MGT 3320 LSU Doreen Matthes Exam 1
Study Guide Questions and Answers
What is strategic management? - ANSWER-The process for analyzing a company's
competitive situation, developing the company's strategic goals, and devising a plan
of action and allocation of resources (organizational, human, and physical) that will
help a company achieve its goals
How do labor costs influence profitability? - ANSWER-Higher labor costs (higher
wage rates and employee benefits) make workers better off, but they can reduce
companies' profits, the number of jobs, and the hours each person works. Overtime
pay, hiring subsidies, the minimum wage, and payroll taxes are just a few of the
policies that affect labor costs.
Give examples for labor costs that are fixed costs vs. variable costs - ANSWER-fixed
cost ex from textbook: if you are producing widgets in a factory, you have the rent
you pay for the factory, depreciation of the machines, the utilities, the property taxes,
and so on. In addition, you generally have a set number of employees who work a
set number of hours with a specified level of benefits, and although you might be
able to vary these over time, on a regular basis you pay the same total labor costs
whether your factory runs at 70% capacity or 95% capacity
variable cost ex from textbook: all of the materials that go into the widget might cost
a total of $10, which means that you have to charge at least $10 per widget, or you
cannot even cover the variable costs of production.
What is the strategic management process and what is HRM's role in it? - ANSWER-
all of the materials that go into the widget might cost a total of $10, which means that
you have to charge at least $10 per widget, or you cannot even cover the variable
costs of production
Strategic HRM is a pattern of planned human resource deployments and activities
intended to enable an organization to achieve its goals
Strategy formulation - ANSWER-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 implementation - ANSWER-The organization follows through on the
strategy that has been chosen. This includes structuring the organization, allocating
resources, ensuring that the firm has skilled employees in place, and developing
reward systems that align employee behavior with the strategic goals. This process
entails a constant cycling of information and decision making.
, How can HRM and the strategic management process be linked? - ANSWER-The
strategic management process must consider people-related issues. Thus, in order
to be successful, the process must involve the HRM function.
4 levels on integration:
1. one way linkage
2. two way linkage
3. integrative linkage
4. administrative linkage
One-way linkage - ANSWER-the firm's strategic business planning function develops
the strategic plan then informs the HRM function of the plan.
Although one-way linkage does recognize the importance of HR in implementing the
strategic plan, it precludes the company from considering HR issues while
formulating the strategic plan. This level of integration often leads to strategic plans
that the company cannot successfully implement.
two-way linkage - ANSWER-allows for consideration of HR issues during the
strategy formulation process
What are the general strategic types and required role behaviors? - ANSWER-1.
cost strategy
2. differentiation strategy
cost strategy - ANSWER-companies define the skills they require for efficient
production and invest in training employees in these skill areas
Differentiation strategy - ANSWER-employees are expected to exhibit role behaviors
that include cooperating with others, developing new ideas, and taking a balanced
approach to process and results
What are the different directional strategies?
(Associated HR issues and activities) - ANSWER-1. concentrations
2. internal growth
3. mergers and acquisitions (external growth)
4. downsizing
Concentration Strategy - ANSWER-A strategy focusing on increasing market share,
reducing costs, or creating and maintaining a market niche for products and
services. Essentially, the company focuses on doing what it does best, competing
within a single industry and trying to grow its market penetration. Talent retention is
very important in this type of strategy.
Internal Growth Strategy - ANSWER-A focus on new market and product
development, innovation, and joint ventures. Growth is accomplished through the
use of internal resources. Internal growth requires knowledge improvement, which
has indications for staffing, training and development.
Study Guide Questions and Answers
What is strategic management? - ANSWER-The process for analyzing a company's
competitive situation, developing the company's strategic goals, and devising a plan
of action and allocation of resources (organizational, human, and physical) that will
help a company achieve its goals
How do labor costs influence profitability? - ANSWER-Higher labor costs (higher
wage rates and employee benefits) make workers better off, but they can reduce
companies' profits, the number of jobs, and the hours each person works. Overtime
pay, hiring subsidies, the minimum wage, and payroll taxes are just a few of the
policies that affect labor costs.
Give examples for labor costs that are fixed costs vs. variable costs - ANSWER-fixed
cost ex from textbook: if you are producing widgets in a factory, you have the rent
you pay for the factory, depreciation of the machines, the utilities, the property taxes,
and so on. In addition, you generally have a set number of employees who work a
set number of hours with a specified level of benefits, and although you might be
able to vary these over time, on a regular basis you pay the same total labor costs
whether your factory runs at 70% capacity or 95% capacity
variable cost ex from textbook: all of the materials that go into the widget might cost
a total of $10, which means that you have to charge at least $10 per widget, or you
cannot even cover the variable costs of production.
What is the strategic management process and what is HRM's role in it? - ANSWER-
all of the materials that go into the widget might cost a total of $10, which means that
you have to charge at least $10 per widget, or you cannot even cover the variable
costs of production
Strategic HRM is a pattern of planned human resource deployments and activities
intended to enable an organization to achieve its goals
Strategy formulation - ANSWER-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 implementation - ANSWER-The organization follows through on the
strategy that has been chosen. This includes structuring the organization, allocating
resources, ensuring that the firm has skilled employees in place, and developing
reward systems that align employee behavior with the strategic goals. This process
entails a constant cycling of information and decision making.
, How can HRM and the strategic management process be linked? - ANSWER-The
strategic management process must consider people-related issues. Thus, in order
to be successful, the process must involve the HRM function.
4 levels on integration:
1. one way linkage
2. two way linkage
3. integrative linkage
4. administrative linkage
One-way linkage - ANSWER-the firm's strategic business planning function develops
the strategic plan then informs the HRM function of the plan.
Although one-way linkage does recognize the importance of HR in implementing the
strategic plan, it precludes the company from considering HR issues while
formulating the strategic plan. This level of integration often leads to strategic plans
that the company cannot successfully implement.
two-way linkage - ANSWER-allows for consideration of HR issues during the
strategy formulation process
What are the general strategic types and required role behaviors? - ANSWER-1.
cost strategy
2. differentiation strategy
cost strategy - ANSWER-companies define the skills they require for efficient
production and invest in training employees in these skill areas
Differentiation strategy - ANSWER-employees are expected to exhibit role behaviors
that include cooperating with others, developing new ideas, and taking a balanced
approach to process and results
What are the different directional strategies?
(Associated HR issues and activities) - ANSWER-1. concentrations
2. internal growth
3. mergers and acquisitions (external growth)
4. downsizing
Concentration Strategy - ANSWER-A strategy focusing on increasing market share,
reducing costs, or creating and maintaining a market niche for products and
services. Essentially, the company focuses on doing what it does best, competing
within a single industry and trying to grow its market penetration. Talent retention is
very important in this type of strategy.
Internal Growth Strategy - ANSWER-A focus on new market and product
development, innovation, and joint ventures. Growth is accomplished through the
use of internal resources. Internal growth requires knowledge improvement, which
has indications for staffing, training and development.
