HRM 301 TEST 1 QUESTIONS AND ANSWERS
3 Components of a healthy organization - Answer -Culture
Attitude
Partnership
Culture - Answer -Underlying beliefs, values, and assumptions
Paradigms - Answer -A set of values, concepts and practices that constitutes a view of
reality for the community that shares them
Paradigm Shift - Answer -A complete change in thinking or belief systems that allows
the creation of a new condition previously thought impossible or unacceptable
Paradigm Paralysis - Answer -The effect on a company when strict rules and guidelines
often based on models that worked in the past, restrict the growth and flexibility
necessary to thrive.
Strategy - Answer -the formulation of organizational missions, goals, objectives and
action plans for achievement that explicitly recognize the competition and the impact of
outside environmental forces
Mintzberg's FIVE Ps of Understanding Strategy - Answer -Plan
Purpose
Ploy
Position
Perspective
Intended Strategy - Answer -the agreed upon strategy arrived at through the formal
planning process
Emergent Strategy - Answer -created from new ideas and conditions
Discarded Strategy - Answer -deemed inappropriate due to changing circumstances
Realized Strategy - Answer -the implemented plan - what actually happened
Corporate Strategy - Answer -organizational-level decisions that focus on long-term
survival
Restructuring - includes turnaround, divestiture, liquidation, and bankruptcies
Growth - includes incremental, international, and mergers and acquisitions
Stability - maintains status quo
Business Strategy - Answer -plans to build a competitive focus in one line of business
,The Strategic Planning Process - Answer -1. Establish the mission, vision, and values.
2. Develop objectives.
3. Analyze the external environment.
4. Determine the competitive position.
5. Identify the competitive advantage.
6. Implement the strategy.
7. Evaluate the performance.
Purpose of Value Statement - Answer -1. Conveys a sense of identity for employees
2. Generates employee commitment to something greater than themselves
3. Adds to the stability of the organization as a social system
4. Serves as a frame of reference for employees to use to make sense of organizational
activities and to use as a guide for appropriate behaviour
Porter's Model of Competitive Strategies - Answer -1. Low-cost provider strategy
2. Broad differentiation strategy
3. Best-cost provider strategy
4. Focused or market niche strategy based on lower cost
5. Focused or market niche strategy based on differentiation
Competitive Advantage - Answer -The characteristics of a firm that enable it to earn
higher rates of profits than its competitors by utilizing its resources including:
Tangible assets - the organizational assets that have substance and can be consumed
Intangible assets - the organizational assets that are not concrete, such as reputation,
goodwill
Capabilities - the collective skills, abilities and expertise of an organization
Benefits of Strategy Formulation - Answer -Clarity
Coordination
Efficiency
Incentives
Change
Career Development
What can happen if an organization fails to align HR initiatives with corporate strategy? -
Answer -You won't get the things you want to get done, done. (Everyone is working
towards different goals)
Miss opportunities with collaboration for positive change with management
May lose employees if there isn't any strategy
Focus on the wrong things
Resource-based View - Answer -This theory suggests that the management of
resources and capabilities will lead to competitive advantage resulting in superior
performance and value creation.
, Typical resources might include: - Answer -Human resources
Proprietary knowledge
Reputation
Typical capabilities might include: - Answer -Adaptability
Flexibility
Speed of bringing new products to market
The Behavioural Perspective - Answer -This theory suggests that different HR
strategies are required to influence the diverse behaviours of employees.
HR's role is to reinforce certain behaviours via the HR practices such as recruitment,
selection, training, compensation, and performance
Human Capital - Answer -The sum of employees' knowledge, skills, experience, and
commitment invested in the organization
Human Capital Theory - Answer -Classical economists view the firm as having control
over three types of resources in the production of goods and services including:
1. Land
2. Labour (or Human Capital)
3. Capital
Human Capital Theory also includes: - Answer -knowledge,
education,
vocational qualifications,
professional certifications,
work-related experience, and
competence of an organization's employees
There are 2 main reasons strategic planning is so important - Answer -1. employees
help an organization achieve success because they are its strategic resources
2. the planning process itself results in improved goal attainment
Is there a downside to strategic HR Planning? - Answer -Time and energy in making
decisions
Information overload potential
Impossible commitments to employees
Over-concern with employee reactions
Potential job losses
Myopia developed from commitment to one strategy
Inability to see and adapt to changes developing in environment
Aligning HR strategy with business strategy can be done in one of these ways: -
Answer -- Start with organizational strategy and then create HR strategy
3 Components of a healthy organization - Answer -Culture
Attitude
Partnership
Culture - Answer -Underlying beliefs, values, and assumptions
Paradigms - Answer -A set of values, concepts and practices that constitutes a view of
reality for the community that shares them
Paradigm Shift - Answer -A complete change in thinking or belief systems that allows
the creation of a new condition previously thought impossible or unacceptable
Paradigm Paralysis - Answer -The effect on a company when strict rules and guidelines
often based on models that worked in the past, restrict the growth and flexibility
necessary to thrive.
Strategy - Answer -the formulation of organizational missions, goals, objectives and
action plans for achievement that explicitly recognize the competition and the impact of
outside environmental forces
Mintzberg's FIVE Ps of Understanding Strategy - Answer -Plan
Purpose
Ploy
Position
Perspective
Intended Strategy - Answer -the agreed upon strategy arrived at through the formal
planning process
Emergent Strategy - Answer -created from new ideas and conditions
Discarded Strategy - Answer -deemed inappropriate due to changing circumstances
Realized Strategy - Answer -the implemented plan - what actually happened
Corporate Strategy - Answer -organizational-level decisions that focus on long-term
survival
Restructuring - includes turnaround, divestiture, liquidation, and bankruptcies
Growth - includes incremental, international, and mergers and acquisitions
Stability - maintains status quo
Business Strategy - Answer -plans to build a competitive focus in one line of business
,The Strategic Planning Process - Answer -1. Establish the mission, vision, and values.
2. Develop objectives.
3. Analyze the external environment.
4. Determine the competitive position.
5. Identify the competitive advantage.
6. Implement the strategy.
7. Evaluate the performance.
Purpose of Value Statement - Answer -1. Conveys a sense of identity for employees
2. Generates employee commitment to something greater than themselves
3. Adds to the stability of the organization as a social system
4. Serves as a frame of reference for employees to use to make sense of organizational
activities and to use as a guide for appropriate behaviour
Porter's Model of Competitive Strategies - Answer -1. Low-cost provider strategy
2. Broad differentiation strategy
3. Best-cost provider strategy
4. Focused or market niche strategy based on lower cost
5. Focused or market niche strategy based on differentiation
Competitive Advantage - Answer -The characteristics of a firm that enable it to earn
higher rates of profits than its competitors by utilizing its resources including:
Tangible assets - the organizational assets that have substance and can be consumed
Intangible assets - the organizational assets that are not concrete, such as reputation,
goodwill
Capabilities - the collective skills, abilities and expertise of an organization
Benefits of Strategy Formulation - Answer -Clarity
Coordination
Efficiency
Incentives
Change
Career Development
What can happen if an organization fails to align HR initiatives with corporate strategy? -
Answer -You won't get the things you want to get done, done. (Everyone is working
towards different goals)
Miss opportunities with collaboration for positive change with management
May lose employees if there isn't any strategy
Focus on the wrong things
Resource-based View - Answer -This theory suggests that the management of
resources and capabilities will lead to competitive advantage resulting in superior
performance and value creation.
, Typical resources might include: - Answer -Human resources
Proprietary knowledge
Reputation
Typical capabilities might include: - Answer -Adaptability
Flexibility
Speed of bringing new products to market
The Behavioural Perspective - Answer -This theory suggests that different HR
strategies are required to influence the diverse behaviours of employees.
HR's role is to reinforce certain behaviours via the HR practices such as recruitment,
selection, training, compensation, and performance
Human Capital - Answer -The sum of employees' knowledge, skills, experience, and
commitment invested in the organization
Human Capital Theory - Answer -Classical economists view the firm as having control
over three types of resources in the production of goods and services including:
1. Land
2. Labour (or Human Capital)
3. Capital
Human Capital Theory also includes: - Answer -knowledge,
education,
vocational qualifications,
professional certifications,
work-related experience, and
competence of an organization's employees
There are 2 main reasons strategic planning is so important - Answer -1. employees
help an organization achieve success because they are its strategic resources
2. the planning process itself results in improved goal attainment
Is there a downside to strategic HR Planning? - Answer -Time and energy in making
decisions
Information overload potential
Impossible commitments to employees
Over-concern with employee reactions
Potential job losses
Myopia developed from commitment to one strategy
Inability to see and adapt to changes developing in environment
Aligning HR strategy with business strategy can be done in one of these ways: -
Answer -- Start with organizational strategy and then create HR strategy
