Question 1

Which of the following is the set of forces that causes people to behave in certain ways?
A) Altruism
B) Motivation
C) Personality
D) Attitude

Accepted Answer

Motivation is the set of forces that causes people to behave in certain ways, influencing their actions and behaviors towards achieving specific goals.

Question 2

In the context of human resource management, companies can establish a competitive advantage by:
A) hiring the right people and training them to be effective.
B) implementing a hierarchical management scheme.
C) adopting a centralized approach to organizational control.
D) focusing solely on their external environment.

Accepted Answer

Hiring the right people and providing them with effective training can significantly contribute to a company's competitive advantage by enhancing productivity, innovation, and service quality, which are key factors in outperforming competitors.

Question 3

Which of the following is a difference between the functional design and the divisional design of organizations?
A) The functional design is used by large corporations, whereas the divisional design is used by small and new organizations.
B) The functional design looks similar to the H-form design, whereas the divisional design looks similar to the U-form design.
C) In the functional design, senior management usually provides coordination across departments, whereas in the divisional design, coordination is usually decentralized down to the various operating companies.
D) In the functional design, each business unit within a firm has its own human resource department, whereas in the divisional design, a firm has a single corporate-level human resource department to manage all human resource activities.

Accepted Answer

In the functional design, coordination across departments is typically centralized and managed by senior management, ensuring that all departments align with the overall organizational goals. In contrast, the divisional design decentralizes coordination to the divisions themselves, allowing them to operate more independently and respond more quickly to changes in their specific markets or sectors. This is a key difference between the two organizational designs.

Question 4

Sandra is the chief operating officer of a fast-moving consumer goods (FMCG) company. She is responsible for the overall strategic operation of the company and for communicating the company's vision to the employees. In this case, Sandra is most likely to be part of the:
A) technical team of the company.
B) labor union of the company.
C) top management team of the company.
D) employee association of the company.

Accepted Answer

As the chief operating officer (COO) responsible for the overall strategic operation and communication of the company's vision, Sandra is part of the top management team. This role involves making high-level decisions and guiding the company's direction, which is characteristic of top management positions.

Question 5

Anyx Inc., an electronics firm, manufactures home appliances as well as automobile engines. It also owns and operates an insurance firm and a software development firm. Which of the following strategies does Anyx Inc. use?
A) The diversification strategy
B) The turnaround strategy
C) The retrenchment strategy
D) The stability strategy

Accepted Answer

Anyx Inc. is involved in multiple, varied business activities such as manufacturing home appliances and automobile engines, and operating an insurance firm and a software development firm. This indicates a diversification strategy, where a company expands into different industries or product lines to reduce risk or capitalize on new opportunities.

Question 6

The group of senior executives responsible for the overall strategic operation of a firm is called the firm's _____.
A) labor union
B) trusteeship council
C) top management team
D) human resource department

Accepted Answer

The group of senior executives responsible for the overall strategic operation of a firm is known as the firm's top management team. This team typically includes positions such as the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and other high-level executives who make strategic decisions for the company.

Question 7

When an organization adopts a turnaround strategy, its HR managers need to be involved in:
A) recruiting entrepreneurial employees who are highly flexible and ambitious.
B) retaining the existing employees when the firm cannot offer any advancement opportunities.
C) decreasing the size of the organization's workforce.
D) rotating managers across various businesses of the corporation.

Accepted Answer

A turnaround strategy often involves restructuring and cost-cutting measures to stabilize a struggling company, which can include decreasing the size of the organization's workforce to reduce expenses and streamline operations.

Question 8

A cost leadership strategy is one that:
A) allows a company to charge the lowest possible prices for its products.
B) focuses on hiring experienced employees who may remain with the company for a long time.
C) has reward systems based on quality rather than on the quantity of output.
D) focuses on maximizing the overall costs as much as possible.

Accepted Answer

A cost leadership strategy aims to minimize costs in order to offer products at the lowest possible prices, thereby gaining a competitive advantage.

Question 9

In the context of the adaptation model, which of the following strategies works best when the business environment is dynamic and growing and has considerable uncertainty and risk?
A) A defender strategy
B) The prospector strategy
C) The analyzer strategy
D) A retrenchment strategy

Accepted Answer

The prospector strategy is most effective in dynamic, growing environments with high levels of uncertainty and risk because it focuses on innovation, exploring new opportunities, and adapting quickly to changing market conditions.

Question 10

Which of the following individuals would a company that uses a defender strategy prefer to retain the most?
A) Ron, a sales manager, who is one of the oldest employees of the company and is highly dedicated to his job
B) Marlene, a senior accountant, who seldom adheres to company policies but is good at her work
C) Tyler, a creative writer, who is very passionate about his work and prefers taking calculated artistic risks
D) Lena, a receptionist, who is friendly and approachable but keeps changing jobs

Accepted Answer

A defender strategy focuses on maintaining a stable and secure position within a particular domain or market, emphasizing efficiency, reliability, and consistency. Ron, being one of the oldest employees and highly dedicated, aligns well with this strategy by likely contributing to a stable and consistent work environment, which is crucial for a company employing a defender strategy.

Question 11

Widget Corp. is often known for its motto "Don't put all your eggs in one basket." Over the course of the past 15 years, the company has acquired a wide array of firms, which operate in different markets that are not associated with each other. In the context of corporate strategies, it is evident that Widget Corp. has adopted a(n) _____.
A) related diversification strategy
B) differentiation strategy
C) analyzer strategy
D) unrelated diversification strategy

Accepted Answer

Widget Corp.'s approach of acquiring firms in different, non-associated markets aligns with an unrelated diversification strategy. This strategy involves expanding into industries or markets that are not related to the company's current operations or markets, hence the term "unrelated." The motto "Don't put all your eggs in one basket" reflects the rationale behind this strategy, aiming to spread risk across different ventures.

Question 12

In the context of the adaptation model, which of the following is a strategic alternative that is seen as a strategic failure and is not held up as a model that any firm should emulate?
A) The defender
B) The prospector
C) The analyzer
D) The reactor

Accepted Answer

The reactor strategy is considered a strategic failure within the adaptation model because it lacks a consistent strategy and only reacts to environmental changes without a proactive or coherent strategic plan. Reactors do not have a clear approach to market changes and tend to perform poorly compared to firms that adopt the defender, prospector, or analyzer strategies, which have more defined and proactive strategic orientations.

Question 13

In the context of the adaptation model, HR managers in organizations using a defender strategy are most likely to recruit and retain:
A) employees who are highly skilled in their job irrespective of their commitment to the organization.
B) stable employees who exhibit high levels of commitment and loyalty to the organization.
C) entrepreneurial employees who are highly flexible and more dedicated to their craft or profession than to the organization itself.
D) employees who might be moderately entrepreneurial and flexible but who will also be quite dedicated and loyal to the organization.

Accepted Answer

Defender strategies in organizations focus on maintaining a stable and secure market position, emphasizing efficiency, reliability, and quality. HR managers in such organizations prioritize recruiting and retaining employees who are stable and exhibit high levels of commitment and loyalty to ensure consistent performance and alignment with the organization's long-term goals.

Question 14

Which of the following statements is true of the corporate strategy of an organization?
A) It addresses how the organization will manage its operations.
B) It should be closely tied to the human resource management practices within the organization.
C) It deals with how the organization will compete in each market where it conducts business.
D) It should provide guidelines about how the organization will manage its human resources.

Accepted Answer

Corporate strategy should align with human resource management practices to ensure that the organization's workforce supports its overall strategic goals.

Question 15

Labor relations is the process of dealing with employees who are represented by _____.
A) a task force
B) the board of directors of the firm
C) the government
D) a union

Accepted Answer

Labor relations typically involve interactions between employers and employees who are represented by a union. The union acts as an intermediary to negotiate wages, working conditions, and other employment terms on behalf of the employees.

Question 16

Which of the following statements is true of flat organizations?
A) They are highly bureaucratic.
B) They rely heavily on teamwork.
C) They are more rigid than vertical organizations.
D) They cannot adapt easily to changing environments.

Accepted Answer

Flat organizations emphasize a decentralized approach to management that encourages high levels of employee involvement and often relies on teamwork for decision-making and task completion, making them less hierarchical and bureaucratic.

Question 17

Which of the following occurs when an organization finds that its current operations are not effective, and major changes, such as rightsizing, are usually needed to rectify the problem?
A) A diversification strategy
B) A turnaround strategy
C) A growth strategy
D) A stability strategy

Accepted Answer

A turnaround strategy is implemented when an organization recognizes that its operations are not effective and decides that significant changes are necessary to rectify the situation. This often involves rightsizing and restructuring to improve organizational performance and efficiency.

Question 18

In the context of the adaptation model, which of the following is a strategic alternative that managers can select to match their organization's strategy with the basic conditions of their organization's environment?
A) The defender strategy
B) The focus strategy
C) Retrenchment
D) Unrelated diversification

Accepted Answer

The defender strategy is a strategic alternative in the adaptation model where an organization focuses on defending its current markets by improving efficiency, quality, and cost-effectiveness. This approach is chosen to match the organization's strategy with the basic conditions of its environment, especially in stable or slowly changing environments.

Question 19

If we examine fundamental human resource management (HRM) practices, it seems reasonable to suggest that:
A) it is enough to hire a competitor's employees to gain significant competitive advantage.
B) HRM teams do not play a significant role in firms using a growth strategy.
C) using systematic selection techniques is better than hiring based on intuition.
D) chief executive officers are the true owners of modern corporations-not the stockholders.

Accepted Answer

Systematic selection techniques in HRM are based on assessing candidates' skills, experiences, and fit for the role using structured methods, which are generally more effective and fair than relying on intuition. This approach helps in making more informed hiring decisions, leading to better job performance and organizational fit.

Question 20

The set of values that helps an organization's members understand what the organization stands for, how it accomplishes what it wants to accomplish, and what it considers important is called the organization's _____.
A) profile
B) purpose
C) culture
D) design

Accepted Answer

The set of values that helps an organization's members understand what the organization stands for, how it accomplishes what it wants to accomplish, and what it considers important is referred to as the organization's culture. Culture encompasses the beliefs, behaviors, and practices within an organization, guiding how employees interact and make decisions.

Quiz 4: The Competitive Environment

Which of the following is the set of forces that causes people to behave in certain ways?

In the context of human resource management, companies can establish a competitive advantage by:

Which of the following is a difference between the functional design and the divisional design of organizations?

Sandra is the chief operating officer of a fast-moving consumer goods (FMCG) company. She is responsible for the overall strategic operation of the company and for communicating the company's vision to the employees. In this case, Sandra is most likely to be part of the:

Anyx Inc., an electronics firm, manufactures home appliances as well as automobile engines. It also owns and operates an insurance firm and a software development firm. Which of the following strategies does Anyx Inc. use?

The group of senior executives responsible for the overall strategic operation of a firm is called the firm's _____.

When an organization adopts a turnaround strategy, its HR managers need to be involved in:

A cost leadership strategy is one that:

In the context of the adaptation model, which of the following strategies works best when the business environment is dynamic and growing and has considerable uncertainty and risk?

Which of the following individuals would a company that uses a defender strategy prefer to retain the most?

In the context of the adaptation model, which of the following is a strategic alternative that is seen as a strategic failure and is not held up as a model that any firm should emulate?

In the context of the adaptation model, HR managers in organizations using a defender strategy are most likely to recruit and retain:

Which of the following statements is true of the corporate strategy of an organization?

Labor relations is the process of dealing with employees who are represented by _____.

Which of the following statements is true of flat organizations?

Which of the following occurs when an organization finds that its current operations are not effective, and major changes, such as rightsizing, are usually needed to rectify the problem?

In the context of the adaptation model, which of the following is a strategic alternative that managers can select to match their organization's strategy with the basic conditions of their organization's environment?

If we examine fundamental human resource management (HRM) practices, it seems reasonable to suggest that:

The set of values that helps an organization's members understand what the organization stands for, how it accomplishes what it wants to accomplish, and what it considers important is called the organization's _____.