Deck 16: Strategically Managing the HRM Function

Question 1

Attempting to estimate the financial impact of substance abuse is an example of human resource accounting.

Answer 1

False
Explanation: Utility analysis attempts to estimate the financial impact of employee behaviors (such as absenteeism, turnover, job performance, and substance abuse). The human resource accounting approach attempts to place a dollar value on human resources as if they were physical resources or financial resources.

Question 2

Service centers often leverage information technology to efficiently deliver employee services.

Answer 2

True
Explanation: The service center consists of individuals who ensure that the transactional activities are delivered throughout the organization. These service centers often leverage information technology to efficiently deliver employee services.

Question 3

One of the main disadvantages of outsourced providers is their inability to learn unique innovations from one company and transfer them to another company.

Answer 3

False
Explanation: As an outsourced provider works for several firms and specializes in a particular function, its employees develop state-of-the-art knowledge of the function. They can learn unique innovations from one company and transfer that learning to a new company.

Question 4

"Business-linked" HR functions begin with identifying major people outcomes.

Question 5

Transactional HRM activities provide the greatest strategic value to a firm.

Question 6

Reengineering cannot be used to review specific HRM practices such as work design or the performance management system.

Question 7

The human resource accounting approach places a dollar value on human resources as if they were physical or financial resources.

Question 8

As part of the reengineering process, companies expand a redesigned process to the entire organization without testing it in a controlled setting.

Question 9

In strategically designed HR structures, centers for expertise ensure that transactional activities are delivered throughout the organization.

Question 10

A new trend that is consistent with the total quality management philosophy is HR executives moving to a customer-orientated approach while implementing the function.

Question 11

In a generic structure, the HRM function effectively consists of three divisions: the centers for expertise, the field generalists, and the service center.

Question 12

The payroll check is issued based on a payment voucher that is generated from the general accounting ledger.

Question 13

Redesigning the HRM process represents the internal approach to improving HRM effectiveness.

Question 14

Ensuring that the HRM systems enable the business to execute its strategy is one of the responsibilities of field generalists.

Question 15

Employee relations are part of traditional HRM activities.

Question 16

Lack of expertise among outsourced providers is a reason for declining levels of outsourcing in the last couple of years.

Question 17

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

Question 18

Applying new technology to an inefficient process will improve efficiency or effectiveness.

Question 19

Information technology applications are a prerequisite for HRM process redesign.

Question 20

The analytic approach, to evaluating HR effectiveness, focuses exclusively on reviewing the various outcomes of the HRM functional areas.

Question 21

Decision support systems are designed to help employees solve problems by themselves.

Question 22

The first step toward customer orientation is:

A)identifying the needs of customers.
B)identifying the HRM functions required for customer orientation.
C)developing technologies that serve customers.
D)creating strategies that serve customers.
E)identifying the customers.

Question 23

Which of the following HRM activities adds the highest strategic value to a firm?

A)Benefits administration
B)Employee service
C)Training and recruitment
D)Knowledge management
E)Record keeping

Question 24

Activities focused on identifying workforce morale issues pertain to the role of a chief human resource officer (CHRO)being the leader of the HR function.

Question 25

Which of the following HRM activities adds the lowest strategic value to a firm?

A)Benefits administration
B)Performance management
C)Training and recruitment
D)Knowledge management
E)Management development

Question 26

The role of a strategic advisor of a chief human resource officer (CHRO)entails sharing the people expertise as part of the decision-making process.

Question 27

_____ functions have been clearly identified and articulated, and they have aligned their HR activities around people issues and outcomes, but not business issues and outcomes.

A)Business-linked
B)Technology-linked
C)Business-driven
D)People-linked
E)Outcome-focused

Question 28

Lucas, an HR executive, is responsible for the transactional HRM activities at Coldstore Inc. If he is the sole HR person handling transactional HR activities, which of the following is most likely going to be his responsibility?

A)Selection
B)Employee Services
C)Recruitment
D)Performance management
E)Knowledge management

Question 29

Which of the following meets the needs of both the line managers and employees by giving employees opportunities to ensure that they increase their human capital and, thus, providing increased value to the company?

A)Selection systems
B)Training and development systems
C)Management development systems
D)Reward systems
E)Administrative systems

Question 30

Which of the following stages involves identifying an increasing immigrant population in a basic HR strategy process?

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

Question 31

For an HRM function to become truly strategic in its orientation, it must:

A)not view itself as a separate business entity.
B)base its strategies on serving external clients.
C)focus on process-oriented rather than people-oriented concerns.
D)adopt a customer-oriented approach.
E)spend most of its time and efforts on transactional activities.

Question 32

_____ functions' articulation of people outcomes stems from an analysis of what their functions currently do.

A)Business-linked
B)Technology-linked
C)Business-driven
D)HR-focused
E)Outcome-focused

Question 33

_____ activities of HRM have the lowest strategic value in a firm.

A)Transcendental
B)Transnational
C)Transformational
D)Traditional
E)Transactional

Question 34

_____ systems provide employees with an equitable return for their investment of skills and effort.

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

Question 35

E-HRM capabilities have allowed the focus of HRM functions to move from transactional to transformational concerns and activities.

Question 36

Mel heads a team within the HR department that is responsible for the traditional HRM activities. Which of the following activities is Mel likely to be overseeing?

A)Record keeping
B)Employee services
C)Employee relations
D)Benefits administration
E)Knowledge management

Question 37

Which of the following strategies includes activities such as selection and compensation?

A)Transcendental
B)Transpersonal
C)Transformational
D)Traditional
E)Transactional

Question 38

Since the HR strategy seeks to address business issues, involving _____ can increase the quality of information from which the HR strategy is created.

A)competitors
B)suppliers
C)line executives
D)shareholders
E)customers

Question 39

Examining the need to develop new technologies is part of:

A)identifying people issues.
B)scanning the external environment.
C)developing the HR strategy.
D)identifying strategic business issues.
E)communicating the HR strategy.

Question 40

New technologies are current applications of knowledge, procedures, and equipment that have not been used previously.

Question 41

Which of the following is true about the service center within the recent generic HR structure?

A)They have dual reporting relationships to both the head of the line business and the head of HR.
B)They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation.
C)They consist of individuals who ensure that the transactional activities are delivered throughout the organization.
D)They act as consultants in the development of state-of-the-art HR systems and processes for use in the organization.
E)They focus on ensuring that the HRM systems enable the business to execute its strategy.

Question 42

The audit approach to evaluating the effectiveness of HR practices focuses on:

A)using analytical data to increase organizational effectiveness.
B)estimating the 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.
E)using utility analysis to estimate the financial impact of employee behavior.

Question 43

Tim works at Ante Inc. He is responsible for conducting cost-benefit analyses of different functions performed at Ante. If Tim's current task is to conduct a utility analysis, which of the following factors is he likely to asses through it?

A)Capitalization of salary
B)Gains from selection programs
C)Returns on human assets
D)Net present value of expected wage payments
E)Level of job satisfaction among senior employees

Question 44

Which of the following is human resource accounting likely to include?

A)Turnover costs
B)Absenteeism
C)Capitalization of salary
D)Impact of positive employee attitude
E)Gains from selection programs

Question 45

The _____ approach attempts to place a dollar value on human resources as if they were physical resources.

A)performance management
B)human resource accounting
C)knowledge management
D)utility analysis
E)audit

Question 46

_____ functions begin with an assessment of what HR is doing and then identifying the major people outcomes they should focus on.

A)Business-linked
B)HR-focused
C)People-linked
D)Business-driven
E)Outcome-focused

Question 47

Allen, an HR personnel at Wood Inc., is a functional specialist dealing with compensation. He also works as a consultant in the development of systems and processes to be used at Wood. If Wood follows the recent generic structure of HRM function, Allen is likely to be part of a _____.

A)center of expertise
B)field generalist center
C)service center
D)transactional center
E)business unit-wide center

Question 48

A _____ consists of functional specialists in the traditional areas of HRM such as recruitment and selection.

A)center of expertise
B)field generalist center
C)service center
D)transactional center
E)business unit-wide center

Question 49

Which of the following represents a traditional structure of HRM function?

A)Functional directors reporting to the VP of HRM
B)Functional specialists acting as consultants in development of systems
C)HRM generalists with dual reporting relationships
D)Individuals leveraging information technology
E)Generalists taking responsibility for helping line executives

Question 50

Minority turnover rate is a key indicator of the _____ function of HRM.

A)training
B)succession planning
C)equal employment opportunity
D)employee appraisal and development
E)compensation

Question 51

Which of the following represents the recent generic structure of HRM function?

A)VP of HRM reporting to VP of finance and administration
B)Functions structured around labor relations
C)Functional directors reporting to the VP of HRM
D)Functions structure around staffing and appraisal
E)HRM generalists with dual reporting relationships

Question 52

Which of the following approaches focuses on determining whether the introduction of a program or practice has the intended effect?

A)People approach
B)Audit approach
C)Balance-sheet approach
D)Analytic approach
E)Outcome approach

Question 53

Which HR strategy begins by identifying the major business needs and issues, considers how people fit in and what people outcomes are necessary, and builds HR systems focused on meeting those needs?

A)HR-focused
B)People-linked
C)Business-linked
D)Business-driven
E)Outcome-focused

Question 54

Which of the following is true about improving HRM effectiveness?

A)Improvement often focuses on the effectiveness of each activity rather than on the efficiency of the same.
B)There is often a push to eliminate the transformational work to free up time for transactional work.
C)Redesigning the structure focuses on information technology rather than reporting relationships.
D)Ways to improve effectiveness should be identified much before the strategic direction is established.
E)Focusing more on transformational work is likely to result in higher strategic value to the firm.

Question 55

Ratio of promotions to number of employees is a key indicator of the _____ function of HRM.

A)training
B)succession planning
C)equal employment opportunity
D)employee appraisal and development
E)compensation

Question 56

The cost-benefit analysis approach that estimates the financial impact of employee behavior such as absenteeism is called _____.

A)utility analysis
B)valuation approach
C)human resource accounting
D)audit approach
E)returns on employee investment

Question 57

Which of the following is true of the audit approach?

A)It typically collects key indicators and customer satisfaction measures.
B)It primarily deals with the determination of the dollar value of a function.
C)It involves the use of statistics and finance, and hence is more demanding than the analytic approach.
D)It uses utility analysis to estimate the financial impact of employee behavior.
E)It focuses on the processes involved in the HRM functional areas rather than the outcomes.

Question 58

Which of the following is true of field generalists within the recent generic HR structure?

A)They are responsible for helping line executives strategically address people issues.
B)They are responsible for the traditional areas of HR.
C)They are responsible for the transactional HR activities.
D)They act as consultants in the development of state-of-the-art HR systems.
E)They often leverage information technology to efficiently deliver employee services.

Question 59

Maria works in the HR department at Cloud Zero Inc. She is responsible for helping the line executives strategically address people issues. She has a dual reporting relationship with Jose, the head of HRM, and Gigi, the head of the line business. Maria is likely to be:

A)part of the center of expertise.
B)a field generalist.
C)part of the service center.
D)part of the transactional center.
E)a functional specialist.

Question 60

Assistance provided to line managers in handling grievances is a customer satisfaction measure used in the _____ function of HRM.

A)training
B)succession planning
C)equal employment opportunity
D)employee appraisal and development
E)labor relations

Question 61

A firm is most likely to outsource services when:

A)the cost of production is cheaper when done onshore.
B)the labor costs are high in the country where the outsourcing partner is.
C)the human capital is low in the country where the outsourcing partner is.
D)the effectiveness of services produced internally is lesser than that produced offshore.
E)the goods produced onshore are of better quality than those produced offshore.

Question 62

Which of the following corresponds to the stage of understanding the process during reengineering?

A)Considering whether jobs can be combined
B)Developing models and choosing prototype
C)Asking process owners to be part of the team
D)Including customers who see the outcome of the process as team members
E)Testing the process

Question 63

_____ involves contracting with an outside domestic 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
C)Outsourcing
D)Reshoring
E)Exporting

Question 64

Which of the following is true about the reengineering process?

A)Information technology applications are mandatory for process redesign.
B)Reengineering cannot be used to review HRM department functions.
C)Applying new technology to an inefficient process will improve effectiveness.
D)Reengineering cannot be used to review performance management system.
E)Product or service cost will increase if new technology is applied to an inefficient process.

Question 65

Which of the following steps in reengineering involves trying out the process by testing it in a limited, controlled setting?

A)Identifying the process
B)Understanding the process
C)Redesigning the process
D)Implementing the process
E)Auditing the process

Question 66

The _____ consists of individuals who often leverage information technology to efficiently deliver employee services.

A)field generalists' center
B)functional specialists' center
C)center for expertise
D)service center
E)labor relations center

Question 67

Which of the following steps in reengineering involves conducting surveys?

A)Identifying the process
B)Understanding the process
C)Redesigning the process
D)Implementing the process
E)Auditing the process

Question 68

A review of critical work processes and redesign to make them more efficient and able to deliver higher quality is called _____.

A)transaction processing
B)reengineering
C)benchmarking
D)delayering
E)outsourcing

Question 69

_____ are problem-solving systems, which usually include a "what-if" feature that allow users to see how outcomes change when assumptions or data change.

A)Relational databases
B)Decision support systems
C)Expert systems
D)Client service systems
E)Support networks

Question 70

Knowing the company's strategic plan and understanding the company's financial capabilities is part of the _____ competence required by HR professionals.

A)professional-technical knowledge
B)management of change processes
C)integration
D)business
E)performance

Question 71

Which of the following corresponds to identifying the process stage of the reengineering process?

A)Considering whether jobs can be combined
B)Developing models and choosing prototype
C)Asking process owners to be part of the team
D)Considering the exceptions to be dealt with
E)Considering if all the steps in the process are necessary

Question 72

Analyzing data redundancy, special cases, and exceptions is part of _____ the process during reengineering.

A)identifying
B)redesigning
C)understanding
D)implementing
E)testing

Question 73

_____ show the types of information used within a business function and the association among the different types of information.

A)Focus groups
B)Scenario analyses
C)Cost-benefit analyses
D)Data-entity relationship diagrams
E)Data-flow diagrams

Question 74

The most likely activities to be outsourced include _____ activities.

A)transformational
B)transactional
C)traditional
D)training
E)transcendental

Question 75

_____ is a computer system incorporating the decision rules of people deemed to have specialized knowledge in a certain area.

A)A relational database
B)A decision support system
C)An expert system
D)A client service system
E)A support network

Question 76

Which of the following is the initial step in the reengineering process?

A)Interpreting the process
B)Auditing the process
C)Implementing the process
D)Redesigning the process
E)Identifying the process

Question 77

The generic structure of HRM functions is likely to result in:

A)functional specialists being distracted by transactional activities.
B)generalists focusing more on maintaining functional specializations.
C)service centers focusing on efficient delivery of basic services across units.
D)nondual reporting relationships among field generalists and HRM/line heads.
E)the responsibility of leveraging information technology shifting to functional specialists.

Question 78

Up-to-date knowledge on new selection techniques, performance appraisal methods, training programs, and incentive plans is part of the _____ competence required by HR professionals.

A)professional-technical knowledge
B)management of change processes
C)integration
D)business
E)performance

Question 79

Technology has freed HR managers from day-to-day activities to focus more on _____ activities.

A)transformational
B)traditional
C)transnational
D)transactional
E)transitional

Question 80

Which of the following is true of cost-benefit analysis?

A)It evaluates the design of data structure and content.
B)It is a review of how soon the system of software application will become outdated.
C)It shows the flow of data between departments.
D)It compares the expense of completing a task with and without an automated system.
E)It evaluates the frequency and criticality of automating specific tasks within a functional area.