Deck 2: Strategic Human Resource Management

Question 1

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

Answer 1

False
Explanation: Companies that are "steady state" (not diversified)tend to have evaluation systems that call for subjective performance assessments of managers. This stems from the fact that those above the first-level managers in the hierarchy have extensive knowledge about how the work should be performed.

Question 2

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

Answer 2

False
Explanation: Recruitment is the process through which an organization seeks applicants for potential employment.

Question 3

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

Answer 3

False
Explanation: Overall cost leadership is achieved by constructing efficient large-scale facilities, by reducing costs through capitalizing on the experience curve, and by controlling overhead costs and costs in such areas as research and development, service, sales force, and advertising.

Question 4

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

Question 5

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

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

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

Question 10

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

Question 11

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

Question 12

Concentration strategies require that an organization bring radical change to the current skills that exist in the organization.

Question 13

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 14

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

Question 15

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

Question 16

Strategy implementation includes structuring an organization and allocating resources.

Question 17

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

Question 18

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

Question 19

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

Question 20

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 21

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

Question 22

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

Question 23

Downsizing gives an organization the opportunity to change its culture.

Question 24

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

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

Question 25

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 product.
D)These costs change directly with the units produced.
E)These costs refer to the total amount of margin made by a firm.

Question 26

A(n)_____ typically charts 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 27

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 Mid-West 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 28

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 29

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 30

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

Question 31

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 32

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 33

_____ is a process that primarily addresses the competitive challenges an organization faces.

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

Question 34

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

Question 35

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 36

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 37

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

Question 38

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 39

_____ 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 40

Which of the following is 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 41

_____ 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 42

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 43

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 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 to give strategic planners information about the company's human resource capabilities.

Question 45

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 46

Which of the following statements is true of a 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 47

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 Resources Management function of various strategies.
D)the last step involves Human Resources 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 48

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 49

The one-way linkage level:

A)is the lowest level of integration.
B)restricts companies from considering human resource issues while formulating 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 Resources Management department from other components of the strategic management process.

Question 50

Which of the following is a statement that contains information on the customers that will be served, the needs that will be satisfied, and the technology that will be used by the company?

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

Question 51

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

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

Question 52

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 53

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)A SWOT analysis 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 54

Which is the level of integration at which the human resource management primarily 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)Executive linkage

Question 55

Which of the following is used by an organization to identify its strengths and weaknesses?

A)Job analysis
B)Internal analysis
C)Job characteristics model
D)Competitor analysis
E)Job modeling

Question 56

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

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

Question 57

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

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 58

External analysis and internal analysis combined constitute the _____.

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

Question 59

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 60

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 61

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)quality of resources is more important than the quantity of resources.
E)choice of organizational processes and structural forms make an economic difference.

Question 62

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 63

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 64

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 65

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

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

Question 66

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 67

Anna, a 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 mediums to seek applicants for the role. Which of the following human resources management (HRM)practice is Anna performing?

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

Question 68

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 69

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 70

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 71

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.

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 its cost

Question 73

Which of the following is true regarding the 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 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 74

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

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

Question 75

Companies engaged in a cost strategy require employees to:

A)have a high concern for quantity.
B)have a long-term focus.
C)perform tasks that are not independent.
D)be willing to take risks.
E)undertake challenging and non-repetitive work.

Question 76

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 77

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)Realistic job preview

Question 78

Jane, 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 Jane that will provide her with the necessary knowledge and skills required to perform the new role effectively. Which of the following human resources management practices did Manor Electricals perform?

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

Question 79

Which of the following activities entails specifying those activities and outcomes that will result in the organization successfully implementing the strategy?

A)Divestment
B)Differentiation
C)Performance management
D)Job enlargement
E)Realistic job preview

Question 80

_____ 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