CH 10

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CHAPTER 10
STRATEGY IMPLEMENTATION: STAFFING AND DIRECTING
True/False
1.
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: T
A dynamic industry expert is someone with an analytical mind who is highly knowledgeable in
other industries and can manage diverse product lines.
Answer: F
(p.218)
2.
A professional liquidator might be called on by a bankruptcy court to close the firm and liquidate
its assets.
Answer: T
(p.220)
3.
(p.220)
4.
Executive succession is the process of replacing a key top manager.
Answer: T
(p.221)
5.
Assessment centers evaluate a persons performance only for leaderless group discussions.
Answer: F
(p.222)
6.
Downsizing refers to the planned elimination of positions or jobs.
Answer: T
(p.222)
7.
MBO stands for Management By Objectives.
Answer: T
(p.231)
8.
Assimilation involves the relatively balanced give-and-take of culture and managerial practices
between the merger practices.
Answer: F
9.
Separation is characterized by a separation of the two companies cultures.
Answer: T
Integration involves the disintegration of one companys culture resulting from unwanted and
extreme pressure from the other to impose its culture and practices.
Answer: F
(p.228)
(p.228)
10.
An action plan states what actions are going to be taken, by whom, during what time frame, and
with what expected results.
Answer: T
(p.227)
11.
One of the components of an action plan is the choice of five people who are responsible for
monitoring the timeliness and effectiveness of each action.
Answer: F
(p.229)
12.
One component of an effective action plan is the determination of the expected financial and
physical consequences of each action.
Answer: T
(p.230)
13.
14.
TQM links organizational objectives and the behavior of individuals.
Answer: F
226
(p.231)
(p.232)
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15.
TQM is an operational philosophy committed to customer satisfaction and continuous

improvement.
Answer: T
16.
One objective of TQM is better, less variable quality of the product and service.
Answer: T
One of the effects of MBO is that it increases the amount of internal politics operating within a
large corporation.
Answer: F
(p.232)
(p.232)
17.
18.
One ingredient of TQM is an intense focus on customer satisfaction.
Answer: T
Uncertainty avoidance is the extent to which a society accepts an unequal distribution of power in
organizations.
Answer: F
(p.231)
(p.232)
19.
Long-term orientation is the extent to which society is oriented toward the long versus the short
term.
Answer: T
(p.233)
20.
Multiple Choice
21.
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 is the process of
a.
b.
c.
d.
e.
22.
23.
b.
c.
d.
e.
24.
(p.219)
They chose to focus on improving their human resources through education and
training to provide a highly skilled, well-paid work force.
They chose to cut wages to compete in the global, cost-conscious market.
They chose to move their manufacturing plants to low-wage nations.
They chose to diversify their product line by entering the office equipment industry.
They chose to specialize in a niche market to concentrate all their efforts in achieving
market leadership within one area.
Motorola mandates that each employee have _____ hours of training per year.
a.
b.
c.
(p.219)
a deep knowledge of the acquiring company.

a flexible management style.
an ability to work in cross-functional project teams.
an ability to think independently.
a willingness to work independently.
What method did Corning's managers choose to compete in the world markets?
a.
(p.218)
training.
staffing.
structuring.
operating.
financing
All of the following reflect characteristics of a successful integration manager EXCEPT

a.
b.
c.
d.
e.
(p.233)
5
10
20
227
(p.219)
d.
e.
25.
For each $1 spent on training, Motorola estimates it receives _____ in productivity gains within three years.
a.
b.
c.
d.
e.
26.
28.
Which type of chief executive officer would be appropriate for a corporation following a stability
strategy with a conservative style, a production or engineering background, and experience with
controlling budgets, capital expenditures, inventories, and standardization procedures?
(p.220)
(p.220)
professional liquidator
dynamic industry expert
turnaround specialist
analytical portfolio manager
cautious profit planner
Which type of chief executive officer would be appropriate for a corporation that is facing
bankruptcy and needs to close the firm or liquidate its assets?
a.
b.
c.
(p.220)
Which type of chief executive officer would be appropriate for a weak corporation in a relatively
attractive industry, having a challenge-oriented ability useful for saving a company?
a.
b.
c.
d.
e.
30.
Which type of chief executive officer would be appropriate for a corporation following a
diversification strategy who is highly knowledgeable in other industries and can manage diverse
product lines?
a.
b.
c.
d.
e.
a.
b.
c.
d.
e.
29.
$15
$20
$25
$30
$35
Which type of chief executive officer would be appropriate for a corporation following a
concentration strategy emphasizing vertical or horizontal growth with a great deal of experience in
that particular industry?
(p.220)
a.
b.
c.
d.
e.
27.
30
40
228
(p.220)
(p.21
d.
e.
31.
What type of manager was Albert J. Dunlap while he was at Sunbeam Corporation?
a.
b.
c.
d.
e.
32.
34.
35.
b.
c.
d.
e.
36.
(p.220)
They tended to have less loyalty than former CEOs, switching companies as a faster
pace.
They tended to have the same functional specialization as the former CEO.
They tended to be more aggressive in their risk-taking than former CEOs.
They tended to rely more on skills developed through group decision making.
none of these
According to the text, the process of replacing a key top manager is called
a.
b.
c.
d.
e.
(p.220)
research/engineering and general management.

accounting/finance, manufacturing/production, and general management.
marketing/sales.
human resources and strategy.
purchasing and logistics.
What did a study of 173 firms over a 25-year period reveal about CEOs of successful
corporations?
a.
(p.220)

marketing/sales.
Successful analyzer firms tend to be headed by CEOs with backgrounds in the areas of
a.
b.
c.
d.
e.
(p.220)

marketing/sales.
Successful defender firms tend to be headed by CEOs with backgrounds in the areas of
a.
b.
c.
d.
e.
(p.220)
growth specialist
growth and diversification specialist
stability specialist
liquidator specialist
Successful prospector firms tend to be headed by CEOs with backgrounds in the areas of
a.
b.
c.
d.
e.
33.

executive succession.
executive placement.
executive strategy.
executive search.
executive outside succession.
229
(p.221)
37.
Research suggests that boards of directors tend to look outside the firm for the next CEO under
which following circumstance?
a.
b.
c.
d.
e.
38.
39.
41.
43.
(p.221)
abilities identifier
job evaluation
in-house assessment
performance appraisal system
responsibility centers
42.
Which one of the following is NOT one of the activities and techniques used in an assessment
center to evaluate a person's suitability for advancement?
a.
b.
c.
d.
e.
(p.222)
designing the organization.

contributing to the community.
learning from organizational experience.
making tough individual decisions.
planning and managing core business.
What term is used to describe the approach used by human resource managers to identify good
performers within an organization with promotion potential?
a.
b.
c.
d.
e.
(p.222)
implementing competitive cost structures.

acting on trends.
establishing accountability.
creating long-range strategies.
building trust and respect.
According to the Hewlett Packard model, the ability to lead change and learning competency is
marked by
a.
b.
c.
d.
e.
(p.222)
building a track record.

decreasing stock price.
establishing accountability.
supporting calculated risks.
resolving performance problems.
According to the Hewlett Packard model, the align the organization competency is marked by
a.
b.
c.
d.
e.
40.
when the company is prosperous

when the company is having temporary difficulty
when the company is in trouble
when the company needs to follow a stability strategy
when the company needs to expand in order to continue growing
When Hewlett Packard searches for executive leadership, all of the following represent its broad
competency of achieving results EXCEPT
a.
b.
c.
d.
e.
(p.221)
(p.222)
leaderless group discussions

management games
in-basket exercises
IQ tests
case analyses
According to the text, assessment centers have been able to accurately predict
230
(p.222)
a.
b.
c.
d.
e.
44.
To prepare employees for future responsibilities, many corporations utilize the technique of
a.
b.
c.
d.
e.
45.
47.
48.
(p.223)
Develop value-added jobs to balance out job elimination.

Plan for long-run efficiencies.
Eliminate unnecessary work.
Invest in remaining employees.
Contract out work that others can do cheaper.
Which guideline for successful downsizing suggests that the organization does not rely on the
simple elimination of postponable expenses in the hope that the environment will improve?
a.
b.
c.
d.
e.
(p.223)
Produced no short-term benefits.

Blanket offers for early retirement took even valuable employees.
Surviving employees experienced decreased morale.
Surviving employees had to do extra work in addition to their own.
Overall productivity declined.
Which guideline for successful downsizing encourages an organization to spend the time to
research where money is going and to eliminate the task that does not add value to what the firm
is producing?
a.
b.
c.
d.
e.
(p.222)
job design.
job specialization.
job rotation.
job enlargement.
job enrichment.
According to a study of downsizing in the automobile industry, which one of the following is
NOT a problem associated with inappropriate downsizing?
a.
b.
c.
d.
e.
46.
job satisfaction.
job performance.
organizational commitment.
organizational attachment.
job management skills.
(p.223)

Plan for long-run efficiencies.
Invest in remaining employees.
Contract out work that others can do cheaper.
Which guideline for successful downsizing encourages an organization to draft new job
specifications, performance standards, appraisal techniques and compensation packages for
surviving employees?
(p.223)
a.
b.
c.
d.
e.
49.
Communicate the reasons for actions.

Plan for long-run efficiencies
Invest in the remaining employees.
Downsizing is an example of a(n) _____ strategy.

a.
retrenchment
231
(p.222)
b.
c.
d.
e.
50.
According to the text, a package for an executive working in another country costs over _____
annually.
a.
b.
c.
d.
e.
51.
53.
(p.224)
The increased likelihood of suboptimization of operations.

Difficulty for the MNC to meet long-term, worldwide objectives.
The ability for communication and coordination becomes increasingly difficult.
Promotes anger and jealousy within the nationalistic host government.
Problems in coordinating activities of several international subsidiaries leads to problems
in operating in a global industry.
The percentage of U.S.-based expatriate managers who fail to adjust to a host country's social and
business environment is
(p.224)
a.
b.
c.
d.
e.
6% or less.
approximately 35%.
between 50% and 75%.
around 80%.
greater than 90%.
54.
The percentage of European and Japanese-based expatriate managers who fail to adjust to a host
country's social and business environment is
a.
b.
c.
d.
e.
55.
(p.224)
raising their salaries.

educating executives about customs in other countries.
providing training of cross-cultural norms.
providing excellent health care.
giving executives the opportunity to visit home.
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.
b.
c.
d.
e.
(p.224)
$50,000
$100,000
$150,000
$200,000
$300,000
One of the big common mistakes by corporations sending executives on global assignments
is NOT
a.
b.
c.
d.
e.
52.
growth
stability
hold
integration
6% or less.
approximately 35%.
between 50% to 75%.
around 80%.
greater than 90%.
In the text, one of the problems in not managing corporate culture was felt by the corporation
a.
b.
(p.224)
Maytag.
Mitsubishi.
232
(p.225)
c.
d.
e.
56.
Which one of the following is NOT one of the activities that top management must do to direct a
new strategy?
a.
b.
c.
d.
e.
57.
c.
d.
e.
d.
e.
(p.227)
Find a joint-venture partner or contract with another company to carry out the strategy.
Implement the new strategy and identify how it is superior to the old strategy in
achieving the mission.
Move forward very carefully by introducing small steps and modifications before full
implementation.
Manage around the culture by establishing a new structural unit to implement the new
strategy.
none of these.
If a planned strategy is NOT compatible with the current culture, but the culture can be easily
modified to make it more compatible with the new strategy, what should the organization do?
a.
b.
c.
(p.227)
Managers should be stimulated to find creative solutions to solve problems without

getting bogged down in conflict.
Top managers must delegate appropriate authority and responsibility to operational
managers.
Managers must make sure that policies are supportive of the new strategy.
Managers must be able to motivate their workforce.
Managers must be able to set goals and standards either informally or by more formal
methods such as Management By Objectives.
If a planned strategy is fully compatible with the company's current culture, what should the
organization do?
a.
b.
58.
Nike.
Laura Ashley.
Corning.
(p.227)
Implement the new strategy and identify how it is superior to the old strategy.
Move forward very carefully by introducing small modifications before full
implementation.
strategy.
none of these.
59.
If an organization wishes to implement a new strategy even if the culture cannot be easily changed
and management is willing and able to make major organization changes, what should the organization do?
(p.227)
a.
b.
c.
d.
e.
60.
Implement the new strategy and identify how it is superior to the old strategy in
achieving the mission.
implementation.
Manage around the culture by establishing a new structural unit to implement the
new strategy.
none of these.
If a planned strategy is not compatible with the company's current culture, and management is not
willing to make major organizational changes required to manage around the culture, what should
the organization do?
(p.227)
233
a.
b.
c.
d.
e.
61.
According to the text, what is the "key" to effective management of change in culture?
a.
b.
c.
d.
e.
62.
d.
e.
64.
65.
(p.227)
separation
deculturation
integration
assimilation
segmentation
Which method of managing disparate cultures involves one organization's domination over
another willing organization?
a.
b.
c.
(p.228)
separation
deculturation
integration
assimilation
segmentation
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; often referred to as a "partnership of equals?"
a.
b.
c.
d.
e.
(p.227)
The CEO has a strategic vision of what the company could become.
If the vision is not currently feasible, the CEO immediately terminates the goal.
If the vision is feasible, the vision is translated into objective, well-defined goals with
appropriate incentives and recognition aides.
The CEO is obsessive about communicating to all employees as to where the
organization stands in relation to the competition and its outlook on the future.
The CEO constantly updates the workforce as to the progress of the company in
achieving those elements identified as important in attaining the vision.
Which one is NOT one of Malekzadeh and Nahavandi's four general methods of managing
disparate cultures?
a.
b.
c.
d.
e.
(p.227)
planning
operationalizing
evaluating
staffing
communicating
Which one of the following is NOT one of the characteristics that companies have that make
successful major culture changes?
a.
b.
c.
63.
Find a joint-venture partner or contract with another company to carry out the
strategy.
Implement the new strategy and identify how it is superior to the old strategy.
implementation.
strategy.
none of these.
separation
deculturation
integration
234
(p.228)
d.
e.
66.
Which method of managing disparate cultures is characterized by a separation of the two

companies' cultures because of their differences?
a.
b.
c.
d.
e.
67.
separation
deculturation
integration
assimilation
segmentation
70.
(p.227)
integration
separation
deculturation
assimilation
segmentation
When Admiral was acquired by Maytag Corporation, which management strategy was employed
in terms of culture?
a.
b.
c.
d.
e.
(p.228)
integration
separation
deculturation
assimilation
segmentation
When AT&T acquired NCR Corporation, which management strategy was employed in terms of culture?
a.
b.
c.
d.
e.
71.
separation
deculturation
integration
assimilation
segmentation
When Seaboard and Chesapeake & Ohio merged to form CSX Corporation, which management
strategy was employed in terms of culture?
a.
b.
c.
d.
e.
69.
(p.228)
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?
(p.228)
a.
b.
c.
d.
e.
68.
assimilation
segmentation
integration
separation
deculturation
assimilation
segmentation
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.
b.
c.
d.
Marshall plan.
action plan.
summary plan.
staffing plan.
235
(p.229)
(p.22
e.
72.
In 1986, what refrigerator manufacturer did Maytag team up with to produce a Maytag brand
refrigerator?
a.
b.
c.
d.
e.
73.
75.
b.
c.
d.
e.
76.
77.
(p.231)
Market Buy-Out
Mergers, Buy-outs, and Options
Multinational Business Organization
Manufacturing Backlog Order
Management By Objectives
Which one of the following is NOT part of the process of Management By Objectives (MBO)?
a.
b.
c.
d.
(p.231)
If the action plan is implemented properly, it ensures that the strategy will be a
success.
It serves as a link between strategy formulation and evaluation and control.
The action plan specifies what needs to be done differently from the way operations are
currently carried out.
During the evaluation and control process, an action plan helps in the performance
appraisal and identifying remedial actions needed.
Motivation is improved with the assignment of specific responsibility.
What does "MBO" stand for?

a.
b.
c.
d.
e.
(p.229)
states what action is going to be taken

by whom the action will be done
during what time frame the action will be done
where the action will be done
what are the expected results of the action
Action plans are important for several reasons. Which one of the following is NOT one of these
reasons?
a.
(p.229)
marketing expertise
strong dominance of the market
refrigeration technology
logistics
broad range of appliance manufacturing
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.
b.
c.
d.
e.
(p.229)
Whirlpool
White-Westinghouse
Amana
Admiral
Frigidaire
Maytag's emphasis has always been an unceasing devotion to a quality-oriented culture. What
resource did Admiral bring to the collaboration?
a.
b.
c.
d.
e.
74.
hiring plan.
Establishing and communicating organizational objectives.

Setting individual objectives that help implement organizational ones.
Reinforcing rules and regulations.
Developing an action plan of activities needed to achieve the objectives.
236
(p.231)
e.
78.
Which of the following is NOT descriptive of the purpose of Management By Objectives (MBO)? (p.231)
a.
b.
c.
d.
e.
79.
(p.232)
Management By Objectives.
Total Quality Management.
Action Planning.
Transaction Costs Economics.
Resource-based view of the firm.
(p.221)
Intense focus on customer satisfaction.

Internal as well as external customers.
Action planning.
Continuous improvement.
Accurate measurement of every critical variable.
Over ______ percent of manufacturing companies have implemented some form of quality
management practices.
a.
b.
c.
d.
e.
(p.232)
Greater flexibility in adjusting to customers' shifting requirements.

Lower cost through quality improvement and elimination of non-value-adding work.
Increased alignment of employee goals with management's objectives.
Quicker, less variable response in processes to customer needs.
Better, less variable quality of the product and service.
Which of the following is NOT an essential ingredient of TQM?

a.
b.
c.
d.
e.
83.
Total Questioning Methods.

Terrible Quantitative Management.
Tremulous Qualitative Methodology.
Total Quality Management.
Total Quality Methods.
The concept of continuous improvement is part of

a.
b.
c.
d.
e.
82.
(p.232)
Which of the following is NOT one of TQM's objectives?

a.
b.
c.
d.
e.
81.
MBO provides an opportunity for the corporation to connect the objectives of people at
each level to those at the next higher level.
MBO operates independently and requires very little supervision or administration.
The goals at each level ideally contribute directly towards overall organizational
objectives.
MBO provides a potential method of integrating the physical, financial and human
resource plans of an organization as it relates to the goals of the individual.
MBO ties the corporate, business, and functional objectives together along with the
strategies used to achieve them.
"TQM" refers to
a.
b.
c.
d.
e.
80.
Periodically reviewing performance as it relates to the objectives.
92
94
96
98
99
237
(p.232)
84.
Over ______ percent of service companies have implemented some form of quality management
practices.
a.
b.
c.
d.
e.
85.
86.
88.
89.
90.
(p.233)
uncertainty avoidance
masculinity-femininity
individualism-collectivism
power distance
racial diversity
Which cultural dimension describes the extent to which a society accepts an unequal distribution
of power in organizations?
a.
b.
c.
d.
e.
(p.232)
intense focus on customer satisfaction.

internal as well as external customers.
accurate measurement of critical variables.
continuous improvement of products and services.
new work relationships based on trust and teamwork.
Which one of the following was NOT one of the cultural dimensions that Hofstede found which
could explain the success or failure of certain management practices?
a.
b.
c.
d.
e.
(p.232)
intense focus on customer satisfaction.

internal as well as external customers.
accurate measurement of critical variables.
continuous improvement of products and services.
new work relationships based on trust and teamwork.
The theory that operations should be continuously monitored points to the essential TQM
ingredient of
a.
b.
c.
d.
e.
(p.232)
effective communication in all levels of management.

excellent customer satisfaction.
top management.
formidable manufacturing practices.
respected lower level employees.
The theory that an employee in the shipping department may be a customer points to the essential
TQM ingredient of
a.
b.
c.
d.
e.
87.
60
69
72
86
95
One research study indicates that the key of successes and failures of TQM involves
a.
b.
c.
d.
e.
(p.232)
(p.233)
power distance
racial diversity
Which cultural dimension describes the extent to which a society feels threatened by ambiguous
situations?
238
(p.233)
a.
b.
c.
d.
e.
91.
Which cultural dimension describes the extent to which a society values individual freedom and
independence of action compared with a tight social framework and loyalty to the group?
a.
b.
c.
d.
e.
92.
94.
95.
96.
(p.233)
Hong Kong
Germany
Pakistan
United States
Mexico
Which country scored highest on power distance?

a.
b.
c.
(p.233)
Hong Kong
Germany
Pakistan
United States
Canada
Which country scored the highest on individualism?

a.
b.
c.
d.
e.
(p.233)
power distance
long-term orientation
Which country scored the lowest on the dimension of long-term orientation?

a.
b.
c.
d.
e.
(p.233)
power distance
racial diversity
Which cultural dimension describes the extent to which a society emphasizes the importance of
hard work, education, and persistence as well as the importance of thrift?
a.
b.
c.
d.
e.
(p.233)
power distance
racial diversity
Which cultural dimension describes the extent to which society is oriented toward money and
things or towards people?
a.
b.
c.
d.
e.
93.
power distance
long-term orientation
Malaysia
Germany
Austria
239
(p.233)
d.
e.
97.
Which country scored lowest on power distance?

a.
b.
c.
d.
e.
98.
100.
(p.233)
Malaysia
Mexico
Austria
United States
Great Britain
Which country scored lowest on masculinity-femininity?

a.
b.
c.
d.
e.
(p.233)
Malaysia
Greece
Austria
United States
Great Britain
Which country scored lowest on uncertainty avoidance?

a.
b.
c.
d.
e.
(p.233)
Malaysia
Mexico
Austria
United States
Great Britain
Which country scored highest on uncertainty avoidance?

a.
b.
c.
d.
e.
99.
United States
Great Britain
Malaysia
Mexico
France
United States
Great Britain
240
(p.233)

CH 10

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TQM is an operational philosophy committed to customer satisfaction and continuous

a deep knowledge of the acquiring company.

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

research/engineering and general management.

research/engineering and general management.

research/engineering and general management.

analytical portfolio manager

designing the organization.

implementing competitive cost structures.

building a track record.

when the company is prosperous

leaderless group discussions

Develop value-added jobs to balance out job elimination.

Produced no short-term benefits.

Develop value-added jobs to balance out job elimination.

Communicate the reasons for actions.

Downsizing is an example of a(n) _____ strategy.

The increased likelihood of suboptimization of operations.

raising their salaries.

Managers should be stimulated to find creative solutions to solve problems without

Which method of managing disparate cultures involves a relatively balanced give-and-take of

Which method of managing disparate cultures is characterized by a separation of the two

What does "MBO" stand for?

states what action is going to be taken

Establishing and communicating organizational objectives.

Intense focus on customer satisfaction.

Greater flexibility in adjusting to customers' shifting requirements.

Which of the following is NOT an essential ingredient of TQM?

Total Questioning Methods.

The concept of continuous improvement is part of

Which of the following is NOT one of TQM's objectives?

Periodically reviewing performance as it relates to the objectives.

intense focus on customer satisfaction.

intense focus on customer satisfaction.

effective communication in all levels of management.

Which country scored highest on power distance?

Which country scored the highest on individualism?

Which country scored the lowest on the dimension of long-term orientation?

Which country scored lowest on power distance?

Which country scored lowest on masculinity-femininity?

Which country scored lowest on uncertainty avoidance?

Which country scored highest on uncertainty avoidance?

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