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1. Strategic planning involves a set of procedures for making decisions about an organization’s long-term goals and
strategies.
a.
True
b.
False
ANSWER:
True
2. Neil is in the process of recruiting and selecting new employees in a way that caters to the welfare of his organization’s
existing employees. He is working on human resource planning (HRP).
a.
True
b.
False
ANSWER:
True
3. Strategic human resources management (SHRM) is a combination of strategic planning and HR planning.
a.
True
b.
False
ANSWER:
True
4. The first step in strategic planning of a firm involves establishing a mission, vision, and values for the firm.
a.
True
b.
False
ANSWER:
True
5. When developing a statement that provides a perspective on where her company is headed and what the organization
can become in the future, Elana is working on the organization’s mission.
a.
True
b.
False
ANSWER:
False
6. Organizational core values form the foundation of a firm’s decisions.
a.
True
b.
False
ANSWER:
True
7. Changes in labor supply can place limits on the strategies available to firms.
a.
True
b.
False
ANSWER:
True
8. An internal analysis enables strategic decision makers to assess an organization’s workforce—its skills, cultural beliefs,
and values.
a.
True
b.
False
ANSWER:
True
9. Internal analysis focuses on culture and conflicts within an organization.
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a.
True
b.
False
ANSWER:
False
10. Susie has been tasked with examining attitudes and expectations of employees. She can accomplish this by conducting
a cultural audit.
a.
True
b.
False
ANSWER:
True
11. An HR manager will use strategic planning to anticipate and provide for the movement of people into, within, and out
of an organization.
a.
True
b.
False
ANSWER:
False
12. A manager who relies on a single factor to predict employment needs is likely using a trend analysis.
a.
True
b.
False
ANSWER:
True
13. An organization’s core values are the strong, enduring beliefs and principles that serve as a foundation for its
corporate culture.
a.
True
b.
False
ANSWER:
True
14. Stacy’s company has made a long-term commitment to her, investing in her continuous training and development, and
even giving her an equity stake in the organization. Stacy is most likely a strategic knowledge employee.
a.
True
b.
False
ANSWER:
True
15. Forecasting is frequently more of an art than a science, providing inexact approximations rather than absolute results.
a.
True
b.
False
ANSWER:
True
16. Qualitative HR forecasting techniques generally employ sophisticated analytical models.
a.
True
b.
False
ANSWER:
False
17. Trend analysis is a qualitative approach to labor demand forecasting.
a.
True
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b.
False
ANSWER:
False
18. In order to be prepared to quickly fill potential job openings with internal candidates, Mary should use skill and
management inventories to create an employee replacement chart.
a.
True
b.
False
ANSWER:
True
19. A vision statement clarifies the long-term direction of a company and its strategic intent.
a.
True
b.
False
ANSWER:
True
20. Brad needs data on external labor supply sources. The best tool for him to use for this would be a staffing table.
a.
True
b.
False
ANSWER:
False
21. A manager can use a Markov analysis to track the pattern of employee movements through various jobs within the
firm.
a.
True
b.
False
ANSWER:
True
22. Core values are the essence of corporate cultures and an expression of their personality.
a.
True
b.
False
ANSWER:
True
23. Among Paula’s responsibilities are identifying, developing, and tracking talented individuals so that they may
eventually assume top-level positions within the firm. Paula is responsible for succession planning.
a.
True
b.
False
ANSWER:
True
24. A SWOT analysis helps executives summarize the major facts and forecasts derived from external and internal
analyses.
a.
True
b.
False
ANSWER:
True
25. Corporate strategy focuses on domain selection.
a.
True
b.
False
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ANSWER:
True
26. In international joint ventures, the issue of culture is one of the top concerns.
a.
True
b.
False
ANSWER:
True
27. One reason that large companies are able to succeed when competing based on a low-cost strategy is that they are able
to take advantage of economies of scale.
a.
True
b.
False
ANSWER:
True
28. A company that utilizes a differentiation strategy is competing on the basis of providing something unique to its
customers.
a.
True
b.
False
ANSWER:
True
29. In the long run, firms must approach outsourcing decisions based on cost alone to strengthen their core capabilities.
a.
True
b.
False
ANSWER:
False
30. Critical success factors for a low-cost strategy include efficiency, productivity, and minimizing waste.
a.
True
b.
False
ANSWER:
True
31. While unemployment rates vary by sector, the lack of talent in low-skill jobs continues to create a real challenge for
firms.
a.
True
b.
False
ANSWER:
False
32. Reva needs to get a better idea of all the jobs in the organization along with the numbers of employees currently
occupying those jobs and future employment requirements. Her best option would be to create a graphical representation
such as a skills inventory.
a.
True
b.
False
ANSWER:
False
33. Managers might hold a meeting, or several meetings, called talent reviews to ascertain whether or not the company
has the human resources that it needs to be competitive going forward.
a.
True
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b.
False
ANSWER:
True
34. In unionized firms, layoffs are only based on performance.
a.
True
b.
False
ANSWER:
False
35. If a firm gives as much or more weight to seniority as to ability and productivity when considering layoffs, it is likely
that the organization is unionized.
a.
True
b.
False
ANSWER:
True
36. A disadvantage of overemphasizing seniority is that less competent employees receive the same rewards and security
as more competent employees.
a.
True
b.
False
ANSWER:
True
37. A Markov analysis can show the percentage of employees who remain in each of a firm’s jobs from one year to the
next.
a.
True
b.
False
ANSWER:
True
38. Sally is looking at her company’s practices and performance in a specific area and comparing them with other
companies. Sally is engaged in the process of benchmarking.
a.
True
b.
False
ANSWER:
True
39. The target company for benchmarking does not need to be a competitor.
a.
True
b.
False
ANSWER:
True
40. Tim needs to map his firm’s strategy in order to ensure strategic alignment. One tool that he could use for this task is a
balanced scorecard.
a.
True
b.
False
ANSWER:
True
41. Renee needs to measure how well the new hires in her organization are performing so that the organization will have
enough top performers to propel it towards its strategic objectives. She can use a quality-of-fill metric to accomplish this
task.
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a.
True
b.
False
ANSWER:
True
42. The process of setting procedures for making decisions about an organization’s long-term goals is called
a.
strategic planning.
b.
HR planning.
c.
job analysis.
d.
environmental scanning.
ANSWER:
a
43. Human resource planning is
a.
the technique that identifies the critical aspects of a job.
b.
the process of anticipating and providing for the movement of people into, within, and out of an organization.
c.
the process of setting major organizational objectives and developing comprehensive plans to achieve these
objectives.
d.
the process of determining the primary direction of a firm.
ANSWER:
b
44. Customers, suppliers, and substitutes are part of a __________ environment.
a.
political
b.
technological
c.
demographic
d.
competitive
ANSWER:
d
45. Bobbie has skills that are quite valuable to her company, but her skills are not particularly unique, and she would not
be difficult to replace. Bobbie would be considered a
a.
core employee.
b.
strategic knowledge worker.
c.
supporting worker.
d.
partner.
ANSWER:
a
46. The mission of a company
a.
is used for the systematic monitoring of its external opportunities.
b.
is the basic purpose of the company.
c.
is the strong enduring belief used by the company to make decisions.
d.
provides a perspective on where the company is headed.
ANSWER:
b
47. The strategic vision of a company
a.
is used for the systematic monitoring of its external opportunities.
b.
is the basic purpose of the company.
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c.
is the strong enduring belief used by the company to make decisions.
d.
provides a perspective on where the company is headed.
ANSWER:
d
48. The core values of a company
a.
involve the systematic monitoring of its external opportunities.
b.
make up the basic purpose of the company.
c.
are the strong enduring beliefs used by the company to make decisions.
d.
are determined by conducting a trend analysis on its employees.
ANSWER:
c
49. Part of Eric’s job is __________, which requires him to perform systematic, regular monitoring of major external
forces that influence the organization.
a.
demand forecasting
b.
environmental scanning
c.
exception reporting
d.
influence analysis
ANSWER:
b
50. A competitive environment includes all the following EXCEPT
a.
new entrants.
b.
suppliers.
c.
rivals.
d.
subordinates.
ANSWER:
d
51. At the fundamental level, a firm’s strategy should focus on creating value for
a.
resellers.
b.
suppliers.
c.
customers.
d.
subordinates.
ANSWER:
c
52. Because Kara realizes that the firm’s employees are critical to its success, she wants to examine their values, attitudes,
beliefs, and expectations. She can do this by conducting a(n)
a.
environmental scan.
b.
trend analysis.
c.
cultural audit.
d.
behavioral forecast.
ANSWER:
c
53. Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to
customers are known as
a.
individual competencies.
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b.
core capabilities.
c.
human capital.
d.
organizational competencies.
ANSWER:
b
54. When a firm’s resources improve the efficiency or effectiveness of the company, the resources are always considered
to be
a.
difficult to imitate.
b.
valuable.
c.
organized.
d.
rare.
ANSWER:
b
55. When the knowledge, skills, and abilities of a firm’s human resources are not equally available to its competitors, these
resources are considered to be
a.
impossible to imitate.
b.
devalued.
c.
common.
d.
rare.
ANSWER:
d
56. Strategic knowledge workers have
a.
unique skills not directly related to company strategy.
b.
unique skills directly related to company strategy.
c.
skills that are valuable but not unique.
d.
skills that are generally available in the labor market.
ANSWER:
b
57. Which of the following is NOT a component of SWOT analysis?
a.
Weakness
b.
Threat
c.
Strategy
d.
Opportunity
ANSWER:
c
58. In order to do an effective job at strategic planning, managers do all of the following EXCEPT
a.
make forecasts of labor demand.
b.
neglect supply considerations.
c.
perform supply analyses.
d.
balance supply and demand considerations.
ANSWER:
b
59. Which of the following is NOT an element of organizational growth?
a.
Increased employee productivity
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b.
Large number of employees
c.
Employees developing or acquiring new skills
d.
High employee turnover rate
ANSWER:
d
60. Abe wants to use a qualitative approach to forecast demand. He should consider any of the following methods
EXCEPT
a.
trend analysis.
b.
the Delphi technique.
c.
soliciting expert opinion.
d.
management forecasts.
ANSWER:
a
61. Trend analysis includes all of the following steps EXCEPT
a.
selecting a business factor.
b.
soliciting expert opinions.
c.
predicting employment needs.
d.
plotting historical trends.
ANSWER:
b
62. Stan is a clerical worker at XLT Corp. with fairly limited and clearly defined duties. His employment relationship with
XLT is transaction based. Stan would be considered a
a.
core employee.
b.
strategic knowledge worker.
c.
supporting worker.
d.
partner.
ANSWER:
c
63. A graphical representation of all organizational jobs along with the numbers of employees currently occupying those
jobs and future employment requirements is called
a.
a staffing table.
b.
an organization chart.
c.
a skills inventory.
d.
career planning.
ANSWER:
a
64. The corporate culture at Federal Financial Services is very competitive and encourages result-oriented behaviors.
What type of culture is this?
a.
Clan
b.
Adhocracy
c.
Market
d.
Hierarchical
ANSWER:
c
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65. Talent inventories can be used to develop __________, which list current jobholders.
a.
core values
b.
replacement charts
c.
trend models
d.
staffing tables
ANSWER:
b
66. The employees at Happy Table are a close-knit group. They show a great deal of concern for each other and for their
customers. This typifies what type of corporate culture?
a.
Clan
b.
Adhocracy
c.
Market
d.
Hierarchical
ANSWER:
a
67. Bill bought shares of stock in XLT Corp. As an investor, Bill is a __________ of the company.
a.
customer
b.
supplier
c.
stakeholder
d.
employee
ANSWER:
c
68. XLT Corp. is pursuing a cooperative strategy as a way to drive growth. XLT might be considering a(n)
a.
joint venture.
b.
trend analysis.
c.
merger.
d.
acquisition.
ANSWER:
a
69. Clara’s firm has been unable to execute effectively. Clara found that the primary reason is that the firm lacks
streamlined processes. Clara has identified a flaw is which section of the “4As” framework?
a.
Alignment
b.
Agility
c.
Ability
d.
Architecture
ANSWER:
d
70. Clara’s firm has been unable to execute effectively. Clara feels that the main source of this problem is that no one is
held accountable for results. Clara has identified a flaw is which section of the “4As” framework?
a.
Alignment
b.
Agility
c.
Ability
d.
Architecture
ANSWER:
a
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71. Clara’s firm has been unable to execute effectively. Clara feels that this can be corrected through educational learning.
Clara wants to address which section of the “4As” framework?
a.
Alignment
b.
Agility
c.
Ability
d.
Architecture
ANSWER:
b
72. In a unionized organization, layoff decisions are usually based on
a.
union membership.
b.
department ranking.
c.
seniority.
d.
favoritism.
ANSWER:
c
73. According to the “4As” framework of execution capability, which of the following would be human capital in the area
of ability?
a.
Clear strategic intent
b.
Leadership bench
c.
External connection
d.
Accountability for results
ANSWER:
b
74. One of Ted’s responsibilities is to regularly review HR initiatives to make sure they are in line with his company’s
strategy of being first to market. In other words, Ted needs to ensure __________ alignment.
a.
horizontal
b.
vertical
c.
lateral
d.
measurement
ANSWER:
b
75. A __________ is a measurement framework that helps managers translate strategic goals into operational objectives.
a.
benchmark
b.
trend analysis
c.
Balanced Scorecard
d.
cultural audit
ANSWER:
c
76. One of Ted’s responsibilities is to regularly review HR practices to make sure they all focus on the same objectives. In
other words, Ted needs to ensure __________ alignment.
a.
measurement
b.
capacity
c.
horizontal
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d.
vertical
ANSWER:
c
77. __________ is the ability of an organization to rapidly reallocate resources to new or changing needs.
a.
Coordination agility
b.
Predicted flexibility
c.
Organizational capability
d.
Turnover capability
ANSWER:
a
78. Cross-training and job rotations are intended to improve the __________ of an organization.
a.
coordination flexibility
b.
turnover capability
c.
organizational capability
d.
resource flexibility
ANSWER:
d
79. Which of the following is NOT a cell of the Balanced Scorecard model?
a.
Financial
b.
Turnover
c.
Customer
d.
Process
ANSWER:
b
80. The Smith family lives in the same community where Topico has its corporate offices. The Smiths are __________ of
Topico.
a.
creditors
b.
customers
c.
primary stakeholders
d.
secondary stakeholders
ANSWER:
d
81. Analysis of external opportunities and threats is __________ step of the strategic management process.
a.
the second
b.
the last
c.
an optional
d.
the penultimate
ANSWER:
a
82. In the telephone industry, mobile phones and VOIP (Voice-over-Internet Protocol) are examples of __________ for
traditional firms.
a.
companions
b.
rivals
c.
substitutes
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d.
supplements
ANSWER:
c
83. As companies diversify into new businesses, managers are inevitably faced with a make or __________ decision.
a.
buy
b.
lease
c.
forego
d.
substitute
ANSWER:
a
84. Describe the basics of SWOT analysis as it relates to strategy formulation.
ANSWER:
A comparison of strengths, weaknesses, opportunities, and threats is referred to as a SWOT analysis. A SWOT
analysis helps executives summarize the major facts and forecasts derived from external and internal analyses.
Strategy formulation builds on SWOT analysis to use the strengths of an organization to capitalize on
opportunities, counteract threats, and alleviate internal weaknesses. In short, strategy formulation moves from
simple analysis to devising a coherent course of action.
85. Describe the criteria necessary for firms to achieve sustained competitive advantage through people.
ANSWER:
For an organization to achieve sustained competitive advantage through people, four criteria must be met.
1. The resources that are developed must be of value to the organization. People are a source of
competitive advantage when they improve the efficiency or effectiveness of the organization. This
value is increased when employees find ways to decrease costs, provide something unique to
customers, or some combination of the two.
2. The resources must be rare. People are a source of competitive advantage when their skills,
knowledge, and abilities are not equally available to competitors.
3. People are a source of competitive advantage when employee capabilities and contributions are
inimitable, or cannot be copied by other firms. For example, companies such as Disney, Southwest
Airlines, and Starbucks are known for creating unique cultures that get the most from employees and
are difficult to imitate.
4. People are a source of competitive advantage when the resources are organized in such a way that
their talents can be combined and deployed to work on new assignments at a moment’s notice.
86. Describe the three key elements of the HR forecasting model.
ANSWER:
The three key elements in the HR forecasting process are: (1) forecasting the demand for labor, (2) forecasting
the supply of labor, and (3) balancing supply and demand considerations.
Employment forecasting involves estimating in advance the number and type of people needed to meet
organizational objectives. It may involve a quantitative approach using statistical analysis and mathematical
models or a qualitative approach focusing on employee performance and promotability.
qualifications are to be found to fill vacancies.
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87. What is the Balanced Scorecard?
ANSWER:
The Balanced Scorecard is a tool developed by Drs. Robert Kaplan and David Norton that helps organizations
clarify their vision and strategy and translates them into operational objectives. The model has four related
cells: (1) financial, (2) customer, (3) processes, and (4) learning. The logic of this tool is firmly rooted in
HRM. People management and learning helps management improve their internal business processes (e.g.,
product development, service, etc.) and provide excellent customer service. Internal processes are critical for
creating customer satisfaction, customer loyalty, cost containment, and improved productivity. Customer value
creation then can lead to higher profitability and market value.
88. Briefly describe the “4As” framework of execution capability.
ANSWER:
The “4As” required to successfully execute a strategy are as follows:
Alignment. Alignment occurs in an organization when it has a clear strategic intent, its staff has shared
performance expectations, and they are accountable for the results.
Agility. Execution is about competing today and tomorrow. The key to execution increasingly depends on
being agile, nimble, and proactive in the face of change.
Architecture. A firm’s architecture consists of its structures, processes, and systems. Ideally, they should be
simple and streamlined so as to propel the firm to success. But too often a firm’s architecture can end up being
complicated and entangle a firm like a straightjacket.
Ability. Products and processes are easy to duplicate. Talent is not. Strategy execution (and ultimately growth
and profitability) depend on a firm’s talent capacity—a talented group of leaders, managers, and employees
working together in an engaged and collaborative way.