Question 1

You have been asked to provide some element of rationale why some companies using a human relations strategy sometimes attempt to change to a more classical framework.Which statement would best describe the most important issue associated with your explanation?

Accepted Answer

The answer of You have been asked to provide some...

Question 2

Which of the following is a structural variable interrelated with compensation?

Accepted Answer

Job design is a structural variable that is linked to compensation because it determines the tasks, responsibilities, and skills required for a job. These factors directly impact an employee's compensation or salary, as well as their opportunities for career advancement or development. While business strategy, organization size, and technology can influence compensation indirectly, their relationship is not as direct as job design.

Question 3

Which term refers to the vehicle used by an organization for executing its business strategy?

Accepted Answer

The term that refers to the vehicle used by an organization for executing its business strategy is "structure." An organization's structure outlines the roles, responsibilities, and relationships between different departments and individuals within the organization, providing a framework for how the organization operates and carries out its strategy. Culture (B) refers to the shared values, beliefs, and behaviors of the people within the organization, while horizontal fit (C) and vertical fit (D) refer to the alignment of various elements within an organization, such as strategy, structure, culture, and systems. However, neither of these terms specifically refers to the vehicle used by an organization for executing its business strategy.

Question 4

According to the textbook,which term would best describe an analyzer business strategy?

Accepted Answer

An analyzer business strategy is best described by the term "balance" because it involves a mix of approaches, balancing between the aggressive pursuit of new opportunities and the cautious approach of risk minimization.

Question 5

Which variable indicates to management the most appropriate managerial strategy to use in an organization?

Accepted Answer

Contextual variables, such as the size of the organization, its technology, and the external environment, provide information that can guide management in determining the most appropriate managerial strategy to use. For example, a small organization may require a more centralized management approach, whereas a larger organization may benefit from a more decentralized approach. Similarly, an organization operating in a rapidly changing environment may require a more flexible and adaptive approach to management, while an organization operating in a more stable environment may benefit from a more structured and hierarchical approach.

Question 6

What can you determine by examining a firm's contextual variables?

Accepted Answer

Contextual variables help determine the most suitable organizational structure by considering factors like size, technology, environment, and strategy.

Question 7

You have been asked to explain to a manager the notion of structural variables within the context of a strategic framework for compensation.Which variable would you elaborate on?

Accepted Answer

Structural variables refer to the way work is organized and divided into subtasks within a company. This includes factors such as job design, organizational structure, and hierarchy. It is an important consideration when developing a strategic framework for compensation as it affects the level of skill required for each job, the level of autonomy employees have, and the level of interdependence between employees. Understanding the structural variables can help determine the appropriate pay structure and levels for each position within the company.

Question 8

3M and Apple have organizational strategies that encourage innovation.As a result,their compensation strategies support innovative behaviours by employees.Which term refers to this alignment of strategies?

Accepted Answer

Vertical fit refers to the alignment of business strategies with HR practices, ensuring that compensation strategies support organizational goals like innovation.

Question 9

As a human resources consultant,you decided to recommend to a business owner that she should use a contingency view to organizational design.In order to support your recommendation,what would you look at first from a business structure perspective?

Accepted Answer

When recommending the use of a contingency view to organizational design, the first thing to look at from a business structure perspective would be contextual variables. This includes factors such as the company's culture, market conditions, and legal environment, which can all impact the design of the organization. By understanding these contextual variables, HR consultants can better determine what structural and job design variables may be most effective for the organization. Financial variables may also be important, but they typically come after understanding the overall context of the organization.

Question 10

Which condition has NOT made it increasingly difficult for Canadian firms to make the classical managerial strategy work for them?

Accepted Answer

The answer of Which condition has NOT made it increasingly...

Question 11

Which term best describes the scope of business operations undertaken by an organization?

Accepted Answer

The term "domain" refers to the specific area or range of business operations that an organization is involved in.

Question 12

Which set of strategies reflects different assumptions about employees and how they should be managed?

Accepted Answer

Classical, human relations, and high-involvement are three different sets of assumptions about employees and how they should be managed. Classical assumes that employees are solely motivated by financial incentives and need to be closely supervised, managed and controlled. Human relations assumes that employees are motivated by social needs and desire to belong to a group. High involvement assumes that employees are driven by a sense of ownership and the desire to contribute to the success of the organization. Different strategies, such as low cost and differentiation, relate more to the overall competitive strategy of the organization, while corporate, competitive, and business are different levels of strategic planning. Defender, prospector, and analyzer refer to types of business strategies.

Question 13

Which managerial strategy most highly values an organization's culture?

Accepted Answer

High involvement strategy places importance on the culture of an organization, as it involves employees in decision-making processes and values their input. This leads to a stronger sense of ownership and commitment to the organization's values and goals, which in turn strengthens the culture. Classical management emphasizes efficiency and productivity over culture, and human relations management focuses on building relationships between management and employees but may not prioritize the overall culture. Hybrid management combines different strategies but does not necessarily prioritize culture over other aspects. Therefore, high involvement is the most appropriate choice for valuing an organization's culture.

Question 14

Which key cultural value would be detrimental to a high-involvement organization?

Accepted Answer

Doing things the way they have always been done can be detrimental to a high-involvement organization because it can stifle innovation and creativity, which are important factors in a culture of high involvement. This cultural value promotes maintaining the status quo rather than thinking critically and being open to change.

Question 15

Which organizational variable would complement a classical management strategy?

Accepted Answer

Classical management emphasizes a structured and organized approach to work, so strong policies and procedures that dictate work processes align with this strategy.

Question 16

What should an effective organizational structure provide an organization?

Accepted Answer

An effective organizational structure should decrease both internal and external uncertainty for an organization. It should clarify roles and responsibilities within the organization, provide clear communication channels, and promote efficiency in decision-making and resource allocation. This ultimately leads to increased productivity and effectiveness for the organization as a whole.

Question 17

Which characteristics are common in a classical organization?

Accepted Answer

Strong management control over employees is a common characteristic of a classical organization. This type of organization typically has a hierarchical structure with clear lines of authority and a focus on efficiency and productivity. Joint employee-management planning and goal setting can occur in some classical organizations, but it is not as common as strong management control. Intrinsic rewards may be used as a reward system, but extrinsic rewards are more prevalent. While loyal employees who are dedicated to the norms of the organization may exist in a classical organization, it is not necessarily a defining characteristic.

Question 18

Which of the following is a contextual variable to consider when deciding on the managerial strategy to be used?

Accepted Answer

Business strategy is a contextual variable that influences the choice of managerial strategy, as it outlines the organization's overall direction and objectives, which management strategies must support.

Question 19

You recently transferred from a smaller manufacturing firm to a larger one and discovered that,although entirely different,both compensation systems are effective.How is this possible?

Accepted Answer

The effectiveness of a compensation system depends on how well it aligns with the organization's goals and strategy. If both companies have designed their compensation systems in a way that supports their unique business models and objectives, then it is possible that both systems can be effective, even if they are different. Factors like well-trained managers and competitive market rates may also play a role in compensation effectiveness, but they're not the only determinants.

Question 20

The training,compensation,and performance management functions at ABC Inc.are all focused on helping the organization achieve its goals.What is this alignment of strategies called?

Accepted Answer

Horizontal fit refers to the alignment and integration of the HR functions (like training, compensation, and performance management) to ensure they are consistent and support each other in achieving the organization's goals.

Quiz 2: A Strategic Framework for Compensation