Deck 2: Aligning HR With Strategy

Question 1

Michael Porter estimates that it takes approximately five years to duplicate a competitive edge in human resources.

Answer 1

False

Question 2

A firm's human resources are more valuable for sustained competitive advantage than technological and physical resources.

Answer 2

True

Question 3

According to the resources-based view,the less a resource can be imitated,the more it contributes to competitive advantage.

Answer 3

True

Question 4

Traditionally,the HRM program influenced the creation of the corporate strategy.

Question 5

Almost 70 percent of Canadian organizations indicated they had difficulty recruiting quality candidates.

Question 6

Human resources management used to be called the personnel department.

Question 7

From the human capital perspective,companies should invest in their employees.

Question 8

"Human capital" refers to the collective sum of the attributes,experience,knowledge,and commitment that employees choose to invest in their work.

Question 9

A clearly written mission statement typically increases turnover.

Question 10

Human resource professionals recognize the need to play a more strategic role within the organization,but many executives do not.

Question 11

The advantages of an organization with effective HR practices may come from having better resources,but it also comes from making better use of these resources

Question 12

There are NO risks to developing an HR strategy.

Question 13

There is a negative relationship between the amount of money spent on training employees and the perceived value of human capital.

Question 14

Recently HR departments have been required to move from demonstrating real value to articulating perceived value.

Question 15

Google established a human analytics function to study its human capital.

Question 16

The statistical technique in HR examining,demand forecasting,and resource supply is based on a linear relationship.

Question 17

Making decisions,such as how to best use human capital,is an example of a transactional activity in HR.

Question 18

The HR senior manager team moves from insider status to outsider status with strategic HRM.

Question 19

A resource-based view of HR involves the thinking that different strategies require different behaviours from employees,which in turn are influenced by different HR practices.

Question 20

In order to retain valuable employees,Google gave all its employees a 20 percent raise in 2010.

Question 21

Ten Tree Apparel
Ten Tree Apparel is a Regina-based company devoted to producing all its clothing responsibly and locally.It uses only 100 percent organic cotton and unprocessed hemp to create premium-priced contemporary clothing that is unique.Ten Tree Apparel's clothing comes with a distinctive environmental bonus.For every piece of clothing a customer purchases,Ten Tree Apparel plants ten trees.The brand believes in a social enterprise model of business that can inspire a new group of consumers to tackle environmental challenges through reforestation efforts.
​
Ten Tree Apparel is most likely to gain a sustained competitive advantage through its people by using which of the following programs?

A) market niche with lower cost
B) broad differentiation
C) low-cost provider
D) market niche with differentiation

Question 22

A possible drawback to strategic HR planning includes a greater amount of time required for decision making.

Question 23

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
​
What is the primary reason that Swimco's HRM leadership team aligns their HR policies,practices,and philosophies with their organizational strategy?

A) ​to facilitate the attainment of top talent
B) ​to ensure that the HR system remains current with the internal environment
C) ​to ensure that the HR system remains current with the external environment
D) ​to facilitate the attainment of organizational strategy through their HR systems

Question 24

Which of the following is NOT a risk associated with strategic HR planning?

A) losses in productivity
B) overconcern with employees' reactions
C) impossible commitments to employees
D) information overload

Question 25

According to concurrent strategy formulation,when does strategy development occur?

A) prior to when HRM issues are considered
B) simultaneously when HRM issues are considered
C) subsequent to when HRM issues are considered
D) mutually exclusive of when HR issues are considered

Question 26

The goals of these HRM strategies are to shape employee behaviour so that it is consistent with the direction the organization identifies in its strategic plans.

Question 27

What does McDonald's "no unique response" system mean?

A) that employees are not expected to contribute ideas
B) that employees are not expected to communicate formally
C) that employees are not expected to accommodate customer inquiries
D) that employees are not expected to respond beyond a basic standard

Question 28

According to the textbook,what is the annual turnover rate for organizations using a low-cost provider strategy?

A) 100 percent
B) 200 percent
C) 300 percent
D) 400 percent

Question 29

In the text,Sears demonstrates that there is a link between employee behaviour and the company's performance.What two employee attitudes had the greatest significance on employee retention and behaviour toward the company?

A) perceptions about their value and about their compensation
B) perceptions about their jobs and about the company
C) perceptions about their performance and about their training
D) perceptions about their retention and about their career plans

Question 30

Fit is an important consideration when designing HR programs.What is it called when an organization fits its HR strategy to its organizational strategy?

A) internal fit
B) best fit
C) external fit
D) organizational fit

Question 31

The aggregate of all employees' knowledge is an example of human capital.

Question 32

What does it mean if an organization's human capital return on investment is $3?

A) For every dollar an organization invests in human capital,the employees will generate $3 in return.
B) For every dollar an organization invests in human capital,the employees will generate $3 in revenue.
C) For every dollar an organization invests in human capital,the employees will generate $3 in capital assets.
D) For every dollar an organization invests in human capital,the employees will generate $3 in productivity.

Question 33

Ten Tree Apparel
Ten Tree Apparel is a Regina-based company devoted to producing all its clothing responsibly and locally.It uses only 100 percent organic cotton and unprocessed hemp to create premium-priced contemporary clothing that is unique.Ten Tree Apparel's clothing comes with a distinctive environmental bonus.For every piece of clothing a customer purchases,Ten Tree Apparel plants ten trees.The brand believes in a social enterprise model of business that can inspire a new group of consumers to tackle environmental challenges through reforestation efforts.
Why is strategic HR planning important to Ten Tree Apparel?

A) ​The planning process itself results in improved goal attainment.
B) ​The implementation results in an effective organizational strategy.
C) ​It motivates and attracts high-performing employees.
D) ​It helps achieve competitive advantage through distinct employee competencies.

Question 34

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
​
Through its e-commerce initiative,Swimco is transitioning from local to national in its market position.What type of strategy is Swimco adopting?

A) restructuring
B) divestiture
C) business
D) ​growth

Question 35

According to Google Inc. ,which of the following does NOT produce innovative behaviours from employees?

A) selecting people with high creativity
B) providing employees with time and freedom to innovate
C) motivating innovation through incentive programs
D) stimulating opportunities for job enlargement

Question 36

Selective hiring,extensive training,and competitive pay are HR practices that could make an organization more successful.What term best describes this type of activity?

A) transitional
B) transactional
C) high-performance
D) transformational

Question 37

To the HR practitioner,what does human capital incorporate?

A) knowledge,commitment,values
B) commitment,experience,culture
C) experience,knowledge,skills
D) skills,values,culture

Question 38

Human resources create competitive advantage for organizations,which reflects a resource-based view.

Question 39

Professional certification is NOT a human capital asset.

Question 40

Payroll represents a routine activity that must be done for the organization to operate on a daily basis.What term best describes this type of activity?

A) transitional
B) transactional
C) temporal
D) transformational

Question 41

If IBM introduces a new software package in January,Microsoft can probably imitate or duplicate this package by February of the same year.However,if IBM technical support people are trained and motivated to provide "knock your socks off service," Microsoft will have a difficult time imitating this service within a month.This is an example of how employees can provide a competitive advantage.What theory is being applied here?

A) behavioural perspective
B) resource-based view
C) human capital
D) strategic management

Question 42

In many ways,HR strategy generates the business strategy,and business strategy determines the HR strategy.What is the concept that describes this relationship?

A) reciprocal strategy
B) reciprocal partnerships
C) reciprocal dependence
D) reciprocal interdependence

Question 43

What is the purpose of strategic HRM?

A) to ensure the effective functioning and survival of the organization and its members
B) to implement the planning,timing,and delivery of an effective organizational strategy
C) to motivate and attract employees who will internalize the organization's culture
D) to emerge as an industry leader with numerous distinct competencies and a competitive advantage

Question 44

Ten Tree Apparel
Ten Tree Apparel is a Regina-based company devoted to producing all its clothing responsibly and locally.It uses only 100 percent organic cotton and unprocessed hemp to create premium-priced contemporary clothing that is unique.Ten Tree Apparel's clothing comes with a distinctive environmental bonus.For every piece of clothing a customer purchases,Ten Tree Apparel plants ten trees.The brand believes in a social enterprise model of business that can inspire a new group of consumers to tackle environmental challenges through reforestation efforts.
Ten Tree Apparel is most likely to gain a sustained competitive advantage through its people by using which of the following programs?

A) one in which employees are motivated through training and reward initiatives
B) one in which employee talent is organized,difficult to imitate,rare,and valuable
C) one in which employees are empowered and engaged in their work
D) one in which employees have skills and knowledge that are transferable to many positions.

Question 45

What kind of strategy is an organization using if it attempts to pay wages slightly below industry norms?

A) outsourcing
B) compensation
C) differentiation
D) lag

Question 46

According to classical economics,what are the three most important resources or inputs?

A) labour,capital,land
B) capital,knowledge,land
C) knowledge,economics,land
D) economics,assets,land

Question 47

What two items does an organization match together in the human capital perspective of HRM?

A) values of employees and the organization's budget
B) capacity of employees and the organization's motivation
C) capabilities of employees and the organization's strategy
D) creativity of the employees and the organization's goals

Question 48

Which of the following does NOT align human resources strategy with business strategy?

A) starting with organizational strategy and then creating HR strategy
B) starting with HR competencies and then creating corporate strategy
C) starting with HR strategy and then creating HR competencies
D) starting with business strategy and then creating HR strategy

Question 49

If a company uses a differentiation strategy,what is it more concerned with relative to equity with the external market?

A) pay structures
B) compensation strategy
C) pay for performance
D) internal equity

Question 50

According to the textbook,which company did NOT modify its strategy when external environment conditions changed and subsequently went bankrupt?

A) Marks & Spencer
B) Consumers Distributing
C) Eaton's
D) Woolco

Question 51

Four Seasons Hotels competes on service excellence.It invests in HR systems for service quality,such as selecting,training,and rewarding employees' service-related skills.What theory is being applied by Four Seasons Hotels.

A) service quality
B) resource-based view
C) human capital
D) behavioural

Question 52

When the HR training department teaches individuals a new customer service computer program,the HR recruiting department must work together with the HR training department to hire individuals with comparable computer skills.What is this collaborative approach called?

A) cross-functional HR practices
B) industry-consistent HR practices
C) exemplary HR practices
D) bundling HR practices

Question 53

Fit is an important consideration when designing HR programs.What is it called when an organization fits its HR strategy to other functional areas?

A) internal fit
B) best fit
C) external fit
D) organizational fit

Question 54

According to the textbook,which of the following does NOT use a differentiation strategy?

A) BMW
B) Polo Ralph Lauren
C) Rolex
D) IBM

Question 55

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
It is particularly important for Swimco to define and develop the behaviours necessary to achieve their organizational capabilities of innovation and customer care.What theory is Swimco applying to its strategic management?

A) behavioural perspective
B) resource-based view
C) human capital
D) ​strategic management

Question 56

At Sears,which of the following will NOT be an impact on customers if employees are trained to change their behaviours?

A) customer satisfaction
B) customer retention
C) customer sales
D) customer appreciation

Question 57

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
"Our company is committed to making our customers feel confident in swimwear so they can be free to enjoy some of the best experiences of their lives." What type of statement is this quote an example of?

A) attitude
B) policy
C) strategic
D) value

Question 58

What percentage of payroll do Canadian organizations typically pay for fringe benefits for their employees?

A) 20 percent
B) 25 percent
C) 30 percent
D) 35 percent

Question 59

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
Which of Porter's competitive business strategies is Swimco applying?

A) low-cost provider
B) broad differentiation
C) market niche with lower cost
D) ​market niche with differentiation

Question 60

Costs incurred in training,motivating,compensating,and monitoring employees can be viewed as investments in human capital that result in gains to productivity per worker.How does this type of investment yield such gains?

A) by matching the business strategy to the external environment
B) by matching the capabilities of employees with the corporate strategy
C) by matching the needs of the employees to their desires for empowerment
D) by matching the HR strategy to the potential employee competencies

Question 61

Swimco
Swimco is a beach- and resort-wear retailer based in Calgary,Alberta,with operations in 22 retail stores across Western Canada.In 2014,it launched its web store.It believes that everyone deserves to feel good in a swimsuit.Swimco provides a unique "fit expert" customer service that permits the store to support a customer value-pricing strategy.To achieve this strategy,the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly.The company also provides a real-time "live chat" that is staffed with experienced fit consultants so customers always receive quality service.
When planning,Swimco's corporate leadership team reviewed the company's business plans not only to ensure consistency with their HR strategy but also to provide input to their strategy,based on HR strengths and weaknesses.What approach is Swimco using to link its HR processes to their strategy?

A) It is starting with organizational strategy and then creating HR strategy.
B) It is starting with HR competencies and then creating corporate strategy.
C) It is starting with HR competencies and then creating corporate strategy.
D) ​It is doing a combination of both business strategy and HR strategy in a form of reciprocal relationship.

Question 62

Describe two reasons why strategic planning is important to organizations.

Question 63

Define "strategic human resources management" and discuss some of the major elements it encompasses.

Question 64

What is the primary reason that strategic HRM aligns HR policies,practices,and philosophies with organizational strategy?

A) to develop new methods to deliver training and orientation
B) to constrain undesirable behaviours within an organization
C) to ensure that the institutional memory remains current
D) to facilitate the attainment of organizational strategy

Question 65

What employee skills do employers look for if they have a differentiation strategy?

Question 66

The purpose of HR strategy is to capitalize on the distinctive competencies of the organization and add value through the effective use of human resources.Effective HRM strategies include external and internal fit,and a focus on results.Explain external and internal fit.

Question 67

What is human capital? What comprises human capital?