Chapter 02
Strategic Human Resource Management
True / False Questions
1. The goal of strategic management in an organization is to deploy and allocate resources
in a way that it provides the company with a competitive advantage.
True False
2. To be maximally effective, the human resource management function of a company must
be isolated from the company's strategic management process.
True False
3. Strategic planning groups decide on a strategic direction during the strategy
implementation phase.
True False
4. Strategy implementation includes structuring an organization and allocating resources.
True False
5. In a two-way linkage, an organization is restricted from considering the human resource
issues while formulating their strategic plan.
True False
6. Untapped labor pools are an example of a strategic threat to an organization's operating
environment.
True False
7. External analysis attempts to identify an organization's strategic opportunities and
threats.
True False
8. Strategic choice describes the way an organization attempts to fulfill its mission and
achieve its long-term goals.
True False
9. Job design addresses what tasks should be grouped into a particular job.
True False
,10. The strategy a company is pursuing does not have an impact on the types of employees
that it seeks to recruit and select.
True False
11. Training refers to a planned effort to facilitate the learning of job-related knowledge,
skills, and behavior by employees.
True False
12. Companies that are not diversified use objective measures of performance to evaluate
managers.
True False
13. 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.
True False
14. By tying pay to performance, a company can elicit specific activities and levels of
performance from employees.
True False
15. Concentration strategies require that an organization bring radical change to the current
skills that exist in the organization.
True False
16. An overall cost leadership strategy is achieved primarily by offering unique product
features.
True False
17. Companies engaged in a cost strategy require employees to have reduced concern for
quantity and a short-term focus.
True False
18. Companies engaged in cost strategies develop internally consistent pay systems with
negligible pay differentials between superiors and subordinates.
True False
19. Employees in companies with a differentiation strategy need to have only a moderate
concern for quantity.
True False
20. Differentiation companies will have compensation systems that are geared toward
internal rather than external equity.
True False
,21. Strategies emphasizing market share or operating costs are called "external growth"
strategies.
True False
22. Companies using concentration strategies attempt to focus on what they do best within
their established markets.
True False
23. Downsizing gives an organization the opportunity to change its culture.
True False
24. Companies going through downsizing often develop compensation programs that tie an
individual's compensation to the company's success.
True False
25. A learning organization constantly monitors its environment, assimilates information,
makes decision, and flexibly restructures itself to compete in an ever-changing
environment.
True False
Multiple Choice Questions
26. Which of the following is a physical resource that a company uses to compete with other
companies?
A. Controlling
system
B. Technolog
y
C. Planning
system
D. Employee
skill
E. Experience of
employees
, 27. A(n) _____ typically charts how a firm will create value for customers and how it will do so
profitably.
A. design
specification
B. business
model
C. job characteristics
model
D. administrative
linkage
E. process
architecture
28. _____ costs are incurred regardless of the number of units produced.
A. Acquisitio
n
B. Procureme
nt
C. Fixe
d
D. Variabl
e
E. Margin
al
29. Which of the following statements is true of variable costs incurred by firms?
A. These costs are independent of the number of goods produced
by firms.
B. The rent and interest paid by firms are examples of
variable costs.
C. These costs are the difference between what firms charge for their products and the
fixed costs of the product.
D. These costs change directly with the units
produced.
E. These costs refer to the total amount of margin made
by a firm.
Strategic Human Resource Management
True / False Questions
1. The goal of strategic management in an organization is to deploy and allocate resources
in a way that it provides the company with a competitive advantage.
True False
2. To be maximally effective, the human resource management function of a company must
be isolated from the company's strategic management process.
True False
3. Strategic planning groups decide on a strategic direction during the strategy
implementation phase.
True False
4. Strategy implementation includes structuring an organization and allocating resources.
True False
5. In a two-way linkage, an organization is restricted from considering the human resource
issues while formulating their strategic plan.
True False
6. Untapped labor pools are an example of a strategic threat to an organization's operating
environment.
True False
7. External analysis attempts to identify an organization's strategic opportunities and
threats.
True False
8. Strategic choice describes the way an organization attempts to fulfill its mission and
achieve its long-term goals.
True False
9. Job design addresses what tasks should be grouped into a particular job.
True False
,10. The strategy a company is pursuing does not have an impact on the types of employees
that it seeks to recruit and select.
True False
11. Training refers to a planned effort to facilitate the learning of job-related knowledge,
skills, and behavior by employees.
True False
12. Companies that are not diversified use objective measures of performance to evaluate
managers.
True False
13. 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.
True False
14. By tying pay to performance, a company can elicit specific activities and levels of
performance from employees.
True False
15. Concentration strategies require that an organization bring radical change to the current
skills that exist in the organization.
True False
16. An overall cost leadership strategy is achieved primarily by offering unique product
features.
True False
17. Companies engaged in a cost strategy require employees to have reduced concern for
quantity and a short-term focus.
True False
18. Companies engaged in cost strategies develop internally consistent pay systems with
negligible pay differentials between superiors and subordinates.
True False
19. Employees in companies with a differentiation strategy need to have only a moderate
concern for quantity.
True False
20. Differentiation companies will have compensation systems that are geared toward
internal rather than external equity.
True False
,21. Strategies emphasizing market share or operating costs are called "external growth"
strategies.
True False
22. Companies using concentration strategies attempt to focus on what they do best within
their established markets.
True False
23. Downsizing gives an organization the opportunity to change its culture.
True False
24. Companies going through downsizing often develop compensation programs that tie an
individual's compensation to the company's success.
True False
25. A learning organization constantly monitors its environment, assimilates information,
makes decision, and flexibly restructures itself to compete in an ever-changing
environment.
True False
Multiple Choice Questions
26. Which of the following is a physical resource that a company uses to compete with other
companies?
A. Controlling
system
B. Technolog
y
C. Planning
system
D. Employee
skill
E. Experience of
employees
, 27. A(n) _____ typically charts how a firm will create value for customers and how it will do so
profitably.
A. design
specification
B. business
model
C. job characteristics
model
D. administrative
linkage
E. process
architecture
28. _____ costs are incurred regardless of the number of units produced.
A. Acquisitio
n
B. Procureme
nt
C. Fixe
d
D. Variabl
e
E. Margin
al
29. Which of the following statements is true of variable costs incurred by firms?
A. These costs are independent of the number of goods produced
by firms.
B. The rent and interest paid by firms are examples of
variable costs.
C. These costs are the difference between what firms charge for their products and the
fixed costs of the product.
D. These costs change directly with the units
produced.
E. These costs refer to the total amount of margin made
by a firm.
