Question 1

In agency theory, _____ is a primary mechanism used by both parties to maintain and govern the relationship.

Accepted Answer

Monitoring is a primary mechanism used by both parties in agency theory to maintain and govern the relationship. It involves the principal (employer) overseeing the actions and decisions of the agent (employee) to ensure they align with the principal's interests. Monitoring can take various forms, including performance evaluation, regular reporting, and direct observation. Effective monitoring helps mitigate the risk of the agent shirking their responsibilities or engaging in opportunistic behavior, which can harm the principal's financial and reputational interests.

Question 2

In the _____ organizational model, work is reduced to elementary tasks with a focus on efficiency, conformity, and compliance.

Accepted Answer

The mechanistic organizational model is characterized by work being broken down into routine and repetitive tasks, with a strong emphasis on efficiency, standardization, and obedience to authority. This approach is akin to a machine where each part performs a specific function.

Question 3

Define the four stages in a learning cycle.

Accepted Answer

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Question 4

Describe the different types of continuous improvement.

Accepted Answer

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Question 5

What is performance excellence?

Accepted Answer

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Question 6

The _____ model views an organization as a collection of cooperative agreements entered into by individuals with free will.

Accepted Answer

The cultural model emphasizes on the shared beliefs, values, and assumptions of individuals in an organization. It views organizations as social systems with symbols, rituals, and myths that provide meaning and coherence to its members. The mechanistic model sees organizations as machines with clear hierarchies, defined roles, and standardized procedures. The organismic model perceives organizations as living systems that adapt to their environment and have the capacity for growth and change. The environmental model views organizations as open systems that are influenced by and interact with the external environment. However, none of these models give importance to free will, which is a key feature of the cultural model.

Question 7

The _____ model assumes that systems goals, such as the need to survive, displace performance goals, such as profit.

Accepted Answer

The organismic model assumes that the system goals, which are related to the survival and well-being of the organization, take precedence over performance goals such as profit. This is because the organization must first meet its basic needs before it can focus on achieving performance goals.

Question 8

Briefly describe the quality dimensions of manufactured products.

Accepted Answer

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Question 9

Illustrate the differences between TQ and agency theory.

Accepted Answer

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Question 10

According to Noriaki Kano's classification of customer needs, _____ new or innovative features that customers do not expect in a product or service.

Accepted Answer

According to Noriaki Kano's classification of customer needs, delighters are new or innovative features that customers do not expect in a product or service. Satisfiers refer to features that meet basic customer requirements, dissatisfiers are features that, when absent, cause dissatisfaction, and essentials are features that are expected by customers and will not necessarily increase satisfaction when present.

Question 11

Total Quality shares the most similarities with the _____ organizational model.

Accepted Answer

Total Quality is highly focused on continuous improvement, employee involvement, and a decentralized decision-making process. This is similar to the organismic model, which emphasizes flexibility, adaptability, and organic structures that can respond quickly to changes in the environment. The cultural model emphasizes shared values and beliefs, the environmental model emphasizes external factors and the mechanistic model emphasizes a highly structured and centralized approach which are not as closely related to Total Quality.

Question 12

What are the points organizations have to look into beyond product orientation to ensure service quality?

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Question 13

Describe the three levels at which data and information support analysis is disseminated and aligned within an organization.

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Question 14

Agency theory makes the assumption that individuals in agency relationships are _____ and will always take actions to enhance their self-interests.

Accepted Answer

Agency theory is based on the assumption that individuals act rationally and in their own self-interests when making decisions, known as utility maximization. This assumption is necessary for establishing the principal-agent relationship and identifying potential agency costs. Therefore, choice A, utility-maximizers, is the best answer.

Question 15

How is empowerment related to employee engagement?

Accepted Answer

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Question 16

According to Noriaki Kano's classification of customer needs, _____ are the needs that customers say they want.

Accepted Answer

According to Kano's model, satisfiers are the needs that customers express and expect to be fulfilled in a product or service. These needs are typically related to the basic functionality and performance of the product or service and are directly measurable by customers.

Question 17

Describe the three major organizational models.

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Question 18

Sylvia orders a security system to be installed at her house. After placing the order, the company took three days to install it. The time taken for the order to be delivered is referred to as:

Accepted Answer

Cycle time refers to the total time from the beginning to the end of a process, in this case, the time taken from placing the order to the completion of the installation.

Question 19

Describe in brief the most important dimensions of service quality.

Accepted Answer

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Quiz 1: Introduction to Quality and Performance Excellence