Certified Hospitality Manager (CHM) Practice Exam

How is organizational culture defined?

1. A set of financial objectives

2. Specific values and beliefs shared throughout the organization

3. The diversity of the employees

4. The operational procedures of a company

The correct answer is: Specific values and beliefs shared throughout the organization

Organizational culture is defined as the specific values and beliefs shared throughout the organization. This encompasses the underlying norms, rituals, and shared understanding that influence how employees interact with one another and make decisions. A strong organizational culture shapes the behavior and mindset of employees, guiding their actions and fostering a sense of belonging and identity within the organization. The other options do not capture the essence of organizational culture. While financial objectives can be a part of an organization’s goals, they do not reflect the deeper values and beliefs that constitute its culture. Diversity among employees is important for inclusivity and innovation but does not define what the organization stands for at its core. Lastly, operational procedures are important for standardizing processes but do not convey the shared values and beliefs that truly define an organization's culture.