Question 51. Molly heads a large company that has just experienced a major brain drain.

51. Molly heads a large company that has just experienced a major brain drain.

She immediately increases compensation to new employees and gives each employee

with over 10 year experience an extra 3 days of paid vacation per year. This is an

example of:

a) strategic HR planning.

b) proactive HR strategy.

c) reactive HR strategy.

d) a knee-jerk reaction.

e) downsizing.

52. Managers who often depend on their personal views and experiences to solve

problems and make business decisions run the risk of:

a) alienating employees who want to contribute to the decision-making process.

b) undermining the goals of the company by becoming too independent.

c) taking on more responsibility than is necessary in a given business venture.

d) making assumptions about the business and economic environment that are

untrue, thereby threatening the profitability of the company.

e) threatening the profitability of the company by encouraging centralized decision-

making processes.

53. For the Strategic HR Planning Process to stimulate critical thinking:

a) it needs to create common bonds among the various work units in the organization.

b) it should focus on day-to-day management issues.

c) it cannot include specific operational planning but must remain at the conceptual

level.

d) it should manage work flows at the same time.

e) it must be a continuing, flexible process rather than a rigid procedure.

54. Creating a sense of community and shared values and goals among employees at a firm can often increase:

a) innovation and customer focus within the firm.

b) decentralization within the firm.

c) brain drain.

d) gaps between the current situation and the future goals.

e) the disinterest of line managers.

55. One challenge of Strategic HR Planning is:

a) getting employees to accept empowerment strategies.

b) decreasing job security while lowering labor costs.

c) being appropriately reactive to problems in the firm and external environment.

d) building HR strategies independent of the overall business strategy of the company.

e) developing strategies that offer a firm a sustained competitive advantage.

56. Ima is focusing on recruiting qualified employees for her growing company,

reviewing benefit plans in order to offer competitive compensation packages, and is

generally very involved with a number of urgent HR needs and “fire fighting.” Ima is

facing the strategic HR planning challenge of:

a) reinforcing the overall business strategy with her HR strategies.

b) excessive concentration on day-to-day problems.

c) coping with the external environment.

d) securing management commitment to her HR strategies.

e) none of the above

57. The challenges inherent in Strategic HR Planning include:

a) identifying HR constraints and limitations.

b) creating common bonds.

c) developing HR strategies suited to unique organizational features.

d) explicating company goals.

e) all of the above

58. Town House Publishing is implementing a new HR strategy, and to give it the best chance of succeeding, the HR department should:

a) increase diversity in the environment.

b) ensure managers’ commitment to the strategy.

c) create a back-up strategy to implement in case the initial strategy fails.

d) centralize management in order to communicate more effectively with employees.

e) maximize efforts to control day-to-day problems.

59. The acid test for an HR strategic plan is:

a) management’s commitment to it.

b) whether it makes a practical difference for the company.

c) how people oriented it is.

d) if it provides fast solutions.

e) if it is an emergent strategy rather than an intended strategy.

60. Intended strategies are _______ as opposed to emergent strategies, which are _______.

a) proactive / reactive

b) spontaneous / planned

c) fuzzy / detailed

d) based on company politics / based on company environment

e) necessary in large companies / necessary in smaller companies

61. Emergent strategies generally:

a) evolve and change as needs arise.

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