code and work procedures because they see their company as a family place that provides
enjoyable work. Eriq and Steven believe that if you treat employees like family, the company will
do well and grow. ________ are the core beliefs that represent the core values of Happy Times Ice
Cream Shoppe’s culture.
A) A code of ethics
B) Basic assumptions
C) Espoused values
D) Rites and rituals
E) Observable artifacts
22) ________ are the rituals and ceremonies of a company, as well as the manner of dress, awards,
myths and stories told about a company.
A) Observable artifacts of organizational culture
B) Espoused values of organizational culture
C) Enacted values of organizational culture
D) Basic assumptions about organizational culture
E) Invisible artifacts of that industry’s culture and values
23) Espoused values are ________. For example, Hewlett-Packard stresses the “HP Way,” a
collegial, egalitarian culture that gave as much authority and job security to employees as possible.
A) a narrative based on true events, which emphasize a particular value
B) physical manifestations of organizational culture
C) the values and norms actually exhibited in the community
D) explicitly stated values and norms preferred by an organization
E) profit and cost expectations stated in the business plan
24) Symbols, stories, heroes, and rites and rituals are ways in which ________ is (are) most often
transmitted to employees.
A) plans
B) goals
C) objectives
D) culture
E) ethics
25) IKEA employees are inspired to work hard by an anecdote from their Swedish founder, Ingvar
Kamprad, who told how he was berated by his father for failing repeatedly to get out of bed to milk
the cows on his family’s farm. In an essay he recounts how one day he got an alarm clock. “‘Now
by jiminy, I’m going to start a new life,’ he determined, setting the alarm for twenty to six and
removing the ‘off button.'” Ingvar Kamprad is an example of a(n)
A) trend.
B) fable.
C) hero.
D) urban legend.
E) key employee.
26) Rites and rituals are ________. For example, employees of New Belgium Brewery in Fort
Collins, Colorado, get a free brewery-hopping trip to Belgium after being employed by the
company for five years.
A) company values included in the code of ethics
B) the activities and ceremonies that celebrate important occasions and accomplishments in the
organization’s life
C) objects, acts, or the quality that conveys meaning to others
D) a narrative based on true events that emphasize a particular value
E) company expectations for employees, such as working hard, ethically, and honestly
27) Ty has been working for Lyft for three months. He expected that his job would be to respond to
requests on the app for a ride, pick up fares, and drop them off at their desired locations, but in his
first few days on the job he realized that the job entails much more. He must keep his car clean and
neat, and some days he will be assigned solely to go to people’s houses to pick them up and bring
them to the local airport, then wait at the airport to pick up arrivals and take them home, reducing
their wait time. Within a few months, he has learned that Lyft drivers often express frustration with
the people they call “civilians”—that is, non–Lyft drivers, whose driving skills they complain
about incessantly. In his first few months on the job, ________ describes what Ty is undergoing.
A) a symbolic ritual
B) values training
C) hierarchical indoctrination
D) fit analysis
E) organizational socialization
28) Which of the following is an accurate conclusion based on a recent meta-analysis of more than
38,000 organizational units and 616,000 individuals?
A) An organization’s culture does not matter.
B) An organization’s financial performance (profit and revenue growth) is strongly related to
organizational culture.
C) Employees have more positive work attitudes when working in organizations with clan
cultures.
D) Quality and innovation are most closely related to hierarchical cultures.
E) Adhocracy cultures produce higher customer satisfaction and market share.
29) Hewlett-Packard founders David Packard and William Hewlett strived to create a close-knit
organizational culture that gave a lot of responsibility to employees and fostered innovation within
the company. Individual responsibility and the importance of innovation are
A) espoused values.
B) focused values.
C) enacted values.
D) analytics.
E) diverse perspectives.
30) Making formal statements, engaging in rites and rituals, utilizing employee training and
coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards,
promotions, and bonuses are some of the teaching methods that organizations can utilize to
A) write a strategic plan.
B) perform competitive analysis.
C) effect corporate change.
D) conduct formal market research.
E) follow legal requirements.
31) Samir, the new CEO of Cloud Marketing, has been with the firm for over 25 years. He was
picked by the board to turn the 85-year-old agency around because it had lost its edge in the
Internet age. To infuse new life and energy into the agency, Samir wants to bring back some old
ideas that previously worked at Cloud. He plans on having managers and veteran employees
instruct each other about the organization’s values, beliefs, and expectations; telling stories about
some of the company legendary ad campaigns; coming up with a slogan that summarizes Cloud’s
abilities in a simple and memorable phrase; and having quarterly ceremonies where creativity and
innovation are rewarded. The things that Samir wants to do are all examples of
A) a value stabilizing plan.
B) decentralizing authority.
C) embedding culture.
D) MBO.
E) TQM.
32) According to Chester I. Barnard’s classic definition, an organization is a
A) formal system of task and reporting relationships that coordinate and motivate employees.
B) means to increase collaboration and cooperation among groups of people.
C) set of shared, taken-for-granted implicit assumptions that a group holds.
D) system of consciously coordinated activities or forces of two or more people.
E) type of analytical tool used for planning.
33) Organizations that are formed to offer services to clients and not make a profit are ________,
whereas, ________ are those organizations that are formed to make money, or profits, by offering
products or services.
A) for-profit organizations; nonprofit organizations
B) unions; associations
C) nonprofit organizations; associations
D) co-ops; for-profit organizations
E) nonprofit organizations; for-profit organizations
34) Dr. Potter is retiring as a veterinarian in private practice. He wants to start a ________, Vets on
the Go, that will provide low-income individuals with pets in the United States with veterinary
assistance at no cost.
A) for-profit organization
B) union
C) mutual-benefit organization
D) nonprofit organization
E) co-op
35) ________ are voluntary collectives with the purpose of advancing their members’ interests.
One example of such a collective is the Teamsters Union.
A) Clan cultures
B) Nonprofit organizations
C) Volunteer co-ops
D) For-profit organizations
E) Mutual-benefit organizations
36) Examples of ________ are the AFL-CIO (a union) and the National Federation of Independent
Business. Both are voluntary groups with the purpose of advancing member interests.
A) mutual-benefit organizations
B) nonprofit organizations
C) volunteer co-ops
D) for-profit organizations
E) trade alliances
37) ________ is(are) another way of describing a vertical hierarchy.
A) An upward graph
B) An X-Y chart
C) A chain of command
D) A network structure
E) Corporate steps