Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Chapter 2: Strategy-Driven Human Resource Management
Test Bank
Multiple Choice
1. ______ planning is about planning for the long-term future; to be successful, you
need to plan using goals and measurable standards.
A. Strategic
B. Organizational
C. Environmental
D. Objectives
2. Internal (company) and external (competitors, customers, governments, etc.)
environments largely determine how managers must act to provide the organization with
the right combination of people to help the organization reach its ______ goals.
A. environmental
B. formalization
C. strategic
D. organizational
3. Human resource management is a critical component of meeting ______ goals,
because without the right people with the right types of education, skills, and mind-set,
an organization cannot expect to accomplish its objectives.
A. organizational
B. strategic
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C. formalization
D. environmental
4. Acme Global seeks to hire skilled employees who are willing to use their creativity to
improve the organization’s products and services. Acme Global does this because the
organization recognizes the influence of ______ in the external environment on the
organization.
A. suppliers
B. shareholders
C. technology
D. customers
5. The ______ environment consists of a series of influences that originate outside the
organization and that the organization cannot control.
A. mission
B. vision
C. internal
D. external
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
6. Acme Global recently hired several new employees who worked at a rival
organization. Acme Global lured the employees away by offering more pay and better
benefits. Acme Global’s actions reflect the influence of ______ in the external
environment on the organization.
A. customers
B. competition
C. society
D. suppliers
7. Acme Global recently won a bid to provide a large number of widgets for a
government contract. To complete the order, the organization will need to order more
raw materials. This will require Acme to rely in part on ______ to ensure organizational
success.
A. suppliers
B. shareholders
C. technology
D. competition
8. In the past few years, Acme Global has been fortunate to have a strong talent pool
available from which it can draw employees. This reflects the influence of ______ in the
external environment on the organization.
A. society
B. shareholders
C. labor force
D. competition
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
9. At Acme Global, the top manager reports to the board of directors. The board is not
involved in the day-to-day operations of the organization, but it can hire or fire top
management. This represents the influence of ______ in the external environment on
the organization.
A. shareholders
B. society
C. technology
D. economics
10. Acme Global tries to be a good neighbor to the people who live and work in the
cities where the organization’s plants are located. In one neighborhood, citizens asked
Acme Global to identify the location of all its suppliers. When it was discovered that
Acme Global used suppliers who were 1,000 miles from the plant, the citizens asked
Acme Global to consider using more local suppliers. Acme Global agreed and found
similar suppliers closer to its plant. This represents the influence of ______ in the
external environment on the organization.
A. suppliers
B. society
C. technology
D. competition
11. Acme Global created an application that allows customers to send in orders quickly
and easily. Since rolling out the new app, orders have increased by 20%. This
represents the influence of ______ in the external environment on the organization.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
A. labor force
B. shareholders
C. technology
D. competition
12. Acme Global had to put its plans to build a new plant on hold when interest rates
went up and the organization was not able to borrow enough money to build the plant.
This represents the influence of ______ in the external environment on the organization.
A. shareholders
B. society
C. the economy
D. competition
13. Acme Global hired a director of safety to help the organization ensure compliance
with the Occupational Safety and Health Act. This represents the influence of ______ in
the external environment on the organization.
A. the economy
B. customers
C. the government
D. suppliers
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
14. Research has shown that human resource management is an important ______
business function that influences the performance of both large and small organizations.
A. environmental
B. formalization
C. strategic
D. centralization
15. ______ is a plan of action designed to achieve a particular set of objectives for an
organization.
A. Mission statement
B. Vision
C. Objectives
D. Strategy
16. Strategic advantage occurs when an organization analyzes the ______ better and
reacts to it quicker than its competitors do while using all of its internal resources
efficiently, thus creating the sustainable competitive advantage.
A. environment
B. employees
C. management
D. vision
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
17. What is our present situation? Where do we want to go? How do we plan to get
there? These are the three questions that build an organization’s ______ plan.
A. organizational
B. strategic
C. environmental
D. management
18. A(n) ______ describes what an organization plans to become at a particular point in
time in the future.
A. strategy
B. vision
C. mission statement
D. organizational structure
19. The managers and executives at Acme Global have decided on a statement that
identifies what they expect the business to become within 6 years. They have identified
Acme Global’s ______.
A. goals
B. mission
C. vision
D. environmental awareness
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
20. A vision provides a ______ for the future. It describes where the organization is
headed.
A. focus point
B. formal plan
C. specific plan
D. mission
21. Acme Global managers and executives have created a statement describing
expectations of what the organization is going to do to become the organization that has
been envisioned. In other words, Acme Global has created a(n) ______.
A. vision
B. organizational structure
C. mission statement
D. strategy
22. Acme Global is examining whether their products satisfy their customers’ current
needs and considering whether they have the right kind of workforce in place. From this,
it is clear that Acme Global is trying to answer which of the following major strategic
questions?
A. What is our present situation?
B. Where do we want to go?
C. How do we plan to get there?
D. What should our strategy be?
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
23. Acme Global is considering what the organization will look like in 10 years and what
the vision of the organization is. From this, it is clear that Acme Global is trying to
answer which of the following major strategic question?
A. What is our present situation?
B. Where do we want to go?
C. How do we plan to get there?
D. What should our strategy be?
24. Acme Global is seeking information on how to create a plan that will allow it to reach
its goals. In doing so, Acme Global is trying to answer which of the following major
strategic questions?
A. What is our present situation?
B. Where do we want to go?
C. How do we plan to get there?
D. What should our mission be?
25. On its website, Acme Global published a statement of what it expects to become as
an organization in 10 years. It does not say how Acme Global will achieve this future
state. This is a ______ statement.
A. mission
B. strategy
C. vision
D. culture
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
26. On its website, Acme Global published a statement of what the various
organizational units will do and what each will accomplish to fulfill the organization’s
vision. This is a ______ statement.
A. strategy
B. mission
C. HR scorecard
D. structure
27. In most organizations, the mission is generally narrower and more ______ than the
vision.
A. general
B. formal
C. specific
D. informal
28. A powerful vision combined with a well-identified mission work together in an
organization to create ______.
A. focus
B. employability
C. product analysis
D. cultural awareness
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
29. A strong vision and a good mission statement are critical parts of the ______
planning process.
A. environmental
B. mission
C. informal
D. strategic
30. Differentiation attempts to create an impression of difference for the company’s
product or service in the mind of the ______.
A. manager
B. customer
C. employee
D. shareholder
31. An organization following a ______ strategy will be most interested in minimizing all
internal costs, including employee costs. Such an organization will be concerned with
maximum efficiency and effectiveness.
A. differentiator
B. generic cost leadership
C. niche
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D. vision
32. Acme Global has endeavored to drive out all unnecessary business expenses in its
operations. Acme Global is likely following a ______ strategy.
A. niche
B. cost leader
C. focus leader
D. differentiation
33. An organization following a ______ strategy will be concerned with finding
employees who are flexible and adaptable, who have the ability to innovate and create
new processes, and who can work in uncertain environments within cross-functional
teams.
A. generic cost leadership
B. focus
C. mission
D. differentiation
34. Walmart is well-known for following the ______ strategy.
A. cost leader
B. price leader
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C. broad differentiation
D. niche based on differentiation
35. Nike and Coca-Cola are well-known for following the ______ strategy.
A. cost leader
B. price leader
C. differentiation
D. focus or niche
36. The Snapple products produced by Dr. Pepper follow the ______ strategy.
A. cost leader
B. price leader
C. differentiation
D. focus or niche
37. Andrew recommends that the organization do everything it can to lower the
organizational costs required to produce widgets while still charging customers the
same price for the product. Andrew is recommending the ______ strategy.
A. cost cutting
B. cost leadership
C. differentiation
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
D. niche
38. Christina recommends that the organization invest in creating a strong brand image
so consumers will be willing to pay more for its product than they are willing to pay for
its competitor’s product. Christina is recommending the ______ strategy.
A. branding
B. cost leadership
C. differentiation
D. focus
39. Victor recommends that the organization focus on selling its products to people
aged 65 and older. Victor is recommending the ______ strategy.
A. senior
B. cost leadership
C. differentiation
D. niche
40. Acme Global is trying to predict and prepare for what its competitors will do next. In
a way, Acme Global is scrambling and jockeying for position in the market. This attempt
to predict and prepare is part of the ______ section of the five-forces analysis.
A. power of suppliers
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
B. power of buyers
C. threat of substitute products and services
D. rivalry among competitors
41. Acme Global is analyzing how it can take customers away from organizations in
other industries and whether organizations in other industries could take its customers
away. It is analyzing the ______ in the five forces model.
A. power of suppliers
B. threat of substitute products and services
C. potential new entrants
D. rivalry among competitors
42. Acme Global is analyzing whether it needs to prepare for new competition in the
industry. It determines that the barriers to enter its market are getting lower. Acme
Global is analyzing the ______ in the five forces model.
A. power of buyers
B. rivalry among competitors
C. potential new entrants
D. threat of substitute products and services
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
43. Acme Global is considering expanding the number of suppliers it uses. It is
concerned that it is too dependent on two suppliers. Acme Global is analyzing the
_____ in the five forces model.
A. threat of substitute products and services
B. power of suppliers
C. rivalry among competitors
D. power of buyers
44. Acme Global is examining how many contracts it has with “major” purchasers. It
considers a “major” purchaser one that purchases more than $1 million of products per
year. Acme Global is analyzing the ______ in the five forces model.
A. power of buyers
B. power of suppliers
C. threat of substitute products and services
D. rivalry among competitors
45. The SWOT analysis is a process of ______ an organization’s available resources in
order to make the most of strengths and opportunities while ______ danger to the
organization from its weaknesses and threats.
A. balancing; minimizing
B. balancing; eliminating
C. identifying; clarifying
D. practicing; replicating
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
SHRM: Strategic HR
46. ______ are statements of what is to be accomplished in singular, specific, and
measurable terms, with a target date.
A. Objectives
B. Organizational structure
C. Strategy
D. Vision
47. The written objective “to increase the durability of our product by 20%” is missing
which recommended criteria?
A. It does not focus on a single result.
B. It is not specific.
C. It is not measurable.
D. It has no target date.
48. ______ is the process of establishing and implementing mechanisms to ensure that
organizational objectives are achieved.
A. Missioning
B. Visioning
C. Controlling
D. Organizing
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
49. ______ refers to the way in which an organization groups its resources to
accomplish the organization’s mission.
A. Strategy
B. Organizational structure
C. Mission statement
D. Objectives
50. In organizational structure, ______ is the degree to which three types of
differentiation exist within the organization.
A. complexity
B. data analytics
C. formalization
D. organizational culture
51. In organizational structure, ______ refers to how many layers there are in the
organization from the top to the bottom.
A. horizontal differentiation
B. complexity
C. vertical differentiation
D. spatial differentiation
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
52. In organizational structure, ______ refers to how the organization is broken up
laterally. This usually is done by breaking the organization up into departments.
A. vertical differentiation
B. formalization
C. spatial differentiation
D. horizontal differentiation
53. The organizational chart of Acme Global looks like a pyramid. It illustrates the
various layers in the organization and provides information on the chain of command.
Overall, it provides information on ______ in the organization.
A. centralization
B. vertical differentiation
C. formalization
D. horizontal differentiation
54. The jobs at Acme Global are very standardized. Each job has a clear job description
and there are many policies, procedures, and rules for employees to follow. This
creation of a routine way of doing jobs suggests that Acme Global has a high degree of
______ in its structure.
A. centralization
B. spatial differentiation
C. formalization
D. horizontal differentiation