Question 1

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

Accepted Answer

The theory being applied here is the resource-based view, which emphasizes that a firm's resources and capabilities are the primary source of its competitive advantage. In this example, IBM's technical support people are a valuable resource that Microsoft cannot imitate easily, making it a competitive advantage for IBM.

Question 2

In many ways,HR strategy generates the business strategy,and business strategy determines the HR strategy.What is the concept that describes this relationship?
A) reciprocal strategy
B) reciprocal partnerships
C) reciprocal dependence
D) reciprocal interdependence

Accepted Answer

The concept that describes the relationship between HR strategy and business strategy as mutually dependent is reciprocal interdependence. This means that the two strategies rely on each other to achieve successful outcomes and cannot be developed or executed independently. HR strategy plays a crucial role in helping the organization achieve its business goals, while business strategy guides HR in terms of the specific skills, talent and culture required to achieve those goals.

Question 3

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

Accepted Answer

The purpose of strategic HRM is to ensure the effective functioning and survival of the organization and its members by aligning HR policies and practices with the overall business strategy. This involves attracting and retaining the right talent, developing employees' skills and competencies, and creating a culture that supports organizational goals. Ultimately, strategic HRM helps organizations achieve their objectives and compete effectively in their industry. Options B, C, and D are too narrow in their focus and do not fully capture the broad purpose of strategic HRM.

Question 4

Ten Tree Apparel
Ten Tree Apparel is a Regina-based company devoted to producing all its clothing responsibly and locally.It uses only 100 percent organic cotton and unprocessed hemp to create premium-priced contemporary clothing that is unique.Ten Tree Apparel's clothing comes with a distinctive environmental bonus.For every piece of clothing a customer purchases,Ten Tree Apparel plants ten trees.The brand believes in a social enterprise model of business that can inspire a new group of consumers to tackle environmental challenges through reforestation efforts.
Ten Tree Apparel is most likely to gain a sustained competitive advantage through its people by using which of the following programs?
A) one in which employees are motivated through training and reward initiatives
B) one in which employee talent is organized,difficult to imitate,rare,and valuable
C) one in which employees are empowered and engaged in their work
D) one in which employees have skills and knowledge that are transferable to many positions.

Accepted Answer

A sustained competitive advantage is achieved when employee talent is organized, difficult to imitate, rare, and valuable, aligning with Ten Tree Apparel's unique business model and values.

Question 5

What kind of strategy is an organization using if it attempts to pay wages slightly below industry norms?
A) outsourcing
B) compensation
C) differentiation
D) lag

Accepted Answer

The organization is using a lag strategy by paying slightly below industry norms. This means they are delaying adjustments to their wages or compensation packages to stay slightly under the competition. This can be a cost-saving tactic, but it may also lead to difficulties in hiring and retaining employees.

Question 6

According to classical economics,what are the three most important resources or inputs?
A) labour,capital,land
B) capital,knowledge,land
C) knowledge,economics,land
D) economics,assets,land

Accepted Answer

According to classical economics, the three most important resources or inputs are labor, capital, and land. Labor refers to the human effort involved in production, capital refers to the tools, machinery, and other equipment used to produce goods and services, and land refers to the natural resources like minerals, forests, water, and oil that are necessary for production.

Question 7

What two items does an organization match together in the human capital perspective of HRM?
A) values of employees and the organization's budget
B) capacity of employees and the organization's motivation
C) capabilities of employees and the organization's strategy
D) creativity of the employees and the organization's goals

Accepted Answer

The human capital perspective of HRM involves matching the capabilities of employees with the organization's strategy. This ensures that the organization has the necessary skills and competencies to achieve its goals and objectives.

Question 8

Which of the following does NOT align human resources strategy with business strategy?
A) starting with organizational strategy and then creating HR strategy
B) starting with HR competencies and then creating corporate strategy
C) starting with HR strategy and then creating HR competencies
D) starting with business strategy and then creating HR strategy

Accepted Answer

The answer of Which of the following does NOT align...

Question 9

If a company uses a differentiation strategy,what is it more concerned with relative to equity with the external market?
A) pay structures
B) compensation strategy
C) pay for performance
D) internal equity

Accepted Answer

A company using a differentiation strategy is more concerned with internal equity, as this strategy focuses on offering unique and distinct products or services that stand out in the market. Therefore, the company aims to attract and retain highly skilled and talented employees who can contribute to the creation and delivery of these differentiated products or services. Thus, the emphasis is on creating internal equity by offering employees competitive salaries, benefits, and other non-monetary rewards that recognize and reward their skills, knowledge, and contributions. The company may not be as concerned about pay structures, compensation strategies, or pay for performance as much as it is about ensuring each employee's fair share of company resources.

Question 10

According to the textbook,which company did NOT modify its strategy when external environment conditions changed and subsequently went bankrupt?
A) Marks & Spencer
B) Consumers Distributing
C) Eaton's
D) Woolco

Accepted Answer

According to the textbook, Marks & Spencer modified its strategy to address the changing external environment by expanding abroad, Eaton's experimented with new store formats, and Woolco attempted to cut costs and reduce prices to compete with discount retailers. However, Consumers Distributing did not change its strategy and subsequently went bankrupt.

Question 11

Four Seasons Hotels competes on service excellence.It invests in HR systems for service quality,such as selecting,training,and rewarding employees' service-related skills.What theory is being applied by Four Seasons Hotels.
A) service quality
B) resource-based view
C) human capital
D) behavioural

Accepted Answer

The theory being applied by Four Seasons Hotels is human capital, which refers to the knowledge, skills, and abilities of employees that create value for the organization. By investing in HR systems for service quality, Four Seasons Hotels is developing and leveraging the human capital of its employees to create a competitive advantage based on service excellence. The other options (service quality, resource-based view, and behavioral) are related concepts but do not fully capture the theory being applied in this case.

Question 12

When the HR training department teaches individuals a new customer service computer program,the HR recruiting department must work together with the HR training department to hire individuals with comparable computer skills.What is this collaborative approach called?
A) cross-functional HR practices
B) industry-consistent HR practices
C) exemplary HR practices
D) bundling HR practices

Accepted Answer

The answer of When the HR training department teaches individuals...

Question 13

Fit is an important consideration when designing HR programs.What is it called when an organization fits its HR strategy to other functional areas?
A) internal fit
B) best fit
C) external fit
D) organizational fit

Accepted Answer

Internal fit refers to the alignment between an organization's HR strategy and other functional areas within the organization, such as finance, marketing, and operations. This ensures that HR programs support and complement the overall business strategy, making the organization more effective and efficient. Best fit and organizational fit refer to broader concepts that encompass the alignment between an organization's HR strategy and its external environment, including the competitive landscape and societal trends. External fit specifically refers to the alignment between an organization's HR strategy and the external labor market.

Question 14

According to the textbook,which of the following does NOT use a differentiation strategy?
A) BMW
B) Polo Ralph Lauren
C) Rolex
D) IBM

Accepted Answer

The textbook does not provide evidence that IBM uses a differentiation strategy.

Question 15

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

Accepted Answer

Swimco is applying the behavioural perspective to its strategic management by focusing on defining and developing the behaviours necessary to achieve its organizational capabilities of innovation and customer care. This perspective emphasizes the importance of understanding individual and group behavior in organizations to improve overall performance.

Question 16

At Sears,which of the following will NOT be an impact on customers if employees are trained to change their behaviours?
A) customer satisfaction
B) customer retention
C) customer sales
D) customer appreciation

Accepted Answer

Customer appreciation is not directly impacted by the behaviour of employees. While good employee behaviour may lead to customers feeling appreciated, it is not a direct impact like customer satisfaction, retention, and sales.

Question 17

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

Accepted Answer

The quote is an example of a value statement, as it expresses the company's beliefs and commitments towards customer satisfaction and confidence.

Question 18

What percentage of payroll do Canadian organizations typically pay for fringe benefits for their employees?
A) 20 percent
B) 25 percent
C) 30 percent
D) 35 percent

Accepted Answer

Canadian organizations typically pay around 30 percent of payroll for fringe benefits for their employees.

Question 19

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

Accepted Answer

The answer of Swimco
Swimco is a beach- and resort-wear retailer...

Question 20

Costs incurred in training,motivating,compensating,and monitoring employees can be viewed as investments in human capital that result in gains to productivity per worker.How does this type of investment yield such gains?
A) by matching the business strategy to the external environment
B) by matching the capabilities of employees with the corporate strategy
C) by matching the needs of the employees to their desires for empowerment
D) by matching the HR strategy to the potential employee competencies

Accepted Answer

By investing in training, motivating, compensating, and monitoring employees, the company is improving the capabilities of its workforce and aligning their skills with the goals of the corporate strategy. This, in turn, leads to an increase in productivity and efficiency, resulting in gains for the company. Therefore, option B is the best choice as it directly links the investment in human capital to gains in productivity per worker.

Quiz 2: Aligning HR With Strategy

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

What is the purpose of strategic HRM?

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

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

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

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

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

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

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

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

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

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

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

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

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