Archives: Quiz

An advantage of internal development is that firms do not have to combine activities across the value chains of many companies and merge company cultures. Products and services that are difficult to imitate help firms sustain their profitability. Answer: TRUE […]

Some excellent examples of mission statements are: To be the happiest place on earth (Disneyland) and Restoring patients to full life (Medtronic). Research has shown that executives who have large holdings of stock in their firm were more likely to […]

Forbearance is a particularly aggressive type of competitive attack. The primary participants in corporate governance, according to Monks and Minow, are the shareholders, board of directors, and employees. Answer: FALSE Robert Monks and Nell Minow, two leading scholars in corporate […]

The trend towards worldwide markets makes it easier to predict where competitors will spring up. First movers in an industry often capture above-average profits, but usually find it difficult to maintain early market share gains. Answer: FALSE First movers have […]

Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize the downside risk of a project. The difference between the market value and book value of a firm is its […]

In integrity-based ethics programs, organizational ethics is seen as the responsibility of the employees. When the U.S. currency appreciates against other currencies, it becomes more expensive for American companies that have branch operations overseas, when they declare foreign profits in […]

The Millennial generation expects employers to provide incentives to attract and retain them. A company that does this will have a competitive advantage. The power of suppliers will be enhanced if they are able to maintain a credible threat of […]

Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information. From the individual perspective, social networks deliver three unique advantages: private information, access to diverse skill sets, and power. Answer: […]

Systemic barriers to change refer to elements of organization design, structure, and reporting relationships that impede the flow of information. Managing virtual structures requires new and difficult-to-acquire managerial skills. Answer: TRUE One of the negatives associated with the virtual organization […]

A strategy of related diversification requires a need to reorganize around product lines and geographic markets. This leads to a divisional structure. According to the transaction cost perspective in analyzing vertical integration, every market transaction involves some transaction cost. Answer: […]

Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control. Focus, by itself, often constitutes a competitive advantage. Answer: FALSE A focus strategy is based on the choice of a narrow competitive scope […]

With unrelated diversification, potential benefits can be gained from vertical or hierarchical relationships; that is, the creation of synergies from the interaction of the corporate office with outside stakeholders. Competitive benchmarking is a method of seeking the best examples of […]

The risk of being acquired by hostile raiders is often referred to as the takeover constraint. Countries with a strong supplier base benefit by adding efficiency to downstream activities. Answer: TRUE Related and supporting industries enable firms to manage inputs […]

As markets mature the magnitude of differentiation and cost leadership advantages among competitors decrease. Leaders are not expected to accept personal responsibility for ethical behavior in an organization, because ethics is a matter of individual choice. Answer: FALSE Managers and […]

One of the criteria for a core competence is that the different businesses in the corporation must be similar in at least one important way related to the core competence. Founders using a pioneering new entry strategy look for opportunities […]

To successfully empower employees to achieve organizational goals, leaders must perform the tasks of resource allocation and power brokering. Product innovations are commonly associated with a differentiation strategy. Answer: TRUE Product innovations tend to be more common during the earlier […]

In technology intensive industries, the duration of competitive advantages is declining. Within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global. Answer: TRUE All firms must balance the need to lower costs (where highly standardized […]

The Sarbanes-Oxley Act of 2002 stipulates that executives of a firm will still be able to sell their shares in the firm when other employees cannot. The success of an adaptive new entrant can be limited, if the value proposition […]

Emotional intelligence (EI) is generally a better predictor of life success than intelligence quotient (IQ). According to the textbook, strategic management does not consist of the analyses that an organization undertakes in order to create and sustain competitive advantages. Answer: […]

Procter and Gamble used communities of practice and human resource practices to help it achieve effective collaboration and integration across its different business units. This effort resulted in the successful development of the Crest Whitestrips product and is an example […]

A firm can attain an overall cost leadership position by using automated technology to reduce scrappage rates. Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved […]

Knowledge workers are more loyal to their companies than traditional workers. Even with all of the advances in recent years, forecasting is typically considered more of an art than a science and it is of little use in generating accurate […]

Entrepreneurial firms are often in a strong position to use combination strategies, because they have the flexibility to approach situations uniquely. In a global strategy a firm operates all of its businesses under a single common strategy, regardless of location. […]

Lower correlations indicate stronger validity. The job title should be the determinative factor when deciding whether jobs are substantially equal. Answer: False Answer: False

In the event that a union is not accepted, another certification election can be held within 12 months. In the tax protection approach, firms withhold taxes based on the home-country tax obligation and pay all taxes in the host country. […]

Internal recruitment stifles upward movement of personnel. An employer can terminate an employee for engaging in activities that are deemed to be beneficial to the public welfare. Answer: False In general, pay for performance systems are more effective when specific […]

The following are examples of current HR trends. 1) Increased globalization of the economy 2) Technological changes 3) Decreased litigation 4) Stagnation in the labor force The intent of miniarbitration is to expedite a decision after an appeal is made. […]

Primary boycott refers to the union trying to induce third parties, such as suppliers and customers, to refrain from any business dealings with an employer with whom it has a dispute. In civil law, negligence must be established through litigation […]

A pay for performance plan negates the need to manage an employee’s performance. The manager need only focus on the distribution of rewards in order to generate appropriate employee behaviors. Distributive justice results from a perception of fair rules, laws, […]

Technological innovations, lower costs associated with skilled labor, and direct access to growing markets are all putting pressure on companies to decrease global expansion. Broadbanding can increase worker productivity and product quality, while decreasing absenteeism, turnover, and accident rates. Answer: […]

While making data driven decisions is important in other areas of HRM, decisions related to HR planning and recruitment are most effective using more subjective, intuitive methods. In general public sector employees have more bargaining power than private sector employees. […]

All claims of discrimination under CRA, ADEA, and ADA need be filed with the EEOC either directly or through dual filing with a state agency. The UNCTAD index is based on a composite of two ratios: foreign assets to total […]

The goal of the assessment phase is to examine whether the training program has been effective in meeting the stated objectives. Providing training for managers is a means to reduce bias in performance appraisals. Answer: True Job Compatibility Questionnaire (JCQ) […]

One of the guidelines for writing a handbook is that the written policies must conform to local, state, and federal laws. In Sexual Harassment cases, a company needs to ensure that they are protecting the rights of the accused in […]

HRM includes Administrative Service and transactional work in addition to developing strategic HR initiatives in response to business issues. A company can establish a BFOQ for a position and legally defend that job qualification by presenting evidence of customer preference […]

Job specifications define the job in terms of its content and scope. The E-learning Readiness self-Assessment tool provides a quick and comprehensive analysis of preparedness for success in an online training program. Answer: True The public policy exception, which is […]

The flaw with a bonus incentive system is that due to the repetition of payments, it can be difficult to manage from a budgetary perspective. Smaller businesses are more likely to use formal approaches for conducting job analyses. Answer: False […]

Know-how, problem solving, and accountability are the three major factors within the Hay plan. The impact of the job on end results is one of the sub factors of know-how. The two major principles that describe the competitive advantage that […]

Merit pay plans are also known as piece-rate systems. Because the cost of labor is so high relative to other operating expenses, containing this cost can have a large impact on a company’s ability to compete on price. Answer: True […]

The metrics challenge ascertains whether managers have the access, capability, and motivation to use the measurement data to communicate strategy and monitor progress. Organizations utilizing hiring freeze and early retirement packages could be left with fewer vacancies in key areas […]

Permanent part-time work is an innovative work arrangement that allows employees to work fewer days during the week, with longer hours per day. Weighted application blanks use qualitative data to help make decisions regarding the likelihood that an applicant’s response […]

Management contract is a special form of licensing. The three major steps involved in the basic process of training are assessment, development, and evaluation. Answer: True HR planning is a task that is accomplished without regard or connection to the […]

Workforce interdependence is one of the factors to be considered in designing a gain sharing program. Competitive advantage occurs if customers perceive that they receive more value from their transaction with an organization than from its competitors. Answer: True Graphic […]

Taking on challenging assignments is linked to likelihood of promotion above measures of current performance on the job. Retaliation is a special form of disparate impact. Answer: False According to equity theory, pay satisfaction is a function of the comparisons […]

If the result of your GAP analysis indicates that demand is greater than supply, a solution could be increasing the use of overtime and temporary employees. Unlike the U.S., in Europe, more than one union, may represent the same workers. […]

The future of unionization in the U.S. is positive, especially with legislative and political forces in favor of unions. EAPS are a complimentary to drug testing programs, providing for voluntary treatment of employees who test positive during random drug testing, […]

One of the six steps for creating a workforce scorecard is to develop supporting HR management and measurement systems. The three major types of group-based incentive plans, profit sharing, gain sharing, and employee stock option plans, are all designed to […]

Increasing globalization of the economy and a growing competitive work environment with a premium on product and service quality is one of the trends enhancing the importance of HRM. Training refers to learning opportunities designed to help employees grow. Answer: […]

Employment-at-will exists even when there is either a contract (implied or explicit) or a collective bargaining agreement or the employee works for a public agency. The benefits paid when an employee has lost work is typically about one-third of the […]

The Fisher test can be used to ascertain the relationship between two categorical variables and two levels. CIT as a method used for job analysis, is a good source of data to develop performance appraisal instruments. Answer: True An applicant […]