Chapter 6 Encouraging Creativity and Innovation: Modern Management, 15e (Certo)

Modern Management, 15e (Certo)
Chapter 6 Encouraging Creativity and Innovation
1) ________ is the ability to generate original ideas or new perspectives on existing ideas.
A) Logical thinking
B) Interpretation
C) Creativity
D) Perception
E) Comprehension
Answer: C
Learning Obj: LO 6.1: A definition of creativity and an awareness of its importance in
organizations
Difficulty: Easy
Classification: Concept
2) Which one of the following components of creativity refers to the capacity to put existing
ideas together in new combinations?
A) expertise
B) motivation
C) confidence
D) creative thinking
E) knowledge
Answer: D
organizations
Difficulty: Challenging
3) ________ determines how flexibly and imaginatively individuals approach problems.

A) Expertise
B) Creative thinking
C) Confidence
D) Knowledge
E) Motivation
Answer: B
organizations
Difficulty: Easy
1
Copyright © 2019 Pearson Education, Inc.
4) ________ is the component of creativity that refers to an individual's need or passion to be
creative.
A) Motivation
C) Expertise
D) Experience
E) Confidence
Answer: A
organizations
Difficulty: Easy
5) Which one of the following components of creativity determines if an individual will actually
be creative?
A) experience
B) motivation
C) expertise
D) logic
E) reasoning
Answer: B
organizations
6) Which one of the following is considered to be a raw material for creativity?

A) passion
B) expertise
C) motivation
D) interest
E) drive
Answer: B
organizations
AACSB: Analytical Thinking
2
7) Which one of the following is an extrinsic source of motivation for a creative individual?
A) passion related to a situation
B) personal interest
C) desire to succeed
D) organizational rewards
E) challenge of the work
Answer: D
organizations
8) Which one of the following is an intrinsic source of motivation for a creative individual?
A) organizational rewards
B) incentives
C) promotions
D) punishments
E) personal interest
Answer: E
organizations
9) Which one of the following is essential in order for a new idea to be considered creative as
opposed to just being thought of as a new perspective?
A) The idea must be useful and actionable.
B) The idea must be novel and new.
C) The idea must be useful and novel.
D) The idea must be actionable and unique.
E) The idea must be useful and unique.
Answer: A
organizations
3
10) Janice is an employee at Bob's Burgers. Since she has the basic abilities needed to perform
her job, she can be said to have which one of the following key components of creativity?
A) creative thinking
B) application
C) motivation
D) expertise
E) diligence
Answer: D
organizations
Difficulty: Moderate
11) ________ provides an employee with the vigilance and persistence necessary to generate
creative solutions to complex organizational problems.
A) Expertise
C) Motivation
D) Knowledge
E) Affirmation
Answer: B
organizations
12) Creativity can be sufficiently analyzed from an organization's perspective in terms of

originality or newness only.
Answer: FALSE
organizations
Difficulty: Easy
13) Creative thinking pertains to work-related techniques and procedures as well as a thorough
understanding of overall work circumstances.
Answer: FALSE
organizations
Difficulty: Easy
4
14) An individual can be driven to be creative either intrinsically through organizational rewards
and punishments, or extrinsically through personal interest and passion related to a situation.
Answer: FALSE
organizations
15) Describe the importance of creativity in organizations.

Answer: Creativity involves seeing issues from different angles and breaking away from old
rules and norms that bind us to traditional methods of accomplishing tasks. Creativity allows us
to be different and helps us find new answers and solutions to problems, both old and new.
The relationship between breaking away from old rules and norms for accomplishing tasks and
meeting critical organizational challenges is clear. For example, many managers face the daily
challenge of motivating organization members and, as a result, are constantly searching for new
ways to encourage employees to be more committed to their work. Additionally, managers often
face the challenge of dealing more effectively with competitors and, as a result, commonly
search for new ways to increase the quality of their products or develop new and more
competitive products. Overall, meeting the challenges of motivating organization members or
dealing more effectively with competitors is necessary for ensuring organizational success.
Because creativity is the source of new ideas on how to meet such challenges, managers should
view creativity as a vital element for ensuring organizational success.
organizations
5
16) Discuss the three components of creativity in an individual.
Answer: Within each individual, creativity is a function of three components. These components
are expertise, creative thinking skills, and motivation.
Expertise is everything an individual knows and can do in the broad domain of his or her work.
This knowledge pertains to work-related techniques and procedures as well as a thorough
understanding of overall work circumstances. Expertise can be acquired through formal
education, experience, and interaction with peers and other professionals.
Creative thinking is the capacity to put existing ideas together in new arrangements. Overall,
creative thinking determines how flexibly and imaginatively individuals approach problems. A
continual attention to problems will afford the employees the vigilance necessary to generate
creative solutions to complex organizational problems.
Motivation refers to an individual's need or passion to be creative. If an individual feels a need to
be creative, that individual is more likely to do so. Expertise and creative thinking are the
individual's raw materials for being creative, but motivation determines whether an individual
will actually be creative. An individual can be driven to be creative either extrinsically through
organizational rewards and punishments, or intrinsically through personal interest and passion
related to a situation.
organizations
17) ________ is commonly discussed as a critical resource that fuels creativity in organization
members.
A) Knowledge
B) Relevant skill
C) Motivation
D) Innovation
E) Appropriate amounts of time
Answer: E
Learning Obj: LO 6.2: Guidelines on how to increase creativity in organizations
Difficulty: Easy
18) ________ is a component of creativity that refers to everything an individual knows and can
do in the broad domain of his or her work.
A) Creative thinking
B) Reasoning
C) Expertise
D) Perception
E) Motivation
Answer: C
organizations
Difficulty: Easy
6
19) ________ is considered the most effective step managers can take to stimulate creativity.
A) Giving employees complete freedom to influence the process used to perform their jobs
B) Providing an appropriate level of job-related challenge
C) Affording appropriate time to perform a job optimally
D) Establishing work groups to achieve greater diversity
E) Promoting information sharing and collaboration as related to solving organizational
problems
Answer: B
20) Which one of the following characteristics is attributed to employees who, according to the
time-pressure/creativity matrix, feel as if they are on an expedition?
A) showing creative thinking that is more oriented toward generating or exploring ideas than
identifying problems
B) tending to have more meetings and discussions with groups rather than with individuals
C) receiving little encouragement from senior management to be creative
D) experiencing highly fragmented workdays, with many different activities
E) feeling more pressed for time than when they are "on a mission" even though they work the
same number of hours
Answer: A
21) According to the time-pressure/creativity matrix, people who feel as if they are on autopilot
________.
A) focus on one activity for a significant part of the day because they are undisturbed or
protected
B) believe that they are doing important work and report feeling positively challenged by and
involved in the work
C) show creative thinking that is equally oriented toward identifying problems and generating or
exploring ideas
D) receive little encouragement from senior management to be creative
E) tend to collaborate with one person rather than with a group
Answer: D
7
22) According to the time-pressure/creativity matrix, employees who receive little
encouragement from senior management to be creative and engage in less collaborative work
overall are likely to feel as if they are on ________.
A) autopilot
B) a treadmill
C) a tight leash
D) an expedition
E) a mission
Answer: A
23) Which one of the following is characteristic of a person who is more likely to think
creatively under low time pressure?
A) He or she experiences a highly fragmented workday, with many different activities.
B) He or she does not get the sense that the work he or she is doing is important.
C) He or she feels more pressed for time than when "on a mission" even though the work was for
the same number of hours.
D) He or she tends to collaborate with one person rather than with a group.
E) He or she experiences lots of last-minute changes in plans and schedules.
Answer: D
24) Which one of the following metaphors best describes the feeling of people who are more
likely to think creatively under low time pressure?
A) on a tight leash
B) on a mission
C) on a treadmill
D) on an expedition
E) on autopilot
Answer: D
8
25) Which one of the following is characteristic of a person who is more likely to think
creatively under high time pressure?
A) He or she receives little encouragement from senior management to be creative.
B) He or she tends to have more meetings and discussions with groups rather than with
individuals.
C) He or she is less likely to engage in less collaborative work overall.
D) He or she can focus on one activity for a significant part of the day as he or she is undisturbed
or protected.
E) He or she does not get the sense that the work he or she is doing is important.
Answer: D
26) Creative thinking under extreme time pressure is more likely when people feel as if they are
on ________.
A) a shoestring
B) a tight leash
C) a mission
D) an expedition
E) a treadmill
Answer: C
27) According to the time-pressure/creativity matrix, if employees feel like they are on a
treadmill, they are most likely to ________.
A) receive little encouragement from senior management to be creative
B) focus on one activity for a significant part of the day because they are undisturbed or
protected
C) collaborate with one person rather than with a group
D) experience a highly fragmented workday, with many different activities
E) believe that they are doing important work and report feeling positively challenged by the
work
Answer: D
9
28) Creative thinking under extreme time pressure is unlikely when people feel as if they are on
________.
A) a stroll in the park
B) a mission
C) autopilot
D) an expedition
E) a treadmill
Answer: E
29) Scott is looking for ways to increase the creativity of the workers in the Development
Department he manages. Which one of the following managerial actions could Scott take to help
stimulate creativity in the employees he fears are in jobs that are too simple and routine?
A) challenge workers
B) establish worker autonomy
C) afford time for accomplishing work
D) establish diverse work groups
E) personally encourage workers
Answer: A
30) If a manager is seeking to stimulate creativity in his/her workers by combining differences

among the unique knowledge and perspectives of employees, s/he should take which one of the
following managerial actions?
A) challenge workers
B) establish worker autonomy
C) afford time for accomplishing work
D) establish diverse work groups
E) personally encourage workers
Answer: D
10
31) If an employee's creativity is said to increase when s/he is able to work without direct
management directions, the employee should be offered ________ in his/her work.
A) control
B) organization
C) task significance
D) autonomy
E) leadership
Answer: D
32) An organization seeking to increase creativity in its employees should have ________
established to work in conjunction with the employees' work.
A) autonomy
B) leadership
C) plans
D) responsibility
E) systems support
Answer: E
33) If organization members have jobs that stretch their abilities too little, they can easily
become bored on the job and distracted from being creative.
Answer: TRUE
Difficulty: Easy
34) Managers can ensure the generation of creativity by making work groups more diverse.
Answer: FALSE
35) Managers should surround non-creative employees with creative employees so that creativity
can rub off on the non-creative employees.
Answer: FALSE
11
36) Briefly describe the time-pressure/creativity matrix.
Answer: The time-pressure/creativity matrix illustrates how managers can either encourage or
discourage the likelihood of creative thinking in organizations depending on how high and low
time pressures are combined with various organizational factors. According to this matrix, given
the condition of low time pressure, the likelihood of creativity in an organization could be low if
workers feel they are on autopilot and get little encouragement from management to be creative.
Under the same low time pressure condition, however, the likelihood of creativity in an
organization could be high if people feel they're on an expedition and thereby are characterized
by creativity slanted more towards exploring ideas.
Given the high time pressure condition, the likelihood of creativity in an organization could be
high if people feel they're on a mission to discover solutions to job-related problems. Under the
same high-pressure condition, however, the likelihood of creativity in an organization could be
low if people feel they're on a treadmill and commonly experience extensive last-minute changes
to schedules and plans.
37) From a management viewpoint, the process of applying a new idea to the improvement of
organizational processes, products, or services is known as ________.
A) creativity
B) innovation
C) brainstorming
D) groupthink
E) configuration
Answer: B
Learning Obj: LO 6.3: A definition of innovation and an understanding of the relationship
between creativity and innovation
Difficulty: Easy
38) Which one of the following characteristics is typically attributed to a creative person?
A) unemotional
B) orthodox
C) moderately concerned with failure
D) extroverted
E) intolerant of ambiguity
Answer: C
12
39) Which one of the following firms is considered to be the most innovative company?
A) General Electric
B) LG Electronics
C) Apple
D) Sony
E) Amazon
Answer: E
40) Which one of the following statements is true of the link between innovation and creativity?
A) Creativity involves turning a new idea into new or improved processes, products, or services
that promote the attainment of organizational goals.
B) Organizations can be either innovative or creative, but can never be both at the same time.
C) An organization that is innovative but not creative is characterized by a fertile source of good
ideas, but lacking in the ability to make the ideas tangible.
D) An organization that is creative but not innovative is characterized by the ability to turn ideas
into tangible benefit, but lacking good ideas to make tangible.
E) The ideas on which innovation is based come from creativity in the organization, whereby
those ideas are turned into something tangible that benefits the organization.
Answer: E
41) An organization that is innovative but not creative is characterized by a fertile source of good
ideas, but lacking in the ability to make the ideas tangible.
Answer: FALSE
13
42) Give a short description of the concept of "innovation."
Answer: The term "innovation" can be defined in several different ways. From a management
viewpoint, innovation is the process of applying a new idea to the improvement of organizational
processes, products, or services. Innovation is critical to the long-run success of virtually any
organization. Deployed correctly, the "collective intelligence" of an organization has the power
to spark innovation. On the other hand, without innovation, organizations tend to become less
competitive and less desirable to customers as well as organization members, and organizations
that do not innovate tend to fail. Many management theorists believe that innovation is so critical
it not only can fuel the prosperity of organizations, but of nations. To be sure, though, innovation
starts with employees. In fact, a recent long-term study of new product development in two
organizations reveals that social networks with strong relationships and active participation in
decision making help foster innovation.
43) How are innovation and creativity connected?

Answer: Confusion often exists in organizations over the relationship between innovation and
creativity. Basically, innovation involves turning a new idea into new or improved processes,
products, or services that promote the attainment of organizational goals. The ideas on which
innovation is based come from creativity in the organization. Innovation is the process of turning
those ideas into something tangible that benefits the organization. An organization that is
creative but not innovative is characterized by a fertile source of good ideas, but lacking in the
ability to make the ideas tangible. An organization that is innovative but not creative is
characterized by the ability to turn ideas into tangible benefit, but lacking good ideas to make
tangible. Organizations can be either creative or innovative, and managers should strive to build
organizations that are both a source of sound ideas and capable of turning the ideas into tangible
benefits for the organization.
44) ________ is defined as the steps managers take to implement creative ideas.
A) Brainstorming
B) Ideation
C) Innovation process
D) Mentation
E) Intellection
Answer: C
Learning Obj: LO 6.4: An awareness of the innovation process
Difficulty: Easy
14
45) Which one of the following steps of the innovation process establishes a new idea that could
help the organization be more successful?
A) developing
B) diffusing
C) inventing
D) integrating
E) monitoring
Answer: C
46) Using videoconferencing to help organization members across the globe communicate more
effectively is an example of a(n) ________.
A) management idea
B) infrastructure idea
C) technology idea
D) process idea
E) product idea
Answer: C
Difficulty: Easy
47) Which one of the following is an example of a topic that technology ideas encompass in the
invention stage of the innovation process?
A) promoting products in the market
B) redesigning organizational structure
C) employing barcoding to better manage inventory
D) redesigning workstations to make employees more productive
E) improving human resource management
Answer: C
15
48) Which one of the following is an example of a topic that management ideas encompass in the
A) promoting products in the marketplace
B) redesigning organizational structure
C) restyling workstations to make employees more productive
D) adopting robotics to make a manufacturing process more efficient
E) employing barcoding to better manage inventory
Answer: B
49) ________ ideas are ideas that focus on invention that develops new offerings, or enhances
existing offerings by the organization.
A) Technology
B) Process
C) Management
D) Product
E) Infrastructure
Answer: D
Difficulty: Easy
50) Which one of the following is an example of a topic that product ideas encompass in the
A) redesigning workstations to make workers more productive
B) pricing, packaging, and distribution
C) changing organizational leadership
D) refining competitive strategy
E) improving human resource management
Answer: B
51) ________ ideas are ideas that focus on inventions for improving a manufacturing practice or
procedure.
A) Product
B) Technology
C) Process
D) Service
E) Management
Answer: C
Difficulty: Easy
16
52) Which one of the following is an example of a topic that process ideas encompass in the
A) redesigning workstations to make workers more productive
B) improving human resource management
C) changing organizational leadership
D) promoting products in the marketplace
E) distributing, packaging, and advertising products
Answer: A
53) ________ ideas are ideas that focus on invention relating to the way in which the
organization is supervised.
A) Management
B) Process
C) Technology
D) Service
E) Product
Answer: A
Difficulty: Easy
54) Which one of the following steps in the innovation process involves making a new idea
practical?
A) inventing
B) developing
C) diffusing
D) integrating
E) monitoring
Answer: B
17
55) ________ is defined as the step of the innovation process that puts a new idea to use by end
users or customers.
A) Diffusing
B) Inventing
C) Developing
D) Monitoring
E) Integrating
Answer: A
Difficulty: Easy
56) ________ is defined as the step of the innovation process that establishes an invention as a
permanent part of the organization.
A) Inventing
B) Developing
C) Integrating
D) Diffusing
E) Monitoring
Answer: C
Difficulty: Easy
57) ________ is the step of the innovation process in which a newly implemented idea is tracked
to determine if and when the idea should be improved or terminated.
A) Integrating
B) Monitoring
C) Diffusing
D) Inventing
E) Developing
Answer: B
Difficulty: Easy
18
58) Which one of the following statements best corresponds to the inventing step of the
innovation process?
A) Netflix decides to deliver television shows and movies digitally through Internet streaming.
B) Netflix must determine which shows will be produced, where it will be filmed, which actors
will star in the shows, and who will direct the actors.
C) Netflix customers would be shown the first episodes of a series to determine the show's utility
and worth to customers.
D) Netflix management makes the series an established component of the company's product
line.
E) Netflix considers feedback from viewers and the effect of the series on profits to determine
whether the series should be continued or canned.
Answer: A
AACSB: Reflective Thinking
Classification: Critical Thinking
59) Which one of the following statements best corresponds to the developing step of the
innovation process?
line.
Answer: B
19
60) Which one of the following statements best corresponds to the diffusing step of the
innovation process?
line.
Answer: C
61) Which one of the following statements best corresponds to the integrating step of the
innovation process?
line.
Answer: D
20
62) Which one of the following statements best corresponds to the monitoring step of the
innovation process?
line.
Answer: E
63) ________ involves taking a concept or a product created for a very specific use and
extending it to a new, often larger, audience.
A) Inventing
B) Developing
C) Reverse innovation
D) Diffusing
E) Integrating
Answer: C
Difficulty: Easy
64) Which one of the following steps in the innovation process involves making new ides
practical?
A) inventing
B) developing
C) diffusing
D) integrating
E) monitoring
Answer: B
21
65) What is the "innovation process"? Briefly describe the different steps involved in the
innovation process.
Answer: Innovation process is defined as the steps managers take to implement creative ideas.
In reality, the number of steps that specific implementations require may be debatable. Such
steps can range from straightforward steps, such as issuing specific orders to production
supervisors, to complicated steps that might include determining the potential value of a planned
innovation under consideration. To make managing the innovation process more practical,
however, managers can visualize the process as having five main steps:
1. Inventing is defined as the step of the innovation process that establishes a new idea that could
help the organization be more successful. The innovation process begins with the determination
of some new idea.
2. Developing is defined as that step of the innovation process that makes a new idea practical.
After being established in step 1, an idea must next be developed, or made practical as a vehicle
for enhancing organizational success.
3. Diffusing is defined as that step of the innovation process that puts a new idea to use by end
users or customers. If the idea is for an improvement to an organizational process, organization
members who would be affected by the idea would explore using the idea to test its utility and
worth. If the idea is for establishing a new product, perhaps certain customers would be given a
prototype product to test the ultimate utility and worth of the product.
4. Integrating is defined as that step of the innovation process that establishes an invention as a
permanent part of the organization. If the invention focuses on a new organizational process, for
example, management takes steps to make the new process standard operating procedure within
the organization. If the invention focuses on a new product, management takes steps to start
manufacturing and selling the new product to the marketplace.
5. Monitoring is that step of the innovation process in which a newly implemented idea is
tracked to determine if and when the idea should be improved or terminated. Management
monitors newly implemented ideas to make sure contributions to organizational success
generated by the ideas continues to accrue. As long as implemented ideas continue to make a
contribution to organizational success, the useful lives of those ideas continue. When new ideas
cease to make a contribution to organizational success, however, the ideas should be improved or
terminated.
66) ________ is presented as the degree of excellence on which products or services can be
ranked on the basis of selected features.
A) Design
B) Quality
C) Aesthetics
D) Practicality
E) Novelty
Answer: B
Learning Obj: LO 6.5: An understanding of total quality as a base for spawning creative ideas
Difficulty: Easy
22
67) ________ is the continuous process of involving all organization members in ensuring that
every activity related to the production of goods or services has an appropriate role in
establishing product quality.
A) Customer relationship management
B) Enterprise resource planning
C) Supply chain management
D) Total quality management
E) Warehouse management
Answer: D
Difficulty: Easy
68) ________ is defined as how closely and reliably a product satisfies its specifications.
A) Value
B) Design
C) Novelty
D) Quality
E) Aesthetics
Answer: D
Difficulty: Easy
69) Which one of the following is a consequence of organizational activities that contribute to
product quality?
A) lower market share
B) lower warranty costs
C) greater rework and scrap costs
D) greater liability costs
E) higher manufacturing costs
Answer: B
23
70) Successful TQM efforts typically result in ________.
A) diverse work groups
B) retention of creative employees
C) enriched innovation
D) improved technology ideas
E) lower product liability costs
Answer: E
Difficulty: Easy
71) The most prestigious award instituted to recognize those organizations that produce
exceptionally high-quality products and services is the ________.
A) Malcolm Baldrige National Quality Award
B) Larry Goill Awards for Quality Management Ideas
C) Deming Award
D) Shingo Prize
E) European Foundation for Quality Management Excellence Award
Answer: C
72) Which one of the following is the most widely known award in the United States that
recognizes those organizations that produce exceptionally high-quality products and services?
A) the Deming Award
B) the Shingo Prize
C) the President's Quality Award
D) Goethals Medal
E) the Malcolm Baldrige National Quality Award
Answer: E
73) The first step in the incremental improvement process is ________.

A) choosing an improvement area
B) organizing a quality improvement team
C) identifying amount of improvement required to match best performance
D) performing an analysis of the current performance
E) performing a pilot study to selected remedies to the problem
Answer: A
24
74) In the incremental improvement process, after the improvement "theme" has been identified,
the next step is to ________.
A) identify benchmarks
B) organize a quality improvement team
C) perform an analysis of current performance
D) undertake a pilot study
E) identify how improvement is required
Answer: B
75) Which one of the following statements is true of the reengineering improvements process?
A) The reengineering approach prescribes that those who use the output of a process should
perform the process themselves.
B) Reengineering improvements involves making several sequential improvements in quality
one thing at a time.
C) Reengineering improvements dictates that organizations separate decision authority from the
actual work.
D) In contrast to incremental improvements, reengineering does away with the concept of teams
representing the functional units in the process to be reengineered.
E) Hammer's model of reengineering improvements recommends that information-processing
work must be insulated from the real work involved in producing the information.
Answer: A
76) Which one of the following is one of the principles of reengineering, as outlined by Michael
Hammer?
A) Work should be organized around tasks, rather than outcomes.
B) Information-processing work should be carried out separately from the real work that
produces the information.
C) Geographically dispersed resources must be treated as though they are decentralized and
autonomous.
D) Parallel activities should be linked instead of integrating their results.
E) Control should be built into processes by keeping the decision point apart from where the
work is performed.
Answer: D
25
77) Wayne Thomas has recently taken over as head of quality assurance at Talladega Motors
with the aim to overhaul the quality improvement procedures in place. After extensive studies
conducted on the operations of the organization, Wayne decides that the company will have to
proceed with a reengineering approach for quality improvement. Which one of the following
actions is Wayne most likely to initiate in keeping with the decision to reengineer the quality
management system?
A) reorganizing work around different tasks, such as procurement, assembly, and testing
B) outsourcing the purchasing and accounting functions of the production department in order to
streamline the production process
C) providing each of the company's five manufacturing plants with an autonomous purchasing
department to improve responsiveness to local manufacturing needs
D) building control into the process by vesting greater decision-making authority with divisional
supervisors at the manufacturing plants
E) segregating the production processes for engines, chassis, and other spares, and assembling
the final product only at the final stage
Answer: D
Classification: Application
78) Which one of the following is a creative idea for enhancing organizational success based on
Crosby's thoughts on total quality management?
A) Use product inspections to improve the manufacturing process and reduce costs.
B) Eliminate production processes based simply on producing a quota.
C) Begin each management meeting with a factual and financial review of quality.
D) Create production processes based upon learning how to improve the processes.
E) Abolish organizational bias toward handling quality issues immediately.
Answer: C
79) According to Crosby, significant progress in product quality can be reached when ________.
A) quality goals are published to workers so that they know exactly what they are expected to do
B) product inspections are used in order to improve the manufacturing process and reduce the
costs
C) the design and manufacturing process of a product are continuously improved
D) organizational integrity, systems, communications, operations, and policies are consistent
with achieving product quality
E) self development of workers as useful players in maintaining quality is encouraged
Answer: D
26
80) According to Deming, the way to achieve product quality is by ________.
A) depending on inspections in order to improve quality of the product
B) making use of management by objectives in all departments of an organization
C) having clear barriers between the various branches of an organization
D) using more than two suppliers and process methods for a single product
E) continuously improving the design and manufacturing process of a product
Answer: E
81) According to Deming, which one of the following is a creative idea for enhancing
organizational success?
A) Create relevant policies on quality management that are clear and unambiguous.
B) Develop communications systems that allow managers to respond immediately to quality
issues.
C) Encourage self-development of workers as more useful players in maintaining quality.
D) Begin each management meeting with a factual and financial review of quality.
E) Dedicate the quality management function to measuring conformance to requirements.
Answer: C
82) Managers today need to be aware quality is not just determined at the end of a production
line. Which one of the following quality attributes is determined by customers' perception of an
organization?
A) decreased liability costs
B) positive company image
C) lower costs
D) higher market share
E) increased profitability
Answer: B
27
83) Understanding the true essence of the total quality management process is the realization that
TQM is a ________, not a ________.
A) continuous journey; catalyst
B) destination; procedure
C) continuous process; destination
D) procedure; destination
E) continuous journey; procedure
Answer: C
Classification: Application
84) According to the reengineering improvements process, work should be organized around
outcomes rather than tasks.
Answer: TRUE
Difficulty: Easy
85) According to W. Edwards Deming, employees have the primary responsibility for achieving
product quality.
Answer: FALSE
86) According to W. Edwards Deming, top management must be dedicated to having customers
receive products as promised.
Answer: FALSE
28
87) What is total quality management? Give a brief history of the evolution of total quality
management and the principles behind the concept.
Answer: Total quality management (TQM) is the continuous process of involving all
organization members in ensuring that every activity related to the production of goods or
services has an appropriate role in establishing product quality. In other words, all organization
members emphasize the appropriate performance of activities throughout the company to
maintain the quality of products offered by the company. Under the TQM concept, organization
members work both individually and collectively to maintain the quality of products offered to
the marketplace.
Although the TQM movement actually began in the United States, its establishment,
development, and growth throughout the world are largely credited to the Japanese. The
Japanese believe that a TQM program should be company-wide and must include the
cooperation of all people within a company. Top managers, middle managers, supervisors, and
workers throughout the company must strive together to ensure that all phases of company
operations appropriately affect product quality. The company operations referred to include areas
such as market research, research and development, product planning, design, production,
purchasing, vendor management, manufacturing, inspection, sales, after-sales customer care,
financial control, personnel administration, and company training and education.
88) What are the benefits that an organization can enjoy by successfully offering high-quality
products and services to the marketplace?
Answer: Producing high-quality products is not an end in itself. Rather, successfully offering
high-quality goods and services to the marketplace typically results in three important ends for
the organization: a positive company image, lower costs and higher market share, and decreased
product liability costs.
Positive company image: A reputation for high-quality products creates a positive image for an
organization, and organizations gain many advantages from having such an image. A positive
image helps a firm recruit valuable new employees, accelerate sales of its new products, and
obtain needed loans from financial institutions. To summarize, high-quality products generally
result in a positive company image, which leads to numerous organizational benefits.
Lower costs and higher market share: Activities that support product quality benefit the
organization by yielding lower costs and greater market share. Greater market share or gain in
product sales is a direct result of customer perception of improved product quality.
Organizational activities that contribute to product quality result in such benefits as increased
productivity, lower rework and scrap costs, and lower warranty costs, which, in turn, result in
lower manufacturing costs and lower costs of servicing products after they are sold.
Decreased product liability costs: Product manufacturers are increasingly facing costly legal suits
over damages caused by faulty products. More and more frequently, organizations that design and
produce faulty products are being held liable in the courts for damages resulting from the use of such
products. Successful TQM efforts typically result in improved products and product performance,
and the normal result of improved products and product performance is lower product liability costs.
29
89) What are the steps involved in the incremental improvement process?
Answer:
Step 1: An area of improvement is chosen, ten is called the improvement "theme" — Either
management or an improvement team may choose the theme.
Step 2: If a quality improvement team has not already been organized, one is organized.
Step 3: The team "benchmarks" the best performers — that is, identifies how much improvement
is required to match the best performance.
Step 4: The team performs an analysis to find out how current performance can be improved to
meet, or beat, the benchmark.
Step 5: The team performs a pilot study to test the selected remedies to the problem.
Step 6: Management implements the improvements.
Difficulty: Easy
90) What are the seven principles of reengineering improvements, as outlined by Michael
Hammer?
Answer:
Principle 1: Organize around outcomes, not tasks
Principle 2: Have those who use the output of the process perform the process
Principle 3: Subsume information-processing work into the real work that produces the
information
Principle 4: Treat geographically dispersed resources as though they were centralized
Principle 5: Link parallel activities instead of integrating their results
Principle 6: Put the decision point where the work is performed and build control into the process
Principle 7: Capture information once and at the source
Difficulty: Easy
30

Chapter 6 Encouraging Creativity and Innovation: Modern Management, 15e (Certo)

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 6 Encouraging Creativity and Innovation: Modern Management, 15e (Certo)

Uploaded by

Copyright:

Available Formats

Modern Management, 15e (Certo)

Chapter 6 Encouraging Creativity and Innovation

3) ________ determines how flexibly and imaginatively individuals approach problems.

6) Which one of the following is considered to be a raw material for creativity?

12) Creativity can be sufficiently analyzed from an organization's perspective in terms of

15) Describe the importance of creativity in organizations.

30) If a manager is seeking to stimulate creativity in his/her workers by combining differences

43) How are innovation and creativity connected?

73) The first step in the incremental improvement process is ________.

You might also like