Archives: Quiz

Once you have a properly designed training program, motivation is not an issue. Safety posters may increase safe behavior at work by more than 20%. Answer: TRUE To prove sexual harassment, it is necessary to show that the harassment had […]

The American Disabilities Act makes it illegal for employers to discriminate against women by providing benefits of a lower amount or duration for pregnancy, childbirth, or related medical conditions. Test validity answers the question, “Does this test measure what it’s […]

The biggest demographic threat affecting employers is retirees. The case study method aims, first, to give trainees realistic experience in identifying and analyzing complex problems in an environment wherein their discussion leader can subtly guide their progress. Answer: TRUE Nonpunitive […]

The interview is the most widely used personnel selection procedure. Formal learning provides the bulk of on the job learning. Answer: FALSE Learning objectives should address rectifying the performance deficiencies that you identified with needs analysis. Answer: TRUE Unions are […]

Some job descriptions have a ‘standards of performance” section. According to the Equal Pay Act, management must pay workers the same under all circumstances. Answer: FALSE An employer can avoid liability for discrimination by proving that it would have taken […]

The individual supervisor’s HRM related duties have not changed much in many years. Human resource managers are generally staff managers. Answer: TRUE A big question in an organization is whether to fill an opening from the inside or with an […]

Trend analysis assumes the productivity increases over time. Bullying at work is not a serious problem. Answer: FALSE Observation as a data collection method in a job analysis is most appropriate for jobs entailing a lot of mental activity. Answer: […]

A question on an employment application form that requests the dates of attendance and graduation from various schools may be illegal as it could reflect an applicant’s age. Observing work is a valid means of analyzing a job that has […]

Employers may provide employees pocket dictating machines and iPads to record activities at random times of the workday. In a drive to certify a union all five steps must be completed. Answer: FALSE Employers may be held liable for illegal […]

Although personality tests are used quite frequently, they are not reliable. The information gathered during a job analysis is used primarily for listing what the job entails and what kind of people to hire for the job. Answer: TRUE Human […]

OSHA claims that safety incentive programs do not cut down on accidents but only on injury reporting. Engagement refers to being psychologically involved in, connected to, and committed to getting one’s jobs done. Answer: TRUE The ultimate aim of managerial […]

Orientation refers to the methods used to give new or present employees the skills they need to perform their jobs. The EEOC receives and investigates job discrimination complaints from aggrieved individuals. Answer: TRUE A job analysis is a result of […]

About 99% of employers in the United States offer some form of health insurance coverage. What is ethical is always legal. Answer: FALSE Verbal conduct of a sexual nature cannot be called sexual harassment. Answer: FALSE Achievement tests measure what […]

Wrongful discharge occurs when an employee’s dismissal does not comply with the law or with the contractual agreement stated or implied by the firm via its employment application forms, employee manuals, or other promises. The forced distribution method is similar […]

Incidents of bullying involve repetition. A career is the occupational positions one holds at a single organization. Answer: FALSE The OSHA inspection is usually unannounced. Answer: TRUE Mediation guarantees a solution to any impasse that may occur during collective bargaining […]

Electronic performance monitoring seems to raise employee stress levels. In a controlled experiment, the researchers totally influence what is going to happen. Answer: FALSE Staff managers are always someone’s boss. Answer: FALSE When a job involves an equivalent amount of […]

Job classification is the simplest of the job evaluation methods. Interview panels that have racially balanced composition rated white applicants higher across all panel members. Answer: FALSE The Equal Pay Act of 1963 made it unlawful to discriminate against employees […]

Employee benefits account for about one-third of wages and salaries. Scanlon plans involve putting some portion of an employee’s weekly pay at risk for the opportunity to earn incentives if the employee meets or exceeds his or her goals. Answer: […]

There is presently a growing need for knowledge workers. One study conducted in three hotels concluded that pre-employment drug testing seemed to have little or no effect on workplace accidents. Answer: TRUE The forced distribution method is sometimes referred to […]

Key success factors are firm-specific and nontransferable. Making imitation by other companies difficult helps a company protect its advantage. Answer: True Market valuations of traditional firms are always linked to the firms’ corporate governance characteristics. Answer: False Answer: False

An individual with a high tolerance of ambiguity would be extremely uncomfortable in a situation with little information and a great deal of uncertainty. An alliance may involve sharing resources related to only one key activity in the partners’ value […]

Sometimes alliances are necessary in order to include a proportion of local contact in a product. For Lean manufacturing practices to work well in a firm, experts say that the organization’s culture must change in significant ways. Answer: True The […]

As production experience is gained, incremental production costs increase at a constant rate. A “dog” is a business that has a very strong competitive position, but is in a slow-growth industry. Answer: False The definition of public firm versus private […]

The entrepreneurial role focuses on both voluntary and proactive initiatives. The process of thinking through the steps of the business plan is probably more important than the business-plan document itself. Answer: True Aspects of strategy must be communicated to external […]

Lean manufacturing practices allow companies to decrease the speed of operations to a more normal pace. The external environment in which firms compete exerts a strong influence on firms’ profitability. Answer: True Acquisitions enable companies to accelerate their strategies. Answer: […]

Economies of scope and synergy are collectively referred to as revenue-enhancement opportunities. Strategy implementation results when a firm performs specific tasks that are required to achieve the goals and objectives described in the strategic plan. Answer: True Mission statements generally […]

A weak finance function is often a reflection of larger management problems. Firms that are purely domestic should focus only on events within the domestic borders. Answer: False General conditions of the macro environment can be characterized after PESTL analysis […]

Alliances are ineffective vehicles for creating new capabilities and markets. Industry analysis includes all of a firm’s key external stakeholders. Answer: False An industry that is dominated by a few large firms is called a monopoly. Answer: False Given a […]

The criterion of inimitability is satisfied if competitors cannot readily acquire the valuable and rare resource. The basic building blocks of a firm’s strategy are its resources and capabilities. Answer: True Capabilities in large-scale manufacturing and distribution generally favor low-cost […]

Performance gains from internationalization come at the early stages of internationalization. Domestic strategy reflects the choices a firm’s executives make with respect to sourcing and selling its goods in foreign markets. Answer: False Developing value-chain activities and configuring them so […]

Coevolution means that units owned by the same corporation are potentially both collaborators and competitors. Once a strategy is congruent with PESTEL in a firm’s home environment, it will be aligned in new geographic areas. Answer: False Revenue-enhancement opportunities are […]

Underlying problems can be discovered by assessing financial ratios such as operating liquidity and debt ratios. Vision and mission statements are statements of organizational identity and purpose that can guide executives in making corporate decisions. Answer: True Directors may be […]

Whenever a common resource can be used across more than one business unit, the company will always generate enhanced shareholder value. Board interlock occurs when a director sits on multiple boards. Answer: True As a result of the Sherman Antitrust […]

Technological change is particularly risky when it primarily affects business processes. Managers can integrate what they know about products or industry life cycles with the portfolio visualization tool. Answer: True Tradeoff protection involves trading actions between support and primary value-chain […]

The terms mergers and acquisitions are synonymous and may be used interchangeably Southwest Airlines operates at a significantly lower cost than its competitors. Answer: True Achieving high levels of local responsiveness will almost always lead to lower cost structure. Answer: […]

Confusion and ambiguity are potential drawbacks to the network structure. During an industry’s embryonic phase, capital needs may surpass resources and capabilities. Answer: True Large organizations often put too few resources into new ventures. Answer: False Firms with weak cultures […]

Decisions about which and how many people to employ hinge on the desire either to improve efficiency or generate new revenues. If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company […]

Alliances may fail because partners have overly formalized monitoring systems. Acquisitions are generally regarded as a means of managing competitive uncertainty. Answer: True In the majority of U.S. public firms, the CEO also serves as the chair of the board […]

Vertical alliances enable potential competitors to gain a presence in multiple segments of an industry. Moving “upstream” in an industry value chain will draw firms closer to the source of needed raw materials. Answer: True The resource-based inputs into the […]

In a truly global industry, competitive strategies are integrated in different international markets. A firm that is characterized by multimarket competition encounters the same competitors in many different markets. Answer: True Both supplier and buyer can benefit from gains in […]

A key premise is that all business environments are in a state of change. When the interests of principals and agents are in alignment, the agency problem is small. Answer: True Both the PESTEL and SWOT analyses help managers gain […]

The profit pool incorporates key complementary businesses near the point at which a firm is directly involved in customer transactions. Buyer power is shaped by product differentiation, bargaining leverage, and brand identity. Answer: True The speed of change is a […]

When industry profits fall below normal levels, competition usually decreases. The strategic leader emphasizes the efficient execution of a given plan. Answer: False If new technology is introduced by a new entrant, it stands a good chance to attain market […]

When a merger takes place, there is a transfer of ownership. A frequent flyer program is an example of a barrier to customer mobility. Answer: True Economic logic is the means by which a firm will earn a profit by […]

Technological integration is critical in most acquisitions because of the time value of money. The external perspective on competitive advantage is based on the assumption that differences in competitive advantage are a function of the uniqueness of the firm. Answer: […]

Undifferentiated resources are difficult to purchase through normal supply chain channels. The value curve is a convenient tool to help managers visualize how new disruptions might be targeted. Answer: True The two primary dimensions on which alliances can be categorized […]

Competitive tensions often cause one partner to acquire the other. If the combined resources and capabilities resulting from a merger or acquisition are complementary, the competitive advantage is usually short term in nature. Answer: False Misappropriation occurs when one partner […]

Portfolio planning was not initially intended to help managers achieve a balanced portfolio of large stable businesses. The source of Jet Blue’s low operating costs is its production technology. Answer: True Wal-Mart’s management of logistics signifies an important intangible resource. […]

A buyer group’s power is directly impacted by its prestige and the size of its orders. Stakeholder analysis is an important input into both strategy formulation and implementation. Answer: True The terms leadership and strategic leadership may be used interchangeably. […]

The disadvantages a firm faces by not being a local player can be cultural and/or political. In a product-expansion acquisition, one company buys another that offers essentially the same products but that has a presence in a geographic market in […]