MGMT chap 8 Quiz EXAM 2

stability and control A hierarchy culture has an internal focus and values stability and control over flexibility.

observable artifacts At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

• explicitly stated values and norms preferred by an organization Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers.

embed company culture Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms; 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems and procedures.

organization According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the entire StarKist Tuna Co.

• nonprofit organization A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

the vertical hierarchy The vertical hierarchy is also known as the chain of command.

division of labor Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

hierarchy of authority The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

span of control The span of control, or span of management, refers to the number of people reporting directly to a given manager.

True A system of shared beliefs and values that develops within an organization and guides the behaviour of its members is known as the company's culture or organizational culture.

False Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals.

False A hierarchy culture has an internal focus and values stability and control over flexibility. An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products (new drugs) by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done (drug research).

False Organizational culture appears as three layers: (1) observable artifacts, (2) espoused values, and (3) basic assumptions.

True Embedding organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems & procedures.

False According to Chester I. Barnard's classic definition, an organization is a system of consciously coordinated activities or forces of two or more people.

True Mutual-benefit organizations are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations). Nonprofit organizations are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft, Dell Computer. Delta Airlines).

False Oakland, California, productivity expert Odette Pollar proposed that "To do more in a day, you must do less—not do everything faster."

False An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

True When managers from different functional divisions are brought together in cross-functional teams to solve particular problems, the barriers between the divisions break down. The focus on narrow divisional interests yields to a common interest in solving the problems that brought them together.

The correct answer is "D". Page: 240 LO: 1 Difficulty: Moderate AACSB: 6, 9 BT: Knowledge

The correct answer is "B" - nonprofit

The correct answer is "A" - functional.