Exam Prep Strategic Human Resource Management Chapter 11 2e

Chapter 11 Test Bank

Twenty Questions. Twenty Multiple Choice Questions. Ten Matching Exercise

Twenty Questions

1. A mission statement is the foundation for a realistic and achievable organizational

goal. p. 263

1. A succession plan identifies replacements for key organizational positions. p. 273
2. A strategic goal of any health care organization is the quality performance of the

employees. p. 262

1. The Institute of Medicine defines quality in health care as patient services current

with scientific knowledge that result in a health outcome that is dictated by the patient. p. 262 desired health outcome.

1. The vision statement focuses on how the organization is currently operating. p 263
2. The Mayo Clinic will provide the best care to every patient, every day, through

integrated clinical practice, education and research is an example of a healthcare vision statement. p. 263 mission statement

1. The departments of each organization must develop a mission and vision statement that complements the corporate mission and vision statement. p. 264
2. Financial objectives are leading indicators of an organization’s performance. They measure what the organization has already accomplished. p. 264 lagging indicators
3. Increase market presence 10% by 2013 and (2) acquire one health care agency by 2015 are examples of strategic objectives. p. 265
4. ‘Dana-Farber Cancer Institute’s ultimate goal is the eradication of cancer, AIDS,

and related diseases and the fear that they engender’ is an example of a mission statement. p. 264 vision statement

1. The macroenvironment is composed of the following influences: economic, technologic,

sociocultural, governmental, and legal. p. 266

1. Sociocultural is the most important macroenvironmental factor in determining a strategy. p. 266
2. According to Michael E. Porter, the attractiveness of an industry, or how profitable an

industry can be for a company, is the result of five competitive pressures in the market: rivalry or competition, buyers of the product or service, potential new organizations entering into the industry, suppliers of resources needed by the organization, and substitute products or alternative services that a customer can choose. p. 266

1. Barriers to entry is the strongest force of the five forces. p.266 Competition
2. Barriers to entry typically include high capital requirements, high level of regulation, specialized knowledge needed to enter the industry, or the power of existing competition already present in the market. p. 266
3. A SWOT analysis is an external analysis of a company’s current situation. p. 268 External and internal
4. Once the strategy is executed, the final phase of strategic management is strategy evaluation by reviewing financial and strategic objectives. Strategy evaluation is the appraisal of plans and their results. p. 269
5. Workforce planning is an annual process of planning an organization’s future job openings at all levels. p.261 could also be biannual
6. Examples of human resource (HR) metrics include turnover rates of employees, productivity rates of employees and social networking rates of senior employees. p.262
7. Part of strategic forecasting is the assessment of both internal and external labor supply. p. 271

TWENTY MULTIPLE CHOICE QUESTIONS

1. Which of these statements represents the Institute of Medicine’s definition of ‘quality’ in healthcare?
2. The performance of the employee
3. Services current with scientific knowledge
4. A desired health outcome
5. All are included in the IOM definition p. 262
6. The first step of creating a strategy is:
7. Developing mission and vision statements p. 261
8. Setting performance objectives
9. An action plan to accomplish the strategy
10. Evaluation of the activities.
11. The purpose, specific business, geographic location and customer base describe what in an organization?
12. Vision statement
13. Financial objectives
14. Strategic objectives
15. Mission statement p. 261-262
16. A vision statement is:
17. The foundation of a realistic and achievable goal.
18. It is inspiring
19. It is futuristic
20. B and C p. 263
21. ‘Dana-Farber Cancer Institute’s ultimate goal is the eradication of cancer, AIDS,

and related diseases and the fear that they engender’ is what type of statement?

1. Mission statement
2. Vision statement p. 264
3. Goal statement
4. Action plan
5. What is a balanced scorecard approach?
6. An assessment that focuses on the financial activity of an organization
7. An assessment that focuses on the customer management of an organization
8. An assessment that focuses on setting both financial and performance objectives p. 265
9. An assessment that focuses on business operations of an organization
10. ‘Increase annual revenues by 18%’ is an example of:
11. Strategic objectives
12. Human resource objectives
13. Management objectives
14. Financial objectives p. 264
15. What do strategic objectives measure?
16. The past performance of an organization
17. Annual revenues of an organization
18. Human resource activities of an organization
19. The future action of an organization p. 265
20. How can economic influences affect the healthcare industry?
21. High unemployment rates can increase the number of uninsured individuals who lost their employee insurance p. 265
22. An economic downturn results in lower emergency room visits for routine care
23. A positive economic environment results in higher emergency room visits for routine care.
24. None are correct
25. Which of these macroenvironmental influences is the most powerful over a healthcare organization?
26. Technology
27. Political and legal: heavily regulated industry
28. Sociocultural: consumer preference dictate services
29. B and C p. 265
30. Why should organizations perform a Porter’s Five Force Analysis?
31. It determines how profitable an industry can be
32. It determines the power level of each force which helps the organization address that power level
33. It determines whether an organization should stay in an industry or enter a new industry
34. All are correct p. 266
35. What is an example of a supplier force for the healthcare industry in Porter’s Five Forces?
36. A supplier of medical equipment
37. A labor supplier such as nursing or physicians
38. High capital requirements
39. A and B p. 267
40. To execute a strategy successfully, which of the following must occur:
41. Skilled and knowledgeable employees must be present
42. Adequate financial resources
43. Employee motivation that is tied to the strategy
44. All are correct p. 269
45. What are characteristics of a high performance work system in the healthcare system?
46. Employee rewards linked to healthcare outcomes
47. Employee understanding of their role in the organization
48. Technologically current
49. All are correct p. 269
50. What is the importance of HR metrics analysis?
51. Recruitment and selection rates can determine the success of these processes in finding qualified employees p. 271
52. Employee turnover rates can assess how large the organization is growing.
53. Leaves of absence rates can assess how many employees need permanent replacements
54. None are correct
55. What are strategies to deal with workforce shortages?
56. Redesign work processes and use technology to increase efficiency and employee satisfaction.
57. Reintroduce a bureaucratic organizational structure with strict guidelines
58. Attract a new generation of workers by introducing a flexible organizational culture.
59. A and C p. 270
60. Why are labor expenses so high in healthcare?
61. There are specialized employees such as physicians who have high salaries.
62. It is a service industry which means there are high labor costs
63. All healthcare employees have very high salaries
64. A and B p. 271
65. What is the purpose of the labor budget?
66. It predicts staffing levels
67. It predicts salaried and wage employees
68. It predicts overtime and employee benefits
69. All are correct p. 272
70. What are benefits of outsourcing labor?
71. It can be a cost savings because normally organizations do not provide employee benefits to an outsourced position p. 272
72. It creates loyalty of the outsourced individual to the organization
73. The organization can hire more qualified individuals
74. None of these are correct

10 Matching Exercise

A. _______________are consumer preferences based on lifestyles and values

B. _________________include age, race, income levels, ethnicity, geographic location,

education, family size, and life expectancies

C. A ______________is both an external and an internal analysis of a company’s current situation.

D. Expansion of patient services is an example of a(n)____________ for a healthcare organization.

E. Once the strategy is executed, the final phase of strategic management is _________________ by reviewing financial and strategic objectives

F. Employee dissatisfaction, family illness are examples of this type of HR Metric.

G. ____________focus on market standing and improving competitive vitality

H.A ______________is management’s plan for operating the organization over the long term.

I. A _________________is performed to assess the industry’s conditions to determine what strategy

can be implemented to give an organization a competitive advantage.

J. This type of planning is a biannual or annual method of determining future job openings