Business Strategy - Ch 12

Nurturing a result-oriented work climate can prompt employees to _____.

maximize their efforts and produce results that were thought to be beyond the company's capacity

Companies with a rich tradition ______.

may find that they can rely heavily on word of mouth to embed cultural norms in the workplace

In order to mobilize the effort for excellence in strategy execution, managers who consistently fail to deliver results should be ______.

replaced with a more effective manager

By attending company ceremonies and events, top executives can _____.

take advantage of an opportunity to instill new values and praise culture-building behaviors

An effective long-term method for motivating employees to make productive contributions to the strategy execution process is ______.

to take measures to establish a strong culture in the company

In large corporations, fixing a problem culture and instilling new attitudes and behaviors can be expected to take ______.

two to five years

Which of the following organizations would be especially vulnerable to insular thinking?

An industry leader that has become accustomed to its success

Standout traits at a company with a high-performance culture include which of the following?

- A "can-do" spirit - A results-oriented work climate

Which of the following are examples of how company culture can contribute to the successful implementation of strategy?

- A culture that celebrates sustainable environmental practices is conducive to a strategy promoting the use of energy-saving technologies. - A culture that prides itself on customer service is conducive to the execution of a strategy to improve customer satisfaction.

Which of the following statements depict scenarios that are likely to occur in a company with a change-resistant culture?

- An employee worries that the internal changes required by a new strategy threaten her job security. - An employee with an idea thinks better of sharing the concept because she feels it will be met with skepticism.

What do managers need to do when leading the process of strategy execution?

- Apply appropriate pressure to achieve operational excellence - Address mistakes and shortcomings to ensure that targets are met - Monitor programs closely

Managers seeking to develop high-performance cultures are likely to try to get the best out of employees by doing which of the following?

- Attempting to match workers with the tasks they do best - Emphasizing the value of learning from mistakes and moving forward

How can management make a compelling case for culture change?

- By convincing workers and managers that certain new behaviors will improve company performance - By demonstrating why certain embedded practices impede strategy

What are ways in which incompatible subcultures can undermine strategy execution?

- By creating disparate approaches to strategy execution - By blocking collaboration and teamwork among departments

Which of the following is likely to send the clearest signal that management is serious about changing company culture?

Introducing a series of actions that are unmistakably intended to initiate culture change

Which of the following statements about the duration of the culture change process is true?

It often takes less time to build a new culture from scratch than to change an entrenched culture.

Effective culture change leaders tend to be good at which of the following?

Telling stories that connect new values to everyday practices

What is the basis for leading the strategy execution process successfully?

Understanding the requirements of good strategy execution

What is the last step in changing an unhealthy company culture?

Undertaking forceful actions that demonstrate a commitment to changing the culture

What does the leadership technique known as managing by walking around involve?

Visiting various company facilities and talking with company personnel at different organizational levels

When are company personnel most likely to be receptive to new assignments?

When impending changes do not threaten their job security

When are company personnel most likely to embrace new work practices?

When they understand how they will benefit from those changes

The hallmark of a strong-culture company is _____.

a company-wide emphasis on firmly established values, practices, and employee behaviors that moderate the workplace climate

Which of the following statements about company culture in relation to support strategy execution is true?

A culture that is in sync with a company's strategy focuses employee attention in a way that improves strategy execution.

Which of the following is an example of a story that could potentially help foster a positive corporate culture?

A story about an employee who kept the store open after hours so a customer could find a birthday present for a chronically ill parent

What do managers need to do when correcting strategy execution in response to a crisis?

Act quickly but also take the time to assess the situation, review data, and evaluate options

What must managers do to have employees produce innovative ideas?

Create a culture in which innovation can flourish

What is the most important factor in bringing about a change in company culture?

Effective leadership at the top of the organization

What commonly occurs when company culture is in conflict with company strategy?

Employees may resist performing the actions that will enhance strategy execution.

True or false: When attempting to change a problem culture, top executives should move slowly and use a light touch when introducing new behaviors.

False

What is the first step in changing an unhealthy company culture?

Identifying the aspects of the unhealthy culture that impede strategy execution

How can value statements and codes of ethics contribute to culture-building?

- Creating a work environment in which personnel share strongly held convictions about how the company should conduct business - Providing guidance and communicating which behaviors are acceptable and which behaviors are unacceptable

How can top-level executives engage the workforce?

- Delegating authority to managers below them - Encouraging employees to act on their initiative and contribute ideas

What does making corrections during the strategy execution process depend on?

- Determining the necessary course of action - Effective implementation of corrective measures - Analyzing the situation

What is a culture aligned with company strategy more likely to accomplish?

- Enhance productivity and increase the likelihood of hitting targets - Energize employees and promote buy-in - Guide the decision making of employees

Which of the following people-management practices are most likely to energize a workforce?

- Giving employees reason to take pride in their work - Promoting team work and collaboration

For adaptive cultures to thrive in the face of ongoing change, it is crucial that organization members view proposed changes as which of the following?

- In the interests of stakeholders - Consistent with core values - Legitimate

Which of the following shifting internal conditions could provoke a change in company culture?

- Influx of new employees - Top-executive turnover

Which of the following practices demonstrate a sincere commitment to culture change?

- Making new hires based in part on the extent to which candidates exhibit culturally desirable traits - Providing financial incentives for employees who demonstrate desired new behaviors - Replacing managers who have resisted necessary cultural changes

What measures can a company take to stress the importance of employee contributions?

- Nurturing a results-oriented work climate, where performance standards are high - Referring to employees in complimentary symbolic terms, such as "partners" or "associates"

How should managers motivate employees to do their part in executing strategy in a weak-culture company?

- Offer financial incentives for reaching company goals - Strengthen systems of monitoring employee activity to ensure that their behavior is aligned with company strategy

Which of the following statements about correcting flawed company strategy are accurate?

- Sometimes poor performance is the result of flawed strategy rather than weak strategy execution. - When a strategy is failing, it is the leader's responsibility to begin the process of correcting the problems.

What does managing by walking around give leaders a chance to do?

- Stay updated on progress and problems - Make a face-to-face connection with workers

Which of the following statements about corporate subcultures are accurate?

- Subcultures are common in companies, especially in large organizations with numerous divisions and departments. - Subcultures are likely to undermine company success when they promote different approaches to people management.

What is a manager in a company with an adaptive culture likely to do?

- Take prudent risks and fund new initiatives - Encourage new ideas and suggestions

Which of the following are appropriate criteria to determine whether a company has good strategic leadership?

- The company has a good strategy and business model. - The company is meeting or beating targets. - The company's strategy is being executed competently.

A company with a tradition of executing environmentally sustainable strategies decides to expand operations into a country with lenient emissions standards. Which of the following are likely outcomes?

- The company morale drops because employees may be reluctant to adopt behaviors that run counter to embedded company practices. - The management faces significant challenges in overcoming resistance to strategy execution.

Which of the following statements about problem cultures are accurate?

- The more entrenched a problem culture is the more likely that culture is to disrupt strategy execution. - The undesirable traits of a problem culture should be eliminated as quickly as possible.

What typically occurs in a company with a weak culture?

- There may be less emotional commitment to achieving company objectives. - There is little compulsion to abide by company norms.

What are the effects of oft-repeated stories that develop company culture?

- They encourage other employees to act in a way that continues company traditions. - They demonstrate to new employees the extent of the company's commitment to its core values.

Which of the following are true about companies that are afflicted by politicized cultures?

- They have managers who pursue goals that may run counter to company goals. - They experience regular infighting.

Which of the following are reasons that symbolic actions are an important part of the process of creating culture?

- They help establish the connection between culture and strategy. - They are effective ways for top executives to lead by example. - They demonstrate that management is prepared to "walk the talk."

Which of the following cultural traits are considered unhealthy?

- Trendy, popular subcultures - Hostility to change - Politicized decision making

When are employees more likely to produce new ideas?

- When they are given time to brainstorm. - When they have the autonomy to offer contributions. - When they receive large and visible rewards for ideas that contribute to the company's success.

Which of the following statements about high-performance cultures is true?

All employees are expected to maintain focus on and demonstrate passion for what needs to be done.

Executives at companies with greed-driven cultures are likely to exhibit which of the following negative traits?

Arrogance

Which of the following statements is correct regarding successful culture change?

Middle managers and frontline supervisors play a key role in generating support for new behaviors.

What should managers consider doing in order to create and maintain a high-performance culture?

Reinforcing constructive behaviors

Which of the following could be considered an effective and positive symbolic action for management of a company that makes environmentally green products?

Replacing the older company car with a hybrid vehicle

Which of the following scenarios would be the most closely associated with a company having a politicized corporate culture?

Strategy execution stalls because organizational units fail to collaborate effectively.

When discussing the need to change company culture with managers and frontline supervisors, top executives should be certain to point out which of the following and why?

The connection between adopting new behaviors and achieving future success in order to stress the benefits of the changes

Which of the following statements is true concerning the process of strategy execution?

The process of strategy execution is continuous and requires regular looping back to fine-tune procedures and make adjustments.

How do most managers act when they have time to correct mistakes?

They broaden their understanding of the problem, strive for consensus, and pursue an agreed-upon course of action.

What is typically true of companies with greed-driven cultures?

They may pursue overly ambitious financial targets.

In general, what is true concerning unhealthy cultural traits?

They negatively influence company performance.

Who is responsible for taking the lead in driving the pace of progress throughout the strategy execution process?

Top executives

True or False: Honoring people who exhibit important culture-building behaviors at company ceremonies is an effective way to create a productive work culture.

True

The chief characteristic of an adaptive business culture is a willingness to

accept the challenge of implementing new strategies

In order to drive the strategy execution process, top executives need to ______.

apply constructive but unrelenting pressure on all organizational units to execute strategy

Managers in companies with change-resistant cultures ______.

are often motivated by a desire to avoid mistakes

A company that is plagued by insular thinking is likely to ______.

become overly reliant on in-house personnel to drive all facets of innovation

Average performers in a company need to be ______.

encouraged to deliver better results

In order for a company culture to assist with the strategy execution process, the culture should be ______.

in sync with the chosen strategy