Question 1

Total quality management (TQM) programs

Accepted Answer

A)  deal exclusively with procedures to achieve defect-free manufacturing and assembly. 
B)  nearly always contribute more to the achievement of operating excellence than either business process reengineering or Six Sigma quality control techniques. 
C)  achieve the biggest success when extended to employee efforts in all departments-human resources, R&D, accounting and records, information systems, and so forth. 
D)  are considerably more effective in improving manufacturing and assembly activities than they are in improving such value chain activities as R&D, human resources management, supply chain management, information technology, sales and marketing, and finance. 
E)  are generally considered the best tool for reengineering strategy-critical business processes. 
A)  deal exclusively with procedures to achieve defect-free manufacturing and assembly. 
B)  nearly always contribute more to the achievement of operating excellence than either business process reengineering or Six Sigma quality control techniques. 
C)  achieve the biggest success when extended to employee efforts in all departments-human resources, R&D, accounting and records, information systems, and so forth. 
D)  are considerably more effective in improving manufacturing and assembly activities than they are in improving such value chain activities as R&D, human resources management, supply chain management, information technology, sales and marketing, and finance. 
E)  are generally considered the best tool for reengineering strategy-critical business processes.

Question 2

Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture?

Accepted Answer

A)  Promoting individuals who have stepped forward to advocate the shift to a different culture and who can serve as role models for the desired cultural behavior 
B)  Revising policies and procedures in ways that will help drive cultural change 
C)  Screening all candidates for new positions carefully, hiring only those who appear to fit in with the new culture 
D)  Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing 
E)  Designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook 
A)  Promoting individuals who have stepped forward to advocate the shift to a different culture and who can serve as role models for the desired cultural behavior 
B)  Revising policies and procedures in ways that will help drive cultural change 
C)  Screening all candidates for new positions carefully, hiring only those who appear to fit in with the new culture 
D)  Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing 
E)  Designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook

Question 3

Successfully leading the effort to instill a spirit of high achievement into a company's culture and put constructive pressure on the organization to achieve good results

Accepted Answer

A)  entails such actions as treating employees with dignity and respect, celebrating individual, group, and company successes, and setting stretch objectives. 
B)  hinges on the extent to which top management emphasizes a positive rather than a negative reward system. 
C)  requires that top executives make operating excellence the company's only core value. 
D)  calls for top executives to stress the adoption of best practices, push for continuous product innovation, and provide employees with a stream of suggestions for improving company operations. 
E)  hinges on the degree to which lower-level managers and supervisors are good practitioners of MBWA. 
A)  entails such actions as treating employees with dignity and respect, celebrating individual, group, and company successes, and setting stretch objectives. 
B)  hinges on the extent to which top management emphasizes a positive rather than a negative reward system. 
C)  requires that top executives make operating excellence the company's only core value. 
D)  calls for top executives to stress the adoption of best practices, push for continuous product innovation, and provide employees with a stream of suggestions for improving company operations. 
E)  hinges on the degree to which lower-level managers and supervisors are good practitioners of MBWA.

Question 4

The chief advantage of a decentralized organizational structure is to

Accepted Answer

A)  put decision-making authority in the hands of those closest and most knowledgeable about the situation. 
B)  make it easy to fix accountability when company performance targets are not met. 
C)  increase productivity on the part of the workforce. 
D)  enhance cross-unit coordination and capture of strategic fits. 
E)  create a collegial, collaborative culture where teamwork is a core value and decisions are made on the basis of consensus. 
A)  put decision-making authority in the hands of those closest and most knowledgeable about the situation. 
B)  make it easy to fix accountability when company performance targets are not met. 
C)  increase productivity on the part of the workforce. 
D)  enhance cross-unit coordination and capture of strategic fits. 
E)  create a collegial, collaborative culture where teamwork is a core value and decisions are made on the basis of consensus.

Question 5

Putting constructive pressure on the organization to achieve good results and operating excellence entails

Accepted Answer

A)  setting stretch objectives and creating an expectation that company personnel are to do their best in achieving performance targets. 
B)  utilizing the full range of motivational techniques and compensation incentives to reward high performance. 
C)  treating employees with dignity and respect. 
D)  encouraging employees to use initiative and creativity in performing their work. 
E)  All of the above. 
A)  setting stretch objectives and creating an expectation that company personnel are to do their best in achieving performance targets. 
B)  utilizing the full range of motivational techniques and compensation incentives to reward high performance. 
C)  treating employees with dignity and respect. 
D)  encouraging employees to use initiative and creativity in performing their work. 
E)  All of the above.

Question 6

Companies with insular, inwardly focused cultures usually

Accepted Answer

A)  tend to possess arrogant overconfident mind-sets, thereby tending to underestimate the competencies and accomplishments of rival companies and overestimate their own progress. 
B)  tend to concentrate on benchmarking to find out the best methods of doing things. 
C)  tend to concentrate greed and ego-gratification. 
D)  tend to discount and doubt their own performance statistics. 
E)  All of these 
A)  tend to possess arrogant overconfident mind-sets, thereby tending to underestimate the competencies and accomplishments of rival companies and overestimate their own progress. 
B)  tend to concentrate on benchmarking to find out the best methods of doing things. 
C)  tend to concentrate greed and ego-gratification. 
D)  tend to discount and doubt their own performance statistics. 
E)  All of these

Question 7

Good strategy execution

Accepted Answer

A)  requires a team effort with managers with strategy-executing responsibility and making all employees active participants in the execution process. 
B)  requires getting things done effectively and efficiently. 
C)  allows companywide performance measures to be met. 
D)  requires middle and lower-level managers to ensure strategy-critical activities are successfully implemented. 
E)  All of these. 
A)  requires a team effort with managers with strategy-executing responsibility and making all employees active participants in the execution process. 
B)  requires getting things done effectively and efficiently. 
C)  allows companywide performance measures to be met. 
D)  requires middle and lower-level managers to ensure strategy-critical activities are successfully implemented. 
E)  All of these.

Question 8

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

Accepted Answer

A)  that company personnel be empowered to make both strategic decisions and operating decisions. 
B)  for strategy-critical value-chain activities to be the main building blocks on the organization chart. 
C)  that value chain activities be deliberately organized so as to produce maximum strategic fit. 
D)  to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved. 
E)  for the company to be organized around cross-functional teams rather than around functional specialties and functional departments. 
A)  that company personnel be empowered to make both strategic decisions and operating decisions. 
B)  for strategy-critical value-chain activities to be the main building blocks on the organization chart. 
C)  that value chain activities be deliberately organized so as to produce maximum strategic fit. 
D)  to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved. 
E)  for the company to be organized around cross-functional teams rather than around functional specialties and functional departments.

Question 9

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

Accepted Answer

A)  link the payment of all monetary rewards to the company's profitability. 
B)  employ incentives that will help motivate employees to work hard at performing their assigned duties and activities. 
C)  choose those types of rewards and incentives that focus employees' attention on "what to do." 
D)  make across-the-board wage and salary increases the cornerstone of monetary rewards. 
E)  make both monetary and nonmonetary rewards integral parts of the reward system. 
A)  link the payment of all monetary rewards to the company's profitability. 
B)  employ incentives that will help motivate employees to work hard at performing their assigned duties and activities. 
C)  choose those types of rewards and incentives that focus employees' attention on "what to do." 
D)  make across-the-board wage and salary increases the cornerstone of monetary rewards. 
E)  make both monetary and nonmonetary rewards integral parts of the reward system.

Question 10

The disadvantages of a centralized organizational structure include

Accepted Answer

A)  making the organization sluggish in responding to changing conditions. 
B)  a loss of top management control. 
C)  putting too much decision-making authority in the hands of lower-level company personnel. 
D)  making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made. 
E)  impeding cross-unit coordination and capture of strategic fits. 
A)  making the organization sluggish in responding to changing conditions. 
B)  a loss of top management control. 
C)  putting too much decision-making authority in the hands of lower-level company personnel. 
D)  making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made. 
E)  impeding cross-unit coordination and capture of strategic fits.

Question 11

Which one of the following falsely characterizes a centralized organizational structure?

Accepted Answer

A)  Top executives should retain authority over most strategic and operating decisions and keep a tight rein on business-unit heads, department heads, and the managers of key operating units. 
B)  Strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track. 
C)  Tight control by the manager in charge makes it easy to fix accountability when things do not go well. 
D)  Most company personnel have neither the time nor the inclination to direct and properly control they work they are performing, and they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E)  A company that draws on the combined intellectual capital of its people can outperform a company that relies on command and control. 
A)  Top executives should retain authority over most strategic and operating decisions and keep a tight rein on business-unit heads, department heads, and the managers of key operating units. 
B)  Strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track. 
C)  Tight control by the manager in charge makes it easy to fix accountability when things do not go well. 
D)  Most company personnel have neither the time nor the inclination to direct and properly control they work they are performing, and they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E)  A company that draws on the combined intellectual capital of its people can outperform a company that relies on command and control.

Question 12

The hallmarks of a high-performance corporate culture include

Accepted Answer

A)  frequently revised and updated values and ethics statements, a deep commitment to employee training, and unusually attractive fringe benefit packages for company personnel. 
B)  a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. 
C)  a balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees. 
D)  a deep commitment to pioneering new best practices, a preference for being a fast follower as opposed to a first mover or late mover (because the risks are more acceptable), and across-the-board bonuses for all personnel when the company meets or beats stretch objectives. 
E)  a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options. 
A)  frequently revised and updated values and ethics statements, a deep commitment to employee training, and unusually attractive fringe benefit packages for company personnel. 
B)  a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. 
C)  a balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees. 
D)  a deep commitment to pioneering new best practices, a preference for being a fast follower as opposed to a first mover or late mover (because the risks are more acceptable), and across-the-board bonuses for all personnel when the company meets or beats stretch objectives. 
E)  a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.

Question 13

The organizing challenge of a decentralized structure that stresses employee empowerment is

Accepted Answer

A)  how to keep empowered employees from making lots of stupid decisions. 
B)  establishing a collegial, collaborative culture so that decisions can be made by gaining a quick consensus on what to do and when to do it. 
C)  how to avoid de-motivating employees (because empowered employees are expected to take responsibility for their actions and decisions). 
D)  how to exercise adequate control over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of empowerment. 
E)  how to convince lower-level managers and employees that they are empowered. 
A)  how to keep empowered employees from making lots of stupid decisions. 
B)  establishing a collegial, collaborative culture so that decisions can be made by gaining a quick consensus on what to do and when to do it. 
C)  how to avoid de-motivating employees (because empowered employees are expected to take responsibility for their actions and decisions). 
D)  how to exercise adequate control over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of empowerment. 
E)  how to convince lower-level managers and employees that they are empowered.

Question 14

Company strategies and value creating processes can't be effectively executed without internal information systems that include

Accepted Answer

A)  customer data, employee data, supplier/partner data, operations data, and financial performance data. 
B)  TQM, reengineering, and Six Sigma programs. 
C)  monetary and nonmonetary reward systems. 
D)  activity-based cost accounting, benchmarking, and best practices. 
E)  All of these. 
A)  customer data, employee data, supplier/partner data, operations data, and financial performance data. 
B)  TQM, reengineering, and Six Sigma programs. 
C)  monetary and nonmonetary reward systems. 
D)  activity-based cost accounting, benchmarking, and best practices. 
E)  All of these.

Question 15

The purpose of managing by walking around is to

Accepted Answer

A)  learn more about company operations and see how activities are really being done. 
B)  gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding. 
C)  give employees a chance to make suggestions for improvement. 
D)  gather information about what strategy to follow and to learn what competitors are doing. 
E)  be visible and accessible to employees. 
A)  learn more about company operations and see how activities are really being done. 
B)  gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding. 
C)  give employees a chance to make suggestions for improvement. 
D)  gather information about what strategy to follow and to learn what competitors are doing. 
E)  be visible and accessible to employees.

Question 16

Which of the following statements about adaptive corporate cultures is false?

Accepted Answer

A)  The hallmark of adaptive corporate cultures is willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. 
B)  The standout cultural traits are a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. 
C)  Change is willingly embraced by management and nonmanagerial employees. 
D)  Adaptive cultures are exceptionally well suited to companies with fast-changing strategies and market environments. 
E)  For an adaptive culture to remain intact over time, top management must orchestrate organizational changes in a manner that (1) does not compromise core values and long-standing business principles and (2) tries to satisfy all their legitimate interests simultaneously. 
A)  The hallmark of adaptive corporate cultures is willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. 
B)  The standout cultural traits are a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives. 
C)  Change is willingly embraced by management and nonmanagerial employees. 
D)  Adaptive cultures are exceptionally well suited to companies with fast-changing strategies and market environments. 
E)  For an adaptive culture to remain intact over time, top management must orchestrate organizational changes in a manner that (1) does not compromise core values and long-standing business principles and (2) tries to satisfy all their legitimate interests simultaneously.

Question 17

Management's most powerful tool for winning employee commitment to good strategy execution and operating excellence is

Accepted Answer

A)  the establishment of strategy-supportive policies and procedures. 
B)  empowering employees and encouraging them to adopt best practices. 
C)  setting stretch objectives. 
D)  a properly designed system of rewards and incentives. 
E)  aggressive use of TQM and Six Sigma quality control programs. 
A)  the establishment of strategy-supportive policies and procedures. 
B)  empowering employees and encouraging them to adopt best practices. 
C)  setting stretch objectives. 
D)  a properly designed system of rewards and incentives. 
E)  aggressive use of TQM and Six Sigma quality control programs.

Question 18

The Six Sigma process of define, measure, analyze, improve, and control (DMAIC) is

Accepted Answer

A)  an improvement system for existing processes falling below specification and needing incremental improvement; the DMAIC process is a particularly good vehicle for improving performance when there are wide variations in how well an activity is performed. 
B)  an improvement system used to develop new processes or products at 100% defect-free levels. 
C)  a system of statistical procedures for achieving 100% control over how a task is performed. 
D)  an improvement system used to develop new processes or products at Six Sigma levels. 
E)  a system of statistical procedures for eliminating 100% of the variability in how a task is performed. 
A)  an improvement system for existing processes falling below specification and needing incremental improvement; the DMAIC process is a particularly good vehicle for improving performance when there are wide variations in how well an activity is performed. 
B)  an improvement system used to develop new processes or products at 100% defect-free levels. 
C)  a system of statistical procedures for achieving 100% control over how a task is performed. 
D)  an improvement system used to develop new processes or products at Six Sigma levels. 
E)  a system of statistical procedures for eliminating 100% of the variability in how a task is performed.

Question 19

Successfully leading the effort to foster a results-oriented, high-performance culture generally requires simple leadership practices, such as

Accepted Answer

A)  treating employees with dignity and respect. 
B)  encouraging employees to use initiatives and creativity in performing their work to continually make changes to operating practices. 
C)  setting strain objectives to push the envelope on sales efforts. 
D)  focusing attention on motivational techniques that instill self-interest, which is the cornerstone of the free-enterprise system. 
E)  celebrating management's success with high incentives and loyalty trips. 
A)  treating employees with dignity and respect. 
B)  encouraging employees to use initiatives and creativity in performing their work to continually make changes to operating practices. 
C)  setting strain objectives to push the envelope on sales efforts. 
D)  focusing attention on motivational techniques that instill self-interest, which is the cornerstone of the free-enterprise system. 
E)  celebrating management's success with high incentives and loyalty trips.

Question 20

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

Accepted Answer

A)  making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package. 
B)  having a bonus and incentive plan that applies to managers only (employees should generally not be included in incentive pay plans but should have attractive wages and salaries). 
C)  having an outside wage and salary expert administer the system, so that there is no doubt as to its fairness and impartiality. 
D)  basing the incentives on group performance rather than individual performance. 
E)  making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties. 
A)  making the payoff for meeting or beating performance targets a major, not minor, piece of the total compensation package. 
B)  having a bonus and incentive plan that applies to managers only (employees should generally not be included in incentive pay plans but should have attractive wages and salaries). 
C)  having an outside wage and salary expert administer the system, so that there is no doubt as to its fairness and impartiality. 
D)  basing the incentives on group performance rather than individual performance. 
E)  making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties.

Total quality management (TQM) programs

Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture?

Successfully leading the effort to instill a spirit of high achievement into a company's culture and put constructive pressure on the organization to achieve good results

The chief advantage of a decentralized organizational structure is to

Putting constructive pressure on the organization to achieve good results and operating excellence entails

Companies with insular, inwardly focused cultures usually

Good strategy execution

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

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

The disadvantages of a centralized organizational structure include

Which one of the following falsely characterizes a centralized organizational structure?

The hallmarks of a high-performance corporate culture include

The organizing challenge of a decentralized structure that stresses employee empowerment is

Company strategies and value creating processes can't be effectively executed without internal information systems that include

The purpose of managing by walking around is to

Which of the following statements about adaptive corporate cultures is false?

Management's most powerful tool for winning employee commitment to good strategy execution and operating excellence is

The Six Sigma process of define, measure, analyze, improve, and control (DMAIC) is

Successfully leading the effort to foster a results-oriented, high-performance culture generally requires simple leadership practices, such as

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Filters

Exam 10: Superior Strategy Execution-Another Path to Competitive Advantage

Total quality management (TQM) programs

Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture?

Successfully leading the effort to instill a spirit of high achievement into a company's culture and put constructive pressure on the organization to achieve good results

The chief advantage of a decentralized organizational structure is to

Putting constructive pressure on the organization to achieve good results and operating excellence entails

Companies with insular, inwardly focused cultures usually

Good strategy execution

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

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

The disadvantages of a centralized organizational structure include

Which one of the following falsely characterizes a centralized organizational structure?

The hallmarks of a high-performance corporate culture include

The organizing challenge of a decentralized structure that stresses employee empowerment is

Company strategies and value creating processes can't be effectively executed without internal information systems that include

The purpose of managing by walking around is to

Which of the following statements about adaptive corporate cultures is false?

Management's most powerful tool for winning employee commitment to good strategy execution and operating excellence is

The Six Sigma process of define, measure, analyze, improve, and control (DMAIC) is

Successfully leading the effort to foster a results-oriented, high-performance culture generally requires simple leadership practices, such as

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Filters