Question 1

If a management innovation is going to be successful, it needs to address:

Accepted Answer

A)  decision making should rest with the CEO 
B)  incentive and reward systems. 
C)  shareholders' concerns. 
D)  the rights of the Board of Directors 
A)  decision making should rest with the CEO 
B)  incentive and reward systems. 
C)  shareholders' concerns. 
D)  the rights of the Board of Directors B

Question 2

Phillip Crosby asserts that, "Quality is free". Is he right?

Accepted Answer

No, if taken literally, quality is not free. Management has to take a lot of time and put in a lot of money to ensure quality is maintained. Is this worth it? Crosby would say, "yes" under all circumstances. But that is not really true - it depends on whether an additional dollar spent on monitoring quality adds an additional dollar of value to the firm. What if does not? Crosby would still recommend that action. But it will have to come at the cost of economic value, and that is still a cost.

Question 3

In flatter organizations:

Accepted Answer

A)  reengineering reduces ABC opportunities. 
B)  reengineering reduces replacement opportunities. 
C)  reengineering increases advancement opportunities. 
D)  reengineering reduces advancement opportunities. 
A)  reengineering reduces ABC opportunities. 
B)  reengineering reduces replacement opportunities. 
C)  reengineering increases advancement opportunities. 
D)  reengineering reduces advancement opportunities. D

Question 4

Value maximizing managers will undertake quality improvements only where:

Accepted Answer

A)  the total benefits exceed total costs of enhancement. 
B)  the incremental benefits equal the incremental costs of enhancement. 
C)  the incremental benefits fall below the incremental costs of enhancement. 
D)  the incremental benefits exceed the incremental costs of enhancement. 
A)  the total benefits exceed total costs of enhancement. 
B)  the incremental benefits equal the incremental costs of enhancement. 
C)  the incremental benefits fall below the incremental costs of enhancement. 
D)  the incremental benefits exceed the incremental costs of enhancement.

Question 5

ABC:

Accepted Answer

A)  has been very successful because the interests of those who undertake it and those that are being evaluated are aligned. 
B)  has been very successful because the interests of those who undertake it and those that are being evaluated are not perfectly aligned. 
C)  has been very unsuccessful because the interests of those who undertake it and those that are being evaluated are aligned. 
D)  has been very unsuccessful because those who undertake it are those that are being evaluated. 
A)  has been very successful because the interests of those who undertake it and those that are being evaluated are aligned. 
B)  has been very successful because the interests of those who undertake it and those that are being evaluated are not perfectly aligned. 
C)  has been very unsuccessful because the interests of those who undertake it and those that are being evaluated are aligned. 
D)  has been very unsuccessful because those who undertake it are those that are being evaluated.

Question 6

Economic Value Added attempts to make:

Accepted Answer

A)  adds value to the firm's shareholders. 
B)  the performance evaluation fair and credible. 
C)  the concept of activity based costing more credible. 
D)  the concept of residual income the basis for incentive compensation. 
A)  adds value to the firm's shareholders. 
B)  the performance evaluation fair and credible. 
C)  the concept of activity based costing more credible. 
D)  the concept of residual income the basis for incentive compensation.

Question 7

Economic Value Added:

Accepted Answer

A)  is used to reward the top-management fairly. 
B)  is used to reward the small shareholders fairly. 
C)  can backfire if top-level managers do not add any value. 
D)  can backfire if the rewards do not trickle all the way down. 
A)  is used to reward the top-management fairly. 
B)  is used to reward the small shareholders fairly. 
C)  can backfire if top-level managers do not add any value. 
D)  can backfire if the rewards do not trickle all the way down.

Question 8

ABC:

Accepted Answer

A)  has been very successful in recent years and is adopted widely. 
B)  has been very successful in recent years but is not adopted widely. 
C)  has been very unsuccessful but is still adopted because of legal requirements. 
D)  has been very unsuccessful and has been replaced with traditional methods. 
A)  has been very successful in recent years and is adopted widely. 
B)  has been very successful in recent years but is not adopted widely. 
C)  has been very unsuccessful but is still adopted because of legal requirements. 
D)  has been very unsuccessful and has been replaced with traditional methods.

Question 9

Just-In-Time production and inventory control can result in:

Accepted Answer

A)  complete dependence on one supplier. 
B)  large excess inventories that mess up production schedule. 
C)  a lack of coordination between supplier and assembler. 
D)  decreased risk bearing on the part of the assembler. 
A)  complete dependence on one supplier. 
B)  large excess inventories that mess up production schedule. 
C)  a lack of coordination between supplier and assembler. 
D)  decreased risk bearing on the part of the assembler.

Question 10

JIT stands for:

Accepted Answer

A)  juried information technology systems. 
B)  just improved transportation systems. 
C)  just in time production/inventory control systems. 
D)  justice, integrity, and transcendence in management ethics. 
A)  juried information technology systems. 
B)  just improved transportation systems. 
C)  just in time production/inventory control systems. 
D)  justice, integrity, and transcendence in management ethics.

Question 11

What changes in the marketplace and in technology have spurred the movement toward TQM-like architecture changes in modern corporations?

Accepted Answer

Advances in quality control technology -

Question 12

Provide some examples of management innovations that came and went.

Accepted Answer

In the early 90s people were talking abo

Question 13

"Market forces determine the success of any management innovation". Do you agree?

Accepted Answer

Yes. Consider the success of TQM in the

Question 14

Economic Value Added is a technique that attempts to make the idea of residual income the basis for:

Accepted Answer

A)  decision-making authority 
B)  risk-bearing capacity 
C)  incentive compensation 
D)  activity-based costing 
A)  decision-making authority 
B)  risk-bearing capacity 
C)  incentive compensation 
D)  activity-based costing

Question 15

The relation between quality and firm value is:

Accepted Answer

A)  a vertical line. 
B)  a flat line. 
C)  an inverted U-shape. 
D)  U-shaped. 
A)  a vertical line. 
B)  a flat line. 
C)  an inverted U-shape. 
D)  U-shaped.

Question 16

Evidence suggests that, "many business may waste millions of dollars a year on quality-improvement strategies that don't improve their performance and may even hamper it". Based on this, evaluate the practice of management innovation within an architecture critically.

Accepted Answer

Most of the time management goes about c

Question 17

A cost of reengineering programs is that they change:

Accepted Answer

A)  performance-evaluation systems but not decision rights. 
B)  decision rights but not performance-evaluation systems. 
C)  the external market forces as well as the organizational architecture. 
D)  the measures used to evaluate high-level executives. 
A)  performance-evaluation systems but not decision rights. 
B)  decision rights but not performance-evaluation systems. 
C)  the external market forces as well as the organizational architecture. 
D)  the measures used to evaluate high-level executives.

Question 18

Of the three components of a good organizational architecture, what management technique - popular during the 1990s - seems to use all three?

Accepted Answer

A)  Benchmarking. 
B)  TQM. 
C)  Economic Value Added. 
D)  Just-In-Time Production and Inventory Control. 
A)  Benchmarking. 
B)  TQM. 
C)  Economic Value Added. 
D)  Just-In-Time Production and Inventory Control.

Question 19

The text expends considerable effort detailing the reengineering of a hospital service company. At the end of the case study, the text notes that changes in process and structure inside the hospital were complementary. In the context of organizational architecture, what does that mean?

Accepted Answer

The elements of reorganization are compl

Question 20

A key to understanding the difference between TQM and other management innovations is TQM's emphasis on:

Accepted Answer

A)  one-time reengineering of production processes. 
B)  a reorganization of inventory control. 
C)  outsourcing. 
D)  continuous improvement. 
A)  one-time reengineering of production processes. 
B)  a reorganization of inventory control. 
C)  outsourcing. 
D)  continuous improvement.

Exam 23: Organizational Architecture and the Process of Management Innovation

If a management innovation is going to be successful, it needs to address:

Phillip Crosby asserts that, "Quality is free". Is he right?

In flatter organizations:

Value maximizing managers will undertake quality improvements only where:

ABC:

Economic Value Added attempts to make:

Economic Value Added:

ABC:

Just-In-Time production and inventory control can result in:

JIT stands for:

What changes in the marketplace and in technology have spurred the movement toward TQM-like architecture changes in modern corporations?

Provide some examples of management innovations that came and went.

"Market forces determine the success of any management innovation". Do you agree?

Economic Value Added is a technique that attempts to make the idea of residual income the basis for:

The relation between quality and firm value is:

Evidence suggests that, "many business may waste millions of dollars a year on quality-improvement strategies that don't improve their performance and may even hamper it". Based on this, evaluate the practice of management innovation within an architecture critically.

A cost of reengineering programs is that they change:

Of the three components of a good organizational architecture, what management technique - popular during the 1990s - seems to use all three?

The text expends considerable effort detailing the reengineering of a hospital service company. At the end of the case study, the text notes that changes in process and structure inside the hospital were complementary. In the context of organizational architecture, what does that mean?

A key to understanding the difference between TQM and other management innovations is TQM's emphasis on:

Introduction

Economists View of Behavior

Markets, Organizations, and the Role of Knowledge

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: The Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: The Economics of Regulation

Ethics and Organizational Architecture

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