MBA 704 EXAM STUDY GUIDE 2026
COMPLETE QUESTIONS AND ANSWERS
◉Creating Organizational Culture. Answer: A single person
(founder) has idea for new business
Founder brings in key people with common vision
Founding group acts together to create an organization by raising
capital, obtaining patents, incorporating, finding a location
Others brought into company; common history is built
◉Steps of Socialization. Answer: Selection
Job Placement
Job Mastery
Measuring/Rewarding Performance
Adherence to Important Values
Reinforcing the Stories of Folklore
Recognition and Promotion
◉Selection. Answer: Careful selection of entry level candidates using
standardized procedures to find personal systems and values that fit
with the culture
,◉Job Placement. Answer: Teach vulnerability, promote cohesiveness
◉Job Mastery. Answer: Provide field experience, training program
◉Measuring/Rewarding Performance. Answer: Reinforce cultural
values
◉Adherence of Important Values. Answer: Get employees to accept
values, trust organization
◉Reinforcing the Stories of Folklore. Answer: Validate culture and
way of doing things
◉Recognition and Promotion. Answer: Reward culture role models
◉Mergers and Acquisitions. Answer: Different structures, power
bases, and emotions
◉Relationship Enterprises. Answer: Separate companies acting as
single firm
◉Economic Crisis. Answer: Effect of culture on ethics and long-term
survival
, ◉Guidelines for Organizational Culture Change. Answer: Asses
current culture and set goals
Hire outside personnel
Make changes from top down
Include employees in change
Take out reminders of previous culture
Expect problems and resistance to change
Move quickly and stay the course
◉Money as a Reward. Answer: Money associated with achievement
and recognition, status and respect, freedom and control, and power
◉Agency Theory. Answer: Explains how managers differ from
owners in using pay and other compensation to run the organization
Owners concerned with increasing stockholder value
Managers concerned with job tenure and short term performance
◉Effectiveness of Pay. Answer: Money can be a motivator
The more people get, the more they want
Pay cut seen as insult and indication of low value
Monet means different things to different peoples
COMPLETE QUESTIONS AND ANSWERS
◉Creating Organizational Culture. Answer: A single person
(founder) has idea for new business
Founder brings in key people with common vision
Founding group acts together to create an organization by raising
capital, obtaining patents, incorporating, finding a location
Others brought into company; common history is built
◉Steps of Socialization. Answer: Selection
Job Placement
Job Mastery
Measuring/Rewarding Performance
Adherence to Important Values
Reinforcing the Stories of Folklore
Recognition and Promotion
◉Selection. Answer: Careful selection of entry level candidates using
standardized procedures to find personal systems and values that fit
with the culture
,◉Job Placement. Answer: Teach vulnerability, promote cohesiveness
◉Job Mastery. Answer: Provide field experience, training program
◉Measuring/Rewarding Performance. Answer: Reinforce cultural
values
◉Adherence of Important Values. Answer: Get employees to accept
values, trust organization
◉Reinforcing the Stories of Folklore. Answer: Validate culture and
way of doing things
◉Recognition and Promotion. Answer: Reward culture role models
◉Mergers and Acquisitions. Answer: Different structures, power
bases, and emotions
◉Relationship Enterprises. Answer: Separate companies acting as
single firm
◉Economic Crisis. Answer: Effect of culture on ethics and long-term
survival
, ◉Guidelines for Organizational Culture Change. Answer: Asses
current culture and set goals
Hire outside personnel
Make changes from top down
Include employees in change
Take out reminders of previous culture
Expect problems and resistance to change
Move quickly and stay the course
◉Money as a Reward. Answer: Money associated with achievement
and recognition, status and respect, freedom and control, and power
◉Agency Theory. Answer: Explains how managers differ from
owners in using pay and other compensation to run the organization
Owners concerned with increasing stockholder value
Managers concerned with job tenure and short term performance
◉Effectiveness of Pay. Answer: Money can be a motivator
The more people get, the more they want
Pay cut seen as insult and indication of low value
Monet means different things to different peoples
