HR Chapter 4 Mindtap

a. goes through a period of rightsizing by closing operations

A turnaround strategy occurs when an organization: a. goes through a period of rightsizing by closing operations. b. adds new products to the existing core products of the organization. c. goes through a period of mass recruitment in order to get back on the right track. d. sets up new factories.

d. H-form design

Avont Inc. is a conglomerate that originated from a strategy of unrelated diversification and holds various businesses. The organization design of Avont Inc. is such that each business under it is autonomous. Also, each business has its separate HR department, and a corporate-level staff links business-level and corporate-level issues. In the given scenario, Avont Inc. uses the _____. a. divisional design b. M-form design c. functional design d. H-form design

c. an unrelated diversification strategy

Fabrisch, which started as an automobile company, has now acquired over 10 companies in the fast-food and IT industries. With its wide array of businesses, Fabrisch can shield itself from the adverse effects of business cycles, unexpected competition, and other economic fluctuations. In the context of corporate strategies, it is evident that Fabrisch has adopted _____. a. a related diversification strategy b. a differentiation strategy c. an unrelated diversification strategy d. the analyzer strategy

d. diversification strategy

Fionart Group owns several apparel and shoe businesses under different brand names. Being the parent corporation, it makes sure that all these businesses have as many vendors in common as possible. Moreover, the management at Fionart Group has a policy of rotating managers across its various businesses. In the given scenario, Fionart Group is following a _____. a. retrenchment strategy b. stability strategy c. turnaround strategy d. diversification strategy

a. Business strategy

Identify a strategy that deals with how a firm will compete in each market where it conducts its operations. a. Business strategy b. A diversification strategy c. Corporate strategy d. A stability strategy

d. be flexible enough to facilitate cross-business employee transfers.

If a firm uses a strategy of related diversification, its compensation system must be geared to: a. increase the benefits of employees who have an ethnocentric attitude in the workplace. b. reward employees based solely on their depth of knowledge. c. give incentives to employees solely during the process of rightsizing. d. be flexible enough to facilitate cross-business employee transfers.

b. is likely to be focused on the depth of knowledge and skills of its employees.

If a firm uses a strategy of unrelated diversification, its compensation system: a. must be flexible enough to facilitate cross-business employee transfers. b. is likely to be focused on the depth of knowledge and skills of its employees. c. is likely to be a part of the firm's employee-development strategy. d. must be based on the employees' age.

d. compensation strategy

In the context of HR strategy formulation, employee benefits and services and wage structure are part of a firm's _____. a. staffing strategy b. HR planning strategy c. development strategy d. compensation strategy

c. development strategy

In the context of HR strategy formulation, performance management is a component of a firm's _____. a. compensation strategy b. HR planning strategy c. development strategy d. staffing strategy

a. development strategy

In the context of HR strategy formulation, the training of employees and managers is a component of a firm's _____. a. development strategy b. staffing strategy c. employee benefits strategy d. compensation strategy

c. Performance-based incentives

In the context of HR strategy formulation, which of the following is a component of a firm's compensation strategy? a. Performance management activities b. Employee training and development c. Performance-based incentives d. Career planning and counseling

d. Career planning

In the context of HR strategy formulation, which of the following is a component of the employee-development strategy of a firm? a. HR planning b. Salary structure c. Placement d. Career planning

c. motivating their employees to work hard.

In the context of human resource management, companies can establish a competitive advantage by: a. implementing a hierarchical management scheme. b. focusing solely on their external environment. c. motivating their employees to work hard. d. adopting a centralized approach to organizational control.

d. defender strategy

In the context of the adaptation model, if HR managers in an organization recruit and retain stable employees who exhibit high levels of commitment and loyalty to the organization, the organization is using the _____. a. prospector strategy b. analyzer strategy c. reactor strategy d. defender strategy

c. analyzer strategy

In the context of the adaptation model, if HR managers in an organization seek to recruit and retain employees who might be moderately entrepreneurial and flexible but who will also be quite dedicated and loyal to the organization, the organization is using the _____. a. reactor strategy b. defender strategy c. analyzer strategy d. prospector strategy

b. The analyzer strategy

In the context of the adaptation model, which of the following strategies falls between the defender and prospector strategies? a. The turnaround strategy b. The analyzer strategy c. The retrenchment strategy d. The reactor strategy

d. affecting the performance effectiveness exhibited by each employee in a firm.

Interpersonal processes are especially important because of the role they play in: a. obstructing the effective implementation of the HR strategy of a firm. b. reducing organizational citizenship behaviors. c. increasing ethnocentrism in a firm. d. affecting the performance effectiveness exhibited by each employee in a firm

b. business strategy

Juan, a manager at Wiston Inc., prepares a presentation on how the company can compete effectively with other companies in the market. Juan's presentation is most likely based on the company's _____. a. turnaround strategy b. business strategy c. diversification strategy d. functional strategy

d. Functional strategy

Keith, the HR manager of a firm, puts forward a proposal to the top management that managing the major operations of the firm, such as finance and human resources, separately will lead to a more effective management system and will increase the profits of the firm in the long run. In the given scenario, which of the following strategies is Keith suggesting to the top management? a. A diversification strategy b. Business strategy c. A turnaround strategy d. Functional strategy

c. It can reengineer jobs so that they require minimal skills.

Which of the following statements is true of an organization using a cost leadership strategy? a. It focuses solely on developing a brand image for its product. b. It rewards employees based on the quality of work rather than on the quantity of work. c. It can reengineer jobs so that they require minimal skills. d. It can charge the highest possible prices for its products or services.

a. It does not have an ideal form

Which of the following statements is true of corporate culture? a. It does not have an ideal form. b. It is the basic reason for the existence of an organization. c. It cannot be communicated through training. d. It is a simple concept that can be measured objectively.

a. They are the true owners of a modern corporation.

Which of the following statements is true of stockholders? a. They are the true owners of a modern corporation. b. They always align their interests with those of the managers of an organization. c. They are overly concerned about risk. d. They are typically the people who run an organization on a day-to-day basis.

a. There has been a recent trend toward evaluating entire systems of HR activities.

Which of the following statements is true of the HR function in organizations? a. There has been a recent trend toward evaluating entire systems of HR activities. b. An HR function that adds little value is likely to be retained rather than outsourced. c. Effective HR management has been found to increase ethnocentrism among employees. d. Outsourcing an HR function is seldom dependent on the actual cost of keeping the function in-house.

c. Effective human resource management is increasingly being viewed as a source of competitive advantage by organizations.

Which of the following statements is true of the HR function of an organization? a. There has been a recent trend toward evaluating specific HR functions instead of evaluating entire systems of HR activities. b. An HR function that adds little value is likely to be retained rather than outsourced. c. Effective human resource management is increasingly being viewed as a source of competitive advantage by organizations. d. Outsourcing an HR function is seldom dependent on the actual cost of keeping the function in-house

a. They can be obstructed by the union in implementing any strategic change.

Which of the following statements is true of unionized firms? a. They can be obstructed by the union in implementing any strategic change. b. The development of strategy in the HRM function of unionized firms is not affected by collective bargaining. c. The management of unionized firms is not limited in its ability to formulate strategies. d. They have fewer rules and formal procedures than nonunionized firms.

a. A growth strategy

Which of the following strategies can be pursued internally by opening additional locations or externally through mergers, joint ventures, or the acquisition of other businesses? a. A growth strategy b. A stability strategy c. A retrenchment strategy d. A turnaround strategy

a. Corporate strategy

Which of the following strategies deals with determining what businesses a firm will operate? a. Corporate strategy b. Functional strategy c. A differentiation strategy d. A defender strategy

a. Functional strategy

Which of the following strategies deals with how an organization will manage each of its major operations such as marketing, finance, and human resources? a. Functional strategy b. A turnaround strategy c. Business strategy d. A diversification strategy

c. A stability strategy

Which of the following strategies does an organization adopt when its goal is to protect itself from environmental threats? a. Unrelated diversification b. Related diversification c. A stability strategy d. A growth strategy

a. The U-form design

Raptors Inc. is a start-up that manufactures sports goods. It classifies its departments based on their functions such as marketing, finance, and distribution to utilize its resources better. The HR department of the firm coordinates the activities across all these departments. Which of the following organization designs does Raptors Inc. use in the given scenario? a. The U-form design b. The H-form design c. The divisional design d. The M-form design

b. an agency problem

The interests of the management of an organization may differ from those of the owners, and this may most likely lead to _____. a. a union strike b. an agency problem c. backward vertical integration d. unrelated diversification

a. psychological contract

The overall set of expectations held by an individual with respect to what he or she will contribute to an organization and what the organization will provide the individual in return is called a _____. a. psychological contract b. vision statement c. value proposition d. mission statement

c. communication

The process by which two or more parties exchange information and share meaning is called _____. a. job embeddedness b. integration c. communication d. internal monologue

b. earn profit for its owners

The purpose of a business is to: a. increase ethnocentrism among its employees. b. earn profit for its owners. c. increase the affective commitment of its workers. d. train its employees.

d. The M-form design

Jolly Treats, a multinational corporation, began its operations 25 years ago with one business in the packaged food industry. The company has acquired five food manufacturing firms since then. In the given scenario, which of the following would be the most appropriate organization design for Jolly Treats's strategy? a. The functional design b. The U-form design c. The conglomerate design d. The M-form design

d. The focus strategy

Unitex Corp., a watch manufacturer, introduced a new sub-brand of glow-in-the-dark watches for kids. It subsequently attained a monopoly in this segment of the market in its home country owing to the cost effectiveness of the new watches. As a result, it discontinued all the other sub-brands of watches that it used to manufacture earlier to concentrate on its new customer base. In the given scenario, which of the following is a business strategy that Unitex Corp. most likely followed? a. A retrenchment strategy b. Related diversification c. Unrelated diversification d. The focus strategy

a. the businesses in an M-form organization are closely related to one other.

Unlike an H-form organization, _____. a. the businesses in an M-form organization are closely related to one other. b. a corporate-level staff links business-level and corporate-level issues in a U-form organization. c. coordination is usually centralized in an M-form organization. d. the businesses in a U-form organization have their own HR departments.

c. A stability strategy

Westick Inc., a computer manufacturing firm, rightsized itself by closing down two of its subsidiaries in the last fiscal year. It is now satisfied with its current management and its new position as the international market leader. The firm now wants to focus on maintaining its position as the market leader and ensuring that its e-waste management techniques continue to remain eco-friendly. Which of the following strategies should Westick Inc. adopt to achieve this goal? a. Related diversification b. A retrenchment strategy c. A stability strategy d. Unrelated diversification

d. In a prospector strategy, prospectors continually focus on new products and markets, whereas in a defender strategy, defenders focus primarily on their existing environment.

Which of the following is a difference between a prospector strategy and a defender strategy? a. A prospector strategy works best when the business environment has a high degree of stability, whereas a defender strategy works best when the business environment is dynamic and growing. b. A prospector strategy works best when the business environment has relatively little uncertainty, whereas a defender strategy works best when the business environment has considerable uncertainty. c. HR managers in firms using a prospector strategy recruit stable employees who exhibit loyalty to the firm, whereas HR managers in firms using a defender strategy recruit employees who frequently change their jobs. d. In a prospector strategy, prospectors continually focus on new products and markets, whereas in a defender strategy, defenders focus primarily on their existing environment.

c. Contingent pay

Which of the following is a human resource management (HRM) practice that can lead to improved firm performance? a. Pay secrecy b. Pay inversion c. Contingent pay d. Workplace ethnocentrism

d. Total quality management

Which of the following is a human resource management (HRM) practice that can lead to improved firm performance? a. Theory X management b. Workplace ethnocentrism c. Pay inversion d. Total quality management

c. Placing its employees in the right jobs

Which of the following is essential for a firm to gain a sustained competitive advantage over its competitors? a. Encouraging ethnocentrism in the workplace b. Hiring employees based on intuition c. Placing its employees in the right jobs d. Adopting a centralized approach to organizational control

c. A corporation can achieve synergy among the various businesses it owns.

Which of the following is the basic underlying assumption for using related diversification? a. A corporation can expand into products or markets that are distinct from its current products. b. A corporation can shield itself from environmental threats. c. A corporation can achieve synergy among the various businesses it owns. d. A corporation can maintain the status quo over an extended period of time.

a. Brandon, a clerk in a bank, who has a clear idea of the services he is expected to provide to bank managers and the incentives he expects from the bank in return for his services

Who among the following has a psychological contract with his or her organization? a. Brandon, a clerk in a bank, who has a clear idea of the services he is expected to provide to bank managers and the incentives he expects from the bank in return for his services b. Nichole, a content analyst, who has signed an agreement with her firm that forbids her from sharing her compensation details with other employees c. Silvia, an executive manager in a law firm, who feels that she receives a lower salary than her friends who have the same job profile in other companies d. George, a manager, who feels appreciated when he is assigned the job of counseling employees to help them relieve the stress associated with their jobs

c. retrenchment strategy

Yeally Inc., a garment manufacturer, is facing huge losses due to a decline in the demand for its products. In an effort to become profitable again, the management adopts a new strategy and decides to close three of its manufacturing units. It plans to invest the resulting resources into a product that has a high demand. In the given scenario, Yeally Inc. has adopted a _____. a. defender strategy b. stability strategy c. retrenchment strategy d. diversification strategy