Changing a Problem Culture to Create Better Alignment with Strategy

question 33

Multiple Choice

Changing a problem culture to create better alignment with strategy generally does NOT involve

• A)replacing old-culture managers with new-breed managers.
• B)designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook.
• C)altering the company's financial objectives.
• D)using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors.
• E)both symbolic and substantive actions by executives to implant new cultural behaviors.

---

Definitions:

Moral Hazard

The situation where one party to an agreement can take on risk because they know the other party will bear the cost of that risk.

Safer Cars

Vehicles designed with advanced safety features and technologies to protect passengers during accidents.

Texting

The act of sending and receiving written messages through electronic devices, primarily mobile phones.

Adverse Selection

A situation in markets where buyers or sellers have information that the other party does not, leading to suboptimal market outcomes.