Chapter 2

Talent Philosophy

a system of beliefs about how employees should be treated

Resource-based view of the firm

a theory that a firm can develop a competitive advantage through the collection and harvesting of resources

competitive advantage

anything that gives a firm an edge over rivals in attracting customers and defending itself against competition.

Software that tracks recruits to help recruiters identify how many candidates are at each stage of its hiring process is called a(n) _____________.

applicant tracking system

growth strategy

company expansion organically (happening as the organization expands from within by opening new locations) or through mergers and acquisitions.

three types of business strategy

cost leadership, differentiation, specialization

Specialization strategy

focus on a narrow market segment or niche and pursue either a differentiation or cost leadership strategy within that market segment (Starbucks, Red Lobster, Seiko).

Strategy during growth phase

new and growing firms often pursue innovation or differentiation strategies to distinguish themselves from their competition

Viewing employees as an asset to be managed generally leads to a low-cost approach to staffing.

true

Strategy choice during decline phase

when markets are shrinking and business performance is weakening -Can pursue a cost-leadership strategy and allow the decline to continue until the business is no longer profitable. -Can try to make changes to revive the product or service.

strategy during maturity phase

-The focus shifts to maintaining or obtaining further market share through cost leadership, often by streamlining operations and focusing on efficiency. -Because mature companies have a larger pool of internal talent from which to draw, the talent focus becomes more internal.

Human Capital Advantage

acquiring a stock of quality talent that creates a competitive advantage

Promotions are likely to be fastest in organizations in the ________ stage of their life cycle.

growth

Which of the following is the best way for an organization to prepare employees for future ethical situations?

Provide scenario-based ethics training

A staffing function is centralized when an organization that has multiple business units has one staffing unit that is responsible for meeting the critical needs of all of the company's business units.

true

When the employees of an organization cooperate well together and achieve very high performance as a result of how they work together this is an example of a ___________.

human process advantage

Sources of Competitive Advantage

innovation, cost, service, quality, branding, distribution, speed, convenience, first to market.

Cost leadership strategy

strive to be the lowest cost producer for a particular level of product quality (Wal-Mart, Dell, FedEx).

Axis Auto tries to keep its operational spending as low as possible so that it can pass it savings on to customers in the form of lower prices. This is known as a ________ strategy.

cost-leadership

When viewing employees as assets, the staffing focus is on managing ________.

costs

Differentiation strategy

developing a product or service that has unique characteristics valued by customers (Johnson & Johnson, Nike, 3M).

External hiring reduces organizational diversity.

false

Most companies can replicate a competitor's capabilities by imitating the competitor's staffing practices.

false

Human Process Advantage

superior work processes that create a competitive advantage