Chapter 11 Which of the following would not be an objective used in the customer perspective of the balanced scorecard approach?

Earnings per share. More test answers on https://studyhippo.com/accounting-202-1112-14/

Which one of these is not one of the four perspectives of the Balanced Scorecard approach?

Competitors More test answers on https://studyhippo.com/ch-2-review-quiz/

Which of the following is NOT one of the four perspectives measured in the balanced scorecard approach to control? a. The bureaucratic perspective b. The customer perspective c. The innovation and learning perspective d. The internal business perspective e. The financial perspective

a. The bureaucratic perspective More test answers on https://studyhippo.com/mgmt-chapter-16-practice-quiz/

In the process of implementing the balanced scorecard approach at his company, operations manager Seth Howard wonders whether internal activities and processes add value for customers and shareholders. This involves which dimension of the balanced scorecard?

Internal business processes refers to internal business processes. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements (the mission) More test answers on https://studyhippo.com/mgmt-3310-chapter-19/

What is “balanced” in the balanced scorecard approach?

The emphasis on financial and non-financial performance measurements More test answers on https://studyhippo.com/accounting-2020-final-56585/

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Balanced Scorecard Approach Flashcards, test questions and answers

Q: Which of the following is NOT one of the four perspectives measured in the balanced scorecard approach to control?

The balanced scorecard is a measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning More test answers on https://studyhippo.com/chapter-16-mgmt/

Q: The balanced scorecard approach to control

forces managers to set specific goals and measure performance in each four areas More test answers on https://studyhippo.com/management-4-test-lets-go-final-test/

Q: The Balanced Scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

False More test answers on https://studyhippo.com/business-management-chapter-16/

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Accounting Balanced Scorecard Balanced Scorecard Approach Income From Operations Real Time Data

Citibank: Performance Evaluation – Flashcards 25 terms

Mary Browning

25 terms

Preview

Citibank: Performance Evaluation – Flashcards

question

Focus

answer

• Financial and non-financial performance measures • Balanced scorecard

question

Synopsis

answer

• Citibank's strategy is to increase profitability by providing excellent customer service • Citibank introduces a new performance measurement system (balanced scorecard) that includes non-financial measures such as customer satisfaction • The top financial performer has a below-par non-financial performance

question

• Citibank's Strategy

answer

• To build a profitable franchise by providing relationship banking combined with a high level of service through: careful personal attention and a broad selection of financial products • A good relationship with customers is a key differentiator from its larger competitors, and is critical to the long term success of the company • Customer relationship is a non-financial measure that has been ignored in previous employee evaluations

question

• Balanced scorecard • The primary purpose of a balanced scorecard is to

answer

• communicate a particular strategy down the organization and • establish a basis for evaluation based on this strategy

question

What is Citibank's strategy for the Balanced scorecard?

answer

• Define a specific performance scorecard and link rewards to the accomplishments of the specific measures to induce employees to pursue the firm's strategy • To implement its strategy, Citibank decides to include nonfinancial measures using a balanced scorecard

question

What were the performance objectives?

answer

Financial Strategy Impementation Customer Satisfaction Control People Standards

question

Financial Objective

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Variables: Revenue Expense Margin Measures: measured objectively accounting system Target: negotiated (subject to manipulation/favoritism)

question

Strategy Implementation Objective

answer

Variables: revenue from target segments households (total, new, lost) retail market share Measures: measured objectively, accounting system additional data collection Target: negotiated (subject to manipulation/favoritism)

question

Customer Satisfaction objective

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Variables: customer satisfaction Measures: survey conducted by external firm telephone interview of 25 customers who visited branch and Citibank services (e.g. ATM) Target: score of 80 common target

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Control Objective

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Variables: audit legal regulatory Measures: measured subjectively by auditors using standard procedures Target: 4 (on 1-5 scale) common target

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People objective

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Variables: performance management teamwork training/development employee satisfaction Measures: measured subjectively by the employee's superior Target: none

question

Standards objective

answer

Variables: leadership business ethics/integrity customer interaction/focus community involvement contribution to overall business Measures: measured subjectively by the employee's superior Target: none

question

What happens if they get rated "Below Par"?

answer

no bonus

question

What happens if they get rated "Par"?

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bonus up to 15%of salary

question

What happens if they get rated "Above Par"?

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bonus up to 30% of salary

question

What are the rules for the performance evaluation and rewards?

answer

• Need "par" or "above par" in all 6 objectives for an above par overall evaluation • Need "par" rating on Control to be eligible for a bonus

question

James McGaran manages the most important branch in the Los Angeles area. James' branch is tough to manage due to the proximity to competitors and a demanding clientele base. His branch generates the highest revenue and contribution margin in the LA area. How would you have rated James' performance if the old system were still in place?

answer

- He would have received an "above par" rating and a 30% bonus

question

• How would you rate James' other measures (above/below/at par)?

answer

• Strategy implementation: Rated "above par" in all quarters but one • Control:Rated "above par" in all quarters • People: Subjectively rated "above par" in all quarters • Standards: Subjectively rated "above par" in all quarters

question

What about customer satisfaction? • This rating is critical not only for James but for the whole company. Why?

answer

• If he gets a "below par" rating on customer satisfaction, he will not be eligible to receive an overall "above par" rating. In this case, he cannot receive the 30% bonus • The committee's decision is carefully watched by other branch managers

question

• What are the pros and cons of giving him a "below par" or "par" rating on customer satisfaction? • Arguments in favor of a "below par" rating for customer satisfaction

answer

• Following guidelines of the new system (i.e., credibility) • This move emphasizes Citibank's strategy: It signals to other managers that company is committed to its strategy • Customer satisfaction is a leading indicator of performance. Low satisfaction will result in poor future financial performance • Focuses all managers' attention on the importance of customer satisfaction to achieving intended strategy

question

• Arguments in favor of a "par" rating for customer satisfaction

answer

• The survey may not correctly measure customer satisfaction (i.e., selection bias; small sample size) • His customers are more demanding; target may be too high • James does not control all factors that affect measured customer satisfaction (e.g., ATM; phone banking) • Too much emphasis on customer satisfaction may induce wrong asset allocation; over-investment in customer satisfaction • James became branch manager in 1992 and is still producing great financial results; customer satisfaction does not seem to be leading indicator of future performance

question

• Arguments in favor of an "above par" rating overall

answer

• Rewards James' effort. Allows him to receive maximum bonus of 30% • This is what James would have received if old system were still in place • Easier to communicate to James • The system should be flexible to adapt to exceptions • Will keep James' motivation up • Par rating could cause conflict, reduced motivation, quitting (James may resign if he feels that the new evaluation system penalized his efforts)

question

• Arguments in favor of a "par" rating overall

answer

• Gives credibility to the new strategy and the performance evaluation system • Communicates the importance of customer satisfaction to the rest of the organization • Motivates James and other managers to focus more attention on strategically important variables

question

• What do you think happened?

answer

• James received a "below par" rating on customer satisfaction • Frits chose to override the system and gave James an overall "above par" rating for the year • To indicate the importance of customer satisfaction, however, Frits awarded James a 25% bonus instead of the maximum 30%

question

• Linking employee pay to nonfinancial performance measures offers a number of potential benefits:

answer

• Nonfinancial performance measures help communicate strategy to employees and motivate specific actions to further this strategy • Nonfinancial measures can be leading indicators of future financial performance

STUDY

Balanced Scorecard Approach Organizational Psychology Problem Solving

HR ch:8 – Essay Writing – Flashcards 131 terms

Elizabeth Hill

131 terms

Preview

HR ch:8 – Essay Writing – Flashcards

question

Managers need to constantly engage in a dialogue with their subordinates. a. True b. False

answer

True

question

Most performance appraisals focus on long-term improvement, rather than short-term achievements. a. True b. False

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False

question

The two most common purposes of performance management programs are administrative and developmental. a. True b. False

answer

True

question

The federal government began evaluating employees in 1842. a. True b. False

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True

question

Developmental purposes for performance appraisal include identifying strengths and weaknesses and improving communication. a. True b. False

answer

True

question

Developmental purposes for performance appraisal include evaluating goal achievement and validating selection criteria. a. True b. False

answer

False

question

Developmental purposes for performance appraisal include evaluating training programs and determining promotion candidates. a. True b. False

answer

False

question

. Studies have shown that employees who earn performance-based pay are more satisfied. a. True b. False

answer

True

question

Performance management programs can be used for many purposes, including promotions, transfers, layoffs, and pay decisions. a. True b. False

answer

True

question

. Performance evaluations are simply a logical extension of the day-to-day performance management process. a. True b. False

answer

True

question

Managers may deflate performance ratings to make themselves look good as managers. a. True b. False

answer

False

question

. Criterion deficiency occurs when performance standards focus on a single criterion and exclude other important but less quantifiable performance dimensions.

answer

True

question

Criterion deficiency occurs when performance standards have not been properly established and communicated to the employee. a. True b. False

answer

False

question

Criterion contamination occurs when different supervisors have different and inconsistent ratings of an employee's performance. a. True b. False

answer

False

question

Criterion contamination occurs when factors outside an employee's control influence his or her performance. a. True b. False

answer

True

question

According to a Supreme Court ruling, performance appraisals are subject to the same validity criteria as selection procedures. a. True b. False

answer

True

question

17. The HR department rarely has the primary responsibility for overseeing and coordinating a firm's performance management system. a. True b. False

answer

False

question

. Employees should be given a written copy of their job standards in advance of their performance evaluations. a. True b. False

answer

True

question

. An appeals process is only necessary for administrative appraisals. a. True b. False

answer

False

question

. In most instances, one person can easily observe and evaluate an employee's performance. a. True b. False

answer

False

question

Criterion deficiency refers to the extent to which the standards of an appraisal relate to the strategic objectives of the organization in which they are applied. a. True b. False

answer

False

question

Self-evaluations are often best used for developmental purposes rather than for administrative decisions. a. True b. False

answer

True

question

Self-evaluations should be used primarily for administrative purposes. a. True b. False

answer

False

question

Subordinate evaluations are useful for rating on dimensions such as leadership ability, ability to delegate, and employee supportiveness. a. True b. False

answer

True

question

Subordinate evaluations should be used primarily for developmental purposes. a. True b. False

answer

True

question

. One disadvantage of peer evaluations is the belief that they contain more biases and furnish less valid information than appraisals by superiors. a. True b. False

answer

False

question

Team evaluations are conceptually just a collection of the individual appraisals of a work unit. a. True b. False

answer

False

question

Internal customers can provide extremely useful feedback for both developmental and administrative purposes. a. True b. False

answer

True

question

Reliability refers to the stability or consistency of a standard. a. True b. False

answer

True

question

A distributional rating error occurs when a single rating is skewed toward an entire group of employees. a. True b. False

answer

True

question

An error of central tendency is a performance-rating error in which all employees are more or less rated as average. a. True b. False

answer

True

question

Requiring raters to use a forced distribution reduces the chance of leniency or strictness errors. a. True b. False

answer

True

question

Having appraisals reviewed by a supervisor's supervisor creates unnecessary redundancy and may actually result in greater legal liability.

answer

False

question

A recency error is an error in which the appraisal is based largely upon the employee's most recent behavior as opposed to their behavior throughout the entire appraisal period.

answer

True

question

. Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest. a. True b. False

answer

True

question

. A similar-to-me error occurs when appraisers inflate the evaluations of people with whom they have something in common. a. True b. False

answer

True

question

. A similar-to-me error, like contrast, results in less than accurate performance ratings, but would not be considered discriminatory. a. True False

answer

False

question

Feedback training for raters should include communicating effectively, diagnosing causes of performance problems, and setting goals. a. True b. False

answer

True

question

. It is unrealistic to presume that one person can fully observe and evaluate an employee's performance. a. True b. False

answer

True

question

Results-oriented approaches have become more popular because they focus on the measurable contributions that employees make to an organization. a. True b. False

answer

True

question

One of the potential drawbacks of a trait-oriented performance appraisal is that traits can be biased and subjective. a. True b. False

answer

True

question

Graphic rating scales include sets of statements between which the rater must choose, such as "works hard" vs. "works quickly." a. True b. False

answer

False

question

The mixed-standard scale method evaluates traits according to a single scale. a. True b. False

answer

False

question

One of the benefits of the forced-choice method is the relatively small cost of establishing and maintaining its validity. a. True b. False

answer

False

question

The forced-choice method of appraisal is less effective as a tool for developing employees. a. True b. False

answer

True

question

. A major drawback of the essay method is that composing an essay that attempts to cover all of an employee's essential characteristics is very time-consuming. a. True b. False

answer

True

question

The effectiveness of the essay method is affected by the rater's writing skills. a. True b. False

answer

True

question

Behavioral methods specifically describe which actions should (or should not) be exhibited on the job. a. True b. False

answer

True

question

One major advantage of a behaviorally anchored rating scale is that it is possible to use a scale developed for one job to appraise individuals in another, unrelated job.

answer

False

question

. Results evaluations often give employees responsibility for their outcomes and discretion over the way they accomplish them. a. True b. False

answer

True

question

. Behavior observation scales have rater check statements that they believe are characteristic of the employee. a. True b. False

answer

False

question

Measurable and quantifiable performance objectives are requirements for a successful MBO program. a. True b. False

answer

True

question

. The Balanced Scorecard approach integrates four categories: financial, customer, process, and learning measures. a. True b. False

answer

False

question

. The Balanced Scorecard evaluation method translates broad corporate goals into divisional, departmental, team, and individual goals in a cascading way. a. True b. False

answer

True

question

The choice of performance evaluation method to use depends upon the purpose of the evaluation. a. True b. False

answer

True

question

Dividing the performance evaluation meeting into two sessions, one for the performance review and the other for the employee's growth plans, is a good strategy to improve communication between the parties. a. True b. False

answer

True

question

The three basic types of formats for providing feedback during a performance evaluation meeting are tell-and-sell, tell-and-listen, and problem-solving. a. True b. False

answer

True

question

The problem-solving format seeks to obtain an employee's buy-in for a mutually agreed-upon way to overcome obstacles and improve the person's actual performance. a. True b. False

answer

False

question

A self-evaluation ensures that an employee knows against what criteria he or she is being evaluated, eliminating any potential surprises. a. True b. False

answer

True

question

Because the appraisal interview is for developmental purposes, the interviewer rather than the employee should spend the majority of the time talking. a. True b. False

answer

False

question

. Since praise is a powerful motivator, appraisers should alternate positive and negative statements during a performance appraisal interview. a. True b. False

answer

False

question

Expressing appreciation for the work an employee has done well is likely to make the person more defensive about aspects of the job that are not going so well. a. True b. False

answer

False

question

. Performance discussions should focus on the employee rather than on his or her behaviors. a. True b. False

answer

False

question

. If an employee is doing something wrong, waiting for a formal evaluation later in the year to communicate that information is an example of a balanced approach to effective communication. a. True b. False

answer

False

question

. A person's performance is a function of ability, environment, and motivation. a. True b. False

answer

True

question

A diagnosis of poor employee performance should focus on the three interactive elements of ability, motivation, and external conditions. a. True b. False

answer

True

question

Self-evaluations are often best used for administrative decisions rather than developmental purposes. a. True b. False

answer

False

question

. The "horn error" is the opposite of the "halo effect." a. True b. False

answer

True

question

The federal government began evaluating employees in 1842, when Congress passed a law mandating yearly performance review for: a. departmental clerks. b. military personnel. c. postal employees. d. all federal employees.

answer

a. departmental clerks.

question

. A problem with performance appraisal is that it: a. tends to be objective and consistent. b. identifies weaknesses of employees as well as strengths. c. tends to focus on short-term objectives rather than long-term learning. d. tends to be a bottom-up process.

answer

c. tends to focus on short-term objectives rather than long-term learning.

question

71. One study showed that organizations with strong performance management systems are ____ more likely to outperform their competitors in the areas of revenue growth, productivity, profitability, and market value a. 10-15 percent b. 20-30 percent c. 40-50 percent d. 80-90 percent

answer

c. 40-50 percent

question

. The two primary purposes of performance appraisals are: a. informative and developmental. b. managerial and administrative. c. managerial and informative. d. administrative and developmental.

answer

d. administrative and developmental.

question

Administrative purposes of performance appraisal include all of the following EXCEPT: a. determining promotion candidates. b. evaluating training programs. c. documenting personnel decisions. d. providing performance feedback.

answer

d. providing performance feedback.

question

. Developmental purposes of performance appraisal include all of the following EXCEPT: a. recognizing individual performance. b. validating selection procedures. c. improving communication. d. identifying strengths and weaknesses.

answer

b. validating selection procedures.

question

Which of the following is NOT a reason for the failure of appraisal programs? a. They discourage teamwork by focusing on workers' individual achievements. b. They lay more focus on employee input into the development of the appraisal program. c. They are not useful for the majority of employees in the middle in terms of performance. d. They often focus on short-term achievements rather than long-term improvement and learning.

answer

b. They lay more focus on employee input into the development of the appraisal program.

question

. In _____, the U.S. Supreme Court found that employees had been ranked against a vague standard, open to each supervisor's own interpretation. a. California Board of Regents v. Bakke b. Griggs v. Duke Power Co. c. Albemarle Paper Co. v. Moody d. Brito v. Zia

answer

c. Albemarle Paper Co. v. Moody

question

If a manager rates an employee higher than he or she deserves in order to look good as a manager in the eyes of his or her own superiors, this is an example of: a. criterion deficiency. b. organizational politics. c. criterion contamination. d. administrative appraisal purpose.

answer

b. organizational politics.

question

Which of the following is NOT an advantage of the trait method of appraisals? a. Inexpensive to develop b. Uses meaningful dimensions c. Low potential for rating errors d. Easy to use

answer

c. Low potential for rating errors

question

The strategic relevance of performance appraisals refers to the extent to which: a. standards relate to the overall objectives of the organization. b. standards capture the entire range of an employee's responsibilities. c. individuals tend to maintain a certain level of performance over time. d. factors outside the employee's control can influence performance.

answer

a. standards relate to the overall objectives of the organization.

question

. Freedom from criterion deficiency of performance appraisals refers to the extent to which: a. standards relate to the overall objectives of the organization. b. standards capture the entire range of an employee's responsibilities. c. individuals tend to maintain a certain level of performance over time. d. factors outside the employee's control can influence performance.

answer

b. standards capture the entire range of an employee's responsibilities.

question

. If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors, the performance management system suffers from: a. criterion contamination. b. lack of reliability. c. criterion deficiency. d. organizational politics.

answer

c. criterion deficiency.

question

If a performance standard is found to be stable or consistent over time, it is said to be: a. free from contamination. b. relevant. c. reliable. d. valid.

answer

c. reliable.

question

83. Reliability in performance appraisal is measured by: a. correlating two sets of ratings made by a single rater or by two different raters. b. correlating the ratings of an employee at two different points in time. c. linking performance standards to organizational goals. d. quantifiable performance standards.

answer

a. correlating two sets of ratings made by a single rater or by two different raters.

question

. The Supreme Court ruling states that: a. vague performance standards can be acceptable when clearly written. b. organizations should have carefully defined and measurable performance standards. c. while performance standards should be somewhat specific, there should be room for individual interpretation. d. descriptions of traits such as attitude and cooperation are acceptable performance standards.

answer

b. organizations should have carefully defined and measurable performance standards.

question

. In light of recent court rulings, HR managers suggest that performance evaluations should meet all of the following legal guidelines EXCEPT: a. performance ratings must be job-related. b. employees must be provided with clear, written job standards in advance of their evaluations. c. performance evaluation should rarely be tied to compensation decisions. d. supervisors should be trained to use the evaluation form correctly.

answer

c. performance evaluation should rarely be tied to compensation decisions.

question

. In most instances, who is in the best position to perform the function of evaluating an employee's performance? a. The HR personnel b. The employee's supervisor c. The employee d. Co-workers

answer

b. The employee's supervisor

question

Performance-related behaviors such as leadership ability, ability to delegate, and employee supportiveness may best be appraised by: a. the manager/supervisor. b. peers. c. subordinates. d. the management team.

answer

c. subordinates.

question

Self-appraisals are best for: a. administrative purposes. b. developmental purposes. c. promotional purposes. d. regulatory purposes.

answer

b. developmental purposes.

question

One advantage of peer evaluations is that: a. peers are less politically motivated than supervisors. b. peers may furnish more accurate and valid information than supervisors. c. peers may work harder to help other employees improve performance. d. peers are often partially responsible for the performance of other co-workers.

answer

b. peers may furnish more accurate and valid information than supervisors.

question

A performance rating error in which the rater is reluctant to give employees either extremely high or extremely low ratings is referred to as a(n): a. recency error. b. error of central tendency. c. leniency or strictness error. d. halo error.

answer

b. error of central tendency

question

A performance rating error in which the rater tends to give employees either extremely high or extremely low ratings is referred to as a(n): a. recency error. b. error of central tendency. c. leniency or strictness error. d. halo error.

answer

c. leniency or strictness error.

question

. Which method of performance appraisal requires managers to place a certain percentage of employees into various performance categories? a. Forced distribution method b. Checklist method c. Percent method d. Forced-choice method

answer

a. Forced distribution method

question

If one rates an employee's performance largely on the basis of the employee's recent behavior, one commits a: a. leniency error. b. contrast error. c. recency error. d. central tendency error.

answer

c. recency error.

question

If one rates an average employee's performance high because they compared the employee to poor performers, one commits a: a. leniency error. b. contrast error. c. recency error. d. central tendency error.

answer

b. contrast error.

question

. If one inflates the evaluation of people with whom they have something in common, one commits a: a. leniency error. b. similar-to-me error. c. recency error. d. central tendency error.

answer

b. similar-to-me error.

question

A feedback training program for performance appraisal raters should cover at least all of the following areas EXCEPT: a. effective communication techniques. b. diagnosing the root causes of performance problems. c. setting goals and objectives. d. developing independent learning objectives.

answer

d. developing independent learning objectives.

question

Performance appraisal methods can be broadly classified as either ____, ____, or ____ approaches. a. trait, behavioral, judgmental b. trait, behavioral, results c. behavioral, judgmental, results d. behavioral, judgmental, attitudinal

answer

b. trait, behavioral, results

question

In the ____ method, each trait or characteristic to be rated is represented by a scale on which a rater indicates the degree to which an employee possesses that trait or characteristic. a. mixed-standard scale b. graphic rating scale c. behaviorally anchored rating scale d. behavior observation scale

answer

b. graphic rating scale

question

Which rating format uses three specific behavioral descriptions relevant to each trait and then asks supervisors to evaluate whether an employee's behavior is better than, equal to, or worse than the standard for each behavior? a. Mixed-standard scale b. Forced-choice method c. Behaviorally anchored rating scale d. Behavior observation scale

answer

a. Mixed-standard scale

question

. A method of rating performance in which the rater chooses from statements that appear equally favorable or equally unfavorable is known as the: a. forced-distribution method. b. graphic rating scales. c. behaviorally anchored rating scale d. forced-choice method.

answer

d. forced-choice method.

question

Which of the following is NOT a disadvantage of the essay method? a. It is very time-consuming. b. It must follow a job-specific format. c. It's appraisal quality could be influenced by the supervisor's writing skills. d. It is highly subjective and could be biased.

answer

b. It must follow a job-specific format.

question

If the primary objective of a performance appraisal is to give employees developmental feedback, which of the following appraisal methods is most ideal? a. Trait b. Results c. Behavioral d. Attitudinal

answer

c. Behavioral

question

What is the first step in the management by objectives (MBO) process? a. Develop organization goals and metrics b. Develop department goals and metrics c. Review performance d. Add new inputs

answer

a. Develop organization goals and metrics

question

The type of scale that uses critical incidents as examples of different points along the scale is known as: a. the mixed-standard scale. b. the global rating. c. the behaviorally anchored rating scale. d. the dimensional rating.

answer

c. the behaviorally anchored rating scale.

question

One major advantage of a behaviorally anchored rating scale is that: a. it requires a great deal of employee participation which leads to greater acceptance. b. the same rating scale can be used across all the departments of an organization. c. it takes a relatively short time to develop. d. the rating scale can be developed with little expertise.

answer

a. it requires a great deal of employee participation which leads to greater acceptance.

question

. The procedures followed to develop a behaviorally anchored rating scale typically result in scales that: a. have a high degree of construct validity. b. have a high degree of content validity. c. can be used to rate employees across different jobs. d. cost the least to develop.

answer

a. have a high degree of construct validity.

question

Which of the following is a performance appraisal approach designed to measure how frequently employees exhibit certain behaviors? a. Management by objectives b. Behaviorally anchored rating scale c. Behavior observation scale d. Trait scale

answer

b. Behaviorally anchored rating scale

question

Which of the following is NOT a component of the Balanced Scorecard approach? a. Competitor b. Learning c. Customer d. Financial

answer

Competitor

question

. If an appraisal focuses on a narrow set of results criteria to the exclusion of other important but less quantifiable performance dimensions, the performance management system may suffer from: a. criterion deficiency. b. rater bias. c. lack of reliability. d. criterion contamination.

answer

a. criterion deficiency.

question

Requirements for a successful management by objectives (MBO) program include all of the following EXCEPT that: a. the results must be under the control of the employee. b. timeframes for when the goals are to be reviewed and evaluated need to be established. c. goal statements must be accompanied by descriptions of how they will be accomplished. d. both trait and critical incident objectives must be set.

answer

d. both trait and critical incident objectives must be set.

question

An appraisal system that allows each individual to see clearly how his or her performance ties into the overall performance of the firm is: a. the balanced scorecard approach. b. the 360-degree evaluation. c. the customer-oriented approach. d. management by objectives.

answer

a. the balanced scorecard approach.

question

An appraisal system that takes into account financial, customer, processes, and learning categories is called: a. the balanced scorecard approach. b. the 360-degree evaluation. c. the customer-oriented approach. d. management by objectives.

answer

a. the balanced scorecard approach.

question

. The choice of an appraisal method should be largely based on: a. the preferred technique of the personnel department. b. the purpose of the appraisal. c. the reaction of employees. d. what skills the developer of the system possesses.

answer

b. the purpose of the appraisal.

question

The appraisal interview should be divided into two sessions, one each for: a. positive comments and negative comments. b. performance review and employee's growth plans. c. performance review and compensation discussion. d. establishing performance standards and reviewing performance.

answer

b. performance review and employee's growth plans.

question

The appraisal interview: a. should take place in one session in order to give the employee a complete view of his or her performance. b. can be divided into two sessions, though this is not advisable. c. is most suitable for the supervisor to give feedback on past performance and should not be used for developmental purposes. d. should be held in two segments because the rater must perform the role of both evaluator and counselor.

answer

d. should be held in two segments because the rater must perform the role of both evaluator and counselor.

question

The three basic types of formats for providing feedback during a performance evaluation meeting or feedback session are: a. tell-and-sell, tell-and-train, and developmental. b. tell-and-sell, tell-and listen, and problem-solving. c. tell-and-train, problem-solving, and developmental. d. tell-and-listen, tell-and-train, and problem-solving.

answer

b. tell-and-sell, tell-and listen, and problem-solving.

question

. The appraisal interview that requires interviewers to possess the ability to persuade an employee to change his or her behavior in a certain way is: a. tell-and-develop. b. tell-and-listen. c. tell-and-sell. d. problem-solving.

answer

c. tell-and-sell.

question

Which of the following type of formats gives both managers and employees an opportunity to release and iron out any frustrating feelings they might have? a. Tell-and-develop b. Tell-and-listen c. Tell-and-sell d. Problem-solving

answer

b. Tell-and-listen

question

In which type of appraisal interview does the interviewer communicate the strong and weak points of an employee's performance during the first part of the interview and then explore the employee's feelings about the appraisal in the second part? a. Problem-solving b. Tell-and-develop c. Tell-and-sell d. Tell-and-listen

answer

d. Tell-and-listen

question

Listening, accepting, and responding to feelings are essential elements of the _____ performance evaluation format. a. tell-and-develop b. tell-and-listen c. tell-and-sell d. problem-solving

answer

d. problem-solving

question

As an appraiser, one should try to do all of the following EXCEPT: a. minimizing criticism. b. changing the person, not the behavior. c. identifying the source of ineffective performance. d. being supportive and demonstrating that one cares.

answer

b. changing the person, not the behavior.

question

122. As a rule of thumb, a supervisor should spend approximately ____ percent of the time talking during an appraisal interview. a. 10 to 15 b. 20 to 25 c. 30 to 35 d. 40 to 45

answer

c. 30 to 35

question

An inappropriate interview technique in which praise serves to cushion criticism by alternating positive statements with negative statements is known as: a. the sandwich technique. b. the cushioning technique. c. the rollercoaster technique. d. sympathetic interviewing.

answer

a. the sandwich technique.

question

Tips for using criticism constructively includes all of the following EXCEPT: a. considering whether it is really necessary. b. not exaggerating. c. watching one's timing. d. using the "sandwich technique."

answer

d. using the "sandwich technique."

question

. It is recommended that a diagnosis of poor employee performance focus on all of the following EXCEPT: a. skill. b. personality. c. effort. d. external conditions.

answer

b. personality.

question

Research suggests that when it comes to our own performance, most of us first attribute our bad performance to: a. inadequate training. b. poor motivation. c. external constraints. d. lack of ability.

answer

c. external constraints.

question

Managers often first assume poor performance of subordinates to: a. inadequate training. b. poor motivation. c. external constraints. d. lack of ability.

answer

d. lack of ability.

question

Some organizations believe that appraisals are useful : a. as a warning to inexperienced employees. b. only for highly effective or ineffective employees. c. only for veteran employees. d. for employees nearing retirement.

answer

b. only for highly effective or ineffective employees.

question

Employees who earn performance-based pay are more _____. a. mobile b. satisfied c. educated d. cynical

answer

b. satisfied

question

A process whereby managers meet to discuss the performance of individual employees to ensure that their employee evaluations are in line with one another is referred to as _____. a. cross-referencing b. authentication c. mentoring d. calibration

answer

d. calibration

question

The main disadvantage of a behaviorally anchored rating scale (BARS) is that it: a. requires considerable legal "vetting" by a skilled attorney. b. has a negative reputation among HR professionals. c. is useful only for manual jobs. d. requires considerable time and effort to develop.

answer

d. requires considerable time and effort to develop.

STUDY

Balanced Scorecard Approach Business Business Management Internal And External Factors Management Product Life Cycles Strategic Management Process

Strategic Management-Chapter 9 – Flashcards 106 terms

Lisa Currey

106 terms

Preview

Strategic Management-Chapter 9 – Flashcards

question

Most strategists believe that an organization's well-being depends on evaluation of the strategic-management process.

answer

True

question

Adequate and timely feedback is important to effective strategy evaluation.

answer

true

question

Too much emphasis on evaluating strategies may be expensive and counterproductive.

answer

True

question

Strategy evaluation should have a long-run focus and avoid a short-run focus.

answer

False

question

According to Richard Rumelt, consonance and consistency are mostly based on a firm's external assessment.

answer

False

question

According to Rumelt, consistency and feasibility are largely based on a firm's internal assessment.

answer

True

question

Consistency, distinctiveness, advantage, and feasibility are Richard Rumelt's four criteria for evaluating a strategy.

answer

False

question

Strategy evaluation is becoming increasingly easier with the passage of time, given technological advances.

answer

False

question

The decreasing time span for which planning can be done with any degree of certainty is a reason strategy evaluation is more difficult today.

answer

True

question

Strategies may be inconsistent if policy problems and issues continue to be brought to the top for resolution.

answer

True

question

Competitive advantages normally are the result of superiority in one of three areas: feasibility, consistency, or consonance.

answer

False

question

Regardless of the size of the organization, a certain amount of "management by wandering around" at all levels is essential to effective strategy evaluation.

answer

True

question

Evaluating strategies on a continuous rather than on a periodic basis allows benchmarks of progress to be established and more effectively monitored.

answer

true

question

It is most effective to conduct strategy evaluation annually, at the end of the fiscal year.

answer

False

question

Changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses should all be the focus of a revised EFE matrix in strategy evaluation.

answer

False

question

In strategy evaluation, a revised IFE matrix should indicate how effective a firm's strategies have been in response to key opportunities and threats.

answer

False

question

Strengths, weaknesses, opportunities, cost and threats should continually be monitored for change because it is not really a question of whether these factors will change, but rather when they will change and in what ways.

answer

True

question

When measuring organizational performance, you need to compare expected results to actual results.

answer

True

question

Criteria for evaluating strategies should be measurable and easily verifiable.

answer

True

question

Financial ratios are rarely used as criteria to evaluate strategies.

answer

False

question

Measuring organizational performance includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives.

answer

True

question

Intuitive judgments are almost always involved in deriving quantitative criteria.

answer

True

question

Most quantitative evaluation criteria are geared to long-term objectives rather than annual objectives.

answer

False

question

Measuring organizational performance requires making changes to reposition a firm competitively for the future.

answer

False

question

Taking corrective actions does not necessarily mean that existing strategies will be abandoned, or even that new strategies must be formulated.

answer

True

question

Corrective action in strategy evaluation is necessary to keep an organization on track toward achieving stated objectives.

answer

True

question

Alvin Toffler argues that environments are becoming so dynamic and complex that they threaten people and organizations with future shock, in his thought-provoking books entitled Future Shock and The Third Wave.

answer

True

question

Future shock occurs when the nature, type, and speed of changes overpower an individual's or organization's ability and capacity to adapt.

answer

True

question

According to research, participation in strategy-evaluation activities is one of the best ways to overcome individuals' resistance to change.

answer

True

question

The form of a Balanced Scorecard does not vary for different organizations or industries.

answer

False

question

The Balanced Scorecard approach deals with the question, "How satisfied are the firm's customers?"

answer

True

question

Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.

answer

True

question

Yahoo was one of the firms most admired in its industry according to Fortune's 2012 evaluation

answer

False

question

Strategy-evaluation activities must be meaningful, that is, they should specifically relate to a firm's objectives.

answer

True

question

Timely approximate information is generally more desirable as a basis for strategy evaluation than accurate information that does not depict the present.

answer

true

question

The test of an effective evaluation system is its complexity.

answer

false

question

Small organizations require a more elaborate and detailed strategy-evaluation system because they are still evolving.

answer

false

question

There is no one ideal strategy-evaluation system for all organizations.

answer

true

question

Contingency plans are alternative plans that can be put into effect if certain key events do not occur as expected.

answer

true

question

Organizations should prepare contingency plans just for unfavorable events.

answer

False

question

Strategists should try to cover all bases by planning for all possible contingencies.

answer

false

question

Contingency plans should be as simple as possible.

answer

true

question

Alternative strategies not selected for implementation should be discarded, as they have a tendency to contaminate the contingency plans.

answer

false

question

Identifying both good and bad events that could jeopardize strategies is the first step of effective contingency planning.

answer

true

question

A frequently used tool in strategy evaluation is the audit.

answer

true

question

The U.S. Chamber of Commerce is against the accounting switch from GAAP to IFRS, saying it will cause cross-border commerce to decline.

answer

false

question

Public accounting firms usually avoid strategy-evaluation services.

answer

false

question

The accounting switch from GAAP to IFRS in the U.S. is going to cost businesses millions of dollars in fees and upgraded software systems and training.

answer

true

question

Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch to IFRS.

answer

true

question

The U.S. Chamber of Commerce supports the change from GAAP to IFRS, saying it will help the U.S. compete in the world economy.

answer

true

question

IFRS standards comprise 25,000 pages, whereas GAAP standards comprise 5,000 pages.

answer

false

question

Most executives believe that some strategic information should remain confidential to top managers.

answer

true

question

Increased education and diversity of the workforce at all levels are reasons why the top-down approach should be favored in organizations.

answer

false

question

Which of these is a basic activity of strategy evaluation? A) Reviewing the underlying bases of current strategies B) Comparing expected results with actual results C) Taking corrective actions D) Choices B and C only E) All of the above

answer

E) All of the above

question

Too much emphasis on evaluating strategies A) may be expensive and counterproductive. B) is not possible - the more emphasis the better. C) is good for morale, as employees like being closely evaluated. D) is always advised if the firm can afford it. E) is worse than too little or no evaluation.

answer

A) may be expensive and counterproductive.

question

What is the cornerstone of effective strategy evaluation? A) Adequate and timely feedback B) Quality and quantity of managers C) Smaller ratio of top- to lower-level management D) Evaluation preceding implementation stage E) Punitive corrective actions

answer

A) Adequate and timely feedback

question

All of these are Richard Rumelt's criteria to evaluate a strategy EXCEPT A) advantage. B) consistency. C) feasibility. D) distinctiveness. E) consonance.

answer

D) distinctiveness.

question

With the passage of time strategy evaluation is becoming A) increasingly difficult. B) much simpler. C) very convenient. D) an unnecessary activity. E) less important.

answer

A) increasingly difficult.

question

All of the following are reasons strategy evaluation is more difficult today EXCEPT A) a dramatic increase in the environment's complexity. B) the increasing number of variables. C) the increase in the number of both domestic and world events affecting organizations. D) the increasing time span for which planning can be done with any degree of certainty. E) the rapid rate of obsolescence of even the best plans.

answer

D) the increasing time span for which planning can be done with any degree of certainty.

question

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies? A) Product life cycles are longer. B) Domestic and world economies are less stable. C) Product development cycles are shorter. D) Technological advancement is more rapid. E) Change is occurring more frequently.

answer

A) Product life cycles are longer.

question

Success today A) guarantees success tomorrow. B) is no guarantee of success tomorrow. C) should lull a firm into complacency. D) is all that really matters. E) none of the above.

answer

B) is no guarantee of success tomorrow.

question

According to Rumelt, the final broad test of strategy is its A) advantage. B) feasibility. C) consonance. D) consistency. E) distinctiveness.

answer

B) feasibility.

question

Competitive advantage normally is the result of superiority in resources, skills, or A) employees. B) position. C) consistency. D) feasibility. E) governance.

answer

B) position.

question

What term refers to the need for strategists to examine sets of trends, as well as individual trends, in evaluating strategies? A) Consistency B) Consonance C) Synergy D) Feasibility E) Advantage

answer

B) Consonance

question

Rumelt's criteria of consonance refers to the need for strategists to examine A) inconsistent goals. B) sets of trends. C) impractical objectives. D) competitive advantages. E) the costs associated with particular strategies.

answer

B) sets of trends.

question

If success for one organizational department means failure for another department, then strategies may be A) synergistic. B) advantageous. C) trendy. D) feasible. E) inconsistent.

answer

E) inconsistent.

question

Modern organizational realities demand that employees demonstrate greater A) flexibility. B) innovation. C) creativity. D) initiative. E) all of the above

answer

E) all of the above

question

Strategy-evaluation activities should ideally be performed A) just on a periodic basis. B) only at the onset of a problem. C) on a continuous basis. D) solely upon completion of major projects. E) annually only.

answer

C) on a continuous basis.

question

Corrective actions are almost always ________ except when external and internal factors have not significantly changed and the firm is progressing satisfactorily toward achieving stated objectives. A) unnecessary B) needed C) undesirable D) prohibitively expensive E) futile

answer

B) needed

question

If you discover during the course of strategy evaluation that major changes have occurred in the firm's internal strategic position, you should A) continue on the present strategic course. B) wait until the next quarter to see if things revert. C) take corrective actions. D) follow the original strategic plan. E) none of the above

answer

C) take corrective actions.

question

A revised ________ should focus on changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses. A) mission B) IFE matrix C) vision D) EFE matrix E) EPM matrix

answer

B) IFE matrix

question

A revised ________ should indicate how effective a firm's strategies have been in response to key opportunities and threats. A) IFE matrix B) mission C) EFE matrix D) vision E) CPM matrix

answer

C) EFE matrix

question

Which of the following is NOT included in measuring organizational performance? A) Comparing results to competitors' expectations B) Examining progress being made toward meeting stated objectives C) Investigating deviations from plans D) Evaluating individual performance E) Comparing expected results to actual results

answer

A) Comparing results to competitors' expectations

question

Which of the following is a corrective action a company might take to correct unfavorable variances? A) Divesting a division B) Revising objectives C) Raising capital with stock or debt D) Allocating resources differently E) All of the above

answer

E) All of the above

question

Quantitative criteria commonly used to evaluate strategies are A) cash budgets. B) Balanced Scorecards. C) Capital Asset Pricing Models. D) financial ratios. E) present value analyses.

answer

D) financial ratios.

question

Which of these is a potential problem associated with using only quantitative criteria for selecting strategies? A) Most quantitative criteria are geared to long-term objectives rather than annual objectives. B) Different accounting methods can provide different results on many quantitative criteria. C) Intuitive judgments are never used in deriving quantitative criteria. D) Quantitative criteria include human factors that may be underlying causes of declining performance. E) Quantitative criteria are not able to compare the firm's performance over different period of time.

answer

B) Different accounting methods can provide different results on many quantitative criteria.

question

Also important in evaluating strategies are ________ criteria, like high absenteeism and turnover rates, or low employee satisfaction. A) numerical B) qualitative C) quantitative D) accounting E) financial

answer

B) qualitative

question

Financial ratios are used to compare a firm's performance over different time periods, to compare the firm's performance to industry averages, and to compare a firm's performance with A) overall business standards. B) projected goals. C) the performance of suppliers. D) non-financial ratios. E) the performance of competitors.

answer

E) the performance of competitors.

question

Most quantitative criteria are geared to ________ objectives rather than ________ objectives. A) top-management; employee B) short-term; annual C) annual; long-term D) environmental; community E) long-term; short-term

answer

C) annual; long-term

question

What corrective actions might a firm take during strategy evaluation? A) Revise the business mission B) Issue stock C) Revise objectives D) Sell a division E) All of the above

answer

E) All of the above

question

According to author Alvin Toffler, what occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt? A) Corporate insecurity B) Corrective actions C) Future shock D) Corporate agility E) Projected performance

answer

C) Future shock

question

Corrective actions should always A) strengthen an organization's competitive position in its industry. B) streamline asset holdings. C) have no risk. D) involve abandoning existing strategies. E) all of the above

answer

A) strengthen an organization's competitive position in its industry.

question

Research suggests that which of the following is one of the best ways to overcome individuals' resistance to change in strategy evaluation? A) Participation B) Command-and-control C) Laissez-faire system D) Rational argument E) Emotional reactions

answer

A) Participation

question

According to researchers, all of the following encourage individuals to accept change EXCEPT A) having a cognitive understanding of the changes. B) having a sense of control over the situation. C) having an awareness that necessary actions are going to be taken to implement change. D) participating in strategy-evaluation activities. E) being overpowered by the nature, types, and speed of changes.

answer

E) being overpowered by the nature, types, and speed of changes.

question

Corrective action should do all of the following EXCEPT A) capitalize upon internal strengths. B) avoid external opportunities. C) avoid external threats. D) improve internal weaknesses. E) strengthen an organization's competitive position.

answer

B) avoid external opportunities.

question

Which of the following is NOT one of the four perspectives from which the Balanced Scorecard allows firms to evaluate strategies? A) Social responsibility B) Financial performance C) Customer knowledge D) Internal business processes E) Learning and growth

answer

A) Social responsibility

question

What aims to balance long-term with short-term concerns, financial with nonfinancial concerns, and internal with external concerns? A) Contingency planning B) The Balanced Scorecard approach C) Taking corrective action D) Benchmarking E) Consonance

answer

B) The Balanced Scorecard approach

question

The Fortune 50 includes all of the following EXCEPT A) the largest retailers. B) the largest transportation companies. C) the largest utilities. D) the largest banks. E) the largest hospitals.

answer

E) the largest hospitals.

question

Which of the following is NOT a key attribute that serves as one of the evaluative criteria for Fortune's "America's Most Admired Companies"? A) People management B) Innovativeness C) Financial soundness D) Amount of physical resources E) Social responsibility

answer

D) Amount of physical resources

question

The strategy-evaluation process should A) dominate decisions. B) be complex. C) be cumbersome. D) foster mutual understanding and trust. E) be restrictive.

answer

D) foster mutual understanding and trust.

question

Controls need to be ________ rather than ________. A) action-oriented; information-oriented B) cultural; political C) qualitative; quantitative D) measurable; timely E) universal; diverse

answer

A) action-oriented; information-oriented

question

The strategy-evaluation process should foster A) mutual understanding. B) doubt. C) corporate culture. D) complexity. E) division.

answer

A) mutual understanding.

question

Which of the following is true regarding the design of a firm's strategy-evaluation system? A) There is a one-size-fits-all system that works for all companies. B) It does not need to take into account the organization's size. C) The management style of a firm has no bearing on the design. D) It should be determined based on the unique characteristics of a company. E) There is one ideal system.

answer

D) It should be determined based on the unique characteristics of a company.

question

________ organizations require more elaborate and detailed strategy-evaluation systems than ________ ones because it is more difficult to coordinate efforts among different divisions and functional areas. A) Non-profit; for-profit B) For-profit; non-profit C) Large; small D) Small; large E) Foreign; domestic

answer

C) Large; small

question

________ plans can be defined as alternative plans that can be put into effect if certain key events do not occur as expected. A) Agile B) Scenario C) Evaluation D) Contingency E) Forecast

answer

D) Contingency

question

Which of the following statements about contingency plans is NOT true? A) Contingency plans should be as simple as possible. B) Only high-priority areas require the insurance of contingency plans. C) Contingency plans should be developed for favorable and unfavorable events. D) Strategists should plan for all possible contingencies. E) Contingency plans minimize the impact of potential threats.

answer

D) Strategists should plan for all possible contingencies.

question

What has been shown to permit quick response to change, prevent panic in crisis situations, and make managers more adaptable? A) Auditing B) Implementing a Balanced Scorecard C) Contingency planning D) Taking corrective actions E) Measuring performance

answer

C) Contingency planning

question

What term is defined as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"? A) Auditing B) Innovation C) R&D D) Strategic Management E) Financial ratios

answer

A) Auditing

question

International financial reporting standards (IFRS) comprise approximately ________ pages. A) 1,000 B) 5,000 C) 10,000 D) 25,000 E) 100,000

answer

B) 5,000

question

Already the European Union and 113 nations including Australia, Mexico, and Canada have ________ IFRS rules. A) adopted and then abandoned the use of B) been prohibited from adopting C) spoken out publicly against the adoption of D) revised the standard version of the E) adopted or soon plan to use

answer

E) adopted or soon plan to use

question

With regard to the visible or hidden issue, most executives agree that A) the SEC should regulate whether or not companies make their strategic information visible. B) some strategic information should remain confidential to top managers. C) a company has gone too far when it takes steps to ensure that strategic information is not disseminated beyond "the inner circle." D) the potential benefit of improved employee and stakeholder motivation and input is not worth the risk of rival firms easily knowing and exploiting a firm's strategies. E) keeping strategies secret from employees and stakeholder will likely improve communication, understanding, and commitment.

answer

B) some strategic information should remain confidential to top managers.

question

A particularly important twenty-first-century challenge facing all strategists today is A) deciding whether the process should be more an art or a science. B) deciding whether strategies should be visible or hidden from stakeholders. C) deciding whether the process should be more top-down or bottom-up in their firm. D) all of the above E) none of the above

answer

D) all of the above

question

Increased education and diversity of the workforce at all levels are reasons why A) the top-down approach is preferred. B) the bottom-up approach is untenable. C) only top executives have the experience and acumen to make strategy decisions. D) middle- and lower-level managers, and even nonmanagers, should be involved in the strategic planning process. E) the horizontal approach is the most pragmatic choice.

answer

D) middle- and lower-level managers, and even nonmanagers, should be involved in the strategic planning process.

question

Most strategy literature advocates that strategic management is A) more of a science than an art. B) more of an art than a science. C) based on analysis rather than research. D) based on intuition rather than analysis. E) based on creativity rather than intuition.

answer

A) more of a science than an art.

question

All of the following are reasons to be completely open as opposed to secretive with the strategy process EXCEPT A) Managers, employees and other stakeholders can readily contribute to the process. B) Stakeholders have greater basis for understanding and committing to a firm that is open. C) All levels of today's workforce exhibit increased education and diversity, making such contributions valuable. D) Participation and openness enhance understanding, commitment and communication within the firm. E) Openness limits rival firms from imitating or duplicating the firm's strategies.

answer

E) Openness limits rival firms from imitating or duplicating the firm's strategies.

question

Mintzberg's notion of "crafting" strategies A) is consistent with the view that strategic management is more a science than an art. B) contends that firms need to assess their environments, do research, evaluate alternatives, analyze, and then choose a course of action. C) suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination. D) reject strategies that result from subjective imagination in favor of objective analysis. E) insists on formality.

answer

C) suggests that strategic decision making be based primarily on holistic thinking, intuition, creativity, and imagination.

STUDY

Balanced Scorecard Approach Fundamental Attribution Error Goods And Services Order Processing System Path Goal Theory Path Goal Theory Of Leadership Small Group Communication

mgmt 3370 – Flashcard 133 terms

Rebecca Mallory

133 terms

Preview

mgmt 3370 – Flashcard

question

Asa and ruby both sell insurance. Asa is married and has three children and a new house. Ruby is single and has recently purchased a new Lexus. Acing to some industrial psychologists______.

answer

...

question

On the basis of research evidence, the two basic need categories are____.

answer

Extrinsic and intrinsic needs

question

According to Alderfers ERG theory, the lowest order need is _____.

answer

Physiological needs

question

A concert pianist always wanted to play jazz when he got the opportunity to play with a group of New Orleans jazz musicians who were displaced after Hurricane Katrina. He was elated after the experience of playing with the talented jazz musicians. He experienced an ______ reward.

answer

Intrinsic

question

Paralympics for disabled athletes feel what kind of inequity?

answer

Underreward

question

How do employees try to restore equity when the perceive that they have been treated unfairly?

answer

By rationalizing inputs or outcomes, changing the referent, simply quitting their jobs, reducing level of energy. ANSWER IS ALL OF THESE

question

_____ is the perceived degree to which outcomes and rewards are fairly distributed or allocated.

answer

Distributive justice

question

The _____ states that people will be motivated to the extent to which they believe that their efforts will lead to good performance, that good performance will be rewarded, and that they are offered attractive rewards.

answer

Expectancy theory

question

According to the expectancy theory, ____ affect the conscious choices that people make about their motivation.

answer

Valence, expectancy, and instrumentality. VEI

question

To use the expectancy theory to motivate employees, managers can

answer

systematically gather information to find out what employees want from their jobs

question

___ is the process of changing behavior by changing the consequences that follow behavior.

answer

Reinforcement

question

____ is a reinforcement strategy which weakens a behavior over time because the behavior has no consequences, positive or negative.

answer

Extinction

question

____ says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

answer

Goal-setting theory

question

____ is the extent to which people consciously understand and agree to goals.

answer

goal acceptance

question

For the goal setting theory to work, goals must ___.

answer

Focus employees attention on critical aspects of their jobs, energize behavior, create a tension between current state and desired state, be truly accepted by workers. ALL OF THESE ARE CORRECT

question

Effective managers define ___ as the process of influencing others to achieve group or organizational goals.

answer

Leadership

question

Which of the following is a major concern of leaders (as apposed to managers)?

answer

Inspiring and motivating others

question

When Jack Welch went to work for GE, he immediately began to make drastic changes in the company's structure and product lines. He envisioned a bloated, inefficient GE becoming an efficient, profitable organization over time. He inspired and motivated his employees to change. Jack Welch ___.

answer

would be characterized as a leader

question

According to an article from CIO Magazine, "Leadership grows from courage and integrity." From this opening statement, you know the article will discuss leadership from the ___.

answer

Trait theory viewpoint

question

Which of the following traits refers to the extent to which leaders are truthful with others?

answer

Honesty

question

Oftentimes when an individual is running for local political office, he or she promises to consider each issue, make decisions that are good for the entire community, and reduce taxes. When the individual assumes office, he or she is often unable to carry through on political promises, an inability which leads to a perceived problem with___.

answer

Integrity

question

Leaders who possess the trait of ___ are most decisive and assertive and more likely to gain others' confidence.

answer

Self-Confidence.

question

Which of the following statements about what makes a successful leader is true?

answer

Successful leaders are confident about their ability to make long-term strategic decisions.

question

Research at three universities has confirmed that two basic leader behaviors, ___ and ___, are central to successful leadership.

answer

initiating structure; consideration

question

Which of the following is another term for considerate leadership behavior?

answer

Employee-centered leadership

question

Hot Topic, McLaughlin demonstrating ____.

answer

Consideration

question

Which of the following is the best leadership style for all situations?

answer

NONE.

question

Bloody jack would be viewed by GE's employees as having ___.

answer

Strong position power

question

John Mack turned the money losing bank into profitable by "goading workers to move out of their comfort zones." and setting challenging goals for them. His high expectations for his employees indicates that Mack used an ____ leadership style.

answer

Achievement-oriented

question

According to the path-goal theory of leadership, ___ means setting challenging goals, having high expectations of employees, and displaying confidence that employees will assume responsibility and put forth extraordinary effort.

answer

Achievement-oriented leadership

question

Hot Topic's McLaughlin uses the ____ style of management.

answer

Participative

question

The normative decision theory ____.

answer

helps managers determine how much employee participation should be used in decision making.

question

In many organizations, sales managers develop company wide sales forecasts by asking members of the sales force to decide how much growth they anticipate in their individual sales territories. Sales managers then take information supplied by their subordinates. In the normative decision model, this would be an example of a ___ decision making style.

answer

consultative

question

Which of the following leadership theories uses a decision tree to determine the appropriate level of participation by subordinates in decision making?

answer

Vroom-Yetton-Jago's normative decision model

question

Koresh used ___ to create the strong relationships between him and his followers who were willing to die for him.

answer

Charismatic Leadership

question

____ refers to the behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship between them and their followers.

answer

Charismatic leadership

question

Transformational leaders ____.

answer

are able to make their followers feel they are vital encourage followers to make sacrifices for the organization help followers see how their jobs fit vision get employees to see beyond own needs Are accurately described by all of these

question

____ generates awareness and acceptance of a group's purpose and mission and gets employees to see beyond their own needs and self-interest for the good of the group.

answer

Transformational leadership

question

The last step in the perceptual process is ___.

answer

Retention

question

___ is the process by which individuals attend to, organize, interpret, and retain information from their environments.

answer

Perception

question

The steps in the perceptual process in order are___.

answer

Attention, organization, interpretation, and retention. AOIR

question

___ is the tendency to fill in gaps of missing information by assuming that we dont know what is consistent with what we already know.

answer

Closure

question

In the model of the communication process presented in the text, ___ occurs when a message is put into written, verbal, or symbolic form that can be recognized and understood by the receiver.

answer

encoding

question

The ___ is the system of official channels that carry organizationally approved messages and information.

answer

formal communication channel

question

Gore employees don't have titles or bosses in the traditional sense. Instead, associates make commitments to work on projects that they believe are most worthy of their time. As a result of doing away with traditional titles, the company encourages more ___ communication.

answer

Horizontal

question

In the ___ type of grapevine communication network, numerous people simply tell a few of their friends.

answer

cluster chain

question

In the ___ type of grapvine communication network, one highly connected individual shares information with many other managers and workers

answer

Gossip chain

question

Kinesics and para language are two kinds of ___.

answer

nonverbal communication

question

In nonverbal communication, ___ is the pitch, rate, tone, volume, and speaking pattern of ones voice

answer

paralanguage.

question

In which of the following cases would written communication be preferable to oral communication?

answer

when messages are very simple.

question

Which of the following statements about listening is true?

answer

All of these statements are true

question

When a plant was closed due to a merger, managers at the plant (who were given the opportunity to move to other plants) should have engaged in ___ as employees described the forced changes in lifestyle.

answer

Empathetic Listening

question

To be a better listener, you should __.

answer

evaluate the message as you hear it.

question

After some ___ with the event planner, Rubylyn better understood what her job entailed and became a valued employee.

answer

constructive feedback

question

The first thing that managers need to recognize when communicating feed back one-on-one to employees is that feedback can be ___.

answer

Constructive or destructive

question

TWCC wanted to solicit ___ from the companies best customers.

answer

Constructive feedback

question

Which of the following is NOT one of the organization-wide techniques that is regularly used for staying in touch with people throughout the organization. (i.e. hearing what others think and feel)?

answer

surprise visits

question

The basic control process begins with___.

answer

the establishment of clear standards of performance

question

These financial projections were ___ for the beverage company.

answer

standards

question

Companies may determine standards by ___.

answer

benchmarking other companies

question

an often overlooked factor in determining the cost of control is___.

answer

cybernetic feasibility

question

____ is the extent to which it is possible to implement each step in the control process.

answer

cybernetic feasibility

question

which of the following is a method managers can use to achieve control in their organizations?

answer

Bureaucratic, self-control, concertive, normative ALL OF THESE

question

____ control is top-down control in which managers try to influence employees behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

answer

Bureaucratic

question

An organization that relies heavily on ___ controls is likely to be highly resistant to change and slow to respond to customers and competitors

answer

bureaucratic

question

___ control is associated with autonomous work groups

answer

Concertive

question

Which of the following is NOT one of the four perspectives measured in the balances scorecard appraoch to control

answer

policies and procedures perspective

question

A provider of computer technical support that is using the balanced scorecard approach to control would look at ___.

answer

percentage of employees with training in last year customer defections cash flow percentage of computer owners that request support/5mo All of these and more

question

___ controls should be used when it is necessary to standardize operating proceudures and establish limits.

answer

Bureacratic

question

The librarian in charge of the special collection feels that this new policy will adversely influence the use of the collection in research of the experiences of everyday people during the war. This is an example of the use of control creating ___..

answer

Suboptimization

question

One of the advantages the balanced scorecard has over traditional control processes that rely solely on financial measures its that it ___.

answer

minimizes the chances of suboptimization

question

When implementing the financial perspective, managers would use ___.

answer

financial ratios

question

When dealing with the customer area of the balanced scorecard, the article advised librarians to use customer surveys. Why might this be a poor strategy to use?

answer

Customer surveys are typically misleading, skewed to positive feedback

question

Standards suggested to use with the ___ area of the balanced scorecard include how quickly and effectively a new service can be offered and how the training staff responds to its introduction

answer

Internal business perspective

question

The three components of ____ are initiation of effort, direction of effort, and persistence of effort.

answer

motivation

question

McClellend's Learned Needs Theory identifies three needs. They are needs for ____.

answer

Power, achievement, and affiliation

question

According to the model of need satisfaction, an unsatisfied need produces ___.

answer

tension

question

____ are the rewards associated with performing a task or activity for its own sake.

answer

intrinsic rewards

question

According to ___, people will be motivated when they perceive they are being treated fairly.

answer

equity theory

question

the two basic kinds of inequity are ___.

answer

Underreward and overreward

question

In equity theory, after an ___ comparison in which they compare their outcomes to their inputs, employees then make an ___ comparison in which they compare their O/I ratios with the O/I ratio of a referent.

answer

internal; external

question

In expectancy theory, ___ is the perceived relationship between effort and performance.

answer

expectancy.

question

The two parts of reinforcement are____.

answer

reinforcement contingencies and schedule of reinforcement

question

____ strengthen behavior (i.e., increase its frequency)

answer

positive and negative reinforcement

question

A manager who wants to use reinforcement theory to motivate workers should first ___.

answer

identify critical performance-related behavior

question

A ____ is a target, object, or result

answer

goal

question

Managers who use goal-setting theory to motivate employees should ___.

answer

make sure workers truly accept organizational goals

question

The CEOs of these troubled airline companies ___.

answer

are more likely managers than leaders

question

which of the following statements about leaders and managers is true?

answer

organziations need both leaders and managers

question

in terms of leadership behavior, the term ___ refers to the extent to which a leader is friendly, approachable, supportive, and shows concern for employees.

answer

consideration

question

Which of the following is another term for initiating structure leadership behavior?

answer

concern for production

question

Research shows that while initiating structure impacts primarily ___., consideration impacts primarily on ___.

answer

Job Performance; job satisfaction

question

Which of the following statements about the two basic leader behaviors are central to successful leadership is true?

answer

These behaviors are referred to as initiating structure and consideration

question

Which of the following is an example of situational theory of leadership

answer

Fielder's contingency theory

question

In Fielder's contingency theory, the term ___ refers to the degree to which leaders are able to hire, fire, reward, and punish workers.

answer

position power

question

In Fielder's contingency theory, the term ___ refers to the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members.

answer

situational favorableness

question

According to ____. leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.

answer

the path-goal theory

question

According to the path-goal theory of leadership, ___ involves letting employees know precisely what is expected of them giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.

answer

Directive leadership

question

According to the path-goal theory of leadership, ___ involves being friendly and approachable to employees, showing concern for them and their welfare, treating them as equals, and creating a friendly climate

answer

supportive leadership

question

According to the path-goal theory of leadership, ___ involves consulting employees for their suggestions and inputs before making decisions.

answer

Participative leadership

question

____ is leadership that creates a positive image of the future that motivates organizational members and proves direction for future planning and goal setting.

answer

Visionary leadership

question

Two types of visionary leadership are____.

answer

Charismatic leadership and transformational leadership

question

Research results consistently show ____.

answer

transformational leadership is much more effective on average than transactional leadership.

question

Which of the following statements about the importance of communication is true?

answer

All of these are true

question

Which of the following statements about perception and perceptual filters is true

answer

people perceive according to personality-, psychology, and experience-based filters

question

____ is the tendency to notice and accept objects and information consistent with our values, beliefs, and expectations while ignoring, screening out, or not accepting inconsistent information.

answer

Selective perception

question

According to attribution theory, ___ makes managers more likely to attribute to worker's problems or failures to internal rather than external causes.

answer

the fundamental attribution error

question

According to attribution theory, we use two general reasons for attributions to explain peoples behavior. They are ___.

answer

Internal and external attributions

question

In the model of the communication process presented in the text, ___ makes senders aware of possible miscommunications and enables them to continue communicating until the receiver understands the intended message.

answer

feedback

question

Noise can occur when___.

answer

The sender isnt sure what msg to communicate the receiver doesnt have the time to understand msg msg not decoded/encoded properly any of these occur

question

The three formal communication channels in an organization are categorized as ____.

answer

downward, horizontal, and upward

question

Coaching is ___.

answer

a kind of one-on-one communication primarily used by managers to improve an employee's on the job performance or behavior

question

Managers generally like and use ___ but are less receptive to using ___

answer

oral communication; written communication

question

Which of the following statements about hearing and listening are true?

answer

hearing is the act of perceiving sounds, while listening is the act of making a conscious effort to hear.

question

Feedback is more likely to be destructive than constructive when it is ___.

answer

Judgmental

question

____ is the withholding of information about organizational problems or issues by employees

answer

organizational silence

question

___ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.

answer

Control

question

___ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory

answer

standards

question

_____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior

answer

benchmarking

question

If items have not been sold after a month on display at the store, the items are removed from the store to either be sold at another location or returned to manufacturer. The chain of stores was able to set this standard through ___.

answer

listening to customers

question

Control is a ___ process.

answer

continuous, dynamic, and cybernetic

question

Three basic control methods are ___.

answer

Concurrent control, feedback control, and feedforward control

question

Two workers killed. By gathering info on how the men died in order to prevent recurrence, valero used ___ control.

answer

feedback

question

___ control is a method of gathering info about performance deficiencies as they occur

answer

concurrent

question

___ control is a method of gathering information about performance deficiencies before they occur.

answer

feedback

question

____ costs are the costs associated with implementing or monitoring control.

answer

Regulation

question

The two types of objective controls managers use are ___.

answer

Behavior and output

question

____ control regulates workers' actions and routines on the job, while ___ control measures the results of their efforts.

answer

behavior; output

question

Which of the following statement about normative control is true?

answer

normative control leads to an emphasis on very selective hiring

question

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational cultures, values, and beliefs are strong.

answer

Concertive control

question

The balanced scorecard approach to control ___.

answer

forces managers at each level of the company to set specific goals and measure performance in each of four areas

question

Quality is typically defined and measured in three ways. They are __.

answer

excellence, value, and conformance to expectations

question

When a company emphasizes ___ as its quality goal, managers must simultaneously control excellence, price, durability, or other features of a product or service that customers strongly associate with it.

answer

Value

STUDY

Balanced Scorecard Approach Business Management Human Resource Management Physical Fitness Problem Solving Short Term Objectives Supreme Court Total Quality Management

CH 8 Hr – Flashcard 78 terms

Matthew Carle

78 terms

Preview

CH 8 Hr – Flashcard

question

A ____ one in which all employees of a company are reviewed at the same time of year rather than on the anniversary dates they were hired. 8

answer

focal performance appraisal

question

The federal government begin evaluating employees in 1842, when Congress passed a law mandating yearly performance review for: 8

answer

departmental clerks

question

A problem with performance appraisal includes: 8

answer

it tends to focus on short-term objectives rather than long-term learning

question

One study showed that organizations with strong performance management systems are ____ more likely to outperform their competitors in the areas of revenue growth, productivity, profitability, and market value 8

answer

40-50 percent

question

The two primary purposes of performance appraisals are: 8

answer

administrative and developmental.

question

Administrative purposes of performance appraisal include all of the following except: 8

answer

providing performance feedback

question

In _____, for example, the Supreme Court ruled that performance appraisals were subject to the same validity criteria as selection procedures. 8

answer

Brito v. Zia

question

Developmental purposes of performance appraisal include all of the following except: 8

answer

validating selection procedures

question

All of the following are reasons why performance appraisal programs fail except: 8

answer

There is too much employee input into the development of the appraisal program.

question

In _____ the U.S. Supreme Court found that employees had been ranked against a vague standard, open to each supervisor's own interpretation. 8

answer

Albemarle Paper Co. v. Moody

question

Goal setting has been shown to improve employee performance, typically ranging from _____. 8

answer

10 to 25 percent

question

If a manager rates an employee higher than he or she deserves in order to look good as a manager in the eyes of his or her own superiors, this is an example of: 8

answer

organizational politics

question

Which of the following is NOT an advantage of the trait method of appraisals? 8

answer

High potential for rating errors

question

The strategic relevance of performance appraisals refers to: 8

answer

the extent to which standards relate to the overall objectives of the organization.

question

Freedom from criterion deficiency of performance appraisals refers to the extent to which: 8

answer

standards capture the entire range of an employee's responsibilities.

question

If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important factors, the instrument suffers from: 8

answer

criterion deficiency.

question

Which of the following is NOT a frequently cited reason as to why performance appraisal systems may not be effective. 8

answer

adequate preparation on the part of management

question

If a performance standard is found to be stable or consistent over time, it is said to be: 8

answer

reliable.

question

Reliability in performance appraisal is measured by: 8

answer

correlating two sets of ratings made by different raters

question

Performance appraisals must meet legal requirements because: 8

answer

they are used as a basis for HRM actions and decisions

question

The courts have found that: 8

answer

organizations should have carefully defined and measurable performance standards.

question

In light of recent court rulings, HR managers suggest that performance appraisals should meet all of the following legal guidelines except: 8

answer

performance appraisal should rarely be tied to compensation decisions.

question

In most instances, who is in the best position to perform the function of appraising an employee's performance? 8

answer

the employee's supervisor

question

When the manager and the employee jointly establish future performance goals for each employee, which appraisal source is useful? 8

answer

self appraisal

question

Performance dimensions of leadership, communication, and coordination of team efforts may best be appraised by: 8

answer

subordinates

question

Managers tend to be more open to the idea of ____ when the information is used for developmental purposes. 8

answer

subordinate appraisal

question

Self-appraisals are best for: 8

answer

developmental purposes.

question

One advantage of peer appraisals is that: 8

answer

peers may furnish more accurate and valid

question

Total-quality management concerns have led to the increased use of: 8

answer

team and customer performance appraisals.

question

TQM and team appraisal are complementary because: 8

answer

both focus on performance as a whole, rather than on the individual

question

Appraisal training for raters should focus on: 8

answer

eliminating subjective errors

question

A performance-rating error in which the appraiser is reluctant to give employees either unusually high or unusually low ratings is referred to as a: 8

answer

error of central tendency

question

A performance-rating error in which the appraiser tends to give employees either unusually high or unusually low ratings is referred to as a: 8

answer

leniency or strictness error

question

Which method of performance appraisal requires managers to place a certain percentage of employees into various performance categories? 8

answer

forced-distribution method

question

If you rate an employee's performance based largely on the employee's recent behavior, you are committing a: 8

answer

recency error.

question

If you rate an average employee's performance high because you compared the employee to poor performers, you are committing a: 8

answer

contrast error.

question

If you inflate the evaluation of people with whom you have something in common, you are committing a: 8

answer

similar-to-me error

question

A feedback training program for performance appraisal raters should cover at least all of the following areas except: 8

answer

developing independent learning objectives

question

Performance appraisal methods can be broadly classified as either ____, ____, or ____ approaches. 8

answer

trait, behavioral, results

question

In the ____ method, each trait or characteristic to be rated is represented by a scale on which a rater indicates the degree to which an employee possesses that trait or characteristic. 8

answer

graphic rating scale

question

answer

mixed-standard scale

question

A method of rating performance in which the rater chooses from statements that appear equally favorable or equally unfavorable is known as the 8

answer

forced-choice method.

question

The primary limitation of the forced-choice method of appraisal is: 8

answer

the cost of establishing and maintaining its validity.

question

Disadvantages of the essay method include all of the following except: 8

answer

it must follow a job-specific format.

question

If your primary objective for a performance appraisal is to give employees developmental feedback, which of the following appraisal methods should you use? 8

answer

behavioral

question

What is step one of the MBO process? 8

answer

Develop organization goals and metrics

question

The type of scale that uses critical incidents as examples of different points along the scale is known as: 8

answer

the behaviorally anchored rating scale

question

One major advantage of a behaviorally anchored rating scale is that: 8

answer

it requires a great deal of employee participation, which leads to acceptance.

question

The procedures followed to develop a behaviorally anchored rating scale typically result in scales that: 8

answer

have content validity

question

A performance appraisal approach designed to measure how frequently employees exhibit certain behaviors is: 8

answer

a behavior observation scale.

question

Which of the following is NOT a component of the Balanced Scorecard Approach? 8

answer

competitors

question

If an appraisal focuses on a narrow set of results criteria to the exclusion of other important process issues, the system may suffer from: 8

answer

criterion deficiency

question

Requirements for successful MBO programs include all of the following except: 8

answer

both trait and critical incident objectives must be set.

question

The appraisal system based on the concept that learning helps organizations improve their internal processes and allows individuals to see how their performance ties in with the firm is: 8

answer

balanced scorecard approach

question

The appraisal system that takes into account financial, customer, processes, and learning categories is called: 8

answer

balanced scorecard approach

question

The choice of an appraisal method should be largely based on: 8

answer

the purpose of the appraisal.

question

Which one of the following has not been cited as a reason for failure of performance management systems? 8

answer

They are too simple.

question

The appraisal interview should be divided into two sessions, one each for: 8

answer

performance review and developmental planning

question

The appraisal interview: 8

answer

should be held in two segments because the rater must perform the role of both evaluator and counselor.

question

Three different approaches to performance appraisal interviews analyzed by Norman R. F. Maier are: 8

answer

tell-and-sell, tell-and listen, and problem-solving.

question

The appraisal interview that requires interviewers to possess the ability to persuade an employee to change in a prescribed manner is: 8

answer

tell-and-sell.

question

The appraisal interview that assumes that the opportunity to release frustrated feelings will help to reduce or remove the feelings is: 8

answer

tell-and-listen.

question

In which type of appraisal interview does the interviewer communicate the strong and weak points of an employee's performance during the first part of the interview, and then explore the employee's feelings about the appraisal in the second part? 8

answer

tell-and-listen

question

Listening, accepting, and responding to feelings are essential elements of this appraisal interview: 8

answer

problem-solving.

question

The type of appraisal interview that seeks to stimulate growth and development in the employee by discussing the problems, needs, innovations, satisfactions, and dissatisfactions the employee has encountered on the job is the ____ method. 8

answer

problem-solving

question

As a rule of thumb, a supervisor should spend approximately ____ percent of the time talking during an appraisal interview. 8

answer

30 to 35

question

An inappropriate interview technique in which praise serves to cushion criticism by alternating positive statements with negative statements is known as: 8

answer

the sandwich technique.

question

Tips for using criticism constructively includes all of the following except: 8

answer

use the "sandwich technique"

question

As an appraiser, you should try to do all of the following except: 8

answer

change the person, not the behavior.

question

It is recommended that a diagnosis of poor employee performance focus on all of the following except: 8

answer

personality.

question

Managers often first assume poor performance of subordinates is due to: 8

answer

lack of ability

question

Research suggests that when it comes to our own performance, most of us first attribute our bad performance to: 8

answer

external constraints

question

Some organizations believe that appraisals are useful 8

answer

only for highly effective or ineffective employees.

question

Employees who earn performance-based pay are more _________. 8

answer

satisfied

question

A new process used by some companies to make sure managers are rating employees consistently is called ___________. 8

answer

calibration

question

Given the complexity of today's jobs, __________ raters should be used. 8

answer

multiple

question

Reasons for not using peer appraisals more frequently all the following except: 8

answer

adverse court decisions

question

The main disadvantage of a BARS is that it: 8

answer

requires considerable time and effort to develop

STUDY

Accounting Balanced Scorecard Approach Critical Success Factors Financial Accounting Job Well Done Organizational Psychology

Chapter 9 – Behavioral and Organizational Issues in Management Accounting and Control Systems – Flashcards 35 terms

Steven Colyer

35 terms

Preview

Chapter 9 – Behavioral and Organizational Issues in Management Accounting and Control Systems – Flashcards

question

Management accounting and control system (MACS)

answer

A system that generates and uses information that helps decision makers assess whether an organization is achieving it's objectives.

question

Control

answer

The set of procedures, tools, performance measures, systems, and incentives that organizations use to guide and motivate all employees to achieve organizational objectives.

question

Technical considerations of MACS

answer

1. Accurate 2. Timely 3. Consistent 4. Flexible

question

Behavioral considerations of MACS

answer

1. Embedding the organization's ethical code of conduct into MACS design. 2. Using a mix of short- and long-term qualitative and quantitative performance measures (or the Balanced Scorecard Approach). 3. Empowering employees to be involved in decision making and MACS design. 4. Developing an appropriate incentive system to reward performance.

question

Scientific management school (Taylorism)

answer

Earliest attempt at studying the role of management. Developed at the turn of the 20th century. People find work objectionable, individuals care little for decision making or exercising creativity, and money is the sole driving force behind performance.

question

Human relations movement

answer

People have needs that go well beyond performing a simple repetitive task at work and financial compensation is only one aspect of what workers desire.

question

Human resources model of motivation (HRMM)

answer

Introduces a high level of employee responsibility for and participation in decisions in the work environment. People find work enjoyable; people desire to participate in developing objectives, making decisions, and attaining goals; people are motivated by both financial and non-financial means of compensation; employees have a great deal of knowledge about their jobs.

question

Goal congruence

answer

Careful attention to motivation is a key step for the organization and employees to align their respective goals.

question

Employee self-control

answer

Employees monitor and regulate their own behavior and perform to their highest levels.

question

Diagnostic control systems

answer

Feedback systems that monitor organizational outcomes and correct any deviations from predetermined performance standards.

question

Interactive control systems

answer

Foce a dialogue among all organizational participants about the data coming out of a system and what actions to take that are appropriate.

question

Task control

answer

The process of finding ways to control human behavior so that a job is completed in a pre-specified manner.

question

Preventive control

answer

Much, if not all, of the discretion is taken out of performing a task because of the precision required or the nature of the materials involved.

question

Monitoring

answer

Inspecting the work or behavior of employees while they are performing a task. Can be accomplished using listening devices or through surveillance.

question

When task control is appropriate

answer

1. When there are legal requirements to follow specific rules/procedures. 2. When employees handle liquid assets. 3. When the organization can control its environment and eliminate uncertainty and the need for judgement.

question

Results control

answer

Focus on measuring employee performance against stated objectives.

question

When results control is appropriate

answer

1. When organization members understand organizational objectives. 2. When organization members have the knowledge and skill to respond to changing situations with corrective actions. 3. When the performance measurement system is designed to assess individual contributions.

question

Dysfunctional behavior

answer

Employees knowingly manipulating or falsifying performance measures.

question

Gaming the performance indicator

answer

Employees altering their actions specifically in an attempt to manipulate a performance indicator through job-related acts.

question

Data falsification

answer

Knowingly altering sales booking records in an employee's favor.

question

Smoothing (earnings management)

answer

When individuals accelerate or delay the preplanned flow of data without altering the organization's activities.

question

Authoritative budgeting

answer

When a superior informs subordinates what their budget will be without requesting input. Benefits: straightforward and efficient. Drawbacks: less information about the process being budgeted.

question

Participative budgeting

answer

Uses a joint decision making process in which all parties agree about setting the budget targets. Benefits: greater commitment to the budget, higher motivation. Drawbacks: takes more time.

question

Consultative budgeting

answer

Occurs when managers ask subordinates to discuss their ideas about the budget but no joint budget making occurs. Benefits: input from employees can occur. Drawbacks: pseudoparticipation.

question

Intrinsic rewards

answer

Rewards that come from within an individual and reflect satisfaction from doing the job and from the opportunities for growth that the job provides.

question

Extrinsic rewards

answer

Any rewards that one person provides to another to recognize a job well done.

question

Incentive compensation/pay-for-performance systems

answer

Reward systems that provide monetary (extrinsic) rewards based on measured results/achieving or exceeding some measured performance.

question

Six attributes of a measurement system

answer

1. Employees must understand their jobs and the reward system and believe that it measures what they control and contribute to the organization. 2. Designers of the performance measurement system must make a careful choice about whether it measures employee's inputs or outputs. 3. Elements of performance that the performance measurement system monitors and rewards should reflect the organization's critical success factors. 4. The reward system must set clear standards for performance that employees accept. 5. The measurement system must be calibrated so that it can accurately assess performance. 6. The reward system should reward group rather than individual performance when appropriate.

question

Cash bonus

answer

Pays cash on the basis of some measured performance; one-time award that does not become part of the employee's base pay in subsequent years. Fixed in amount or proportional to the level of performance relative to the target.

question

Profit sharing

answer

Cash bonus calculated as a percentage of an organization's reported profit; group incentive compensation plan focused on short-term performance.

question

Gain sharing

answer

A system for distributing cash bonuses from a pool when the total amount available is a function of performance relative to some target.

question

Stock options

answer

The right to purchase a unit of an organization's stock at a specified price, called the option price.

question

Tight budgets

answer

Targets are perceived as ambitious but attainable.

question

Stretch targets

answer

Exceed previous targets by a significant amount; usually require an enormous increase in a goal over the next budgeting period.

question

Budget slack

answer

The influence of behavior to "pad" a budget via misstating expenses and/or revenues

STUDY

Balanced Scorecard Approach Business Management Management

Business Management review 45 terms

Rae Jordan

45 terms

Preview

Business Management review

question

Which of the following is a quality control approach that emphasizes a relentless pursuit of higher quality and lower costs?

answer

Continuous improvement

question

The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year. Which of these budgets will provide Katrina information about planned investments in major assets like buildings and heavy machinery?

answer

Capital budget

question

In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in which a complete justification for every line item is required. This budget process is an example of:

answer

Zero-based budgeting.

question

A difference between groups and teams is that

answer

Teams have a collective work product, groups have individual work products.

question

Effective virtual team leaders use technology to build relationships through all of the following ways EXCEPT:

answer

Keeping tabs on electronic communication patterns.

question

The forming stage of team development is characterized by:

answer

Orientation.

question

Communication is defined by the text as the process by which:

answer

Information is exchanged and understood by two or more people, usually with the intent to motivate or influence behavior

question

What are the key elements of communication?

answer

Encoding, message, and feedback

question

Which communication channel would be most successful to inform managers of impending company-wide layoff?

answer

Face-to-face contact

question

A(n)____is an example of an intrinsic reward.

answer

Employee's feelings of self-worth

question

Sally enjoys her job as a teacher, not because of the pay or benefits, but because she feels good about shaping the minds of tomorrow's leaders. Sally is motivated by:

answer

Intrinsic rewards.

question

Highroller Casinos provides good salaries and benefits, including bonuses of up to 25 percent of annual salaries. However, the company has been criticized for not establishing an achievement or recognition program for its employees. Which of the following best describes the company in terms of the two-factor theory?

answer

Good hygiene factors and inadequate motivators

question

Peter has the ability to convince others to work toward the attainment of goals. This ability is known as _______.

answer

Leadership

question

A contingency approach to leadership that links the leader's behavioral style with the task readiness of subordinates is called the_____ .

answer

Situational leadership

question

Andy's subordinates say that they love working for Andy because he inspires them to not only believe in the organization but to believe in their own potential as well. Based on this example, Andy can best be described as what type of leader?

answer

Transformational

question

People generally experience when their work matches their needs and interests, when working conditions and rewards (such as pay) are satisfactory, and when the employees like their co-workers.

answer

Job satisfaction

question

The cognitive process people use to make sense out of the environment by selecting, organizing, and interpreting information is called:

answer

Perception.

question

Josh evaluates Kandi's performance and gives her an \"outstanding\" based on his knowledge that she came to work everyday earlier than anyone else and therefore she is extremely hardworking. Josh is making which of these errors in perceptual judgment?

answer

The halo effect

question

Which of the following refers to the process of determining the skills, abilities, and other attributes a person needs to perform a particular job?

answer

Selection

question

Bryan, who works in the human resource department, is interested in gathering data on the projected number of resignations and retirements over the next ten years. He is most likely to perform which of the following activities?

answer

Human resource planning

question

In the new workplace, are people who work for an organization, but not on a permanent or full-time basis.

answer

Contingent workers

question

Shared development of innovations among several departments is emphasized by the approach to innovation

answer

Horizontal linkage model

question

Which of the following is a person who sees the need for and fights for productive change in an organization?

answer

An idea champion

question

Organizational development specialists identify three distinct steps for achieving behavioral and attitudinal changes. These are

answer

Unfreezing, changing, and refreezing.

question

A(n)___is responsible for coordinating the activities of several departments.

answer

Project manager

question

The matrix structure violates which of the following principles of management?

answer

Unity of command

question

Self-contained unit structure is a term used for

answer

Divisional structure.

question

Examples of non-programmed decisions would include the decision to:

answer

Develop a new product or service.

question

Which of the following means that the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable?

answer

Ambiguity

question

Which model of decision making is associated with satisfying, bounded rationality, and uncertainty?

answer

Administrative

question

Where does the information about opportunities and threats comes from?

answer

Scanning the external environments

question

The traditional approach to corporate planning was to:

answer

Have a centralized planning department.

question

In using MBO, objectives should be set by the:

answer

Supervisor and the employee jointly.

question

Most people have learned to conform to expectations of good behavior expected by colleagues, family, friends, and society. They are in what stage of moral development?

answer

Conventional

question

With a philosophy of _____, managers weave environmental and social concerns into every strategic decision, revise policies and procedures to support these efforts and goals.

answer

Sustainability

question

What type of a stakeholder would a nature conservation group be for a paper manufacturing company?

answer

Special interest group

question

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy?

answer

Bottom of the pyramid strategy

question

The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?

answer

Direct investing

question

_______ generally are located in Asia, Africa and South America.

answer

LDCs

question

40. The adaptability culture emerges in an environment that requires _____ response and____decision making.

answer

Fast; high-risk

question

Symbols, stories, and heroes are important because they:

answer

Communicate the significant values of an organization.

question

______ is a part of Ford's, the U.S. auto manufacturer, task environment.

answer

Chrysler

question

Conceptual, human, and technical skills are important to which managerial level?

answer

a. Top managers b. Middle managers c. First-line managers d. Non managers

question

What is the role of the liaison?

answer

The liaison role pertains to the development of information sources both inside and outside the organization.

question

A manager in for-profit business focuses primarily on _________, while a manager of a non-profit focuses on _______ .

answer

The bottom-line; social impact

STUDY

Balanced Scorecard Approach Business Management

Questions Med – Flashcards 45 terms

Deloris Connelly

45 terms

Preview

Questions Med – Flashcards

question

When we contact your most recent managers, what will they say about how often you performed additional job duties without being told?

answer

A couple times a week

question

A co-worker tells you he is leaving work 30 minutes early because the manager is gone for the day and there is no work left to do. He says that you can leave and no one will notice. You have an important appointment right after work and sometimes traffic is bad. What will you do?

answer

Tell the co-worker that you might be able to find some work, so you're not going to leave.

question

At work, how often were you late in an average month?

answer

Once or twice

question

What would your recent managers say about how seriously you take your work?

answer

More than others

question

A new set job processes has been put in place. Some new processes are very helpful, but a few are not helpful and are slowing down work.

answer

Follow the rules as written.

question

I enjoy finding ordinary tasks.

answer

Strongly Agree

question

People say I can be counted in to do whatever it takes to get the job done.

answer

Agree

question

Learning is ...

answer

Something I have to do. It's part of life.

question

It bothers me when co-workers don't follow the rules.

answer

Strongly Agree

question

Most people who complain about their work have a good reason.

answer

Disagree

question

When we contact your most recent managers, how will they rate the quality of your work?

answer

Somewhat above average.

question

Compared to the other employees, how would you perform in a job where work rules or procedures are constantly changing?

answer

I would be above average.

question

How would people describe your ability to adapt to new policies, procedures or situations.

answer

More flexible than average

question

Suppose you overhear some team members in a break room using inappropriate language and sharing stories that could be perceived to others colleagues. What would you MOST likely to do?

answer

Leave the room and ignore the situation

question

You notice a co-worker who is not following the rules. She really can do the task faster the way she is doing it. What would you MOST likely to do?

answer

Talk to the co-worker about the importance of the rules.

question

My most recent managers have trusted me to handle problems that come up without getting help of others.

answer

Agree

question

The people I have worked with have often said they were surprised about how much work I can do in a short period of time.

answer

Agree

question

Many managers expect employees to work too hard.

answer

Neutral

question

I am proud that I get work done faster than others.

answer

Strongly Agree

question

A co-worker says that he won't be at work tomorrow because he is starting a new job somewhere else. He lied to the manager by saying that he be at work. There are not enough employees working tomorrow. What would you be MOST likely to do?

answer

Let the manager know

question

When asked, my most recent managers will say that I can work longer an harder than most of my co-workers

answer

Agree

question

In the past, I have liked challenging work assignments.

answer

Strongly Agree

question

When asked, my most recent managers will say that I complete work quickly.

answer

Agree

question

Suppose your manager informs your team that a very large customer order was just received and that we will need everyone's help to complete the order in a timely manner. The manager asks the entire team to work on Saturday morning which is typically your day off. What are you MOST likely to do?

answer

Plan to work on Saturday and accept that you will need to change your plans to be at work on Saturday as schedule.

question

Your most recent managers would say that, compared with your co-workers, the amount of effort you put into your work is ...

answer

More than others

question

People I have worked with on projects would say that I adjust to change quickly.

answer

Agree

question

I am always on time, even for things I don't want to do.

answer

Neutral

question

Doing a job I can be proud of is important to me, even if nobody else notices.

answer

Agree

question

I consistently focus a high level of energy on my work.

answer

Agree

question

I often suggest improvements to work procedures or process.

answer

Neutral

question

My most recent managers would rate my ability to handle sudden changes in plan as ...

answer

Above average

question

I often see ways to improve how people are doing their jobs.

answer

Neutral

question

People say I always do things correctly and accurately.

answer

Agree

question

I often volunteer for new duties, assignments, or projects

answer

Agree

question

My manager cannot expect me to keep my commitments when his or her commitments are not met.

answer

Agree

question

When asked, how will your most recent managers describe the speed with which you complete your work?

answer

Somewhat faster than others.

question

How would your recent managers describe your approach to tasks you choose to do?

answer

I carefully choose the tasks I take on and am always successful.

question

When workers are not successful, it is usually their company's fault.

answer

Strongly Disagree

question

When I am unexpectedly absent, I try ...

answer

Explain and apologize

question

When I come across problems during a task, it usually make me feel ..

answer

Like there is a challenge to overcome.

question

Which of the following best describes your ability to meet goals?

answer

I always meet my goals, and sometimes exceed.

question

When asked, how will your recent manager describe your dependability?

answer

Somewhat better than my co-workers.

question

When would your most recent managers say you got the most work done ? When they ...

answer

Gave you detailed instructions about what to do.

question

My co-workers often come to me when they need good ideas

answer

Agree.

question

I believe that people who are late to work are poor planners.

answer

Neutral

STUDY

Balanced Scorecard Balanced Scorecard Approach Economic Value Added

Business Management-Chapter 16 – Flashcards 40 terms

Paulina Ratliff

40 terms

Preview

Business Management-Chapter 16 – Flashcards

question

Feedforward control provides information about performance deficiencies by monitoring inputs, not outputs.

answer

True

question

____ controls should be used when it is necessary to standardize operating procedures and establish limits.

answer

Bureaucratic

question

Refer to Walgreens. When Walgreens' managers changed how much inventory the company holds at a time, they were affecting the ____ perspective of the balance scorecard.

answer

internal

question

Imagine a manufacturer that has a 99 percent error-free production rate and decides it wants 100 percent error-free production. Its management needs to examine ____ to determine if the costs of increased controls outweigh the benefits of error-free production.

answer

regulation costs

question

A chain of specialty fashion stores has interviewed a sample of its female customers and learned that a customer can be expected to visit the store looking for new merchandise on average every two weeks. The chain of stores was able to set this standard through ____.

answer

listening to customers

question

In the traditional control systems used at most companies, ____ measures are used to assess performance.

answer

financial

question

Companies may determine standards by ____.

answer

benchmarking other companies

question

Refer to Interpublic. Why should Interpublic consider implementing the Balanced Scorecard?

answer

to minimize the chances of suboptimization

question

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.

answer

bureaucratic

question

Companies may determine standards by evaluating their capacity to enable goal achievement, by listening to customers, by observing competitors, or by benchmarking other companies.

answer

True

question

In the behavioral approach to managerial control, a company's widely shared values and beliefs guide workers' behavior and decisions.

answer

False

question

Concertive control produces less stress for workers than bureaucratic control.

answer

False

question

The Balanced Scorecard approach to control emphasizes measurement of organizational performance in three equally important areas. These areas are finances, internal operations, and innovation and learning.

answer

False

question

Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?

answer

policies and procedures perspective

question

Refer to C Brewing. The brewmaster is in charge of which classical management function?

answer

controlling

question

Control loss occurs when behavior and work procedures merely meet minimally acceptable standards rather than exceeding those minimal standards.

answer

False

question

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

answer

Benchmarking

question

A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access their Civil War collection. The librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____.

answer

suboptimization

question

Economic value added (EVA) is so important because it ____.

answer

makes managers at all levels pay much closer attention to how they run their segment of the business

question

Quality is typically defined and measured in three ways. They are ____.

answer

excellence, value, and conformance to expectations

question

Control loss usually has no effect on goal achievement.

answer

False

question

____ control is a method of gathering information about performance deficiencies before they occur.

answer

Feedforward

question

A sales manager requires each member of his sales force to make three calls per day on current customers, to call on two potential customers every week, and to sell a minimum of $10,000 worth of merchandise weekly. Which of the following control methods does this indicate the sales manager is using?

answer

Objective

question

Caterpillar announced plans to cut its production of construction equipment due to forecasted increases in steel prices. By discovering the problem with product inputs and letting customers know that its output will fall short, Caterpillar used ____ controls.

answer

feedforward

question

An organization that relies heavily on ____ controls is likely to be highly resistant to change and slow to respond to customers and competitors.

answer

bureaucratic

question

____ should be used when it is difficult to create good measures of worker behavior and output and when organizational culture, values, and beliefs are strong.

answer

normative control

question

According to the text, which of the following levels produces the greatest minimization of waste?

answer

waste prevention and reduction

question

McDonald's fast-food restaurants have a well-designed training program for all new employees. Each new employee is supposed to learn how to perform standardized tasks. Due to labor shortages in some areas, these new employees begin work as soon as they are hired and do not receive any off-the-job training. This nonconformity to standards creates ____.

answer

control loss

question

A company makes only one product. The company is carefully evaluating what it learned in becoming such a success to see if it could use the same strategy to expand internationally. Which perspective of the Balanced Scorecard is this manufacturer emphasizing?

answer

innovation and learning perspective

question

Refer to Walgreens. If you managed a pharmacy chain that was trying to compete with Walgreen's, you should use ____ to determine ways to improve business efficiency

answer

benchmarking

question

Control is achieved when behavior and work procedures conform to set standards and that the company goals are accomplished.

answer

True

question

Ironically, ____ control may lead to even more pressure for workers to conform to expectations than ____ control.

answer

concertive; bureaucratic

question

Implementing controls is always worthwhile.

answer

false

question

answer

listening to customers

question

One of the advantages the Balanced Scorecard has over traditional control processes that rely solely on financial measures is that it ____.

answer

minimizes the chances of suboptimization

question

____ control regulates workers' actions and routines on the job, while ____ control measures the results of their efforts.

answer

Behavior; output

question

____ occurs when performance improvement is attained in one part of an organization but only at the expense of decreased performance in another part.

answer

Suboptimization

question

The basic control process of business begins with ____.

answer

the establishment of clear standards of performance

question

____ allows a trucking company not only to compare its safety performance with other companies but to also adopt those practices found to be superior.

answer

Benchmarking

question

Process modification, material/product substitution, and ____ are the three strategies used for waste prevention and reduction.

answer

good housekeeping

STUDY

Balanced Scorecard Approach Business Management Goal Directed Actions Strategic Management

Chapter 1 Strategic Management Exam 1 Material – Flashcards 17 terms

Collin Foley

17 terms

Preview

Chapter 1 Strategic Management Exam 1 Material – Flashcards

question

An action a company takes to attain superior performance through the creation advantages.

answer

What is strategy?

question

The process by which managers choose a set of "good" strategies for the enterprise to pursue its objectives.

answer

What is the strategic management process?

question

A central objective of strategic management is to learn why some firms earn more economic profits that others.

answer

Why study strategic management process?

question

Mission > Objectives > External and Internal Analysis > Strategic Choice > Strategy Implementation > Competitive Advantage

answer

The Strategic Management Process

question

who we are, what are we going to do

answer

The mission or long term purpose of the company answers the question _________ and _________.

question

how we are going to do it, measurable targets

answer

The objective of a company should answer the question ________ and should include ________.

question

External Environment - External Opportunities and Threats

answer

Consolidation and the changing face of competition in an industry is an example of ________.

question

Internal Strengths and Weaknesses

answer

Differences in resources and capabilities between firms are an example of ________.

question

Strategic Choice

answer

Business Level Strategy is an example of a _________.

question

business level strategies

answer

Walmart, Target, and Dollar stores compete with different resources/capabilities and different or overlapping market segments these strategies are an example of __________.

question

Business-level strategies

answer

________ are actions firms take to gain competitive advantages in a single market or industry.

question

Corporate-level strategies

answer

________ are actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously.

question

corporate level strategies

answer

Domestic Expansions, Ventures, Vertical Integration, Diversification, Strategic Alliances, and Global Expansion are all examples of _________.

question

competitive advantage

answer

The strategic management process includes effective theories on how to create ________.

question

the pattern of actions and business approaches that define a company's strategy.

answer

Actions to: -Respond to changing market conditions, -Gain sales/market share via lower prices, higher, performances, better quality, etc., -Enter/exit new geographic or product markets, -Strengthen competitiveness via mergers/acquisitions or strategic alliances, and -Strengthen capabilities and neutralize weaknesses are

question

Emergent strategies

answer

________ are theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented.

question

the difference between the perceived benefits gained by a customer that purchases a firm's products or services and the full economic cost of these products or services

answer

Economic value

STUDY

Balanced Scorecard Approach Business Management Environmental Scanning Process Human Resource Management Human Resources Management Management

HRA Ch 2 Study Guide – Flashcards 60 terms

Patrick Turner

60 terms

Preview

HRA Ch 2 Study Guide – Flashcards

question

In the minds of corporate executives, the major deficiency of HR management in its

answer

the lack of specific quantifiable measures of HR activities.

question

refers to organizational use of employees to gain or keep a competitive advantage resulting in greater organizational effectiveness.

answer

Strategic HR management

question

Georgiana, the Vice President of HR, is in a meeting with the other top level corporate executives. They are discussing whether it is a good strategy for the firm to open a branch in Amsterdam. In her role as head of HR, Georgiana must

answer

frankly communicate whether the firm's current human resources have a capabilities to handle such a strategy.

question

The text identifies two basic organizational competitive strategies, which are

answer

cost leadership and differentiation.

question

A cost-leadership strategy is more appropriate in a ____ business environment.

answer

relatively stable

question

Which of the following strategies would be more appropriate in a dynamic environment, characterized by the need to continually find new products and new markets?

answer

differentiation

question

Angelo speaks Italian, English, and French fluently. He has lived and worked in both Italy and France and has an MBA from a prestigious U.S. university. Angelo's friends describe him as "incredibly cosmopolitan" and a person who "blends in like a native wherever he is." Angelo probably has a/an ____ and would be a good candidate for a company looking to build its international business.

answer

global mindset

question

According to Hofstede, in general, the people in cultures with a ____ orientation are most likely to value thrift and persistence.

answer

long-term

question

Which of the following is most likely to be written as an information report?

answer

A report summarizing what you learned at a conference for technical writers you recently attended.

question

The direct pattern of organization is appropriate for a report when readers

answer

are supportive of or familiar with the topic.

question

You are writing a five-page informal report that will be sent outside your organization. What format is most appropriate?

answer

Letter format

question

What is the first step you should take when you are assigned to write a report?

answer

Define the purpose.

question

You work as a personnel administrator for a large university. Each month you must summarize how many applications you received, how many people you interviewed, and how many employees were hired and submit a report to the head of Human Resources. What kind of report would you most likely write to do this?

answer

Information report

question

How should you organize your report that discusses ways to improve the flow of purchase orders within the company? Your boss is likely to be agreeable to your ideas.

answer

Problem, recommendations, discussion, summary

question

Which of the following situations might require a progress report?

answer

The work of a committee preparing for an open house when a new wing of a hospital is completed.

question

In the minds of corporate executives, the major deficiency of HR management in its strategic role is

answer

the lack of specific quantifiable measures of HR activities.

question

answer

frankly communicate whether the firm's current human resources have a capabilities to handle such a strategy.

question

The text identifies two basic organizational competitive strategies, which are

answer

cost leadership and differentiation.

question

A cost-leadership strategy is more appropriate in a ____ business environment.

answer

relatively stable

question

You've been asked to study ways to market a new product, a type of software that creates a firewall for home computers. You come up with a great idea that you will submit to your boss, who is already familiar with the product and your assignment. How should you organize the report?

answer

Introduction, findings, summary

question

A report from a committee summarizing results of a year-long investigation of customer buying habits would likely be prepared in what format?

answer

Manuscript format

question

Which of the following is most likely to be written as an information report?

answer

A government regulatory report to be filed with the Equal Employment Opportunity Commission.

question

You have been asked to take formal minutes during a stockholders' meeting. Which of the following is the best advice?

answer

You should make sure to record voting results and actions taken.

question

It is critical that HR executives be included immediately after top management has made strategic decisions.

answer

question

The differentiation strategy requires an organization to "build" its own employees to fit its specialized needs.

answer

question

. Although both Mexico and China have significantly lower manufacturing costs than the U.S. has, China's manufacturing costs are much lower than Mexico's.

answer

question

Business reports can be defined as "systematic attempts to answer questions and solve problems."

answer

question

The two broad categories of business reports are information reports and feasibility reports.

answer

question

The primary difference between direct and indirect organizational patterns is the location of the findings.

answer

question

Logical sources of information for many business reports are company records, personal experience, and electronic resources.

answer

question

Conducting interviews with individuals is usually more economical than sending out questionnaires.

answer

question

A Policy Change That Will Improve Employee Morale is an example of a talking heading.

answer

question

It is unnecessary to cite the sources of information in an informal report.

answer

question

A summary condenses the primary ideas, conclusions, and recommendations of a longer report or publication.

answer

question

Why is strategic HR management essential for organizational success?

answer

Strategic HR management is the use of employees to gain or keep a competitive advantage resulting in greater organizational effectiveness. An organization cannot be successful in the long term without effectively managing all of its resources, including its human resources. The HR strategy must support the organization's competitive strategy. HR strategy will be different if the organization pursues a cost-leadership strategy or whether it pursues a differentiation strategy. In addition, HR must support the organization's global strategy.

question

What are the dimensions of international culture and how do they affect HR?

answer

Culture is composed of the societal forces affecting the values, beliefs, and actions of a group of people. HR activities must be sensitive to cultural differences as companies do business on a global scale. Practices that are effective in one culture, may be ineffective or offensive in others. The five basic dimensions of culture are: power distance, individualism, masculinity/femininity, uncertainty avoidance, and long-term orientation.

question

__________ format is common for informal reports written for circulation within an organization.

answer

MEMO

question

Discussion of Findings is an example of a __________ head.

answer

funtional

question

__________ reports collect and organize information but do not analyze that information.

answer

information

question

__________ and recommendation reports attempt to solve problems by evaluating options and offering recommendations.

answer

Justification

question

Purpose of Strategic Planning

answer

Is to have the right number of human resources, with the right capabilities, at the right times, and in teh right places. (CORE COMPETENCY)

question

Government Influences

answer

In summary, an organization must consider a wide variety of government policies, regulations, and laws during the HR planning process.

question

When do you need a password

answer

When it is confidential

question

What are KSA's

answer

Knowledge, skills and Abilities

question

ROI

answer

Return on Investment

question

Multi-national enterprise (MNE)

answer

is an organization that has operating units located in foreign countries.

question

The Ist phase of international interaction consists of

answer

Importing and Exporting

question

Global Organizations

answer

Firm that has coporate units in a number of countries that are intergrated to operate worldwide.

question

Long-term values

answer

include thrift and persistance

question

Human Resource (HR) Planning

answer

Process of analyzing and idenifying the need for and availability of human resources so that the organization can meet its objectives.

question

The "HEART" of strategic planning

answer

Environmental Scanning

question

Digital Format

answer

Intranet, Internet, Software

question

Functions of Reports

answer

Fit intto two broad catagories; informations reports and antalytical reports.

question

Common purpose in writing reports

answer

Answer questions and Solve problems

question

Describe six kinds informal reports

answer

Information reports Progress reports Justification/ recommendation reports Feasibility reports Minutes of meeting Summaries

question

How you format a report depends on its

answer

Length,topic,audience and purpose

question

The indirect is approriate for

answer

analytical reports that seek to persuade or that convey bad news

question

The direct pattern place

answer

conclusions and recommendations near the beginning of a report

question

Report Delivery

answer

In person, mail, fax, e-mail, and Online (may need to be password protected)

question

Gathering Data

answer

company records, observation, surveys, questionnaires, inventories and interviews, printed materials and electronic resources

STUDY

1970s And 1980s 1980s And 1990s Balanced Scorecard Approach Global Positioning Systems Global Supply Chain Value Added Activities

Logistics Exam Ch 1 – 5 – Flashcards 120 terms

Jaxon Wilson

120 terms

Preview

Logistics Exam Ch 1 – 5 – Flashcards

question

Logistics clearly contributes to ___________ and ___________ utility.

answer

time; place

question

___________ utility refers to the value or usefulness that comes from a customer being able to take possession of a product.

answer

Possession

question

___________ utility refers to having products available where they are needed by

answer

Place

question

What concept refers to "how well company resources are used to achieve what a company promises it can do?"

answer

Effectiveness

question

Every customer getting the same type and levels of logistics service refers to

answer

mass logistics

question

What two logistics activities make the heaviest use of the Internet?

answer

Purchasing and transportation

question

World trade grew at an average annual rate of approximately ___________ percent between 1997 and 2007.

answer

question

The ___________ approach indicates that a company's objectives can be realized by recognizing the mutual interdependence of major functional areas.

answer

systems

question

The movement and storage of materials into a firm refers to:

answer

materials management

question

What concept refers to the storage of finished product and movement to the customer?

answer

Physical distribution

question

Logistics managers use the ___________ approach to coordinate inbound logistics, materials management, and physical distribution in a cost efficient manner.

answer

total cost

question

A cost trade-off is a situation where:

answer

some costs increase and some costs decrease

question

The ___________ department often measures inventory in terms of its cost or value in dollars, whereas ___________ tends to measure inventory in terms of units.

answer

Finance; logistics

question

A common interface between production and logistics involves:

answer

the length of production runs

question

Landed costs refer to:

answer

a price that includes both the cost of the product plus transportation to the buyer

question

____________ refers to being out of an item at the same time there is demand for it.

answer

Stockout

question

Which channel covers the movement of title to the goods?

answer

ownership

question

____________ is bringing together similar stocks from different sources.

answer

Accumulating

question

____________ refers to breaking a homogenous supply into smaller lots.

answer

Allocating

question

The most costly logistics activity in many firms is ____________.

answer

transportation management

question

How do data and information differ?

answer

data are simply facts; information is a body of facts in a format suitable for decision making

question

____ provide effective ways to process organizational business data, to perform calculations, and to create documents.

answer

Office automation systems

question

The most relevant general software package for logisticians is:

answer

spreadsheets

question

4. ____ help various stakeholders—employers, suppliers, customers—work together by interacting and sharing information in many different forms.

answer

Communication systems

question

What has emerged as the measuring stock for logistics information technology in the century 21st?

answer

wireless communication

question

____ refers to a network of satellites that transmits signals that pinpoint the exact location of an object.

answer

Global positioning systems

question

___________ refers to the computer-to-computer transmission of business data in a structured format.

answer

EDI

question

Automatic identification systems are an essential component in ____________.

answer

point-of-sale systems

question

The most popular automatic identification system currently in use is ___________.

answer

bar code scanners

question

There are suggestions that widespread adoption of RFID will only occur when the price of read-only tags drops below ____ cents.

answer

question

The primary advantage of ____________ is that it enables a firm to test the feasibility of proposed changes at relatively little expense.

answer

simulation

question

Warehouse management systems represent an example of what general type of information management system?

answer

Decision support system

question

Which of the following is not a potential benefit of transportation management systems?

answer

a. Fewer stockouts b. Reduced fuel consumption c. Decreased empty vehicle miles d. Reduced transportation expenditures

question

____________ refers to the application of mathematical tools to large bodies of data in order to extract correlations and rules.

answer

Data mining

question

____ create and maintain consistent data processing methods and an integrated database across multiple business functions.

answer

Enterprise systems

question

The origins of contemporary ERP systems can be traced back to logistics and ____________.

answer

manufacturing

question

A general rule of thumb is that the actual time to implement ERP systems may range from ____________ to ____________ times longer than the time period specified by the ERP vendor.

answer

2; 4

question

What has emerged as the most popular application of on-demand software (software- as-a-service)?

answer

Transportation management systems

question

In a reverse auction, ____________.

answer

One buyer invites bids from multiple sellers

question

____________ has been identified as the biggest information technology that companies face today.

answer

Information security

question

Depending on industry and product type, reverse logistics costs as a percent of revenue can range between ____ and ____ percent.

answer

3; 6

question

____ strategy is focused on determining the goals for the company, the types of businesses in which the company should compete, and the way the company will be managed.

answer

Corporate-level

question

Which of the following is not one of the generic strategies that can be pursued by an organization, as identified by strategist Michael Porter?

answer

Value enhancement

question

A ____ strategy entails an organization developing a product and/or service that offers unique attributes that are valued by customers and that the customer perceives to be distinct from competitor offerings.

answer

Differentiation

question

Which generic strategy concentrates an organization's effort on a narrowly defined market to achieve either a cost leadership of differentiation strategy?

answer

Focus

question

A(n) ____ entails the functional units of an organization providing input into the other levels of strategy formulation.

answer

Hierarch of strategy

question

Which of the following represents the preferred hierarchy of strategy (i.e., from the first strategy to be developed to the last to be developed)?

answer

Corporate‡ business unit‡ functional

question

____ strategy decisions involve issues such as the number and location of warehouses and the selection of appropriate transportation modes.

answer

Logistics

question

Which of the following is not a potential type of logistics strategy decisions?

answer

Investments in technology that support logistics activities Selecting appropriate transportation modes Deployment of inventory Number and location of warehouses

question

The ____ shows revenues, expenses, and profit for a period of time.

answer

Income statement

question

In general, the ____ measures the profitability of the products and/or services provided by a company

answer

Income statement

question

The ____ reflects the assets, liabilities, and owners' equity at a given point in time.

answer

Balance sheet

question

The balance sheet reflects the assets, liabilities, and ____ at a given point in time.

answer

Owners' equity

question

Which of the following does not appear on the balance sheet?

answer

Net income

question

The current ratio is calculated by dividing ____ by ____.

answer

Total current assets; total current liabilities

question

Which of the following is a common measure of organizational financial success?

answer

Return on investment

question

What provides the framework for conducting return on assets analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?

answer

The Strategic Profit Model SPM

question

Return on assets equals:

answer

Net profit margin times asset turnover

question

What is the formula for net profit margin?

answer

Net profit divided by sales

question

With respect to net profit margin, the most relevant categories for logistics managers to consider are:

answer

Sales, costs of goods sold, total expenses

question

What is the formula for asset turnover?

answer

Total sales divided by total assets

question

With respect to asset turnover, ____ is typically the most relevant logistics asset.

answer

Inventory

question

The balanced scorecard approach is based on the belief that management should evaluate their business from ____ distinct perspectives.

answer

Four

question

Logistics measurement systems have been traditionally information on how many types of performance?

answer

Five

question

____ and ____ are the two basic organizational structures associated with logistics.

answer

Fragmented; unified

question

In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.

answer

fragmented

question

In a ____ logistics structure, logistics activities are managed in multiple departments throughout an organization.

answer

fragmented

question

One problem with a ____ logistics structure is that because logistics activities are scattered throughout the firm, they likely remain subservient to the objectives of the department in which they are housed.

answer

fragmented

question

In a ____ logistics structure, multiple logistics activities are combined into, and managed as, a single department.

answer

unified

question

A ____ logistics organization implies that the corporation maintains a single logistics department that administers the related activities for the entire company from the home office.

answer

centralized

question

A ____ logistics organization means that logistics-related decisions are made separately at the divisional or product group level.

answer

decentralized

question

A primary advantage of ____ logistics is its relative efficiency, whereas a primary advantage of ____ logistics is its customer responsiveness.

answer

centralized; decentralized

question

____ organizational design has its foundations in the command-and-control military operation, where decision-making and communication often follow a top- down flow.

answer

Hierarchical

question

A ____ organizational design attempts to create an organization that is responsive to the parameters of the contemporary business environment.

answer

network

question

A key attribute of network organizational design is a shift from ____ to ____.

answer

function; process

question

____ refers to satisfying current and emerging customer needs.

answer

Relevancy

question

____ can be defined as an organization's ability to address unexpected operational situations.

answer

Flexibility

question

____ refers to the amount of output divided by the amount of input.

answer

Productivity

question

Which of the following is a way to improve to productivity?

answer

increase output while holding input constant

question

Productivity improvement efforts in logistics are often directed towards ____.

answer

increasing output while holding input constant

question

What is the most important purpose of warehouse work rules?

answer

to keep employees from engaging in unproductive and potentially destructive activities

question

A ____ is a device used to monitor and control the actions taken by a driver and his/her vehicle.

answer

tachograph

question

The materials stolen in ____ are usually for the employee's own use.

answer

pilferage

question

What is the primary difference between pilferage and theft?

answer

pilferage involves a firm's own employees, while theft involves efforts from outsiders

question

The large increase in pirate attacks between 2008 and 2009 was due to a surge in attacks off the ____ coast

answer

Somalia

question

The concept of logistics social responsibility, or corporate social responsibility issues that relate directly to logistics, did not emerge until which decade?

answer

1990-1999

question

The two areas in logistics systems where most energy costs occur are ____ and ____.

answer

warehousing; transportation

question

With respect to the design of warehouses, one suggestion for energy savings is to make sure that dock doors are not placed on the ____ side of a building.

answer

north

question

Transportation accounts for approximately ____ of all petroleum consumption in the United States.

answer

two-thirds

question

Reverse logistics can be ____ times more expensive than forward logistics.

answer

4 to 5

question

Two of the most important U.S. government agencies incorporated into the Department of Homeland Security were the Transportation Security Agency

answer

Customs and Border Protection

question

Which of the following is responsible for the security of the U.S. transportation system?

answer

Transportation Security Administration

question

The Importer Security Filing (ISF) rule requires importers to file ____ pieces of information and carriers to file ____ pieces of information.

answer

10; 2

question

Which of the following is an advantage of a decentralized logistics organization?

answer

can be responsive to customer service requirements

question

Which of the following is an advantage of a centralized logistics organization?

answer

good opportunities for freight consolidation

question

An under performing supply chain is defined as one that exhibits poor service, unproductive assets, and

answer

High variable operating costs

question

The supply chain management philosophy emerged in which decade?

answer

1990s

question

A ____________ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows.

answer

supply chain

question

Although nearly any organization can be part of a supply chain, supply chain management requires:

answer

overt management efforts by the organizations in a supply chain

question

Three of the most prominent supply chain management frameworks are the Supply- Chain Operations Reference (SCOR) model, the Global Supply Chain Forum (GSCF) model, and the ____.

answer

The Process Classification Framework (PCF)

question

The current Global Supply Chain Forum (GSCF) model identifies ____________ key processes associated with supply chain management.

answer

eight

question

The ____________ is organized around 12 cross-enterprise operating and management processes.

answer

Process Classification Framework

question

Contemporary supply chains should be fast and ____________.

answer

agile

question

An organization's ability to respond to changes in demand with respect to volume and variety refers to ____.

answer

agility

question

What is a perfect order?

answer

simultaneous achievement of relevant customer metrics

question

____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output.

answer

Leagility

question

Positive, long-term relationships between supply chain participants refer to:

answer

partnerships

question

According to the text, ____________ has been at the center of the changes taking place that affect the supply chain.

answer

technology

question

The two key factors that have sparked much of the technological change affecting supply chains are ____________ and ____________.

answer

Computing power; Internet

question

The variability in demand orders among supply chain participants:

answer

refers to the bullwhip effect

question

Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:

answer

supply chain collaboration

question

Supply chain collaboration can be classified as transnational, strategic, or ____ in nature.

answer

tactical information sharing

question

____ collaborations offer the best opportunity for improving supply chain performance.

answer

Strategic

question

The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.

answer

Third-party logistics

question

What is a fourth-party logistics provider?

answer

a company that ensures that various 3PLs are working toward the relevant supply chain goals and objectives

question

____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.

answer

Supply chain analytics

question

In a(n) ____ approach, all relevant software applications are provided by a single vendor.

answer

single integrator

question

____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans.

answer

Corporate culture

question

What concept refers supply chain?

answer

Vertical integration

question

There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?

answer

intensive distribution

STUDY

Balanced Scorecard Approach Business Business Management Knowledge Management System Operations Management

MAN Chapt 12 – Flashcards 111 terms

Sienna Rogers

111 terms

Preview

MAN Chapt 12 – Flashcards

question

Which one of the following is not something that shapes and helps define a company's culture? A) The core values and business principles that executives espouse together with the operating practices and behaviors that define "how we do things around here" B) The company's standards of what is ethically acceptable and what is not, along with the legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices C) A company's approach to people management and its style of operating D) The strategy and business model that the company has adopted E) The "chemistry" and "personality" that permeates its work environment

answer

D) The strategy and business model that the company has adopted

question

Which one of the following is not something to look for in identifying a company's culture? A) The company's approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel B) The company's track record in meeting or beating its financial and strategic performance targets C) How managers and employees interact and relate to each other D) The spirit and character that pervades the work climate E) The strength of peer pressures to do things in particular ways and conform to expected norms

answer

B) The company's track record in meeting or beating its financial and strategic performance targets

question

Which of the following statements about a strong-culture company is false? A) Decisive leadership on the part of top executives, an industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture company. B) In strong culture companies, senior managers make a point of reiterating key principles and core values to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behavior—they walk the talk. C) Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture. D) In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices get squashed. E) Senior managers insist that company values and business principles be reflected in the decisions and actions taken by all company personnel; moreover, individuals encounter strong peer pressures from co-workers to observe culturally-approved norms and behaviors.

answer

A) Decisive leadership on the part of top executives, an industry-leading market share, and strict enforcement of long-standing company policies are all important traits of a strong culture company.

question

The characteristics of a weak company culture include A) deep hostility to change and to people who champion new ways of doing things. B) no code of ethics or statement of core values, a highly centralized managerial hierarchy, and a big corporate bureaucracy. C) a lack of values and principles that are consistently preached or widely shared, little co-worker peer pressure to do things in particular ways, and no strong employee allegiance to what the company stands for or to operating the business in well-defined ways. D) no strong sense of empowerment among company members, little or no top management commitment to a clearly-defined competitive strategy, and a poor track record in producing good financial results. E) All of the above are traits of a weak company culture.

answer

C) a lack of values and principles that are consistently preached or widely shared, little co-worker peer pressure to do things in particular ways, and no strong employee allegiance to what the company stands

question

Which of the following is not one of the four types of unhealthy company cultures? A) Bureaucratic cultures B) Change-resistant cultures C) Unethical and greed-driven cultures D) Politicized cultures E) Insular, inwardly-focused cultures

answer

A) Bureaucratic cultures

question

Companies with insular, inwardly-focused cultures A) are typically opposed to performance-based incentive compensation and employee empowerment. B) are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, are frequently lax when it comes to product innovation and continuous improvement in performing value chain activities, and prefer following rather than leading market change. C) are typically gung-ho about adapting to changing market conditions so as to protect the company's culture from shareholder criticism. D) tend to resist recruiting people who can offer fresh thinking and outside perspectives and typically refrain from looking outside the company for best practices, new managerial approaches, and innovative ideas. E) are typically run by empire-building managers who jealously guard their decision-making prerogatives; they have their own agendas and operate the work units under their supervision as autonomous "fiefdoms," and the positions they take on issues is usually aimed at protecting or expanding their turf.

answer

D) tend to resist recruiting people who can offer fresh thinking and outside perspectives and typically refrain from looking outside the company for best practices, new managerial approaches, and innovative ideas.

question

The hallmarks of a high performance corporate culture include A) a shared willingness to adapt core values and ethical standards to fit the changing requirements of an evolving strategy, use of a balanced scorecard approach to tracking company performance, and a gung-ho approach to discovering best practices. B) considerable political infighting that typically consumes a great deal of organizational energy, often with the result that what's best for the company takes a backseat to political maneuvering. C) 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. D) charismatic managerial leadership, a lean management bureaucracy, and a must-be-invented-here mindset. E) strong inclinations to adopt a wait-and-see posture, carefully analyze several alternative responses, learn from the missteps of early movers, and then move forward cautiously and conservatively with initiatives that are deemed safe.

answer

C) 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.

question

Adaptive cultures are characterized by such traits as A) willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies—company personnel share a feeling of confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices. B) orchestrating organizational changes in a manner that (1) demonstrates genuine care for the well-being of all key constituencies (customers, employees, shareowners, suppliers, and the communities where the company operates) and (2) tries to satisfy all their legitimate interests simultaneously. C) a proactive approach to identifying issues, evaluating the implications and options, and quickly moving ahead with workable solutions. D) a willingness to change operating practices and behaviors to adapt to new market and competitive conditions so long as the changes do not compromise core values and long-standing business principles E) All of these.

answer

E) All of these.

question

Which of the following is not one of the leadership roles that senior managers have to play in pushing for good strategy execution and operating excellence? A) Learning the obstacles in the path of good execution and clearing the way for progress B) Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed C) Staying on top what is happening and closely monitor progress. D) Putting constructive pressure on the organization and initiate corrective actions. E) Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.

answer

B) Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed

question

The task of top executives in making corrective adjustments includes A) deciding when adjustments are needed and what adjustments to make. B) knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture. C) being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments. D) deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly. E) deciding how to identify the problems that need fixing.

answer

A) deciding when adjustments are needed and what adjustments to make.

question

Once a company's culture becomes ingrained, then the culture can be perpetuated by A) establishing a code of ethics and encouraging company personnel to practice the advocated ethical standards in conducting company operations. B) deliberately avoiding diversification or acquisition so as not to upset the internal cultural balance or risk a cultural clash with a newly-acquired company. C) continuing with the same organization structure. D) continuity of long-term direction and top management leadership. E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture; systematic indoctrination of new members in the culture's fundamentals; frequent reiteration of core values by senior managers and group members; and regular ceremonies honoring members who display desired cultural behaviors.

answer

E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture; systematic indoctrination of new members in the culture's fundamentals; frequent reiteration of core values by senior managers and group members; and regular ceremonies honoring members who display desired cultural behaviors.

question

Companies with multinational operations or that have recently made new acquisitions typically have A) unhealthy cultures. B) multiple cultures or subcultures. C) weak cultures. D) adaptive cultures. E) unstable cultures.

answer

B) multiple cultures or subcultures.

question

The characteristics of a strong culture company include all but which one of the following? A) Deeply rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace B) A strong managerial commitment to conducting the company's business according to established traditions C) Top executives with high ethical standards and personal integrity D) Using core values and ingrained business principles as guides in making decisions E) Frequent and dedicated efforts on the part of management to communicating values and business principles to organization members and explaining how they relate to the company's business environment

answer

C) Top executives with high ethical standards and personal integrity

question

A work environment where the culture is well-matched to the conditions and behaviors requisite for good strategy execution A) is a powerful ally in managerial efforts to execute the chosen strategy because it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressures from co-workers to conform to culturally acceptable norms—as a consequence, culturally-approved behavior thrives and culturally-disapproved behavior gets squashed and even penalized. B) signals the presence of a strongly embedded high-performance culture. C) is nearly always a high-performance culture because a tight strategy-culture fit promotes dedicated employee efforts to identify and adopt the best possible work practices. D) is an adaptive culture with strategy-supportive policies and procedures. E) is generally a culture in which employees are empowered and there is considerable emphasis on teamwork.

answer

A) is a powerful ally in managerial efforts to execute the chosen strategy because it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressures from co-workers to conform to culturally acceptable norms—as a consequence, culturally-approved behavior thrives and culturally-disapproved behavior gets squashed and even penalized.

question

A tight culture-strategy match-up furthers a company's strategy execution effort in all but which one of the following ways? A) A tight culture-strategy fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution. B) A tight strategy-culture alignment produces a high-performing, adaptive work environment conducive to fast achievement of stretch performance targets. C) A culture that encourages actions, behaviors, and work practices supportive of good strategy execution not only provides company personnel with clear guidance regarding "how we do things around here" but also produces significant peer pressure from co-workers to conform to culturally acceptable norms. D) A deeply embedded culture tightly matched to the strategy aids the cause of competent strategy execution by making it far simpler to root out operating practices that are a misfit. E) A culture imbedded with values and behaviors that facilitate strategy execution promotes strong employee identification with and commitment to the company's vision, performance targets, and strategy—as a consequence, employees feel genuinely better about their jobs and greater numbers of company personnel exhibit some passion about their work and exert their best efforts to execute the strategy and achieve performance targets.

answer

B) A tight strategy-culture alignment produces a high-performing, adaptive work environment conducive to fast achievement of stretch performance targets.

question

Which one of the following is not accurate as concerns changing a company's culture and aligning it with the requirements for strategic success? A) Changing a company's culture and trying to align it with the requirements for strategic success are among the toughest management tasks and requires visible actions, both symbolic and substantive, to modify the culture. B) Changing a company's culture and aligning it with the requirements for strategic success entails diagnosing which facets of the present culture are strategy-supportive and which are not. C) Changing a company's culture and aligning it with the requirements for strategic success involves open and candid communication among all concerned about those aspects of the culture that have to be changed. D) Changing a company's culture and trying to align it with the requirements for strategic success generally requires instituting a new values statement, adopting most of the traits of an adaptive culture, and retraining managers in the ways and means of convincing employees to adopt new behaviors. E) Changing a company's culture and trying to align it with the requirements for strategic success nearly always requires that senior executives personally lead the culture-changing effort and may require replacing old-culture traditionalist managers with "new breed" managers.

answer

D) Changing a company's culture and trying to align it with the requirements for strategic success generally requires instituting a new values statement, adopting most of the traits of an adaptive culture, and retraining managers in the ways and means of convincing employees to adopt new behaviors.

question

Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A) Managements commitment to lead by example and attend company events to praise good deeds and expound on the merits of the new culture B) Promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior C) Appointing outsiders with the desired cultural attributes to high-profile positions D) Screening all candidates for new positions carefully, hiring only those who appear to fit in with the new culture 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

answer

A) Managements commitment to lead by example and attend company events to praise good deeds and expound on the merits of the new culture

question

A company's culture is typically grounded in and shaped by A) the depth of its commitment to identifying and adopting best practices. B) its strategic vision and mission statement. C) whether top management is trying to ingrain cultural norms by means of mostly substantive actions or mostly symbolic actions. D) its strategy and business model. E) its dedication to displaying certain core values and the bar it sets for ethical standards.

answer

E) its dedication to displaying certain core values and the bar it sets for ethical standards.

question

Which of the following topics would least likely be a topic or element of a company's statement of its core values? A) A dedication to superior customer service, top-notch quality, product innovation, and/or technological leadership B) An expectation that company personnel will display creativity, exercise initiative, and accept responsibility C) Prohibiting giving or accepting bribes, kickbacks, or gifts D) A commitment to exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, Golden Rule behavior, respect for co-workers, and ethical behavior E) A commitment to making the company a great place to work

answer

C) Prohibiting giving or accepting bribes, kickbacks, or gifts

question

Establishing a workable strategy-cultural fit in multinational and global companies A) requires the development of extensive training programs for new employees working in non-host country markets. B) can be accomplished by grounding the company's strategy in values and operating practices that travel well across country borders and that strike a chord with managers and workers in many different areas of the world, despite varying local customs and traditions. C) requires using a Think-Local, Act-Local strategy so that the company's culture and ethical standards in each country can be matched to its strategy in that country. D) first requires having cross-cultural employee committees work out a set of core values, ethical principles, and operating practices that can win the support of employees worldwide; then it is up to top management to ingrain the consensus core values, ethical principles, and operating practices. E) entails making it clear to employees that there is no alternative to having a consistent culture across all countries where the company operates.

answer

B) can be accomplished by grounding the company's strategy in values and operating practices that travel well across country borders and that strike a chord with managers and workers in many different areas of the world, despite varying local customs and traditions.

question

Managers who are successful in leading the drive for good strategy execution and operating excellence: A) are typically very effective communicators and have solid culture-building skills. B) spend a lot of time coaching others how to be good company role models. C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make. D) are good at delegating authority and responsibility to subordinates. E) are good at knowing what policies and procedures it will take to promote good strategy execution.

answer

C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.

question

The strategic leadership task of putting constructive pressure on the organization to achieve good results and operating excellence: A) requires extensive training of company personnel in how to "be creative and come up with new ideas for improvement." B) requires forceful and unrelenting top management actions to establish an adaptive culture. C) entails setting stretch objectives, making champions out of the people who turn in winning performances, encouraging employees to use initiative and creativity in performing their work, and using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma quality to focus attention on continuous improvement. D) entails creating an inspiring core values statement and making sure that would-be champions of change do not pursue maverick ideas that would be disruptive to the organization or troublesome to implement. E) is often best accomplished by designating several high-profile company employees to act as a team of culture-change champions and charging them to find ways to ingrain continuous improvement as a cultural norm.

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C) entails setting stretch objectives, making champions out of the people who turn in winning performances, encouraging employees to use initiative and creativity in performing their work, and using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma quality to focus attention on continuous improvement.

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Which of the following is not a part of top management's job (especially the CEO) in leading the effort to operate a company's business in an ethically-principled fashion? A) The CEO and other senior executives must set an excellent example in their own ethical behavior, demonstrating character and personal integrity in their actions and decisions. B) The company's CEO must urge the board of directors to develop a social responsibility strategy for the company to pursue. C) Top management must declare unequivocal support of the company's ethical code and take an uncompromising stand on expecting all company personnel to conduct themselves in an ethical fashion at all times. D) The CEO and other senior executives must be prepared to make the hard call by removing people from key positions or terminating them when they are guilty of ethics violations and by reprimanding those who are lax in monitoring and enforcing ethics compliance. E) Top management must establish an effective ethics compliance and enforcement process.

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If senior executives are really serious about enforcing high standards of ethical behavior, they probably need to do such things as A) openly encouraging company personnel to report possible infractions via anonymous calls to a hotline or e-mails sent to a designated address. B) having mandatory ethics training programs for employees. C) conducting an annual audit of each manager's efforts to uphold ethical standards and requiring formal reports on the actions taken by managers to remedy deficient conduct. D) requiring all employees to sign a statement annually certifying that they have complied with the company's code of ethics and making sure that ethical violations carry appropriate punishment, including dismissal if the violation is sufficiently egregious. E) All of these.

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E) All of these.

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The character of a company's culture is manifested in A) the types of competitive strategy it employs, its financial and strategic objectives, and its strategic vision. B) the core values and business principles that management preaches and practices, the traditions the company maintains, its policies and its ethical standards, and the character of its internal work environment. C) the kind of organization structure it has and the kinds of internal support systems it has installed. D) the demographic makeup of its work force and the particular countries and geographic areas where it operates. E) All of the above are part of a company's culture.

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B) the core values and business principles that management preaches and practices, the traditions the company maintains, its policies and its ethical standards, and the character of its internal work environment.

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Which of the following is not a factor of some importance in helping to define the character of a company's corporate culture? A) The core values and business principles that management preaches and practices B) The company's internal politics C) The company's approach to people management D) The behaviors that define "how we do things around here" E) The strategic vision that management has committed to achieving

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E) The strategic vision that management has committed to achieving

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Once a company's culture becomes ingrained, then one way to perpetuate the culture is by A) establishing a code of ethics and encouraging company personnel to practice the advocated ethical standards in conducting company operations. B) deliberately avoiding diversification or acquisition so as not to upset the internal cultural balance or risk a cultural clash with a newly-acquired company. C) continuing with the same organization structure. D) continuity of long-term direction (strategic vision and financial and strategic objectives). E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture.

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E) carefully screening and selecting new employees according to how well their values, attitudes, and personality fit the culture.

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Which of the following is not particularly important in helping to perpetuate a company's culture? A) Systematic indoctrination of new employees in the culture's fundamentals B) Telling and retelling of company legends C) Continuing with the same strategy, core competencies, and competitive capabilities D) Constant management reiteration of core values and "the way we do things around here" in daily conversations and pronouncements E) Visibly rewarding people who display cultural ideals and follow cultural norms and penalizing those who don't

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C) Continuing with the same strategy, core competencies, and competitive capabilities

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A culture grounded in values, practices, and behavioral norms that match the behaviors required for good strategy execution A) is a powerful ally in managerial efforts to execute the chosen strategy. B) is a strong culture. C) promotes strong employee efforts to identify and adopt new best practices. D) has less need for strategy-supportive policies and procedures. E) is generally a culture in which employees are empowered and there is considerable emphasis on teamwork.

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A) is a powerful ally in managerial efforts to execute the chosen strategy.

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In strong culture companies, a tight strategy-culture alignment promotes management's strategy execution effort because A) there's a built-in system of informal rules and peer pressures conducive to good strategy execution. B) no changes in organization structure will be needed and no new policies and procedures will have to be put in place. C) the culture promotes the very kinds of work habits, behaviors, values, and practices needed for proficient strategy execution. D) management does not have to contend with weeding out unwanted subcultures. E) Both A and C.

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E) Both A and C.

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Strong company cultures are preferable to weak company cultures because A) in weak-culture companies there is less likelihood of a tight culture-strategy fit. B) they tend to be more ethical and more reflective of the right kinds of values. C) weak cultures are more likely to possess unhealthy cultural characteristics. D) strong cultures are a potent ally in executing strategy provided the behavioral norms ingrained in a strong culture are well-matched to the behaviors needed for good strategy execution. E) strong cultures take less time to fix if they are out-of-sync with the requirements for good strategy execution.

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D) strong cultures are a potent ally in executing strategy provided the behavioral norms ingrained in a strong culture are well-matched to the behaviors needed for good strategy execution.

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Which of the following is usually not a part of managerial efforts to root out unwanted cultural norms and behaviors and replace them with norms and behaviors that will help promote better strategy execution? A) Instituting employee recognition programs (such as employee of the month awards and individual achievement awards) to call everyone's attention to behaviors that reflect the desired cultural norms B) Developing a values statement C) Preparing a detailed rules and procedure manual that all managers and employees can refer to in trying to practice the desired cultural norms and behavior D) Replacing managers who insist on displaying old-culture behavior with managers who will act and function as new-culture role models. E) Insisting that top managers lead by example; for instance, if the strategy entails being the low-cost producer, top managers might have inexpensive office decor, be given few if any executive perks, and be expected to visibly lead cost-cutting moves within their own areas of responsibility.

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C) Preparing a detailed rules and procedure manual that all managers and employees can refer to in trying to practice the desired cultural norms and behavior

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A company's culture can be said to be strong and cohesive when A) the company conducts its business according to a clear and explicit set of principles and values, management devotes considerable time to communicating these principles and values to organizational members and explaining how they relate to the company's business environment, and the principles and values are widely shared by company personnel. B) employee turnover rates are low, most all employees are familiar with the company's values and ways of operating, and the organization structure has undergone no major changes for a number of years. C) the CEO has exercised effective leadership for a number of years. D) the company makes a conscious and ongoing effort to dismiss employees who disavow the company's values, principles, and cultural beliefs. E) All of the above are signals of a strong-culture company.

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A) the company conducts its business according to a clear and explicit set of principles and values, management devotes considerable time to communicating these principles and values to organizational members and explaining how they relate to the company's business environment, and the principles and values are widely shared by company personnel.

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Which one of the following is the most typical characteristic of a weak company culture? A) A highly centralized managerial hierarchy and a big corporate bureacracy B) A low commitment to high ethical standards and behaving in a socially responsible manner C) Few strong traditions and few values and behavioral norms that are widely shared D) Low employee morale and considerable employee skepticism about the merits of the company's strategy E) Dissatisfaction on the part of company personnel with the core values that senior management is advocating.

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C) Few strong traditions and few values and behavioral norms that are widely shared

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A corporate culture founded on ethical business principles and socially approved values A) virtually guarantees that the company will have a highly favorable public image and reputation. B) has a favorable impact on a company's long-term strategic success. C) does more to detract from a company's chances for strategic success and market leadership than to help it. D) gives validity to a company's core values and helps ingrain them in the company's culture. E) is generally viewed as irrelevant window dressing and a nice public relations gesture by both customers and suppliers.

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B) has a favorable impact on a company's long-term strategic success.

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Instilling and ingraining a company's values statement and code of ethics in company policies, practices, and actual conduct does not generally entail such actions as A) promptly dismissing any employee who violates the ethics code or disavows company values. B) requiring all employees to sign a statement annually certifying that they have complied with the company's code of ethics. C) communicating the values and ethics code to all employees, explaining compliance procedures, and making the values statement and the code of ethics an integral part of employee training and educational programs. D) the CEO openly and unequivocally endorsing the values and ethics code and leading the enforcement of ethical standards. E) screening out job applicants who do not exhibit compatible character traits.

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A) promptly dismissing any employee who violates the ethics code or disavows company values.

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Exercising strategic leadership does not include which one of the following? A) Pushing corrective actions to improve strategy execution and achieve the targeted results B) Displaying ethical integrity and leading social responsibility initiatives C) Keeping the organization focused on operating excellence D) Steering resources into strategy-critical activities and making sure that policies and procedures are supportive of effective strategy execution E) Staying on top of what is happening, monitoring progress, ferreting out issues, and learning what obstacles lay in the path of good strategy execution

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D) Steering resources into strategy-critical activities and making sure that policies and procedures are supportive of effective strategy execution

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Managers who are successful in exercising good strategic leadership A) are wise decision-makers and very effective communicators. B) spend a lot of time coaching others how to be good company role models. C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make. D) are good at delegating authority and responsibility to subordinates. E) are good at knowing what policies and procedures it will take to promote good strategy execution.

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C) typically practice MBWA and are good at deciding when corrective adjustments are needed and what corrective adjustments to make.

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The strategic leadership task of keeping the internal organization focused on operating excellence A) requires regularly reminding and exhorting employees to "be creative and come up with new ideas for improvement." B) requires forceful top management actions to implement benchmarking, TQM or Six Sigma programs, and continuous change efforts. C) usually requires supporting people who are eager for a chance to try turning their ideas into better ways of operating. D) making sure that would-be champions of change do not pursue maverick ideas that would be disruptive to the organization or troublesome to implement. E) empowering a cadre of culture-change champions to promote constant change and adaptation as a cultural norm.

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C) usually requires supporting people who are eager for a chance to try turning their ideas into better ways of operating.

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Which of the following is not a part of top management's job (especially the CEO) of leading the effort to operate the company's business in an ethically-principled fashion? A) The CEO and other senior executives must set an excellent example in their own ethical behavior and demonstrating integrity in their actions and decisions. B) The company's CEO should strongly encourage board members to develop a social responsibility strategy for the company to pursue. C) The CEO and those around the CEO must visibly and frequent declare unequivocal support of the company's ethics code and take an uncompromising stand on expecting all company personnel to conduct themselves in an ethical fashion at all times. D) The CEO and other senior executives must be prepared to make the hard call by removing people from key positions or terminating them when they are guilty of ethics violations and by reprimanding those who are lax in monitoring and enforcing ethics compliance. E) Top management must insist that company personnel be educated about what is ethical and what is not

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B) The company's CEO should strongly encourage board members to develop a social responsibility strategy for the company to pursue.

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A company's corporate culture is best defined and identified by A. the strategy and business model that a company has adopted. B. the character of a company's internal work climate and personality—as shaped by the company's core values, business principles, traditions, ingrained behaviors of "how we do things around here," and style of operating. C. its statement of core values and its code of ethics. D. its internal politics. E. the traditions that company executives are committed to maintaining.

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B. the character of a company's internal work climate and personality—as shaped by the company's core values, business principles, traditions, ingrained behaviors of "how we do things around here," and style of operating.

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The character of a company's corporate culture is a product of A. the core values and business principles that management preaches and practices. B. its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company's values, business practices, and traditions. C. the company's approach to people management and the "chemistry" and "personality" that permeates its work environment. D. the work practices and behaviors that define "how we do things around here." E. All of these.

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E. All of these.

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Which one of the following is not a fundamental part of a company's culture? A. The work practices and behaviors that define "how we do things around here" B. The company's standards of what is ethically acceptable and what is not, along with the "chemistry" and "personality" that permeates its work environment C. The core values and business principles that management preaches and practices D. The company's strategic vision, strategic intent, and strategy E. The legends and stories that people repeat to illustrate and reinforce the company's core values, traditions, and business practices

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D. The company's strategic vision, strategic intent, and strategy

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A company's culture is in part defined and identified by A. a company's internal work climate and personality—as shaped by its core values, work practices, traditions, and ingrained behaviors that define "how we do things around here." B. whether it employs a low-cost provider, best-cost provider, differentiation or focused strategy. C. whether decision-making is centralized or decentralized and whether it is a single-business company or a diversified company. D. how strongly its strategic vision is linked to the company's core values. E. whether it is a well-known industry leader, an up-and-coming company that is gaining market share, a middle-of-the-pack company unlikely to move up in the industry ranks, or an industry also-ran that may or may not survive.

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A. a company's internal work climate and personality—as shaped by its core values, work practices, traditions, and ingrained behaviors that define "how we do things around here."

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A company's culture is not manifested in which one of the following? A. Its approaches to people management and problem-solving and in the "chemistry" and "personality" that permeates the work environment. B. Its revered traditions and the stories that get told over and over to illustrate the importance of certain values. C. The peer pressures that exist to do things in particular ways and conform to expected norms. D The company's approach to people management and its official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel. E. Its strategic vision, strategic intent, and strategy.

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E. Its strategic vision, strategic intent, and strategy.

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Which one of the following is not something to look for in identifying a company's culture? A. The spirit and character that pervades the work climate B. Its resource strengths, core competencies, and competitive capabilities C. The company's revered traditions and oft-repeated stories about "heroic acts" and "how we do things around here" D. The company's approach to people management and the official policies, procedures, and operating practices that paint the white lines for the behavior of company personnel E. The values, business principles, and ethical standards that management preaches and practices

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B. Its resource strengths, core competencies, and competitive capabilities

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Which one of the following is something to look for in identifying a company's culture? A. The spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices B. The company's track record in meeting or beating its financial and strategic performance targets C. The make-up of the company's value chain D. Its strategic intent and competitive strategy E. Its resource strengths, core competencies, and competitive capabilities

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A. The spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practices

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A company's culture is typically grounded in and shaped by A. its core competencies and competitive capabilities. B. its long-term strategic success or lack thereof. C. the degree to which top management is committed to achieving market leadership. D. its core values and the bar it sets for ethical standards. E. the company's strategic intent and its reward system.

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D. its core values and the bar it sets for ethical standards.

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A company's values statement and code of ethics A. communicate expectations of how employees should conduct themselves in the workplace. B. helps prevent it from coming across to customers and the general public as greedy. C. serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical. D. are the most important factors determining its reputation with customers, suppliers, employees, shareholders, and society at large. E. should always be made a prominent and visible part of the company's strategic intent and strategy.

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A. communicate expectations of how employees should conduct themselves in the workplace.

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At companies where executives believe in the merits of practicing the values and ethical standards that have been espoused A. the executives have usually personally written the statement of core values and the code of ethics. B. the company's pursuit of higher profits is tempered, so that the company will not come across to customers and the general public as greedy. C. the company's chances for strategic success and market leadership are substantially reduced because company personnel are hesitant to engage in business practices that are unethical. D. the stated core values and ethical principles are the cornerstones of the corporate culture. E. the core values and ethical standards are made a prominent and visible part of the company's strategic intent and strategy.

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D. the stated core values and ethical principles are the cornerstones of the corporate culture.

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A corporate culture founded on ethical business principles and socially approved values A. virtually guarantees that a company will be (or soon become) the acknowledged industry leader because of the ethical and socially approved manner in which its business is being conducted. B. doesn't necessarily impact a company's long-term strategic success favorably or unfavorably. C. does more to detract from a company's chances for strategic success and market leadership than to help it. D. is a positive force underlying a company's long-term success and reduces the likelihood of reputation-damaging behavior on the part of a company's employees. E. is seldom more than window-dressing and is generally regarded by customers, suppliers, employees, shareholders, and society at large as nothing more than good public relations.

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D. is a positive force underlying a company's long-term success and reduces the likelihood of reputation-damaging behavior on the part of a company's employees.

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The two culture-building roles of a company's stated values and ethical standards are to A. communicate the company's good intentions and establish a corporate conscience. B. confirm the integrity of company personnel and signal the above-board nature of the company's business principles and operating methods. C. steer company personnel toward doing the right thing and convince outsiders that the company is socially responsible. D. help create a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and to signal employees that they are to display the company's core values in their actions and uphold the company's ethical standards. E. provide a basis for designing culture-supportive incentive compensation plans.

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D. help create a work climate where company personnel share common and strongly held convictions about how the company's business is to be conducted and to signal employees that they are to display the company's core values in their actions and uphold the company's ethical standards.

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Codes of ethics and statements of core values A. are the single most effective means of enforcing ethical behavior and cultural norms, provided they are written down and every employee is given a copy. B. serve as cornerstones of the corporate culture at companies where executives are truly committed to practicing the values and ethical standards that have been espoused. C. are the best benchmarks for judging whether the corporate culture is deeply planted or not. D. need to be personally written by the CEO in order to be taken seriously by employees. E. should always be given top priority emphasis in every employee training program a company conducts.

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B. serve as cornerstones of the corporate culture at companies where executives are truly committed to practicing the values and ethical standards that have been espoused.

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Which of the following topics would least likely be contained in a company's statement of its core values? A. A commitment to having fun and creating a fun work environment B. A commitment to excellence and results C. Mandating full compliance with all laws and regulations D. Exhibiting such qualities as integrity, fairness, trustworthiness, pride of workmanship, Golden Rule behavior, respect for co-workers, and ethical behavior E. Exhibiting teamwork and cooperative attitudes

answer

C. Mandating full compliance with all laws and regulations

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Which of the following topics would least likely be contained in a company's code of ethics? A. Prohibiting giving or accepting bribes, kickbacks, or gifts B. Expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest C. Not dealing with suppliers that employ child labor or engage in other unsavory practices D. Committing to a no-layoff policy and to adequate funding of employee retirement programs E. Avoiding use of company assets, resources, and property for personal or other inappropriate purposes

answer

D. Committing to a no-layoff policy and to adequate funding of employee retirement programs

question

A company's stated core values and ethical principles A. are important because of their role in ensuring that company executives will not engage in unethical behavior or behave in a manner that is contrary to the company's core values. B. are typically tightly linked to its strategic vision and strategy. C. are the best indicators of a company's social responsibility strategy. D. help create a work climate where company personnel share common and strongly-held convictions about how the company's business is to be conducted and signal employees that they are expected to display the core values in their actions and behaviors and uphold the company's ethical standards. E. are strictly enforced in strong culture companies and weakly enforced in weak culture companies.

answer

D. help create a work climate where company personnel share common and strongly-held convictions about how the company's business is to be conducted and signal employees that they are expected to display the core values in their actions and behaviors and uphold the company's ethical standards.

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Which of the following is not a technique that companies employ to hammer in and ingrain core values and ethical standards? A. Incorporating the statement of values and the code of ethics into orientation programs for new employees and training courses for managers and employees B. Making the display of core values and ethical principles a big factor in evaluating each person's job performance C. Encouraging everyone to use their influence in helping enforce observance of core values and ethical standards D. Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles E. Downplaying ethics enforcement procedures

answer

E. Downplaying ethics enforcement procedures

question

To deeply ingrain core values and ethical standards, a company must A. provide every employee with a copy of the company's statement of core values and code of ethics. B. turn the espoused core values and ethical standards into strictly enforced cultural norms. C. encourage company personnel to observe the core values and ethical standards. D. give big pay raises and bonuses to individuals and groups who display the company's core values and observe its ethical standards. E. fire employees who do not live up to the core values or who are found guilty of violating the code of ethics.

answer

B. turn the espoused core values and ethical standards into strictly enforced cultural norms.

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Which of the following is not an integral part of transforming core values and ethical standards into cultural norms? A. Instituting procedures for enforcing ethical standards B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values C. Screening out job applicants who do not exhibit compatible character traits D. Periodically having ceremonial occasions to recognize individuals and groups who display the values and ethical principles E. Having senior executives frequently reiterate the importance and role of company values and ethical principles at company events and internal communications to employees

answer

B. Immediately dismissing any employee caught violating the company's code of ethics or disregarding core values

question

Which of the following is not one of the positive impacts that a company's stated values and ethical standards have on its corporate culture? A. Communicating the company's good intentions B. Validating the integrity and above-board nature of the company's business principles and operating methods C. Steering company personnel toward both doing things right and doing the right thing D. Establishing a corporate conscience E. None of these.

answer

E. None of these.

question

Frequently, a significant part of a company's culture is captured in A. the company's strategic vision and strategic intent. B. the stories that get told over and over again to illustrate to newcomers the importance of certain values and the depth of commitment that various company personnel have displayed. C. how much stretch is built into the company's financial and strategic performance targets. D. the vigor and enthusiasm with which it engages in benchmarking and seeks out best practices. E. the company's track record in taking market share away from rivals.

answer

B. the stories that get told over and over again to illustrate to newcomers the importance of certain values and the depth of commitment that various company personnel have displayed.

question

Once established, company cultures can be perpetuated by A. systematic indoctrination of new members in the culture's fundamentals, frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. B. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel. C. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision. D. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts. E. making cultural values and beliefs the centerpiece of the company's competitive strategy.

answer

A. systematic indoctrination of new members in the culture's fundamentals, frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.

question

Which one of the following is not particularly helpful in perpetuating a company's culture? A. Systematic indoctrination of new members in the culture's fundamentals. B. Frequent reiteration of core values by senior managers and group members. C. Visibly rewarding those who display cultural norms and penalizing those who don't. D. Maintaining a consistent strategic vision and strategic intent over time. E. Telling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors.

answer

D. Maintaining a consistent strategic vision and strategic intent over time.

question

Which one of the following statements about a company's culture is false? A. The more new employees a company is hiring the more important it becomes to screen job applicants every bit as much for how well their values, beliefs, and personalities match up with the culture as for their technical skills and experience. B. The longer people stay at an organization, the more that they come to embrace and mirror the corporate culture—their values and beliefs tend to be molded by mentors, fellow workers, company training programs, and the reward structure. C. A company's culture, once established, tends to remain stable and entrenched over time. D. Typically, key elements of the culture originate with a founder or certain strong leaders who articulated them as a set of business principles, company policies, operating approaches, and ways of dealing with employees, customers, vendors, shareholders, and local communities where the company has operations. E. Company cultures can be perpetuated by the telling and retelling of company legends, by regular ceremonies honoring members who display desired cultural behaviors, and by visibly rewarding those who display cultural norms and penalizing those who don't.

answer

C. A company's culture, once established, tends to remain stable and entrenched over time.

question

Companies, especially ones with multinational operations and/or newly acquired businesses, typically have A. strong multiple cultures (or subcultures) rather than a single culture. B. multiple cultures (or subcultures) rather than a single culture. C. weak cultures. D. adaptive cultures. E. low performance cultures.

answer

B. multiple cultures (or subcultures) rather than a single culture.

question

The hallmark of a strong-culture company is A. strictly enforced policies and procedures. B. a strongly entrenched competitive strategy. C. the dominating presence of certain deeply-rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace. D. decentralized decision-making and empowered employees. E. a deep commitment to benchmarking, best practices, and operating excellence.

answer

C. the dominating presence of certain deeply-rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace.

question

In a strong culture company, A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out. B. there is wide support for high ethical standards among both managers and employees. C. a company has more strategy flexibility because it can change its strategy and be confident that the culture will welcome the strategy changes and be an ally in implementing whatever changes are called for. D. there is little room for employee empowerment, because independent-thinking empowered employees may well make decisions or engage in actions that weaken the culture. E. management insists that official policies and procedures be followed religiously.

answer

A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out.

question

The characteristics of a strong culture company include A. deeply-rooted values and operating approaches that "regulate" the conduct of a company's business and the climate of its workplace. B. a strong managerial commitment to display company values and principles in their own actions and behavior. C. dedicated efforts on the part of management to communicating values and business principles to organization members and explaining how they relate to the company's business environment. D. using core values and ingrained business principles as guides in making decisions. E. All of these.

answer

E. All of these.

question

Which of the following contribute to the emergence and sustainability of a strong culture? A. Senior executives that walk the talk of high ethical standards B. A strong emphasis on developing innovative core competencies and competitive capabilities C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision-making and strict enforcement of company policies E. A longstanding commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and procedures

answer

C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms

question

Which of the following is not a factor in contributing to the emergence and sustainability of a strong culture? A. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success B. A founder or strong leader who establishes values, principles, and practices that are consistent and sensible in light of customer needs, competitive conditions, and strategic requirements C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision-making, strict enforcement of company policies, and a strong commitment to being the market share leader E. A genuine concern for the well-being of the organization's three biggest constituencies—customers, employees, and shareholders

answer

D. Centralized decision-making, strict enforcement of company policies, and a strong commitment to being the market share leader

question

Which of the following statements about a strong-culture company is false? A. In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices get squashed. B. In strong culture companies, senior managers make a point of reiterating key principles and core values to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behavior and they insist that company values and business principles be reflected in the decisions and actions taken by all company personnel. C. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture. D. Centralized decision-making, strict enforcement of company policies, diligent pursuit of a distinctive competence, and a bold strategic intent are the hallmarks of a strong-culture company. E. In a strong-culture company, values and behavioral norms are like crabgrass: deeply rooted and hard to weed out.

answer

D. Centralized decision-making, strict enforcement of company policies, diligent pursuit of a distinctive competence, and a bold strategic intent are the hallmarks of a strong-culture company.

question

Which one of the following is a typical characteristic of a weak company culture? A. Very little cultural support for the company's strategic vision and strategy B. No code of ethics and deep hostility to change and to people who champion new ways of doing things C. A complicated value chain that acts to create multiple subcultures D. A lack of values and principles that are consistently preached or widely shared E. No strong sense of teamwork

answer

D. A lack of values and principles that are consistently preached or widely shared

question

Which one of the following is not a typical characteristic of a weak company culture? A. A lack of values and principles that are consistently preached or widely shared. B. A tendency among employees to view their jobs as a just a way of making a living. C. A complicated value chain and a very diverse set of core competencies—both of which act to create multiple subcultures. D. Few widely-revered traditions and few culture-induced norms. E. No strong employee allegiance to what the company stands for or to operating the business in well-defined ways.

answer

C. A complicated value chain and a very diverse set of core competencies—both of which act to create multiple subcultures.

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Which one of the following statements about a weak company culture is true? A. In a weak culture company, there is virtually no employee support for the company's strategic vision and strategy. B. Weak culture companies do not usually have a code of ethics and have little regard for high ethical standards. C. Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy. D. Weak culture companies are fairly receptive to change and to people who champion new ways of doing things. E. In a weak culture company, there is usually little teamwork, a dearth of intellectual capital, and inattention to building core competencies.

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C. Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy.

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A work environment where the culture is well-matched to the conditions and behaviors requisite for good strategy execution is a valuable managerial ally because A. there is much less risk of embarrassing ethical violations. B. it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressures from co-workers to conform to culturally acceptable norms. C. there is reduced need to incorporate negative motivational practices and punitive-type incentives into the reward structure and in the company's approach to people management. D. there is reduced need to employ benchmarking, best practice programs, reengineering, Six Sigma, and TQM to achieve competitive advantage. E. the culture can then be readily incorporated into the company's strategic vision and facilitate the achievement of stretch objectives.

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B. it provides company personnel with clear guidance regarding "how we do things around here" and produces significant peer pressures from co-workers to conform to culturally acceptable norms.

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Which of the following is a benefit of closely aligning the corporate culture with the requirements for proficient strategy execution? A. A good strategy-culture alignment makes it possible to establish a much bolder strategic vision and strategic intent. B. A good strategy-culture alignment enhances a company's cost competitiveness. C. A tight strategy-culture fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution. D. A tight strategy-culture alignment enhances the creation of core competencies and distinctive competencies. E. A tight strategy-culture alignment makes it easier to change a company's culture over time—as a company's strategy evolves, the culture automatically evolves also.

answer

C. A tight strategy-culture fit steers company personnel into displaying behaviors and adopting operating practices that promote good strategy execution.

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Which of the following statements about the match between a company's culture and its strategy is false? A. When a company's present work climate promotes attitudes and behaviors that are well suited to first-rate strategy execution, its culture functions as a valuable ally in the strategy execution process. B. A deeply embedded culture tightly matched to the strategy aids the cause of competent strategy execution by steering company personnel to culturally-approved behaviors and work practices and thus making it far simpler to root out operating practices that are a misfit. C. It is in management's best interest to dedicate considerable effort to embedding a corporate culture that encourages behaviors and work practices conducive to good strategy execution. D. A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage. E. When a company's culture is grounded in many of the needed strategy-executing behaviors, employees feel genuinely better about their jobs and what the company is trying to accomplish; as a consequence, greater numbers of company personnel exert their best efforts to execute the strategy and achieve performance targets.

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D. A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage.

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The hallmarks of a high performance corporate culture include 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, 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.

answer

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.

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Which one of the following statements about a high performance culture is false? A. Results-oriented, high performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets. B. High performance cultures often have a low regard for high ethical standards, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace. C. The challenge in creating a high performance culture is to inspire high loyalty and dedication on the part of employees, such that they are both energized and preoccupied with putting forth their very best efforts to do things right and be unusually productive. D. In a high performance culture, the clear and unyielding expectation is that all company personnel, from senior executives to front-line employees will display high performance behaviors and a passion for making the company successful. E. In high performance cultures, there's a strong sense of involvement on the part of company personnel and emphasis on individual initiative and creativity.

answer

B. High performance cultures often have a low regard for high ethical standards, a strong preference for high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace.

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Which one of the following statements about a high performance culture is true? A. Results-oriented, high performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets. B. High performance cultures often have a low regard for high ethical standards (because some disregard for ethics is a normal part of meeting or beating performance targets). C. The challenge in creating a high performance culture is to come up with a strategic vision and strategy that wins enthusiastic support from most all company personnel. D. In a high performance culture, the clear and unyielding expectation is that all company personnel will strictly follow company policies and procedures. E. In high performance cultures, there's strong managerial commitment to paying big bonuses and granting generous stock options.

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A. Results-oriented, high performance cultures are permeated with a spirit of achievement and have a good track record in meeting or beating performance targets.

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The hallmark of an adaptive corporate culture is A. a shared willingness to adapt core values to fit the changing requirements of an evolving strategy. B. a conservative strategy, prudent risk-taking, and strong peer pressures to observe cultural norms. C. willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. D. a commitment to the types of core values and ethical standards that make a company a great place to work. E. a strong preference for performance-based compensation systems—especially the payment of bonuses and stock options.

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C. willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies.

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In adaptive corporate cultures, A. the prevailing view is that the best way of looking out for the interests of employees is to change core values and cultural norms in whatever ways are needed to fit the changing requirements of an evolving strategy. B. company personnel are amenable to changing policies and operating practices as long as the core elements of the company's strategic vision and strategy remain intact. C. members are willing to embrace a proactive approach to trying new ideas, altering operating practices, and changing pieces of the strategy provided it doesn't imperil their job security, entail cuts in compensation, or require different work practices. D. there's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders. E. there is little need for policies and procedures because group members willingly accept experimentation and innovation.

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D. there's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders.

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Which of the following statements about adaptive corporate cultures is false? 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. Company personnel share a feeling of confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices. 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) demonstrates genuine care for the well-being of all key constituencies and (2) tries to satisfy all their legitimate interests simultaneously.

answer

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.

question

Which of the following is not a common trait of an unhealthy company culture? A. A politicized internal environment and empire-building managers who jealously guard their turf B. Hostility to change and a wariness of people who champion new ways of doing things C. An aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas D. An aversion to incentive compensation, failure to recruit the best and brightest employees, subpar support for employee training, overemphasis on working in teams, and low ethical standards E. Overzealous pursuit of wealth and status on the part of key executives

answer

D. An aversion to incentive compensation, failure to recruit the best and brightest employees, subpar support for employee training, overemphasis on working in teams, and low ethical standards

question

Unhealthy company cultures typically have such characteristics as A. tight budget controls, overly strict enforcement of longstanding polices and procedures, and low ethical standards. B. a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability. C. a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas. D. overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures. E. too little emphasis on innovation, a strong preference for hiring managers from outside the company, very few core values and traditions, and a weakly enforced code of ethics.

answer

C. a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas.

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Which of the following is not an example of an unhealthy company culture? A Insular inwardly-focused cultures B. Change-resistant cultures C. Unethical and greed-driven cultures D. Politicized cultures E. Hyper-adaptive cultures

answer

E. Hyper-adaptive cultures

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Companies with change-resistant cultures A. are typically opposed to performance-based incentive compensation and employee empowerment. B. are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, are frequently lax when it comes to product innovation and continuous improvement in performing value chain activities, and prefer following rather than leading market change. C. are often overly gung-ho about looking outside the company for best practices, new managerial approaches, and innovative ideas. D. tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of strategic vision and avoids risky business strategies. E. are typically run by amoral managers who have little regard for high ethical standards.

answer

B. are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, are frequently lax when it comes to product innovation and continuous improvement in performing value chain activities, and prefer following rather than leading market change.

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Changing a problem culture A. is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things. B. is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted. C. is best done by selecting a team of key employees to lead the culture change effort. D. requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture. E. can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

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A. is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.

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The single most visible factor that distinguishes successful culture-change efforts from failed attempts is A. forceful management actions to empower employees to adopt new operating practices. B. competent leadership at the top. C. de-layering the management hierarchy. D. developing a new values statement that inspires company personnel to put forth their best efforts to achieve performance targets. E. convincing employees that top management is genuinely committed to high ethical standards and the exercise of corporate social responsibility.

answer

B. competent leadership at the top.

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The place for management to begin in trying to change a problem culture is A. identifying facets of the present culture that are obstacles to operating excellence and then selling company personnel on a new set of behaviors and work practices. B. by spending heavily on programs to train employees in the ways and beliefs of the new culture to be implanted. C. to visibly praise and reward people who exhibit traits and behaviors that undermine the existing culture. D. writing a new values statement and describing in highly motivating terms the kind of culture that is needed. E. to institute incentive compensation programs that generously reward employees for adopting best practices.

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A. identifying facets of the present culture that are obstacles to operating excellence and then selling company personnel on a new set of behaviors and work practices.

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When trying to change a problem culture, management should undertake such steps as A. selecting a team of key employees to lead the culture change effort and design a plan for cultural change. B. identifying which aspects of the present culture are supportive of good strategy execution and which ones are not and then selling the work force on what new actions, behaviors, and work practices are needed to improve performance. C. drawing up an action plan to change the present culture and then persuading company personnel why this plan of action is good and will be successful. D. conducting an employee survey to determine the organization's cultural norms and what company personnel like and dislike about the current culture. E. employing a consultant with expertise in culture change and following his/her advice on how to proceed.

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B. identifying which aspects of the present culture are supportive of good strategy execution and which ones are not and then selling the work force on what new actions, behaviors, and work practices are needed to improve performance.

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In moving to alter a problem culture, management should A. identify which aspects of the present culture are supportive of good strategy execution and which ones are not. B. specify what new actions, behaviors, and work practices should be prominent in the "new" culture. C. talk openly about the problems of the present culture and how new behaviors will improve performance. D. employ visible, forceful actions—both substantive and symbolic—to ingrain a new set of behaviors, practices and cultural norms. E. All of these.

answer

E. All of these.

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Which one of the following is not an appropriate step management can take to change a problem culture? A. Identifying which aspects of the present culture are supportive of good strategy execution and which ones are not B. Specifying what new actions, behaviors, and work practices should be prominent in the "new" culture C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture D. Talking openly about the problems of the present culture and how new behaviors will improve performance E. Employing visible, forceful actions—both substantive and symbolic—to ingrain a new set of behaviors, practices and cultural norms

answer

C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture

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The menu of actions management can take to change problem culture does not include which one of the following? A. Making a compelling case for why the company's new strategic direction and culture-remodeling efforts are in the organization's best interests and why company personnel should wholeheartedly join the effort to doing things somewhat differently. B. Replacing senior executives who are strongly identified with the old culture and who may be stonewalling needed organizational and cultural changes. C. Promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior. D. Revising policies and procedures in ways that will help drive cultural change. E. Shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.

answer

E. Shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.

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Which one of the following is a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A. Identifying aspects of the present culture that pose problems. B. Revising policies and procedures in ways that will help drive cultural change and replacing senior executives who are strongly identified with the old culture and may be stonewalling needed changes. C. Empowering employees to adopt whatever new work practices they believe will be an improvement. D. Making a concerted effort to turn the company's core competencies into distinctive competencies. E. Shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change.

answer

B. Revising policies and procedures in ways that will help drive cultural change and replacing senior executives who are strongly identified with the old culture and may be stonewalling needed changes.

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Which one of the following is not a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A. Promoting individuals who are known to possess the desired cultural traits, 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. Appointing outsiders with the desired cultural attributes to high-profile positions 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 and paying sizable bonuses to those employees who identify practices that the company ends up adopting 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

answer

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 and paying sizable bonuses to those employees who identify practices that the company ends up adopting

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Changing a problem culture to create better alignment with strategy generally does not involve A. replacing old-culture managers with new-breed managers. B. designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook. C. altering the company's strategic vision and/or its strategic and financial objectives. D. using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors. E. both symbolic and substantive actions by executives to implant new cultural behaviors.

answer

C. altering the company's strategic vision and/or its strategic and financial objectives.

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Which one of the following is not likely to be an effective management action to create a better strategy-culture fit and alter a problem culture? A. Citing why and how certain behavioral norms and work practices in the current culture pose obstacles to good execution of new strategic initiatives B. Explaining how certain new behaviors and work practices that are to be introduced and have important roles in the new culture will be more advantageous and produce better results C. Calling upon first-level supervisors and rank-and-file employees to identify cultural barriers to good strategy execution and then lead the cultural change effort D. Granting pay raises to individuals who step out front, lead the adoption of the desired work practices, display the new-style behaviors, and achieve pace-setting results E. Revising policies and procedures in ways that will help drive cultural change

answer

C. Calling upon first-level supervisors and rank-and-file employees to identify cultural barriers to good strategy execution and then lead the cultural change effort

question

The most important symbolic actions are those that top executives take to A. lead by example. B. lead by influence. C. follow by example. D. follow the majority. E. lead to the contrary.

answer

A. lead by example.

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When a company's culture is out of sync with what is needed for strategic success and good strategy execution, A. the strategy has to be changed to fit the culture as rapidly as possible. B. the company's strategic vision, strategic intent, and strategy have to be adjusted to better reflect ingrained core values and cultural norms. C. management needs to go on the offensive to reinterpret the culture and explain to company personnel why there really is good overall cultural fit with the strategy. D. the culture has to be changed to accommodate the requirements of good strategy execution as rapidly as can be managed. E. management must urge company to participate in an all-out effort to create a different portfolio of competencies and capabilities that will permit the strategy to be changed in ways that will fit the culture.

answer

D. the culture has to be changed to accommodate the requirements of good strategy execution as rapidly as can be managed.

question

Leading the drive for good strategy execution and operating excellence calls upon senior executives to A. be very personable, an effective communicator, and skilled in the empowerment of company personnel. B. be out front personally leading the implementation process and driving the pace of progress. C. delegate little to subordinates and, instead, personally exert a strong, highly visible influence on the company's approaches to strategy execution. D. be creative in establishing policies and procedures that will instill high standards of operating excellence. E. be charismatic, a decisive decision-maker, and make inspiring speeches at company events.

answer

B. be out front personally leading the implementation process and driving the pace of progress.

question

In leading the push for proficient strategy execution and operating excellence, the roles of top-level managers include A. Being out in the field, seeing how well operations are going. B. Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward. C. Gathering information firsthand and gauging the progress being made. D. Learning the obstacles in the path of good execution and clearing the way for progress. E. All of these

answer

E. All of these

question

) Which of the following is not one of the leadership roles that senior managers have to play in pushing for good strategy execution and operating excellence? A. Learning the obstacles in the path of good execution and clearing the way for progress. B. Being out in the field, seeing how well operations are going. C. Being out front personally leading the execution process and driving the pace of progress. D. Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed. E. Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.

answer

D. Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executed.

question

Which of the following techniques are utilized by leaders to stay informed on how well strategy execution process is progressing? A. Managing by walking around (MBWA). B. Managing business with action (MBWA). C. Multi-business warning actions (MBWA). D. Managers being well-advised (MBWA). E. None of these.

answer

A. Managing by walking around (MBWA).

question

Which of the following managerial practices are used to successfully lead the effort to foster a results-oriented, high-performance culture? A. Using empowerment to help create a fully engaged workforce. B. Making champions out of the people who spearhead new ideas and/or turn in winning performances. C. Celebrating individual, group, and company successes. D. Treating employees as valued partners in the drive for operating excellence and good business performance. E. All of these.

answer

E. All of these.

question

The leadership challenges that top executives face in making corrective adjustments when things are not going well include A. knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things. B. being able to discern whether to emphasize adjustments that will promote better achievement of strategic performance targets or whether to emphasize adjustments that will promote better achievement of financial performance targets. C. deciding when adjustments are needed and what adjustments to make. D. having the analytical skills to separate the problems due to a bad strategy from the problems due to bad strategy execution. E. deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives or that curtail the achievement of some of both.

answer

C. deciding when adjustments are needed and what adjustments to make.

question

Which of the following is an example of leadership actions or managerial practices taken to foster a results-oriented, high-performance culture? A. Treating employees as valued partners. B. Utilize people-management practices to build morale and foster pride. C. Setting stretch objectives and clearly communicating expectations for reaching targets. D. Using motivational techniques and compensation incentives to inspire employees. E. All of these.

answer

E. All of these.

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Which of the following is NOT an example of leadership actions or managerial practices taken to foster a results-oriented, high-performance culture? A. Treating employees as individuals with no regard for their rank or contributions. B. Building morale and fostering pride. C. Setting stretch objectives and clearly communicating expectations for reaching targets. D. Using motivational techniques and compensation incentives to inspire employees. E. None of these.

answer

A. Treating employees as individuals with no regard for their rank or contributions.

question

The task of top executives in making corrective adjustments includes A. knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture. B. being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments. C. deciding when adjustments are needed and what adjustments to make. D. deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly. E. deciding how to identify the problems that need fixing.

answer

C. deciding when adjustments are needed and what adjustments to make.

question

The corporate strategy process does NOT entail A. crafting, implementing and executing plans. B. fine-tuning and adjusting corporate vision and objectives. C. a continuous process of crafting and executing strategy to fit changing circumstances. D. recycling the linked stages of executing strategy. E. None of these.

answer

E. None of these.

question

Which of the following is the best test of good strategic leadership? A. Whether the company has a good strategy and business model B. Whether the enterprise is meeting or beating its performance targets C. Whether the strategy is being completely executed D. All of these E. None of these

answer

D. All of these

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Balanced Scorecard Approach Business Business Management Knowledge Management System

MGMT 425 Chapt 2 – Flashcards 99 terms

Julie Noel

99 terms

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MGMT 425 Chapt 2 – Flashcards

question

Which one of the following is not one of the five basic tasks of the strategy-making, strategy-executing process? A. Forming a strategic vision of where the company needs to head and what its future business make-up will be B. Setting objectives to convert the strategic vision into specific strategic and financial performance outcomes for the company to achieve C. Crafting a strategy to achieve the objectives and get the company where it wants to go D. Developing a profitable business model E. Implementing and executing the chosen strategy efficiently and effectively

answer

D. Developing a profitable business model

question

Which of the following is an integral part of the managerial process of crafting and executing strategy? A. Developing a proven business model B. Deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage C. Setting objectives and using them as yardsticks for measuring the company's performance and progress D. Communicating the company's values and code of conduct to all employees E. Deciding on the company's strategic intent

answer

C. Setting objectives and using them as yardsticks for measuring the company's performance and progress

question

Which of the following are integral parts of the managerial process of crafting and executing strategy? A. Developing a strategic vision, setting objectives, and crafting a strategy B. Developing a proven business model, deciding on the company's strategic intent, and crafting a strategy C. Setting objectives, crafting a strategy, implementing and executing the chosen strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage D. Coming up with a statement of the company's mission and purpose, setting objectives, choosing what business approaches to employ, selecting a business model, and monitoring developments E. Deciding on the company's strategic intent, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ

answer

A. Developing a strategic vision, setting objectives, and crafting a strategy

question

The strategy-making, strategy-executing process A. is usually delegated to members of a company's board of directors so as not to infringe on the time of busy executives. B. includes establishing a company's mission, developing a business model aimed at making the company an industry leader, and crafting a strategy to implement and execute the business model. C. embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities. D. is principally concerned with sizing up an organization's internal and external situation, so as to be prepared for the challenge of developing a sound business model. E. is primarily the responsibility of top executives and the board of directors; very few managers below this level are involved.

answer

C. embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.

question

A company's strategic vision concerns A. "who we are and what we do." B. why the company does certain things in trying to please its customers. C. management's storyline of how it intends to make a profit with the chosen strategy. D. a company's directional path and future product-market-customer-technology focus. E. what future actions the enterprise will likely undertake to outmaneuver rivals and achieve a sustainable competitive advantage.

answer

D. a company's directional path and future product-market-customer-technology focus.

question

A company's strategic vision A. is management's story line for how it plans to implement and execute a profitable business model. B. sets forth what business the company is presently in and why it uses particular operating practices in trying to please customers. C. delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense. D. defines "who we are and what we do." E. spells out a company's strategic intent, its strategic and financial objectives, and the business approaches and operating practices that will underpin its efforts to achieve sustainable competitive advantage.

answer

C. delineates management's aspirations for the business, providing a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense.

question

Developing a strategic vision for a company entails A. prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense. B. describing its business model and the kind of value that it is trying to deliver to customers. C. putting together a story line of why the business will be a moneymaker. D. describing "who we are and what we do." E. coming up with a long-term plan for outcompeting rivals and achieving a competitive advantage.

answer

A. prescribing a strategic direction for the company to pursue and a rationale for why this strategic path makes good business sense.

question

The managerial task of developing a strategic vision for a company A. concerns deciding what approach the company should take to implement and execute its business model. B. entails coming up with a fairly specific answer to "who are we, what do we do, and why are we here?" C. is chiefly concerned with addressing what a company needs to do to successfully outcompete rivals in the marketplace. D. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense. E. entails coming up with a persuasive storyline of how the company intends to make money.

answer

D. involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

question

Which one of the following is not an accurate attribute of an organization's strategic vision? A. Providing a panoramic view of "where we are going" B. Outlining how the company intends to implement and execute its business model C. Pointing an organization in a particular direction and charting a strategic path for it to follow D. Helping mold an organization's character and identity E. Describing the company's future product-market-customer-technology focus

answer

B. Outlining how the company intends to implement and execute its business model

question

Management's strategic vision for an organization A. charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense. B. describes in fairly specific terms the organization's strategic intent, strategic objectives, and strategy. C. spells out how the company will become a big moneymaker and boost shareholder value. D. addresses the critical issue of "why our business model needs to change and how we plan to change it." E. spells out the organization's strategic intent and the actions and moves that will be undertaken to achieve it.

answer

A. charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense.

question

What a company's top executives are saying about where the company is headed and about what the company's future product-customer-market-technology will be A. indicates what kind of business model the company is going to have in the future. B. constitutes their strategic vision for the company. C. signals what the firm's strategy will be. D. serves to define the company's mission. E. indicates what the company's long-term strategic plan is.

answer

B. constitutes their strategic vision for the company.

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One of the important benefits of a well-conceived and well-stated strategic vision is to A. clearly delineate how the company's business model will be implemented and executed. B. clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction. C. set forth the firm's strategic objectives in clear and fairly precise terms. D. help create a "balanced scorecard" approach to objective-setting and not stretch the company's resources too thin across different products, technologies, and geographic markets. E. indicate what kind of sustainable competitive advantage the company will try to create in the course of becoming the industry leader.

answer

B. clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction.

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The defining characteristic of a well-conceived strategic vision is A. what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be." B. that it not stretch the company's resources too thin across different products, technologies, and geographic markets. C. clarity and specificity about "who we are, what we do, and why we are here." D. that it be flexible and in the mainstream. E. that it be within the realm of what the company can reasonably expect to achieve within 2-4 years.

answer

A. what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be."

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Which one of the following questions is not pertinent to company managers in thinking strategically about their company's directional path and developing a strategic vision? A. Is the outlook for the company promising if it continues with its present product-market-technology-customer focus? B. Are changing market and competitive conditions acting to enhance or weaken the company's prospects? C. What business approaches and operating practices should we consider in trying to implement and execute our business model? D. What are our ambitions for the company—what industry standing do we want the company to have? E. What, if any, new customer groups and/or geographic markets should the company get in position to serve?

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C. What business approaches and operating practices should we consider in trying to implement and execute our business model?

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Which one of the following questions is not something that company managers should consider in choosing to pursue one strategic course or directional path versus another? A. Are changing market and competitive conditions acting to enhance or weaken the company's business outlook? B. Is the company stretching its resources too thinly by trying to compete in too many markets or segments, some of which are unprofitable? C. Will our present business generate sufficient growth and profitability in the years ahead to please shareholders? D. What emerging market opportunities should the company pursue and which ones should not be pursued? E. Do we have a better business model than key rivals?

answer

E. Do we have a better business model than key rivals?

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Which of the following are characteristics of an effectively-worded strategic vision statement? A. Balanced, responsible, and rational B. Challenging, competitive, and "set in concrete" C. Graphic, directional, and focused D. Realistic, customer-focused, and market-driven E. Achievable, profitable, and ethical

answer

C. Graphic, directional, and focused

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Which one of the following is not a characteristic of an effectively-worded strategic vision statement? A. Directional (is forward-looking, describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future) B. Easy to communicate (is explainable in 10-15 minutes, can be reduced to a memorable slogan) C. Graphic (paints a picture of the kind of company management is trying to create and the market position(s) the company is striving to stake out) D. Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support) E. Focused (is specific enough to provide guidance to managers in making decisions and allocating resources)

answer

D. Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support)

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Which of the following is not a common shortcoming of company vision statements? A. Vague or incomplete—short on specifics B. Too narrow—doesn't leave enough room for future growth C. Bland or uninspiring D. Not distinctive—could apply to most any company (or at least several others in the same industry) E. Too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers)

answer

B. Too narrow—doesn't leave enough room for future growth

question

Which of the following are common shortcomings of company vision statements? A. Too specific, too inflexible, and can't be achieved in 5 years B. Unrealistic, unconventional, and un-businesslike C. Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives D. Too broad, too narrow, and too risky E. Not customer-driven, out-of-step with emerging technological trends, and too ambitious

answer

C. Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives

question

A company's mission statement typically addresses which of the following questions? A. "Who are we and what do we do?" B. "What objectives and level of performance do we want to achieve?" C. "Where are we going and what should our strategy be?" D. "What approach should we take to achieve sustainable competitive advantage?" E. "What business model should we employ to achieve our objectives and our vision?"

answer

A. "Who are we and what do we do?"

question

The difference between the concept of a company mission statement and the concept of a strategic vision is that A. a mission concerns what to do to achieve short-run objectives and a strategic vision concerns what to do to achieve long-run performance targets. B. the mission is to make a profit, whereas a strategic vision concerns what business model to employ in striving to make a profit. C. a mission statement deals with what to accomplish on behalf of shareholders and a strategic vision concerns what to accomplish on behalf of customers. D. a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus. E. a mission statement deals with "where we are headed " whereas a strategic vision provides the critical answer to "how will we get there?"

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D. a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is the company's long term direction and future product-market-customer-technology focus.

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The difference between a company's mission statement and the concept of a strategic vision is that A. the mission explains why it is essential to make a profit, whereas the strategic vision explains how the company will be a moneymaker. B. a mission statement typically concerns a company's present business scope and purpose whereas a strategic vision sets forth "where we are going and why." C. a mission deals with how to please customers whereas a strategic vision deals with how to please shareholders. D. a mission statement deals with "where we are headed " whereas a strategic vision provides the critical answer to "how will we get there?" E. a mission statement addresses "how we are trying to make a profit today" while a strategic vision concerns "how will we make money in the markets of tomorrow?"

answer

B. a mission statement typically concerns a company's present business scope and purpose whereas a strategic vision sets forth "where we are going and why."

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A company's values concern A. whether and to what extent it intends to operate in an ethical and socially responsible manner. B. how aggressively it will seek to maximize profits and enforce high ethical standards. C. the beliefs and operating principles built into the company's "balanced scorecard" for measuring performance. D. the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and strategy. E. the beliefs, principles, and ethical standards that are incorporated into the company's strategic intent and business model.

answer

D. the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and strategy.

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A company's values relate to such things as A. how it will balance its pursuit of financial objectives against the pursuit of its strategic objectives. B. how it will balance the pursuit of its business purpose/mission against the pursuit of its strategic vision. C. fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship. D. whether it will emphasize stock price appreciation or higher dividend payments to shareholders, and whether it will put more emphasis on the achievement of short-term performance targets or long-range performance targets. E. All of the above.

answer

C. fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship.

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Top management efforts to communicate the strategic vision to company personnel A. ought to be done in writing rather than orally so as to leave no room for company personnel to misinterpret what the strategic vision really is. B. should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction. C. tends to be more effective when top management avoids trying to capture the essence of the strategic vision in a catchy slogan. D. is most efficiently and effectively done by posting the strategic vision prominently on the company's Web site and encouraging employees to read it. E. should be attempted only after management has explained the company's strategic intent, strategy, and business model to company personnel.

answer

B. should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction.

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Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of A. inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction. B. helping company personnel understand why "making a profit" is so important. C. making it easier for top executives to set stretch objectives. D. helping lower-level managers and employees better understand the company's business model. E. All of these.

answer

A. inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction.

question

The task of effectively communicating the strategic vision is made easier by A. having a simple strategy that is easy for company personnel to understand. B. combining the strategic vision and the company's values statement into a single document. C. capturing the essence of the vision in a catchy slogan or brief phrase and then using it repeatedly as a reminder of "where we are going and why." D. waiting until the company achieves its mission to tell company personnel about the strategic vision. E. combining the strategic vision and the mission statement into a single statement of overall business purpose.

answer

C. capturing the essence of the vision in a catchy slogan or brief phrase and then using it repeatedly as a reminder of "where we are going and why."

question

The payoffs of a clear vision statement do not include A. reducing the risks of rudderless decision-making. B. helping the organization prepare for the future. C. greater ability to avoid strategic inflection points. D. helping to crystallize top management's own view about the firm's long-term direction. E. providing a tool for winning the support of organizational members for internal changes that will help make the vision a reality.

answer

C. greater ability to avoid strategic inflection points.

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The managerial purpose of setting objectives includes A. converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. B. using the objectives as yardsticks for tracking the company's progress and performance. C. challenging and helping stretch the organization to perform at its full potential and deliver the best possible results. D. pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. E. All of these.

answer

E. All of these.

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A company needs financial objectives A. to spur company personnel to help the company overtake key competitors on such important measures as net profit margins and return on investment. B. because adequate profitability and financial strength is critical to effective pursuit of its strategic vision, as well as to its long-term health and ultimate survival. C. to indicate to employees whether the emphasis should be on earnings per share or return on investment or return on assets or positive cash flow. D. to convince shareholders that top management is acting in their interests. E. to counterbalance its pursuit of strategic objectives and have a balanced scorecard for judging the caliber of its overall performance.

answer

B. because adequate profitability and financial strength is critical to effective pursuit of its strategic vision, as well as to its long-term health and ultimate survival.

question

Which of the following is the best example of a well-stated financial objective? A. Increase earnings per share by 15% annually. B. Gradually boost market share from 10% to 15% over the next several years. C. Achieve lower costs than any other industry competitor. D. Boost revenues by a percentage greater than the industry average. E. Maximize total company profits and return on investment.

answer

A. Increase earnings per share by 15% annually.

question

Which of the following is the best example of a well-stated strategic objective? A. Increase revenues by more than the industry average. B. Be among the top 5 five companies in the industry on customer service. C. Overtake key competitors on product quality within three years. D. Improve manufacturing performance by 5% within 12 months. E. Obtain 150 new customers during the current fiscal year.

answer

C. Overtake key competitors on product quality within three years.

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Strategic objectives A. are more essential in achieving a company's strategic vision than are financial objectives. B. relate to strengthening a company's overall business and competitive position. C. are more difficult to achieve and harder to measure than financial objectives. D. are generally less important than financial objectives. E. help managers track an organization's true progress better than do financial objectives.

answer

B. relate to strengthening a company's overall business and competitive position.

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A balanced scorecard for measuring company performance A. entails putting equal emphasis on financial and strategic objectives. B. entails putting balanced emphasis on profit and non-profit objectives. C. prevents the drive for achieving financial objectives from overwhelming the pursuit of strategic objectives. D. prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives. E. entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives.

answer

E. entails creating a set of objectives that is "balanced" in the sense of including both financial and strategic objectives.

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A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because A. it assists managers in putting roughly equal emphasis on short-term and long-term performance targets. B. it entails putting equal emphasis on good strategy execution and good business model execution. C. a balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities. D. financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance. E. it forces managers to put equal emphasis on financial and strategic objectives.

answer

D. financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance.

question

Perhaps the most reliable way for a company to improve its financial performance over time is to A. put 100% emphasis on the achievement of its short-term and long-term financial objectives. B. recognize that the achievement of strategic objectives fosters better long-term financial performance. C. substitute financial intent for strategic intent and judiciously concentrate on the mission of making a profit. D. not allocate any resources to the achievement of strategic objectives until it is very clear that the company can meet or beat its stretch financial performance targets. E. avoid use of the "balanced scorecard" philosophy since achievement of financial performance targets is obviously more important than achievement of strategic performance targets.

answer

B. recognize that the achievement of strategic objectives fosters better long-term financial performance.

question

A company that pursues and achieves strategic objectives A. is likely to weaken the achievement of its short-term and long-term financial objectives. B. believes that the company's financial performance is not as important as it really is. C. is generally not strongly focused on its true mission of making a profit. D. is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives. E. is likely to be a weak financial performer because diverting resources to the pursuit of strategic objectives takes away from the achievement of financial performance targets.

answer

D. is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives.

question

A company exhibits strategic intent when A. it adopts a strategic plan. B. it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. C. senior executives pursue their strategic vision. D. top management establishes a comprehensive set of strategic objectives. E. it pursues a particular competitive advantage.

answer

B. it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

question

Strategic intent refers to a situation where a company A. commits to using a particular business model to make money. B. decides to adopt a particular strategy. C. relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective. D. commits to pursuing stretch strategic objectives. E. changes its long-term direction and decides to pursue a newly-adopted strategic vision.

answer

C. relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

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A company with strategic intent A. is one that is going all-out to overcome the challenges of having encountered a strategic inflection point. B. is one that is putting much more emphasis on achieving its strategic objectives than its financial objectives. C. is one that has good alignment between its strategic objectives and its strategy. D. usually has an aggressive strategy and plan for growing its business. E. usually has an exceptionally bold and grandiose long-term objective—like becoming the dominant global market leader—and an unshakable commitment to concentrating its full resources and strategy on achieving that objective.

answer

E. usually has an exceptionally bold and grandiose long-term objective—like becoming the dominant global market leader—and an unshakable commitment to concentrating its full resources and strategy on achieving that objective.

question

Company objectives A. are needed only in those areas directly related to a company's short-term and long-term profitability. B. need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units. C. play the important role of establishing the direction in which it needs to be headed. D. are important because they help guide managers in deciding what the company's strategic intent should be. E. should be set in a manner that does not conflict with the performance targets of lower-level organizational units.

answer

B. need to be broken down into performance targets for each of its separate businesses, product lines, functional departments, and individual work units.

question

A company needs performance targets or objectives A. to help guide managers in deciding what strategic path to take in the event that a strategic inflection point is encountered. B. because they give the company clear-cut strategic intent. C. in order to unify the company's strategic vision and business model. D. for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units. E. in order to prevent lower-level organizational units from establishing their own objectives.

answer

D. for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.

question

The task of stitching together a strategy A. entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives. B. is primarily an exercise in deciding which of several freshly-emerging market opportunities to pursue. C. is mainly an exercise that should be dictated by what is comfortable to management from a risk perspective and what is acceptable in terms of capital requirements. D. requires trying to copy the strategies of industry leaders as closely as possible. E. is mainly an exercise in good planning.

answer

A. entails addressing a series of hows: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

question

Masterful strategies come from A. successful managerial efforts to develop a sound strategic vision. B. doing a very thorough job of strategic planning. C. involving as many company personnel as possible in the strategy-making process. D. crafting a strategy that mimics the best parts of the strategies of the industry leaders. E. doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd.

answer

E. doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd.

question

Strategy-making is A. primarily the responsibility of key executives rather than a task for a company's entire management team. B. more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives. C. first and foremost the function and responsibility of a company's strategic planning staff. D. first and foremost the function and responsibility of a company's board of directors. E. first and foremost the function of a company's chief executive officer—who formulates strategic initiatives and submits them to the board of directors for approval.

answer

B. more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.

question

Which of the following is not an accurate description of the task of crafting a company's strategy? A. In most companies, crafting strategy is a team effort, involving mangers and often key employees at many organization levels. B. Ultimate responsibility for leading the strategy-making task rests with the chief executive officer. C. The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors. D. It is the responsibility and duty of a company's board of directors to ensure that new strategy proposals can be defended as superior to alternatives and, ultimately, to approve or disapprove of the strategy formulated and proposed by the company's management. E. In most of today's companies, every company manager has a strategy-making role, ranging from major to minor, for his/her area of responsibility.

answer

C. The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors.

question

Managerial jobs with strategy-making responsibility A. extend throughout the managerial ranks and exist in every part of a company—business units, operating divisions, functional departments, manufacturing plants, and sales districts. B. are primarily located in the strategic planning departments of large corporations. C. are relatively rare because most strategy-making is done by the members of a company's board of directors. D. seldom exist within a functional department (e.g., marketing and sales) or in an operating unit (a plant or a district office) because these levels of the organization structure are well below the level where strategic decisions are typically made. E. are found only at the vice-president level and above in most companies.

answer

A. extend throughout the managerial ranks and exist in every part of a company—business units, operating divisions, functional departments, manufacturing plants, and sales districts.

question

Which of the following most accurately describes the task of crafting a company's strategy? A. In most companies, strategy-making is the exclusive province of top management—owner-entrepreneurs, CEOs, and other very senior executives. B. The more a company's operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants. C. A company's board of directors generally takes the lead role in crafting a company's strategy. D. In most of today's companies, the lead strategy-making role is being assumed by an elite group of corporate intrapreneurs. E. Masterful strategies are nearly always the product of brilliant corporate intrapreneurs.

answer

B. The more a company's operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants.

question

A company's overall strategy A. determines whether its strategic intent is proactive or reactive. B. is subject to being changed much less frequently than either its objectives or its mission statement and thus serves as the base of its strategy-making pyramid. C. should be based on a flexible strategic vision and strategic intent. D. is customarily reviewed and approved level-by-level by the company board of directors. E. is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

answer

E. is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy.

question

In a diversified company, the strategy-making hierarchy consists of A. corporate strategy and a group of business strategies (one for each line of business the corporation has diversified into). B. corporate or managerial strategy, a set of business strategies, and divisional strategies within each business. C. business strategies, functional strategies, and operating strategies. D. corporate strategy, business strategies, functional strategies, and operating strategies. E. its diversification strategy, its line of business strategies, and its operating strategies.

answer

D. corporate strategy, business strategies, functional strategies, and operating strategies.

question

Corporate strategy for a diversified or multi-business enterprise A. is orchestrated by senior corporate executives and focuses on how to create a competitive advantage in each specific line-of-business the total enterprise is in. B. concerns how best to allocate resources across the departments of each line of business the company is in. C. is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the businesses the company has diversified into. D. deals chiefly with what the strategic intent of each of its business units should be. E. involves how functional strategies should be aligned with business strategies in each of the various lines of business the company is in.

answer

C. is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the businesses the company has diversified into.

question

Business strategy concerns A. the actions and approaches crafted by management to produce successful performance in one specific line of business. B. what set of businesses to be in and why. C. selecting a business model to use in pursuing business objectives. D. selecting a set of stretch financial and strategic objectives for a particular line of business. E. choosing the most appropriate strategic intent for a specific line of business.

answer

A. the actions and approaches crafted by management to produce successful performance in one specific line of business.

question

Business strategy, as distinct from corporate strategy, is chiefly concerned with A. deciding what new businesses to enter, which existing businesses to get of, and which existing business to remain in. B. forging actions and approaches to compete successfully in a particular line of business. C. making sure the strategic intent of a particular business is in step with the company's overall strategic intent and strategy. D. coordinating the competitive approaches of a company's different business units. E. what business model to employ in each of the company's different businesses.

answer

B. forging actions and approaches to compete successfully in a particular line of business.

question

Functional strategies A. concern the actions, approaches, and practices to be employed in managing particular functions or business processes or key activities within a business. B. specify what actions a company should take to resolve specific strategic issues and problems. C. are normally crafted by operating-level managers. D. are concerned with how to unify the firm's several different operating strategies into a cohesive whole. E. are normally crafted by the company's CEO and other senior executives.

answer

A. concern the actions, approaches, and practices to be employed in managing particular functions or business processes or key activities within a business.

question

The primary role of a functional strategy is to A. unify the company's various operating-level strategies. B. specify how to build and strengthen the skills, expertise, and competencies needed to execute operating-level strategies successfully. C. support and add power to the corporate-level strategy. D. create compatible degrees of strategic intent among a company's different business functions. E. support the overall business strategy and competitive approach.

answer

E. support the overall business strategy and competitive approach.

question

Operating strategies concern A. what the firm's operating departments are doing and plan to do to unify the company's functional and business strategies. B. the specific plans for building competitive advantage in each major department and operating unit. C. the relatively narrow strategic initiatives for managing key operating units within a business (plants, distribution centers, geographic units) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) in ways that support functional strategies and the overall business strategy. D. how best to carry out the company's corporate strategy. E. how best to implement and execute the company's different business-level strategies.

answer

C. the relatively narrow strategic initiatives for managing key operating units within a business (plants, distribution centers, geographic units) and for performing strategically significant operating tasks (maintenance, shipping, inventory control, purchasing, advertising) in ways that support functional strategies and the overall business strategy.

question

In a single-business company, the strategy-making hierarchy consists of A. business strategy, divisional strategies, and departmental strategies. B. business strategy, functional strategies, and operating strategies. C. business strategy and operating strategy. D. managerial strategy, business strategy, and divisional strategies. E. corporate strategy, divisional strategies, and departmental strategies.

answer

B. business strategy, functional strategies, and operating strategies.

question

A company's strategic plan consists of A. its objectives and its strategy for achieving them. B. a vision of where it is headed, a set of performance targets, and a strategy to achieve them. C. its strategy and management's specific, detailed plans for implementing it. D. a company's strategic vision, strategic objectives, strategic intent, and strategy. E. a strategic vision, a strategy, and a business model.

answer

B. a vision of where it is headed, a set of performance targets, and a strategy to achieve them.

question

Which of the following is not among the principal managerial tasks associated with managing the strategy execution process? A. Ensuring that policies and procedures facilitate rather than impede effective execution B. Creating a company culture and work climate conducive to successful strategy implementation and execution C. Surveying employees on how they think costs can be reduced and how employee morale and job satisfaction can be improved D. Exerting the internal leadership needed to drive implementation forward and keep improving on how the strategy is being executed E. Tying rewards and incentives directly to the achievement of performance objectives and good strategy execution

answer

C. Surveying employees on how they think costs can be reduced and how employee morale and job satisfaction can be improved

question

Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to A. determine whether the company has a balanced scorecard for judging its performance. B. stay on track in achieving the company's mission and strategic vision. C. keep the company's board of directors well-informed about the company's future outlook. D. determine whether the company's business model is well matched to changing market and competitive circumstances. E. decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.

answer

E. decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods.

question

The primary roles/obligations of a company's board of directors in the strategy-making, strategy-executing process include A. playing the lead role in forming the company's strategy and then directly supervising the efforts and actions of senior executives in implementing and executing the strategy. B. providing guidance and counsel to the CEO in carrying out his/her duties as chief strategist and chief strategy implementer. C. overseeing the company's financial accounting and financial reporting practices. D. working closely with the CEO, senior executives, and the strategic planning staff to develop a strategic plan for the company and then overseeing how well the CEO and senior executives carry out the board's directives in implementing and executing the strategic plan. E. reviewing and approving the company's business model and also reviewing and approving the proposals and recommendations of the CEO as to how to execute the business model.

answer

C. overseeing the company's financial accounting and financial reporting practices.

question

The obligations of an investor-owned company's board of directors in the strategy-making, strategy-executing process include A. coming up with compelling strategy proposals of their own to debate against those put forward by top management. B. overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills. C. taking the lead in developing the company's business model and strategic vision. D. taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives. E. approving the company's operating strategies, functional-area strategies, business strategy, and overall corporate strategy.

answer

B. overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.

question

Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned? A. Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations B. Critically appraise the company's direction, strategy, and business approaches C. Evaluating the caliber of senior executives' strategy-making/strategy-executing skills D. Instituting a compensation plan for top executives that rewards them for actions and results that serve stakeholders' interests, most especially those of shareholders E. Overseeing the company's financial accounting and financial reporting practices

answer

A. Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations

question

Which one of the following is not one of the five stages of the strategic management process? A. Forming a strategic vision of the company's future direction and focus B. Setting objectives to measure progress toward achieving the strategic vision C. Crafting a strategy to achieve the objectives and get the company where it wants to go D. Developing a profitable business model E. Implementing and executing the chosen strategy efficiently and effectively

answer

D. Developing a profitable business model

question

When companies adopt the strategy-making and strategy execution process it requires they start by A. developing a strategic vision, mission and values B. developing a proven business model, deciding on the company's top management team, and crafting a strategy C. setting objectives, developing a business model, crafting a strategy, and deciding how much of the company's resources to employ in the pursuit of sustainable competitive advantage D. coming up with a statement of the company's mission and communicating it to all employees, setting objectives, selecting a business model, and monitoring developments and initiating corrective adjustments to the business model when necessary E. deciding on the company's board of directors, setting financial objectives, crafting a strategy, and choosing what business approaches and operating practices to employ

answer

A. developing a strategic vision, mission and values

question

The strategic management process is shaped by A. management's strategic vision, strategic and financial objectives, and strategy. B. the decisions made by the compensation and audit committees of the board of directors. C. external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities. D. a company's customer value proposition and profit formula. E. actions to strengthen competitive capabilities and correct weaknesses, actions to strengthen market standing and competitiveness by acquiring or merging with other companies, and actions to enter new geographic or product markets.

answer

C. external factors such as the industry's economic and competitive conditions and internal factors such as the company's collection of resources and capabilities.

question

Well-conceived visions are A. distinctive. B. specific to a particular organization. C. free of generic, feel-good statements. D. not innocuous one-sentence statements. E. All of these.

answer

E. All of these.

question

Which of the following are characteristics of an effectively worded strategic vision statement? A. Graphic, directional, and focused B. Challenging, competitive, and "set in concrete" C. Balanced, responsible, and rational D. Realistic, customer-focused, and market-driven E. Achievable, profitable, and ethical

answer

A. Graphic, directional, and focused

question

Which one of the following is not a characteristic of an effectively worded strategic vision statement? A. Directional (is forward-looking, describes the strategic course that management has charted and the kinds of product-market-customer-technology changes that will help the company prepare for the future) B. Easy to communicate (is explainable in 10 to 15 minutes, can be reduced to a memorable slogan) C. Graphic (paints a picture of the kind of company management is trying to create and the market position or positions the company is striving to stake out) D. Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support) E. Focused (is specific enough to provide guidance to managers in making decisions and allocating resources)

answer

D. Consensus-driven (commits the company to a "mainstream" directional path that most all stakeholders will enthusiastically support)

question

Which of the following is not a common shortcoming of company vision statements? A. Vague or incomplete—short on specifics B. Focused and narrow—exclusive to a specific direction C. Bland or uninspiring D. Not distinctive—could apply to most any company (or at least several others in the same industry) E. Too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of customers)

answer

B. Focused and narrow—exclusive to a specific direction

question

Which of the following are common shortcomings of company vision statements? A. Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives B. Unrealistic, unconventional, and unbusinesslike C. Too specific, too inflexible, and can't be achieved in five years D. Too broad, too narrow, and too risky E. Not customer-driven, out-of-step with emerging technological trends, and too ambitious

answer

A. Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives

question

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of A. not only explaining "where we are going and why" but, more importantly, also inspiring and energizing company personnel to unite to get the company moving in the intended direction. B. helping company personnel understand why "making a profit" is so important. C. making it easier for top executives to set strategic objectives. D. helping lower-level managers and employees better understand the company's business model. E. All of these.

answer

A. not only explaining "where we are going and why" but, more importantly, also inspiring and energizing company personnel to unite to get the company moving in the intended direction.

question

The benefit of a vivid, engaging, and convincing strategic vision is A. its ability to crystallize top management's own view about the company's long-term direction. B. it reduces the risk of rudderless decision making by managers at all levels of the organization. C. it helps an organization prepare for the future. D. its ability to unite company personnel behind managerial efforts to get the company moving in the intended direction. E. All of these are important benefits of an effective strategic vision.

answer

E. All of these are important benefits of an effective strategic vision.

question

A company's mission statement should be sufficiently descriptive and include which of the following? A. Identify the company's services and products to give the company its own identity B. Relate to the buyer's needs that the company seeks to satisfy C. Identify the customer or market that the company intends to serve D. Specify the approach taken by the company to satisfy its customer's needs E. All of the above

answer

E. All of the above

question

The difference between the concept of a company mission statement and the concept of a strategic vision is that A. a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is with the company's future business scope (long term direction and future product-customer-market-technology focus). B. the mission is to make a profit, whereas a strategic vision concerns how to attract customers. C. a mission statement deals with what to accomplish on behalf of shareholders and a strategic vision concerns what to accomplish on behalf of customers. D. a mission concerns what to do to achieve short-run objectives and a strategic vision concerns what to do to achieve long-run performance targets. E. a mission statement deals with "where we are headed" whereas a strategic vision provides the critical answer to "how will we get there."

answer

A. a mission statement typically concerns a company's present business scope ("who we are and what we do") whereas the principal concern of a strategic vision is with the company's future business scope (long term direction and future product-customer-market-technology focus).

question

A balanced scorecard for measuring company performance A. entails putting equal emphasis on financial and strategic objectives. B. entails striking a balance between financial objectives and strategic objectives. C. balances the drive for profits with social responsibility obligations. D. prevents the drive for achieving strategic objectives from overwhelming the pursuit of financial objectives. E. entails creating a set of financial objectives balanced among profitability measures and liquidity measures.

answer

B. entails striking a balance between financial objectives and strategic objectives.

question

A balanced scorecard that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because A. financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance. B. it entails putting equal emphasis on good strategy execution and good business model execution. C. a balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities and, instead, to set objectives that will serve as leading indicators of a company's future financial performance. D. it assists managers in putting roughly equal emphasis on short-term and long-term performance targets. E. it more or less forces managers to put equal emphasis on financial and strategic objectives.

answer

A. financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities whereas strategic performance measures are leading indicators of a company's future financial performance.

question

Why should long-run objectives take precedence over short-run objectives? A. Focus is placed on improving performance in the near term. B. Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results. C. This will satisfy shareholder expectations for progress. D. This will force the company to deliver performance improvement in the current period. E. None of these.

answer

B. Long-run objectives are necessary for achieving long-term performance and stand as a barrier to undue focus on short-term results.

question

Crafting strategy requires A. a collaborative effort that includes managers in various position at various organizational levels. B. executive management involvement only. C. participation by all employees. D. a collaborative effort between the CEO and board members only. E. All of these.

answer

A. a collaborative effort that includes managers in various position at various organizational levels.

question

Corporate strategy A. is primarily concerned with strengthening a company's market position and building competitive advantage. B. is subject to being changed much less frequently than either a company's objectives or its mission statement. C. should be based on a flexible strategic vision and mission. D. ensures consistency in strategic approach among businesses of a diversified, multibusiness corporation. E. determines balanced scorecard financial and strategic objectives.

answer

D. ensures consistency in strategic approach among businesses of a diversified, multibusiness corporation.

question

Business strategy concerns A. strengthening the company's market position and building competitive advantage. B. ensuring consistency in strategic approach among the businesses of a diversified company. C. selecting a business model to use in pursuing business objectives. D. selecting a set of financial and strategic objectives for a particular line of business. E. choosing appropriate internal business processes for a specific line of business.

answer

A. strengthening the company's market position and building competitive advantage.

question

Functional strategies A. unify the company's various operating-level strategies. B. specify how to build and strengthen the skills, expertise, and competencies needed to execute operating-level strategies successfully. C. support and add power to the corporate-level strategy. D. add detail to the company's business-level strategy and specify what resources are needed to put the strategy into action. E. create the chief elements of the company's strategy map.

answer

D. add detail to the company's business-level strategy and specify what resources are needed to put the strategy into action.

question

A company's direction, objectives, and strategy A. have to be revisited any time internal conditions warrant. B. are never final as it is an ongoing process. C. are not a now-and-then task. D. have to be revisited whenever a firm encounters disruptive changes in its environment. E. All of these.

answer

E. All of these.

question

Proficient strategy execution A. is always the product of much organizational learning. B. is achieved unevenly, coming quickly in some areas and more slowly in others. C. entails vigilantly searching for ways to improve performance. D. is an ongoing process, not an every-now-and-then task. E. All of these.

answer

E. All of these.

question

Which one of the following is not an integral part of the managerial process of crafting and executing strategy? A) Developing a strategic vision, a mission statement and core values. B) Choosing a strategic intent. C) Setting objectives. D) Crafting a strategy E) Monitoring developments, evaluating performance, and initiating corrective adjustments.

answer

B) Choosing a strategic intent.

question

A strategic vision for a company A) involves how fast to pursue the chosen strategy and reach the targeted levels of performance. B) consists of thinking through what it will take to make the chosen strategy work as planned. C) provides a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense for the company D) spells out how the company is going to get from where it is now to where it wants to go and when it is expected to arrive. E) concerns management's view of how to transition the company's business model from where it is now to where it needs to be.

answer

C) provides a panoramic view of "where we are going" and a convincing rationale for why this makes good business sense for the company

question

Which of the following statements about a company's values is false? A) Company values are the beliefs, traits, and behavioral norms that management has determined should guide the pursuit of its vision and mission B) In companies with long-standing values that are deeply entrenched in the corporate culture, senior managers are careful to craft a vision, mission, and strategy that match established values, and they reiterate how the value-based behavioral norms contribute to the company's business success. If the company changes to a different vision or strategy, executives take care to explain how and why the core values continue to be relevant. C) A company's core values can relate to such things as fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship. D) At values-driven companies, executives "walk the talk" and company personnel are held accountable for embodying the stated values in their behavior. E) At all but a few companies, the stated values are mostly window-dressing and serve mainly to embellish the company's public image.

answer

E) At all but a few companies, the stated values are mostly window-dressing and serve mainly to embellish the company's public image.

question

The task of crafting a strategy is A) the function and responsibility of a few high-level executives. B) more of a collaborative group effort that involves all managers and sometimes key employees striving to arrive at a consensus on what the overall best strategy should be. C) the function and responsibility of a company's strategic planning staff. D) is a collaborative team effort in which every manager has a role for the area he or she heads; it is rarely something that only high-level managers do. E) first and foremost the function and responsibility of a company's board of directors.

answer

D) is a collaborative team effort in which every manager has a role for the area he or she heads; it is rarely something that only high-level managers do.

question

The strategy-making hierarchy in a single business company consists of A) business strategy, divisional strategies, and departmental strategies. B) business strategy, functional-area strategies, and operating strategies. C) business strategy and operating strategy. D) managerial strategy, business strategy, and divisional strategies. E) corporate strategy, divisional strategies, and departmental strategies (whereas in a diversified company it consists of corporate strategy, divisional strategy and operating strategy).

answer

B) business strategy, functional-area strategies, and operating strategies.

question

Which one of the following is not among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned? A) Direct senior executives as to what the company's long-term direction, objectives, business model, and strategy should be and, further, closely supervise senior executives in their efforts to implement and execute the strategy B) Oversee the company's financial accounting and financial reporting practices. C) Evaluating the caliber of the CEO's strategy-making/strategy-executing skills and of other senior executives, since the board must elect a successor when the incumbent CEO steps down, either going with an insider or deciding that an outsider is needed D) Critically appraise the company's direction, strategy, and business approaches E) Institute a compensation plan for top executives that rewards them for actions and results that serve shareholder interests.

answer

A) Direct senior executives as to what the company's long-term direction, objectives, business model, and strategy should be and, further, closely supervise senior executives in their efforts to implement and execute the strategy

question

Most boards of directors have a compensation committee, composed entirely of ________________________, to develop a salary and incentive compensation plan that rewards senior executives for boosting the company's _______________ performance and growing the economic value of the enterprise on behalf of shareholders. A) outside directors; long-term B) shareholders; stock C) inside directors; short-term D) outside directors; quantitative E) Independent experts; overall

answer

A) outside directors; long-term

question

Which of the following represents the best example of a well-stated strategic objective (as opposed to a well-stated financial objective)? A) Achieve revenue growth of 10% annually B) Increase market share from 17% to 22% and achieve the lowest overall costs of any producer in the industry, both within three years C) Invest more money in R&D to enable the company to offer customers the widest selection of products in the industry D) Achieve a AA bond rating within 2 years and an annual cash flow of $500 million E) Pay more attention to reducing costs by half of the current level over the next few years

answer

B) Increase market share from 17% to 22% and achieve the lowest overall costs of any producer in the industry, both within three years

question

Which of the following statements about objectives is false? A) A company's managers are well-advised to give the achievement of financial objectives a much higher priority than the achievement of strategic objectives. B) The managerial purpose of setting objectives is to convert the vision and mission into specific performance targets. C) A "balanced scorecard" for measuring company performance views financial performance measures as lagging indicators that reflect the results of past decisions and organizational activities and views strategic performance measures as leading indicators of a company's future financial performance D) Objectives serve as yardsticks for tracking a company's performance and progress, and (3) they motivate employees to expend greater effort and perform at a high level. E) The best ways to promote outstanding company performance is for managers to deliberately set performance targets high enough to stretch an organization to perform at its full potential and deliver the best possible results

answer

A) A company's managers are well-advised to give the achievement of financial objectives a much higher priority than the achievement of strategic objectives.

question

A balanced scorecard for measuring company performance A) entails balancing the pursuit of good bottom-line profit against the pursuit of non-profit objectives (although achieving profitability targets is nearly always given greater emphasis). B) involves putting equal emphasis on the achievement of financial objectives, strategic objectives, and social responsibility objectives. C) entails setting both financial and strategic objectives and putting balanced emphasis on their achievement. D) helps prevent the pursuit of strategic objectives from dominating the pursuit of financial objectives. E) is necessary in order to prevent the drive for achieving financial objectives from weakening the attention paid to social responsibility, community citizenship, and other worthy goals.

answer

C) entails setting both financial and strategic objectives and putting balanced emphasis on their achievement.

question

A company's objectives or performance targets A) represent a managerial commitment to achieving specified outcomes and results; they function as yardsticks for tracking the company's progress and performance—well-stated objectives are quantifiable, or measurable, and contain a deadline for achievement. B) are typically established after a company decides on a strategic vision and strategy so that they will entail performance targets that truly signal business success. C) are best stated in general terms (maximize profits, reduce costs, increase sales) rather than quantifiable terms (increase after-tax profits by 10% in 2 years, grow sales revenues by 20% annually) so that managers will have the latitude to adjust target outcomes to levels that can be achieved. D) should place far more emphasis on financial performance targets than strategic performance targets. E) All of these.

answer

A) represent a managerial commitment to achieving specified outcomes and results; they function as yardsticks for tracking the company's progress and performance—well-stated objectives are quantifiable, or measurable, and contain a deadline for achievement.

question

The task of crafting a strategy is A) the function and responsibility of a few high-level executives. B) more of a collaborative group effort that involves all managers and sometimes key employees striving to arrive at a consensus on what the overall best strategy should be. C) the function and responsibility of a company's strategic planning staff. D) a job for a company's whole management team—senior executives plus the managers of business units, operating divisions, functional departments, manufacturing plants, and sales districts E) first and foremost the function and responsibility of a company's board of directors.

answer

D) a job for a company's whole management team—senior executives plus the managers of business units, operating divisions, functional departments, manufacturing plants, and sales districts

question

Which of the following is not an important consideration in deciding to commit to one directional path versus another? A) Are changes underway in the market and competitive landscape acting to enhance or weaken the company's prospects? B) Where should we head in order to prove that our business model is viable and that our strategy is working? C) Will the company's present business generate sufficient growth and profitability in the years ahead to please shareholders? D) What, if any, new geographic markets and/or customer groups should the company get in position to serve? E) What are our ambitions for the company—what industry standing do we want the company to have?

answer

B) Where should we head in order to prove that our business model is viable and that our strategy is working?

question

Which of the following is not a common shortcoming of company vision statements? A) Incomplete or vague—short on specifics B) Too reliant on superlatives (best, most successful, recognized leader, global or worldwide leader, first choice of buyers) C) Too broad—so umbrella-like and all-inclusive that the company could head in most any direction, pursue most any opportunity, or enter most any business D) Lacking in analysis—based more on managerial emotion and excessive ambition than on what is realistically achievable E) Not distinctive—provides no unique company identity; could apply to companies in any of several industries (or at least several rivals operating in the same industry or market arena)

answer

D) Lacking in analysis—based more on managerial emotion and excessive ambition than on what is realistically achievable

question

Establishing and achieving strategic objectives merits very high priority on management's agenda because A) strategic outcomes provide better benefits to shareholders in both the short-run and the long-run. B) a company can't have a shrewd strategic vision without having aggressive and competitively astute strategic objectives. C) the surest path to boosting company profitability quarter after quarter and year after year is to relentlessly pursue strategic outcomes that strengthen the company's market position and produce a growing competitive advantage over rivals. D) well-chosen strategic objectives help managers craft a good strategy E) a company cannot achieve its strategic intent and strategic vision or gain a competitive advantage over rivals without having and achieving strategic objectives.

answer

C) the surest path to boosting company profitability quarter after quarter and year after year is to relentlessly pursue strategic outcomes that strengthen the company's market position and produce a growing competitive advantage over rivals.

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Balanced Scorecard Approach Business Management Earnings Per Share Short Term Objectives Vision

mgmt 495 Chapter 2 – Flashcards 84 terms

Paulina Ratliff

84 terms

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mgmt 495 Chapter 2 – Flashcards

question

Which one of the following is NOT one of the five basic tasks of the strategy-making, strategy-executing process?

answer

Developing a profitable business model.

question

A company's strategic plan:

answer

outlines the competitive moves and approaches to be used in achieving the desired business results.

question

Which of the following tasks of the strategy-making, strategy-execution managerial process make up the company's strategic plan?

answer

Developing a strategic vision, mission, and core values

question

Which of the following is an integral part of the managerial process of crafting and executing strategy?

answer

Setting objectives and using them as yardsticks for measuring the company's performance and progress.

question

Which of the following are integral parts of the managerial process of crafting and executing strategy?

answer

Developing a strategic vision, setting objectives, and crafting a strategy

question

The strategy-making, strategy-executing process

answer

embraces the tasks of developing a strategic vision, setting objectives, crafting a strategy, implementing and executing the strategy, and then monitoring developments and initiating corrective adjustments in light of experience, changing conditions, and new opportunities.

question

A company's strategic vision describes:

answer

management's aspirations for the future and delineates the company's strategic course and long-term direction.

question

The real purpose of the company's strategic vision:

answer

serves as management's tool for giving the organization a sense of direction.

question

A strategic vision constitutes management's view and conclusions about the company's:

answer

long-term direction and what product-market-customer mix seems optimal.

question

The managerial task of developing a strategic vision for a company:

answer

involves deciding upon what strategic course a company should pursue in preparing for the future and why this directional path makes good business sense.

question

Which one of the following is NOT an accurate attribute of an organization's strategic vision?

answer

Outlining how the company intends to implement and execute its business model.

question

Management's strategic vision for an organization:

answer

charts a strategic course for the organization ("where we are going") and provides a rationale for why this directional path makes good sense

question

Well-conceived visions are ________ and ____________ to a particular organization and they avoid generic, feel-good statements that could apply to hundreds of organizations.

answer

distinctive; specific

question

What a company's top executives are saying about where the company is headed long term and about what the company's future product-market-customer-technology mix will be:

answer

constitutes their strategic vision for the company

question

One of the important benefits of a well-conceived and well-stated strategic vision is to:

answer

clearly communicate management's aspirations for the company to stakeholders and help steer the energies of company personnel in a common direction.

question

The defining characteristic of a well-conceived strategic vision is:

answer

what it says about the company's future strategic course—"the direction we are headed and what our future product-market-customer-technology focus will be."

question

Which one of the following questions is NOT pertinent to company managers in thinking strategically about what directional path should be taken by the company and about developing a strategic vision?

answer

What business approaches and operating practices should we consider in trying to implement and execute our business model?

question

Which one of the following questions is NOT something that company managers should consider in choosing to pursue one strategic course or directional path versus another?

answer

Do we have a better business model than key rivals?

question

Which of the following are characteristics of an effectively worded strategic vision statement?

answer

Graphic, directional, and focused.

question

Which one of the following is NOT a characteristic of an effectively worded strategic vision statement?

answer

Consensus-driven (commits the company to a "mainstream" directional path that almost all stakeholders will enthusiastically support)

question

Which of the following is NOT a common shortcoming when wording a company's vision statement? When the statement is somewhat

answer

flexible—allowing for adjustments to reflect changing circumstances.

question

Which of the following ARE common shortcomings of company vision statements?

answer

Too broad, vague or incomplete, bland/uninspiring, not distinctive, and too reliant on superlatives.

question

Breaking down resistance to a new strategic vision typically requires that management, on an as needed basis:

answer

reiterate the company's need for the new direction, while addressing employee concerns head-on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold.

question

An engaging and convincing strategic vision

answer

should be done in language that inspires and motivates company personnel to unite behind executive efforts to get the company moving in the intended direction.

question

A strategic vision has enormous motivational value and can usually be stated adequately in one to two paragraphs, and managers should be able to personally:

answer

paint a convincing and inspiring picture of the company's journey and destination effectively.

question

The managerial task of effectively conveying the essence of the strategic vision is made easier by

answer

adopting a catchy slogan and then using it repeatedly to illuminate the direction and purpose of "where we are headed and why."

question

Effectively communicating the strategic vision down the line to lower-level managers and employees has the value of:

answer

inspiring company personnel to unite behind managerial efforts to get the company moving in the intended direction

question

Perhaps the most important benefit of a vivid, engaging, and convincing strategic vision is:

answer

uniting company personnel behind managerial efforts to get the company moving in the intended direction.

question

A sound, well-communicated strategic vision matters, and the related payoffs occur in several respects, except in connection with

answer

avoiding strategic inflection points and management's reaction in aligning decision choices.

question

Which of the following is the result of a well-conceived and communicated strategic vision?

answer

A. Senior executives solidify their own view of the firm's long-term direction. B. The risk of rudderless decision-making is minimized. C. Organizational members support the changes internally that will help make the vision a reality. D. Assists the organization in preparing for the future. E. All of these.

question

A company's mission statement typically addresses which of the following questions?

answer

Who are we and what do we do?

question

The difference between the concept of a company mission statement and the concept of a strategic vision is that:

answer

a mission statement typically concerns a company's purpose and its present business scope ("who we are and what we do and why we are here"), whereas the principal concern of a strategic vision portrays a company's aspirations for its future ("where are we going").

question

The primary difference between a company's mission statement and the company's strategic vision is that:

answer

a mission statement typically concerns a company's present business scope and purpose, whereas a strategic vision sets forth "where we are going and why."

question

A company's mission statement should be sufficiently descriptive and should:

answer

A. identify the company's services and products. B. specify the buyer's needs that the company seeks to satisfy. C. identify the customer or market that the company intends to serve. D. give the company its own identity. E. All of these.

question

A company should not couch its mission in terms of making a profit because a profit is more correctly:

answer

an objective and a result of what a company does

question

A company's values or core values concern:

answer

the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company's business and pursuing its strategic vision and mission

question

A company's values relate to such things as:

answer

fair treatment, integrity, ethical behavior, innovativeness, teamwork, top-notch quality, superior customer service, social responsibility, and community citizenship.

question

Company managers connect values to the chosen strategic vision and mission by:

answer

making it clear that company personnel are expected to live up to the values in conducting the company's business and pursuing its strategic vision

question

The managerial purpose of setting objectives includes:

answer

A. converting the strategic vision into specific performance targets—results and outcomes the organization wants to achieve. B. using the objectives as yardsticks for tracking the company's progress and performance. C. challenging and helping stretch the organization to perform at its full potential and deliver the best possible results. D. pushing company personnel to be more inventive and to exhibit more urgency in improving the company's financial performance and business position. E. All of these.

question

Well-stated objectives are:

answer

quantifiable or measurable, and contain deadlines for achievement

question

What does a company specifically exhibit when it relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective?

answer

Strategic intent.

question

A company exhibits strategic intent when:

answer

itrelentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective.

question

Managers can deliberately set challenging performance targets at levels high enough to promote outstanding company performance by establishing:

answer

stretch objectives which challenge the organization to deliver stretch gains in performance.

question

A company needs financial objectives to:

answer

communicate management's targets for financial performance and achieve strategic objectives

question

Which of the following is the best example of a well-stated financial objective?

answer

Increase earnings per share by 15 percent annually.

question

Which of the following is the best example of a well-stated strategic objective?

answer

Overtake key competitors on product performance or quality within three years.

question

Strategic objectives:

answer

relate to strengthening a company's overall marketing standing and competitive position.

question

Adopting a set of "stretch" financial and "stretch" strategic objectives:

answer

is an effective tool for pushing the company to perform at its full potential and deliver the best possible results.

question

Which one of the following is NOT an advantage of setting "stretch" objectives?

answer

Helping clarify the company's strategic vision and strategic intent.

question

Strategic intent refers to a situation where a company:

answer

relentlessly pursues an ambitious strategic objective, concentrating the full force of its resources and competitive actions on achieving that objective

question

A "balanced scorecard" for measuring company performance:

answer

strikes a "balance" between financial and strategic objectives.

question

A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because:

answer

financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects.

question

Perhaps the most reliable way for a company to improve its financial performance over time is to:

answer

recognize that the achievement of strategic objectives signals that the company is well positioned to sustain or improve its performance.

question

A company that pursues and achieves strategic objectives:

answer

is frequently in a better position to improve its future financial performance because of the increased competitiveness that flows from the achievement of strategic objectives.

question

A company needs performance targets or objectives:

answer

for its operations as a whole and also for each of its separate businesses, product lines, functional departments, and individual work units.

question

Company objectives:

answer

need to be broken down into performance targets for each of its organizational levels—for separate businesses, product lines, functional departments, and individual work units.

question

When trade-offs have to be made between achieving long-term and achieving short-term objectives:

answer

long-term objectives should take precedence unless the short-term performance targets have unique importance.

question

The task of stitching together a strategy

answer

entails addressing a series of how's: how to grow the business, how to please customers, how to outcompete rivals, how to respond to changing market conditions, and how to achieve strategic and financial objectives.

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Masterful strategies come from:

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doing things differently from competitors where it counts—out-innovating them, being more efficient, adapting faster—rather than running with the herd.

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The faster a company's business environment is changing only makes it imperative for strategy makers to:

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pay attention to early warnings of future change and be willing to experiment to establish a market position in the future.

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Strategy-making is:

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more of a collaborative group effort that involves all managers and sometimes key employees, as opposed to being the function and responsibility of a few high-level executives.

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Which of the following is NOT an accurate description of the task of crafting a company's strategy?

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The task of crafting strategy is best done by a company's chief strategic planning officer, who should report directly to the company's CEO and board of directors.

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Managerial jobs with strategy-making responsibility:

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extend throughout the managerial ranks and exist in every part of a company—business units, operating divisions, functional departments, manufacturing plants, and sales districts.

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Which of the following most accurately describes the task of crafting a company's strategy?

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The more a company's operations cut across different products, industries, and geographical areas, the more that headquarters executives have little option but to delegate considerable strategy-making authority to down-the-line managers in charge of particular subsidiaries, product lines, geographic sales offices, and plants.

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A company's overall strategy:

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is really a collection of strategic initiatives and actions devised by managers and key employees up and down the whole organizational hierarchy

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In a diversified company, the strategy-making hierarchy consists of:

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corporate strategy, business strategies, functional strategies, and operating strategies.

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Corporate strategy for a diversified or multibusiness enterprise:

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is orchestrated by senior corporate executives and centers around the kinds of initiatives the company uses to establish business positions in different industries and efforts to boost the combined performance of the set of businesses the company has diversified into and the means of capturing cross-business synergies and turning them into competitive advantages.

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Business strategy concerns:

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how to gain and sustain a competitive advantage for a single line of business.

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Business strategy, as distinct from corporate strategy, is chiefly concerned with:

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deciding how to build competitive advantage and improve performance in a particular line of business.

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Functional-area strategies:

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concern the actions, approaches, and practices to be employed in managing particular functions within a business.

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The primary role of a functional strategy is to:

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determine how to support particular activities in ways that support the overall business strategy and competitive approach

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The primary operating strategies are concerned with:

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how to manage initiatives of strategic significance within each functional area, and adding detail and completeness) in ways that support functional strategies and the overall business strategy.

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In a single-business company, the strategy-making hierarchy consists of:

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business strategy, functional strategies, and operating strategies.

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A company's strategic plan:

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lays out its future direction and business purpose, performance targets and strategy

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Which of the following is NOT among the principal managerial tasks associated with managing the strategy execution process?

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Surveying employee's opinions on how costs can be reduced and how employee morale and job satisfaction can be improved.

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Which of the following principal aspects should be included in managing the strategy execution process?

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Organizing the company along the lines of best practice

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Good strategy execution requires management's:

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diligent pursuit of operating excellence.

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Management is obligated to monitor new external developments, evaluate the company's progress, and make corrective adjustments in order to:

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decide whether to continue or change the company's strategic vision, objectives, strategy and/or strategy execution methods

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The leadership challenges that top executives face in making corrective adjustments when things are not going well include:

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deciding when adjustments are needed and what adjustments to make.

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The task of top executives when the company faces disruptive changes in its environment is to not only raise questions about the appropriateness of its direction and strategy but also to:

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ferret out the causes and decide when adjustments are needed and what adjustments are needed for improved performance and operating excellence.

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In the strategy-making, strategy-executing process, effective corporate governance requires a company's board of directors to:

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oversee the company's strategic direction, evaluate the caliber of senior executives' skills, handle executive compensation, and oversee financial reporting practices.

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The key duties of a company's board of directors in the strategy-making, strategy-executing process include:

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overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.

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Which one of the following is NOT among the chief duties/responsibilities of a company's board of directors insofar as the strategy-making, strategy-executing process is concerned?

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Hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations.

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Every corporation should have a strong independent board of directors that:

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A. is well informed about the company's performance and exercises their fiduciary duty to protect shareholders responsibly. B. guides management in choosing a strategic direction and to make independent judgments about the validity and wisdom of managements proposed strategic actions. C. evaluates the leadership skills of the CEO and other senior executives promote management actions the board believes are inappropriate or unduly risky. D. has the courage to curb management actions deemed inappropriate or unduly risky, curtails insight and advice to management. E. All of these.

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Balanced Scorecard Approach Business Management Principles Of Management

MGT Chapter 16 – Flashcards 30 terms

Elizabeth Bates

30 terms

Preview

MGT Chapter 16 – Flashcards

question

The establishment of clear standards of performance

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The basic control process begins with:

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Concurrent; feedback

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In terms of the basic methods of control, ____ control is an improvement over ____ control because it attempts to eliminate or shorten the delay between performance and feedback about the performance

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Behavior; Output

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___ control regulates workers' performances on the job, while ____ control measures the results of their efforts.

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Behavior and output

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The two types of objective controls managers use are:

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Balanced scorecard

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___ is a control method that encourages managers to look beyond traditional measures to evaluate four different perspectives on company performance.

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Concertive control

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Normative controls should be used when:

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Objective control

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In the traditional control systems used at most companies, ____ measures are used to assess performance and influence behavior.

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Shows whether a business or subset of a business is really making a profit

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Economic value added (EVA) is so important to workers and managers because it:

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Control

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____ is the regulatory process of establishing standards that will achieve organizational goals, comparing actual performance to those standards, and then, if necessary, taking corrective action to restore performance to those standards.

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Standards

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___ are a basis of comparison for measuring the extent to which organizational performance is satisfactory or unsatisfactory.

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Taking corrective action

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Companies may determine standards by ____.

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continuous, dynamic, and cybernetic

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control is a(n) ___ process.

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Concurrent control, feedback control, and feedforward control

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The three basic control methods are ____.

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Cybernetic Feasibility

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____ is the extent to which it is possible to implement each step in the control process

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Cybernetic Feasibility

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According to the txt, which of the following factors can help managers to determine whether more control is possible?

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Bureaucratic

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____ control is top-down control in which managers try to influence employee behavior by rewarding or punishing employees for compliance or noncompliance with organizational policies, rules, and procedures.

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Behavior; output

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___ control regulates workers' actions and routines on the job, while ___ control measures the results of their efforts.

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Concertive; bureaucratic

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Ironically, ___ control may lead to even more pressure for workers to conform to expectations than ___ control.

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Concertive control

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Instead of individuals sales people calling on its business customers Cedartree Tech uses sales teams. The sales team is given complete responsibility for developing long-term partnering relationships with each customer. What kind of control would the company's sales manager most likely approve.

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Balanced scorecard

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___ is a control method that encourages managers to look beyond traditional measures to evaluate four different perspectives on company performance

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Policies and procedures perspective

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Which of the following is NOT one of the four perspectives measured in the Balanced Scorecard approach to control?

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All of the perspectives examined by the Balanced Scorecard approach are of equal importance to a company's success

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Which of the following statements about the Balanced Scorecard approach to control is true?

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Financial

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In the traditional control systems used at most companies, ___ measures are used to assess performance.

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Excellence, value, and conformance to expectations

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Quality is typically defined and measured in three ways. They are____.

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Customer defection

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___ is a performance assessment in which companies identify which customers are leaving and the rate at which customers are leaving.

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Value

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Innovation and learning perspective

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EVA is the amount by which profits (or other expenses) exceed the cost of capital in a given year

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Which of the following statements about Economic value added (EVA) is true?

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Suboptimization

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A large university library has decided to make it nearly impossible for all but the most renowned Civil War experts to access the Civil War collection. The Librarian in charge of this collection feels that this new policy will adversely influence the use of the collection in research on the experiences of everyday people during the war. This is an example of the use of control creating ____.

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Allows companies to determine the ideal control methods

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One of the advantages the Balanced Scorecard has over traditional control processes that rely solely on financial measures is that it ____.

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Balanced Scorecard Approach Business Management Customer Value Proposition Managerial Decision Making Principles Of Marketing Sustainable Competitive Advantage

SM2016 Chap 1 – Flashcards 30 terms

Evie Nicholson

30 terms

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SM2016 Chap 1 – Flashcards

question

Managers in all types of businesses must address the central strategic question: A. Where are we now? B. Where do we want to go from here? C. How are we going to get there? D. When will we know we are there? E. All of these

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C. How are we going to get there?

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A company's strategy consists of A. actions to develop a more appealing business model than rivals. B. plans involving alignment of organizational activities and strategic objectives. C. offensive and defensive moves to generate revenues and increase profit margins. D. competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives. E. its strategic vision, its strategic objectives, and its strategic intent.

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D. competitive moves and approaches that managers have developed to grow the business, attract and please customers, conduct operations, and achieve targeted objectives.

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The competitive moves and business approaches a company's management is using to grow the business, compete successfully, attract and please customers, conduct operations, respond to changing economic and market conditions, and achieve organizational objectives is referred to as its A. strategy. B. mission statement. C. strategic intent. D. business model. E. strategic vision.

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A. strategy.

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A company's strategy is most accurately defined as A. management's approaches to building revenues, controlling costs, and generating an attractive profit. B. management's game plan for growing the business, attracting and pleasing customers, conducting operations, and achieving financial and market performance objectives. C. management's concept of "where we are headed." D. the business model that a company's board of directors has approved for outcompeting rivals and making the company profitable. E. the choices management has made regarding what financial plan to pursue.

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B. management's game plan for growing the business, attracting and pleasing customers, conducting operations, and achieving financial and market performance objectives.

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Which of the following is not something a company's strategy is concerned with? A. Management's choices about how to attract and please customers B. Management's choices about how quickly and closely to copy the strategies being used by successful rival companies C. Management's choices about how to grow the business D. Management's choices about how to outcompete rivals E. Management's action plan for conducting operations and improving the company's strategic and financial performance

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B. Management's choices about how quickly and closely to copy the strategies being used by successful rival companies

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Which of the following is not an element of a company's business strategy? A. Actions to respond to changing market conditions or other external factors B. Actions to strengthen competitiveness via strategic alliances and collaborative partnerships C. Actions to strengthen internal capabilities and competitively valuable resources D. Actions to manage the functional areas of the business E. Management actions to revise the company's financial and strategic performance targets

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E. Management actions to revise the company's financial and strategic performance targets

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Which of the following is an issue likely to be addressed by a company's business strategy? A. Actions to respond to changing economic and market conditions. B. Actions to supplement the company's resources and capabilities through alliances and joint ventures. C. Reactions to offensive moves by rival sellers. D. Actions and approaches used in managing the functional areas of the business. E. All of these are pertinent in identifying a company's strategy.

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E. All of these are pertinent in identifying a company's strategy.

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The most important aspect(s) of a company's business strategy A. are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage. B. is figuring out how to maximize profits and shareholder value. C. concerns how to improve the efficiency of its business model. D. deals with how management plans to maximize profits while, at the same time, operating in a socially responsible manner. E. is figuring out how to become the industry's low-cost provider.

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A. are the actions and moves in the marketplace that managers take to gain a sustainable competitive advantage.

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A creative, distinctive strategy that delivers a sustainable competitive advantage is important because A. without a proven strategy a company is likely to fall into bankruptcy. B. without a competitive advantage a company cannot have a profitable business model. C. a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance. D. a competitive advantage is what enables a company to achieve its strategic objectives. E. how a company goes about trying to please customers and outcompete rivals is what enables senior managers to choose an appropriate strategic vision for the company.

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C. a strategy that yields a competitive advantage over rivals is a company's most reliable means of achieving above-average profitability and financial performance.

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A company achieves sustainable competitive advantage when A. it has a profitable business model. B. a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors. C. it is able to maximize shareholder wealth. D. it is consistently able to achieve both its strategic and financial objectives. E. its strategy and its business model are well-matched and in sync.

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B. a sufficiently large number of buyers have a lasting preference for its products or services as compared to the offerings of competitors.

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A creative, distinctive strategy that sets a company apart from rivals and that gives it a sustainable competitive advantage A. is a reliable indicator that the company has a profitable business model. B. is a company's most reliable ticket to above-average profitability. C. signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives. D. is the best indicator that the company's strategy and business model are well-matched and properly synchronized. E. All of these.

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C. signals that the company has a bold, ambitious strategic intent that places the achievement of strategic objectives ahead of the achievement of financial objectives.

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Proven approaches to winning a sustainable competitive advantage include which of the following? A. Strategies keyed to developing a low-cost-based advantage. B. Strategies keyed to creating a broad differentiation-based advantage. C. Focusing on a narrow market niche within an industry. D. Developing a best-cost provider strategy. E. All of these.

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E. All of these.

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Which of the following is a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage. B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, more attractive styling, or technological superiority. C. Developing competitively valuable resources and capabilities that rivals can't easily match, copy, or trump with capabilities of their own. D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche. E. All of these.

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E. All of these.

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Which of the following is not a frequently used strategic approach to setting a company apart from rivals and achieving a sustainable competitive advantage? A. Aiming for a cost-based competitive advantage B. Outcompeting rivals on the basis of such differentiating features as higher quality, wider product selection, added performance, better service, or more attractive styling C. Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins D. Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of satisfying the needs and tastes of buyers comprising the niche E. Developing expertise and resources that give the company competitive capabilities that rivals can't easily imitate or trump with capabilities of their own

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C. Striving to be more profitable than rivals by aiming for a competitive edge based on bigger profit margins

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Which of the following is not one of the basic reasons that a company's strategy evolves over time? A. An ongoing need to abandon those strategy features that are no longer working well B. The proactive efforts of company managers to improve the company's financial performance and secure a competitive advantage C. The need on the part of company managers to make regular adjustments in the company's business model D. The need to respond to the actions and competitive moves of rival firms E. The need to keep strategy in step with changing industry and competitive conditions

answer

C. The need on the part of company managers to make regular adjustments in the company's business model

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A company's strategy is a "work in progress" and evolves over time because of A. the ongoing need of company managers to react and respond to changing industry and competitive conditions. B. the ongoing need to imitate the new strategic moves of the industry leaders. C. the need to make regular adjustments in the company's strategic vision. D. the importance of developing a fresh strategic plan every year. E. the frequent need to modify key elements of the company's business model.

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A. the ongoing need of company managers to react and respond to changing industry and competitive conditions.

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Changing circumstances and ongoing managerial efforts to improve the strategy A. account for why a company's strategy evolves over time. B. explain why a company's strategic vision undergoes almost constant change. C. make it very difficult for a company to have concrete strategic objectives. D. make it very hard to know what a company's strategy really is. E. All of these.

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A. account for why a company's strategy evolves over time.

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It is normal for a company's strategy to end up being A. left unchanged from management's original planned set of actions and business approaches since making on-the-spot changes is too risky. B. a combination of defensive moves to protect the company's market share and offensive initiatives to set the company's product offering apart from rivals. C. like the strategies of other industry members since all companies are confronting much the same market conditions and competitive pressures. D. a blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions. E. a mirror image of its business model, so as to avoid impairing company profitability.

answer

D. a blend of deliberate planned actions to improve the company's competitiveness and financial performance and as-needed unplanned reactions to unanticipated developments and fresh market conditions.

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Crafting a strategy involves A. blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace. B. developing a five-year strategic plan and then fine-tuning it during the remainder of the plan period. C. trying to imitate as much of the market leader's strategy as possible so as not to end up at a competitive disadvantage. D. doing everything possible (in the way of price, quality, service, warranties, advertising, and so on) to make sure the company's product/service is very clearly differentiated from the product/service offerings of rivals. E. All of these accurately characterize the managerial process of crafting a company's strategy.

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A. blending deliberate/planned initiatives with emergent/unplanned reactive responses to changing circumstances, while abandoning planned strategy elements that have failed in the marketplace.

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A company may develop an emergent strategy due to A. strategic moves by rival firms. B. unexpected shifts in customer preferences. C. fast-changing technological developments. D. new market opportunities. E. All of these.

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E. All of these.

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Which of the following statements about a company's realized strategy is true? A. A company's realized strategy is mostly hidden to outside view and is deliberately kept under wraps by top-level managers. B. A company's realized strategy is typically planned well in advance and usually deviates little from the planned set of actions. C. A company's realized strategy generally changes very little over time unless a newly appointed CEO decides to take the company in a new direction with a new strategy. D. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements. E. A company's realized strategy is developed mostly on the fly because of the constant efforts of managers to keep rival companies at a disadvantage.

answer

D. A company's realized strategy is typically a blend of deliberate/planned initiatives and emergent/unplanned reactive strategy elements.

question

A company's realized strategy is made up of A. deliberate/planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance. B. emergent/reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities. C. tactical plans to imitate the key elements of the strategies employed by rivals. D. Both deliberate/planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance and emergent/reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities. E. All of these.

answer

D. Both deliberate/planned initiatives that have proven themselves in the marketplace and newly launched initiatives aimed at further boosting performance and emergent/reactive adjustments to unanticipated strategic moves by rivals, unexpected changes in customer preferences, and new market opportunities.

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A company's business model A. concerns the actions and business approaches that will be used to grow the business, conduct operations, please customers, and compete successfully. B. relates to the principle business components that will allow the business to generate revenues ample to cover costs and produce a profit. C. concerns what moves in the marketplace it plans to make to outcompete rivals. D. deals with how it can simultaneously maximize profits and operate in a socially responsible manner. E. concerns how management plans to pursue strategic objectives, given the larger imperative of meeting or beating its financial performance targets.

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B. relates to the principle business components that will allow the business to generate revenues ample to cover costs and produce a profit.

question

The elements of a company's business model are A. its customer value proposition as well as the company's profit formula. B. its business strategy, its collection of competitively valuable resources, and a strong management team. C. its deliberate strategy, its emergent strategy, and its realized strategy. D. its actions to capture emerging market opportunities and defend against threats to the company's business prospects, its actions to strengthen competitiveness via strategic alliances, and its actions to enter new geographic or product markets. E. management's answers to "Where are we now?" "Where do we want to go?" and "How are we going to get there?".

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A. its customer value proposition as well as the company's profit formula.

question

A viable business model includes a valuable customer value proposition that A. is always partly deliberate/planned and partly emergent/reactive. B. is an essential component of pursuing the company's strategic intent. C. suggests the greater the value provided and the lower the price, the more attractive the value proposition. D. lays out the approach to satisfying buyer wants and needs at a premium price. E. must set forth management's long-term action plan for achieving market leadership.

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C. suggests the greater the value provided and the lower the price, the more attractive the value proposition.

question

A company's business model A. details the manner in which the company will pass the three tests of a winning strategy . B. indicates how the strategy will result in achieving the targeted strategic objectives. C. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits. D. explains how it intends to achieve high profit margins. E. sets forth the actions and approaches that it will employ to achieve market leadership.

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C. clarifies (1) how the business will provide customers with value, and (2) why the business will generate revenues sufficient to cover costs and produce attractive profits.

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A winning strategy is one that A. builds strategic fit, is socially responsible, and maximizes shareholder wealth. B. is highly profitable and boosts the company's market share. C. results in a company becoming the dominant industry leader. D. fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance. E. can pass the ethical standards test, the strategic intent test, and the profitability test.

answer

D. fits the company's internal and external situation, builds sustainable competitive advantage, and improves company performance.

question

A well-conceived strategy is value creating producing excellence in company performance and is best when the gains are achieved. A. in profitability and financial strength. B. in competitive strength and market standing. C. in developing distinctive competencies and sustainability. D. in developing a desirable competitive edge. E. All of these

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E. All of these

question

In evaluating proposed or existing strategies managers should A. initiate new initiatives even though they don't seem to match the company's internal and external situation. B. scrutinize the company's existing strategies compatibility with desired outcomes on a regular basis. C. evaluate the firm's business model at least every three years. D. ensure core capabilities are incorporated for establishing a competitive advantage. E. align existing strategies with new strategies to emphasize incremental gains.

answer

B. scrutinize the company's existing strategies compatibility with desired outcomes on a regular basis.

question

Which of the following questions ought to be used to distinguish a winning strategy from a so-so or flawed strategy? A. Does the strategy contain a sufficient number of emergent/reactive elements? B. Is the company putting too little emphasis on growth and profitability and too much emphasis on behaving in an ethical and socially responsible manner? C. Is the strategy resulting in the development of additional competitive capabilities? D. Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance? E. Does the strategy strike a good balance between maximizing shareholder wealth and maximizing customer satisfaction?

answer

D. Is the strategy well-matched to the company's situation, helping the company achieve a sustainable competitive advantage, and resulting in better company performance?

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