Well sort of...but thats not acutally how it works...Lemme try to explain this in simpleness....
Here is a fictional CPU which has 2 functions...and & or. It has 3 input lines and 1 output line. (i hope you understand & or)
and -> 0 & 0 = 0, 0 & 1 = 0, 1 & 0 = 0, 1 & 1 = 1
or -> 0 | 0 = 0, 0 | 1 = 1, 1 | 0 = 1, 1 | 1 = 1
Of the 3 input lines, 1 (C) is a control line (instruction) and 2 (A & B) are data inputs. The output line (Z) is also data output.
There are 9 possible instructions 000,001,010,011,100,101,110,111 with the instructions being ion the format CAB
With C = 0 being perform "or" and c = 1 being perform "and" of A & B.
A -\
B - AND-\
C--------- AND-\
........................OR - Z
C--------- AND-/
B - OR-/
A -/
C = "not C" is the opposite of C (in digital circuitry)
Hopefully you can see that both operations are performed on A and B but the correct output is selected using the control value C.
If C = 0 and C = 1 so that the "OR" (bottom half) answer is the one that comes out, because the "or" answer would be anded to 1 and the "and" answer would be anded to 0...
if C = 1 and C = 0, so that the "and" (top half) answer comes is the one that comes out, because the "or" answer would be anded to 0 and the "and" answer would be anded to 1...
The idea is that you and the answer you dont want with zero (making it zero) and then only the other answer will come out.
Real CPU's work similarly (although this is way overly simplified)
hopefully balhblah99s answer will help you understand the voltages associated with digital logic.
so in short the data input voltages go throughout the entire cpu, but its the contol lines that determine what comes out. Now what you must understand is there is a separate unique circuit for every operation (or instruction) a cpu can perform. So the answer to your question is yes, every instruction is hard coded into the cpu and they all activate at the same time, but the combination of the control lines physically selects what is the correct output.