Chapter 2

Question 1

Stresses new products and short response time to market trends.

Answer 1

Innovator

Question 2

Efficiency-focused strategy stresses doing more with less by minimizing costs, encouraging productivity increases, and specifying in greater detail exactly how jobs should be performed.

Answer 2

Cost Cutter

Question 3

Business strategy stresses delighting customers and bases employee pay on how well they achieve this.

Answer 3

Customer-Focused

Question 4

Firms that cut costs are said to be following…

Answer 4

Cost leadership strategy

Question 5

Firms that seek to provide a unique and/or innovative product or service at a premium price are said to follow…

Answer 5

Differentiation strategy

Question 6

An individual’s capability to engage in a specific behavior.

Answer 6

Ability

Question 7

An individual’s willingness to engage in some behavior. Primarily concerned with (1) what energizes human behavior, (2) what directs or channels such behavior, and (3) how this behavior is maintained or
sustained.

Answer 7

Motivation

Question 8

Logic that proclaims that HR systems will be most effective when roles are designed to allow employees to be involved in decisions and have an opportunity to make an impact, when employee ability is developed through selective hiring and training and development, and when the compensation system motivates employees to act on their abilities and make a difference.

Answer 8

AMO

Question 9

Employees who are subject to the provisions of the Fair Labor Standards Act.

Answer 9

Nonexempt

Question 10

Compensation practices that allow employers to gain preferential access to superior human resource talent and competencies (i.e., valued assets), which in turn influence the strategies the organization adopts

Answer 10

Best-pay practices