Chapter 2

Question 1

to deploy and allocate resources in order to a gain a competitive advantage

Answer 1

Strategic HRM

Question 2

story how firm will create value for customers
how it will create value for customers profitbaly

Answer 2

2 part business model

Question 3

Fixed costs

Answer 3

never change despite the number of units produced

Question 4

Vary directly with the number of units produced

Answer 4

Variable costs

Question 5

Price of product minus it variable cost

Answer 5

margin

Question 6

Number of units sold times contribution margin

Answer 6

Gross margin

Question 7

Analyze a company’s competitive situation
Develop strategic goals
Devise a plan of action

Answer 7

SHRM

Question 8

Approach to addressing competitive challenges that organization face

Answer 8

shrm

Question 9

Hr manages the “pattern or plan that intergrates and organizations major goals, policies, and action sequence into a cohesive whole”

Answer 9

shrm

Question 10

Developing strategies for achieving company’s goals based on its current enviornment

Answer 10

shrm

Question 11

strategic planning groups decide on strategy

Answer 11

Strategy formulation

Question 12

Organization follows through on strategy

Answer 12

Strategy implementation

Question 13

Lowest level of interaction focusing on day-to-day activities

Answer 13

Administrative linkage

Question 14

Corporate leader decide and tell HR and don’t consider HR during planning

Answer 14

One-way linkage

Question 15

interdependence, so considers HR during strategic business planning

Answer 15

Two-way linkage

Question 16

HRM built into strategy formulation and implementation processes

Answer 16

Integrative linkage

Question 17

5 major components of Strategy Formulation
states organizations reason for being

Answer 17

mission

Question 18

5 major components of Strategy Formulation
what organization hopes to achieve

Answer 18

goals

Question 19

5 major components of Strategy Formulation
organizations operating environment

Answer 19

External analysis

Question 20

5 major components of Strategy Formulation
Identifies organizations strengths and weaknesses

Answer 20

Internal analysis

Question 21

5 major components of Strategy Formulation
the strategy ; describes the way organization will attempt to fulfill mission and achieve long-term goals

Answer 21

Strategic choice

Question 22

5 Variables Contributing to success or failure
what tasks lead to goal achievement? (HRM task)

Answer 22

Organizational structure

Question 23

5 Variables Contributing to success or failure
who possesses necessary skills to do these tasks well (HRM task)

Answer 23

selection, training, and development of people

Question 24

5 Variables Contributing to success or failure
How will we motivate those people to perform these tasks well (HRM task)

Answer 24

Reward systems

Question 25

5 Variables Contributing to success or failure information systems

Answer 25

types of informations

Question 26

a complex set of values, beliefs, assumptions, and symbols that define the way in which a firm conducts its business

Answer 26

Organizational culture

Question 27

A model that breaks up all of the different parts of the organization into a variety of capabilities

Answer 27

Value chain

Question 28

combination of people, systems, and processes that create value for customers

Answer 28

Capabilities

Question 29

occurs when HR practices and processes address strategic needs of the business

Answer 29

vertical alignment

Question 30

1. Job analysis 2.recruitment 3. selection systems 4. training and development 5. performance management systems 6. reward systems 7. labor relations programs

Answer 30

How Hr implements strategy

Question 31

The 6 HRM Practices 1. Process to get detailed information about a job Determines which tasks should be grouped into a particular job

Answer 31

Job analysis and Job design

Question 32

The 6 HRM Practices 2. Process of seeking applicant for potential employment process to identify which applicant have the necessary KSAs and other characteristics to help organizations to achieve its goals

Answer 32

Recruitment and selection

Question 33

The 6 HRM Practices 3. Planned effort in which organizations facilitate employee learning of job-related knowledge, skills, and behavior Employees acquire the knowledge, skills, and behaviors that improve their ability to meet challenges of jobs

Answer 33

Training and Development

Question 34

The 6 HRM Practices 4. Ensures employees activities and outcomes are congruent with the organizations objectives

Answer 34

Performance management

Question 35

The 6 HRM Practices 5. High pay and benefits relative to competitors can help company attract and retain high quality employees Tying pay to performance can elicit specific activities and levels of performance from employees

Answer 35

Pay structure, incentives, and benefits

Question 36

The 6 HRM Practices 6. Critical decisions that affect short term and long term goal achievement or extinction

Answer 36

Labor and employee relations

Question 37

Competitive advantage from creating value in the production process

Answer 37

Porters cost and differentiation strategies

Question 38

created value by reducing costs, creates average return by barring competitors entering the market 1. Efficient large scale facilities 2. Capitalizing on experience curve

Answer 38

Overall cost leadership strategy

Question 39

value created by differentiating a product or service in order to charge a premium price

Answer 39

differentiation strategy

Question 40

Ensures that employees have required behaviors in role as job holder in social work environment

Answer 40

HR's rol

Question 41

company defines the required skills and invest in training employees in these skills areas - internal promotions - internally consistent pay systems with high pay differentials between superiors and sub - efficiency achieved through employee participation

Answer 41

Role of employees in overall cost leadership strategy

Question 42

employees are highly creative and cooperative moderate concern for quantity

Answer 42

role of employees in differentation strategy

Question 43

4 directional (intended) strategies Emphasize market share or operating costs - increase market share/reduce cost -maintain skills - HRM: skill based training and fair compensation

Answer 43

Concentration

Question 44

4 directional (intended) strategies Focus on market and product development, innovation, joint ventures - Build on exisiting strengths

Answer 44

Internal Growth

Question 45

4 directional (intended) strategies focus on vertical or horizontal integration - buy what we need: expand resources or strengthen market position - HRM: implement challenges of merging or acquiring another company

Answer 45

External growth

Question 46

4 directional (intended) strategies Focus on retrenchment, divestitures, or liquidation - trying to survive: serious economic difficulties so must pare down operations - HRM: How to develop an ER of choice reputation and enage employees

Answer 46

Downsizing

Question 47

Tends to fall short of meeting financial and organizational objectives - Negative effect on employee morale

Answer 47

Disadvantages of downsizing

Question 48

Can "get rid of dead wood" -opportunity to change organizational culture -HRM GOAL: manage process and demonstrate its value in contributing to ultimate success

Answer 48

Advantages of down sizing

Question 49

1. Emergent Strategies 2. Enhancing Competitiveness

Answer 49

2 ways HR provides a strategic competitive advantage

Question 50

HR facilitates communication throughout organization = evolve from grassroots (from bottom-up)

Answer 50

Emergent Strategies

Question 51

Develop human capital pool that allows the company to adapt to ever-changing environment

Answer 51

Enhancing competitiveness

Question 52

Enhancing competitiveness a constant state of learning as employees continually expand their capacity to achieve desired results

Answer 52

Learning organization