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Explanation
DETAILED, EXAM-READY MODEL ANSWERS
Recruitment increases the number and quality of applicants through internal or external sources.
CHAPTER 9 – MANAGING HUMAN RESOURCES
Selection involves screening applications, conducting interviews, and using tests to
evaluate candidates’ skills, abilities, and organizational fit.
The objective is to achieve both person–job fit and person–organization fit .
1. Human Resource Management (HRM) Implication Definition
Poor recruitment and selection decisions result in high turnover, low performance,
Human Resource Management (HRM) is the set of organizational activities
and increased training costs. Effective hiring improves employee performance,
designed to attract, develop, motivate, and retain employees in order to achieve
organizational stability, and long-term success. organizational goals. Explanation 3. Human Resource Planning
HRM includes several key activities.
First, human resource planning forecasts future labor demand and supply. Definition
Second, recruitment and selection ensure that the organization hires employees
with the appropriate skills and values.
Human resource planning is the process of forecasting an organization’s future
Third, training and development enhance employees’ capabilities and prepare
demand for and supply of employees.
them for future responsibilities.
Fourth, performance appraisal evaluates employee performance and provides Explanation feedback.
HR planning ensures that the organization has the right number of employees with
Finally, compensation and benefits reward employees for their contributions.
the right skills at the right time. It involves analyzing current workforce capabilities
These activities align individual performance with organizational strategy and ensure
and anticipating future needs based on organizational strategy.
efficient utilization of human capital. Implication Implication
Effective HR planning supports organizational effectiveness and long-term strategy
HRM is critical to organizational success because employees are a primary source
by preventing labor shortages or surpluses. Poor planning disrupts operations and
of productivity and competitive advantage. Effective HRM improves performance, increases costs.
reduces turnover, and supports strategy implementation. Poor HRM leads to skill
shortages, low morale, and organizational failure. 4. Performance Appraisal Definition 2. Recruitment and Selection
Performance appraisal is the systematic evaluation of employee job performance. Definition Explanation
Recruitment is the process of attracting qualified candidates to apply for job
openings, while selection is the process of choosing the most suitable candidate from the applicant pool.
Performance appraisal provides feedback to employees, identifies strengths and
● Surface-level diversity includes observable traits such as age and gender
weaknesses, and supports decisions related to promotion, compensation, and
and often leads to stereotypes.
training. It clarifies performance expectations and standards.
● Deep-level diversity includes values, beliefs, and attitudes and becomes more influential over time. Implication
Diversity affects communication, teamwork, and decision making.
When conducted fairly, performance appraisal increases motivation, improves
performance, and supports employee development. Poor appraisal systems reduce Implication trust and morale.
When managed effectively, diversity enhances creativity and problem solving. When
poorly managed, it causes conflict and misunderstanding. 5. Compensation and Benefits Definition 7. Diversity Management
Compensation and benefits refer to all financial and non-financial rewards Definition
provided to employees in exchange for their work.
Diversity management is the process of creating an organizational environment in Explanation
which all employees can contribute fully regardless of differences.
Compensation includes wages, salaries, and bonuses, while benefits include Explanation
insurance, paid leave, and retirement plans. Reward systems influence motivation by
linking performance to valued outcomes.
Managers face challenges such as stereotypes, discrimination, and communication
barriers. Effective diversity management involves inclusive leadership, fair HR Implication
practices, and diversity training.
Effective compensation systems attract, motivate, and retain employees. Inadequate Implication
rewards lead to dissatisfaction, turnover, and reduced performance.
Successful diversity management improves employee satisfaction and organizational
performance. Failure increases conflict and legal risk.
CHAPTER 10 – MANAGING DIVERSITY
8. Advantages and Disadvantages of Diversity 6. Workforce Diversity Explanation
Advantages include increased creativity, better decision making, and improved Definition
understanding of diverse markets.
Workforce diversity refers to differences among employees in characteristics such
Disadvantages include communication problems, conflict, and reduced cohesion.
as gender, age, race, culture, values, and attitudes. Implication Explanation
Managers can maximize benefits by promoting inclusion, encouraging open
communication, and addressing bias proactively. Definition
Expectancy theory states that motivation depends on the belief that effort leads to
CHAPTER 11 – MANAGING INDIVIDUAL BEHAVIOR
performance and performance leads to valued rewards. Explanation
9. Individual Behavior in Organizations The theory includes: Definition
● Expectancy : effort → performance
● Instrumentality : performance → reward
Individual behavior refers to how employees think, feel, and act within
● Valence : value of reward organizational settings.
Motivation is high only when all three are strong. Explanation Implication
Behavior is influenced by attitudes, perception, personality, and motivation. These
factors shape how employees respond to tasks, leadership, and rewards.
Managers should clarify expectations, link rewards to performance, and offer meaningful incentives. Implication
Understanding individual behavior allows managers to predict performance and
design effective management practices. 12. Job Satisfaction Definition 10. Motivation
Job satisfaction is the degree to which employees feel positively or negatively about their jobs. Definition Explanation
Motivation is the set of forces that determine the direction, intensity, and persistence of effort at work.
It is influenced by pay, supervision, work conditions, and career opportunities. Explanation Implication
Motivation influences how hard employees work, how long they persist, and which
High job satisfaction reduces turnover and absenteeism and improves performance.
goals they pursue. Motivated employees demonstrate higher performance and
Low satisfaction harms organizational effectiveness. commitment. Implication
13. Organizational Commitment
Managers who understand motivation can improve productivity and engagement.
Low motivation leads to absenteeism and turnover. Definition
Organizational commitment is the extent to which employees identify with and are loyal to their organization. 11. Expectancy Theory Explanation Implication
Committed employees are more willing to exert effort and remain with the
Managers must support teams through structure, leadership, and conflict organization. management. Implication
High commitment improves retention and performance, reducing recruitment and 16. Social Loafing training costs. Definition
Social loafing occurs when individuals exert less effort in a group than when working alone.
CHAPTER 12 – MANAGING TEAMS Explanation 14. Groups vs. Teams
It occurs due to lack of accountability and unclear performance standards. Definition Implication
A group consists of individuals working independently, while a team consists of
Managers can reduce social loafing by clarifying roles and evaluating individual
individuals with complementary skills committed to a shared goal and mutual contributions. accountability. Explanation 17. Groupthink
Teams emphasize collaboration and shared responsibility, whereas groups focus on individual performance. Definition Implication
Groupthink is a condition in which pressure for consensus overrides critical evaluation of alternatives.
Teams are more effective for complex, interdependent tasks. Explanation
It occurs when teams value harmony over sound decision making. 15. Team Effectiveness Implication Definition
Groupthink leads to poor decisions and should be prevented through open
Team effectiveness is the extent to which a team achieves its goals and satisfies
discussion and critical thinking. member needs. Explanation CHAPTER 14 – CONTROL
Key factors include clear goals, trust, communication, appropriate leadership, and accountability. 18. Control in Management Implication Definition
Managers can reduce resistance through transparency, participation, and fair systems.
Control is the process of regulating organizational activities to ensure performance aligns with goals. Explanation 21. Strategy and Control
The control process includes: Explanation 1. Establishing standards
Control ensures strategies are implemented effectively. Strategic control monitors 2. Measuring performance
whether strategies remain appropriate as environments change.
3. Comparing results with standards 4. Taking corrective action Implication Implication
Strategic control is essential in dynamic environments to maintain competitiveness and adaptability.
Control ensures efficiency, consistency, and goal achievement.
─── ⋆⋅ ⋅⋆ ─── 19. Types of Control Definition & Explanation
● Operations control monitors production and service processes
● Financial control manages financial resources
● Structural control evaluates organizational design
● Strategic control ensures strategies remain effective Implication
Different controls support performance at different organizational levels. 20. Resistance to Control Definition
Resistance to control refers to employee opposition to monitoring and evaluation systems. Explanation
Resistance arises from fear of evaluation, loss of autonomy, and distrust. Question and Answer QUESTION 2
Define recruitment and selection. Explain how these processes work and
CHAPTER 9 – MANAGING HUMAN RESOURCES
analyze the consequences of poor hiring decisions. Answer QUESTION 1
Recruitment is the process of attracting qualified individuals to apply for job
openings, while selection is the process of choosing the most suitable candidate
Define Human Resource Management (HRM). Explain the main HRM activities from the applicant pool.
and discuss why HRM is critical to organizational success.
Recruitment aims to create a pool of qualified applicants by using internal sources Answer
(such as promotions and transfers) or external sources (such as job portals,
universities, and social media). A strong recruitment process ensures that the
Human Resource Management (HRM) is the set of organizational activities
organization has enough candidates with diverse skills and backgrounds. Selection
designed to attract, develop, motivate, and retain employees in order to achieve
then evaluates these candidates using application screening, interviews, tests, and
organizational goals. HRM focuses on managing people as valuable organizational
reference checks. The objective is to achieve person–job fit , meaning the
assets rather than merely as labor costs.
employee’s skills match job requirements, and person–organization fit , meaning
the employee’s values align with organizational culture.
HRM consists of several key and interrelated activities.
First, human resource planning ensures that the organization has the right
Poor hiring decisions have serious consequences. Employees who lack the required
number of employees with the appropriate skills by forecasting future labor demand
skills or cultural fit often perform poorly, require excessive supervision, or leave the
and supply. Second, recruitment and selection aim to attract qualified applicants
organization quickly. This increases recruitment and training costs and disrupts team
and choose individuals who best fit both the job requirements and organizational
performance. In the long term, repeated poor hiring damages organizational culture,
culture. Third, training and development improve employees’ skills, knowledge,
lowers morale among existing employees, and weakens organizational performance.
and abilities while preparing them for future responsibilities. Fourth, performance
appraisal evaluates employee performance, provides feedback, and supports Real-life example:
decisions related to promotion, compensation, and development. Finally,
Globally, Uber faced early problems due to poor selection of managers who
compensation and benefits reward employees for their contributions and influence
tolerated unethical behavior. This resulted in cultural issues, legal problems, and
motivation, satisfaction, and retention.
reputational damage. The case illustrates how ineffective recruitment and selection
can harm not only performance but also organizational image and sustainability.
HRM is critical to organizational success because employees are a primary source
of productivity, innovation, and competitive advantage. Even with advanced
technology and capital, organizations cannot succeed without capable and motivated
people. Effective HRM leads to higher performance, stronger commitment, lower QUESTION 3
turnover, and better strategy implementation. In contrast, poor HRM results in skill
shortages, low morale, high employee turnover, and strategic failure.
What is human resource planning? Explain its role in organizational
effectiveness and long-term strategy. Real-life example:
At Viettel Group , HRM plays a strategic role in developing technical talent and Answer
leadership capabilities. Viettel invests heavily in training programs and internal talent
development, which allows the company to innovate continuously and compete
Human resource planning is the process of forecasting an organization’s future
globally in telecommunications and technology markets. This demonstrates how
demand for and supply of employees.
effective HRM directly supports long-term organizational success.
HR planning involves analyzing the current workforce, identifying skill gaps, and
predicting future staffing needs based on strategic goals. For example, if an
organization plans to expand into new markets or adopt new technology, HR
Define compensation and benefits. Explain how reward systems influence
planning ensures that employees with appropriate expertise are available.
employee behavior and retention.
Human resource planning plays a critical role in organizational effectiveness by Answer
ensuring smooth operations and preventing labor shortages or surpluses. From a
strategic perspective, HR planning aligns human capital with long-term objectives,
Compensation and benefits refer to all financial and non-financial rewards
enabling sustainable growth and adaptability. Without effective HR planning,
provided to employees in exchange for their work.
organizations may face operational disruptions, increased costs, and an inability to
Compensation includes salaries, wages, and bonuses, while benefits include execute strategy.
insurance, paid leave, and retirement plans. Reward systems influence behavior by Vietnam example:
linking performance to valued outcomes. When employees perceive rewards as fair
Vietnam Airlines uses workforce planning to ensure it has enough trained pilots,
and meaningful, they are more motivated and committed.
engineers, and service staff to support route expansion. Without careful HR
planning, flight operations and service quality would be seriously affected.
Effective compensation systems attract talent, encourage high performance, and
reduce turnover. Poor compensation leads to dissatisfaction, low morale, and high employee turnover. Vietnam example: QUESTION 4
Many Vietnamese tech firms, such as FPT Software , use competitive salaries and
Define performance appraisal. Explain its purposes and discuss how it
performance-based bonuses to retain skilled engineers in a highly competitive labor
supports employee motivation and development. market. Answer
Performance appraisal is the systematic evaluation of employee job performance
CHAPTER 10 – MANAGING DIVERSITY
based on established standards.
(High probability: 1 question in final exam)
The purposes of performance appraisal include providing feedback, identifying
strengths and weaknesses, determining promotions and compensation, and
identifying training needs. A well-designed appraisal system clarifies performance
expectations and aligns employee efforts with organizational goals. QUESTION 1
Performance appraisal supports employee motivation by recognizing achievements
Explain why diversity can simultaneously improve organizational performance
and linking performance to rewards. It also supports development by identifying skill
and increase conflict. How should managers respond to this paradox?
gaps and providing opportunities for learning and growth. However, if appraisals are
biased or unclear, they reduce trust and demotivate employees. Answer Example:
Workforce diversity can improve organizational performance by increasing creativity,
At Unilever , performance appraisal is closely tied to leadership development.
innovation, and problem-solving quality. Employees from different backgrounds bring
Employees receive continuous feedback and coaching, which enhances motivation
diverse perspectives, experiences, and cognitive approaches, which allows and prepares future leaders.
organizations to generate more alternative solutions and avoid groupthink.
However, diversity can also increase conflict, particularly in the early stages of group
interaction. Differences in language, communication styles, values, and expectations QUESTION 5
may lead to misunderstandings, stereotypes, and interpersonal tension. These
challenges are especially evident when surface-level diversity (such as age, gender, QUESTION 3
or ethnicity) leads to social categorization and in-group versus out-group dynamics.
Explain how stereotypes and prejudice affect decision making in diverse
Managers should respond to this paradox through effective diversity management ,
organizations. What can managers do to reduce their impact?
not by avoiding diversity. This includes fostering an inclusive culture, providing
diversity training, encouraging open communication, and focusing on shared goals. Answer
Over time, as employees move beyond surface-level differences and recognize
Stereotypes are simplified beliefs about groups, while prejudice refers to negative
deep-level similarities, the positive effects of diversity tend to outweigh the negative
attitudes toward individuals based on group membership. In organizations, ones.
stereotypes and prejudice distort managerial decision making by influencing hiring, Example:
promotion, performance evaluation, and team assignment.
At Unilever , global teams initially face cultural differences, but structured inclusion
Managers may unconsciously favor individuals who are similar to themselves,
programs and cross-cultural leadership training help transform diversity into a competitive advantage.
leading to biased decisions and underutilization of talent. This reduces organizational
effectiveness and damages employee morale and trust.
Managers can reduce these effects by using structured decision processes,
objective performance criteria, diversity awareness training, and accountability QUESTION 2
mechanisms. Encouraging diverse decision-making teams also helps challenge
Discuss the role of organizational culture in managing workforce diversity. biased assumptions.
Why is culture more important than policies alone? Answer
CHAPTER 11 – MANAGING INDIVIDUAL BEHAVIOR
Organizational culture plays a central role in managing workforce diversity because it
shapes daily behavior, attitudes, and informal norms. While diversity policies
(Very high probability: motivation or behavior question)
establish formal rules, culture determines whether those rules are genuinely practiced.
A culture that values respect, inclusion, and fairness encourages employees to QUESTION 4
appreciate differences rather than fear them. In contrast, an organization may have
formal diversity policies but still experience discrimination or exclusion if managers
Explain how personality and attitudes influence individual behavior at work. tolerate bias or favoritism.
Why should managers care about these factors?
Culture is more powerful than policies because employees learn expected behavior Answer
through observation, leadership actions, and social interactions. When leaders
consistently model inclusive behavior, diversity becomes embedded in the
Personality refers to relatively stable traits that influence how individuals think, feel,
organization’s identity rather than treated as a compliance requirement.
and behave. Attitudes are evaluative statements about objects, people, or events,
such as job satisfaction and organizational commitment. Vietnam example:
Multinational companies operating in Vietnam, such as Nestlé , emphasize inclusive
Personality affects how employees respond to stress, teamwork, leadership, and
culture through leadership behavior and continuous dialogue, not only written
change. For example, employees with proactive personalities are more likely to take diversity policies.
initiative, while those with high emotional stability handle pressure better. Attitudes
influence motivation, absenteeism, turnover, and performance.
Managers should care about personality and attitudes because they help predict
Satisfied employees are more likely to be committed, cooperative, and less likely to
behavior and performance. By understanding these factors, managers can design
quit. However, satisfaction alone does not guarantee high performance. Performance
jobs, assign roles, and provide motivation strategies that align with individual
also depends on ability, resources, leadership, and clear goals. differences.
The strongest relationship occurs when satisfaction is linked to meaningful work, Example:
recognition, and fair rewards. Managers should therefore design jobs and reward
Sales roles often suit employees with extroverted and achievement-oriented
systems that connect satisfaction with performance outcomes.
personalities, while analytical roles suit individuals with high conscientiousness.
CHAPTER 12 – MANAGING TEAMS QUESTION 5
(Extremely common final exam chapter)
Critically evaluate the limitations of expectancy theory. Why does motivation
sometimes fail even when rewards are attractive? QUESTION 7 Answer
Explain the stages of team development. How should managers lead teams at each stage?
Expectancy theory assumes that employees are rational decision makers who
consciously evaluate effort, performance, and rewards. However, motivation Answer
sometimes fails because these assumptions do not always hold true.
Teams typically progress through five stages: forming, storming, norming,
Employees may lack confidence in their abilities (low expectancy), distrust performing, and adjourning.
management promises (low instrumentality), or value rewards differently (low
valence). Additionally, emotions, habits, social pressure, and organizational politics
During the forming stage, members are polite but uncertain; managers should
can influence behavior beyond rational calculation.
provide direction and clarify goals. In the storming stage, conflict arises; managers
must manage disagreements constructively. In the norming stage, trust and
Therefore, even attractive rewards may fail to motivate if employees believe
cooperation develop; managers should encourage participation. In the performing
performance is uncontrollable or rewards are unfairly distributed. Managers must
stage, teams function effectively; managers should delegate and support. Finally,
address psychological perceptions, not just reward size.
during adjourning , managers should recognize contributions and manage transitions.
Effective leadership requires adapting management style to each stage. QUESTION 6
Explain the relationship between job satisfaction and performance. Is a
satisfied employee always a high performer? QUESTION 8 Answer
Why do teams sometimes make worse decisions than individuals? Explain
using groupthink and social loafing.
Job satisfaction refers to the degree to which individuals feel positively about their
jobs. While satisfaction and performance are related, the relationship is not perfectly Answer direct.
Teams may make poor decisions due to groupthink , where the desire for consensus
suppresses critical thinking, and social loafing , where individuals exert less effort in group settings.
Groupthink reduces decision quality by discouraging dissent and alternative Example:
viewpoints. Social loafing lowers productivity because individual contributions
Even highly skilled engineers at Apple operate under strict quality and design become less visible.
controls to maintain product standards.
Managers can prevent these problems by encouraging open debate, assigning
individual accountability, and creating psychological safety. QUESTION 11
Compare strategic control with operational control. Why is strategic control QUESTION 9
increasingly important today?
Discuss the role of leadership in team effectiveness. Why is leadership more Answer
complex in teams than for individuals?
Operational control focuses on short-term activities and efficiency, while strategic Answer
control monitors whether the organization’s strategy remains effective in a changing environment.
Team leadership is more complex because leaders must manage interpersonal
relationships, resolve conflicts, coordinate tasks, and motivate collective
Strategic control is increasingly important due to rapid technological change,
performance. Unlike individual supervision, team leadership requires balancing task
globalization, and uncertainty. Organizations must continuously assess whether their and relationship roles.
strategies align with external conditions.
Effective team leaders establish clear goals, facilitate communication, manage Example:
conflict, and empower members. Poor leadership leads to confusion, conflict, and
Netflix uses strategic control to shift from DVD rentals to streaming and content low performance. production. QUESTION 12 CHAPTER 14 – CONTROL
Explain how excessive control can harm organizational performance. How can
(Almost guaranteed in final exam)
managers find the right balance? Answer QUESTION 10
Excessive control reduces employee autonomy, creativity, and motivation. It signals
distrust and increases resistance. However, insufficient control leads to chaos and
Explain why control is necessary even when employees are highly skilled and inefficiency. motivated.
Managers must balance control by using outcome-based controls, empowering Answer
employees, and focusing on critical performance indicators rather than
Control is necessary because even skilled and motivated employees may deviate micromanaging.
from goals due to unclear expectations, environmental uncertainty, or coordination
─── ⋆⋅ ⋅⋆ ───
problems. Control systems provide feedback, ensure consistency, and support strategy execution.
Without control, organizations risk inefficiency, quality problems, and strategic drift.