Chapter 2 - A Strategic Framework for Compensation

Question 1

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?

Answer 1

A. Both companies have well-trainee managers
B. Both companies do similar work and hire the same kind of employees
C. Both systems fit the organization and it’s strategy.
D. Both provide compensation packages that lead to the marketplace.

Question 2

What can you determine by examining a firm’s contextual variables?

Answer 2

A. The managerial strategy that a firm is actually using
B. The type of structure the organization should be using
C. The firms competitive advantage and required resources
D. Organizational goals, missing and vision

Question 3

Knowing which organization structure to use requires first understanding which of the following aspects?

Answer 3

A. Structural variables
B. Corporate strategy
C. Managerial strategy
D. Technology

Question 4

A strategic framework is used as a tool to help determine which aspect of the compensation system?

Answer 4

A. The most effective compensation
B. The corporate goals
C. The corporate strategy
D. The business plan

Question 5

Which can you determine by examining a firms structural variables?

Answer 5

A. The managerial strategy a firm is actually using
B. The managerial strategy a firm should be using
C. A firms corporate strategy
D. The corporate strategy a firm should be using.

Question 6

Which of the following is classified as a “main” managerial strategy?

Answer 6

A. The job design management strategy.
B. The laissez-faire management strategy.
C. The transformational management strategy
D. The human relations management strategy

Question 7

You are In the process for designing a new reward system for your firm. What is the most important single determinant of what will or will not be a successful reward system for your firm?

Answer 7

A. The particular managerial strategy used.
B. The interrelationships among the structural variables
C. Corporate strategy
D. Competitive advantage

Question 8

Which of the following variables indicated to management the most appropriate managerial strategy to use in an organization?

Answer 8

A. Organizational processes
B. Factors of production
C. Contextual variables
D. Structural variables

Question 9

What determines the contextual variables?

Answer 9

A. Organizational goals
B. Structural variables
C. Managerial strategy
D. Corporate strategy

Question 10

You have recently been hired by a manufacturing company in Vancouver, British Columbia. You conclude that the company is using high-involvement management strategy. Which of the following variables would you review to support your aforementioned conclusion?

Answer 10

A. Structural variables
B. Organizational policies and procedures
C. Contextual variables
D. Behaviours of managers

Question 11

Which of the following sets of stretches reflects different assumptions about employees and how they should be managed?

Answer 11

A. Classical, human relations and high-involvement
B. Low-cost, differentiator and focused differentiator
C. Corporate, competitive and business
D. Defender, prospector and analyzer

Question 12

Which of the following characteristics are common in a classical organization?

Answer 12

A. Joint employee-management planning
B. Intrinsic rewards often being used as a reward system
C. Loyal employees who are dedicated to the norms of the organization
D. Strong management control over employees

Question 13

Which of the following rewards are normally associated with a high-involvement managerial strategy?

Answer 13

A. High levels of pay and benefits
B. Providing employees with the opportunity to grow professionally.
C.Providing employees with a pleasant team environment
D. A promotion based on a high level of production

Question 14

Which reward strategy is appropriate for companies using a human relations approach to management?

Answer 14

A. Rewards are mainly extrinsic and focus on loyalty to the organization
B. A wide variety of both intrinsic and extrinsic rewards are used
C. Only extrinsic rewards are offered
D. Only intrinsic rewards are offered

Question 15

Richard, a new employee is told by a more experienced employee to do only the minimum and not attempt to be a “super-star.” What variable best describes what Richard is experiencing?

Answer 15

A. engagement
B. Commitment
C. Structure
D. Culture

Question 16

Which of the following key cultural values would be detrimental to a high-involvement organization?

Answer 16

A. Honesty
B. Trustworthiness
C. Doing things the way they have always been done
D. Open communication

Question 17

Which of the following organizational variables would complement the classical management strategy?

Answer 17

A. Strong policies and procedures dictating work processes.
B. High level of horizontal communication
C. Significant autonomy given to employees
D. Employee-focused organizational culture

Question 18

Marie is the new owner of a large apple farm in British Columbia. 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 of the following managerial strategies should you adopt to increase the farms performance?

Answer 18

A. Human relations
B. Classical
C. Hybrid
D. High involvement

Question 19

A prospector strategy, a short life cycle products, a highly skilled work force and a relatively small organization would be a good combination of variables for which managerial strategy?

Answer 19

A. Classical
B. Human relations
C. High-involvement
D. Mechanical