ch2

What are the directional strategies that firms use to meet their objectives?

(1) Concentration strategy focus on what a company does best within its established markets. (2) Internal growth strategies focus on market development, product development, innovation, or joint ventures. (3). External growth strategies are used by companies that attempt to integrate horizontally or vertically or diversify. (4). Divestment strategies involve retrenchment, divestitures, or liquidation.

A _____ workforce describes the former workers to whom a firm still owes financial obligations. A. contingent B. consultant C. temporary D. legacy E. contract

A legacy workforce describes the former workers (i.e., those no longer working for the company) to whom the firm still owes financial obligations.

Employees in companies with a differentiation strategy need to be highly creative and cooperative, to have only a moderate concern for quantity, a long- term focus, and a tolerance for ambiguity and to be risk takers.

TRUE

Strategic management is a process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will increase the likelihood of achieving those goals.

TRUE

Untapped labor pools are an example of a strategic opportunity in an organization's operating environment.

TRUE

86. Which of the following is a strategy made up of retrenchment and liquidation? A. Divestment strategy B. Concentration strategy C. Internal growth strategy D. External growth strategy E. Diversification strategy

A "divestment'

A(n) _____ is a story of how a firm will create value for its customers and how it will do so profitably. A. design specification B. business model C. process model D. administrative linkage E. process architecture

A business model

78. A company engaged in differentiation strategy requires employees who: (p. 91) A. are highly creative and cooperative. B. have high concern for quantity. C. tend to be risk averse. D. have a short-term focus. E. prefer stable working environments.

A. are highly creative and cooperative.

Companies attempting to integrate vertically or horizontally or to diversify exhibit a(n) _____ strategy. A. external growth B. divestment C. concentration D. liquidation E. internal growth

A. external growth

Which is the lowest level of integration between the human resource management function and the strategic management function? A. Administrative linkage B. Two-way linkage C. Integrative linkage D. Central linkage E. One-way linkage

Administrative linkage is the lowest level of integration and in which the HRM function's attention is focused on day-to-day activities.

55. An organization's _____ is what it hopes to achieve in the medium- to long-term (p. 81) A. goal B. mission C. strategy D. vision E. value

An organization's goals are what it hopes to achieve in the medium- to long- term future

Strategies focusing on market development, product development, innovation, or joint ventures make up the _____ strategy. A. concentration B. internal growth C. divestment D. liquidation E. differentiation

B. internal growth

Explain the challenges for human resource management while downsizing.

Challenges : (1) It must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. (2) It must boost the morale of employees who remain after the reduction. (3) It must maintain open communication with remaining employees to build their trust and commitment.

42. (p. 75) _____ 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. A. Task designing B. Strategy implementation C. Administrative linking D. Selection and training E. Operational implementation

During strategy implementation, the organization follows through on the chosen strategy. 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.

59. External analysis and internal analysis combined constitute the _____. (p. 82) A. value analysis B. training analysis C. development analysis D. SWOT analysis E. recruitment analysis

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

Which of the following analyses gives the strategic planning team all the information it needs to generate a number of strategic alternatives? A. Selection analysis B. Training analysis C. SWOT analysis D. Development analysis E. Recruitment analysis

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

56. (p. 82) Which of the following examines the organization's operating environment to identify the strategic opportunities and threats? A. Job modeling B. Internal analysis C. External analysis D. Value chain analysis E. Job analysis

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

16. An overall cost leadership strategy is achieved by offering unique product

FALSE

Recruitment refers to the process by which an organization attempts to identify applicants with the necessary characteristics that will help the organization achieve its goals.

FALSE

Companies engaged in a cost strategy require employees to have moderateconcern for quantity and a long-term focus.

FALSE Companies engaged in a cost strategy require employees to have a high concern for quantity and a short-term focus, to be comfortable with stability, and to be risk averse. These employees are expected to exhibit role behaviors that are relatively repetitive and performed independently or autonomously.

18. Companies engaged in cost strategies develop internally consistent pay

FALSE Companies engaged in cost strategies promote internally and develop internally consistent pay systems with high pay differentials between superiors and subordinates.

35. _____ 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. A. Operational management B. Transactional management C. Management by objectives D. Process mapping E. Strategic management

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."

82. Which one of the following is an internal growth strategy? A. Market development B. Vertical integration C. Downsizing D. Emphasis on market share E. Diversification

Strategies focusing on 'market development, product development, innovation, or joint ventures make up the internal growth strategy.

5.One-way linkage precludes the company from considering human resource issues while formulating the strategic plan.

TRUE

Companies using concentration strategies attempt to focus on what they do best within their established markets.

TRUE

Strategic choice describes the way an organization attempts to fulfill its mission and achieve its long-term goals.

TRUE

List the five important variables that determine success in strategy implementation.

(1) organizational structure, (2) task design, (3) selection, training, & development of ppl, (4) reward systems, and (5) types of information.

Which of the following is an example of a physical resource that a company uses to compete with other companies? A. Controlling system B. Technology C. Planning system D. Employee skill E. Experience of employees

A company can use a number of resources to compete with other companies. These resources are physical (such as plant, equipment, technology, and geographic location), organizational (the structure, planning, controlling, and coordinating systems, and group relations), and human (the experience, skill, and intelligence of employees).

76. Companies engaged in a cost strategy require employees to _____. A. have a high concern for quantity B. have a long-term focus C. be comfortable in an unstable working environment D. be willing to take risks E. undertake challenging and non-repetitive work

Companies engaged in a cost strategy require employees to have a high concern for quantity and a short-term focus, to be comfortable with stability, and to be risk averse.

_____ involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of existing or new jobs. A. Training B. Development C. Performance management D. Selection E. Recruitment

Development involves acquiring knowledge, skills, and behavior that improve employees' ability to meet the challenges of a variety of existing jobs or jobs that do not yet exist.

39. During strategy formulation, the strategic planning groups _____. A. ensure that the firm has skilled employees in place B. structure the organization C. allocate resources to various tasks D. generate various strategic alternatives E. develop reward system that align employee behavior with the organization's goals

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.

63. The process of getting detailed information about jobs is known as: A. job designing. B. recruitment. C. selection. D. training. E. job analysis.

Job analysis is the process of getting detailed information about jobs.

Which of the following addresses what tasks should be grouped into a particular job? A. Job analysis B. Internal analysis C. External analysis D. Job design E. Recruitment

Job design addresses what tasks should be grouped into a particular job.

Explain the opportunities for human resource management while downsizing.

Opportunities provided by downsizing: (1). It allows the company to "get rid of dead wood" and make way for fresh ideas. (2). It provides a unique opportunity to change an organization's culture. (3) In firms characterized by antagonistic labor, downsizing can force parties to cooperate and to develop new, positive relationships. (4) It can demonstrate to top-management decision makers the value of the company's human resources to its ultimate success.

37. (p. 75) _____ is a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals. A. Human resource optimization B. Systemic talent management C. Strategic human resource management D. Transactional talent management E. Transactional human resource management

Strategic human resource management (SHRM) is a pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.

Training refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

TRUE

79. Companies engaged in differentiation strategy _____. A. provide narrow career paths to employees B. use a compensation system based on productivity alone C. seek to generate more creativity through broadly defined jobs D. recruit employees more from internal sources E. engage in extensive socialization of newcomers

Thus differentiation companies will seek to generate more creativity through broadly defined jobs with general job descriptions. They may recruit more from outside, engage in limited socialization of newcomers, and provide broader career paths.

The costs that change directly with the units produced are known as _____ costs. A. concrete B. sunk C. outlay D. variable E. fixed

Variable costs

What type of strategy attempts to expand a company's resources or to strengthen its market position through acquiring or creating new businesses? A. Internal growth strategy B. Retrenchment strategy C. External growth strategy D. Divestment strategy

an "external growth" strategy, usually through mergers or acquisitions.

Discuss the six important functional areas of human resource management?

job analysis/design, recruitment/selection, training and development, performance management, pay structure/incentives/benefits, and labor/employee relations.

A company where employees are in a constant state of assimilating knowledge through monitoring the environment, making decisions, and flexibly restructuring the company to compete in that environment is known as a(n) _____ organization. A. legacy B. learning C. downsized D. traditional E. transactional

learning

34. _____ is defined as the skillful employment and coordination of tactics. (p. 74) A. Strategy B. Human resource management C. Mission D. Internal analysis E. Business modeling

strategy

Cost leadership

strategy focuses on becoming the lowest cost producer in an industry. This is achieved by constructing efficient, large-scale facilities, by reducing costs through capitalizing on the experience curve, by controlling overhead expenses and costs in such areas as research and development, service, sales force, and advertising.

Differentiation companies will have compensation systems that are geared toward internal rather than external equity.

FALSE Differentiation will have compensation systems that are geared toward external equity, as it is heavily driven by recruiting needs.

9. Job analysis addresses what tasks should be grouped into a particular job.

FALSE Job analysis is the process of getting detailed information about jobs.

28. _____ costs are incurred regardless of the number of units produced. A. Acquisition B. Procurement C. Fixed D. Variable E. Marginal

Fixed costs

The difference between what a firm charges for a product and the variable costs of that product is known as: A. variance. B. overhead rate. C. holding cost. D. profit. E. margin.

Margins are the difference between what a firm charges for a product and the variable costs of that product. Margins are called contribution margins because they contribute to the firm's ability to cover its fixed costs.

32. _____ refers to what is left after a firm pays its variable costs and fixed costs. (p. 73) A. Contribution margin B. Overhead cost C. Profit D. Variance E. Holding cost

Profit

93. What are the three steps involved in two-way linkages?

Two-way linkage allows for consideration of human resource issues during the strategy formulation process. This integration occurs First, the strategic planning team informs the human resource management (HRM) function of the various strategies the company is considering. Then HRM executives analyze the human resource implications of the various strategies, presenting the results of this analysis to the strategic planning team. Finally, after the strategic decision has been made, the strategic plan is passed on to the HRM executive, who develops programs to implement it.

Strategies emphasizing market share or operating costs are considered _____ strategies. A. external growth B. divestment C. downsizing D. concentration E. internal growth

"concentration" strategies. "sticking to its knitting."

List the four levels of integration that exist between the human resource management function and the strategic management function.

(1) Administrative linkages, (2) one-way linkages, (3) two-way linkages, and (4) integrative linkages.

43. (p. 78) A firm's strategic management decision-making process usually takes place at its top levels, with a strategic planning group consisting of: A. middle managers and directors. B. the chief executive officer and supervisors. C. the chief executive officer and the president. D. accountants and supervisors. E. the directors and labor union representatives.

A firm's strategic management decision-making process usually takes place at its top levels, with a strategic planning group consisting of the chief executive officer, the chief financial officer, the president, and various vice presidents.

A high level of pay relative to that of competitors can ensure that _____. A. the company's overall labor costs are low. B. employees are highly satisfied with the work. C. the organization is always in the growth stage. D. organizational productivity is satisfactory. E. the company attracts high-quality employees.

A high level of pay 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. .

77. Companies engaged in a cost strategy _____. A. engage in limited socialization of newcomers B. tend to specifically define the skills they require C. tend to spend less time in training employees D. provide broad career paths to employees E. tend to recruit more people from outside

Companies engaged in cost strategies, because of the focus on efficient production, tend to specifically define the skills they require and invest in training employees in these skill areas.

Companies that are not diversified use quantitative measures of performance to evaluate managers.

FALSE Companies that are "steady state" (not diversified) tend to have evaluation systems that call for subjective performance assessments of managers. This stems from the fact that those above the first-level managers in the hierarchy have extensive knowledge about how the work should be performed.

What are the major components of the strategic management process are relevant to strategy formulation?

(1) Mission (2) Goals (3) External analysis: consists of examining the organization's operating environment to identify the strategic opportunities and threats. (4) Internal analysis: attempts to identify the organization's strengths and weaknesses. (5) Strategic choice: is the organization's strategy. It describes the ways the organization will attempt to fulfill its mission and achieve its long-term goals.

70. Which of the following is true regarding companies that are not diversified? A. Such companies use quantitative measures of performance to evaluate managers. B. In such companies, top-managers have less knowledge about managers below them in the hierarchy. C. In such companies. executives tend to focus on evaluating the objective performance results of their subordinate managers. D. They have evaluation systems that call for subjective performance assessments of managers. .

Companies that are "steady state" (not diversified) tend to have evaluation systems that call for subjective performance assessments of managers.

40. (p. 75) Terminal Inc. is a retail firm specializing in menswear. It plans to overtake its closest competitor within two years. It has decided to set up a store in Manhattan where it had no presence earlier. But, it realizes that NewBliss Inc. can give it a very good competition in the formal attire group for males between the ages of 25-35. Terminal Inc. is at the _____ phase. A. strategy implementation B. strategy formulation C. administrative linking D. selecting and training E. task designing

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.

During _____, 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. A. administrative linkage B. task design C. selecting and training D. strategy formulation E. strategy evaluation

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.

41. During strategy implementation, an organization: (p. 75) A. analyzes its strengths and weaknesses. B. generates various strategic alternatives. C. follows through on the chosen strategy. D. defines its mission and goals. E. identifies its opportunities and threats.

During strategy implementation, the organization follows through on the chosen strategy. 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.

Strategic planning groups decide on a strategic direction during the strategy implementation phase.

FALSE During strategy formulation the strategic planning groups decide on a strategic direction by defining the company's mission and goals. During strategy implementation, the organization follows through on the chosen strategy.

4. Strategy implementation includes defining a company's mission and goals.

FALSE During strategy implementation, the organization follows through on the chosen strategy. 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.

Internal analysis attempts to identify the organization's strategic opportunities and threats.

FALSE Internal analysis attempts to identify the organization's strengths and weaknesses. It focuses on the quantity and quality of resources available to the organization—financial, capital, technological, and human resources.

Executives who have extensive knowledge of the behaviors that lead to effective performance tend to focus on evaluating the objective performance results of their subordinate managers.

FALSE, use performance management systems that focus on the behaviors of their subordinate managers.

53. (p. 80) Mission, goals, external analysis, internal analysis, and strategic choices are the five major components of the strategic management process that are relevant to: A. recruitment. B. strategy formulation. C. selection. D. job designing. E. strategy implementation.

Five major components of the strategic management process (mission, goals, external analysis, internal analysis, and strategic choices) are relevant to strategy formulation.

74. Which of the following is true regarding differentiation strategy? A. Differentiation strategy cannot protect a company from price sensitivity. B. Brand images play a negligible role in differentiation strategies. C. Companies using this strategy have to build large-scale facilities. D. Companies have to control their overhead costs to use this strategy. E. If a company succeeds in this strategy, it achieves above-average returns.

If a company succeeds in differentiating its product, it will achieve above-average returns, and the differentiation may protect it from price sensitivity.

Which is the level of integration at which the human resource management engages in day-to-day activities unrelated to the company's core business needs? A. Administrative linkage B. One-way linkage C. Two-way linkage D. Integrative linkage E. Central linkage

In administrative linkage (the lowest level of integration), the HRM function's attention is focused on day-to-day activities. In such linkages, the HRM department simply engages in administrative work unrelated to the company's core business needs.

45. In administrative linkage: (p. 78) A. the human resource management function's attention is on day-to-day activities. B. the firm's strategists develop the strategic plan and then inform the human resource management function of the plan. C. the strategic planning team informs the human resource management function of the various strategies the company is considering. D. the human resource management functions are built right into the strategy formulation process. E. the human resource management executive gives strategic planners information about the company's human resource capabilities.

In administrative linkage (the lowest level of integration), the HRM function's attention is focused on day-to-day activities. The HRM executive has no time or opportunity to take a strategic outlook toward HRM issues.

52. (p. 80) Companies with _____ have their human resource management functions built right into the strategy formulation and implementation processes. A. integrative linkage B. administrative linkage C. one-way linkage D. two-way linkage E. executive linkage

In most cases the HRM executive is an integral member of the senior management team. Rather than an iterative process of information exchange companies with integrative linkage have their HRM functions built right into the strategy formulation and implementation processes.

Which of the following levels of integration often leads to strategic plans that the company cannot successfully implement? A. Collaborative linkage B. Integrative linkage C. Two-way linkage D. One-way linkage E. Congruent linkage

In one-way linkage, the firm's strategic business planning function develops the strategic plan and then informs the HRM function of the plan.

48. Which of the following is true of one-way linkage? (p. 79) A. The human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues. B. It precludes the company from considering human resource issues while formulating the strategic plan. C. The human resource management functions are built right into the strategy formulation process. D. The human resource management function is involved in both strategy formulation and strategy implementation. E. The human resource management executive gives strategic planners information about the company's human resource capabilities.

In one-way linkage, the firm's strategic business planning function develops the strategic plan and then informs the 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.

In _____, a firm's strategic business planning function develops the strategic plan and then informs the HRM function of the plan. A. integrative linkage B. central linkage C. two-way linkage D. one-way linkage E. administrative linkage

In one-way linkage, the firm's strategic business planning function develops the strategic plan and then informs the HRM function of the plan. Many believe this level of integration constitutes strategic HRM—that is, the role of the HRM function is to design systems and/or programs that implement the strategic plan.

58. (p. 82) _____ focuses on the quantity and quality of resources available to the organization. A. Job modeling B. External analysis C. Internal analysis D. Value chain analysis E. Job analysis

Internal analysis

Which of the following attempts to identify the organization's strengths and weaknesses? A. Job analysis B. Internal analysis C. External analysis D. Competitive analysis E. Job modeling

Internal analysis attempts to identify the organization's strengths and weaknesses. It focuses on the quantity and quality of resources available to the organization— financial, capital, technological, and human resources.

What are the human resource challenges faced by a firm adopting an internal growth strategy?

Internal growth strategies present unique staffing problems. Growth requires that companies constantly hire, transfer, and promote individuals, and expansion into different markets may change the necessary skills that prospective employees must have. In addition, appraisals often consist of a combination of behaviors and results. The behavioral appraisal emphasis stems from the knowledge of effective behaviors in a particular product market, and the results appraisals focus on achieving growth goals. Compensation packages are heavily weighted toward incentives for achieving growth goals. Training needs differ depending on the way the company attempts to grow internally. Joint ventures require extensive training in conflict resolution techniques because of the problems associated with combining people from two distinct organizational cultures.

Differentiation:

It attempts to create the impression that firm's products or services are different from 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.

When an organization develops integrated manufacturing systems such as advanced manufacturing technology and just-in-time inventory control, strategic human resource management has the responsibility of _____. A. assessing the employee skills required to run these systems B. inputting the necessary information to run these systems C. testing the functionalities of these systems D. testing these systems based on customer feedback E. documenting the use of these systems within the organization

Many firms have developed integrated manufacturing systems such as advanced manufacturing technology, just-in-time inventory control, and total quality management in an effort to increase their competitive position. However, these systems must be run by people. Strategic human resource management in these cases entails assessing the employee skills required to run these systems and engaging in HRM practices, such as selection and training, that develop these skills in employees.

_____ is used to ensure that employees' activities and outcomes are congruent with the organization's objectives. A. Divestment B. Differentiation C. Performance management D. Selection E. Recruitment

Performance management is used to ensure that employees' activities and outcomes are congruent with the organization's objectives.

_____ is the process through which the organization seeks applicants for potential employment. A. Selection B. Recruitment C. Training D. Development E. Appraisal

Recruitment is the process through which the organization seeks applicants for potential employment.

The process by which a firm attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the firm achieve its goals is known as _____. A. appraisal B. selection C. recruitment D. training E. differentiation

Selection

A learning organization constantly monitors its environment, assimilates information, makes decision, and flexibly restructures itself to compete in that environment.

TRUE A learning organization requires the company 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 learning capability have a competitive advantage.

75. Apple is known for using a unique operating system that integrates well with peripheral devices such as iPod and iPhone. What kind of a strategy is Apple using? A. Cost leadership B. Differentiation C. Disintermediation D. Penetration E. Centralization

The "differentiation" strategy

72. A company that follows an overall cost leadership strategy _____. A. focuses on becoming the lowest cost producer in an industry B. thrives to reduce the cost of products in its industry C. does not use automated procedures and systems D. thrives constantly to increase the quality of its products E. focuses on creating products that provide high value for its cost

The "overall cost leadership" strategy focuses on becoming the lowest cost producer in an industry.

62. The basic premise behind strategy implementation is that _____. (p. 83) A. boosting employee productivity is more important than effectiveness in production. B. short-term orientation is detrimental to an organization's economical success. C. external analysis and internal analysis should be performed during implementation. D. quality of resources is more important than the quantity of resources. E. the choice of organizational forms and structural forms make an economic difference.

The basic premise behind strategy implementation is that "an organization has a variety of structural forms and organizational processes to choose from when implementing a given strategy," and these choices make an economic difference.

31. _____ is calculated as the number of units sold times the contribution margin. A. Holding cost. B. Gross margin. C. Profit. D. Variance. E. Overhead rate.

The gross margin is the total amount of margin a firm makes and is calculated as the number of units sold times the contribution margin.

(p. 80- 81) _____ is a statement of the organization's reason for being that usually specifies the customers served, the needs satisfied and/or the values received by the customers, and the technology used. A. Work structure B. Goal C. Mission D. Strategy E. Value

The mission is a statement of the organization's reason for being

61. (p. 82) Which of the following describes the different ways the organization will attempt to fulfill its mission and achieve its long-term goals? A. Internal analysis B. External analysis C. Vision statement D. Strategic choice E. SWOT analysis

The strategic managers compare all possible alternatives' ability to attain the organization's strategic goals

A company that wants to become the lowest cost producer in an industry should _____. A. create a product that is different from other products in the market B. construct efficient large-scale facilities C. invest heavily in branding their product D. invest in creating a unique customer service process

This strategy is achieved by constructing efficient large-scale facilities, by reducing costs through capitalizing on the experience curve, and by controlling overhead costs and costs in such areas as research and development, service, sales force, and advertising.

91. To be maximally effective, the human resource management function must be integrally involved in the company's strategic management process. What can human resource managers do to achieve this?

To be maximally effective, the human resource management function must be integrally involved in the company's strategic management process. This means that human resource managers should: (1) have input into the strategic plan, both in terms of people-related issues and in terms of the ability of the human resource pool to implement particular strategic alternatives (2) have specific knowledge of the organization's strategic goals (3) know what types of employee skills, behaviors, and attitudes are needed to support the strategic plan and (4) develop programs to ensure that employees possess these skills, behaviors, and attitudes.

_____ refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees. A. Recruitment B. Development C. Training D. Performance management E. Selection

Training refers to a planned effort to facilitate the learning of job-related knowledge, skills, and behavior by employees.

51. Which of the following statements is true of two-way linkages? (p. 79) A. The strategic planning function and the HRM function are interdependent. B. It precludes the company from considering the human resource issues while formulating the strategic plan. C. The human resource management department simply engages in administrative work unrelated to the company's core business needs. D. The human resource function's attention is on day-to-day activities. E. The human resource management executive has no opportunity to take a strategic outlook toward human resource management issues.

Two-way linkage allows for consideration of human resource issues during the strategy formulation process. The strategic planning function and the HRM function are interdependent in two-way linkage.

50. (p. 79) _____ allows for consideration of human resource issues during the strategy formulation process. A. Administrative linkages B. One-way linkages C. Unidirectional linkages D. Top-to-bottom linkages E. Two-way linkages

Two-way linkage allows for consideration of human resource issues during the strategy formulation process. This integration occurs in three sequential steps.

89. Which of the following is true regarding intended and emergent strategies? A. The new focus on strategic human resource management has tended to focus primarily on emergent strategies. B. Intended strategies and emergent strategies are very similar to each other in the way they are developed. C. Intended strategies are the result of the rational decision-making process used by top managers as they develop a strategic plan.

c-Intended strategies are the result of the rational decision-making process used by top managers as they develop a strategic plan.