Deck 10: Strategy Implementation: Staffing and Directing

Question 1

Executive succession is the process of replacing a key top manager.

Answer 1

True

Question 2

Chandler proposed that the most appropriate CEO for a firm remains constant as the company proceeds through its life cycle.

Answer 2

False

Question 3

European multinational corporations seldom use people with an international orientation to staff their management positions.

Answer 3

False

Question 4

There is a very strong connection between strategy and training at Motorola.

Question 5

Firms in trouble seldom choose outsiders to lead them.

Question 6

To improve organizational learning, many multinational corporations are providing their managers with international assignments as long as five years.

Question 7

Research indicates that a multinational corporation performs at a higher level when its CEO has international experience.

Question 8

Staffing issues can involve hiring new people with new skills, firing people with inappropriate or substandard skills, and/or training existing employees to learn new skills.

Question 9

Training and development can be especially important for organizations implementing an overall low cost or differentiation strategy, but not for those in retrenchment.

Question 10

A dynamic industry expert is someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product lines.

Question 11

Analyzers tend to have CEOs with a marketing/sales background.

Question 12

Research indicates that companies undertaking cost-cutting programs are four times more likely than others to cut costs again, typically by reducing staff.

Question 13

A professional liquidator was the executive type called in to Montgomery Ward when the declared bankruptcy for the second time.

Question 14

A good retrenchment strategy can be implemented well in terms of organizing, but poorly in terms of staffing.

Question 15

Succession planning has become the most important topic discussed by boards of directors.

Question 16

To successfully downsize, companies must invest in the remaining employees.

Question 17

Companies that pursue related diversification strategies through internal development make greater use of interdivisional transfers of people than do companies that grow through unrelated acquisitions.

Question 18

Staffing requirements are likely to follow a change in strategy.

Question 19

Downsizing refers to the planned elimination of positions or jobs.

Question 20

IHOPs CEO, Julia Stewart, built a reputation as a turnaround specialist.

Question 21

Integration involves the disintegration of one company's culture resulting from unwanted and extreme pressure from the other to impose its culture and practices.

Question 22

For each $1 spent on training, Motorola estimates it receives ________ in productivity gains within three years.

A)$15
B)$20
C)$25
D)$30
E)$35

Question 23

According to Hofstede's dimensions of national culture, long-term orientation is the extent to which society is oriented toward the long versus the short term.

Question 24

According to Hofstede's dimensions of national culture, uncertainty avoidance is the extent to which a society accepts an unequal distribution of power in organizations.

Question 25

An action plan states what actions are going to be taken, by whom, during what time frame, and with what expected results.

Question 26

An essential ingredient of MBO is that an employee must be just as concerned with pleasing the internal customer as the external customer.

Question 27

When Boeing created a separate unit to house the newly acquired operations of McDonnell-Douglas, they were managing the different cultures through separation.

Question 28

One objective of TQM is better, less variable quality of the product and service.

Question 29

Executives with a particular mix of skills and experiences may be classified as an executive type and paired with

A)a specific personal characteristic.
B)a specific corporate strategy.
C)a certain educational background.
D)a specific experience background.
E)a specific industry.

Question 30

Corporate culture does not necessarily have to support the strategy of the firm.

Question 31

The hiring of new people with new skills, firing of people with inappropriate or substandard skills, and/or training existing employees to learn new skills are included the process of

A)training.
B)staffing.
C)structuring.
D)operating.
E)financing

Question 32

Motorola provides each employee with at least ________ hours of training per year.

A)5
B)10
C)20
D)30
E)40

Question 33

Because an organization's culture can exert a powerful influence on the behavior of all employees, it can strongly affect a company's ability to shift its strategic direction.

Question 34

TQM links organizational objectives and the behavior of individuals.

Question 35

Communication is the key to the effective management of change.

Question 36

All of the following reflect characteristics of a successful integration manager EXCEPT

A)a deep knowledge of the acquiring company.
B)a flexible management style.
C)an ability to work in cross-functional project teams.
D)an ability to hire like-minded people.
E)a willingness to work independently.

Question 37

Implementation involves leading through coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives.

Question 38

Assimilation involves the relatively balanced give-and-take of culture and managerial practices between the merger practices.

Question 39

TQM is an operational philosophy committed to customer satisfaction and continuous improvement.

Question 40

One component of an effective action plan is the determination of the expected financial and physical consequences of each action.

Question 41

Which is NOT one of the competencies Hewlett Packard uses for identifying potential executives?

A)Practice the HP way.
B)Lead change and learning.
C)Achieve results.
D)Align the organization.
E)Manage around the external environment.

Question 42

Research suggests that boards of directors tend to look outside the firm for the next CEO under which following circumstance?

A)when the company is prosperous
B)when the company is having temporary difficulty
C)when the company is in trouble
D)when the company needs to follow a stability strategy
E)when the company needs to expand in order to continue growing

Question 43

Which type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth?

A)professional liquidator
B)dynamic industry expert
C)turnaround specialist
D)analytical portfolio manager
E)cautious profit planner

Question 44

Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of

A)research/engineering and general management.
B)accounting/finance, manufacturing/production, and general management.
C)marketing/sales.
D)human resources and strategy.
E)purchasing and logistics.

Question 45

Downsizing is often used to implement a(n)________ strategy.

A)retrenchment
B)growth
C)stability
D)hold
E)integration

Question 46

Successful defender firms tend to be headed by CEOs with backgrounds in the areas of

A)research/engineering and general management.
B)accounting/finance, manufacturing/production, and general management.
C)marketing/sales.
D)human resources and strategy.
E)purchasing and logistics.

Question 47

According to the text, the process of replacing a key top manager is called

A)executive succession.
B)executive placement.
C)executive strategy.
D)executive search.
E)executive outside succession.

Question 48

Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of

A)research/engineering and general management.
B)accounting/finance, manufacturing/production, and general management.
C)marketing/sales.
D)human resources and strategy.
E)purchasing and logistics.

Question 49

According to the text, a complete package for an executive working in another country costs

A)$50,000 to $75,000 annually.
B)$100,000 to $200,000 annually.
C)$150,000 to 250,000 annually.
D)$200,000 to $500,000 annually.
E)$300,000 to $1 million annually.

Question 50

Which one of the following is NOT one of the activities and techniques typically used in an assessment center to evaluate a person's suitability for advancement?

A)leaderless group discussions
B)management games
C)in-basket exercises
D)IQ tests
E)case analyses

Question 51

To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities, many corporations move people from one job to another utilizing the technique of

A)job design.
B)job specialization.
C)job rotation.
D)job enlargement.
E)job enrichment.

Question 52

Which type of chief executive officer with a conservative style, a production or engineering background, and experience with controlling budgets, capital expenditures, inventories, and standardization procedures would be appropriate for a corporation following a stability strategy?

A)professional liquidator
B)dynamic industry expert
C)turnaround specialist
D)analytical portfolio manager
E)cautious profit planner

Question 53

What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations?

A)They tended to have less loyalty than former CEOs, switching companies as a faster pace.
B)They tended to have the same functional specialization as the former CEO.
C)They tended to be more aggressive in their risk-taking than former CEOs.
D)They tended to rely more on skills developed through group decision making.
E)They tended to be turnaround specialists.

Question 54

One of the big common mistakes by corporations sending executives on global assignments is NOT

A)raising their salaries.
B)educating executives about customs and values in other countries.
C)providing training for the regulatory environment.
D)providing excellent health care.
E)giving executives the opportunity to visit home.

Question 55

According to the text, assessment centers have been able to accurately predict subsequent

A)job satisfaction.
B)job performance and career success.
C)organizational commitment.
D)organizational attachment.
E)job management skills.

Question 56

Which of the following is NOT a guideline proposed for successful downsizing?

A)Contract out work that others can do cheaper.
B)Plan for long-run efficiencies.
C)Make across-the-board cuts.
D)Communicate the reasons for actions.
E)Invest in the remaining employees.

Question 57

When Hewlett Packard searches for executive leadership, all of the following represent its broad competency of achieving results EXCEPT

A)building a track record.
B)increasing stock price.
C)establishing accountability.
D)supporting calculated risks.
E)resolving performance problems.

Question 58

Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy?

A)professional liquidator
B)dynamic industry expert
C)turnaround specialist
D)analytical portfolio manager
E)cautious profit planner

Question 59

According to a study of downsizing in the automobile-related industry, which one of the following is NOT a problem associated with inappropriate downsizing?

A)Produced long-term benefits.
B)Blanket offers for early retirement prompted even valuable employees to leave.
C)Surviving employees experienced decreased morale.
D)Surviving employees had to do extra work in addition to their own.
E)The wrong jobs were eliminated.

Question 60

Which of the following statements is true concerning the career life cycle for top executives?

A)During the early years of executives' tenures, they tend to experiment extensively with product lines to learn about their business.
B)It is possible that a current CEO may not be appropriate to implement a new strategy.
C)The harvest stage occurs when executives' accumulated knowledge allows them to reduce experimentation and increase knowledge.
D)There is an inverted U-shaped relationship between top executive tenure and the firm financial performance.
E)all of the above

Question 61

Which method of managing disparate cultures involves a relatively balanced give-and-take of cultural and managerial practices between the merger partners, and no strong imposition of cultural change on either company?

A)separation
B)deculturation
C)integration
D)assimilation
E)segmentation

Question 62

The percentage of U.S.-based expatriate managers who fail to adjust to a host country's social and business environment is

A)6% or less.
B)approximately 35%.
C)between 50% and 75%.
D)around 80%.
E)greater than 90%.

Question 63

When Renault purchased a controlling interest in Japan's Nissan Motor Company, which approach to managing culture was employed?

A)integration
B)separation
C)deculturation
D)assimilation
E)segmentation

Question 64

According to the text, which one of the following is NOT one of the dangers of using primarily foreign nationals to staff managerial positions in subsidiaries?

A)The increased likelihood of suboptimization.
B)Difficulty for the MNC to meet long-term, worldwide objectives.
C)The ability for communication and coordination becomes increasingly difficult.
D)Promotes anger and jealousy within the nationalistic host government.
E)Problems in coordinating activities of several international subsidiaries leads to problems in operating in a global industry.

Question 65

Which one of the following is NOT one of Malekzadeh and Nahavardi's four general methods of managing disparate cultures?

A)separation
B)deculturation
C)integration
D)assimilation
E)segmentation

Question 66

If a planned strategy is NOT compatible with the current culture, but the culture can be easily modified to make it more compatible with the new strategy, what should the organization do?

A)Find a joint-venture partner or contract with another company to carry out the strategy.
B)Implement the new strategy and identify how it is superior to the old strategy.
C)Move forward very carefully by introducing a set of culture-changing activities.
D)Manage around the culture by establishing a new structural unit to implement the new strategy.
E)Move ahead with the incompatible strategy anyway.

Question 67

Which method of managing disparate cultures involves one organization's domination over another willing organization?

A)separation
B)deculturation
C)integration
D)assimilation
E)segmentation

Question 68

When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to accept the dominance of Maytag's strong quality-oriented culture.This demonstrates which approach to managing culture?

A)integration
B)separation
C)deculturation
D)assimilation
E)segmentation

Question 69

If a planned strategy is not compatible with the company's current culture, and management is not willing to make major organizational changes required to manage around the culture, what should the organization do?

A)Find a joint-venture partner or contract with another company to carry out the strategy.
B)Implement the new strategy and identify how it is superior to the old strategy.
C)Move forward very carefully by introducing small steps and modifications before full implementation.
D)Manage around the culture by establishing a new structural unit to implement the new strategy.
E)none of these

Question 70

Which one of the following is NOT one of the characteristics possessed by companies that have made successful major culture changes?

A)The CEO has a strategic vision of what the company could become.
B)If the vision is difficult, the CEO immediately terminates the goal.
C)The vision is translated into objective, well-defined goals with appropriate incentives and recognition aides.
D)The CEO communicates to all employees where the organization stands in relation to the competition and its outlook on the future.
E)The CEO constantly updates the workforce as to the progress of the company in achieving those elements identified as important in attaining the vision.

Question 71

What does "MBO" stand for?

A)Market Buy-Out
B)Mergers, Buy-outs, and Options
C)Multinational Business Organization
D)Manufacturing Backlog Order
E)Management By Objectives

Question 72

When AT&T acquired NCR Corporation, which management strategy was employed in terms of culture?

A)integration
B)separation
C)deculturation
D)assimilation
E)segmentation

Question 73

Which of the following practices was not identified by Black and Gregersen in companies that do a good job of managing foreign assignments?

A)When making international assignments they focus on transferring knowledge and developing global leadership.
B)They offer foreign assignments to people whose technical skills are matched or exceeded by their cross-cultural abilities.
C)They offer assignments to those who want to return home early to share their experiences.
D)They end foreign assignments with a deliberate repatriations process with career guidance.
E)They end foreign assignments with a deliberate repatriation process with jobs where the employees can apply what they learned in their assignments.

Question 74

The percentage of European and Japanese-based expatriate managers who fail to adjust to a host country's social and business environment is

A)6% or less.
B)approximately 35%.
C)between 50% to 75%.
D)around 80%.
E)greater than 90%.

Question 75

Strategic goals can be accomplished through defining an action plan.Which one of the following is NOT one of the components which make up an action plan?

A)states what action is going to be taken
B)who will perform the action.
C)during what time frame the action will be done
D)where the action will be done
E)what are the expected results of the action

Question 76

According to the text, what is the "key" to effective management of change in culture?

A)planning
B)operationalization
C)evaluation
D)staffing
E)communication

Question 77

Action plans are important for several reasons.Which one of the following is NOT one of these reasons?

A)If the action plan is implemented properly, it ensures that the strategy will be a success.
B)It serves as a link between strategy formulation and evaluation and control.
C)The action plan specifies what needs to be done differently from the way operations are currently carried out.
D)During the evaluation and control process, an action plan helps in the appraisal of the performance and identifying remedial actions needed.
E)Motivation may be improved with the assignment of specific responsibility.

Question 78

The strategy implementation tool used to determine what actions are going to be taken, by whom, during what time frame, and with what expected results is called a(n)

A)mission statement.
B)action plan.
C)MBO.
D)TQM.
E)succession plan.

Question 79

Which method of managing disparate cultures is the most common and most destructive method of dealing with two different cultures because one company imposes its demands at the expense of another company's culture?

A)separation
B)deculturation
C)integration
D)assimilation
E)segmentation

Question 80

Which method of managing disparate cultures is characterized by a separation of the two companies' cultures because of their differences?

A)separation
B)deculturation
C)integration
D)assimilation
E)segmentation