Question 1

Changes in an organizational architecture must be:

Accepted Answer

A) coordinated and done randomly,starting with the solvable problems. 
B) coordinated and done sequentially,starting with the minor problems. 
C) coordinated and done all at once. 
D) coordinated and done sequentially,starting with the major problems. 
A) coordinated and done randomly,starting with the solvable problems. 
B) coordinated and done sequentially,starting with the minor problems. 
C) coordinated and done all at once. 
D) coordinated and done sequentially,starting with the major problems. D

Question 2

Which of the following management techniques that were popular during the 1990s can be applied to all three components of an organization's architecture?

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 A

Question 3

Refer to Figure 23.1.If the company moves from Level II to Level III,the additional scrap/warranty costs are:

Accepted Answer

A) $155. 
B) −$135. 
C) $135. 
D) $290. 
A) $155. 
B) −$135. 
C) $135. 
D) $290. B

Question 4

Why do innovations in management techniques fail so often?

Accepted Answer

They fail for a variety of reasons.First

Question 5

Outsourcing is a management innovation that emphasizes:

Accepted Answer

A) vertical integration of production and service. 
B) assignment of management and production responsibilities to another firm. 
C) reduction in the purchase of resources to the bare essentials. 
D) hiring only managers educated in another state. 
A) vertical integration of production and service. 
B) assignment of management and production responsibilities to another firm. 
C) reduction in the purchase of resources to the bare essentials. 
D) hiring only managers educated in another state.

Question 6

Refer to Figure 23.1.The total costs of achieving total quality are:

Accepted Answer

A) $1,300. 
B) $1,040. 
C) $250. 
D) $1,065. 
A) $1,300. 
B) $1,040. 
C) $250. 
D) $1,065.

Question 7

When a management successfully implements innovations,it usually makes more than one change in the corporation's organizational structure.It is important to remember that the changes are:

Accepted Answer

A) dysfunctional. 
B) substitutes for one another. 
C) complementary. 
D) reversible 
A) dysfunctional. 
B) substitutes for one another. 
C) complementary. 
D) reversible

Question 8

Refer to Figure 23.1.The additional training costs of moving from Level I to Level II are:

Accepted Answer

A) $260. 
B) $440. 
C) $180. 
D) zero. 
A) $260. 
B) $440. 
C) $180. 
D) zero.

Question 9

Economic Value Added:

Accepted Answer

A) is used to reduce inventory expenditure. 
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 it fails to take into account the limited decision rights of lower-level employees. 
A) is used to reduce inventory expenditure. 
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 it fails to take into account the limited decision rights of lower-level employees.

Question 10

An improvement in product quality leads to an increase in a firm's value by:

Accepted Answer

A) reducing inspection cost. 
B) reducing the cost of raw materials. 
C) reducing labor cost. 
D) reducing the opportunity cost of production. 
A) reducing inspection cost. 
B) reducing the cost of raw materials. 
C) reducing labor cost. 
D) reducing the opportunity cost of production.

Question 11

Phillip Crosby asserts that quality is free.Is he right?

Accepted Answer

No,if taken literally,quality is not fre

Question 12

Which of the following is a key factor that encouraged companies to focus on total quality management in the mid-1980s?

Accepted Answer

A) Expansion of worldwide competition 
B) A fall in the cost of labor 
C) An increase in the supply of skilled labor force 
D) Enforcement of property rights 
A) Expansion of worldwide competition 
B) A fall in the cost of labor 
C) An increase in the supply of skilled labor force 
D) Enforcement of property rights

Question 13

In pushing decision rights down to the people with the knowledge about processes or customer preferences,it is important that companies:

Accepted Answer

A) use their reward systems to reinforce their performance or evaluation systems. 
B) integrate production management with production control. 
C) keep their reward systems independent of other factors. 
D) keep issues of organizational architecture out of the picture. 
A) use their reward systems to reinforce their performance or evaluation systems. 
B) integrate production management with production control. 
C) keep their reward systems independent of other factors. 
D) keep issues of organizational architecture out of the picture.

Question 14

In the Humana Hospital case study,the hospital,before reorganization,devoted only _____ of each health care dollar spent on direct patient care.

Accepted Answer

A) $0.5 
B) $0.16 
C) $0.35 
D) $0.6 
A) $0.5 
B) $0.16 
C) $0.35 
D) $0.6

Question 15

The text makes it clear that the management innovations of the 1980s and 1990s:

Accepted Answer

A) were almost all instant successes. 
B) waxed and waned in use and popularity. 
C) were indispensable for improving returns on business investments. 
D) were creations of the press and were never implemented in business. 
A) were almost all instant successes. 
B) waxed and waned in use and popularity. 
C) were indispensable for improving returns on business investments. 
D) were creations of the press and were never implemented in business.

Question 16

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 17

A key to understanding the difference between TQM and reengineering is TQM's emphasis on:

Accepted Answer

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

Question 18

Under ABC,different categories of ______ are assigned to products based on underlying cost drivers of that department.

Accepted Answer

A) overhead costs 
B) opportunity costs 
C) average costs 
D) sunk costs 
A) overhead costs 
B) opportunity costs 
C) average costs 
D) sunk costs

Question 19

Value-maximizing managers will undertake quality improvements only if:

Accepted Answer

A) the management overestimates the cost of enhancement. 
B) the incentive and reward systems are well defined and functional. 
C) the incremental benefits fall below the incremental costs of enhancement. 
D) the incremental benefits exceed the incremental costs of enhancement. 
A) the management overestimates the cost of enhancement. 
B) the incentive and reward systems are well defined and functional. 
C) the incremental benefits fall below the incremental costs of enhancement. 
D) the incremental benefits exceed the incremental costs of enhancement.

Question 20

A key factor in TQM is the:

Accepted Answer

A) reduction of defects. 
B) reliance on unskilled workers. 
C) reduction in the prices of supplies. 
D) reliance on simple production techniques. 
A) reduction of defects. 
B) reliance on unskilled workers. 
C) reduction in the prices of supplies. 
D) reliance on simple production techniques.

Exam 23: Organizational Architecture and the Process of Management Innovation

Changes in an organizational architecture must be:

Which of the following management techniques that were popular during the 1990s can be applied to all three components of an organization's architecture?

Refer to Figure 23.1.If the company moves from Level II to Level III,the additional scrap/warranty costs are:

Why do innovations in management techniques fail so often?

Outsourcing is a management innovation that emphasizes:

Refer to Figure 23.1.The total costs of achieving total quality are:

When a management successfully implements innovations,it usually makes more than one change in the corporation's organizational structure.It is important to remember that the changes are:

Refer to Figure 23.1.The additional training costs of moving from Level I to Level II are:

Economic Value Added:

An improvement in product quality leads to an increase in a firm's value by:

Phillip Crosby asserts that quality is free.Is he right?

Which of the following is a key factor that encouraged companies to focus on total quality management in the mid-1980s?

In pushing decision rights down to the people with the knowledge about processes or customer preferences,it is important that companies:

In the Humana Hospital case study,the hospital,before reorganization,devoted only _____ of each health care dollar spent on direct patient care.

The text makes it clear that the management innovations of the 1980s and 1990s:

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

A key to understanding the difference between TQM and reengineering is TQM's emphasis on:

Under ABC,different categories of ______ are assigned to products based on underlying cost drivers of that department.

Value-maximizing managers will undertake quality improvements only if:

A key factor in TQM is the:

Introduction

Economists View of Behavior

Exchange and Markets

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

Filters