MGMT 343 Exam 1 - Ch. 2

Which of the following is the lowest level of integration between the human resource management function and the strategic management function?

Administrative linkage

A company employing a differentiation strategy requires employees who

Are highly creative and cooperative

The strategic management decision-making process usually takes place at a firm's highest levels, with a firm's strategic planning group, which includes

Chief executive officer and president

A company that wants to become the lowest cost producer in an industry should _____.

Construct efficient large-scale facilities

Which of the following is an example of a fixed cost?

Factory Rent

An overall cost leadership strategy is achieved primarily by offering unique product features.

False

Companies engaged in a cost strategy require employees to have reduced concern for quantity and a short-term focus.

False

Companies that are not diversified use objective measures of performance to evaluate managers.

False

Concentration strategies require that an organization bring radical change to the current skills that exist in the organization.

False

Differentiation companies will have compensation systems that are geared toward internal rather than external equity.

False

Executives who have extensive knowledge of the behaviors that lead to effective performance tend to focus on evaluating the objective performance results of their subordinate managers.

False

In a two-way linkage, an organization is restricted from considering the human resource issues while formulating its strategic plan.

False

Strategic planning groups decide on a strategic direction during the strategy implementation phase.

False

Strategies emphasizing market share or operating costs are called "external growth" strategies.

False

The strategy a company is pursuing does not have an impact on the types of employees that it seeks to recruit and select.

False

To be maximally effective, the human resource management function of a company must be isolated from the company's strategic management process.

False

Untapped labor pools are an example of a strategic threat to an organization's operating environment.

False

An organization's _____ is what it hopes to achieve in the medium- to long-term future, and it reflects how an organization's reason for being is operationalized.

Goal

An organization uses _____ to measure the quantity and quality of its resources.

Internal Analysis

Which of the following is used by an organization to identify its strengths and weaknesses?

Internal Analysis

Strategies focusing on market development, product development, innovation, or joint ventures make up the _____ strategy of an organization.

Internal growth

Challenge of downsizing?

It is difficult to boost the morale of employees who remain after downsizing

Which of the following addresses which tasks should be grouped into a particular job?

Job design

A company where employees are in a constant state of assimilating knowledge through monitoring the environment, making decisions, and flexibly restructuring the company to compete in that environment is known as a _____ organization.

Learning

Jonathan retired from a large, multinational automobile company last year. He receives health care benefits as well as a pension from the company. At present, Jonathan falls under the category of a

Legacy workforce

Which of the following is a statement that contains information on the customers that will be served, the needs that will be satisfied, and the technology that will be used by the company?

Mission

n _____, a firm's strategic business planning function develops the strategic plan and then informs the human resource management function of the plan.

One-way linkage

Which of the following activities entails specifying those activities and outcomes that will result in the organization successfully implementing the strategy?

Performance management

_____ is what is left after a firm pays its variable costs and fixed costs.

Profit

___is the process through which an organization seeks applicants for potential employment.

Recruitment

External analysis and internal analysis combined constitute the _____.

SWOT analysis

The process by which a firm attempts to identify job applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the firm achieve its goals is known as _____.

Selection

Which of the following describes the ways an organization will attempt to fulfill its mission and achieve its long-term goals?

Strategic Choice

When an organization develops integrated manufacturing systems such as advanced manufacturing technology and just-in-time inventory control, it needs to assess the employee skills required to run these systems and train them accordingly. These assessments and training programs intended to enable an organization to achieve its goals fall under

Strategic human resource management

_____ is a process that primarily addresses the competitive challenges an organization faces.

Strategic management

The _____ component of the strategic management process consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals.

Strategy Implementation

During _____, the strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

Strategy formulation

Mission, goals, external analysis, internal analysis, and strategic choices are the five major components of the _____ process.

Strategy formulation

Which of the following is a physical resource that a company uses to compete with other companies?

Technology

Which of the following statements is true of variable costs incurred by firms?

These costs change directly with the units produced.

_____ is a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

Training

1. Employees in companies with a differentiation strategy need to have only a moderate concern for quantity.

True

A learning organization constantly monitors its environment, assimilates information, makes decisions, and flexibly restructures itself to compete in an ever-changing environment.

True

By tying pay to performance, a company can elicit specific activities and levels of performance from employees.

True

Companies going through downsizing often develop compensation programs that tie an individual's compensation to the company's success.

True

Companies using concentration strategies attempt to focus on what they do best within their established markets.

True

Downsizing gives an organization the opportunity to change its culture

True

External analysis attempts to identify an organization's strategic opportunities and threats.

True

Job design addresses what tasks should be grouped into a particular job.

True

Strategic choice describes the way an organization attempts to fulfill its mission and achieve its long-term goals.

True

Strategy implementation includes structuring an organization and allocating resources.

True

The goal of strategic management in an organization is to deploy and allocate resources in a way that it provides the company with a competitive advantage.

True

Training is a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

True

SWOT analysis gives

strategic planning team of an organization all the information it needs to generate a number of strategic alternatives.