Which of the following statements is true regarding the establishment of the organizational culture and its effects on the organization?
A) Employees organized in teams always show greater allegiance to the values of the organization as a whole than to their team and its values.
B) Culture acts as a control mechanism and guides the behavior of employees.
C) In a virtual organization a strong culture can be established quickly and easily.
D) Today's trend toward decentralized organizations makes it is easier to establish a strong culture.
E) Cultures reduce the stability of the social system in an organization.

Statement B) "Culture acts as a control mechanism and guides the behavior of employees" is true regarding the establishment of organizational culture and its effects on the organization.

By the term "organizational culture", we mean the various internal values and practices that are made for the organization. In other words, it means the set values, practices, and behaviors that guide the members of the organization.

The set values may include shared values and beliefs that the leaders expect the members to follow.

They may also include the experiences of the members, philosophies that the organization hopes to see in the members and help guide their behavior.

The company's beliefs and expectations of its members, and how it helps influence their attitude also embody the organizational culture.

This set of cultures help the organization function as a pack/ unit and acts as a control mechanism for the members. It regulates and guides their behavior which helps the organization in maintaining a smooth flowing work ethic. Thus, the correct answer is option B.

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