Deck 3: Human Resource Management Strategy and Analysis

Question 1

Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning.

Answer 1

False
Explanation: Under the hierarchy of goals approach to strategic planning, goals are set at the top of a company by the president or CEO. Goals then flow downward to the lowest-ranked managers and employees.

Question 2

A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members.

Answer 2

False
Explanation: A firm's mission statement answers the question, "What business are we in?" Managers use mission statements to pinpoint whether and how the firm will vertically integrate, as well as the firm's product scope, geographic coverage, and competitive advantage.

Question 3

________ involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan.

A)The management planning process
B)Financial auditing
C)Employee testing
D)Employee benchmarking

Answer 3

A
Explanation: A)The basic management planning process involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan. Planning is always goal-directed.

Question 4

John wants to perform external and internal audits as part of the strategic management process. What is a frequently used tool to organize relevant information on positive and negative aspects of the company and environment?

A)BCG matrix
B)QSPM matrix
C)SWOT chart
D)EPS/EBIT table

Question 5

What is the first step in the basic planning process?

A)evaluating the possible alternatives
B)implementing a course of action
C)setting an objective
D)comparing options

Question 6

A vision statement is broader and more future-oriented than a mission statement.

Question 7

What is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage?

A)strategic plan
B)situation analysis
C)SWOT analysis
D)tactical plan

Question 8

Which term indicates the course of action for getting from where you are to where you want to go?

A)goal
B)plan
C)proposition
D)assessment

Question 9

Steps in the basic management planning process include setting objectives, reviewing alternative courses of action, and evaluating which options are best.

Question 10

Which of the following is a simple guide used to compile relevant information about a company's environment including economic, competitive, and political trends that may affect a firm?

A)workforce requirement matrix
B)environmental scan worksheet
C)external resource system table
D)potential globalization network

Question 11

________ defines the nature of the company's business in terms of how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.

A)Financial auditing
B)Strategic planning
C)Employee benchmarking
D)Employee testing

Question 12

Which of the following is NOT part of the basic managerial planning?

A)evaluation of best options
B)establishment of clear objectives
C)implementation of the plan
D)building corporate hierarchies

Question 13

Which of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"?

A)mission statement
B)strategic plan
C)vision statement
D)marketing plan

Question 14

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?

A)evaluating the firm's internal and external strengths
B)defining the business and its mission
C)choosing specific strategies or courses of action
D)evaluating the strategic plan

Question 15

What is the first step in the strategic management process?

A)formulating a strategy
B)asking, "Where are we now as a business?"
C)evaluating the strategic plan
D)implementing an environmental scan

Question 16

Strategy is a course of action.

Question 17

All of the following are steps involved in the strategic management process EXCEPT ________.

A)evaluating the firm's internal and external situation
B)asking, "Where are we now as a business?"
C)formulating a new business direction
D)offshoring low-skill jobs

Question 18

Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its ________.

A)environmental demands
B)competitive standards
C)natural resources
D)hierarchical skills

Question 19

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.

A)vision
B)goal
C)strategy
D)mission

Question 20

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.

A)mission statement
B)strategic plan
C)code of ethics
D)vision statement

Question 21

Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following, if true, would best support the argument that Sweet Leaf Tea should implement a corporate-level strategy of concentration?

A)Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.
B)Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.
C)Market data suggests that customers really only want the tea itself, not related products.
D)Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on regional grocery-store chains rather than big box national retailers.

Question 22

Explain the difference between a firm's vision and its mission. How might these impact the actions of an organization?

Question 23

Which of the following refers to any factors that allow a company to differentiate its product or service from those of its competitors to increase market share?

A)functional strategy
B)competitive advantage
C)distinctive competency
D)related diversification

Question 24

What is strategic management? List and explain each step in the strategic management process.

Question 25

Which of the following strategies identifies the broad activities that each department will pursue in order to help a business attain its competitive goals?

A)competitive
B)business-level
C)corporate-level
D)functional

Question 26

The 2008 announcement by Starbucks that it would be closing approximately 600 of its stores suggests the firm was using a ________ strategy.

A)consolidation
B)diversification
C)geographic expansion
D)vertical integration

Question 27

A company's business-level strategy identifies the ________.

A)ways to strengthen a firm's long-term competitive position in the marketplace
B)tools for diversifying a business portfolio through the acquisition of MNEs
C)means to becoming a low-cost leader within a highly competitive industry
D)ways to carve out a market niche in order to compete for high-end customers

Question 28

Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation?

A)New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the bottles.
B)Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs.
C)Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at competitive prices.
D)Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers of all ages.

Question 29

A diversification corporate strategy implies that a firm will ________.

A)expand by adding new product lines
B)reduce the company's size to increase market share
C)save money by producing its own raw materials
D)increase profits by offering one popular product

Question 30

Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following, if true, would most likely undermine the argument that Sweet Leaf Tea should implement a corporate-level strategy of vertical integration?

A)Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.
B)Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor of tea.
C)Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience stores.
D)Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so that the company can keep prices low.

Question 31

Which of the following activities most likely indicates that a firm is implementing a vertical integration strategy?

A)selling unprofitable divisions
B)producing raw materials
C)aggressively selling a new product
D)purchasing a competitor's firm

Question 32

A company's ________ strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.

A)functional
B)corporate-level
C)horizontal
D)competitive

Question 33

Winchester Rugs operates a Web site called www.buyrugsdirect.com, so Winchester Rugs is most likely using a strategy of ________.

A)consolidation
B)geographic expansion
C)vertical integration
D)concentration

Question 34

Why is strategic planning important to managers? Explain the importance of setting hierarchical goals.

Question 35

A firm's functional strategies identify the broad activities that each ________ will do in order to help the business accomplish its strategic goals.

A)supplier
B)department
C)executive
D)employee

Question 36

Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is pursuing which of the following strategies?

A)consolidation
B)geographic expansion
C)diversification
D)horizontal integration

Question 37

When Apple opened its own Apple stores, this was an example of ________.

A)market penetration
B)concentration
C)vertical integration
D)consolidation

Question 38

Strategic management focuses more on translating a mission into goals than on the functions of organizing, staffing, and controlling.

Question 39

A company's ________ strategy identifies the portfolio of businesses that comprise a firm and the ways in which these businesses relate to each other.

A)functional
B)business unit
C)corporate-level
D)competitive

Question 40

Companies like Ferrari are known as ________ because they carve out a market niche and compete by providing a product that customers can attain in no other way.

A)cost leaders
B)focusers
C)visionaries
D)market leaders

Question 41

Identify the three levels of strategic planning and describe the function of each level. What is the relationship between human resource strategy and a firm's strategic plans?

Question 42

In a brief essay, describe the three types of competitive strategies that firms use to achieve competitive advantage. Support your answer with examples of organizations that currently use each of the strategies.

Question 43

In order to generate the desired workforce skill, competencies, and behaviors that a firm needs to achieve its strategic goals, human resource management must first develop ________.

A)strategic plans
B)HR policies
C)employee skills
D)company norms

Question 44

What is the primary reason that mergers and acquisitions fail?

A)technology
B)financing
C)personnel
D)stock prices

Question 45

Lauren is identifying what each department in her company must do to help the business accomplish its strategic goals. These are known as ________ strategies.

A)competitive advantage
B)competitive
C)functional
D)vertical integration

Question 46

All of the following are services that human resource consulting companies provide during mergers and acquisitions EXCEPT ________.

A)aligning compensation programs
B)overseeing database recovery systems
C)helping to determine which employee is best for which role in the new organization
D)identifying key talent and suitable retention strategies

Question 47

Managers engage in three levels of strategic planning.

Question 48

Critical human resource tasks during mergers and acquisitions include all the following EXCEPT:

A)retaining key talent
B)merging the firms' cultures
C)choosing top management
D)enforcing current rules

Question 49

Consolidation keeps the company's strategy up to date by assessing progress toward strategic goals and taking corrective action as needed.

Question 50

John is a manager is looking at HR scorecard data through a ________, which presents the manager with desktop graphs and charts, showing a computerized picture of how the company is doing on all the metrics from the HR scorecard process.

A)digital dashboard
B)strategy map
C)HR audit
D)mission plan

Question 51

Human resource strategies are the ________ used to support a firm's strategic goals.

A)visions and objectives
B)policies and practices
C)missions and goals
D)theories and tools

Question 52

A vertical integration strategy means that a firm will expand by adding new product lines.

Question 53

A business-level strategy is implemented by Pizza Hut, Domino's, Papa John's and Little Caesar's in their competition with each other for pizza customers.

Question 54

John wants his shoe store to adopt the strategy of having the lowest prices on shoes in town. John is adopting which competitive strategy?

A)focusers
B)differentiation
C)cost leadership
D)providing input to top management about industry trends

Question 55

Cost leadership, differentiation, and focus strategies are types of corporate-level strategies.

Question 56

The primary purpose of strategic human resource management is to ________.

A)develop human resource policies that align with industry standards
B)integrate a company's strategic plan with its human resource strategies
C)create stringent appraisal systems that highlight employee weaknesses
D)use offshoring to reduce human resource costs and to initiate globalization

Question 57

Which of the following is the final step in the strategic human resource management process?

A)The manager asks, "What employee skills and behaviors will we need to achieve these plans and goals?"
B)The manager formulates strategic plans and goals.
C)The manager asks, "Specifically what recruitment, selection, training, and other HR policies and practices should we put in place so as to produce the required employee skills and behaviors?"
D)The manager asks, "How much profit can we make on this?"

Question 58

________ is a strategic planning tool that shows how each department performance contributes to achieve the company's overall strategic goal.

A)A strategic objective
B)Visionary strategy
C)Vertical strategy
D)A strategy map

Question 59

Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as ________.

A)strategic human resource management
B)human resource performance systems
C)high-performance personnel management
D)personnel management by objectives

Question 60

McDonald's addressed its lagging profitability by first closing stores operating below its guidelines. McDonald's used a consolidation strategy.

Question 61

Executives at Hartford Clothing, a retail department store chain, want to find out what products their customers buy, when they purchase products, and what days of the week are most popular for shopping. Executives want to discover customer patterns and make predictions about their customers' buying habits. What would be the most effective tool for Hartford?

A)data mining system
B)talent value model
C)financial audit
D)strategy map

Question 62

Strategic human resource management means formulating and executing HR systems that produce the employee competencies and behaviors a firm needs to achieve its strategic aims.

Question 63

Which of the following refers to an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions?

A)HR methodology
B)HR benchmark
C)HR checklist
D)HR audit

Question 64

Which of the following is a strategic planning tool that offers an overview of how each department's performance contributes to achieving the company's overall strategic goals?

A)digital dashboard
B)HR scorecard
C)strategy map
D)HR audit

Question 65

Which of the following refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results?

A)strategy map
B)HR scorecard
C)HR feedback scale
D)digital dashboard

Question 66

Which term refers to software applications used to analyze and draw conclusions from HR data?

A)data mines
B)talent analytics
C)HR scorecards
D)digital dashboards

Question 67

In a brief essay, explain how the strategy map, the HR scorecard, and the digital dashboard are used in strategic human resource management.

Question 68

The use of human resource metrics is essential for ________.

A)management by objectives
B)emergent employee behaviors
C)corporate-level strategies
D)evidence-based management

Question 69

Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals?

A)functional planning system
B)HR scorecard
C)annual HR benchmarks
D)high-performance work system

Question 70

All of the following are commonly addressed in an HR audit EXCEPT ________.

A)exempt workers
B)job descriptions
C)accounting expenses
D)workers' compensation benefits

Question 71

HR scorecards present managers with desktop graphs and charts of how a firm's HR strategies compare to those of other firms in the same industry.

Question 72

An HR manager conducting an HR audit on compensation would most likely search for ________.

A)current job descriptions
B)workforce health and safety training
C)completed benefit enrollment forms
D)compliance with state and federal laws

Question 73

A ________ presents a manager with desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process.

A)strategy map
B)business plan
C)scanning worksheet
D)digital dashboard

Question 74

The specific human resource policies and practices used to support a firm's strategic goals are known as human resource strategies.

Question 75

The ________ is a process for assigning financial and nonfinancial goals or metrics to the human resource management-related strategy-map chain of activities required for achieving the company's strategic aims.

A)HR scorecard
B)vision statement
C)digital dashboard
D)benchmarking process

Question 76

The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR activities, employee behaviors resulting from the activities, and the strategically relevant organizational outcomes of those employee behaviors is called a(n)________.

A)evaluation system
B)HR scorecard
C)appraisal system
D)evaluation benchmark

Question 77

Which of the following terms refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position?

A)human resource audits
B)human resource metrics
C)management by objectives
D)human resource scorecards

Question 78

Which of the following terms refers to the process of comparing and analyzing the practices of one firm with those of a high-performing company?

A)benchmarking
B)diversifying
C)strategizing
D)outsourcing

Question 79

Which of the following questions would LEAST likely be answered by the use of workforce analytics software?

A)Which departments need improvement?
B)What hiring policies are standard in the industry?
C)How many workers will the firm need in five years?
D)Why do employees choose to leave the organization?

Question 80

Strategy maps help managers link the company's strategic plan with departmental activities.