Strategic Management: Chapter 7
Resistance to change can manifest itself through
absenteeism, sabotaging machines, filing unfounded grievances, unwillingness to cooperate (all of the above)
Wellness programs
are becoming more prevalent as companies realize their benefits to the firm
Aspects of an existing culture that are antagonistic to a proposed strategy should be
changed
Formal statements of organizational philosophy help an organization
link culture to strategy
What is not a way to alter an organization's culture
retrenchment
A divisional structure by product is most effective when
special emphasis is needed on specific products, an organization only offers a few products, an organizations products differ substantially (all of the above)
A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while people are ______ in their personal development
static, dynamic
What is not true regarding the recent trend in Japan of switching from seniority based pay to performance based pay
the switch is boosting employee morale
Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself
Avoidance
What are the three categories of approaches for managing and resolving conflict
Avoidance, defusion, and confrontation
3 Approaches for resolving conflict
Avoidance, defusion, confrontation
A bottom-up flow of communication is essential for developing bottom-up support
False
A functional structure can be effective at eliminating short-term and narrow thinking
False
A rational change strategy means giving orders and enforcing those orders
False
Avoidance, defusion, and confrontation are the classifications for the various types of conflict that can arise in organizations
False
Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure
False
ESOPs work well even in firms with fluctuating payrolls and profits
False
Effective strategy formulation can usually guarantee successful strategy implementation
False
Holding a meeting at which conflicting parties present their views and work through their differences is part of the defusion technique of managing conflict
False
Horizontal consistency is more important than vertical consistency in developing annual objectives
False
In Japan, performance rather than seniority has traditionally been a key factor in determining pay
False
In terms of number of employees, restructuring usually involves increasing the size of the firm
False
In the context of a conflict management and resolution, ignoring the problem in hopes the conflict will resolve itself is classified as a defusion technique
False
JIT significantly increases the costs of implementing strategies
False
Organizational change today should be viewed as a project or event rather than a continuous project
False
Production processes typically constitute less than 50 percent of a firm's total assets
False
Six Sigma is generally equally successful in retail firms and manufacturing firms
False
Strategies clarify what can and cannot be done in pursuit of an organization's objectives
False
Strategists should strive to preserve, emphasize, and build upon aspects of an existing culture that are antagonistic to a proposed strategy
False
Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action
False
Tasks and activities are grouped together by business function in a division organizational structure
False
The advantage of the educative change strategy is that implementation is quick and relatively easy
False
The focus of restructuring is changing the way work is actually carried out
False
The rational change strategy is one that presents information to convince people of the need for change
False
The work and family issue is strictly a women's issue
False
Well-run organizations are able to completely avoid conflict
False
When developing an organizational chart, the title president should be reserved for the top executive of the firm
False
With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm
False
With the matrix structure it is common for functional resources to be duplicated
False
What change strategy involves giving orders and enforcing those orders
Force
Strategies for implementing change
Force, educative, rational
Which organizational structure is the most widely used
Functional
what type of organizational structure promotes specialization of labor and allows rapid decision making
Functional structure
What pay strategy requires employees or departments to establish performance targets, which , if exceeded, result in bonuses for all members
Gain sharing
What is not true about objectives
They should use terms like "maximize" , "minimize, and as soon as possible
A dual bonus system based on both annual objectives and long-term objectives is becoming common
True
A force change strategy is plagued by low commitment and high resistance
True
What term is used to describe specific guidelines, methods, procedures, etc... established to support and encourage work toward stated goals
Policies
What action involves re configuring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed
Reengineering
Which term is best defined as a central management activity that allows for strategy execution
Resource allocation
A recent study reports that nearly 90 percent of employers today offer some kind of wellness incentives or prizes to employees who get healthier
True
Which organizational structure has the disadvantage of ambiguous roles for senior executives
SBU (strategic business unit)
Annual objectives are key components in the strategic management process because they dictate how resources will be allocated
True
Besides reducing worker alienation and stimulating productivity, ESOP (employee stock ownership plans)s allow firms other benefits, such as substantial tax savings
True
Changing a strategy to fit an existing culture is not as effective as changing a firm's culture to fit a new strategy
True
Exchanging members of conflicting parties so each can gain an appreciation of the others point of view exemplifies a confrontation approach
True
Four types of resources that can be used to achieve desired objectives are financial, physical, human and technological
True
In developing an organizational chart, avoid having a particular person reporting to more than one person above them in the chain of command
True
It is always easier to say you are going to do something than actually do it
True
Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure
True
Most large companies have abandoned the functional structure in favor of decentralization
True
People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty, and a break in normal social patterns
True
Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals
True
Recruitment, promotion, and mentoring are ways to alter an organization's culture
True
Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs
True
Resistance to change can be considered the greatest threat to successful strategy implementation
True
Restructuring in many firms has made a manager's job an invisible, thankless role
True
Restructuring is also called rightsizing
True
Strategists should strive to create a work environment in which change is recognized as necessary and beneficial so that individuals can more easily adapt to change
True
Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many
True
The most complex of all organizational structures is the matrix structure
True
The united states leads the world in promoting women and minorities into mid and top level managerial positions in business
True
Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives
True
Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations
True
When attachments to a culture are severed in an organization's attempt to change direction, employees and managers often experience deep feelings of grief
True
When developing an organizational chart, it is not wise to recommend a dual title for just one executive
True
When the rational type change strategy is successful, strategy implementation can be relatively easy
True
With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups
True
Why do changes in company strategy often require changes in the way the organization is strctured
Structure dictates goals and objectives, how resources are allocated, and facilitates strategic pursuits (all of the above)
Glass ceiling refers to
The invisible barrier that bars women and minorities from advancement
_____ is NOT a major factor that commonly prohibits effective resource allocation
Underprotection of resources
Types of organizational structures
Divisional, functional, matrix
Which word or phrase would most be best to use in written objective statements
10% increase
In 2012, how many Fortune 500 have women CEOs
22
Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance related criteria
Benchmarking
What is not one of the basic ways a divisional structure can be organized
By cost
What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers
By customer
How would Hershey's current divisional structure most likely mbe classified
By geographic area
A disagreement between two parties on an issue is called
Conflict
Which approach for managing and resolving conflict involves exchanging members of conflicting parties so they can see the other point of view
Confrontation
Medium-sized firms tend to use which type of structure
Divisional
Establishing objectives is a
Decentralized activity
Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests
Defusion
Which of the following is a management issue central to strategy implementation
Devising policies, revising incentive plans, minimizing resistance to change, developing an effective human resources function (all of the above)
Which of these is true about strategy implementation
It is primarily an operational process
Which company estimates wellness programs have cumulatively saved the company $250 million on health-care costs in the past decade
Johnson&Johnson
What is the most complex form of organizational structure
Matrix
The primary benefit sought from restructuring is
cost reduction
Restructuring is also referred to as
delayering
Just-in-time describes
delivering materials just as they are needed
Which of these is not one of the tests used to determine whether a performance pay plan will benefit an organization
does the plan reduce management layers
What is not an example of offerings at companies to promote a corporate wellness culture
free health insurance to employees who exercise regularly
Policies
give expectations, give basis for management control, allow coordination, reduce decision making time (all of the above0
When developing an organizational chart, you should
have division presidents report to a chief operating officer
Changing a strategy to fit an existing culture
is usually less effective than changing a firm's culture to fit a new strategy
Considerable time and effort should be devoted to assuring objectives are well conceived because they represent a basis for
monitoring progress, establishing divisional priorities, allocating resources, evaluating managers (all of the above)
Conflict in an organization is
not always bad
Which of the following is in keeping with the current view of organizational change
organizational is a continuous process
A divisional structure by geographic area is most appropriate when
organizations have similar branch facilities located in widely dispersed areas
In 2013 ______________ of CEO compensation was directly associated with the performance of the firm, rather than salary
over 50 percent
A change strategy that attempts to convince people that the change is to their personal advantage is
rational
A firm uses information technology to reconfigure work, jobs, and processes. As a result, cost, quality, service and speed are improved. what has the firm engaged in
reengineering
Strategy formulation
requires coordination among a few individuals
Which term is primarily concerned with shareholder well-being rather than employee well-being
restructuring
