Competition is driving many companies to implement performance improve

Question

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-driven programs. Results-driven 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-driven 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.

4. The author of the passage asserts which of the following about activity-centered improvement programs?

A. They are based on a mistaken assumption about the benefits of broad-based improvement efforts.
B. They cannot be implemented without the aid of consultants.
C. They produce better results for some kinds of businesses than for others.
D. They produce long-term advantages but create short-term problems.
E. They focus primarily on ensuring that employee morale will improve.

5. The author of the passage suggests that in comparison with results-driven programs, activity-centered programs are

A. occasionally more cost effective
B. less practical
C. less expensive
D. less popular with managers
E. more effective in small businesses

6. The author of the passage mentions the "total quality" program in the highlighted text primarily in order to

A. suggest an alternative to conventional activity-centered programs
B. explain why improved employee communication does not improve profits
C. illustrate the inadequacy of activity-centered programs
D. illustrate the kinds of activities encountered in activity-centered programs
E. attest to the kinds of advantages companies gain when they implement activity-centered programs

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Show Answer Question #1

Official Answer

E

Show Answer Question #2

Official Answer

E

Show Answer Question #3

Official Answer

D

Show Answer Question #4

Official Answer

A

Show Answer Question #5

Official Answer

B

Show Answer Question #6

Official Answer

C

Trying to understand why the right answer is right? GMAT Club Tests explanations walk through concepts, shortcuts, and common traps on many questions. See how →

GMATchAttack · Answer

Could you explain why the answer to 1) is e) and not a)

Sajjad1994 · Answer

(A)  is indirectly opposite, in fact. Although it is mentioned that the  total quality  program's consultants summarizing their progress by citing improved employee communication and morale, it also explicitly states that there was "no improvement in profits." This indicates that the effectiveness of the program could indeed be measured, at least in terms of its impact on profits, which was a major goal of the program.

Sajjad1994 · Answer

Explanation

2. The primary purpose of the passage is to

Explanation The prime debate here is  D  vs  E.

A.   Incorrect:  The author did not focuses on explaining why companies are attracted to activity-centered programs. Instead, it evaluates the effectiveness of both activity-centered and results-driven programs in improving a company's performance.

B. Incorrect:  Although the author mentioned that activity-centered programs can be costly, its primary focus is not on explaining the cost difference between the two types of programs. Rather, it compares their effectiveness and efficiency in achieving desired outcomes.

C. Incorrect:  Similar to  (B)  above.

D. Incorrect:  While it may seem correct, it does not fully capture the primary purpose of the passage. The passage does evaluate the strengths and weaknesses of both types of programs but with the ultimate aim of highlighting why results-driven programs are more effective in producing desired outcomes compared to activity-centered programs.

E. Correct!   It accurately captures the main idea of the passage. The passage discusses how activity-centered programs, despite their significant investments in long-term goals and employee training, often fail to produce the desired outcomes, as exemplified by the case study of the financial institution's  "total quality"  program.

Answer: E

SergejK · Answer

Bunuel : Here 2 more questions.

Bunuel · Answer

___________________________
Added the questions. Thank you!

MyNameisFritz · Answer

https://i.gyazo.com/1da4bca7d99da898c6417d7063ceb052.png 
Hello  Bunuel ,

Here is another question to add.

Bunuel · Answer

Added to the question. Thank you very much!

napolean92728 · Answer

Key Information in the Passage 
 
 Two contrasting approaches: activity-centered vs. results-driven programs 
 Activity-centered programs: long-term goals, new philosophies, extensive training 
 Example: financial institution implemented "total quality" program with poor results 
 Results-driven programs: specific measurable short-term goals, minimal initial investment 
 The passage clearly favors results-driven approaches over activity-centered ones

Pre-writing Process 
 
 The author states that companies using these programs "assume that if they introduce enough improvement activities, operational performance will improve." 
 The example shows that after "two years of costly effort," there was "no improvement in profits." 
 The author explicitly states that "activity-centered programs offer meager payoffs compared with results-driven programs." 
 The author notes that the "activity-driven approach invests time and money in preparatory efforts that rarely yield desired outcomes."

Evaluating Options 
A. "They are based on a mistaken assumption about the benefits of broad-based improvement efforts."
 
 The passage states these programs assume "if they introduce enough improvement activities, operational performance will improve" but then shows this doesn't work well. The author clearly thinks this assumption is incorrect. 
 CORRECT

B. "They cannot be implemented without the aid of consultants."
 
 The example mentions consultants, but nothing suggests they're always required. 
 INCORRECT

C. "They produce better results for some kinds of businesses than for others."
 
 The passage makes no distinction between types of businesses. 
 INCORRECT

D. "They produce long-term advantages but create short-term problems."
 
 The passage indicates they don't produce advantages at all (they offer "meager payoffs"). 
 INCORRECT

E. "They focus primarily on ensuring that employee morale will improve."
 
 While the example mentions improved morale, this is presented as an incidental outcome, not the primary focus. 
 INCORRECT

guddo · Answer

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?

The “total quality” program is used as an example of an activity-centered program. It produced some internal improvements, such as better employee communication and morale, but it did not improve profits.  So the author would view it as a program that achieved some limited success but failed to reach an important business goal .

(A) Its effectiveness could not be adequately measured.

Incorrect. The passage says the consultants measured or reported progress, including improved communication and morale, but no improvement in profits.

(B) It had considerable weaknesses, but they were ultimately outweighed by its strengths.

Incorrect. The author presents the program as evidence that activity-centered programs have weak payoffs.

(C) Its success in improving employee morale was achieved primarily because of the attention the employees received.

Not supported. The passage says morale improved, but does not explain why.

(D) It should have concentrated more on winning customer loyalty.

Not supported. Winning customer loyalty was already one of the stated goals. The author’s criticism is broader: the program did not produce concrete performance results.

(E) It failed to reach a major goal despite having achieved some successes.

Correct.   The program improved employee communication and morale, but failed to improve profits. That matches the author’s criticism of activity-centered programs: they may create some positive internal effects but fail to deliver  measurable business results .

Answer: (E)

guddo · Answer

2. The primary purpose of the passage is to

The passage contrasts two approaches to improving company performance: activity-centered programs and results-driven programs. The author argues that activity-centered programs often require costly preparatory activities but produce weak results, while results-driven programs focus on measurable short-term goals and produce better payoffs.  The main purpose  is to argue that results-driven programs are more likely to produce the  desired outcomes .

(A) explain why many companies have been attracted to activity-centered improvement programs

Incorrect. The passage mentions that many companies use such programs, but the main point is not to explain their appeal.

(B) explain why activity-centered improvement programs are usually more expensive than results-driven programs

Too narrow. Cost is mentioned, but the larger comparison is about effectiveness and results.

(C) describe the kinds of companies most likely to benefit from a results-driven rather than an activity-centered improvement program

Incorrect. The passage does not classify companies by type.

(D) assess the relative strengths and weaknesses of activity-centered improvement programs and results-driven programs

Close, but too neutral. The author is not giving a balanced assessment. The passage clearly favors results-driven programs.

(E) argue that activity-centered improvement programs are less likely to produce desired outcomes than are results-driven programs

Correct.   This matches the passage’s main argument: activity-centered programs offer meager payoffs, while results-driven programs focus directly on measurable improvements.

Answer: (E)

guddo · Answer

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

The passage first describes activity-centered programs and shows why they are weak: they focus on broad goals, training, motivation, and philosophy, but often fail to improve measurable business results. Then the passage presents results-driven programs as the better alternative because they focus on specific, measurable goals and direct procedural changes.  So the structure is : one approach is criticized, and another approach is presented as more effective.

(A) Two related problems are described and a solution is proposed.

Incorrect. The passage does not describe two related problems. It compares two approaches to the same problem: improving company performance.

(B) Two different solutions to a problem are examined and a third is proposed.

Incorrect. Only two approaches are discussed. No third solution is proposed.

(C) The primary reasons for a major problem are enumerated and explained.

Incorrect. The passage is not mainly listing causes of a problem. It is comparing two improvement programs.

(D) One approach to a problem is rejected as ineffective and an alternative is presented.

Correct.   Activity-centered programs are shown to have weak results, and results-driven programs are presented as the better  alternative .

(E) Two arguments about a problem are described and their shared assumptions identified.

Incorrect. The passage does not identify shared assumptions between two arguments.

Answer: (D)

guddo · Answer

4. The author of the passage asserts which of the following about activity-centered improvement programs?

The passage says companies using activity-centered programs assume that if they introduce enough improvement activities, operational performance will improve. The author then says studies show these programs offer meager payoffs compared with results-driven programs.  So the author asserts that activity-centered programs rest on a mistaken assumption  about broad improvement activities leading to  real performance gains .

(A) They are based on a mistaken assumption about the benefits of broad-based improvement efforts.

Correct.   The passage directly says companies assume that enough improvement activities will improve operational performance, but the author argues that these programs often fail to produce desired results.

(B) They cannot be implemented without the aid of consultants.

Incorrect. The passage says such programs are often advocated by consulting firms, but not that consultants are required.

(C) They produce better results for some kinds of businesses than for others.

Not supported. The passage does not divide businesses into types.

(D) They produce long-term advantages but create short-term problems.

Incorrect. The passage does not say they produce long-term advantages. It says their payoffs are meager.

(E) They focus primarily on ensuring that employee morale will improve.

Incorrect. Employee morale is mentioned in the example, but the programs are described more broadly: managerial philosophy, training, motivation, and problem-solving.

Answer: (A)

guddo · Answer

5. The author of the passage suggests that in comparison with results-driven programs, activity-centered programs are

The passage says results-driven programs require relatively little initial investment and focus on specific, measurable short-term goals. By contrast, activity-centered programs involve broad goals, new managerial philosophies, training, and motivational efforts, but often produce weak results.  So activity-centered programs are less practical  because they are more costly, less focused, and less directly tied to  measurable results .

(A) occasionally more cost effective

Incorrect. The passage says activity-centered programs offer meager payoffs compared with results-driven programs.

(B) less practical

Correct.   Activity-centered programs require more preparatory effort and investment but are less likely to produce clear performance improvements.

(C) less expensive

Incorrect. Results-driven programs require relatively little initial investment, so activity-centered programs are not presented as less expensive.

(D) less popular with managers

Not supported. The passage does not compare popularity with managers.

(E) more effective in small businesses

Not supported. The passage does not discuss small businesses.

Answer: (B)

guddo · Answer

6. The author of the passage mentions the "total quality" program in the highlighted text primarily in order to

The “total quality” program is given as an example of an activity-centered program. It involved costly effort and produced improved communication and morale, but no improvement in profits.  So its purpose is to show the weakness  of activity-centered programs: they may produce internal improvements but fail to deliver  measurable business results .

(A) suggest an alternative to conventional activity-centered programs

Incorrect. The “total quality” program is not an alternative to activity-centered programs. It is an example of one.

(B) explain why improved employee communication does not improve profits

Incorrect. The passage does not explain why communication failed to improve profits. It only says the program improved communication and morale but not profits.

(C) illustrate the inadequacy of activity-centered programs

Correct.   The example shows that an activity-centered program can involve costly effort yet fail to improve profits.

(D) illustrate the kinds of activities encountered in activity-centered programs

Too narrow. The example is not mainly used to list activities; it is used to show poor payoff.

(E) attest to the kinds of advantages companies gain when they implement activity-centered programs

Incorrect. The author emphasizes the program’s failure to improve profits, not its advantages.

Answer: (C)

Competition is driving many companies to implement performance improve

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GMAT Reading Comprehension (RC) Questions

Competition is driving many companies to implement performance improve

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