Managing Human Resources, 7e (Gmez-Meja / Balkin / Cardy) Chapter 1 Meeting Present and Emerging trategi! "#man $es%#r!

e Challenges 1) As the director of HR, you are in a meeting with your corporate officers discussing the firm's deliberate use of personnel to gain a competitive edge in the marketplace. ou are most likely discussing! A) human resource policies. ") corporate ob#ectives. $) human resource strategies. %) line employees. Answer! $ %iff! 1 &age Ref! ' $hapter! 1 (kill! Application )*! 1 ') +ony works in the finance department as an accounting clerk. He keeps a time card and receives e,tra pay for any overtime he works. +ony is most likely a-n)! A) e,empt line employee. ") none,empt staff employee. $) e,empt staff employee. %) none,empt line employee. Answer! " %iff! ' &age Ref! . $hapter! 1 (kill! Application )*! 1 .) (alaried employees are also known as //////// employees. A) e,empt ") senior $) staff %) line Answer! A %iff! 1 &age Ref! . $hapter! 1 (kill! $oncept )*! 1

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4) 5hich of the following is an environmental challenge faced by modern HR managers6 A) #ob insecurity ") decentrali7ation $) marketplace globali7ation %) self8managed work teams Answer! $ %iff! 1 &age Ref! . $hapter! 1 (kill! $oncept )*! ' 9) %ue to the increasing work pace and burnout in the :nited (tates, more workers are dealing with stress. According to your te,t, an increasing number of firms are choosing to! A) provide employees with health and wellness programs. ") re;uire employees to take longer breaks during the work day. $) encourage telecommuting, #ob sharing, and employment sabbaticals. %) inform potential employees of this challenge during the interviewing process. Answer! A %iff! . &age Ref! 4 $hapter! 1 (kill! $oncept )*! ' <) 5hich of the following is =*+ true of the 3nternet Revolution as it relates to HR>6 A) 5riting skills are essential to effective e8mail communications. ") +he recruiting, screening, and hiring process is streamlined. $) *nline corporate training is surpassing classroom training. %) $ross8cultural understanding is less important. Answer! % %iff! . &age Ref! 98< $hapter! 1 (kill! $oncept )*! ' AA$("! :se of information technology ?) R$A is creating a corporate identity to smooth over cultural differences between its domestic and international employees. R$A is most likely addressing the HR> challenge of! A) outsourcing. ") globali7ation. $) employee stress. %) competitive markets. Answer! " %iff! ' &age Ref! ?8@ $hapter! 1 (kill! Application )*! ' AA$("! %ynamics of the global economy
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@) 5hat is the primary reason for the rising importance of HR at firms over the last four decades6 A) market globali7ation ") workforce diversity $) employment laws %) technology Answer! $ %iff! ' &age Ref! A $hapter! 1 (kill! $oncept )*! ' A) A dual8career family is one in which! A) the ma#or bread winner works two #obs. ") the wife is a homemaker and the husband works outside of the home. $) both husband and wife work. %) both husband and wife own their own business. Answer! $ %iff! 1 &age Ref! A $hapter! 1 (kill! $oncept )*! ' 11) Birms are increasingly introducing family8friendly programs to! A) comply with federal 22* legislation. ") hire and retain the best workers. $) provide essential training. %) gain ta, benefits. Answer! " %iff! ' &age Ref! A $hapter! 1 (kill! $oncept )*! ' 11) Crowth in service sector employment is most likely tied to! A) advances in technology that eliminate manufacturing #obs. ") the increasing number of women entering the workforce. $) increasing efforts to match individuals to the correct #obs. %) an overabundance of highly educated #ob candidates. Answer! A %iff! . &age Ref! A $hapter! 1 (kill! $oncept )*! '

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1') +he need for skilled employees in the :nited (tates has! A) intensified in the service sector due to technology advancements. ") decreased because the number of #obs re;uiring a college education has declined. $) leveled off because government programs have improved skill levels of the workforce. %) decreased due to the rising number of highly8educated immigrants in the technology field. Answer! A %iff! . &age Ref! A $hapter! 1 (kill! $oncept )*! ' 1.) $ompanies spend around //////// billion dollars each year on employee training programs. A) '1 ") .9 $) 99 %) ?1 Answer! $ %iff! 1 &age Ref! 11 $hapter! 1 (kill! $oncept )*! ' 14) How has the collapse of the :.(. housing market affected HR policies6 A) changed training re;uirements ") limited recruitment to local area $) shifted responsibilities to central office %) decreased need for entry8level candidates Answer! " %iff! . &age Ref! 11 $hapter! 1 (kill! $oncept )*! ' 19) 5hich organi7ational challenge has the most significant impact on a firm's competitive advantage6 A) controlling costs ") overseeing e,patriation $) developing #oint ventures %) establishing a corporate culture Answer! A %iff! ' &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4

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1<) 5hich term refers to an organi7ation8wide approach to improving the ;uality of all the processes that lead to a final product or service6 A) decentrali7ation strategy ") +otal Duality >anagement $) Human Resource (corecard %) organi7ational restructuring Answer! " %iff! 1 &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 1?) HR policies affect a firm's competitive position in all of the following ways 2E$2&+ by! A) improving ;uality ") controlling costs $) creating distinctive capabilities %) developing mission statements Answer! % %iff! . &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 1@) 5hich term refers to transferring responsibility and decision8making authority from a central office to people closer to the situation that demands attention6 A) decentrali7ation ") restructuring $) downsi7ing %) outsourcing Answer! A %iff! 1 &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 1A) 5hich of the following has aided decentrali7ation in many companies6 A) cost8cutting ") federal support $) 3nternet technology %) corporate orientation Answer! $ %iff! . &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 AA$("! :se of information technology
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'1) +he current trend to downsi7e most likely results in! A) higher worker output. ") better decision8making. $) lower salary e,penditures. %) greater workforce diversity. Answer! $ %iff! ' &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 '1) *rgani7ational restructuring over the past two decades has primarily led to firms with! A) more managers and fewer laborers as automation eliminates lower8level #obs. ") fewer people between the $2* and the lowest8ranking worker. $) fewer self8managed work teams. %) more mid8level managers. Answer! " %iff! . &age Ref! 1' $hapter! 1 (kill! $oncept )*! 4 '') (elf8managed work teams are! A) an uncommon method of managing a small business. ") very costly to the companies that must pay benefits to team members. $) groups of peers in a company setting who take responsibility for a particular area or task. %) a positive contribution to large corporations who are worried about being too Ftop heavy.F Answer! $ %iff! ' &age Ref! 1' $hapter! 1 (kill! $oncept )*! 4 '.) According to research, the contributions that self8managed work teams offer a large firm are typically! A) minimal. ") very positive. $) apt to decline as firms become more decentrali7ed. %) never significant enough to warrant a change in most businesses. Answer! " %iff! ' &age Ref! 1' $hapter! 1 (kill! $oncept )*! 4

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'4) According to the te,t, what percentage of new businesses fail in their first year of operation6 A) .1G ") 41G $) 91G %) <1G Answer! " %iff! 1 &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' '9) *rgani7ational culture most likely refers to! A) ethical decisions in the workplace. ") an organi7ation's mission and vision statements. $) basic beliefs shared by members of an organi7ation. %) the non8pervasive atmosphere within which people work. Answer! $ %iff! 1 &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' '<) All of the following are key elements of organi7ational culture 2E$2&+! A) working norms. ") language usage. $) dominant values. %) available technology. Answer! % %iff! ' &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' '?) A critical ethical issue for HR managers related to technology use in work environments is the! A) increase in authoritarian management. ") improper use of proprietary data. $) misuse of technology by self8managed work teams. %) overly close supervision of technology users. Answer! " %iff! ' &age Ref! 1.814 $hapter! 1 (kill! $oncept )*! ' AA$("! :se of information technology

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'@) Hnott's $onstruction builds one house every month. >r. Hnotts and (cott perform all the structural work themselves while they subcontract the plumbing and electrical work. +his subcontracting is an e,ample of! A) restructuring. ") recruiting. $) elalitarianism. %) outsourcing. Answer! % %iff! 1 &age Ref! 1< $hapter! 1 (kill! $oncept )*! 9 'A) 5hat is the primary HR challenge of outsourcing6 A) 3t raises labor costs because of overtime re;uirements. ") A firm is still accountable for the actions of its subcontractors, but it e,ercises less control over them. $) (ubcontractors tend to take on less work than they can handle, which means that the firm needs to hire additional workers. %) $ustomers tend to be more satisfied with subcontractors than with regular employees, which creates conflict in the workplace. Answer! " %iff! . &age Ref! 1< $hapter! 1 (kill! $oncept )*! 9 .1) Rudy is writing a report about the individual challenges his firm is facing. 5hich of the following topics would be )2A(+ relevant to the report6 A) motivating employees ") encouraging ethical behavior $) outsourcing low8paying #obs %) retaining high8performing employees Answer! $ %iff! . &age Ref! 1< $hapter! 1 (kill! Application )*! 4

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.1) A study of fast8growth firms shows that they are more likely to employ managers who are! A) structured. ") risk8takers. $) entrepreneurs. %) technically competent. Answer! " %iff! 1 &age Ref! 1@ $hapter! 1 (kill! $oncept )*! 4 .') 5hen it comes to managers dealing with ethical issues, it is most safe to say that! A) what is ethical or unethical is seldom clear cut. ") issues clearly resolve themselves into right and wrong choices. $) ethical codes have significantly helped managers with ethical issues. %) employee e,pectations of ethical managerial behavior are rapidly declining. Answer! A %iff! 1 &age Ref! 1@ $hapter! 1 (kill! $oncept )*! 9 ..) 5ilton $arpet and Blooring supports local children's sports teams by providing uniforms and practice gear. 5hich of the following terms best describes the activities of the firm6 A) outsourcing ") egalitarianism $) empowerment %) social responsibility Answer! % %iff! ' &age Ref! 1A $hapter! 1 (kill! Application )*! 9 .4) Harl is trying to improve company productivity by focusing on employee competence. Harl is focusing on the //////// factor of productivity. A) motivation ") ethical behavior $) ;uality of work life %) ability Answer! % %iff! ' &age Ref! 1A $hapter! 1 (kill! Application )*! 9

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.9) ou are talking with a manager about one of his employees, +om. +he manager describes +om as a person who has a strong desire to do the best possible #ob and put in the ma,imum effort to perform his assigned tasks. +he manager is describing +om's! A) abilities. ") capabilities. $) motivation. %) productivity level. Answer! $ %iff! ' &age Ref! '1 $hapter! 1 (kill! Application )*! 9 .<) 2mpowerment is best defined as! A) emphasi7ing the decision8making power of workers. ") re;uiring workers to perform tasks to avoid punishment. $) forcing workers to comply with e,ternal control mechanisms. %) losing talented workers to competitors and start8up ventures. Answer! A %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! < .?) *ne of your best >3( people ;uit to work for a competitor in a neighboring city. 5hen she left, she took with her a partially completed proposal for an enhanced >3( system that would reduce costs and increase the speed of handling information. ou've #ust e,perienced a! A) productivity shift. ") reverse brain drain. $) brain drain. %) glass ceiling. Answer! $ %iff! 1 &age Ref! '1 $hapter! 1 (kill! Application )*! <

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.@) >any profitable American companies eliminate #obs every year. +his trend can most likely be attributed to which of the following factors6 A) decreasing benefits costs ") decreasing retirement age $) increasing corporate competition %) increasing union membership Answer! $ %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! 9 .A) (trategic human resource planning is best defined as the process of! A) responding appropriately to HR> problems as they arise. ") winning the commitment of line management to support HR> practices. $) formulating HR strategies and establishing programs to implement them. %) training HR professionals with minimal input from line and staff management. Answer! $ %iff! 1 &age Ref! '1 $hapter! 1 (kill! $oncept )*! 9 41) (trategic human resource planning provides a number of benefits to a company, such as! A) relieving middle managers of their HR> responsibilities. ") blurring the difference between line and staff management. $) reducing costs by diversifying the company's goals and ob#ectives. %) helping to identify the gap between a company's current situation and vision. Answer! % %iff! . &age Ref! '' $hapter! 1 (kill! $oncept )*! 9 41) >olly heads a large company that has #ust e,perienced a ma#or brain drain. (he immediately increases compensation to new employees and gives each employee with over 11 years e,perience an e,tra . days of paid vacation per year. +his is an e,ample of! A) strategic HR planning. ") proactive HR strategy. $) reactive HR strategy. %) downsi7ing. Answer! $ %iff! ' &age Ref! '1 $hapter! 1 (kill! Application )*! 9
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4') >anagers who rely on their personal views and e,periences to solve problems are more likely to run the risk of! A) alienating employees who want to contribute to the decision8making process. ") undermining the long8term goals of the company by becoming too independent. $) taking on more responsibility than is necessary in any given business venture. %) making false assumptions about the business and threatening corporate profitability. Answer! % %iff! . &age Ref! '' $hapter! 1 (kill! $oncept )*! < 4.) 3n order to stimulate critical thinking, the strategic HR planning process should most likely be! A) focused on day8to8day management issues. ") structured and specific. $) linked to corporate social responsibility. %) ongoing and fle,ible. Answer! % %iff! ' &age Ref! '' $hapter! 1 (kill! $oncept )*! 9 44) 5hich of the following is a primary challenge of strategic HR planning6 A) encouraging employees to accept empowerment strategies ") reacting appropriately to problems in the internal and e,ternal environment $) building HR strategies independent of the overall business strategy of the company %) developing strategies that offer the firm a sustained competitive advantage Answer! % %iff! . &age Ref! '. $hapter! 1 (kill! $oncept )*! 9 49) Helly spends her day focusing on recruiting ;ualified employees for her growing company, reviewing benefit plans in order to offer competitive compensation packages, and creating online #ob postings. Helly is most likely facing the strategic HR planning challenge of! A) reinforcing the overall business strategy with her HR strategies. ") concentrating too much on day8to8day problems. $) coping with the e,ternal environment. %) securing management commitment to her HR strategies. Answer! " %iff! . &age Ref! '. $hapter! 1 (kill! Application )*! <
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4<) +own House &ublishing is implementing a new HR strategy, and to give it the best chance of succeeding, the HR department should most likely! A) increase diversity in the environment. ") ensure managers' commitment to the strategy. $) create a back8up strategy to implement in case the initial strategy fails. %) centrali7e management in order to communicate more effectively with employees. Answer! " %iff! . &age Ref! '. $hapter! 1 (kill! Application )*! < 4?) 5hich of the following is a characteristic of most intended strategies6 A) +hey mobili7e responses from top management. ") +hey involve everyone in an organi7ation. $) +hey develop gradually from e,periences. %) +hey lack strong leadership. Answer! A %iff! ' &age Ref! '4 $hapter! 1 (kill! $oncept )*! < 4@) 2mergent strategies generally! A) evolve and change as needs arise. ") involve only portions of an organi7ation. $) encourage strong leadership within a firm. %) are less beneficial to a small company. Answer! A %iff! ' &age Ref! '4 $hapter! 1 (kill! $oncept )*! < 4A) 5orking on his HR strategic plan, Iose is thinking about whether to recommend specific #ob descriptions or broad #ob classes, and detailed or loose work planning. Iose is considering the HR strategic choice related to! A) performance appraisals. ") staffing. $) work flows. %) employee separations. Answer! $ %iff! ' &age Ref! '4 $hapter! 1 (kill! Application )*! <
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91) 5hich of the following is a strategic HR issue related to staffing6 A) imposing a hiring free7e to avoid laying off workers ") developing an appraisal system for work teams $) empowering supervisors to make hiring decisions %) providing continuing support to terminated workers Answer! $ %iff! ' &age Ref! '< $hapter! 1 (kill! $oncept )*! 9 91) 5hen considering HR strategies regarding employee separations, managers must consider whether to! A) use layoffs or voluntary inducements to downsi7e a firm. ") encourage decentrali7ation or centrali7ation of the firm to better enhance employee relations. $) compensate long8term employees more than recent hires. %) create rigid #ob descriptions to separate the responsibilities of managers and subordinates. Answer! A %iff! ' &age Ref! '< $hapter! 1 (kill! $oncept )*! 9 9') 5hen developing performance appraisals, a firm needs to make strategic HR choices concerning! A) how appraisal data will be used in #ob descriptions. ") training programs for employees with substandard #ob performance. $) which kind of appraisal system -customi7ed or general) will work best for the organi7ation. %) how to maintain the privacy of managers and employees while collecting data regarding their #ob performance. Answer! $ %iff! . &age Ref! '< $hapter! 1 (kill! $oncept )*! 9

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9.) 3f an HR department is reviewing whether to use discipline as a control mechanism or as a proactive way to encourage appropriate behavior, it is considering its strategic choices within the HR function of! A) work flows. ") performance appraisal. $) employee rights. %) employee relations. Answer! $ %iff! ' &age Ref! '? $hapter! 1 (kill! $oncept )*! 9 94) $andles, 3nc. is currently evaluating the //////// the firm gives its employees, including stock options, benefit packages, and raises based on performance. A) development ") compensation $) bonuses %) salary Answer! " %iff! ' &age Ref! '<8'? $hapter! 1 (kill! Application )*! 9 99) 5hich term refers to the compatibility between HR strategies and other key aspects of an organi7ation6 A) fit ") unity $) focus %) centrali7ation Answer! A %iff! 1 &age Ref! '? $hapter! 1 (kill! $oncept )*! 4

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9<) 5hich of the following is a true statement about the contribution of an HR strategy to an organi7ation's performance6 A) Birm performance decreases when too much overlap occurs with strategic planning. ") Birm performance decreases if HR strategy focuses too much on distinct competencies. $) Birm performance increases if department HR strategies are independent of each other. %) Birm performance increases when HR strategy matches uni;ue organi7aitonal features. Answer! % %iff! . &age Ref! '? $hapter! 1 (kill! $oncept )*! 4 9?) 5hich of the following is )2A(+ important when determining which HR strategies will positively impact a firm's performance6 A) *rgani7ational capabilities ") *rgani7ational strategies $) *rgani7ational characteristics %) *verall cost leadership strategy Answer! % %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 4 9@) Bor an HR strategic plan to fit with organi7ational strategies, it most likely needs to align with! A) individual employees' personal goals. ") work flows used by the organi7ation. $) the firm's corporate and business unit strategies. %) the company's international management plans. Answer! $ %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 4 9A) An evolutionary firm would most likely! A) be a mi,ture of several different global firms. ") e,hibit strong control over employees. $) be highly decentrali7ed and fle,ible. %) discourage entrepreneurship. Answer! $ %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 4
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<1) 5hich of the following HR strategies would most likely be appropriate for a firm implementing an overall cost leadership business strategy6 A) encourage innovation ") recruit only from e,ternal sources $) use performance appraisal as a control device %) develop broad #ob classifications for work groups Answer! $ %iff! ' &age Ref! 'A $hapter! 1 (kill! $ritical +hinking )*! 9 <1) >anvel 2nterprises is implementing a differentiation strategy. >anvel will most likely! A) supervise its staff employees very closely. ") design a product for easy manufacture. $) strive for low8cost production. %) create a uni;ue product. Answer! % %iff! ' &age Ref! 'A $hapter! 1 (kill! Application )*! 9 <') An HR strategy that fits a company's differentiation strategy would most likely! A) emphasi7e innovation. ") pursue cost reductions. $) limit distribution costs. %) standardi7e appraisals. Answer! A %iff! ' &age Ref! 'A $hapter! 1 (kill! $oncept )*! 9 <.) HR strategies that fit a company's focus strategy are best described as being! A) between those of a prospector and a defender strategy. ") identical to those of a company using a defender strategy. $) identical to those of a company using a low8cost strategy. %) between those of a differentiation and a low8cost strategy. Answer! % %iff! ' &age Ref! 'A $hapter! 1 (kill! $oncept )*! 9

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<4) Birms that display a defender strategy will most likely! A) involve co8workers in the selection process. ") provide customi7ed performance appraisals. $) encourage individual training. %) recruit e,ternally. Answer! $ %iff! ' &age Ref! .1 $hapter! 1 (kill! $oncept )*! 9 <9) Birms that are high on uncertainty or that operate in volatile environments would benefit most from HR strategies that involve! A) variable pay and fle,ibility. ") control emphasis and fi,ed pay. $) centrali7ed pay decisions and e,plicit #ob descriptions. %) internal recruitment and a formal hiring process. Answer! A %iff! . &age Ref! .' $hapter! 1 (kill! $ritical +hinking )*! 9 <<) Birms that are low on uncertainty and change and that operate in stable environments would benefit most from HR strategies that involve! A) variable pay and fle,ibility. ") control emphasis and fi,ed pay. $) e,ternal recruitment and an informal hiring process. %) low dependency on superiors and tailored appraisal procedures. Answer! " %iff! . &age Ref! .' $hapter! 1 (kill! $ritical +hinking )*! 9 <?) A firm considering the volatility of its product market, the degree of change that its product is e,periencing over the passing of time, and the number of competitors with which it is competing is probably e,amining its HR strategy's fit with! A) organi7ational characteristics. ") organi7ational capabilities. $) the environment. %) the customers. Answer! $ %iff! . &age Ref! .' $hapter! 1 (kill! $oncept )*! 9
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<@) 5hich of the following is an aspect of an organi7ation's FpersonalityF6 A) empowerment strategies ") outsourcing policies $) litigation actions %) market posture Answer! % %iff! ' &age Ref! .. $hapter! 1 (kill! $oncept )*! 9 <A) (tacey notes that her firm is risk averse, operates with a fle,ible, delegating management style, and is outwardly focused. (tacey's observations describe which organi7ational characteristic of a company6 A) +he firm's market posture ") +he firm's organi7ational structure $) +he firm's management philosophy %) +he organi7ation's overall personality Answer! $ %iff! ' &age Ref! .. $hapter! 1 (kill! Application )*! 9 ?1) A firm that encourages an entrepreneurial climate would most likely! A) implement a variable pay compensation system. ") display a strong top8down managerial preference. $) discourage innovation and risk taking among workers. %) rely on authoritarian employee8manager relationships. Answer! A %iff! ' &age Ref! .. $hapter! 1 (kill! $oncept )*! 9 ?1) >ona is interested in buying a new computer. (he has heard that (hell processors are on the low end of the cost spectrum and that the company offers an e,cellent warranty. >ona is focused on the firm's! A) multiple appraisal inputs. ") distinctive competencies. $) entrepreneurial climate. %) moral commitment. Answer! " %iff! ' &age Ref! .. $hapter! 1 (kill! Application )*! 9
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?') +he primary role of HR is to! A) alleviate the personnel management responsibility from managers. ") develop technical e,pertise for effective recruiting. $) support and help managers perform their #obs. %) conduct all performance evaluations. Answer! $ %iff! ' &age Ref! .9 $hapter! 1 (kill! $oncept )*! . ?.) 5hich of the following actions would most likely foster an effective relationship between managers and HR6 A) focusing on the technical side of productivity and teaching it to HR ") hiring outside consultants to assist HR in implementing its programs $) re;uiring some management e,perience as part of HR professionals' training %) mandating after8work sociali7ing among HR professionals and line managers Answer! $ %iff! . &age Ref! .9 $hapter! 1 (kill! $oncept )*! . ?4) $arson is gathering information for an HR audit. 5ith which of the following areas should he be concerned6 A) 5ork teams ") +urnover rate $) Available technology %) 2mployee interdependence Answer! " %iff! ' &age Ref! .9 $hapter! 1 (kill! Application )*! < ?9) +he (ociety for Human Resource >anagement -(HR>) offers which of the following6 A) %iversity training ") "enefits packages $) &rofessional certification %) (alary negotiations Answer! $ %iff! 1 &age Ref! .< $hapter! 1 (kill! $oncept )*! .

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$ase 1.1 >anagers at $aplin $ompany are having a strategic planning session with the director of HR. +hey are discussing the fit between the company's overall management philosophy, organi7ational structure, organi7ational culture, and the firm's current HR strategies. %uring the meeting, the management team asks the HR %irector for a profile of the current workforce. +he HR %irector reports that the workforce used to be @9G white, 91G male. =ow it is 91G white, 91G minority with twice as many women as men. (upervisors still tend to be white males. +he management team discusses how to control costs, improve ;uality, and create distinctive capabilities. (everal ideas are raised, discussed, and tabledJ some topics are assigned to an individual for further e,ploration. >anagers comment that some workers arrive at start time, take .1 minutes before initiating any work, and begin to pack up for the day .1 minutes before ;uitting time. >anagers also indicate that employees do not seem concerned about working hard or about building ;uality products. As the meeting draws to a close, the team briefly discusses the firm's commitment to the surrounding community. As a cost8cutting measure, the firm eliminated its support of an adult literacy program last year. $ompany facilities were used for conducting reading classes. +he management team decides that the firm should reinstate the program and appoints the HR %irector to notify the local literacy council. ?<) Refer to $ase 1.1. +he change in the workforce at $aplin is an e,ample of the environmental challenge of! A) decentrali7ation. ") skill shortages. $) workforce diversity. %) rapid change. Answer! $ %iff! 1 &age Ref! ? $hapter! 1 (kill! Application )*! ' AA$("! >ulticultural and diversity understanding ??) Refer to $ase 1.1. $aplin's discussion of costs, ;uality, and capabilities shows that the firm is trying to address the! A) organi7ational challenge of competitive position. ") environmental challenge of rapid change. $) individual challenge of matching workers with #obs. %) market challenge of changing customer needs. Answer! A %iff! ' &age Ref! 11 $hapter! 1 (kill! Application )*! '

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?@) Refer to $ase 1.1. 5hich of the following would most likely improve employee work habits at $aplin6 A) *ffering telecommuting opportunities to all employees ") >aking ad#ustments to the firm's organi7ational culture $) *utsourcing most clerical #obs to overseas firms %) 3mplementing a focus strategy Answer! " %iff! . &age Ref! 1. $hapter! 1 (kill! $ritical +hinking )*! ' AA$("! Reflective thinking skills $ase 1.' As the manager of HR of an old, established company, you are leading the management team in a strategic planning session. %uring the planning session, managers are being forced to think about the future, see the likely changes in the marketplace, and make plans to use company resources to enhance their competitive edge. +he company decides that as part of its business strategy, it wants to attract and retain the best possible employees. ou suggest that the company pay a hiring bonus, use a pay scale that is 11G above the industry average, and provide an e,tra week of vacation after only one year instead of the standard three years. ?A) Refer to $ase 1.'. +he most likely benefit of this strategic planning session is! A) communicating a specific business strategy for the firm. ") identifying the constraints and capabilities of the firm's HR. $) e,ploiting and e,panding the firm's distinctive capabilities. %) identifying gaps between the current situation and a future vision. Answer! % %iff! . &age Ref! '' $hapter! 1 (kill! $ritical +hinking )*! ' @1) Refer to $ase 1.'. 3f this firm chooses to also address its employee and labor relations, it should most likely! A) review its policy on union avoidance or support. ") develop policies to protect employee interests. $) decentrali7e union policy formation. %) promote e,clusively from within. Answer! A %iff! ' &age Ref! '? $hapter! 1 (kill! $ritical +hinking )*! 9
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@1) Refer to $ase 1.'. +he HR strategies suggested are e,amples of! A) intended strategies. ") emergent strategies. $) diversification strategies. %) business unit strategies Answer! A %iff! ' &age Ref! '4 $hapter! 1 (kill! Application )*! 9 $ase 1.. our company sells high8tech products throughout the world and is following a differentiation business strategy. +he business environment for the company is volatile, rapidly changing, and highly comple,. +he company is highly entrepreneurial and has a strong moral commitment to ;uality products, employee #ob satisfaction, and corporate social responsibility. +he management team has decided to create a common company culture among the various national and international subsidiaries. @') Refer to $ase 1... 5hich of the following HR strategies would most likely support the company's business strategy6 A) 3mplementing highly structured procedures ") :sing piece rate pay plans and bonuses $) $losely monitoring workers %) 2ncouraging creativity Answer! % %iff! . &age Ref! 'A $hapter! 1 (kill! $ritical +hinking )*! 9 AA$("! Reflective thinking skills @.) Refer to $ase 1... +he entrepreneurial climate and moral commitment are elements of this firm's! A) organi7ational culture. ") market posture. $) organi7ational structure. %) globali7ation strategy. Answer! A %iff! ' &age Ref! .. $hapter! 1 (kill! Application )*! 4

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@4) Refer to $ase 1... 5hat is the most likely benefit of creating a common culture at the firm6 A) )owering overall production costs ") >inimi7ing the need for additional employee training $) 2nhancing international and domestic recruiting efforts %) 3ncreasing cooperation among domestic and international employees Answer! % %iff! . &age Ref! ? $hapter! 1 (kill! $ritical +hinking )*! ' AA$("! >ulticultural and diversity understanding @9) Refer to $ase 1... +he company's differentiation strategy is a type of! A) corporate strategy. ") defender strategy. $) emergent strategy. %) business unit strategy. Answer! % %iff! ' &age Ref! '@ $hapter! 1 (kill! Application )*! 9

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$ase 1.4 $rowe, 3nc. has been a powerful steel producer for the last 19 years and predicts a profitable future. $rowe has a very secure position within the steel industry and does not plan to e,pand into different industries. +op managers e,ercise significant control over the firm. $rowe strives to develop new products and technologies. +he company offers employees long8term career development and grooms employees for promotions through a highly structured HR system. 3n the past, the company's atmosphere has been very congenial and cohesive at all levels of the organi7ation. Recently, there has been a noticeable shift in employee attitudes. )ower8level employees have e,pressed discontent about schedules, compensation, and training opportunities. (everal employees have been fired, and many others have threatened to ;uit. @<) Refer to $ase 1.4. 5hich of the following ;uestions is most relevant to the situation at $rowe6 A) 5hat tasks are outsourced by the firm6 ") 5hat is the firm's current rehiring policy6 $) How fre;uently do managers receive performance appraisals6 %) How is work flow structured and communicated by managers6 Answer! % %iff! . &age Ref! '4 $hapter! 1 (kill! $ritical +hinking )*! 4 AA$("! Reflective thinking skills @?) Refer to $ase 1.4. $rowe could be best described as a! A) defender. ") prospector. $) reactive corporation. %) company with distinctive competencies. Answer! A %iff! ' &age Ref! 'A $hapter! 1 (kill! Application )*! 9 @@) Refer to $ase 1.4. +he corporate strategy that $rowe would most likely espouse is a-n)! A) evolutionary business strategy. ") decentrali7ing strategy. $) cost8cutting strategy. %) steady state strategy. Answer! % %iff! ' &age Ref! '@ $hapter! 1 (kill! Application )*! 9
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@A) A human resource tactic refers to a firm's deliberate use of human resources to gain and maintain a competitive edge in the marketplace. Answer! BA)(2 %iff! 1 &age Ref! ' $hapter! 1 (kill! $oncept )*! 1 A1) >ore and more :.(. companies are forming global alliances and trying to develop worldwide cultures in order to smooth over differences among employees. Answer! +R:2 %iff! 1 &age Ref! ? $hapter! 1 (kill! $oncept )*! 1 AA$("! >ulticultural and diversity understanding A1) +he manufacturing sector is now growing more rapidly than the service sector in the :.(. economy. Answer! BA)(2 %iff! ' &age Ref! A $hapter! 1 (kill! $oncept )*! 1 A') +raining employees helps control an organi7ation's costs and improve efficiency. Answer! +R:2 %iff! ' &age Ref! 11 $hapter! 1 (kill! $oncept )*! 9 A.) +D> programs are designed to improve the ;uality of the processes used to produce products. Answer! +R:2 %iff! ' &age Ref! 11 $hapter! 1 (kill! $oncept )*! 4 A4) %ownsi7ing is a type of organi7ational restructuring. Answer! BA)(2 %iff! ' &age Ref! 11. $hapter! 1 (kill! $oncept )*! '
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A9) According to the ("A, a wholesale company with @9 employees and a manufacturing firm with 1,'11 employees are both small businesses. Answer! +R:2 %iff! ' &age Ref! 1' $hapter! 1 (kill! $oncept )*! ' A<) According to studies, AA.@G of small businesses in the :.(. have less than 111 employees. Answer! +R:2 %iff! ' &age Ref! 1' $hapter! 1 (kill! $oncept )*! ' A?) (tudies show that A1G of all small businesses fail within their first three years. Answer! BA)(2 %iff! ' &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' A@) =orms, rules of the game, and organi7ational climate are elements of an organi7ation's structure. Answer! BA)(2 %iff! 1 &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' AA) A significant technology issue for HR is the proper use of the data that its information systems generate. Answer! +R:2 %iff! ' &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' AA$("! :se of information technology 111) Bederal laws prevent firms from monitoring employees' use of the 3nternet. Answer! BA)(2 %iff! ' &age Ref! 14 $hapter! 1 (kill! $oncept )*! ' AA$("! :se of information technology
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111) Croupware networks have enabled power and authority to spread more evenly among employees at firms. Answer! +R:2 %iff! ' &age Ref! 19 $hapter! 1 (kill! $oncept )*! ' AA$("! :se of information technology 11') Research indicates that fast8growth firms benefit from having managers with marketing and sales backgrounds. Answer! +R:2 %iff! ' &age Ref! 1@ $hapter! 1 (kill! $oncept )*! 4 11.) Reverse brain drain refers to the trend of foreigners applying for visas to work in the :nited (tates. Answer! BA)(2 %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! ' 114) Birms with strong organi7ational cultures typically perform better than firms without such environments. Answer! +R:2 %iff! ' &age Ref! '' $hapter! 1 (kill! $oncept )*! ' 119) HR strategies that work for one company in an industry will work #ust as well for another company in the same industry since business environments tend to be similar within industries. Answer! BA)(2 %iff! ' &age Ref! '. $hapter! 1 (kill! $oncept )*! 9

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11<) 2mergent strategies provide organi7ations with a sense of purpose and a guide for allocating resources. Answer! BA)(2 %iff! 1 &age Ref! '9 $hapter! 1 (kill! $oncept )*! 9 11?) 5ork flow refers to how a specific task is organi7ed to meet the production or service goals of a firm. Answer! +R:2 %iff! 1 &age Ref! '4 $hapter! 1 (kill! $oncept )*! 9 11@) +he $ola $orporation controls a bottle factory, a root beer brewery, and a bottling plant. +his mi, of businesses on the part of $ola $orp. is referred to as the business unit strategy. Answer! BA)(2 %iff! ' &age Ref! '@ $hapter! 1 (kill! Application )*! 9 11A) A corporation that values centrali7ation, long8term career development, and internal grooming of employees has probably adopted a steady state strategy. Answer! +R:2 %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 9 111) Birms with evolutionary business strategies are less likely to ac;uire businesses in different industries. Answer! BA)(2 %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 9 111) &rospector strategies are characteri7ed by broad #ob classes, variable pay, and informal hiring processes. Answer! +R:2 %iff! ' &age Ref! .1 $hapter! 1 (kill! $oncept )*! 9
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11') HR strategies need to fit a firm's overall management philosophy but may largely ignore the company's market posture and production processes, since those are line management responsibilities and HR has little impact on them. Answer! BA)(2 %iff! . &age Ref! .. $hapter! 1 (kill! $oncept )*! . 11.) A firm's uni;ue technical abilities and reputation are distinctive competencies. Answer! +R:2 %iff! 1 &age Ref! .. $hapter! 1 (kill! $oncept )*! 9 114) &eople who work in an organi7ation are called ////////. Answer! human resources -HR) %iff! 1 &age Ref! ' $hapter! 1 (kill! $oncept )*! 1 119) A particular HR policy or program that helps to advance a firm's strategic goal is referred to as a ////////. Answer! human resource tactic %iff! 1 &age Ref! ' $hapter! 1 (kill! $oncept )*! 1 11<) A-n) //////// is an employee involved directly in producing the company's good-s) or delivering the service-s). Answer! line employee %iff! ' &age Ref! ' $hapter! 1 (kill! $oncept )*! 1 11?) Borces e,ternal to a firm that affect the firm's performance but are beyond the control of management are called ////////. Answer! environmental challenges %iff! 1 &age Ref! ' $hapter! 1 (kill! $oncept )*! 1
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11@) //////// is an organi7ation8wide approach to improving the ;uality of all the processes that lead to a final product or service. Answer! +D> %iff! 1 &age Ref! 11 $hapter! 1 (kill! $oncept )*! 1 11A) //////// is the transferring of responsibility and decision8making authority from a central office to people and locations closer to the situation that demands attention. Answer! %ecentrali7ation %iff! ' &age Ref! 11 $hapter! 1 (kill! $oncept )*! ' 1'1) A reduction in a company's workforce to improve its bottom line is referred to as ////////. Answer! downsi7ing %iff! 1 &age Ref! 11 $hapter! 1 (kill! $oncept )*! ' 1'1) "eliefs that operate unconsciously and define, in a basic taken8for8granted fashion, an organi7ation's view of itself and its environment refer to ////////. Answer! organi7ational culture %iff! ' &age Ref! 1. $hapter! 1 (kill! $oncept )*! ' 1'') //////// is subcontracting work to an outside company that speciali7es in and is more efficient at doing that kind of work. Answer! *utsourcing %iff! 1 &age Ref! 1< $hapter! 1 (kill! $oncept )*! ' 1'.) A measure of how safe and satisfied employees feel with their #obs is referred to as ////////. Answer! ;uality of work life %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! '
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1'4) //////// provides workers with the skills and authority to make decisions that would traditionally be made by managers. Answer! 2mpowerment %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! ' 1'9) +he process of formulating HR strategies and establishing programs or tactics to implement them is called ////////. Answer! strategic human resource planning %iff! ' &age Ref! '1 $hapter! 1 (kill! $oncept )*! 4 1'<) A-n) //////// is the formulation and implementation of strategies by a firm that is relatively autonomous, even if it is part of a larger corporation. Answer! business unit strategy %iff! ' &age Ref! '@ $hapter! 1 (kill! $oncept )*! 4 1'?) //////// are the characteristics that give a firm a competitive edge. Answer! %istinctive competencies %iff! 1 &age Ref! .. $hapter! 1 (kill! $oncept )*! 4 1'@) A periodic review of the effectiveness with which a company uses its human resources is called a-n) ////////. Answer! HR audit %iff! 1 &age Ref! .9 $hapter! 1 (kill! $oncept )*! <

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1'A) How have technology advancements changed HR>6 %iscuss how these advancements allow HR managers to support line managers more effectively. Answer! +echnology has increased the need for greater communication skills and ways to handle information overflow. +he 3nternet has also created an open labor market. *nline learning is now available, and many workers telecommute. +echnology has allowed HR to focus on working with line managers to handle HR issues because details like benefits and payroll are handled more efficiently now. HR managers and line managers have more time to work together to implement programs that are designed to meet the firm's ob#ectives. %iff! . &age Ref! 98?, .4 $hapter! 1 (kill! (ynthesis )*! ', . AA$("! :se of information technology 1.1) 5hat types of environmental and organi7ational challenges face corporations today6 5hat HR strategies help firms handle some of these challenges to achieve and sustain competitive advantages6 Answer! 2nvironmental challenges include workforce diversity, skill shortages, globali7ation, and the rise of the 3nternet. HR> can handle workforce diversity by increasing cultural sensitivity, raising awareness of growing diversity in the workforce, implementing policies to help break the glass ceiling, and raising awareness of generation gap issues. *rgani7ational challenges include decentraliation, downsi7ing, and organi7ational restructuring. HR policies can help firms competitive position by controlling costs, improving ;uality, and creating distinctive capabilities. %iff! . &age Ref! '81' $hapter! 1 (kill! (ynthesis )*! ', 4 AA$("! Analytic skills 1.1) Review the ma#or challenges at the individual level and offer ways HR> can assist organi7ations in meeting these challenges. Answer! (ummary of suggested answer 8 >atching people, co8developing ethical codes, training, implementing better HR> decision processes. &roductivity 8 improving hiring, placing, training. Recogni7ing motivational issues, developing strategies to enhance motivation. %eveloping strategies to empower employees. 3dentifying key employees and developing retention strategies to prevent brain drain. %iff! . &age Ref! 1@8'1 $hapter! 1 (kill! (ynthesis )*! ', 4 AA$("! Analytic skills

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1.') How do human resources influence a firm's performance6 How does strategic HR planning benefit a firm6 Answer! $ompanies compete for human resources, and those that are capable of attracting, retaining, and motivating good employees are more likely to achieve and sustain a competitive advantage. (trategic HR planning helps a company be proactive. 3t permits e,plicit communication of company goals. 3t stimulates critical thinking and e,amination of corporate assumptions. 3t identifies FgapsF between the current situation and the future vision of the company, it encourages line management participation in HR functions. 3t enhances the identification of HR constraints and opportunities, and it helps create common bonds across the organi7ation. %iff! . &age Ref! 18', '18'' $hapter! 1 (kill! (ynthesis )*! 1, 4 AA$("! Analytic skills 1..) 5hat strategic choices does a company have regarding issues such as staffing and performance appraisals6 How does the concept of fit relate to decisions made about such HR strategies6 Answer! (ummary of suggested answer 8 K (taffing 8 internal vs. e,ternal recruitment, empowerment vs. centrali7ation of decision making, informal vs. formal employee sociali7ation. K &erformance appraisal 8 standard or customi7ed, development tool or control mechanism. An HR strategy's effect on firm performance is always dependent on how well it fits with other factors. +his fact leads to a simple yet powerful prediction for HR strategies that has been widely supported by research! Bit leads to better performance, and lack of fit creates inconsistencies that reduce performance. Bit refers to the compatibility between HR strategies and other important aspects of the organi7ation. %iff! . &age Ref! '48'9, '? $hapter! 1 (kill! (ynthesis )*! 4, 9 AA$("! Analytic skills

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1.4) ou are an HR manager working for a firm that is adhering to an overall cost leadership strategy. 5hat HR strategies would fit the strategy of the firm and help the firm gain a competitive advantage6 Answer! +he overall cost leadership strategy is aimed at gaining a competitive advantage through lower costs. $ost leadership re;uires aggressive construction of efficient plant facilities -which re;uires sustained capital investment), intense supervision of labor, vigorous pursuit of cost reductions, and tight control of distribution costs and overhead. )ow8cost firms tend to emphasi7e structured tasks and responsibilities, products designed for easy manufacture, and the need to predict costs with minimal margin of error. +he HR strategies that fit a low8cost orientation emphasi7e efficient, low8cost productionJ reinforce adherence to rational, highly structured procedures to minimi7e uncertaintyJ and discourage creativity and innovation -which may lead to costly e,perimentation and mistakes). %iff! . &age Ref! 'A $hapter! 1 (kill! (ynthesis )*! 4, 9 AA$("! Analytic skills

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