Question 1

Strategy refers to the fundamental direction that an organization chooses.

Accepted Answer

Strategy is the fundamental direction or long-term plan that an organization chooses to achieve its goals and objectives.

Question 2

Research investigating high-performance workplaces found that performance-based pay _____ when combined with other high performance practices.

Accepted Answer

Performance-based pay improves attitudes and behaviors when combined with other high performance practices because it provides employees with a clear understanding of what is expected of them and how their performance will be evaluated. This can lead to increased motivation and productivity, as well as improved attitudes towards work.

Question 3

When organization performance declines,

Accepted Answer

Performance-based pay plans may not pay off as intended when organization performance declines. This could be due to a variety of factors such as lack of employee motivation, insufficient resources, or ineffective management. In such cases, managers may need to reassess their pay practices and consider alternative approaches to addressing the underlying issues affecting organizational performance. While employees may work harder to improve performance, this alone may not be sufficient to address the root causes of the decline in performance.

Question 4

Which of the following statements is not true?

Accepted Answer

Focusing solely on employee contributions may not always be the best practice as it may ignore other important objectives such as teamwork, collaboration, and employee development. It is important to consider a balance of objectives when designing a compensation strategy.

Question 5

All organizations that pay their employees have a compensation strategy even though it may not be stated or written.

Accepted Answer

Even if the compensation strategy is not explicitly stated or written down, every organization that pays their employees has a strategy in place for determining salaries, benefits, and other forms of compensation. This strategy may be based on market data, performance metrics, or other factors, but regardless, it guides the organization's decisions about how to compensate its employees.

Question 6

Labor market-based compensation practices in countries such as China,Germany and France,are likely to be less effective than in countries such as the U.S.,Korea or Singapore because there is less movement from company to company

Accepted Answer

Labor market-based compensation practices rely on the mobility of workers from one company to another, which allows for competition and the possibility of higher wages. In countries where there is less movement between companies, such as China, Germany, and France, these practices may be less effective. The U.S., Korea, and Singapore are examples of countries with more mobility, thus making these practices more effective.

Question 7

In the proper sequence of strategic decisions,HR strategies are made before business unit strategies.

Accepted Answer

Business unit strategies are typically developed before HR strategies as they guide the direction and focus of the organization, which in turn informs the human resource policies and practices needed to support those strategies. HR strategies are developed to align with and support the overall business unit strategies.

Question 8

An organization's strategy is defined by the tradeoffs in choices of what to do and what not to do.

Accepted Answer

This is true because a strategy involves making choices in order to prioritize and allocate resources based on the organization's goals and objectives. These choices often involve tradeoffs, as some actions or initiatives may need to be emphasized at the expense of others.

Question 9

Research shows that ____________can effectively shift an organization in a downward performance spiral to an upward one.

Accepted Answer

The answer of Research shows that ____________can effectively shift an...

Question 10

What business should a company be in and how does the company win are questions that are a part of mapping a total compensation strategy.

Accepted Answer

Mapping a total compensation strategy involves determining how much and what type of compensation should be given to employees, based on factors such as the company's budget, industry benchmarks, and employee performance. The questions of what business the company should be in and how it should win are part of the company's overall business strategy, but do not directly pertain to compensation strategy.

Question 11

One of Whole Foods' employee contributions strategic compensation choices is to seek and engage employees who are going to help the company make money.

Accepted Answer

The answer of One of Whole Foods' employee contributions strategic...

Question 12

Compensation systems focusing on competitor labor costs typically follow a cost-cutter strategy.

Accepted Answer

Compensation systems that focus on competitor labor costs aim to reduce labor costs by benchmarking against the competition. This approach is typically associated with a cost-cutter strategy, as the focus is on reducing costs rather than investing in talent and workforce development.

Question 13

When Microsoft replaced stock options with stock awards,they were asking employees to put more "skin in the game".

Accepted Answer

Stock awards, unlike stock options, do not require employees to purchase shares at a set price. Instead, they are given shares outright, reducing the financial risk for employees and not necessarily increasing their "skin in the game."

Question 14

Customer-focused pay strategies are very likely to use market-based pay.

Accepted Answer

The answer of Customer-focused pay strategies are very likely to...

Question 15

Most firms do not have generic strategies but use a blend of cost and innovation.

Accepted Answer

Most firms do not exclusively use either a cost or innovation strategy, but rather a combination of both. This is known as a hybrid or blended strategy.

Question 16

Internal alignment refers to how differently levels of skills and work are paid across different organizations.

Accepted Answer

Internal alignment refers to the pay relationships among jobs or skill levels within a single organization, not across different organizations.

Question 17

Most organizations rely upon the market to determine how to pay their employees since compensation strategy is uncertain and complex.

Accepted Answer

Compensation strategy is not uncertain and complex, and most organizations do rely on the market to determine how to pay their employees.

Question 18

IBM was discussed as an example of an organization that changed it pay system and strategy to meet a different business strategy.

Accepted Answer

IBM is indeed an example of an organization that changed its pay system and strategy to align with a different business strategy.

Question 19

_____ is a "best practice".

Accepted Answer

The answer of _____ is a "best practice".
...

Question 20

How an organization positions its total compensation against competitors is part of external competitiveness strategic choices.

Accepted Answer

External competitiveness refers to how an organization's compensation and benefits package compare to those of its competitors. Positioning total compensation against competitors is a key component of this strategic choice.

Quiz 2: Strategy: The Totality of Decisions