Question 1

Business process reengineering

Accepted Answer

A) involves radically redesigning and streamlining the workflow (typically enabled by cutting-edge use of online technology and information systems), with the goal of achieving quantum gains in performance of the activity. 
B) is not a useful tool for streamlining a company's work effort and moving it closer to operational excellence. 
C) is the major tool that ambidextrous organizations deploy to drive continuous improvement efforts. 
D) is typically cheaper and easier than using Six Sigma techniques to achieve the same cost savings. 
E) is a company's best justification for eliminating all nonmonetary rewards and incentives for its employees. 
A) involves radically redesigning and streamlining the workflow (typically enabled by cutting-edge use of online technology and information systems), with the goal of achieving quantum gains in performance of the activity. 
B) is not a useful tool for streamlining a company's work effort and moving it closer to operational excellence. 
C) is the major tool that ambidextrous organizations deploy to drive continuous improvement efforts. 
D) is typically cheaper and easier than using Six Sigma techniques to achieve the same cost savings. 
E) is a company's best justification for eliminating all nonmonetary rewards and incentives for its employees.

Question 2

The use of incentives and rewards is the single most powerful tool at management's disposal to win strong employee commitment to carrying out the strategic plan.Explain.

Accepted Answer

A) True 
 B)False

Question 3

A local dairy that produces organic milk, yogurt, butter, and ice cream has asked you to provide a tool for its managers to promote operating excellence in performing value chain activities. Which tools and methods would you NOT recommend to the owners of the local dairy?

Accepted Answer

A) Utilize benchmarking. 
B) Adapt best practices. 
C) Install TQM and/or Six Sigma quality control techniques. 
D) Undertake business process reengineering. 
E) Adopt standard industry techniques. 
A) Utilize benchmarking. 
B) Adapt best practices. 
C) Install TQM and/or Six Sigma quality control techniques. 
D) Undertake business process reengineering. 
E) Adopt standard industry techniques.

Question 4

Angela, owner of Sift Cupcakes, a specialty baking company, has decided to consult with her staff before introducing nonmonetary incentives to enhance employee motivation. When she asked her staff for with some ideas, she decided to implement all of the following EXCEPT

Accepted Answer

A) eliminating perks and fringe benefits, such as maternity leave and onsite child care. 
B) giving awards and public recognition to high performers and showcasing company successes. 
C) sharing information with staff about the company's strategic plan and its operating and financial performance. 
D) providing opportunities for employees to quickly move up the ranks to join the management level. 
E) creating a work atmosphere where there was genuine caring and mutual respect among staff and between management and staff. 
A) eliminating perks and fringe benefits, such as maternity leave and onsite child care. 
B) giving awards and public recognition to high performers and showcasing company successes. 
C) sharing information with staff about the company's strategic plan and its operating and financial performance. 
D) providing opportunities for employees to quickly move up the ranks to join the management level. 
E) creating a work atmosphere where there was genuine caring and mutual respect among staff and between management and staff.

Question 5

Six Sigma processes

Accepted Answer

A) are based on three principles: (1)all work is a statistically controllable process; (2)no well-controlled process allows variability; and (3)defect-free work requires tight statistical controls. 
B) can be used for both improving existing business processes and for developing new processes or products. 
C) can be used for improving products or business processes but not for developing new products or new processes. 
D) consists of a disciplined, statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process. 
E) can be used for developing new products or new business processes but not for improving existing products or business processes. 
A) are based on three principles: (1)all work is a statistically controllable process; (2)no well-controlled process allows variability; and (3)defect-free work requires tight statistical controls. 
B) can be used for both improving existing business processes and for developing new processes or products. 
C) can be used for improving products or business processes but not for developing new products or new processes. 
D) consists of a disciplined, statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process. 
E) can be used for developing new products or new business processes but not for improving existing products or business processes.

Question 6

Leaving employees to their own devices in meeting performance standards

Accepted Answer

A) enables managers to monitor daily and weekly operating statistics without resorting to constant over-the-shoulder supervision. 
B) optimizes the performance of self-managed work groups in peer-based control environments. 
C) is preferable to relying on peer pressure to keep team members operating between the white lines. 
D) is NOT a recommended way for managers to monitor the operating performance of employees to ensure superior strategy execution. 
E) is the best use of information systems capabilities in the strategy execution effort. 
A) enables managers to monitor daily and weekly operating statistics without resorting to constant over-the-shoulder supervision. 
B) optimizes the performance of self-managed work groups in peer-based control environments. 
C) is preferable to relying on peer pressure to keep team members operating between the white lines. 
D) is NOT a recommended way for managers to monitor the operating performance of employees to ensure superior strategy execution. 
E) is the best use of information systems capabilities in the strategy execution effort.

Question 7

Six Sigma quality control

Accepted Answer

A) is a strategy implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs. 
B) consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. 
C) consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process. 
D) consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions. 
E) is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs. 
A) is a strategy implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs. 
B) consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. 
C) consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process. 
D) consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions. 
E) is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs.

Question 8

To obtain maximum benefits from benchmarking, best practices, reengineering, TQM, and Six Sigma programs aimed at facilitating better strategy execution, managers need to

Accepted Answer

A) start with a clear idea of what specific outcomes really matter, such as a Six Sigma defect rate or superior customer satisfaction, and then build a total quality culture that is genuinely committed to achieving these outcomes. 
B) have annual contests to see which part of the company is making the greatest strides in approaching operating excellence. 
C) strive for 100 percent control over the variability in how each and every value chain activity is performed. 
D) have at least 50 percent of company personnel earn "green belts" in Six Sigma techniques. 
E) build core competencies in TQM, Six Sigma, benchmarking, best practices adoption, and business process reengineering. 
A) start with a clear idea of what specific outcomes really matter, such as a Six Sigma defect rate or superior customer satisfaction, and then build a total quality culture that is genuinely committed to achieving these outcomes. 
B) have annual contests to see which part of the company is making the greatest strides in approaching operating excellence. 
C) strive for 100 percent control over the variability in how each and every value chain activity is performed. 
D) have at least 50 percent of company personnel earn "green belts" in Six Sigma techniques. 
E) build core competencies in TQM, Six Sigma, benchmarking, best practices adoption, and business process reengineering.

Question 9

A compensation and reward system designed to help drive successful strategy execution does NOT normally encompass

Accepted Answer

A) tying incentives to performance outcomes directly linked to good strategy execution and financial performance 
B) keeping the time between achieving the target performance outcome and the payment of the reward as short as possible 
C) making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect 
D) providing generous rewards for people who turn in outstanding performances 
E) offering rewards that amount to 3 percent of an employee's total compensation 
A) tying incentives to performance outcomes directly linked to good strategy execution and financial performance 
B) keeping the time between achieving the target performance outcome and the payment of the reward as short as possible 
C) making sure that the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect 
D) providing generous rewards for people who turn in outstanding performances 
E) offering rewards that amount to 3 percent of an employee's total compensation

Question 10

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York, signaling a change of strategy. Which of the following statements about Cavco is most likely true?

Accepted Answer

A) Cavco is impeding the efforts to proficiently execute the strategy. 
B) Cavco is merely fine-tuning its existing strategy to test efficiency. 
C) Cavco is marshalling resources to support a new strategic initiative. 
D) Cavco is hampering work climate conducive for good strategy execution. 
E) Cavco is focusing on activities that are a low priority in the strategy execution effort. 
A) Cavco is impeding the efforts to proficiently execute the strategy. 
B) Cavco is merely fine-tuning its existing strategy to test efficiency. 
C) Cavco is marshalling resources to support a new strategic initiative. 
D) Cavco is hampering work climate conducive for good strategy execution. 
E) Cavco is focusing on activities that are a low priority in the strategy execution effort.

Question 11

What is NOT a recommended incentive when trying to gain employees' wholehearted commitment to good strategy execution and operating excellence?

Accepted Answer

A) providing attractive perks and fringe benefits. 
B) giving awards and public recognition to high performers and showcasing company successes. 
C) creating a work atmosphere in which there is genuine caring and mutual respect among workers and between management and employees. 
D) relying on opportunities for promoting from within wherever possible. 
E) withholding information from employees about financial performance, strategy, and competitors' actions. 
A) providing attractive perks and fringe benefits. 
B) giving awards and public recognition to high performers and showcasing company successes. 
C) creating a work atmosphere in which there is genuine caring and mutual respect among workers and between management and employees. 
D) relying on opportunities for promoting from within wherever possible. 
E) withholding information from employees about financial performance, strategy, and competitors' actions.

Question 12

How do Six Sigma quality control programs benefit the Charleston Area Medical Center, and what are two types of programs that they include?

Accepted Answer

The Charleston Area Medical Center (CAMC

Question 13

Total quality management (TQM)emphasizes all of the following EXCEPT

Accepted Answer

A) a 100 percent accuracy in performing tasks. 
B) the continuous improvement in all phases of operations. 
C) the adoption of industry standard operating practices. 
D) benchmarking and total customer satisfaction. 
E) the empowerment of employees and team-based work design. 
A) a 100 percent accuracy in performing tasks. 
B) the continuous improvement in all phases of operations. 
C) the adoption of industry standard operating practices. 
D) benchmarking and total customer satisfaction. 
E) the empowerment of employees and team-based work design.

Question 14

How does TQM differ from business process reengineering? Explain the value of striving for continuous improvement in processes and activities.

Accepted Answer

An essential difference between business

Question 15

Information systems provide managers with a means for monitoring all of the following EXCEPT

Accepted Answer

A) the results that flow from the actions of subordinates. 
B) the performance of empowered workers. 
C) weekly operating statistics. 
D) employees with over-the-shoulder supervision. 
E) daily operating statistics. 
A) the results that flow from the actions of subordinates. 
B) the performance of empowered workers. 
C) weekly operating statistics. 
D) employees with over-the-shoulder supervision. 
E) daily operating statistics.

Question 16

Benchmarking is defined as the process of identifying, studying, and implementing best practices in executing strategy. Suppose you are managing a local landscaping company. How would you justify the use of benchmarking for your business?

Accepted Answer

Benchmarking enables managers to look ou

Question 17

From a strategy-implementing/strategy-executing perspective, operating budget allocations should

Accepted Answer

A) primarily be based on the number of new strategic initiatives being implemented in each operating department. 
B) be based on the number of people employed in each of the divisions. 
C) be strategy-driven and based on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively. 
D) be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors. 
E) depend on how much stretch there is in each department's objectives and what additional resources are needed to help reach these performance targets. 
A) primarily be based on the number of new strategic initiatives being implemented in each operating department. 
B) be based on the number of people employed in each of the divisions. 
C) be strategy-driven and based on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively. 
D) be linked to the costs of performing value chain activities as determined by benchmarking against best-in-industry competitors. 
E) depend on how much stretch there is in each department's objectives and what additional resources are needed to help reach these performance targets.

Question 18

An important consideration in designing a strategy-supportive reward system is to

Accepted Answer

A) link the payment of all monetary rewards to the company's bottom-line profitability. 
B) employ incentives that will help motivate employees to put in long hours and sacrifice personal ambitions and aspirations to pursue the priorities of management. 
C) choose those types of rewards and incentives that will focus employees' attention on total customer satisfaction. 
D) make across-the-board wage and salary increases the cornerstone of monetary rewards. 
E) make nonmonetary rewards and recognition an integral part of the reward system. 
A) link the payment of all monetary rewards to the company's bottom-line profitability. 
B) employ incentives that will help motivate employees to put in long hours and sacrifice personal ambitions and aspirations to pursue the priorities of management. 
C) choose those types of rewards and incentives that will focus employees' attention on total customer satisfaction. 
D) make across-the-board wage and salary increases the cornerstone of monetary rewards. 
E) make nonmonetary rewards and recognition an integral part of the reward system.

Question 19

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

Accepted Answer

A) Make the performance bonus at least 3 to 4 percent of base salary to have some impact. 
B) Make the performance bonus at least 10 to 12 percent of base salary to have some impact. 
C) Make the performance payoff equal for average and below-average performers. 
D) Set unrealistic performance standards, but with an equally high compensation. 
E) Reward people who work very hard, even if they fall short of achieving performance targets. 
A) Make the performance bonus at least 3 to 4 percent of base salary to have some impact. 
B) Make the performance bonus at least 10 to 12 percent of base salary to have some impact. 
C) Make the performance payoff equal for average and below-average performers. 
D) Set unrealistic performance standards, but with an equally high compensation. 
E) Reward people who work very hard, even if they fall short of achieving performance targets.

Question 20

Lagunitas Brewing Company has successfully and methodically applied Six Sigma methods to its value chain, activity by activity, so that the company can

Accepted Answer

A) clearly consider what it will take to overtake rivals with the industry's overall best strategy. 
B) make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation. 
C) increase its bargaining power with suppliers and create better seller-supplier collaborations. 
D) assess the extent to which rivals have competitively valuable competencies or capabilities. 
E) construct a business model that entails a value proposition based on quality. 
A) clearly consider what it will take to overtake rivals with the industry's overall best strategy. 
B) make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation. 
C) increase its bargaining power with suppliers and create better seller-supplier collaborations. 
D) assess the extent to which rivals have competitively valuable competencies or capabilities. 
E) construct a business model that entails a value proposition based on quality.

Business process reengineering

The use of incentives and rewards is the single most powerful tool at management's disposal to win strong employee commitment to carrying out the strategic plan.Explain.

A local dairy that produces organic milk, yogurt, butter, and ice cream has asked you to provide a tool for its managers to promote operating excellence in performing value chain activities. Which tools and methods would you NOT recommend to the owners of the local dairy?

Angela, owner of Sift Cupcakes, a specialty baking company, has decided to consult with her staff before introducing nonmonetary incentives to enhance employee motivation. When she asked her staff for with some ideas, she decided to implement all of the following EXCEPT

Six Sigma processes

Leaving employees to their own devices in meeting performance standards

Six Sigma quality control

To obtain maximum benefits from benchmarking, best practices, reengineering, TQM, and Six Sigma programs aimed at facilitating better strategy execution, managers need to

A compensation and reward system designed to help drive successful strategy execution does NOT normally encompass

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York, signaling a change of strategy. Which of the following statements about Cavco is most likely true?

What is NOT a recommended incentive when trying to gain employees' wholehearted commitment to good strategy execution and operating excellence?

How do Six Sigma quality control programs benefit the Charleston Area Medical Center, and what are two types of programs that they include?

Total quality management (TQM)emphasizes all of the following EXCEPT

How does TQM differ from business process reengineering? Explain the value of striving for continuous improvement in processes and activities.

Information systems provide managers with a means for monitoring all of the following EXCEPT

Benchmarking is defined as the process of identifying, studying, and implementing best practices in executing strategy. Suppose you are managing a local landscaping company. How would you justify the use of benchmarking for your business?

From a strategy-implementing/strategy-executing perspective, operating budget allocations should

An important consideration in designing a strategy-supportive reward system is to

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

Lagunitas Brewing Company has successfully and methodically applied Six Sigma methods to its value chain, activity by activity, so that the company can

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Corporate Culture and Leadership

Filters

Exam 11: Managing Internal Operations

Business process reengineering

The use of incentives and rewards is the single most powerful tool at management's disposal to win strong employee commitment to carrying out the strategic plan.Explain.

A local dairy that produces organic milk, yogurt, butter, and ice cream has asked you to provide a tool for its managers to promote operating excellence in performing value chain activities. Which tools and methods would you NOT recommend to the owners of the local dairy?

Angela, owner of Sift Cupcakes, a specialty baking company, has decided to consult with her staff before introducing nonmonetary incentives to enhance employee motivation. When she asked her staff for with some ideas, she decided to implement all of the following EXCEPT

Six Sigma processes

Leaving employees to their own devices in meeting performance standards

Six Sigma quality control

To obtain maximum benefits from benchmarking, best practices, reengineering, TQM, and Six Sigma programs aimed at facilitating better strategy execution, managers need to

A compensation and reward system designed to help drive successful strategy execution does NOT normally encompass

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York, signaling a change of strategy. Which of the following statements about Cavco is most likely true?

What is NOT a recommended incentive when trying to gain employees' wholehearted commitment to good strategy execution and operating excellence?

How do Six Sigma quality control programs benefit the Charleston Area Medical Center, and what are two types of programs that they include?

Total quality management (TQM)emphasizes all of the following EXCEPT

How does TQM differ from business process reengineering? Explain the value of striving for continuous improvement in processes and activities.

Information systems provide managers with a means for monitoring all of the following EXCEPT

Benchmarking is defined as the process of identifying, studying, and implementing best practices in executing strategy. Suppose you are managing a local landscaping company. How would you justify the use of benchmarking for your business?

From a strategy-implementing/strategy-executing perspective, operating budget allocations should

An important consideration in designing a strategy-supportive reward system is to

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees. What would be their best approach?

Lagunitas Brewing Company has successfully and methodically applied Six Sigma methods to its value chain, activity by activity, so that the company can

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Building an Organization Capable of Good Strategy Execution

Corporate Culture and Leadership

Filters