HRM141 - STRAMA WITH TQM QUIZ 1

Strategic management helps determine the long-term performance of an organization.  Strategic management is also known as business policy.

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The origins of strategic management are linked to the military.  The word strategy comes from the Latin word “strategia.”

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Strategic management was viewed as a general perspective with emphasis on the role of the leader in the 1950s-60s.  In the 1980s, the focus shifted to the development of organizational culture.

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Corporate social responsibility became a focal point in the 1980s. Globalization had a significant impact on strategic management in the 1990s.

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Policies are specific rules for day-to-day operations in an organization. Tactics are comprehensive plans to achieve organizational goals

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The resource-based view suggests that firms can gain competitive advantage through possessing superior resources. Financial resources are the only type of resources considered in the resource-based view.

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The traditional perspective of strategic management involves analyzing the internal and external environments of the company. The traditional perspective considers organizational strengths and weaknesses.

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The stakeholder approach to strategic management was developed in response to increasing levels of complexity and change in the external environment. Stakeholder theory expands a company’s responsibility beyond just stockholders to include all groups or individuals who significantly affect or are significantly affected by the company’s activities.

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According to the resource-based view, an organization is not a bundle of resources, including financial, physical, and human resources. Organizational knowledge and learning are not considered resources in the resource-based view.

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The traditional perspective of strategic management assumes that the environment is the primary determinant of the best strategy. This view is known as environmental determinism.

• 1. All statements are true. 

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• First statement is true, second statement is false.

• First statement is false, second statement is true.