QUESTIONS AND CORRECT ANSWERS
Organizational culture is the set of shared, taken-for-granted implicit assumptions held by a
group that determines how the group perceives, thinks about, and reacts to its various
environments. - CORRECT ANSWER true. Explanation: Organizational culture is "the
set of shared, taken-for-granted implicit assumptions that a group holds and that determines
how it perceives, thinks about, and reacts to its various environments." This definition
highlights three important characteristics of organizational culture.
Enacted values represent the explicitly stated values and norms that are preferred by an
organization. - CORRECT ANSWER false. Explanation: Enacted values represent the
values and norms that actually are exhibited or converted into employee behavior. They
represent the values that employees ascribe to an organization based on their observations of
what occurs on a daily basis.
A clan culture has an internal focus and values flexibility rather than stability and control. -
CORRECT ANSWER true. Explanation: A clan culture has an internal focus and
values flexibility rather than stability and control. It resembles a family-type organization in
which effectiveness is achieved by encouraging collaboration between employees.
An organization's financial performance is strongly related to its organizational structure. -
CORRECT ANSWER false. Explanation: An organization's financial performance (i.e.,
growth in profit and growth in revenue) is not very strongly related to organizational culture.
Managers should not expect to increase financial performance by trying to change their
organization's culture.
The encounter phase is the last stage in the organizational socialization process. - CORRECT
ANSWER false. Explanation: The encounter phase, the second phase of organizational
socialization process, begins when the employment contract has been signed. During this
phase employees come to learn what the organization is really like.
_____ is a long-term plan outlining actions needed to achieve a desired result. - CORRECT
ANSWER strategic plan. Explanation: Strategic plans outline the long-term goals of
the organization and spell out what is needed to meet those goals.