HR Chapter 3
What is the first step in the strategic management process
Asking "where are we now as a business?"
The concise measurement system used by companies to show the quantitative standards the firm uses to measure HR activities, employee behaviors resulting from the activities, and the strategically relevant organizational outcomes of those employee behaviors is called a(n)
HR Scorecard
Which of the following refers to an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions
HR audit
The ___ is a process for assigning financial and nonfinancial goals or metrics to the human resource management-related strategy-map chain of activities required for achieving the company's strategic aims
HR scorecard
HR audits typically review a firm's recruiting, testing, and training methods to ensure compliance with government and organization regulations.
True
Human resource practices, such as hiring based on selection tests, pay raises based on work performance, and training provided to new and experienced employees, contribute to a company's ability to achieve high-performance levels.
True
Managers engage in three levels of strategic planning
True
McDonald's addressed its lagging profitability by first closing stores operating below its guidelines. McDonald's used a consolidation strategy.
True
Steps in the basic management planning process include setting objectives, reviewing alternative courses of action, and evaluating which options are best.
True
When Apple opened its own Apple stores, this was an example of ___
Vertical integration
All of the following are steps involved in the strategic management process EXCEPT
offshoring low-skill jobs
Which of the following provides a summary of a firm's intended direction and shows, in broad terms, "what we want to become"?
vision statementxg
According to the text, approximately what percentage of the US workforce feels engaged?
30
___ is a strategic planning tool that shows how each department performance contributes to achieve he company's overall strategic goal
A strategy map
Which of the following is NOT part of the basic managerial planning
Building corporate hierarchies
What tool might be best used to assess recruitment effectiveness
Computerized applicant tracking systems
A company's ___ strategy identifies the portfolio of businesses that comprise a firm and the ways in which these businesses relate to each other
Corporate level
John wants his shoe store to adopt the strategy of having the lowest prices on shoes in town. John is adopting which competitive strategy?
Cost leadership
A firm's functional strategies identify the broad activities that each ___ will do in order to help the business accomplish its strategic goals
Department
Which of the following is a simple guide used to compile relevant information about a company's environment including economic, competitive, and political trends that may affect a firm?
Environmental scan worksheet
A mission statement is a general statement of a company's intended direction that evokes emotional feelings in the organization's members
False
A strategic audit would most likely NOT be used by an HR manager to assess a firm's procedures and practices in regards to employee benefits
False
A vertical integration strategy means that a form will expand by adding new product lines
False
Although applicant tracking systems typically increase overall recruiting costs, the benefits of hiring high-performing employees are worth the investment for most firms.
False
Benchmarking indicates the extent to which a firm's HR practices are helping to accomplish long-term strategic goals
False
Benchmarking involves analyzing the demographic make-up of an organization over a specific period to determine the overall diversity of the firm
False
Consolidation keeps the company's strategy up to date by assessing progress toward strategic goals and taking corrective action as needed.
False
Cost leadership, differentiation, and focus strategies are types of corporate-level strategies
False
Goals are initiated by the bottom level of an organization according to the hierarchy of goals approach to strategic planning
False
HR scorecards present managers with desktop graphs and charts of how a firm's HR strategies compare to those of other firms in the same industry.
False
High-performance companies are less likely than low-performance companies to invest in costly employee training programs.
False
Research suggests a majority of workers in the US are engaged at work
False
Companies like Ferrari are known as ___ because they carve out a market niche and compete by providing a product that customers can attain in no other way
Focusers
Which of the following is used to manage employee performance and to align all employees with the key objectives a firm needs to achieve its strategic goals
HR scorecard
Which of the following refers to a process for assigning financial and nonfinancial goals to the HR management-related chain of activities required for achieving the company's strategic aims and for monitoring results
HR scorecard
Which of the following terms refers t a set of human resource management policies and practies that promote organizational effectiveness
High-performance work system
Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation
Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs
Sweet Leaf Tea, a Texas- based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence. Which of the following, if true, best supports the argument that Sweet Leaf Tea should implement a corporate-level strategy of concentration?
Market data suggests that customers really only want the tea itself, not the related products
The ___ of the California Energy Commission indicates that the organization assesses and act through public and private partnerships to improve energy systems that promote a strong economy and a healthy environment
Mission statement
Human resource strategies are the ___ used to support a firm's strategic goals
Policies and practices
John wants to perform external and internal audits as part of the strategic management process. What is frequently used tool to organize relevant information on positive and negative aspects of the company and environment?
SWOT chart
___ defines the nature of the company's business in terms of how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position.
Strategic planning
Which of the following, if true, would most likely undermine the argument that Sweet Lead Tea should implement a corporate-level strategy of vertical integration?
Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.
___ involves setting objectives, making forecasts, reviewing alternative courses of action, evaluating options and implementing the plan
The management planning process
Which of the following is the final step in the strategic human resource management process
The manager asks" Specifically what recruitment, selection, training, and other HR policies and practices should we put in place so as to produce the required employee skills and behaviors?"
A business-level strategy is implemented by Pizza Hut, Domino's, Papa John's and Little Caesar's in their competition with each other for pizza customers
True
A construction firm that wants to compare its own HR-related metrics with those of other construction firms can use a benchmarking service provided by SHRM
True
A vision statement is a broader and more future-oriented than a mission statement
True
According to recent studies high-performance work organziations recruit more job candidates, use more selection tests, and spend many more hours training employees
True
Companies with empowered, highly trained, flexible workforces have a competitive advantage
True
Human resource audits and benchmarking are two critical tools used by managers who implement an evidence-based approach to human resource management
True
Human resource metrics are used to assess a firm's HR performance and to compare one firm's HR performance with that of another firm
True
Strategic human resource management means formulating and executing HR systems that produce the employee competencies and behaviors a firm needs to achieve its strategic aims
True
Strategic management focuses more on translating a mission into goals than on the functions of organizing, staffing, and controlling
True
Strategy is a course of action
True
Strategy maps help managers link the company's strategic plan with departmental activities
True
The specific human resource policies and practices used to support a firm's strategic goals are known as human resource strategies
True
MAX Computers manufactures affordable laptops and desktops at its factory in Arizona. MAX has experienced a moderate amount of financial success, but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market. The firm's greatest problems relate to its employees. Employee turnover is high-most employees at MAX leave within two years or less of being hired. In addition, the rate of productivity among employees is not as high as executives would like. The vice president of human resources is considering moving MAX towards a high-performance work system. Which of the following best supports the argument that MAX should move towards a high-performance work system?
Using advanced recruitment and hiring practices will allow MAX to improve employee productivity
All of the following are commonly addressed in an HR audit except
accounting expenses
Which of the following terms refers to the process of comparing and analyzing the practices of one firm with those of a high-performing company?
benchmarking
The sales director at WebMD is calculating annual sales revenue targets and the number of new medical-related content providers that the firm needs to maintain a competitive advantage. In which step of the strategic management process is the sales director involved?
choosing specific strategies or courses of action
High-performance work organizations are most likely characterized by all of the following except
commitment to high production rates
A company's ________ strategy identifies how to build and strengthen the business's long-term competitive position in the marketplace.
competitive
Which of the following statements refers to any factors that allow a company to differentiate its product or service from those of its competitors to increase market share
competitive advantage
An HR manager conducting an HR audit on compensation would most likely search for ___
compliance with state and federal laws
The 2008 announcement by Starbucks that it would be closing approximately 600 of its stores suggests that the firm was using a ___ strategy
consolidation
Executives at Hartford Clothing, a retail department store chain, want to find out what products their customers buy, when they purchase products, and what days of the week are most popular for shopping. Executives want to discover customer patterns and make predictions about their customers' buying habits. What would be the most effective tool for Hartford?
data mining system
The primary purpose of implementing high-performance practices such as recruiting, screening, and training is to
develop a trained, flexible, and self motivated workforce
A ___ presents a manager with desktop graphs and charts that illustrate where the company stands on metrics from the HR scorecard process
digital dashboard
John is a manager is looking at HR scorecard data through a ________, which presents the manager with desktop graphs and charts, showing a computerized picture of how the company is doing on all the metrics from the HR scorecard process.
digital dashboard
Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is pursuing which of the following strategies?
diversification
Which of the following is most likely a true statement about high-performance companies
employees receive extensive training
Critical human resource tasks during mergers and acquisitions include all of the following EXCEPT
enforcing current roles
Strategic management is best defined as the process of identifying and executing the organization's strategic plan by matching the company's capabilities with its
environmental demands
The use of human resource metrics is essential for ________.
evidence-based management
A diversification corporate strategy implies that a firm will ___
expand by adding new product lines
Which of the following is NOT one of the steps KIA UK used in their employee management strategy
focused on bonus-based compensation
Lauren is identifying what each department in her company must do to help the business accomplish its strategic goals. These are known as ________ strategies.
functional
Which of the following strategies identifies the broad activities that each department will pursue in order to help a business attain its competitive goals
functional
Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses validated selection tests when considering external hires. This most likely suggests the company is developing a ________.
high-performance work system
Which of the following questions is most relevant to MAX's decision to move toward a high-performance work system
how would the implementation of self-managing work teams affect employee morale and work standards at MAX
Which of the following terms refers to the quantitative measure of a human resource management yardstick such as employee turnover or qualified applicants per position
human resource metrics
The primary purpose of strategic human resource management is to
integrate a company's strategic plan with its human resource department
What is the primary reason that mergers and acquisitions fail
personnel
Which term indicates the course of action for getting from where you are to where you want to go
plan
Which of the following activities most likely indicates that a firm is implementing a vertical integration strategy?
producing raw materials
All of the following practices are most likely implemented by companies with high-performance work systems except
providing pay increases based on service years
What is the first step in the basic planning process
setting an objective
Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as ________.
strategic human resource management
What is a company's plan for how it will match ts internal strengths and weaknesses with external opportunities and threats to maintain a competitive advantage
strategic plan
In order to generate the desired workforce skill, competencies, behaviors that a firm needs to achieve its strategic goals, human resource management must first develop
strategic plans
A course of action that a firm can pursue to achieve its strategic aims is known as a
strategy
Which of the following is a strategic planning tool that offers an overview of how each department's performance contributes to achieving the company's overall strategic goals?
strategy map
Like the scientific method, evidence-based HR management should have all of the following characteristics EXCEPT ________.
subjectivity
Which term refers to software applications used to analyze and draw conclusions from HR data
talent analytics
Winchester Rugs operates a web site called www.buyrugsdirect.com, so Winchester Rugs is most likely using a strategy of ________. A) consolidation B) conglomerate diversification C) geographic expansion D) vertical integration E) horizontal integration
vertical integration
A company's business-level strategy identifies the ___
ways to strengthen a firm's long-term competitive position in the marketplace
Which of the following questions would LEAST likely be answered by the use of workforce analytics software
what hiring policies are standard in the industry
