Chapter 2 Quiz Flashcards
You recently transferred from a smaller manufacturing firm to a larger one and discovered that, although entirely different, both compensation systems are effective - how is this possible?
Both systems fit the organization and its strategy.
What can you determine by examining a firm’s contextual variables?
the type of STRUCTURE the organization should be using
Knowing which organization structure to use requires first understanding which of the following aspects?
CORPORATE STRATEGY (also known as a business strategy or competitive strategy)
A strategic framework is used as a tool to help determine which aspect of compensation?
The most effective compensation system
What can you determine by examining a firm’s structural variables?
the managerial strategy a firm is actually using
Which of the following is classified as a “main” managerial strategy?
The Human Relations Management Strategy
Assumes most employees inherently dislike work but can be induced to work in order to satisfy social needs (building a positive social environment where employees are treated as apart of a family - nurturing)
You are in the process of designing a new reward system for your firm. What is the most important single determinant of what will or will not be successful reward system for your firm?
A particular Managerial Strategy used
Which of the following variables indicates to management the most appropriate managerial strategy to use in an organization?
Contextual variables
What determines the contextual variables?
Organizational goals
You have recently been hired by a manufacturing company in Vancouver, BC. You conclude that the company is using a high-involvement management strategy. Which of the following variables would you review to support your aforementioned conclusion?
Structural Variables
Which of the following sets of strategies reflects different assumptions about employees and how they should be managed (managerial strategies)?
Classical, Human Relations and High-Involvement
Which of the following characteristics are common in a classical organization?
Strong Management control over employees
Which of the following rewards are normally associated with a HIGH-INVOLVEMENT managerial strategy?
Providing employees with the opportunity to grow professionally
Which reward strategy is appropriate for companies using a human relations approach to management?
Rewards are mainly extrinsic and focus on loyalty to the organization
Richard, a new employee, is told by a more experienced employee to do only the minimum and not attempt to be a “superstar”. What is Richard experiencing?
Company culture
Which of the following key cultural values would be detrimental to a high-involvement organization?
- Honesty
- Trustworthiness
- Doing things the way they have always been done
- Open communication
Doing things the way they have always been done.
Which of the following organizational variables would complement a classical management strategy?
- Strong policies and procedures dictating work processes
- high level of horizontal communication
- Significant autonomy given to employees
Strong policies and procedures dictating work processes
Marie is a new owner of a large apple farm in BC. She hires seasonal workers to pick apples during the months of October and November each year. Historically, there has been an abundance of labour supply. Which managerial strategy should you adopt to increase the farm’s performance? What does this strategy assume?
Classical
Assumes that most employees inherently dislike work, but can be induced to work in order to satisfy their economic needs (threaten economic needs in order get employees to behave the way they want - punitive)
A prospector strategy, short life cycle products, a highly skilled work force, and a relatively small organization would be a combination of variables for which managerial strategy? What does this strategy assume?
High-involvement
Assumes that work can be intrinsically motivating if the organization is structured properly (focus on intrinsic rewards and treating employees fair and equitably - light touch)
What are the five main contextual variables?
ORGANIZATION’S ENVIRONMENT (most important one) - stable vs. unstable, simple vs. complex
BUSINESS STRATEGY (also known as CORPORATE STRATEGY or competitive strategy) - plan for how organization will achieve goals
TECHNOLOGY
SIZE
WORKFORCE
What is organization structure?
The means through which an organization generates the behaviours necessary to execute its business strategy
What are structural variables?
They are dimensions of organization structure and are levers used to produced desired behaviours within an organization.
The five structural variables are:
Rewards System
Job design - describes the manner in which the total task of an organization is separated into separate jobs
Coordination and departmentalization - describes the methods used to coordinate the work of individual employees and subunits in an organization
Communication and information - describes the nature of and methods for communication
Decision making and leadership - describes the nature of the decision-making and leadership processes used in an organization
Control system - describes the nature of the processes used to control employee behaviour in an organization
What is the contingency approach to organizational design
Based on the premise that the best type of structure for an organization depends on the key contingencies (contextual variables) associated with that organization
What is a managerial strategy
A managerial strategy is one of three main patterns or combinations of structural variables that can be adopted by an organization:
