Chapter 19 Encouraging Creativity and Innovation
1) Creativity can be sufficiently analyzed from an organization's perspective in terms of
originality or newness.
Answer: False
Rationale:
Creativity cannot be fully analyzed simply by looking at the originality or newness of ideas.
It involves a complex interplay of various factors, including the context, the individual's
expertise, and the novelty of the idea within that context.
2) Creative thinking pertains to work-related techniques and procedures as well as a thorough
understanding of overall work circumstances.
Answer: False
Rationale:
Creative thinking is not limited to work-related techniques and procedures or understanding
work circumstances. It involves the ability to think divergently, generate novel ideas, and
approach problems in innovative ways, which can be applied to various aspects of life, not
just work.
3) Expertise is the component of creativity that refers to an individual's need or passion to be
creative.
Answer: False
Rationale:
Expertise refers to the knowledge and skills that an individual possesses in a particular
domain. While passion or need for creativity can drive someone to apply their expertise in
creative ways, expertise itself is distinct from the motivation to be creative.
4) Expertise and creative thinking are the individual's raw materials for being creative, but
motivation determines whether an individual will actually be creative.
Answer: True
Rationale:
Expertise and creative thinking provide the foundation for creativity, but motivation is the
driving force that determines whether an individual will actively engage in creative activities
and pursue innovative ideas.
5) 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
Rationale:
Creativity is primarily driven by intrinsic factors such as personal interest, passion, and the
desire to solve problems or explore new ideas. While extrinsic rewards or punishments can
influence behavior, they are not the primary drivers of creativity.
6) 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
Rationale:
Jobs that do not challenge employees enough can lead to boredom and disengagement, which
can hinder creativity. A certain level of challenge and stimulation is necessary to keep
employees engaged and motivated to think creatively.
7) Employees who are more likely to think creatively under low time-pressure show creative
thinking that is more oriented toward identifying problems than generating or exploring
ideas.
Answer: False
Rationale:
Creative thinking under low time-pressure can lead to both problem identification and idea
generation. The constraint of time can sometimes enhance creativity by encouraging
individuals to quickly generate and explore ideas without overthinking.
8) In the past, many managers believed that organization members normally generated their
best creative ideas when operating under tight time constraints.
Answer: True
Rationale:
There is a belief among some managers that tight time constraints can stimulate creativity by
forcing individuals to focus, think quickly, and generate innovative solutions under pressure.
However, this belief is not universally accepted, and some argue that too much pressure can
hinder creativity.
9) Managers can ensure the generation of creativity by making work groups more diverse.
Answer: False
Rationale:
While diversity can contribute to creativity by bringing different perspectives and ideas to the
table, it is not a guarantee of creativity. Creativity also depends on factors such as the culture
of the organization, the level of support for creativity, and the individual characteristics of
group members.
10) Identifying job candidates who are creative and hiring them is one of the more easily
implemented steps for increasing organizational creativity.
Answer: False
Rationale:
While hiring creative individuals can contribute to organizational creativity, it is not always
easy to identify and hire such candidates. Creativity is a complex trait that may not be easily
assessed through traditional hiring methods, and organizations may need to implement
specific strategies to attract and retain creative talent.
11) Managers should surround non-creative employees with creative employees so that
creativity can rub off on the non-creative employees.
Answer: False
Rationale:
While exposure to creative individuals can potentially inspire others, creativity is a complex
trait that cannot simply "rub off" on individuals. Creativity is influenced by various factors,
including individual characteristics, organizational culture, and the work environment, and
cannot be transferred like a skill.
12) 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
Rationale:
Creativity is the generation of new and novel ideas, while innovation involves implementing
those ideas to create value. An organization can be innovative without necessarily being
creative if it excels at implementing existing ideas in new ways or bringing ideas to market,
even if those ideas were not internally generated.
13) Developing is defined as that step of the innovation process that makes a new idea
practical.
Answer: True
Rationale:
Developing is the step in the innovation process where ideas are translated into practical
applications. This involves refining the idea, testing its feasibility, and making it ready for
implementation.
14) The establishment, development, and growth of the total quality management (TQM)
movement throughout the world is largely credited to the United States.
Answer: False
Rationale:
While the United States played a significant role in the development and promotion of Total
Quality Management (TQM), the movement has its roots in the work of quality pioneers like
Walter Shewhart and W. Edwards Deming, who worked both in the United States and
internationally.
15) The first step in the incremental improvement process involves organizing a quality
improvement team.
Answer: False
Rationale:
The first step in the incremental improvement process typically involves identifying areas for
improvement and setting specific improvement goals. Organizing a quality improvement
team may come later in the process, once the improvement goals have been established.
16) According to the reengineering improvements process, work should be organized around
outcomes rather than tasks.
Answer: True
Rationale:
Reengineering emphasizes organizing work around outcomes or results rather than specific
tasks. This approach aims to streamline processes and eliminate unnecessary steps by
focusing on the desired outcome and then determining the most efficient way to achieve it.
17) In the reengineering improvements process, those who use the output of a process are
required to perform the process.
Answer: True
Rationale:
In reengineering, the emphasis is on empowering those who use the output of a process to
also perform the process. This approach is intended to increase efficiency and accountability
by ensuring that those who are directly affected by a process are involved in its improvement.
18) The reengineering improvements process emphasizes integrating the results of parallel
activities instead of linking them.
Answer: False
Rationale:
The reengineering process emphasizes linking or integrating parallel activities to eliminate
redundancy and improve efficiency. By integrating parallel activities, organizations can
streamline processes and reduce duplication of effort.
19) According to Deming, employees have the primary responsibility for achieving product
quality.
Answer: False
Rationale:
According to W. Edwards Deming, top management has the primary responsibility for
achieving product quality. Deming emphasized the importance of management's commitment
to quality improvement and creating an environment that fosters continuous improvement.
20) According to W. Edwards Deming, top management must be dedicated to having
customers receive products as promised.
Answer: False
Rationale:
While Deming emphasized the importance of meeting customer needs and expectations, his
philosophy of quality management focused more broadly on creating a system of continuous
improvement rather than just meeting customer promises. Deming believed that a focus on
quality would naturally lead to customer satisfaction.
21) ________ 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
Rationale:
Creativity is specifically about generating new ideas or seeing existing ideas in new ways. It
involves thinking beyond the conventional and exploring novel solutions or perspectives.
22) ________ is commonly discussed as a critical resource that fuels creativity in
organization members.
A) Knowledge
B) Relevant skill
C) Motivation
D) Innovation
E) Appropriate time
Answer: E
Rationale:
Having appropriate time is crucial for allowing individuals to explore ideas, experiment, and
think creatively without feeling rushed. Time constraints can limit creativity, so providing
sufficient time is seen as a critical resource for fostering creativity.
23) ________ 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
Rationale:
Expertise is the knowledge and skills that an individual possesses in a particular domain. It is
a critical component of creativity because it provides the foundation for generating new ideas
and solving complex problems within that domain.
24) Which 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
Rationale:
Creative thinking involves the ability to combine existing ideas in new ways or to see
connections between seemingly unrelated concepts. It allows individuals to generate novel
solutions and think innovatively.
25) ________ determines how flexibly and imaginatively individuals approach problems.
A) Expertise
B) Creative thinking
C) Confidence
D) Knowledge
E) Motivation
Answer: B
Rationale:
Creative thinking is the ability to approach problems in a flexible and imaginative way. It
involves thinking outside the box, exploring multiple perspectives, and generating innovative
solutions.
26) ________ is the component of creativity that refers to an individual's need or passion to
be creative.
A) Motivation
B) Creative thinking
C) Expertise
D) Experience
E) Confidence
Answer: A
Rationale:
Motivation is the driving force behind creativity. It refers to the internal desire or passion to
engage in creative activities and explore new ideas. Motivation plays a crucial role in
determining whether an individual will actively pursue creative endeavors.
27) Which 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
Rationale:
Motivation is the key determinant of whether an individual will engage in creative thinking
and behavior. Even if someone has the necessary expertise and skills, without motivation,
they may not actively seek out opportunities to be creative.
28) Which of the following is considered to be a raw material for creativity?
A) passion
B) expertise
C) motivation
D) interest
E) drive
Answer: B
Rationale:
Expertise is considered a raw material for creativity because it provides the foundation of
knowledge and skills upon which creative ideas are built. Without expertise in a particular
domain, it can be challenging to generate novel and meaningful ideas.
29) Which 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
Rationale:
Organizational rewards, such as promotions, bonuses, or recognition, are external incentives
that can motivate individuals to be creative. These rewards are typically provided by the
organization as a way to encourage and recognize creative behavior.
30) Which 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
Rationale:
Personal interest refers to the internal motivation that comes from within an individual. It is
driven by a genuine passion or curiosity about a topic or problem, rather than external
rewards or incentives. Personal interest is often a strong driver of creativity as it reflects a
deep-seated desire to explore and innovate.
31) Which of the following steps taken by managers to stimulate creativity is considered the
most effective?
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
Rationale:
Providing an appropriate level of job-related challenge is considered the most effective way
to stimulate creativity. It encourages employees to think creatively to overcome challenges
and find innovative solutions, leading to increased creativity and innovation in the
organization.
32) Which 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
Rationale:
Employees who feel as if they are on an expedition, according to the time-pressure/creativity
matrix, tend to show creative thinking that is more oriented toward generating or exploring
ideas than identifying problems. They are likely to be more exploratory and innovative in
their thinking.
33) 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
Rationale:
People who feel as if they are on autopilot, according to the time-pressure/creativity matrix,
tend to receive little encouragement from senior management to be creative and engage in
less collaborative work overall. They may feel stuck in routine and lack the motivation to
think creatively.
34) 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
Rationale:
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 autopilot. They may feel stuck in routine and lack
the motivation to think creatively.
35) Which 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
Rationale:
A person who is more likely to think creatively under low time pressure tends to collaborate
with one person rather than with a group. This suggests that they may prefer to work in a
more focused and intimate setting, which can facilitate creative thinking.
36) Which 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
Rationale:
The metaphor "on an expedition" best describes the feeling of people who are more likely to
think creatively under low time pressure. This suggests that they approach their work as an
adventure, exploring new ideas and possibilities without feeling rushed or pressured.
37) Which 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
Rationale:
A person who is more likely to think creatively under high time pressure can focus on one
activity for a significant part of the day as he or she is undisturbed or protected. This suggests
that they are able to concentrate and think creatively even when under pressure.
38) 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
Rationale:
Creative thinking under extreme time pressure is more likely when people feel as if they are
on a mission. This suggests that they are focused on achieving a specific goal or objective,
which can stimulate creative thinking and problem-solving.
39) 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
Rationale:
According to the time-pressure/creativity matrix, if employees feel like they are on a
treadmill, they are most likely to experience a highly fragmented workday, with many
different activities. This suggests that they may feel overwhelmed and lack the time and focus
needed for creative thinking.
40) 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
Rationale:
Creative thinking under extreme time pressure is unlikely when people feel as if they are on a
treadmill. This suggests that they may feel stuck in routine and lack the motivation or
opportunity for creative thinking.
41) 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
Rationale:
Innovation is the process of applying a new idea to the improvement of organizational
processes, products, or services. It involves transforming creative ideas into tangible benefits
for the organization.
42) Which 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
Rationale:
Creativity often involves taking risks and trying new approaches, so a moderate level of
concern with failure is often attributed to creative individuals. This concern can drive them to
carefully consider their ideas and how they can be implemented.
43) Which 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: C
Rationale:
Apple is widely regarded as one of the most innovative companies in the world, known for its
groundbreaking products and designs that have transformed industries such as technology,
music, and telecommunications.
44) Which 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
Rationale:
The statement that best describes the link between innovation and creativity is: "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." Creativity involves generating
new ideas, while innovation involves implementing those ideas to create value.
45) ________ is defined as the steps managers take to implement creative ideas.
A) Brainstorming
B) Ideation
C) Innovation process
D) Mentation
E) Intellection
Answer: C
Rationale:
The innovation process refers to the steps managers take to implement creative ideas and turn
them into tangible outcomes that benefit the organization. It involves identifying
opportunities, developing ideas, and implementing solutions.
46) Which 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
Rationale:
The inventing stage of the innovation process involves developing new ideas that could help
the organization be more successful. This stage is focused on generating and refining creative
ideas that have the potential to create value.
47) 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
Rationale:
Using videoconferencing to help organization members across the globe communicate more
effectively is an example of a technology idea. Technology ideas involve the use of
technology to improve processes, products, or services within an organization.
48) Which 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
Rationale:
Employing barcoding to better manage inventory is an example of a topic that technology
ideas encompass in the invention stage of the innovation process. Technology ideas involve
the use of technology to improve processes, products, or services within an organization.
49) Which of the following is an example of a topic that management ideas encompass in the
invention stage of the innovation process?
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
Rationale:
Redesigning organizational structure is an example of a topic that management ideas
encompass in the invention stage of the innovation process. Management ideas involve
changes to organizational structures, policies, or procedures to improve efficiency and
effectiveness.
50) ________ 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
Rationale:
Product ideas are ideas that focus on invention that develops new offerings or enhances
existing offerings by the organization. These ideas involve creating new products or
improving existing ones to meet customer needs and preferences.
51) Which of the following is an example of a topic that product ideas encompass in the
invention stage of the innovation process?
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
Rationale:
Product ideas in the invention stage of the innovation process focus on developing new
products or improving existing ones. This includes considerations such as pricing, packaging,
and distribution strategies.
52) ________ 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
Rationale:
Process ideas in the innovation process focus on inventions for improving manufacturing
practices or procedures, such as enhancing efficiency or reducing waste.
53) Which of the following is an example of a topic that process ideas encompass in the
invention stage of the innovation process?
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
Rationale:
Process ideas in the invention stage focus on improving how work is done, such as
redesigning workstations to make workers more productive.
54) ________ 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
Rationale:
Management ideas in the innovation process focus on inventions relating to how the
organization is supervised or managed, such as implementing new leadership strategies or
structures.
55) Which 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
Rationale:
The developing step in the innovation process involves making a new idea practical by
refining and testing it to ensure it can be implemented effectively.
56) ________ 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
Rationale:
The diffusing step of the innovation process involves putting a new idea to use by end users
or customers through activities such as marketing and distribution.
57) ________ 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
Rationale:
The integrating step of the innovation process involves establishing an invention as a
permanent part of the organization by incorporating it into regular operations and systems.
58) ________ 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
Rationale:
The monitoring step of the innovation process involves tracking a newly implemented idea to
determine its success and whether it should be improved, expanded, or terminated based on
its performance.
Faced with increasing competition from Facebook, Twitter, and other social networking sites,
Google decided that it needed its own presence in the social networking site scene. Following
brainstorming sessions, Google came up with the idea of Buzz. The Google team released
application programming interfaces (APIs) to allow third-party developers to create
applications on the Buzz platform and also homed in on features such as sharing links,
photos, videos, status messages, and comments for Buzz. A beta version of Buzz that would
come integrated with the company's Web-based email program, Gmail, was announced in
February 2010. After testing user reaction to the new message tool, Google rolls out the code
complete Buzz release. It continues to offer newer features that are integrated with Buzz
every so often and is always on the lookout to address any user concerns about privacy that
dogged the application in the early days of its inception.
59) Which of the following statements best corresponds to the inventing step of the
innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social
networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses
user concerns.
Answer: A
Rationale:
The inventing step of the innovation process involves coming up with new ideas or concepts.
In this case, Google deciding to create Buzz in response to competition represents the initial
idea generation phase.
60) Which of the following statements best corresponds to the developing step of the
innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social
networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses
user concerns.
Answer: B
Rationale:
The developing step of the innovation process involves turning ideas into practical
applications. Creating APIs for third-party applications is an example of this, as it involves
the practical development of a feature for the Buzz platform.
61) Which of the following statements best corresponds to the diffusing step of the
innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social
networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out the final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses
user concerns.
Answer: C
Rationale:
The diffusing step involves releasing the innovation (in this case, the beta version of Buzz) to
a limited audience for testing and feedback. This allows for adjustments based on user
responses before the full release.
62) Which of the following statements best corresponds to the integrating step of the
innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social
networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out the final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses
user concerns.
Answer: D
Rationale:
The integrating step involves rolling out the final, fully functional version of the innovation
(Buzz) to users. This step ensures that the product is ready for use by the intended audience.
63) Which of the following statements best corresponds to the monitoring step of the
innovation process?
A) Google decides to create Buzz in response to competition from Facebook and other social
networking sites.
B) Google's team creates APIs for third-party applications.
C) Google releases the beta version of Buzz for usability testing.
D) Google rolls out the final code complete version of Buzz for users, rid of bugs and defects.
E) Google continues to add newer features and widgets to the Buzz platform and addresses
user concerns.
Answer: E
Rationale:
The monitoring step involves ongoing evaluation and improvement of the innovation (Buzz)
based on user feedback and market trends. This ensures that the product remains relevant and
competitive.
64) ________ 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
Rationale:
Reverse innovation involves taking an existing concept or product and extending its use to a
new, often larger, audience. This process can lead to new markets and opportunities for
growth.
65) ________ 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
Rationale:
Quality is the degree of excellence on which products or services can be ranked. It is often
measured based on selected features such as durability, reliability, and performance.
66) ________ 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
Rationale:
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
contributes to establishing product quality. TQM aims to improve customer satisfaction and
organizational performance.
67) ________ is defined as how closely and reliably a product satisfies its specifications.
A) Value
B) Design
C) Novelty
D) Quality
E) Aesthetics
Answer: D
Rationale:
Quality is defined as how closely and reliably a product satisfies its specifications. It is a
measure of excellence or superiority of a product or service.
68) Which 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
Rationale:
Organizational activities that contribute to product quality often result in lower warranty
costs. This is because high-quality products are less likely to experience defects or failures,
reducing the need for warranty repairs or replacements.
69) 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
Rationale:
Successful Total Quality Management (TQM) efforts typically result in lower product
liability costs. This is because high-quality products are less likely to cause harm or fail,
reducing the risk of liability claims.
70) 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
Rationale:
The Deming Award is the most prestigious award instituted to recognize organizations that
produce exceptionally high-quality products and services. It is named after W. Edwards
Deming, a pioneer in the field of quality management.
71) Which 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
Rationale:
The Malcolm Baldrige National Quality Award is the most widely known award in the United
States that recognizes organizations for their achievements in quality and performance
excellence. It was established in 1987 and is named after Malcolm Baldrige, who served as
the Secretary of Commerce from 1981 until his death in 1987. The award is administered by
the National Institute of Standards and Technology (NIST) and the Baldrige Performance
Excellence Program.
72) The first step in the incremental improvement process is ________.
A) choosing an improvement area
B) organizing a quality improvement team
C) identifying the 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
Rationale:
The first step in the incremental improvement process is to choose an improvement area. This
involves identifying a specific aspect of the organization's operations or processes that can be
improved.
73) 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
Rationale:
After the improvement "theme" has been identified in the incremental improvement process,
the next step is to organize a quality improvement team. This team is responsible for
developing and implementing the improvement plan.
74) Which 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 involve making several sequential improvements in quality
one thing at a time.
C) Reengineering improvements dictate 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
Rationale:
The statement "The reengineering approach prescribes that those who use the output of a
process should perform the process themselves" is true of the reengineering improvements
process. This approach, also known as the "owner-worker principle," suggests that those who
use the output of a process should be involved in designing and performing the process to
improve its efficiency and effectiveness.
75) Which 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
Rationale:
One of the principles of reengineering, as outlined by Michael Hammer, is that parallel
activities should be linked instead of integrating their results. This principle emphasizes the
importance of integrating and aligning activities to improve overall efficiency and
effectiveness.
76) 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 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
Rationale:
In a reengineering approach for quality improvement, Wayne is likely to initiate actions that
involve building control into the process by vesting greater decision-making authority with
divisional supervisors at the manufacturing plants. This approach aligns with the principles of
reengineering, which emphasize decentralization and empowering those closest to the work
to make decisions.
77) Which 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
Rationale:
Beginning each management meeting with a factual and financial review of quality is a
creative idea for enhancing organizational success based on Crosby's thoughts on total quality
management. This approach helps to prioritize quality in organizational discussions and
decision-making processes.
78) 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
Rationale:
According to Crosby, significant progress in product quality can be reached when
organizational integrity, systems, communications, operations, and policies are consistent
with achieving product quality. This emphasizes the importance of aligning all aspects of an
organization towards the goal of quality improvement.
79) According to Deming, the way to achieve product quality is by ________.
A) depending on inspections in order to improve the 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
Rationale:
According to Deming, the way to achieve product quality is by continuously improving the
design and manufacturing process of a product. Deming emphasized the importance of
focusing on process improvement rather than relying solely on inspections to achieve quality.
80) According to Deming, which 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
Rationale:
According to Deming, encouraging the self-development of workers as more useful players
in maintaining quality is a creative idea for enhancing organizational success. Deming
believed that empowered and knowledgeable employees are essential for achieving quality
improvement.
81) 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.
82) What are 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 combinations. Overall,
creative thinking determines how flexibly and imaginatively individuals approach problems.
An enduring attention to problems will afford the employees the attention 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.
83) 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 to
be creative from management. 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.
84) 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.
85) 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.
86) 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.
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.
89) What are the steps involved in the incremental improvement process?
Answer:
Step 1: An area of improvement is chosen, which often 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.
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
Test Bank for Modern Management: Concepts and Skills
Samuel C. Certo, S. Trevis Certo
9780133059922, 9780133254105, 9780135983546
