Strategic HRM Principles Chapter 1 nan Test Bank

Chapter 1: Effective strategic human resource management: Principles and processes

TRUE/FALSE QUESTIONS

1. When an organisation has a competitive advantage it finds it difficult to maintain customers, it should increase its market share and achieve its strategic goals.

a. True

b. False

LO: 4

Difficulty: 1

Topic: Strategic HRM

AACSB: 3

2. Organisational strategy is the result of organisational decisions about the goals, purpose, objectives and directions of the company and the way to realise these.

a. True

b. False

LO: 5

Difficulty: 2

Topic: Strategic HRM

AACSB: 3

3. Effective HRM requires all of the following processes: environmental scanning, problem and opportunity identification, implementation and evaluation in relation to core activities.

a. True

b. False

LO: 5

Difficulty: 1

Topic: Nature, origins and implications of HRM

AACSB: 3

4. Jackson and Schuler (1995) suggest that a variety of macro-level environmental characteristics influence the adoption of particular organisational HRM practices, policies and philosophies.

a. True

b. False

LO: 5

Difficulty: 2

Topic: Models of HRM

AACSB: 3

5. Klatt, Murdick and Schuster’s (1978) HRM model does not advocate taking a systems approach to human resource planning and development.

a. True

b. False

LO: 5

Difficulty: 2

Topic: Models of HRM

AACSB: 3

6. Tsui’s multiple constituency model recognises that strategies adopted by an organisation may not satisfy all of its stakeholders.

a. True

b. False

LO: 6

Difficulty: 1

Topic: Models of HRM

AACSB: 3

7. The co-adaptive human resource decision making (CHRM) framework does not consider environment factors beyond the organisation's control.

a. True

b. False

LO: 8

Difficulty: 2

Topic: The CHRM model

AACSB: 5

8. The internal environment of a firm includes organisational ownership, size, strategy, structure, culture, history and resources.

a. True

b. False

LO: 1

Difficulty: 2

Topic: The CHRM model

AACSB: 3

9. HRM practices tend to become more formal as organisation size increases.

a. True

b. False

LO: 5

Difficulty: 1

Topic: The CHRM model

AACSB: 3

10. Gap analysis in HR involves looking at what the organisation is currently doing but not what it needs to be.

a. True

b. False

LO: 6

Difficulty: 1

Topic: The CHRM model

AACSB: 3

MULTIPLE-CHOICE QUESTIONS

1. HRM involves the activities needed to:

a. create knowledge about why people work in a certain way

b. monitor, motivate, plan and evaluate people

c. manage and be responsible for organisations financial resources

d. manage the size, and overall structure of structure of the organisation

LO: 2

Difficulty: 2

Topic: Nature, origins and implications of HRM

AACSB: 8

2. The three types of capital that are associated with organisations having a competitive advantage are:

a. cultural capital, finance capital, management capital

b. human capital, management capital, organisational capital

c. societal capital, human resource capital, cultural capital

d. social capital, cultural capital, human capital

LO: 1

Difficulty: 2

Topic: Nature, origins and implications of HRM

AACSB: 6

3. Which paradigms or assumptions changed the emphasis from production and efficiency to focus on the importance of both people and production concerns in the organisation?

a. the human relations movement and behavioural sciences approach

b. the scientific management perspective and human relations movement

c. the behavioural sciences approach and the scientific management perspective

d. the human relations movement, the behavioural sciences approach and the scientific management perspective

LO: 1

Difficulty: 2

Topic: Nature, origins and implications of HRM

AACSB: 5

4. In which of the following philosophies would the manager concentrate on closely monitoring and controlling employees?

a. the traditional or transactional philosophy

b. the paternalistic philosophy

c. the commitment philosophy

d. the collaborative philosophy

LO: 1

Difficulty: 1

Topic: Nature, origins and implications of HRM

AACSB: 3

5. The resource-based view (RBV) of HRM proposes that:

a. people are unique and a strong source of competitive advantage

b. the routines or learning mechanisms in the organisation do not contribute to competitive advantage

c. the knowledge and behaviours of people do not contribute to competitive advantage

d. raw materials used in production are a strong source of competitive advantage

LO: 2

Difficulty: 1

Topic: Nature, origins and implications of HRM

AACSB: 7

6. Strategy formulation involves:

a. establishing the organisation’s mission, vision, strategy, goals and values

b. conducting a SWOT analysis of the organisation’s external and internal environments

c. developing three levels of strategy—corporate, business and functional

d. both a and b

LO: 9

Difficulty: 2

Topic: Nature, origins and implications of HRM

AACSB: 3

7. Which of the following is NOT a limitation of the resource-based view of the firm?

a. it tends to be overly rationalistic

b. it tends to assume organisational discretion in HR practices

c. it recognises the value of subcontracts, temporary workers and consultants

d. it is based on unitarist principles

LO: 4

Difficulty: 2

Topic: Nature, origins and implications of HRM

AACSB: 3

8. HRM and SHRM each have a different focus and connection to the organisation’s overall strategy. These are:

a. HRM is reactive and follows organisational strategy while SHRM is proactive and informs organisational strategy

b. HRM is proactive and future-focused while SHRM is reactive and short-term focused

c. HRM is reactive and informs organisational strategy while SHRM is proactive and follows organisational strategy

d. HRM is proactive and short-term focused while SHRM is reactive and future-focused

LO: 4

Difficulty: 2

Topic: Strategic HRM

AACSB: 8

9. Jackson and Schuler’s (1995) model of HRM outlines the internal and external contexts of organisations. Elements within the external context of the organisation are:

a. technology, size, laws and regulations, culture and strategy

b. culture, politics, unions, structure and life cycle

c. laws and regulations, culture, politics and industry characteristics

d. labour markets, unions, technology and structure

LO: 4

Difficulty: 2

Topic: Models of SHRM

AACSB: 6

10. Klatt, Murdick, and Schuster’s (1978) model represents:

a. an integrative framework for understanding HRM in context

b. a framework for analysing HRM and industrial relations at the level of the firm

c. a human resource system in the business environment

d. a system of strategic human resource management

LO: 4

Difficulty: 1

Topic: Models of SHRM

AACSB: 6

11. Lundy and Cowling’s (1996) model views strategic HRM as:

a. a decision-making process

b. not necessary to ensure organisational success

c. a process that does not add value to organisations

d. a means of evaluating the effectiveness of HR practices in an organisation

LO: 4

Difficulty: 2

Topic: Models of SHRM

AACSB: 6

12. Tsui’s multiple constituency model (1990) recognises that:

a. an organisation has a number of constituents (or stakeholders) and thus when an organisation takes a course of action that satisfies one constituent it is possible that other constituents will not be satisfied

b. an individual has a number of skills and aligns these with the organisations key strategies to allow the best course of action to take place

c. employees are the way of the future and creating a work environment that impacts negatively on this stakeholder can affect worklife balance

d. both a and c

LO: 7

Difficulty: 3

Topic: Models of SHRM

AACSB: 8

13. For HRM to be effective it must:

a. take a strategic approach to people management and align policies and practices with the organisational strategy

b. consider the impact on stakeholders and use intelligent decision-making processes

c. balance the needs of both the employee and the organisation so that each benefits

d. all of the above

LO: 5

Difficulty: 1

Topic: Strategic HRM

AACSB: 3

14. The balanced scorecard approach developed by Kaplan and Norton (1996):

a. takes into account tangible and intangible assets to assess organisational performance

b. examines the organisation’s financial statements to assess past, present and future performance

c. uses the expectations and perspectives of all stakeholders to make financial decisions

d. translates the organisation’s vision, mission, value and strategy into a set of performance measures

LO: 6

Difficulty: 2

Topic: Models of SHRM

AACSB: 3

15. The third step of the CHRM application tool is to verify or falsify potential problems or opportunities. Which of the following is consistent with this step?

a. reviewing problems faced by competitor organisations

b. checking for evidence that supports what you expect

c. focusing only on the opportunities for which you have strong information

d. identifying all potential stakeholders

LO: 8

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 8

16. During the fourth step of the CHRM application tool, when establishing success criteria, Rausch (2003) suggested one factor that is important for effective managerial decisions is:

a. to communicate the plan clearly to the employees

b. to gain acceptance of the plan from all stakeholders participating in the plan

c. to achieve coordination of all employees

d. to ensure employees are satisfied with the decision

LO: 9

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 7

17. The fifth step of the CHRM application tool is to implement the plan. During the implementation of a complex high risk plan employees will:

a. most likely be highly resistant to the plan

b. very easily adapt to the changes

c. readily accept the decision to change

d. make threats to management and leave the organisation

LO: 9

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 7

18. The CHRM Application Tool provides techniques and frameworks for making strategic decisions in an organisation. Which of the following is not described by the tool?

a. the people and organisational practices and policies

b. the results of a needs assessment to establish the resources required to implement a plan

c. the context or environment in which the organisation operates

d. the opportunities and threats in the internal and external environment

LO: 9

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 7

19. In the context of the CHRM application tool, which of the following best describes the interaction between the internal and external environments?

a. the internal environment influences what happens in the external environment

b. the external environment influences what happens in the internal environment

c. there is a two-way interaction between the internal and external environments

d. there is no interaction between the internal and external environments

LO: 8

Difficulty: 1

Topic: The CHRM model and decision-making framework

AACSB: 7

20. The fourth step of the CHRM application tool is to devise plan and success criteria. When evaluating alternatives to deal with the problem or realise an opportunity the organisation should:

a. assess the suitability, accountability and feasibility of the alternative

b. assess the accountability, acceptability and feasibility of the alternative

c. assess the suitability, acceptability and feasibility of the alternative

d. assess the accountability, suitability and acceptability of the alternative

LO: 8

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 8

SHORT ANSWER QUESTIONS

1. List the negative outcomes of ineffective human resource practices in an organisation.

LO: 2

Difficulty: 1

Topic: Nature, origins and implications of HRM

AACSB: 3

2. What are the major limitations of the HRM models of Jackson and Schuler (1995), Kochan and Barocci (1985), Klatt, Murdick, and Schuster (1978) and Lundy and Cowling (1996)?

LO: 4

Difficulty: 2

Topic: Strategic HRM

AACSB: 3

3. Describe the steps of the SHRM Application Tool.

LO: 5

Difficulty: 1

Topic: Models of SHRM

AACSB: 8

4. In the context of dynamic organisations the need for improving performance and stakeholder wellbeing challenges practitioners for ways to resolve issues. Explain the steps associated with the Co-adaptive Human Resource Management (CHRM) framework and provide three reasons that explain how an organisation would benefit from using such a framework.

LO: 8

Difficulty: 2

Topic: The CHRM model and decision-making framework

AACSB: 8

ESSAY QUESTION

1. Outline the key activities that you will have to understand in order to develop effective HR policies and practices for the organisation.

LO: 9

Difficulty: 2

Topic: Strategic HRM

AACSB: 3