Question 1

Which one of the following is not something that shapes and helps define a company\'s culture?   A) The core values and business principles that executives espouse together with the operating practices and behaviors that define \"how we do things around here\"   B) The company\'s standards of what is ethically acceptable and what is not, along with the legends and stories that people repeat to illustrate and reinforce the company\'s core values, traditions, and business practices   C) A company\'s approach to people management and its style of operating   D) The strategy and business model that the company has adopted   E) The \"chemistry\" and \"personality\" that permeates its work environment

Accepted Answer

D) The strategy and business model that the company has adopted

Question 2

Which one of the following is not something to look for in identifying a company\'s culture?   A) The company\'s approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel   B) The company\'s track record in meeting or beating its financial and strategic performance targets   C) How managers and employees interact and relate to each other   D) The spirit and character that pervades the work climate   E) The strength of peer pressures to do things in particular ways and conform to expected norms

Accepted Answer

B) The company\'s track record in meeting or beating its financial and strategic performance targets

Question 3

Which of the following statements about a strong-culture company is false?   A) Decisive leadership on the part of top executives, an industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture company.   B) In strong culture companies, senior managers make a point of reiterating key principles and core values to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behaviorâthey walk the talk.   C) Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture.   D) In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices get squashed.   E) Senior managers insist that company values and business principles be reflected in the decisions and actions taken by all company personnel; moreover, individuals encounter strong peer pressures from co-workers to observe culturally-approved norms and behaviors.

Accepted Answer

A) Decisive leadership on the part of top executives, an industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture company.

Question 4

The characteristics of a weak company culture include   A) deep hostility to change and to people who champion new ways of doing things.   B) no code of ethics or statement of core values, a highly centralized managerial hierarchy, and a big corporate bureaucracy.   C) a lack of values and principles that are consistently preached or widely shared, little co-worker peer pressure to do things in particular ways, and no strong employee allegiance to what the company stands for or to operating the business in well-defined ways.   D) no strong sense of empowerment among company members, little or no top management commitment to a clearly-defined competitive strategy, and a poor track record in producing good financial results.   E) All of the above are traits of a weak company culture.

Accepted Answer

C) a lack of values and principles that are consistently preached or widely shared, little co-worker peer pressure to do things in particular ways, and no strong employee allegiance to what the company stands

Question 5

Which of the following is not one of the four types of unhealthy company cultures?   A) Bureaucratic cultures   B) Change-resistant cultures   C) Unethical and greed-driven cultures   D) Politicized cultures   E) Insular, inwardly-focused cultures

Accepted Answer

A) Bureaucratic cultures

Question 6

Companies with insular, inwardly-focused cultures   A) are typically opposed to performance-based incentive compensation and employee empowerment.   B) are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, are frequently lax when it comes to product innovation and continuous improvement in performing value chain activities, and prefer following rather than leading market change.   C) are typically gung-ho about adapting to changing market conditions so as to protect the company\'s culture from shareholder criticism.   D) tend to resist recruiting people who can offer fresh thinking and outside perspectives and typically refrain from looking outside the company for best practices, new managerial approaches, and innovative ideas.   E) are typically run by empire-building managers who jealously guard their decision-making prerogatives; they have their own agendas and operate the work units under their supervision as autonomous \"fiefdoms,\" and the positions they take on issues is usually aimed at protecting or expanding their turf.

Accepted Answer

D) tend to resist recruiting people who can offer fresh thinking and outside perspectives and typically refrain from looking outside the company for best practices, new managerial approaches, and innovative ideas.

Question 7

The hallmarks of a high performance corporate culture include   A) a shared willingness to adapt core values and ethical standards to fit the changing requirements of an evolving strategy, use of a balanced scorecard approach to tracking company performance, and a gung-ho approach to discovering best practices.   B) considerable political infighting that typically consumes a great deal of organizational energy, often with the result that what\'s best for the company takes a backseat to political maneuvering.   C) a \"can-do\" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.   D) charismatic managerial leadership, a lean management bureaucracy, and a must-be-invented-here mindset.   E) strong inclinations to adopt a wait-and-see posture, carefully analyze several alternative responses, learn from the missteps of early movers, and then move forward cautiously and conservatively with initiatives that are deemed safe.

Accepted Answer

C) a \"can-do\" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

Question 8

Adaptive cultures are characterized by such traits as   A) willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategiesâcompany personnel share a feeling of confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices.   B) orchestrating organizational changes in a manner that (1) demonstrates genuine care for the well-being of all key constituencies (customers, employees, shareowners, suppliers, and the communities where the company operates) and (2) tries to satisfy all their legitimate interests simultaneously.   C) a proactive approach to identifying issues, evaluating the implications and options, and quickly moving ahead with workable solutions.   D) a willingness to change operating practices and behaviors to adapt to new market and competitive conditions so long as the changes do not compromise core values and long-standing business principles   E) All of these.

Accepted Answer

E) All of these.

Question 9

Which of the following is not one of the leadership roles that senior managers have to play in pushing for good strategy execution and operating excellence?   A) Learning the obstacles in the path of good execution and clearing the way for progress   B) Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed   C) Staying on top what is happening and closely monitor progress.   D) Putting constructive pressure on the organization and initiate corrective actions.   E) Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.

Accepted Answer

B) Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed

Question 10

The task of top executives in making corrective adjustments includes   A) deciding when adjustments are needed and what adjustments to make.   B) knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture.   C) being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments.   D) deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly.   E) deciding how to identify the problems that need fixing.

Accepted Answer

A) deciding when adjustments are needed and what adjustments to make.

Question 11

Once a company\'s culture becomes ingrained, then the culture can be perpetuated by   A) establishing a code of ethics and encouraging company personnel to practice the advocated ethical standards in conducting company operations.   B) deliberately avoiding diversification or acquisition so as not to upset the internal cultural balance or risk a cultural clash with a newly-acquired company.   C) continuing with the same organization structure.   D) continuity of long-term direction and top management leadership.   E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture; systematic indoctrination of new members in the culture\'s fundamentals; frequent reiteration of core values by senior managers and group members; and regular ceremonies honoring members who display desired cultural behaviors.

Accepted Answer

E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture; systematic indoctrination of new members in the culture\'s fundamentals; frequent reiteration of core values by senior managers and group members; and regular ceremonies honoring members who display desired cultural behaviors.

Question 12

Companies with multinational operations or that have recently made new acquisitions typically have   A) unhealthy cultures.   B) multiple cultures or subcultures.   C) weak cultures.   D) adaptive cultures.   E) unstable cultures.

Accepted Answer

B) multiple cultures or subcultures.

Question 13

The characteristics of a strong culture company include all but which one of the following?   A) Deeply rooted values and operating approaches that \"regulate\" the conduct of a company\'s business and the climate of its workplace   B) A strong managerial commitment to conducting the company\'s business according to established traditions   C) Top executives with high ethical standards and personal integrity   D) Using core values and ingrained business principles as guides in making decisions   E) Frequent and dedicated efforts on the part of management to communicating values and business principles to organization members and explaining how they relate to the company\'s business environment

Accepted Answer

C) Top executives with high ethical standards and personal integrity

Question 14

A work environment where the culture is well-matched to the conditions and behaviors requisite for good strategy execution   A) is a powerful ally in managerial efforts to execute the chosen strategy because it provides company personnel with clear guidance regarding \"how we do things around here\" and produces significant peer pressures from co-workers to conform to culturally acceptable normsâas a consequence, culturally-approved behavior thrives and culturally-disapproved behavior gets squashed and even penalized.   B) signals the presence of a strongly embedded high-performance culture.   C) is nearly always a high-performance culture because a tight strategy-culture fit promotes dedicated employee efforts to identify and adopt the best possible work practices.   D) is an adaptive culture with strategy-supportive policies and procedures.   E) is generally a culture in which employees are empowered and there is considerable emphasis on teamwork.

Accepted Answer

A) is a powerful ally in managerial efforts to execute the chosen strategy because it provides company personnel with clear guidance regarding \"how we do things around here\" and produces significant peer pressures from co-workers to conform to culturally acceptable normsâas a consequence, culturally-approved behavior thrives and culturally-disapproved behavior gets squashed and even penalized.

Question 15

A tight culture-strategy match-up furthers a company\'s strategy execution effort in all but which one of the following ways?   A) A tight culture-strategy fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution.   B) A tight strategy-culture alignment produces a high-performing, adaptive work environment conducive to fast achievement of stretch performance targets.   C) A culture that encourages actions, behaviors, and work practices supportive of good strategy execution not only provides company personnel with clear guidance regarding \"how we do things around here\" but also produces significant peer pressure from co-workers to conform to culturally acceptable norms.   D) A deeply embedded culture tightly matched to the strategy aids the cause of competent strategy execution by making it far simpler to root out operating practices that are a misfit.   E) A culture imbedded with values and behaviors that facilitate strategy execution promotes strong employee identification with and commitment to the company\'s vision, performance targets, and strategyâas a consequence, employees feel genuinely better about their jobs and greater numbers of company personnel exhibit some passion about their work and exert their best efforts to execute the strategy and achieve performance targets.

Accepted Answer

B) A tight strategy-culture alignment produces a high-performing, adaptive work environment conducive to fast achievement of stretch performance targets.

Question 16

Which one of the following is not accurate as concerns changing a company\'s culture and aligning it with the requirements for strategic success?   A) Changing a company\'s culture and trying to align it with the requirements for strategic success are among the toughest management tasks and requires visible actions, both symbolic and substantive, to modify the culture.   B) Changing a company\'s culture and aligning it with the requirements for strategic success entails diagnosing which facets of the present culture are strategy-supportive and which are not.   C) Changing a company\'s culture and aligning it with the requirements for strategic success involves open and candid communication among all concerned about those aspects of the culture that have to be changed.   D) Changing a company\'s culture and trying to align it with the requirements for strategic success generally requires instituting a new values statement, adopting most of the traits of an adaptive culture, and retraining managers in the ways and means of convincing employees to adopt new behaviors.   E) Changing a company\'s culture and trying to align it with the requirements for strategic success nearly always requires that senior executives personally lead the culture-changing effort and may require replacing old-culture traditionalist managers with \"new breed\" managers.

Accepted Answer

D) Changing a company\'s culture and trying to align it with the requirements for strategic success generally requires instituting a new values statement, adopting most of the traits of an adaptive culture, and retraining managers in the ways and means of convincing employees to adopt new behaviors.

Question 17

Which one of the following is not a substantive culture-changing action that a company\'s managers can undertake to alter a problem culture?   A) Managements commitment to lead by example and attend company events to praise good deeds and expound on the merits of the new culture   B) Promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior   C) Appointing outsiders with the desired cultural attributes to high-profile positions   D) Screening all candidates for new positions carefully, hiring only those who appear to fit in with the new culture   E) Designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook

Accepted Answer

A) Managements commitment to lead by example and attend company events to praise good deeds and expound on the merits of the new culture

Question 18

A company\'s culture is typically grounded in and shaped by   A) the depth of its commitment to identifying and adopting best practices.   B) its strategic vision and mission statement.   C) whether top management is trying to ingrain cultural norms by means of mostly substantive actions or mostly symbolic actions.   D) its strategy and business model.   E) its dedication to displaying certain core values and the bar it sets for ethical standards.

Accepted Answer

E) its dedication to displaying certain core values and the bar it sets for ethical standards.

Question 19

Which of the following topics would least likely be a topic or element of a company\'s statement of its core values?   A) A dedication to superior customer service, top-notch quality, product innovation, and/or technological leadership   B) An expectation that company personnel will display creativity, exercise initiative, and accept responsibility   C) Prohibiting giving or accepting bribes, kickbacks, or gifts   D) A commitment to exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, Golden Rule behavior, respect for co-workers, and ethical behavior   E) A commitment to making the company a great place to work

Accepted Answer

C) Prohibiting giving or accepting bribes, kickbacks, or gifts

Question 20

Establishing a workable strategy-cultural fit in multinational and global companies   A) requires the development of extensive training programs for new employees working in non-host country markets.   B) can be accomplished by grounding the company\'s strategy in values and operating practices that travel well across country borders and that strike a chord with managers and workers in many different areas of the world, despite varying local customs and traditions.   C) requires using a Think-Local, Act-Local strategy so that the company\'s culture and ethical standards in each country can be matched to its strategy in that country.   D) first requires having cross-cultural employee committees work out a set of core values, ethical principles, and operating practices that can win the support of employees worldwide; then it is up to top management to ingrain the consensus core values, ethical principles, and operating practices.   E) entails making it clear to employees that there is no alternative to having a consistent culture across all countries where the company operates.

Accepted Answer

B) can be accomplished by grounding the company\'s strategy in values and operating practices that travel well across country borders and that strike a chord with managers and workers in many different areas of the world, despite varying local customs and traditions.

Question 21

Managers who are successful in leading the drive for good strategy execution and operating excellence:   A) are typically very effective communicators and have solid culture-building skills.   B) spend a lot of time coaching others how to be good company role models.   C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.   D) are good at delegating authority and responsibility to subordinates.   E) are good at knowing what policies and procedures it will take to promote good strategy execution.

Accepted Answer

C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.

Question 22

The strategic leadership task of putting constructive pressure on the organization to achieve good results and operating excellence:   A) requires extensive training of company personnel in how to \"be creative and come up with new ideas for improvement.\"   B) requires forceful and unrelenting top management actions to establish an adaptive culture.   C) entails setting stretch objectives, making champions out of the people who turn in winning performances, encouraging employees to use initiative and creativity in performing their work, and using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma quality to focus attention on continuous improvement.   D) entails creating an inspiring core values statement and making sure that would-be champions of change do not pursue maverick ideas that would be disruptive to the organization or troublesome to implement.   E) is often best accomplished by designating several high-profile company employees to act as a team of culture-change champions and charging them to find ways to ingrain continuous improvement as a cultural norm.

Accepted Answer

C) entails setting stretch objectives, making champions out of the people who turn in winning performances, encouraging employees to use initiative and creativity in performing their work, and using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma quality to focus attention on continuous improvement.

Question 23

If senior executives are really serious about enforcing high standards of ethical behavior, they probably need to do such things as   A) openly encouraging company personnel to report possible infractions via anonymous calls to a hotline or e-mails sent to a designated address.   B) having mandatory ethics training programs for employees.   C) conducting an annual audit of each manager\'s efforts to uphold ethical standards and requiring formal reports on the actions taken by managers to remedy deficient conduct.   D) requiring all employees to sign a statement annually certifying that they have complied with the company\'s code of ethics and making sure that ethical violations carry appropriate punishment, including dismissal if the violation is sufficiently egregious.   E) All of these.

Accepted Answer

E) All of these.

Question 24

The character of a company\'s culture is manifested in   A) the types of competitive strategy it employs, its financial and strategic objectives, and its strategic vision.   B) the core values and business principles that management preaches and practices, the traditions the company maintains, its policies and its ethical standards, and the character of its internal work environment.   C) the kind of organization structure it has and the kinds of internal support systems it has installed.   D) the demographic makeup of its work force and the particular countries and geographic areas where it operates.   E) All of the above are part of a company\'s culture.

Accepted Answer

B) the core values and business principles that management preaches and practices, the traditions the company maintains, its policies and its ethical standards, and the character of its internal work environment.

Question 25

Which of the following is not a factor of some importance in helping to define the character of a company\'s corporate culture?   A) The core values and business principles that management preaches and practices   B) The company\'s internal politics   C) The company\'s approach to people management   D) The behaviors that define \"how we do things around here\"   E) The strategic vision that management has committed to achieving

Accepted Answer

E) The strategic vision that management has committed to achieving

Question 26

Once a company\'s culture becomes ingrained, then one way to perpetuate the culture is by   A) establishing a code of ethics and encouraging company personnel to practice the advocated ethical standards in conducting company operations.   B) deliberately avoiding diversification or acquisition so as not to upset the internal cultural balance or risk a cultural clash with a newly-acquired company.   C) continuing with the same organization structure.   D) continuity of long-term direction (strategic vision and financial and strategic objectives).   E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture.

Accepted Answer

E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture.

Question 27

Which of the following is not particularly important in helping to perpetuate a company\'s culture?   A) Systematic indoctrination of new employees in the culture\'s fundamentals   B) Telling and retelling of company legends   C) Continuing with the same strategy, core competencies, and competitive capabilities   D) Constant management reiteration of core values and \"the way we do things around here\" in daily conversations and pronouncements   E) Visibly rewarding people who display cultural ideals and follow cultural norms and penalizing those who don\'t

Accepted Answer

C) Continuing with the same strategy, core competencies, and competitive capabilities

Question 28

A culture grounded in values, practices, and behavioral norms that match the behaviors required for good strategy execution   A) is a powerful ally in managerial efforts to execute the chosen strategy.   B) is a strong culture.   C) promotes strong employee efforts to identify and adopt new best practices.   D) has less need for strategy-supportive policies and procedures.   E) is generally a culture in which employees are empowered and there is considerable emphasis on teamwork.

Accepted Answer

A) is a powerful ally in managerial efforts to execute the chosen strategy.

Question 29

In strong culture companies, a tight strategy-culture alignment promotes management\'s strategy execution effort because   A) there\'s a built-in system of informal rules and peer pressures conducive to good strategy execution.   B) no changes in organization structure will be needed and no new policies and procedures will have to be put in place.   C) the culture promotes the very kinds of work habits, behaviors, values, and practices needed for proficient strategy execution.   D) management does not have to contend with weeding out unwanted subcultures.   E) Both A and C.

Accepted Answer

E) Both A and C.

Question 30

Strong company cultures are preferable to weak company cultures because   A) in weak-culture companies there is less likelihood of a tight culture-strategy fit.   B) they tend to be more ethical and more reflective of the right kinds of values.   C) weak cultures are more likely to possess unhealthy cultural characteristics.   D) strong cultures are a potent ally in executing strategy provided the behavioral norms ingrained in a strong culture are well-matched to the behaviors needed for good strategy execution.   E) strong cultures take less time to fix if they are out-of-sync with the requirements for good strategy execution.

Accepted Answer

D) strong cultures are a potent ally in executing strategy provided the behavioral norms ingrained in a strong culture are well-matched to the behaviors needed for good strategy execution.

Question 31

Which of the following is usually not a part of managerial efforts to root out unwanted cultural norms and behaviors and replace them with norms and behaviors that will help promote better strategy execution?   A) Instituting employee recognition programs (such as employee of the month awards and individual achievement awards) to call everyone\'s attention to behaviors that reflect the desired cultural norms   B) Developing a values statement   C) Preparing a detailed rules and procedure manual that all managers and employees can refer to in trying to practice the desired cultural norms and behavior   D) Replacing managers who insist on displaying old-culture behavior with managers who will act and function as new-culture role models.   E) Insisting that top managers lead by example; for instance, if the strategy entails being the low-cost producer, top managers might have inexpensive office decor, be given few if any executive perks, and be expected to visibly lead cost-cutting moves within their own areas of responsibility.

Accepted Answer

C) Preparing a detailed rules and procedure manual that all managers and employees can refer to in trying to practice the desired cultural norms and behavior

Question 32

A company\'s culture can be said to be strong and cohesive when   A) the company conducts its business according to a clear and explicit set of principles and values, management devotes considerable time to communicating these principles and values to organizational members and explaining how they relate to the company\'s business environment, and the principles and values are widely shared by company personnel.   B) employee turnover rates are low, most all employees are familiar with the company\'s values and ways of operating, and the organization structure has undergone no major changes for a number of years.   C) the CEO has exercised effective leadership for a number of years.   D) the company makes a conscious and ongoing effort to dismiss employees who disavow the company\'s values, principles, and cultural beliefs.   E) All of the above are signals of a strong-culture company.

Accepted Answer

A) the company conducts its business according to a clear and explicit set of principles and values, management devotes considerable time to communicating these principles and values to organizational members and explaining how they relate to the company\'s business environment, and the principles and values are widely shared by company personnel.

Question 33

Which one of the following is the most typical characteristic of a weak company culture?   A) A highly centralized managerial hierarchy and a big corporate bureacracy   B) A low commitment to high ethical standards and behaving in a socially responsible manner   C) Few strong traditions and few values and behavioral norms that are widely shared   D) Low employee morale and considerable employee skepticism about the merits of the company\'s strategy   E) Dissatisfaction on the part of company personnel with the core values that senior management is advocating.

Accepted Answer

C) Few strong traditions and few values and behavioral norms that are widely shared

Question 34

A corporate culture founded on ethical business principles and socially approved values   A) virtually guarantees that the company will have a highly favorable public image and reputation.   B) has a favorable impact on a company\'s long-term strategic success.   C) does more to detract from a company\'s chances for strategic success and market leadership than to help it.   D) gives validity to a company\'s core values and helps ingrain them in the company\'s culture.   E) is generally viewed as irrelevant window dressing and a nice public relations gesture by both customers and suppliers.

Accepted Answer

B) has a favorable impact on a company\'s long-term strategic success.

Question 35

Instilling and ingraining a company\'s values statement and code of ethics in company policies, practices, and actual conduct does not generally entail such actions as   A) promptly dismissing any employee who violates the ethics code or disavows company values.   B) requiring all employees to sign a statement annually certifying that they have complied with the company\'s code of ethics.   C) communicating the values and ethics code to all employees, explaining compliance procedures, and making the values statement and the code of ethics an integral part of employee training and educational programs.   D) the CEO openly and unequivocally endorsing the values and ethics code and leading the enforcement of ethical standards.   E) screening out job applicants who do not exhibit compatible character traits.

Accepted Answer

A) promptly dismissing any employee who violates the ethics code or disavows company values.

Question 36

Exercising strategic leadership does not include which one of the following?   A) Pushing corrective actions to improve strategy execution and achieve the targeted results   B) Displaying ethical integrity and leading social responsibility initiatives   C) Keeping the organization focused on operating excellence   D) Steering resources into strategy-critical activities and making sure that policies and procedures are supportive of effective strategy execution   E) Staying on top of what is happening, monitoring progress, ferreting out issues, and learning what obstacles lay in the path of good strategy execution

Accepted Answer

D) Steering resources into strategy-critical activities and making sure that policies and procedures are supportive of effective strategy execution

Question 37

Managers who are successful in exercising good strategic leadership   A) are wise decision-makers and very effective communicators.   B) spend a lot of time coaching others how to be good company role models.   C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.   D) are good at delegating authority and responsibility to subordinates.   E) are good at knowing what policies and procedures it will take to promote good strategy execution.

Accepted Answer

C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.

Question 38

The strategic leadership task of keeping the internal organization focused on operating excellence   A) requires regularly reminding and exhorting employees to \"be creative and come up with new ideas for improvement.\"   B) requires forceful top management actions to implement benchmarking, TQM or Six Sigma programs, and continuous change efforts.   C) usually requires supporting people who are eager for a chance to try turning their ideas into better ways of operating.   D) making sure that would-be champions of change do not pursue maverick ideas that would be disruptive to the organization or troublesome to implement.   E) empowering a cadre of culture-change champions to promote constant change and adaptation as a cultural norm.

Accepted Answer

C) usually requires supporting people who are eager for a chance to try turning their ideas into better ways of operating.

Question 39

Which of the following is not a part of top management\'s job (especially the CEO) of leading the effort to operate the company\'s business in an ethically-principled fashion?   A) The CEO and other senior executives must set an excellent example in their own ethical behavior and demonstrating integrity in their actions and decisions.   B) The company\'s CEO should strongly encourage board members to develop a social responsibility strategy for the company to pursue.   C) The CEO and those around the CEO must visibly and frequent declare unequivocal support of the company\'s ethics code and take an uncompromising stand on expecting all company personnel to conduct themselves in an ethical fashion at all times.   D) The CEO and other senior executives must be prepared to make the hard call by removing people from key positions or terminating them when they are guilty of ethics violations and by reprimanding those who are lax in monitoring and enforcing ethics compliance.   E) Top management must insist that company personnel be educated about what is ethical and what is not

Accepted Answer

B) The company\'s CEO should strongly encourage board members to develop a social responsibility strategy for the company to pursue.

Question 40

A company\'s corporate culture is best defined and identified by  A. the strategy and business model that a company has adopted.  B. the character of a company\'s internal work climate and personalityâas shaped by the company\'s core values, business principles, traditions, ingrained behaviors of \"how we do things around here,\" and style of operating.  C. its statement of core values and its code of ethics.  D. its internal politics.   E. the traditions that company executives are committed to maintaining.

Accepted Answer

B. the character of a company\'s internal work climate and personalityâas shaped by the company\'s core values, business principles, traditions, ingrained behaviors of \"how we do things around here,\" and style of operating.

Question 41

The character of a company\'s corporate culture is a product of  A. the core values and business principles that management preaches and practices.  B. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company\'s values, business practices, and traditions.  C. the company\'s approach to people management and the \"chemistry\" and \"personality\" that permeates its work environment.  D. the work practices and behaviors that define \"how we do things around here.\"  E. All of these.

Accepted Answer

E. All of these.

Question 42

Which one of the following is not a fundamental part of a company\'s culture?  A. The work practices and behaviors that define \"how we do things around here\"  B. The company\'s standards of what is ethically acceptable and what is not, along with the \"chemistry\" and \"personality\" that permeates its work environment  C. The core values and business principles that management preaches and practices  D. The company\'s strategic vision, strategic intent, and strategy   E. The legends and stories that people repeat to illustrate and reinforce the company\'s core values, traditions, and business practices

Accepted Answer

D. The company\'s strategic vision, strategic intent, and strategy

Question 43

A company\'s culture is in part defined and identified by  A. a company\'s internal work climate and personalityâas shaped by its core values, work practices, traditions, and ingrained behaviors that define \"how we do things around here.\"  B. whether it employs a low-cost provider, best-cost provider, differentiation or focused strategy.  C. whether decision-making is centralized or decentralized and whether it is a single-business company or a diversified company.  D. how strongly its strategic vision is linked to the company\'s core values.   E. whether it is a well-known industry leader, an up-and-coming company that is gaining market share, a middle-of-the-pack company unlikely to move up in the industry ranks, or an industry also-ran that may or may not survive.

Accepted Answer

A. a company\'s internal work climate and personalityâas shaped by its core values, work practices, traditions, and ingrained behaviors that define \"how we do things around here.\"

Question 44

A company\'s culture is not manifested in which one of the following?  A. Its approaches to people management and problem-solving and in the \"chemistry\" and \"personality\" that permeates the work environment.  B. Its revered traditions and the stories that get told over and over to illustrate the importance of certain values.  C. The peer pressures that exist to do things in particular ways and conform to expected norms.  D The company\'s approach to people management and its official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel.  E. Its strategic vision, strategic intent, and strategy.

Accepted Answer

E. Its strategic vision, strategic intent, and strategy.

Question 45

Which one of the following is not something to look for in identifying a company\'s culture?  A. The spirit and character that pervades the work climate  B. Its resource strengths, core competencies, and competitive capabilities  C. The company\'s revered traditions and oft-repeated stories about \"heroic acts\" and \"how we do things around here\"  D. The company\'s approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel  E. The values, business principles, and ethical standards that management preaches and practices

Accepted Answer

B. Its resource strengths, core competencies, and competitive capabilities

Question 46

Which one of the following is something to look for in identifying a company\'s culture?  A. The spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices  B. The company\'s track record in meeting or beating its financial and strategic performance targets  C. The make-up of the company\'s value chain  D. Its strategic intent and competitive strategy  E. Its resource strengths, core competencies, and competitive capabilities

Accepted Answer

A. The spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

Question 47

A company\'s culture is typically grounded in and shaped by  A. its core competencies and competitive capabilities.  B. its long-term strategic success or lack thereof.  C. the degree to which top management is committed to achieving market leadership.  D. its core values and the bar it sets for ethical standards.  E. the company\'s strategic intent and its reward system.

Accepted Answer

D. its core values and the bar it sets for ethical standards.

Question 48

A company\'s values statement and code of ethics  A. communicate expectations of how employees should conduct themselves in the workplace.  B. helps prevent it from coming across to customers and the general public as greedy.  C. serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical.  D. are the most important factors determining its reputation with customers, suppliers, employees, shareholders, and society at large.  E. should always be made a prominent and visible part of the company\'s strategic intent and strategy.

Accepted Answer

A. communicate expectations of how employees should conduct themselves in the workplace.

Question 49

At companies where executives believe in the merits of practicing the values and ethical standards that have been espoused  A. the executives have usually personally written the statement of core values and the code of ethics.  B. the company\'s pursuit of higher profits is tempered, so that the company will not come across to customers and the general public as greedy.  C. the company\'s chances for strategic success and market leadership are substantially reduced because company personnel are hesitant to engage in business practices that are unethical.  D. the stated core values and ethical principles are the cornerstones of the corporate culture.  E. the core values and ethical standards are made a prominent and visible part of the company\'s strategic intent and strategy.

Accepted Answer

D. the stated core values and ethical principles are the cornerstones of the corporate culture.

Question 50

A corporate culture founded on ethical business principles and socially approved values  A. virtually guarantees that a company will be (or soon become) the acknowledged industry leader because of the ethical and socially approved manner in which its business is being conducted.  B. doesn\'t necessarily impact a company\'s long-term strategic success favorably or unfavorably.  C. does more to detract from a company\'s chances for strategic success and market leadership than to help it.  D. is a positive force underlying a company\'s long-term success and reduces the likelihood of reputation-damaging behavior on the part of a company\'s employees.  E. is seldom more than window-dressing and is generally regarded by customers, suppliers, employees, shareholders, and society at large as nothing more than good public relations.

Accepted Answer

D. is a positive force underlying a company\'s long-term success and reduces the likelihood of reputation-damaging behavior on the part of a company\'s employees.

Question 51

The two culture-building roles of a company\'s stated values and ethical standards are to  A. communicate the company\'s good intentions and establish a corporate conscience.  B. confirm the integrity of company personnel and signal the above-board nature of the company\'s business principles and operating methods.  C. steer company personnel toward doing the right thing and convince outsiders that the company is socially responsible.  D. help create a work climate where company personnel share common and strongly held convictions about how the company\'s business is to be conducted and to signal employees that they are to display the company\'s core values in their actions and uphold the company\'s ethical standards.  E. provide a basis for designing culture-supportive incentive compensation plans.

Accepted Answer

D. help create a work climate where company personnel share common and strongly held convictions about how the company\'s business is to be conducted and to signal employees that they are to display the company\'s core values in their actions and uphold the company\'s ethical standards.

Question 52

Codes of ethics and statements of core values  A. are the single most effective means of enforcing ethical behavior and cultural norms, provided they are written down and every employee is given a copy.  B. serve as cornerstones of the corporate culture at companies where executives are truly committed to practicing the values and ethical standards that have been espoused.  C. are the best benchmarks for judging whether the corporate culture is deeply planted or not.  D. need to be personally written by the CEO in order to be taken seriously by employees.  E. should always be given top priority emphasis in every employee training program a company conducts.

Accepted Answer

B. serve as cornerstones of the corporate culture at companies where executives are truly committed to practicing the values and ethical standards that have been espoused.

Question 53

Which of the following topics would least likely be contained in a company\'s statement of its core values?  A. A commitment to having fun and creating a fun work environment  B. A commitment to excellence and results  C. Mandating full compliance with all laws and regulations  D. Exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, Golden Rule behavior, respect for co-workers, and ethical behavior  E. Exhibiting teamwork and cooperative attitudes

Accepted Answer

C. Mandating full compliance with all laws and regulations

Question 54

Which of the following topics would least likely be contained in a company\'s code of ethics?  A. Prohibiting giving or accepting bribes, kickbacks, or gifts  B. Expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest  C. Not dealing with suppliers that employ child labor or engage in other unsavory practices  D. Committing to a no-layoff policy and to adequate funding of employee retirement programs  E. Avoiding use of company assets, resources, and property for personal or other inappropriate purposes

Accepted Answer

D. Committing to a no-layoff policy and to adequate funding of employee retirement programs

Question 55

A company\'s stated core values and ethical principles  A. are important because of their role in ensuring that company executives will not engage in unethical behavior or behave in a manner that is contrary to the company\'s core values.  B. are typically tightly linked to its strategic vision and strategy.  C. are the best indicators of a company\'s social responsibility strategy.  D. help create a work climate where company personnel share common and strongly-held convictions about how the company\'s business is to be conducted and signal employees that they are expected to display the core values in their actions and behaviors and uphold the company\'s ethical standards.  E. are strictly enforced in strong culture companies and weakly enforced in weak culture companies.

Accepted Answer

D. help create a work climate where company personnel share common and strongly-held convictions about how the company\'s business is to be conducted and signal employees that they are expected to display the core values in their actions and behaviors and uphold the company\'s ethical standards.

Question 56

Which of the following is not a technique that companies employ to hammer in and ingrain core values and ethical standards?  A. Incorporating the statement of values and the code of ethics into orientation programs for new employees and training courses for managers and employees  B. Making the display of core values and ethical principles a big factor in evaluating each person\'s job performance  C. Encouraging everyone to use their influence in helping enforce observance of core values and ethical standards  D. Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles  E. Downplaying ethics enforcement procedures

Accepted Answer

E. Downplaying ethics enforcement procedures

Question 57

To deeply ingrain core values and ethical standards, a company must  A. provide every employee with a copy of the company\'s statement of core values and code of ethics.  B. turn the espoused core values and ethical standards into strictly enforced cultural norms.  C. encourage company personnel to observe the core values and ethical standards.  D. give big pay raises and bonuses to individuals and groups who display the company\'s core values and observe its ethical standards.  E. fire employees who do not live up to the core values or who are found guilty of violating the code of ethics.

Accepted Answer

B. turn the espoused core values and ethical standards into strictly enforced cultural norms.

Question 58

Which of the following is not an integral part of transforming core values and ethical standards into cultural norms?  A. Instituting procedures for enforcing ethical standards  B. Immediately dismissing any employee caught violating the company\'s code of ethics or disregarding core values  C. Screening out job applicants who do not exhibit compatible character traits  D. Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles  E. Having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and internal communications to employees

Accepted Answer

B. Immediately dismissing any employee caught violating the company\'s code of ethics or disregarding core values

Question 59

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?  A. Communicating the company\'s good intentions  B. Validating the integrity and above-board nature of the company\'s business principles and operating methods  C. Steering company personnel toward both doing things right and doing the right thing  D. Establishing a corporate conscience  E. None of these.

Accepted Answer

E. None of these.

Question 60

Frequently, a significant part of a company\'s culture is captured in  A. the company\'s strategic vision and strategic intent.  B. the stories that get told over and over again to illustrate to newcomers the importance of certain values and the depth of commitment that various company personnel have displayed.  C. how much stretch is built into the company\'s financial and strategic performance targets.  D. the vigor and enthusiasm with which it engages in benchmarking and seeks out best practices.  E. the company\'s track record in taking market share away from rivals.

Accepted Answer

B. the stories that get told over and over again to illustrate to newcomers the importance of certain values and the depth of commitment that various company personnel have displayed.

Question 61

Once established, company cultures can be perpetuated by  A. systematic indoctrination of new members in the culture\'s fundamentals, frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.  B. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel.  C. making adherence to cultural beliefs and cultural norms the defining features of the company\'s strategic vision.  D. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don\'t with budget cuts.  E. making cultural values and beliefs the centerpiece of the company\'s competitive strategy.

Accepted Answer

A. systematic indoctrination of new members in the culture\'s fundamentals, frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.

Question 62

Which one of the following is not particularly helpful in perpetuating a company\'s culture?  A. Systematic indoctrination of new members in the culture\'s fundamentals.  B. Frequent reiteration of core values by senior managers and group members.  C. Visibly rewarding those who display cultural norms and penalizing those who don\'t.  D. Maintaining a consistent strategic vision and strategic intent over time.  E. Telling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors.

Accepted Answer

D. Maintaining a consistent strategic vision and strategic intent over time.

Question 63

Which one of the following statements about a company\'s culture is false?  A. The more new employees a company is hiring the more important it becomes to screen job applicants every bit as much for how well their values, beliefs, and personalities match up with the culture as for their technical skills and experience.  B. The longer people stay at an organization, the more that they come to embrace and mirror the corporate cultureâtheir values and beliefs tend to be molded by mentors, fellow workers, company training programs, and the reward structure.  C. A company\'s culture, once established, tends to remain stable and entrenched over time.  D. Typically, key elements of the culture originate with a founder or certain strong leaders who articulated them as a set of business principles, company policies, operating approaches, and ways of dealing with employees, customers, vendors, shareholders, and local communities where the company has operations.  E. Company cultures can be perpetuated by the telling and retelling of company legends, by regular ceremonies honoring members who display desired cultural behaviors, and by visibly rewarding those who display cultural norms and penalizing those who don\'t.

Accepted Answer

C. A company\'s culture, once established, tends to remain stable and entrenched over time.

Question 64

Companies, especially ones with multinational operations and/or newly acquired businesses, typically have  A. strong multiple cultures (or subcultures) rather than a single culture.  B. multiple cultures (or subcultures) rather than a single culture.  C. weak cultures.  D. adaptive cultures.  E. low performance cultures.

Accepted Answer

B. multiple cultures (or subcultures) rather than a single culture.

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