Question 1

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) Adopting aggressive management efforts to eliminate stress,anxiety,and job insecurity from the work environment.
B) Utilizing extensively such nonmonetary incentives as frequent words of praise (or constructive criticism),special recognition at company gatherings,and stimulating assignments.
C) Providing opportunities for high-performing employees to transfer to attractive locations.
D) Providing opportunities for rapid promotion (or the risk of being sidelined in a routine job).
E) Providing performance bonuses and reward incentives.

Accepted Answer

Adopting aggressive management efforts to eliminate stress, anxiety, and job insecurity may not be effective in gaining employees' wholehearted commitment because it may create a sense of entitlement among employees, leading to a lack of motivation and accountability. Instead, creating a challenging and supportive work environment with opportunities for recognition, advancement, and incentives would be more likely to inspire commitment from employees. Thus, option A is not a good choice.

Question 2

Information systems provide managers with a means for:
A) monitoring up-to-the-minute and daily team performance in real time.
B) staying on top of implementation initiatives and daily operations as well as the performance of empowered workers to see that they are acting within specified guidelines.
C) monitoring daily and weekly operating statistics.
D) All of these.
E) None of these.

Accepted Answer

Information systems provide managers with all of these benefits, including monitoring team performance in real time, overseeing implementation and daily operations, and monitoring operating statistics.

Question 3

A no-pressure/no-adverse-consequences work environment does not necessarily lead to:
A) superior strategy execution or operating excellence.
B) satisfactory outcomes because there is always a cadre of ambitious people who relish the challenge.
C) workforce morale issues.
D) establishing more positive than negative motivational reward elements.
E) None of these,because it depends on the organization's motivational approaches.

Accepted Answer

The answer of A no-pressure/no-adverse-consequences work environment does not necessarily...

Question 4

A motivation and incentive system that is aimed at spurring stronger employee commitment to good strategy execution:
A) should focus on incorporating more positive than negative motivational elements.
B) should be tied first and foremost to whether employees satisfactorily perform their assigned duties in an ethical and honorable manner.
C) must involve deliberately assigning employees heavy workloads and tight deadlines.
D) needs to put top priority on making employees happy and secure in their jobs.
E) must avoid the potential for negative consequences if performance is subpar.

Accepted Answer

The answer of A motivation and incentive system that is...

Question 5

Which of the following is not integral to superior strategy execution and operating excellence?
A) Having real-time information systems that permit company managers to stay on top of implementation initiatives and daily operations and to intervene if things seem to be drifting off course.
B) Having state-of-the-art operating systems,information systems,and real-time data.
C) Having access to online systems that provide statistical information about operating activities.
D) Having the systems capability to identify and diagnose problems,so as to take corrective actions.
E) These are all integral pieces of the process of managing strategy execution and overseeing operations.

Accepted Answer

All the options listed are integral to superior strategy execution and operating excellence, making option E the correct choice.

Question 6

The areas that information systems need to cover include all but which one of the following?
A) Financial performance data.
B) Corporate culture data.
C) Customer data.
D) Operations data.
E) Employee data.

Accepted Answer

Information systems need to cover financial, customer, operations, and employee data as they are fundamental to business functions. However, corporate culture data is not necessary for information systems as it pertains more to human resources and management practices.

Question 7

A reward system that accentuates positive rewards for good performance:
A) works best in strong culture organizations,while negative motivational approaches and reward systems tend to be most successful in weak culture organizations.
B) is especially effective in aligning the well-being of organizational members with achieving the company's performance targets;reward systems with negative elements tend to be very dysfunctional in motivating employees.
C) seldom works very well because the threat of denying rewards to sub-par performers is typically the most powerful motivator.
D) works fine so long as 100 percent emphasis is placed on monetary incentives.
E) has considerable appeal because when cooperation is positively enlisted and rewarded,rather than strong-armed by orders and threats (implicit or explicit),people tend to respond with more enthusiasm,dedication,creativity,and initiative.

Accepted Answer

The statement that "when cooperation is positively enlisted and rewarded, rather than strong-armed by orders and threats (implicit or explicit), people tend to respond with more enthusiasm, dedication, creativity, and initiative" supports the effectiveness of a reward system that accentuates positive rewards for good performance. This approach aligns the well-being of organizational members with achieving the company's performance targets and is especially effective in strong culture organizations. Monetary incentives alone are not enough to motivate employees, and negative reward systems tend to be counterproductive.

Question 8

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 workforce morale and productivity,and simplifying the task of adopting best practices.
E) All of these.

Accepted Answer

Well-conceived, state-of-the-art information and operating systems enable better strategy execution and can strengthen organizational capabilities, potentially providing a competitive edge over rivals.

Question 9

Enlisting employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives is best done by:
A) having top executives commit to making employees the company's most valuable competitive asset.
B) developing core competencies in the use of TQM,Six Sigma programs,and business process reengineering.
C) resourceful and effective use of motivational incentives,both monetary and non-monetary.
D) clever and innovative use of benchmarking and best practices.
E) providing employees with a high degree of job security and attractive perks.

Accepted Answer

Resourceful and effective use of motivational incentives, both monetary and non-monetary, is the best way to enlist employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives. Providing employees with job security and attractive perks may help retain employees, but it may not necessarily ensure commitment to strategy execution. Developing core competencies in the use of TQM, Six Sigma programs, and business process reengineering, and clever and innovative use of benchmarking and best practices are important for achieving good strategy execution but may not necessarily ensure sustained and energetic commitment from employees. Having top executives commit to making employees the company's most valuable competitive asset may send a positive message to employees but may require more concrete actions to ensure their commitment to strategy execution.

Question 10

Which of the following is NOT a way in which managers can monitor the operating performance of employees to ensure superior strategy execution?
A) Scrutinizing daily and weekly operating statistics without resorting to constant over-the-shoulder supervision.
B) Utilizing self-managed work groups in peer-based control environments.
C) Removing some layer of management hierarchy and relying on strong peer pressure to keep team members operating between the white lines.
D) Leaving empowered employees to meet performance standards and guidelines.
E) Using information systems capability to monitor team performance in real time.

Accepted Answer

All the other options listed are ways in which managers can monitor the operating performance of employees to ensure superior strategy execution. Option D suggests that managers can leave empowered employees to meet performance standards and guidelines without constant monitoring, which is not a method of monitoring the operating performance of employees.

Question 11

In trying to gain employees' wholehearted commitment to good strategy execution and operating excellence,managers are well advised to use such incentives as:
A) providing attractive perks and fringe benefits.
B) giving frequent words of praise,special recognition at company gatherings,stimulating assignments,and opportunities to transfer to attractive locations.
C) creating a work atmosphere in which there is genuine caring and mutual respect among workers.
D) relying on opportunities for promoting from within (or the risk of being sidelined).
E) All of these.

Accepted Answer

In order to gain employees' wholehearted commitment to good strategy execution and operating excellence, managers should use a combination of incentives. Providing attractive perks and fringe benefits (option A) can be helpful, but it may not be enough to fully engage employees. Giving frequent words of praise, special recognition at company gatherings, stimulating assignments, and opportunities to transfer to attractive locations (option B) can help to motivate and inspire employees. Creating a work atmosphere in which there is genuine caring and mutual respect among workers (option C) is important because it helps to build trust and loyalty among employees, which can be a powerful motivator. Finally, relying on opportunities for promoting from within (or the risk of being sidelined) (option D) can be a key incentive for employees who are looking to advance their careers. Therefore, the best choice is option E, which includes all of these incentives.

Question 12

From the standpoint of promoting successful strategy execution,it is important that the firm's motivation and reward system:
A) be completely free of such elements as tension,pressure,anxiety,job insecurity,and tight deadlines-a no-pressure/no-adverse-consequences work environment is essential.
B) emphasize only positive types of rewards.
C) accentuate positive rewards but also carry the risk of an "up-or-out" policy for performance that does not meet expectations.
D) not deny rewards to employees who put forth good effort and try hard.
E) reduce job insecurity and give employees an incentive to stay busy and work hard.

Accepted Answer

A successful strategy execution often involves a balance of positive rewards and accountability measures, such as an "up-or-out" policy, to ensure performance meets expectations.

Question 13

To create a strategy-supportive system of rewards and incentives,a company must:
A) reward people for accomplishing results,not just for dutifully performing assigned tasks.
B) focus jobholders' attention and energy on what to do as opposed to what to achieve.
C) demand jobholders' 100 percent attendance since it guarantees results.
D) hold jobholders' responsible for their function and not burden them with being accountable.
E) All of these.

Accepted Answer

Rewarding people for accomplishing results rather than just performing tasks is crucial for creating a strategy-supportive system of rewards and incentives. When employees understand that their rewards are tied to achieving specific outcomes, they are more likely to focus on the company's overall strategic goals and objectives, rather than just going through the motions of performing their job duties.

B, C, and D are incorrect because they do not align with the idea of rewarding people for achieving results. Focusing on what to do rather than what to achieve does not help employees understand what is driving the company's strategic goals. Demanding 100 percent attendance and holding jobholders responsible for their function may be important, but they do not necessarily motivate employees to achieve strategic objectives.

Question 14

The broad areas that internal information business systems need to cover include:
A) financial performance data.
B) supplier/strategic partner data.
C) customer data.
D) operations data.
E) All of these.

Accepted Answer

Internal information business systems need to cover all of the broad areas mentioned, including financial performance data, supplier/strategic partner data, customer data, and operations data. This allows for a comprehensive view of the business and enables informed decision-making.

Question 15

Installing well-conceived,state-of-the-art support systems is an important managerial component of implementing and executing strategy because:
A) such systems are essential to being able to engage in effective benchmarking and continuous improvement.
B) such support systems not only enable better strategy execution but also strengthen organizational capabilities (perhaps enough to provide a competitive edge over rivals).
C) they help managers run a tight ship and preserve strong,centralized control over internal activities.
D) they are the basis for revamping value chains,boosting labor productivity,and reducing operating costs.
E) decentralized decision making and employee empowerment cannot work well without having well-conceived information and operating systems to accurately benchmark internally performed value chain activities against best-in-industry and best-in-class performers.

Accepted Answer

Well-conceived, state-of-the-art support systems not only enable better strategy execution but also strengthen organizational capabilities, which can provide a competitive edge over rivals. Option A is partially correct, as support systems are essential for effective benchmarking and continuous improvement, but this is not their only importance. Option C is incorrect, as centralizing control over internal activities is not necessarily a desirable outcome of support systems. Option D is also incorrect, as while support systems can aid in revamping value chains and reducing operating costs, they are not the basis for these actions. Option E is partially correct, as support systems do play a role in accurately benchmarking value chain activities, but decentralized decision making and employee empowerment can still be successful without them (although they may be less efficient).

Question 16

Reward and incentive systems serve as:
A) a direct stimulus for satisfying the basic expectations of the standard job and mechanisms.
B) an indirect motivational tool designed to convert employee commitment into high-powered incentives.
C) an indirect type of control mechanism that conserves on more costly control mechanisms of supervisory oversight.
D) a direct base-pay financial compensation mechanism that competes with rival companies' salary bands for similar work efforts.
E) All of these.

Accepted Answer

Reward and incentive systems are an indirect type of control mechanism that reduces the need for costly supervisory oversight. They are intended to motivate employees to improve their performance and contribute to achieving organizational goals by providing rewards and incentives. While they can also serve as a stimulus for satisfying the basic expectations of the standard job, they are not typically used as a direct base-pay financial compensation mechanism that competes with rival companies' salary bands. Additionally, they are not designed to convert employee commitment into high-powered incentives, as they are geared towards enhancing performance and productivity rather than commitment.

Question 17

The strategic role of a company's reward system is to:
A) compensate employees for performing their assigned duties in a diligent fashion.
B) boost employee morale in ways that create widespread job satisfaction.
C) enlist employees' commitment to successful strategy execution and operating excellence by rewarding them,both monetarily and non-monetarily,for their valuable contributions.
D) relieve managers of the burden of closely monitoring each employee's performance.
E) boost labor productivity and help lower the firm's overall labor costs.

Accepted Answer

The strategic role of a company's reward system is to enlist employees' commitment to successful strategy execution and operating excellence by rewarding them monetarily and non-monetarily for their valuable contributions. It is not just about compensating employees for their duties, boosting morale, relieving managers of monitoring, or reducing labor costs. The reward system is a tool to motivate employees to perform better, achieve the company's goals, and align their behavior with the organization's strategy.

Question 18

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 structure of rewards and incentives tied tightly to the achievement of the organization's strategic priorities.
E) aggressive use of TQM and Six Sigma quality control programs.

Accepted Answer

The structure of rewards and incentives tied tightly to the achievement of the organization's strategic priorities is the most effective tool for winning employee commitment to good strategy execution and operating excellence. This is because employees are motivated by rewards and incentives and they will put in more effort to achieve them. By aligning rewards and incentives with the organization's strategic priorities, management can encourage employees to focus on those priorities and achieve good results. However, it should be noted that other tools such as the establishment of strategy-supportive policies and procedures, empowering employees, setting stretch objectives, and the use of TQM and Six Sigma quality control programs are also important and can complement the use of rewards and incentives in winning employee commitment.

Question 19

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:
A) instill a deeply ingrained culture of operating excellence.
B) keep employees well-informed about the strides being made with continuous improvement.
C) unify the managerial efforts behind improving operating practices as a commendable goal.
D) combine the pursuit of financial objectives with the pursuit of its strategic objectives.
E) understand the barriers to installing new operating activities.

Accepted Answer

Instilling a deeply ingrained culture of operating excellence requires a long-term commitment and effort from the entire organization, which cannot be easily replicated by rivals. It involves creating a mindset where each employee is continuously focused on improving the processes and outcomes of the business. This culture is built over time through consistent communication and reinforcement of the organization's values and principles. Other choices may also be important, but A is the best answer as it addresses a more fundamental and difficult-to-replicate aspect of process management.

Question 20

Management's most powerful tool for mobilizing organizational commitment to competent strategy execution and operating excellence is the:
A) diligent and persistent use of benchmarking and best practices.
B) proper use of a reward structure with motivational incentives and rewards.
C) TQM and/or Six Sigma programs.
D) periodic inspirational speeches aimed at arousing employees' emotional energy.
E) process of providing employees with a high degree of job security (ideally,via a no-layoff policy).

Accepted Answer

The proper use of a reward structure with motivational incentives and rewards is the most effective way to mobilize organizational commitment to competent strategy execution and operating excellence. This creates a win-win situation where employees are motivated to perform better, and the organization achieves its goals. Benchmarking, TQM/Six Sigma, and inspirational speeches are all useful tools, but they are not as powerful as a well-designed reward structure. Providing job security is also important, but it is not as directly connected to mobilizing commitment as reward systems.

Quiz 11: Managing Internal Operations: Actions That Promote Good Strategy Execution

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?

Information systems provide managers with a means for:

A no-pressure/no-adverse-consequences work environment does not necessarily lead to:

A motivation and incentive system that is aimed at spurring stronger employee commitment to good strategy execution:

Which of the following is not integral to superior strategy execution and operating excellence?

The areas that information systems need to cover include all but which one of the following?

A reward system that accentuates positive rewards for good performance:

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

Enlisting employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives is best done by:

Which of the following is NOT a way in which managers can monitor the operating performance of employees to ensure superior strategy execution?

In trying to gain employees' wholehearted commitment to good strategy execution and operating excellence,managers are well advised to use such incentives as:

From the standpoint of promoting successful strategy execution,it is important that the firm's motivation and reward system:

To create a strategy-supportive system of rewards and incentives,a company must:

The broad areas that internal information business systems need to cover include:

Installing well-conceived,state-of-the-art support systems is an important managerial component of implementing and executing strategy because:

Reward and incentive systems serve as:

The strategic role of a company's reward system is to:

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

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

Management's most powerful tool for mobilizing organizational commitment to competent strategy execution and operating excellence is the: