Chapter 3

Chapter 3: The Manager's Role in Strategic Human Resource Management

1.

1

Strategic planning primarily benefits a firm's managers by ________. A)

2

outlining procedures for firing employees B)

3

creating a hierarchy of decision-makers C)

4

establishing goals to be accomplished D)

5

allowing employees to provide input E)

6

clarifying the supply chain network Answer :

7

C Diff: 2

8

Page Ref: 98 Objective: 1 Skill: Concept

2.

9

Since most well-run firms utilize a hierarchy of goals to guide major decisions, ________ is especially important to managers at every level to prevent departments from working at cross-purposes.

A)

10

strategic planning B)

11

financial auditing C)

12

employee testing D)

13

employee benchmarking E)

14

annual personnel training Answer :

15

A Diff: 2

16

Page Ref: 98-99 Objective: 1 Skill: Concept

3.

17

What is the first step in the management planning process? A)

18

evaluating the alternatives B)

19

making forecasts of trends C)

20

implementing a course of action D)

21

setting an objective E)

22

comparing options Answer :

23

D Diff: 2

24


4.

25

Which of the following is the most significant difference between managerial planning and the basic planning process?

A)

26

evaluation of alternative methods B)

27

comparisons of strengths and weaknesses C)

28

establishment of clear objectives D)

29

assessment of long-term goals E)

30

interference from corporate hierarchies Answer :

31

E Diff: 3

32


5.

33

Which of the following provides a comprehensive view of both a firm's current situation and its goals for the next 3 to 5 years?

A)

34

SWOT analysis B)

35

business plan C)

36

value proposition D)

37

financial plan E)

38

operations plan Answer :

39

B Diff: 1

40


6.

41

The main contents of a typical business plan include all of the following EXCEPT ________. A)

42

political forecast B)

43

business description C)

44

marketing plan D)

45

financial plan E)

46

personnel plan Answer :

47

A Diff: 2

48


7.

49

The purpose of the marketing plan that is included within a business plan is to ________. A)

50

clarify the projected profits of a firm's products B)

51

set long-term objectives for a firm's middle managers C)

52

assign measurable goals for a firm's sales team D)

53

specify the features of a firm's product or service E)

54

describe the benefits of performing an industry analysis Answer :

55

D Diff: 3

56


8.

57

In order to implement a marketing plan, Apple needs a(n) ________ that will address its productive assets like the factories, machines, and facilities required to manufacture and distribute its popular iPods.

A)

58

balance sheet B)

59

pricing strategy C)

60

operations plan D)

61

income statement E)

62

personnel plan Answer :

63

C Diff: 2

64

Page Ref: 101 Objective: 3 Skill: Application

9.

65

SMART goals set by managers are ________. A)

66

specific, measurable, aggressive, required, and tested B)

67

short-term, motivational, attainable, relevant, and total C)

68

standardized, manageable, accurate, restrictive, and tested D)

69

short-term, measurable, aggressive, risky, and timely E)

70

specific, measurable, attainable, relevant, and timely Answer :

71

E Diff: 2

72


10.

73

Raj and his manager meet for lunch to jointly set Raj's quarterly sales goals. Raj's manager will periodically assess the progress Raj makes towards those goals. Raj and his manager are most likely participating in ________.

A)

74

strategic planning initiatives B)

75

corporate-level strategizing C)

76

management by objectives D)

77

human resource arbitration E)

78

job instruction training Answer :

79

C Diff: 1

80


11.

81

Which of the following is the primary benefit of MBO? A)

82

MBO is an effective method for determining the relationship between an employee's goals and the goals of supervisors and subordinates.

B)

83

Feedback provided by customers who participate in an MBO program enhances a firm's marketing efforts.

C)

84

Implementing an MBO program requires very little time and provides extensive employee motivation. D)

85

MBO is an informal yet highly effective technique of documenting a firm's long-term goals and objectives. E)

86

An MBO program encourages employee participation during department meetings and company conferences.

Answer :

87

A Diff: 3

88


12.

89

A(n) ________ is a firm's method for matching its internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage.

A)

90

strategic plan B)

91

situation analysis C)

92

environmental scan D)

93

SWOT analysis E)

94

tactical plan Answer :

95

A Diff: 1

96


13.

97

A course of action that a firm can pursue to achieve its strategic aims is known as a ________. A)

98

vision B)

99

goal C)

100

strategy D)

101

tactic E)

102

mission Answer :

103

C Diff: 1

104


14.

105

All of the following are steps involved in the strategic management process EXCEPT ________. A)

106

evaluating the firm's internal and external situation B)

107

defining the business and developing a mission C)

108

translating the mission into strategic goals D)

109

crafting a course of action E)

110

offshoring low-skill jobs Answer :

111

E Diff: 2

112


15.

113

What is the first step in the strategic management process? A)

114

formulating a strategy B)

115

defining the current business C)

116

translating a mission into goals D)

117

performing internal and external audits E)

118

implementing an environmental scan Answer :

119

B Diff: 3

120


16.

121

Which of the following is a simple guide used to compile relevant information about economic, competitive, and political trends that may affect a firm?

A)

122

organization chart B)

123

workforce requirement matrix C)

124

environmental scanning worksheet D)

125

external resource system table E)

126

potential globalization network Answer :

127

C Diff: 1

128


17.

129

The primary tool used by managers who are performing external and internal audits as part of the strategic management process is the ________.

A)

130

BCG matrix B)

131

QSPM matrix C)

132

SWOT chart D)

133

EPS/EBIT table E)

134

MBO assessment Answer :

135

C Diff: 2

136


18.

137

Which of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"?

A)

138

mission statement B)

139

strategic plan C)

140

code of ethics D)

141

vision statement E)

142

marketing plan Answer :

143

D Diff: 1

144


19.

145

The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?

A)

146

performing external and internal audits B)

147

defining the business and its mission C)

148

translating a mission into strategic goals D)

149

evaluating strategic decisions E)

150

implementing a strategy Answer :

151

C Diff: 2

152


20.

153

The ________ of the California Energy Commission indicates that the organization assesses and acts through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment.

A)

154

mission statement B)

155

strategic plan C)

156

code of ethics D)

157

vision statement E)

158

organizational code Answer :

159

A Diff: 2

160


21.

161

A company's ________ strategy identifies the portfolio of businesses that comprise a firm and the ways in which these businesses relate to each other.

A)

162

functional B)

163

business unit C)

164

corporate-level D)

165

competitive E)

166

departmental Answer :

167

C Diff: 1

168


22.

169

A diversification corporate strategy implies that a firm will ________. A)

170

become an industry's low-cost leader B)

171

expand by adding new product lines C)

172

reduce the company's size to increase market share D)

173

save money by producing its own raw materials E)

174

increase profits by offering one popular product Answer :

175

B Diff: 2

176


23.

177

Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the the firm is pursuing which of the following strategies?

A)

178

cost leadership B)

179

conglomerate diversification C)

180

geographic expansion D)

181

related diversification E)

182

horizontal integration Answer :

183

D Diff: 2

184


24.

185

Acquiring control of competitors in the same or similar markets with the same or similar products is known as ________.

A)

186

market penetration B)

187

product development C)

188

vertical integration D)

189

geographic expansion E)

190


191

E Diff: 1

192


25.

193

Winchester Rugs operates a web site called www.buyrugsdirect.com, so Winchester Rugs is most likely using a strategy of ________.

A)

194

consolidation B)

195

conglomerate diversification C)

196


197

vertical integration E)

198


199

D Diff: 2

200


26.

201

Which of the following activities most likely indicates that a firm is implementing a vertical integration strategy?

A)

202

selling unprofitable divisions B)

203

offshoring low-skill jobs C)

204

producing raw materials D)

205

aggressively selling a new product E)

206

purchasing a competitor's firm Answer :

207

C Diff: 2

208


27.

209

The 2008 announcement by Starbucks that it would be closing approximately 600 of its stores suggests the firm was using a ________ strategy.

A)

210

consolidation B)

211

diversification C)

212


213

vertical integration E)

214

product development Answer :

215

A Diff: 2

216


31.

217

A company's ________ strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.

A)

218

functional B)

219

economic C)

220

corporate-level D)

221

horizontal E)

222

competitive Answer :

223

E Diff: 1

224


32.

225

Which of the following refers to any factors that allow a company to differentiate its product or service from those of its competitors to increase market share?

A)

226

functional strategy B)

227

competitive advantage C)

228

distinctive competence D)

229

competitive focusers E)

230

related diversification Answer :

231

B Diff: 1

232


33.

233

A company's business-level strategy identifies the ________. A)

234

ways to build and strengthen a firm's long-term competitive position in the marketplace B)

235

tools for diversifying a business portfolio through the acquisition of a multi-national enterprise C)

236

specific courses of action that each department will pursue to help a firm accomplish its vision D)

237

means to becoming a low-cost leader within a highly competitive industry E)

238

ways to carve out a market niche in order to compete for high-end customers Answer :

239

A Diff: 2

240


34.

241

Companies like Ferrari are known as ________ because they carve out a market niche and compete by providing a product that customers can attain in no other way.

A)

242

cost leaders B)

243

focusers C)

244

visionaries D)

245

market leaders E)

246

complementary competitors Answer :

247

B Diff: 1

248


35.

249

Which of the following strategies identifies the broad activities that each department will pursue in order to help a business attain its competitive goals?

A)

250

competitive B)

251

business-level C)

252

corporate-level D)

253

consolidation E)

254

functional Answer :

255

E Diff: 2

256


36.

257

A firm's functional strategies identify the broad activities that each ________ will pursue in order to help the firm accomplish its competitive goals.

A)

258

board member B)

259

supplier C)

260

department D)

261

executive E)

262

employee Answer :

263

C Diff: 1

264


37.

265

Strategic planning expert Michael Porter uses the term ________ to describe how a firm's departmental strategies and competitive aims should align for the greatest impact.

A)

266

strategic objectives B)

267

visionary strategy C)

268

vertical strategy D)

269

strategic management E)

270

strategic fit Answer :

271

E Diff: 1

272


38.

273

All of the following are roles that departmental managers would most likely have in the strategic planning process EXCEPT ________.

A)

274

assisting top managers in devising a strategic plan B)

275

developing functional, departmental plans C)

276

implementing functional, departmental plans D)

277

deciding the businesses in which a firm will be involved E)

278

providing input to top management about industry trends Answer :

279

D Diff: 2

280


39.

281

Exporting jobs from developed countries to countries with low labor force costs is known as ________. A)

282

freelancing B)

283

unionizing C)

284

offshoring D)

285

integrating E)

286

networking Answer :

287

C Diff: 1

288


40.

289

Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as ________.

A)

290

strategic human resource management B)

291

human resource performance systems C)

292

strategic human resource metrics D)

293

high-performance personnel management E)

294

personnel management by objectives Answer :

295

A Diff: 1

296


41.

297

The primary purpose of strategic human resource management is to ________. A)

298

develop human resource policies that align with the industry standard B)

299

link a company's strategic plan with its human resource strategies C)

300

create stringent appraisal systems that highlight employee weaknesses D)

301

eliminate bonuses for top management and distribute the cost savings among subordinates E)

302

use offshoring to reduce human resource costs and to initiate globalization Answer :

303

B Diff: 3

304


42.

305

In order to generate the desired workforce skills, competencies, and behaviors that a firm needs to achieve its strategic goals, human resource management must first develop ________.

A)

306

HR consultants B)

307

HR strategies C)

308

HR databases D)

309

employee cultures E)

310

company norms Answer :

311

B Diff: 2

312


43.

313

Which of the following most likely serves as the basis for the HR strategies developed by the majority of firms?

A)

314

mission statements B)

315

potential strengths C)

316

supervisory objectives D)

317

competitive advantages E)

318

workforce requirements Answer :

319

E Diff: 2

320


44.

321

Which of the following is the final step in the strategic human resource management process? A)

322

formulating HR policies and practices B)

323

identifying a firm's workforce requirements C)

324

formulating an effective business strategy D)

325

developing detailed HR scorecard measures E)

326

testing current employees for skills and knowledge Answer :

327

D Diff: 2

328


45.

329

Human resource strategies are the ________ used to support a firm's strategic goals. A)

330

visions and objectives B)

331

policies and practices C)

332

missions and goals D)

333

plans and evaluations E)

334

theories and tools Answer :

335

B Diff: 1

336


46.

337

As with many failed mergers and acquisitions, the Bank of America acquisition of Merrill Lynch was unsuccessful because of problems with ________.

A)

338

technology B)

339

financing C)

340

geography D)

341

personnel E)

342

stock prices Answer :

343

D Diff: 2

344


47.

345

Which of the following best explains the increased success of mergers and acquisitions in recent years? A)

346

improvements in wireless communication technology B)

347

union support of employee rights in multiple industries C)

348

fewer restrictions regarding corporate globalization D)

349

federal legislation regarding employee wages and rights E)

350

consistent involvement of human resource management Answer :

351

E Diff: 2

352


48.

353

During a merger or an acquisition, due diligence reviews performed by human resource teams are most likely to assess all of the following EXCEPT ________.

A)

354

accounting procedures B)

355

organizational culture C)

356

employee compensation D)

357

employee benefits E)

358

labor relations Answer :

359

A Diff: 2

360


49.

361

Which of the following is the most important human resource issue to address during the first few months of a merger?

A)

362

interviewing and hiring low-level managers B)

363

modifying benefits packages C)

364

identifying and retaining key talent D)

365

modifying employee pay grades E)

366

eliminating annual employee reviews Answer :

367

C Diff: 2

368


50.

369

All of the following are services that human resource consulting companies provide during mergers and acquisitions EXCEPT ________.

A)

370

aligning compensation programs B)

371

overseeing database recovery systems C)

372

developing change management plans D)

373

designing and implementing staffing models E)

374

managing employee communications strategies Answer :

375

B Diff: 2

376


51.

377

Which of the following is a strategic planning tool that shows the "big picture" of how each department's performance contributes to achieving the company's overall strategic goals?

A)

378

HR audit B)

379

strategic plan C)

380

digital dashboard D)

381

strategy map E)

382

HR scorecard Answer :

383

D Diff: 1

384


52.

385

Which of the following refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results?

A)

386

strategy map B)

387

HR scorecard C)

388

internal auditing D)

389

HR feedback scale E)

390

digital dashboard Answer :

391

B Diff: 1

392


53.

393

A ________ presents a manager with desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process.

A)

394

strategy map B)

395

HR benchmark C)

396

business plan D)

397

scanning worksheet E)

398

digital dashboard Answer :

399

E Diff: 1

400


54.

401

The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR activities, employee behaviors resulting from the activities, and the strategically relevant organizational outcomes of those employee behaviors is called a(n) ________.

A)

402

evaluation system B)

403

HR scorecard C)

404

appraisal system D)

405

evaluation benchmark E)

406

annual report Answer :

407

B Diff: 1

408


55.

409

Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals?

A)

410

functional planning system B)

411

HR Scorecard C)

412

annual HR benchmarks D)

413

high performance work system E)

414

MBO format Answer :

415

B Diff: 1

416


56.

417

Which of the following terms refers to a set of human resource management policies and practices that promote organizational effectiveness?

A)

418

management by objectives system B)

419

human resource metric C)

420

corporate-level strategy D)

421

high-performance work system E)

422

strategic human resource map Answer :

423

D Diff: 1

424


57.

425

High-performance work organizations are most likely characterized by all of the following EXCEPT ________.

A)

426

multi-skilled work teams B)

427

empowered front-line workers C)

428

extensive training D)

429

labor management cooperation E)

430

commitment to high production rates Answer :

431

E Diff: 2

432


58.

433

High-performance work systems have become necessary for U.S. firms due to ________. A)

434

unemployment rates B)

435

federal regulations C)

436

increased minimum wages D)

437

global competition E)

438

cost leadership Answer :

439

D Diff: 2

440


59.

441

All of the following practices are most likely implemented by companies with high-performance work systems EXCEPT ________.

A)

442

hiring employees based on validated selection tests B)

443

filling positions with internal candidates C)

444

utilizing self-managing work teams D)

445

providing extensive training to employees E)

446

providing pay increases based on service years Answer :

447

E Diff: 2

448


60.

449

Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses validated selection tests when considering external hires. This most likely suggests the company is developing a ________.

A)

450

high-performance work system B)

451

scorecard management system C)

452

benchmark D)

453

management by objectives strategy E)

454

selection metric Answer :

455

A Diff: 3

456


61.

457

Which of the following is most likely a true statement about high-performance companies? A)

458

Most employees are members of a local labor union. B)

459

Most employees receive regular performance appraisals. C)

460

Employee turnover is extremely high. D)

461

Only executives are eligible for incentive pay. E)

462

The majority of jobs are filled externally. Answer :

463

B Diff: 3

464


62.

465

Which of the following terms refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position?

A)

466

human resource audit B)

467

high-performance work system C)

468

human resource metric D)

469

management by objectives E)

470

human resource scorecard Answer :

471

C Diff: 1

472


63.

473

The use of human resource metrics is essential for ________. A)

474

management by objectives B)

475

emergent employee behaviors C)

476

corporate-level strategies D)

477

related diversification E)

478

evidence-based management Answer :

479

E Diff: 2

480


64.

481

The primary purpose of implementing high-performance practices such as recruiting, screening, and training is to ________.

A)

482

foster a strong organizational culture B)

483

eliminate the tendency to hire interns for full-time positions C)

484

create management opportunities for new hires D)

485

develop a trained and self-motivated workforce E)

486

utilize benchmarks to compare personnel skills within an industry Answer :

487

D Diff: 2

488


65.

489

Which of the following terms refers to the process of comparing and analyzing the practices of one firm with those of a high-performing company?

A)

490

benchmarking B)

491

diversifying C)

492

offshoring D)

493

strategizing E)

494

outsourcing Answer :

495

A Diff: 1

496


66.

497

According to studies, combining high-performance HR practices with modern technology most likely leads to increases in all of the following areas EXCEPT ________.

A)

498

worker productivity B)

499

media mentions C)

500

annual sales D)

501

product quality E)

502

financial performance Answer :

503

B Diff: 2

504


67.

505

Which of the following refers to an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions?

A)

506

HR methodology B)

507

HR benchmark C)

508

HR checklist D)

509

HR audit E)

510

HR ratio Answer :

511

D Diff: 1

512


68.

513

Which of the following audits is used by HR managers to determine whether a firm is adhering to relevant laws and regulations?

A)

514

strategic audit B)

515

compliance audit C)

516

organizational audit D)

517

best practices audit E)

518

function specific audit Answer :

519

B Diff: 1

520


69.

521

What is the first step of the HR audit process? A)

522

planning the audit budget B)

523

attaining top management support C)

524

drafting an audit team D)

525

determining the scope of the audit E)

526

compiling internal and external checklists Answer :

527

D Diff: 1

528


70.

529

All of the following are commonly used HR metrics EXCEPT ________. A)

530

communication expenses B)

531

absence rate C)

532

cost per hire D)

533

human capital ROI E)

534

health care costs per employee Answer :

535

A Diff: 1

536

Page Ref: 135 Objective: 9 Skill: Co

537

Chapter 3

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Transcript of Chapter 3