Deck 2: Strategic Human Resource Management

Question 1

Strategic planning groups decide on a strategic direction during the strategy implementation phase.

Answer 1

False
Explanation: During strategy formulation the strategic planning groups decide on a strategic direction by defining the company's mission and goals. During strategy implementation, the organization follows through on the chosen strategy.

Question 2

Training refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

Answer 2

True
Explanation: A number of skills are instilled in employees through training and development. Training refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

Question 3

Job analysis addresses what tasks should be grouped into a particular job.

Answer 3

False
Explanation: Job analysis is the process of getting detailed information about jobs.

Question 4

Companies engaged in a cost strategy require employees to have moderate concern for quantity and a long-term focus.

Question 5

Internal analysis attempts to identify the organization's strategic opportunities and threats.

Question 6

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

Question 7

According to Michael Porter, competitive advantage stems from a company's ability to create value in its production process.

Question 8

Executives who have extensive knowledge of the behaviors that lead to effective performance tend to focus on evaluating the objective performance results of their subordinate managers.

Question 9

Strategy implementation includes defining a company's mission and goals.

Question 10

Recruitment refers to the process by which an organization attempts to identify applicants with the necessary characteristics that will help the organization achieve its goals.

Question 11

Companies that are not diversified use quantitative measures of performance to evaluate managers.

Question 12

Strategic management is a process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will increase the likelihood of achieving those goals.

Question 13

One-way linkage precludes the company from considering human resource issues while formulating the strategic plan.

Question 14

Employees in companies with a differentiation strategy need to have only a moderate concern for quantity.

Question 15

Companies engaged in cost strategies develop internally consistent pay systems with negligible pay differentials between superiors and subordinates.

Question 16

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

Question 17

The goal of strategic management in an organization is to deploy and allocate resources in a way that provides the company with a competitive advantage.

Question 18

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

Question 19

An overall cost leadership strategy is achieved by offering unique product features.

Question 20

Differentiation companies will have compensation systems that are geared toward internal rather than external equity.

Question 21

During _____, the strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses.

A)administrative linkage
B)task design
C)selecting and training
D)strategy formulation
E)strategy evaluation

Question 22

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

A)Human resource optimization
B)Systemic talent management
C)Strategic human resource management
D)Transactional talent management
E)Transactional human resource management

Question 23

When an organization develops integrated manufacturing systems such as advanced manufacturing technology and just-in-time inventory control, strategic human resource management has the responsibility of _____.

A)assessing the employee skills required to run these systems
B)inputting the necessary information to run these systems
C)testing the functionalities of these systems
D)testing these systems based on customer feedback
E)documenting the use of these systems within the organization

Question 24

_____ is defined as the skillful employment and coordination of tactics.

A)Strategy
B)Human resource management
C)Mission
D)Internal analysis
E)Business modeling

Question 25

_____ is calculated as the number of units sold times the contribution margin.

A)Holding cost.
B)Gross margin.
C)Profit.
D)Variance.
E)Overhead rate.

Question 26

_____ costs are incurred regardless of the number of units produced.

A)Acquisition
B)Procurement
C)Fixed
D)Variable
E)Marginal

Question 27

_____ can be thought of as managing the pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole.

A)Operational management
B)Transactional management
C)Management by objectives
D)Process mapping
E)Strategic management

Question 28

Companies using concentration strategies attempt to focus on what they do best within their established markets.

Question 29

_____ refers to what is left after a firm pays its variable costs and fixed costs.

A)Contribution margin
B)Overhead cost
C)Profit
D)Variance
E)Holding cost

Question 30

The costs that change directly with the units produced are known as _____ costs.

A)concrete
B)sunk
C)outlay
D)variable
E)fixed

Question 31

Which of the following is an example of a physical resource that a company uses to compete with other companies?

A)Controlling system
B)Technology
C)Planning system
D)Employee skill
E)Experience of employees

Question 32

Downsizing gives the organization an opportunity to change its culture.

Question 33

A learning organization constantly monitors its environment, assimilates information, makes decision, and flexibly restructures itself to compete in that environment.

Question 34

The difference between what a firm charges for a product and the variable costs of that product is known as:

A)variance.
B)overhead rate.
C)holding cost.
D)profit.
E)margin.

Question 35

Strategies emphasizing market share or operating costs are called "external growth" strategies.

Question 36

During strategy formulation, the strategic planning groups _____.

A)ensure that the firm has skilled employees in place
B)structure the organization
C)allocate resources to various tasks
D)generate various strategic alternatives
E)develop reward system that align employee behavior with the organization's goals

Question 37

A _____ workforce describes the former workers to whom a firm still owes financial obligations.

A)contingent
B)consultant
C)temporary
D)legacy
E)contract

Question 38

Terminal Inc. is a retail firm specializing in menswear. It plans to overtake its closest competitor within two years. It has decided to set up a store in Manhattan where it had no presence earlier. But, it realizes that NewBliss Inc. can give it a very good competition in the formal attire group for males between the ages of 25-35. Terminal Inc. is at the _____ phase.

A)strategy implementation
B)strategy formulation
C)administrative linking
D)selecting and training
E)task designing

Question 39

A(n)_____ is a story of how a firm will create value for its customers and how it will do so profitably.

A)design specification
B)business model
C)process model
D)administrative linkage
E)process architecture

Question 40

Companies going through downsizing often develop compensation programs that tie the individual's compensation to the company's success.

Question 41

During strategy implementation, an organization:

A)analyzes its strengths and weaknesses.
B)generates various strategic alternatives.
C)follows through on the chosen strategy.
D)defines its mission and goals.
E)identifies its opportunities and threats.

Question 42

Which of the following analyses gives the strategic planning team all the information it needs to generate a number of strategic alternatives?

A)Selection analysis
B)Training analysis
C)SWOT analysis
D)Development analysis
E)Recruitment analysis

Question 43

In _____, a firm's strategic business planning function develops the strategic plan and then informs the HRM function of the plan.

A)integrative linkage
B)central linkage
C)two-way linkage
D)one-way linkage
E)administrative linkage

Question 44

Mission, goals, external analysis, internal analysis, and strategic choices are the five major components of the strategic management process that are relevant to:

A)recruitment.
B)strategy formulation.
C)selection.
D)job designing.
E)strategy implementation.

Question 45

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

A)Administrative linkage
B)Two-way linkage
C)Integrative linkage
D)Central linkage
E)One-way linkage

Question 46

_____ allows for consideration of human resource issues during the strategy formulation process.

A)Administrative linkages
B)One-way linkages
C)Unidirectional linkages
D)Top-to-bottom linkages
E)Two-way linkages

Question 47

Which of the following examines the organization's operating environment to identify the strategic opportunities and threats?

A)Job modeling
B)Internal analysis
C)External analysis
D)Value chain analysis
E)Job analysis

Question 48

Which of the following statements is true of two-way linkages?

A)The strategic planning function and the HRM function are interdependent.
B)It precludes the company from considering the human resource issues while formulating the strategic plan.
C)The human resource management department simply engages in administrative work unrelated to the company's core business needs.
D)The human resource function's attention is on day-to-day activities.
E)The human resource management executive has no opportunity to take a strategic outlook toward human resource management issues.

Question 49

Which of the following levels of integration often leads to strategic plans that the company cannot successfully implement?

A)Collaborative linkage
B)Integrative linkage
C)Two-way linkage
D)One-way linkage
E)Congruent linkage

Question 50

Which is the level of integration at which the human resource management engages in day-to-day activities unrelated to the company's core business needs?

A)Administrative linkage
B)One-way linkage
C)Two-way linkage
D)Integrative linkage
E)Central linkage

Question 51

Which of the following attempts to identify the organization's strengths and weaknesses?

A)Job analysis
B)Internal analysis
C)External analysis
D)Competitive analysis
E)Job modeling

Question 52

Which of the following is true of one-way linkage?

A)The human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues.
B)It precludes the company from considering human resource issues while formulating the strategic plan.
C)The human resource management functions are built right into the strategy formulation process.
D)The human resource management function is involved in both strategy formulation and strategy implementation.
E)The human resource management executive gives strategic planners information about the company's human resource capabilities.

Question 53

External analysis and internal analysis combined constitute the _____.

A)value analysis
B)training analysis
C)development analysis
D)SWOT analysis
E)recruitment analysis

Question 54

_____ focuses on the quantity and quality of resources available to the organization.

A)Job modeling
B)External analysis
C)Internal analysis
D)Value chain analysis
E)Job analysis

Question 55

In administrative linkage:

A)the human resource management function's attention is on day-to-day activities.
B)the firm's strategists develop the strategic plan and then inform the human resource management function of the plan.
C)the strategic planning team informs the human resource management function of the various strategies the company is considering.
D)the human resource management functions are built right into the strategy formulation process.
E)the human resource management executive gives strategic planners information about the company's human resource capabilities.

Question 56

An organization's _____ is what it hopes to achieve in the medium- to long-term future and it reflects how an organization's reason for being is operationalized.

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

Question 57

A firm's strategic management decision-making process usually takes place at its top levels, with a strategic planning group consisting of:

A)middle managers and directors.
B)the chief executive officer and supervisors.
C)the chief executive officer and the president.
D)accountants and supervisors.
E)the directors and labor union representatives.

Question 58

_____ consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals.

A)Task designing
B)Strategy implementation
C)Administrative linking
D)Selection and training
E)Operational implementation

Question 59

Companies with _____ have their human resource management functions built right into the strategy formulation and implementation processes.

A)integrative linkage
B)administrative linkage
C)one-way linkage
D)two-way linkage
E)executive linkage

Question 60

_____ is a statement of the organization's reason for being that usually specifies the customers served, the needs satisfied and/or the values received by the customers, and the technology used.

A)Work structure
B)Goal
C)Mission
D)Strategy
E)Value

Question 61

A company that wants to become the lowest cost producer in an industry should _____.

A)create a product that is different from other products in the market
B)construct efficient large-scale facilities
C)invest heavily in branding their product
D)invest in creating a unique customer service process
E)start using the latest machines for its production facility

Question 62

_____ is the process through which the organization seeks applicants for potential employment.

A)Selection
B)Recruitment
C)Training
D)Development
E)Appraisal

Question 63

Companies engaged in differentiation strategy _____.

A)provide narrow career paths to employees
B)use a compensation system based on productivity alone
C)seek to generate more creativity through broadly defined jobs
D)recruit employees more from internal sources
E)engage in extensive socialization of newcomers

Question 64

Which of the following describes the different ways the organization will attempt to fulfill its mission and achieve its long-term goals?

A)Internal analysis
B)External analysis
C)Vision statement
D)Strategic choice
E)SWOT analysis

Question 65

The process by which a firm attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the firm achieve its goals is known as _____.

A)appraisal
B)selection
C)recruitment
D)training
E)differentiation

Question 66

Strategies emphasizing market share or operating costs are considered _____ strategies.

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

Question 67

_____ refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

A)Recruitment
B)Development
C)Training
D)Performance management
E)Selection

Question 68

Which of the following is true regarding companies that are not diversified?

A)Such companies use quantitative measures of performance to evaluate managers.
B)In such companies, top-managers have less knowledge about managers below them in the hierarchy.
C)In such companies. executives tend to focus on evaluating the objective performance results of their subordinate managers.
D)They have evaluation systems that call for subjective performance assessments of managers.
E)People above the first-level managers in the hierarchy of such companies have limited knowledge about how the work should be performed.

Question 69

A company that follows an overall cost leadership strategy _____.

A)focuses on becoming the lowest cost producer in an industry
B)thrives to reduce the cost of products in its industry
C)does not use automated procedures and systems
D)thrives constantly to increase the quality of its products
E)focuses on creating products that provide high value for its cost

Question 70

Companies engaged in a cost strategy _____.

A)engage in limited socialization of newcomers
B)tend to specifically define the skills they require
C)tend to spend less time in training employees
D)provide broad career paths to employees
E)tend to recruit more people from outside

Question 71

Companies engaged in a cost strategy require employees to _____.

A)have a high concern for quantity
B)have a long-term focus
C)be comfortable in an unstable working environment
D)be willing to take risks
E)undertake challenging and non-repetitive work

Question 72

The process of getting detailed information about jobs is known as:

A)job designing.
B)recruitment.
C)selection.
D)training.
E)job analysis.

Question 73

Which of the following addresses what tasks should be grouped into a particular job?

A)Job analysis
B)Internal analysis
C)External analysis
D)Job design
E)Recruitment

Question 74

_____ involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of existing or new jobs.

A)Training
B)Development
C)Performance management
D)Selection
E)Recruitment

Question 75

The basic premise behind strategy implementation is that _____.

A)boosting employee productivity is more important than effectiveness in production.
B)short-term orientation is detrimental to an organization's economical success.
C)external analysis and internal analysis should be performed during implementation.
D)quality of resources is more important than the quantity of resources.
E)the choice of organizational forms and structural forms make an economic difference.

Question 76

A company engaged in differentiation strategy requires employees who:

A)are highly creative and cooperative.
B)have high concern for quantity.
C)tend to be risk averse.
D)have a short-term focus.
E)prefer stable working environments.

Question 77

Which of the following is true regarding differentiation strategy?

A)Differentiation strategy cannot protect a company from price sensitivity.
B)Brand images play a negligible role in differentiation strategies.
C)Companies using this strategy have to build large-scale facilities.
D)Companies have to control their overhead costs to use this strategy.
E)If a company succeeds in this strategy, it achieves above-average returns.

Question 78

_____ is used to ensure that employees' activities and outcomes are congruent with the organization's objectives.

A)Divestment
B)Differentiation
C)Performance management
D)Selection
E)Recruitment

Question 79

Apple is known for using a unique operating system that integrates well with peripheral devices such as iPod and iPhone. What kind of a strategy is Apple using?

A)Cost leadership
B)Differentiation
C)Disintermediation
D)Penetration
E)Centralization

Question 80

A high level of pay relative to that of competitors can ensure that _____.

A)the company's overall labor costs are low.
B)employees are highly satisfied with the work.
C)the organization is always in the growth stage.
D)organizational productivity is satisfactory.
E)the company attracts high-quality employees.