Strategic Management Theory & Cases: An Integrated Approach 13th Edition by Charles test bank
b.
Formal conventional channels can be influenced by special interests and gatekeepers who choose what information to share.
c.
Formal channels can skew strategies which can result in poor performance and lack of focus.
d.
Formal channels often miscommunicate the vision of the company and disrupt the organization’s culture.
e.
Formal channels encourage leaders to use their authority to force ideas through in order to accomplish goals.
ANSWER:
b
74. Evidence suggests that the best way to maximize the long-run return to shareholders is to focus on:
a.
increasing prices.
b.
research and development goals.
c.
satisfying customer needs and making sure that employees are fairly treated.
d.
compensating managers well.
e.
maximizing employee overtime.
ANSWER:
c
75. A general manager announces a new policy that includes an end-of-the year bonus for all employees if the company achieves its overall productivity goal. This is an example of a manager:
a.
neglecting shareholders’ desire for maximum profitability.
b.
giving away money for no reason.
c.
losing the competition with other businesses for top talent.
d.
choosing to focus on employees to maximize shareholder value.
e.
setting a policy to increase his or her own income.
ANSWER:
d
76. Ralph is a well-liked manager at Aries Inc. He eloquently communicates the goals of the organization and has been successful in making the organization's vision part of its culture. Which of the following characteristics of good strategic leaders can be observed in Ralph?
a.
Authoritarian leadership
b.
Devil's advocacy
c.
Eloquence
d.
Inconsistency
e.
Empathy
ANSWER:
c
Essay
77. Identify the levels of strategic managers and discuss their role in the strategic management process.
ANSWER:
The three levels of strategic managers are corporate, business, and functional. Corporate-level managers include the CEO, other senior executives, the board of directors, and corporate staff. The role of corporate-level managers is to oversee the development of strategies for the whole organization. This role includes defining the goals of the organization, determining what businesses it should be in, allocating resources among the different businesses, formulating and implementing strategies that span individual businesses, and providing leadership for the entire organization.
Business-level managers oversee business units—self-contained divisions of a company with their own functions that are performed within the units. The role of business-level managers is to translate the general statements of direction and intent that come from the corporate level into concrete strategies for individual businesses.
Functional-level managers are responsible for the specific business functions or operations found within a company or one of its divisions. These managers are generally responsible for one organizational activity. Their strategic role is to develop functional strategies in their area that help fulfill the strategic objectives set by business- and corporate-level managers.
78. Explain the difference between functional and general managers. Provide an example of each from your college or university.
ANSWER:
Functional-level managers are responsible for the specific business functions or operations found within a company or one of its divisions. Thus, a functional manager's sphere of responsibility is generally confined to one organizational activity, whereas general managers oversee the operation of an entire company or division. Although they are not responsible for the overall performance of the organization, functional managers nevertheless have a major strategic role: to develop functional strategies in their areas that help fulfill the strategic objectives set by business- and corporate-level general managers. In a college or a university setting, a President would be a general manager, whereas the Director of Admissions or Vice President for Student Affairs would be an example of a functional manager.