Question 1

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 2

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

Accepted Answer

A) $250. 
B) $135. 
C) $115. 
D) $845. 
A) $250. 
B) $135. 
C) $115. 
D) $845.

Question 3

Which of the following is a possible problem faced by potential management innovators?

Accepted Answer

A) Property rights in management innovations are ill-defined. 
B) Companies implementing managerial innovations need to pay higher corporate taxes. 
C) Implementation of managerial innovations leads to the entry of new firms in the industry. 
D) The supply of skilled workers decreases after the implementation of innovations. 
A) Property rights in management innovations are ill-defined. 
B) Companies implementing managerial innovations need to pay higher corporate taxes. 
C) Implementation of managerial innovations leads to the entry of new firms in the industry. 
D) The supply of skilled workers decreases after the implementation of innovations.

Question 4

If costs rise more quickly than quality,then firm value will:

Accepted Answer

A) be maximized before total quality is achieved. 
B) be minimized before total quality is achieved. 
C) be maximized after total quality is achieved. 
D) always decline. 
A) be maximized before total quality is achieved. 
B) be minimized before total quality is achieved. 
C) be maximized after total quality is achieved. 
D) always decline.

Question 5

Just-in-time production and inventory control can result in:

Accepted Answer

A) a fall in inventories and an increase in efficiency. 
B) excess inventories that mess up production schedules. 
C) a lack of coordination between suppliers and retailers. 
D) decreased risk bearing on the part of retailers. 
A) a fall in inventories and an increase in efficiency. 
B) excess inventories that mess up production schedules. 
C) a lack of coordination between suppliers and retailers. 
D) decreased risk bearing on the part of retailers.

Question 6

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 7

JIT stands for:

Accepted Answer

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

Question 8

Monetary and non-monetary incentives are:

Accepted Answer

A) basically the same. 
B) perfect substitutes. 
C) mutually exclusive. 
D) not mutually exclusive. 
A) basically the same. 
B) perfect substitutes. 
C) mutually exclusive. 
D) not mutually exclusive.

Question 9

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

Accepted Answer

Yes.Consider the success of TQM in the 1

Question 10

The case study on Software Development,Inc.(SDI)reviews the introduction of thirty-eight new or revised software packages for the costs of defects.Do an analysis of Table 23.2.If you look at the software introductions with more than fifty defects and those with fewer than twenty-five defects,what general conclusions can you come to concerning the product costs,training costs,prevention costs,and maintenance/service costs of SDI?

Accepted Answer

Maintenance/service costs are

Question 11

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 12

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

Accepted Answer

A) the personal problems of its workers. 
B) incentive and reward systems. 
C) the concerns of its rivals. 
D) the problem of unemployment. 
A) the personal problems of its workers. 
B) incentive and reward systems. 
C) the concerns of its rivals. 
D) the problem of unemployment.

Question 13

TQM and other management innovations fail because:

Accepted Answer

A) workers don't underestimate the costs of change. 
B) management estimates the costs of change correctly but workers don't. 
C) management overestimates the costs of change. 
D) management underestimates the costs of change. 
A) workers don't underestimate the costs of change. 
B) management estimates the costs of change correctly but workers don't. 
C) management overestimates the costs of change. 
D) management underestimates the costs of change.

Question 14

By creating smaller,flatter organizations,reengineering:

Accepted Answer

A) reduces outsourcing opportunities. 
B) reduces replacement opportunities. 
C) increases advancement opportunities. 
D) reduces advancement opportunities. 
A) reduces outsourcing opportunities. 
B) reduces replacement opportunities. 
C) increases advancement opportunities. 
D) reduces advancement opportunities.

Question 15

The curve that shows the relation between quality and firm value is:

Accepted Answer

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

Question 16

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

Accepted Answer

The key components of organizational arc

Question 17

Provide some examples of management innovations that have lost their popularity.

Accepted Answer

Almost 1.5 percent of all business artic

Question 18

Refer to Figure 23.1.If the rule is to keep increasing quality until the incremental costs are greater than the new sales,then this firm should stop at:

Accepted Answer

A) Level I. 
B) Level II. 
C) Level III. 
D) Total Quality. 
A) Level I. 
B) Level II. 
C) Level III. 
D) Total Quality.

Question 19

Evidence suggests that many businesses 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 in architecture critically.

Accepted Answer

Several management techniques have been

Question 20

Which of the following is a major by-product of the technological change that took place in the 1980s?

Accepted Answer

A) Rapid product obsolescence 
B) Reorganization of inventory control methods 
C) Well-defined property rights 
D) An increase in outsourcing 
A) Rapid product obsolescence 
B) Reorganization of inventory control methods 
C) Well-defined property rights 
D) An increase in outsourcing

Exam 23: Organizational Architecture and the Process of Management Innovation

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

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

Which of the following is a possible problem faced by potential management innovators?

If costs rise more quickly than quality,then firm value will:

Just-in-time production and inventory control can result in:

A cost of reengineering programs is that they change:

JIT stands for:

Monetary and non-monetary incentives are:

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

ABC:

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

TQM and other management innovations fail because:

By creating smaller,flatter organizations,reengineering:

The curve that shows the relation between quality and firm value is:

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

Provide some examples of management innovations that have lost their popularity.

Refer to Figure 23.1.If the rule is to keep increasing quality until the incremental costs are greater than the new sales,then this firm should stop at:

Evidence suggests that many businesses 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 in architecture critically.

Which of the following is a major by-product of the technological change that took place in the 1980s?

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

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