2:1 People: HR Strategic Planning Quiz
A small publishing firm feels they are too small to benefit from strategic planning. Which short-term benefit is the best choice for HR to influencing leaders to begin the strategic planning process? Identify conflicts of interest Allocate resources more effectively Improve employee satisfaction and morale Increase corporate social responsibility
Allocate resources more effectively The strongest reason for senior management to engage in the strategic planning process is a more focused allocation of resources and potentially increased profitability. Strategy does not necessarily result in increased engagement or corporate social responsibility.
How does benchmarking improve the creation of an organizational strategy? Eliminates reliance on financial measures Allows for an understanding of best practices Focuses on cost control rather than value creation Not applicable due to cultural variations
Allows for an understanding of best practices Benchmarks are aspirational in that they are intended to improve performance. They must, therefore, be based on best practices drawn from the activities and achievements of organizations. Performance can be affected by culture. Even statistics can be culturally biased. For example, in some cultures statistics such as health-care cost per employee or employee tenure may not be meaningful. Benchmarks often address values, such as customer service, ethical behavior, or quality. They are goals and do not replace financial measures, which provide valuable snapshots of performance.
Which organization is least likely to succeed in its strategic planning and management? An organization that researches internal and external factors before setting a strategy An organization that shares strategic plans with top management only to preserve its competitive edge An organization that invites input from all divisions, managers, and employees to ensure buy-in An organization that develops business and functional strategies after the organizational strategy is defined to ensure alignment
An organization that shares strategic plans with top management only to preserve its competitive edge The only poor strategic planning practice here is to communicate strategic plans within just a small leadership group. The organization will benefit from having all employees understand how their work relates to and supports the strategy.
In the kaizen methodology, how does one know where to best make improvements? By tracking goals using tangible data and baselines By observing what is happening at all levels to find where value is added By continuously attempting to reduce waste to zero By teaching teams the systems and tools needed to achieve attainable goals Previous Question Next Question Review
By observing what is happening at all levels to find where value is added Under the "Go to Gemba" principle, understanding what is happening at all levels at an organization means that one can find and focus on the places where actions are actually taken that produce value.
Which type of information might be discovered during the external portion of an environmental scan? Turnover cost Unethical practices Profit margins Competitive threats
Competitive threats An environmental scan identifies and interprets data external and internal to the organization. Competitive threats are an example of a factor in the organization's external environment. The remaining factors affect the performance of the organization but are part of its internal environment.
Strategic management refers to the actions that leaders take to move their organization toward strategic goals and create value for stakeholders. Which benefit of strategic management is likely? Systems thinking Consistent decision making Focus on core competencies Decreased use of resources
Consistent decision making When managers are mindful of the organization's strategic goals, management decisions throughout the organization will be more consistent, with each manager assessing his or her alternatives against the same set of goals and objectives. Systems thinking and a focus on core competencies are critical in strategic planning-in determining what the organization will work toward and how its parts will work together. Strategic management encourages less waste, but this does not mean the organization will use fewer resources.
Which example of an economic factor should be included in an environmental scan? Proposed energy consumption regulations Consumer price index data Changes in workplace design and practices Geographic population shifts
Consumer price index data Consumer price index data is an example of an important economic factor that should be included in an environmental scan. It is an indication of economic health, signaling inflationary and deflationary forces and possible changes in consumer spending habits. Regulatory changes represent a political factor, which may or may not have economic implications. Similarly, geographic shifts in population are social changes that may or may not affect the organization's workforce. Changes in workplace design and practices, such as telecommuting or the growth of mobile computing, could be social or technological.
An international discount supermarket chain's competitive strategy is to provide the lowest-price products by minimizing operational overhead. Which generic competitive strategy is it using? Differentiation Focus Cost leadership Value chain
Cost leadership To achieve cost leadership, an organization must be the low-cost producer in its industry. Sources of cost advantage vary depending on the industry; it may originate from economies of scale, proprietary technology, preferential access to raw materials, or reduced costs in advertising and research, among other factors. Successful low-cost producers use all sources of cost advantage.
Which three generic strategies for success are identified in Michael Porter's model? Introduction, maturity, decline Customer intimacy, innovation, control Cost leadership, differentiation, focus Divisional, functional, matrix
Cost leadership, differentiation, focus According to Michael Porter, there are three potentially successful generic strategies: cost leadership, differentiation, and focus.
A project manager must form a cross-departmental team to implement a new program. Which steps should be taken first to ensure that the project is completed on time and in scope? Select team members, review qualifications, gain corporate support, and evaluate performance to date. Gain stakeholder support, secure project funding, develop use case analysis, and communicate results. Measure performance, communicate roadblocks, reset project schedule, and request additional support. Define tasks, communicate expectations, assign tasks, and monitor progress.
Define tasks, communicate expectations, assign tasks, and monitor progress. Defining tasks, communicating expectations, assigning tasks, and monitoring progress are the first steps in the project management process. The other answer choices are incorrect because the steps listed within them occur either before the task force is assembled or after the initial launch of the project.
What guidance from HR is useful to an organization that has decided to pursue a greenfield operation? Demographic characteristics of the new location Recommendations for organizational alliances to pursue Best practices for implementing a greenfield operation Data regarding the skill sets that exist in the new operation
Demographic characteristics of the new location The demographics in the location is useful information when an organization has decided to build from the ground up. A new staff will be required, and tapping into the local market will be necessary. Data about current skill sets is not applicable in a greenfield operation, as this strategy requires building from the ground up. There is no existing workforce. While recommendations about talent management concerns are helpful with any growth strategy an organization may decide to use, the selection of companies to pursue for an alliance is not within the purview of HR. In addition, a greenfield operation does not involve alliances or partnerships with other organizations. Best practices regarding how to implement a greenfield operation are not the responsibility of the HR department.
Which is an example of an internal factor considered in an environmental scan? Labor market Competitors Employee skills Currency fluctuations
Employee skills All the factors except employee skills are external factors. Employee skills are internal to the organization.
How should an HR leader best address HR as a cost center? Reduce HR fixed costs while maintaining control over variable costs Ensure that HR services are aligned to the organizational strategy Increase HR operational efficiency in recruitment and retention Charge other core business functions for HR services
Ensure that HR services are aligned to the organizational strategy The best response to this perception is to demonstrate the strategic value of HR services such as recruiting and onboarding. Increasing efficiency and decreasing costs will not change the organization's financial structure. Charging for HR services is a management decision.
Which activity is critical to ensure that strategy is implemented effectively? Feedback on strategic initiatives is obtained on a regular basis from all parts of the organization. The executive sponsor conducts a web conference to show leadership support. The timeline of the strategic objectives is communicated broadly. A project manager is assigned to develop a formal communication plan.
Feedback on strategic initiatives is obtained on a regular basis from all parts of the organization. Effective strategic implementation requires two-way communication: communication of the strategic objectives and plans to the organization and feedback from the organization to those plans. The communication plan for strategic initiatives should include ongoing opportunities for feedback. This enhances understanding and improvement of the strategy.
At what stage of the strategic planning process is a SWOT analysis performed? Implementation Formulation Revision Development
Formulation The strengths, weaknesses, opportunities, and threats (SWOT) analysis is done during the strategy formulation stage to test the advisability of different potential strategies.
What term refers to a company building a new global location from the ground up? Brownfield operation Greenfield operation Turnkey operation Internal expansion
Greenfield operation A new facility may be constructed on what was once a "green field." A new global location built from the ground up is often referred to as a greenfield operation.
After a company lays off 40% of its workforce, organizational output decreases by 20%. In order to better understand these changes, the HR director tasks the HR manager with improving the employee attitude survey response rate by 15% in the next quarter. What should the HR manager do first? Offer a group bonus to all employees if a target response rate on the survey is reached. Request that the CEO send a memo to all staff explaining the reason for the layoffs. Identify the survey response rates before the layoff to note any trends. Conduct a focus group to determine why people are not responding to the survey.
Identify the survey response rates before the layoff to note any trends. Response rates need to be compared before any further action should be taken. Offering group bonus incentives, forming a focus group, and having the CEO send a memo should occur after the response rates have been compared.
During which stage of strategic planning do managers develop action plans and assign projects? Formulation Manipulation Implementation Evaluation
Implementation During the strategy implementation phase of strategic planning, the plan is put into action. Managers develop action plans and allocate resources toward achieving organizational objectives.
During what phase of the strategic planning process does motivating employees to work toward organizational goals take place? Development Evaluation Implementation Formulation
Implementation Implementation reflects the process of strategic management. This requires clear communication of objectives to teams, coordination and support of their efforts, and control of resources.
What type of business problem is solved most appropriately by using Six Sigma tools? Minimizing inventories and redundancies Improving quality Speeding up processes Improving work flows
Improving quality Quality issues can be solved by using Six Sigma tools. Six Sigma is a strategy that identifies and removes the causes of defects and errors in manufacturing and business processes. Other business problems that can be solved by using Six Sigma include too much variation, challenging root cause identifications, numerous technical considerations, and other complex issues. Lean Six Sigma is a strategy that eliminates waste and improves process flows.
Which is the primary advantage of using a balanced scorecard approach to measure organizational performance? It does not require a financial perspective. It takes less time and effort to gather critical data. It allows organizations to assess intangibles. It requires the involvement of the entire organization.
It allows organizations to assess intangibles. A balanced scorecard approach focuses on finance, customers, internal processes, and learning and growth. Therefore, it goes beyond a traditional financial approach to managing the organization. It takes into consideration such intangibles as whether a business process has been improved or employees have learned new skills. It can be used in a single department or throughout the organization.
Why is it important that employees understand how day-to-day activities support the strategic goals of the organization? It drives employee behavior, as the connection to how they are able to contribute is evident. It provides a flow of information to all employees and teams within the organization. Employees will then accept the strategic goals of the organization as their own. The daily activities for all functions across the organization can then be prioritized.
It drives employee behavior, as the connection to how they are able to contribute is evident. Employees are more motivated and driven to perform when they understand how the work they do supports the organization's strategy. This is one of five elements needed for the effective implementation of strategy.
Which characteristic is associated with the Six Sigma project management approach? It measures value and uses evidence-based analysis. Several versions of the deliverable may be developed. Resources are allocated and carefully monitored. Limited resources are assigned to overlapping tasks.
It measures value and uses evidence-based analysis. The Six Sigma approach to project management is focused on measuring the return of value that allows empirical analysis to inform decision making. Limited resources assigned to overlapping tasks is more associated with the critical chain project management approach, as resources are not increased to meet deadlines. The critical chain approach best accounts for dependencies when there are limited resources. Carefully allocating and monitoring resources is a characteristic of any approach that is taken to project management. There is no specific emphasis on this important aspect of project management in the Six Sigma approach. Having several versions of the deliverable is associated with the agile approach to project management. Iterations are continuously improved.
Which is the most low-risk strategy for global market expansion? Licensing Internal expansion Acquisition Merger
Licensing Licensing does not take a large initial investment or major organizational commitment. It is, therefore, a relatively low-risk way to expand globally.
What is an example of an external factor that is considered in a SWOT analysis? Local legal policies Strategy Company culture Organizational structure
Local legal policies Local legal policies exist outside an organization and are an external factor. The other factors are internal.
Which specific and measurable strategic aspect serves as the basis for implementation decisions? Strategic goals Objectives Mission statement Value statement
Objectives Objectives tie to strategic goals, which in turn relate to the mission statement. Objectives are the most specific and measurable of the strategic statements.
Which part of a SWOT analysis reflects the external environment? Strengths and threats Strengths and weaknesses Weaknesses and opportunities Opportunities and threats
Opportunities and threats Opportunities and threats pertain to the external environment. An opportunity might be the possibility of opening up a new market, while a threat could be encountering a new competitor.
An organization is looking for ways to reduce costs and increase performance in its automotive parts manufacturing division and is considering staff reduction as an option. Which key performance indicators should be compared to determine the impact of staff reduction? Past production vs. projected future production Employee production rate vs. employee turnover rate Division head count vs. total company head count Product cost vs. revenue generation
Past production vs. projected future production Comparing past production to future production measures performance based on different time periods. Comparisons of the employee production rate vs. the employee turnover rate and of the product cost vs. revenue generation do not measure or place a value on performance. Division head count vs. total company head count does not value performance or address cost.
An executive team in the middle of refining an organization's strategic plan is in the implementation phase. Which activity should occur during this phase? Organize ideas and useful perspectives to inform planning Provide clear communication of objectives to teams and coordinating their efforts Analyze information to determine current position, opportunities, and constraints Determine the strategy's effectiveness and identifying the need for change or improvement
Provide clear communication of objectives to teams and coordinating their efforts Providing clear communication and coordinating the teams' efforts describes the movement and management of tactics, and it occurs in the implementation phase of strategic planning. Organizing ideas and useful perspectives to inform planning, while possibly helpful, is not a strategic planning and management task. Analyzing information to determine current position, opportunities, and constraints occurs during the formulation phase, and determining the strategy's effectiveness occurs during evaluation.
Which is a primary advantage of the balanced scorecard? Separate business strategy from day-to-day activities Focus on financial measurements and hard data results Relate the performance of business functions to the organization's mission Track progress against goals without raising accountability issues
Relate the performance of business functions to the organization's mission The balanced scorecard links business strategies with day-to-day activities and aligns business function measurements with organizational strategies. As a result, an organization can track progress, reinforce accountability, and prioritize improvement opportunities. The scorecard includes four related perspectives (finance, customers, internal business processes, and learning and growth) rather than just a financial perspective.
Which is the difference between a strategic alliance and a joint venture? Strategic alliances create new economic entities; joint ventures create new individual entities. Strategic alliances do not involve equity; joint ventures require that both partners contribute equity. Strategic alliances are informal agreements; joint ventures are contractual agreements. Strategic alliances take longer to create; joint ventures generally happen quickly.
Strategic alliances do not involve equity; joint ventures require that both partners contribute equity. A strategic alliance is a formal agreement between two or more companies to collaborate and contribute resources but not equity. Strategic alliances create synergy based on the partners' strengths and technical capabilities. A joint venture is an agreement between two or more parties to create a new economic entity. Both partners contribute equity and share in revenues, expenses, and control.
A new CEO is selected to lead an organization that has grown over time but has not reviewed its staffing structure or responded to industry changes and trends. What may be hindering the organizational strategy? Strategic drift Organizational alignment Organizational transition Strategic stagnation
Strategic drift Strategic drift occurs when an organization fails to recognize and respond to changes in its environment (such as a stagnant organizational culture) that necessitate strategic change.
A three-year-old company has achieved excellent results through perceptive market timing and aggressive marketing. Which type of strategy is the company following? Strong corporate culture strategy Successful differentiation strategy Efficient cost advantage strategy Effective organizational structure
Successful differentiation strategy Differentiation strategies focus on setting a product or service apart from its competition by giving it unique characteristics that consumers value. Differentiation comes from a variety of factors, including product/service features, marketing approach, and delivery system.
Why is it important to involve stakeholders at various points in a project? They can sabotage the project team's efforts via pivots in expected outcome. They are important in winning and keeping management support for the project. They can increase acceptance of the project's eventual outcome. They contribute budget and deserve to be included in communications.
They can increase acceptance of the project's eventual outcome. The best answer is that stakeholder involvement can improve and increase acceptance of the project's outcome. Stakeholders do not always contribute to budget or have access to management. They can be users rather than influencers or funders.
How is a growth-share matrix used in a large organization? To monitor growth in each business line to develop a year-over-year comparison To analyze the concept of systems thinking across the organization To provide an overview of internal strengths and opportunities To understand the competitive position and value of each sector of the business
To understand the competitive position and value of each sector of the business The growth-share matrix is used in large organizations to assess what type of value their divisions, investments, or products produce. The vertical axis measures the rate of growth, and the horizontal axis measures the market share or competitive position in the market.
A service organization determines that it has limited international experience and knowledge, and this is preventing it from delivering services to those in need on a global basis. What does this exemplify? Weakness Environmental factor Opportunity Social factor
Weakness This is an example of an internal problem or weakness. In a SWOT analysis, strengths and weaknesses reflect the internal environment of the organization and opportunities and threats pertain to the external environment.
