MGMT Exam 1 Review (updated)
questions and correct answers
List and describe the components of Porter's Strategy typology - ANS ✔✔- 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" - ANS ✔✔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 - ANS ✔✔Core Capabilities must be: Valuable, Rare,
Inimitable, Organized
Identify the two dimensions along which human capital differs according to the human capital
architecture - ANS ✔✔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 -
ANS ✔✔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 -
ANS ✔✔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 - ANS ✔✔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 - ANS
✔✔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
questions and correct answers
List and describe the components of Porter's Strategy typology - ANS ✔✔- 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" - ANS ✔✔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 - ANS ✔✔Core Capabilities must be: Valuable, Rare,
Inimitable, Organized
Identify the two dimensions along which human capital differs according to the human capital
architecture - ANS ✔✔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 -
ANS ✔✔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 -
ANS ✔✔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 - ANS ✔✔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 - ANS
✔✔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
