Strategic HR Function | Ch16 – Complete Test Bank 10e - Human Resource Management 10e | Test Bank with Answer Key by Raymond Noe by Raymond A. Noe. DOCX document preview.

Strategic HR Function | Ch16 – Complete Test Bank 10e

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Chapter 16

<Strategically Managing the HRM Function>

 


True / False Questions
 

1.

Transactional HRM activities provide the greatest strategic value to a firm. 
 
True    False

 

2.

Employee relations are part of traditional HRM activities. 
 
True    False

 

3.

A new trend that is consistent with the total quality management philosophy is HR executives moving to a customer-oriented approach while implementing the function. 
 
True    False

 

4.

The basic process of building HR strategy starts with scanning the internal environment. 
 
True    False

 

5.

"Business-linked" HR functions begin with identifying major people outcomes. 
 
True    False

 

6.

The analytic approach to evaluating HR effectiveness focuses exclusively on reviewing the various outcomes of the HRM functional areas. 
 
True    False

 

7.

The human resource accounting approach places a dollar value on human resources as if they were physical or financial resources. 
 
True    False

 

8.

Attempting to estimate the financial impact of substance abuse is an example of human resource accounting. 
 
True    False

 

9.

In a generic structure, the HRM function effectively consists of three divisions: the centers for expertise, the field generalists, and the service center. 
 
True    False

 

10.

In strategically designed HR structures, centers for expertise ensure that transactional activities are delivered throughout the organization. 
 
True    False

 

11.

Ensuring that the HRM systems enable the business to execute its strategy is one of the responsibilities of field generalists. 
 
True    False

 

12.

Service centers often leverage information technology to efficiently deliver employee services. 
 
True    False

 

13.

Redesigning the HRM process represents the internal approach to improving HRM effectiveness. 
 
True    False

 

14.

Lack of expertise among outsourced providers is a reason for declining levels of outsourcing in the last couple of years. 
 
True    False

 

15.

One of the main disadvantages of outsourced providers is their inability to learn unique innovations from one company and transfer them to another company. 
 
True    False

 

16.

Information technology applications are a prerequisite for HRM process redesign. 
 
True    False

 

17.

Applying new technology to an inefficient process will improve efficiency or effectiveness. 
 
True    False

 

18.

Reengineering cannot be used to review specific HRM practices such as work design or the performance management system. 
 
True    False

 

19.

A payroll check is issued based on a payment voucher that is generated from the general accounting ledger. 
 
True    False

 

20.

As part of the reengineering process, companies expand a redesigned process to the entire organization without testing it in a controlled setting. 
 
True    False

 

21.

New technologies are current applications of knowledge, procedures, and equipment that have not been used previously. 
 
True    False

 

22.

Decision support systems are designed to help employees solve problems by themselves. 
 
True    False

 

23.

E-HRM capabilities have allowed the focus of HRM functions to move from transactional to transformational concerns and activities. 
 
True    False

 

24.

The role of a strategic advisor of a chief human resource officer (CHRO) entails sharing the people expertise as part of the decision-making process. 
 
True    False

 

25.

Activities focused on identifying workforce morale issues pertain to the role of a chief human resource officer (CHRO) being the leader of the HR function. 
 
True    False

 

 


Multiple Choice Questions
 

26.

Which of the following HRM activities adds the lowest strategic value to a firm? 
 

A. 

Benefits administration

B. 

Performance management

C. 

Training and recruitment

D. 

Knowledge management

E. 

Management development

 

27.

_____ activities of HRM have the lowest strategic value in a firm. 
 

A. 

Transcendental

B. 

Transnational

C. 

Transformational

D. 

Traditional

E. 

Transactional

 

28.

Which of the following HRM activities adds the highest strategic value to a firm? 
 

A. 

Benefits administration

B. 

Employee service

C. 

Training and recruitment

D. 

Knowledge management

E. 

Record keeping

 

29.

Lucas, an HR executive, is responsible for the transactional HRM activities at Coldstore Inc. If he is the sole HR person handling transactional HR activities, which of the following is most likely his responsibility? 
 

A. 

Selection

B. 

Employee services

C. 

Recruitment

D. 

Performance management

E. 

Knowledge management

 

30.

Mel heads a team within the HR department that is responsible for the traditional HRM activities. Which of the following activities is Mel likely to be overseeing? 
 

A. 

Record keeping

B. 

Employee services

C. 

Employee relations

D. 

Benefits administration

E. 

Knowledge management

 

31.

Which of the following strategies includes activities such as selection and compensation? 
 

A. 

Transcendental

B. 

Transpersonal

C. 

Transformational

D. 

Traditional

E. 

Transactional

 

32.

For an HRM function to become truly strategic in its orientation, it must 
 

A. 

not view itself as a separate business entity.

B. 

base its strategies on serving external clients.

C. 

focus on process-oriented rather than people-oriented concerns.

D. 

adopt a customer-oriented approach.

E. 

spend most of its time and efforts on transactional activities.

 

33.

The first step toward customer orientation is 
 

A. 

identifying the needs of customers.

B. 

identifying the HRM functions required for customer orientation.

C. 

developing technologies that serve customers.

D. 

creating strategies that serve customers.

E. 

identifying the customers.

 

34.

Which of the following meet the needs of both the line managers and the employees by giving employees opportunities to ensure that they increase their human capital, thus providing increased value to the company? 
 

A. 

Selection systems

B. 

Training and development systems

C. 

Management development systems

D. 

Reward systems

E. 

Administrative systems

 

35.

_____ systems provide employees with an equitable return for their investment of skills and effort. 
 

A. 

Selection

B. 

Training and development

C. 

Performance management

D. 

Reward

E. 

Administrative

 

36.

Which of the following stages involves identifying an increasing immigrant population in a basic HR strategy process? 
 

A. 

Identifying people issues

B. 

Scanning the external environment

C. 

Developing the HR strategy

D. 

Identifying strategic business issues

E. 

Communicating the HR strategy

 

37.

Examining the need to develop new technologies is part of 
 

A. 

identifying people issues.

B. 

scanning the external environment.

C. 

developing the HR strategy.

D. 

identifying strategic business issues.

E. 

communicating the HR strategy.

 

38.

Since the HR strategy seeks to address business issues, involving _____ can increase the quality of information from which the HR strategy is created. 
 

A. 

competitors

B. 

suppliers

C. 

line executives

D. 

shareholders

E. 

customers

 

39.

_____ functions' articulation of people outcomes stems from an analysis of what their functions currently do. 
 

A. 

Business-linked

B. 

Technology-linked

C. 

Business-driven

D. 

HR-focused

E. 

Outcome-focused

 

40.

_____ functions have been clearly identified and articulated, and they have aligned their HR activities around people issues and outcomes, but not business issues and outcomes. 
 

A. 

Business-linked

B. 

Technology-linked

C. 

Business-driven

D. 

People-linked

E. 

Outcome-focused

 

41.

_____ functions begin with an assessment of what HR is doing and then identifying the major people outcomes they should focus on. 
 

A. 

Business-linked

B. 

HR-focused

C. 

People-linked

D. 

Business-driven

E. 

Outcome-focused

 

42.

Which HR strategy begins by identifying the major business needs and issues, considers how people fit in and what people outcomes are necessary, and builds HR systems focused on meeting those needs? 
 

A. 

HR-focused

B. 

People-linked

C. 

Business-linked

D. 

Business-driven

E. 

Outcome-focused

 

43.

Which of the following is true of the audit approach? 
 

A. 

It typically collects key indicators and customer satisfaction measures.

B. 

It primarily deals with the determination of the dollar value of a function.

C. 

It involves the use of statistics and finance and hence is more demanding than the analytic approach.

D. 

It uses utility analysis to estimate the financial impact of employee behavior.

E. 

It focuses on the processes involved in the HRM functional areas rather than the outcomes.

 

44.

The audit approach to evaluating the effectiveness of HR practices focuses on 
 

A. 

using analytical data to increase organizational effectiveness.

B. 

estimating the costs and benefits resulting from an HR practice.

C. 

reviewing the various outcomes of the HR functional area.

D. 

determining the dollar value of a program.

E. 

using utility analysis to estimate the financial impact of employee behavior.

 

45.

Minority turnover rate is a key indicator of the _____ function of HRM. 
 

A. 

training

B. 

succession planning

C. 

equal employment opportunity

D. 

employee appraisal and development

E. 

compensation

 

46.

Ratio of promotions to number of employees is a key indicator of the _____ function of HRM. 
 

A. 

training

B. 

succession planning

C. 

equal employment opportunity

D. 

employee appraisal and development

E. 

compensation

 

47.

Assistance provided to line managers in handling grievances is a customer satisfaction measure used in the _____ function of HRM. 
 

A. 

training

B. 

succession planning

C. 

equal employment opportunity

D. 

employee appraisal and development

E. 

labor relations

 

48.

Which of the following approaches focuses on determining whether the introduction of a program or practice has the intended effect? 
 

A. 

People approach

B. 

Audit approach

C. 

Balance-sheet approach

D. 

Analytic approach

E. 

Outcome approach

 

49.

The _____ approach attempts to place a dollar value on human resources as if they were physical resources. 
 

A. 

performance management

B. 

human resource accounting

C. 

knowledge management

D. 

utility analysis

E. 

audit

 

50.

The cost-benefit analysis approach that estimates the financial impact of employee behavior such as absenteeism is called _____. 
 

A. 

utility analysis

B. 

the valuation approach

C. 

human resource accounting

D. 

the audit approach

E. 

returns on employee investment

 

51.

Which of the following is human resource accounting likely to include? 
 

A. 

Turnover costs

B. 

Absenteeism

C. 

Capitalization of salary

D. 

The impact of positive employee attitude

E. 

Gains from selection programs

 

52.

Fouad works at Ante Inc. He is responsible for conducting cost-benefit analyses of different functions performed at Ante. If Fouad’s current task is to conduct a utility analysis, which of the following factors is he likely to asses through it? 
 

A. 

Capitalization of salary

B. 

Gains from selection programs

C. 

Returns on human assets

D. 

Net present value of expected wage payments

E. 

Level of job satisfaction among senior employees

 

53.

Which of the following is true about improving HRM effectiveness? 
 

A. 

Improvement often focuses on the effectiveness of each activity rather than on its efficiency.

B. 

There is often a push to eliminate the transformational work to free up time for transactional work.

C. 

Redesigning the structure focuses on information technology rather than reporting relationships.

D. 

Ways to improve effectiveness should be identified much before the strategic direction is established.

E. 

Focusing more on transformational work is likely to result in higher strategic value to the firm.

 

54.

Which of the following represents a traditional structure of HRM function? 
 

A. 

Functional directors reporting to the VP of HRM

B. 

Functional specialists acting as consultants in the development of systems

C. 

HRM generalists with dual reporting relationships

D. 

Individuals leveraging information technology

E. 

Generalists taking responsibility for helping line executives

 

55.

A _____ consists of functional specialists in the traditional areas of HRM such as recruitment and selection. 
 

A. 

center of expertise

B. 

field generalist center

C. 

service center

D. 

transactional center

E. 

business unit–wide center

 

56.

Trayvon, an HR personnel at Wood Inc., is a functional specialist dealing with compensation. He also works as a consultant in the development of systems and processes to be used at Wood. If Wood follows the recent generic structure of HRM function, Trayvon is likely to be part of a _____. 
 

A. 

center of expertise

B. 

field generalist center

C. 

service center

D. 

transactional center

E. 

business unit–wide center

 

57.

Which of the following represents the recent generic structure of HRM function? 
 

A. 

The VP of HRM reporting to the VP of finance and administration

B. 

Functions structured around labor relations

C. 

Functional directors reporting to the VP of HRM

D. 

Functions structured around staffing and appraisal

E. 

HRM generalists with dual reporting relationships

 

58.

Which of the following is true of field generalists within the recent generic HR structure? 
 

A. 

They are responsible for helping line executives strategically address people issues.

B. 

They are responsible for the traditional areas of HR.

C. 

They are responsible for the transactional HR activities.

D. 

They act as consultants in the development of state-of-the-art HR systems.

E. 

They often leverage information technology to efficiently deliver employee services.

 

59.

Maria works in the HR department at Cloud Zero Inc. She is responsible for helping the line executives strategically address people issues. She has a dual reporting relationship with Jose, the head of HRM, and Gigi, the head of the line business. Maria is likely to be 
 

A. 

part of the center of expertise.

B. 

a field generalist.

C. 

part of the service center.

D. 

part of the transactional center.

E. 

a functional specialist.

 

60.

Which of the following is true about the employees of the service center within the recent generic HR structure? 
 

A. 

They have dual reporting relationships to both the head of the line business and the head of HR.

B. 

They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation.

C. 

They consist of individuals who ensure that the transactional activities are delivered throughout the organization.

D. 

They act as consultants in the development of state-of-the-art HR systems and processes for use in the organization.

E. 

They focus on ensuring that the HRM systems enable the business to execute its strategy.

 

61.

The _____ consists of individuals who often leverage information technology to efficiently deliver employee services. 
 

A. 

field generalists' center

B. 

functional specialists' center

C. 

center for expertise

D. 

service center

E. 

labor relations center

 

62.

The generic structure of HRM functions is likely to result in 
 

A. 

functional specialists being distracted by transactional activities.

B. 

generalists focusing more on maintaining functional specializations.

C. 

service centers focusing on efficient delivery of basic services across units.

D. 

nondual reporting relationships among field generalists and HRM/line heads.

E. 

the responsibility of leveraging information technology shifting to functional specialists.

 

63.

_____ involves contracting with an outside domestic vendor to provide a product or service to a firm, as opposed to producing the product using employees within the firm. 
 

A. 

Offshoring

B. 

Importing

C. 

Outsourcing

D. 

Reshoring

E. 

Exporting

 

64.

A firm is most likely to outsource services when 
 

A. 

the cost of production is cheaper when done onshore.

B. 

the labor costs are high in the country where the outsourcing partner is.

C. 

the human capital is low in the country where the outsourcing partner is.

D. 

the effectiveness of services produced internally is less than that produced offshore.

E. 

the goods produced onshore are of better quality than those produced offshore.

 

65.

The most likely activities to be outsourced include _____ activities. 
 

A. 

transformational

B. 

transactional

C. 

traditional

D. 

training

E. 

transcendental

 

66.

A review of critical work processes and redesign to make them more efficient and able to deliver higher quality are called _____. 
 

A. 

transaction processing

B. 

reengineering

C. 

benchmarking

D. 

delayering

E. 

outsourcing

 

67.

Which of the following is true about the reengineering process? 
 

A. 

Information technology applications are mandatory for process redesign.

B. 

Reengineering cannot be used to review HRM department functions.

C. 

Applying new technology to an inefficient process will improve effectiveness.

D. 

Reengineering cannot be used to review a performance management system.

E. 

Product or service cost will increase if new technology is applied to an inefficient process.

 

68.

Which of the following is the initial step in the reengineering process? 
 

A. 

Interpreting the process

B. 

Auditing the process

C. 

Implementing the process

D. 

Redesigning the process

E. 

Identifying the process

 

69.

Which of the following corresponds to identifying the process stage of the reengineering process? 
 

A. 

Considering whether jobs can be combined

B. 

Developing models and choosing prototypes

C. 

Asking process owners to be part of the team

D. 

Considering the exceptions to be dealt with

E. 

Considering if all the steps in the process are necessary

 

70.

Which of the following corresponds to the stage of understanding the process during reengineering? 
 

A. 

Considering whether jobs can be combined

B. 

Developing models and choosing prototypes

C. 

Asking process owners to be part of the team

D. 

Including customers who see the outcome of the process as team members

E. 

Testing the process

 

71.

Analyzing data redundancy, special cases, and exceptions is part of _____ the process during reengineering. 
 

A. 

identifying

B. 

redesigning

C. 

understanding

D. 

implementing

E. 

testing

 

72.

Which of the following steps in reengineering involves conducting surveys? 
 

A. 

Identifying the process

B. 

Understanding the process

C. 

Redesigning the process

D. 

Implementing the process

E. 

Auditing the process

 

73.

_____ show the types of information used within a business function and the association among the different types of information. 
 

A. 

Focus groups

B. 

Scenario analyses

C. 

Cost-benefit analyses

D. 

Data-entity relationship diagrams

E. 

Data-flow diagrams

 

74.

Which of the following is true of cost-benefit analysis? 
 

A. 

It evaluates the design of data structure and content.

B. 

It is a review of how soon the system of software application will become outdated.

C. 

It shows the flow of data between departments.

D. 

It compares the expense of completing a task with and without an automated system.

E. 

It evaluates the frequency and criticality of automating specific tasks within a functional area.

 

75.

Which of the following steps in reengineering involves trying out the process by testing it in a limited, controlled setting? 
 

A. 

Identifying the process

B. 

Understanding the process

C. 

Redesigning the process

D. 

Implementing the process

E. 

Auditing the process

 

76.

_____ are problem-solving systems, which usually include a "what-if" feature that allows users to see how outcomes change when assumptions or data change. 
 

A. 

Relational databases

B. 

Decision support systems

C. 

Expert systems

D. 

Client service systems

E. 

Support networks

 

77.

_____ is a computer system incorporating the decision rules of people deemed to have specialized knowledge in a certain area. 
 

A. 

A relational database

B. 

A decision support system

C. 

An expert system

D. 

A client service system

E. 

A support network

 

78.

Technology has freed HR managers from day-to-day activities to focus more on _____ activities. 
 

A. 

transformational

B. 

traditional

C. 

transnational

D. 

transactional

E. 

transitional

 

79.

Knowing the company's strategic plan and understanding the company's financial capabilities is part of the _____ competence required by HR professionals. 
 

A. 

professional-technical knowledge

B. 

management of change processes

C. 

integration

D. 

business

E. 

performance

 

80.

Up-to-date knowledge on new selection techniques, performance appraisal methods, training programs, and incentive plans is part of the _____ competence required by HR professionals. 
 

A. 

professional-technical knowledge

B. 

management of change processes

C. 

integration

D. 

business

E. 

performance

 

81.

Diagnosing problems and evaluating results are part of the _____ competence required by HR professionals. 
 

A. 

professional-technical knowledge

B. 

management of change processes

C. 

integration

D. 

business

E. 

performance

 

82.

Which of the following competencies of HR professionals requires a generalist perspective, although specialist knowledge is necessary, in making decisions? 
 

A. 

Professional-technical knowledge

B. 

Management of change processes

C. 

Integration

D. 

Business

E. 

Performance

 

83.

Which of the following represents the role of a strategic advisor played by a chief human resource officer (CHRO)? 
 

A. 

Sharing the people expertise as part of the decision-making process

B. 

Helping the executive team see the importance of talent

C. 

Identifying present and future talent gaps and coming to own the talent agenda

D. 

Meeting with direct reports to provide guidance and check on progress

E. 

Ensuring that the HR function aligns its activities toward the needs of the business

 

84.

A role of the chief human resource officer (CHRO) that focuses on resolving interpersonal or political conflicts among team members is that of a _____. 
 

A. 

liaison to the board

B. 

talent architect

C. 

counselor

D. 

strategic advisor

E. 

representative of the firm

 

85.

Mei works as chief human resource officer (CHRO) for an IT firm. When she takes up the function of performance and behavioral counseling, she is playing the role of a _____. 
 

A. 

liaison to the board

B. 

talent architect

C. 

confidante

D. 

strategic advisor

E. 

representative of the firm

 

86.

The _____ is the role of a chief human resource officer (CHRO) that focuses on working with HR team members regarding the development, design, and delivery of HR services. 
 

A. 

leader of the HR function

B. 

HR representative of the firm

C. 

strategic HR advisor for the board

D. 

workforce sensor

E. 

talent architect of HR

 

87.

Chris is the chief human resource officer (CHRO) of ProPel Inc. In performing the tasks of aligning the HR activities with the needs of the business, Chris is performing the role of a(n) _____. 
 

A. 

workforce sensor

B. 

HR representative of the firm

C. 

strategic HR advisor for the board

D. 

leader of the HR function

E. 

talent architect of HR

 

88.

Which of the following roles of a chief human resource officer (CHRO) entails discussions on executive compensation and CEO performance? 
 

A. 

Leader of the HR function

B. 

Liaison to the board

C. 

Strategic advisor

D. 

Workforce sensor

E. 

Talent architect

 

89.

Which of the following roles of a chief human resource officer (CHRO) deals with identifying the morale or motivational issues with the employees? 
 

A. 

Leader of the HR function

B. 

Representative of the firm

C. 

Strategic advisor

D. 

Workforce sensor

E. 

Talent architect

 

90.

Raulena, an HR manager at Dock Inc., has been promoted as the chief human resource officer (CHRO). When she engages in discussions on the performance of members of the executive leadership team, she is playing the role of a _____. 
 

A. 

representative of the firm

B. 

liaison to the board

C. 

leader of the HR function

D. 

strategic advisor

E. 

workforce sensor

 

 


Essay Questions
 

91.

Discuss the three categories of HRM activities in terms of their strategic value to a firm. 
 


 


 


 

 

92.

Identify the steps involved in the basic process of building an HR strategy. 
 


 


 


 

 

93.

The variety of ways in which HR strategies can be generated results in various levels of linkage with the business. Discuss the four categories of this relationship. 
 


 


 


 

 

94.

Discuss the audit and analytic approaches to evaluating the effectiveness of HRM practices. 
 


 


 


 

 

95.

Explain how HRM functions are divided in firms that follow the recent generic structure of HRM. 
 


 


 


 

 

96.

Discuss how outsourcing is being used to increase the effectiveness of HR. 
 


 


 


 

 

97.

Discuss the steps involved in the reengineering process. 
 


 


 


 

 

98.

Discuss the three broad functions that technology has been used for in HRM. 
 


 


 


 

 

99.

Discuss the four competencies that HR professionals require to become partners in the strategic management process. 
 


 


 


 

 

100.

List the roles of a chief human resource officer (CHRO). 
 


 


 


 

 


Document Information

Document Type:
DOCX
Chapter Number:
16
Created Date:
Aug 21, 2025
Chapter Name:
Chapter 16 Strategically Managing the HRM Function
Author:
Raymond A. Noe

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