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