Deck 3: Human Resource Management Strategy and Analysis

Question 1

What is the first step in the basic planning process?

A) evaluating the possible alternatives
B) implementing a course of action
C) setting an objective
D) comparing options

Answer 1

C
Explanation: C)The first step of any type of plan is to set an objective or a goal.

Question 2

What is a company's plan for how it will match its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage?

A) strategic plan
B) situation analysis
C) SWOT analysis
D) tactical plan

Answer 2

A
Explanation: A)A strategic plan is a firm's plan for assessing internal strengths and weaknesses with external opportunities and threats.The essence of strategic planning involves asking,"Where are we now as a business and where do we want to be?" Managers then develop specific strategies for taking a firm where it wants to be.

Question 3

________ is a process involving setting objectives,making forecasts,reviewing alternative courses of action,evaluating options and implementing the plan.

A) Managerial planning
B) Financial auditing
C) Employee testing
D) Employee benchmarking

Answer 3

A
Explanation: A)The basic managerial planning process involves setting objectives,making forecasts,reviewing alternative courses of action,evaluating options and implementing the plan.Planning is always goal-directed.

Question 4

When Apple opened its own Apple stores,this was an example of ________.

A) market penetration
B) product development
C) vertical integration
D) horizontal integration

Question 5

The sales director at WebMD is calculating annual 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 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 6

What is the first step in the strategic management process?

A) formulating a strategy
B) defining the current business and its mission
C) translating a mission into goals
D) implementing an environmental scan

Question 7

Which of the following is NOT part of the basic managerial planning?

A) evaluation of best options
B) establishment of clear objectives
C) implementation of the plan
D) interference from corporate hierarchies

Question 8

A diversification corporate strategy implies that a firm will ________.

A) expand by adding new product lines
B) reduce the company's size to increase market share
C) save money by producing its own raw materials
D) increase profits by offering one popular product

Question 9

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

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

Question 10

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 11

Which of the following provides a summary of a firm's intended direction and shows,in broad terms,"what we want to become"?

A) mission statement
B) strategic plan
C) vision statement
D) marketing plan

Question 12

________ defines the nature of the company's business in terms of the markets in which it will compete and the ways it will differentiate itself from its competitors.

A) Financial auditing
B) Strategic planning
C) Employee benchmarking
D) Employee testing

Question 13

A course of action that a firm can pursue to achieve its strategic aims is known as a ________.

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

Question 14

Which term indicates the course of action for getting from where you are to where you want to go?

A) goal
B) plan
C) proposition
D) assessment

Question 15

All of the following are steps involved in the strategic management process EXCEPT ________.

A) evaluating the firm's internal and external situation
B) defining the business and developing a mission
C) crafting a course of action
D) offshoring low-AACSB jobs

Question 16

Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its ________.

A) environmental demands
B) competitive standards
C) natural resources
D) hierarchical AACSBs

Question 17

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 chart
D) EPS/EBIT table

Question 18

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

A) conglomerate diversification
B) geographic expansion
C) related diversification
D) horizontal integration

Question 19

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) workforce requirement matrix
B) environmental scan worksheet
C) external resource system table
D) potential globalization network

Question 20

Winchester Rugs operates a Web site called www.buyrugsdirect.com,so Winchester Rugs is most likely using a strategy of ________.

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

Question 21

Human resource strategies are the ________ used to support a firm's strategic goals.

A) visions and objectives
B) policies and practices
C) missions and goals
D) theories and tools

Question 22

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) Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so that the company can keep prices low.

Question 23

What is the primary reason that mergers and acquisitions fail?

A) technology
B) financing
C) personnel
D) stock prices

Question 24

Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as ________.

A) strategic human resource management
B) human resource performance systems
C) high-performance personnel management
D) personnel management by objectives

Question 25

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

A) develop human resource policies that align with industry standards
B) integrate a company'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 globalization

Question 26

________ is a strategic planning tool that shows the "big picture" of how each department performance contributes to achieve the company's overall strategic goal.

A) Strategic objectives
B) Visionary strategy
C) Vertical strategy
D) Strategy map

Question 27

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

A) functional strategy
B) competitive advantage
C) distinctive competence
D) related diversification

Question 28

Which of the following strategies identifies the broad activities that each department will pursue in order to help a business attain its competitive goals?

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

Question 29

A company's business-level strategy identifies the ________.

A) ways to strengthen a firm's long-term competitive position in the marketplace
B) tools for diversifying a business portfolio through the acquisition of MNEs
C) means to becoming a low-cost leader within a highly competitive industry
D) ways to carve out a market niche in order to compete for high-end customers

Question 30

Which of the following is the final step in the strategic human resource management process?

A) identifying a firm's workforce requirements
B) formulating an effective business strategy
C) measuring the effectiveness of HR practices
D) testing current employees for AACSBs and knowledge

Question 31

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

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

Question 32

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

Question 33

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

A) supplier
B) department
C) executive
D) employee

Question 34

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 market penetration?

A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic snack foods and organic coffee.
B) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic beverages more frequently if the prices were lower.
C) Sweet Leaf Tea can achieve growth by aggressively selling its beverages in current markets where loyal customers will help boost word-of-mouth.
D) Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on regional grocery-store chains rather than big box national retailers.

Question 35

Which of the following most likely serves as the basis for the HR strategies developed by the majority of firms?

A) mission statements
B) supervisory objectives
C) competitive advantages
D) workforce requirements

Question 36

All of the following are roles that departmental managers would most likely have in the strategic planning process EXCEPT ________.

A) developing functional, departmental plans
B) assisting top managers in devising a strategic plan
C) deciding the businesses in which a firm will be involved
D) providing input to top management about industry trends

Question 37

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

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

Question 38

Which of the following activities most likely indicates that a firm is implementing a vertical integration strategy?

A) selling unprofitable divisions
B) producing raw materials
C) aggressively selling a new product
D) purchasing a competitor's firm

Question 39

The 2008 announcement by Starbucks that it would be closing approximately 600 of its stores suggests the firm was using a ________ strategy.

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

Question 40

A company's ________ strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.

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

Question 41

Which of the following is a strategic planning tool that offers an overview of how each department's performance contributes to achieving the company's overall strategic goals?

A) digital dashboard
B) HR scorecard
C) strategy map
D) HR audit

Question 42

Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals?

A) functional planning system
B) HR Scorecard
C) annual HR benchmarks
D) high-performance work system

Question 43

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

A) multi-skilled work teams
B) empowered front-line workers
C) extensive training
D) commitment to high production rates

Question 44

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) strategizing
D) outsourcing

Question 45

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

A) management by objectives system
B) human resource metric
C) high-performance work system
D) strategic human resource map

Question 46

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

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

Question 47

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) high-performance work system
B) scorecard management system
C) benchmark and metric analysis
D) management by objectives strategy

Question 48

The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR activities,employee behaviors resulting from the activities,and the strategically relevant organizational outcomes of those employee behaviors is called a(n)________.

A) evaluation system
B) HR scorecard
C) appraisal system
D) evaluation benchmark

Question 49

The use of human resource metrics is essential for ________.

A) management by objectives
B) emergent employee behaviors
C) corporate-level strategies
D) evidence-based management

Question 50

Which of the following best explains the increased success of mergers and acquisitions over the last decade?

A) improvements in wireless communication technology
B) fewer restrictions regarding corporate globalization
C) federal legislation regarding employee wages and rights
D) consistent involvement of human resource management

Question 51

A ________ presents a manager with desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process.

A) strategy map
B) business plan
C) scanning worksheet
D) digital dashboard

Question 52

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 regards 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 economic and demographic trends in the U.S. are related to the employee turnover rate at MAX?

Question 53

Which of the following is the most important human resource issue to address during the first few months of a merger?

A) hiring low-level managers
B) modifying benefits packages
C) identifying and retaining key talent
D) modifying employee pay grades

Question 54

Which of the following refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results?

A) strategy map
B) HR scorecard
C) HR feedback scale
D) digital dashboard

Question 55

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) human resource audits
B) human resource metrics
C) management by objectives
D) human resource scorecards

Question 56

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

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

Question 57

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 best supports the argument that MAX should move towards a high-performance work system?

A) MAX competitors regularly use benchmarking to compare their employees to those in other firms.
B) MAX customers purchase new computers every two years according to online customer surveys.
C) Outsourcing clerical tasks would enable MAX to raise employee salaries and increase productivity.
D) Using advanced recruitment and hiring practices will allow MAX to improve employee productivity.

Question 58

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

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

Question 59

All of the following are services that human resource consulting companies,such as Towers Perrin,provide during mergers and acquisitions EXCEPT ________.

A) aligning compensation programs
B) overseeing database recovery systems
C) designing and implementing staffing models
D) managing employee communications strategies

Question 60

During a merger or an acquisition,due diligence reviews performed by human resource teams are most likely to assess all of the following EXCEPT ________.

A) accounting procedures
B) employee litigation
C) employee benefits
D) labor relations

Question 61

Like the scientific method,evidence-based HR management should have all of the following characteristics EXCEPT ________.

A) quantification
B) replication
C) subjectivity
D) prediction

Question 62

Which term refers to software applications used to analyze and draw conclusions from HR data?

A) data mines
B) talent analytics
C) HR scorecards
D) digital dashboards

Question 63

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 checklist
D) HR audit

Question 64

Which of the following would most likely NOT occur during the HR critical stage of a merger or acquisition?

A) select top management
B) pay out incentives
C) align organizational cultures
D) communicate changes to workers

Question 65

Cost leadership,differentiation,and focus strategies are types of corporate-level strategies.

Question 66

According to the text,teams of empowered,engaged,and dedicated workers at GE serve as a(n)________.

A) HR metric
B) strategic fit
C) functional strategy
D) competitive advantage

Question 67

Which of the following questions would LEAST likely be answered by the use of workforce analytics software?

A) Which departments need improvement?
B) What hiring policies are standard in the industry?
C) How many workers will the firm need in five years?
D) Why do employees choose to leave the organization?

Question 68

Managers engage in three levels of strategic planning.

Question 69

Executives at Hartford Clothing,a retail department store chain,want to find out what products their customers buy,when they purchase products,and what days of the week are most popular for shopping.Executives want to discover customer patterns and make predictions about their customers' buying habits.What would be the most effective tool for Hartford?

A) data mining system
B) talent value model
C) financial audit
D) strategy map

Question 70

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

Question 71

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

Question 72

A vertical integration strategy means that a firm will expand by adding new product lines.

Question 73

An HR manager conducting an HR audit on compensation would most likely search for ________.

A) current job descriptions
B) workforce health and safety training
C) completed benefit enrollment forms
D) compliance with state and federal laws

Question 74

Strategy management focuses more on translating a mission into goals than on the functions of organizing,staffing,and controlling.

Question 75

Consolidation keeps the company's strategy up to date by assessing progress toward strategic goals and taking corrective action as needed.

Question 76

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

Question 77

Palo Alto software would most likely be used by a manager to ________.

A) write a business plan
B) analyze job positions
C) track sources of new hires
D) identify recruiting weaknesses

Question 78

Strategy is a course of action.

Question 79

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

Question 80

All of the following are commonly addressed in an HR audit EXCEPT ________.

A) exempt workers
B) job descriptions
C) accounting expenses
D) workers' compensation benefits