MGMT Exam 1 Review Guide With Comprehensive Answers.

List and describe the components of Porter's Strategy typology - correct answer - Michael Porter - Creating Value Competitive Advantage - Value: • Low-Cost Strategy: reduce cost; lean; keep prices low • Differentiation Strategy: product must be unique from competitors; can charge higher prices Explain the concept of "core capabilities" - correct answer Core Capabilities: create a competitive advantage, strategic resources to achieve strategic objectives Identify the criteria for a core capability (or resource) to become a source of sustained competitive advantage for an organization - correct answer Core Capabilities must be: Valuable, Rare, Inimitable, Organized Identify the two dimensions along which human capital differs according to the human capital architecture - correct answer 1. Value of Human Capital: potential to contribute to competitive advantage 2. Uniqueness of Human Capital: firm specific = more unique and more valued List and describe the four types of workers identified by the human capital architecture model - correct answer 1. Strategic Knowledge Workers: unique skills, get most $$$ 2. Core Employees: skills to perform a predefined job that are valuable but an be replaced 3. Supporting Labor: needed but not very unique, general skills 4. Complementary/Alliance: unique skills but not directly related to a company's core strategy Match the four types of workers to their correct location along the human capital architecture - correct answer 1. Strategic Knowledge Workers: high unique, high value 2. Core Employees: low unique, high value 3. Supporting Labor: low unique, low value 4. Complementary: high unique, low value Identify and summarize the two generic HR strategies - correct answer 1. Control vs. Commitment Oriented Work System: limit variability of performance, have workforce identify with firm, enhance attachment 2. High Performance Work System (HWPS): maximize employee knowledge, skill, commitment, and flexibility; many coordinating parts Summarize the components and principles of the two generic HR strategies - correct answer Egalitarianism & Engagement: little employee influence, no formal employee complaint box, intense supervision • Shared Information: little communication, little information • Knowledge Development: limited training, low skill, job burnout • Performance Reward Linkage: limited benefits, low wages, no collaboration, may have incentive based individual rewards Explain how the components of a high performance work system (HPWS) fit with other systems in the organization (internal fit) - correct answer - Changes in one component affect all other components o Horizontal fit: make certain all HR practices, work design, management processes and technologies