BUS5116 Leading Organizations Units 5-8 Test Bank — Culture,
Ethics, Diversity, and Strategic Leadership
Course:
BUS5116 Leading Organizations — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5116 Units 5-8 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 5:
In the Competing Values Framework, an organization that focuses heavily on internal integration,
flexibility, and employee development is best described as having which type of culture?
A) Market Culture
B) Clan Culture
C) Adhocracy Culture
D) Hierarchy Culture
Answer: B
Explanation:
A Clan Culture emphasizes internal focus and flexibility. It resembles a family-type organization
where collaboration, employee development, and shared values are prioritized over market
competition or strict rules.
Question 2 — Unit 5:
A technology firm operating in a rapidly changing environment encourages its employees to take
risks and innovate. According to the Competing Values Framework, this represents an Adhocracy
,Culture. Which of the following is a primary drawback of this cultural type?
A) Excessive bureaucracy stifling creativity
B) Lack of strategic focus on external competitors
C) Potential for chaos and lack of structured processes
D) Overemphasis on short-term financial targets
Answer: C
Explanation:
While an Adhocracy Culture promotes innovation and agility, its lack of formal structure and
emphasis on continuous experimentation can lead to operational inefficiency, role ambiguity, and
chaos if not properly managed.
Question 3 — Unit 5:
According to Edgar Schein's model of organizational culture, which of the following represents the
deepest, most invisible level of culture?
A) Artifacts and symbols
B) Espoused values
C) Basic underlying assumptions
D) Organizational structure
Answer: C
Explanation:
Basic underlying assumptions are the deeply embedded, unconscious beliefs and values that
guide behavior in an organization. Unlike artifacts (visible) or espoused values (stated), these
assumptions form the core of the culture and are the hardest to change.
Question 4 — Unit 5:
You are the CEO of a traditional manufacturing company attempting to shift toward a more
innovative culture. You change the performance evaluation metrics to reward risk-taking. In
Schein’s model, what level of culture are you directly modifying?
A) Artifacts
B) Espoused values
C) Basic assumptions
D) External adaptations
, Answer: A
Explanation:
Performance evaluation metrics, reward systems, and formal policies are considered visible
artifacts of an organization's culture. Changing them is a tangible step toward eventually
reshaping deeper values and assumptions.
Question 5 — Unit 5:
In Kurt Lewin’s three-step model of change, what is the primary objective of the "Unfreezing"
stage?
A) Establishing new reporting lines and organizational charts
B) Creating the motivation and readiness for change among employees
C) Solidifying the new behaviors to ensure they become permanent
D) Evaluating the financial impact of the proposed changes
Answer: B
Explanation:
The Unfreezing stage is about breaking down the existing status quo and overcoming resistance.
It involves communicating the need for change and creating a sense of urgency to prepare
employees for the transition.
Question 6 — Unit 5:
A retail chain is implementing a new inventory management system. Employees are frustrated
because the new software is complex, and productivity has temporarily dropped. According to the
change transition curve, what phase are the employees currently experiencing?
A) The Denial Phase
B) The Integration Phase
C) The Neutral Zone (or "Valley of Despair")
D) The Commitment Phase
Answer: C
Explanation:
The Neutral Zone, often referred to as the "Valley of Despair," occurs during the actual
implementation of change when old processes are gone but new ones are not yet mastered,
leading to confusion, reduced productivity, and frustration.
Ethics, Diversity, and Strategic Leadership
Course:
BUS5116 Leading Organizations — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5116 Units 5-8 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 5:
In the Competing Values Framework, an organization that focuses heavily on internal integration,
flexibility, and employee development is best described as having which type of culture?
A) Market Culture
B) Clan Culture
C) Adhocracy Culture
D) Hierarchy Culture
Answer: B
Explanation:
A Clan Culture emphasizes internal focus and flexibility. It resembles a family-type organization
where collaboration, employee development, and shared values are prioritized over market
competition or strict rules.
Question 2 — Unit 5:
A technology firm operating in a rapidly changing environment encourages its employees to take
risks and innovate. According to the Competing Values Framework, this represents an Adhocracy
,Culture. Which of the following is a primary drawback of this cultural type?
A) Excessive bureaucracy stifling creativity
B) Lack of strategic focus on external competitors
C) Potential for chaos and lack of structured processes
D) Overemphasis on short-term financial targets
Answer: C
Explanation:
While an Adhocracy Culture promotes innovation and agility, its lack of formal structure and
emphasis on continuous experimentation can lead to operational inefficiency, role ambiguity, and
chaos if not properly managed.
Question 3 — Unit 5:
According to Edgar Schein's model of organizational culture, which of the following represents the
deepest, most invisible level of culture?
A) Artifacts and symbols
B) Espoused values
C) Basic underlying assumptions
D) Organizational structure
Answer: C
Explanation:
Basic underlying assumptions are the deeply embedded, unconscious beliefs and values that
guide behavior in an organization. Unlike artifacts (visible) or espoused values (stated), these
assumptions form the core of the culture and are the hardest to change.
Question 4 — Unit 5:
You are the CEO of a traditional manufacturing company attempting to shift toward a more
innovative culture. You change the performance evaluation metrics to reward risk-taking. In
Schein’s model, what level of culture are you directly modifying?
A) Artifacts
B) Espoused values
C) Basic assumptions
D) External adaptations
, Answer: A
Explanation:
Performance evaluation metrics, reward systems, and formal policies are considered visible
artifacts of an organization's culture. Changing them is a tangible step toward eventually
reshaping deeper values and assumptions.
Question 5 — Unit 5:
In Kurt Lewin’s three-step model of change, what is the primary objective of the "Unfreezing"
stage?
A) Establishing new reporting lines and organizational charts
B) Creating the motivation and readiness for change among employees
C) Solidifying the new behaviors to ensure they become permanent
D) Evaluating the financial impact of the proposed changes
Answer: B
Explanation:
The Unfreezing stage is about breaking down the existing status quo and overcoming resistance.
It involves communicating the need for change and creating a sense of urgency to prepare
employees for the transition.
Question 6 — Unit 5:
A retail chain is implementing a new inventory management system. Employees are frustrated
because the new software is complex, and productivity has temporarily dropped. According to the
change transition curve, what phase are the employees currently experiencing?
A) The Denial Phase
B) The Integration Phase
C) The Neutral Zone (or "Valley of Despair")
D) The Commitment Phase
Answer: C
Explanation:
The Neutral Zone, often referred to as the "Valley of Despair," occurs during the actual
implementation of change when old processes are gone but new ones are not yet mastered,
leading to confusion, reduced productivity, and frustration.
