Chapter 2—Formulating and Implementing HRM Strategies

MULTIPLE CHOICE

1.	 Which of the following are important elements of an organization’s external environment:
a.	Economic landscape	
b.	Political landscape	
c.	Socio-cultural landscape	
d.	Demographic landscape	
e.	All of the above	

ANS:	E	PTS:	1	DIF:	E	REF:	p.41
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Environmental Influence
TOP:	The Importance of Formulating and Implementing HRM Strategy

2. 	Which of the following is NOT a specific element of an organization’s internal environment:
a.	technology	
b.	company culture	
c.	business strategy	
d.	unions	
e.	None of the above	

ANS:	D	PTS:	1	DIF:	E	REF:	p.41-42
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Environmental Influence
		TOP:  The Importance of Formulating and Implementing HRM Strategy

3. Which of the following is expected to learn to use advanced HRIS technologies and apply them to gain competitive advantage:
a.	top management	
b.	middle management	
c.	line managers	
d.	HR professionals	
e.	employees	

ANS:	D	PTS:	1	DIF:	M	REF:	p.43
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Environmental Influence
TOP:	The HR Triad	

4. 	Anticipated changes in the U.S. labor in the next 20 years include:
a.	slowed growth	
b.	a decrease in skills availability	
c.	changing ethnic composition	
d.	changing age composition	
e.	all of the above	

ANS:	E	PTS:	1	DIF:	M	REF:	p.46
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Environmental Influence	
TOP:	Understanding the External Environment

5. 	Which of the following statements BEST describes the global labor market?
a.	Demographic factors need to be considered when looking at the global labor market.	
b.	Most U.S. companies find that there is no better work force anywhere in the world than they can find at home.	
c.	The global work force is not as well educated as the U.S. workforce.	
d.	Employers find few, if any, college educated students in developing countries.	
e.	All of the above statements describing the global labor market are true.	

ANS:	A	PTS:	1	DIF:	M	REF:	p.46-48
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Environmental Influence	
TOP:	Understanding the External Environment

6. Although pork is becoming an increasingly popular meat, most people don't realize that pork meat is tough. Pork processors can tenderize the meat, but there is a problem with testing for tenderness. One international meat processing firm has tasked a group with finding an inexpensive method of testing tenderness. The project has been assigned to the firm’s employees in Brazil, Canada, Germany, and the U.S. These people communicate via computers. This group will not work together once they find a solution. This is an example of:
a.	autonomous technology	
b.	a strategic alliance	
c.	an interconnected network	
d.	a virtual workforce (team)	
e.	job rotation	

ANS:	D	PTS:	1	DIF:	M	REF:	p.49-50
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Group Dynamics
TOP:	Understanding the Internal Environment

7.	 The employees of a national media, advertising, and publicity firm could be described as a virtual workforce because:
a.	they have the ability to communicate using e-mail with all other employees.	
b.	they use a type of groupware commonly used in their industry.	
c.	they work at home without managerial supervision.	
d.	so few employees are needed.	
e.	they are geographically dispersed yet able to work in electronically connected teams.	

ANS:	E	PTS:	1	DIF:	E	REF:	p.49-50
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Group Dynamics
       TOP:	Understanding the Internal Environment

8.	 Certain businesses are much more adept at taking full advantage of computer technology. Which of the following businesses would you expect to be the most adept at using computer technologies?
a.	day-care center	
b.	landscaping service	
c.	janitorial service	
d.	pet boarding kennel	
e.	medical services	

ANS:	E	PTS:	1	DIF:	M	REF:	p.49-50
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Operations Management
TOP:	Understanding the Internal Environment

9.	 What was central to implementing YRC’s customer-focused strategy?
a.	a merger with another firm	
b.	sophisticated technologies	
c.	the decision to globalize	
d.	a change in the economy	
e.	none of the above	

ANS:	B	PTS:	1	DIF:	E	REF:	p.54
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: Strategy
TOP:	Understanding the Internal Environment

	
10.	 Which of the following statements about the use of computers at the New Balance athletic shoe factory in Maine is true?
a.	A sophisticated computer running 20 sewing machine heads can make a shoe in 24 minutes whereas traditional sewing equipment would have taken 3 hours.	
b.	Production rates are expected to decrease unless New Balance can find enough domestic workers 	
c.	Originally, New Balance used computer technology purely for record keeping.	
d.	It is easy to predict how computer technology will impact New Balance employees.	
e.	New Balance will never be able to use expert computer systems because the shoe industry is so labor intensive and low tech.	

ANS:	A	PTS:	1	DIF:	C	REF:	p.49
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Operations Management	
TOP:	Understanding the Internal Environment

11.	 Which of the following statements about a human resource information system (HRIS) is true?
a.	Allow employees to access general information (e.g., policies, procedures, company events) using a company intranet.	
b.	Allow employees and managers to enter performance data, display and analyze it for trends over time, and use the data as input for both the employee’s personal development plan and the organization’s longer-term workforce and succession planning.	
c.	Make it easy to communicate a company’s values and strategy to all employees, regardless of their location.	
d.	Make it easy for firms to design and implement HR policies and practices that are common across different cultures.	
e.	All of the above statements are true.	

ANS:	E	PTS:	1	DIF:	M	REF:	p.50
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Information Technologies	
TOP:	Understanding the Internal Environment

12. A human resource information system (HRIS):
a.	is used to gather, analyze, and distribute information about the people in an organization	
b.	contains information about the organizations' internal and external environments	
c.	is used to keep current with the needs of the organizations' stakeholders	
d.	provides information about competitors’ HR practices	
e.	checks to see if environmental practices are in line with federal government regulations	

ANS:	A	PTS:	1	DIF:	E	REF:	p.50
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Information Technologies
TOP:	Understanding the Internal Environment

13. Electronic human resource management (e-HRM):
a.	is useful for connecting employees who might otherwise never meet each other	
b.	helps organizations develop a strategy for how to use social networking technologies to improve employee performance and satisfaction	
c.	refers to the use of IT for conducting HRM activities and for social networking among employees	
d.	appeals to Millennial employees.	
e.	All of these are 	

ANS:	E	PTS:	1	DIF:	E	REF:	p.50-51
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Communication
		TOP:  Understanding the Internal Environment

	

14. 	Going from most specific to least specific, which of the following orderings best describes company leadership?
a.	Vision, mission, values	
b.	Mission, values, vision	
c.	Mission, vision, values	
d.	Values, mission, vision	
e.	Values, vision, mission	

ANS:	D	PTS:	1	DIF:	M	REF:	p.53
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Strategy	
TOP:	Understanding the Internal Environment	

15. 	Company subcultures:
a.	are common in international firms	
b.	are likely to disappear after a merger or acquisition	
c.	seldom emerge among employees in different divisions, occupations, or demographic groups	
d.	cannot peacefully coexist with the overall company culture	
e.	all of the above 	

ANS:	A	PTS:	1	DIF:	M	REF:	p.53-54
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: Group Dynamics
TOP:	Understanding the Internal Environment	

16. 	P&G operates many different divisions to sell its various consumer brands. Jif peanut butter is one of the many products made by P&G. Imagine that P&G decided that Jif peanut butter should be the peanut butter served in 80% of the school districts in the Southeastern U.S. by the end of 2019. For P&G this would be an example of a(n):
a.	corporate strategy	
b.	operational goal	
c.	tactical goal	
d.	business strategy	
e.	functional strategy	

ANS:	D	PTS:	1	DIF:	M	REF:	p.55-56
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Strategy	
TOP:	Understanding the Internal Environment	

17.	 A Virginia-based manufacturer of engine parts decided it wanted to compete on quality. It will want to adopt all of the following practices EXCEPT:
a.	Total Quality Management (TQM)	
b.	ISO 9000 certification	
c.	Six Sigma procedures	
d.	MNC Quality Classification	
e.	All of these can be adopted	

ANS:	D	PTS:	1	DIF:	M	REF:	p.55
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Strategy	
		TOP:	Understanding the Internal Environment

18.	 _____________ alignment exists when the HRM system fits with all other elements of the organizational environment—the culture, strategy, technology, and so on.
a.	Bi-polar	
b.	Longitudinal	
c.	Horizontal	
d.	Equatorial	
e.	Vertical	

ANS:	E	PTS:	1	DIF:	E	REF:	p.57
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Strategy	
TOP:	HRM Strategies

19.	 _____________ alignment exists when all of the HR policies and practices that comprise the HRM system are consistent with each other and so present a coherent message to employees concerning how they should behave while at work.

a.	Bi-polar	
b.	Longitudinal	
c.	Horizontal	
d.	Parallel	
e.	Vertical	

ANS:	C	PTS:	1	DIF:	E	REF:	p.57
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Strategy	
TOP:	HRM Strategies

20.	 Human resource (HR) ___________ are used to assess progress against HR objectives.
a.	metrics	
b.	forecasts	
c.	goals	
d.	models	
e.	projections	

ANS:	A	PTS:	1	DIF:	M	REF:	p.62
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	HR Planning Activities

21.	 Which of the following would not be a relevant HR metric for a retail appliance store customer service operations?
a.	On-time arrival of the installation technician at the customer’s address	
b.	Prior notification of the customer of technician’s arrival	
c.	Number of installations completed by a technician within eight hours	
d.	Level of customer satisfaction with technician’s professionalism while onsite	
e.	Distance from customer’s address to nearest competing retail store 	

ANS:	E	PTS:	1	DIF:	M	REF:	p.62-63
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	HRM Strategy Formulation

22.	 The best HR metrics:
a.	are accepted by managers as legitimate	
b.	are relatively easy to use	
c.	have an obvious connection to the stated business and HR objectives	
d.	all of the above	
e.	only a and c are correct	

ANS:	D	PTS:	1	DIF:	M	REF:	p.62
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	HRM Strategy Formulation	

23.	 A manufacturing company has implemented an across-the-board cost-cutting strategy. The company's goal is to reduce expenses by 10 percent without sacrificing product quality. The decision was made by the company's top management without input from its employees. How are its employees likely to show their resistance to the organizational change?
a.	insincere agreement	
b.	in-your-face defiance	
c.	sabotage	
d.	malicious compliance	
e.	all of the above	

ANS:	E	PTS:	1	DIF:	E	REF:	p.64
OBJ:	Application	NAT:	AACSB: Analytic | AACSB: Group Dynamics
TOP:	HRM Strategy Implemention

24.	 Which of the following is a reasonable HR metric for a bread bakery to use in evaluating the performance of its bakers?
a.	the cost of the ingredients in a single loaf of bread	
b.	the average number of loaves of bread one baker can produce in a standard eight-hour shift	
c.	the degree of customer satisfaction with the cleanliness of the bakery	
d.	the number of types of bread the bakery produces	
e.	the average number of customers the bakery serves on Saturday mornings	

ANS:	B	PTS:	1	DIF:	M	REF:	p.62
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	HRM Strategy Formulation

	
25.	 During the last phase of planned organizational change,
a.	a human resource information system can be very helpful in collecting and disseminating information	
b.	create short-term wins	
c.	pause to reflect on process	
d.	monitor measures of progress	
e.	all of the above occur	

ANS:	E	PTS:	1	DIF:	M	REF:	p.67
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Information Technologies	
TOP:	HRM Strategy Formulation

	26. What is a major HR reason for the failure of many mergers and acquisitions?
a.	government involvement	
b.	differences in corporate culture	
c.	competitive reaction	
d.	unpredictability of external environment	
e.	economic shortcomings	

ANS:	B	PTS:	1	DIF:	M	REF:	p.70
OBJ:	Comprehensive  NAT:  AACSB: Analytic | AACSB: HRM
TOP:	Current Issues		

27 .	Research on integration following M&As shows that the HR implications 
a.	are vitally important in addressing the concerns of external stakeholders	
b.	are centered on combining job analysis systems	
c.	should not be treated as an afterthought	
d.	have a carryover effect on human resource assessment	
e.	can impede additional human resource planning	

ANS:	C	PTS:	1	DIF:	M	REF:	p.70
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	Current Issues

TRUE/FALSE

1.	The internal environment refers to conditions within the organization itself.

ANS:	T	PTS:	1	DIF:	E	REF:	p.41
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Environmental Influence
TOP:	The Importance of Formulating and Implementing HRM Strategies

	2.	Components of the external environment are highly interdependent, while components of the internal environment are highly independent.

ANS:	F	PTS:	1	DIF:	M	REF:	p.41-42
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Environmental Influence	
TOP:	The Importance of Formulating and Implementing HRM Strategies

	3.	Among NGOs concerns are labor issues.

ANS:	T	PTS:	1	DIF:	E	REF:	p.48
OBJ:	Definition	NAT:	AACSB: Analytic | AACSB: Ethical Responsibilities
TOP:	Understanding the External Environment

	4.	It is believed that the U.S. labor market will experience a dramatic change over the next 20 years due to the rapid decline of its multigenerational workplace.

ANS:	F	PTS:	1	DIF:	M	REF:	p.46
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Environmental Influence	
TOP:	Understanding the External Environment

	5.	Immigrant workers are more likely to be employed in professional specialty occupations and are underrepresented in occupations that do not require a high school education.

ANS:	F	PTS:	1	DIF:	M	REF:	p.46
OBJ:	Comprehensive		
NAT:	AACSB: Analytic | AACSB: Environmental Influence	
TOP:	Understanding the External Environment

	6.	Reasons that explain why people resist organizational planned change include fear, misunderstanding and cynicism.

ANS:	T	PTS:	1	DIF:	M	REF:	p.64
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: Individual Dynamics
TOP:	HRM Strategy Implementation

	7.	Incorporating evaluation of change into the strategic plan for organizational change insures that the process will be self-correcting.

ANS:	T	PTS:	1	DIF:	M	REF:	p.67
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	HRM Strategy Implementation

	8.	Baby boomers constitute the bulk of most company workforces at all levels.

ANS:	T	PTS:	1	DIF:	M	REF:	p.69
OBJ:	Comprehensive		NAT:	AACSB: Analytic | AACSB: HRM
TOP:	Current Issues

SHORT ANSWER

	1.	List the three members of the HR triad.

ANS:	
Line managers, HR professionals, and all other employees

PTS:	1	DIF:	E	REF:	p.42-43	OBJ:	Definition
NAT:	AACSB: Reflective Thinking | AACSB: Group Dynamics		
TOP:	The HR Triad		

	2.	Why do U.S. companies actively recruit and hire so many foreign employees?

ANS:	
There is a lack of skilled labor in the U.S.

PTS:	1	DIF:	E	REF:	p.46	OBJ:	Comprehensive
NAT:	AACSB: Reflective Thinking | AACSB: HRM	
TOP:	Understanding the External Environment

	3.	What is the commonly accepted definition of technology?

ANS:	
The process of making and using tools and equipment plus the knowledge used in this process

PTS:	1	DIF:	E	REF:	p.49	OBJ:	Definition
NAT:	AACSB: Reflective Thinking | AACSB: Information Technologies
TOP:	Understanding the Internal Environment

	4.	What is a human resource information system (HRIS)?

ANS:	
When computer technologies are used to gather, analyze, and distribute information about job applicants and employees, the resulting system is referred to as a human resource information  system (HRIS).

PTS:	1	DIF:	E	REF:	p.50	OBJ:	Definition
NAT:	AACSB: Reflective Thinking | AACSB: Information Technologies
TOP:	Understanding the Internal Environment

ESSAY

	1.	What are the causes of the skills shortage in the domestic workforce that is expected to plague U.S. employers in the new economy?

ANS:	
The slow growth of the domestic labor market means that many employers cannot find enough workers with the needed high-tech skills. Enrollments in college science and engineering programs have been dropping steadily during the past two decades. American students rank low on math and science and are just average in reading, raising questions about the quality of the education that they are receiving. The retirement of the Baby Boomers is another reason that many companies face looming skills shortages, and the loss of experiential expertise and institutional knowledge.

PTS:	1	DIF:	C	REF:	p.46-47	OBJ:	Comprehensive
NAT:	AACSB: Reflective Thinking | AACSB: HRM	
TOP:	Understanding the External Environment

	2.	Discuss the virtual workforce.

ANS:	
The virtual workforce questions the concept that people who work together need to be together. In order to use the ideas and skills of a geographically dispersed workforce, companies are using electronically connected teams that will work together for as long as needed. Computer technology has made this virtual workforce a reality.

PTS:	1	DIF:	M	REF:	p.49-50	OBJ:	Comprehensive
NAT:	AACSB: Reflective Thinking | AACSB: Group Dynamics		
TOP:	Understanding the External Environment

	3.	What are the drawbacks to adopting virtual workforce arrangements?

ANS:	
Employees working under such arrangements may feel isolated and detached from their employer. If their actions are closely monitored electronically, their morale may suffer. If they have not been properly trained in the use of IT, their insensitive electronic interactions with others may create misunderstandings or resentment among coworkers or even clients.

PTS:	1	DIF:	M	REF:	p.49-50	OBJ:	Comprehensive
NAT:	AACSB: Reflective Thinking | AACSB: Group Dynamics		
TOP:	Understanding the External Environment

	4.	Why are HR policies and practices important in the development of company cultures?

ANS:	
HR policies and practices contribute to the development of a strong company culture when they are aligned with and support a firm’s strategic direction. Human resource professionals help organizations build strong cultures by developing HR policies to ensure that everyone behaves in ways that are consistent with the corporate vision, mission, and values.

PTS:	1	DIF:	M	REF:	p.51-52	OBJ:	Comprehensive
NAT:	AACSB: Reflective Thinking | AACSB: Group Dynamics		
TOP:	Understanding the Internal Environment

5.	  What are the implications for HR practices for holding people accountable for achieving the objectives of a change?

ANS:	
Typically, accountability translates into new approaches to awarding incentive pay and bonuses. Depending on the nature of the strategic objectives and whether they are qualitatively different from those of the past, new performance management practices may be required. Procedures for deciding on future promotions may also be affected.

PTS:	1	DIF:	C	REF:	p.65	OBJ:	Comprehensive
NAT:	AACSB: Analytic | AACSB: Strategy		
TOP:	Implementing HR Action Plans and Facilitating Change