Question 1

In the context of M-form organizations, the primary function of the corporate-level HR department is to:
A) facilitate synergy across businesses.
B) help the top management in constructing basic functional departments.
C) motivate employees to attain organizational goals.
D) gain a sustained competitive advantage over competitors.

Accepted Answer

The primary function of the corporate-level HR department in M-form (Multidivisional Form) organizations is to facilitate synergy across businesses by ensuring that the various divisions work together effectively and leverage their collective strengths.

Question 2

Employees are potentially an excellent source of competitive advantage for an organization because:
A) they cannot refuse to follow the commands of the top executives of the organization.
B) they are difficult to copy or replace.
C) they formulate the organization's purpose and mission statement.
D) they cannot be hired by the competitors of the organization.

Accepted Answer

Employees are a source of competitive advantage because their skills, knowledge, and capabilities can be unique and difficult for competitors to replicate or replace, making them a valuable asset to the organization.

Question 3

Regardless of the specific organization design, in recent years many firms have been:
A) taking a hierarchical approach to organizational control.
B) increasing the number of levels of management.
C) increasing bureaucracy.
D) moving toward becoming flat organizations.

Accepted Answer

In recent years, many firms have been moving toward becoming flat organizations. This trend involves reducing the number of management levels and decreasing bureaucracy to improve efficiency and increase employee involvement in decision-making processes.

Question 4

A company that attempts to develop an image or reputation for its product or service that sets the company apart from its competitors most likely uses a _____.
A) diversification strategy
B) differentiation strategy
C) stability strategy
D) defender strategy

Accepted Answer

A differentiation strategy involves creating a product or service that is perceived as unique or distinct in the market, setting the company apart from its competitors. This can involve unique design, brand image, technology, features, customer service, or any other aspect that makes the product or service stand out.

Question 5

Corporate strategies deal with how a firm will compete in each market where it conducts business.

Accepted Answer

Corporate strategies are concerned with the overall scope and direction of the corporation and how value will be added to the different parts (business units) of the firm, rather than with how it will compete in individual markets.

Question 6

A key challenge for HR managers with firms using a retrenchment strategy is recruiting and training the large numbers of qualified employees.

Accepted Answer

Retrenchment strategy typically involves reducing the workforce, cutting costs, and focusing on core activities, which means there is less emphasis on recruiting and training large numbers of new employees.

Question 7

A prospector strategy works best when a business operates in an environment with relatively little uncertainty and risk and high stability.

Accepted Answer

A prospector strategy is most effective in dynamic, fast-changing, and uncertain environments where organizations must be innovative and adaptable to succeed.

Question 8

Which of the following strategies is frequently used by organizations after a period of retrenchment?
A) Related diversification
B) Unrelated diversification
C) A stability strategy
D) A turnaround strategy

Accepted Answer

A stability strategy is frequently used by organizations after a period of retrenchment because it involves maintaining the current level of operations and avoiding major changes.

Question 9

In the context of a turnaround strategy, the role of human resource managers is to:
A) help optimize the transition process for displaced workers through outplacement counseling.
B) decide how to retain existing employees when the firm cannot offer salary increases or promotions.
C) look for new avenues for geographic and brand expansion of the firm.
D) recruit employees based on intuition rather than using systematic selection techniques.

Accepted Answer

Human resource managers play a crucial role in optimizing the transition process for displaced workers during a turnaround strategy by providing outplacement counseling, which helps affected employees find new employment opportunities.

Question 10

If an organization uses a differentiation strategy, performance management must be focused on recognizing and rewarding performance leading to improved quality.

Accepted Answer

A differentiation strategy emphasizes creating unique products or services, so performance management in such organizations focuses on recognizing and rewarding efforts that enhance quality, innovation, and added value to distinguish their offerings from competitors.

Question 11

A cost leadership strategy allows a firm to charge the highest possible prices for its products.

Accepted Answer

A cost leadership strategy focuses on minimizing production and operational costs so the firm can offer its products at a lower price than its competitors, not on charging the highest possible prices.

Question 12

In the context of the strategic alternatives of the adaptation model, which of the following strategies is assumed to work best when a business operates in an environment with relatively little uncertainty and risk and a high degree of stability?
A) A defender strategy
B) The prospector strategy
C) The analyzer strategy
D) A turnaround strategy

Accepted Answer

A defender strategy is most effective in environments with little uncertainty and high stability, as it focuses on improving efficiency in current operations rather than exploring new opportunities.

Question 13

Which of the following terms refers to the relatively stable set of psychological attributes or traits that distinguish one person from another?
A) Personality
B) Attitude
C) Motivation
D) Reinforcement

Accepted Answer

Personality refers to the relatively stable set of psychological attributes or traits that distinguish one person from another. These attributes include patterns of thoughts, feelings, and behaviors that are characteristic of an individual and are relatively consistent over time and across situations.

Question 14

Which of the following statements is true of a mission statement?
A) It specifies the basic reason for the existence of an organization.
B) It attempts to identify the weaknesses of an organization and the threats that it is likely to face.
C) It often provides subtle cues about the importance that an organization places on its human resources.
D) It always signals an organization's true priorities.

Accepted Answer

The answer of Which of the following statements is true...

Question 15

A company that adopts a stability strategy plans to expand into new products or markets and intends to manage them by adopting the strategies used for managing its current businesses.

Accepted Answer

A stability strategy typically means that a company intends to maintain its current position and focus on its existing products and markets, rather than expanding into new areas.

Question 16

The top management team of a firm needs to consult with the human resource management (HRM) team before deciding to pursue a growth strategy.

Accepted Answer

Consulting with the HRM team is crucial as they can provide insights on workforce capabilities, training needs, and recruitment strategies to support the firm's growth objectives.

Question 17

The top management team of a company includes the chief operating officer (COO) of the company.

Accepted Answer

The top management team of a company typically includes senior executives who are responsible for managing the company's operations and strategy, and this often includes the Chief Operating Officer (COO) among other top positions like CEO, CFO, etc.

Question 18

In the context of organization design, the functional design is used when an organization has implemented a strategy of unrelated diversification.

Accepted Answer

Functional design is more commonly used in organizations with a single or closely related set of products or services, focusing on efficiency and expertise in specific functions. Unrelated diversification strategies often lead to a divisional structure to manage the distinct operations of each business unit independently.

Question 19

In the context of the adaptation model, HR managers in firms that pursue the analyzer strategy are most likely to:
A) recruit employees who like working with specific guidelines in a stable environment.
B) retain stable employees who exhibit high levels of commitment and loyalty to the firm.
C) recruit and retain entrepreneurial employees who are highly flexible and more dedicated to their craft or profession than to the organization itself.
D) recruit and retain employees who might be moderately entrepreneurial and flexible but who will also be quite dedicated and loyal to the organization.

Accepted Answer

The analyzer strategy involves a balance between stability and adaptability, seeking to innovate while also maintaining a core of traditional operations. Therefore, HR managers would look for employees who are somewhat entrepreneurial and flexible to adapt to new changes, but also dedicated and loyal to ensure stability and consistency within the organization.

Question 20

An agency problem occurs when there is a conflict of interest between the managers and the shareholders.

Accepted Answer

An agency problem arises when the managers (agents) who are supposed to act in the best interests of the shareholders (principals) pursue their own interests, leading to a conflict of interest between the two parties.

Quiz 4: The Competitive Environment

In the context of M-form organizations, the primary function of the corporate-level HR department is to:

Employees are potentially an excellent source of competitive advantage for an organization because:

Regardless of the specific organization design, in recent years many firms have been:

A company that attempts to develop an image or reputation for its product or service that sets the company apart from its competitors most likely uses a _____.

Corporate strategies deal with how a firm will compete in each market where it conducts business.

A key challenge for HR managers with firms using a retrenchment strategy is recruiting and training the large numbers of qualified employees.

A prospector strategy works best when a business operates in an environment with relatively little uncertainty and risk and high stability.

Which of the following strategies is frequently used by organizations after a period of retrenchment?

In the context of a turnaround strategy, the role of human resource managers is to:

If an organization uses a differentiation strategy, performance management must be focused on recognizing and rewarding performance leading to improved quality.

A cost leadership strategy allows a firm to charge the highest possible prices for its products.

In the context of the strategic alternatives of the adaptation model, which of the following strategies is assumed to work best when a business operates in an environment with relatively little uncertainty and risk and a high degree of stability?

Which of the following terms refers to the relatively stable set of psychological attributes or traits that distinguish one person from another?

Which of the following statements is true of a mission statement?

A company that adopts a stability strategy plans to expand into new products or markets and intends to manage them by adopting the strategies used for managing its current businesses.

The top management team of a firm needs to consult with the human resource management (HRM) team before deciding to pursue a growth strategy.

The top management team of a company includes the chief operating officer (COO) of the company.

In the context of organization design, the functional design is used when an organization has implemented a strategy of unrelated diversification.

In the context of the adaptation model, HR managers in firms that pursue the analyzer strategy are most likely to:

An agency problem occurs when there is a conflict of interest between the managers and the shareholders.