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 (A)</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 (D)</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 (C)</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 (D)</p> Signup and view all the answers

How do HR practices focus on enhancing employees' abilities?

<p>By investing in human capital (C)</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 (A)</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 (D)</p> Signup and view all the answers

What directly contributes to individuals' productivity and performance?

<p>Training and development (A)</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 (C)</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 (D)</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 (D)</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 (C)</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 (C)</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 (B)</p> Signup and view all the answers

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

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

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