SPHR NEW EXAM WITH COMPLETE VERIFIED SOLUTIONS
Prudent Person - ANSWER a hypothetical person used as a legal standard especially to
determine whether someone acted with negligence. This hypothetical person exercises
average care, skill, and judgment in conduct that society requires of its members for the
protection of their own and of others' interests
Sole proprietorship - ANSWER The business is owned and operated by an individual
person. He is the only person who must be contacted in case of anything including
finances. Profits are his personal property. The owner is personally responsible for all
debts and liabilities.
Partnership - ANSWER Owned by two or more individuals. Division of profits, dispute
resolution and dissolution of the organization is usually stated on formal agreements.
Corporation ANSWER An organization that is owned by stockholders or shareholders.
THIS, and not the owners, is liable or legally responsible for its debt and actions. The
owners in a corporation elect a board of directors to represent their interest and the
company's senior leadership team makes decisions about the direction of the company.
Limited Liability Comany - ANSWER Give their owners (members) protection from
liability. they give the tax structure more simplified like a partnership. There can be one
or more members of an (THIS).
Richard Daft's Organizational Life Cycle: Stage 1 - Birth - ANSWER Small, one person
doing many jobs, single leader, informal environment, no rules
Richard Daft's Organizational Life Cycle: Stage 2 - Youth - ANSWER Medium size, basic
departments, a few leaders, some basic rules & processes
Richard Daft's Organizational Life Cycle: Stage 3 - Mid-life - ANSWER Large size, many
departments, dept leaders, many formal rules, complex processes and control systems
,Richard Daft's Organizational Life Cycle: Stage 4 - Maturity - ANSWER Very large size,
specific jobs, many middle managers, detailed rules and procedures, focuses on future
needs
Larry Greiner's Growth Phases: Phase 1 - Creativity - ANSWER Crisis of leadership, the
org needs more formalized management practices, leaders must adapt practices or hire
managers to assume this authority
Larry Greiner's Growth Phases: Phase 2 - Direction - ANSWER Crisis of autonomy, lower
level managers need more authority, leaders must delegate authority
Larry Greiner's Growth Phases: Phase 3 - Delegation - ANSWER Crisis of control, EEs
need autonomy to do jobs while leaders need to feel in control, leaders must develop a
system of checks and balances
Larry Greiner's Growth Phases: Phase 4 - Coordinaton - ANSWER Crisis of bureaucracy,
focus groups, planning processes, and staff cause delays in decision making, innovation
suffers, management must develop collaborative teams and break down silos
Larry Greiner's Growth Phases: Phase 5 - Collaboration - ANSWER No formal crisis
indicated, however EEs may grow exhausted by teamwork and pressure
Strategic Planning - ANSWER a process of defining the overall purpose and goals of the
org and how these goals will be achieved. Focuses on the org as a whole instead of a
particular product
Strategic Planning approach 1: Goals-based planning - ANSWER Focuses on the org's
mission, vision and values
Strategic Planning approach 2: Issues-based planning - ANSWER focuses on the issues
facing the org and determines steps to address the issues
, Strategic Planning approach 3: Organic planning - ANSWER focuses on a common
vision and values identifying best practices and methodologies in the org
Strategic Planning Process element 1: Plan the process - ANSWER stakeholders decide
on process, participants and time frame
Strategic Planning Process element 2: Study the environment - ANSWER stakeholders
utilize tools, such as SWOT, PEST, Porter's to identify the org current status
Strategic Planning Process element 3: formulate a strategy - ANSWER stakeholders
create and craft the orgs mission, values, goals and objectives
Strategic Planning Process element 4: implement the strategy - ANSWER stakeholders
define goals, establish budgets, build action plans and carry out plans
Strategic Planning Process element 5: Evaluate the strategy - ANSWER stakeholders
evaluate the strategy and periodically make adjustments
Mission Statement - ANSWER defies the purpose of an org (why we do what we do)
Vision Statement - ANSWER outlines the goals of the org and includes core values that
frame the perspective and guides its actions
SWOT - ANSWER looks at an orgs internal Strengths, Weaknesses, Opportunities and
Threats
PEST - ANSWER analyses how external Political, Economic, Social and Technological
forces may affect an org
Porter's 5 Forces - ANSWER Competition
Possibility of new entrants into the industry
Prudent Person - ANSWER a hypothetical person used as a legal standard especially to
determine whether someone acted with negligence. This hypothetical person exercises
average care, skill, and judgment in conduct that society requires of its members for the
protection of their own and of others' interests
Sole proprietorship - ANSWER The business is owned and operated by an individual
person. He is the only person who must be contacted in case of anything including
finances. Profits are his personal property. The owner is personally responsible for all
debts and liabilities.
Partnership - ANSWER Owned by two or more individuals. Division of profits, dispute
resolution and dissolution of the organization is usually stated on formal agreements.
Corporation ANSWER An organization that is owned by stockholders or shareholders.
THIS, and not the owners, is liable or legally responsible for its debt and actions. The
owners in a corporation elect a board of directors to represent their interest and the
company's senior leadership team makes decisions about the direction of the company.
Limited Liability Comany - ANSWER Give their owners (members) protection from
liability. they give the tax structure more simplified like a partnership. There can be one
or more members of an (THIS).
Richard Daft's Organizational Life Cycle: Stage 1 - Birth - ANSWER Small, one person
doing many jobs, single leader, informal environment, no rules
Richard Daft's Organizational Life Cycle: Stage 2 - Youth - ANSWER Medium size, basic
departments, a few leaders, some basic rules & processes
Richard Daft's Organizational Life Cycle: Stage 3 - Mid-life - ANSWER Large size, many
departments, dept leaders, many formal rules, complex processes and control systems
,Richard Daft's Organizational Life Cycle: Stage 4 - Maturity - ANSWER Very large size,
specific jobs, many middle managers, detailed rules and procedures, focuses on future
needs
Larry Greiner's Growth Phases: Phase 1 - Creativity - ANSWER Crisis of leadership, the
org needs more formalized management practices, leaders must adapt practices or hire
managers to assume this authority
Larry Greiner's Growth Phases: Phase 2 - Direction - ANSWER Crisis of autonomy, lower
level managers need more authority, leaders must delegate authority
Larry Greiner's Growth Phases: Phase 3 - Delegation - ANSWER Crisis of control, EEs
need autonomy to do jobs while leaders need to feel in control, leaders must develop a
system of checks and balances
Larry Greiner's Growth Phases: Phase 4 - Coordinaton - ANSWER Crisis of bureaucracy,
focus groups, planning processes, and staff cause delays in decision making, innovation
suffers, management must develop collaborative teams and break down silos
Larry Greiner's Growth Phases: Phase 5 - Collaboration - ANSWER No formal crisis
indicated, however EEs may grow exhausted by teamwork and pressure
Strategic Planning - ANSWER a process of defining the overall purpose and goals of the
org and how these goals will be achieved. Focuses on the org as a whole instead of a
particular product
Strategic Planning approach 1: Goals-based planning - ANSWER Focuses on the org's
mission, vision and values
Strategic Planning approach 2: Issues-based planning - ANSWER focuses on the issues
facing the org and determines steps to address the issues
, Strategic Planning approach 3: Organic planning - ANSWER focuses on a common
vision and values identifying best practices and methodologies in the org
Strategic Planning Process element 1: Plan the process - ANSWER stakeholders decide
on process, participants and time frame
Strategic Planning Process element 2: Study the environment - ANSWER stakeholders
utilize tools, such as SWOT, PEST, Porter's to identify the org current status
Strategic Planning Process element 3: formulate a strategy - ANSWER stakeholders
create and craft the orgs mission, values, goals and objectives
Strategic Planning Process element 4: implement the strategy - ANSWER stakeholders
define goals, establish budgets, build action plans and carry out plans
Strategic Planning Process element 5: Evaluate the strategy - ANSWER stakeholders
evaluate the strategy and periodically make adjustments
Mission Statement - ANSWER defies the purpose of an org (why we do what we do)
Vision Statement - ANSWER outlines the goals of the org and includes core values that
frame the perspective and guides its actions
SWOT - ANSWER looks at an orgs internal Strengths, Weaknesses, Opportunities and
Threats
PEST - ANSWER analyses how external Political, Economic, Social and Technological
forces may affect an org
Porter's 5 Forces - ANSWER Competition
Possibility of new entrants into the industry
