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Which one of the following is not a tool that company managers can use to promote operating excellence in performing value chain activities?


A) Benchmarking
B) Adoption of best practices
C) TQM and/or Six Sigma quality control techniques
D) Business process reengineering
E) Adoption of standard industry techniques

F) A) and E)
G) B) and C)

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Discuss how the Six Sigma process of define,measure,analyze,improve,and control (DMAIC)works.What is the logic underlying the DMAIC process?

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Identify and describe two ways that policies and procedures aid the task of implementing and executing strategy?

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The backbone of identifying,studying,and implementing best practices is


A) business process reengineering.
B) a corporate culture that has a core value of operating excellence.
C) benchmarking.
D) Six Sigma quality control techniques.
E) innovative application of TQM techniques.

F) A) and B)
G) B) and D)

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Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically


A) use only positive rewards and never involve the use of tension, fear, job insecurity, stress, or anxiety.
B) strike a middle ground-entailing decidedly positive rewards for meeting or beating performance targets but also imposing sufficiently negative consequences when actual performance falls short of the target.
C) aim at creating a no-pressure/no-adverse-consequences work environment.
D) entail paying the highest wages and salaries in the industry and also stressing non-monetary rewards for high-performing employees.
E) put top priority on making employees happy and secure in their jobs.

F) B) and E)
G) A) and B)

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Management's most powerful tool for winning employee commitment to good strategy execution and operating excellence is


A) the establishment of strategy-supportive policies and procedures.
B) empowering employees and encouraging them to adopt best practices.
C) setting stretch objectives.
D) a system of rewards and incentives tied tightly to the achievement of the targeted strategic and financial performance.
E) aggressive use of TQM and Six Sigma quality control programs.

F) A) and D)
G) All of the above

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To obtain maximum benefits from benchmarking,best practices,reengineering,TQM,and Six Sigma programs aimed at facilitating better strategy execution,managers need to


A) start with a clear idea of what specific outcomes really matter, such as a Six Sigma defect rate or superior customer satisfaction, and then build a total quality culture that is genuinely committed to achieving these outcomes.
B) have annual contests to see which part of the company is making the greatest strides in approaching operating excellence.
C) strive for 100% control over the variability in how each and every value chain activity is performed.
D) have at least 50% of company personnel earn "green belts" in Six Sigma techniques.
E) build core competencies in TQM, Six Sigma, benchmarking, best practices adoption, and business process reengineering.

F) A) and D)
G) B) and C)

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While Six Sigma programs often improve the efficiency of many operating activities and processes,there is evidence that innovation can be stifled by Six Sigma programs.True or false? Explain.

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Which one of the following statements about total quality management (TQM) is false?


A) TQM aims at instilling enthusiasm and commitment to doing things right from the top to the bottom of the organization.
B) TQM produces significant results very quickly-very little benefit emerges after the first six months.
C) TQM doctrine preaches that there's no such thing as "good enough" and that everyone has a responsibility to participate in continuous improvement.
D) Effective use of TQM entails creating a corporate culture bent on continuously improving the performance of every task and every value-chain activity.
E) Total quality management (TQM) is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100 percent accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction.

F) B) and E)
G) A) and B)

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Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?


A) The reward system must be administered with scrupulous objectivity and fairness.
B) The payoff for meeting or beating performance targets must be a major, not minor, piece of the total compensation package.
C) The incentive plan should extend to all managers and all employees, not just top management.
D) Ways must be found to reward deserving non-performers who, for some reason, do not fare well under the incentive system.
E) Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.

F) B) and E)
G) A) and B)

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D

A useful guideline in designing strategy-facilitating policies and operating procedures is


A) to prescribe enough policies to give organizational members clear direction in implementing strategy and to place desirable boundaries on their actions, then empower them to act within these boundaries however they think makes sense.
B) that strictly-enforced policies work better than loosely-enforced policies.
C) that more policies/procedures work better than few policies/procedures and that strict enforcement always beats lax enforcement.
D) to let individuals act in an empowered and self-directed way, subject only to the constraint that their actions and behavior be ethical and in step with the corporate culture.
E) to prescribe enough policies and procedures that little is left to chance in performing value chain activities employees should have no leeway to do things in a manner that deviates from the company's best practices standard.

F) B) and C)
G) B) and D)

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Give three examples of support systems that a company can install to support the execution of its strategy.

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Which one of the following is not likely to be effective in trying to gain employees' wholehearted commitment to good strategy execution and operating excellence?


A) Aggressive management efforts to eliminate stress, anxiety, and job insecurity from the work environment
B) Extensive use of such nonmonetary carrot-and-stick incentives as frequent words of praise (or constructive criticism) , special recognition at company gatherings, and being given stimulating assignments
C) More (or less) job security, and opportunities for high-performing employees to transfer to attractive locations
D) Opportunities for rapid promotion (or the risk of being sidelined in a routine job)
E) Performance bonuses

F) C) and E)
G) C) and D)

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An important consideration in designing a strategy-supportive reward system is to


A) link the payment of all monetary rewards to the company's profitability.
B) employ incentives that will help motivate employees to put in long hours and sacrifice personal ambitions and aspirations to pursue the priorities of management.
C) choose those types of rewards and incentives that will focus employees' attention on total customer satisfaction.
D) make across-the-board wage and salary increases the cornerstone of monetary rewards.
E) make non-monetary rewards and recognition an integral part of the reward system.

F) A) and E)
G) C) and D)

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In creating a strategy-supportive reward structure,it is important to define jobs and assignments in terms of the results to be accomplished not just in terms of the duties to be performed.True or false? Explain and justify your answer.

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Prescribing policies and operating procedures aids the task of implementing strategy by


A) helping ensure that worker eligibility for incentive bonuses is measured consistently and awarded fairly.
B) fostering the use of best practices, TQM, Six Sigma, and continuous improvement efforts.
C) acting as a powerful lever for changing employee attitudes about the need for a different incentive and reward system.
D) helping build employee commitment to strengthening the company's core competencies and competitive capabilities.
E) placing limits on independent action and painting new white lines to steer the actions and behavior of company personnel in a manner that is more conducive to good strategy execution and operating excellence.

F) A) and B)
G) A) and C)

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Managers charged with implementing and executing strategy need to be deeply involved in the budgeting and resource allocation process because


A) too little funding deprives organizational units of the resources to carry out their piece of the strategic plan and too much funding wastes organizational resources.
B) a change in strategy nearly always calls for budget reallocations and resource shifting.
C) without major budget reallocations there is no chance for the desired core competencies and organizational capabilities to emerge.
D) lean,carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash.
E) Both A and B.

F) A) and B)
G) A) and C)

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Six Sigma quality control


A) is a strategy-implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs.
B) consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process.
C) consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process.
D) consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions.
E) is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs.

F) D) and E)
G) B) and C)

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C

Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments,companies have found that


A) it is necessary to give these functional departments the freedom to collaborate closely with each other to achieve the desired degree of coordination.
B) it is necessary to outsource those activities that are fragmented to strategic partners in order to achieve the needed coordination.
C) there's merit in using business process reengineering to pull the pieces of strategy-critical processes out of different departments and unify their performance in a single department or cross-functional work group that has charge over the whole process.
D) TQM is a potent way to reengineer the work effort, avoid the shortcomings of a functional organization structure, and achieve rapid-response capability.
E) it makes good organizational sense to combine those functional departments where fragmentation is a problem into a single department.

F) C) and E)
G) B) and E)

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Well conceived,state-of-the-art information and operating systems


A) are essential because business process reengineering efforts, TQM, Six Sigma, and benchmarking programs can't be carried out effectively without them.
B) not only enable better strategy execution but also strengthen organizational capabilities (perhaps enough to provide a competitive edge over rivals) .
C) make it simple and easy to spot cost overruns and inefficiencies.
D) are valuable tools for shortening a company's value chain, boosting work force morale and productivity, and simplifying the task of adopting best practices.
E) All of these.

F) A) and C)
G) D) and E)

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