CH1 Strategic Business

Cash and equipment such as a mass spectrometer in a research lab are examples of which of the following? A) Non liquid assets B) Organizational structure C) Capital D) Liquid assets

C) Capital

This concept describes a company's success when the company acquires or develops capabilities that facilitate outperforming the competition. A) Differentiation B) Compensation practices C) Competitive advantage D) Capital

C) Competitive advantage

Which of following enables companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation? A) Capital B) Assets C) Competency D) Human capital

A) Capital

What do compensation managers use to recognize differences in the relative worth of jobs and to establish pay differentials based upon management priorities? A) Job evaluation B) Internal consistency C) Job analysis D) Strategic analysis

A) Job evaluation

Strategic management involves distinguishing between ________ and ________ in attempting to achieve company goals, thus making strategic management an imprecise process. A) threats and opportunities B) strengths and weaknesess C) threats and weaknesses D) strengths and opportunities

A) threats and opportunities

Which of the following is an example of a monetary reward? A) Vacations B) Medical insurance C) Daycare assistance D) Bonuses

D) Bonuses

Which of the following refers to the planned use of company resources-financial capital, equipment capital, and human capital-to promote and sustain competitive advantage? A) Comparative analysis B) Competitive business strategy C) Strategic analysis D) 360 degree analysis

B) Competitive business strategy

Discerning threats and opportunities is the main focus of which activity? A) Human resource planning B) Environmental scanning C) Job evaluation D) Job analysis

B) Environmental scanning

This group is directly involved in producing goods and delivering services for a company. A) Staff employees B) Line employees C) Managers D) Executives

B) Line employees

As a strategic business partner, HR and compensation professionals today need to think most like whom? A) Chief financial officer (CFO) B) Vice president of human resources C) Comptroller D) Chief executive officer (CEO)

D) Chief executive officer (CEO)

Which of the following group is a stakeholder within a company? A) Equal Employment Opportunity Commission B) Department of Labor C) Prospective employees D) Line managers

D) Line managers

Elizabeth works as a customer service representative for a mobile phone service provider, and she has been answering questions regarding technical issues for iPhones. Recently, she started to attend a training program about other smart phones such as Androids. Upon successful completion of this training program, Elizabeth will be able to handle both iPhone and Android questions as well. What type of pay system does it employ if they reward Elizabeth's completion of this training with a pay raise. A) Incentive pay B) Merit pay C) Seniority pay D) Pay-for-knowledge

D) Pay-for-knowledge

________ refers to the design and implementation of compensation systems to reinforce the objectives of both HR strategies and competitive business strategies. A) Strategic Analysis B) Extrinsic compensation C) Intrinsic compensation D) Strategic compensation

D) Strategic compensation

An HR generalist is only involved in the compensation functions of an organization such as building job structures, market competitive pay systems, and merit pay structures? (T/F)

False

Cash and equipment are examples of which of liquid assets? (T/F)

False

Job evaluation compensation systems go a long way in attracting and retaining the most qualified employees and are based upon market and compensation surveys. (T/F)

False

The Fair Labor Standards Act (FLSA) made it illegal to pay women less for performing equal work as men. (T/F)

False

The success of HR departments depends on how well they serve the interests of executives, shareholders and the U.S. government. (T/F)

False

Discerning threats and opportunities is the main focus of strategic compensation. (T/F)

False Environmental Scanning

Companies that implement incentive pay and pay-for-knowledge plans generally increase the amount of classroom and on-the-job training as these types of plans make training necessary rather than optional. (T/F)

False Pay-for-knowledge & person-focused

Capital enables companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation? (T/F)

True

Incentive pay systems reward employees for partially or completely attaining a predetermined work objective. (T/F)

True

Oftentimes, companies use early retirement programs to trim their payroll responsibilities by encouraging higher paid workers with more seniority to voluntarily leave the company earlier than previously planned. (T/F)

True

Pay structures represent the pay rate differences for jobs and employee contributions of unequal worth to a company? (T/F)

True

Sandra's position changed from supervisor at the planning department to supervisor at the new projects department. In terms of career development, this would be considered a lateral move within the company's hierarchy. (T/F)

True