Question 1

What percent of large U.S.companies have CEO succession plans in place?
A) 10
B) 25
C) 50
D) 75
E) 90

Accepted Answer

According to a study by consulting firm Heidrick & Struggles, approximately 50% of large U.S. companies have CEO succession plans in place. While some companies may have informal plans or contingency plans, having a formal CEO succession plan in place is important for the long-term health and stability of the company.

Question 2

Training is especially important in reinforcing the customer service culture at Zappos where
A) new employees are offered money to quit.
B) employees are just interested in getting a paycheck.
C) training does not include any tests.
D) a cost leadership strategy is being used.
E) little screening of employees occurs.

Accepted Answer

Zappos offers new employees $2,000 to quit during the training period to ensure that only those who truly believe in the company's customer service culture remain. This reinforces the importance of the customer service culture and the commitment of employees to it.

Question 3

What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations,especially when the past CEO's strategy continued to be successful?
A) They tended to have less loyalty than former CEOs, switching companies at a faster pace.
B) They tended to have the same functional specialization as the former CEO.
C) They tended to be more aggressive in their risk-taking than former CEOs.
D) They tended to rely more on skills developed through group decision-making.
E) They tended to be turnaround specialists.

Accepted Answer

The study revealed that successful CEOs tended to have the same functional specialization as their predecessors. This suggests that companies valued continuity and expertise in a particular area, rather than bringing in someone with a completely different skill set.

Question 4

Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.

Accepted Answer

The answer of Successful analyzer firms tend to be headed...

Question 5

Assessment centers have been able to accurately predict subsequent
A) job satisfaction.
B) job performance and career success.
C) organizational commitment.
D) organizational attachment.
E) management longevity.

Accepted Answer

Assessment centers have been found to be reliable and valid predictors of job performance and career success. They use a variety of methods, such as simulations and interviews, to assess an individual's skills, abilities, and potential for job success. While job satisfaction, organizational commitment, and attachment may be indirectly related to job performance, assessment centers focus specifically on predicting an individual's ability to perform effectively in their job. Management longevity is not specifically measured or predicted by assessment centers.

Question 6

All of the following reflect characteristics of a successful integration manager EXCEPT
A) a deep knowledge of the acquiring company.
B) a flexible management style.
C) an ability to work in cross-functional project teams.
D) a propensity to hire like-minded people.
E) a willingness to work independently.

Accepted Answer

A successful integration manager should not have a propensity to hire like-minded people as this can limit diversity and impede problem-solving. Diversity of thought and ideas is crucial for a successful integration.

Question 7

Which type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner

Accepted Answer

A chief executive officer with a great deal of experience in the particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth. Such an industry expert would possess the knowledge and skills to identify and develop growth opportunities, as well as efficiently manage resources and navigate industry-specific challenges. Therefore, the best choice would be a dynamic industry expert.

Question 8

Which one of the following is not one of the activities and techniques typically used in an assessment center to evaluate a person's suitability for advancement?
A) leaderless group discussions
B) management games
C) in-basket exercises
D) IQ tests
E) case analyses

Accepted Answer

While IQ tests may be used in selection and hiring processes, they are not typically used in assessment centers for evaluating a person's suitability for advancement. The other options (leaderless group discussions, management games, in-basket exercises, and case analyses) are commonly used in assessment centers for this purpose.

Question 9

According to the Association for Talent Development,the average annual expenditure per employee on corporate training and development is
A) $0.
B) $362.
C) $748.
D) $1,229.
E) $2,361.

Accepted Answer

According to the Association for Talent Development, the average annual expenditure per employee on corporate training and development is $1,229.

Question 10

Executives with a particular mix of skills and experiences may be classified as an executive type and paired with
A) a specific personal characteristic.
B) a specific corporate strategy.
C) a certain educational background.
D) a specific experience background.
E) a specific industry.

Accepted Answer

The answer of Executives with a particular mix of skills...

Question 11

The hiring of new people with new skills,firing of people with inappropriate or substandard skills,and/or training existing employees to learn new skills are included in the process of
A) training.
B) staffing.
C) structuring.
D) operating.
E) financing.

Accepted Answer

Hiring new people and firing inadequate employees fall under staffing, which is the process of finding, hiring, and managing employees. Training also falls under staffing as it involves developing and improving employee skills. Structuring involves the organization's design and arrangement, operating requires specific processes, and financing deals with financial management.

Question 12

Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner

Accepted Answer

An analytical portfolio manager is suitable for a corporation following a diversification strategy because they have the skills to manage and analyze a diverse range of products and investments, aligning with the needs of a diversified company.

Question 13

Which of the following statements is not true concerning the career life cycle for top executives?
A) During the early years of executives' tenures, they tend to experiment extensively with product lines to learn about their business.
B) It is possible that a current CEO may not be appropriate to implement a new strategy.
C) The harvest stage occurs when executives' accumulated knowledge allows them to reduce experimentation and increase performance.
D) There is an inverted U-shaped relationship between top executive tenure and the firm's financial performance.
E) The length of time spent in each stage is relatively stable for all CEOs.

Accepted Answer

The statement "The length of time spent in each stage is relatively stable for all CEOs" is not true. The length of time spent in each stage can vary greatly among top executives, depending on individual experiences and circumstances.

Question 14

Successful defender firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.

Accepted Answer

Defender firms are companies that focus on maintaining their existing market share and protect their position from competitors. Therefore, the firm's CEO needs to have a strong understanding of the core functions such as accounting/finance and manufacturing/production, as well as general management skills to lead the company effectively. Marketing/sales and other areas mentioned may also be important, but not as critical as the functions listed in option B.

Question 15

To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities,many corporations move people from one job to another utilizing the technique of
A) job design.
B) job specialization.
C) job rotation.
D) job enlargement.
E) job enrichment.

Accepted Answer

Job rotation is the technique of moving employees from one job to another to provide them with a variety of experiences and skills. This helps them gain a broader perspective on the organization and acquire a skillset that may be required for future roles. Job specialization (B) is the opposite of job rotation and involves employees performing repetitive and narrowly defined tasks. Job enlargement (D) involves increasing the scope of an employee's current job rather than moving them to a different role. Job enrichment (E) involves giving employees more autonomy and decision-making power in their current job. While job enrichment can be beneficial for employee motivation and engagement, it does not necessarily provide the variety of experiences that job rotation does. Therefore, job rotation is the best choice for ensuring employees are gaining the appropriate mix of experience.

Question 16

Which type of chief executive officer with a conservative style,a production or engineering background,and experience with controlling budgets,capital expenditures,inventories,and standardization procedures would be appropriate for a corporation following a stability strategy?
A) professional liquidator
B) dynamic industry expert
C) turnaround specialist
D) analytical portfolio manager
E) cautious profit planner

Accepted Answer

A chief executive officer with a conservative style and a background in production or engineering would value stability and efficiency. Their experience with controlling budgets, capital expenditures, inventories, and standardization procedures would be useful in maintaining the corporation's status quo and cautiously planning for profits.

Question 17

The process of replacing a key top manager is called
A) executive succession.
B) executive placement.
C) executive strategy.
D) executive search.
E) executive outside succession.

Accepted Answer

Executive succession refers to the process of replacing or planning for the replacement of a key top manager within an organization. This process is crucial for ensuring leadership continuity and organizational stability.

Question 18

Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of
A) research/engineering and general management.
B) accounting/finance, manufacturing/production, and general management.
C) marketing/sales.
D) human resources and strategy.
E) purchasing and logistics.

Accepted Answer

Prospector firms are known for their innovation and focus on new opportunities, hence they require leadership that has a strong grounding in research and engineering. CEOs with a background in general management are also necessary to ensure smooth functioning of the organization. Accounting/finance and manufacturing/production are important, but not as critical as research and engineering for innovating and exploring new opportunities. The expertise of human resources and strategy is not directly related to prospecting new opportunities, while purchasing and logistics are more operational in nature rather than strategic. Therefore, option A is the best choice.

Question 19

One study reported the percentage of senior executives that left a firm after a new CEO took office was ________ when the new CEO was an insider and ________ when the new CEO was an outsider.
A) 35; 10
B) 20; 34
C) 30; 30
D) 20; 10
E) 40; 20

Accepted Answer

According to the information given in the question, the percentage of senior executives that left a firm after a new CEO took office was 20% when the new CEO was an insider and 34% when the new CEO was an outsider. Therefore, the best choice is B.

Question 20

Research suggests that boards of directors tend to look outside the firm for the next CEO under which of the following circumstance?
A) when the company is prosperous
B) when the company is having R&D challenges
C) when the company is in trouble
D) when the company needs to follow a stability strategy
E) when the company needs to expand in order to continue growing

Accepted Answer

Research suggests that boards of directors tend to look outside the firm for the next CEO when the company is in trouble. In times of crisis, directors may view internal candidates as having contributed to the problems and may feel that an external candidate is needed to bring a new perspective and a different skill set to turn things around.

Quiz 11: Strategy Implementation: Staffing and Directing

What percent of large U.S.companies have CEO succession plans in place?

Training is especially important in reinforcing the customer service culture at Zappos where

What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations,especially when the past CEO's strategy continued to be successful?

Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of

Assessment centers have been able to accurately predict subsequent

All of the following reflect characteristics of a successful integration manager EXCEPT

Which type of chief executive officer with a great deal of experience in that particular industry would be appropriate for a corporation following a concentration strategy emphasizing vertical or horizontal growth?

Which one of the following is not one of the activities and techniques typically used in an assessment center to evaluate a person's suitability for advancement?

According to the Association for Talent Development,the average annual expenditure per employee on corporate training and development is

Executives with a particular mix of skills and experiences may be classified as an executive type and paired with

The hiring of new people with new skills,firing of people with inappropriate or substandard skills,and/or training existing employees to learn new skills are included in the process of

Which type of chief executive officer who is highly knowledgeable in other industries and can manage diverse product lines would be appropriate for a corporation following a diversification strategy?

Which of the following statements is not true concerning the career life cycle for top executives?

Successful defender firms tend to be headed by CEOs with backgrounds in the areas of

To ensure employees are gaining the appropriate mix of experience to prepare employees for future responsibilities,many corporations move people from one job to another utilizing the technique of

Which type of chief executive officer with a conservative style,a production or engineering background,and experience with controlling budgets,capital expenditures,inventories,and standardization procedures would be appropriate for a corporation following a stability strategy?

The process of replacing a key top manager is called

Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of

One study reported the percentage of senior executives that left a firm after a new CEO took office was when the new CEO was an insider and when the new CEO was an outsider.

Research suggests that boards of directors tend to look outside the firm for the next CEO under which of the following circumstance?