Question 1

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

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:

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?

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:

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?

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 _____.

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:

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:

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?

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?

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) _____.

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?

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:

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?

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 _____.

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?

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?

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?

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:

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 _____.

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