Deck 2: Strategic Human Resource Management

Question 1

If you produce widgets in a factory,the rent you pay for the use of the factory would be considered a variable cost.
Blooms: Comprehension

Answer 1

False

Question 2

Strategic management is more than a collection of strategic types.It is a process to increase the likelihood of achieving a company's goals.

Answer 2

True

Question 3

Strategic decision makers often pay less attention to the "how to compete" issue,which results in poor strategic decisions.

Answer 3

False

Question 4

By tying pay to performance,a company can elicit specific activities and levels of performance from employees.
Blooms: Comprehension

Question 5

Concentration strategies traditionally include vertical and horizontal integration.

Question 6

Most strategies that companies espouse are intended strategies.

Question 7

A business model is a story of how the firm will create value for customers,and do so profitably.

Question 8

A company's strategy will have a direct impact upon the firm's recruitment efforts,but only an indirect impact on its selection procedures and the types of employees selected.
Blooms: Comprehension

Question 9

A customer orientation is one of the most important changes in the HRM function's attempts to become strategic.

Question 10

Increasing the use of HRM practices will automatically result in increased profitability.

Question 11

Strategic choice is the way an organization attempts to fulfill its mission and achieve its long-term goals.

Question 12

Untapped labour pools are an example of a strategic opportunity in an organization's operating environment.

Question 13

Strategic human resource management is a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

Question 14

Research indicates that downsizing has been largely successful in achieving goals of increased productivity and profitability.
Blooms: Comprehension

Question 15

Although one-way linkage does recognize the importance of human resources in implementing the strategic plan,it precludes the company from considering human resource issues while formulating the strategic plan.

Question 16

Jobholder actions are behaviours required of an individual in his/her role as a job holder in a social work environment.

Question 17

Research has indicated that a majority of companies have fully integrated HRM into the strategy formulation process.

Question 18

The down side of providing a high level of pay and benefits is that it can lead to employee complacency.

Question 19

Gross margin is difference between what you charge for your product and the variable costs of that product.

Question 20

According to research,HRM practices and employee performance are positively related.

Question 21

Reengineering involves incremental,ongoing changes and redesign to make work processes more cost efficient.

Question 22

Activities focused on identifying workforce morale issues or concerns pertain to the leader of the HR function.

Question 23

Jeff works as an HR generalist for an IT firm.Along with his other responsibilities,he has been entrusted with additional responsibilities which include performance and behavioural counseling.Which of the following roles would best describe Jeff?

A)Liaison to the board
B)Talent architect
C)Counsellor Confidante Coach
D)Strategic advisor

Question 24

_____ is the skillful employment and coordination of tactics.

A)Strategy
B)HRM
C)Business model
D)Structure

Question 25

The basic process of building HR strategy starts with scanning the internal environment.

Question 26

Strategy formulation involves all but one of the following.Name the exception.

A)Defining the firm's mission and goals
B)Assessing the firm's external opportunities and threats
C)Defining the firm's organizational structure
D)Generating various strategic alternatives

Question 27

Which of the following is NOT a step in two-way linkage?

A)The strategic planning team informs the HRM function of the various strategies the company is considering.
B)HRM executives analyze the HR implications of the various strategies,presenting the results of this analysis to the strategic planning team.
C)After a strategic planning decision has been made,the strategic plan is passed on to the HRM executive,who develops programs to implement it.
D)Top management makes decisions about strategies without input from functional managers.

Question 28

The analytic approach to evaluating HR effectiveness focuses exclusively on estimating the financial costs and benefits resulting from HR practice.

Question 29

The last step in the strategy formulation is:

A)establishment of corporate goals.
B)formulation of a statement of mission.
C)completion of an internal and external analysis.
D)strategic choice.

Question 30

Which is not one of the three divisions?

A)Field generalists
B)The center for outsourcing
C)Centers for expertise
D)The service center

Question 31

The first component in the strategy formulation process is:

A)establishment of corporate goals.
B)formulation of a statement of mission.
C)completion of an external analysis.
D)strategic choice.

Question 32

The audit approach to evaluating HR effectiveness focuses on reviewing the various outcomes of the HR functional areas.

Question 33

Strategic decision makers often pay less attention to the _____ issue,resulting in poor strategic decisions.

A)"when to compete"
B)"where to compete"
C)"how to compete"
D)"with what will we compete"

Question 34

The role of a strategic advisor entails sharing the people expertise as part of the decision-making process,as well as shaping how the human capital of the firm fits into its strategy.

Question 35

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.

Question 36

Outsourcing is usually done for one of the two reasons: to provide the service more cheaply than it would cost to do it internally,or to limit competition.

Question 37

Which of the following is essential if a company is to take advantage of emergent strategies?

A)A formal organizational structure
B)A weak corporate culture
C)An externally-based compensation system
D)An effective communications system

Question 38

The _____ approach focuses on either: (1)determining whether the introduction of a program or practice has the intended effect,or (2)estimating the financial costs and benefits resulting from an HRM practice.

A)wellness
B)audit
C)cost-benefit
D)analytic

Question 39

Fewer HR activities are being outsourced today than in past years.

Question 40

Some companies now heavily weigh a firm's _____ before embarking on a merger or acquisition.

A)operational efficiency
B)human capital
C)culture
D)infrastructure

Question 41

Company Z's appraisals tend to be more behavioural because the company environment is more certain and the behaviours necessary for effective performance are established.Which strategy is this company following?

A)Concentration strategy
B)Internal growth strategy
C)External growth strategy
D)Divestment strategy

Question 42

Firms that seek to scale down their operations are following a(n):

A)concentration strategy.
B)internal growth strategy.
C)external growth strategy.
D)divestment strategy.

Question 43

Which of the following statements is TRUE regarding strategy implementation?

A)HR has an influence over all the variables involved in the strategy implementation process.
B)HR is seldom involved in strategy implementation activities.
C)HR has primary responsibility for all five of the major components to strategy implementation.
D)HR practices are completely independent from strategy implementation.

Question 44

_____ levels of integration seem to exist between the HRM function and the strategic management function.

A)Two
B)Four
C)Five
D)Three

Question 45

For companies following a(n)_____ strategy,joint ventures require extensive training in conflict resolution techniques because of the problems associated with combining people from two distinct organizational cultures.

A)concentration
B)internal growth
C)external growth
D)divestment

Question 46

The purpose of the SWOT analysis is to:

A)choose the best strategy.
B)consider the downside of each strategic alternative.
C)generate a large number of strategic alternatives.
D)realign HR practices.

Question 47

Most _____ strategies are identified by those lower in the organizational hierarchy,where it is often the rank-and-file employees who provide ideas for new markets,new products,and new strategies.

A)concentration
B)directional
C)emergent
D)intended

Question 48

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

Question 49

Identify the role of a strategic advisor from the following.

A)Sharing the people expertise as part of the decision-making process.
B)Helping the executive team see the importance of talent.
C)Identifying present and future talent gaps,and coming to own the talent agenda.
D)Meeting with direct reports to provide guidance and check on progress.

Question 50

All of the following are strategy decisions about competition EXCEPT:

A)How long to compete?
B)Where to compete?
C)How to compete?
D)With what to compete?

Question 51

_____ consists of examining the organization's operating environment to identify the strategic opportunities and threats.

A)Strategic formulation
B)Internal analysis
C)External analysis
D)Strategic choice

Question 52

Increasing immigrant population is one of the functions of this stage in HR strategy process.

A)Identifying people issues
B)Scanning the external environment
C)Developing the HR strategy
D)Identifying strategic business issues

Question 53

The most prevalent HR problem for firms facing external growth strategies is:

A)hiring the right people.
B)standardizing practices across the organization.
C)finding the right companies to purchase.
D)determining the fair-market price of acquisitions.

Question 54

_____ strategies are the result of the rational decision-making process used by top managers as they develop a strategic plan.

A)Emergent
B)Intended
C)Divergent
D)Accidental

Question 55

Which of the following strategies evolves from the grassroots of an organization and can be thought of as what organizations actually do?

A)Concentration
B)Directional
C)Emergent
D)Intended

Question 56

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.

Question 57

What type of strategy is used by a firm that focuses on what it does best within established markets?

A)Concentration
B)Internal growth
C)External growth
D)Divestment

Question 58

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

Question 59

_____ attempts to identify the organization's strengths and weaknesses.

A)Strategic formulation
B)Internal analysis
C)External analysis
D)Strategic choice

Question 60

A recent trend in HR that is consistent with a total quality management philosophy emphasizes

A)efficiency in delivering programs.
B)cost reduction of HR functions.
C)functional approaches in delivering HR programs.
D)a customer-oriented approach in delivering HR programs.

Question 61

_____ can be thought of as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

A)HRM
B)Strategy implementation
C)Strategic HRM
D)Strategy formulation

Question 62

Which one of the following is NOT an internal growth strategy?

A)Vertical integration
B)Market development
C)Joint venture
D)Innovation

Question 63

Integrative linkage is:

A)dynamic,multifaceted,and based on continuing rather than sequential interaction.
B)dynamic,multifaceted,and based on sequential rather than continuing interaction.
C)simple,based on a single rather than continuing interaction.
D)simple,based on a continuing rather than single interaction.

Question 64

In which type of an organization do employees expand their capacity to achieve the results that they desire?

A)Diversified organizations
B)Emergent organizations
C)Learning organizations
D)Strategic organizations

Question 65

Melissa is an HR manager.She has been recently promoted.Some of the activities her new role entails are engaging with the board of directors,performance of other members of the executive team,CEO succession.What is the Melissa's new role?

A)Representative of the firm
B)Liaison to the board
C)Leader of the HR function
D)Strategic advisor

Question 66

HRM is primarily responsible for three of the following variables in the strategy implementation process.Identify the exception.

A)Selection,training,and development of people
B)Task design
C)Reward systems
D)Customer awareness

Question 67

Evaluation helps determine whether the HRM function is meeting its objectives and effectively using its budget.This refers to

A)auditing.
B)providing accountability.
C)marketing the function.
D)employee selection.

Question 68

Which is the lowest level of integration between the HRM function and the strategic management function?

A)Administrative linkage
B)Two-way linkage
C)Integrative linkage
D)Executive linkage

Question 69

What is the name of the process that manages the pattern or plan that integrates an organization's major goals,policies,and action sequences into a cohesive whole?

A)Long-range planning
B)Strategy implementation
C)Management by objectives
D)Strategic management

Question 70

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.

Question 71

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.

Question 72

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)Start-up companies
D)Acquired companies

Question 73

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

Question 74

The audit approach for evaluating the effectiveness of HR practices focuses on

A)determining whether the HR program practice has the intended effect.
B)estimating the financial costs and benefits resulting from an HR practice.
C)reviewing the various outcomes of the HR functional area.
D)determining the dollar value of a program.

Question 75

What is a story of how the firm will create value for customers and how it will do so profitably?

A)Business planning
B)Business model
C)Strategic management
D)Strategy

Question 76

In an organization,a strategic planning group consists of all but one of the following.Name the exception.

A)Chief executive officer
B)Presidents
C)Regional business head
D)Chief financial officer

Question 77

Which of the following statements pertains to the audit approach?

A)Key indicators and customer satisfaction measures are important in this approach.
B)This approach deals with the determination of the impact of the dollar value.
C)It involves the use of statistics and finance and hence it is more demanding.
D)It uses utility analysis to estimate the financial impact of the employee behaviour.

Question 78

_____ involves contracting with an outside vendor to provide a product or service to a firm,as opposed to producing the product using employees within the firm.

A)Offshoring
B)Importing human capital
C)Outsourcing
D)Transferring human capital

Question 79

This role deals with identifying the morale or motivational issues with the employees.

A)Leader of the HR function
B)Representative of the firm
C)Strategic advisor
D)Workforce sensor

Question 80

This meets the needs of both the line managers and employees by giving employees opportunities to ensure that they increase their human capital.

A)Selection systems
B)Training and development systems
C)Performance management systems
D)Reward systems