UARK - MGMT 2103 Exam 1
Porter's Strategy Typology Correct Answer: competitive advantage results from creating value in one of
2 ways
-low cost strategy
-differentiation strategy
Low Cost Strategy Correct Answer: create value by reducing cost and charging less than competitors
(Walmart)
Differentiation Strategy Correct Answer: create value by convincing the market that your
product/service is different from competitors and charging a premium
Core Capabilities Correct Answer: the strategic resources leveraged to achieve strategic objectives: "a
harmonized combination of multiple resources and skills that distinguish a firm in the marketplace"
-valuable, rare and difficult to imitate by competitors
Core Capabilities to Become Sources of Sustained Competitive Advantage Correct Answer: -firm specific
skills vs general skills
-teams vs individuals
-entire system of HRM practices vs. individual practices
2 Demensions of Human Capital Correct Answer: -Value of Human Capital
-Uniqueness of Human Capital
Value of Human Capital Correct Answer: "potential to contribute to...human capital"
Uniqueness of Human Capital Correct Answer: are the skills and knowledge needed to perform firm-
specific or general?
4 Types of Human Capital Workers Correct Answer: 1. Strategic Knowledge Workers
2. Supporting Labor
3. Core Employees
4. Collaboration/Complementary/Alliance Partners
Strategic Knowledge Workers Correct Answer: employees have unique skills that are directly linked to
the company's strategy
-ex: top management
Supporting Labor Correct Answer: employees whose skills are of less strategic value and generally
available in the labor market
-ex: clerical workers
, Core Employees Correct Answer: employees with skills to perform a predefined job that are quite
valuable to a company, but not particularly unique or difficult to replace
-ex: sales people
Collaboration/Complementary/Alliance Partners Correct Answer: individuals and groups with unique
skills, but those skills are not directly related to a companies core strategy
-ex: consultants
Workers in the Human Capital Architecture Square Correct Answer: -*Strategic Knowledge Worker*
=high uniqueness/ strategic value, internalization, relational
-*Collab. Partners* = high uniqueness, low strategic value, externalization, relational
-*Supporting Worker* = low uniqueness/strategic, externalization, transactional
-*Core Worker* = low uniqueness, high strategic, internalization, transactional
2 Generic HR Strategies Correct Answer: -Control
-Commitment
Control Correct Answer: a specific combination of HR practices, work structures, processes that
minimizes employee knowledge and skill requirements and seeks to limit the variability of performance
across people
Commitment Correct Answer: focus on developing a workforce that identifies with the firm, enhances
attachment
Principles of a Control Oriented Work System of the 2 Generic HR Strategies Correct Answer: -
Egalitarianism/Engagement
-Knowledge Development
-Shared Information
-Performance-Reward Linkage
Egalitarianism/Engagement (HR Strategies) Correct Answer: very little employee influence over
"management" decisions, no formal employee complaint and grievances management, intense
supervision/control
Knowledge Development (HR Strategies) Correct Answer: low skill requirements, limited training
efforts, job tasks narrowly defined or standardized
Shared Information (HR Strategies) Correct Answer: little communication/socialization efforts, very little
performance information shared, very little strategic info shared
Performance-Reward Linkage (HR Strategies) Correct Answer: limited benefits, relatively low wages,
may have incentive based individual rewards
Porter's Strategy Typology Correct Answer: competitive advantage results from creating value in one of
2 ways
-low cost strategy
-differentiation strategy
Low Cost Strategy Correct Answer: create value by reducing cost and charging less than competitors
(Walmart)
Differentiation Strategy Correct Answer: create value by convincing the market that your
product/service is different from competitors and charging a premium
Core Capabilities Correct Answer: the strategic resources leveraged to achieve strategic objectives: "a
harmonized combination of multiple resources and skills that distinguish a firm in the marketplace"
-valuable, rare and difficult to imitate by competitors
Core Capabilities to Become Sources of Sustained Competitive Advantage Correct Answer: -firm specific
skills vs general skills
-teams vs individuals
-entire system of HRM practices vs. individual practices
2 Demensions of Human Capital Correct Answer: -Value of Human Capital
-Uniqueness of Human Capital
Value of Human Capital Correct Answer: "potential to contribute to...human capital"
Uniqueness of Human Capital Correct Answer: are the skills and knowledge needed to perform firm-
specific or general?
4 Types of Human Capital Workers Correct Answer: 1. Strategic Knowledge Workers
2. Supporting Labor
3. Core Employees
4. Collaboration/Complementary/Alliance Partners
Strategic Knowledge Workers Correct Answer: employees have unique skills that are directly linked to
the company's strategy
-ex: top management
Supporting Labor Correct Answer: employees whose skills are of less strategic value and generally
available in the labor market
-ex: clerical workers
, Core Employees Correct Answer: employees with skills to perform a predefined job that are quite
valuable to a company, but not particularly unique or difficult to replace
-ex: sales people
Collaboration/Complementary/Alliance Partners Correct Answer: individuals and groups with unique
skills, but those skills are not directly related to a companies core strategy
-ex: consultants
Workers in the Human Capital Architecture Square Correct Answer: -*Strategic Knowledge Worker*
=high uniqueness/ strategic value, internalization, relational
-*Collab. Partners* = high uniqueness, low strategic value, externalization, relational
-*Supporting Worker* = low uniqueness/strategic, externalization, transactional
-*Core Worker* = low uniqueness, high strategic, internalization, transactional
2 Generic HR Strategies Correct Answer: -Control
-Commitment
Control Correct Answer: a specific combination of HR practices, work structures, processes that
minimizes employee knowledge and skill requirements and seeks to limit the variability of performance
across people
Commitment Correct Answer: focus on developing a workforce that identifies with the firm, enhances
attachment
Principles of a Control Oriented Work System of the 2 Generic HR Strategies Correct Answer: -
Egalitarianism/Engagement
-Knowledge Development
-Shared Information
-Performance-Reward Linkage
Egalitarianism/Engagement (HR Strategies) Correct Answer: very little employee influence over
"management" decisions, no formal employee complaint and grievances management, intense
supervision/control
Knowledge Development (HR Strategies) Correct Answer: low skill requirements, limited training
efforts, job tasks narrowly defined or standardized
Shared Information (HR Strategies) Correct Answer: little communication/socialization efforts, very little
performance information shared, very little strategic info shared
Performance-Reward Linkage (HR Strategies) Correct Answer: limited benefits, relatively low wages,
may have incentive based individual rewards
