Deck 3: Human Resource Strategy and Analysis

Question 1

As an HR manager, you have been given the task of conducting an HR audit. Which of the following areas would you be LEAST likely to address in the audit process?

A) federal compliance
B) group benefits
C) termination policies
D) media communication

Answer 1

D
Explanation: D) Most HR audits address legal issues such as compliance with federal, state, and local laws. In addition, the audit should cover group benefits and termination policies. Internal communication is covered by an audit but not external communication through the media.

Question 2

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 audit
D) HR ratio

Answer 2

C
Explanation: C) An HR audit is an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions. Compliance audits, best practices audits, strategic audits, and function-specific audits are the types of HR audits used by firms. Benchmarking, which involves comparing one firm with another, is an additional tool used by managers who take an evidence-based approach to HR management.

Question 3

With evidence-based HR management, the evidence is LEAST likely to come from ________.

A) actual measurements
B) existing data
C) personnel reports
D) research studies

Answer 3

C
Explanation: C) The evidence may come from actual measurements you make (such as, how did the trainees like this program?). It may come from existing data (such as, what happened to company profits after we installed this training program?). Or, it may come from published critically evaluated research studies (such as what does the research literature conclude about the best way to ensure that trainees remember what they learn?).

Question 4

An HR specialist conducting an HR audit should review which of the following when auditing recruitment and selection practices?

A) disciplinary procedures
B) FLSA compliance
C) workers' compensation
D) background check policies

Question 5

High performance companies are more likely than low-performance companies to ________.

A) reject the majority of applicants
B) hire based on selection tests
C) have larger workforces
D) have longer work hours

Question 6

High-performance work organizations are most likely characterized by all of the following EXCEPT ________.

A) commitment to high production rates
B) empowered front-line workers
C) labor management cooperation
D) multiskilled work teams

Question 7

All of the following are commonly used HR metrics EXCEPT ________.

A) health care costs per employee
B) absence rate
C) cost per new hire
D) communication expenses

Question 8

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) high-performance work system
B) human resource scorecard
C) human resource metric
D) human resource audit

Question 9

MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is high-most employees at MAX leave within 2 years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system. Which of the following best supports the argument that MAX should move towards a high-performance work system?

A) MAX will be able to reduce quality control issues by reassigning line and staff managers to new departments.
B) Using tests and validated interviews during recruitment will enable MAX to screen job candidates effectively.
C) Outsourcing clerical tasks will enable MAX to raise employee salaries, implement flexible schedules, and increase productivity.
D) MAX's competitors regularly use benchmarking as a method for comparing their employees with those in other firms.

Question 10

All of the following practices are most likely implemented by companies with high-performance work systems EXCEPT ________.

A) utilizing self-managing work teams
B) filling positions with internal candidates
C) providing pay increases based on service years
D) hiring employees based on validated selection tests

Question 11

Using data, facts, scientific rigor, and case studies to support HR management proposals and practices is best known as ________.

A) evidence-based HR management
B) strategic HR management
C) international HR management
D) management by objectives

Question 12

MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is high-most employees at MAX leave within two years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system. Which of the following questions is most relevant to MAX's decision to move toward a high-performance work system?

A) How would the implementation of self-managing work teams affect employee morale and work standards at MAX?
B) How will qualitative performance measures address the needs of MAX employees in regard to the firm's benefits plan?
C) What roles should line managers, staff managers, and HR managers at MAX play in performance appraisals?
D) What case studies are available to compare the skills of MAX employees with workers in other industries?

Question 13

The primary purpose of implementing high-performance practices such as recruiting, screening, and training is to ________.

A) foster a strong organizational culture
B) develop a trained and self-motivated workforce
C) create management opportunities for new hires
D) use benchmarks to compare personnel skills within an industry

Question 14

Empowerment, teamwork, and extensive training are primarily characteristics of ________.

A) high-performance work systems
B) transactional services
C) strategic development
D) evidence-based management

Question 15

Linking HR policies and practices with strategic goals in order to improve business performance is known as ________.

A) strategic human resource management
B) supply chain management
C) succession planning
D) behavior modeling

Question 16

Which of the following terms refers to a set of human resource management policies and practices that promote organizational effectiveness?

A) human resource metric
B) corporate-level strategy
C) strategic human resource map
D) high-performance work system

Question 17

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) outsourcing
D) strategizing

Question 18

An HR specialist conducting a compliance audit should most likely have a solid understanding of ________.

A) health benefits
B) federal employment laws
C) employee selection tools
D) corporate termination policies

Question 19

A ________ metric focuses on measuring the activities that contribute to achieving the company's strategic aims.

A) strategy-based
B) high-performance
C) human resource
D) benchmark

Question 20

Which area of an HR audit is most likely being assessed by an HR specialist who is reviewing job descriptions and the employment status of current employees?

A) employee relations
B) roles and head count
C) mandated benefits
D) group benefits

Question 21

Which of the following is NOT part of strategic planning?

A) defining the business and developing a mission
B) translating a mission into strategic goals
C) crafting a course of action
D) conducting a job analysis

Question 22

Which of the following of the following best describes the general purpose of a strategic plan?

A) obtaining global resources
B) monitoring employee recruiting
C) maintaining a competitive advantage
D) providing opportunities for expansion

Question 23

Last year, General Motors began a strategy to improve product quality and customer satisfaction. Recent reports show that GM's product recalls for the first half of the year are higher than for the entire previous year. GM explains that the figures support the corporate commitment to quality and satisfaction. In which step of the strategic management process is GM currently focusing?

A) defining the business and its mission
B) translating the mission into strategic goals
C) formulating a strategy
D) evaluating performance

Question 24

Which of the following is true of companies with high-performance HR systems compared to low-performance companies?

A) incentive payments are lower
B) sales per employee are higher
C) employee turnover is higher
D) market value to book value is lower

Question 25

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 26

Which of the following is a course of action that answers the question, "How do we get from here to there?"

A) case study
B) mission
C) strategy
D) vision

Question 27

Which of the following is most likely a true statement about high-performance companies?

A) Most employees receive regular performance appraisals.
B) The employee turnover rate is extremely high.
C) Only executives are eligible for incentive pay.
D) The majority of jobs are filled externally.

Question 28

A ________ statement indicates the firm's intended direction and evokes emotional feelings in organization members.

A) performance
B) strategic
C) mission
D) vision

Question 29

Holt Tractor Company needs a new strategic plan as a result of losing market share to other farm equipment companies. A management team at the firm is following the steps of the strategic management process. So far, the team has performed external and internal audits. What is the next step in the strategic management process?

A) evaluating the firm's performance
B) defining the business and its mission
C) formulating a new mission statement
D) developing a competitive strategy

Question 30

Which of the following is the most likely source of a company's hierarchy of goals?

A) structure of the firm's HR department
B) assessment center of the firm
C) basic planning process of the firm
D) organizational chart of the firm

Question 31

The primary tool used by managers who are performing external and internal audits as part of the strategic management process is the ________.

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

Question 32

Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses validated selection tests when considering external hires. This most likely suggests the company is developing a ________.

A) scorecard management system
B) high-performance work system
C) selection metric
D) benchmark

Question 33

Vision statements focus on the ________.

A) past
B) present
C) future
D) impossible

Question 34

The sales director at WebMD is developing goals regarding 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 most likely involved?

A) performing external and internal audits
B) defining the business and its mission
C) translating a mission into strategic goals
D) evaluating strategic decisions

Question 35

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

A) organization chart
B) workforce requirement matrix
C) external resource system table
D) environmental scanning worksheet

Question 36

During the strategic planning process, environmental scanning worksheets are used for ________.

A) providing employees with job performance data
B) gathering information about economic trends
C) formulating a mission and vision statement
D) assessing the implementation of a strategy

Question 37

What is the first step in the strategic management process?

A) performing internal audits
B) defining the current business
C) translating the mission into strategic goals
D) implementing a long-term strategy

Question 38

A ________ lays out what a business strives to be while a ________ lays out what it should be now.

A) mission; vision
B) vision; mission
C) goal; strategy
D) CEO; CFO

Question 39

Which of the following summarizes a company's main tasks at the present time?

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

Question 40

A team of managers has been assigned the task of developing and implementing a strategic plan using the strategic management process. The team has already defined the current business and mission. What should the team most likely do next?

A) write a new mission statement
B) perform a SWOT analysis
C) evaluate the firm's vision
D) assess the firm's performance

Question 41

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

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

Question 42

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

Question 43

Winchester Rugs operates a website called www.buyrugsdirect.com, so Winchester Rugs is most likely implementing a strategy of ________.

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

Question 44

What does a company's business-level strategy identify?

A) how to build and strengthen the business's long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the basic courses of action that each department will pursue in order to help the business attain its competitive goals
D) what characteristics make the firm unique in the industry

Question 45

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

A) functional strategy
B) competitive advantage
C) corporate strategy
D) related diversification

Question 46

A company's ________ strategy identifies the basic courses of action that each department will pursue in order to help the business attain its competitive goals.

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

Question 47

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

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

Question 48

A firm that expands by producing its own raw materials or acquiring a retail outlet to sell its own products is most likely using a strategy of ________.

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

Question 49

A diversification corporate strategy implies that a firm will ________.

A) become an industry's low-cost leader
B) expand by adding new product lines
C) save money by producing its own raw materials
D) reduce the company's size to increase market share

Question 50

What does a company's functional-level strategy identify?

A) how to build and strengthen the business's long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the basic courses of action that each department will pursue in order to help the business attain its competitive goals
D) how the company can become a low-cost leader

Question 51

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) Sweet Leaf Tea has decided to lower its prices by replacing cane sugar with corn syrup in some of its beverages.

Question 52

Marriott Hotels is considering the acquisition of a furniture-making business. What type of strategy is Marriott most likely pursuing?

A) consolidation
B) diversification
C) concentration
D) geographic expansion

Question 53

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 expand its customer base and reduce costs by selling its products directly at Sweet Leaf stores.
B) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.
C) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.
D) Sweet Leaf Tea can achieve growth by aggressively selling its beverages in current markets where loyal customers will help boost word-of-mouth.

Question 54

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

A) employee
B) executive
C) department
D) HR manager

Question 55

What does a company's corporate-level strategy identify?

A) the company's long-term competitive position in the marketplace
B) the portfolio of businesses that comprise the company
C) the possibility of becoming a low-cost leader
D) the sources of uniqueness in the industry

Question 56

Walmart competes on price, while Target competes on style. Walmart follows a competitive strategy based on ________ while Target follows a strategy based on ________.

A) cost leadership, differentiation
B) focusing, cost leadership
C) geographic location, focusing
D) differentiation, niche leadership

Question 57

Starbucks announced that it will be closing approximately 600 of its stores. This information suggests the firm is most likely using a ________ strategy.

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

Question 58

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

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

Question 59

Which type of strategy identifies how to build and strengthen a firm's long-term competitive position in the marketplace?

A) functional
B) business-level
C) corporate-level
D) vertical integration

Question 60

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

A) develop human resource policies that align with industry standards
B) link an organization'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 global strategies

Question 61

Suzanne, an employee at Sound Wave Systems, believes that the firm's warehouse is an unsafe environment due to slippery floors and faulty stair rails. After consulting the employee manual, Suzanne writes a letter about the situation to her immediate supervisor. Suzanne is most likely following the firm's ________.

A) policies
B) strategies
C) missions
D) procedures

Question 62

As an HR manager, you would most likely use a strategy map to ________.

A) outline a presentation for top executives
B) quantify the financial and nonfinancial goals of a firm
C) understand the chain of activities that contributes to a firm's success
D) assess the effects of employee training programs on retention rates

Question 63

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

Question 64

Which term refers to the employee skills and behaviors that a firm needs to achieve its strategic goals?

A) task analyses
B) mission statements
C) supervisory objectives
D) workforce requirements

Question 65

Which term refers to the set of activities used to find new, hidden, or unexpected patterns in data?

A) benchmarking
B) data mining
C) data management
D) strategic mapping

Question 66

All of the following are HR tools used to translate a firm's strategic goals into HR policies and activities EXCEPT ________.

A) scatter plot
B) strategy map
C) digital dashboard
D) HR scorecard

Question 67

Which of the following questions would LEAST likely be answered through talent analytics?

A) Which units and departments need improvement?
B) Why are the firm's competitors outsourcing more tasks?
C) What are the key indicators of the firm's overall health?
D) Why do employees choose to leave the firm?

Question 68

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

Question 69

Mona, an HR manager, is using the HR scorecard process to quantify a strategy map. Which of the following tasks is Mona LEAST likely to perform?

A) informing all employees of their goals
B) holding structured interviews with participants
C) monitoring and assessing employee performance
D) assigning financial and nonfinancial goals to activities

Question 70

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

A) HR tools
B) HR strategies
C) company norms
D) employee cultures

Question 71

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

Question 72

Technical issues are the major reasons for the dismal failure rate of mergers and acquisitions.

Question 73

Human resource strategies are the ________ used to produce the desired workforce skills, competencies, and behaviors needed to support a firm's strategic goals.

A) visions and missions
B) policies and practices
C) theories and evaluations
D) objectives and plans

Question 74

Which term refers to a process for assigning financial and nonfinancial goals to the chain of activities required for achieving the company's strategic aims?

A) HR ratio analysis
B) strategy mapping
C) behavior modeling
D) HR scorecard

Question 75

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

Question 76

When mergers and acquisitions fail, it is most likely a result of ________ issues.

A) structural
B) financial
C) technical
D) personnel

Question 77

The employee manual at Go-Tech states that the firm "complies with all laws, regulations, and principles of ethical conduct." This statement is an example of a Go-Tech ________.

A) policy
B) strategy
C) mission
D) procedure

Question 78

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

A) aligning payroll systems
B) overseeing database recovery systems
C) designating key talent
D) identifying potential pension shortfalls

Question 79

Which of the following is a software application used to evaluate data about employee backgrounds, capabilities, and performance for the purpose of predicting employee retention?

A) talent management
B) strategy mapping
C) workforce analytics
D) ratio analysis

Question 80

As an HR manager with Northern Airlines, Stan reviews graphs and charts on his computer to understand the relationship between HR activities, employee behaviors, and strategic outcomes. Which of the following tools does Stan most likely use?

A) strategy map
B) HR scorecard
C) digital dashboard
D) corporate scatter plot