Question : 61. _____ used to ensure that employee activities and outcomes congruent : 1250978

61. _____ is used to ensure that employee activities and outcomes are congruent with the organization’s objectives. 
A. An incentive
B. Training
C. Performance management
D. Development

Performance management is used to ensure that employees’ activities and outcomes are congruent with the organization’s objectives. It entails specifying those activities and outcomes that will result in the firm’s successfully implementing the strategy.

62. High-tech firms in the growth stage tend to use compensation systems that: 
A. are highly geared toward benefits.
B. devote a lower percentage of total pay to incentives.
C. are highly geared toward incentive pay.
D. devote equal percentages to pay and benefits.

High-tech companies in the growth stage used compensation systems that were highly geared toward incentive pay, with a lower percentage of total pay devoted to salary and benefits.

63. Which type of companies tend to use compensation systems devoting a lower percentage of total pay to incentives and a high percentage to benefits? 
A. Growing companies
B. Mature companies
C. Startup companies
D. Acquired companies

Mature companies (both high-tech and traditional) devoted a lower percentage of total pay to incentives and a high percentage to benefits.

64. Company X wants to become the lowest cost producer in the industry. What should it do? 
A. Construct efficient large-scale facilities.
B. Create a product that is different from others available in the market.
C. Invest heavily in branding their product.
D. Reduce expenditure on production facilities.

According to Porter, the “overall cost leadership” is achieved by constructing efficient large-scale facilities, by reducing costs through capitalizing on the experience curve, and by controlling overhead costs and costs in such areas as research and development, service, sales force, and advertising.

65. Apple computers come with their own proprietary operating systems. What kind of a strategy is this? 
A. Overall cost leadership
B. Differentiation
C. Reactor
D. Prospector

The “differentiation” strategy, according to Porter, attempts to create the impression that the company’s product or service is different from that of others in the industry.

66. What type of strategy is used by a firm that specifically defines required skills and seeks efficiency through worker participation? 
A. Cost
B. Differentiation
C. Focus
D. Analyzer

Companies engaged in cost strategies tend to specifically define the skills they require and invest in training employees in these skill areas.

67. IBM has consistently emphasized its brand image and its reputation for superior service while charging a higher price for its computers. This is an example of which one of Porter’s generic strategies? 
A. Overall cost leadership
B. Differentiation
C. Focus
D. Prospectors

The “differentiation” strategy, according to Porter, attempts to create the impression that the company’s product or service is different from that of others in the industry. The perceived differentiation can come from creating a brand image, from technology, from offering unique features, or from unique customer service.

68. A company engaged in a differentiation strategy is likely to focus on all but one of the following. Name the exception. 
A. Encourage creativity through broadly defined jobs with general job descriptions.
B. Engage in limited socialization of newcomers.
C. Promote internally, with internally consistent pay systems.
D. Develop results-based performance management systems.

Promoting internally, with internally consistent pay systems is an attribute of the companies engaged in cost strategies.

69. Employees in companies with a differentiation strategy would need to be: 
A. highly concerned with quantity.
B. comfortable with stability.
C. highly creative and cooperative.
D. risk averse.

Employees in companies with a differentiation strategy need to be highly creative and cooperative. Employees in these companies are expected to exhibit role behaviors that include cooperating with others, developing new ideas, and taking a balanced approach to process and results.

70. Company X develops results-based performance management systems and conducts divisional – corporate performance evaluations to encourage risk taking on the part of managers. Which strategy is this company following? 
A. Cost
B. External growth
C. Directional
D. Differentiation

Differentiation companies develop results-based performance management system and divisional – corporate performance evaluations to encourage risk taking on the part of managers.