Competition is driving many companies to implement performance improve

     Competition is driving many companies to implement performance improvement programs, but there are different approaches to improving a company’s performance. Activity-centered programs, often advocated by consulting firms, define goals in a long-term, global manner and typically involve formulation of new managerial philosophies as well as extensive motivational and problem-solving training for employees. Companies assume that if they introduce enough improvement activities, operational performance will improve. In 1988, for example, a large financial institution implemented a “total quality” program to improve operational performance and win customer loyalty. After two years of costly effort, however, the program’s consultants summarized their progress by citing improved employee communication and morale but no improvement in profits.

     Studies show that activity-centered programs offer meager payoffs compared with results-d riven programs. Results-d riven programs, which require relatively little initial investment, set specific, measurable short-term goals—such as increased yields, reduced delivery time, or reduced product development time—and implement procedural changes only when they lead directly to improved results. Whereas the activity-driven approach invests time and money in preparatory efforts that rarely yield desired outcomes, the results-d riven approach identifies specific goals and the resources, tools, and action plans needed for meeting them.

1. The author of the passage would most probably agree with which of the following statements about the "total quality” program mentioned in the highlighted text?

A. Its effectiveness could not be adequately measured.
B. It had considerable weaknesses, but they were ultimately outweighed by its strengths.
C. Its success in improving employee morale was achieved primarily because of the attention the employees received.
D. It should have concentrated more on winning customer loyalty.
E. It failed to reach a major goal despite having achieved some successes.



2. The primary purpose of the passage is to

A. explain why many companies have been attracted to activity-centered improvement programs
B. explain why activity-centered improvement programs are usually more expensive than results-driven programs
C. describe the kinds of companies most likely to benefit from a results-driven rather than an activity-centered improvement program
D. assess the relative strengths and weaknesses of activity-centered improvement programs and results-driven programs
E. argue that activity-centered improvement programs are less likely to produce desired outcomes than are results-driven programs



3. Which of the following best describes the organization of the passage?

A. Two related problems are described and a solution is proposed.
B. Two different solutions to a problem are examined and a third is proposed.
C. The primary reasons for a major problem are enumerated and explained.
D. One approach to a problem is rejected as ineffective and an alternative is presented.
E. Two arguments about a problem are described and their shared assumptions identified.