MGMT 3320 Ch. 4

Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?

A multidivisional design

General Electric owns and operates are number of different businesses, which is primarily an example of a ____ strategy.

diversification

The organization's ____ is the basic reason for existence.

purpose

When organizations are downsizing the number of employees in the hierarchy, this usually involves a ____ strategy.

retrenchment

The top management team includes the:

-CEO -COO -chairperson of the board of directors -president

An organization's mission

-specifies how it will achieve its purpose -affects its human resource practices -is its basic reason for existence -describes its unique characteristics and strengths

When a company decides to own and operate several separate companies, which strategy is being employed?

Diversification

Pierre would like to increase the effectiveness of human resources at his firm. What advice would you give him?

Don't pay everyone the same. Pay high-performing workers more in order to increase motivation

A cost leadership strategy is one that focuses on increasing costs and charging high prestige prices.

False

The functional strategies help determine what businesses the firm will operate.

False

The top management team in a company usually includes all the shareholders.

False

A defender strategy works well in an environment where there is little change or uncertainty.

True

An agency problem occurs when there is a conflict between the interests of managers and the interests of shareholders.

True

The U-form, M-form, and H-form are known to be different organizational designs.

True

The stability strategy essentially maintains the status quo.

True

A new, medium-size hotel chain groups its personnel into different departments on the basis of individual expertise, which is called the ____ design.

both functional and U-form

In the past, evaluations of the effectiveness of the human resource function concentrated mainly on

cost

Companies that view their human resource function as a strategic asset should NOT evaluate HR effectiveness by investigating

costs as the only factor

A ____ strategy occurs when a company targets a particular facet of the market.

focus

Rolex, a maker of expensive, high-quality watches that convey status and luxury, follows a differentiation strategy. Therefore, an important goal of its human resource strategy will likely be to

hire workers who are flexible and can perform a variety of tasks

Companies can establish a competitive advantage by

hiring good employees effectively and managing human resources

The process of handling union issues and challenges is called

labor relations

The set of factors that prompt people to perform work at high levels is called

motivation

The principles and beliefs that shape what employees think about a company is called

organizational culture

Andy is a member of high-level group within a large hospitality organization that develops and coordinates corporate strategy. Andy is likely part of a(n)

top management team

____ strategy involves the actions taken by firms to better operate in a relevant industry or market.

Business

Which adaptation model of business strategy is best used when the situation is highly stable with low uncertainty?

Defender

Unrelated diversity occurs when an organization expand into products that are similar to its current ones.

False

____ strategies deal with how the firm manages each of its major functions such as marketing or human resources.

Functional

Which of the following organizational designs is MOST likely to have few managerial levels?

Horizontal

Which of the following was NOT identified as an organizational component affecting the formulation and implementation of human resource strategy?

Organizational development

Which adaptation model of business strategy is characterized by ignoring the environment?

Reactor

LMNO Corporation is a U.S.-based company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs. LMNO is in the process of acquiring another company, its major music store rival BeBop Records. Because its rap stars are so famous, LMNO charges crazed fans a higher price for its music compact discs and DVD videos. The fans don't mind, as they often have the opportunity to meet the rap stars in person at various LMNO music stores throughout the year. LMNO has a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.

Refer to Scenario 4.1. Which grand strategy does LMNO appear to have chosen at this time? -growth Refer to Scenario 4.1. Which corporate-level strategy does LMNO appear to follow? -related diversification Refer to Scenario 4.1. Which competitive strategy does LMNO's music and video store chain appear to have adopted? -differentiation Refer to Scenario 4.1. Which organizational form or design is LMNO likely to have adopted? -divisional, or M-form Refer to Scenario 4.1. LMNO's policies of no layoffs and promotion from within are likely to have the MOST positive effect on -employees' psychological contracts with the company

An organization made up of various businesses similar in the products or services they provide is pursuing which type of strategy?

Related diversification

The Home Depot is following an overall strategy of growth. It's the fastest-growing retailer in history, opening a new store every 43 hours. Which of the following actions is Home Depot NOT likely to use as it implements its strategy?

The Home Depot will offer early retirement to workers

Adrienne believes that it is fine to spend one or more hours each workday talking on the phone with personal friends. Adrienne's employer disagrees. This disagreement involves which part of the psychological contract?

The individual contributions

What is a psychological contract?

The set of expectations held by an individual as to what he or she will contribute to the organization and what the organization will provide in return

The adaptation model assumes that the firm should change its strategies to meet environmental characteristics.

True

The three components of human resource strategy formulation are staffing, development, and compensation strategies.

True

When Hershey family interests considered selling their Hershey Foods stock in 2001, employees were outraged. They felt betrayed and were angry and pessimistic. Which individual or interpersonal process was interfering with implementation of Hershey's strategy?

Worker attitudes

An individual's reactions to environmental factors that present excessive demands is called

stress