Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 8: Human Resource Management in Corporate Innovation
Chapter 8 Outline
I. Introduction
a. An Organizational Innovation Characteristics Model
b. Environmental Antecedents for Innovation
II. Human Resource Management (HRM) and High Performance Work Systems (HPWS)
a. Performance Management
b. Knowledge Management
c. Compensation and Incentives Management
d. Policies and Procedures Administration
III. Entrepreneurial Orientation (EO)
a. Innovation
b. Risk Taking
c. Proactiveness
IV. Organizational Level Issues
V. Conclusion
VI. Key Terms
VII. Review and Discussion Questions
VIII. Endnotes
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 8 Exam Questions
True / False Questions
1. Corporate innovation occurs when the organization strives to exploit product-market
opportunities through innovative and proactive behavior.
2. Human resource practices that impact creativity, innovation, and entrepreneurship are categorized
as part of a high performance work system.
3. According to Lumpkin and Dess and entrepreneurial innovation can be defined as the willingness
to support creativity and experimentation in introducing new products/services.
4. The Ireland, Covin, and Kuratko believe that human resource practices do not play a major role in
the execution of an innovative strategy.
5. At the middle level, managers act in concert with others throughout the firm to identify effective
means through which new businesses can be created or existing ones reconfigured.
6. First-line managers are likely to be more cautious in how they choose to use top management
support for their innovative activities.
7. Senior managers are more likely to use work discretion to generate innovative outcomes.
8. Organizations who focus on policies that create freedom will limit innovative and entrepreneurial
behavior.
9. Senior managers are better able to use time as a resource to generate innovative activities than are
first-line managers.
10. Innovative actions are less likely to arise from scanning the external and internal environments
than focusing attention more narrowly on efficiency.
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 8 Exam Questions
Multiple Choice Questions
1. _______________ leads to an organizational entrepreneurial orientation causing increased
proactiveness, risk taking, and innovative behaviors.
A. Succession Planning
2. _________________focuses on smaller process improvements and changes and radical
innovation include major product or process changes or new product development
3. The result of effective organizational practices related to attending to the antecedents necessary to
implement a CE strategy and practicing relevant HRM for innovation.
4. Which level of managers endorse, refine, and shepherd entrepreneurial opportunities and identify,
acquire, and deploy resources needed to pursue those opportunities?
5. _____________refers to the extent to which one perceives that the organization tolerates failure,
provides decision-making latitude and freedom from excessive oversight, and delegates authority
D. Operational Instructions
6. _______________ are useful in promoting innovative activity because they enhance the flow of
information between the external environment and the organization and between
departments/divisions within the organization.
A. Adjustable Departmental Procedures
Corporate Innovation
Lecture Outlines and Exam Questions
7. The willingness of senior-level managers to facilitate and promote innovative behavior, including
the championing of innovative ideas and providing the resources people require to take
innovative actions.
A. Senior Management Guidance
8. _______________ require more substantial forms of incentives that are often more difficult to
administer and tend to foster apprehension from top management
9. Four of the key human resource practices that create a HPWS are performance management,
__________________, compensation and incentives management, and policies and procedures
administration.
10. Who concluded that “without innovation there is no corporate entrepreneurship regardless of the
presence of these other dimensions?
A. Lumpkin and Dess
Corporate Innovation
Lecture Outlines and Exam Questions
Chapter 8 Exam Questions
Essay Questions
Essay 1
Explain the four of the key human resource practices that create a HPWS.
Essay 2
According to Floyd and Lane, senior, middle, and first-level managers have distinct responsibilities with
respect to each sub-process. Describe these responsibilities.
Corporate Innovation
Lecture Outlines and Exam Questions
Essay 3
Hayton suggests that human resource management practices (HRM) fall into two categories, traditional
HR practices and discretionary HRM. Explain each.