CH 8

Question 1

1. An organization that delegates decision-making authority as far down the chain of command as possible and has relatively few formal rules is referred to as _______.
   a. centralized
   b. decentralized
   c. unethical
   d. tall
   e. ethical

Answer 1

b

Question 2

2. Which of the following includes a requirement that management assess the effectiveness of an organization’s internal controls and commission audits of these controls by an external auditor in conjunction with the audit of its financial statements?
   a. An ethics audit
   b. The Dodd-Frank Act
   c. Sarbanes-Oxley 404
   d. Title VII of the Civil Rights Act
   e. The Whistle-blower Protection Act

Answer 2

c

Question 3

3. When considering centralized and decentralized structures, which one tends to be more ethical, and why?
   a. Decentralized because of the clear rules that dictate appropriate behavior in business
   b. Centralized because it is easier to uproot unethical activities
   c. Centralized because of the strict formalization and implementation of ethics policies and procedures
   d. Decentralized because they give employees more decision-making authority
   e. Both types of organizational structure are equally ethical

Answer 3

c

Question 4

4. Which of the following is an advantage of a decentralized organization ?
   a. The focus is on formal rules, policies, and procedures backed up with elaborate control systems
   b. There is a high level of bureaucracy
   c. Each worker knows his or her job and what is specifically expected as well as how to carry out designated tasks
   d. It is adaptable and can quickly respond to external change
   e. There is minimal upward communication

Answer 4

d

Question 5

5. Because every organization has employees that will try to take advantage if there is an opportunity for misconduct, when developing a values-based ethical culture it must include a(n) _______ element.
   a. vision statement
   b. qui tam relator
   c. ethical
   d. compliance
   e. punitive

Answer 5

d

Question 6

6. An apathetic organizational culture exhibits which of the following?
   a. High concern for people but minimal concern for performance
   b. Little concern for people but a high concern for performance
   c. Minimal concern for people and performance
   d. High concern for people and performance
   e. No concern for maintaining a cohesive organizational culture

Answer 6

c

Question 7

7. An exacting organizational culture is interested in which of the following?
   a. Performance, but with little concern for employees
   b. Investors’ impressions of profitability
   c. Maintaining a strong corporate culture
   d. Employees and performance
   e. Employees’ impressions

Answer 7

a

Question 8

8. Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as _______.
   a. compliance
   b. misconduct
   c. opportunity
   d. differential equations
   e. differential association

Answer 8

e

Question 9

9. Which of the following statements about corporate culture are true? (Select four)
   a. Corporate culture refers to the patterns and rules that govern the behavior of an organization and its
   employees, particularly the shared values, beliefs, and customs.
   b. The values and ethical beliefs that actually guide the firm’s employees do not tend to be the same ones that management states as defining the firm’s culture.
   c. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in an organization.
   d. The culture of an organization may be explicitly stated or unspoken.
   e. Failure to monitor or manage an organization’s culture may foster unethical behavior.

Answer 9

a, c, d, e

Question 10

10. No formal dress codes, working late, and participation in extracurricular activities are representative of which of the following?
    a. A complacent workplace
    b. Codes of ethics
    c. A firm’s organizational chart
    d. Formal expressions of an organization’s culture
    e. Informal expressions of an organization’s culture

Answer 10

e

Question 11

11. A cultural audit may be used to assess which of the following?
    a. How cultured a firm’s employees are
    b. Unethical employees
    c. Group dimensions
    d. An organization’s values
    e. Organizational structure

Answer 11

d

Question 12

12. Bringing together the functional expertise of employees from several different areas of the organization on a single project defines which of the following?
    a. Quality circles
    b. Informal groups
    c. Teams
    d. Work groups
    e. Committees

Answer 12

c

Question 13

13. Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as _______.
    a. quality circles
    b. informal groups
    c. teams
    d. work groups
    e. committees

Answer 13

b

Question 14

14. In order for whistle-blowing to be effective, which of the following must be true?
    a. The whistle-blower must have indisputable proof of guilt.
    b. Employees must wish ill on the organization for which they work.
    c. Lawmakers must make an effort to force employees to discuss details about the misconduct.
    d. The whistle-blower must have adequate knowledge of wrongdoing that could damage society.
    e. The misconduct must have occurred at a very large multinational corporation.

Answer 14

d

Question 15

15. Which of the following are true statements about group norms? (Select four)
    a. Group norms define the limit on deviation from group expectations.
    b. Group norms have the power to force a strong degree of conformity among group members.
    c. Management must carefully monitor the norms of all the various groups within the organization, as well as the organization’s corporate culture.
    d. Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall culture.
    e. Group norms never conflict with the overall organization’s culture.

Answer 15

a, b, c, d

Question 16

16. When deciding whether or not to conduct a cultural audit, it is important to consider that management’s sense of the organization’s culture _______.
    a. is more accurate than employees’ perceptions because employees come and go
    b. is always accurate, so a cultural audit may be unnecessary
    c. is readily evident to employees
    d. may not be in line with the values and ethical beliefs that actually guide a firm’s employees
    e. is always different from employees’ perceptions

Answer 16

d

Question 17

17. Which of the following cultures combines high levels of concern for both people and performance?
    a. Apathetic culture
    b. Caring culture
    c. Integrative culture
    d. Exacting culture
    e. Cooperative culture

Answer 17

c

Question 18

18. A high concern for people but minimal concern for performance can best describe which type of culture?
    a. Caring
    b. Apathetic
    c. Exacting
    d. Shareholder
    e. Employee

Answer 18

a

Question 19

19. Ethical concerns in centralized structures can occur because of very little _______.
    a. mobility
    b. upward communication
    c. scapegoating
    d. downward communication
    e. communication rigidity

Answer 19

b

Question 20

20. The establishment of an ethics committee within an organization _______.
    a. has an informal organizational structure
    b. is usually organized around general business topics
    c. is a highly formalized approach for dealing with ethical issues
    d. occurs when formal work groups do not work
    e. usually increases ethical tension

Answer 20

c

Question 21

21. In bureaucratic organizations, what type of impact do new employees usually have on the basic operating rules and procedures for getting things done?
    a. Limited group consensus
    b. Significant impact
    c. Consistent control
    d. Strong feedback
    e. Limited input

Answer 21

e

Question 22

22. Which of the following are specifically used to subdivide duties within functional areas of a company?
    a. Work groups
    b. Individuals
    c. Experts
    d. Consultants
    e. Committees

Answer 22

a

Question 23

23. Cho, a well-liked executive, inspires her employees to follow a common vision, facilitates change, and creates a strongly positive climate, all while stressing performance. In this scenario, what type of culture has Cho helped to create?
    a. Authoritative
    b. Caring
    c. Integrative
    d. Apathetic
    e. Affiliative

Answer 23

c

Question 24

24. Over the years, scholars have developed more than 100 definitions of culture. According to the text, all these definitions share which of the following common elements?
    a. Culture is shared, relatively stable, and is formed over a long period of time.
    b. Culture is unique, stable, and is formed over a long period of time.
    c. Culture is shared, fluctuating, and is formed over a long period of time.
    d. Culture is shared, stable, and is formed over a short period of time.
    e. Culture is man-made, stable, and is formed over a short period of time.

Answer 24

a

Question 25

25. Because all organizations have some type of culture, which of the following terms are often used interchangeably?
    a. Cultural values; corporate culture
    b. Cultural values; organizational culture
    c. Organizational culture; corporate culture
    d. Ethical culture; organizational culture
    e. Ethical culture; corporate culture

Answer 25

c

Question 26

26. If there is congruence between individual ethics and the organizational ethical culture, the potential for making ethical choices in organizational decision making _______.
    a. increases
    b. decreases
    c. stays the same temporarily
    d. is eliminated entirely
    e. can never change

Answer 26

a

Question 27

27. Which of the following defines a firm as well as how its customers and employees should be treated and is critical to a values-based ethics culture approach?
    a. Set of laws
    b. Mission statement
    c. Technology assessment
    d. Ethical audit
    e. Statement of work

Answer 27

b

Question 28

28. The idea that people learn ethical or unethical behavior while interacting with others who are a part of their role-sets is referred to as _______.
    a. group norms
    b. cognitive memory dissonance
    c. cognitive association
    d. differential association
    e. casual interaction

Answer 28

d

Question 29

29. Which of the following statements is true regarding the Sarbanes-Oxley Act?
    a. It only applies to firms with over 50 employees.
    b. It has institutionalized internal whistle-blowing.
    c. It was eventually replaced with the Dodd-Frank Act.
    d. It requires all organizations to make their financial information public.
    e. It involves too many complicated steps for it to be feasible for most organizations

Answer 29

b

Question 30

30. Which rule explains variation in employee conduct through generalizing on the percentage of employees in any given organization who will seek to do right versus how many will be indifferent?
    a. 10-30-40-20
    b. 20-30-30-20
    c. 40-10-10-40
    d. 10-40-40-10
    e. 80-20

Answer 30

d

Question 31

35. Which of the following is an informal channel of communication?
    a. Team communication
    b. The grapevine
    c. Performance evaluations
    d. Reports
    e. Presentations

Answer 31

b

Question 32

36. Most employees are not concerned about retribution when making the decision to report potential misconduct externally.
    a. True
    b. False

Answer 32

False

Question 33

37. Non-profit organizations, corporations, and government agencies all have their own organizational cultures.
    a. True
    b. False

Answer 33

True

Question 34

38. A cultural audit can be performed internally within the organization.
    a. True
    b. False

Answer 34

True

Question 35

39. Committees, work groups, and teams are all types of formal groups.
    a. True
    b. False

Answer 35

True

Question 36

40. In the past 50 years, scholars developed and attempted to measure at least 164 distinct definitions of culture with recent reviews indicating that the number of definitions has been increasing. While these definitions of culture vary greatly, they share common elements, including which of the following? (Select three)
    a. Culture is shared among individuals belonging to a group or society.
    b. Culture is formed over a relatively short period of time.
    c. Culture is volatile and always in flux.
    d. Culture is relatively stable.
    e. Culture is formed over a relatively long period of time.

Answer 36

a, d, e

Question 37

41. Which of the following includes shared values, norms, and artifacts that influence employees and determine behavior?
    a. Corporate compliance
    b. Differential association
    c. Organizational culture
    d. Ethical culture
    e. Apathetic culture

Answer 37

c

Question 38

42. How is an ethical corporate culture measured? (Select four)
    a. Management and the board demonstrate their commitment to integrity, core values, and ethics codes through their communications and actions.
    b. Every employee is encouraged and required to have hands-on involvement in compliance, especially internal control systems and reporting systems.
    c. Ethical leadership starts with the tone at the bottom.
    d. Employees are expected to receive communication through resolutions and corrective actions related to ethical issues.
    e. Employees have the ability to report policy exceptions anonymously to any member of the organization, including the CEO, other members of management, and the board of directors.

Answer 38

a, b, d, e

Question 39

43. Which organizational structure is characterized by low flexibility, low adaptability, and low problem recognition?
    a. Mobility structure
    b. Centralized
    c. Decentralized
    d. Holacracy
    e. Delegated

Answer 39

b