MGMT 425 Chapter 11: Strategy and Performance Excellence

Process decision program charts are spreadsheets that graphically display relationships between ideas, activities, or other dimensions in such a way as to provide logical connecting points between each item. a. True b. False

False

The Organizational Profile provides the "finer picture" of the various organizational parts and thus sets the context for good strategic decisions. a. True b. False

False

The Seven Management and Planning Tools had their roots in post-World War II operations research developments in Japan but were combined and refined by several U.S. companies over the past several decades as part of their planning processes. a. True b. False

False

The second group of questions in the Baldrige Organizational Profile is listed under the heading "Organizational Environment." a. True b. False

False

The term "management challenges" refers to those pressures that exert a decisive influence on an organization's likelihood of future success. a. True b. False

False

Traditional organizations tend to develop structures that help them to maintain flexibility. a. True b. False

False

Mission is the pattern of decisions that determines and reveals an organization's goals, policies, and plans to meet the needs of its stakeholders. a. True b. False

False

Core competencies may involve technology expertise, unique service offerings, a marketplace niche, or a particular business acumen. a. True b. False

True

A vision statement of a firm defines its reason for existence; it answers the question "Why are we in business?" a. True b. False

False

An interrelationship digraph shows that every idea can be logically linked with more than one other idea at a time and allows for "linear thinking" rather than "lateral thinking." a. True b. False

False

In line and staff organizations, staff departments carry out the functions of marketing, finance, and production for the organization. a. True b. False

False

A key role of strategic planning is to align work processes and learning initiatives with an organization's strategic directions. a. True b. False

True

A strategy is a pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole. a. True b. False

True

An iterative process in which senior management asks what lower levels of the organization can do, what they need, and what conflicts may arise can avoid many of the strategy implementation problems that managers typically face. a. True b. False

True

Catchball is an up, down, and sideways communication process as opposed to an autocratic, top-down management style. a. True b. False

True

Effective strategy deployment is dependent upon, and tends to shape, organizational structure because the organizational structure must be aligned with and support the accomplishment of strategic initiatives. a. True b. False

True

In many cases, the decision to vertically integrate is based solely on costs without considering the impact on other business priorities. a. True b. False

True

In the line and staff form of organization structure, quality managers and inspectors may take on the role of guardians of quality. a. True b. False

True

In the policy deployment process, middle management negotiates with the implementation teams the final short-term objectives and the performance measures that are used to indicate progress toward accomplishing the objectives. a. True b. False

True

Matrix data analysis takes data and arranges them to display quantitative relationships among variables to make them more easily understood and analyzed. a. True b. False

True

Outsourcing refers to the practice of transferring the operations of a business function to an outside supplier. a. True b. False

True

Strategic challenges frequently are driven by an organization's future competitive position relative to other providers of similar products or services. a. True b. False

True

Strategic objectives are what an organization must change or improve to remain or become competitive. a. True b. False

True

Strategic planning is the process of envisioning the organization's future and developing the necessary goals, objectives, and action plans to achieve that future. a. True b. False

True

The use of arrow diagramming has generally been confined to technical experts. a. True b. False

True

Which of the following is a management and planning tool for organizing a large number of ideas, opinions, and facts relating to a broad problem or subject area? a. Affinity diagram b. Interrelationship diagraph c. Matrix diagram d. Process decision program chart

a. Affinity diagram

If everyone can answer the question, "What does strategy mean in terms that I can act on?" which of the reasons for poor strategy deployment will have been addressed? a. Lack of alignment across the organization b. Improperly defined organizational goals c. Misallocation of resources d. Insufficient operational measures

a. Lack of alignment across the organization

_____ is essentially a quality-based approach to executing a strategy by ensuring that all employees understand the business direction and are working according to a plan to make the vision a reality. a. Policy deployment b. Mission development c. Value development d. Quality orientation

a. Policy deployment

_____ coordinate the internal work processes and the external resources necessary to develop, produce, and deliver products and services to customers and to succeed in the marketplace. a. Work systems b. Operations scheduling systems c. Organizational charts d. Personnel management systems

a. Work systems

Effective implementation of a strategy through action plans is called a. deployment. b. installation. c. proactive implementation. d. strategic implementation.

a. deployment

In policy deployment, the _____ process is called catchball. a. negotiation b. implementation c. review d. communication

a. negotiation

With _____, top management is responsible for developing and communicating a vision, and then building organization-wide commitment to its achievement. a. policy deployment b. value development c. mission development d. quality deployment

a. policy deployment

What is the mission statement of the Branch-Smith Printing Division? a. To provide expert solutions for publishers b. To provide market leading business results through an expert team providing turnkey solutions to customer partners c. To continuously improve results for all stakeholders through the application of its Innovating Excellence Process d. To become the industry leader and achieve superior growth and market share

a. To provide expert solutions for publishers

Decisions about work systems are a. operational. b. strategic. c. customer-focused. d. administrative.

b. strategic.

An organization chart shows the _____ of the formal organization. a. business model b. apparent structure c. competitive position d. workforce distribution

b. apparent structure

Japanese firms introduced a newer deployment process adapted by Japanese and American companies known as a. SWOT. b. hoshin planning. c. management by exception. d. management by objectives.

b. hoshin planning

The _____ organization is the most prevalent type of structure for medium-sized to large firms. a. line b. line and staff c. staff d. matrix

b. line and staff

A _____ might include a definition of products and services an organization provides, technologies used to provide these products and services, types of markets, important customer needs, and distinctive competencies or the expertise that sets the firm apart from others. a. strategy roadmap b. mission statement c. value statement d. leadership statement

b. mission statement

The major drawback of the matrix-type organization is that it a. can be used only for project work. b. requires split loyalty. c. decreases the efficiency of personnel use. d. decreases the level of coordination in project work.

b. requires split loyalty.

Which of the following descriptions regarding a key challenge of the U.S. health care marketplace is true? a. A shift away from value-based models of health care toward a performance-based system b. Demographic changes that necessitate the need for more care availability c. The decreasing number of Americans who use emergency rooms for primary care because they lack health insurance d. Rising consumer expectations curtailed by greater transparency of quality

b. Demographic changes that necessitate the need for more care availability

An organization must address certain key practices to achieve a strategic focus on performance excellence. Which of the following is NOT one of them? a. Gather and analyze relevant data and information pertaining to such factors as the organization's strengths, weaknesses, opportunities, and threats b. Execute mergers and acquisitions, with an aim to expand business globally and to form coalitions and cartels to achieve the same c. Understand the competitive environment, the principal factors that determine success, the organization's core competencies, and strategic challenges d. Develop and refine a systematic approach for conducting strategic planning and setting strategic objectives

b. Execute mergers and acquisitions, with an aim to expand business globally and to form coalitions and cartels to achieve the same

Which of the following is an advantage of the matrix type of organization? a. It is a one-size-fits-all quality organization. b. It improves the efficiency of personnel use. c. The division of loyalty is especially advantageous in a quality assurance area. d. It is especially suited for small and medium firms.

b. It improves the efficiency of personnel use.

What is the vision statement of the Branch-Smith Printing Division? a. The objective of the Branch-Smith Printing Division is to provide expert solutions for publishers. b. Market-leading business results through an expert team providing turnkey solutions to customer partners. c. Our single focus will continue to be helping customers all over the world succeed in their businesses. d. Branch-Smith Printing will seek to continuously improve results for all stakeholders through the application of its Innovating Excellence Process.

b. Market-leading business results through an expert team providing turnkey solutions to customer partners.

The goal of _____ is to envision the future for purposes of decision making and resource allocation. a. environmental assessment b. strategy development c. work systems d. core competencies

b. strategy development

All the following are key factors included in an environmental assessment EXCEPT a. the organization's SWOT profile. b. the workforce profile and future requirements. c. early indications of major shifts in technology. d. the long-term organizational sustainability.

b. the workforce profile and future requirements.

_____ represents the critical stage in planning when strategic objectives and goals are made specific so that effective, organization-wide understanding and deployment are possible. a. Mission statement development b. Vision statement development c. Action plan development d. Operations planning and scheduling

c. Action plan development

In Cigna Corp.'s holistic Six Sigma model, _____ solves root cause problems to optimize existing processes a. hoshin kanri b. kaizen c. DMAIC d. DFSS

c. DMAIC

In Cigna Corp.'s holistic Six Sigma model, tactical execution through _____ refers to an accelerated process streamlining event. a. DMAIC b. hoshin kanri c. kaizen d. DFSS hi

c. kaizen

The term _____ refers to those pressures that exert a decisive influence on an organization's likelihood of future success. a. systems b. competencies c. strategic challenges d. strategic inertia

c. strategic challenges

A firm purchasing a key supplier to strengthen its value chain is an example of a. collaboration. b. outsourcing. c. vertical integration. d. unrelated diversification.

c. vertical integration

A _____ statement articulates the basic characteristics that shape an organization's view of the future and its strategy. a. value b. mission c. vision d. leadership

c. vision

What is the quality policy of the Branch-Smith Printing Division? a. Our single focus will continue to be helping customers all over the world succeed in their businesses. b. Market leading business results through an expert team providing turnkey solutions to customer partners. c. Branch-Smith Printing will seek to continuously improve results for all stakeholders through the application of its Innovating Excellence Process. d. The objective of the Branch-Smith Printing Division is to provide expert solutions for publishers.

c. Branch-Smith Printing will seek to continuously improve results for all stakeholders through the application of its Innovating Excellence Process.

According to the policy deployment process diagram, a catchball situation occurs between the _____ stage and the _____ stage. a. corporate vision; long-term objectives b. long-term objectives; midterm objectives c. short-term objectives; policy deployment plan d. policy deployment plan; plan approval

c. short-term objectives; policy deployment plan

In the context of organizational structure, which of the following is one of the factors that affects how work is organized? a. Suppliers and partners b. Competitiveness c. Unionization of personnel d. Customer influences

d. Customer influences

Gary Hamel and C. K. Prahalad suggested that a core competency meets three conditions. Which of the following is NOT one of them? a. It is difficult for competitors to imitate. b. It contributes significantly to customer benefits. c. It provides access to many products and markets. d. It provides focus to the organizational objectives.

d. It provides focus to the organizational objectives.

Which of the following statements regarding the policy deployment process is true? a. The supervisory level has the primary responsibility of actively participating in generating strategies and action plans to attain a vision. b. At the top management level, progressively more detailed and concrete means to accomplish the objectives are determined. c. Employees negotiate the final short-term objectives with the implementation teams. d. Middle management negotiates with senior management regarding the objectives that will achieve the strategies.

d. Middle management negotiates with senior management regarding the objectives that will achieve the strategies.

_____ set an organization's longer-term directions and guide resource allocation decisions. a. Management values b. Workforce principles c. Core competencies d. Strategic objectives

d. Strategic objectives

_____ is the process by which certain business functions are acquired and consolidated within a firm. a. Acquisition b. Outsourcing c. Collaboration d. Vertical integration

d. Vertical integration

When Six Sigma was launched at Cigna Corp., leadership made it clear the approach would a. focus exclusively on productivity improvement. b. focus on health insurance. c. be innovative. d. be holistic.

d. be holistic

Essentially, strategy deployment links the _____, who focus on "doing the right thing," with the _____, whose focus is on "doing things right." a. management; employees b. leaders; supervisors c. innovators; coordinators d. planners; doers

d. planners; doers

The clarification of authority, responsibility, reporting lines, and performance standards among individuals at each level of the organization is referred to as a. core competencies. b. the QID. c. organizational governance. d. the organizational structure.

d. the organizational structure.

Which of the following is a proper description of a tree diagram? a. A tool for organizing a large number of ideas, opinions, and facts relating to a broad problem or subject area b. A method for mapping out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions c. A tool to take data and arrange them to display quantitative relationships among variables to make them more easily understood and analyzed d. A tool to map out the paths and tasks necessary to complete a specific project or reach a specified goal

d. A tool to map out the paths and tasks necessary to complete a specific project or reach a specified goal

Which of the following is NOT considered in strategic human resource plans? a. Redesign of the work organization to increase empowerment and decision-making or team-based participation b. Partnerships with educational institutions to help ensure the future supply of well-prepared employees c. Initiatives to foster knowledge sharing and organizational learning d. Initiatives to reduce collective bargaining through union involvement

d. Initiatives to reduce collective bargaining through union involvement

In the policy deployment process, the _____ forms the basis for shorter-term planning. a. operational plan b. organizational objective c. mission statement d. long-term strategic plan

d. long-term strategic plan