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Chapter 01 - Strategic Human Resource Management in a Changing Environment
Chapter 1 Strategic Human Resource Management in a Changing
Environment
True/False Questions
[QUESTION]
1. The two major principles that describe the competitive advantage that a business has are
perceived customer value and uniqueness.
2. Validated selection and promotion systems are related to lower productivity and high costs.
3. 360 degree performance appraisal and feedback is a form of multi-source performance
appraisal and feedback.
4. Quantitative reviews, also known as meta-analyses are used to evaluate the effectiveness of
HRM methodology.
5. Unlike other corporate functions, such as Finance, HRM is not concerned with quantitative
analysis as a part of decision-making preferring to rely on intuition to make decisions.
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1-2
6. Organizational design is concerned with establishing, fostering, and maintaining employee
skills based on organizational and employee needs.
7. Increasing globalization of the economy and a growing competitive work environment with a
premium on product and service quality is one of the trends enhancing the importance of HRM.
8. Outplacement and promotional decisions are common activities under the HRM domain of
Organization Design.
9. One of the six steps for creating a workforce scorecard is to develop supporting HR
management and measurement systems.
10. The metrics challenge ascertains whether managers have the access, capability, and
motivation to use the measurement data to communicate strategy and monitor progress.
11. A validated method of selection is a method that is shown to predict applicant success on the
job
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1-3
12. Competitive advantage occurs if customers perceive that they receive more value from their
transaction with an organization than from its competitors.
13. A successful workforce scorecard should be balanced and include measurements related to
both leading and lagging indicators.
14. When a change is made in one functional area of HRM, such as a change in the skills needed
to perform a job, there is no need for management to consider the impact on another HRM
functional area.
15. Corporate social or environmental performance relates to a company’s ability to make profits
while not sacrificing the resources of its people, the community, and the planet.
16. Financial or economic capability is derived from an advantage related to costs, when a
business is able to produce or provide a good or service more cheaply than competitors.
17. Strategic capability represents the business’s ability to manage organizational systems and
people in order to match customer and strategic needs.
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18. HRM includes Administrative Service and transactional work in addition to developing
strategic HR initiatives in response to business issues.
19. HPWP includes HRM practices that motivate employees to put forth discretionary effort.
20. Fair treatment of workers results in lower performance and increased costs.
21. The following are examples of current HR trends.
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1-5
22. The products or services of HRM include all of the following EXCEPT:
A) organizational restructuring
B) job design
C) personnel planning
D) evaluating
E) manufacturing
23. Which of the following does not offer sources of uniqueness?
A) Financial or economic capability
B) Product capability
C) Technical capability
D) Equal employment capability
E) Organizational capability
24. __________ involves the arrangement of work tasks based on the interaction of people,
technology, and the tasks to be performed in the context of the mission, goals, and the strategic
plan of the organization.
A) Employee and organizational development
B) Organizational design
C) Staffing
D) Performance management
E) Organizational development
Chapter 01 - Strategic Human Resource Management in a Changing Environment
[QUESTION]
25. Measurement and ________ are key to achieving organizational effectiveness and gaining
and maintaining a competitive advantage.
A) intuitive decision making
B) subjective decision making
C) a focus on short term consequences
D) Data-driven decision making
E) a focus on organizational strengths
26. The major domains of HRM are:
A) selection, training, performance management, and compensation.
B) human resources planning, job and work analysis, organizational restructuring, job design,
team building, computerization, and worker-machine interfaces.
C) organizational design, staffing, performance management and appraisal, employee training
and organizational development, and reward systems, benefits, ad compliance.
D) HR design, planning, downsizing, and restructuring.
E) recruitment, employee orientation, selection, promotion, and termination.
27. In their research, Huselid, Becker and Beatty found that traditional financial performance
measures such as return on equity, and ROI are ________ and can be predicted by the way a
company conducts its HR practices which are ___________.
A) Opportunities, strengths
B) Lagging indicators, leading indicators
C) Qualitative, subjective
D) Measures of marginal productivity, lagging indicators
E) Leading indicators, lagging indicators
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1-7
28. Graphology is associated with:
A) quality analysis.
B) behavioral analysis.
C) appraisal process analysis.
D) handwriting analysis.
E) actuarial model analysis.
29. Which of the following challenge for “successful workforce measurement and management”
asks whether managers have the access, capability, and motivation to use measurement data to
communicate strategy and monitor progress?
A) Metrics
B) Perspective
C) Execution
D) Validation
E) Quality workforce
30. Which of the following is one of the six general steps that an organization must take to
develop a “workforce scorecard:”
A) View a workforce in terms of cost rather than contribution.
B) Establish a uniform incentive system.
C) Identify low performers to reduce variance in the system.
D) Translate measures into specific actions and accountabilities
E) Provide employees with brief descriptions of what is expected
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
1-8
31. HPWP stands for:
A) high-performance work practices
B) high-productivity work practices
C) high-profit work practices
D) high-paying work practices
E) high-product work practices
32. Which HRM domain includes affirmative action/diversity, promotion/separation, and
orientation?
A) Organizational design
B) Performance management and appraisal
C) Staffing
D) Reward systems and compliance
E) Employee training and organizational development
33. Which domain would include assessment of an individual, or a department’s, degree of
success in meeting or exceeding predetermined levels of productivity and/or quality.
A) Organizational design
B) Staffing
C) Performance management
D) Employee training and organizational development
E) Reward systems, benefits, and compliance
34. Which act prohibits job discrimination on the basis of race, sex, color, religion, or national
origin?
A) Civil Rights Act of 1964
B) Americans with Disabilities Act of 1990
C) Fair Labor Standards Act
D) National Labor Relations Act
E) Employee Retirement Income Security Act
