Deck 2: A Strategic Framework for Compensation

Question 1

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 managerial strategy would best fit this farm's situation?

A) human relations
B) classical
C) hybrid
D) high-involvement

Answer 1

B

Question 2

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

A) structural variables
B) organizational policies and procedures
C) contextual variables
D) behaviours of managers

Answer 2

A

Question 3

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

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) promotions based on a high level of production

Answer 3

B

Question 4

A prospector strategy,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?

A) classical
B) human relations
C) high-involvement
D) mechanical

Question 5

The strategic framework for compensation helps to identify the corporate strategy that will best suit a firm's compensation strategy.

Question 6

What are the two main categories of organizational variables?

A) contextual and structural
B) horizontal and vertical
C) classical and human relations
D) miles and snow

Question 7

Narrow jobs characterize high involvement systems.

Question 8

What can you determine by examining a firm's structural variables?

A) the managerial strategy a firm is actually using
B) the managerial strategy a firm should be using
C) a firm's corporate strategy
D) the corporate strategy a firm should be using

Question 9

Porter offers the notion that business strategies may be divided into two broad dimensions: cost and differentiation.

Question 10

Horizontal fit refers to the alignment between an organization's mission,vision and values,and the various supportive strategies that cascade down an organization.

Question 11

If a particular compensation system has been successful in one organization,it is very likely that replicating that compensation system will bring success in another organization.

Question 12

The three main managerial strategies described in the textbook are: the classical strategy,the human relations strategy,and the high involvement strategy.

Question 13

Richard,a new employee,is told by a more experienced employee to do only the minimum and not attempt to be a "superstar." What variable best describes what Richard is experiencing?

A) engagement
B) commitment
C) structure
D) culture

Question 14

The classical managerial approach to management assume employees are inherently lazy and require constant vigilance.

Question 15

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

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 16

Group and organizational pay systems characterize firms that use a classical managerial strategy.

Question 17

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

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

Question 18

An organization's vision refers to its long-term,optimal desired state.

Question 19

Which term describes an organization's core values and understandings shared by its members?

A) organizational structure
B) organizational culture
C) organizational domain
D) organizational strategy

Question 20

An organization's domain is simply another term for managerial strategy or plan.

Question 21

You have been asked to provide some element of rationale why some companies using a human relations strategy sometimes attempt to change to a more classical framework.Which statement would best describe the most important issue associated with your explanation?

A) It is simply very hard on management to pursue a human relations strategy.
B) There is pressure from owners to increase profitability.
C) Companies fail to react fast enough to changes in the environment.
D) Greater worker mobility makes a human relations strategy obsolete.

Question 22

Which of the following is a structural variable interrelated with compensation?

A) business strategy
B) job design
C) organization size
D) technology

Question 23

Which term refers to the vehicle used by an organization for executing its business strategy?

A) its structure
B) its culture
C) horizontal fit
D) vertical fit

Question 24

According to the textbook,which term would best describe an analyzer business strategy?

A) speed
B) slow
C) balance
D) classical

Question 25

Which variable indicates to management the most appropriate managerial strategy to use in an organization?

A) organizational processes
B) factors of production
C) contextual variables
D) structural variables

Question 26

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

A) the managerial strategy that a firm is actually using
B) the type of structure the organization should be using
C) the firm's competitive advantage and required resources
D) organizational goals,mission,and vision

Question 27

You have been asked to explain to a manager the notion of structural variables within the context of a strategic framework for compensation.Which variable would you elaborate on?

A) how work is divided into subtasks
B) the market the company serves
C) the level of differentiation in the products and services offered by the company
D) the company's products' life cycle

Question 28

3M and Apple have organizational strategies that encourage innovation.As a result,their compensation strategies support innovative behaviours by employees.Which term refers to this alignment of strategies?

A) tight fit
B) loose fit
C) horizontal fit
D) vertical fit

Question 29

As a human resources consultant,you decided to recommend to a business owner that she should use a contingency view to organizational design.In order to support your recommendation,what would you look at first from a business structure perspective?

A) structural variables
B) job design variables
C) financial variables
D) contextual variables

Question 30

Which condition has NOT made it increasingly difficult for Canadian firms to make the classical managerial strategy work for them?

A) Educational levels have increased.
B) Globalization has allowed work to be outsourced to a variety of developing countries.
C) Economic security and social security have improved.
D) Social values have become more democratic and egalitarian.

Question 31

Which term best describes the scope of business operations undertaken by an organization?

A) integration
B) differentiation
C) craft
D) domain

Question 32

Which set of strategies reflects different assumptions about employees and how they should be managed?

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 33

Which managerial strategy most highly values an organization's culture?

A) classical
B) human relations
C) high involvement
D) hybrid

Question 34

Which key cultural value would be detrimental to a high-involvement organization?

A) honesty
B) trustworthiness
C) doing things the way they have always been done
D) open communication

Question 35

Which organizational variable would complement a classical management strategy?

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 36

What should an effective organizational structure provide an organization?

A) It identifies sources of required inputs for an organization.
B) It reduces internal uncertainty while increasing external uncertainty for an organization.
C) It increases internal uncertainty while decreasing external uncertainty for an organization.
D) It decreases both internal and external uncertainty for an organization.

Question 37

Which characteristics are common in a classical organization?

A) joint employee-management planning and goal setting
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 38

Which of the following is a contextual variable to consider when deciding on the managerial strategy to be used?

A) business strategy
B) job design
C) reward system
D) control system

Question 39

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?

A) Both companies have well-trained managers.
B) Both companies do similar work and hire the same kinds of employees.
C) Both systems fit the organization and its strategy.
D) Both provide compensation packages that lead the marketplace.

Question 40

The training,compensation,and performance management functions at ABC Inc.are all focused on helping the organization achieve its goals.What is this alignment of strategies called?

A) cross fit
B) functional fit
C) horizontal fit
D) vertical fit

Question 41

Explain the concept of fit.

Question 42

What is the purpose of the strategic framework for compensation?

Question 43

Briefly explain the difference between the three managerial strategies described in the textbook.

Question 44

What are the five contextual variables and why are they important?

Question 45

Identify the six structural variables that make up the organization structure and explain why they are so important.