Question 1

Which of the following is not one of the functions of reward and incentive systems?

Accepted Answer

A)  They represent a poor means of influencing an organization's culture. 
B)  They focus efforts on high-priority tasks. 
C)  They motivate high levels of individual and collective task performance. 
D)  They represent an effective control mechanism. 
A)  They represent a poor means of influencing an organization's culture. 
B)  They focus efforts on high-priority tasks. 
C)  They motivate high levels of individual and collective task performance. 
D)  They represent an effective control mechanism. A

Question 2

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

Accepted Answer

A) True 
 B)False  True

Question 3

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)  low; financial 
B)  low; behavioural 
C)  high; financial 
D)  high; behavioural 
A)  low; financial 
B)  low; behavioural 
C)  high; financial 
D)  high; behavioural D

Question 4

In terms of building a strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on

Accepted Answer

A)  innovation. 
B)  customer service. 
C)  strategy formulation. 
D)  operational efficiency. 
A)  innovation. 
B)  customer service. 
C)  strategy formulation. 
D)  operational efficiency.

Question 5

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

Accepted Answer

A)  posting written statements of the organization's goals and objectives. 
B)  discouraging the formation of subcultures that isolate work groups. 
C)  designing effective reward systems. 
D)  encouraging employees to see themselves as free agents. 
A)  posting written statements of the organization's goals and objectives. 
B)  discouraging the formation of subcultures that isolate work groups. 
C)  designing effective reward systems. 
D)  encouraging employees to see themselves as free agents.

Question 6

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Accepted Answer

A) True 
 B)False

Question 7

Managerial opportunism

Accepted Answer

A)  is a by-product of a cost leadership strategy 
B)  is limited by takeover constraint 
C)  is only a factor in global firms. 
D)  is encouraged by takeover constraint. 
A)  is a by-product of a cost leadership strategy 
B)  is limited by takeover constraint 
C)  is only a factor in global firms. 
D)  is encouraged by takeover constraint.

Question 8

All of the following are characteristics of effective reward and incentive systems except:

Accepted Answer

A)  performance measures are clear and highly visible. 
B)  the structure is fixed to assure employees of consistency. 
C)  the compensation system is perceived as fair and equitable. 
D)  objectives are well understood, and broadly accepted. 
A)  performance measures are clear and highly visible. 
B)  the structure is fixed to assure employees of consistency. 
C)  the compensation system is perceived as fair and equitable. 
D)  objectives are well understood, and broadly accepted.

Question 9

Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

Accepted Answer

A) True 
 B)False

Question 11

All of the following are examples of how organizational culture exerts behavioural control except

Accepted Answer

A)  culture helps maintain control by creating behavioural norms. 
B)  culture generates unwritten standards of acceptable behaviour. 
C)  culture encourages individual identification with the organization and its objectives. 
D)  culture sets explicit boundaries. 
A)  culture helps maintain control by creating behavioural norms. 
B)  culture generates unwritten standards of acceptable behaviour. 
C)  culture encourages individual identification with the organization and its objectives. 
D)  culture sets explicit boundaries.

Question 12

In firms that follow related diversification strategies, reward and control systems rely on behavioural indicators since the organization needs to reward and reinforce behaviours that facilitate sharing and collaboration.

Accepted Answer

A) True 
 B)False

Question 13

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Accepted Answer

A)  Action plans are submitted by lower level managers 
B)  Performance is measured against the predetermined goal 
C)  Strategies are implemented 
D)  Strategies are formulated and top management sets goals 
A)  Action plans are submitted by lower level managers 
B)  Performance is measured against the predetermined goal 
C)  Strategies are implemented 
D)  Strategies are formulated and top management sets goals

Question 14

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Accepted Answer

A) True 
 B)False

Question 15

Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.

Accepted Answer

A) True 
 B)False

Question 16

Stock analysts generally issue more "sell" recommendations than "buy" recommendations.

Accepted Answer

A) True 
 B)False

Question 17

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

Accepted Answer

A) True 
 B)False

Question 18

The primary drawback of "traditional" strategic control systems is

Accepted Answer

A)  they are only appropriate when the environment is stable and simple. 
B)  goals and objectives cannot be measured with a high level of certainty. 
C)  they lead to complacency. 
D)  they lack the flexibility needed to adjust to changes in the environment. 
A)  they are only appropriate when the environment is stable and simple. 
B)  goals and objectives cannot be measured with a high level of certainty. 
C)  they lead to complacency. 
D)  they lack the flexibility needed to adjust to changes in the environment.

Question 19

Which of the following is not one of the characteristics of a contemporary control system?

Accepted Answer

A)  It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. 
B)  It must focus on constantly changing information that is strategically important. 
C)  It circumvents the need for face-to-face meetings among superiors, subordinates, and peers. 
D)  It generates information that is important enough to demand regular and frequent attention. 
A)  It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. 
B)  It must focus on constantly changing information that is strategically important. 
C)  It circumvents the need for face-to-face meetings among superiors, subordinates, and peers. 
D)  It generates information that is important enough to demand regular and frequent attention.

Question 20

Why is it important to have a balance among the three behavioural controls?

Accepted Answer

Behavioural controls are extremely usefu

Which of the following is not one of the functions of reward and incentive systems?

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

In firms with differentiation strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

In terms of building a strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Managerial opportunism

All of the following are characteristics of effective reward and incentive systems except:

Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

All of the following are examples of how organizational culture exerts behavioural control except

In firms that follow related diversification strategies, reward and control systems rely on behavioural indicators since the organization needs to reward and reinforce behaviours that facilitate sharing and collaboration.

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.

Stock analysts generally issue more "sell" recommendations than "buy" recommendations.

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

The primary drawback of "traditional" strategic control systems is

Which of the following is not one of the characteristics of a contemporary control system?

Why is it important to have a balance among the three behavioural controls?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 10: Creating Effective Organizational Designs

Which of the following is not one of the functions of reward and incentive systems?

Short-term objectives and action plans are types of boundaries that channel the efforts of employees toward goal accomplishment.

In firms with differentiation strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

In terms of building a strong and effective corporate culture, Canada's Cirque du Soleil was described as focusing on

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

For firms competing in highly unstable and turbulent industries, "traditional" strategic controls are most appropriate.

Managerial opportunism

All of the following are characteristics of effective reward and incentive systems except:

Auditors are appointed by the Securities and Exchange Commission to audit a company's financial statements.

Boundaries and constraints, when used properly, can minimize improper and unethical conduct.

All of the following are examples of how organizational culture exerts behavioural control except

In firms that follow related diversification strategies, reward and control systems rely on behavioural indicators since the organization needs to reward and reinforce behaviours that facilitate sharing and collaboration.

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Behavioural control systems use culture, rewards, and boundaries in a balanced and consistent way to achieve results.

Sales quotas, operating budgets, and production schedules are examples of "traditional" controls.

Stock analysts generally issue more "sell" recommendations than "buy" recommendations.

Continuous monitoring enhances an organization's ability to respond with speed and flexibility.

The primary drawback of "traditional" strategic control systems is

Which of the following is not one of the characteristics of a contemporary control system?

Why is it important to have a balance among the three behavioural controls?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangible Resources

Business-Level Strategy: Creating and Sustaining Competitive Advantages

Corporate-Level Strategy: Creating Value Through Diversification

International Strategy: Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

In firms with differentiation strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.