Chapter 16: Strategically Managing the HRM Function

For an HRM function to become truly strategic in its orientation, it must A) not view itself as a separate business entity. B) base its strategies on serving external clients. C) focus on process-oriented rather than people-oriented concerns. D) adopt a customer-oriented approach. E) spend most of its time and efforts on transactional activities.

D) adopt a customer-oriented approach

Jamal examines data from pre- and postsurveys to see if the new training program has achieved the desired effect. He is using the ________ approach. A) people B) audit C) balance-sheet D) analytic E) outcome

D) analytic

Knowing the company's strategic plan and understanding the company's financial capabilities is part of the ________ competence required by HR professionals. A) professional-technical knowledge B) management of change processes C) integration D) business E) performance

D) business

Which HR strategy begins by identifying the major business needs and issues, considers how people fit in and what people outcomes are necessary, and builds HR systems focused on meeting those needs? A) HR-focused B) people-linked C) business-linked D) business-driven E) outcome-focused

D) business-driven

Examining the need to develop new technologies is part of A) identifying people issues. B) scanning the external environment. C) developing the HR strategy. D) identifying strategic business issues. E) communicating the HR strategy.

D) identifying strategic business issues.

Stefano is trying out a new process by testing it in a limited, controlled setting. This represents which step in reengineering? A) identifying the process B) understanding the process C) redesigning the process D) implementing the process E) auditing the process

D) implementing the process

Which of the following HRM activities adds the highest strategic value to a firm? A) benefits administration B) employee service C) training and recruitment D) knowledge management E) record keeping

D) knowledge management

Scott is the chief human resource officer (CHRO) of MarkIt Inc.. In performing the tasks of aligning the HR activities with the needs of the business, Scott is performing the role of a(n) A) workforce sensor. B) HR representative of the firm. C) strategic HR advisor for the board. D) leader of the HR function. E) talent architect of HR.

D) leader of the HR function.

Which of the following is not a function of business issues and outcomes? A) business-linked B) technology-linked C) business-driven D) people-linked E) outcome-focused

D) people-linked

What system provides employees with an equitable return for their investment of skills and effort? A) selection B) training and development C) performance management D) reward E) administrative

D) reward

Imagen Inc. has begun the reengineering process to check on the roll out of their new technology system. Where should they begin? A) interpreting the process B) auditing the process C) implementing the process D) redesigning the process E) identifying the process

E) identifying the process

Which of the following will help a line manager handle a customer satisfaction grievance? A) training B) succession planning C) equal employment opportunity D) employee appraisal and development E) labor relations

E) labor relations

Benjamin manages benefits for Sysco Systems. Although important, these ________ activities of HRM have the lowest strategic value in a firm. A) transcendental B) transnational C) transformational D) traditional E) transactional

E) transactional

Attempting to estimate the financial impact of substance abuse is an example of A) human resource accounting approach. B) transformational guidance. C) traditional HR. D) an employee assistance program. E) utility analysis.

E) utility analysis.

True or False: Lack of expertise among outsourced providers is a reason for declining levels of outsourcing in the last couple of years.

False

True or False: The human resource optimizing approach places a dollar value on human resources as if they were physical or financial resources.

False

Which of the following strategies includes activities such as selection and compensation? A) transcendental B) transpersonal C) transformational D) traditional E) transactional

D) traditional

Conrado uses information technology to deliver employee services, since he works in the A) field generalists' center. B) functional specialists' center. C) center for expertise. D) service center. E) labor relations center.

D) service center.

Which of the following roles of a chief human resource officer (CHRO) deals with identifying the morale or motivational issues with the employees? A) leader of the HR function B) representative of the firm C) strategic advisor D) workforce sensor E) talent architect

D) workforce sensor

Taylor begins with an assessment of HR, then identifies people outcomes, and finally translates his findings into business outcomes. He is using a(n) ________ function to do this work. A) business-linked B) HR-focused C) people-linked D) business-driven E) outcome-focused

A) business-linked

A ________ consists of functional specialists in the traditional areas of HRM such as recruitment and selection. A) center of expertise B) field generalist center C) service center D) transactional center E) business unit-wide center

A) center of expertise

Which of the following represents a traditional structure of HRM function? A) Directors Scott and Holly report to the VP of HRM. B) Matteo is a consultant in the development of systems. C) Hannah has a dual reporting relationship. D) Jazmyn leverages information technology. E) Abbe takes responsibility for helping line executives.

A) Directors Scott and Holly report to the VP of HRM.

Which of the following is true of field generalists within the recent generic HR structure? A) Frank is responsible for helping line executives strategically address people issues. B) Suzanne is responsible for the traditional areas of HR. C) Tonya is responsible for the transactional HR activities. D) Betinne acts as a consultant in the development of state-of-the-art HR systems. E) Warwick often leverages information technology to efficiently deliver employee services.

A) Frank is responsible for helping line executives strategically address people issues.

Ramone, an HR personnel at Spenser Inc., is a functional specialist dealing with compensation. He also works as a consultant in the development of systems and processes to be used at Spenser. If Spenser follows the recent generic structure of HRM function, Ramone is likely to be part of a A) center of expertise. B) field generalist center. C) service center. D) transactional center. E) business unit-wide center.

A) center of expertise.

Which of the following corresponds to the stage of understanding the process during reengineering? A) considering whether jobs can be combined B) developing models and choosing prototypes C) asking process owners to be part of the team D) including customers who see the outcome of the process as team members E) testing the process

A) considering whether jobs can be combined

________ are problem-solving systems, which usually include a "what if" feature that allows users to see how outcomes change when assumptions or data change. A) Relational databases B) Decision support systems C) Expert systems D) Client service systems E) Support networks

B) Decision support systems

________ can be used to review specific HRM practices such as work design or the performance management system. A) Transaction processing B) Reengineering C) Benchmarking D) Delayering E) Outsourcing

B) Reengineering

Alicia, an HR manager at WinCo., has been promoted as the chief human resource officer (CHRO). When she engages in discussions on the performance of members of the executive leadership team, she is playing the role of a A) representative of the firm. B) liaison to the board. C) leader of the HR function. D) strategic advisor. E) workforce sensor.

B) liaison to the board.

Diagnosing problems and evaluating results are part of the ________ competence required by HR professionals. A) professional-technical knowledge B) management of change processes C) integration D) business E) performance

B) management of change processes

In addition to structural arrangements, ________ enables the HRM function to more efficiently and effectively deliver HRM services. A) delayering B) process redesign C) outsourcing D) benchmarking E) new technology

B) process redesign

A review of critical work processes and redesign to make them more efficient and able to deliver higher quality are called A) transaction processing. B) reengineering. C) benchmarking. D) delayering. E) outsourcing

B) reengineering.

________ is a computer system incorporating the decision rules of people deemed to have specialized knowledge in a certain area. A) A relational database B) A decision support system C) An expert system D) A client service system E) A support network

C) An expert system

________ requires a generalist perspective, although specialist knowledge is necessary, in making decisions. A) Professional-technical knowledge B) Management of change processes C) Integration D) Business E) Performance

C) Integration

________ are designed to help managers solve problems. A) Relational databases B) Support networks C) Expert systems D) Client service systems E) Decision support systems

E) Decision support systems

True or False: "Business-linked" HR functions begin with identifying major people outcomes.

False

True or False: Activities focused on identifying workforce morale issues pertain to the role of a chief human resource officer (CHRO) being the leader of the HR function.

False

True or False: Applying new technology to an inefficient process will improve efficiency or effectiveness.

False

True or False: A new trend that is consistent with the total quality management philosophy is HR executives moving to a customer-oriented approach while implementing the function.

True

True or False: A payroll check is issued based on a payment voucher that is generated from the general accounting ledger.

True

True or False: E-HRM capabilities have allowed the focus of HRM functions to move from transactional to transformational concerns and activities.

True

Which of the following is human resource accounting likely to include? A) turnover costs B) absenteeism C) capitalization of salary D) the impact of positive employee attitude E) gains from selection programs

C) capitalization of salary

True or False: As part of the reengineering process, companies expand a redesigned process to the entire organization without testing it in a controlled setting.

False

Which of the following HRM activities adds the lowest strategic value to a firm? A) benefits administration B) performance management C) training and recruitment D) knowledge management E) management development

A) benefits administration

Victor heads a team within the HR department that is responsible for the traditional HRM activities. Which of the following activities is Mel likely to be overseeing? A) employee relations B) employee services C) record keeping D) benefits administration E) knowledge management

A) employee relations

The ________ is the role of a chief human resource officer (CHRO) that focuses on working with HR team members regarding the development, design, and delivery of HR services. A) leader of the HR function B) HR representative of the firm C) strategic HR advisor for the board D) workforce sensor E) talent architect of HR

A) leader of the HR function

Which of the following meet the needs of both the line managers and the employees by giving employees opportunities to ensure that they increase their human capital, thus providing increased value to the company? A) selection systems B) training and development systems C) management development systems D) reward systems E) administrative systems

B) training and development systems

________ show the types of information used within a business function and the association among the different types of information. A) Focus groups B) Scenario analyses C) Cost-benefit analyses D) Data-entity relationship diagrams E) Data-flow diagrams

D) Data-entity relationship diagrams

Which of the following is true about the reengineering process? A) Information technology applications are mandatory for process redesign. B) Reengineering cannot be used to review HRM department functions. C) Applying new technology to an inefficient process will improve effectiveness. D) Reengineering cannot be used to review a performance management system. E) Product or service cost will increase if new technology is applied to an inefficient process.

E) Product or service cost will increase if new technology is applied to an inefficient process.

The ________ approach to evaluating HR effectiveness uses key indicators and customer satisfaction measures. A) audit B) analytic C) transformational D) transactional E) traditional

A) audit

Which of the following stages involves identifying an increasing immigrant population in a basic HR strategy process? A) identifying people issues B) scanning the external environment C) developing the HR strategy D) identifying strategic business issues E) communicating the HR strategy

B) scanning the external environment

The first step in the basic process of HR strategy is to determine the trends or events that might impact the organization. We call this A) identifying people issues. B) scanning the external environment. C) developing the HR strategy. D) identifying strategic business issues. E) communicating the HR strategy.

B) scanning the external environment.

Pietro is examining the ratio of promotions to number of employees as he is preparing a report on A) training. B) succession planning. C) equal employment opportunities. D) employee appraisals and developments. E) compensations

B) succession planning.

Pension administration and payroll are most likely to be outsourced, since they are ________ activities. A) transformational B) transactional C) traditional D) training E) transcendental

B) transactional

Opa is collecting information on the importance and frequency of use for the new technology system. She has convened several focus groups and has used three surveys. Using the reengineering process, which step is she in? A) identifying the process B) understanding the process C) redesigning the process D) implementing the process E) auditing the process

B) understanding the process

Which of the following is true about the employees of the service center within the recent generic HR structure? A) They have dual reporting relationships to both the head of the line business and the head of HR. B) They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation. C) They consist of individuals who ensure that the transactional activities are delivered throughout the organization. D) They act as consultants in the development of state-of-the-art HR systems and processes for use in the organization. E) They focus on ensuring that the HRM systems enable the business to execute its strategy.

C) They consist of individuals who ensure that the transactional activities are delivered throughout the organization.

Which of the following corresponds to identifying the process stage of the reengineering process? A) considering whether jobs can be combined B) developing models and choosing prototypes C) asking process owners to be part of the team D) considering the exceptions to be dealt with E) considering if all the steps in the process are necessary

C) asking process owners to be part of the team

In strategically designed HR structures, ________ ensure that benefits administration and record keeping are delivered throughout the organization. A) the field staff B) service centers C) centers for expertise D) marketing departments E) management consultants

C) centers for expertise

Sukran works as chief human resource officer (CHRO) for a beauty products firm. When she takes up the function of performance and behavioral counseling, she is playing the role of a A) liaison to the board. B) talent architect. C) confidante. D) strategic advisor. E) representative of the firm.

C) confidante.

The ________ role of the chief human resource officer (CHRO) focuses on resolving interpersonal or political conflicts among team members. A) liaison to the board B) talent architect C) counselor D) strategic advisor E) representative of the firm

C) counselor

Redesigning the HRM process represents the ________ to improving HRM effectiveness, processes, and services. A) external approach B) technology strategy C) internal approach D) outsourcing perspective E) reshoring approach

C) internal approach

True or False: Employee relations is a nuts and bolts activity of HRM.

True

True or False: Field generalists help line executives, strategically address people issues, and ensure that the HRM systems are in place to enable the business to execute its strategy.

True

True or False: In a generic structure, the HRM function effectively consists of three divisions: the centers for expertise, the field generalists, and the service center.

True

True or False: The role of a talent architect of a chief human resource officer (CHRO) entails identifying present and future talent gaps.

True

Which of the following is true of the audit approach? A) It typically collects key indicators and customer satisfaction measures. B) It primarily deals with the determination of the dollar value of a function. C) It involves the use of statistics and finance and hence is more demanding than the analytic approach. D) It uses utility analysis to estimate the financial impact of employee behavior. E) It focuses on the processes involved in the HRM functional areas rather than the outcomes.

A) It typically collects key indicators and customer satisfaction measures.

Up-to-date knowledge on new selection techniques, performance appraisal methods, training programs, and incentive plans is part of the ________ competence required by HR professionals. A) professional-technical knowledge B) management of change processes C) integration D) business E) performance

A) professional-technical knowledge

Which of the following represents the role of a strategic advisor played by a chief human resource officer (CHRO)? A) sharing the people expertise as part of the decision-making process B) helping the executive team see the importance of talent C) identifying present and future talent gaps and coming to own the talent agenda D) meeting with direct reports to provide guidance and check on progress E) ensuring that the HR function aligns its activities toward the needs of the business

A) sharing the people expertise as part of the decision-making process

Technology has freed HR managers from day-to-day activities to focus more on ________ activities. A) transformational B) traditional C) transnational D) transactional E) transitional

A) transformational

In examining absenteeism, Sue Anne conducts a(n) ________ to estimate the financial impact. A) utility analysis B) valuation approach C) human resource accounting D) audit approach E) returns on employee investment

A) utility analysis

________ often leverage information technology to efficiently deliver employee services. A) The field staff B) Service centers C) Centers for expertise D) Marketing departments E) Management consultants

B) Service centers

The generic structure of HRM functions is likely to result in A) functional specialists being distracted by transactional activities. B) generalists focusing more on maintaining functional specializations. C) developing current functional skills without being distracted by transactional activities. D) nondual reporting relationships among field generalists and HRM/line heads. E) the responsibility of leveraging information technology shifting to functional specialists.

C) developing current functional skills without being distracted by transactional activities.

Since the HR strategy seeks to address business issues, involving ________ can increase the quality of information from which the HR strategy is created. A) competitors B) suppliers C) line executives D) shareholders E) customers

C) line executives

Viacom Corp. uses ________ for its computer chip process by sending it to India where it can get the product cheaper than using American labor. A) offshoring B) importing C) outsourcing D) reshoring E) exporting

C) outsourcing

A firm is most likely to outsource services when A) the cost of production is cheaper when done onshore. B) the labor costs are high in the country where the outsourcing partner is. C) the human capital is low in the country where the outsourcing partner is. D) the effectiveness of services produced internally is less than that produced offshore. E) the goods produced onshore are of better quality than those produced offshore.

D) the effectiveness of services produced internally is less than that produced offshore.

Which of the following is true about improving HRM effectiveness? A) Improvement often focuses on the effectiveness of each activity rather than on its efficiency. B) There is often a push to eliminate the transformational work to free up time for transactional work. C) Redesigning the structure focuses on information technology rather than reporting relationships. D) Ways to improve effectiveness should be identified much before the strategic direction is established. E) Focusing more on transformational work is likely to result in higher strategic value to the firm.

E) Focusing more on transformational work is likely to result in higher strategic value to the firm.

Which of the following represents the recent generic structure of HRM function? A) the VP of HRM reporting to the VP of finance and administration B) functions structured around labor relations C) functional directors reporting to the VP of HRM D) functions structured around staffing and appraisal E) HRM generalists with dual reporting relationships

E) HRM generalists with dual reporting relationships

________ HRM activities provide the greatest strategic value to a firm. A) Transmutation B) Administrative C) Traditional D) Transactional E) Transformational

E) Transformational

Per capita merit increases are a key indicator of the ________ function of HRM. A) training B) succession planning C) equal employment opportunity D) employee appraisal and development E) compensation

E) compensation

The first step toward customer orientation is A) identifying the needs of customers. B) identifying the HRM functions required for customer orientation. C) developing technologies that serve customers. D) creating strategies that serve customers. E) identifying the customers.

E) identifying the customers.

True or False: Because an outsourced provider is specialized, a main disadvantage is their inability to learn unique innovations from one company and transfer them to another company.

False

Zena works in the HR department at Tonsworth & Co. She is responsible for helping the line executives strategically address people issues. She has a dual reporting relationship with Martin, the head of HRM, and Lana, the head of the line business. Zena is likely to be A) part of the center of expertise. B) a field generalist. C) part of the service center. D) part of the transactional center. E) a functional specialist.

B) a field generalist.

New technologies are replacing human labor with equipment, information processing, or a combination of the two. This is known as A) an expert system. B) automation. C) decision point. D) a client service system. E) a support network.

B) automation.

Nami, an HR executive, is responsible for the transactional HRM activities at Donnelly Inc. If he is the sole HR person handling transactional HR activities, which of the following is most likely his responsibility? A) selection B) employee services C) recruitment D) performance management E) knowledge management

B) employee services

Faruk works at Bellate Co. He is responsible for conducting cost-benefit analyses of different functions performed at Bellate. If Faruk's current task is to conduct a utility analysis, which of the following factors is he likely to asses through it? A) capitalization of salary B) gains from selection programs C) returns on human assets D) net present value of expected wage payments E) level of job satisfaction among senior employees

B) gains from selection programs

The ________ approach attempts to place a dollar value on human resources as if they were physical resources. A) performance management B) human resource accounting C) knowledge management D) utility analysis E) audit

B) human resource accounting

Which of the following roles of a chief human resource officer (CHRO) entails discussions on executive compensation and CEO performance? A) leader of the HR function B) liaison to the board C) strategic advisor D) workforce sensor E) talent architect

B) liaison to the board

The audit approach to evaluating the effectiveness of HR practices focuses on A) using analytical data to increase organizational effectiveness. B) estimating the costs and benefits resulting from an HR practice. C) reviewing the various outcomes of the HR functional area. D) determining the dollar value of a program. E) using utility analysis to estimate the financial impact of employee behavior.

C) reviewing the various outcomes of the HR functional area.

Analyzing data redundancy, special cases, and exceptions is part of ________ the process during reengineering. A) identifying B) redesigning C) understanding D) implementing E) testing

C) understanding

When Goodyear examined the HR functions, they discovered that ________ functions articulated that people outcomes stem from an analysis of what their functions do. A) business-linked B) technology-linked C) business-driven D) HR-focused E) outcome-focused

D) HR-focused

Which of the following is true of cost-benefit analysis? A) It evaluates the design of data structure and content. B) It is a review of how soon the system of software application will become outdated. C) It shows the flow of data between departments. D) It compares the expense of completing a task with and without an automated system. E) It evaluates the frequency and criticality of automating specific tasks within a functional area.

D) It compares the expense of completing a task with and without an automated system.