Item 1 - Score: 100% (1 of 1) c=0
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In a changing environment, a manager needs a set way of carrying out activities. rules and regulations that have worked in the past. mindfulness. a closed mind. Feedback: Correct. (1 of 1) Item 2 - Score: 100% c=2 {"score":1,"rejoin Which of the following does
not characterize
an uncertain environment?
Pressure Stability Change Unanticipated problems Feedback: Correct. Item 3 - Score: 100% (1 of 1) c=2
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Which type of manager is best suited for a stable environment? A manager who attends industry trade shows A manager who follows existing policies without wavering A manager who asks "dumb" questions A manager who encourages others to express opposing ideas and arguments Feedback: Correct
Item 1 - Score: 100% (1 of 1) c=1
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Chan loves to win. He is willing to work hard in order to accomplish his goals. In searching for a new job, Chan should look for a company with: a consistency culture. an involvement culture. an adaptability culture. an achievement culture. Feedback: Correct. Chan enjoys competitiveness and is willing to work hard to achieve goals. These are characteristics of an achievement culture. Item 2 - Score: 100% (1 of 1) c=3
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Brooke works well in an organizational culture that is stable and characterized by security. Which of the following organizational cultures would best match Brooke as she begins her job search as a new manager? Consistency culture. Achievement culture. Involvement culture. Adaptability culture. Feedback: Correct. A consistency culture is stable and is characterized as being secure. (1 of 1) Item 3 - Score: 100% {"score":1,"rejoin c=1 Jamie is interviewing with a company and the hiring manager described the organization's culture as being team focused and very much like an extended family. Which of the following organizational cultures is the hiring manager describing? Consistency culture. Achievement culture. Predictive culture. Involvement culture. Feedback: Correct. An involvement culture can be described as being like an extended family while encouraging team work.
1. General and task environments (Connect, Perform) Use your understanding of terminology used to describe the business environment to complete the following sentences. At the social media company NetApp, the culture emphasizes teamwork, and managers and employees have rooftop meetings. All of these are elements of the
internal environment
. Points: 1/1 Close Explanation Explanation: The internal environment is composed of current employees, management, and the organization’s culture. The external organizational environment includes the competitors, resources, technology, and economic conditions that influence the organization. It consists of both the general environment, which impacts all businesses, and the task environment, which affects the specific organization. The task environment includes those sectors that have a direct working relationship with the organization, among them customers, competitors, suppliers, and the labor market. The organizational ecosystem is a system formed by the interaction among a community of organizations in the environment, such as suppliers and customers.(Source: Bort, J. (2014, August 22). The 25 most enjoyable companies to work for. Business Insider. Retrieved from http://www.businessinsider.com/25-best-corporate-cultures-2014-8)
Mighty Leaf Tea Company and Bigelow Tea are
competitors of
restaurants and cafeterias, providing tea in attractive display options that these retail establishments then use to sell tea to their customers. Points: 0/1 Close Explanation Explanation: Suppliers, a sector of the task environment, provide the raw materials that the organization uses to produce its output.
Although genetic engineering, part of the
sociocultural dimension
of agriculture, could allow scientists to develop crops that are resistant to pests and bad weather, it is highly controversial. Points: 0/1 Close Explanation Explanation: The technological dimension of the general environment includes scientific and technological advancements in a specific industry, as well as in society at large. Technology can help innovative companies gain market share, while
changes in this dimension can hurt organizations that are not responsive. (From: Union of Concerned Scientists. (n.d.). Genetic engineering in agriculture. Retrieved July 19, 2015, from http://www.ucsusa.org/our-work/foodagriculture/our-failing-food-system/genetic-engineering-agriculture) The following diagram is missing three key terms. Please label the missing terms.
A.
Competitors
Points: 1/1
B.
Employees
Points: 1/1
C.
Legal/Political
Points: 1/1 Close Explanation Explanation:
Competitors are part of an organization’s task environment. The task environment includes those sectors that have a direct working relationship with the organization. Employees are part of an organization’s internal environment. The internal environment includes the elements within the organization’s boundaries. The legal-political dimension is part of an organization’s general environment. The general environment affects an organization indirectly.
2. Uncertain and turbulent environments (Connect, Perform) Uncertainty in an organization occurs when there are rapid changes in
external
factors. Points: 1/1 Close Explanation Explanation: When external factors change rapidly, the organization will experience high uncertainty. Uncertainty means that managers do not have enough information about environmental factors to understand and predict environmental needs or changes. Place the letter next to each description in the space next to the strategy described. Answer
Strategy
A
Business
B B
intelligence
A A
Influence
Description
A.
advertising campaign in an attempt to alter the public’s perception of the company.
B.
environment
C C
Mergers and joint ventures
After the massive 2010 oil spill in the Gulf of Mexico, BP spent millions of dollars on an
A regional grocery store chain studies weather reports and shopping data to see which items to stock up on before a big winter storm.
C.
Enterprise Rent-A-Car, which dominated the neighborhood car rental market, and National Car Rental, which performed strongly in the airport rental market, joined together to become the world’s largest rental car company.
Points: 1/1 Close Explanation Explanation: Business intelligence Influence environment Mergers and joint ventures B: Business intelligence A regional grocery store chain studies weather reports and shopping data to see which items to stock up on before a big winter storm. Explanation Business intelligence is one area of boundary spanning which utilizes software to search through internal and external data to spot patterns, trends, or relationships that may be important. The fastest-growing segment of business intelligence is big data analytics. Big data analytics can help managers improve their organization’s performance. (Source: Babcock, C. How Three Midsize Companies Use Business Intelligence To Their Advantage. InformationWeek. Retrieved from http://www.informationweek.com/how-three-midsize-companies-use-business-intelligence-to-theiradvantage/d/d-id/1032629?)
3. Corporate culture (Connect) Culture makes organizations feel different from each other. Different companies, even companies in the same industry, do things differently. You can experience this for yourself by going to two local supermarkets—one a part of a large chain, and the other locally owned. Look around you. Does someone offer to help you when you walk in the door? Do the employees seem happier at one location compared to the other? Do people wear uniforms at one place, but not at the other? All of these things can give you clues about the company’s culture. In the following diagram, identify the levels of corporate culture.
Source: Daft, R. L. (2014). Management, 12th ed (p. 90). Mason, OH: Cengage Learning.
A.
Visible
Points: 1/1
B.
Invisible
Points: 1/1 Close Explanation Explanation: An organization’s culture is largely invisible. There is no way of walking into a company and immediately saying, “This company is committed to helping employees grow and develop.” But people who look carefully can see signs of an organization’s culture everywhere. For example, employee uniforms, a standardized way of greeting customers, and public reward ceremonies for managers who cut energy use are all signs of a supermarket chain which has a culture based on the assumption, “Efficiency is the way to succeed.” You would see very different symbols, slogans, and ceremonies at a Mom and Pop store where the underlying assumption is, “Our employees and customers are our family.”
To be effective, an organization’s culture must
match
the external environment. Points: 1/1 Close Explanation Explanation: Culture is a part of the internal environment of the organization, but it is strongly related to the task and general environment as well. For example, a company whose values include a strong commitment to protecting the environment is more likely to choose suppliers with the same commitment, and to closely monitor changes in the natural dimension of the general environment. The most successful companies have a culture that matches the environment in which they operate. For example, the environment for companies that sell solar power is changing
rapidly as technology and regulations evolve. Thus, to be successful, a solar power company should have a flexible culture that allows employees to make changes quickly. Which of the following statements are true about organizational culture? Check all that apply. Culture can create a competitive advantage for a company. The actions managers take can change a company’s culture. A company’s culture cannot be taught—managers must hire people that have the right culture. Employees may be unaware of the underlying assumptions that guide an organization’s culture. Points: 1/1 Close Explanation Explanation: An organization’s culture is based on unseen underlying values and norms of behavior. These values and norms are, in turn, based on underlying assumptions and beliefs, which may be so deep in an organization’s mindset that employees are no longer aware of them. Culture is a competitive advantage when it is appropriate for an organization’s environment. In an environment that is rapidly changing, companies with flexible cultures will be more successful, while a more stable environment rewards companies that value efficiency and standard procedures. Managers can change an organization’s culture by acting in new ways, adopting different attitudes, and rewarding different values. New employees learn about an organization’s culture in many ways, including observing what others in the organization do, both on a regular basis and in times of crisis. Employees also learn about an organization’s culture by observing what is valued and rewarded in the company. You can see the differences in corporate culture in the following employee statements about their companies: Compare “Performance counts, nothing else does,” with “Very process-driven and slow moving.”
4. Components of culture (Connect, Perform) Match the following examples to the element of culture that they represent. Example
Element of Culture
In your company, people talk about Owen, the auto mechanic who stripped an entire car to find an electrical problem, as a
Hero
role model for everyone to follow.
Stanford University tells students that they will “Grasp the forces driving the change,” while students at Ryerson Slogan
University are attracted by “Wisdom. Applied.”
Every year, the entire company gathers to watch employees with 25 years of service get a gold watch, showing that the company values loyalty and length of service.
Ceremony
Points: 1/1 Close Explanation Explanation: Example
Element of
Explanation
Culture
In your company, people talk about
Hero
When people hold others up as role models, they are using heroes such as Owen to
Owen, the auto mechanic who stripped
embody an organization’s values. Heroes can be real or mythical, and their actions
an entire car to find an electrical
show others what is expected of them.
problem, as a role model for everyone to follow. Stanford University tells students that
Slogan
Slogans are sayings that capsulize key attitudes in a single phrase. For example, the
they will “Grasp the forces driving the
slogan “Grasp the forces driving the change,” or “Wisdom. Applied.” is not just for
change,” while students at Ryerson
advertising—it also tells employees what is expected of them in the organization.
University are attracted by “Wisdom.
Note that symbols are tangible objects, while slogans are verbal phrases.
Applied.” Every year, the entire company gathers to watch employees with 25 years of
Ceremony
Some organizational activities, such as the presentation of a gold watch, become rituals. These ceremonies underscore what is important in an organization by giving
service get a gold watch, showing that
it formal recognition. Note that although a ceremony may incorporate a symbol
the company values loyalty and length
such as a gold watch, the actions surrounding the symbol become ceremony through
of service.
repetition.
5. Types of culture (Connect, Perform) In the following diagram, identify the different types of corporate cultures.
A.
Adaptability
Points: 1/1
B.
Achievement
Points: 0/1
C.
Involvement
Points: 0/1
D.
Consistency
Points: 1/1 Close Explanation Explanation: An organization’s culture is based on the needs of the environment and the strategic focus of the company. Rapidly changing environments, such as those found today in technology and medicine, require an organization to be flexible and responsive, while environments that change more slowly, such as those found in the food industry, require an organization to be stable and efficient. Strategic management decisions also change an organization’s culture. Every manager must decide whether his or her primary goal will be to keep up with environmental changes (an external focus) or to focus on the needs of the organization (an internal focus). The following diagram shows how these variables combine to produce four different cultures. For more information on each culture, see the explanations for other questions on this page.
Use your knowledge of the four types of corporate culture to answer the following question.
The
adaptability
culture emerges in an environment that requires fast response and high-risk decision making. Points: 1/1 Close Explanation Explanation:
Because companies with an adaptability culture operate in highly flexible environments and with an external strategic focus, managers must make high-risk decisions quickly to keep up with the environment. Identify the corporate culture type illustrated in each management style description presented in the following table. Example
Corporate Culture Type
Management style is characterized by innovation and risk-taking. Achievement
Management style is characterized by security and predictability. Consistency
Management style is characterized by high performance demands and accomplishments. Adaptability
Management style is characterized by teamwork and participation. Involvement
Points: 0.5 / 1 Close Explanation Explanation: The following table shows the many factors used to classify an organization’s culture. Check your descriptions to see where they fall in this table. Organizational
Strategic
Needs of the
Culture
Focus
Environment
Adaptability (Lush
External
Flexible
Cosmetics)
Values
Managers
Employees
Quick action to adapt to
Reward behaviors that create
Make their own
a rapidly changing
change: creativity,
decisions and
environment.
experimentation, risk-taking.
respond to customer needs.
Achievement (Siebel Systems)
External
Stable
High performance
Emphasize setting and
Focus on meeting
stemming from
meeting goals.
goals and winning.
aggressive, professional actions.
Organizational
Strategic
Needs of the
Culture
Focus
Environment
Involvement (Valero)
Internal
Flexible
Values
Managers
Employees
Meeting the needs of
Try to create a family
Work together for
employees, who
atmosphere by emphasizing
the good of the
participate in responding
cooperation, consideration of
organization.
to a rapidly changing
employees and customers.
environment. Consistency (Pacific Edge Software)
Internal
Stable
Following rules and
Reward people who act in
Do what they are
doing things the way
methodical, rational, orderly
told.
they should be done.
ways.
5. Types of culture (Connect, Perform) In the following diagram, identify the dimensions on which the four types of corporate cultures are based.
A.
Flexibility
Points: 1/1
B.
Stability
Points: 1/1
C.
External
Points: 1/1
D.
Internal
Points: 1/1 Close Explanation Explanation: An organization’s culture is based on the needs of the environment and the strategic focus of the company. Rapidly changing environments, such as those found today in technology and medicine, require an organization to be flexible and responsive, while environments that change more slowly, such as those found in the food industry, require an organization to be stable and efficient. Strategic management decisions also change an organization’s culture. Every manager must decide whether his or her primary goal will be to keep up with environmental changes (an external focus) or to focus on the needs of the organization (an internal focus). The following diagram shows how these variables combine to produce four different cultures. For more information on each culture, see the explanations for other questions on this page.
Use your knowledge of the four types of corporate culture to answer the following question.
In an
achievement
culture, an emphasis on winning and reaching specific ambitious goals is the glue that holds the organization together. Points: 1/1
Close Explanation Explanation: Because companies with an achievement culture operate in a stable environment and have an external strategic focus, employees often compete against each other to see who can perform best with regard to customer sales. Identify the corporate culture type illustrated in each example presented in the following table. Example
Corporate Culture Type
Lush Cosmetics is a fast- growing maker of shampoos, lotions, and bath products. A guiding motto at the company is, “We reserve the right to make mistakes.” Founder and CEO Mark Constantine is passionately devoted to change and encourages
Adaptability
employees to break boundaries, experiment, and take risks. The company kills off one-third of its product line every year to offer new and offbeat products.
Professionalism and aggressiveness are core values of Siebel Systems, which sells complex software systems. Employees are forbidden to eat at their desks or to decorate with more than one or two personal photographs. People who succeed at
Achievement
Siebel are focused, competitive, and driven to win. Those who perform and meet stringent goals are handsomely rewarded; those who don’t are fired.
Pacific Edge Software has successfully implemented this culture characteristic, ensuring that all its projects are on time an d on budget. The husband-and-wife team of Lisa Hjorten and Scott Fuller implanted a culture of order, discipline, and
Consistency
control from the moment they founded the company. Hjorten insists that the company’s culture isn’t rigid or uptight, just careful.
After buying old, run-down refineries, Valero CEO Bill Greehey’s first steps were to assure people their jobs were secure, bring in new safety equipment, and promise employees that if they worked hard he would put them first—before
Involvement
shareholders and customers. Putting employees first has engendered amazing loyalty and dedication. It has given Valero a distinctive edge during an era of cutthroat global competition in the oil industry.
Points: 1/1 Close Explanation Explanation: The following table shows the many factors used to classify an organization’s culture. Check your descriptions to see where they fall in this table. Organizational
Strategic
Needs of the
Culture
Focus
Environment
Adaptability (Lush
External
Flexible
Cosmetics)
Values
Managers
Employees
Quick action to adapt to
Reward behaviors that create
Make their own
a rapidly changing
change: creativity,
decisions and
environment.
experimentation, risk-taking.
Organizational
Strategic
Needs of the
Culture
Focus
Environment
Values
Managers
Employees
respond to customer needs. Achievement (Siebel
External
Stable
Systems)
High performance
Emphasize setting and
Focus on meeting
stemming from
meeting goals.
goals and winning.
Meeting the needs of
Try to create a family
Work together for
employees, who
atmosphere by emphasizing
the good of the
participate in responding
cooperation, consideration of
organization.
to a rapidly changing
employees and customers.
aggressive, professional actions. Involvement (Valero)
Internal
Flexible
environment. Consistency (Pacific Edge Software)
Internal
Stable
Following rules and
Reward people who act in
Do what they are
doing things the way
methodical, rational, orderly
told.
they should be done.
ways.
6. Culture, values, performance (Connect, Perform) In the following diagram, label the criteria that identify organizational outcomes.
Source: Rosenthal, J., & Masarech, M. A. ”High-Performance Cultures: How Values Can Drive Business Results”. Journal of Organizational Excellence, 3-18.
A.
Business Performance
Points: 1/1
B. Values Points: 1/1 Open Explanation Explanation: This image shows that managers must pay attention to both business performance and company values to create a high-performance organization. A focus on business performance includes setting goals and evaluating financial results, while a focus on values includes communicating the ideals that will drive a cohesive culture and shape behaviors.
Read the following research summary and answer the questions that follow.
Research Study A recent study conducted by Peter Doeringer and his colleagues pointed out a key difference between American companies and Japanese companies. While American companies tend to locate factories in areas where costs are low, Japanese companies locate their factories in areas that have a culture that is similar to the culture promoted in Japanese organizations. In the United States, Japanese companies put their factories in rural areas that have large numbers of high school graduates. Japanese managers believe that people living in those areas are more likely to be a good fit for their culture, which emphasizes cooperation and commitment to the goals of the firm. When choosing locations, both Japanese and American companies pay attention to factors that are more traditionally associated with production costs. Companies from both countries prefer locations that already have a manufacturing presence. When other manufacturers are located in a given area, it produces an “agglomeration economy,” which can lead to economies of scale and other factors that facilitate production. (Source: Doeringer, P., Evans-Klock, C., & Terkla, D. (2005). Management cultures and regional development: High performance management and the location of new manufacturing plants. European Planning Studies, 13(6), 815–830)
Doeringer’s research suggests that Japanese managers pay
attention to values and
a lot of
a lot of
attention to business performance. Points: 1/1
Based on previous research regarding the impact of values on business performance, you would expect that Japanese managers would have higher-performing companies. Points: 1/1 Close Explanation Explanation: The American companies in this study paid a lot of attention to business performance, but little attention to values. This approach leads to good short-term results, but those results may not be sustainable in the long run. The Japanese companies paid attention to both business performance and values, which leads to sustainable success and a high-performance culture. Managers who want to create a high-performance culture must create a solid organizational mission or vision, encourage individual employee ownership of both bottom-line results and the company’s culture, and act in ways that are consistent with the culture.
7. Cultural leaders (Connect, Perform) What can managers do to shape an organization’s culture? Check all that apply. Establish a vision for the company Reward employees when they act in accordance with the company’s vision Set aside values when the good of the company is at stake Over-communicate company values Points: 1/1 Close Explanation Explanation: Managers become cultural leaders when they establish a vision for the organization and act in ways that are consistent with that vision. Two of the biggest mistakes managers can make are not communicating their values and not walking the talk, or behaving in ways that go against the values they say are important. Culture at Zappos Zappos.com, an online shoe retailer, is well known for its quirky and fun work culture. Employees are encouraged to have fun at work because that fun and pure enjoyment of their job will shine through to the customer. A few of its corporate values are: “Deliver WOW Through Service” and “Create Fun and A Little Weirdness.” CEO, Tony Hsieh, has played a large role in shaping the unique culture at Zappos. Recently, however, Zappos has experienced a culture change. Tony Hsieh decided to shift the company from a traditional hierarchy to an organizational design model called Holacracy. In Holacracy, authority and decision-making are distributed across self-managed teams. Employees no longer report to a manager, but they do have mentors that can help on a more personal level. Employees are encouraged to join teams, or circles, based on job roles or social activities that they are interested in. The transition has not been easy. It has taken some Zappos employees a little time to find their best fit and around 18% of employees have left the company. Tony Hsieh remains committed to Holacracy and what he believes it can do for Zappos. (Source: Reingold, J. How A Radical Shift Left Zappos Reeling. Fortune. Retrieved from http://fortune.com/zappostony-hsieh-holacracy/)(Source: French, L. (16, January 14). Zappos’ Weird Management Style Is Costing It More Employees. Time. Retrieved from http://time.com/4180791/zappos-holacracy-buyouts/) One of Tony Hsieh’s most important roles now is to act as a cultural leader for Zappos. Using your knowledge of cultural leaders, which of the following would be the best ways for Hsieh to guide the culture at Zappos in light of the switch to Holacracy? Check all that apply. Relinquish his title as CEO in response to the change to a bossless organization. Communicate directly to employees about the changes and expectations. Acknowledge that Holacracy will be an experiment, and that Zappos may move back to their traditional hierarchy. Listen to employees concerns and be willing to change some aspects of Holacracy. Points: 0.5 / 1
Close Explanation Explanation: In response to the move to Holacracy, many of the executives at Zappos relinquished their titles including Tony Hsieh. This was important because as a cultural leader, Hsieh is expected to “walk the talk” and heed to the day -to-day activities that reinforce the cultural vision. It is also important for cultural leaders to communicate the vision to the employees. Hsieh has done this several times at meetings and also through a lengthy email sent to the entire company. As part of the commitment to Holocracy, Hsieh must also commit fully to the change. Therefore, Holacracy is accepted in full without changing any part of how it works and it is viewed as a permanent change, not just an experiment. It has been a challenge with some employees leaving, but the current employees are committed to Holocracy.