Deck 2: Strategic Human Resource Management

Question 1

External analysis attempts to identify an organization's strategic opportunities and threats.

Answer 1

True

Question 2

Untapped labor pools are an example of a strategic threat to an organization's operating environment.

Answer 2

False

Question 3

In a two-way linkage,an organization is restricted from considering the human resource issues while formulating its strategic plan.

Answer 3

False

Question 4

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

Question 5

Strategy implementation includes structuring an organization and allocating resources.

Question 6

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

Question 7

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

Question 8

To be maximally effective,the human resource management function of a company must be isolated from the company's strategic management process.

Question 9

CompCo wants to bring radical change to the current skills that exist in the organization so they are going to employ concentration strategies.

Question 10

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

Question 11

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

Question 12

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

Question 13

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 14

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

Question 15

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

Question 16

Jolene is excited to meet with her supervisor and go over her year-end review.She has heard that there can be an increase in pay for high performance.Companies do tie pay to performance.

Question 17

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

Question 18

The strategy a company is pursuing does not have an impact on the types of employees that it seeks to recruit and select.

Question 19

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

Question 20

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

Question 21

Saturn Inc.is a large manufacturer of footwear and accessories.It has always lagged behind its closest competitor,Hexagon Inc.It plans to overtake Hexagon by leveraging its strength in women's footwear and entering markets in the Midwest that it had traditionally ignored.Saturn Inc.is in the ________ phase.

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

Question 22

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

Question 23

When an organization develops integrated manufacturing systems such as advanced manufacturing technology and just-in-time inventory control,it needs to assess the employee skills required to run these systems and train them accordingly.These assessments and training programs intended to enable an organization to achieve its goals fall under

A)strategic human resource management.
B)the job characteristics model.
C)diversity management.
D)the employee stock ownership plan.
E)participative management.

Question 24

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

Question 25

Jam and Nuts is evaluating their resources so that they can compete with other companies.They have evaluated their plant,equipment,and geographic location.What other physical resource do they need to evaluate to complete this scan?

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

Question 26

During the strategic implementation stage of the strategic management process,an organization

A)decides on a strategic direction.
B)defines its mission and goals.
C)establishes external opportunities and threats.
D)ensures that it has skilled employees in place.
E)determines its internal strengths and weaknesses.

Question 27

Ashock has been brought in as a consultant for a large organization.He is tasked with identifying the goals,policies,and action sequences the company should take to offset competitive challenges.Ashock will be implementing

A)operational management.
B)transactional management.
C)management by objectives.
D)process mapping.
E)strategic management.

Question 28

Pluto Inc.,a large manufacturer of desktops and laptops,has decided to enhance revenues by expanding its product line.It has identified the tablet market as a possible market to expand and has identified Compco Inc.as a potential competitor.Pluto Inc.is currently in the ________ stage of the strategic management process.

A)strategy formulation
B)strategy evaluation
C)strategy execution
D)strategy consultation
E)strategy implementation

Question 29

Global Market is planning to downsize.Management sees a positive outcome being the opportunity to change the company's culture.

Question 30

Which of the following is an example of a fixed cost?

A)Raw materials
B)Factory rent
C)Operating cost
D)Direct labor costs
E)Packaging costs

Question 31

Butterflies and Blooms,a new florist in town,is attempting to maximize profits but knows the company cannot charge too much for its bouquets in this market.As the company explores locations,the florist notes rent,property taxes,and parking.These are examples of ________ costs.

A)acquisition
B)procurement
C)fixed
D)variable
E)marginal

Question 32

Which of the following statements is true of variable costs incurred by firms?

A)These costs are independent of the number of goods produced by firms.
B)The rent and interest paid by firms are examples of variable costs.
C)These costs are the difference between what firms charge for their products and the fixed costs of the products.
D)These costs change directly with the units produced.
E)These costs are the total amount of margin made by a firm.

Question 33

Selena is leading the strategic groups through an exercise to define the company's mission and goals through a SWOT (strengths,weaknesses,opportunities,and threats)analysis.She is employing

A)strategy implementation.
B)task design.
C)selection and training.
D)strategy formulation.
E)strategy evaluation.

Question 34

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

Question 35

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

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

Question 36

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

A)holding cost
B)gross
C)profit
D)fixed cost
E)overhead rate

Question 37

________ is 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 38

A learning organization constantly monitors its environment,assimilates information,makes decisions,and flexibly restructures itself to compete in an ever-changing environment.

Question 39

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 40

Jonathan retired from a large,multinational automobile company last year.He receives health care benefits as well as a pension from the company.At present,Jonathan falls under the category of a

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

Question 41

Mission,goals,external analysis,internal analysis,and strategic choices are the five major components of the ________ process.

A)recruitment
B)strategy formulation
C)orientation
D)job designing
E)job engagement

Question 42

Sophie,the HR manager,checks her email,completes paperwork,and returns voicemail.These activities are part of the

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

Question 43

Which of the following linkages has its 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 44

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

A)In this level,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)In this level,the human resource management functions are built right into the strategy formulation process.
D)In this level,the human resource management function is involved in both strategy formulation and strategy implementation.
E)It lets the human resource management executive give strategic planners information about the company's human resource capabilities.

Question 45

Which of the following statements is true of the SWOT analysis?

A)It can be used to identify an organization's internal strengths and weaknesses,but not the external threats posed by competitors.
B)It can be used to identify an organization's external strengths and weaknesses,but not its internal strengths and weaknesses.
C)It gives the strategic planning team of an organization all the information it needs to generate a number of strategic alternatives.
D)It fails to recognize the opportunities and threats in the external environment that are people-related.
E)An analysis of a company's internal strengths and weaknesses using the SWOT analysis eliminates the need for input from the HRM function.

Question 46

An organization uses ________ to measure the quantity and quality of its resources.

A)job modeling
B)realistic job preview
C)internal analysis
D)value chain analysis
E)job analysis

Question 47

The one-way linkage level

A)is the lowest level of integration.
B)restricts companies from considering human resource issues while formulating a strategic plan.
C)is multifaceted,based on continuing rather than sequential interaction.
D)often leads to strategic plans that companies cannot successfully implement.
E)segregates the human resource management department from other components of the strategic management process.

Question 48

The ________ component of the strategic management process 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)strategy formulation
E)operational implementation

Question 49

Sandman,Inc.has completed its strategic business plan and informed HR of how many employees will now need to be hired or retrained.This is an example of

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

Question 50

To provide excellent customer service to those in the electrical industry through the use of high-tech solutions is an example of a

A)work structure.
B)goal.
C)mission.
D)code of conduct.
E)vision.

Question 51

The strategic management decision-making process usually takes place at a firm's highest levels,with a firm's strategic planning group,which includes

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 52

EastWest is a consulting firm that helps organizations examine their operating environments.Their scope of work would be considered a(n)

A)job modeling.
B)internal analysis.
C)external analysis.
D)value chain analysis.
E)job analysis.

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

Which of the following statements is true of the strategic implementation stage of the strategic management process?

A)During this stage,an organization analyzes its strengths and weaknesses.
B)This is the first stage of the strategic management process,which is sequential in nature.
C)During this stage,an organization follows through on a strategy chosen in the strategy formulation stage.
D)During this stage,an organization defines its mission and goals.
E)This stage is independent of the formulation stage in the strategic management process.

Question 55

A common practice for companies in today's market is to look within at what is working and what is not.This is an example of a(n)

A)job analysis.
B)internal analysis.
C)job characteristics model.
D)competitor analysis.
E)job modeling.

Question 56

In the two-way linkage level,

A)the human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues.
B)the strategic planning function and the HRM function are independent of each other.
C)the second step involves the strategic planning team informing the human resource management function of various strategies.
D)the last step involves human resource management executives analyzing the human resource implications of the strategies suggested in the previous steps.
E)the human resource issues are allowed for consideration during the strategy formulation process.

Question 57

Which of the following statements is true of the administrative linkage level between the human resource management function and the strategic management function?

A)In this level,the human resource management department is completely divorced from any component of the strategic management process.
B)This level recognizes the importance of human resources in implementing the strategic plan.
C)In this level,the human resource management designs systems and/or programs that implement the strategic plan.
D)This level allows for consideration of human resource issues during the strategy formulation process.
E)In this level,the human resource management functions are built right into the strategy formulation and implementation processes.

Question 58

Which of the following 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)Executive linkage
E)One-way linkage

Question 59

Dionne,the HR manager,has been asked to share issues in the strategy formulation process.How do you know this is part of a two-way linkage?

A)The strategic planning function and the human resource management function are interdependent.
B)The two-way linkage level is the lowest level of integration.
C)The human resource management executive has no time to take a strategic outlook toward human resource issues.
D)The human resource function is limited to monitoring day-to-day activities.
E)The strategic planning function and the human resource management function are completely dependent.

Question 60

To achieve 100 percent compliance on the next 3 years' compliance inspections is an example of a

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

Question 61

A company employing a 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)have less tolerance for ambiguity.

Question 62

At least annually companies evaluate employees based on their activities and outcomes aligned with the organization's objectives.This then leads to discussions of future individual goals and professional development opportunities.This practice demonstrates that a company has a practice of

A)divestment.
B)differentiation.
C)performance management.
D)job enlargement.
E)realistic job preview.

Question 63

As a company prepares to look for talent in a particular position or group,it can evaluate the tasks needed,complete a talent inventory of current skill sets,and prepare a job description with knowledge,skills,and abilities (KSAs).This practice is also known as

A)job analysis.
B)internal analysis.
C)external analysis.
D)job design.
E)realistic job preview.

Question 64

Which of the following is true regarding the differentiation strategy?

A)The differentiation strategy cannot protect a company from price sensitivity.
B)Brand images play a negligible role in differentiation strategies.
C)Companies using the differentiation strategy have to build large-scale facilities.
D)Companies have to control their overhead costs to use the differentiation strategy.
E)Companies achieve above-average returns if they succeed in their differentiation strategy.

Question 65

Which of the following statements is true for companies that employ cost strategies?

A)They focus on high-quality production rather than efficient production.
B)They are very specific in the skills they require from their employees.
C)They shy away from investing in training employees in the skills they need.
D)They seek greater creativity by providing broader career paths to employees than companies that employ differentiation strategy.
E)They encourage their employees to take greater risks.

Question 66

When Clean Motors condensed all its parts factories into one large location,the company increased research and development and customer service,and decreased its sales force.How would this practice help the company to become a low-cost producer?

A)The company created a product that was different from other products in the market.
B)The company constructed efficient large-scale facilities.
C)The company invested heavily in branding its product.
D)The company invested in creating a unique customer service process.
E)The company started using the latest machines for its production facility.

Question 67

Which of the following describes the ways an 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)Code of conduct

Question 68

CompX Inc.is an online retailer of electronic products,including laptops and tablets.The company is known for its unique approach to customer support,which is known for going above and beyond in satisfying customer complaints and issues.What kind of a strategy is CompX using?

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

Question 69

Pavi,an employee with Manor Electricals,has been transferred to a different division within the company.To facilitate a smooth transition,the company has initiated a program for Pavi that will provide her with the knowledge and skills required to perform the new role effectively.Which of the following human resource management practices did Manor Electricals perform?

A)Training
B)Job analysis
C)Performance management
D)Selection
E)Recruitment

Question 70

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.

Question 71

The process by which a firm attempts to identify job 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)performance management.
D)training.
E)differentiation.

Question 72

A company that follows an overall cost leadership strategy

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

Question 73

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 economic success.
C)external analysis and internal analysis should be performed during implementation.
D)the quality of resources is more important than the quantity of resources.
E)choice of organizational processes and structural forms makes an economic difference.

Question 74

Benjamin,a plant manager,sets targets for his work lines every week.He rewards those who succeed and he makes note of those who do not reach their set target,placing them on warning.How would you describe this company's cost strategy?

A)The company has a high concern for quantity.
B)The company has a long-term focus.
C)The company performs tasks that are not independent.
D)The company is willing to take risks.
E)The company undertakes challenging and nonrepetitive work.

Question 75

________ is 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 76

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

A)innovation
B)divestment
C)downsizing
D)concentration
E)cannibalization

Question 77

Marisol,an HR manager at a technology firm,is entrusted with the task of hiring a member for a new team.She has already received information about what the new role will entail as well as the tasks that the new employee will be performing.She is currently using several media to seek applicants for the role.Which of the following human resource management (HRM)practices is Marisol performing?

A)Job designing
B)Recruitment
C)Performance management
D)Training
E)Job analysis

Question 78

Using websites like Indeed.com,Monster.com,and LinkedIn,a company can begin

A)selection.
B)recruitment.
C)training.
D)development.
E)appraisal.

Question 79

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

A)Such companies typically 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 work-related tasks that should be performed.

Question 80

Which of the following statements is true of companies that employ differentiation strategies?

A)They primarily focus on efficient production.
B)They only train employees in specific required skill areas.
C)They want their employees to be risk averse.
D)They want their employees to take a balanced approach to process and results.
E)They expect their employees to exhibit role behaviors that are relatively repetitive.