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A company's culture is in part defined and identified by:


A) its internal work climate and personality-as shaped by its shared values, work practices, traditions, and ingrained attitudes and 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 its 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.

F) B) and E)
G) All of the above

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Which of the following is NOT an example of leadership actions or managerial practices taken to foster a results-oriented,high-performance culture?


A) Treating employees as valued partners
B) Utilizing people-management practices to build morale and foster pride
C) Setting stretch objectives and clearly communicating expectations for reaching targets
D) Using motivational techniques and compensation incentives to inspire employees
E) Following a must-be-invented-here mindset

F) B) and D)
G) D) and E)

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Which 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 standard 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 culture strategy
E) The legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices

F) A) and E)
G) B) and D)

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Which of the following contribute to the emergence and sustainability of a strong culture?


A) Senior executives that walk the talk of high ethical standards
B) A strong emphasis on developing innovative core competencies and competitive capabilities
C) A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms
D) Centralized decision making and strict enforcement of company policies
E) A long-standing commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and procedures

F) B) and D)
G) B) and C)

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Changing a problem culture:


A) is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.
B) is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted.
C) is best done by selecting a team of key employees to lead the culture change effort.
D) requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture.
E) can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

F) B) and C)
G) B) and D)

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When trying to change a problem culture,management should undertake such steps as:


A) selecting a team of key employees to lead the culture change effort and design a plan for cultural change.
B) identifying facets of the present culture that are supportive of good strategy execution and which ones are not and then specifying what new actions, behaviors, and work practices are needed in the new culture to improve performance.
C) drawing up an action plan to change the present culture and then persuading company personnel why this plan of action is good and will be successful.
D) conducting an employee survey to determine the organization's cultural norms and what company personnel like and dislike about the current culture.
E) employing a consultant with expertise in culture change and following his or her advice on how to proceed.

F) A) and B)
G) A) and C)

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A company's corporate culture is BEST defined and identified by:


A) the integration of the strategy and business model that a company has adopted.
B) the company's shared values, ingrained attitudes, core beliefs and company traditions that determine norms of behavior, accepted work practices of "how we do things around here," and styles of operating.
C) its ingrained statement of core values and its internal code of ethics.
D) its internal politics that influence the dedication to ethical conduct and accepted work practices.
E) the formal traditions that company executives are committed to maintaining to ensure the company strategy-supportive culture is change resistant.

F) C) and D)
G) A) and C)

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In leading the push for proficient strategy execution and operating excellence,the roles of top-level managers include all of the following EXCEPT:


A) being out in the field and seeing how well operations are going.
B) delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.
C) gathering information firsthand and gauging the progress being made.
D) learning the obstacles in the path of good execution and clearing the way for progress.
E) holding periodic ceremonies to honor people who excel in displaying the company values and ethical principles.

F) B) and D)
G) C) and D)

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Which of the following is NOT a factor that makes a politicized internal environment so unhealthy?


A) The political infighting that consumes a great deal of organizational energy
B) The continuous empire-building that is a common practice as managers pursue their own agendas
C) The building of autonomous fiefdoms that pervades the work climate
D) The overabundance of political maneuvering that takes away from efforts to execute strategy
E) The taking of positions on issues

F) A) and E)
G) B) and E)

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What are the five traits of unhealthy cultures?

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Five particularly unhealthy cultural tra...

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Once established,company cultures can be perpetuated by:


A) relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as 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.

F) A) and B)
G) A) and C)

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A company's corporate culture is grounded in and shaped by its core values and ethical standards and drives a shared commitment to achieve the firm's strategic and financial objectives.True or false? Justify your answer.

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The foundation of a company's corporate ...

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All of the following are examples of leadership actions or managerial practices taken to foster a results-oriented,high-performance culture EXCEPT:


A) treating employees as individuals with no regard for their rank or contributions.
B) building morale and fostering pride.
C) setting stretch objectives and clearly communicating expectations for reaching targets.
D) using motivational techniques and compensation incentives to inspire employees.
E) using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma to focus attention on continuous improvement.

F) A) and D)
G) A) and B)

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What are the distinctive features of high-performance corporate cultures?

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In high-performance cultures where the s...

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Leading the drive for good strategy execution and operating excellence calls upon senior executives to:


A) be very personable, effective communicators, and skilled in the empowerment of company personnel.
B) personally lead the implementation process and drive the pace of progress.
C) delegate little to subordinates and, instead, personally exert a strong, highly visible influence on the company's approaches to strategy execution.
D) be creative in establishing policies and procedures that will instill high standards of operating excellence.
E) be charismatic, decisive decision-makers, and make inspiring speeches at company events.

F) None of the above
G) A) and B)

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Which of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture?


A) Identify aspects of the present culture that pose problems.
B) Revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural changes.
C) Empower employees to adopt whatever new work practices they believe will be an improvement.
D) Make a concerted effort to turn the company's core competencies into distinctive competencies.
E) Shift from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.

F) B) and E)
G) D) and E)

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Which of the following managerial practices is NOT used to lead the effort to foster a results-oriented,high-performance culture?


A) Using empowerment to help create a fully engaged workforce
B) Making champions out of the people who spearhead new ideas and/or turn in winning performances
C) Celebrating individual, group, and company successes
D) Treating employees as valued partners in the drive for operating excellence and good business performance
E) Placing a premium on not making mistakes, prompting managers to lean toward safe, conservative options intended to maintain the status quo

F) A) and B)
G) A) and C)

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In adaptive corporate cultures:


A) the prevailing view is that the best way to look out for the interests of employees is to change core values and cultural norms in whatever ways are needed to fit the changing requirements of an evolving strategy.

B) company personnel are amenable to changing policies and operating practices as long as the core elements of the company's strategic vision and strategy remain intact.

C) members are willing to embrace a proactive approach to trying new ideas, altering operating practices, and changing pieces of the strategy provided it doesn't imperil their job security, entail cuts in compensation, or require different work practices.

D) there's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders.

E) there is little need for policies and procedures because group members willingly accept experimentation and innovation.

F) A) and B)
G) A) and C)

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Which of the following statements about a weak company culture is true?


A) In a weak-culture company, there is virtually no employee support for the company's strategic vision and strategy.
B) Weak-culture companies do not usually have a code of ethics and have little regard for high ethical standards.
C) Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy.
D) Weak-culture companies are fairly receptive to change and to people who champion new ways of doing things.
E) In a weak-culture company, there is usually a dearth of intellectual capital and inattention to building core competencies.

F) C) and E)
G) C) and D)

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Symbolic culture changing actions include all of the following EXCEPT:


A) leading by example.
B) reinforcing and celebrating culture-change successes.
C) praising individuals and groups that exemplify the new desired behavior.
D) ensuring top executives' actions match their rhetoric.
E) revising policies and procedures in ways that will help drive cultural change.

F) A) and B)
G) B) and E)

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