Question 1

Which adaptation model of business strategy is characterized by ignoring the environment?

Accepted Answer

The Reactor adaptation model of business strategy is characterized by ignoring the environment and having no consistent response to changes in the environment. This is the opposite of the Analyzer model, which closely monitors and adapts to environmental changes, and the Prospector and Differentiation models, which actively seek out and exploit new opportunities in the environment. The Defender model also emphasizes stability and consistency, but does so by defending against environmental threats instead of ignoring them.

Question 2

Which of the following was NOT identified as an organizational component affecting the formulation and implementation of human resource strategy?

Accepted Answer

A

Question 3

Which of the following organizational designs is MOST likely to have few managerial levels?

Accepted Answer

Horizontal organizational design is characterized by few managerial levels, with a horizontal structure where employees have more autonomy and decision-making power, reducing the need for middle management. The other options, H-form, M-form, Conglomerate, and Divisional, tend to have more hierarchical structures and more managerial levels.

Question 4

Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?

Accepted Answer

Yum Brands' strategy of acquiring multiple fast-food firms suggests that a multidivisional design would be most appropriate. This design allows for each acquired company to operate independently under Yum Brands' umbrella, while also sharing resources and achieving economies of scale.

Question 5

The principles and beliefs that shape what employees think about a company is called

Accepted Answer

Organizational culture refers to the shared values, beliefs, behaviors, and attitudes that characterize an organization, and it shapes the way employees think about the company. A strong and positive organizational culture can help to attract and retain talented employees who share similar values and beliefs.

Question 6

An organization made up of various businesses similar in the products or services they provide is pursuing which type of strategy?

Accepted Answer

Related diversification involves an organization expanding into new markets or products that are related to its existing business. In this case, the organization is made up of various businesses that provide similar products or services, indicating a related diversification strategy.

Question 7

Which adaptation model of business strategy is best used when the situation is highly stable with low uncertainty?

Accepted Answer

The Defender adaptation model of business strategy is best used in a stable situation with low uncertainty. This model is focused on maintaining a strong position within a known market segment by emphasizing efficiency and cost control. It is best suited when the business is in a mature industry or faces intense competition.

Question 8

Andy is a member of high-level group within a large hospitality organization that develops and coordinates corporate strategy. Andy is likely part of a(n)

Accepted Answer

A high-level group within a large hospitality organization that develops and coordinates corporate strategy is likely to be a top management team. The other options such as focus group, quality circle, operations party, and maintenance team do not fit the description of a group that develops and coordinates corporate strategy.

Question 9

The set of factors that prompt people to perform work at high levels is called

Accepted Answer

Motivation is the set of factors that prompt people to perform work at high levels. Stress, interpersonal conflict, negative attitudes, and executive succession are not accurate descriptions of what drives people to perform at high levels.

Question 10

What is a psychological contract?

Accepted Answer

A psychological contract refers to the set of expectations held by an individual as to what they will contribute to the organization and what the organization will provide in return. It is a kind of unwritten agreement that outlines the mutual expectations of the employee and the employer. The expectations may include job responsibilities, compensation, job security, career growth opportunities, work-life balance, and other intangible factors that affect employee motivation and commitment to the organization.

Question 11

An individual's reactions to environmental factors that present excessive demands is called

Accepted Answer

The definition provided in the question matches the definition of stress, which refers to an individual's physical and emotional response to external demands that exceed their ability to cope with them. Motivation refers to the driving force behind an individual's behavior, while interpersonal conflict, negative attitudes, and executive succession are different concepts altogether.

Question 12

Companies can establish a competitive advantage by

Accepted Answer

Hiring good employees and effectively managing human resources can lead to higher productivity, better customer service, and innovation, which can create a competitive advantage for a company. A hierarchical management scheme may not be effective in all situations, and adopting a universalistic financial strategy may not fit the unique needs of a company. Ignoring the external competitive environment can result in missed opportunities and failure to adapt to changes in the market.

Question 13

When organizations are downsizing the number of employees in the hierarchy, this usually involves a ____ strategy.

Accepted Answer

Downsizing involves a retrenchment strategy, as the organization is reducing its workforce to cut costs or improve efficiency. Growth, stability, business, and diversification strategies usually involve expanding the organization's operations or maintaining its current size and scope.

Question 14

Rolex, a maker of expensive, high-quality watches that convey status and luxury, follows a differentiation strategy. Therefore, an important goal of its human resource strategy will likely be to

Accepted Answer

As a company that emphasizes differentiation, Rolex would likely want to hire employees who can offer unique and exceptional skills or services that help to set its products apart from competitors. This means that Rolex would want to prioritize hiring workers that can contribute to its brand's image of exclusivity and luxury, rather than simply seeking employees who can perform routine or standardized tasks. Therefore, hiring workers who are flexible and capable of performing a variety of tasks would be less important than finding workers who possess specialized knowledge, skills, and expertise that contribute to Rolex's reputation of quality and status.

Question 15

A new, medium-size hotel chain groups its personnel into different departments on the basis of individual expertise, which is called the ____ design.

Accepted Answer

The correct answer is E because both functional and U-form organizational designs group personnel based on their expertise. The functional design organizes employees based on their functions or roles within the organization, which is similar to the U-form (Unitary Form) structure where the organization is divided into departments each handling a specific operational area.

Question 16

The process of handling union issues and challenges is called

Accepted Answer

Labor relations primarily deal with handling union issues and challenges. It involves managing employer-employee relationships, negotiating collective bargaining agreements, and handling grievances and disputes. Downsizing, outsourcing, rightsizing, and outlook planning are not directly related to handling union issues and challenges.

Question 17

____ strategy involves the actions taken by firms to better operate in a relevant industry or market.

Accepted Answer

The answer of ____ strategy involves the actions taken by...

Question 18

The Home Depot is following an overall strategy of growth. It's the fastest-growing retailer in history, opening a new store every 43 hours. Which of the following actions is Home Depot NOT likely to use as it implements its strategy?

Accepted Answer

Home Depot's overall growth strategy would require them to not reduce the number of employees, so it is unlikely they will offer early retirement to workers. Choices A, B, D, and E all align with Home Depot's growth strategy by expanding their workforce, improving the quality of their employees, retaining current employees, and enhancing their skills through training.

Question 19

An organization's mission

Accepted Answer

An organization's mission encompasses its core purpose (C), the strategies to achieve its goals (A), its impact on human resource practices (B), and the unique characteristics and strengths that distinguish it from other organizations (D).

Question 20

When a company decides to own and operate several separate companies, which strategy is being employed?

Accepted Answer

Diversification involves a company expanding its operations by adding new product lines or entering new markets, which can be achieved through owning and operating several separate companies. This strategy can help a company spread its risk and potentially increase profitability by tapping into new revenue streams.

Quiz 4: The Competitive Environment