Test Item File Ch03

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Chapter 3: Strategic HRM and

Chapter 3: Strategic HRM and the HR Scorecardthe HR Scorecard Multiple Choice

Multiple Choice 1

1.. A A _________ _ iis s tthhe e ccoommppaannyy’’s s ppllaan n ffoor r hhoow w iit t wwiilll l mmaattcch h iitts s iinntteerrnnaal sl sttrreennggtthhs s aanndd weaknesses with external opportunities and threats to maintain a competitive

weaknesses with external opportunities and threats to maintain a competitive advantage.

advantage. aa.. ssttrraatteeggiic c ppllaann b

b.. ssiittuuaattiioon an annaallyyssiiss cc.. eennvviirroonnmmeennttaal sl sccaann d

d.. SSWWOOT T aannaallyyssiiss ee.. ttaaccttiiccaal l ppllaann

(a; easy) (a; easy) 2

2.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iis s nnoot t ppaarrt t oof f ssttrraatteeggiic pc pllaannnniinngg?? a.

a. evevalaluauatiting ng ththe e fifirmrm’s ’s ininteternrnal al anand d exexteternrnal al sisitutuatatioionn b

b.. dedefifinininng tg the he bbuussininesess as and nd ddevevelelopopining a mg a misisssioionn c.

c. trtrananslslatatining tg thhe e mmisissisioon n ininto to ststraratetegigic gc gooalalss d

d.. ccrraaffttiinng g a a ccoouurrsse e oof f aaccttiioonn ee.. iimmpplleemmeennttiinng g ssttrraatteeggiieess

(e; moderate) (e; moderate) 3

3.. TThhe e ppuurrppoosse e oof f a a ssttrraatteeggiic c ppllaan n iit t tto o iiddeennttiiffy y wwaayys s tto o ccrreeaatte e oor r mmaaiinnttaaiin n aa((nn)) _____.

_____.

aa.. ddiiffffeerreennttiiaal al addvvaannttaaggee b

b.. ccoommppeettiittiivve e aaddvvaannttaaggee cc.. iinnssttrruummeennttaal l aaddvvaannttaaggee d

d.. ssuucccceesss s ffaaccttoor r ee.. aalll l oof f tthhe e aabboovvee

(b; moderate) (b; moderate) 4

4.. WWhhaat t iis s tthhe e ffiirrsst t sstteep p iin n tthhe e ssttrraatteeggiic c mmaannaaggeemmeennt t pprroocceessss?? aa.. ppeerrfoforrm m exextteernrnaal l aannd d iinntteerrnnaal l aauuddiittss

b

b.. ddeeffiinne e tthhe e bbuussiinneesss s anand d iitts s mmiissssiioonn

cc.. ttrarannssllaatte te thhe me miissssiioon in inntto so sttrraattegegiic gc gooalalss d

d.. ffoorrmmuullaatte e a a ssttrraatteeggyy ee.. iimmpplleemmeennt t tthhe e ssttrraatteeggyy

(b; easy) (b; easy) 5

5.. A A _________ _ iis s a a ggeenneerraal l ssttaatteemmeennt t oof f iinntteennddeed d ddiirreeccttiioon n tthhaat t eevvookkees s eemmoottiioonnaall feelings in organization members.

feelings in organization members. aa.. mmiissssiioonn

b

b.. ssttrraatteeggiic c ppllaann cc.. ccoodde e oof f eetthhiiccss d

d.. vviissiioonn

ee.. nnoonne e oof f tthhe e aabboovvee (d; easy) (d; easy)

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6

6.. VViissiioon n ssttaatteemmeenntts s ffooccuus s oon n tthhe e __________.. aa.. ppaasstt

b

b.. pprreesseenntt cc.. ffuuttuurree d

d.. aalll l oof f tthhe e aabboovvee ee.. nnoonne e oof f tthhe e aabboovvee

(c; easy) (c; easy) 7

7.. A A _________ _ llaayys s oouut t wwhhaat t a a bbuussiinneesss s ssttrriivvees s tto o bbe e wwhhiille e tthhe e _________ _ llaayys s oouut t wwhhaat t iitt should be now.

should be now. aa.. mmiissssiioonn; ; vviissiioonn b

b.. vviissiioonn; m; miissssiioonn cc.. ddrreeaamm; ; vviissiioonn d

d.. ggooaall; ; aaccccoommpplliisshhmmeenntt ee.. CCEEOO; ; CCFFOO

8.. DDeeffiinniinng g tthhe e bbuussiinneesss s aannd d iitts ms miissssiioon n iis s tthhe _e ________ _ sstteep p iin n tthhe e ssttrraatteeggiicc management process. management process. aa.. ffiirrsstt b b.. sseeccoonndd cc.. tthhiirrdd d d.. ffoouurrtthh ee.. ffiifftthh (a; moderate) (a; moderate) 9

9.. PPeerrffoorrmmiinng g eexxtteerrnnaal l aannd d iinntteerrnnaal l aauuddiitts s iis s tthhe e _________ _ sstteep p iin n tthhe e ssttrraatteeggiicc management process. management process. aa.. ffiirrsstt b b.. sseeccoonndd cc.. tthhiirrdd d d.. ffoouurrtthh ee.. ffiifftthh (b; moderate) (b; moderate) 1

100.. TThhe e tthhiirrd d sstteep p iin n tthhe e ssttrraatteeggiic c mmaannaaggeemmeennt t pprroocceesss s iis s __________.. aa.. ppeerrfoforrm m exextteernrnaal l aannd d iinntteerrnnaal l aauuddiittss

b

(c; easy) (c; easy)

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1

111.. TThhe se saallees s ddiirreeccttoor ar at Wt WeebbMMD iD is s ddeevveellooppiinng gg gooaalls s rreeggaarrddiinng sg saallees s rreevveennuuee targets and the number of new medical-related content providers like hospitals and targets and the number of new medical-related content providers like hospitals and HMOs it must sign up per year. Which step of the strategic management process is HMOs it must sign up per year. Which step of the strategic management process is WebMD working on?

WebMD working on?

aa.. ppeerrfoforrm m exextteernrnaal l aannd d iinntteerrnnaal l aauuddiittss b

(c; moderate) (c; moderate) 1

122.. SSeevveerraal l yyeaearrs s aaggoo, , GGeenneerraal l MMoottoorrs s bbeeggaan n a a ccoommppaannyy-w-wiidde e ssttrraattegegy y tto o iimmpprorovvee product quality and customer satisfaction. Reports showed that GM’s product recalls product quality and customer satisfaction. Reports showed that GM’s product recalls

for the first half of that year were higher than for the entire previous year. GM for the first half of that year were higher than for the entire previous year. GM explained that the figures supported the corporate commitment to quality and explained that the figures supported the corporate commitment to quality and

satisfaction. Which step of the strategic management process was GM dealing with? satisfaction. Which step of the strategic management process was GM dealing with? aa.. ppeerrfoforrm m exextteernrnaal l aannd d iinntteerrnnaal l aauuddiittss

b

d.. ffoorrmmuullaatte e a a ssttrraatteeggyy ee.. eevvaalluuaatte pe peerrffoorrmmaannccee

133.. A _A ________ _ sseerrvvees s tto co coommmmuunniiccaatte we whho a o a ccoommppaanny iy iss, , wwhhaat t iit dt dooeess, , aannd d wwhheerre ie itt is headed.

is headed. aa.. mmiissssiioonn b

d.. vviissiioonn

ee.. nnoonne e oof f tthhe e aabboovvee (a; easy) (a; easy) 1

144.. TThhe _e ________ _ oof a f a nnaattiioonnaal el enneerrggy y mmiinniissttrry iy is ts to o iimmpprroovve ee enneerrggy sy syysstteemms ts thhaatt support the economy.

support the economy. aa.. mmiissssiioonn

b

d.. vviissiioonn

ee.. nnoonne e oof f tthhe e aabboovvee (a; moderate) (a; moderate) 1

155.. TThhe e _________ _ oof f a a nnaattiioonnaal el enneergrgy y mmiinniissttrry y iis s ffoor r tthhe e ccoouunnttry ry tto o hhaavve e aafffoforrddaabbllee,, reliable and safe energy supply.

reliable and safe energy supply. aa.. mmiissssiioonn

b

b.. ssttrraatteeggiic c ppllaann cc.. vviissiioonn

d

d.. ccoodde e oof f eetthhiiccss ee.. nnoonne e oof f tthhe e aabboovvee

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1

166.. TThhe e ppririmmaary ry ttooool l uussed ed iin n ssttep ep ttwwo o oof f ssttrratateeggiic c ppllaannnniinngg, , eexxtteerrnnaal l aannd d iinntterernnalal audits, is the _____.

audits, is the _____. aa.. 2 2 x x 2 2 mmaattrriixx

b

b.. 3 3 x x 3 3 mmaattrriixx cc.. SSWWOOT T aannaallyyssiiss d

d.. bbrreeaakk--eevveen an annaallyyssiiss ee.. nnoonne e oof f tthhe e aabboovvee

177.. SSWWOOT T iis s aan n aaccrroonnyym m ffoor r __________.. aa.. ssuucccceesss s wwiilll ol ovveerrccoomme te thhrreeaattss

b

b.. ststrerengngthths, s, weweakaknenesssseses, , opoppoportrtununititieies, s, anand d ththrereatatss cc.. ssttrratateeggiic wc woorlrlddwwiidde oe oppppoortrtuunniititiees ts teerrmmss

d

d.. ssyysstteemm-w-wiidde e oorrggaanniizazattiioonnal al ttaactctiiccss ee.. nnoonne e oof f tthhe e aabboovvee

188.. A A ssttrraatteeggy y ccaan n aallsso o bbe e ccaalllleed d a a __________.. aa.. ppllaann

b

b.. ggooaall

cc.. ccoouurrsse e oof f aaccttiioonn d d.. ttaaccttiicc ee.. mmiissssiioonn (c; moderate) (c; moderate) 1

199.. A A _________ _ aannsswweerrs s tthhe qe quueessttiioonn, , ““hhoow w ddo o wwe e ggeet ft frroom m hheerre te to o tthheerree??”” aa.. ggooaall b b.. ttaaccttiicc cc.. ssttrraatteeggyy d d.. mmiissssiioonn ee.. vviissiioonn (c; easy) (c; easy) 2

200.. TTrraannssllaattiinng sg sttraratteeggy iy inntto o aactctiioon in is ts thhe ee esssseenncce oe of tf thhe _e ________ _ sstetep p iin tn thhe se sttrraateteggiicc management process.

management process.

aa.. ppeerrfoforrm m exextteernrnaal l aannd d iinntteerrnnaal l aauuddiittss b

d.. foformrmuulalate te a sa strtratategegy ty to ao achchieieve ve ststraratetegigic gc goaoalsls ee.. iimmpplleemmeennt t tthhe e ssttrraatteeggyy

211.. A cA coommppaannyy’’s _s ________ s_ sttrraatteeggy iy iddeennttiiffiiees ts thhe pe poorrttffoolliio oo of bf buussiinneessssees ts thhaatt comprise the company and ways in which these businesses relate to each other. comprise the company and ways in which these businesses relate to each other. aa.. ffuunnccttiioonnaall

b

b.. bbuussiinneessss--lleevveell cc.. ccoorrppoorraattee--lleevveell d

d.. vveerrttiiccaal l iinntteeggrraattiioonn ee.. ccoommppeettiittiivvee

(c; moderate) (c; moderate)

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2

222.. _________ _ iis s tthhe e pprrooccesess s oof f aasssseessssiinng g pprrooggrreesss s ttoowwaarrd d ssttraratteeggiic c ggooaalls s anand d ttakakiinngg corrective action as needed.

corrective action as needed. aa.. SSttrraatteeggiic c mmaannaaggeemmeenntt b

b.. SSttrraatteeggiic pc pllaannnniinngg cc.. CCoonnssoolliiddaattiioonn d

d.. SSttrraatteeggiic c ccoonnttrrooll ee.. DDiivveerrssiiffiiccaattiioonn

(d; moderate) (d; moderate) 2

233.. WWhhaat t ddooees s a a ccoommppaannyy’’s s ccoorrppoorraattee--lleevveel l ssttrraatteeggy y iiddeennttiiffyy?? a.

a. how to how to build build and stand strengtrengthen thhen the busie business’ness’s lons long-term cg-term compeompetitivetitive position in the marketplace

position in the marketplace b

b.. ththe pe porortftfololio io of of bubusisinenesssses es ththat at cocompmpririse se ththe ce comompapanyny c.

c. the basthe basic couic courses orses of actiof action that en that each depach departmenartment will put will pursue in rsue in order order toto help the business attain its competitive goals

help the business attain its competitive goals d

d.. ththe pe posossisibibilility ty of of bbececoomiminng a g a lolow-w-cocosst lt leaeadeder r ee.. tthhe se soouurcrcees os of uf unniiqquueennesess is in tn thhe ie inndduussttrryy

244.. A cA coommppaannyy’’s _s ________ s_ sttrraatteeggy iy iddeennttiiffiiees ts thhe he hoow tw to bo buuiilld ad annd sd sttrreennggtthheen tn thhee business’s long-term competitive position in the marketplace.

business’s long-term competitive position in the marketplace. aa.. ffuunnccttiioonnaall

b

255.. WWhhaat t ddooees s a a ccoommppaannyy’’s s bbuussiinneessss--lleevveel l ssttrraatteeggy y iiddeennttiiffyy?? a.

(a; moderate) (a; moderate) 2

266.. A A ccoommppaannyy’’s s _________ _ ssttraratteeggy y iiddeennttiiffieies s tthhe e bbaassiic c cocouurrssees s oof f aaccttiioon n tthhaat t eeaacchh department will pursue in order to help the business attain its competitive goals. department will pursue in order to help the business attain its competitive goals. aa.. ffuunnccttiioonnaall

b

(a; moderate) (a; moderate)

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2

277.. WWhhaat t ddooees s a a ccoommppaannyy’’s s ffuunnccttiioonnaall--lleevveel l ssttrraatteeggy y iiddeennttiiffyy?? a.

288.. A _A ________ _ ssttrraatteeggy iy immpplliiees ts thhaat tt thhe fe fiirrm m wwiilll el exxppaannd d bby ay addddiinng ng neew pw prroodduucctt lines.

lines.

aa.. ccoonnssoolliiddaattiioonn b

b.. ddiivveerrssiiffiiccaattiioonn

cc.. ggeeooggrraapphhiic c eexxppaannssiioonn d

d.. iinntteeggrraattiioonn ee.. ccoommppeettiittiivvee

(b; moderate) (b; moderate)

29.

29. Hotel Hotel International International may may acquire acquire a a furniture-making furniture-making business. business. What What type type of of strategy is the hotel using?

strategy is the hotel using? ff.. ccoonnssoolliiddaattiioonn

g

g.. ddiivveerrssiiffiiccaattiioonn h

h.. ggeeooggrraapphhiic c eexxppaannssiioonn ii.. iinntteeggrraattiioonn

jj.. ccoommppeettiittiivvee

(b; moderate) (b; moderate) 30.

30. A A _____ _____ means means the the firm firm is is expanding expanding by by producing producing its its own own materials materials or or acquiring a retail outlet to sell its own products.

acquiring a retail outlet to sell its own products. aa.. ccoonnssoolliiddaattiioonn

b

(d; moderate) (d; moderate) 3

311.. A A ffeew w yyeeaarrs s aaggoo, , FFeeddEEx x aaccqquuiirered d KKiinnkkoo’’ss. . FFeeddEEx x ssttatatiioonns s hhad ad lloonng g eexxiisstteed d iinn Kinko’s stores to provide customers a convenient location. The acquisition illustrated Kinko’s stores to provide customers a convenient location. The acquisition illustrated that FedEx was following a

that FedEx was following a _____ strategy._____ strategy. aa.. vveerrttiiccaal l iinntteeggrraattiioonn

b

d.. hhoorriizzoonnttaal l iinntteeggrraattiioonn ee.. ccoommppeettiittiivvee

(a; moderate) (a; moderate)

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3

322.. SSuuppeerMrMaarrt t iis s cclloossiinng g mmaanny y oof f iitts s rretetaaiil l ssttooreres s tto o reredduucce e iitts s ccoommppaanny y ssiizzee. . TThhiiss is an example of a _____ strategy.

is an example of a _____ strategy. aa.. ccoonnssoolliiddaattiioonn b

333.. TTaasstty Ny Nooooddlle pe pllaanns ts to oo oppeen sn sttoorrees is in mn moorre Ae Assiiaan cn ciittiiees ds duurriinng tg thhe te twwo yo yeeaarrss.. This is an example of _____.

This is an example of _____. aa.. ccoonnssoolliiddaattiioonn b

344.. WWaall--MMaarrt it is ws weelll kl knnoowwn fn foor lr loowweesst pt prriicceess. O. Offffeerriinng tg thhe le loowweesst pt prriiccees is is is ittss _____.

_____.

aa.. ffuunnccttiioonnaal l ssttrraatteeggyy b

b.. ccoommppeettiittiivve e aaddvvaannttaaggee cc.. ddiissttiinnccttiivve e ccoommppeetteennccee d

d.. ccoorrppoorraatte e ssttrraatteeggyy ee.. aalll l oof f tthhe e aabboovvee

355.. AA(n(n) _) ________ _ iis as annyytthhiinng tg thhaat at alllloowws s aan n oorrggaanniizzatatiioon tn to o ddiiffffeererennttiaiatte ie itts s pprroodduuctctss or service from those of its competitors to increase market share.

or service from those of its competitors to increase market share. aa.. ffuunnccttiioonnaal l ssttrraatteeggyy

b

b.. ccoommppeettiittiivve e aaddvvaannttaaggee cc.. ddiissttiinnccttiivve e ccoommppeetteennccee d

d.. ccoorrppoorraatte e ssttrraatteeggyy ee.. aalll l oof f tthhe e aabboovvee

366.. CCoommppaanniiees ls liikke Fe Feerrrraarri ci caan n bbe ce caalllleed _d ________ _ bbeeccaauusse te thheey cy caarrvve oe ouut a t a mmaarrkkeett niche and compete by providing a product that customers can get in no other way. niche and compete by providing a product that customers can get in no other way. aa.. maarrkm keet t lleeaaddeerrss

b

b.. ffooccuusseerrss cc.. ccaarrvveerrss d

d.. uunniiqquue e ooffffeerriinnggss

ee.. ccoommpplleemmeennttaarry y ccoommppeettiittoorrss (b; easy)

(b; easy)

36 36

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3

377.. VVoollvvo o ssttrresesssees s tthhe e ssaaffeetty y oof f iitts s ccararss. . VVoollvvo o iis s ffoolllloowwiinng g a a _________ _ cocommppeettititiivvee strategy.

strategy.

aa.. ccoosst t lleeaaddeerrsshhiipp b

b.. ffooccuuss

cc.. ddiiffffeerreennttiiaattiioonn d

d.. ffuunnccttiioonnaall ee.. iinntteeggrraattiioonn

388.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iis s a a ttyyppe e oof f ccoommppeettiittiivve se sttrraatteeggyy?? aa.. ccoosst t lleeaaddeerrsshhiipp

b

b.. vveerrttiiccaal l iinntteeggrraattiioonn cc.. ccoonnssoolliiddaattiioonn d

d.. hhoorriizzoonnttaal l iinntteeggrraattiioonn ee.. eexxppaannssiioonn

399.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iilllluussttrraattees s a a ffooccuus s ssttrraatteeggyy?? aa.. GGoooodd--MMaarrt t ooffffeerrs s tthhe e lloowweesst t pprriicceess

b

b.. BBeesstt--MMaarrt t sseelllls s uuppssccaalle e bbrraannddss

cc.. MMeerrcceeddees s BBeennz z eemmpphhaassiizzees s ssttaattuus s aannd d qquuaalliittyy d.

d. Comfy Comfy Rent-aRent-a-Car ta-Car targets rgets referralreferrals thrs through ough car decar dealershalerships aips andnd insurance agents

insurance agents

ee.. SSooffy y ttooiilleet t ppaappeer r ccllaaiimms s tto o bbe e tthhe e ssoofftteesst t oon n tthhe e mmaarrkkeett (d; difficult)

(d; difficult) 4

400.. WWhhiicch oh of tf thhe fe foolllloowwiinng g iilllluussttrraattees a s a ccoosst lt leeaaddeerrsshhiip sp sttrraatteeggyy?? aa.. GGoooodd--MMaarrt t ooffffeerrs s tthhe e lloowweesst t pprriicceess

b

b.. BBeesstt--MMaarrt t sseelllls s uuppssccaalle e bbrraannddss

cc.. MMeerrcceeddees s BBeennz z eemmpphhaassiizzees s ssttaattuus s aannd d qquuaalliittyy d.

insurance agents

ee.. SSooffy y ttooiilleet t ppaappeer r ccllaaiimms s tto o bbe e tthhe e ssoofftteesst t oon n tthhe e mmaarrkkeett (a; moderate)

(a; moderate) 4

411.. WWhhiicch oh of tf thhe fe foolllloowwiinng ig illlluussttrraattees a s a ddiiffffeerreennttiiaattiioon sn sttrraatteeggyy?? aa.. GGoooodd--MMaarrt t ooffffeerrs s tthhe e lloowweesst t pprriicceess

b

b.. BBiigg--SSaavviinng g MMaarrt t pprroommoottees s iittsseellf f aas s a a wwaay y tto o ssaavvee cc.. MMeerrcceeddees s BBeennz z eemmpphhaassiizzees s ssttaattuus s aannd d qquuaalliittyy

d.

insurance agents e.

e. Cut-PCut-Price Mrice Mart art promipromises ses to to cut cut shopshoppers’ pers’ grocergrocery by billsills (c; difficult)

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4

422.. MMiichchaael el PPoortrteer er emmpphhaassiizzes es tthhaat at alll a l a fifirrmm’’s s aactctiivviititiees s sshhoouulld d bbe e ttaaiilloorreed td to o iittss strategy by ensuring that a firm’s functional strategies support its corporate and strategy by ensuring that a firm’s functional strategies support its corporate and competitive strategies. This is called _____.

competitive strategies. This is called _____.

aa.. mmaattcchh

b

b.. lleevveerraaggee

cc.. ffiitt d d.. ssttrreettcchh ee.. hheeiigghhtt (c; moderate) (c; moderate) 4

433.. EEccoon An Aiirrlilinnees ps puurrssuuees a s a llooww--ccoosst lt leeaaddeer sr sttrraatteeggy y aannd td thheen tn taaiilloors rs iitts as accttiivviittiieess to that strategy. For instance, it has quick turnarounds at the gate which results in to that strategy. For instance, it has quick turnarounds at the gate which results in more flying time for each plane and more departures with fewer planes. Econ Airlines more flying time for each plane and more departures with fewer planes. Econ Airlines is an example of the _____ point of view.

is an example of the _____ point of view.

aa.. mmaattcchh

b

cc.. ffiitt d d.. ssttrreettcchh ee.. hheeiigghhtt (c; moderate) (c; moderate) 4

444.. LLeevveerraaggiinng rg reessoouurrccees bs by sy suupppplleemmeennttiinng wg whhaat a t a ccoommppaanny hy haas as annd dd dooiinng mg moorree with what it has to take advantage of an opportunity means that the company has a with what it has to take advantage of an opportunity means that the company has a _____ point of view.

_____ point of view.

aa.. mmaattcchh

b

cc.. ffiitt d d.. ssttrreettcchh ee.. hheeiigghhtt (d; moderate) (d; moderate) 4

455.. WWhhiicch oh of tf thhe fe foolllloowwiinng g bbaassiic sc sttrraatteeggiic pc pllaannnniinng rg roollees s iis fs fuullffiilllleed bd by y HHR R managers?

managers?

aa.. ppeerrffoorrm m eexxtteerrnnaal l aannd d iinntteerrnnaal l aauuddiittss b

b.. eexxeeccuutte e ssttrraatteeggyy

cc.. ttrraannssllaatte e tthhe e mmiissssiioon n iinntto o ssttrraatteeggiic c ggooaallss d

d.. ffoorrmmuullaatte e ssttrraatteeggyy ee.. bbootth h b b aannd d dd

466.. A cA coommppaannyy’’s bs baassiic _c ________ i_ is s mmaadde ue up op of Hf HR pR prrooffeessssiioonnaallss, t, thhe He HR sR syysstteemm, a, anndd the resulting employee behaviors.

the resulting employee behaviors. aa.. HHR R aarrcchhiitteeccttuurree b

b.. ssttrruuccttuurree

cc.. ssttrraatteeggyy

d

d.. HHR R ffuunnccttiioonn ee.. nnoonne e oof f tthhe e aabboovvee

(a; easy) (a; easy)

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4

477.. HHuummaan n rreessoouurrcce e ppoolliicciiees s aannd d pprraaccttiiccees s aarre e ppaarrt t oof f tthhe e ____________.. aa.. HHR R ffuunnccttiioonn

b

b.. HHR R ssyysstteemm

cc.. HHR R aarrcchhiitteeccttuurree d

d.. eemmppllooyyeee e ccuullttuurree ee.. ccoommppaanny y nnoorrmmss

(b; difficult) (b; difficult) 4

488.. WWhhiicch oh of tf thhe fe foolllloowwiinng ig is ns noot at an on orrggaanniizzaattiioonnaal pl prraaccttiicce ie inncclluuddeed id in Hn Hiiggh h--Performance Work Systems?

Performance Work Systems? aa.. jjoob b eennrriicchhmmeenntt b

b.. jjoob b eennllaarrggeemmeenntt

cc.. eemmppllooyyeee e ddeevveellooppmmeenntt d

d.. fflleexxiibblle e wwoorrk k aassssiiggnnmmeennttss ee.. tteeaamm--bbaasseed d oorrggaanniizzaattiioonnss

(b; difficult) (b; difficult) 4

499.. MMaannaaggeerrs s uusse e aa((nn) _) ________ _ tto o mmeeaassuurre te thhe e HHR R ffuunnccttiioonn’’s s eeffffeeccttiivveenneesss s aanndd efficiency in producing employee behaviors the company needs to achieve its efficiency in producing employee behaviors the company needs to achieve its strategic goals. strategic goals. aa.. mmeettrriicc b b.. HHR R SSccoorreeccaarrdd cc.. ttiimmee d

d.. hhiiggh ph peerrffoorrmmaanncce we woorrk k ssyysstteemm ee.. MMBBO O ffoorrmmaatt

500.. TThhe ce coonncciisse me meeaassuurreemmeennt st syysstteem um usseed bd by cy coommppaanniiees ts to so shhoow tw thhe qe quuaannttiittaattiivvee standards the firm uses to measure HR activities, employee behaviors resulting from standards the firm uses to measure HR activities, employee behaviors resulting from the activities, and the strategically relevant organizational outcomes of those

the activities, and the strategically relevant organizational outcomes of those employee behaviors is called a(n) _____.

employee behaviors is called a(n) _____. aa.. eevvaalluuaattiioon n ssyysstteemm

b

b.. HHR R ssccoorreeccaarrdd cc.. aapppprraaiissaal l ssyysstteemm d

d.. eevvaalluuaattiioon n bbeenncchhmmaarrk k ee.. aannnnuuaal l rreeppoorrtt

511.. WWhhaat t iis s tthhe e sseeccoonnd d sstteep p iin n uussiinng g tthhe e HHR R SSccoorreeccaarrd d aapppprrooaacchh?? aa.. oouuttlliinne e tthhe e ccoommppaannyy’’s s vvaalluue e cchhaaiinn

b

b.. iiddeennttiiffy y tthhe e ssttrraatteeggiiccaallllyy--rreeqquuiirreed d oorrggaanniizzaattiioonnaal l oouuttccoommeess cc.. ddeeffiinne e tthhe e bbuussiinneesss s ssttrraatteeggyy

d

d.. ddeessiiggn n tthhe e HHR R ssccoorreeccaarrd d mmeeaassuurreemmeennt t ssyysstteemm ee.. eevvaalluuaatte e tthhe e mmeeaassuurreemmeennt t ssyysstteemm

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What is the first step in using the HR Scorecard approach? What is the first step in using the HR Scorecard approach? aa.. oouuttlliinne e tthhe e ccoommppaannyy’’s s vvaalluue e cchhaaiinn b

d

533.. WWhhaat t iis s tthhe fe fiinnaal l sstteep p iin n uussiinng g tthhe He HR R SSccoorreeccaarrd d aapppprrooaacchh?? aa.. oouuttlliinne e tthhe e ccoommppaannyy’’s s vvaalluue e cchhaaiinn

b

d

544.. IdIdeennttiiffy y tthhe e SSttrraattegegiiccalallly y RReeqquuiirred ed OOrgrgaanniizzaattiioonnal al OOuuttccoommes es iis s tthhe e _________ _ ssttepep in using the HR Scorecard approach.

in using the HR Scorecard approach.

aa.. ffiirrsstt b b.. sseeccoonndd cc.. tthhiirrdd d d.. ffoouurrtthh ee.. ffiifftthh (c; moderate) (c; moderate) 5

555.. OOuuttlliinne e tthhe e ccoommppaannyy’’s s vvaalluue e cchhaaiin n iis s tthhe e _________ _ sstteep p iin n uussiinng g tthhe e HHR R Scorecard approach. Scorecard approach. aa.. ffiirrsstt b b.. sseeccoonndd cc.. tthhiirrdd d d.. ffoouurrtthh ee.. ffiifftthh (b; moderate) (b; moderate) 5

566.. DDeeffiinne te thhe be buussiinneesss ss sttrraatteeggy iy is s tthhe _e ________ _ sstteep ip in un ussiinng g tthhe He HR R SSccoorreeccaarrdd approach. approach. aa.. ffiirrsstt b b.. sseeccoonndd cc.. tthhiirrdd d d.. ffoouurrtthh ee.. ffiifftthh (a; moderate) (a; moderate) 5

577.. IdIdeennttiiffyyiinng g tthhe e RReeqquuiirred ed WWoorrkkfoforcrce e CCoommppeetteennciciees s aannd d BBeehhaavviioorrs s iis s tthhe e _________ _ step in using the HR Scorecard approach.

step in using the HR Scorecard approach.

aa.. sseeccoonndd

b

b.. tthhiirrdd

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5

588.. IdIdeennttiiffyyiinng tg thhe e ssttrraattegegiiccalallly y rerelleevvanant Ht HR R ssyysstteem m ppoolliicciiees s anand d acacttiivvititiiees s iis s tthhee _____ step in using the HR Scorecard approach.

_____ step in using the HR Scorecard approach.

aa.. sseeccoonndd b b.. tthhiirrdd cc.. ffoouurrtthh d d.. ffiifftthh ee.. ssiixxtthh (d; moderate) (d; moderate) 5

599.. DDuurriinng g wwhhiicch h sstteep p oof f tthhe e HHR R SSccoorreeccaarrd d aapppprrooaacch h aarre e tthhe e HHR R eennaabblleerrs s aanndd deliverables identified? deliverables identified? aa.. sseeccoonndd b b.. tthhiirrdd cc.. ffoouurrtthh d d.. ffiifftthh ee.. ssiixxtthh (d; moderate) (d; moderate) 6

600.. DDuurriinng g wwhhiicch h sstteep p oof f tthhe e HHR R SSccoorreeccaarrd d aapppprrooaacch h aarre e tthhe e pprrooppeer r mmeettrriiccss decided upon? decided upon? aa.. sseeccoonndd b b.. tthhiirrdd cc.. ffoouurrtthh d d.. ffiifftthh ee.. ssiixxtthh (e; moderate) (e; moderate) 6

611.. WWhhiich ch ssttagage e oof f tthhe e HHR R SSccoorereccaard rd aapppprrooacach h iis s rereppeaeatteed d ppereriiooddiiccaalllly y tto o eennssuurree validity of the measures?

validity of the measures?

aa.. oouuttlliinne e tthhe e ccoommppaannyy’’s s vvaalluue e cchhaaiinn b

d

622.. A cA coommppaannyy’’s _s ________ i_ iddeennttiiffiiees ts thhe pe prriimmaarry ay accttiivviittiiees ts thhaat ct crreeaatte ve vaalluue fe foor r customers and the related support activities.

customers and the related support activities. aa.. vvaalluue e cchhaaiinn

b

b.. HHR R ssccoorreeccaarrdd

cc.. ssttrraatteeggyy

d

d.. ttaaccttiiccaal l aapppprrooaacchh ee.. nnoonne e oof f tthhe e aabboovvee

(a; easy) (a; easy)

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6

633.. HHR R ssyysstteem m aaccttiivvititiiees s tthhat at hheellp p pprorodduucce e vvaalluuaabblle e wwoorrkkffoorrcce e ccoommppeteteennciciees s aanndd behaviors are called _____.

behaviors are called _____.

aa.. ppeerrffoorrmmaanncce e ddrriivveerrss b

b.. HHR R ddeelliivveerraabblleess cc.. HHR R ccoommppeetteenncciieess d

d.. ssttrraatteeggiic c oouuttccoommeess ee.. bbootth h a a aannd d bb

644.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iis s nnoot t a a ttyyppe e oof f mmeeaassuurre e uusseed d tto o aasssseesss s HHR R performance drivers such as employee motivation and morale?

performance drivers such as employee motivation and morale? aa.. eemmppllooyyeee ae attttiittuudde se suurrvveeyyss

b

b.. eemmppllooyyeee e ttuurrnnoovveer r c.

c. nunumbmber er of of qquaualilifified ed apapplplicicanants ts pper er poposisititioonn d

d.. ememppllooyyeee e ccoommmmiittmmenent t ssuurvrveey y ssccoorreess ee.. ccuussttoommeer r ccoommppllaaiinnttss

(c; difficult) (c; difficult) 6

655.. WWhhiicch oh of tf thhe fe foolllloowwiinng g iis a s a ttyyppe oe of mf meeaassuurre fe foor ar asssseessssiinng g HHR pR peerrffoorrmmaannccee drivers like employee motivation?

drivers like employee motivation?

aa.. pprrooppoorrttiioon n oof f mmeerriit t ppaay y ddeetteerrmmiinneed d bby y ffoorrmmaal l ppeerrffoorrmmaanncce e aapppprraaiissaall b

b.. ppeerrcceennttaagge e oof f eemmppllooyyeeees s eelliiggiibblle e ffoor r aannnnuuaal l mmeerriit t ppllaann c.

c. percenpercentage of tage of differdifference in ence in incenincentive ptive pay betay between ween the lothe low perw performinformingg and high performing employees

and high performing employees d.

d. percenpercentage otage of retf retentioention of n of high high perfoperforming rming emploemployeesyees e.

e. perpercencentagtage of e of jobjobs fs fillilled fed from rom witwithinhin (d; difficult)

(d; difficult) 6

666.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iis s nnoot t a a ttyyppe oe of f mmeeaassuurre e ffoor r aasssseessssiinng g HHR R eennaabblleerrss such as testing, training, and reward policies?

such as testing, training, and reward policies?

aa.. pprrooppoorrttiioon n oof f mmeerriit t ppaay y ddeetteerrmmiinneed d bby y ffoorrmmaal l ppeerrffoorrmmaanncce e aapppprraaiissaall b

b.. ppeerrcceennttaagge e oof f eemmppllooyyeeees s eelliiggiibblle e ffoor r aannnnuuaal l mmeerriit t ppllaann c.

c. percenpercentage of tage of differdifference in ence in incenincentive ptive pay betay between ween the lothe low perw performinformingg and high performing employees

and high performing employees d.

d. ememplployoyee atee attititutude sde sururveveysys e.

e. perpercencentagtage of e of jobjobs fs fillilled fed from rom witwithinhin (d; difficult)

(d; difficult) 6

677.. WWhhiicch h oof f tthhe e ffoolllloowwiinng g iis s a a ttyyppe e oof f mmeeaassuurre e ffoor r aasssseessssiinng g HHR R eennaabblleerrss?? aa.. lleevveel l oof f ccrroossss--ccuullttuurraal l tteeaammwwoorrk k

b

b.. lleevveel l oof f oorrggaanniizzaattiioonnaal l lleeaarrnniinngg cc.. rreeqquueesstts s ffoor r ttrraannssffeer r

d

d.. ccuussttoommeer r ccoommppllaaiinnttss

ee.. nnuummbbeer r oof f hhoouurrs s oof f ttrraaiinniinng g eemmppllooyyeeees s rreecceeiivve e eeaacch h yyeeaar r (e; moderate)

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6

688.. HHR R eennaabblleerrs s ccoonnssiisst t oof f aalll l oof f tthhe e ffoolllloowwiinng g eexxcceeppt t __________.. aa.. sseelleeccttiioon n ppoolliicciieess

b

b.. pprraaccttiicceess

cc.. eemmppllooyyeee e ccaappaabbiilliittiieess d

d.. rreewwaarrd d ppoolliicciieess ee.. ttrraaiinniinng g ppoolliicciieess

699.. HHR R ppeerrffoorrmmaanncce e ddrriivveerrs s iinncclluudde e aalll l oof f tthhe e ffoolllloowwiinng g eexxcceeppt t __________.. aa.. eemmppllooyyeee e mmoorraallee

b

b.. rreewwaarrd d ppoolliicciieess

cc.. eemmppllooyyeee e ccoommmmiittmmeenntt d

d.. eemmppllooyyeee e vvaalluueess ee.. eemmppllooyyeee e mmoottiivvaattiioonn

700.. TThhe e _________ _ ssccoorreeccaarrd d iis s tto o tthhe e ccoommppaanny y wwhhaat t tthhe e HHR R ssccoorreeccaarrd d iis s tto o tthhe e HHR R function.

function.

aa.. ccoorrppoorraattee

b

b.. bbuussiinneessss--lleevveell cc.. ccoommppeettiittiivvee d

d.. bbaallaanncceedd

ee.. ffuunnccttiioonnaall (d; moderate) (d; moderate) True/ False

True/ False 7

711.. TThheerre e aarre e ssiix x sstteepps s iin n tthhe e ssttrraatteeggiic c mmaannaaggeemmeennt t pprroocceessss. . ((TT; ; eeaassyy)) 7

722.. HHR R mmaannaaggeerrs s nneeeed d tto o ssuuppppoorrt t ccoorrppoorraatte e pprroodduuccttiivviitty y aannd d ppeerrffoorrmmaannccee improvement efforts. (T; moderate)

improvement efforts. (T; moderate) 7

733.. EEmmppllooyyeeees ps pllaay a y a mmiinniimmaal rl roolle ie in n tthhe pe peerrffoorrmmaanncce ie immpprroovveemmeennt et effffoorrtts s oof f their employers. (F; easy)

their employers. (F; easy) 7

744.. HHR R iis s oonnlly y iinnvvoollvveed d iin n tthhe e eexxeeccuuttiioon on of f a a ccoommppaannyy’’s s ssttrraatteeggiic pc pllaann. . ((FF;; moderate)

moderate) 7

755.. A A mmisisssiioon n ssttaattememeent nt iis s a a ggeenneerraal l ssttatateemmeent nt oof f a a ccoommppaannyy’s ’s iinnttenenddeed d ddiirrececttiioonn that evokes emotional feelings in the organization’s members. (F; easy)

that evokes emotional feelings in the organization’s members. (F; easy) 7

766.. A A vviissiioon n ssttaatteemmeennt t iis s bbrrooaaddeer ar annd d mmoorre e ffuuttuurree--oorriieenntteed d tthhaan n a a mmiissssiioonn statement. (T; easy)

statement. (T; easy) 7

777.. MMiissssiioon n ssttaatteemmeenntts s tteennd d tto o ffooccuus s oon n ppaasst t ssuucccceesssseess. . ((FF; ; eeaassyy)) 7

788.. SSttrraatteeggy iy immpplleemmeennttaattiioon dn drraawws s mmoorre oe on n tthhe le leeaaddiinng mg maannaaggeemmeennt ft fuunnccttiioonn than on the functions of planning, organizing, staffing, and controlling. (F; difficult) than on the functions of planning, organizing, staffing, and controlling. (F; difficult) 7

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8

800.. MMaannaaggeerrs s eennggaagge e iin n tthhrreee le leevveells s oof f ssttrraatteeggiic pc pllaannnniinngg. . ((TT; ; mmooddeerraattee))

8

811.. CCoosst t lleeaaddeerrsshhiipp, , ddiiffffeererennttiaiattiioonn, a, annd d fofoccuus s ssttrraatteeggiiees s aalll tl tyyppees s oof f ccoorrppoorraatte- e-level strategy. (F; moderate)

level strategy. (F; moderate) 8

822.. A A vvererttiiccaal l iinntteeggrraattiioon n ssttraratteeggy y mmeeanans s tthhaat t tthhe e ffiirrm m wwiilll l eexxppaannd d bby y aaddddiinng g nneeww product lines. (F; easy)

product lines. (F; easy) 8

833.. MMcDcDoonnaalldd’s ’s aaddddrresessseed id itts ls lagagggiinng pg prrooffiittaabbiilliitty by by fy fiirrsst ct clloossiinng sg sttoorrees os oppeerraattiinngg below its guidelines. McDonald’s used a consolidation strategy. (T; moderate)

below its guidelines. McDonald’s used a consolidation strategy. (T; moderate) 8

844.. PPiizzzza Ha Huutt’’s ss sttrraatteeggy fy foor cr coommppeettiinng ag aggaaiinnsst Dt Doommiinnoo’’s is is a s a bbuussiinneessss--lleevveell strategy. (T; moderate)

strategy. (T; moderate) 8

855.. FFeeddEExx’’s as accqquuiissiittiioon on of Kf Kiinnkkoo’’s is is a s a ccoorrppoorraattee--lleevveel sl sttrraatteeggiic mc moovvee. (. (TT;; moderate)

moderate) 8

866.. DDeellll’s ’s ssttrraatteeggy y oof f ddeevveellooppiinng g aan n HHR R ppoorrttal al oon n tthhe e ccoommppaanny y wweebbssiitte e tto o ssuuppppoorrtt its low-cost competitive strategy is an example of an integration strategy. (F; difficult) its low-cost competitive strategy is an example of an integration strategy. (F; difficult) 8

877.. TThhe e ccoonncceeppt t oof f ssttrerettcch h ssttaattees s tthhaat t a a ffiirrmm’’s s aactctiivviittieies s mmuusst t bbe e ttaaiilloorreed d tto o iittss strategy. (F; easy)

strategy. (F; easy) 8

888.. LLeevvereraaggiinng g rreessoouurrcces es iis s a a nneecceessssaarry y acacttiioon n ffoor r ccoommppaanniiees s ssttrerettcchhiinng g tto o ttaakkee advantage of an opportunity. (T; moderate)

advantage of an opportunity. (T; moderate) 8

899.. SSttrraatteeggiic hc huummaan rn reessoouurrcce me maannaaggeemmeennt mt meeaanns fs foorrmmuullaattiinng ag annd ed exxeeccuuttiinng Hg HR R systems that produce the employee competencies and behaviors the company needs to systems that produce the employee competencies and behaviors the company needs to achieve its strategic aims. (T; moderate)

achieve its strategic aims. (T; moderate) 9

900.. A cA coommppaannyy’’s Hs HR sR sttrraatteeggy iy is a s a ttyyppe oe of cf coommppeettiittiivve se sttrraatteeggyy. (. (FF; d; diiffffiiccuulltt)) 9

911.. MMaanny y eexxeeccuuttiivvees s sseee e HHR R aas s a a ccoosst t cceenntteerr. . ((TT; ; eeaassyy)) 9

922.. HHR R mmaannaaggeerrs s ffuullffiilll l tthhe e ffiirrsst t ttwwo o sstteepps s oof f tthhe e ssttraratteeggiic c mmaannaaggeemmeennt t pprroocceessss.. (F; moderate)

(F; moderate) 9

933.. TThhe be baassiic c HHR R aarrcchhiitteeccttuurre e iinncclluuddees s tthhrreee ce coommppoonneennttss: : tthhe e HHR R ssyysstteemm, , HHR R professionals, and the resulting employee behaviors. (T; moderate)

professionals, and the resulting employee behaviors. (T; moderate) 9

944.. HHR mR maannaaggeerrs us usse te thhe He HR R SSccoorreeccaarrd td to o mmeeaassuurre te thhe se suucccceesss s oof tf thhe ve vaalluue ce chhaaiinn throughout an organization. (F; moderate)

throughout an organization. (F; moderate) 9

955.. TThhe e HHR R SSccoorreeccaard rd mmeaeassuurrees s tthhe e HHR R fufunnccttiioonn’’s s eeffffeeccttiivveenneesss s aannd d eeffffiicicieennccy y iinn producing desirable employee behaviors. (T; easy)

producing desirable employee behaviors. (T; easy) 9

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9

977.. TTo co crreeaatte ae an Hn HR SR Sccoorreeccaarrdd, t, thhe me maannaaggeer sr shhoouulld ud unnddeerrssttaannd td thhe ce caauussaal ll liinnkkss between the HR activities, the employee behaviors, the organizational outcomes, and between the HR activities, the employee behaviors, the organizational outcomes, and

the organization’s performance. (T; moderate) the organization’s performance. (T; moderate) 9

988.. TThhe be baallaanncceed d ssccoorreeccaarrd d ddooees s ffoor r tthhe e ccoommppaanny y aas s a a wwhhoolle e wwhhaat tt thhe e HHR R scorecard does for the HR function. (T; easy)

scorecard does for the HR function. (T; easy) 9

999.. TThhe e bbaallanancced ed ssccoorreecacarrd d iis s an an aaccccoouunnttiinng g ttooool l bbasaseed d oon n a a ccoommppuutteeririzzeed d mmooddeell.. (F; moderate)

(F; moderate) 1

10000.. In In a a sserervviice ce bbuussiinnesesss, , tthhe e pprroodduucct it is s ssaattiissffiieed d gguueessttss. . ((TT; ; mmooddeerraatte)e) Essay/ Short Answer

Essay/ Short Answer 1

10011.. WWhhat at aare re tthhe te thhreree be baassiic cc chhaallllenenggees Hs HR mR maannagageers rs mmuusst at addddrresess is in fn foorrmmuullaattiinngg HR strategies? Which of these is the most difficult for HR? (moderate)

HR strategies? Which of these is the most difficult for HR? (moderate) Answer:

Answer: The three challenges are the need The three challenges are the need to support corporate proto support corporate productivityductivity and performance improvement efforts, to encourage employees to plan an and performance improvement efforts, to encourage employees to plan an expanded role in employers’ performance improvement efforts, and to be expanded role in employers’ performance improvement efforts, and to be more involved in the design and execution of the company’s strategic plan. more involved in the design and execution of the company’s strategic plan. The final challenge is key as HR has traditionally been involved more in the The final challenge is key as HR has traditionally been involved more in the execution rather than the design of strategic plans.

execution rather than the design of strategic plans. 1

10022.. WWhhat at iis ss sttraratteeggiic mc mananaaggeemmenentt? D? Defefiinne te thhe te teerrmm. L. Liisst at annd dd deesscrcriibbe te thhe se siix sx stteeppss in the strategic management process. (moderate)

in the strategic management process. (moderate) Answer:

Answer: Strategic management is the process Strategic management is the process of identifying and of identifying and executing theexecuting the organization’s mission, by matching the organization’s capabilities with the organization’s mission, by matching the organization’s capabilities with the demands of its environment. The steps are as follows:

demands of its environment. The steps are as follows: Step 1:

Step 1: Define the BusinesDefine the Business and Its s and Its MissionMission Step 2:

Step 2: Perform External Perform External and Internal and Internal AuditsAudits Step 3:

Step 3: Translate the MissioTranslate the Mission into Strategic n into Strategic GoalsGoals Step 4:

Step 4: Formulate a Strategy Formulate a Strategy to Achieve the to Achieve the Strategic GoalsStrategic Goals Step 5:

Step 5: Implement the Implement the StrategyStrategy Step 6: Evaluate Performance Step 6: Evaluate Performance

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1

10033.. EExxppllaaiin tn thhe de dififffeererenncce be beettwweeeen a n a vviissiioon an annd a d a mmiissssiioonn. A. Arre be bootth nh nececeessssaary ry ffoor r organizations? (moderate)

organizations? (moderate) Answer:

Answer: A company’s visioA company’s vision is a general statement n is a general statement of the company’sof the company’s

intended direction that evokes emotional feelings in organization members. It intended direction that evokes emotional feelings in organization members. It is broader than a mission statement. It is future-oriented while mission

is broader than a mission statement. It is future-oriented while mission statements are oriented in the present. Mission statements state what a statements are oriented in the present. Mission statements state what a company is doing right now while vision statements are what a company company is doing right now while vision statements are what a company strives to become. Both are encouraged for organizations but some

strives to become. Both are encouraged for organizations but some organizations have only a mission statement. Others may have neither a organizations have only a mission statement. Others may have neither a mission nor a vision.

mission nor a vision. 1

10044.. DDuurriinng tg thhe se sttrraatteeggiic mc maannaaggeemmeennt pt prroocceessss, m, maannaaggeerrs ms maay uy usse a e a SSWWOOTT

analysis. Explain how to use a SWOT analysis and provide an example using a analysis. Explain how to use a SWOT analysis and provide an example using a well-known company. (moderate)

known company. (moderate)

Answer: The SWOT analysis is used during the second step of the strategic Answer: The SWOT analysis is used during the second step of the strategic management process. It facilitates the audit of external and internal situations. management process. It facilitates the audit of external and internal situations. SWOT stands for strengths, weaknesses, opportunities, and threats. Managers SWOT stands for strengths, weaknesses, opportunities, and threats. Managers can create a chart listing the strengths of the company, the weaknesses, and can create a chart listing the strengths of the company, the weaknesses, and opportunities in the environment and threats in the environment. The chart opportunities in the environment and threats in the environment. The chart makes it easy to see where strengths can lead to opportunities or how makes it easy to see where strengths can lead to opportunities or how weaknesses may need to be solved to avoid threats.

weaknesses may need to be solved to avoid threats. Students should provide an example with this

Students should provide an example with this answer.answer. 1

10505.. ExExplplaiain n ththe e ththreree e lelevvelels s oof f ststrarateteggic ic pplalannnniningg. . WWhahat t is is ththe e ppururpopose se or or fofocucus s fofor r each level? Which level do HR strategies represent? (easy)

each level? Which level do HR strategies represent? (easy) Answer:

Answer: The three levels The three levels are corporate-level, businessare corporate-level, business-level, and functional--level, and functional-level strategies. Corporate-functional-level strategy identifies the portfolio of businesses level strategies. Corporate-level strategy identifies the portfolio of businesses that comprise the company and the ways in which these businesses relate to that comprise the company and the ways in which these businesses relate to each other. The business-level strategy is the next level. It identifies how to each other. The business-level strategy is the next level. It identifies how to build and strengthen the business’s long-term competitive

build and strengthen the business’s long-term competitive position in theposition in the marketplace. The lowest level is the functional-level strategies. Functional marketplace. The lowest level is the functional-level strategies. Functional strategies identify the basic course of action that each department will pursue strategies identify the basic course of action that each department will pursue in order to help the business attain its competitive goals. HR strategies are a in order to help the business attain its competitive goals. HR strategies are a type of functional strategy.

type of functional strategy. 1

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Describe them and give an example of each one. (moderate) Answer:

Answer: The three forms The three forms of competitive strategies of competitive strategies are cost leadership,are cost leadership, differentiation, and focus. Cost leadership means offering the lowest prices differentiation, and focus. Cost leadership means offering the lowest prices and/or emphasizing low costs and efficiency as a source of competitive and/or emphasizing low costs and efficiency as a source of competitive advantage. Wal-Mart is an example of a company pursuing a cost leadership advantage. Wal-Mart is an example of a company pursuing a cost leadership strategy. Differentiation means emphasizing a source of difference between a strategy. Differentiation means emphasizing a source of difference between a company and its competitors. The differential advantage becomes the source company and its competitors. The differential advantage becomes the source

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1

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stretch. Explain these two opposing concepts. Which do you think is best? (diffopposing concepts. Which do you think is best? (diff icult)icult) Answer:

Answer: The fit point of The fit point of view means that all of view means that all of a firm’s activities must bea firm’s activities must be tailored to fit its strategy. This ensures that a firm’s functional strategies tailored to fit its strategy. This ensures that a firm’s functional strategies support its corporate and competitive strategies. Southwest Airlines is an support its corporate and competitive strategies. Southwest Airlines is an example of a firm using the fit approach. On the other hand, stretch means example of a firm using the fit approach. On the other hand, stretch means leveraging resources to take advantage of opportunities. Stretch is the riskier leveraging resources to take advantage of opportunities. Stretch is the riskier of the two approaches. Fit is necessary overall to ensure success but stretch of the two approaches. Fit is necessary overall to ensure success but stretch allows a firm to grow and better compete in the market place. Ultimately, allows a firm to grow and better compete in the market place. Ultimately, firms should strive to incorporate fit while considering stretch to take firms should strive to incorporate fit while considering stretch to take advantage of opportunities.

advantage of opportunities. 1

10088.. DDeessccriribbe te thhe e ccoommppoonneenntts s oof f a a ccoommppaannyy’’s s bbaassiis s HHR R aarrcchhiittececttuurree. (. (eaeassyy))

Answer: A company’s basic HR architecture is made up of three elements: HR Answer: A company’s basic HR architecture is made up of three elements: HR professionals, the HR system, and the employee behaviors and competencies professionals, the HR system, and the employee behaviors and competencies required for the company’s strategy. The HR professionals have the necessary required for the company’s strategy. The HR professionals have the necessary skills to build a strategy-oriented HR system. The HR system is made up of skills to build a strategy-oriented HR system. The HR system is made up of the HR policies and activities such as how the company recruits, selects, the HR policies and activities such as how the company recruits, selects, trains, and rewards employees.

trains, and rewards employees. 1

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system. (moderate)

Answer: A high-performance work system is what managers now expect from Answer: A high-performance work system is what managers now expect from the HR system. It means that the HR system is designed to maximize the

the HR system. It means that the HR system is designed to maximize the overall quality of human capital throughout the organization. Based on overall quality of human capital throughout the organization. Based on ongoing research, firms that use HPWS practices perform at a significantly ongoing research, firms that use HPWS practices perform at a significantly higher level than those that do not.

higher level than those that do not. 1

11100.. WWhhat at iis ts thhe He HR SR Sccoorreeccarard ad apppprrooaacchh? I? Iddeennttiiffy ty thhe se seevveen sn stteepps is in un ussiinng tg thhe He HR R Scorecard approach to create a strategy-oriented HR system. (moderate)

Scorecard approach to create a strategy-oriented HR system. (moderate) Answer:

Answer: The HR Scorecard is The HR Scorecard is a concise measurement system a concise measurement system that shows thethat shows the quantitative standards, or “metrics” the firm uses to measure HR activities, quantitative standards, or “metrics” the firm uses to measure HR activities, and to measure the employee behaviors resulting from these activities, and to and to measure the employee behaviors resulting from these activities, and to measure the strategically relevant organizational outcomes of those employee measure the strategically relevant organizational outcomes of those employee behaviors. The seven steps are as follows:

behaviors. The seven steps are as follows: Step 1:

Step 1: Define the Define the business sbusiness strategytrategy

Step 2: Outline the company’s value chain Step 2: Outline the company’s value chain

Step 3: Identify the strategically required organizational outcomes Step 3: Identify the strategically required organizational outcomes Step 4: Identify the required workforce competencies and behaviors Step 4: Identify the required workforce competencies and behaviors

Step 5: Identify the strategically relevant HR system policies and activities Step 5: Identify the strategically relevant HR system policies and activities Step 6: Design the HR Scorecard measurement system

Step 6: Design the HR Scorecard measurement system Step 7: Periodically evaluate the measurement system Step 7: Periodically evaluate the measurement system