Deck 11: Strategy Implementation: Staffing and Directing

Question 1

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.

Answer 1

B

Question 2

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.

Answer 2

B

Question 3

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

Answer 3

B

Question 4

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 5

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

Question 6

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

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

Question 7

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 8

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 9

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.

Question 10

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 11

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.

Question 12

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 13

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 14

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 15

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 16

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 17

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 18

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.

Question 19

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.

Question 20

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.

Question 21

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 22

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

Question 23

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

Question 24

A corporation following a concentration strategy emphasizing vertical or horizontal growth would probably not want an aggressive new chief executive with a great deal of experience in that particular industry-a dynamic industry expert.

Question 25

It is possible that a current CEO may not be appropriate to implement the firm's new strategy.

Question 26

As in the case of structure,staffing requirements should follow a change in strategy.

Question 27

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

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

Question 28

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

Question 29

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

Question 30

Analyzers are corporations that operate in at least two different product-market areas,one stable and one variable.Analyzers corporations tend to have CEOs with a marketing/sales background.

Question 31

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 32

According to a study of downsizing in the U.S.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 33

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

Question 34

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

Question 35

Firms in trouble seldom choose outsiders to lead them.

Question 36

A professional liquidator was the executive type called in to Montgomery Ward,Inc.,the nation's first catalog retailer,when the company declared bankruptcy for the second time.

Question 37

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.

Question 38

European multi-national corporations seldom use people with an international orientation to staff their management positions.

Question 39

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

Question 40

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

Question 41

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

Question 42

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

Question 43

Nardelli's failed attempt to replace Home Depot's old informal entrepreneurial collaborative culture with one of military efficiency is a testament to

A) the strength of corporate culture.
B) the importance of collaborative environments.
C) the failure of the human resources staff.
D) the iron rule of some CEOs.
E) the costs of measurement.

Question 44

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 45

What is executive succession? Discuss the hiring of insiders versus outsiders.

Question 46

When downsizing,it is important to eliminate all R&D and maintenance expenses.

Question 47

Which of the following is not true of corporate culture?

A) Corporate culture has a strong tendency to resist change.
B) Corporate culture can strongly affect an organization's ability to shift its strategic direction.
C) A problem for a strong culture is that a change in mission is not likely to be successful if it is in opposition to the accepted corporate culture.
D) Corporate culture often rests on preserving stable relationships.
E) Corporate culture has little influence on the behavior of the firm's employees.

Question 48

What are some of the approaches a company can take to identify and prepare its people for important positions?

Question 49

The method of managing two different cultures that is often accompanied by much confusion,conflict,resentment,and stress is

A) consolidation.
B) integration.
C) separation.
D) deculturation.
E) assimilation.

Question 50

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

Question 51

List the guidelines proposed for successful downsizing.

Question 52

To successfully downsize,the recommendation is to make across-the-board cuts to maintain fairness.

Question 53

A top challenge reported by almost 70% of major U.S.corporations in mergers and acquisitions is

A) selecting an appropriate CEO.
B) integrating culture.
C) paying for the transaction.
D) laying off employees.
E) deciding on a location for the new headquarters.

Question 54

Which of the following is not one of the questions used to assess strategy-culture compatibility?

A) Is the proposed strategy compatible with the company's current culture?
B) Can the culture be easily modified to make it more compatible with the new strategy?
C) Is management willing and able to make major organizational changes, and accept probable delays and a likely increase in costs?
D) Is management still committed to implementing the strategy?
E) Is there a better-matched CEO to implement this strategy?

Question 55

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

Question 56

What is an executive type? What is its significance to strategy?

Question 57

To effectively manage strategic changes,it is important to communicate

A) to management without letting other employees know until the change is complete.
B) the rationale for the change to all employees.
C) the change in just the centralized location so as not to upset any decentralized locations.
D) in only company newsletters.
E) with only those immediately involved in the change.

Question 58

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 59

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 60

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 61

Corporate culture should support the strategy of the firm.

Question 62

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 63

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 64

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

Question 65

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 66

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 67

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 68

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

Question 69

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 70

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 71

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

Question 72

A key to the effective management of change is communication.

Question 73

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

Question 74

When Boeing created a separate unit to house the newly acquired operations of McDonnell-Douglas,they were managing the different cultures through separation-structurally separated,without cultural exchange.

Question 75

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 76

Corporate culture has a strong tendency to resist change because its very reason for existence often rests on preserving stable relationships and patterns of behavior.

Question 77

What are the four general methods of managing two different cultures?

Question 78

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 79

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

Question 80

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.