Chapter 06 - Organizational Cultures and Diversity

Chapter 06
Organizational Cultures and Diversity

True / False Questions

1. Regardless of the external environment or their national culture, managers and employees
must understand and follow their organization's culture to be successful.
True False

2. Organizational culture is complex and cannot be defined as a set of norms regulating the
behavior of the employees of a firm.
True False

3. Organizational culture is a pattern of shared basic assumptions that are developed by a

group as it learns to cope with problems of external adaptation and internal integration; and it
is taught to new members as the correct way to perceive, think and feel in relation to these
problems.
True False

4. Hofstede's research found that the national cultural values of employees have an
insignificant impact on their organizational performance and these values are easily changed
by the organization.
True False

5. Andre Laurent's research found that cultural differences actually are more pronounced
among foreign employees working within the same multinational organization than among
personnel working for firms in their native lands.
True False

6. It has been found that when cultural comparisons were made between different subsidiaries
of an MNC, nearly identical cultures typically existed within each one.
True False

6-1
Chapter 06 - Organizational Cultures and Diversity

7. Organizational cultures of MNCs are shaped by a number of factors, including the cultural
preferences of the leaders and employees.
True False

8. Under this Eiffel Tower culture, jobs are well defined, employees know what they are
supposed to do and everything is coordinated from the top.
True False

9. Guided missile organizational cultures generally are made up of cooperative project teams.
True False

10. Incubator culture is characterized by a strong emphasis on the hierarchy and orientation to
the person.
True False

11. As firms began exporting to foreign clients, they became what Alder called "international
corporations".
True False

12. Among international firms, which focus on exporting and producing abroad, cultural
diversity has a relatively weak impact on their external relationships with potential buyers and
foreign employees.
True False

13. An example of a token group would be a group of male German bankers who are
forecasting the economic outlook for a foreign investment.
True False

6-2
Chapter 06 - Organizational Cultures and Diversity

14. A bicultural group is a group in which two or more members represent each of two
distinct cultures, such as four Mexicans and four Canadians who have formed a team to
investigate the possibility of investing in a venture.
True False

15. As the diversity of a group increases, the likelihood of all members perceiving things in
the same way increases sharply.
True False

16. An example of a token group is a group of three American, three German, three British
and three Japanese managers who are looking into oil exploration opportunities in Russia.
True False

17. One main benefit of diversity is the generation of more and better ideas.
True False

18. A disadvantage of diversity is that it often leads to groupthink, which is social conformity
and pressures on individual members of a group to conform and reach consensus.
True False

19. Multiculturally diverse teams have a great deal of potential to be either very effective or
very ineffective.
True False

20. In the entry stage of group development, the focus is typically on decision making and
implementation.
True False

6-3
Chapter 06 - Organizational Cultures and Diversity
Multiple Choice Questions

21. To ensure good communication in global teams, managers should do all of the following
except
A. Hold an initial meeting in which all members introduce themselves and describe their jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to
avoid misunderstandings
D. Put the details of the project in writing

22. To build trust among virtual team members, managers should

A. Deep-six the egos and be friendly
B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments
D. Keep the door open except when on private calls

23. Which of the following is not an advantage of virtual teams?

A. They can reduce problems associated with personality conflicts
B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work

24. When individuals join a multinational corporation they bring their national culture, which
greatly affects all the following except:
A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors

6-4
Chapter 06 - Organizational Cultures and Diversity

25. PepsiCo, personnel are expected to be cheerful, positive, enthusiastic and have committed
optimism. This is an example of:
A. Being influenced by the external environment
B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values

26. _____ is a pattern of basic assumptions that are developed by a group as it learns to cope
with problems of external adaptation and internal integration and that are taught to new
members as the correct way to perceive, think and feel in relation to these problems.
A. Organizational culture
B. Organizational learning
C. Organizational change
D. Organizational structure

27. Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations and intergroup cooperation, are characteristics associated
with organizational:
A. Ethics
B. Ambience
C. Culture
D. Structure

28. Observed behavioral regularities are typified by the following except:

A. Common language
B. Terminology
C. Customer relations
D. Rituals

6-5
Chapter 06 - Organizational Cultures and Diversity

29. Organizational climate is reflected by:

A. The degree of cooperation between management and employees
B. Common language, terminology and rituals
C. High product and service quality
D. The way participants interact with each other

30. Norms are reflected by things such as:

A. Common language, terminology and rituals
B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level management

31. A widely held belief that has not been found to be accurate is that organizational culture:
A. Tends to erase the impact of national culture
B. Tends to be affected by national culture
C. Cannot easily change the cultural values employees bring to the workplace
D. Is different in different subsidiaries

32. When UpJohn Company merged with Pharamcia AB, problems emerged forcing the
partners to meet and talk about their cultural differences. This is an example which illustrates
that:
A. Organizational culture clashes often occur when partners do not fully understand the
culture of the new partner
B. There often are substantial differences between the organizational cultures of different
subsidiaries and of course, this can cause coordination problems
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want one
culture influencing the other

6-6
Chapter 06 - Organizational Cultures and Diversity

33. Which of the following shows the identity dimension of corporate culture?
A. To put the demands of the job before the needs of the individual
B. To put the needs of the individual before the needs of the job
C. To identify with and uphold the expectations of the employing organizations
D. To strive for accuracy and attention to detail

34. Which of the following would be associated with the dimension of pragmatic conduct?
A. To put the expertise and standards of the employing organization first
B. To put the demands and expectations of the customers first
C. To comply with clear and definite systems
D. To pursue clear aims and objectives

35. The United Kingdom shows the following characteristics regarding the corporate
dimension:
A. Administrative
B. Industrial
C. Pragmatic
D. Commercial

36. ‘Dirigiste' is used to describe the _____ dimension.

A. Economics
B. Philosophical
C. Cultural
D. Structural

6-7
Chapter 06 - Organizational Cultures and Diversity

37. Which of the following sets of characteristics is typical of French negotiators?

A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes
negotiations, which are characterized by an exchange of grand ideas and general principles,
social competence is very important
D. Look for a meeting of minds, intellectual competence is very important and a contract is
viewed as a well-reasoned transaction

38. There are three aspects of organizational functions that seem to be especially important in
determining an MNC's organizational culture. These are:
A. The general views that employees hold about the MNC's purpose, destiny, goals and their
places in them; the age of the organization; and the degree of cultural diversity among the
members of the organization
B. The general relationship between the managers and rank-and-file employees in the
organization; the degree of cultural diversity among the members of the organization; and the
hierarchical system of authority that defines the roles of managers and subordinates
C. The degree of cultural diversity among the members of the organization; the age of the
organization; and the strength of the organization's leadership
D. The general relationship between the employees and their organization; the hierarchical
system of authority that defines the roles of managers and subordinates; and the general views
that employees hold about the MNC's purpose, destiny, goals and their places in them

6-8
Chapter 06 - Organizational Cultures and Diversity

39. The following are the steps outlined by Numeroff and Abrahams used during mergers and
acquisitions except:
A. Establishing the purpose, goal and focus of the merger
B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication

40. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
person.
A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile

41. _____ culture is a project-oriented culture.

A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator

42. Trompenaars found that a(n) _____ organizational culture is common in countries such as
Turkey, Pakistan, Venezuela, China, Hong Kong and Singapore.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

43. When it works well, the _____ culture can catalyze and multiply the energies of the
personnel and appeal to their deepest feelings and aspirations.
A. Incubator
B. Guided missile
C. Eiffel Tower
D. Family

6-9
Chapter 06 - Organizational Cultures and Diversity

44. The family culture is foreign to most in:

A. China
B. United States
C. Venezuela
D. Turkey

45. _____ culture is characterized by a strong emphasis on the hierarchy and orientation to the
task.
A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower

46. Under a(n) _____ culture, jobs are well defined, employees know what they are supposed
to do and everything is coordinated from the top.
A. Guided missile
B. Family
C. Eiffel Tower
D. Incubator

47. Eiffel Tower cultures are most commonly found in:

A. Northwestern European countries, such as Germany, Denmark and France
B. Asian countries, such as Taiwan, South Korea and Japan
C. South American countries, such as Brazil, Argentina and Chile
D. North Atlantic countries, such as England, Ireland and Canada

48. _____ culture is characterized by a strong emphasis on equality in the workplace and
orientation to the task.
A. Guided missile
B. Family
C. Incubator
D. Eiffel Tower

6-10
Chapter 06 - Organizational Cultures and Diversity

49. The _____ organizational culture is oriented to work, which typically is undertaken by
teams or project groups.
A. Family
B. Incubator
C. Guided missile
D. Eiffel Tower

50. A(n) _____ organizational culture is characterized by a strong emphasis on equality and
orientation to the person.
A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile

51. _____ cultures often create environments where participants thrive in an intense,
emotional commitment to the nature of the work.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

52. Change in the incubator culture is:

A. Slow and calculated
B. Almost non-existent
C. Moderate and methodological
D. Fast and spontaneous

53. Which of the following describes the "relationships between employees" in a family
corporate culture?
A. Diffuse relationships to organic whole to which one is bonded
B. Specific role in mechanical system of required interaction
C. Specific tasks in cybernetic system targeted on shared objectives
D. Diffuse, spontaneous relationships growing out of shared creative process

6-11
Chapter 06 - Organizational Cultures and Diversity

54. Which of the following describes the "attitude toward authority" in an Eiffel Tower
corporate culture?
A. Status is achieved by individuals exemplifying creativity and growth
B. Status is achieved by project group members who contribute to a targeted goal
C. Status is ascribed to superior roles that are distant yet powerful
D. Status is ascribed to parent figures that are close and powerful

55. Which of the following describes the "ways of thinking and learning" in a guided missile
culture?
A. Process oriented, creative, ad hoc, inspirational
B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical and rationally efficient
D. Intuitive, holistic, lateral and error-correcting

56. As firms begin exporting to foreign clients and become what Alder calls "international
corporations", they must:
A. Increase the standardization of products and services
B. Adapt their products but not their approach to those of the local market
C. Adapt their approach and products to those of the local market
D. Adapt their approach but not their products to those of the local market

57. The following deal with largest, global markets:

A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations

58. As companies become what Alder calls "multinational firms", they often find that _____
tends to dominate all other considerations and the direct impact of culture may lessen
slightly.
A. Quality
B. Serviceability
C. Durability
D. Price

6-12
Chapter 06 - Organizational Cultures and Diversity

59. According to Adler, the primary orientation of a global firm is:

A. Strategy
B. Price
C. Market
D. Product or service

60. Global firms need:

A. Neither an internal nor an external diversity focus
B. Both an internal and an external diversity focus
C. An internal but not an external diversity focus
D. An external but not an internal diversity focus

61. A _____ group is a group that is characterized by members who share similar
backgrounds and generally perceive, interpret and evaluate events in similar ways.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

62. A _____ group is a group in which all members but one have the same background, such
as a group of Japanese retailers and a British attorney.
A. Token
B. Multicultural
C. Bicultural
D. Homogeneous

63. A _____ group is a group in which two or more members represent each of two distinct
cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate
the possibility of investing in a venture.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

6-13
Chapter 06 - Organizational Cultures and Diversity

64. A _____ group is a group in which there are individuals from three or more different
ethnic backgrounds, such as three U.S., three German, three Uruguayan and three Chinese
managers who are looking into mining operations in South America.
A. Homogeneous
B. Token
C. Multicultural
D. Bicultural

65. Which of the following is an example of a multicultural group?

A. A group of male German bankers are forecasting the economic outlook for a foreign
investment
B. A group of Japanese retailers and a British attorney are looking into the benefits and
shortcomings of setting up operations in Bermuda
C. A group of four Mexicans and four Canadians have formed a team to investigate the
possibility of investing in Russia
D. A group of three Americans, three Germans, three Uruguayan and three Chinese managers
are looking into mining operations in Chile

66. The benefits or advantages of culturally diverse groups include the following except:
A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection

67. When _____ occurs, group participants believe that their ideas and actions are correct and
that those who disagree with them are either uninformed or deliberately trying to sabotage
their efforts.
A. Group cognitive inertia
B. Group reverse vigilance
C. Groupthink
D. Static decision-making

6-14
Chapter 06 - Organizational Cultures and Diversity

68. Multicultural teams are most effective when they face tasks requiring:
A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness

69. In the _____ stage of group development, the focus should be on building trust and
developing team cohesion.
A. Entry
B. Work
C. Action
D. Reflection

70. In the _____ stage of group development, attention may be directed more toward
describing and analyzing the problem or task that has been assigned.
A. Entry
B. Work
C. Action
D. Reflection

6-15
Chapter 06 - Organizational Cultures and Diversity
Essay Questions

71. What is organizational culture and what are some of its major characteristics?

72. Discuss findings of Hofstede and Andre Laurent about the relationship between national
and organizational culture.

73. What are the four types of organizational culture identified by Fons Trompenaars? Provide
a brief description of each of these cultures.

74. Discuss some of the potential problems associated with diversity.

6-16
Chapter 06 - Organizational Cultures and Diversity

75. Mention the four principles around which successful approach to culturally diverse groups
at NUMMI was built.

6-17
Chapter 06 - Organizational Cultures and Diversity

Chapter 06 Organizational Cultures and Diversity Answer Key

True / False Questions

1. (p. 169) Regardless of the external environment or their national culture, managers and
employees must understand and follow their organization's culture to be successful.
TRUE

Difficulty: Easy

2. (p. 169) Organizational culture is complex and cannot be defined as a set of norms regulating
the behavior of the employees of a firm.
FALSE

Difficulty: Medium

6-18
Chapter 06 - Organizational Cultures and Diversity

3. (p. 169) Organizational culture is a pattern of shared basic assumptions that are developed by
a group as it learns to cope with problems of external adaptation and internal integration; and
it is taught to new members as the correct way to perceive, think and feel in relation to these
problems.
TRUE

Difficulty: Easy

4. (p. 170) Hofstede's research found that the national cultural values of employees have an
insignificant impact on their organizational performance and these values are easily changed
by the organization.
FALSE

Difficulty: Medium

5. (p. 170) Andre Laurent's research found that cultural differences actually are more pronounced
among foreign employees working within the same multinational organization than among
personnel working for firms in their native lands.
TRUE

Difficulty: Hard

6. (p. 171) It has been found that when cultural comparisons were made between different
subsidiaries of an MNC, nearly identical cultures typically existed within each one.
FALSE

Difficulty: Medium

7. (p. 174) Organizational cultures of MNCs are shaped by a number of factors, including the
cultural preferences of the leaders and employees.
TRUE

Difficulty: Easy

6-19
Chapter 06 - Organizational Cultures and Diversity

8. (p. 176) Under this Eiffel Tower culture, jobs are well defined, employees know what they are
supposed to do and everything is coordinated from the top.
TRUE

Difficulty: Easy

9. (p. 177) Guided missile organizational cultures generally are made up of cooperative project
teams.
TRUE

Difficulty: Medium

10. (p. 178) Incubator culture is characterized by a strong emphasis on the hierarchy and
orientation to the person.
FALSE

Difficulty: Medium

11. (p. 180) As firms began exporting to foreign clients, they became what Alder called
"international corporations".
TRUE

Difficulty: Medium

12. (p. 182) Among international firms, which focus on exporting and producing abroad, cultural
diversity has a relatively weak impact on their external relationships with potential buyers and
foreign employees.
FALSE

Difficulty: Medium

6-20
Chapter 06 - Organizational Cultures and Diversity

13. (p. 183) An example of a token group would be a group of male German bankers who are
forecasting the economic outlook for a foreign investment.
FALSE

Difficulty: Medium

14. (p. 183) A bicultural group is a group in which two or more members represent each of two
distinct cultures, such as four Mexicans and four Canadians who have formed a team to
investigate the possibility of investing in a venture.
TRUE

Difficulty: Easy

15. (p. 183) As the diversity of a group increases, the likelihood of all members perceiving
things in the same way increases sharply.
FALSE

Difficulty: Medium

16. (p. 183) An example of a token group is a group of three American, three German, three
British and three Japanese managers who are looking into oil exploration opportunities in
Russia.
FALSE

Difficulty: Medium

17. (p. 185) One main benefit of diversity is the generation of more and better ideas.
TRUE

Difficulty: Medium

6-21
Chapter 06 - Organizational Cultures and Diversity

18. (p. 185) A disadvantage of diversity is that it often leads to groupthink, which is social
conformity and pressures on individual members of a group to conform and reach consensus.
FALSE

Difficulty: Medium

19. (p. 185) Multiculturally diverse teams have a great deal of potential to be either very
effective or very ineffective.
TRUE

Difficulty: Medium

20. (p. 186) In the entry stage of group development, the focus is typically on decision making
and implementation.
FALSE

Difficulty: Medium

Multiple Choice Questions

21. (p. 167) To ensure good communication in global teams, managers should do all of the
following except
A. Hold an initial meeting in which all members introduce themselves and describe their jobs
B. Hold regular meetings throughout the project to ensure everyone is "on the same page"
C. Avoid the use of email, and use only video conferencing of telephone communication to
avoid misunderstandings
D. Put the details of the project in writing

Difficulty: Medium

6-22
Chapter 06 - Organizational Cultures and Diversity
22. (p. 168) To build trust among virtual team members, managers should
A. Deep-six the egos and be friendly
B. Build a shared mythology
C. Avoid long lags in responding, unilateral priority shifts, and failure to follow up on
commitments
D. Keep the door open except when on private calls

Difficulty: Medium

23. (p. 168) Which of the following is not an advantage of virtual teams?
A. They can reduce problems associated with personality conflicts
B. They can keep a project moving around the clock
C. They provide a competitive advantage
D. They force managers to rely on subjective data when assessing team members' work

Difficulty: Medium

24. (p. 168) When individuals join a multinational corporation they bring their national culture,
which greatly affects all the following except:
A. Learned beliefs
B. Ethnicity
C. Attitudes and values
D. Behaviors

Difficulty: Medium

25. (p. 169) PepsiCo, personnel are expected to be cheerful, positive, enthusiastic and have
committed optimism. This is an example of:
A. Being influenced by the external environment
B. Trying to "fit-in"
C. A top-down form of management
D. Promoting community values

Difficulty: Medium

6-23
Chapter 06 - Organizational Cultures and Diversity

26. (p. 169) _____ is a pattern of basic assumptions that are developed by a group as it learns to
cope with problems of external adaptation and internal integration and that are taught to new
members as the correct way to perceive, think and feel in relation to these problems.
A. Organizational culture
B. Organizational learning
C. Organizational change
D. Organizational structure

Difficulty: Easy

27. (p. 169) Rules that dictate the dos and don'ts of employee behavior relating to areas such as
productivity, customer relations and intergroup cooperation, are characteristics associated
with organizational:
A. Ethics
B. Ambience
C. Culture
D. Structure

Difficulty: Medium

28. (p. 169) Observed behavioral regularities are typified by the following except:
A. Common language
B. Terminology
C. Customer relations
D. Rituals

Difficulty: Medium

29. (p. 169) Organizational climate is reflected by:

A. The degree of cooperation between management and employees
B. Common language, terminology and rituals
C. High product and service quality
D. The way participants interact with each other

Difficulty: Medium

6-24
Chapter 06 - Organizational Cultures and Diversity

30. (p. 169) Norms are reflected by things such as:

A. Common language, terminology and rituals
B. How employees and customers should be treated
C. The amount of work to be done
D. By the way participants feel about the way they are treated by higher-level management

Difficulty: Easy

31. (p. 170) A widely held belief that has not been found to be accurate is that organizational
culture:
A. Tends to erase the impact of national culture
B. Tends to be affected by national culture
C. Cannot easily change the cultural values employees bring to the workplace
D. Is different in different subsidiaries

Difficulty: Hard

32. (p. 170) When UpJohn Company merged with Pharamcia AB, problems emerged forcing the
partners to meet and talk about their cultural differences. This is an example which illustrates
that:
A. Organizational culture clashes often occur when partners do not fully understand the
culture of the new partner
B. There often are substantial differences between the organizational cultures of different
subsidiaries and of course, this can cause coordination problems
C. Organizational culture tends to moderate or erase the impact of national culture
D. Companies deliberately maintain distinct business cultures because they do not want one
culture influencing the other

Difficulty: Medium

6-25
Chapter 06 - Organizational Cultures and Diversity

33. (p. 172) Which of the following shows the identity dimension of corporate culture?
A. To put the demands of the job before the needs of the individual
B. To put the needs of the individual before the needs of the job
C. To identify with and uphold the expectations of the employing organizations
D. To strive for accuracy and attention to detail

Difficulty: Hard

34. (p. 172) Which of the following would be associated with the dimension of pragmatic
conduct?
A. To put the expertise and standards of the employing organization first
B. To put the demands and expectations of the customers first
C. To comply with clear and definite systems
D. To pursue clear aims and objectives

Difficulty: Hard

35. (p. 173) The United Kingdom shows the following characteristics regarding the corporate
dimension:
A. Administrative
B. Industrial
C. Pragmatic
D. Commercial

Difficulty: Medium

36. (p. 173) ‘Dirigiste' is used to describe the _____ dimension.

A. Economics
B. Philosophical
C. Cultural
D. Structural

Difficulty: Easy

6-26
Chapter 06 - Organizational Cultures and Diversity

37. (p. 172) Which of the following sets of characteristics is typical of French negotiators?
A. Look for a meeting of people, social competence is very important, persuasion through
emotional appeal is employed
B. Trust is developed on the basis of frequent and warm interpersonal contact and transaction
C. A contract is viewed as a long-lasting relationship, socialization always precedes
negotiations, which are characterized by an exchange of grand ideas and general principles,
social competence is very important
D. Look for a meeting of minds, intellectual competence is very important and a contract is
viewed as a well-reasoned transaction

Difficulty: Hard

38. (p. 175) There are three aspects of organizational functions that seem to be especially
important in determining an MNC's organizational culture. These are:
A. The general views that employees hold about the MNC's purpose, destiny, goals and their
places in them; the age of the organization; and the degree of cultural diversity among the
members of the organization
B. The general relationship between the managers and rank-and-file employees in the
organization; the degree of cultural diversity among the members of the organization; and the
hierarchical system of authority that defines the roles of managers and subordinates
C. The degree of cultural diversity among the members of the organization; the age of the
organization; and the strength of the organization's leadership
D. The general relationship between the employees and their organization; the hierarchical
system of authority that defines the roles of managers and subordinates; and the general views
that employees hold about the MNC's purpose, destiny, goals and their places in them

Difficulty: Hard

39. (p. 175) The following are the steps outlined by Numeroff and Abrahams used during
mergers and acquisitions except:
A. Establishing the purpose, goal and focus of the merger
B. Developing mechanisms to identify the least important organizational structures and
management roles
C. Determining who has authority over the resources needed for getting things done
D. Identifying the expectations of all involved parties and facilitate communication

Difficulty: Medium

6-27
Chapter 06 - Organizational Cultures and Diversity

40. (p. 176) _____ culture is characterized by a strong emphasis on the hierarchy and orientation
to the person.
A. Family
B. Eiffel Tower
C. Incubator
D. Guided missile

Difficulty: Medium

41. (p. 175) _____ culture is a project-oriented culture.

A. Family
B. Eiffel Tower
C. Guided missile
D. Incubator

Difficulty: Medium

42. (p. 176) Trompenaars found that a(n) _____ organizational culture is common in countries
such as Turkey, Pakistan, Venezuela, China, Hong Kong and Singapore.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

Difficulty: Medium

43. (p. 176) When it works well, the _____ culture can catalyze and multiply the energies of the
personnel and appeal to their deepest feelings and aspirations.
A. Incubator
B. Guided missile
C. Eiffel Tower
D. Family

Difficulty: Medium

6-28
Chapter 06 - Organizational Cultures and Diversity

44. (p. 176) The family culture is foreign to most in:

A. China
B. United States
C. Venezuela
D. Turkey

Difficulty: Medium

45. (p. 176) _____ culture is characterized by a strong emphasis on the hierarchy and orientation
to the task.
A. Incubator
B. Family
C. Guided missile
D. Eiffel Tower

Difficulty: Medium

46. (p. 176) Under a(n) _____ culture, jobs are well defined, employees know what they are
supposed to do and everything is coordinated from the top.
A. Guided missile
B. Family
C. Eiffel Tower
D. Incubator

Difficulty: Medium

47. (p. 177) Eiffel Tower cultures are most commonly found in:
A. Northwestern European countries, such as Germany, Denmark and France
B. Asian countries, such as Taiwan, South Korea and Japan
C. South American countries, such as Brazil, Argentina and Chile
D. North Atlantic countries, such as England, Ireland and Canada

Difficulty: Hard

6-29
Chapter 06 - Organizational Cultures and Diversity

48. (p. 177) _____ culture is characterized by a strong emphasis on equality in the workplace and
orientation to the task.
A. Guided missile
B. Family
C. Incubator
D. Eiffel Tower

Difficulty: Medium

49. (p. 177) The _____ organizational culture is oriented to work, which typically is undertaken
by teams or project groups.
A. Family
B. Incubator
C. Guided missile
D. Eiffel Tower

Difficulty: Easy

50. (p. 178) A(n) _____ organizational culture is characterized by a strong emphasis on equality
and orientation to the person.
A. Incubator
B. Eiffel Tower
C. Family
D. Guided missile

Difficulty: Medium

51. (p. 178) _____ cultures often create environments where participants thrive in an intense,
emotional commitment to the nature of the work.
A. Eiffel Tower
B. Family
C. Guided missile
D. Incubator

Difficulty: Medium

6-30
Chapter 06 - Organizational Cultures and Diversity

52. (p. 178) Change in the incubator culture is:

A. Slow and calculated
B. Almost non-existent
C. Moderate and methodological
D. Fast and spontaneous

Difficulty: Medium

53. (p. 179) Which of the following describes the "relationships between employees" in a family
corporate culture?
A. Diffuse relationships to organic whole to which one is bonded
B. Specific role in mechanical system of required interaction
C. Specific tasks in cybernetic system targeted on shared objectives
D. Diffuse, spontaneous relationships growing out of shared creative process

Difficulty: Medium

54. (p. 179) Which of the following describes the "attitude toward authority" in an Eiffel Tower
corporate culture?
A. Status is achieved by individuals exemplifying creativity and growth
B. Status is achieved by project group members who contribute to a targeted goal
C. Status is ascribed to superior roles that are distant yet powerful
D. Status is ascribed to parent figures that are close and powerful

Difficulty: Hard

55. (p. 179) Which of the following describes the "ways of thinking and learning" in a guided
missile culture?
A. Process oriented, creative, ad hoc, inspirational
B. Problem centered, professional, practical, cross-disciplinary
C. Logical, analytical, vertical and rationally efficient
D. Intuitive, holistic, lateral and error-correcting

Difficulty: Hard

6-31
Chapter 06 - Organizational Cultures and Diversity

56. (p. 180) As firms begin exporting to foreign clients and become what Alder calls
"international corporations", they must:
A. Increase the standardization of products and services
B. Adapt their products but not their approach to those of the local market
C. Adapt their approach and products to those of the local market
D. Adapt their approach but not their products to those of the local market

Difficulty: Medium

57. (p. 181) The following deal with largest, global markets:
A. International Corporations
B. Domestic Corporations
C. Global Corporations
D. Multinational Corporations

Difficulty: Medium

58. (p. 181) As companies become what Alder calls "multinational firms", they often find that
_____ tends to dominate all other considerations and the direct impact of culture may lessen
slightly.
A. Quality
B. Serviceability
C. Durability
D. Price

Difficulty: Medium

59. (p. 181) According to Adler, the primary orientation of a global firm is:
A. Strategy
B. Price
C. Market
D. Product or service

Difficulty: Easy

6-32
Chapter 06 - Organizational Cultures and Diversity

60. (p. 182) Global firms need:

A. Neither an internal nor an external diversity focus
B. Both an internal and an external diversity focus
C. An internal but not an external diversity focus
D. An external but not an internal diversity focus

Difficulty: Medium

61. (p. 178) A _____ group is a group that is characterized by members who share similar
backgrounds and generally perceive, interpret and evaluate events in similar ways.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

Difficulty: Easy

62. (p. 183) A _____ group is a group in which all members but one have the same background,
such as a group of Japanese retailers and a British attorney.
A. Token
B. Multicultural
C. Bicultural
D. Homogeneous

Difficulty: Easy

63. (p. 183) A _____ group is a group in which two or more members represent each of two
distinct cultures, such as four Mexicans and four Taiwanese who have formed a team to
investigate the possibility of investing in a venture.
A. Multicultural
B. Bicultural
C. Token
D. Homogeneous

Difficulty: Easy

6-33
Chapter 06 - Organizational Cultures and Diversity

64. (p. 183) A _____ group is a group in which there are individuals from three or more different
ethnic backgrounds, such as three U.S., three German, three Uruguayan and three Chinese
managers who are looking into mining operations in South America.
A. Homogeneous
B. Token
C. Multicultural
D. Bicultural

Difficulty: Medium

65. (p. 183) Which of the following is an example of a multicultural group?

A. A group of male German bankers are forecasting the economic outlook for a foreign
investment
B. A group of Japanese retailers and a British attorney are looking into the benefits and
shortcomings of setting up operations in Bermuda
C. A group of four Mexicans and four Canadians have formed a team to investigate the
possibility of investing in Russia
D. A group of three Americans, three Germans, three Uruguayan and three Chinese managers
are looking into mining operations in Chile

Difficulty: Hard

66. (p. 185) The benefits or advantages of culturally diverse groups include the following
except:
A. Enhanced creativity
B. Improved decision-making
C. Increased effectiveness of organization performance
D. Glass-ceiling protection

Difficulty: Medium

6-34
Chapter 06 - Organizational Cultures and Diversity

67. (p. 185) When _____ occurs, group participants believe that their ideas and actions are
correct and that those who disagree with them are either uninformed or deliberately trying to
sabotage their efforts.
A. Group cognitive inertia
B. Group reverse vigilance
C. Groupthink
D. Static decision-making

Difficulty: Medium

68. (p. 186) Multicultural teams are most effective when they face tasks requiring:
A. Cost-cutting
B. Confidentiality
C. The application of routine technologies
D. Innovativeness

Difficulty: Medium

69. (p. 186) In the _____ stage of group development, the focus should be on building trust and
developing team cohesion.
A. Entry
B. Work
C. Action
D. Reflection

Difficulty: Medium

70. (p. 186) In the _____ stage of group development, attention may be directed more toward
describing and analyzing the problem or task that has been assigned.
A. Entry
B. Work
C. Action
D. Reflection

Difficulty: Medium

6-35
Chapter 06 - Organizational Cultures and Diversity

Essay Questions

71. (p. 169-170) What is organizational culture and what are some of its major characteristics?

Organizational culture is a set of shared values and beliefs that enable members to understand
their role and the norms of the organization. Some important characteristics of organizational
cultures include observed behavioral regularities, norms, dominant values, philosophy, rules
and organizational climate.

Difficulty: Easy

72. (p. 170-174) Discuss findings of Hofstede and Andre Laurent about the relationship between
national and organizational culture.

There is a widely held belief that organizational culture tends to moderate or erase the impact
of national culture. The logic of such conventional wisdom is that if a U.S. MNC set up
operations in, say, France, it would not be long before the French employees began to "think
like Americans". In fact, evidence is accumulating that just the opposite may be true.
Hofstede's research found that the national cultural values of employees have a significant
impact on their organizational performance and that the cultural values employees bring to the
workplace with them are not easily changed by the organization. So, for example, while some
French employees would have a higher power distance than Swedes and some a lower power
distance, chances are "that if a company hired locals in Paris, they would, on the whole, be
less likely to challenge hierarchical power than would the same number of locals hired in
Stockholm". Andre Laurent's research supports Hofstede's conclusions. He found that cultural
differences actually are more pronounced among foreign employees working within the same
multinational organization than among personnel working for firms in their native lands.

Difficulty: Medium

6-36
Chapter 06 - Organizational Cultures and Diversity

73. (p. 174-179) What are the four types of organizational culture identified by Fons
Trompenaars? Provide a brief description of each of these cultures.

The four types of organizational culture identified by Trompenaars are as follows: Family
culture, Eiffel Tower culture, Guided missile culture and Incubator culture. Family culture is a
culture characterized by a strong emphasis on hierarchy and orientation to the person; Eiffel
Tower culture is a culture characterized by strong emphasis on hierarchy and orientation to
the task; Guided missile culture is a culture characterized by a strong emphasis on equality in
the workplace and orientation to the task and Incubator culture is a culture characterized by a
strong emphasis on equality and orientation to the person.

Difficulty: Medium

74. (p. 183-185) Discuss some of the potential problems associated with diversity.

Overall, diversity may cause a lack of cohesion that results in the unit's inability to take
concerted action, be productive and create a work environment that is conducive to both
efficiency and effectiveness. These potential problems are rooted in people's attitudes.
Another potential problem that may be perceptual is that when culturally diverse groups come
together, they often bring preconceived stereotypes with them. This perception can result in
status-related problems. A related problem is inaccurate biases. Still another potential problem
with diverse groups is inaccurate communication, which could occur for a number of reasons.
One is misunderstandings caused by words used by a speaker that are not clear to other
members. Another contribution to miscommunication may be the way in which situations are
interpreted. Diversity also may lead to communication problems because of different
perceptions of time.

Difficulty: Medium

6-37
Chapter 06 - Organizational Cultures and Diversity

75. (p. 187-188) Mention the four principles around which successful approach to culturally
diverse groups at NUMMI was built.

The four principles are - (1) Both management and labor recognized that their futures were
interdependent, thus committing them to a mutual vision, (2) Employees felt secure and
trusted assurances that they would be treated fairly, thus enabling them to become
contributors, (3) The production system formed interdependent relationships throughout the
plant, thus helping to create a healthy work environment and (4) The production system was
managed to transform the stress and conflict of everyday life into trust and mutual respect.

Difficulty: Medium

6-38