MIE CH 2: Strategic human resources management

At least annually, companies evaluate employees based on their activities and outcomes aligned with the organization's objectives. This then leads to discussions of future individual goals and professional development opportunities. This practice demonstrates that a company has a practice of

performance management. Explanation Performance management is used to ensure that employees' activities and outcomes are congruent with the organization's objectives. It entails specifying those activities and outcomes that will result in the organization successfully implementing the strategy.

Jodannis Inc. is an online retailer of home and garden products, including furniture and accessories. The company is known for its unique approach to customer support, which is known for going above and beyond in satisfying customer complaints and issues. What kind of a strategy is Jodannis using?

Differentiation Explanation The "differentiation" strategy attempts to create the impression that a company's product or service is different from that of others in the industry. The perceived differentiation can come from creating a brand image, from technology, from offering unique features, or from unique customer service.

Which of the following is a challenge of downsizing?

It is difficult to boost the morale of employees who remain after downsizing. Explanation One of the human resource management challenges of downsizing is to boost the morale of employees who remain after the reduction. Survivors may feel guilt over keeping their jobs when their friends have been laid off, or they may envy their friends who have retired with attractive severance and pension benefits.

A company where employees constantly assimilate knowledge through monitoring the environment, making decisions, and flexibly restructuring the company to compete in that environment is known as a ________ organization.

Learning Explanation Learning organizations are required to be in a constant state of learning through monitoring the environment, assimilating information, making decisions, and flexibly restructuring to compete in that environment. Companies that develop such a learning capability have a competitive advantage.

External analysis and internal analysis combined constitute the

SWOT analysis Explanation External analysis and internal analysis combined constitute what has come to be called the SWOT (strengths, weaknesses, opportunities, threats) analysis. After going through SWOT analysis, the strategic planning team has all the information it needs to generate a number of strategic alternatives.

Which of the following is true of one-way linkage?

This level often leads to strategic plans that the company cannot successfully implement. Explanation In one-way linkage, a firm's strategic business planning function develops the strategic plan and then informs the human resource management (HRM) function of the plan. Although one-way linkage does recognize the importance of human resources in implementing the strategic plan, it precludes the company from considering human resource issues while formulating the strategic plan. This level of integration often leads to strategic plans that the company cannot successfully implement.This level often leads to strategic plans that the company cannot successfully implement.

______ is a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees

Training Explanation A number of skills are instilled in employees through training and development. Training is a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

Which of the following is the lowest level of integration between the human resource management function and the strategic management function?

administrative linkage Explanation Administrative linkage is the lowest level of integration in which the human resource management function's attention is focused on day-to-day activities.

A(n) ________ is a story of how a firm will create value for customers and how it will do so profitably.

business model Explanation A business model is a story of how a firm will create value for customers and, more important, how it will do so profitably.

Strategies emphasizing market share or operating costs are considered ________ strategies.

concentration Explanation Strategies emphasizing market share or operating costs are considered "concentration" strategies. With this type of strategy, a company attempts to focus on what it does best within its established markets and can be thought of as "sticking to its knitting."

During the strategic implementation stage of the strategic management process, an organization

ensures that it has skilled employees in place. Explanation During strategy implementation, an organization follows through on a strategy chosen in the strategy formulation stage. This consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals.

Rovers & Steinfeld is a consulting firm that helps organizations examine their operating environments. Their scope of work would be considered a(n)

external analysis Explanation External analysis consists of examining an organization's operating environment to identify its strategic opportunities and threats. An example of an opportunity is a customer market that is not being served. An example of a threat is a potential labor shortage.

Saunders Supplies has recently acquired Dish & Co. and TableTop. Since they all are similar in market share, Saunders Supplies is planning to rebrand Dish & Co. to be a meal delivery company and TableTop to be a tableware and linen company. This is an example of which strategy?

external growth strategy Explanation Companies attempting to integrate vertically or horizontally or to diversify are exhibiting an "external growth" strategy, usually through mergers or acquisitions. This strategy attempts to expand a company's resources or to strengthen its market position through acquiring or creating new businesses.

Sandra retired from a large, multinational paper company last year. She receives health care benefits as well as a pension from the company. At present, Sandra falls under the category of a

legacy workforce Explanation A legacy workforce describes the former workers (i.e., those no longer working for the company) to whom the firm still owes financial obligations. In this scenario, Sandra is a former employee to whom the multinational automobile corporation still owes financial obligations.

Javier, an HR manager at a technology firm, is entrusted with the task of hiring a member for a new team. He has already received information about what the new role will entail as well as the tasks that the new employee will be performing. He is currently using several media to seek applicants for the role. Which of the following human resource management (HRM) practices is Javier performing?

recruitment Explanation Recruitment is the process through which an organization seeks applicants for potential employment. In this scenario, Javier is seeking applicants for the new role that constitutes the recruitment process of HRM practice.

The ________ process helps a firm to identify job applicants with the necessary knowledge, skills, abilities, and other characteristics to help the firm achieve its goals.

selection Explanation Selection is the process by which a firm attempts to identify job applicants with the necessary knowledge, skills, abilities, and other characteristics that will help it achieve its goals. The strategy a firm is pursuing has a direct impact on the types of employees it seeks to recruit and select.

Marius has been brought in as a consultant for a large organization. He is tasked with identifying the goals, policies, and action sequences the company should take to offset competitive challenges. Marius will be implementing

strategic management Explanation Strategic management is a process, an approach to addressing the competitive challenges an organization faces. It can be thought of as managing the "pattern or plan that integrates an organization's major goals, policies, and action sequences into a cohesive whole."

Tamara is leading the strategic groups through an exercise to define the company's mission and goals through a SWOT (strengths, weaknesses, opportunities, and threats) analysis. She is employing

strategy formulation Explanation During strategy formulation, the strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses. They then generate various strategic alternatives and compare those alternatives' ability to achieve the company's mission and goals.

The ________ component of the strategic management process consists of structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the organization's strategic goals.

strategy implementation

Bebor Financial offers a high level of pay relative to that of competitors. This can ensure that

the company attracts high-quality employees. Explanation A high level of pay and/or benefits relative to that of competitors can ensure that the company attracts and retains high-quality employees, but this might have a negative impact on the company's overall labor costs. By tying pay to performance, the company can elicit specific activities and levels of performance from employees.