Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
Chapter 2: Strategic HRM, Data-Driven Decision Making, and
HR Analytics
Test Bank
Multiple Choice
1. What is strategy?
A. A core need that an organization strives to fulfill.
B. A well-devised and thoughtful plan for achieving an objective.
C. The process of describing an organization’s reason for existence.
D. An extension of the mission that describes what the organization will look like.
2. Which of the following involves planning what to do to achieve organizational
objectives?
A. mission
B. human resource analytics
C. strategy formulation
D. a well-devised and thoughtful plan for achieving an objective
3. A company’s ______ is a foretelling of what the company is intended to look like in
the future.
A. core values
B. resource-based view
C. mission
D. vision
4. When a company or organization expresses its primary purpose for doing business,
this is called its ______.
A. core values
B. resource-based view
C. mission
D. vision
5. Company XYZ created a set of protocols to guide the company to bring its vision to
reality. What is this set of protocols called?
A. core values
B. mission
C. strategy formulation
D. vision
6. Company XYZ examined its internal and external strengths, weaknesses, and
opportunities to create a realistic strategy. What is this procedure called?
A. strategic human resource management
B. SWOT analysis
C. values
D. human resource analytics
7. Proponents of ______ propose that a resource holds value to the extent that it is rare
and inimitable.
A. strategic implementation
B. predictive analytics
C. high-performance work practices
D. the resource-based view
8. A ______ type provides a general approach for how an organization will bring its
mission, vision, and values to life, while at the same time leveraging its strengths and
improving its weaknesses.
A. vision
B. mission
C. value
D. strategy
9. After company XYZ finalizes its strategy formulation, the next step of the process is to
start the ______ part of the process.
A. strategic human resource management
B. strategy implementation
C. differentiation
D. mission
10. Company XYZ is considering creating and selling widgets that they have not sold in
the past. What does XYZ need to create to help coordinate activities and ensure a
successful venture?
A. create a mission
B. hire a human resource director
C. create a strategy
D. create a set of core values
11. Company XYZ is creating a strategy to design, build, and sell a widget. While
adhering to their mission, vision, and set of core values, two important aspects of their
strategy are ______.
A. SWOT analysis and balanced scorecard
B. formulation and organizational performance
C. strategy type and stakeholders
D. formulation and implementation
12. The organization Doctors Without Borders believes all people deserve a right to
medical care and that medicine must remain neutral toward politics, race, religion, and
the other beliefs of a person. Which of the following best describes the above
statement?
A. strategy
B. mission
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
C. continuous variable
D. SWOT analysis
13. When an organization creates a product that is different from competitors’ products
and thus warrants a higher price, it is likely the organization is pursuing a(n) ______
strategy.
A. focus
B. differentiation
C. cost leadership
D. niche
14. When an organization identifies ways to produce a product at a lower cost
compared to competitors, it is likely the organization is pursuing a(n) ______ strategy.
A. focus
B. differentiation
C. cost leadership
D. niche
15. When an organization sells its product at a cheaper price than competitors, it is
likely the organization is pursuing a(n) ______ strategy.
A. focus
B. differentiation
Bauer, Human Resource Management, 1e
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C. cost leadership
D. niche
16. When an organization identifies a specific product that might be not be produced or
sold by competitors, it is likely the organization is pursuing a(n) ______ strategy.
A. elitist
B. differentiation
C. cost leadership
D. niche
17. ______ include a number of different groups that an organization must appeal to,
such as customers, investors, employees, and communities.
A. Stockholders
B. Employees
C. Trustees
D. Stakeholders
18. During strategy ______, an organization follows through on its strategic plan.
A. formulation
B. analytics
C. implementation
D. feedback
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
19. A rigorous approach to attracting, motivating, and retaining talented people that are
crucial for realizing strategic objectives and achieving a competitive advantage is known
as ______.
A. strategy formulation
B. SWOT analysis
C. strategy
D. human resource analytics
20. The ______ involves the evaluation of organizational performance based on the
extent to which the organization satisfies different stakeholder needs.
A. data-driven decisions
B. organizational performance
C. balanced scorecard
D. best practices
21. What approach illustrates the value of an organization differentiating its human
resources relative to competitors to gain a competitive advantage?
A. best practices
B. balanced scorecard
C. organizational performance
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
D. strategy
22. The introduction of ______ made the case for considering nonfinancial indicators
when defining organizational success.
A. SWOT analysis
B. organizational indicators
C. balanced scorecard
D. best practices
23. Using the balanced scorecard approach, ______ is conceptualized as the extent to
which employee learning and growth, internal business process efficiency, customer
attitudes and behavior, and financial performance contribute to the organization’s
mission and strategy.
A. organizational performance
B. organizational indicators
C. prescriptive analysis
D. best practice
24. With the introduction of the term ______, the responsibilities of the HR function have
expanded to include playing the role of administrative expert, employee advocate,
change agent, and business partner.
A. balanced scorecard
B. SWOT analysis
C. strategic human resource management
D. organizational performance
25. Enhancing perceptions of job security among employees, promoting from within the
organization, providing financial incentives linked to performance, offering training, and
providing flexible work arrangements are often referred to as ______.
A. performance indicators
B. organizational indicators
C. prescriptive analytics
D. high-performance work practices
26. Company XYZ is collecting, analyzing, and interpreting data by using human
resource information systems and human resource analytics to achieve strategic
objectives. This is an example of ______.
A. data-driven decisions
B. mission
C. resource-based view
D. strategy implementation
27. Company ABC takes great pride in the fact that the average years of employment
per employee is 14 years. Some factors for this are job security, promoting from within,
competitive pay and benefits, and employee appreciation events. These factors are
examples of ______.
A. strategy implementation
B. values
C. universal best practices
D. data-driven decisions
28. Company XYZ is revising some of its human resource policies due to some
misalignment and conflict created over a few policies. What type of approach is the
company taking?
A. SWOT analysis
B. data-driven decisions
C. systems perspective
D. universal best practices
29. Bob is bright and ambitious with 2 years of experience working as a human
resource professional. He interviews for a human resource manager position and is
hired but struggles to achieve the desired outcomes for this company. Given the details
in this scenario, which is a factor that is influencing Bob’s effectiveness?
A. business strategy
B. Bob’s limited experience
C. the external environment
D. data-driven decisions
30. Sam is a human resource manager who recently switched jobs from the service
industry to the manufacturing industry. When comparing the differences between
industries from a human resource management perspective, which is he MOST likely to
notice?
A. The culture is less supportive in the manufacturing industry as compared to the
service industry.
B. The positive effects of human resource management are stronger in manufacturing
as opposed to the service industry.
C. The business strategy is less differentiated in manufacturing as compared to the
service industry.
D. The human resource professionals in the service industry tend to be less
experienced as compared to the manufacturing industry.
31. Taking a(n) ______ means considering how all of the pieces of the HR puzzle fit
together, and how any misalignment can be addressed to optimize the overall system of
HR practices.
A. high-performance work practice
B. systems perspective
C. organizational indication
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SAGE Publishing, 2020
D. resource-based view
32. If the human resource department at company XYZ gathers information about the
qualifications of its employees, what element of the ability–motivation–opportunity
model are they utilizing?
A. ability
B. motivation
C. opportunity
D. systems perspective
33. When the human resource department collects data on its employees about how
they perform and what they do on the job, this is an example of what element of the
ability–motivation–opportunity model?
A. ability
B. motivation
C. opportunity
D. systems’ perspective
34. If company XYZ observes a drop in performance following a human resource
management decision to eliminate a Friday free lunch for the employees, then this
would be an example of a lack of ______ to perform.
A. ability
B. motivation
C. opportunity
D. mission
35. How does gathering data affect decision-making?
A. Gathering data has no effect on decision-making.
B. Decision-making is informed by evidence.
C. Gathering data impedes the decision-making process.
D. Decision-making is informed by gut instinct.
36. Organizations that place a greater emphasis on data-driven decision-making when
dealing with employees are using ______.
A. human resource analytics
B. gut feelings
C. vision
D. standard deviation
37. While it is not necessary to be a data analyst to understand the impact of data
analytics on decision-making, it is helpful to be familiar with ______.
A. basic math
B. statistical concepts
C. strategic objectives
D. people decisions
38. Carlena, a human resource professional, uses performance evaluation data to align
employee strengths with jobs. What is this an example of?
A. how data can be used to manage evaluations
B. how data can be used to manage talent
C. how data can be used to motivate
D. how data can be used to eliminate jobs
39. Tom hears all the time from his human resource director about the value of data, but
as the CEO he prefers to go with his gut when it comes to making decisions. His human
resource director knows that to convince Tom about the value of using data analytics he
must connect the data to ______.
A. values
B. levels
C. concepts
D. strategic objectives
40. Using evidence to hire talented people can ultimately lead to better organizational
______ such as productivity and innovation.
A. outcomes
B. data
C. decisions
D. talent
41. An organization that increases sales as a result of using data analytics is an
example of how analytics contributes to ______.
A. competitive advantage
B. identifying competencies
C. ethics
D. measurement
42. Human resource analytics is also referred to as ______.
A. business analytics
B. productivity analytics
C. organizational analytics
D. people analytics
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
43. ABC Company hires a team of people analysts with a variety of different
backgrounds such as human resource management, law, statistics, and data science.
Why?
A. They know a diverse team will yield the best judgments and decisions.
B. It is most cost-effective to have a diverse team.
C. The demand for people analysts is greater than the supply.
D. No one fully understands analytics.
44. A strong human resource team has a people analyst that is able to interpret data
through the lens of human behavior, cognition, and emotion. This is an example of what
competency?
A. theory
B. business
C. data Management
D. statistics
45. Filipe is receiving an abnormally high number of customer service complaints from
its customers. Management wants to know why this is happening. From a human
resource management perspective, what is the first step in solving the problem?
A. data-driven decisions
B. SWOT analysis
C. identify and define the problem
D. strategy formulation
46. Which is the first step in the scientific process?
A. do background research
B. identifying the problem
C. strategy implementation
D. experimentation
47. From the following list, identify two steps in the human resource analytics scientific
process. Choose one answer.
A. identifying the problem and data visualization
B. perspective analytics and predictive analytics
C. formulating a hypothesis and communicating the results
D. ability–motivation–opportunity model and forming a hypothesis
48. ______ analytics focuses on what is likely to happen, given what is known and is
forward looking.
A. Predictive
B. Prescriptive
C. Qualitative
D. Quantitative
49. Statistical models are generated using what type of data?
A. quantitative
B. big
C. little
D. qualitative
50. Which type of data is numeric and can be counted or measured?
A. quantitative
B. big
C. little
D. qualitative
51. When employees work varied amounts of overtime, this type of data is an example
of a continuous ______ variable.
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
A. qualitative
B. categorical
C. quantitative
D. standard deviation
52. ______ data are nonnumeric and include text or narrative data, such as interview
transcripts or responses to open-ended survey questions.
A. Qualitative
B. Prescriptive
C. Predictive
D. Continuous
53. ______ data refer to large (or massive) amounts of unstructured, messy, and
sometimes quickly streaming data—often from sources that we did not originally intend
to leverage for analytical purposes
A. Little
B. Big
C. Quantitative
D. Continuous
54. ______ data are structured data that are gathered in smaller volumes, usually for a
previously planned purpose.
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
A. Little
B. Big
C. Qualitative
D. Categorical
55. Data that are collected that usually do not have a previously planned purpose is
what type of data?
A. little data
B. big data
C. quantitative data
D. qualitative data
56. A ______ is a theoretical phenomenon or construct.
A. mean
B. measure
C. data point
D. concept
57. Data ______ refer(s) to pictorial and graphic representations of quantitative or
qualitative findings.
A. performance
B. categories
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C. visualizations
D. analytics
58. What are the terms for the four Vs of data?
A. vision, values, visualization, variables
B. volume, vision, veracity, values
C. volume, variety, velocity, veracity
D. values, variables, vision, volume
59. Gwendoline, a human resource manager, wants to determine why her company’s
core customers are going to other sources and buying similar products. Which analytical
approach would be the best to use to answer her questions?
A. big data approach with large volumes of data
B. little data approach with limited amounts of data
C. resource-based view of data
D. systems perspective
60. Comparing data collected on individuals’ sales and individuals’ attendance records
would be an example of what type of data analysis?
A. concept
B. quantitative
C. standard deviation
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
D. qualitative
61. When building a regression model, it is best to consider all necessary predictor
variables to explain your outcome and omit irrelevant variables. If some important
variables are left out of the human resource analytics model, a ______ model may be
created resulting in an overly subjective, incomplete result.
A. big data
B. little data
C. biased
D. interpretation
62. The human resource analytics function should provide ______ regarding the design
and implementation of human resource practices to inform and support people
decisions and strategy.
A. data-driven recommendations
B. measures
C. values
D. levels
63. A systematic process of applying knowledge, tools, and resources to transform
organization from one state of affairs to another is called ______?
A. strategy formulation
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
B. data visualization
C. systems perspective
D. change management
64. An HR analytics team must comprise the right people with the right mix of ______.
A. strategies
B. vision
C. competencies
D. balanced scorecards
65. Failure to follow the seven recommended competencies of human resource
management may result in ______ activities.
A. illegal
B. strategy
C. mental
D. psychological
66. Human resource information systems will help which of the following sizes of
businesses?
A. only large and medium
B. large, medium, small
C. only small and medium
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
D. only large
67. Gabriella, a human resource professional, is compiling business performance data
and personal data on employees to determine which employees are best suited for new
and evolving roles at their company. Some of the data collected contain information
about race, religion, and sexually orientation as well as job performance of the
employees. After the information is shared with the managers a few of the employees
complain about their personal information being openly talked about among the
management. The decision to use too much personal information in the data collection
process has cause a ______ within the organization.
A. large data breach
B. resource-based view
C. high-performance work practices
D. ripple effect
68. Rasmus has collected a large amount of data to be sorted and measured to test his
human resource hypothesis. After analyzing the data, he concludes he has reached an
answer he was just the opposite he was trying to attain. His boss is putting pressure on
him to finish his report and make certain the data supports the original hypothesis.
Instead of confronting his boss with the results, Rasmus decides to eliminate some of
the data to influence the results to affirm the hypothesis. The decision Rasmus has
made to alter the data to coincide with the hypothesis is considered ______.
A. analytical
B. data visualization
C. strategy formulation
D. unethical
69. A(n) ______ variable consists of multiple levels, but these levels do not have a
particular order.
A. categorical
B. continuous
C. analytical
D. prescriptive
70. The levels of a(n) ______ variable have meaning and order.
A. categorical
B. continuous
C. analytical
D. prescriptive
True/False
1. Rare, with respect to resources, refers to the extent to which a particular resource is
scarce and relatively few (if any) competitors possess the resource.
2. Inimitable, with respect to resources, refers to the extent to which it is easy for
competitors to reproduce, attain, or deploy a particular resource that the organization
possesses.
3. Human resource analytics represents an important tool for bringing an organization’s
strategy to life, as it can reveal how to best deploy human resource systems, policies,
and practices.
4. A key role of human resource management is to help influence key business
decisions and strategy formulation and implementation.
5. Organizational performance has made the case for considering nonfinancial
indicators when defining organizational success.
6. We conceptualize organizational performance as the extent to which employee
learning and growth, internal business process efficiency, customer attitudes and
behavior, and financial performance contribute to the organization’s mission and
strategy.
7. With the additional responsibilities of being a change agent and strategic business
partner, the modern HR function now faces greater pressure to make sound and
impactful decisions.
8. Job security among employees, promoting from within the organization, providing
financial incentives linked to performance, offering training, and providing flexible work
arrangements are often referred to as high-performance work practices.
9. Prescriptive analytics focus on what should be done in the future based on what is
known.
10. Descriptive analytics focuses on what is likely to happen, given what is known and
therefore is more forward looking.
11. Quantitative data are nonnumeric and include text or narrative data, such as
interview transcripts or responses to open-ended survey questions.
12. According to the text, a concept is a theoretical phenomenon or construct.
13. Data visualizations refer to pictorial and graphic representations of quantitative or
qualitative findings.
14. HR analytics should be integrated into the culture of HR and the organization.
15. Developing a human resource analytics function in organizations that now rely
primarily on manages making gut decisions and does not ostensibly value data and
data-driven decisions will be relatively easy.
Essay
1. Examine factors that could potentially influence the effectiveness of HR practices.
2. Company XYZ is considering a merger/acquisition of a similar company. Identify the
key roles of human resources in this merger/acquisition and illustrate how they can be
used to shape the strategy.
3. Explain the ability–motivation–opportunity model and demonstrate examples of each
part of the process.
4. Identify and compare and contrast the three levels of HR analytics.
5. Design a human resource team that includes all seven competencies from the text.
Each team member should have at least two of the competencies. Demonstrate how
the team can work together to achieve a desired human resource goal and how each
member will contribute.