General Electric Has an Up-Or-Out Policy, Where Key Personnel in Underperforming

question 23

Multiple Choice

General Electric has an up-or-out policy, where key personnel in underperforming units are pressured to boost performance to acceptable levels and keep it there or risk being replaced. What is this an example of?

• A) staffing the organization with managers and employees capable of executing the strategy well
• B) developing the resources and organizational capabilities required for successful strategy execution
• C) tying rewards and incentives directly to the achievement of strategic and financial targets
• D) adopting best practices and business processes to drive continuous improvement in strategy execution activities
• E) exercising the internal leadership needed to propel strategy implementation forward

---

Definitions:

Labor Efficiency Variance

A measure of the difference between the actual number of labor hours used and the standard number of labor hours expected to produce a certain level of output.

Materials Quantity Variance

The financial difference between the actual quantity of materials used in production and the standard expected quantity.

Favorable

A term used to describe outcomes or variances that are positive or beneficial to a business, such as lower costs or higher revenues than expected.

Unfavorable

A term used in budgeting and variance analysis indicating costs exceeded the budget or revenue fell short.