Answer the following statements true (T) or false (F)

Question

1. Dave, a graphic designer with Development Advertising, enjoys working for the company because of the flexibility of its management and its culture, which encourages risk taking, innovation, and creativity. Dave gets quick answers from his boss, which allows him and Development Advertising to quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture.
2. Thrifty Bank has an external focus, concentrating on strategic planning, risk taking, and flexibility over stability. Thrifty Bank has a hierarchy culture.
3. Changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors.
4. The AFL-CIO is an example of a for-profit organization, and the March of Dimes is an example of a nonprofit organization.

Answer 1

1. TRUE
An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done.
2. FALSE
Hierarchy culture has an internal focus and values stability and control over flexibility. Companies with this kind of culture are apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products. Thrifty bank has an adhocracy culture, which has an external focus and values creativity.
3. TRUE
Changing organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance criteria; measurable and controllable activities; organizational structure; and organizational systems and procedures.
4. FALSE
Mutual-benefit organizations (such as the AFL-CIO) are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations). Nonprofit organizations (such as the March of Dimes) are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft, Dell Computer, Delta Airlines).