Deck 10: Strategy Implementation: Staffing and Directing

Question 1

A dynamic industry expert is someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product lines.

Answer 1

False

Question 2

Staffing issues can involve hiring new people with new skills, firing people with inappropriate or substandard skills, and/or training existing employees to learn new skills.

Answer 2

True

Question 3

To successfully downsize, companies must invest in the remaining employees.

Answer 3

True

Question 4

There is a very strong connection between strategy and training at successful organizations.

Question 5

Succession planning has become the most important topic discussed by boards of directors.

Question 6

Staffing requirements are likely to follow a change in strategy.

Question 7

Firms in trouble seldom choose outsiders to lead them.

Question 8

Executive succession is the process of replacing a key top manager.

Question 9

To improve organizational learning, many multinational corporations are providing their managers with international assignments as long as five years.

Question 10

Analyzers tend to have CEOs with a marketing/sales background.

Question 11

Training and development can be especially important for organizations implementing an overall low cost or differentiation strategy, but not for those in retrenchment.

Question 12

Research indicates that a multinational corporation performs at a higher level when its CEO has international experience.

Question 13

A good retrenchment strategy can be implemented well in terms of organizing, but poorly in terms of staffing.

Question 14

Companies that pursue related diversification strategies through internal development make greater use of interdivisional transfers of people than do companies that grow through unrelated acquisitions.

Question 15

European multinational corporations seldom use people with an international orientation to staff their management positions.

Question 16

Chandler proposed that the most appropriate CEO for a firm remains constant as the company proceeds through its life cycle.

Question 17

IHOP's CEO, Julia Stewart, built a reputation as a turnaround specialist.

Question 18

Downsizing refers to the planned elimination of positions or jobs; it is often used to implement retrenchment strategies.

Question 19

A professional liquidator was the executive type called in to Montgomery Ward when the company declared bankruptcy for the second time.

Question 20

Research indicates that companies undertaking cost-cutting programs are four times more likely than others to cut costs again, typically by reducing staff.

Question 21

When Boeing created a separate unit to house the newly acquired operations of McDonnell-Douglas, they were managing the different cultures through separation.

Question 22

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 likeminded people.
E) a willingness to work independently.

Question 23

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 the process of

A) training.
B) staffing.
C) structuring.
D) operating.
E) financing.

Question 24

The key to the effective management of change is communication.

Question 25

One objective of TQM is better, less variable quality of the product and service.

Question 26

TQM is an operational philosophy committed to customer satisfaction and continuous improvement.

Question 27

Corporate culture does not necessarily have to support the strategy of the firm.

Question 28

An essential ingredient of MBO is that an employee must be just as concerned with pleasing the internal customer as the external customer.

Question 29

Integration involves the disintegration of one company's culture resulting from unwanted and extreme pressure from the other to impose its culture and practices.

Question 30

TQM links organizational objectives and the behavior of individuals.

Question 31

While an organization's culture can exert a powerful influence on the behavior of all employees, it can seldom affect a company's ability to shift its strategic direction.

Question 32

According to the American Society of Training and Development, the average annual expenditure per employee on corporate training and development is

A) $0.
B) $362.
C) $748.
D) $1,182.
E) $2,361.

Question 33

According to Hofstede's dimensions of national culture, long-term orientation is the extent to which society is oriented toward the long versus the short term.

Question 34

An action plan states what actions are going to be taken, by whom, during what time frame, and with what expected results.

Question 35

One component of an effective action plan is the determination of the expected financial and physical consequences of each action.

Question 36

Assimilation involves the relatively balanced give-and-take of culture and managerial practices between the merger practices.

Question 37

According to Hofstede's dimensions of national culture, uncertainty avoidance is the extent to which a society accepts an unequal distribution of power in organizations.

Question 38

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.

Question 39

Implementation of staffing involves leading through coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives.

Question 40

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

A) new employees are offered $4,000 to quit.
B) training lasts 7 weeks.
C) training includes tests.
D) trainees must graduate to be an employee.
E) all of the above

Question 41

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.

Question 42

Which of the following statements is 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) all of the above

Question 43

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

Question 44

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.

Question 45

Which of the following is NOT a guideline proposed for successful downsizing?

A) Contract out work that others can do cheaper.
B) Plan for long-run efficiencies.
C) Make across-the-board cuts.
D) Communicate the reasons for actions.
E) Invest in the remaining employees.

Question 46

According to the text, 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.

Question 47

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

A) when the company is prosperous
B) when the company is having temporary difficulty
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

Question 48

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

Question 49

According to the text, 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.

Question 50

According to a study of downsizing in the automobile-related industry, all of the following are problems associated with inappropriate downsizing EXCEPT

A) outsourcing was eliminated.
B) blanket offers for early retirement prompted even valuable employees to leave.
C) surviving employees experienced decreased morale.
D) surviving employees had to do extra work in addition to their own.
E) the wrong jobs were eliminated.

Question 51

One of the big common mistakes by corporations sending executives on global assignments is NOT

A) raising their salaries.
B) educating executives about customs and values in other countries.
C) providing training for the regulatory environment.
D) providing excellent health care.
E) giving executives the opportunity to visit home.

Question 52

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.

Question 53

According to the text, a complete package for an executive working in another country costs

A) $50,000 to $75,000 annually.
B) $100,000 to $200,000 annually.
C) $150,000 to 250,000 annually.
D) $200,000 to $500,000 annually.
E) $300,000 to $1 million annually.

Question 54

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

Question 55

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.

Question 56

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

Question 57

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

Question 58

Downsizing is often used to implement a(n)________ strategy.

A) retrenchment
B) growth
C) stability
D) hold
E) integration

Question 59

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

A) 10
B) 25
C) 50
D) 75
E) 90

Question 60

What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations?

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.

Question 61

Which of the following practices was NOT identified by a study of 750 U.S., Japanese, and European companies that do a good job of managing foreign assignments?

A) When making international assignments they focus on transferring knowledge and developing global leadership.
B) They offer foreign assignments to people whose technical skills are matched or exceeded by their cross-cultural abilities.
C) They offer assignments to those who want to return home early to share their experiences.
D) They end foreign assignments with a deliberate repatriations process with career guidance.
E) They end foreign assignments with a deliberate repatriation process with jobs where the employees can apply what they learned in their assignments.

Question 62

Which method of managing disparate cultures is characterized by a separation of the two companies' cultures because of their differences?

A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation

Question 63

Strategic goals can be accomplished through defining an action plan.Which one of the following is NOT one of the components which make up an action plan?

A) the specific actions to be taken
B) who will perform the action
C) during what time frame the action will be completed
D) where the action will be done
E) what are the expected results of the action

Question 64

Which method of managing disparate cultures involves a relatively balanced give-and-take of cultural and managerial practices between the merger partners, and no strong imposition of cultural change on either company?

A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation

Question 65

The percentage of European and Japanese-based expatriate managers who fail to adjust to a host country's social and business environment is

A) 6% or less.
B) approximately 35%.
C) between 50% to 75%.
D) around 80%.
E) greater than 90%.

Question 66

Which CEO of Home Depot learned the dangers of attempting to change corporate culture?

A) Jack Welch
B) Robert Nardelli
C) Alfred Chandler
D) Julia Stewart
E) Antonio Perez

Question 67

When Renault purchased a controlling interest in Japan's Nissan Motor Company to form one successful auto group from two with particular sensitivity to Nissan's culture, which approach to managing culture was employed?

A) separation
B) integration
C) deculturation
D) assimilation
E) segmentation

Question 68

According to the text, what is the "key" to effective management of change in culture?

A) planning
B) operationalization
C) evaluation
D) staffing
E) communication

Question 69

The percentage of U.S.-based expatriate managers who fail to adjust to a host country's social and business environment is

A) 6% or less.
B) approximately 35%.
C) between 50% and 75%.
D) around 80%.
E) greater than 90%.

Question 70

Which one of the following is NOT one of the characteristics possessed by companies that have made successful major culture changes?

A) The CEO has a strategic vision of what the company could become.
B) If the vision is difficult, the CEO immediately terminates the goal.
C) The vision is translated into objective, well-defined goals with appropriate incentives and recognition aides.
D) The CEO communicates to all employees where the organization stands in relation to the competition and its outlook on the future.
E) The CEO constantly updates the workforce as to the progress of the company in achieving those elements identified as important in attaining the vision.

Question 71

According to the text, which one of the following is NOT one of the dangers of using primarily foreign nationals to staff managerial positions in subsidiaries?

A) the increased likelihood of suboptimization
B) difficulty for the MNC to meet long-term, worldwide objectives
C) the ability for communication and coordination becomes increasingly difficult
D) promotes anger and jealousy within the nationalistic host government
E) problems in coordinating activities of several international subsidiaries leads to problems in operating in a global industry

Question 72

Action plans are important for several reasons.Which one of the following is NOT one of these reasons?

A) If the action plan is implemented properly, it ensures that the strategy will be a success.
B) It serves as a link between strategy formulation and evaluation and control.
C) The action plan specifies what needs to be done differently from the way operations are currently carried out.
D) During the evaluation and control process, an action plan helps in the appraisal of the performance and identifying remedial actions needed.
E) Motivation may be improved with the assignment of specific responsibility.

Question 73

Which method of managing disparate cultures is the most common and most destructive method of dealing with two different cultures because one company imposes its demands at the expense of another company's culture?

A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation

Question 74

When Admiral was acquired by Maytag Corporation, the Admiral employees were willing to accept the dominance of Maytag's strong quality-oriented culture because they respected it.This demonstrates which approach to managing culture?

A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation

Question 75

What does "MBO" stand for?

A) Market Buy-Out
B) Mergers, Buy-outs, and Options
C) Multinational Business Organization
D) Manufacturing Backlog Order
E) Management By Objectives

Question 76

The strategy implementation tool used to determine what actions are going to be taken, by whom, during what time frame, and with what expected results is called a(n)

A) mission statement.
B) action plan.
C) MBO.
D) TQM.
E) succession plan.

Question 77

Which one of the following is NOT one of the four general methods of managing two different cultures?

A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation

Question 78

Which method of managing disparate cultures involves one organization's domination over another willing organization?

A) separation
B) deculturation
C) integration
D) assimilation
E) segmentation

Question 79

When managing corporate culture, the first question management must ask is

A) what the change in strategy means to the corporate culture.
B) whether a change in culture is needed.
C) whether an attempt to change the culture is worth the likely costs.
D) whether it is possible to manage around the culture.
E) whether stakeholders will be impacted.

Question 80

When AT&T acquired NCR Corporation, the NCR managers were replaced with an AT&T management team.Which management strategy was employed in terms of culture?

A) integration
B) separation
C) deculturation
D) assimilation
E) segmentation