Changing a Problem Culture

question 80

Multiple Choice

Changing a problem culture

• A)is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.
• B)is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted.
• C)is best done by selecting a team of key employees to lead the culture change effort.
• D)requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture.
• E)can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

---

Definitions:

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its cash flows and initial cost.

Discount Rate

In discounted cash flow analysis, the discount rate is the interest rate utilized to ascertain the present value of future cash flows.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Salvage Value

The predicted price that an asset will fetch when it is sold at the conclusion of its usable life.