CHAPTER 3: ENVIRONMENTAL
INFLUENCES ON HRM EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
Which stage in the analysis of the external environment might be described as the attempt to
identify early signals of change and trends in the environment?
a) Assessing
b) Monitoring
c) Scanning
d) Forecasting - ANS c) Scanning
In the future, it is predicted that one in five Ontarians will have a disability as the population
ages. Which stage in the environmental scanning process does this information apply to?
a) Monitoring
b) Forecasting
c) Assessing
d) Scanning - ANS b) Forecasting
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, According to the chapter-opening vignette, why did General Motors (GM) file for bankruptcy in
2008?
a) Decreasing Japanese imports
b) Issues out of GM's control
c) The business cycle
d) Myopic views and lack of environmental scanning - ANS d) Myopic views and lack of
environmental scanning
When using competitive intelligence to obtain information about competitors, which two
evaluation questions must be asked?
a) How accurate is the information, and can we exploit it for our own use?
b) Is the source reliable, and what is the likelihood of the information being correct?
c) Is the information valid, and is it reliable?
d) How relevant is the information, and can we reproduce it for our business purposes? -
ANS b) Is the source reliable, and what is the likelihood of the information being correct?
In order to have good information, HR professionals must be able to distinguish critical
information from insignificant trends. The textbook gives four criteria to accomplish this. Which
is the first criteria?
a) Quality
b) Ripple effects
c) Regression
d) Scanning - ANS b) Ripple effect
The text refers to four criteria used for identifying significant trends. Which of these criteria
involves identifying the number of people affected by the trend?
a) Impact scope
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
INFLUENCES ON HRM EXAM
QUESTIONS AND ANSWERS GRADED A+
2026
Which stage in the analysis of the external environment might be described as the attempt to
identify early signals of change and trends in the environment?
a) Assessing
b) Monitoring
c) Scanning
d) Forecasting - ANS c) Scanning
In the future, it is predicted that one in five Ontarians will have a disability as the population
ages. Which stage in the environmental scanning process does this information apply to?
a) Monitoring
b) Forecasting
c) Assessing
d) Scanning - ANS b) Forecasting
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
1
, According to the chapter-opening vignette, why did General Motors (GM) file for bankruptcy in
2008?
a) Decreasing Japanese imports
b) Issues out of GM's control
c) The business cycle
d) Myopic views and lack of environmental scanning - ANS d) Myopic views and lack of
environmental scanning
When using competitive intelligence to obtain information about competitors, which two
evaluation questions must be asked?
a) How accurate is the information, and can we exploit it for our own use?
b) Is the source reliable, and what is the likelihood of the information being correct?
c) Is the information valid, and is it reliable?
d) How relevant is the information, and can we reproduce it for our business purposes? -
ANS b) Is the source reliable, and what is the likelihood of the information being correct?
In order to have good information, HR professionals must be able to distinguish critical
information from insignificant trends. The textbook gives four criteria to accomplish this. Which
is the first criteria?
a) Quality
b) Ripple effects
c) Regression
d) Scanning - ANS b) Ripple effect
The text refers to four criteria used for identifying significant trends. Which of these criteria
involves identifying the number of people affected by the trend?
a) Impact scope
@COPYRIGHT 2026/2027 ALL RIGHTS RESERVED
2
