ch8 Flashcards
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 _______.
decentralized
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?
Sarbanes-Oxley 404
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
c. Centralized because of the strict formalization and implementation of ethics policies and procedures
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
d. It is adaptable and can quickly respond to external change
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.
compliance
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
c. Minimal concern for people and performance
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
a. Performance, but with little concern for employees
Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning process known as _______.
differential association
Which of the following statements about corporate culture are not true?
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.
B
No formal dress codes, working late, and participation in extracurricular activities are representative of which of the
following?
Informal expressions of an organization’s culture
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
d. An organization’s values
Bringing together the functional expertise of employees from several different areas of the organization on a single
project defines which of the following?
Teams
Individuals, often from the same department, who have a common interest but not an explicit organizational structure
are known as _______.
informal groups
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.
d. The whistle-blower must have adequate knowledge of wrongdoing that could damage society.
Which of the following are NOT true statements about group norms?
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.
E
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
d. may not be in line with the values and ethical beliefs that actually guide a firm’s employees
Which of the following cultures combines high levels of concern for both people and performance?
Integrative culture
A high concern for people but minimal concern for performance can best describe which type of culture?
Caring
Ethical concerns in centralized structures can occur because of very little _______.
upward communication
The establishment of an ethics committee within an organization _______.
c. is a highly formalized approach for dealing with ethical issues
In bureaucratic organizations, what type of impact do new employees usually have on the basic operating rules and
procedures for getting things done?
Limited input
are specifically used to subdivide duties within functional areas of a company?
Work groups
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?
Integrative
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.
a. Culture is shared, relatively stable, and is formed over a long period of time.
Because all organizations have some type of culture, which of the following terms are often used interchangeably?
Organizational culture; corporate culture
If there is congruence between individual ethics and the organizational ethical culture, the potential for making ethical
choices in organizational decision making _______.
increases
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?
Mission statement
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 _______.
differential association
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.
b. It has institutionalized internal whistle-blowing.
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?
10-40-40-10
Which of the following is an informal channel of communication?
a. Team communication
b. The grapevine
c. Performance evaluations
d. Reports
e. Presentations
b. The grapevine
Most employees are not concerned about retribution when making the decision to report potential misconduct
externally.
a. True
b. False
b. False
Non-profit organizations, corporations, and government agencies all have their own organizational cultures.
a. True
b. False
a. True
A cultural audit can be performed internally within the organization.
a. True
b. False
a. True
Committees, work groups, and teams are all types of formal groups.
a. True
b. False
a. True
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.
ade
Which of the following includes shared values, norms, and artifacts that influence employees and determine behavior?
Organizational culture
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.
a b d e
Which organizational structure is characterized by low flexibility, low adaptability, and low problem recognition?
Centralized
