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Test Bank For The Strategic Management of Health Care Organizations, 7th Edition

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    Questions Chapter 1 The Nature of Strategic Management

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    True/False Questions Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF01.01 The implementation of Medicare’s prospective payment system in 1983 initiated dramatic changes in the health care industry. T 1 Managing a Dynamic Environment Change TF01.02 Management rather than leadership is required to deal with rapid, complex, and discontinuous change. F 1 Managing a Dynamic Environment Leadership TF01.03 The objective of long - range planning is to predict for some specified time in the future the size of demand for an organization’s products and services and to determine where demand will occur. T 2 Long - Range Planning to Strategic Planning Long - range planning TF01.04 Strategies are long range in nature and thus, the time span is the principal focus of strategic planning. F 1 Long - Range Planning to Strategic Planning Strategy, strategic planning TF01.05 Many of the management methods adopted by health care organizations originated in the business sector. T 1 Strategic Management in the Health Care Industry Management techniques TF01.06 “Strategic thinking maps” are designed to initiate strategic thinking and strategic planning. T 1 Combining the Analytical and Emergent Views Strategic thinking TF01.07 In order to effectively deal with a complex situation, the leader must redouble efforts to become involved with every detail of the situation. F 3 Strategic Thinking Leadership TF01.08 Strategic thinking is an individual intellectual process, a mindset, or method of intellectual analysis that asks people to position themselves as leaders and see the “big picture.” T 1 Strategic Thinking Strategic thinking TF01.09 Strategic thinkers examine assumptions, understand systems and their interrelationships, and develop alternative scenarios of the future . T 1 Strategic Thinking Strategic thinking TF01.10 Strategic planning is the periodic process of developing a set of steps for an organization to accomplish its mission and vision using strategic thinking. T 1 Strategic Planning Strategic planning

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    Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF01.11 As a decision - making activity, strategic planning is based solely on quantitative data. F 2 Strategic Planning Strategic planning TF01.12 Analyzing and understanding the situation is accomplished by three separate strategic thinking activities: (1) external environmental analysis; (2) internal environmental analysis; and ( 3) the development or refinement of the organization’s directional strategies. T 1 Strategic Planning Strategic thinking TF01.13 S trategy is driven by a common mission, common vision, and common set of organizational values and goals – the directional strategies . T 1 Strategic Planning Strategy TF01.14 Developing implementation plans is not an essential part of strategic planning. F 1 Strategic Planning Strategy, implementation TF01.15 Decision making is expedited and consensus more easily reached when everyone in the organization is involved in the strategic planning process. F 2 Strategic Planning Strategic planning process TF01.16 M anaging strategic momentum concerns the day - to - day activities of managing the strategy to achieve the strategic goals of the organization. T 2 Managing Strategic Momentum Strategic plans, strategic momentum TF01.17 Managing strategic momentum is how an organization constructively manages change, evaluates strategy, and reinvents or renews the organization. T 2 Managing Strategic Momentum Strategic plans, strategic momentum, managing change TF01.18 Much of the legitimate work in an organization does not contribute to the accomplishment of the strategic plan . F 2 Managing Strategic Momentum Strategic planning, implementation TF01.19 Strategic management is a unique perspective that requires everyone in the organization to cease thinking solely in terms of internal operations and their own operational responsibilities. It insists that everyone adopt what may be a fundamentally new attitude – an external orientation and a concern for the big picture. T 1 The Benefits of Strategic Management Strategic management TF01.20 Strategic management is a technique that will provide a “quick fix” for an organization that has fundamental problems. F 1 What Strategic Management is Not Strategic management TF01.21 S trategic management is demonstrated in an organization if it has evolved into a process of filling in endless forms, meeting deadlines, drawing milestone charts, or changing the dates of last year’s goals and plans . F 1 What Strategic Management is Not Strategic management

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    Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF01.22 The use of the systems approach requires strategic managers to define the organization in broad terms and to identify the important variables and interrelationships that will affect decisions. T 2 A Systems Perspective Systems approach, systems thinking TF01.23 Unit operational strategies may be developed within departments of an organization such as clinical operations, marketing, finance, information systems, human resources, and so on. T 2 The Level and Orientation of the Strategy Unit - level strategy TF01.24 Corporate - level strategies address the question : “What business(es) should we be in?” Such strategies consider multiple, sometimes unrelated, markets and typically are based on return on investment, market share or potential market share, and system integration . T 2 The Level and Orientatio n of the Strategy Corporate - level strategy TF01.25 S trategy development has never been primarily a staff activity. F 1 Leadership Roles throughout the Organization Strategy development, leadership

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    Multiple Choice Questions Question title Question stem Selections Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic MC01.01 Strategic thinking is : a - An organizational - level activity. b - An individual intellectual process. c - An element of long - range planning. d - Not needed to capitalize on change. b 2 Strategic T hinking Strategic thinking MC01.02 The result of the strategic planning process is: a - More luck than the result of a thoughtful process. b - Strategic thinking. c - A formal document of at least 10 pages. d - A plan or strategy. d 1 Strategic P lanning Strategy MC01.03 Health policy a - Is a very broad strategy. b - Is the result of strategic thinking, strategic planning, and strategic management. c - Determines the rules of the game that apply to all consumers and providers in the field. d - Does not involve governmental activi ty. c 2 Strategic M anagement v ersus H ealth P olicy P lanning Health policy MC01.04 Strategic planning for organizations is typically : a - The sole province of the chief executive officer (CEO). b - The work of the strategic planning department. c - Something that r equires consultants to be successful. d - A group process. d 1 A G roup P rocess of K ey P layers Strategy planning MC01.05 The three stages of strategic management are: a - Plan, implement, and revise the plan. b - Leadership, professionalism, and management. c - Strategic thinking, strategic planning, and managing strategic momentum . d - Thinking, planning, and doing. c 3 The Benefits of Strategic Management Strategy management MC01.06 Strategic management is NOT: a - A “quick fix” for organizations with fundamental problems. b - A process of completing paperwork. c - A process of extending the organization’s current activities into the future. d - All of the above. d 1 What Strategic Management is Not Strategic management

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    Question title Question stem Selections Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic MC01.07 The use of the systems approach requires strategic managers to : a - Focus on short - term results. b - Define the organization in broad terms and identify the important variables and interrelationships that will affect decisions. c - Become leaders. d - View the organization as a set of mutually exclusive sets of work units with separate goals and objectives. b 1 A Systems Perspective Systems, systems approach MC01.08 A clear specification of organizational level and orientation determines: a - The type and range of decision to be made in strategic planning . b - The quality of strategic thinking. c - Organizational success. d - The individual or organizational unit that is responsible for developing organizational strategy. a 1 The Level and Orientation of the Strategy Organization structure MC01.09 The dissolution of formal planning staffs is associated with: a - The management theory termed “Theory Z.” b - Systems thinking. c - The general decline in economic activity in the USA and Europe. d - Organizational learning that strategy development cannot take place in relative isolation. d 2 Leadership Roles throughout the Organization Organizational design, leadership MC01.10 An organization may create a new, unintended strategy by: a - Applying effective leadership. b - Rethinking the relationships among systems in the organization. c - Implementing the strategy created by its strategic planning process. d - Applying portfolio theory. c 3 Lessons for Health Care Managers Strategy implementation

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    Short Essay Questions Question title Question stem Rationale Difficulty 1 Easy 2 Medium 3 Hard Reference Topic SE01.01 Describe strategic management in the health care industry. Strategic management concepts have been employed within health care organizations only in the past 25 to 30 years. Prior to this time, individual health care organizations had few incentives to employ strategic management because typically they were independent, freestanding, not - for - profit institutions, and health services reimburseme nt was on a cost - plus basis. In many respects health care has become a complex business using many of the same processes and much of the same language as the most sophisticated business corporations. Certainly, in the late 1980s and 1990s many health care organizations had much to learn from strategically managed businesses. As a result, many of the management methods adopted by health care organizations, both public and private, initially were developed in the business sector. 2 Strategic Management in the Health Care Industry Strategic management SE01.02 Define the major activities of strategic management. The major activities of strategic management are: ( 1) strategic thinking, ( 2) strategic planning, and ( 3) strategic management. Strategic thinking is an individual intellectual process, a mindset, or method of intellectual analysis that asks people to position themselves as leaders and see the “big picture.” Strategic planning is the periodic process of dev eloping a set of steps for an organization to accomplish its mission and vision using strategic thinking. Strategic management is the actual work to accomplish specific objectives. 2 The Dimensions of Strategic Management Strategic thinking, strategic pla nning, strategic management SE01.03 Why is managing strategic momentum important? Managing strategic momentum: is the actual work to accomplish specific objectives, concerns decision - making processes and their consequences, provides the style and culture, evaluates strategy performance, is a learning process, and relies on and initiates new strategic thinking and new periodic strategic planning. 2 Managing Strategic Momentum Strategic management, strategic planning

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    Question title Question stem Rationale Difficulty 1 Easy 2 Medium 3 Hard Reference Topic SE01.04 Explain the role of leadership in strategy development. S trategic decision making for health care organizations is the responsibility of top management. The CEO is a strategic manager with the pre - eminent responsibility for positioning the organization for the future. The leader must be able to inspire, organize, and implement effective pursuit of a vision and maintain it even when sacrifices are required. As a result, the leader must h ave an ability to identify what needs to be done today and what can wait. They prioritize constantly; aware that wars are lost by fighting on too many fronts. They know the key messages to communicate from day to day, from audience to audience. If the CEO does not fully understand or faithfully support strategic management, it will not happen. 2 The Importance of Leadership Leadership, decision making, strategic management

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    Questions Chapter 2 Understanding and Analyzing the General Environment and the Health Care Environment

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    True/False Questions Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic T F02 .01 In the current health care industry environment, a multitude of interests are directly or indirectly involved in the delivery of health care. T 1 The Importance of Environmental Influences External environment T F02 .02 S trategic thinking is directed toward positioning the organization most effectively within its changing external environment. T 1 The Importance of Environmental Influences External environment, strategic thinking T F02 .03 In order to be successful, health care organization leaders do not have to develop an understanding of the external environment in which they operate. F 1 The Importance of Environmental Influences External environment T F02 .04 Institutions that anticipate and recognize significant external forces and modify their strategies and operations accordingly will prosper. T 1 The Importance of Environmental Influences External environment T F02 .05 Regulations about the privacy of medical records are examples of legislative/political external issues. T 1 Evolving External Issues External environment, regulation T F02 .06 Increasing automation of basic business processes, clinical information interfaces , data analysis, and telehealth are NOT examples of technological changes. F 1 Evolving External Issues External environment, technology T F02 .07 Cost pressures and intensified competition will NOT lead to further consolidation within the health care industry. F 2 Evolving External Issues External environment, competition T F02 .08 A PPO (p referred provider organization) is an entity through which various health plans or carriers contract to purchase health care services for patients from a selected group of providers, typically at a better per - patient cost. T 2 The Changing Language of Health Care Organizations

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    Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF02.09 Environmental analysis is largely strategic thinking and strategic planning and consists of understanding the issues in the external environment to determine the implications of those issues for the organization. T 2 The External Nature of Strategic Management Environmental analysis, strategic thinking, strategic planning TF02.10 Effective environmental analysis occurs through strategic thinking. T 1 The External Nature of Strategic Management Strategic thinking TF02.11 External environmental analysis does not inform the analysis of the internal environment. F 2 Determining the Need for Environmental Analysis External environmental analysis, internal environmental analysis TF02.12 A “visionary” is a strategic manager who detects the signs of change and explores the significance of change before it becomes apparent to others. T 1 Determining the Need for Environmental Analysis External environmental analysis TF02.13 One of the specific goals of environmental analysis is to detect and analyze early or weak signals of emerging issues and changes that will affect the organization . T 3 The Goals of Environmental Analysis External environmental analysis TF02.14 En vironmental analysis can accurately foretell the future. F 1 The Limitations of Environmental Analysis External environmental analysis TF02.15 Comprehensive and well - organized environmental analysis processes will detect all of the changes taking place in the external environment . F 2 The Limitations of Environmental Analysis External environmental analysis TF02.16 The organization itself may be affected directly by the legislative/political, economic, social/demographic, technological, and competitive change initiated and fostered by organizations in the general environment. T 2 Components of the General Environment General environment, change

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    Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF02.17 Organizations and individuals within the health care environment develop and employ new technologies, deal with changing social and demographic issues, address legislative and political change, compete with other health care organizations, and participate in the health care economy. T 2 Components of the Health Care Environment Environmental analysis TF02.18 Strategic issues are trends, developments, dilemmas, and possible events that affect an organization and its position within its environment. T 1 Scanning the External Environment Environmental analysis, scanning TF02.19 Environmental scanning is perhaps the least important part of environmental analysis . F 1 Scanning the External Environment Environmental analysis, scanning TF02.20 The monitoring function is the tracking of issues identified in the scanning process. T 1 Monitoring the External Environment Environmental analysis, monitoring TF02.21 Forecasting environmental change is a process of extending the trends, developments, dilemmas, and events that the organization is monitoring. T 1 Forecasting Environmental Change Environmental analysis, forecasting TF02.22 The Delphi method is the development, evaluation, and synthesis of individual points of view through the systematic solicitation and collation of individual judgments on a particular topic. T 2 Environmental Analysis Tools and Techniques External environmental analysis, Delphi method TF02.23 A brainstorming group is convened for the purpose of understanding an issue, assessing the impact of an issue on the organization, or generating strategic alternatives. In this process, members present ideas and are allowed to clarify them with brief explanations. T 2 Environmental Analysis Tools and Techniques External environmental analysis, brainstorming TF02.24 Dialectic inquiry is a “ conflict resolution ” process of argumentation. F 3 Environmental Analysis Tools and Techniques External environmental analysis, dialectic inquiry

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    Question title Question stem Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic TF02.25 Once strategic management is adopted as the operating philosophy of managing, strategic thinking, strategic planning, and managing the strategic momentum require frequent validation of the strategic assumptions to determine whether issues in the external environment have changed and to what extent. T 2 Managing Strategic Momentum – Validating the Strategic Assumptions External environmental analysis, strategic thinking, strategic planning, validating strategic assumptions

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    Multiple Choice Questions Question title Question stem Selections Choice Difficulty 1 Easy 2 Medium 3 Hard Reference Topic M C02 .01 Health care organizations DO NOT have to cope with change in which of the following areas: a - Competitive. b - Economic. c - Weather. d - Legislative/political. c 1 Evolving External Issues Change M C02 .02 The fundamental nature of strategic management requires the awareness and understanding of outside forces and encourages s trategic managers to: a - Adopt new ideas . b - Maintain receptivity to new ways of doing things . c - Expose themselves to a broad view . d - All of the above. d 2 The External Nature of Strategic Management Environmental analysis M C02 .03 A successful health care organization must: a - Wait until a crisis arises to react. b - Ignore the external environment. c - Anticipate and respond to the significant shifts taking place within the environment. d - Focus on crisis management. c 1 The Importance of Environmental Influences External environment M C02 .04 Organizations will find themselves out of touch with the needs of the market when they: a - Fail to anticipate change. b - Ignore external forces. c - Resist change. d - All of the above. d 1 The Importance of Environmental Influences External environment M C02 .05 The Center for Medicare and Medicaid Services (CMS) is: a - A health maintenance organization (HMO). b - P art of the US Department of Health and Human Services . c - A regulator of certificate of need (CON) laws. d - A provider of electronic medical record (EMR) services. b 3 The Changing Language of Health Care Gove rnment agencies

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