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Terms in this set (116)
E
1) Which of the following is a management issue central to strategy implementation?
A) Devising policies
B) Revising reward and incentive plans
C) Minimizing resistance to change
D) Developing an effective human resources function
E) All of the above
Ch 7
C
Which of the following is NOT a management issue central to strategy implementation?
A) Devising policies
B) Revising reward and incentive plans
C) Performing an internal audit
D) Minimizing resistance to change
E) Developing an effective human resources function
Ch 7
False
Effective strategy formulation can usually guarantee
successful strategy implementation
Ch 7 p.206
True
It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).
Ch 7 p. 206
True
Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.
Ch 7 p. 207
False
Implementing strategy affects all the functional areas of a business and may influence some divisional areas of a business.
Ch 7
Student answers should include five of the following: Strategy formulation is positioning forces before the action, whereas strategy implementation is managing forces during the action. Strategy formulation focuses on effectiveness, whereas strategy implementation focuses on efficiency. Strategy formulation is primarily an intellectual process, whereas strategy implementation is primarily an operational process. Strategy formulation requires good intuitive and analytical skills, whereas strategy implementation requires special motivational and leadership skills. Strategy formulation requires coordination among a few individuals, whereas strategy implementation requires coordination among many individuals. Strategy formulation is science with tools and techniques, whereas strategy implementation is an art to energize people. Strategy formulation and strategy implementation are both difficult to do well, but strategy implementation is considerably more difficult to do well. Strategy orientation is process oriented, whereas strategy implementation is people oriented. Strategy formulation is primarily the responsibility of top managers, whereas strategy implementation is primarily the responsibility of mid and lower level managers.
What are five differences between strategy formulation and strategy implementation?
Ch 7 p. 208 Figure 7-2
E
Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for
A) monitoring progress toward long-term objectives.
B) establishing divisional
priorities.
C) allocating resources.
D) evaluating managers.
E) all of the above
Ch 7 p. 208 list of 5
C
Which of the following is NOT true about objectives?
A) They should be communicated throughout the organization.
B) They should have an appropriate time dimension.
C) They should use terms like "maximize," "minimize," and "as soon as possible."
D) They should be measurable.
E) They
should be consistent.
Ch 7 p. 209
C
Which word or phrase would be most suitable to use in written objective statements?
A) Maximize
B) Minimize
C) 10 percent increase
D) Adequate
E) As soon as possible
Ch 7 p. 209
True
A firm's annual objectives can be stated by business segment.
Ch 7 p. 209
True
Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.
Ch 7 p. 208 #1 in list of 5
False
Horizontal consistency is less important than vertical consistency in developing annual objectives, but it still contributes to improved objectives.
Ch 7 p.
210
True
Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives.
Ch 7 p. 210
Students should list three of the following: 1) represent the basis for allocating resources; 2) are a primary mechanism for evaluating managers; 3) are the major instrument for monitoring progress toward achieving long-term objectives; 4) establish organizational, divisional, and departmental priorities; and 5) they are essential for keeping a strategic plan on track.
List three of the primary reasons annual objectives are essential for strategy implementation
Ch 7 p. 208
B
What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative practices
established to support and encourage work toward stated goals?
A) Long-term objectives
B) Policies
C) Annual objectives
D) Strategies
E) Values
Ch 7 p. 211
E
Policies
A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making
decisions.
E) all of the above
Ch 7 p. 211 in list of 6
E
Which is NOT a characteristic of policies?
A) let both employees and managers know what is expected of them
B) provide a basis for management control
C) allow coordination across organizational units
D) reduce the amount of time managers spend making decisions
E) represent the basis for allocating resources
Ch 7 p. 211 in list of 6
D
"All of our locations will be open at least two evenings per week until 8:30 p.m." is an example of a(n)
A) administration.
B) goal.
C) objective.
D) policy.
E) procedure.
Ch 7 p. 211
True
Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and
encourage work toward stated goals.
Ch 7 p. 211
False
Strategies clarify what can and cannot be done in pursuit of an organization's objectives.
Ch 7
False
"Beginning in March, production employees will have the option of working up to 12 hours of overtime per week." is an example of a procedure.
Ch 7 p. 211 (example of
a Policy)
Possible answers include: 1) to offer extensive or limited management development workshops and seminars; 2) to centralize or decentralize employee-training activities; 3) to recruit through employment agencies, college campuses and/or newspapers; 4) to promote from within or to hire from the outside; 5) to promote on the basis of merit or on the basis of seniority; 6) to tie executive compensation to long-term and/or annual objectives; 7) to offer numerous or few employee benefits; 8) to negotiate directly or indirectly with labor unions; 9) to delegate authority for large expenditures or to retain this authority centrally; 10) To allow much, some, or no overtime work; 11) to establish a high- or low-safety stock of inventory; 12) to use one or more suppliers; 13) to buy, lease, or rent new production equipment; 14) the degree of quality control; 15) to establish many or only a few production standards; 16) to operate one, two, or three shifts; 17) to discourage using insider information for personal gain; 18) to discourage sexual harassment; 19) to discourage smoking at work; 20) to discourage insider trading; and 21) to discourage moonlighting.
Name at least six issues indicated by the authors that may require a management policy.
Ch 7 p. 212 in Table 7-4
A
Which is NOT a major factor
that commonly prohibits effective resource allocation?
A) Underprotection of resources
B) Organizational politics
C) Having vague strategy targets
D) A reluctance to take risks
E) A lack of sufficient knowledge
Ch 7 p. 211 (2nd paragraph under Allocate Resources)
B
A disagreement between two or more parties on one or more issues is called a(n)
A) integrated solution.
B) conflict.
C)
compromise.
D) defusion.
E) avoidance.
Ch 7 p. 213
C
Conflict in an organization is
A) always bad.
B) always good.
C) not always bad.
D) a sign of bankruptcy.
E) completely avoidable.
Ch 7 p. 213
A
An absence of conflict can signal ________ within an organization.
A) indifference and apathy
B)
insight and apathy
C) indifference and indignation
D) disputes
E) all of the above
Ch 7 p. 213
A
What are the three categories of approaches for managing and resolving conflict?
A) Avoidance, defusion, and confrontation
B) Avoidance, apathy, and defusion
C) Ignorance, indifference, and apathy
D) Defusion, apathy, and avoidance
E) Indifference, avoidance, and role-playing
Ch 7 p.
213
E
Which approach for managing and resolving conflict involves exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view?
A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation
Ch 7 p. 213
A
Which approach for managing and resolving conflict
involves ignoring the problem in hopes that the conflict will resolve itself?
A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation
Ch 7 p. 213
D
Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests?
A) Avoidance
B) Resistance
C) Compliance
D)
Defusion
E) Confrontation
Ch 7 p. 213
True
Four types of resources that can be used to achieve desired objectives are financial, physical, human, and technological.
Ch 7 p. 211 (Allocate Resources section)
True
Avoidance, defusion, and confrontation are the classifications for the various types of conflict that can
arise in organizations
Ch 7 p. 213
False
Conflict is highly unusual in well-run organizations.
Ch 7 p. 213
False
In the context of conflict management and resolution, ignoring the problem in the hopes that the conflict will resolve itself is classified as a defusion technique.
Ch 7 p. 213 (It's Avoidance)
False
Holding a meeting at which conflicting parties present their views and work through their differences is part of the defusion technique of managing conflict.
Ch 7 p. 213 (part of confrontation technique)
True
Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a
confrontation approach.
Ch 7 p. 213
Various approaches for managing and resolving conflict can be classified into three categories: avoidance, defusion, and confrontation. Avoidance includes such actions as ignoring the problem in hopes the conflict will resolve itself, or physically separating the conflicting individuals or groups. Defusion can include playing down differences between conflicting parties while accentuating similarities and common interests, compromising so there is neither a clear winner nor loser, resorting to majority rule, appealing to a higher authority, or redesigning present positions. Confrontation is exemplified by exchanging members of conflicting parties so each can gain an appreciation of the other's point of view, or by holding a meeting at which conflicting parties present their views and work through their differences.
The approaches for managing and resolving
conflict in an organization can be classified into three categories. Name these three categories and give an example for each.
Ch 7 p. 213
D
Why do changes in company strategy often require changes in the way an organization is structured?
A) Structure dictates how objectives and policies will be established.
B) Structure dictates how resources will be allocated.
C) Structure should be designed to
facilitate the strategic pursuit of a firm.
D) All of the above
E) None of the above
Ch 7 p. 213-214
True
Structure dictates how resources will be allocated
Ch 7 p. 214
False
Policies largely dictate how structure will be established.
Ch 7 p. 213 (Beginning of Math Structure with Strategy)
True
According to Alfred Chandler "changes in strategy lead to changes in organizational structure."
Ch 7 p. 214
B
What type of organizational structure promotes specialization of labor and allows rapid decision making?
A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic
business unit
E) Matrix structure
Ch 7 p. 215
C
Which organizational structure is the most widely used?
A) Departmental
B) Strategic business unit
C) Functional
D) Decentralized
E) Matrix
Ch 7 p. 215
A
Medium-sized firms tend to use which type of structure?
A) Divisional
B) Matrix
C) SBU
D)
Functional
E) Centralized
Ch 7
E
What is NOT one of the basic ways a divisional structure can be organized?
A) By geographic area
B) By product
C) By customer
D) By process
E) By cost
Ch 7 p. 215
E
A divisional structure by product is most effective when
A) special emphasis needs to be placed on
specific products.
B) an organization offers few products.
C) an organization's products or services differ substantially.
D) special emphasis needs to be placed on specific services.
E) all of the above
Ch 7 p. 216
A
A divisional structure by geographic area is most appropriate when
A) organizations have similar branch facilities located in widely dispersed areas.
B) an organization offers
only a limited number of products or services.
C) consumption patterns for its products and/or services are the same worldwide.
D) the company's customers in different geographic locations have similar needs and characteristics.
E) the firm serves one geographic area.
Ch 7 p. 216
B
Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many
different services are provided to these customers?
A) By geographic area
B) By customer
C) By product
D) By process
E) By cost
Ch 7 p. 217
C
Which organizational structure has the disadvantage of ambiguous roles for some senior executives?
A) Functional
B) Divisional
C) Strategic Business Unit (SBU)
D) Matrix
E) Process
Ch 7 p. 218
C
What is the most complex form of organizational structure?
A) Divisional
B) SBU
C) Matrix
D) Functional
E) Geographic
Ch 7 p. 218
True
Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure.
Ch 7
False
Tasks
and activities are grouped together by business function in a divisional organizational structure.
Ch 7 p. 215-216
False
A functional structure can be effective at eliminating short-term and narrow thinking.
Ch 7 p. 215
True
Most large companies have abandoned the functional structure in favor of decentralization.
Ch
7 p. 215
False
With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.
Ch 7 p. 215-216
True
With a divisional structure by customer, an organization can effectively cater to the requirements
of clearly defined customer groups.
Ch 7 p. 217
False
Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure.
Ch 7 p. 217-218
True
The most complex of all organizational structures is a matrix structure.
Ch 7
p.218
False
With the matrix structure it is common for functional resources to be duplicated.
Ch 7 p. 218
A divisional structure has some clear advantages. The first is that accountability is clear. Also, it creates career development opportunities for managers, allows local control of local situations, leads to a competitive climate within an organization, and allows new businesses and products to be added easily. A divisional structure does have its limitations. A divisional structure is costly because each division requires functional specialists who must be paid, there exists some duplication of staff services, facilities and personnel, and better-qualified individuals require higher salaries. It is also costly because it requires an elaborate headquarters-driven control system. Competition between divisions may become so intense that it is dysfunctional. A divisional structure can lead to limited sharing of ideas and resources. Some regions, products, or customers may receive special treatment.
What are the advantages and disadvantages of a divisional organizational structure?
Ch 7 p. 216 Table 7-8
The four basic ways a divisionally structured firm could be organized are: 1) by geographic area, 2) by product or service, 3) by customer, and 4) by process.
List the four basic ways a divisionally structured firm could be organized.
Ch 7 p. 215
D
When developing an organizational chart, you should
A) recommend dual titles for executives.
B) use the title "president" for the top executive of the firm.
C) make sure that the chief financial officer is not at the same level as the chief operating officer
(COO).
D) have division presidents report to a chief operating officer (COO).
E) have employees report to more than one person in the chain of command.
Ch 7 p. 220
False
When developing an organizational chart, the title president should be reserved for the top executive of the firm.
Ch 7 p. 219
True
When developing
an organizational chart, it is not wise to recommend that any executive have a dual title.
Ch 7 p. 219
True
In developing an organizational chart, avoid having a particular person reporting to more than one person in the chain of command.
Ch 7 p. 220
False
In publicly held U.S. companies it is becoming increasingly common
to combine the positions of chairperson of the board and the CEO.
Ch 7 p. 219
E
Which term is primarily concerned with shareholder well-being rather than employee well-being?
A) Benchmarking
B) Reengineering
C) Product redesign
D) Process management
E) Restructuring
Ch 7 p. 222
B
The primary benefit sought
from restructuring is
A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation.
Ch 7 p. 222
C
What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed?
A) Restructuring
B) Downsizing
C) Reengineering
D)
Delayering
E) Recruiting
Ch 7 p. 222
C
What change strategy involves giving orders and enforcing those orders?
A) Self-interest
B) Educative
C) Force
D) Rational
E) Defusion
Ch 7 p. 223
E
Resistance to change can manifest itself through
A) absenteeism.
B) sabotaging production machines.
C) filing
unfounded grievances.
D) unwillingness to cooperate.
E) all of the above
Ch 7 p. 223
D
A change strategy that attempts to convince people that the change is to their personal advantage is
A) defusion.
B) force.
C) educative.
D) rational.
E) compromise
Ch 7 p. 223
B
Which of the following is in keeping
with the current view of organizational change?
A) Organizational change is a project.
B) Organizational change is a continuous process.
C) Organizational change is an event.
D) Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the new behavior.
E) All of the above
Ch 7 p. 223
B
Just-in-time describes
A) implementing strategies just before
bankruptcy.
B) delivering materials just as they are needed.
C) a scheduling method for meetings.
D) a personnel planning method.
E) a process for improving quality
Ch 7 p. 224
False
In terms of number of employees, restructuring usually involves increasing the size of the firm.
Ch 7 p. 222
True
Reengineering
does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.
Ch 7 p. 222
False
Six Sigma is generally equally successful in retail firms and manufacturing firms.
Ch 7 p. 223
False
The focus of restructuring is changing the way work is actually carried out.
Ch 7 p.
222
True
People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty, and a break in normal social patterns.
Ch 7 p. 223
True
Resistance to change can be considered the single greatest threat to successful strategy implementation
Ch 7 p. 223
False
A rational change strategy means giving orders and enforcing those orders.
Ch 7 p. 223
True
When the rational type change strategy is successful, strategy implementation can be relatively easy.
Ch 7 p. 223
False
The advantage of the educative change
strategy is that implementation is quick and relatively easy.
Ch 7 p. 223
False
The rational change strategy is one that presents information to convince people of the need for change
Ch 7 p. 223
True
A force change strategy is plagued by low commitment and high resistance.
Ch 7 p. 223
False
Organizational change today should be viewed as a project or event rather than as a continuous process.
Ch 7 p. 223
False
JIT significantly increases the costs of implementing strategies
Ch 7 p. 224
True
Besides reducing worker alienation and stimulating
productivity, ESOPs allow firms other benefits, such as substantial tax savings.
Ch 7 p. 224
False
A tax benefit of ESOP plans is that they empower owners to work as employees.
Ch 7 p. 224
In contrast to restructuring, reengineering is concerned more with employee and customer well-being than shareholder well-being. Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs. Whereas restructuring is concerned with eliminating or establishing, shrinking or enlarging, and moving organizational departments and divisions, the focus of reengineering is changing the way work is actually carried out. Reengineering is characterized by many tactical (short-term, business-function-specific) decisions, whereas restructuring is characterized by strategic (long-term, affecting all business functions) decisions
How does reengineering differ from restructuring?
Ch 7 p. 222
Although there are various approaches for implementing changes, three commonly used strategies are a force change strategy, an educative change strategy, and a rational or self-interest change strategy. A force change strategy involves giving orders and enforcing those orders; this strategy has the advantage of being fast, but low commitment and high resistance plague it. An educative change strategy is one that presents information to convince people of the need for change; the disadvantage of an educative change strategy is that implementation becomes slow and difficult. However, this type of strategy evokes greater commitment and less resistance than does the force change strategy. Finally, a rational or self-interest change strategy is one that attempts to convince individuals the change is to their personal advantage. When this appeal is successful, strategy implementation can be relatively easy.
What are the three commonly used strategies or approaches for implementing changes in an organization? Give an advantage and/or disadvantage for each type of approach
Ch 7 p. 223
An ESOP is a tax-qualified, defined-contribution, employee-benefit plan whereby employees purchase stock of the company through borrowed money or cash contributions. ESOPs control more than $600 billion in corporate stock in the United States. ESOPs empower employees to work as owners. Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as substantial tax savings.
Explain the nature and role of ESOPs in strategic management
Ch 7 p. 224-225
D
For upper-level
executives, ________ is the major variable used for compensation incentives.
A) Balanced Scorecard performance
B) revenue
C) net income
D) stock price
E) none of the above
ch 7 p. 226
B
All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to performance-based approaches are true EXCEPT
A) the switch is an effort to cut costs.
B) the
switch is boosting employee morale.
C) the switch is an effort to increase productivity.
D) the switch opposes the traditional training of Japanese employees to cooperate rather than compete.
E) the switch goes against decades of encouraging workers to work in groups instead of individually.
Ch 7 p. 226 (bottom of page)
D
What pay strategy requires employees or departments to establish performance
targets, which, if exceeded, result in bonuses for all members?
A) Profit sharing
B) Bonus system
C) Salary
D) Gain sharing
E) Hourly wage system
Ch 7 p. 226
B
Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection, and socialization help an organization
A) abide by SEC rules.
B) link culture to strategy.
C) set guidelines for
firing.
D) increase profits.
E) manage conflicts between stakeholders.
Ch 7 p. 232
A
Changing a strategy to fit an existing culture
A) is usually less effective than changing a firm's culture to fit a new strategy.
B) is usually more effective than changing a firm's culture to fit a new strategy.
C) is just as effective as changing a firm's culture to fit a new strategy.
D) is always the
best option.
E) none of the above
Ch 7 p. 232
D
All of the following are examples of offerings at companies to promote a corporate wellness culture EXCEPT
A) stress management programs.
B) health fairs.
C) abundance of bicycle racks onsite.
D) free health insurance for employees who exercise regularly.
E) cash incentives for completing Ironman triathlons.
Ch 7 p. 234
D
All of the following are ways and means for altering an organization's culture EXCEPT
A) recruitment.
B) restructuring of an organization's design.
C) role modeling.
D) retrenchment.
E) mentoring.
Ch 7 p. 232 Table 7-17
D
Aspects of an existing culture that are antagonistic to a proposed strategy should be
A) preserved.
B)
emphasized.
C) built upon.
D) changed.
E) celebrated.
ch 7 p. 232
D
Glass ceiling refers to
A) the reality that most companies do not offer paternity leave for fathers as a benefit.
B) the understanding that a good home life for employees contributes to a good work life and value for the firm.
C) the focus on flexible scheduling, job sharing, and other quality of life benefits.
D) the
invisible barrier in many firms that bars women and minorities from top-level management positions.
E) the decline since 1970 in the percentage of women with college degrees.
Ch 7 p. 228
E
According to the information in the text, how many Fortune 500 have women CEOs?
A) Two
B) Five
C) Twelve
D) Eighteen
E) Twenty-six
Ch 7 p. 228
C
Wellness programs
A) are too expensive for most companies to afford.
B) are desired by employees but don't provide value to the company.
C) are becoming more prevalent as companies realize the benefits to the firm.
D) attract prospective employees who then fail to take advantage of them.
E) are facing legal challenges from the health-care industry.
Ch 7 p. 234
E
In
2017, which governmental entity will impose penalties up to $450 on any employee who fails to undergo certain health screenings or treatment plans?
A) City of Boston
B) City of New York
C) Hennepin County Minnesota
D) State of Massachusetts
E) State of Maryland
Ch 7 p. 234
True
A dual bonus system is based on both annual objectives and long-term objectives.
Ch 7 p. 225
False
In Japan, performance rather than seniority has traditionally been the key factor in determining pay.
Ch 7 p. 226
True
Changing a strategy to fit an existing culture is not as effective as changing a firm's culture to fit a new strategy.
Ch 7 p. 232
False
Changing
a strategy to fit an existing culture is usually more effective than changing a firm's culture to fit a new strategy.
Ch 7 p. 232
False
Strategists should strive to preserve, emphasize, and build upon aspects of an existing culture that are antagonistic to a proposed strategy.
Ch 7 p. 232
True
Recruitment, promotion, and
mentoring are ways to alter an organization's culture.
Ch 7 p. 232
True
When attachments to a culture are severed in an organization's attempt to change direction, employees and managers often experience deep feelings of grief.
Ch 7 p. 232 (bottom of page)
False
The work and family issue is overwhelmingly a women's issue.
Ch 7 p. 227
True
The United States is a leader globally in promoting women and minorities into mid- and top-level managerial positions in business.
Ch 7 p. 229
True
A recent study reports that nearly 90 percent of employers today offer some kind of wellness incentives or prizes to employees who "get healthier."
Ch 7 p.
234
Work/family strategies have become so popular among companies today that the strategies now represent a competitive advantage for those firms that offer such benefits as elder care assistance, flexible scheduling, job sharing, adoption benefits, an on-site summer camp, employee help lines, pet care, and even lawn service referrals. New corporate titles such as work and life coordinator and director of diversity are becoming common. A corporate objective to become more lean and mean must today include consideration for the fact that a good home life contributes immensely to a good work life. The work/family issue is no longer just a women's issue. A corporate objective to become more lean and mean must today include consideration for the fact that a good home life contributes immensely to a good work life.
Discuss how work life/home life balance is being addressed by organizations
Ch 7 p.
227
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