27 free flashcards covering all 5 units. Study key concepts, terms, and exam-relevant topics.
A company decides to rebrand itself and creates a new vision statement, but its mission remains the same. What principle applies in this scenario?
Mission remains constant, vision adapts
The company's mission is its underlying purpose, which remains the same, while its vision is its future aspiration, which can change.
A company's {{blank}} statement outlines its overall goal and purpose, while its vision statement describes its desired future state.
mission
The correct answer is based on the definition of a mission statement, which is often confused with the vision statement.
A company decides to restructure, aiming to increase efficiency by widening the span of control. What principle applies?
Reduced bureaucracy
Widening the span of control reduces the number of management layers, increasing efficiency and reducing bureaucracy.
A wide span of control is often associated with a {{blank}} organizational structure.
flat
A flat organizational structure has fewer management layers, which is often achieved with a wide span of control.
A company decides to give more autonomy to its regional managers, allowing them to make decisions without needing approval from headquarters. Which principle applies?
Decentralization increases flexibility
By giving regional managers more autonomy, the company is adopting a decentralized approach, which can lead to faster decision-making and increased flexibility.
In a {{blank}} organization, decision-making authority is concentrated at the top level.
centralized
A centralized organization is characterized by a top-down approach, where decision-making authority is retained by top management.
A company decides to enter a new market and wants to conduct a SWOT analysis to inform its strategic planning decisions
Apply SWOT to identify market opportunities and threats
The company should use the SWOT analysis to identify its internal strengths and weaknesses, as well as external opportunities and threats in the new market
A SWOT analysis is used to identify a company's {{blank}} and external threats
internal strengths and weaknesses
The SWOT analysis framework includes internal factors such as strengths and weaknesses, as well as external factors like opportunities and threats
A company decides to implement a new reward system to boost employee performance. Which leadership style is being applied?
Transactional leadership
Because the company is using rewards to motivate performance, a characteristic of transactional leadership.
A leader's style can be categorized as either {{blank}} or transactional, with transformational leaders focusing on inspiring and motivating employees.
Transformational
Correct because transformational is the other category of leadership style.
A company decides to implement a new employee recognition program, but first, it must address the employees' concerns about job security. What principle applies here?
Lower-level needs precede higher-level needs
The company must address the employees' safety needs before implementing a program that targets higher-level needs like esteem or recognition.
According to Maslow's hierarchy, {{blank}} needs must be met before an individual can pursue higher-level psychological needs.
physiological
The correct answer is 'physiological' because Maslow's hierarchy proposes that basic physiological needs must be met before higher-level psychological needs can be addressed.
A company decides to increase employee salaries to improve job satisfaction, but it doesn't provide opportunities for growth or recognition. What principle applies?
Herzberg's hygiene factor
The company is addressing a hygiene factor, but not a motivator factor
Herzberg's two-factor theory distinguishes between {{blank}} factors, which prevent dissatisfaction, and motivator factors, which promote job satisfaction
hygiene
Herzberg's theory is about two types of factors: hygiene and motivator
A company decides to implement a new bonus structure, where employees receive a bonus based on their performance. However, some employees are skeptical about the new system and do not believe they can achieve the required performance levels.
Expectancy theory applies, as motivation is influenced by expectation and ability
The company's new bonus structure is an example of how Expectancy theory can be applied in a real-world scenario. The employees' skepticism and lack of belief in their ability to achieve the required performance levels illustrate how Expectancy theory can influence motivation.
According to Expectancy theory, an employee's motivation is influenced by their {{blank}} of achieving a desired outcome, the value they place on that outcome, and their perception of their ability to achieve it.
expectation
The correct answer is 'expectation', as Expectancy theory states that motivation is influenced by the expectation of achieving a desired outcome, among other factors. Common mistakes include confusing this with other motivation theories or using the wrong term.
A company decides to monitor employee productivity and adjust workflows accordingly. What principle applies?
Control process
The company is establishing standards and taking corrective action to improve performance
The control process involves establishing {{blank}}, measuring performance, and taking corrective action
standards
The control process starts with setting clear standards to measure against
What is the purpose of job analysis?
To identify the tasks, responsibilities, and skills required for a position, forming the basis for recruitment, selection, performance appraisal, and training.
Understanding job analysis is essential for designing effective HR processes and for answering exam questions about job-related decisions.
If a firm’s managers use a rating scale in performance appraisals but receive no training in calibration, what effect does this have?
Ratings will be inconsistent, lowering validity of comparisons and potentially harming selection or promotion decisions.
This scenario tests your understanding of appraisal reliability, a key exam topic regarding fair performance measurement.
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