Question 1

Strategic management's success requires a commitment to a defined set of objectives by managers.

Accepted Answer

Strategic management involves setting and achieving specific objectives through the allocation of resources, and managers must be committed to this process in order for it to be successful.

Question 2

The Acme Global Corporation is seeking information on how to create a plan to that will allow it to reach its goals.In doing so,Acme Global is trying to answer which of the following major strategic question?

Accepted Answer

Creating a plan to reach goals involves strategizing on how to move from the current position to the desired future state, which directly answers the question, "How do we plan to get there?"

Question 3

Centralization of decision-making tends to create greater control within an organization,because the few decision makers become very skilled at determining the best course of action in a particular situation.

Accepted Answer

Centralization of decision-making narrows down the number of decision makers, leading to a more focused and skilled decision-making process. This, in turn, leads to greater control within the organization as decision-making becomes more efficient and effective.

Question 4

There is only one "best" structure.

Accepted Answer

There is not necessarily one "best" structure as it depends on various factors such as the purpose, context, and target audience of the structure. Different structures may be more effective for different situations.

Question 5

Brian recommends that the organization focus on selling its products to people aged 65 and older.Brian is recommending the ________ strategy.

Accepted Answer

Brian is recommending a niche strategy, which involves focusing on a specific market segment. In this case, the segment is people aged 65 and older.

Question 6

The Acme Global Corporation is asking questions like "what will the organization look like in 10 years?" and "what is the vision of the organization?" From these questions,it is clear that Acme Global is trying to answer which of the following major strategic question?

Accepted Answer

Acme Global is trying to answer questions related to defining their long-term direction and goals, which falls under the category of "Where do we want to go?" This is a major strategic question that guides the development of the organization's mission and vision.

Question 7

Values,beliefs,and assumptions are often referred to as visible levels of culture.

Accepted Answer

Values, beliefs, and assumptions are actually considered to be the invisible or underlying levels of culture, while visible levels may include things like clothing, food, and language.

Question 8

Vertical differentiation refers to breaking organizations up into departments.

Accepted Answer

Vertical differentiation refers to the way an organization structures its hierarchy of authority and creates layers of management, not to the division into departments.

Question 9

Shaun recommends that the organization do everything it can to lower the organizational costs required to produce widgets while still charging customers the same price for the product.Shaun is recommending the ________ strategy.

Accepted Answer

Shaun is recommending the cost leadership strategy, which aims to reduce costs as much as possible while maintaining the same price for the product, in order to achieve a competitive advantage. This strategy is often used by companies that produce standardized products and compete on price.

Question 10

The jobs in the Acme Global Corporation are very standardized.Each job has a clear job description and there are many policies,procedures,and rules for employees to follow.This creation of a routine way of doing jobs suggests that Acme Global has a high degree of _________ in its structure.

Accepted Answer

Formalization refers to the extent to which explicit rules, policies, and procedures govern work activities within an organization. The fact that each job in Acme Global has a clear job description and there are many policies, procedures, and rules for employees to follow indicates a high degree of formalization in its structure. Centralization refers to the extent to which decision-making authority is concentrated at higher levels of the organization, spatial differentiation refers to the physical separation of units within an organization, and horizontal differentiation refers to the degree to which jobs within an organization are divided into different levels of authority and responsibility. While these concepts may also be present within Acme Global, they are not specifically demonstrated by the given information.

Question 11

On its website,the Acme Global Corporation published a statement of what the various organizational units will do and what each will accomplish to fulfill the organization's vision.This is a ________ statement.

Accepted Answer

The statement described in the question is a mission statement, which outlines the organization's overall purpose and direction. Strategy refers to the specific tactics and plans used to achieve the mission, HR scorecard is a tool for measuring HR performance, and structure refers to the organization's design and division of tasks.

Question 12

Executives at the Acme Global Corporation give awards to high performing employees.The executives believe that recognizing the performance of a few employees will inspire all employees to work hard.This type of decision making is part of the _________ level of culture.

Accepted Answer

The decision to give awards to high performing employees reflects the values and beliefs of the company. The executives believe that recognizing and rewarding good work will inspire other employees to work harder, demonstrating their belief in the importance of hard work and dedication to achieving success. This decision reflects the values and beliefs that are part of the organizational culture.

Question 13

Jill had an idea for improving the process of recording invoices.When she told her boss about her idea,he told her it was a good idea but the department would stick with the old system.When she asked why they could not change to the new system,her boss would only say,"We have always done it this way and it makes sense to us." This is an example of the _______ level of culture.

Accepted Answer

The boss's response, "We have always done it this way and it makes sense to us," reflects underlying assumptions about how things should be done within the organization. These assumptions are often unspoken but guide behavior and decision-making at a fundamental level.

Question 14

On its website,the Acme Global Corporation published a statement of what it expects to become as an organization in 10 years.It does not say how Acme Global will achieve this future state.This is a ________ statement.

Accepted Answer

A vision statement is a statement that outlines what an organization aims to achieve in the long-term future. It is a description of the future state of the organization, without including specific details on how that state will be achieved. A vision statement serves as a guide and inspires employees and stakeholders to work towards a common goal.

Question 15

Aileen recommends that the organization invest in creating a strong brand image so consumers will be willing to pay more for its product than they are willing to pay for its competitor's product.Aileen is recommending the ________ strategy.

Accepted Answer

Aileen is recommending the differentiation strategy, which involves creating a unique and desirable product or brand image that sets the organization apart from its competitors and allows it to charge a premium price. This is different from cost leadership, which involves focusing on minimizing costs in order to offer lower prices, and focus, which involves targeting a specific niche market. The branding strategy is a component of differentiation, but does not encompass the whole strategy.

Question 16

The Acme Global Corporation prefers to concentrate decision making at the top of the organizational chart.This allows the company to focus on hiring good decision makers in only a few jobs.This would indicate that Acme Global has a high degree of _________ in its structure.

Accepted Answer

Centralization refers to the degree to which decision making is concentrated at the top of the organizational chart. This aligns with the statement that Acme Global Corporation prefers to concentrate decision making at the top, indicating a high degree of centralization in its structure. Vertical differentiation refers to the number of hierarchical levels in an organization, horizontal differentiation refers to the division of labor and specialization, and formalization refers to the degree of rules and procedures in place. While these elements may also be present in Acme Global's structure, the statement specifically refers to a preference for centralization.

Question 17

As an organization grows larger,the decision-making process speeds up.

Accepted Answer

As an organization grows larger, the decision-making process tends to slow down due to increased bureaucracy, hierarchy, and communication channels.

Question 18

The balanced scorecard says that measurement of a company's success using purely financial measure is not sufficient.

Accepted Answer

The balanced scorecard approach emphasizes the need for companies to use a combination of financial and non-financial measures to evaluate their performance and achieve their strategic objectives. This includes measuring factors such as customer satisfaction, internal business processes, and learning and growth.

Question 19

The organizational chart of the Acme Global Corporation looks like a pyramid.It illustrates the various layers in the organization and provides information on the chain of command.Overall,it provides information on _________ in the organization.

Accepted Answer

The organizational chart, which is shaped as a pyramid, illustrates vertical differentiation in the organization. This means that the chart denotes different levels of authority and responsibility that employees have, with those at the top having more authority and those lower in the chart having less authority. The pyramid shape indicates a hierarchy of positions, which represents the chain of command. Therefore, the correct answer is (B) vertical differentiation.

Question 20

Executives at the Acme Global Corporation display their awards and certificates prominently in their offices.This demonstration of their achievements is part of the _______ level of culture.

Accepted Answer

The behavior level of culture includes visible actions and objects, such as the display of awards and certificates, which can be directly observed in an organization.

Quiz 2: Strategy-Driven Human Resource Management