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

Question

1. In corporate cults, the culture is so strong that it focuses employees on one mental model so
much that they may fail to see issues from different perspectives.
2. Efficiency-focused cultures are likely to be more important for companies in environments with
strong competition and standardized products.
3. Very strong cultures often become dysfunctional when they discourage dissenting subcultural
values.
4. Organizations with adaptive cultures are unable to maintain a stable value system and,
consequently, tend to perform poorly in the long run.
5. The first step in a bicultural audit is to identify strategies and prepare action plans to bridge the two organizations cultures.

Answer 1

1. TRUE
One reason why corporate cults may undermine organizational effectiveness is that they lock
people into mental models, which can blind them to new opportunities and unique problems.
2. TRUE
Companies require an employee-centric culture in environments where business success
depends mainly on employee talent, whereas an efficiency-focused culture may be more
critical for companies in environments with strong competition and standardized products.
3. TRUE
Strong cultures may be dysfunctional because they suppress dissenting subcultural values.
4. FALSE
An adaptive culture exists when employees are receptive to change—they assume that the
organization needs to continuously adapt to its external environment and that they need to be
flexible in their roles within the organization. This does not imply that they will perform poorly in the long run.
5. FALSE
A bicultural audit diagnoses cultural relations between the companies and determines the
extent to which cultural clashes will likely occur. The bicultural audit process begins by
identifying cultural differences between the merging companies. The final stage involves
identifying strategies and preparing action plans to bridge the two organizations' cultures.