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CHAPTER 1
INTRODUCTION TO QUALITY AND PERFORMANCE EXCELLENCE
TRUE/FALSE QUESTIONS
1.
The view of quality as the satisfaction of customer needs is often called fitness for
use.
Answer: True
AACSB: Analytic
Page: 6
2.
Pursuant to the development of “scientific management,” quality control was
carried out by skilled craftspeople, who served both as manufacturers and
inspectors, building quality into their products.
Answer: False
AACSB: Analytic
Page: 10
3.
In 1984, the U.S Government designated November as the National Quality
Month.
Answer: True
AACSB: Analytic
Page: 11
4.
Tolerances are acceptable deviations from targets.
Answer: True
AACSB: Analytic
Page: 15
5.
Performance excellence can be defined as “any primary or complementary
activity that does not directly produce a physical product.”
Answer: False
AACSB: Analytic
Page: 15
6.
Unlike services, manufacturing is performed away from the customer.
Answer: True
AACSB: Reflective Thinking
Page: 16
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7.
For an airline company, “on time arrival” for an airline is a measure of service
performance while frequent flyer awards and “business class” sections represent
features.
Answer: True
AACSB: Reflective Thinking
Page: 17
8.
Not-for-profit organizations are adopting quality principles because of their
impact on the bottom line.
Answer: False
AACSB: Reflective Thinking
Page: 21
9.
From a total quality perspective, all strategic decisions a company makes are
“customer-driven.”
Answer: True
AACSB: Reflective Thinking
Page: 23
10.
TQ views everyone inside the enterprise as a customer of an internal or external
supplier and a supplier of an external or internal customer.
Answer: True
AACSB: Reflective Thinking
Page: 23
11.
The “voice of the customer” refers to both near-term and longer-term customer
needs and expectations.
Answer: True
AACSB: Analytic
Page: 24
12.
The traditional way of viewing an organization is by surveying the horizontal
dimension.
Answer: False
AACSB: Reflective Thinking
Page: 24
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duplicated, or posted to a publicly accessible website, in whole or in part.
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13.
“Continuous improvement” refers to both incremental and “breakthrough”
improvement.
Answer: True
AACSB: Analytic
Page: 26
14.
Considering the three classes of needs suggested by Noriaki Kano, the required
safety features in an automobile is an example of a satisfier.
Answer: False
AACSB: Reflective Thinking
Page: 26
15.
Process time refers to the time it takes to accomplish one cycle of a process.
Answer: False
AACSB: Analytic
Page: 27
16.
A firm that is characterized by flexibility and short cycle times is considered to be
agile.
Answer: True
AACSB: Reflective Thinking
Page: 27
17.
Employee engagement is manifest by empowerment.
Answer: True
AACSB: Reflective Thinking
Page: 28
18.
Competitive behavior—one person against another or one group against
another—is one of the basic principles of TQ.
Answer: False
AACSB: Diversity
Page: 29
19.
Agency theory views the management system as one based on social and human
values, whereas total quality is based on an economic perspective.
Answer: False
AACSB: Reflective Thinking
Page: 35
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duplicated, or posted to a publicly accessible website, in whole or in part.
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20.
Agency theory suggests that information may be concealed to advance selfinterests.
Answer: True
AACSB: Reflective Thinking
Page: 36
21.
Agency theory assumes that risks are to be minimized and shared between the two
parties.
Answer: True
AACSB: Reflective Thinking
Page: 37
22.
In the organismic model, organizations are autonomous entities.
Answer: False
AACSB: Reflective Thinking
Page: 37
23.
In the organismic model of organizations, work is reduced to elementary tasks
with a focus on efficiency, conformity, and compliance.
Answer: False
AACSB: Reflective Thinking
Page: 37
24.
The mechanical organizational model assumes that systems goals, such as the
need to survive, displace performance goals, such as profit.
Answer: False
AACSB: Reflective Thinking
Page: 37
25.
In the cultural organizational model, managers relinquish control and share power
in order to meet the needs of the many individuals
Answer: True
AACSB: Diversity
Page: 39
MULTIPLE CHOICE QUESTIONS
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duplicated, or posted to a publicly accessible website, in whole or in part.
Full file at http://testbanksolution.eu/Test-Bank-Bank-for-Quality-And-PerformanceExcellence-6-E-by-Evans
26.
The term _____ refers to an integrated approach to organizational performance
management that results in delivery of ever-improving value to customers and
stakeholders.
a. fitness for use
b. exceeding customer expectations
c. performance excellence
d. empowerment
Answer: C
AACSB: Analytic
Page: 6-7
27.
Which of the following statements is not true regarding the history of quality in
organizations?
a. Before the Industrial Revolution, skilled craftspeople served both as
manufacturers and inspectors.
b. Statistical approaches to quality control had their origins at General Electric.
c. Scientific management led to “quality control” which basically meant the
separation of good from the bad product.
d. Deming and Juran introduced statistical quality control to Japan as part of
General MacArthur’s rebuilding program.
Answer: B
AACSB: Analytic
Page: 10
28.
_____ was the first non-Japanese company to win Japan’s coveted Deming Prize
for quality.
a. Florida Power and Light
b. General Electric
c. Bell Telephone Laboratories
d. Ford Motor Company
Answer: A
AACSB: Analytic
Page: 11
29.
As part of the evolving understanding of quality management, many began to use
the term _____ to contrast the difference between managing for quality in all
organizational processes and focusing solely on manufacturing quality - _____.
a. strategic quality; operational quality
b. macro-quality; micro-quality
c. Big Q; Little Q
d. total quality; product quality
Answer: C
AACSB: Analytic
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duplicated, or posted to a publicly accessible website, in whole or in part.
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Page: 12
30.
_____ refer(s) to the “bells and whistles” of a product.
a. Aesthetics
b. Conformance
c. Features
d. Benefits
Answer: C
AACSB: Reflective Thinking
Page: 14
31.
_____ refers to the degree to which physical and performance characteristics of a
product match preestablished standards.
a. Conformance
b. Features
c. Performance
d. Reliability
Answer: A
AACSB: Reflective Thinking
Page: 14
32.
_____ is the subjective assessment resulting from image, advertising, or brand
names.
a. Reliability
b. Perceived quality
c. Performance
d. Aesthetics
Answer: B
AACSB: Reflective Thinking
Page: 14
33.
Quality control in manufacturing is usually based on:
a. Six Sigma standards.
b. equipment standards.
c. customer expectations.
d. conformance to specifications.
Answer: D
AACSB: Analytic
Page: 15
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duplicated, or posted to a publicly accessible website, in whole or in part.
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34.
In an ancillary manufacturing unit, the bolt manufacturing section has a value of
0.095 as the target, 0.005 as the tolerance. Which of the following is the
acceptable range of values in production?
a. Between 0.090 and 0.100
b. Between 0.900 and 0.010
c. Between 9.500 and 1.005
d. Between 0.009 and 0.001
Answer: A
AACSB: Reflective Thinking
Page: 15
35.
Which of the following is not a difference in the management of quality in
services and manufacturing?
a. Customer needs and performance standards are often difficult to identify and
measure.
b. The production of services typically requires a higher degree of customization
than does manufacturing.
c. Customers often are involved in the service process and present while it is
being performed.
d. Services are generally capital intensive, whereas manufacturing is more labor
intensive.
Answer: D
AACSB: Reflective Thinking
Page: 16
36.
Which of the following is not one of the critical service dimensions?
a. Conformity
b. Consistency
c. Courtesy
d. Accessibility
Answer: A
AACSB: Analytic
Page: 17
37.
_____ is the term used in the health care profession to denote quality initiatives
methods.
a. Total health quality
b. Continuous quality improvement
c. Medical quality improvement
d. Comprehensive health initiative
Answer: B
AACSB: Analytic
Page: 19
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duplicated, or posted to a publicly accessible website, in whole or in part.
Full file at http://testbanksolution.eu/Test-Bank-Bank-for-Quality-And-PerformanceExcellence-6-E-by-Evans
38.
The _____ is the highest award given to executive branch agencies for
management excellence.
a. Deming Prize
b. Malcolm Baldrige Award
c. National Quality Improvement Award
d. President’s Quality Award
Answer: D
AACSB: Analytic
Page: 21
39.
In 1992, the chairs and CEOs of nine major U.S. corporations in cooperation with
deans of business and engineering departments of major universities, and
recognized consultants endorsed a definition of _____ as a people-focused
management system that aims at continual increase in customer satisfaction at
continually lower real cost.
a. Performance excellence
b. Total quality
c. Six Sigma
d. Continuous improvement
Answer: B
AACSB: Analytic
Page: 22
40.
Which of the following is not one of the basic principles of total quality?
a. Customer and stakeholder focus
b. Employee engagement and teamwork
c. Management by objectives
d. A view of performance excellence as an integrated system
Answer: C
AACSB: Analytic
Page: 22
41.
In a total quality environment, internal customers are the:
a. customers who are part of the product testing panel.
b. immediate customers, but not the end users.
c. recipients of any work output.
d. designated team members of the quality control team.
Answer: C
AACSB: Reflective Thinking
Page: 23
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duplicated, or posted to a publicly accessible website, in whole or in part.
Full file at http://testbanksolution.eu/Test-Bank-Bank-for-Quality-And-PerformanceExcellence-6-E-by-Evans
42.
A(n) _____ is a sequence of activities that is intended to achieve some result.
a. process
b. operation
c. methodology
d. array
Answer: A
AACSB: Analytic
Page: 24
43.
Noriaki Kano suggests that three classes of customer needs exist. Which of the
following is not one of them?
a. Essentials
b. Dissatisfiers
c. Delighters/exciters
d. Satisfiers
Answer: C
AACSB: Analytic
Page: 26
44.
_____ refer to those needs that are expected in a product or service.
a. Essentials
b. Dissatisfiers
c. Delighters/exciters
d. Satisfiers
Answer: A
AACSB: Analytic
Page: 26
45.
_____ are the needs that customers say they want.
a. Essentials
b. Dissatisfiers
c. Delighters/exciters
d. Satisfiers
Answer: D
AACSB: Analytic
Page: 26
46.
The importance of Noriaki Kano’s classification is realizing that although _____
are relatively easy to determine through routine marketing research, special effort
is required to elicit customer perceptions about _____.
a. dissatisfiers; satisfiers
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b. delighters; exciters
c. satisfiers; dissatisfiers
d. delighters; satisfiers
Answer: C
AACSB: Analytic
Page: 27
47.
Over time, _____ become _____ as customers become used to them.
a. delighters/exciters; satisfiers
b. dissatisfiers; satisfiers
c. satisfiers; delighters/exciters
d. dissatisfiers; delighters/exciters
Answer: A
AACSB: Reflective Thinking
Page: 27
48.
Sylvia orders a security system to be installed at her house. After placing the
order, the company took three days to install it. The time taken for the order to be
delivered is referred to as:
a. delivery time.
b. execution gap.
c. turnaround time.
d. cycle time.
Answer: D
AACSB: Reflective Thinking
Page: 27
49.
McGregor’s Theory X model of motivation says that:
a. workers dislike work and require close supervision and control.
b. workers are self-motivated, seek responsibility, and exhibit a high degree of
imagination and creativity at work.
c. workers are motivated mainly by monetary progress and replenishments.
d. workers are motivated if they are part of a motivated team.
Answer: A
AACSB: Analytic
Page: 28
50.
Which of the following is not a classification of teamwork?
a. Vertical
b. Horizontal
c. Interorganizational
d. Multiorganizational
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duplicated, or posted to a publicly accessible website, in whole or in part.
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Answer: D
AACSB: Analytic
Page: 29
51.
At the _____ level, data provide real-time information to identify reasons for
variation, determine root causes, and take corrective action as needed.
a. work
b. process
c. strategic
d. organizational
Answer: A
AACSB: Reflective Thinking
Page: 31
52.
Which of the following is not performance data at the process level?
a. Yields
b. Cycle times
c. Productivity measures
d. Market indicators
Answer: D
AACSB: Analytic
Page: 31
53.
Agency theory makes the assumption that individuals in agency relationships are:
a. utility maximizers.
b. negotiators.
c. type A individuals.
d. type X individuals.
Answer: A
AACSB: Analytic
Page: 35
54.
_____ is a central issue in agency theory, because it is a primary mechanism used
by both parties to maintain and govern the relationship.
a. Motivation
b. Monitoring
c. Authority
d. Hierarchy
Answer: B
AACSB: Analytic
Page: 35
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duplicated, or posted to a publicly accessible website, in whole or in part.
Full file at http://testbanksolution.eu/Test-Bank-Bank-for-Quality-And-PerformanceExcellence-6-E-by-Evans
55.
Which of the following is not true regarding the agency theory?
a. It takes a long-term perspective based on continuous improvement.
b. It is based on an economic perspective.
c. It propounds the belief that people are self-interested and opportunistic.
d. It suggests that information may be concealed to advance self-interests.
Answer: A
AACSB: Analytic
Page: 36-37
56.
In the _____ organizational model, work is reduced to elementary tasks with a
focus on efficiency, conformity, and compliance.
a. mechanistic
b. organismic
c. environmental
d. cultural
Answer: A
AACSB: Analytic
Page: 37
57.
The _____ model assumes that systems goals, such as the need to survive,
displace performance goals, such as profit.
a. mechanistic
b. organismic
c. environmental
d. cultural
Answer: B
AACSB: Analytic
Page: 37
58.
Which model does Total Quality share most similarities with?
a. Mechanistic
b. Organismic
c. Environmental
d. Cultural
Answer: B
AACSB: Reflective Thinking
Page: 37
59.
The _____ model views an organization as a collection of cooperative agreements
entered into by individuals with free will.
a. mechanistic
b. organismic
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c. environmental
d. cultural
Answer: D
AACSB: Analytic
Page: 38
60.
In the cultural model, all of the following are true except:
a. managers take on a more distinctive leadership role.
b. employees have greater voice in establishing organizational goals.
c. all structural decisions are value-based.
d. learning needs are driven by adaptation to environmental forces.
Answer: D
AACSB: Reflective Thinking
Page: 39
ESSAY QUESTIONS
61.
What is performance excellence?
Answer: The term performance excellence refers to an integrated approach to
organizational performance management that results in delivery of everimproving value to customers and stakeholders, contributing to organizational
sustainability; improvement of overall organizational effectiveness and
capabilities; and organizational and personal learning. Performance excellence is
a characteristic of today’s most outstanding organizations and is a requisite for
providing high quality goods and services.
AACSB: Reflective Thinking
Page: 6-7
62.
Describe the significance of Big Q and Little Q.
Answer: Despite quality initiatives on defect reductions, organizations began to
recognize that lasting improvement could not be accomplished without significant
attention to the quality of the management practices used on a daily basis. In other
words, they recognized that the “quality of management” is as important as the
“management of quality.” This led to the use of the terms Big Q and Little Q to
contrast the difference between managing for quality in all organizational
processes (Big Q) and focusing solely on manufacturing quality (Little Q).
AACSB: Reflective Thinking
Page: 12
63.
Briefly describe the quality dimensions of manufactured products.
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Answer: Manufactured products have several quality dimensions including the
following:
 Performance: a product’s primary operating characteristics.
 Features: the “bells and whistles” of a product.
 Reliability: the probability of a product’s surviving over a specified period
of time under stated conditions of use.
 Conformance: the degree to which physical and performance
characteristics of a product match preestablished standards.
 Durability: the amount of use one gets from a product before it physically
deteriorates or until replacement is preferable.
 Serviceability: the ability to repair a product quickly and easily.
 Aesthetics: how a product looks, feels, sounds, tastes, or smells.
 Perceived quality: subjective assessment resulting from image,
advertising, or brand names.
AACSB: Reflective Thinking
Page: 14
64.
Describe in brief the most important dimensions of service quality.
Answer: The most important dimensions of service quality are the following:
 Time: How much time must a customer wait?
 Timeliness: Will a service be performed when promised?
 Completeness: Are all items in the order included?
 Courtesy: Do frontline employees greet each customer cheerfully?
 Consistency: Are services delivered in the same fashion for every
customer, and every time for the same customer?
 Accessibility and convenience: Is the service easy to obtain?
 Accuracy: Is the service performed right the first time?
 Responsiveness: Can service personnel react quickly and resolve
unexpected problems?
AACSB: Reflective Thinking
Page: 17
65.
What are the points organizations have to look into beyond product orientation to
ensure service quality?
Answer: Service organizations must look beyond product orientation and pay
significant attention to customer transactions and employee behavior. Several
points that service organizations should consider are as follows:
 The quality characteristics that a firm should control may not be the
obvious ones.
 Behavior is a quality characteristic.
 Image is a major factor in shaping customer expectations of a service and
in setting standards by which customers evaluate that service.
 Establishing and measuring service levels may be difficult.
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duplicated, or posted to a publicly accessible website, in whole or in part.
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
Quality control activity may be required at times or in places where
supervision and control personnel are not present.
AACSB: Reflective Thinking
Page: 18
66.
What are the principles of total quality?
Answer: The principles of TQ involve some very basic management concepts: (1)
customer and stakeholder focus; (2) a process orientation supported by continuous
improvement and learning; (3) employee engagement and teamwork; (4)
management by fact; (5) a strategic focus on quality as a source of competitive
advantage; and (6) visionary leadership that views performance excellence as an
integrated system.
AACSB: Reflective Thinking
Page: 22
67.
How is empowerment related to employee engagement?
Answer: Employee engagement simply means that workers have a strong
emotional bond to their organization, are actively involved in and committed to
their work, feel that their jobs are important, know that their opinions and ideas
have value, and often go beyond their immediate job responsibilities for the good
of the organization. Engagement is often manifest by empowerment, which
simply means that people have the authority to make decisions based on what
they feel is right, have control over their work, take risks and learn from mistakes,
and promote change.
AACSB: Reflective Thinking
Page: 28
68.
Describe the three levels at which data support organizational functioning.
Answer: At the work level, data provide real-time information to identify reasons
for variation, determine root causes, and take corrective action as needed. At the
process level, operational performance data such as yields, cycle times, and
productivity measures help managers determine whether they are doing the right
job, whether they are using resources effectively, and whether they are improving.
At the organization level, quality and operational performance data from all areas
of the firm, along with relevant financial, market, human resource, and supplier
data, form the basis for strategic planning and decision making.
AACSB: Reflective Thinking
Page: 31
69.
Illustrate the differences between TQ and agency theory.
Answer: The following are the major differences between TQ and agency theory:
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duplicated, or posted to a publicly accessible website, in whole or in part.
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
TQ views the management system as one based on social and human
values, whereas agency theory is based on an economic perspective that
removes people from the equation.
 Agency theory assumes an inherent conflict of goals between agents and
principals, and that agent goals are aligned with principal goals through
formal contracts. In TQ, everyone in the organization shares common
goals and a continuous improvement philosophy.
 Sharing information to achieve these goals is fundamental to TQ, whereas
agency theory suggests that information may be concealed to advance selfinterests.
 TQ takes a long-term perspective based on continuous improvement,
whereas agency theory focuses on short-term achievement of the contract
between the principal and agent.
 In TQ, risk taking is necessary in order to innovate, whereas agency theory
assumes that risks are to be minimized and shared between the two parties.
 Finally, TQ leaders provide a quality vision and play a strategic role in the
organization; leaders in agency theory develop control mechanisms and
engage in monitoring.
AACSB: Reflective Thinking
Page: 35-37
70.
Describe the three major organizational models.
Answer: Three major organizational models that management theorists have
studied are the mechanistic, organismic, and cultural models of organizations.
 The mechanistic model views an organization as a tool or a machine
designed solely to create profits for its owners. Work is reduced to
elementary tasks with a focus on efficiency, conformity, and compliance.
 The organismic model views organizational systems as living organisms
that depend on their environments for resources and adjust the behavior of
their parts to maintain the properties of the whole within acceptable limits.
This model assumes that systems goals, such as the need to survive,
displace performance goals, such as profit.
 The cultural model views an organization as a collection of cooperative
agreements entered into by individuals with free will. The organization’s
culture and social environment are enacted or socially constructed by
organization members. From the perspective of this model, the goal of an
organization is to serve the diverse needs of all whom it affects—its
stakeholders.
AACSB: Reflective Thinking
Page: 37
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