The three components of building a capable organization are
A. making periodic changes in the firm's internal organization to keep people from getting into a comfortable rut, instituting a decentralized approach to decision making, and developing the appropriate competencies and capabilities.
B. hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture.
C. putting a centralized decision-making structure in place, determining who should have responsibility for each value chain activity, and aligning the corporate culture with key policies, procedures, and operating practices.
D. staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort.
E. optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.
The primary building blocks within a company's organizational structure
A. are almost always the departments performing such key administrative support functions as finance, accounting, information technology, human resource management, and R&D.
B. can include a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps along the value chain.
C. typically consist of an un-empowered employee department, an empowered employee department, teams of front-line supervisors, teams of middle-level managers and administrators, and the group of top-level executives that comprise the company's "executive suite."
D. usually consist of supply chain management, components manufacture, assembly, distribution, and administration.
E. usually consist of two divisions—a division charged with performing primary value chain activities and a division charged with performing support activities.
The statistical thinking underlying Six Sigma is based on the following three principles:
A. All activities can be controlled, employee empowerment is the best control tool, and 100% control is possible.
B. All work is a process, all processes have variability, and all processes create data that explains variability.
C. All work activities can be done accurately most of the time, empowered employees are necessary for effective control, and good statistical data is an empowered employee's best control tool.
D. All work is a statistically controllable process, 100% control is possible, and every well-controlled process is defect-free.
E. Most business processes are subject to control, Six Sigma can remove variability in how processes are performed, and most defects can be eliminated.
The hallmarks of a high-performance corporate culture include
A. frequently revised and updated values and ethics statements, a deep commitment to employee training, and unusually attractive fringe benefit packages for company personnel.
B. a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.
C. a balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees.
D. a deep commitment to pioneering new best practices, a preference for being a fast follower as opposed to a first mover or late mover (because the risks are more acceptable), and across-the-board bonuses for all personnel when the company meets or beats stretch objectives.
E. a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.
Unhealthy company cultures typically have such characteristics as
A. tight budget controls, overly strict enforcement of longstanding policies and procedures, and low ethical standards.
B. a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability.
C. a politicized internal environment, hostility to change, an insular, inwardly focused culture, and unethical or greed-driven behavior on the part of executives.
D. overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures.
E. too little emphasis on innovation, a strong preference for hiring managers from outside the company, very few core values and traditions, and a weakly enforced code of ethics.