OBHR Chapter 2
Organizations use a value chain to determine which of the following?
- which aspect of the business will create the most customer value - which capability needs to be world class
The statement, "a complex set of values, beliefs, assumptions, and symbols that define the way in which a firm conducts its business," refers to which of the following?
organizational culture
The behaviors required of a person who holds a certain job in a certain social work environment are known as _____ behaviors
role
The strategic management decision-making process typically originates with which group in an organization?
top executives
True or false: The organization's mission is relevant to strategy formulation.
true
During the dot-com craze of the 1990s, organizations used which of the following tactics to attract talented employees? (Select all that apply.)
trying to become "employers of choice" developing "employee value propositions"
Which of the following are accurate descriptions of integrative linkage? (Select all that apply.)
It's based on continuous interaction. It's dynamic. It's multifaceted.
In practice, which of the following are typical ways in which HRM can influence the strategic management process? (Select all that apply.)
by limiting strategic options by helping consider how to gain or develop the necessary human resources by determining the costs of people-related resources for successful implementation
Companies with a highly developed learning capability have a ______.
competitive advantage
When a company seeks to maintain the current skills that exist in the organization by providing training that keeps those skills sharp among organizational members, it engages in a(n) ______ strategy.
concentration
A business model is a story of how a company will create value for __________ while making a profit.
customers
The phases of a strategic management plan are ______.
distinct yet interdependent
When an organization is pursuing an external growth strategy, it will attempt to ______ or integrate vertically or horizontally.
diversify
Which of the following are common aspects of a "divestment" strategy? (Select all that apply.)
divestitures liquidation retrenchment
An organization that pursues a(n) ______ strategy attempts to pare down its operations, usually because of serious economic difficulties.
divestment
True or false: HRM plays no role in either evaluating or implementing a merger or acquisition.
false
During recruitment, an organization seeks applicants ______.
for potential employment
Similarities in the ways companies attempt to compete within a single industry are known as ______.
generic strategies
Which of the following are important for establishing a company's strategy foundation? (Select all that apply.)
individuals must possess critical skills employees must be motivated tasks must be accomplished in pursuit of goals
Ultimately, the choices an organization makes when implementing a strategy are important because they ______.
make an economic difference
When an organization sets goals, it defines how its mission will be ______.
operationalized
Which of the following statements is true concerning company downsizing?
As a company strategy, it is sometimes called "rightsizing."
Companies can choose to treat their employees as which of the following? (Select all that apply.)
an expense an asset
Which of the following would be considered during an internal analysis? (Select all that apply.)
available financial resources available human resources available technological resources
When using two-way linkage, the strategic planning team informs the HRM function of the strategies under consideration _____ they are implemented. (Remember to type only one word in the blank.)
before
When a company is pursuing concentration strategies, appraisals tend to be more ______.
behavioral
When a company adopts a new strategy, which of the following are often integrated into job design? (Select all that apply.)
new tasks new ways of performing old tasks new technologies
While profit-making companies set various goals, their overarching goal is most often to maximize ______.
stockholder wealth
Which strategy implementation variables are the primary responsibility of HRM? (Select all that apply.)
task design reward systems development of people
Jobs are a combination of ______.
tasks
Which of the following is a model that categorizes the major operational functions of an organization according to their capabilities?
value chain
Which of the following are ways in which a pay system plays an important role in implementing strategies? (Select all that apply.)
- It can help to attract high-quality employees by offering greater benefits in comparison to those of competitors. - It can help get employees to fulfill specific duties by offering higher pay.
The two-way linkage between the HRM function and the strategic management function includes which three of the following steps? (Select all that apply.)
- The HRM executive develops programs to implement the strategic plan. - The strategic planning team informs HRM function of the possible strategies being considered. - HRM executives analyze implications of various strategies for the HR function.
The HRM function supports an organization's strategic plan in which of the following ways?
- by creating systems of control that motivate employees to achieve specified goals - by making sure there is an adequate number of properly skilled employees
Which of the following are likely to be found in an organization pursuing an internal growth strategy for product development? (Select all that apply.)
- development of interpersonal skills - training that is technical in nature - compensation packages that include incentives for hitting growth goals
Companies must determine which of the following? (Select all that apply.)
- employees' rights - how much employees should participate in decision making - the company's responsibility to its employees
Match the following basic accounting concepts that are important in understanding a company's business (on the left) with their appropriate definitions (on the right).
Fixed costs - Costs that are incurred regardless of the number of units produced Variable costs - Costs that are related directly to the quantity of units produced Contribution margins - The difference between the price of a unit and its variable costs Gross margin - The total amount of margin made on all the units sold
The process of selection involves identifying applicants with characteristics that will help the company ______.
achieve its goals
Which of the following are typically part of an "external growth" strategy? (Select all that apply.)
acquisitions mergers
At the ______ level of integration, the HRM department has no influence on a company's strategic business planning function.
administrative
At which level of integration is the attention of the HRM function focused solely on the day-to-day activities of a firm?
administrative
What is meant by "best of all worlds" in relation to delivering maximum value from a firm's capabilities?
aligning strategy, culture, and talent around customer value
Which of the following are part of the strategy implementation process? (Select all that apply.)
allocating resources developing employee-reward systems structuring the organization
When using two-way linkage, the strategic planning team informs the HRM function of the strategies under consideration ________ they are implemented. (Remember to type only one word in the blank.)
before
When an organization pursues a(n) ______ strategy, it is attempting to focus on what it does best in its established markets.
concentration
Which of the following are the two most significant generic strategies, according to researcher Michael Porter? (Select all that apply.)
cost leadership differentiation
An organization improves its chances of delivering value to customers when its ____ values align with the customer value.
cultural
Which of the following activities would most likely take place during the strategy formulation process? (Select all that apply.)
defining a company's external opportunities and threats generating various strategic alternatives
Employee ______ describes the acquiring of knowledge, skills, and behavior in the service of meeting the challenges of existing or nonexistent jobs.
development
Companies are able to obtain a human-resources pool capable of implementing a strategy through which of the following? (Select all that apply.)
development training recruitment selection
Which of the following are major components of the strategic management process that help guide strategy formulation? (Select all that apply.)
drafting a mission statement performing an internal analysis performing an external analysis
The strategies comprising what organizations actually do as opposed to what they intend to do are known as ______ strategies.
emergent
Performance management involves specifying which of the following? (Select all that apply.)
employee outcomes employee activities
Which of the following should be evaluated as part of strategic human resource management? (Select all that apply.)
employee selection employee skills employee training
When an organization examines its operating environment to identify strategic opportunities and threats, it conducts a(n) _____ analysis
external
True or false: One feature of firms with integrative linkage is that the HRM function of these firms relies on an iterative process of information exchange.
false
True or false: The best strategic issue through which HRM can influence the strategic management process is that of "where to compete."
false
Human resource management will likely become increasingly important for companies seeking to maintain a competitive advantage due to the current business world's ______.
fast rate of change
According to a study of compensation practices in 33 high-tech and 72 traditional companies, which of the following tended to use compensation systems that were oriented toward incentive pay with a lower percentage of total pay devoted to salary and benefits?
high-tech companies in the growth stage
Which strategic decision is a company addressing when it decides to compete on reliability instead of cost and delivery?
how to compete
Job analysis and design, recruitment and selection, and training and development are all types of _____________ _______________management practice.
human resource
strategy _____ is the process of devising the structure and allocating the resources to enact a company's chosen strategy.
implementation
The danger of one-way linkage is that the resulting strategic plans cannot be successfully _____
implemented
______ strategies result from proactive decisions made through the rational decision-making process used by managers developing the organization's strategic plan.
intended
When an organization pursues a(n) _______ growth strategy, it attempts to build on existing strengths by channeling its resources, such as product development, in that direction.
internal
When an organization tries to formally identify its strengths and weaknesses, it conducts a(n) ______ analysis.
internal
The process of gathering detailed information about particular jobs is known as ______.
job analysis
Which of the following are among the menus of HRM practices associated with strategy implementation? (Select all that apply.)
job analysis pay structure training and development recruitment
The process of determining what tasks should be grouped into a particular job is known as ______.
job design
Which of the following are likely aspects of an "internal growth" strategy? (Select all that apply.)
joint ventures innovation market development
Organizations that emphasize monitoring the business environment, absorbing and using that information to make decisions and restructuring themselves to compete in the environment they exist in, are known as ______ organizations.
learning
The former workers who no longer work for a company but to whom the company still owes pensions and other financial obligations are referred to as the company's _______ workforce.
legacy
When a firm's strategic business planners develop the strategic plan before revealing it to the HRM department, there exists a(n) ______ linkage.
one-way
Which of the following are examples of opportunities or threats that might be identified in an external analysis? (Select all that apply.)
pending legislation unserved customer segments potential labor shortages
Mergers rarely live up to expectations as a result of ______ issues, according to a report by the Conference Board.
people
The main component that serves as the "raw material" for a learning organization is ultimately the ______.
people
To align employees' activities and outcomes with organizational objectives, companies use ______.
performance management
Which of the following are major components of the strategic management process that help guide strategy formulation? (Select all that apply.)
performing an internal analysis performing an external analysis drafting a mission statement
Which of the following are integrated when an organization formulates a strategic plan? (Select all that apply.)
policies major goals action sequences
When a company pursues an internal growth strategy, which of the following become increasingly common for employees? (Select all that apply.)
promotions transfers hiring
The process by which applicants are sought for potential employment is known as ______
recruitment
When pursuing a concentration strategy, a company emphasizes which of the following? (Select all that apply.)
retaining skilled staff maintaining skill levels
In order to gain the greatest effectiveness, a company's HRM function needs to be integrally involved in the company's _____ management process.
strategic
Once a strategic planning team has developed and analyzed its strategic alternatives, the strategic managers must make a(n) ______.
strategic choice
The pattern of planned human resource deployments and activities that are intended to enable an organization to achieve its goals is known as ______.
strategic human resource management
When an organization seeks to address the competitive challenges it faces, it engages in a process known as ______.
strategic management
As part of the ______ formulation process, a company determines the company's mission and goals, as well as its external threats, external opportunities, internal strengths, and internal weaknesses.
strategy
Decisions about how many and what kind of employees to hire are directly impacted by the company's ______.
strategy
Depending on a company's ______, it can require different role behaviors.
strategy
The strategic management process includes which of the following components? (Select all that apply.)
strategy formulation strategy implementation
As part of strategy implementation, an essential element is the acquisition of ______ skills.
strategy-related
Which of the following are part of the strategy implementation process? (Select all that apply.)
structuring the organization allocating resources developing employee-reward systems
Which of the following labor-related factors made General Motors uncompetitive? (Select all that apply.)
the cost of its legacy workforce the cost of its legacy workforce
Employee ______ refers to a planned effort to facilitate the learning of job-related skills and knowledge.
training
Which are types of linkages that exist between the HRM function and the strategic management function in an organization? (Select all that apply.)
two-way integrative administrative
The condition in which HR practices and processes are focused on addressing the strategic needs of a business is called ______.
vertical alignment
Which of the following are strategic issues that a company must consider when deciding how to achieve its mission and goals in a competitive environment? (Select all that apply.)
where to compete with what to compete