Principals, Agents, and Organizational Behavior
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Questions and Answers

Which theory emphasizes that organizations are influenced by their external environment and can face resource scarcity?

  • Cognitive Institutionalism
  • Resource Dependence Theory (correct)
  • Regulative Institutionalism
  • Social Exchange Theory
  • What does Cognitive Institutionalism focus on in relation to HRM practices?

  • Goal Misalignment
  • Formal rules and regulations
  • Monitoring and Control
  • Shared beliefs and cognitive frameworks (correct)
  • Which theory emphasizes creating HR policies that align with both organizational goals and employee interests?

  • Regulative Institutionalism
  • Cognitive Institutionalism
  • Social Exchange Theory (correct)
  • Resource Dependence Theory
  • According to Regulative Institutionalism, what influences HRM practices?

    <p>Compliance with laws and regulations</p> Signup and view all the answers

    Which principle emphasizes that organizations must adapt HRM practices to meet changing external factors?

    <p>Adaptation and Survival</p> Signup and view all the answers

    What type of resources can create dependencies for organizations based on the text?

    <p>Tangible and intangible resources</p> Signup and view all the answers

    What is one of the mechanisms that principals must implement to mitigate risks associated with delegation?

    <p>Investing in human capital</p> Signup and view all the answers

    How do HR practices focus on enhancing employees' abilities?

    <p>By investing in human capital</p> Signup and view all the answers

    What does the term 'motivation' involve in the context of employee performance?

    <p>Rewarding employees for good performance</p> Signup and view all the answers

    Which factor encompasses organizational structures and processes that provide employees with the chance to apply their abilities effectively?

    <p>Opportunity</p> Signup and view all the answers

    What directly contributes to individuals' productivity and performance?

    <p>Training and development</p> Signup and view all the answers

    Which aspect is crucial for principals to effectively mitigate risks associated with delegation?

    <p>Investing in human capital</p> Signup and view all the answers

    What is the main relationship described in the text between top management and employees?

    <p>Principal Agent Relationship</p> Signup and view all the answers

    In the context of Agency Theory, what does Information Asymmetry refer to?

    <p>When employees have more knowledge about their own capabilities than their managers</p> Signup and view all the answers

    What can lead to conflicts of interest between principals and agents according to the text?

    <p>Misalignment in goals between principals and agents</p> Signup and view all the answers

    How can Human Resource Management foster trust according to the text?

    <p>By promoting transparent communication and keeping promises regarding job security</p> Signup and view all the answers

    What should HRM policies aim to provide employees to increase job satisfaction and commitment?

    <p>Empowerment and control over work and career development</p> Signup and view all the answers

    What can result from employees perceiving inequity in the distribution of rewards?

    <p>Dissatisfaction and potential turnover</p> Signup and view all the answers

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