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When you are finished, turn in booklet and this exam sheet.

Please write legibly!

Part 1. 5 questions: 6 points each.

1. Which of the following is NOT a characteristic of a “flat” organization?

a) reduced layers of middle management
b) bonus incentives
c) use of information technology
d) rewards seniority

2. An example of a structural measure of nursing home quality is

a) medication error rate
b) degree of resident satisfaction
c) number of hours of nursing aide training
d) average cost per resident

3. Which management theory stresses the norms, rules, and requirements to which
organizations must conform?
a) Population Ecology perspective
b) Institutional theory
c) resource-dependence theory
d) strategic management

4. Each of the following is a strategic orientation EXCEPT:

a) innovator
b) defender
c) analyzer
d) reactor

5. Which of the following is NOT a characteristic of the “leader personality?”

A) rationality and control
B) creativity
C) risk-taking
D) separateness from their organization

6. (10 pts) Consider the article, “On the Folly of Rewarding A, and Hoping for B.” Give
an example of “poorly designed incentives.” That is, the behavior that is rewarded (A) is
the opposite of what is (supposedly) intended (B). What are some “bad incentives” that
can get in the way of improving the public’s health?
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7. Pick two out of the following three items: (10 points each)

Evidence-Based Management / Evidence-Based Medicine

Pay-for-Performance

Disruptive Innovation

Define each term. What are the potential benefits of each for the health care consumer?

18 points.
8. Consider the two articles “Seven Surprises for New CEOs” and “What Makes an
Effective Executive?” or another other article by Peter Drucker. Then consider CEO
Abdelhak from the Allegheny Health System. In what ways did the CEO’s actions violate
the letter or the spirit of the advice and guidelines in these articles? List as many of these
“broken rules” as you can recall.

Essay: 20 points
9. Consider the article: “The Fall of the House of AHERF: The Allegheny Bankruptcy.”
Based on your reading of Porter (What is Strategy?), and Mintzberg (“Fall and Rise of
Strategic Planning”). WITHOUT recounting the whole history of this disaster, what was
the major flaw in this organization’s strategy? Was CEO Adelhak the cause of the
organization’s problems? Or was he merely a “symptom” of a deeper dysfunction within
the organizations? What were some “red flags” that should have led to action before the
situation got out of hand?