Test Bank for Strategic Human Resources Planning, 7th Edition By Belcourt, Podolosky

Test Bank for Strategic Human Resources Planning, 7th Edition By Belcourt, Podolosky.

TABLE OF CONTENTS Part 1: Human Resources Management in Perspective Chapter 1: The World of Human Resources Management: ............................................................ 1 Chapter 2: Strategy and Human Resources Planning ...................................................................... 39

Part 2: Meeting Human Resources Requirements Chapter 3: Equity and Diversity in Human Resources Management .............................................. 87 Chapter 4: Job Analysis and Work Design ..................................................................................... 127

Part 3: Developing Effectiveness in Human Resources Chapter 5: Expanding the Talent Pool: Recruitment and Careers ................................................... 162 Chapter 6: Employee Selection ....................................................................................................... 208 Chapter 7: Training and Development ............................................................................................ 245 Chapter 8: Performance Management ............................................................................................. 284

Part 4: Implementing Compensation and Security Chapter 9: Managing Compensation ............................................................................................... 325 Chapter 10: Pay for Performance: Incentive Rewards .................................................................... 355 Chapter 11: Employee Benefits ....................................................................................................... 385 Chapter 12 Promoting Safety and Health ........................................................................................ 416

Part 5: Enhancing Employee–Management Relations Chapter 13 Employee Rights and Discipline................................................................................... 451 Chapter 14 The Dynamics of Labour Relations .............................................................................. 483

Part 6: Expanding Human Resources Management Relations Chapter 15 International Human Resources Management Horizons .............................................. 516

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PREFACE ABOUT THE NELSON EDUCATION TEACHING ADVANTAGE (NETA) In most post-secondary courses, a large percentage of student assessment is based on multiple-choice testing.

Many instructors use multiple-choice reluctantly, believing that it is a methodology best used for testing what a student remembers rather than what she or he has learned.

Nelson Education Ltd. understands that a good quality multiple-choice test bank can provide the means to measure higher-level thinking skills as well as recall. Recognizing the importance of multiple-choice testing in today’s classroom, we have created NETA—the Nelson Education Teaching Advantage program—to ensure the value of our high quality test banks.

The NETA program was created in partnership with David DiBattista, a 3M National Teaching Fellow, professor of psychology at Brock University, and researcher in the area of multiplechoice testing. NETA ensures that subject-matter experts who author test banks have had training in two areas: avoiding common errors in test construction, and developing multiple-choice test questions that “get beyond remembering” to assess higher-level thinking.

All NETA test banks include David DiBattista’s guide for instructors, “Multiple Choice Tests: Getting Beyond Remembering.” This guide has been designed to assist you in using Nelson test banks to achieve your desired outcomes in your course.

The Test Bank for Strategic Human Resources Planning, Seventh Edition by Monica Belcourt has been authored by Catherine Fitzgerald, Okanagan College. The multiple-choice questions were written and edited to conform to NETA guidelines, which emphasize the development of higher-order thinking and the effective construction of questions. NETA principles of question construction help eliminate ambiguity, arguable answers, guesswork, and unconscious cues to test-savvy students, resulting in a test that accurately reflects student understanding. The Test Bank offers over 1600 questions including ~855 multiple choice questions, ~630 true/false questions, and ~175 short answer questions.

In addition to providing a variety of questions related to each chapter objective, this test bank also employs a series of tags that can help design effective, balanced tests by the measure of course outcomes. All of the tags are included with the question in the test bank. These tags include: • • • • •

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ANS: The correct answer. (Suggested answers are provided for the essay questions.)

PTS: The number of points an instructor can assign for each question. The default is 1 point.

DIF: The difficulty level assigned to each question.

REF: Linked to the corresponding page number.

BLM: The category from Bloom’s taxonomy for learning (Remember or Higher Order). This category is included to assist instructors in assessing student’s higher-order cognitive skills.

1. In order to achieve success implementing change, what two concepts do HR managers need to match together? a. motivation and hiring practices b. position modules and salary theories c. principles and salary theories d.

HRM practices and organizational goals ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

2. What type of strategy is an agreed-upon plan that is arrived at through formal planning processes? a. discarded b. emergent c. realized d. intended ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

3. Managers in a department store have decided that the shoe department is not a profitable part of the store and that it would be better suited to being an independent organization that rented space from the store. What type of strategy is demonstrated if the shoe department is separated from the department store into a separate entity? a. merger b. divestiture c. bankruptcy d. growth ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 4. What type of corporate objective is represented by the ratio “return on investment?” a. soft b. short-term c. long-term d. hard ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 5. What are the two primary types of inputs that influence an organization’s competitive advantage? a. profitability and human capital b. reputation and superior performance c. culture and distinct advantage d. capabilities and tangible assets ANSWER: d POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 6. What type of competency is represented by resources and capabilities that serve as a firm’s competitive advantage? a. core b. central c. cultural d. collective ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

7. Which of the following represents either a growth or a stability strategy? a. merger b. turnaround c. bankruptcy d. liquidation ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

8. If employees understand the behaviours and performance levels that will be rewarded on the job, what type of benefit is produced that will help managers formulate a strategy? a. clarity b. incentives c. change d. efficiency ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

9. What is a tangible corporate goal that represents a point of view about the competitive positions a company hopes to build over a decade? a. strategic plan b. strategic intent c. strategic implementation d. strategic formulation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 1.1 QUESTION TYPE: Multiple Choice vi

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

10. If a formulated plan is called an intended strategy, what strategy depicts the implemented plan? a. intentional b. ideal c. realized d. predicted ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

11. If an organization fails to engage in strategic planning, it will be burdened by many challenges. Which of the following is NOT one of these challenges? a. failure to involve senior managers and executives so that there is no buy-in b. failure to use the plan as the guide to make decisions and evaluate performance c. failure to align incentives and other HR policies to the achievement of strategy d. failure to incorporate information generated from 360-degree reviews ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

12. Which strategy is synonymous with logical incrementalism? a. intended b. emergent c. discarded d. realized ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

13. What strategic concept demonstrates those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals? a. strategy implementation b. strategy formulation c. strategic planning d. strategic intent ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: HR Planning Notebook 1.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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14. Which of the following represents a restructuring strategy? a. merger b. liquidation c. incremental d. joint venture ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 15. McDonald’s incorporated many unique strategies to turn the restaurant around. Which of the following is part of a different restaurant’s corporate strategy? a. focusing on healthy food choices b. allowing free refills for all beverages c. introducing new foods that reflected regional food interests d. opening stores in non-traditional locations ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 1.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

16. If a firm is applying a growth strategy, it will typically be focused on certain HR practices. Which of the following activities represent strategies that are NOT a growth strategy? a. reduced training b. aggressive recruitment c. rapidly rising wages d. increased job creation ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

17. How is the successful implementation of strategy judged? a. by whether it satisfies top management’s expectations b. by whether it realizes organizational goals and objectives c. by whether it engages employees to do their best d. by whether it meets financial targets and ratios ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM viii

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18. Salad-O is a fast food outlet located in a shopping mall that tries to compete with Greens-Away by offering gourmet salad dressings. Which of Porter’s competitive strategies is Salad-O applying? a. low-cost provider b. broad differentiation c. market niche with lower cost d. market niche with differentiation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 19. “Our company is committed to honesty and improving society.” What type of statement does this quote describe? a. attitude b. policy c. strategic d. value ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

20. Some organizations drift aimlessly during times of economic turmoil. What might be a concrete reason for an organization to be so unfocused? a.

The organization did not produce a vision statement to unite its employees. b.

The organization did not complete its long-term plan for the next three to five years. c.

The organization did not conduct a succession plan for its older managers. d.

The organization did not build a culture that supported work–life balance.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

21. What is the process called that formulates organizational goals, objectives, action plans, and the mission statement? a. formulation b. analysis c. strategy d. planning ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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22. According to your textbook, what are the three types of corporate strategies? a. liquidation, bankruptcy, and growth b. mergers, acquisitions, and joint ventures c. growth, restructuring, and stability d. turnaround, bankruptcy, and divestiture ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 23. In order for senior managers to determine who the company’s customers are, where they are located, and what product or service characteristics the customers value, the managers must develop a statement of the fundamental benefits of the products or services being offered in the marketplace. What is this statement known as? a. value proposition b. vision statement c. value statement d. vision proposition ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

24. Southwest Airlines has used multiple strategies since its inception in 1974. Why has its current focus on organizational culture been such an effective strategy for the airline? a.

Southwest’s culture is variable and substitutable like the strategies it applies. b.

Southwest’s culture is inspirational so that its employees achieve greater work–life balance. c.

Southwest’s culture is unique, and strategic mimicry by other airlines is not possible. d.

Southwest’s culture is responsible for its low-cost, low-price, no-frills flights strategy.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 1.5 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

25. Which concept refers to a list that produces the sequential steps required to get the job done? a. principles b. procedures c. program d. policies ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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26. Which of the following is typical of an organization that follows Porter’s best-cost provider strategy? a. a hamburger served by a waiter on a plate with potato salad b. a hamburger and fries in a paper bag served by the drive-through operator c. a hamburger and baked potato placed on a tray and served by the takeout counter clerk d. a hamburger and baby greens salad in a plastic bubble package bought at the grocery store ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

27. An organization is influenced by a variety of elements from the external environment. On the other hand, which of the following appears to be derived from the internal environment of the organization? a. technology b. sociocultural factors c.

HR diversity management policy d. changing demographics ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

28. Rand Solar Technologies Ltd. is planning its future. In the process, the senior leadership team is preparing the organization’s objectives, competitive scopes, and action plans to achieve its goals. What is the leadership team doing? a. conducting a SWOT analysis b. identifying the organization’s competitive advantage c. formulating the organization’s strategy d. applying principles of strategic management ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

29. What type of strategy changes incrementally due to environmental changes? a. intended b. discarded c. realized d. emergent ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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30. The President and CEO of Walmart outlined the company’s overall strategy and all its business interests. The focus of the strategy was on long-term growth and survival. What type of strategy is Walmart adopting? a. corporate b. business c. international d. expansion ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 31. The senior leadership team at Walmart outlined the company’s corporate strategy, which included plans for increasing its products and services. What type of strategy is Walmart adopting? a. restructuring b. divestiture c. business d. growth ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 32. The owner of Whites Barbecues outlined the company’s strategy. The focus of the strategy was concerned with how to build the company’s competitive position. What type of strategy is Whites Barbecues adopting? a. corporate b. business c. international d. expansion ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 33. On the Quality Greens Farm Market website are the words “to make healthy, locally grown farm food products accessible to lower-income residents.” What is this an example of? a. mission b. vision c. values d. objectives ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

34. What type of objective would include being ethical and environmentally responsible? a. long-term b. short-term c. soft d. hard xii

ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

35. Which of the following best describes the core values of a company? a. the organization’s long-term plan b. the basic direction of the organization c. the basic beliefs that govern workers’ behaviour in an organization d. the reason an organization exists ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

36. Cupcasions is a small bakery that crafts and sells gourmet cupcakes and special-occasion cakes. To achieve its business objectives, the managers scan their external environment for threats and opportunities so they can make proactive changes to their strategic plan. What external factors would they scan for? a. tangible assets b. business processes c. changing demographics d. market leadership ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

37. What is the entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals? a. strategic plan b. strategic intent c. strategic implementation d. strategic formulation ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: HR Planning Notebook 1.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

38. Pacific Kayaks Ltd. provides ocean kayaks with distinctive qualities valued by customers. The company attracts customers because it sets itself apart from the competition. It is successful because it has access to leading scientific research on polyethylene, a very abrasion-resistant material used in the construction of its kayaks. The company also richard@qwconsultancy.com

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has a strong sales and marketing team and a corporate reputation for quality and innovation. What competitive strategy is Pacific Kayaks Ltd. using? a. low-cost provider b. differentiation c. market niche with lower cost d. focus strategy ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

39. RightWay Fencing Ltd. monitors the technological and economic trends in its external environment as well as its internal assets and resource capabilities. What is it most likely performing? a. a competitive environment scan b. an environment scan c. a strategic plan d. a SWOT analysis ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

40. SunCore Consulting monitors demographic and labour market trends. It is most likely performing which of the following? a. a human resource scan b. an environment scan c. a strategic analysis d. a labour market analysis ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

41. The senior leadership team at Price Warehouse have decided on the competitive position Price Warehouse wants to achieve. Price Warehouse is well positioned to compete for the largest number of customers through the lowest prices. What type of strategy is Price Warehouse adopting? a. broad differentiation strategy b. low-cost provider strategy c. focused strategy based on lower cost d. focused strategy based on differentiation ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

42. McNiven Construction Ltd. is influenced by a variety of elements from the internal environment. On the other hand, which of the following appears to be derived from the external environment of the company? xiv

a. safety regulations b. employment policies c. safety practices d. competencies of employees ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

43. What is it called when an organization develops objectives, plans, and courses of action concerning how it will operate to gain competitive advantage? a. goal setting b. competitive scope c. strategy d. organizational planning ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

44. Due of the unpredictability of future events, many strategic planners formulate their plans so they can respond to changes in the environment. How would you describe this strategic planning process? a. a cyclical process b. a reactive process c. a dynamic process d. a perceived process ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

45. What type of strategies focus on the overall strategy of the organization and all of its businesses? a. corporate strategies b. intended strategies c. management strategies d. business strategies ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

46. What type of strategy focuses on the action plans and competitive scopes for a single line of business? a. leadership strategy b. business strategy c. emergent strategy d. corporate strategy ANSWER: b POINTS: 1 DIFFICULTY: Difficult richard@qwconsultancy.com

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REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 47. As McDonald’s sales and profits declined, the company decided to focus on a core item: coffee. What restructuring strategy was being adopted? a. divestiture b. liquidation c. stability d. turnaround ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 1.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

48. What type of strategies are concerned with the question, What business should we be in? a. intended strategies b. management strategies c. corporate strategies d. business strategies ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

49. What type of strategies are concerned with the question, How should we compete? a. competitive strategies b. emergent strategies c. corporate strategies d. business strategies ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

50. WestJet tries to demonstrate to the public that its customer service is better than other Canadian airlines because WestJet has have low prices and more caring and innovative services. How would you define this strategy? a. corporate strategyb. business strategy c. divestiture strategy d. management strategy ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic Types QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM xvi

DATE MODIFIED:

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51. Shoreline Docks, a small West Coast dock construction company, is influenced by a variety of elements from their its environment. Which of the following appears to be derived from the company’s internal environment? a. legislation b. economy c. safety practices d. technology ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Strategic Planning Process KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

52. What type of corporate objective usually defines the targets for the social conduct of business? a. hard b. focused c. social d. soft ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Planning Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

Tentree Apparel Tentree Apparel is a Canadian company devoted to producing all its clothing responsibly and locally. The company wants to “become the most environmentally progressive company on the planet.” It uses 100 percent eco-friendly resources such as sustainably grown organic cotton and unprocessed hemp to create premium-priced contemporary sports clothing. Tentree Apparel provides a unique and superior value to its buyers in terms of product quality and features as well as an additional environmental bonus. For every piece of clothing a customer purchases, Tentree Apparel plants ten trees. The company aims “to plant 1 billion trees by 2013.” The company’s owners adopted a social enterprise model of business with the aim to inspire and build a new group of consumers to tackle environmental challenges through reforestation efforts.

53. What are the broad guidelines to action, which establish the parameters and rules in an organization? a. plans b. policies c. objectives d. procedures ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: HR Planning Notebook 1.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/15/2019 2:58 PM

54. Refer to Scenario: Tentree Apparel. Tentree Apparel is achieving success implementing change. What two concepts did the owners need to align to implement this change? a. motivation and hiring practices b. position modules and salary theories c. principles and salary theories d.

HRM practices and organizational goals richard@qwconsultancy.com

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ANSWER: d RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Moderate REFERENCES: A Need for Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 55. Refer to Scenario: Tentree Apparel. Tentree Apparel states that it wants to “become the most environmentally progressive company on the planet.” What type of statement does this quote describe? a. strategic plan b. intended policy c. strategic intent d. value statement ANSWER: c RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: A Need for Strategic HR QUESTION TYPE: Multiple Choice HAS VARIABLES: False NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 56. Refer to Scenario: Tentree Apparel. Tentree Apparel aims “to plant 1 billion trees by 2013.” What type of statement does this quote describe? a. goal b. policy c. strategic plan d. value statement ANSWER: a RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: A Need for Strategic HR QUESTION TYPE: Multiple Choice HAS VARIABLES: False NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

57. Refer to Scenario: Tentree Apparel. Tentree Apparel has formulated its organizational goals, objectives, action plans, and the mission statement. What is this the process called? a. organizational planning b. strategy c. strategic analysis d. emergent strategy ANSWER: b RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: A Need for Strategic HR QUESTION TYPE: Multiple Choice HAS VARIABLES: False NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM xviii

58. If no two organizations are the same, then logically all organizational strategies are unique. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

59. A company can have one corporate strategy but many business strategies. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

60. When a company can no longer pay its creditors, the company may file for bankruptcy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 61. A vision statement would answer the questions “Who are we?” and “Why are we here?” a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process (is a mission statement) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

62. To be successful, a company must adopt only one corporate strategy. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Strategic Types (many) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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63. The decision to merge with another company is an example of a growth strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

64. If an organization decides that the company is an ideal size and decides to maintain it, then the organization is adopting a growth strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

65. Strategic intent is an intangible corporate goal. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: A Need for Strategic HRM (tangible) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 66. Porter’s model of business strategy has been criticized for having categories that overlap. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

67. There are three competitive positions used in most strategy textbooks: cost, differentiation, and flexibility. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process (focus, not flexibility) QUESTION TYPE: True / False HAS VARIABLES: False xx

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

68. The question, “Should we be in business?” is an example of a business strategy. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: A Need for Strategic HRM (corporate example) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

69. The strategic planning process is dynamic and evolves as environmental conditions change. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

70. Examples of corporate strategy include decisions to compete internationally or to merge with other companies. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

71. A discarded strategy is one that was found to be inappropriate because of changing circumstances. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

72. In general, a restructuring strategy is one that deals with companies that are operating at a surplus and are typically described as “money-making.” a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Strategic Types (money-losing) richard@qwconsultancy.com

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

73. Values guide the behaviour of individuals within an organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

74. Hard objectives deal with social issues such as the ethics and values of an organization. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process (e.g., soft goal) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 75. A “harvest” strategy can also be conceptualized as a “retrenchment” strategy because the goal is to restructure and not grow. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Types QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

76. Emergent strategy is the plan that changes incrementally due to environmental changes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

77. An acquisition is seen as two organizations joining to gain economies of scale, whereas a merger occurs when one company acquires another. a.

True b.

False xxii

ANSWER: False POINTS: 1 REFERENCES: Strategic Types (opposite) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

78. Dynamic capabilities are the abilities of an organization to adapt and renew its competencies in accordance with a changing business environment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

79. Competitive advantage of an organization includes the characteristics that enable it to earn higher rates of interest on its investments than its competitors. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process (higher rates of profits) QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

80. Opportunities and threats are environmental conditions external to the firm that have limited benefit and are harmful to the organization. a.

True b.

False ANSWER: False RATIONALE: (They are beneficial and harmful.)

POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 81. “Core competencies” refers to the integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:07 AM

82. SWOT analysis refers to the systematic and regular monitoring of environmental factors influencing the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

83. Establishing the mission, vision, and values is the first step in strategic planning. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

84. Examples of tangible assets are human capital, reputation, goodwill, trust, and copyright. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

85. Business strategies are concerned with the long-term view of the organization. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

86. A strategy is a planned process whereby organizations can map out a set of objectives and methods of meeting those objectives. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Planning Process xxiv

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

87. Corporate strategies focus on one line of business: building a strong competitive position. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

88. What is a corporate strategy? Identify the three major corporate or organization-wide strategies outlined by the authors in your textbook and discussed in class and provide examples of each.

ANSWER: Corporate Strategies are focused on overall strategy for the company and its businesses or interests.

These strategies are usually focused on long-term growth and survival goals.

There are three corporate strategy options: ∙ Restructuring (turnaround, divestiture, liquidation, bankruptcy) ∙ Growth (incremental growth, international growth, mergers and acquisitions) ∙ Stability (maintain the status quo) POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

89. Compare and contrast corporate and business strategy. What is the difference between the two?

ANSWER: Business strategy focuses on one line of business as opposed to the overall corporation. Business strategy involves building a strong competitive position as opposed to determining if this is the business to be in.

Business strategy is an action plan for managing one line of business. Corporate strategy asks, “Should we be in business? What business should we be in?” Business strategy asks, “How should we compete? Should we compete by offering products at prices lower than those of the competition or by offering the best service?”

POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

90. List the steps (from initial planning to end stages) in strategic planning.

ANSWER: ∙ Establish the mission, vision, and values ∙ Develop objectives ∙ Analyze the external environment ∙ Identify the competitive advantage ∙ Determine the competitive position ∙ Implement the strategy ∙ Evaluate the performance richard@qwconsultancy.com

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POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

91. What are some of the benefits of strategy formulation to organizations? Identify and briefly describe five benefits.

ANSWER: ∙ Clarity – to help focus and guide decision-making about resource allocations ∙ Coordination – everyone working together towards the same goals ∙ Efficiency – daily decision-making guided toward the question “does it fit our strategy?” ∙ Incentives – employees understanding the behaviours and performance that will be rewarded ∙ Change – if major change is under consideration, then understanding current strategy is essential ∙ Career development – clear outline of organization’s strategy can help you decide if you want to work for the company, if there is a skills fit, and what training and development you will need in order to facilitate the achievement of strategy ∙ Understanding of the strategic planning process is the essential first step to creating an HR strategy that makes sense for the organization POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

92. Compare and contrast the HRM practices of a company using a low-cost provider strategy with one using a differentiation strategy.

ANSWER: Low-cost providers provide a product or service at a price lower than that of its competitors while appealing to a broad range of customers. A major emphasis with this type of strategy is to reduce cost; therefore, contingent workers are recruited and paid minimal hourly wages. There is a high turnover of staff and minimal onthe-job training. There are minimal opportunities for career growth and advancement. Businesses using a differentiation strategy seek to differentiate their products in ways that will appeal to a broad range of buyers. More staff training may be required in businesses employing this type of strategy. There is more emphasis on product knowledge and customer service. There may be more opportunities for advancement in this type of business.

POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

93. Cupcasions is a small bakery that crafts and sells gourmet cupcakes and cakes. Besides scanning and monitoring its external environment, the managers also consider what competitive advantage the organization possesses—that is, what characteristics enable them to generate more value for customers at a lower cost, thereby earning higher rates of profit than its competitors. List the three categories of resources and describe one example of a resource that Cupcasions would have that would allow them to perform more effectively or efficiently than its competitors.

ANSWER: Tangible assets: These are future economic resources that have substance and form from which an organization will benefit. Examples are land, inventory, building, location, cash, and technology.

Intangible assets: These are future economic resources that have been generated from past organizational events.

These assets lack substance and form. Examples are human capital, reputation, goodwill, trust, and copyright. xxvi

Capabilities: These are a complex combination of people and processes that represent the firm’s capacity to exploit resources to achieve the firm’s objectives. Examples are managerial capabilities, innovative capabilities, marketing capabilities, and organizational cultures.

POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 94. According to the resource-based view, an organization’s sustained competitive advantage must meet four criteria.

List these four criteria.

ANSWER: ∙ They are valuable to the firm’s strategy (they help generate value/reduce cost). ∙ They are rare (competitors don’t have them). ∙ They are inimitable (they cannot easily be copied by competitors). ∙ They can be organized by the firm (the firm can exploit the resources) POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

95. With the information from external environment and internal competence analysis, managers can summarize the conclusions using a SWOT analysis. What is a SWOT analysis?

ANSWER: A SWOT analysis is a tool for analyzing a company’s resource capabilities and deficiencies, its market opportunities, and the external threats to its future. SWOT is an acronym for Strengths, Weaknesses, Opportunities, and Threats. A strength is something that a company does well or an attribute that makes it more competitive. A weakness is something that an organization does poorly, or a condition, such as location, that puts it at a disadvantage relative to competitors. Opportunities and threats are environmental conditions external to the firm that may be beneficial or harmful.

POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

96. Describe one step in the strategic planning process. Identify an organization you are familiar with (such as from your work experience or from the course textbook). Provide an example of how your chosen organization performs the one strategic planning step.

ANSWER: ∙ Establish the mission, vision, and values ∙ Develop objectives ∙ Analyze the external environment ∙ Identify the competitive advantage ∙ Determine the competitive position ∙ Implement the strategy ∙ Evaluate the performance One Step: Analyze the external environment. To achieve the company’s objectives, managers must be aware of threats and opportunities in the external environment. By scanning and monitoring technology, laws and regulations, the economy, sociocultural factors, and changing demographics, managers can make reactive and proactive changes to the strategic plan. richard@qwconsultancy.com

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POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

97. Concepts of strategy are numerous. Describe two.

ANSWER: Strategy: A declaration of intent Strategic intent: A tangible corporate goal; a point of view about the competitive positions a company hopes to build over a decade Strategic planning: The systematic determination of goals and the plans to achieve them Strategy formulation: The entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals Strategy implementation: Those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals Objectives: The end, the goals Plans: The product of strategy, the means to the end Strategic plan: A written statement that outlines the future goals of an organization, including long-term performance goals Policies: Broad guidelines to action that establish the parameters or rules POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 98. Are employees always an organization’s most valuable resource? Why or why not? What criteria is required for organizations to achieve competitive advantage through their human resources?

ANSWER: In order to determine whether an organization’s resources will contribute to competitive advantage, four criteria must be satisfied. The resources must be: a. valuable b. difficult to imitate c. rare d. hard to substitute POINTS: 1 REFERENCES: The Strategic Planning Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

99. Refer to Scenario: Tentree Apparel. Tentree Apparel is an example of an organization that is making strategic decisions in its attempts to become profitable. Describe two concepts of strategy that Tentree Apparel is using.

ANSWER: A few concepts include: Strategy: A declaration of intent Strategic intent: A tangible corporate goal; a point of view about the competitive positions a company hopes to build over a decade Strategic planning: The systematic determination of goals and the plans to achieve them Strategy formulation: The entire process of conceptualizing the mission of an organization, identifying the strategy, and developing long-range performance goals xxviii

Strategy implementation: Those activities that employees and managers of an organization undertake to enact the strategic plan and achieve the performance goals Objectives: The end, the goals Plans: The product of strategy, the means to the end Strategic plan: A written statement that outlines the future goals of an organization, including long-term performance goals Policies: Broad guidelines to action, which establish the parameters or rules POINTS: 1 REFERENCES: A Need for Strategic HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

1. What is the primary reason that strategic HRM aligns HR policies, practices, and philosophies with organizational strategy? a. to develop new methods to deliver training and orientation b. to constrain undesirable behaviours within an organization c. to ensure that the institutional memory remains current d. to facilitate the attainment of organizational strategy ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

2. What is the purpose of strategic HRM? a. to ensure the effective functioning and survival of the organization and its members b. to implement the planning, timing, and delivery of an effective organizational strategy c. to motivate and attract employees who will internalize the organization’s culture d. to emerge as an industry leader with numerous distinct competencies and a competitive advantage ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

3. To the HR practitioner, what does human capital incorporate? a. knowledge, commitment, values, culture b. commitment, experience, culture, abilities c. experience, knowledge, skills, commitment d. skills, values, culture, experience ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

4. What does it mean if an organization’s human capital return on investment is $3? a.

For every dollar an organization invests in human capital, the employees will generate $3 in return. b.

For every dollar an organization invests in human capital, the employees will generate $3 in revenue. c.

For every dollar an organization invests in human capital, the employees will generate $3 in capital assets. d.

For every dollar an organization invests in human capital, the employees will generate $3 in productivity.

ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

5. Selective hiring, extensive training, and competitive pay are HR practices that could make an organization more successful. What term best describes this type of activity? a. transitional b. transactional c. high-performance d. transformational ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

6. According to concurrent strategy formulation, when does strategy development occur? a. prior to when HRM issues are considered b. simultaneously when HRM issues are considered c. subsequent to when HRM issues are considered d. mutually exclusive of when HR issues are considered ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

7. According to Google Inc., which of the following does NOT produce innovative behaviours from employees? a. selecting people with high creativity b. providing employees with time and freedom to innovate c. motivating innovation through incentive programs d. stimulating opportunities for job enlargement ANSWER: d POINTS: 1 xxx

DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

8. When the HR training department teaches individuals a new customer service computer program, the HR recruiting department must work together with the HR training department to hire individuals with comparable computer skills. What is this collaborative approach called? a. cross-functional HR practices b. industry-consistent HR practices c. exemplary HR practices d. bundling HR practices ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Strategy Differentiation QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

9. What two items does an organization match together in the human capital perspective of HRM? a. values of employees and the organization’s budget b. capacity of employees and the organization’s motivation c. capabilities of employees and the organization’s strategy d. creativity of the employees and the organization’s goals ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

10. Johnson and Johnson outsourced its administration work to locations such as Prague and Manila, but kept its HR talent management practices internally managed through its corporate centre, adopting HR practices that are linked to organizational success. What term best describes Johnson and Johnson’s talent management focus? a. transitional b. transactional c. strategic d. transformational ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Opening Vignette: HR Structure at Johnson and Johnson QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

11. Which of the following is a practical barrier associated with workforce planning? a.

It is Hard to measure success. b.

No data are available. c.

It is seen as too daunting to change. d.

It is considered to lack credibility.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

12. Costs incurred in training, motivating, compensating, and monitoring employees can be viewed as investments in human capital that result in gains to productivity per worker. How does this type of investment yield such gains? a. by matching the business strategy to the external environment b. by matching the capabilities of employees with the corporate strategy c. by matching the needs of the employees to their desires for empowerment d. by matching the HR strategy to the potential employee competencies ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

13. Which of the following is a perception and attitude barrier associated with workforce planning? a. multiple planning horizons b. organizational silos c. lack of a holistic approach d. moving targets—business goals are not clear ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

14. Payroll represents a routine activity that must be done for the organization to operate on a daily basis. What term best describes this type of activity? a. transitional b. transactional c. temporal d. transformational ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

15. Johnson and Johnson outsourced its administration work to locations such as Prague and Manila, but kept its HR talent management practices internally managed through its corporate centre, adopting HR practices that are linked to the organizations success. What emerging trend best describes the structure of the HR functions at Johnson and Johnson? a. to focus on transformational practices b. to adopt a transactional and transitional focus c. to integrate HR and organizational strategies xxxii

d. to separate transactional work and focus on strategic HR ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Opening Vignette: HR Structure at Johnson and Johnson QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

16. Which of the following does NOT align human resources strategy with business strategy? a. starting with organizational strategy and then creating HR strategy b. starting with HR competencies and then creating corporate strategy c. starting with HR strategy and then creating HR competencies d. starting with business strategy and then creating HR strategy ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

17. If IBM introduces a new software package in January, Microsoft can probably imitate or duplicate this package

by February of the same year. However, if IBM technical support people are trained and motivated to provide “knock your socks off service,” Microsoft will have a difficult time imitating this service within a month. This is an example of how employees can provide a competitive advantage. What theory is being applied here? a. behavioural perspective b. resource-based view c. human capital d. strategic management ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

18. In many ways, HR strategy generates the business strategy, and business strategy determines the HR strategy.

What is the concept that describes this relationship? a. reciprocal strategy b. reciprocal partnerships c. reciprocal dependence d. reciprocal interdependence ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 19. What does McDonald’s “no unique response” system mean? a. that employees are not expected to contribute ideas b. that employees are not expected to communicate formally richard@qwconsultancy.com

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c. that employees are not expected to accommodate customer inquiries d. that employees are not expected to respond beyond a basic standard ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 2.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

20. Fit is an important consideration when designing HR programs. What is it called when an organization fits its HR strategy to its organizational strategy? a. internal fit b. best fit c. external fit d. organizational fit ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Strategy Differentiation QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

21. What kind of strategy is an organization using if it attempts to pay wages slightly below industry norms? a. outsourcing b. compensation c. differentiation d. lag ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

22. What percentage of payroll do Canadian organizations typically pay for fringe benefits for their employees? a.

20 percent b.

25 percent c.

30 percent d.

35 percent ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 2.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

23. According to your textbook, what is the annual turnover rate for organizations using a low-cost provider strategy? a.

100 percent b.

200 percent c.

300 percent d.

400 percent ANSWER: c xxxiv

POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 2.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

24. According to your textbook, which of the following does NOT use a differentiation strategy? a.

BMW b.

Polo Ralph Lauren c.

Rolex d.

IBM ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 2.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

25. If a company uses a differentiation strategy, what is it more concerned with relative to equity with the external market? a. pay structures b. compensation strategy c. pay for performance d. internal equity ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: HR Planning Today 2.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

26. According to classical economics, what are the three most important resources or inputs? a. labour, capital, land b. capital, knowledge, land c. knowledge, economics, land d. economics, assets, land ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

27. Four Seasons Hotels competes on service excellence. It invests in HR systems for service quality, such as selecting, training, and rewarding employees’ service-related skills. What theory is being applied by Four Seasons Hotels. a. service quality b. resource-based view c. human capital d. behavioural ANSWER: c POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

28. Fit is an important consideration when designing HR programs. What is it called when an organization fits its HR strategy to other functional areas? a. internal fit b. best fit c. external fit d. organizational fit ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Strategy Differentiation QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

29. Human resources management (HRM) can be viewed as an umbrella term that encompasses three elements.

What are these three elements? a. philosophies, policies, and practices b. emergent, intended, realized c. transactional, transformational, temporal d. internal, external, results ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

Swimco Swimco is a beach- and resort-wear retailer based in Calgary, Alberta, with operations in 22 retail stores across Western Canada. In recent years, it launched its web store. It believes that everyone deserves to feel good in a swimsuit. Swimco provides a unique “fit expert” customer service that permits the store to support a customer valuepricing strategy. To achieve this strategy, the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly. The company also provides a real-time “live chat” that is staffed with experienced fit consultants so customers always receive quality service.

30. Refer to Scenario: Swimco. What is the primary reason that Swimco’s HRM leadership team aligns their HR policies, practices, and philosophies with their organizational strategy? a. to facilitate the attainment of top talent b. to ensure that the HR system remains current with the internal environment c. to ensure that the HR system remains current with the external environment d. to facilitate the attainment of organizational strategy through their HR systems ANSWER: d RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 xxxvi

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 1/18/2019 1:17 PM

31. Refer to Scenario: Swimco. Why might Swimco’s current focus on quality online customer service be an effective strategy for the retailer? a.

Swimco’s online quality customer service is variable and substitutable like the strategies it applies. b.

Swimco’s online quality customer service is inspirational to both its customers and its employees. c.

Swimco’s online quality customer service is unique, and strategic mimicry by other swim wear retailors is difficult to achieve. d.

Swimco’s online quality customer service is a low-cost, low-price, basic design strategy.

ANSWER: c RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:31 AM

32. Refer to Scenario: Swimco. It is particularly important for Swimco to define and develop the behaviours necessary to achieve their organizational capabilities of innovation and customer care. What theory is Swimco applying to its strategic management? a. behavioural perspective b. resource-based view c. human capital d. strategic management ANSWER: a RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:51 PM 33. Refer to Scenario: Swimco. Which of Porter’s competitive business strategies is Swimco applying? a. low-cost provider b. broad differentiation c. market niche with lower cost d. market niche with differentiation ANSWER: b RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:52 PM

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34. Refer to Scenario: Swimco. “Our company is committed to making our customers feel confident in swimwear so they can be free to enjoy some of the best experiences of their lives.” What type of statement is this quote an example of? a. attitude b. policy c. strategic d. value ANSWER: d RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:53 PM

35. Refer to Scenario: Swimco. Through its e-commerce initiative, Swimco is transitioning from local to national in its market position. What type of strategy is Swimco adopting? a. restructuring b. divestiture c. business d. growth ANSWER: d RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:32 AM 36. Refer to Scenario: Swimco. When planning, Swimco’s corporate leadership team reviewed the company’s business plans not only to ensure consistency with their HR strategy but also to provide input to their strategy, based on HR strengths and weaknesses. What approach is Swimco using to link its HR processes to their strategy? a.

It is starting with organizational strategy and then creating HR strategy. b.

It is starting with HR competencies and then creating corporate strategy. c.

It is starting with HR strategy and then creating HR competencies. d.

It is doing a combination of both business strategy and HR strategy in a form of reciprocal relationship.

ANSWER: d RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:54 PM 37. Refer to Scenario: Swimco. Fit is an important consideration in Swimco’s HR strategic planning. What is it called when Swimco fits its HR strategy between its HR functions (i.e., training) and across its other business functions (i.e., accounting)? xxxviii

a. external fit b. best fit c. internal fit d. organizational fit ANSWER: c RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Strategy Differentiation QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:54 PM

Tentree Apparel Tentree Apparel is a Canadian company devoted to producing all its clothing responsibly and locally. It uses100 percent eco-friendly resources such as sustainably grown organic cotton and unprocessed hemp to create premiumpriced contemporary sports clothing. Tentree Apparel provides a unique and superior value to its buyers in terms of product quality and features as well as an additional environmental benefit. For every piece of clothing a customer purchases, Tentree Apparel plants ten trees. The owners of Tentree adopted a social enterprise model of business with the aim to inspire and build a new group of consumers to tackle environmental challenges through reforestation efforts.

38. Refer to Scenario: “Tentree Apparel.” Tentree Apparel is most likely to gain a sustained competitive advantage through its people by using which of the following programs? a. one in which employees are motivated through training and reward initiatives b. one in which employee talent is organized, difficult to imitate, rare, and valuable c. one in which employees are empowered and engaged in their work d. one in which employees have skills and knowledge that are transferable to many positions.

ANSWER: b RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:55 PM 39. Refer to Scenario: “Tentree Apparel.” Why is strategic HR planning important to Tentree Apparel? a.

The planning process itself results in improved goal attainment. b.

The implementation results in an effective organizational strategy. c.

It motivates and attracts high-performing employees. d.

It helps achieve competitive advantage through distinct employee competencies.

ANSWER: a RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 1:55 PM richard@qwconsultancy.com

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40. Refer to Scenario: “Tentree Apparel.” Which of Porter’s competitive business strategies is Tentree Apparel applying? a. market niche with lower cost b. broad differentiation c. low-cost provider d. market niche with differentiation ANSWER: b RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:33 AM 41. Refer to Scenario: “Tentree Apparel.” How can Tentree Apparel’s strategic HR planning deliver the behaviours needed to enable its organizational strategy? a.

The HR planning process itself results in improved employee satisfaction. b.

The implementation of HR planning practices results in an effective organizational strategy. c.

The HR planning process motivates and attracts high-performing employees. d.

Employees help the organization achieve success because they are placed within a strategic framework.

ANSWER: d RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:34 AM 42. Refer to Scenario: “Tentree Apparel.” Tentree Apparel’s strategic approach, which ensures the company maintains its social responsibility aims, shields the organization from what type of competitors? a. labour market strategy providers b. broad differentiation strategy providers c. low-cost strategy providers d. emergent strategy providers ANSWER: c RATIONALE: NARR: Tentree POINTS: 1 DIFFICULTY: Difficult REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Tentree NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:34 AM

43. Professional certification is NOT a human capital asset. a.

True b.

False xl

ANSWER: False RATIONALE: (it is) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

44. The statistical technique in HR examining, demand forecasting, and resource supply is based on a linear relationship. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

45. HR departments may fall somewhere on the continuum of options between doing no workforce planning and hiring as needed to enterprise-level workforce planning and mitigation planning. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

46. A clearly written mission statement typically increases turnover. a.

True b.

False ANSWER: False RATIONALE: (decreases) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

47. Recently HR departments have been required to move from demonstrating real value to articulating perceived value. a.

True b.

False ANSWER: False RATIONALE: (reverse) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

48. Over 70 percent of Canadian executives state that their strategies are supported by a workforce plan. a.

True b.

False ANSWER: False RATIONALE: (only one third) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 49. The aggregate of all employees’ knowledge is an example of human capital. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

50. A possible practical barrier to strategic HR planning is the lack of a holistic approach. a.

True b.

False ANSWER: False RATIONALE: (perception and attitude barrier) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

51. Traditionally, the HRM program influenced the creation of the corporate strategy. a.

True b.

False ANSWER: False RATIONALE: (did not) POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

52. Human resources management used to be called the personnel department. a.

True b.

False ANSWER: False xlii

RATIONALE: (personnel management) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

53. From the human capital perspective, companies should invest in their employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

54. Human resources create competitive advantage for organizations, which reflects a resource-based view. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

55. According to the resources-based view, the less a resource can be imitated, the more it contributes to competitive advantage. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

56. Michael Porter estimates that it takes approximately five years to duplicate a competitive edge in human resources. a.

True b.

False ANSWER: False RATIONALE: (seven years) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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57. There is a negative relationship between the amount of money spent on training employees and the perceived value of human capital. a.

True b.

False ANSWER: False RATIONALE: (positive) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

58. Making decisions, such as how to best use human capital, is an example of a transactional activity in HR. a.

True b.

False ANSWER: False RATIONALE: (transactional = payroll) POINTS: 1 REFERENCES: Strategic HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

59. The HR senior manager team moves from insider status to outsider status with strategic HRM. a.

True b.

False ANSWER: False RATIONALE: (reverse) POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

60. Almost 70 percent of Canadian organizations indicated they had difficulty recruiting quality candidates. a.

True b.

False ANSWER: False RATIONALE: (80 percent) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

61. A resource-based view of HR involves the thinking that different strategies require different behaviours from employees, which in turn are influenced by different HR practices. a.

True b.

False ANSWER: False xliv

RATIONALE: (behavioural) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 62. “Human capital” refers to the collective sum of the attributes, experience, knowledge, and commitment that employees choose to invest in their work. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 63. A firm’s human resources are more valuable for sustained competitive advantage than technological and physical resources. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

64. A possible perception and attitude barrier to workforce planning is that leaders lack planning and business acumen. a.

True b.

False ANSWER: False RATIONALE: (practical barrier) POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

65. Human resource professionals recognize the need to play a more strategic role within the organization, but many executives do not. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic Partnering QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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DATE MODIFIED:

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66. The advantages of an organization with effective HR practices may come from having better resources, but it also comes from making better use of these resources a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

67. The goals of these HRM strategies are to shape employee behaviour so that it is consistent with the direction the organization identifies in its strategic plans. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

68. Companies with a differentiation strategy have a strong training focus that includes both skills and attitudes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

69. Efficiency and controlling human resource costs are paramount for organizations adopting a low-cost-provider strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

70. Firms providing features that appeal to a particular market segment are said to compete on a differentiation strategy. a.

True b.

False ANSWER: True xlvi

POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 71. Define “strategic human resources management” and discuss some of the major elements it encompasses.

ANSWER: Strategic HRM is a set of interrelated practices, policies, and philosophies whose goal is to enable the achievement of organizational strategy. These practices, policies, and philosophies form a system that attracts, selects, develops, trains, and motivates employees to ensure the effective functioning and survival of the organization and its members.

POINTS: 1 REFERENCES: Strategic HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

72. What is human capital? What comprises human capital?

ANSWER: Human capital is the sum of employees’ knowledge, skills, experience, and commitment invested in the organization. It is an intangible asset that comprises all the knowledge, education, vocation qualifications, professional certifications, work-related experience, and competence of an organization’s employees.

POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

73. What employee skills do employers look for if they have a differentiation strategy?

ANSWER: ∙ creative behaviour ∙ long-term focus ∙ interdependent activity ∙ risk-taking ∙ ability to work in ambiguous and unpredictable environment ∙ broad skills ∙ highly involved ∙ open communication ∙ ability to communicate ∙ willingness to accept feedback POINTS: 1 REFERENCES: HR Planning Today 2.3 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

74. Identify and describe three ways that HR processes can be linked to business strategy.

ANSWER: 1. Start with organizational strategy and then create HR strategy. richard@qwconsultancy.com

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a. Corporate strategy drives HR strategy – personnel needs are based on corporate plans (see McDonald’s example in your textbook). b. Resources are made to “fit” the corporate and business strategies. HR follows the corporate strategy. c. Employees are considered a means to an end, not part of the strategy formulation equation.

2. Start with HR competencies and then craft corporate strategies based on these competencies. a. This view argues that organizations cannot implement a strategy if they do not have the necessary human resources. b. Tap into employee capabilities to develop new products and services.

3. Do a combination of both in a form of a reciprocal relationship. a. HR strategy contributes to business-level strategy and vice versa. b. Senior HR vice-presidents are asked to provide input into strategic plans based on HR strategy and to generate the strengths and weaknesses for each plan. c. HR determines business strategy, and business strategy determines HR strategy (reciprocal interdependence).

POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

75. What are the three ways in which HR becomes a strategic business partner?

ANSWER: ∙ Concurrent strategy formulation – strategy development based on environmental analysis is conducted at the same time as HRM strategy. ∙ The HR senior management team moves from outsider status to insider status in terms of business decision-making. ∙ HR managers must understand the language of business or the outcome expectations of non-profit organizations.

This includes analyses presented by marketing, financial, and operational managers.

Note to instructors: Stress this very important HR role to the students. HR must be a full partner in the business to have full credibility. HR professionals must develop strong partnerships with line managers in the organization to best achieve business goals.

POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

76. Identify an organization you are familiar with (such as from your work experience or from your textbook).

Describe one reason why strategic planning is important to your chosen organization. Provide an example.

ANSWER: There are at least two reasons why strategic HR planning is so important: (1) employees help an organization achieve success because they are strategic resources, and (2) the planning process itself results in improved goal attainment.

Example: Strategic HRM can improve an organization’s performance. The goals of these HRM strategies are to shape employee behaviour so that it is consistent with the direction the organization identifies in its strategic plans.

An articulated vision for the future may result in a more effective organization through increased motivation and performance, lowered absenteeism and turnover, and heightened stability, satisfaction, and involvement.

POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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77. The purpose of HR strategy is to capitalize on the distinctive competencies of the organization and add value through the effective use of human resources. Effective HRM strategies include external and internal fit, and a focus on results. Explain external and internal fit.

ANSWER: HR programs must align with, or fit, the overall strategy of the organization. If the business strategy is to differentiate from competitors based on superior service, then selection and training programs should be developed to hire and train people in the skills and behaviours necessary to deliver superior service.

We look at two types of internal fit: a fit with other functional areas, such as marketing, and a fit among all HR programs. Fit with other functional areas is important. If the marketing department is developing an advertising plan that promises 24-hour access to customer service representatives, but the HR plan does not include compensation differentials for shift work, the overall marketing strategy might fail. HR programs must also be consistent with each other; that is, training, selection, and appraisal must work together to support a strategy. If the training department decides to teach employees to use the Internet to handle customer service, the staffing department must hire people who either are computer literate or who have the kinds of intelligence that enable them to learn computer skills rapidly.

POINTS: 1 REFERENCES: HR Strategy Differentiation QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

78. Describe two reasons why strategic planning is important to organizations.

ANSWER: There are at least two reasons why strategic HR planning is so important: (1) employees help an organization achieve success because they are strategic resources, and (2) the planning process itself results in improved goal attainment.

POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

79. There are various approaches to linking HRM strategies to organizational strategies. De-scribe one approach.

Provide an example.

ANSWER: We can start with the corporate strategy that leads to the HR strategy, or start with the HR competencies that lead to the business strategy, or use a blend of the interrelationship of the HR strategy and the corporate strategy. Aligning HR strategy with the corporate strategy and with other functional strategies is important.

POINTS: 1 REFERENCES: Linking HR Processes to Strategy QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

80. Only one third of Canadian executives state that their strategies are supported by a workforce plan. Discuss what makes HR planning so difficult. List three practical and three perceptual and attitude barriers to workforce planning or, The 2017 Conference Board of Canada survey, Workforce Planning Practices in Canada: Human Resources Trends and Metrics, provides some insights into why the majority of organizational strategies are not supported by a workforce plan. Describe one practical and one perceptual and attitude barrier to workforce planning. Describe how an organization can overcome these barriers?

ANSWER: Practical and perception barriers to workforce planning richard@qwconsultancy.com

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Practical Barriers Perception and Attitude Barriers • Leaders lack planning and business acumen • Multiple planning horizons • Organizational silos • Moving targets—business goals are not clear • Union restrictions, and barriers to internal employee mobility • No budget, or not enough budget • No data available • Not enough time, too busy, competing priorities, “daily bombs,” and “fighting fires” • Seen as important, but not urgent • Resistance to change: “We always got by in the past” • Lack of a holistic approach • It is Hard to measure success • Seen as too daunting to change • Considered to lack credibility Source: Courtesy of The Conference Board of Canada, 2017, Workforce Planning Practices in Canada: Human Resources Trends and Metrics, Fourth Edition, p. 13.

POINTS: 1 REFERENCES: HR Planning Notebook 2.1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

81. From a human capital perspective, even within the same positions, some individuals may deserve differential HR strategy than others for two reasons—because their human capital is (1) valuable to the business strategy and (2) unique (Difficult to replace). Describe three ways Canadian companies are differentiating talent.

ANSWER: The Conference Board of Canada found that employers are differentiating workers by these categories. ∙ Hot skills: skills that are in short supply and high demand in the labour market ∙ Mission critical skills: capabilities needed within an occupation (leadership skills) ∙ Mission critical roles: these are highly skilled, highly trained individuals who bring drive organizational value ∙ Key job family positions: these workers are well trained on core organizational processes, but are more easily replaced ∙ Contingent labour: temporary, demand-based and project-based workers POINTS: 1 REFERENCES: HR Planning Today 2.2 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

82. The 2017 Conference Board of Canada article, HR Talent Management Benchmarking, found that employers are segmenting workers by categories. Describe one of these categories. Provide one example.

ANSWER: From a human capital perspective, even within the same positions, some individuals may deserve differential HR strategy than others for two reasons—because their human capital is (1) valuable to the business strategy and (2) unique (Difficult to replace).

The Conference Board of Canada found that employers are segmenting workers by these categories. ∙ Hot skills: skills that are in short supply and high demand in the labour market ∙ Mission critical skills: capabilities needed within an occupation (leadership skills) ∙ Mission critical roles: these are highly skilled, highly trained individuals who bring drive organizational value l

∙ Key job family positions: these workers are well trained on core organizational processes, but are more easily replaced ∙ Contingent labour: temporary, demand-based and project-based workers For example, R&D scientists who have desirable skills in new product development in a particular domain, or founding members who have extensive experience within the company, may deserve differential HR management.

POINTS: 1 REFERENCES: HR Planning Today 2.2 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

83. Many HR programs are described as solutions looking for problems. Discuss using an example. List the chain of events that needs to take place before any HR programs are introduced.

ANSWER: HR managers must demonstrate the link between HR practices and organization results. Before any HR programs are introduced, the following chain needs to be developed.

HR program ? employee human capital and behaviours ? organizational strategy ? organizational outcome POINTS: 1 REFERENCES: HR Strategy Differentiation QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

84. How can employees provide a firm with competitive advantage?

ANSWER: If an organization manages its resources and capabilities, these advantages will result in competitive advantage. ∙ Typical resources might include human resources, proprietary knowledge, and reputation. ∙ Typical capabilities might include organizational adaptability, flexibility, and the speed of bringing new products to market.

POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 85. Discuss the quote “an organization that fails to plan for its human resources, plans to fail.”

ANSWER: There are at least two reasons why strategic HR planning is so important: (1) employees help an organization achieve success because they are strategic resources, and (2) the planning process itself results in improved goal attainment.

POINTS: 1 REFERENCES: Theories of the Strategic Management of Human Resources QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

1. According to the Global Wood Group, which of the following is NOT part of its environmental scanning? richard@qwconsultancy.com

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a. external consultants and trainers c. professional associations d.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 3.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

b. trade publications current legislation

2. What timeframe is most relevant for HR strategists? a.

2 to 3 years b.

5 to 6 years c.

9 to 10 years d.

12 to 13 years ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

3. If a group of HR managers decides to lobby government in order to change the legislation in their favour, what type of stance is the group taking? a. reactive b. passive c. proactive d. recursive ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

4. What does an organization do once it has completed its environmental scan? a.

It alters the perceptions of stakeholders to match the scan. b.

It modifies the goals and objectives of the organization. c.

It analyzes the external environment further for more details. d.

It determines the impact on the organization.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

5. What trend is occurring in the labour market with baby boomers? a.

Baby boomers may be eligible for retirement but will delay it. b.

Baby boomers will be the only generation to have organizational pensions. c.

Baby boomers will live longer than younger generations. lii

d.

Baby boomers require greater accommodations in the workplace.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

6. A HR analysis of the external environment consists of four stages. Which of the following is one of the stages? a. establishing a mission statement b. monitoring for key indicators c. analyzing core competencies d. external competence analysis ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

7. Which of the following is NOT a factor in determining the number of people available for work? a. percentage of women in the workforce b. unemployment rate c. geographic migration d. graduation rates from educational institutions ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 8. A company wants to change its strategy to include “high tech” services. The HR manager then discovers that there is a shortage of technologically trained people and informs the CEO that the company may have to abandon its new strategy. What is the major environmental factor that has affected the company’s strategy implementation? a. technology b. labour force c. globalization d. legislation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

9. An HR analysis of the external environment consists of four steps. Which of the following is the first step? a. scanning for changes and trends b. monitoring for key indicators c. analyzing core competencies d. internal competency analysis ANSWER: a POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

10. How many years does Canada lag behind the U.S. in identifying HR trends? a.

1 to 2 years b.

2 to 3 years c.

4 to 5 years d.

6 to 7 years ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

11. A new regulation issued by the government requires certain safety training of employees. What is the major environmental factor that will affect the company’s HR strategy in this case? a. economics b. globalization c. demographics d. legislation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

12. What is demographics? a. the study of social influences b. c. the study of geographic migration d.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

the study of economic climate the study of population statistics

13. If the HR manager has noticed growth in flows of trade and financial capital across borders, what major environmental factor is the HR manager concerned with? a. economics b. labour force c. globalization d. demographics ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM liv

DATE MODIFIED:

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14. What type of law is the Charter of Rights and Freedoms an example of? a. contract law b. constitutional law c. common law d. criminal law ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

15. According to your textbook, what percentage of HR functions has the potential to become managed electronically? a.

25 percent b.

50 percent c.

75 percent d.

100 percent ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

16. What is another name for stakeholders? a. company shareholders b. c. constituent groups d.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

business owners lobby groups

17. What is the purpose of stakeholder groups? a. to generate shareholder wealth and to ensure their investments are paid dividends b. to manage diverse groups of individuals who shape the perceptions of the organization c. to follow the actions of the organization and to lobby to have their interests satisfied d. to influence HR strategy and practices by withholding their votes at the annual meeting ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

18. What are the key issues that unions hope to resolve on behalf of their members? richard@qwconsultancy.com

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a. telecommuting, flextime, job sharing, and workplace privacy b. asset-backed pensions, job satisfaction, career planning, and diversity c. wages, work–life balance, quality of life, and environmental friendliness d. job security, income security, working hours, and inflation protection ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

19. HR managers develop strategies to systematically monitor the major factors influencing their organization to identify trends that might affect the formulation and implementation of both organizational and HR strategies. What is this process called? a. environmental scanning b. environmental sources c. strategic HR planning d. strategic planning ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

20. What are the four stages that can be used to analyze the external environment? a. scanning, monitoring, forecasting, assessing b. monitoring, forecasting, assessing, extrapolating c. scanning, forecasting, monitoring, analyzing d. monitoring, scanning, assessing, extrapolating ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

21. How long did it take for the World Wide Web to reach fifty million users? a.

4 years b.

6 years c.

8 years d.

10 years ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

22. In light of the Occupy Wall Street protests, what are two major issues that human resources departments need organizations to address? lvi

a.

Organizations need to comply with labour legislation and reduce executive bonuses. b.

Organizations need to ensure pay equity and discourage high-risk executive behaviours. c.

Organizations need to increase hiring of disadvantaged groups and monitor executive compensation. d.

Organizations need to continue to support globalization and communicate ethical violations of executives.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

23. Which of the following HR publications is published in Canada? a.

HR Magazine b.

People Management c.

HR Focus d.

Workplace Today ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 3.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 24. Given its more than 50 percent of market share over 50 years ago, why did General Motors (“GM”) fail? a.

GM did not cut fixed operating costs deeply enough. b.

GM did not understand how external factors interact. c.

GM did not look for clues to explain its efficiencies. d.

GM did not forecast the number of cars sold in China.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning at GM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

25. Which of the following would NOT help governments improve the climate for job creation? a. increasing public debt b. creating balanced labour legislation c. increasing job-training opportunities d. providing tax incentives ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

26. Which of the following is NOT one of the top-ten trends that will have a strategic impact on the workplace? a. increasing employee rights due to legislation richard@qwconsultancy.com

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b. increasing global competition for jobs c. increasing complexity of legal compliance d. increasing growth in national deficit ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

27. According to your textbook, what are some of the major HR trends that were difficult to forecast more than twenty years ago? a. e-learning, online recruitment, and technology b. mandatory retirement, localization, and ethics c. brain drain, diversity, and work-life balance d. downsizing, outsourcing, and telecommuting ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

28. When was the North American Free Trade Agreement (NAFTA) established? a.

1974 b.

1984 c.

1994 d.

2004 ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 29. If an organization is debating over “doing the right thing” with respect to laying off some of the staff in a department because it is less expensive to outsource the work, what type of issue is the organization dealing with? a. political b. ethical c. social d. economic ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 30. What statement depicts the importance of the labour market and its influence on an organization’s ability to implement strategy? a.

The labour market is the most important demographic factor that should be monitored. lviii

b.

The labour market is the most important economic factor that should be monitored. c.

The labour market is the most important social factor that should be monitored. d.

The labour market is the most important global factor that should be monitored.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

31. What are the most important factors to consider when scanning the environment in strategic planning? a. the competition, customers, rival firms, new entrants, substitutes, suppliers, and external labour supply b. the competition, the global landscape, rival firms, new entrants, substitutes, suppliers, and external labour supply c. the competition, the global landscape, rival firms, new entrants, the business context, suppliers, and external labour supply d. the competition, customers, rival firms, the workforce, substitutes, suppliers, and external labour supply ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

32. Which of the following is a source of information that human resource professionals may rely on when developing strategies and determining their likely impact on the organization? a. publications b. professional designations c.

Delphi analysis d. nominal group technique ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

33. Which of the following is a source of information that human resource professionals may rely on when scanning and monitoring an organization’s external environment? a. scenario planning b. conference and seminars c. strategic indicators d. competitive indicators ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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34. Which of the following is a forecasting method that human resource professionals may rely on when generating predictions about an organization’s future? a. scenario planning b. professional consultants c. strategic indicators d. competitive indicators ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

35. WestJet Airlines studies the websites of other airlines for information about their strategic plans. What forecasting approach is the company using to obtain information about its competitors? a. impact analysis b. competitive intelligence c. strategic indicators d. competitive indicators ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

36. Which demographic change is of concern to organizations and human resource professionals? a. compensation and benefits b. information systems c. health and safety policies d. older workers ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

37. What is the most influential effect of technology on organizations and HRM? a. enhanced automated services and access to information b. increased use of contract employment c. increased concerns about ethical practices d. increased issues related to diversity management ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

38. What is an external environmental factor facing organizations and human resource management? a. employee work–life balance initiatives and programs lx

b. company compensation and reward systems c. economic climate d. competitive intelligence ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

39. What are two environmental factors facing organizations? a. global economy and demographics b. organizational culture and employee assistance c. human resource planning and training d. labour relations and organizational culture ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

40. In what way are HRM responsibilities affected by the economic climate? a.

They are concerned about balancing complicated issues related to diversity management. b.

They must know the various legislation and workplace quality and safety standards. c.

They must ensure privacy, ethics, and culture management policies. d.

They are concerned about the effect of unemployment and interest rates on HR planning.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

41. A HR analysis of the external environment consists of four phases. Which of the following is one phase? a. establishing a value statement b. analyzing dynamic capabilities. c. internal competency analysis d. forecasting to project the impact on the organization ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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42. Information gathered through competitive intelligence methods must be subjected to two evaluation questions.

What are these two questions? a.

Are the processes legal and ethical? b.

Is the source reliable and what is the likelihood of the information being correct? c.

Is the source legal and what is the likelihood the process is ethical? d.

Is the source valid and what is the likelihood the process is ethical?

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

43. Organizations can use a formal approach to obtain information about your competitors. What is this approach called? a. competitive intelligence b. environmental scanning c. environmental intelligence d. competitive scanning ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

44. The Conference Board of Canada (2016) identified the top human capital challenges faced by organizations.

Which of the following is the top human capital challenge for organizations? a. leadership capacity b. labour cost containment c. capacity to innovate d. aging workforce ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

Green Septic and Water Systems Inc. Green Septic and Water Systems Inc., a British Columbia-based company, designs and manufactures innovative recycled plastic septic and water holding systems that are sold to projects in more than 20 countries. Its primary business is rotational moulding of polyethylene products, including water/chemical tanks, rainwater tanks, septic tanks, traffic safety barricades, and secure bicycle lockers. Regulation septic and chemical holding tanks are certified by the Canadian Standards Association. Green Septic and Water Systems Inc. hires people based on their specialized technical skills and on their broader innovation and communication skills. The company recruits both nationally and globally. It also continues to provide training to its employees in leading-edge septic and water holding systems technology and provide workplace environments that encourage innovation. The company defines its mission and strategy as being competitive through leading-edge technical ability. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats.

45. Refer to Scenario: Green Septic and Water Systems Inc. Green Septic and Water Systems Inc. monitors demographic and labour market trends as well as technological and IT changes. Which of the following is it most likely performing? lxii

a. a competitive environment scan b. an environment scan c. a strategic plan d. a labour market scan ANSWER: b RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:02 PM

46. Refer to Scenario: Green Septic and Water Systems Inc. The Vice President of HR at Green Septic and Water Systems Inc. is focused on ensuring that Green Septic and Water Systems Inc. is staffed with the most effective human resources to achieve the organization’s strategic goals. Which term best characterizes the Vice President of HR’s role? a. operational b. strategic c. staffing d. administrative ANSWER: b RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:37 AM

47. Refer to Scenario: Green Septic and Water Systems Inc. Green Septic and Water Systems Inc. gathers information about its environment in order to exploit opportunities or cope with threats. What is this called? a. environmental scanning b.

SWOT analysis c. environmental reporting d. strategic analysis ANSWER: a RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:38 AM

48. Refer to Scenario: Green Septic and Water Systems Inc. Green Septic and Water Systems Inc. regularly monitors major external environmental forces influencing its organization. What is this process called? a. demand forecasting b. influence analysis c. exception reporting d. environmental scanning ANSWER: d RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:38 AM

49. Refer to Scenario: Green Septic and Water Systems Inc. Green Septic and Water Systems Inc. systematically monitors key indicators that may affect its organization. Which of the following is a most important key indicator that Green Septic and Water Systems Inc. monitors? a. safety technical advances b. competitive intelligence c.

Canadian Standards Association (CSA) d. safety policies and procedures ANSWER: d RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:38 AM

50. Refer to Scenario: Green Septic and Water Systems Inc. What would be one of Green Septic and Water Systems Inc.’s most significant current business challenges? a. diverse languages and cultures b. human resource planning c. the global economy d. the environment ANSWER: c RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:38 AM

51. Refer to Scenario: Green Septic and Water Systems Inc. What important environmental concerns and/or opportunities would influence Green Septic and Water Systems Inc.’s strategic planning? a. environmental concerns of customers b. globalization and localization c. competitive intelligence d. employees’ attitudes toward environmental health ANSWER: a RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 lxiv

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 1/18/2019 8:39 AM

52. Refer to Scenario: Green Septic and Water Systems Inc. What are the technological concerns that affect Green Septic and Water Systems Inc.’s human resource planning? a. increased contracting out, outsourcing, and employee leasing b. concerns about privacy, ethics, and culture c. complicated issues related to language and communication d. operational (i.e., automation), enhanced services, and increased access to information ANSWER: d RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:39 AM

53. Refer to Scenario: Green Septic and Water Systems Inc. What issues does globalization raise for Green Septic and Water Systems Inc.’s human resource planning? a. balancing complicated issues related to language and communication b. differences in country legislations and business practices c. concerns about privacy, ethics, and culture d. employee concerns about compensation and outsourcing ANSWER: b RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:03 PM

54. Refer to Scenario: Green Septic and Water Systems Inc. What internal organizational factors are influencing Green Septic and Water Systems Inc.’s human resource planning? a. technological advances b. legislation c. demographic and social concerns d. staffing policies ANSWER: d RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:03 PM

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55. Refer to Scenario: Green Septic and Water Systems Inc. What external organizational factors are influencing Green Septic and Water Systems Inc.’s human resource planning? a. compensation policies b. human resource information systems c. global economy d. environmental practices and procedures ANSWER: c RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:42 AM

56. Refer to Scenario: Green Septic and Water Systems Inc. Green Septic and Water Systems Inc. believes its weakness is its performance in the U.S.A. It has also determined that it is missing an opportunity by not yet branching into children’s plastic kayaks. In addressing these questions, what type of analysis/review is Green Septic and Water Systems Inc. conducting? a. a SWOT analysis b. an analysis of the company’s internal weaknesses c. a revenue analysis in order to see what chances it can take d. a review of the company’s strategic plans ANSWER: a RATIONALE: NARR: Green POINTS: 1 DIFFICULTY: Difficult REFERENCES: Environmental Factors QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Green NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:42 AM

Swimco Swimco is a beach- and resort-wear retailer based in Calgary, Alberta, with operations in 22 retail stores across Western Canada. In recent years, it launched its web store. It believes that everyone deserves to feel good in a swimsuit. Swimco provides a unique “fit expert” customer service that permits the store to support a customer valuepricing strategy. To achieve this strategy, the product is a unique mix-and-match swimsuit design that gives customers the ability to create a swimsuit that fits perfectly. The company also provides a real-time “live chat” that is staffed with experienced fit consultants so customers always receive quality service.

57. Refer to Scenario: Swimco. Swimo develops strategies to systematically monitor the major factors influencing its organization to identify trends that might affect the formulation and implementation of both organizational and HR strategies. What is this process called? a. environmental scanning b. environmental sources c. strategic HR planning d. strategic planning ANSWER: a RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco lxvi

NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:42 AM

58. Refer to Scenario: Swimco. Swimco analyzes its external environment to exploit the opportunities and cope with threats. What would the first step in their environmental analysis consist of? a. monitoring for key indicators b. forecasting to project the impact on the organization c. scanning for changes and trends d. internal competency analysis ANSWER: c RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:05 PM

59. Refer to Scenario: Swimco. Swimco studies the websites of other swim apparel companies for information about their strategic plans. What forecasting approach is the company using to obtain information about its competitors? a. scenario-based analysis b. strategic indicators c. competitive intelligence d. competitive indicators ANSWER: c RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:44 AM

60. Which of the following is a forecasting method that Swimco may rely on when generating predictions about its future? a. scenario planning b. professional consultants c. strategic indicators d. competitive indicators ANSWER: a RATIONALE: NARR: Swimco POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Swimco DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:44 AM

61. Whether in Vancouver or New Delhi, managers are influenced by the culture in which they operate. a.

True richard@qwconsultancy.com

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b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 62. According to your textbook, only 13 percent of organizations were able to learn about their competitors’ moves early enough to respond to them. a.

True b.

False ANSWER: False RATIONALE: (23 percent) POINTS: 1 REFERENCES: Methods of Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

63. When HR managers group together and try to change legislation, they are taking a reactive stance. a.

True b.

False ANSWER: False RATIONALE: (proactive) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

64. Canadian newspapers and magazines provide a good source of information for HR professionals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

65. A drop in demand for contingent, temporary, and contract employees can predict an economic slowdown. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM lxviii

66. The labour market influences an organization’s ability to implement strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

67. There are more households in Canada with children than without. a.

True b.

False ANSWER: False RATIONALE: (reverse) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

68. Every HR function has the potential to become managed electronically. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

69. The gig economy can be described as one in which workers are hired for projects and are not employed full time. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Planning Today 3.2 QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

70. Canadian HR trends lag three to five years behind U.S. trends. a.

True b.

False ANSWER: False RATIONALE: (one to two years) POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

71. The baby boomers are the most important demographic factor that should be monitored by HR professionals. a.

True b.

False ANSWER: False RATIONALE: (labour market) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

72. Reading American HR publications can provide early warning signals for Canadian HR professionals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

73. A collective agreement is an example of common law. a.

True b.

False ANSWER: False RATIONALE: (contract law) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 74. “Baby Boomers” are those who were born in between World War I and World War II. a.

True b.

False ANSWER: False RATIONALE: (1946–1964) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

75. According to your textbook, it has been estimated that one in ten jobs in Canada is related to international trade. a.

True b.

False lxx

ANSWER: False RATIONALE: (one in five) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

76. Emerging economies such as China and India have many workers who are willing to work longer hours for less pay than workers in developed countries such as Canada. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

77. Stakeholders are also known as constituent groups. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

78. Your textbook outlines one foremost criteria that helps organizations identify critical environmental events over less important environmental changes and trends. a.

True b.

False ANSWER: False RATIONALE: (four criteria) POINTS: 1 REFERENCES: Challenges in Environmental Scanning KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

79. The employer–employee relationship is governed by a legal framework that includes common law, contract law, and criminal law. a.

True b.

False ANSWER: False RATIONALE: (constitutional not criminal) POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

80. In order to increase diversity with visible minorities, organizations can use inclusion programs such as customizing their communication styles and benefits. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

81. One of the challenges facing environmental scanners is that so much change is happening in so many areas that it is difficult to isolate critical events from insignificant ones. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

82. Environmental scanning is the frequent monitoring of trends affecting the organization in the external environment. a.

True b.

False ANSWER: False RATIONALE: (systematic monitoring) POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

83. Key issues for unions include job security, income security, working hours, and inflation protection. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

84. Professional consultants provide a limited source of information for HR professionals who are developing organizational strategies. a.

True lxxii

b.

False ANSWER: False POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

85. Economic climate may influence different industries and businesses in a different way and to a different extent. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Factors QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

86. In 2016, the Conference Board of Canada identified leadership capacity as both the top long-term and short-term human resource challenge. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 87. Competitive intelligence is a formal approach to obtain information about an organization’s competitors. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 88. A complex but important method of gathering information about an organization’s competitors is to study a competitor’s websites for information about their strategies and plans a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Methods of Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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89. When identifying environmental events and trends, countertrends seem to develop in tandem with the trends. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

90. Environmental changes, events, and trends impacting organizations develop in isolation from each other. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

91. Competitive intelligence can be referred to as business intelligence. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

92. Identify and briefly describe the four sources that HR planners use to keep current with business and HR trends.

ANSWER: 1. Publications – HR professionals can actively scan Canadian newspapers, business publications, and HR magazines, journals, and newsletters. These publications can originate in Canada and/or the U.S. POINTS: 1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 93. Professional associations – These are organizations that professionals join to keep current with what is going on in their fields of study. Examples of these include the Human Resources Professionals Association (HRPA), the Canadian Society for Training and Development (CSTD), and The Canadian Payroll Association.

3. Conferences and seminars – Conferences, seminars, and workshops are an excellent way to stay current within the field. These have an educational component and usually include information on leading-edge trends and changes in the field.

4. Professional consultants – Experts in particular fields specialize in certain areas, such as human resource information systems or organizational development. Organizations that want the most up-to-date information on a particular area will hire external consultants to assist them.

PTS: 10 REF: Environmental Scanning Sources and Methods KEYWORD: Bloom’s Remember lxxiv

2. Identify three challenges in environmental scanning.

ANSWER: 1. It is not possible to accurately predict the future and to isolate what is really important to HR. 2. So much change is occurring in so many areas that scanners have trouble selecting the significant events.

POINTS: 1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

94. Few trends exist in isolation. It is difficult to correlate a particular issue such as a labour shortage in a particular area with one particular causal factor.

PTS: 10 REF: Challenges in Environmental Scanning KEYWORD: Bloom’s Higher Order 3. Identify and describe two of the six environmental factors affecting HRM. ANSWER: 1. Economic climate – Several economic factors, such as unemployment rates, the value of the Canadian dollar, and interest rates, may have an impact on HRM. Two economic trends discussed in your textbook are globalization and the knowledge economy.

2. Globalization – This is the growth in flows of trade and financial capital across borders. Globalization affects sovereignty, prosperity, jobs, wages, and social legislation. The shift in the global economy has been marked by the rapid growth of emerging economies such as India and China. These countries had workers who were willing to work longer hours for less money than workers in more developed countries.

3. Political and legislative factors – Governments, both provincial and federal, can influence the business environment through political programs that result in changes to laws and regulations. Examples of these are the changes to mandatory retirement in Ontario and tax cuts for job creation.

POINTS: 1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 95. Technological factors – Technology is the process by which inputs from an organization’s environments are transferred to outputs. Technology includes tools, machinery, equipment, and software.

5. Demographic factors – Population changes affect HR significantly. Examples of these are the retirement of baby boomers, the influence of women in the workforce, and Generation X and Y employees. The most important demographic factor is the labour market. The labour market is the area from which an organization recruits its employees. This could include local, regional, provincial, national, or international areas. The number of people available for work depends on factors such as unemployment rates, geographic migration, and graduation rates. In the 21st century, labour markets are becoming more and more international.

6. Social and cultural factors – Social and cultural factors are extremely complex. Social factors are those that specifically define a social group, entity, or stakeholder group. These factors might be formally or informally determined by laws and regulations or through organizational channels such as discipline and terminations. Cultural factors typically encompass the belief systems (values, attitudes, ethics, norms) attached to certain ethnicities, social groups, or organizational groups.

PTS: 10 REF: Environmental Factors KEYWORD: Bloom’s Higher Order 4. Define “stakeholders” and identify five major stakeholders influencing strategy in today’s workplace.

ANSWER: Stakeholders are groups of people who have an interest in the projects, policies, or outcomes of an organization’s decisions. Stakeholders are also known as constituent groups. Some stakeholders are more powerful in influencing an organization.

Typically, the most powerful stakeholders will include: ? the board of directors and senior executives ? senior management ? supervisors ? employees ? unions richard@qwconsultancy.com

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Other stakeholders will include: shareholders, customers, vendors/suppliers, the public, government, nongovernment organizations, and any interested party who might be influenced by an organization’s decisions.

POINTS: 10 REFERENCES: Environmental Factors QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

96. Identify and briefly describe the four stages that HR planners use to analyze the external environment.

ANSWER: 1. Scanning: an attempt to identify early signals of changes and trends in the environment. This information is ambiguous, incomplete, and unconnected.

2. Monitoring: a systematic approach to following some key indicators that may affect the organization, such as legislative changes.

3. Forecasting: after monitoring a trend, an attempt to project the possible impact on the organization.

4. Assessing: an attempt to describe the impact of the monitored trend on the organization and make a judgment of the probability of each of several possible outcomes. For example, what would be the impact of a trend in the increase of social networking sites?

POINTS: 10 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

97. Identify and briefly describe the four criteria suggested for HR planners to use for identifying significant trends ANSWER: 1. Are there ripple effects (change in one aspect impacts another, such as social networking sites affecting both friendships and professional relationships)?

2. How profound are the impacts on people’s priorities, roles, and expectations?

3. How large is the impact scope (number of people impacted)?

4. Will the changes endure over time?

POINTS: 10 REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

98. Describe three actions that can be taken by HR managers to cope with economic uncertainty ANSWER: Actions taken by HR managers to cope with economic uncertainty include linking employee performance with organizational goals, increasing expectations of employee productivity, putting emphasis on succession planning and readiness, investing in leadership development, using non-cash rewards such as time off, time flexibility, learning opportunities, and retraining employees for new jobs.

POINTS: 10 REFERENCES: Environmental Factors QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

99. Illustrate the environmental analysis process. lxxvi

ANSWER: Refer to “Figure 3.1 – The Environmental Analysis Process” in your textbook.

POINTS: 10 REFERENCES: Environmental Factors QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

100. Consider a major event that took place this past decade. Describe how this event would have affected human resource planning at the time it occurred as well as its influence on future human resource planning.

ANSWER: Some possible events 2017 harassment scandals; the 2014 rise of terrorism; the 2013 floods in Alberta; 2017 floods in BC; or the 2008– 2009 economic meltdown.

HR planners want to track trends that influence the way in which employees can be managed. As a result of 9/11 and SARS, most large organizations now have emergency plans in place for the safety of their employees and buildings.

POINTS: 10 REFERENCES: Chapter Introduction- Environmental Influences on HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

101. HR strategists need information about their environment in order to exploit the opportunities or cope with the threats. Refer to an organization you are familiar with either from your own experience or one you have read about in the news or in your textbook. Describe one environmental threat or opportunity and how this environmental concern influenced the strategic HR planning for your chosen organization.

ANSWER: Environmental factors may influence different industries and businesses in a different way and to a different extent. The chapter-opening vignette describes how gas prices and environmental concerns of customers influenced the strategic planning at GM; similarly, customers’ attitudes toward nutrition and health may influence the business strategy of restaurants and food retailing chains.

Fear over pandemics, costs of fuels, technology development, and the demographics of the workforce all directly influence how work should be designed and how HR should be managed. Being aware of knowledge workers’ increasing preference for work–life balance and challenges, Google was among the first to create work–life balance programs as well as flexible job design to attract and motivate top talent. This created a competitive advantage in the company’s human resources competency and engagement that enabled the company to continuously grow and outperform others.

POINTS: 10 REFERENCES: Chapter Introduction- Environmental Influences on HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 102. Learning about competitors’ moves is a critical early step in environmental scanning allowing organizations to respond before the competitor’s new offerings materialize. Define competitive intelligence (or business intelligence) and two methods that HR professionals can use to understand their competitors.

ANSWER: Competitive intelligence (or business intelligence) is a formal approach to obtain information about competitors. The simplest method is to study competitors’ websites for information about their strategies and plans for product launches. Training employees to ask questions from vendors about the purchasing decisions of their competitors is another method. Some organizations hire competitors’ employees to obtain insider information about future plans. These practices border on illegal or unethical. Competitive intelligence methods must be subjected to two evaluation questions: Is the source reliable, and what is the likelihood of the information being correct?

POINTS: 10 richard@qwconsultancy.com

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REFERENCES: Methods of Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

103. In the context of environmental scanning, just as there is a reaction for every action, for every trend there is a countertrend, and countertrends seem to develop in tandem with the trends. Discuss this view, providing an example.

ANSWER: One challenge in environmental scanning is that few trends exist in isolation. Take the issue of the difficulty of finding employees where labour shortages exist. There is a growing concern that companies will be unable to find enough tradespeople. If this problem is addressed in isolation, two solutions might be to (1) increase the number of spaces for apprentices in trade programs and/or (2) recruit tradespeople from other countries. But other trends may influence the ability to fill these jobs. The use of robots may change the need for skilled workers.

The abolishment of mandatory retirement may encourage more tradespeople to continue working.

POINTS: 10 REFERENCES: Challenges in Environmental Scanning QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

104. List five major challenges involved in environmental scanning for the effects of globalization on the labour market in Canada. Refer to an organization you are familiar with either from your own experience, or one you have read about in the news or in your textbook. Describe one challenge, providing an example. Consider the potential impact of globalization on the organization and its strategy and how HRM should be adapted as a result.

ANSWER: Relevant factors include: Unemployment rates Fuel cost Strength of Canadian dollar Public debt and deficit Interest rates McDonald’s has a great deal of experience in globalization, and when the company launches a restaurant in a new country, it works closely with all disciplines to “McDonaldize” a team so that they know the business inside out.

Eighteen to 24 months before the restaurant is opened, the company starts with HR. Some of the HR challenges McDonald’s has faced in other countries include the fact that part-time employment and multifunctional jobs did not exist.

POINTS: 10 REFERENCES: Environmental Factors QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

105. Refer to Scenario: Swimco. The goal of environmental scanning is to identify trends in the external environment that might affect the formulation and implementation of both organization and HR strategies. (1) Define environmental scanning. (2) How might Swimco identify changes to its external environment (e.g., what are the steps Swimco could undertake to analyze its external environment)? (3) How might Swimco monitor these trends (e.g., what sources of information might it use)? (4) List six elements that Swimco needs to consider in scanning its external environment.

ANSWER: Environmental scanning: The systematic monitoring of trends affecting the organization. The goal of environmental scanning is to identify trends in the external environment that might affect the formulation and implementation of both organizational and HR strategies.

The analysis of the external environment consists of four stages. lxxviii

∙ Scanning: An attempt to identify early signals of changes and trends in the environment. This information is ambiguous, incomplete, and unconnected. ∙ Monitoring: A systematic approach to following key indicators that may affect the organization, such as legislative changes. ∙ Forecasting: After monitoring a trend, an attempt is made to project the possible impact on the organization. ∙ Assessing: An attempt to describe the impact of the monitored trend on the organization, and make a judgment of the probability of each of several possible outcomes.

Sources of information that Swimco can rely on for information include: ∙ Publications ∙ Professional associations ∙ Conferences and seminars ∙ Professional consultants Elements that need to be considered in Swimco’s external environment: ∙ Competition ∙ Socio-economic factors ∙ Legal and ethical factors ∙ Political climate ∙ Technological advances ∙ Labour market situation POINTS: 10 REFERENCES: Environmental Scanning Sources and Methods QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

106. Refer to Scenario: Swimco. Swimco monitors a number of environment factors that might affect its organization. Describe two factors that Swimco would be scanning, providing examples. You will want to consider the potential impact of the factor on the organization and its strategy in the company’s future and how HRM can be adapted in response to the changing environmental factors.

ANSWER: One possible example would be technology. Refer to HR Planning Notebook 3.4, Impact of Technology on Organizations, as well as Chapter 8.

POINTS: 10 REFERENCES: Environmental Factors QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

107. Describe the impact of technology on human resource management.

ANSWER: Requires changes in skills and work habits of employees: Employees have to be provided with constant training, and skills are no longer viable for decades.

Elimination of some lower-level positions and layers of management: Routine tasks, normally done by those lowest in the organization hierarchy, are automated, and the surviving employees need more advanced skills. Fewer managers and fewer layers of management are needed.

Less hierarchy, more collaboration: The adoption of technology decreases the need for management as a supervisory control technique. Power has shifted from management to technical workers, who hold the knowledge about system processes.

Telecommuting options: Telecommuting allows employees to locate farther from their offices, and allows employers to choose office facilities farther from major cities.

Electronic monitoring and employee privacy: Employers monitor email, social media etc. for several reasons, including legal compliance and liability, performance assessment and productivity measures, and security concerns.

POINTS: 10 richard@qwconsultancy.com

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REFERENCES: HR Planning Notebook 3.4 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

1. What type of forecasting method is concerned with existing assumptions based on historical data to create ratios of production or sales amounts to human capital needs? a. process-based rules b. event-based rules c. norm-based rules d. transaction-based rules ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

2. Which of the following is one of the forecasting method categories? a. norm-based rules b. indirect-based models c. null-based models d. inverse-based models ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

3. If an organization does not incorporate information from the external environment, what impact will this have on HR forecasting? a. lack of specificity in HR forecasting from top management b. elimination of personnel policies that are irrelevant to competitors c. incompatibility between organizational goals and HR planning d. avoidance of producing environmental scans with organizational input ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

4. Which of the following is a critical skill to the HR planning function? a. communication b. leadership c. planning d. forecasting ANSWER: a POINTS: 1 DIFFICULTY: Easy lxxx

REFERENCES: HR Planning Notebook 4.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 5. Which of the following would NOT be considered a “designated group”? a. immigrants b. women c.

Aboriginals d. disabled people ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

6. What type of forecasting occurs in the range of one to two years? a. current b. short-run c. medium-run d. rapid-run ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

7. If an organization wished to conduct HR forecasting for its operating cycle, which of the following time horizons should it use? a. current forecast b. short-run forecast c. medium-run forecast d. long-run forecast ANSWER: a POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

8. Which of the following is one of the forecasting method categories? a. scenario and focus group methods b. indirect- and direct-based models c. mathematical and econometric models d. inverse- and regression-based models ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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9. Which of the following is a quantitative human resource forecasting method? a.

Delphi Techniqueb. time series c.

Nominal Group Technique d. focus groups ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

10. What HR concept is defined as several HR estimates based on a variety of assumptions? a. projection b. prediction c. predetermination d. presumption ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

11. With reference to HR forecasting, how is the envelope analogy used? a.

It is a visual depiction used for HR communications. b.

It projects current HR supply and demand. c.

It sets the upper and lower boundaries for HR projections. d.

It is an estimate for a variety of HR assumptions.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

12. Which of the following best describes the human resource forecasting process? a. a basic pattern that flows from a micro perspective to a macro perspective b. a macro perspective that takes into account general trends in society and the economy c. a basic pattern that flows from a macro perspective to a micro perspective d. a micro-level perspective that focuses more directly on challenges that are specific to the organization ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

13. What type of human resource forecasting model is based on human judgment? lxxxii

a. qualitative b. quantitative c. econometric d. time series ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

14. Which of the following is a qualitative human resource forecasting method? a. time series b.

Delphi technique c. regression-based d. transaction-based ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

15. What type of forecasting occurs in the range of two to five years? a. current b. short-run c. medium-run d. long-run ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

16. Which concept refers to the process of reducing an HR surplus by allowing the size of the workforce to decline naturally from the normal pattern of losses associated with retirements, deaths, and voluntary turnover? a. attrition b. hiring freeze c. downsizing d.

HR surplus ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 17. What is created when the HR demand exceeds the current personnel resources available in the organization’s workforce? a.

HR surplus b.

HR shortage c.

HR scarcity d.

HR supply ANSWER: b POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

18. What type of human capital is valuable to the firm and cannot be easily transferred across organizations? a. firm-specific human capital b. technical human capital c. generic human capital d. financial human capital ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

19. How can organizations reduce their HR costs? a. use contingent workers whenever possible b. pay overtime only when necessary c. ensure that there are more than enough employees d. take a long-run planning approach to HR issues ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

20. What type of human capital represents the kind of knowledge that employees have that benefits the firm, and that requires a deep understanding of the firm’s systems, social structure, or customers? a. generic human capital b. financial human capital c. technical human capital d. firm-specific human capital ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

21. Which of the following is an external factor that affects HR forecasting? a. managerial appraisals b. competitor’s HR policies c. executive career planning d. training and development ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM lxxxiv

DATE MODIFIED:

9/13/2018 9:07 AM

22. How many years are typically used for a Moderate-run HR forecast? a.

1 to 2 years b.

2 to 3 years c.

2 to 5 years d.

5 to 10 years ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

23. Why are some individuals categorized into designated groups? a. because they are exceptionally skilled and need challenges b. because of their fragile emotional states c. because they require special attention d. because they need to be protected from discrimination ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

24. Which of the following is NOT related to attrition? a. retirements b. voluntary turnover c. terminations d. deaths ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

25. Which of the following is NOT a key area of focus for HR forecasting? a. specialist workersb. designated group members c. financial planners d. leadership talent ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

26. Models used in HR forecasting typically fall into one of three categories. What do cause-and-effect models assume? richard@qwconsultancy.com

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a. that there is an ongoing relationship between independent and dependent variables b. that the extrapolated trends will most influence future supply and demand c. that the time horizon used for the models is most conducive to short-term forecasts d. that the subjective judgment of experts supports the forecasts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 4.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

27. In regards to HR forecasting, greater attention must be paid to identifying with of the following human resources? a. workers representative of designated groups b. workers with creative abilities c. workers with social skills d. workers with communication skills ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

28. Which concept refers to a proposed sequence of events with its own set of assumptions and associated program details? a. contingency plans b. predictions c. projections d. scenarios ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

29. Which of the following is used by companies to minimize the negative impact on individuals during downsizing? a. flextime b. job sharing c. laying off employees equitably based on performance d. outsourcing ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM lxxxvi

30. What is the first step taken in an effective HR forecasting process? a. determining internal and external supply of labour b. identifying the gap between demand and supply c. determine staffing needs by skills, skill levels, or jobs d. determine demand requirements and develop a plan to address future needs ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

31. What HR concept is defined as a single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions? a. envelope b. prediction c. forecasting targets d. projection ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

32. Which of the following is an important step that HR would want to take before forecasting human resources? a. comprehend the impact of organizational variables b. understand HR policy and program implications c. environmental scanning d. institute effective HR forecasting policies and procedures ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Forecasting Process QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

33. HR forecasters must pay particular attention to monitoring which of the following human capital? a. workers with administrative skills b. workers holding qualifications that are in high demand c. workers with financial skills d. workers with communication skills ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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34. The Conference Board of Canada found that organizations reported three important long-term HR priorities.

What are these priorities? a. leadership development, workforce planning, and succession management b. employee engagement, aging workforce, and workforce planning c. capacity to innovate, labour cost containment, and succession management d. capacity to innovate, respond to rapid change, and contain labour costs ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Opening Vignette—Workforce Planning in Canada QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

35. In a survey of over 150 Canadian firms the Conference Board of Canada found that organizations reported three important long-term HR priorities. What are these priorities? a. labour cost containment, employee engagement, and workforce planning b. leadership development, workforce planning, and succession management c. respond to rapid change, contain labour costs, and aging workforce d. changing nature of work, planning management succession, and developing leaders ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Opening Vignette—Workforce Planning in Canada QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

36. What HR term is defined as the process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future? a.

HR projection b.

HR prediction c.

HR forecasting d.

HR gap analysis ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: What Is HR Forecasting?

QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

37. Firm strategy and environmental scanning are important steps in determining the kinds of activities and behaviours that are critical to organizational success. What HR process helps to determine how the knowledge, skills, abilities, and competencies that are necessary to demonstrate the required activities and behaviours are acquired by the firm? a. career development and mentoring b. training and development c. internal and external selection d. organization design ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: What Is HR Forecasting?

QUESTION TYPE: Multiple Choice HAS VARIABLES: False lxxxviii

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

38. A number of skills must be brought together to ensure that effective HR planning can take place. Which one of the following skills has NOT been proposed as critical to the HR planning function? a. communication skills b. quantitative skills c. qualitative skills d. process management skills ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

39. A number of skills must be brought together to ensure that effective HR planning can take place. Which one of the following skills has been proposed as critical to the HR planning function? a. communication skills b. leadership skills c. innovation skills d. time management skills ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

40. As artificial intelligence and the types of algorithms used to develop HR forecasts become more advanced what type of skill has become critical to the HR planning function? a. technical skills b. quantitative skills c. qualitative skills d. econometric skills ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

41. There are a number of advantages of HR forecasting for organizations. Which of the following is one advantage of HR forecasting? a. improved organizational strategy b. improved employees skills, knowledge, and abilities c. reduced HR costs d. alignment of human capital ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:07 AM

42. There are a number of advantages of HR forecasting for organizations. Which of the following is one advantage of HR forecasting? a. increasing organizational flexibility b. alignment of HR strategies c. improved organizational innovation d. alignment of HR processes ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

43. What is another term used for the knowledge, skills, abilities, and other characteristics (KSAOs) that are necessary for a person to perform well in their job? a. job specifications b. job analysis c. job description d. job design ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

44. What are the knowledge, skills, abilities, and other characteristics necessary for a person to perform well in a job derived from? a. job description b. job evaluation c. job analysis d. job specifications ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

45. What HR concept is defined as a shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirements? a. projection b. prediction c.

HR surplus d.

HR gap ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

xc

46. What HR term is defined as a situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirements? a.

HR projection b.

HR surplus c.

KSAOs d.

HR gap ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

47. HR forecasting process in a sequence of steps. What is the first step in the HR forecasting process? a. the determination the source of human capital b. the availability of internal supply of workers c. the calculation of organizational requirements d. the availability of external supply of workers ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

48. HR forecasting process in a sequence of steps. What follows the HR forecasting calculations concerning the demand for human resources? a. the evaluation of human capital requirements for current time horizons b. the evaluation of human capital requirements for future time horizons c. the determination of the source of human capital d. the availability of generic human capital ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

49. Human capital theory suggests that it takes time for investments in human capital to produce financial or productivity-based returns to an organization. What is the reason for this? a.

Firm-specific human capital takes time to develop into generic human capital. b.

Specialized human capital takes time to develop into generic human capital. c.

Generic human capital takes time to develop into firm-specific human capital. d.

Generic human capital takes time to develop into specialized human capital.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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50. What type of human capital represents the knowledge, skills, and abilities that are held by employees and that are useful to the firm? a. firm-specific human capital b. generic human capital c. social human capital d. natural human capital ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

51. What type of human capital represents the skills that employees have based on their tacit knowledge and learned from experience in the organization? a. generic human capital b. firm-specific human capital c. labour market human capital d. manufactured human capital ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

52. What type of human capital represents the types of skills that are of equal value to most any company and can be priced in the labour market? a. firm-specific human capital b. generic human capital c. manufactured human capital d. natural human capital ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

53. What type of human capital is very difficult for HR forecasters to determine labour market value? a. technical human capital b. natural human capital c. generic human capital d. firm-specific human capital ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

54. What type of human capital represents a potential source of competitive advantage from human capital? a. generic human capital b. financial human capital xcii

c. firm-specific human capital d.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

technical human capital

55. A data entry clerk uses their knowledge of the processes and people involved in making a change to a data entry screen to cut the time required to implement the change from one week to one day. What type of human capital is this an example of? a. generic human capital b. human capital stock c. human capital flow d. firm-specific human capital ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

56. Human resource forecasting tools that assess human capital requirements based on historical measures such as sales levels are focused on which of the following? a. human capital stocks b. human capital flows c. generic human capital d. firm-specific human capital ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

57. Human resource forecasting methods that are dependent on succession management, and that integrate turnover rates and employee movement are more focused on which of the following? a. human capital stocks b. firm-specific human capital c. human capital flows d. generic human capital ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

58. What HR concept is defined as the competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm? a. generic human capital b. firm-specific human capital c. human capital stock d. human capital flow ANSWER: a richard@qwconsultancy.com

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POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

59. What HR concept is defined as the competencies, knowledge, skills, and abilities that employees possess based on their tacit knowledge, and learned through mentorship in the organization? a. human capital stock b. human capital flow c. generic human capital d. firm-specific human capital ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

60. What HR concept is defined as the amount of any specific form of human capital that is available to the firm at any given time? a. human capital flow b. generic human capital c. human capital stock d. firm-specific human capital ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

61. What HR concept is defined as the change in the stock of human capital over time such as terminations, promotions, lateral movements, and demotions? a. firm-specific human capital b. human capital flow c. human capital stock d. generic human capital ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

Turtle Tanks Inc. Turtle Tanks Inc. designs and manufactures spherical-shaped septic tanks that, unlike rectangular tanks, are not buoyant when buried in land and stay put in high water tables. There is increased demand for them at resort and recreational properties, particularly lakeshore properties across Canada where buildings cannot be hooked up to municipal sewer systems. Among the many benefits of this product is that it meets high environmental standards and has recently won several “green product” awards. The company’s main office and manufacturing plant is located in Kelowna, B.C., but over the past two years, the company has expanded. It now has service offices in all provinces and one manufacturing plant in Winnipeg, Manitoba. As a result of the company’s continued major expansion, it xciv

anticipates that the required number of employees for locations outside B.C. will increase by 20 percent this year and that the need for local Kelowna employees will decrease by 10 percent. Turtle Tanks Inc. currently has 85 full-time employees. The HR manager, based in Kelowna, is busy forecasting the company’s human resources.

62. Refer to Scenario: Turtle Tanks Inc. Which of the following is one advantage of HR forecasting for Turtle Tanks Inc.? a. improved organizational strategy b. improved employee skills, knowledge, and abilities c. reduced HR costs d. alignment of human capital ANSWER: c RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:17 PM

63. Refer to Scenario: Turtle Tanks Inc. Turtle Tanks Inc. has shortages of human capital such that the company is unable to meet its current or forecasted human capital requirements. What is this situation called? a. projection b. prediction c.

HR surplus d.

HR gap ANSWER: d RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Easy REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:17 PM

64. Refer to Scenario: Turtle Tanks Inc. HR forecasting process in a sequence of steps. What is the first step Turtle Tanks Inc. would take in the HR forecasting process? a. the determination the source of human capital b. the calculation of organizational requirements c. the availability of internal supply of workers d. the availability of external supply of workers ANSWER: b RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:45 AM

richard@qwconsultancy.com

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65. Refer to Scenario: Turtle Tanks Inc. What would be the second step Turtle Tanks Inc. would take in the HR forecasting process? a. to evaluate its human capital requirements for its current time horizons b. to determine its sources of human capital c. to evaluate its human capital requirements for its future time horizons d. to determine the availability of generic human capital ANSWER: b RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:46 AM

66. Refer to Scenario: Turtle Tanks Inc. What type of human capital is a potential source of competitive advantage for Turtle Tanks Inc.? a. generic human capital b. financial human capital c. firm-specific human capital d. technical human capital ANSWER: c RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:46 AM

67. Refer to Scenario: Turtle Tanks Inc. The HR Manager at Turtle Tanks Inc. would be paying particular attention to which of the following human capital? a. workers with administrative skills b. workers with financial skills c. workers with communication skills d. workers holding qualifications that are in high demand ANSWER: d RATIONALE: NARR: Turtle POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Turtle NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:47 AM

68. In reference to HR forecasting, contingency plans are implemented when severe, unanticipated changes to organizational or environmental factors completely negate the usefulness of the existing HR forecasting predictions or projections. a.

True xcvi

b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

69. HR forecasting is more reactive than proactive. a.

True b.

False ANSWER: False RATIONALE: (more proactive) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 70. HR supply is defined as the organization’s projected requirement for human resources. a.

True b.

False ANSWER: False RATIONALE: (HR demand) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

71. A proposed sequence of events with its own set of assumptions and associated program details is known as contingency planning. a.

True b.

False ANSWER: False RATIONALE: (scenarios) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

72. A serious problem develops in some organizations when the personnel planning process becomes connected to the overall business goals of the organization. a.

True b.

False ANSWER: False RATIONALE: (disconnected from) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

73. Effective HR forecasting focuses on a comparison between an organization’s current stock of workforce knowledge, skills, and abilities and the numbers and skill competencies desired in the workforce in the future. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: What Is HR Forecasting?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

74. HR forecasting is defined as the process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: What Is HR Forecasting?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

75. HR demand requirements must be found from either internal or external supplies of personnel. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: What Is HR Forecasting?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

76. Forecasting in terms of two to five years represents a short-run forecast. a.

True b.

False ANSWER: False RATIONALE: (medium-run forecast) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

77. Projection refers to several HR estimates based on a variety of assumptions. a.

True b.

False xcviii

ANSWER: True POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 78. The forecasting term “envelope” is synonymous with the term “projection.” a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

79. A projection incorporates several HR estimates based on few assumptions. a.

True b.

False ANSWER: False RATIONALE: (a variety of assumptions) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

80. HR forecasting will determine the supply of human resources but not the demand. a.

True b.

False ANSWER: False RATIONALE: (both supply and demand) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 81. Male university graduates who are disabled would constitute a “designated group” with respect to hiring in Canada. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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82. Prediction is best defined as a single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

83. A projection is a single numerical estimate of HR requirements associated with a specific time horizon and set of assumptions. a.

True b.

False ANSWER: False RATIONALE: (definition of prediction) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

84. Effective HR forecasting relies on obtaining a fine balance between global and local control of the process. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Forecasting Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 85. Persons who have invisible disabilities would constitute a “designated group” with respect to hiring in Canada. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

86. Job sharing is a government program that aims to help organizations mitigate temporary layoffs through a redistribution of work, earnings, and leisure time. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting c

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

87. Attrition is the process of reducing an HR surplus by allowing the size of the workforce to decline naturally due to layoffs and other forms of involuntary turnover. a.

True b.

False ANSWER: False RATIONALE: (voluntary turnover) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

88. Demand forecasting refers to the process of determining the source or sources of human capital to satisfy the organization’s demand. a.

True b.

False ANSWER: False RATIONALE: (Supply forecasting) POINTS: 1 REFERENCES: The Forecasting Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

89. Most organizations define the short-run forecast as the one that identifies requirements for two to five years into the future. a.

True b.

False ANSWER: False RATIONALE: (Moderate-run) POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

90. In reference to human resource forecasting, envelope is the range of plausible values of a prediction based on a given set of assumptions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

ci

91. The demand for and supply of workers need to be determined before the senior management team can decide on the organizational strategy and specific programs to reconcile the differences between the requirement for labour in various employment categories and its availability, both internally and in the organization’s environment. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Forecasting Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

92. Workforce planning in most Canadian organizations today has a short-term focus (no more than two years), a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Opening Vignette-Workforce Planning in Canada KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 93. Most Canadian organizations today tend to plan for their workforce based on the firm’s immediate needs or gaps between human capital demand and supply. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Opening Vignette-Workforce Planning in Canada KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

94. Workforce planning activities in most Canadian organizations today are based largely on current headcounts of employees or historical requirements for employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Opening Vignette-Workforce Planning in Canada KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

95. Workforce planning practices in most Canadian organizations today focus on questions that relate to the business strategy and how the firm’s human capital needs flow from the strategy. a.

True b.

False ANSWER: False cii

POINTS: 1 REFERENCES: Opening Vignette-Workforce Planning in Canada KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

96. Organization design is an important step in determining the kinds of activities and behaviours that are critical to organizational success. a.

True b.

False ANSWER: False RATIONALE: (Firm strategy and environmental scanning) POINTS: 1 REFERENCES: What Is HR Forecasting? KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

97. Firm strategy and environmental scanning helps to determine how the knowledge, skills, abilities, and competencies are acquired by an organization. a.

True b.

False ANSWER: False RATIONALE: (organization design) POINTS: 1 REFERENCES: What Is HR Forecasting?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

98. In general, HR forecasting is most beneficial when demand is high for jobs, particularly specialized jobs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

99. HR forecasting can ensure that the necessary human capital is available to the firm, whether human capital is abundant or scarce in the labour market. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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100. HR planners must be able to connect business challenges and business requirements to human capital requirements in order to be successful. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

101. Understanding the actions and outcomes that drive success in the business is critical to the ability to forecast the human capital necessary to perform those actions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

102. The knowledge, skills, abilities, and other characteristics that are necessary for a person to perform well in a job are referred to as job specifications. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

103. The knowledge, skills, abilities, and other characteristics that are necessary for a person to perform are derived from job specifications. a.

True b.

False ANSWER: False RATIONALE: (job analysis) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

104. A shortage of human capital such that the organization is unable to meet its current or forecasted human capital requirements is called an HR surplus. a.

True b.

False civ

ANSWER: False RATIONALE: (HR gap) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

105. A situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirements is known as an HR gap. a.

True b.

False ANSWER: False RATIONALE: (HR surplus) POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 106. An organization’s projected requirement for human capital is called human resources demand. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

107. The source of human capital to meet demand requirements, obtained either internally or from external agencies, is human resources supply. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

108. In reference to HR forecasting, organizational requirements must take precedence over issues of resource constraint and scarcity. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Strategic Importance of HR Forecasting KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:07 AM

109. Human capital theory suggests that investments in human capital to produce financial or productivity-based returns can occur quickly in an organization. a.

True b.

False ANSWER: False RATIONALE: (takes time) POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

110. Firm-specific human capital takes time to develop into generic human capital. a.

True b.

False ANSWER: False RATIONALE: (reverse) POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

111. Since it takes human capital to develop human capital, HR forecasting must take into account both the stock and flow of human capital. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

112. Some management scholars suggest that the current skills gap in North America is largely attributable to the fact that companies have been ignoring the flow of human capital within their firms. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

113. Forecasting tools that assess human capital requirements based on historical measures such as sales levels are inherently more focused on human capital flows. a.

True cvi

b.

False ANSWER: False RATIONALE: (human capital stocks) POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

114. Forecasting tools that are dependent on succession management, and that integrate turnover rates and employee movement such as promotions, are more focused on human capital stocks. a.

True b.

False ANSWER: False RATIONALE: (human capital flows) POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

115. The competencies, knowledge, skills, and abilities that are held by individual employees and that are useful to the firm are referred to as generic human capital. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

116. Firm-specific human capital comprises the competencies, knowledge, skills, and abilities that employees possess based on their tacit knowledge and that learned from experience in the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

117. Human capital stock refers to the amount of any specific form of human capital that is available to the firm at any given time. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

118. Examples of human capital flow factors include promotions and lateral movements. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

119. Human capital stock factors that affect the stock of human capital include terminations and demotions. a.

True b.

False ANSWER: False RATIONALE: (human capital flow) POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

120. As organizations move away from full-time employment, planners must begin to think more in terms of the kinds of skills or competencies that are required to fulfill strategic organizational challenges. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Job Requirements Versus Task Requirements QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

121. As organizations move away from full-time employment, planners must think more in terms of the types and numbers of jobs that are required to fulfill organizational needs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Job Requirements Versus Task Requirements QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

122. Particular attention must be paid to monitoring members of designated groups with respect to organizational opportunities. a.

True cviii

b.

False ANSWER: True POINTS: 1 REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

123. Workers who require lengthy preparatory training for attainment of a skill competency constitute a key area of focus for HR forecasting. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

124. The focus on external human capital supply is the key factor in the HR forecasting process.

F (relative balance of internal to external) PTS: 1 REF: Key Human Capital Analyses Conducted by HR Forecasters KEYWORD: Bloom’s Remember 58. Placeholder. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 125. Demand forecasting refers to the process of determining the organization’s requirement for specific forms of human capital. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Forecasting Process QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

126. Supply forecasting refers to the process of determining the source or sources of human capital to satisfy the organization’s demand. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Forecasting Process QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

127. Mentorship is an example of how employees can acquire firm-specific human capital competencies. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

128. The Conference Board of Canada found that organizations reported three most important long-term HR priorities. In reference to an organization you are familiar with either from your own experience, or one you have read about in the news or in your textbook, discuss these priorities.

ANSWER: ∙ developing leaders ∙ workforce planning ∙ succession management All these activities, including leader development, relate to the HR planning area. It is clear from these results that HR planning is a top priority of organizations.

Answers may highlight how organizations are successfully dealing with forecasting as a process, with particular emphasis on planning for the anticipated demand for human capital, how that human capital will be supplied to the firm, and the development of human capital within the firm.

Other answers may highlight how organizations are not dealing with the forecasting aspects of strategic HR planning. Workforce planning in most Canadian organizations today has a short-term focus (no more than two years) and tends to occur based on the firm’s immediate needs or gaps between human capital demand and supply. These planning activities are based largely on current headcounts of employees or historical requirements for employees.

Fewer firms employ more strategic HR planning practices that focus on questions that relate to the business strategy, and how the firm’s human capital needs flow from the strategy. These strategy-based forms of planning take a longer planning perspective, looking two to five years into the future. As HR planning becomes more strategic, the focus moves from headcounts to asking how human capital can be involved in solving organizational challenges that relate to delivering value to the customer.

POINTS: 10 REFERENCES: Opening Vignette-Workforce Planning in Canada QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

129. What is HR forecasting? Briefly describe the advantages that accrue to organizations from instituting effective HR forecasting procedures.

ANSWER: Constitutes the heart of the HR planning process and can be defined as ascertaining the net requirement for personnel by determining the demand for and supply of human resources now and in the future.

Benefits of HR Forecasting: ∙ reduces HR costs ∙ increases organizational flexibility ∙ ensures a close linkage to the macro business forecasting process ∙ ensures that organizational requirements take precedence over issues of constraint and scarcity POINTS: 10 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False cx

STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

130. Identify and describe the key personnel categories that are given the most attention by human resource forecasters. or Identify and describe the key personnel categories that are given the most attention by human resource forecasters.

Discuss the rationale for focusing on these personnel groups.

ANSWER: ∙ Specialist/Technical/Professional – workers holding trade qualifications that are in high demand or that require lengthy preparatory training for attainment of competency ∙ Employment-Equity Designated Group Membership – four main designated groups: people of Aboriginal descent, women, people with disabilities, and members of visible minorities ∙ Managerial and Executive Personnel – executives such as the CEO, president, vice-president, and other managers in the organization ∙ Recruits (New Entrants) – recruiting trainees either internally or externally POINTS: 1 REFERENCES: Key Human Capital Analyses Conducted by HR Forecasters QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

131. The human resource forecasting process in general can be described as following a basic pattern that flows from a macro perspective to a micro perspective. Describe the macro- and micro-level perspectives, providing an example.

ANSWER: The macro perspective takes into account general trends in society and the economy (see HR Planning Notebook 4.2 for a discussion of planning at the macro level), whereas the micro level focuses more directly on challenges that are specific to the organization. The planning process often moves from the macro level to the micro level as general organizational needs become specific departmental requirements.

POINTS: 10 REFERENCES: The Forecasting Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

132. The human resource forecasting process often moves from general organizational needs to specific departmental requirements. Describe this human resource forecasting process. or The human resource forecasting process in general can be described as following a basic pattern that flows from a macro perspective to a micro perspective. Describe this human resource forecasting process.

ANSWER: The human resource forecasting process involves the following. ∙ Determine the staffing needs by skills, skill levels, or jobs. This macro-level activity begins with a thorough understanding of the organization’s strategy and environmental scanning in order to determine the relevant pieces of information and types of analyses that are most suited to what is being forecast. ∙ Perform the analyses to determine the number of required employees. This involves an assessment of in-house skills and other internal supply characteristics as well as a determination of the demand requirement that must be met from external sources. The type of analysis can be qualitative or quantitative, and the focus of the analysis can range from simple headcounts to strategic scenario planning. ∙ Create a budget to determine the costs involved in fulfilling the stated organizational requirements. ∙ Put HR programs and policies into place to ensure that the demand and supply requirements are met, and track the results. Measures of production, efficiency, employee performance, or group performance may be used to assess the results of the forecasting process.

POINTS: 10 richard@qwconsultancy.com

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REFERENCES: The Forecasting Process QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

133. List and briefly describe the HR programs that can be implemented to address HR surpluses and HR shortages.

ANSWER: ∙ HR shortages are addressed by: recruitment, selection, and compensation schemes to attract new personnel ∙ hiring part-time employees ∙ recalling laid-off workers or retirees ∙ hiring temporary workers ∙ HR surpluses are addressed through: o employee layoffs or terminations o job sharing o reduction of hours or shifts o hiring freeze and natural attrition POINTS: 10 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

134. Identify an organization you are familiar with (such as from your work experience or from the course textbook).

Describe the methods used by the organization to fill its anticipated future requirements for personnel.

ANSWER: In essence, there are two supply options: ∙ Internal supply, which refers to current members of the organizational workforce who can be retrained, promoted, and transferred to fill anticipated future HR requirements ∙ External supply, which refers to potential employees who are currently undergoing training (e.g., university students), working for competitors, members of unions or professional associations, or in a transitional stage, between jobs, or unemployed.

Typically, most organizations use a mix of both internal and external supply, rewarding loyal employees who perform well with promotion and advancement possibilities and recruiting outside individuals who possess competencies not held by the present workforce.

Refer to HR Planning Today 4.4 for a description of methods used by a British Columbia health authority to increase its supply of external and internal candidates.

POINTS: 10 REFERENCES: Environmental and Organizational Factors Affecting HR Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

135. A number of skills must be brought together to ensure that effective human resource planning can take place.

Discuss two skills that must be available to human resource forecasters.

ANSWER: When forecasting becomes a more involved process, a number of skills must be brought together to ensure that effective planning can take place. These skills do not need to be present in a single person but must be available to forecasters either within the HR function, or on a cross-functional planning team. The following skills have been proposed as critical to the planning function:

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∙ Communication skills. Forecasting involves the entire business, not just a single functional area. Communication skills are necessary to deal with multiple departments and stakeholders, and to ensure that the processes used (both quantitative and qualitative) have gathered as much information as possible. ∙ Quantitative skills. As artificial intelligence and the types of algorithms used to develop forecasts become more advanced, the need for quantitative skills to perform basic statistical analyses will likely decrease, but for now many forecasting methods rely on basic knowledge of statistical methods. Fortunately, a variety of statistical software packages are available today, as well as many tutorials, both in class and online, to help users develop the skills to use the software. ∙ Strategic skills. Forecasting is ultimately linked to the resources that are necessary to implement the firm’s strategy.

HR planners must be able to connect business challenges and business requirements to human capital requirements in order to be successful. Understanding the actions and outcomes that drive success in the business is critical to the ability to forecast the human capital necessary to perform those actions. ∙ Process management skills. This skill partners with communication skills to enable planners to arrive at a method or combination of methods that will provide a single, usable forecast. The information and the people necessary to arrive at a forecast often come from multiple functional departments within the organization, and often need to coordinate with external consultants. Managing the forecasting process itself can be a sizable task.

POINTS: 10 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

136. There are a number of advantages of HR forecasting for organizations. Discuss one advantage of HR forecasting, ANSWER: One advantage is reduced HR costs. Effective HR forecasting focuses on a comparison between the organization’s current job-related knowledge, skills, abilities, and other characteristics (KSAOs) that workers must have to perform successfully in the position and those desired in the workforce of the future. This inherent comparison facilitates a proactive, sequential approach to developing internal workers and is concurrent with activities focused on obtaining the best external recruits from competitors, universities, and training programs. In this manner, organizations can reduce their HR costs as they take a long-run planning approach to HR issues. This means that organizations will be less likely to have to react in a costly last-minute crisis mode to unexpected developments in the internal or external labour markets. Proper planning will ensure that any inefficiencies can be avoided as much as possible.

A second advantage is the increase in organizational flexibility, as HR forecasting is a proactive process that increases the number of viable policy options available to the organization. With regard to labour supply considerations, forecasting processes develop program options that can determine whether it is more advantageous and cost-effective to retrain or develop current members of the workforce to fill anticipated job openings or fill these openings with external recruits who already possess the required competencies and skills. Given that HR forecasting is predicated on trends, assumptions, scenarios, and various planning time horizons, the process itself encourages the development of a wide range of possible policy options and programs from which the HR staff can select.

Furthermore, each of the various HR programming options is ranked, subjected to cost–benefit analyses, and allocated organizational resources after being carefully examined as part of the HR forecasting process. Furthermore, by keeping the level of available human capital in step with operational requirements, the organization minimizes any HR gaps or surpluses.

Other advantages include ensuring a close linkage to the macro business forecasting process and ensuring that organizational requirements take precedence over issues of constraint and scarcity POINTS: 10 REFERENCES: The Strategic Importance of HR Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

richard@qwconsultancy.com

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137. Human capital theory suggests that it takes time for investments in human capital to produce financial or productivity-based returns to the firm. Discuss the reasons for this, providing examples. or Human capital theory suggests that it takes time for investments in human capital to produce financial or productivity-based returns to the firm and that human capital generally comes to the firm in the form of generic human capital, which over time develops into firm-specific human capital. Define and provide an example of generic human capital and firm-specific human capital.

ANSWER: Generic human capital represents the knowledge, skills, and abilities that are held by employees and that are useful to the firm. It is called generic human capital because these types of skills are of equal value to most any company, and so this value can be priced in the labour market. For example, most firms benefit from the skills of a chartered accountant, and because these skills are of equal value across almost any company, a chartered accountant is able to price that value, and to require payment for those skills at their full value. The ability to determine a market cost for labour limits the amount of value that the firm can acquire from these skills, since the value that is captured for the firm through the deployment of that human capital flows almost completely to the employee. Firm-specific human capital, on the other hand, represents the kind of knowledge that employees have that benefits the firm, and that requires a deep understanding of the firm’s systems, social structure, or customers.

Firm-specific human capital represents the skills that employees have based on their tacit knowledge and learned from experience in the firm and through mentorship. An example of firm-specific human capital could be using one’s knowledge of the processes and people involved in making a change to a data entry screen to cut the time required to implement the change from one week to one day. Because firm-specific human capital is valuable to the firm, but cannot be easily transferred across organizations, it is very difficult for the employee to determine this value in the labour market. Consequently, the firm is able to retain much of the value of firm-specific human capital, which represents a potential source of competitive advantage from human capital.

POINTS: 10 REFERENCES: The Value of Human Capital to the Firm QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

138. Refer to an organization you are familiar with either from your own experience, or one you have read about in the news or in your textbook. Define what HR forecasting means and its strategic importance to the organization.

ANSWER: HR forecasting can be defined as the process of ascertaining the net requirement for human capital by determining the demand for and supply of human resources now and in the future. Forecasting is deeply embedded within the organization’s strategy and structure. Firm strategy and environmental scanning, as discussed in chapters 2 and 3, are important steps in determining the kinds of activities and behaviours that are critical to organizational success. Organization design helps to determine how the knowledge, skills, abilities, and competencies that are necessary to demonstrate the required activities and behaviours are acquired by the firm (e.g., through career development and mentoring, training, or external selection). Forecasting works within these boundary conditions to fulfill the firm’s requirement for human capital.

Effective strategic HR forecasting can reduce HR costs, increase organizational flexibility, ensure a close linkage to the macro business forecasting process, and ensure that organizational requirements take precedence over issues of constraint and scarcity.

POINTS: 10 REFERENCES: What Is HR Forecasting?

QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

139. Analyze Case Incident: Turtle Tanks Inc. Throughout your case incident analysis, assume the role of a human resources consultant. Your task is to advise the organization on how it should align its strategic human resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the causes of the cxiv

problem/opportunity, identify solutions, and recommend a plan for implementation and justification. Please be specific about the approaches and methods you would recommend to facilitate the workforce forecasting process.

ANSWER: Refer to the textbook sections “Key Human Capital Analyses Conducted by HR Forecasters,” “The Forecasting Process” and “Environmental and Organizational Factors Affecting HR Forecasting.”

NARR: Turtle Tanks Inc. POINTS: 1 REFERENCES: Forecasting Activity Categories and Determining Net HR Requirements QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

1. What is the most common operational index used by organizations in a ratio analysis? a. sales level b. units produced c. clients served d. production hours ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

2. Which forecasting technique provides a long-run qualitative forecast where experts meet and give their assessments about the future? a.

Delphi technique b. critical incident technique c. repatriation technique d. nominal group technique ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

3. According to the textbook, when the Delphi technique was used to identify competencies for research chef, which of the following was NOT a topic for consideration? a. factors that differentiate successful from unsuccessful research chefs b. years of experience for successful and unsuccessful research chefs c. skills and knowledge needed to be a successful research chef d. tasks that differentiate a successful research chef from an ordinary chef ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

richard@qwconsultancy.com

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4. In the Delphi technique, why do the experts NOT meet face-to-face? a.

They do not have the time. b.

They want to lower costs. c.

They worry about groupthink. d.

They lack communication expertise.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 5.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

5. What type of analysis reveals the historical relationship between the operational index and the demand for labour? a. correlation b. multivariate c. trend d. regression ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

6. In a simple regression prediction model, what does B represent? a. dependent variable b. constant or intercept c. slope of the linear relationship between X and Y d. independent variable ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

7. What method of estimating HR demand extrapolates historical organizational indices to forecast future personnel needs? a. trend analysis b. ratio analysis c. cohort analysis d. impact analysis ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

8. What type of quantitative forecasting method that attempts to forecast future human capital needs by extrapolating from historical changes in one or more organizational indices? a. trend analysis b. regression analysis cxvi

c. time series model analysis d.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

structural equation modelling analysis

9. Typically, how is most of the expert information gathered using the Delphi technique? a. interviews b. discussion groups c. teleconferencing d. questionnaires ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

10. According to the textbook, what is one disadvantage of the Delphi technique? a. groupthink b. shyness c. time and costs d. communication ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

11. What technique should be used if you want all the participants to have equal participation in the sessions and to minimize dominance, personal attacks, and defensive behaviour? a.

Delphi technique b. critical incident technique c. repatriation technique d. nominal group technique ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

12. Why are assumptions necessary when implementing the steps of the nominal group technique? a. to minimize the chance that expert estimates will be misinterpreted b. to make sure that the group is not dominated by one expert estimate c. to eliminate the necessity for experts to defend their estimates d. to ensure the validity and confidentiality of the expert estimates ANSWER: a POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 13. What stage in the nominal group technique would typically ask a question like, “What will Concord Corporation’s demand for production workers be in the year 2017?” a. select the experts b. meet face to face c. define the question d. discuss demand estimates ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

14. How do the experts finally agree on a solution in the nominal group technique? a. by defending their perspectives b. by voting for the best estimate c. by lobbying the other group members d. by ranking the solutions with a secret vote ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

15. What federal government agency provides expert information for labour demand forecasting? a.

National Occupational Classification b.

Citizenship and Immigration Canada c.

Conference Board of Canada d.

Statistics Canada ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

16. If you want to determine the total HR demand requirement for operational or short-run time periods, what type of information should you gather? a. staffing table b.

HR budget c. impact analysis d. envelope/scenario forecasts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: Multiple Choice HAS VARIABLES: False cxviii

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

17. In the Delphi technique, why does the project coordinator continue to issue questionnaires to the experts? a.

Current information has not been optimal, and so further information is required. b.

Additional information still needs to be gathered regarding the predetermined questions. c.

Information gathered to date has not led the group to make a consensual decision. d.

Current information is insufficient in some way that is required to make future supply estimates.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

18. Which of the following is NOT considered a benefit of the nominal group technique? a. supports brainstorming b. lower costs and time c. equal participation d. reliable and valid ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 5.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

19. If HR specialists use multiple predictor estimates of the future demand for personnel based on a variety of differing assumptions about how future events will unfold, what type of forecasting technique or analysis are they using? a.

Delphi technique b. nominal technique c. impact analysis d. scenario forecast ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

20. Which of the following demand forecasting methods is NOT a quantitative method? a. trend analysis b.

Delphi technique c. regression analysis d. staffing table ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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21. There are six steps associated with the Delphi technique for HR demand forecasting. What is the first step? a. identify the experts, terms, and time horizon b. issue the first round of questionnaires c. select the experts d. define and refine the issue or question ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

22. What is another name for the dependent variable in the simple regression prediction model? a. causal variable b. target variable c. linear variable d. random variable ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

23. What do you call the observed relationship between the independent and dependent variables? a. causal b. direct c. linear d. indirect ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

24. Organizations interact with their changing environments. Which of the following is an environment factor that aids HR forecasters in predicting the demand for a particular job? a. customers b. sales levels c. production levels d. policies ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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25. When trying to forecast the number of employee hours required for work in a retail store during December, the HR planner used last December’s ratio of total sales to total hours worked as the basis for an estimate for the current year’s needs. What forecasting model is the HR planner using to predict future HR demand? a. times series model b. regression model c. projection model d. production model ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

26. What type of analysis presupposes that a linear relationship exists between sales and the number of employees? a. ratio b. multivariate c. trend d. regression ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

27. What would be two human resource quantitative forecasting demand techniques? a. regression analysis and trend projection techniques b. extrapolation and transition matrices techniques c. indexation and replacement chart techniques d. budget analysis and skills inventory techniques ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

28. What would be two human resource qualitative forecasting demand techniques? a. regression analysis and trend/ratio analysis techniques b. extrapolation and transition matrices techniques c. scenario planning and nominal group techniques d. budget analysis and skills inventory techniques ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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29. The Oakland Athletics baseball team used statistical cause-and-effect models for HR planning. What do causeand-effect models assume? a. that there is an ongoing relationship between independent and dependent variables b. that the extrapolated trends will influence future supply and demand c. that the time horizon used for the models is most conducive to short-term forecasts d. that the subjective judgment of experts supports the forecasts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

30. Tiger Boots, a footwear retailer, is currently determining its HR demand using ratio analysis. What would be a key operational index used by Tiger Boots in a ratio analysis? a. sales level b. human resources c. clients served d. production hours ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

31. What would be the first step in HR forecasting once an organization has identified its organizational goals, objectives, and plans? a. to examine data from a variety of perspectives b. to determine the overall demand requirements for personnel (i.e., what staff are needed, when, and where) c. to assess in-house skills and other internal supply characteristics d. to determine the net demand requirements that must be met from external environmental supply sources ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

32. Which forecasting technique would an organization use if it wanted to conduct a long-run qualitative forecast in which experts meet and give their assessments about the future? a.

Delphi technique b. critical incident technique c. repatriation technique d. nominal group technique ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM cxxii

DATE MODIFIED:

9/13/2018 9:07 AM

33. An organization wants to determine its total HR demand requirement for operational or short-run time periods.

What would be the best way to gather this information? a. use staffing tables b. use Markov analysis c. use impact analysis d. use scenario forecasts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Budgets/Staffing Table QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

34. An organization wants to determine the total HR demand requirement for long-run time periods. What would be the best way to gather this information? a. use staffing tables b. use movement analysis c. use impact analysis d. use scenario forecasts ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

35. An organization wants to develop a better understanding of what factors influence demand and supply, and what processes may be causing bottlenecks in the flow of human capital. What would be the best way to gather this information? a. use staffing tables b. use HR budgets c. use a simulation d. use scenario forecasts ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

36. An organization is using multiple predictor estimates of the future demand for human resources based on a variety of differing assumptions about how future events will unfold. What type of forecasting technique or analysis is it using? a.

Delphi technique b. nominal technique c. simulation d. scenario forecast ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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37. An organization wants to use a quantitative demand forecasting method. Which of the following is NOT a quantitative method? a. trend analysis b.

Delphi technique c. regression analysis d. staffing table ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

38. An organization wants to use a qualitative demand forecasting method. Which of the following is a qualitative method? a. trend analysis b. nominal group technique c.

HR budget d. staffing table ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

39. In reference to a systems perspective, what is the first step necessary to determine the demand for any job? a. to understand both the long-run qualitative and quantitative forecasts of jobs within the firm b. to understand how that job fits into the needs of the organization and how those job requirements interact with other jobs within the firm c. to understand both the needs of the organization and the long-run forecast of jobs within the organization d. to identify both the needs of the organization and human resources competencies required ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

40. There are two main factors that determine whether a quantitative model or qualitative model is a better choice.

Which of the following is one of these factors? a. the degree of uncertainty involved in the demand forecast b. the complexity of balancing supply and demand forecasts c. the estimates of the demand for labour d. the long-term environmental forecasts of labour ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False cxxiv

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 9/13/2018 9:07 AM

41. There are two main factors that determine whether a quantitative model or qualitative model is a better choice.

Which of the following is one of these factors? a. the estimates of the demand for labour b. the long-term environmental forecasts of labour c. the short-term environmental forecasts of labour d. the volume and complexity of the data available ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

42. For a medium-sized Canadian furniture manufacturing company the demand for recliner chairs is fairly stable, because the market for recliner chairs is fairly stable. Since there exists a comparatively high degree of certainty in the market, which of the following forecasting models would be an effective model for assessing the demand for labour for this company? a. a simple model based on a future forecast b. a simple model based on an existing forecast c. a structural equation model d. a model based on an existing forecast ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

43. Organizations interact with their always-changing environments. Which of the following is an environment factor that aids HR forecasters in predicting the demand for a particular job? a. compensation strategy b. human resources strategy c. sales levels d. economy ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

44. Which of the following forecasting methods is the most commonly used qualitative method for determining workforce requirements? a. nominal group technique b.

Delphi technique c. scenario planning d. management surveys ANSWER: d POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

45. Organizations interact with their constantly changing environments. Which of the following is an environment factor that aids HR forecasters in predicting the demand for a particular job? a. collective agreement b. company strategy c. competitors d. employees relative worth ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

46. What forecasting model or technique would be better when forecasting demand in a stable market when there is a high degree of certainty in the relationship between the demand for labour and the indicators of that demand? a. qualitative model b. quantitative model c. scenario planning d. expert surveys ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

47. As the volume and complexity of forecasting data increases and forecasting uncertainty becomes very high, which forecasting models would be preferable? a. quantitative models b. statistical models c. qualitative models d. structural equation models ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

48. What type of qualitative forecasting method is concerned with long-run forecasting utilizing expert assessments? a. nominal group technique b.

Delphi technique c. scenario planning d. structural equation modelling technique ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM cxxvi

DATE MODIFIED:

9/13/2018 9:07 AM

49. What type of quantitative forecasting method projects HR demand by analyzing the historical relationship between an operational index and the number of employees required? a. time series model analysis b. regression analysis c. ratio analysis d. structural equation modelling analysis ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

50. HR forecasters uses various statistical forecasting methods. What statistical technique permits the testing of multiple relationships simultaneously in a theoretically derived model? a. time series model analysis b. regression analysis c. ratio analysis d. structural equation modelling analysis ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Quantitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

51. Which of the following is a qualitative human resource forecasting method? a. time series b. nominal group technique c. regression analysis d. structural equation modelling technique ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

52. What forecasting method is the most commonly used qualitative method for gathering human resource demand information? a. nominal group input b. direct managerial input c. scenario planning group input d.

Delphi group input ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

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53. HR forecasters uses various qualitative forecasting methods. What qualitative technique is used to imagine future possible organizational states and the resulting capabilities, activities, or strategies that are necessary to be successful in those future states? a. management surveys b.

Delphi technique c. scenario planning d. nominal group technique ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

54. What qualitative forecasting process solicits and summarizes the forecasts and judgments of a selected group of experts in an attempt to determine the future HR demand? a. nominal group technique b. scenario planning c.

Delphi technique d. management surveys ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

55. What type of information do HR budgets take into consideration when used in forecasting human resource demand? a. industry experts and management knowledge b. line employee and union staff records c. historical company staffing trends and competitor staffing practices d. university researchers’ and business consultants’ data ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Budgets/Staffing Tables KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

56. What sources of information do HR budgets take into consideration when used in forecasting human resource demand? a. university researchers’ and business consultants’ data b. professional associations and Statistics Canada c. industry experts and management knowledge d. union and industry associations ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Budgets/Staffing Tables KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM cxxviii

57. What type of forecasting method is concerned with blending of quantitative and qualitative methods of analysis? a. simulation b. regression analysis c. scenario planning d. structural equation modelling ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

Canadian Engineering Shortages According to a new Engineers Canada labour market projection report, there are currently labour shortages in a number of engineering occupations, particularly civil, mechanical, electrical, and electronic engineers, as well as a shortage of computer engineers at both the provincial and national levels. Occupation data sourced from the Canadian National Household Survey and the Canadian Labour Force Survey indicate that engineering occupations’ employment and wages are increasing faster than in other occupations. Unemployment is very low, less than 1 percent for many engineering occupations, relative to historical data and to other occupation data. Replacement demand for engineers will be particularly relevant over the next decade as the baby boom generation retires.

Economic activity is generating a stronger demand for engineers in Western Canada than in Eastern Canada.

Out of the 14 different engineering occupations, the forecast for civil engineers is particularly high. It is projected that there will be an average of 2,500 job openings for civil engineers annually over the next five years. Growth in industries that employ civil engineers will generate about 1,000 of these openings each year. Another 1,500 of these job openings will be related to the replacement of retiring workers, given the high average age of 48 years old for civil engineers.

58. Refer to Scenario: Canadian Engineering Shortages. Indicators suggest that the demand for engineering occupations currently exceeds supply at the provincial and national levels. What is this estimate of demand and supply called? a. strategic human resource management b. human resource planning c. human resource estimating techniques d. human resource forecasting techniques ANSWER: b RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:49 AM

59. Refer to Scenario: Canadian Engineering Shortages. What would you call the process described in this scenario? a. strategic human resource management b. human resource planning c. linking human resource management with strategic planning d. human resource supply techniques ANSWER: b RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 2:19 PM

60. Refer to Scenario: Canadian Engineering Shortages. What do the Canadian National Household Survey and the Canadian Labour Force Survey reports attempt to do? a. predict the future demand and supply for a wide variety of Canadian occupations b. predict the future demand growth for a wide variety of Canadian occupations c. estimate the future demand and supply for Canadian workers d. predict the future demand and supply for Canadian engineering workers ANSWER: a RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:50 AM

61. Refer to Scenario: Canadian Engineering Shortages. The situation described in this scenario can be referred to as a tight labour market. What occurs in a tight labour market? a.

The supply of labour exceeds the demand for labour. b.

Labour supply and demand creates tension in the labour market. c.

The demand for labour exceeds the supply of labour. d.

Supply and demand create labour shortages.

ANSWER: c RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:50 AM

62. Refer to Scenario: Canadian Engineering Shortages. The growth in demand for civil engineering occupations has been strong due to the rising needs associated with the high number of retiring workers. Although countless challenges influence the demand for engineering professionals, what is the primary cause of demand in this case? a. external factors b. demographic factors c. labour market factors d. organizational factors ANSWER: b RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 cxxx

DATE CREATED: DATE MODIFIED:

9/13/2018 9:07 AM 1/18/2019 2:20 PM

63. Refer to Scenario: Canadian Engineering Shortages. What human resource technique is being used to gather the data for the Engineers Canada labour market projection report? a. human resource occupational planning b. human resource Markov analysis c. human resource audits d. human resource forecasting ANSWER: d RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:51 AM

64. Refer to Scenario: Canadian Engineering Shortages. Of the following options, what would be the most effective strategy to deal with the engineering shortages? a. utilize job sharing arrangements b. increase engineering school graduates c. use flexible contract arrangements d. use internal transfers ANSWER: b RATIONALE: NARR: Canadian POINTS: 1 DIFFICULTY: Difficult REFERENCES: Forecasting Demand QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Canadian NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 1/18/2019 8:51 AM

65. In a trend analysis, it is necessary to extrapolate data related to historical changes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

66. In an structural equation modelling, current trends are analyzed by a panel of experts to predict future HR demand. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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67. Trend analyses are complex since they require the analysis of multiple variables. a.

True b.

False ANSWER: False RATIONALE: (simple and use a single variable) POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

68. A staffing table forecasts the total HR demand required for operational or short-run time periods. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Budgets/Staffing TablesKEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

69. In the Delphi method experts do not meet, but they do in the nominal group technique. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

70. Simulation is a powerful blend of quantitative and qualitative analysis. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

71. A regression analysis is a linear equation between a single causal variable and multiple dependent variables. a.

True b.

False ANSWER: False RATIONALE: (one or more causal variables and one dependent) POINTS: 1 cxxxii

REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

72. A ratio analysis is a quantitative method of projecting HR demand by analyzing the relationship between an operational index and the number of employees required. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

73. In a simple regression, Y is the independent variable. a.

True b.

False ANSWER: False RATIONALE: (dependent variable) POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

74. Another name for the scenario forecast method is the projection forecast method. a.

True b.

False ANSWER: False RATIONALE: (envelope forecast) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

75. The Delphi technique is a quantitative method for deriving detailed assumptions of long-run HR demand. a.

True b.

False ANSWER: False RATIONALE: (qualitative) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

richard@qwconsultancy.com

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76. A deficiency of the Delphi technique is that the results cannot be verified statistically. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

77. The first step in the nominal group technique is to select the experts. a.

True b.

False ANSWER: False RATIONALE: (define the issue and time horizon) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

78. Scenario forecasting is based on the premise that, because the future course of events is not known with certainty, it is necessary to develop several plausible sets of outcomes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

79. Typical estimates for scenario forecasting are organized into optimistic, realistic, and pessimistic scenarios. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

80. In the simple regression prediction model, X represents the independent variable. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM cxxxiv

DATE MODIFIED:

9/13/2018 9:07 AM

81. Perceived status differences may influence how experts express their views when forecasting in face-to-face groups. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

82. Regression analysis is a very effective quantitative forecasting technique for all time horizons. a.

True b.

False ANSWER: False RATIONALE: (short-range, medium-range, and long-range time horizons, but not current) POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

83. If there are several dependent variables, then the regression is referred to as multivariate regression analysis. a.

True b.

False ANSWER: False RATIONALE: (independent variables) POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

84. In a simple regression equation, there is an assumption of linearity between the independent and dependent variables. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 85. The last stage in the nominal group technique is a secret vote that determines the highest ranking for the group’s HR demand solution. a.

True b.

False richard@qwconsultancy.com

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ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

86. HR budgets are a qualitative method of HR demand forecasting that estimates the number and types of personnel required by the organization. a.

True b.

False ANSWER: False RATIONALE: (quantitative) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

87. Unlike trend analysis forecasting, nominal group technique forecasting relies on subjective, but expert, judgments. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 88. HR demand refers to the future need for the firm’s skills requirements, the types of jobs and the number of positions that must be filled for the firm to implement its strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

89. The demand for human capital resources is determined by the strategic and operational requirements of the firm or business unit. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM cxxxvi

DATE MODIFIED:

9/13/2018 9:07 AM

90. Times series models use past data to predict future demand. They can range from very simple to highly complex. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

91. A regression analysis is a form of time series design that uses the data from the current year (period) to predict next year’s (period’s) demand, reflecting a linear relationship. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

92. Multivariate regression and other similar modelling/programming models depend on large amounts of reliable data. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

93. Estimates of the demand for labour in Canada have become increasingly uncertain over the past few years, primarily due to unsustainable forces affecting the economy. a.

True b.

False ANSWER: False RATIONALE: (conflicting forces) POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

94. Long-term forecasts in this uncertain environments will require more qualitative methods and simulations that permit exploring multiple scenarios. a.

True b.

False richard@qwconsultancy.com

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ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

95. The demand for human capital is determined by the strategic requirements of the firm. a.

True b.

False ANSWER: False RATIONALE: (and operational requirements of the business unit) POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 96. Understanding the demand for human resources begins with the firm’s strategy and flows from the valuegenerating activities of the firm. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

97. A systems perspective suggests that in order to determine the demand for any job, it is first necessary to understand how that job fits into the needs of the organization, and how those job requirements interact with other jobs within the firm. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

98. Forecasting demand begins with a clear understanding of how the firm brings value to the customer, and an estimate of the extent to which the market will want to consume the firm’s products or services. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM cxxxviii

DATE MODIFIED:

9/13/2018 9:07 AM

99. One main factor that determines whether a quantitative model or qualitative model is a better choice is the degree of uncertainty involved in the demand forecast. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

100. One main factor that determines whether a quantitative model or qualitative model is a better choice is the volume and complexity of the data that are available to assist in creating the demand forecast. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

101. In general, qualitative models are better when forecasting demand in stable markets when there is a high degree of certainty in the relationship between the demand for labour and the indicators of that demand. a.

True b.

False ANSWER: False RATIONALE: (quantitative) POINTS: 1 REFERENCES: Forecasting Demand QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

102. Trend analysis involves examining the relationship between an operational index and the demand for labour (as reflected by the number of employees in the workforce). a.

True b.

False ANSWER: False RATIONALE: (ratio analysis) POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

103. Quantitative models based on historical data may be the best indicator of future needs if the business or environment is in a period of significant transition. richard@qwconsultancy.com

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a.

True b.

False ANSWER: False RATIONALE: (may not be the best indicator) POINTS: 1 REFERENCES: Quantitative Methods KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

104. Structural equation modelling (SEM) is as a process similar to regression, except that SEM uses many outcome variables in a single theoretical model. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

105. The primary drawback to structural equation modelling (SEM) is that SEM typically requires more data observations than regression. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Quantitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

106. Regression analysis is a statistical technique that permits the testing of multiple relationships simultaneously in a theoretically derived model. a.

True b.

False ANSWER: False RATIONALE: (Structural equation modelling) POINTS: 1 REFERENCES: Quantitative Methods KEYWORD: Bloom’s Remember QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

107. Quantitative models can be very useful, especially in mature industries or where environmental changes are predictable or stable. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques cxl

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:07 AM 9/13/2018 9:07 AM

108. When there is a great degree of uncertainty, quantitative models may be preferable. a.

True b.

False ANSWER: False RATIONALE: (qualitative) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

109. Qualitative models may be useful when no formal planning exists and no formal data collection occurs around a planning process. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

110. Qualitative forecasting in the form of direct managerial input is the most commonly used method for determining workforce requirements. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

111. Scenario planning is a qualitative forecasting method for imagining future possible organizational states and the resulting capabilities, activities, or strategies that are necessary to be successful in those future states. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

richard@qwconsultancy.com

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112. The Delphi technique is a process in which the forecasts and judgments of a selected group of experts are solicited and summarized in an attempt to determine the future HR demand. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

113. The mominal group technique (NGT) utilizes expert assessments to achieve short-run human resource demand forecasts. a.

True b.

False ANSWER: False RATIONALE: (short-run) POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

114. A primary advantage to NGT is that it allows all participants to contribute to the process at an equal level by reducing the tendency for more extroverted individuals to dominate the process. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

115. Studies have shown that nominal group technique is especially effective for brainstorming sessions to ensure all participants have an equal voice in the sessions and when a problem stems from several widely diverse causes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

116. HR budgets are used to forecast quantitative, operational, or short-run demand estimates that contain the number and types of jobs required by the organization as a whole and for each subunit, division, or department. a.

True b.

False ANSWER: True POINTS: 1 cxlii

REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

117. The HR budget process produces a staffing table, which contains information related to a specific set of operational assumptions or levels of activity. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

118. The staffing table presents the total HR demand requirement, laid out in terms of the number of people required by level and function. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

119. HR budgets are used to forecast the total HR demand requirement for operational or short-run time periods. a.

True b.

False ANSWER: False RATIONALE: (staffing tables) POINTS: 1 REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

120. Quantitative and qualitative methods are not exclusive methods where the forecaster decides to use one method at the expense of the other. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

richard@qwconsultancy.com

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121. Quantitative and qualitative analyses can provide information that complement one another. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

122. A simulation is a quantitative model that incorporates a set of assumptions about relationships among variables in a mathematical algorithm. a.

True b.

False ANSWER: False RATIONALE: (blend of qualitative and quantitative modelling) POINTS: 1 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

123. Simulation can simultaneously model demand and supply and is very useful for testing the impact of assumptions on the outcome of the model. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

124. Describe ratio analysis and outline the steps involved in conducting this forecasting method. What are the most common operational indices used by organizations?

ANSWER: ∙ historical relationship between an operational index and the number of employees required by the organization (demand for labour) ∙ quantitative forecasting technique ∙ reveals the historical relationship between the operational index and the number of employees required by the organization (the demand for labour) Steps in conducting a trend analysis: ∙ Select the appropriate business/operational index. ∙ Track the business index over time. ∙ Track the workforce size over time. ∙ Calculate the average ratio of the business index to the workforce size. ∙ Calculate the forecasted demand for labour.

Common operational indices: ∙ sales level ∙ number of units produced ∙ number of clients serviced ∙ production hours (direct labour hours – DLH; indirect labour hours – ILH) POINTS: 10 REFERENCES: Quantitative Methods cxliv

QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM 125. Describe what an “expert” demand forecast is and list five different types of experts who could be involved.

Identify and describe two different types of expert forecasting methods.

ANSWER: An expert forecast is a qualitative process for determining future labour requirements, a detailed process of stating assumptions, considering potential organizational and environmental changes, and deriving a rationale to support the numerical estimate. Different experts that can be involved in the process are: ∙ line managers ∙ HR and business planning staffs ∙ business consultants ∙ financial analysts ∙ university researchers ∙ union staff members ∙ industry spokespersons ∙ federal, provincial, and local government staff (e.g., Human Resources Development Canada, Statistics Canada) Two different types of expert forecasting methods are the Delphi technique and the nominal group technique. The Delphi technique is a carefully designed program of sequential, individual interrogations (usually conducted through questionnaires) interspersed with information feedback on the opinions expressed by the other participants in previous rounds. Nominal group technique is a qualitative long-run forecasting technique utilizing expert assessments. Groups of experts meet face-to-face to discuss their individual findings on a specific issue and then silently vote or rank their findings on that issue.

POINTS: 10 REFERENCES: Qualitative Forecasting TechniquesKEYWORD: QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

126. What are some the advantages and disadvantages of the Delphi technique, where experts do NOT meet face-toface?

ANSWER: Advantages include: ∙ It avoids problems associated with face-to-face groups: mainly, reluctance of individual experts to participate because of shyness, perceived lower status or authority, perceived communications deficiencies, issues of individual dominance, and groupthink. ∙ It serves as a great equalizer. ∙ It elicits valid feedback from all members. ∙ It can draw information from people located in a variety of geographical areas.

Disadvantages of this method include: ∙ Time and costs increase due to questionnaire series administered. ∙ Results cannot be validated statistically. ∙ It is dependent on individual knowledge and commitment of experts. ∙ If experts are drawn from one professional field, their common professional training will guide them along a single line of inquiry rather instead of pursuing more innovative courses of action. ∙ If insufficient attention has been paid to developing criteria for the identification and selection of experts, the personnel selected to derive the demand forecasts may lack sufficient expertise or information.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM richard@qwconsultancy.com

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127. Describe how HR Budgets and staffing tables are applied in HR demand forecasting.

ANSWER: HR budgets are quantitative, operational, or short-run demand estimates that contain the number and types of personnel required by the organization as a whole and for each sub-unit, division, or department. ∙ HR budgets are prepared by the HR staff in conjunction with line managers. ∙ They consider historical trend information, competitor staffing practices, industry and professional associations, and Statistics Canada. ∙ They give a prediction or single estimate of future HR demand. ∙ The HR budget process produces a staffing table. ∙ Staffing tables have information related to specific operational assumptions (for example, increasing sales by five percent over last year). ∙ Staffing tables present the total HR demand requirement for operational or short-run periods.

POINTS: 10 REFERENCES: HR Budgets/Staffing Tables QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

128. What is envelope/scenario forecasting? Describe some of its features.

ANSWER: Envelope/scenario forecasting uses projections, or multiple-predictor estimates, of future HR demand for personnel based on a variety of differing assumptions as to how future organizational events will unfold. ∙ comprehensive future planning of operational and short-run HR demand ∙ multiple-predictor estimates ∙ several plausible outcomes developed based on the premise that we have certain knowledge of future events ∙ cause and effect events linked together ∙ brainstorming sessions with line managers and HR managers to develop scenarios ∙ combined expert view of the workforce over the next five years formulated ∙ works backwards to identify key change points POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

129. Describe the process of scenario planning, including its strengths and limitations in determining HR demand.

ANSWER: Scenario planning as a forecasting method is most often used to develop organizational strategy. A primary strength of scenario planning as a strategy-setting tool is that it encourages participants to develop strongly shared mental models of future organizational states. Scenario planning is a method for imagining future possible conditions in which the organization might operate. As a technique, it requires participants to challenge existing assumptions and to generate vivid pictures of possible future states.

The general process of scenario planning is as follows: ∙ State the question about the future state of the firm or environment. For example, “How many households will own an electric car in 10 years”? ∙ Generate a list of factors that are likely to influence the outcome in question. It is often useful to perform a SWOT analysis that takes into account factors such as the economy, the political landscape, society, and the impact of technology. ∙ Sort the factors into naturally occurring groups and rank the groups according to their importance to the change initiative and the ability of the firm to control the factor. Factors that the firm has less ability to control should receive higher rankings. ∙ Select the two groups of factors that are likely to have the strongest and most unpredictable impact on the question.

Create four quadrants (see Figure 5.5) by stretching one group along a continuum from its extreme negative cxlvi

condition to its extreme positive condition on the x-axis and the other group along a continuum from its extreme low to high conditions on the y-axis. ∙ Name and describe in story form each of the four worlds in the four resulting quadrants. ∙ Suggest the skills, competencies, and other organizational requirements that would be necessary for the firm to be able to operate in each of these four worlds. ∙ Generate a demand forecast necessary to fulfill the firm’s requirements in each of the four worlds.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

130. Estimates of the demand for labour in Canada have become increasingly uncertain over the past few years, primarily due to conflicting forces affecting the economy. Describe two of these conflicting forces.

ANSWER: On one hand, as baby boomers retire, there has been the expectation of a large increase in the demand for labour. By the year 2030, when the youngest baby boomers are expected to reach the age of 65, it is expected that between 22 percent and 24 percent of Canadians will be 65 years of age or older. However, not all baby boomers are choosing to retire at age 65. In 1997 a 50-year-old Canadian worker was expected to work another 13 years; by 2008 a 50-year-old worker was expected to work for another 16 years. Clearly, Canadians are remaining in the workforce longer. This increased participation has been attributed to factors including longer life expectancy, better health in older age, lower savings levels, and higher educational attainment. While the number of Canadians approaching retirement age is increasing dramatically, the rate of retirement might be slowing the resulting expected increase in demand for labour.

On the other hand, recent forecasts of the expected impact of workforce automation has produced dramatic estimates of the expected reduction in workforce participation due to automation. Some estimates of the impact of automation on the Canadian labour force suggest that almost 50 percent of Canadian jobs are at a high risk of being affected by automation in the next two decades. Other, more temperate estimates, suggest that the types of jobs in Canada that are at a high risk of automation account for less than 2 percent of employment. With the high degree of uncertainty around the future impact of automation on the Canadian workforce, long-term forecasting becomes much more difficult.

The other primary forces contributing to uncertainty around the future labour demand in Canada are the shifts to selfemployment and the sharing economy. The sharing economy refers to the services that are brought together through modern technology to provide services like accommodations for guests in people’s homes (such as Airbnb), transportation services for riders using privately owned vehicles (such as Uber), restaurant and grocery delivery services (such as Skip the Dishes), and crowdfunding platforms (such as GoFundMe). These types of work arrangements can be difficult to assess in terms of labour participation, and the impact of these services over the long term is uncertain due to shifts in technology and government regulations.

The combination of these factors contributes to a level of uncertainty that is very difficult to forecast using traditional quantitative modelling methods. Long-term forecasts in this type of environment will require more qualitative methods and simulations that permit exploring multiple scenarios.

POINTS: 10 REFERENCES: Opening vignette—Increase in Uncertainty Around the Demand for Labour in Canada QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

131. There are two main factors that determine whether a quantitative model or qualitative model is a better choice in determining HR demand. Describe these two factors.

ANSWER: Because of the variety in the complexity and levels of uncertainty in forecasting the demand for labour, there exist multiple forecasting methods. These methods can be divided into two main categories: quantitative methods and qualitative methods. The two main factors that determine whether a quantitative model or qualitative model is a better choice are the degree of uncertainty involved in the demand forecast, and the volume and complexity of the data that are available to assist in creating the demand forecast. richard@qwconsultancy.com

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In general, quantitative models are better when forecasting demand in stable markets when there is a high degree of certainty in the relationship between the demand for labour and the indicators of that demand. As the volume and complexity of data that are available increase, quantitative models can deal with higher levels of uncertainty, but when uncertainty becomes very high, qualitative models become preferable.

POINTS: 10 REFERENCES: Forecasting Demand QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

132. Researchers have found that experts are very often wrong in their human resources forecasting and that groups of people are very often correct in determining HR demand. Discuss the benefits of using groups of experts in an effort to increase the validity and reliability of both the forecast and the information used to formulate the forecast.

ANSWER: One of the issues with qualitative decision methods, as pointed out by Philip Tetlock in his book Expert Political Judgment: How Good Is It? How Can We Know?, is that experts are very often wrong. However, James Surowiecki finds that groups of people are very often correct. Qualitative forecasting methods such as the Delphi technique and nominal group technique make use of groups of experts in an effort to increase the validity and reliability of the forecast and of the information used to formulate the forecast. When a group of experts is involved in a forecasting exercise, each expert benefits from the knowledge and assumptions of all other experts involved. This way, the limitations of any single mental model used by any single expert are reduced by exposure to others. Furthermore, qualitative methods of forecasting such as these increase the reliability of the information by working through an iterative process where each expert has the opportunity to clearly explain his or her assumptions and decisions. This means that all experts share the same understanding of one another’s assumptions before arriving at a final forecast decision.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

133. There are six steps associated with using the Delphi technique for HR demand forecasting. List these steps.

Share an example of how the Delphi technique can be applied in HR forecasting.

ANSWER: ∙ Define and refine the issue or question. ∙ Identify the experts, terms, and time horizon. ∙ Orient the experts. ∙ Issue the first-round questionnaire. ∙ Issue the first-round questionnaire summary and the second round of questionnaires. ∙ Continue issuing questionnaires.

Refer to HR Planning Today 5.2 for examples of how the Delphi technique has been used. Two examples are in agricultural research and competencies of research chefs. Subsequent to the September 11, 2001, terrorist attacks on the United States, the Delphi technique was used by the government and insurance and risk managers to estimate the possibility of future losses due to terrorism, and the likely types of terrorist acts various organizations might experience. Experts used the Delphi technique to analyze databases on landmarks, tourist attractions, “vital points,” and property assessment data to come up with their forecasts.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM cxlviii

134. There are six steps associated with using the Delphi technique for HR demand forecasting. Discuss these steps.

ANSWER: ∙ Define and refine the issue or question. During this stage, a project coordinator is assigned, and he or she works with the HR staff to determine the specific job or skills category or activity that will be the focus of the Delphi technique. It is essential that the group targeted for HR forecasting be well defined so that relevant, focused, and detailed feedback based on a minimum of assumptions (redundant assumptions are associated with loss of the experts’ time) can be derived. ∙ Identify the experts, terms, and time horizon. The project coordinator, normally in conjunction with the HR staff, identifies and selects a team of individuals deemed to be experts with respect to the specific human capital grouping that requires a forecast. The number of experts to include in an expert panel typically ranges between 7 and 15. Next, given that in many cases the group of experts will include individuals who are not members of the organization, it is important for both parties to reach agreement on the terms and conditions for participation in the forecasting process, as well as setting the context and explicitly defining the nature of the work. For example, the team of experts must be absolutely clear on which jobs constitute “production workers” if those experts are being asked to derive a demand forecast for this category. Similarly, the exact time horizon(s) must be specified for the human capital category being analyzed. ∙ Orient the experts. In addition to identifying the relevant time horizon(s) and clarifying which employee groups are of interest, the orientation process for experts includes an overview of the demand forecasting decision process. The experts are told either that there will be a predetermined number of questionnaire iterations or that the sequence will continue until a majority opinion exists among the experts. ∙ Issue the first-round questionnaire. The project coordinator sends each expert the questionnaire by courier, fax, mail, or email and includes a time frame for completing and returning it. Typically, this first questionnaire focuses on defining both the explicit assumptions made by each of the experts and the background rationale supporting his or her particular demand estimate. ∙ Issue the first-round questionnaire summary and the second round of questionnaires. Following the completion of the first questionnaire, the project coordinator sends the second and subsequent rounds of questionnaires to the experts with a written summary of the findings from the previous round. The aim of the subsequent questionnaires is to focus the experts’ initial assumptions and estimates by providing summarized feedback from all members of the group. Points of commonality and conflict are identified in the summary, as is the need to clarify specific assumptions identified by the responses to the previous round. ∙ Continue issuing questionnaires. The project coordinator continues to issue questionnaires until either all the predetermined questionnaire stages have been completed and summarized or the group reaches a clear majority decision. In either case, the majority or nth-round summary summarizes the experts’ future demand estimate for the HR category under analysis.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

135. Describe the nominal group technique (NGT), how it differs from the Delphi technique and its primary advantage as a qualitative demand forecasting method.

ANSWER: Although the nominal group technique (NGT) is also a long-run, qualitative demand forecasting method, it differs from the Delphi technique in several important respects. First, unlike in the Delphi technique, the group does, in fact, meet face to face and interact, but only after individual written, preparatory work has been done and all the demand estimates (idea generation) have been publicly tabled, or written on a flip chart, without discussion. Second, each demand estimate is considered to be the property of the entire group and to be impersonal in nature, which minimizes the potential for dominance, personal attacks, and defensive behaviour in support of estimates presented in the group forum. Finally, the expert forecast is determined by a secret vote of all group members on their choice of the tabled demand forecasts. The estimate receiving the highest ranking or rating during the voting process is deemed to be the group’s forecast.

A primary advantage to NGT is that it allows all participants to contribute to the process at an equal level by reducing the tendency for more extroverted individuals to dominate the process.

Refer to HR Planning Today 5.3.

POINTS: 10 REFERENCES: Qualitative Forecasting Techniques richard@qwconsultancy.com

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QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

136. In reference to forecasting HR demand, define simulation. The simulation process can be broken down into several steps; list these five steps.

ANSWER: Simulation is a blend of qualitative and quantitative modelling that incorporates a set of assumptions about relationships among variables in a mathematical algorithm. Simulation can simultaneously model demand and supply, and is very useful for testing the impact of assumptions on the outcome of the model.

The simulation process can be broken down into several steps: ∙ Using qualitative methods, collect the relevant variables. This process can use interviews, focus groups, Delphi, or NGT to collect the information. ∙ Describe how these variables interact together by developing a process model to map the relationships between variables. Line managers who have direct experience with the manner and ways in which the demand for human capital changes over time and with sales are in an excellent position to provide insights to this process. ∙ Use simulation software and develop the algorithms to estimate the model. The range of assumptions developed qualitatively are used to run the simulation several thousand times. The output of the simulation presents a range of outcomes that occur most of the time. This range of outcomes represents the envelope of estimates over which a demand estimate is likely to occur given the current set of assumptions. ∙ Test the model using historical data to validate the assumptions used in its development. ∙ Different assumptions can be easily tested in the model by inputting new scenarios and re-running the simulation.

POINTS: 10 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

137. Describe how you would use a simulation in forecasting HR demand. Describe two benefits of using simulation in forecasting demand and supply.

ANSWER: Simulation is a blend of qualitative and quantitative modelling that incorporates a set of assumptions about relationships among variables in a mathematical algorithm. Simulation can simultaneously model demand and supply, and is very useful for testing the impact of assumptions on the outcome of the model.

The main benefit of simulation in forecasting demand (and supply) is not in arriving at a more accurate forecast, but in developing a better understanding of what factors influence demand and supply, and what processes may be causing bottlenecks in the flow of human capital. In this sense simulation is considered to be more descriptive of processes than prescriptive. The advantage of simulation is in providing knowledge around how demand estimates might react to changes in environmental factors, in customer characteristics, in the training or skills requirements of employees, or in any of the assumptions that are used to build the simulation model.

POINTS: 10 REFERENCES: Combining Quantitative and Qualitative Methods QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

138. Refer to Scenario: Canadian Engineering Shortages. Using the information you know about forecasting HR demand, what advice would you offer to Engineers Canada to address the replacement demand for engineers over the next decade? cl

ANSWER: The report includes provincial- and federal-level projections of supply and demand for engineers and serves to highlight the continued importance of engineers to the Canadian economy. There is a large and growing need to replace retiring engineers. This is particularly relevant for civil, mechanical, electrical/electronic, and computer engineers. Interprovincial mobility and immigration may be important in filling the positions left by retiring engineers. As a proactive strategy to deal with these shortages, Canadian universities, colleges, and technical institutions can play a critical role in increasing the number of Canadian and international students graduating with engineering degrees and technical diplomas, thereby creating new entrants to engineering occupations. Federal government policies that streamline international immigration of engineers to meet future workforce requirements may help.

NARR: Canadian POINTS: 10 REFERENCES: Methods of Forecasting QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:07 AM DATE MODIFIED: 9/13/2018 9:07 AM

1. Why do organizations prefer to hire an employee from within the organization rather than from outside the organization? a. to select candidates with new ideas and skills b. to stabilize the HR supply with external sources c. to maintain a ratio of internal to external candidates d. to reinforce employee loyalty and performance ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 2. What type of probability is associated with an individual’s movement behaviours in a specific job, given the Markov model? a. stochastic probability b. movement probability c. transitional probability d. promotion probability ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

3. What is another name for the vacancy model? a. renewal b. probabilistic c. stochastic d. readiness ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

4. Which of the following HR practices contributes to the mass customizing of the employ-ment experience? a. recruitment b. job analysis c. performance reviews d. flexible work arrangements ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. What type of HR supply planning application relies on a complex mathematical procedure commonly used for project analysis in engineering and business applications? a.

Markov modelling b. vacancy analysis c. succession table d. linear programming ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

6. In the Markov model, how many possible movement options does an employee have? a. two b. three c. four d. five ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

7. What is the first step in a HR supply analysis? a. to examine skills and management inventories b. to determine the HR demand available c. to calculate the ratio of hires to retires d. to analyze the external environment ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM clii

8. What type of HR supply model utilizes a series of matrices that detail the various patterns of movement to and from the various jobs in an organization? a. recency b.

Markov c. probabilistic d. vacancy ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

9. According to the textbook, which of the following is NOT typically included in a skills inventory? a. hobbies and interests b. work history c. gender d. education ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 10. If the organization’s goal is to monitor and control absenteeism and employee turnover, what is another term for this HR strategy called? a. attrition b. succession c. absenteeism d. retention ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

11. Which of the following is a hard cost associated with replacing workers? a. lost customer contacts b. increased turnover c. lost production d. orientation and training time ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. What is another name for the upward mobility rate? a. promotion rate b. adaptation rate c. retention rate d. growth rate ANSWER: a richard@qwconsultancy.com

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POINTS: 1 DIFFICULTY: Easy REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

13. An organization made errors in estimating the supply of human capital that became amplified along the supply chain, resulting in large overestimates of hiring needs. What term defines what is happening in this organization? a. compounding errors b. skill gap effect c. human resource planning errors d. bullwhip effect ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

14. If you wanted to use the best technique for tracking the number of individuals who move annually between various job levels in an organization, which of the following would you choose? a.

Markov model b.

Delphi technique c. succession planning d. ripple effect ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

15. What is the normal planning time horizon for a movement analysis? a. one month b. one quarter c. one operating cycle d. one year ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

16. Which of the following has greater predictive capacity than the Markov model for short-term and long-term periods? a. succession table b. vacancy model c.

Delphi technique d. movement analysis ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice cliv

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

17. Which of the following is NOT included in the additional information provided in a management inventory? a. duties b. deficiencies c. responsibilities d. accountabilities ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

18. According to the textbook, which of the following is NOT one of the options that employees have in the Markov model? a. termination b. layoff c. absenteeism d. resignation ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

19. If the assumption of linearity does NOT hold, what needs to be used in linear programming to determine supply requirements? a. probabilistic programming techniques b. stochastic programming techniques c. quadratic programming techniques d. graphic programming techniques ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

20. An organization requires experienced civil engineers, resulting in the HR demand for engineers exceeding its current engineering personnel resources. What is this called? a.

HR surplus b.

HR shortage c.

HR scarcity d.

HR supply ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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21. According to current research literature on HR supply, what HR practice will soon be-come the number-one priority for HR professionals? a. performance management b. career development c. employee retention d. organizational development ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 6.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. An organization is customizing HR practices at the employee level efficiently and at low cost. What is this HR practice called? a. employee retention b. human capital segmentation c. mass customization in HR d. internal hr supply programs ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

23. The textbook discusses various mechanisms that influence the external supply of human capital. Which of the following is one of these influences? a. company human resource staffing policies b. segmenting critical human capital c. government programs d. company human capital staffing resources ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

24. Which of the following is NOT typically a column found in a vacancy model chart? a. annual losses b. promotions to level c. level inflows d. internal hiring ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

25. If an organization cannot find a sufficient external supply of labour for certain jobs, what might it consider? clvi

a. changing the nature of the job c. transferring its employees d.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

b. retraining its employees redeploy its employees

26. According to the article “Developing Effective Employee Retention Policies” in the textbook, what are two strategies that should typically be included in a retention policy? a. form retention task force and promote from within b. measure turnover and enforce employee loyalty c. review compensation and measure job ineffectiveness d. hold line managers responsible and ensure attrition ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 6.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

27. Which of the following is a HR supply forecasting technique that contains variables that have a linear relationship? a. index analysis b.

Markov analysis c. vacancy model d. linear programming ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

28. In reference to the vacancy model, calculate the promotion rate for level 4 if seven individuals in level 3 were promoted and the total number of personnel in level 4 is 63. Round to the nearest whole number. a.

10 percent b.

11 percent c.

12 percent d.

13 percent ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human CapitalKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. Which of the following is a soft cost associated with replacing workers? a. lost customer contacts b. advertisements richard@qwconsultancy.com

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c. lost production d. recruitment costs ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

30. What would be two human resource internal supply estimate techniques that an organization could consider to ascertain HR supply? a. extrapolation and nominal grouping techniques b. replacement tables and Markov analysis c. trend projection and labour market analysis techniques d. indexation and replacement chart techniques ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

31. Which of the following is a HR supply forecasting technique that analyzes flows of employees throughout the organization by examining inputs and outputs at each hierarchical or compensation level? a.

Delphi technique b. nominal group technique c.

HR budgets (staffing tables) d. vacancy model ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

32. An organization is experiencing a shortage of certain key positions. What would be the first step it would take in conducting a HR supply analysis? a. calculate the ratio of hires to retirees b. determine the HR demand available c. examine skills and management inventories d. analyze the external environment ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. An organization wants to choose the best technique for tracking the number of individuals who move annually between various job levels in the organization. Which HR planning method would it choose? clviii

a.

Markov model b.

Delphi technique c. succession planning d. trend analysis ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

34. When considering the issue of supplying personnel to meet organizational demand, what aspects must be considered? a. current employees and individuals previously employed by the organization b. internal HR supply and individuals who receive training for subsequent promotion c. internal and external human resource sources d. preferential consideration to the internal workforce through promotions and training ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

35. What would be the first step in ascertaining HR supply once an organization has determined its overall demand requirements for personnel? a. to examine data from a variety of perspectives b. to determine what staff are needed, when, and where c. to examine the number and capabilities of current employees d. to determine the net demand requirements that must be met from external environmental supply sources ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. What is the first step an organization can take to examine the number and capabilities of current employees and managers? a. use replacement charts and tables b. use Markov analysis c. use staffing tables to forecast the staff are needed d. use employee and management skills inventories ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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37. Which of the following practices contributes to the mass customizing of the employment experience? a. telecommuting b. staffing substitution c.

HR segmentation d. employment equity ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

38. What is the intent of mass customization of HR? a. to gather detailed knowledge of the employees’ performance over time b. to enable the organization to reinforce employee loyalty and performance c. to help maximize the employee experience and ultimately enhance retention d. to provide organizations some protection from economic downturns ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

39. these two figures represent? a. an HR supply and demand balance b. a surplus if the supply exceeds demand, or a gap if the demand exceeds supply c. a gap in internal and external HR supply d. a skills gap ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

40. An organization has made errors in estimates of human resource supply that have become amplified as those errors are compounded along the supply chain. What term defines this occurrence? a. projection errors b. bullwhip effect c. prediction errors d. predetermination effect ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

clx

41. What is the first step in ascertaining HR supply, once it determined the organization’s overall HR demand requirements? a. to examine the number and capabilities of current employees b. to determine what staff are needed, when, and where c. to examine HR supply data from a variety of perspectives d. to determine the net demand requirements that must be met from external environmental supply sources ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

42. What is another name for the vacancy model? a. transitional b. probabilistic c. sequencing d. regression ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

43. Which of the following is a HR forecasting technique that can be used to determine both HR supply and demand? a.

Delphi technique b. skills inventories c. vacancy model d. linear programming ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

44. Which of the following is a HR forecasting technique that can be used to determine both HR supply and demand? a. management inventories b. nominal group technique c. vacancy model d. movement analysis ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. Which of the following is a HR forecasting technique that can be used to determine both HR supply and demand? a. management inventories b.

Markov models c. vacancy models d. trend analysis richard@qwconsultancy.com

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ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

46. Many organizations give preference to internal supply. What is one reason for giving preferential consideration to an organization’s own workforce to fill job openings? a.

Current employees are already socialized to the norms, rules, and procedures of the organization. b.

It reduces human resource forecasting costs. c.

It improves human resource forecasting. d.

It enables the organization to reinforce staffing policies.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 47. What is one reason for giving preferential consideration to an organization’s own internal HR supply when filling job positions? a.

The employer can ensure job-person fit . b.

The employer possesses detailed knowledge of the employees’ performance over time. c.

The employer can control the movement of employees within and out of the organiza-tion. d.

The employer can effectively screen out internal employees with poor performance records.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

48. Human capital must be obtained from two sources. What are these two sources? a. skill and management inventories b. current employees or individuals currently not employed by the organization c. recruitment and selection d. human resources and labour markets ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

49. Human capital is obtained from two sources. What are these two sources? a. internal and external supply clxii

b. current employees and individuals currently employed by other organizations c. local and national human resources d. skill and management inventories ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

50. Human capital is obtained from two sources. What are these two sources? a. national and international human resources b. skill and management inventories c. sources internal and external to the organization d. current employees and employees working for other organizations ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

51. An organization is retraining, promoting, and transferring existing employees who can fill their anticipated future HR requirements. What is this supply source called? a. external supply b. employee retention c. internal supply d. transitional supply ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

52. An organization is seeking members of the workforce not currently employed by the firm, who are currently undergoing training, working for competitors, and/or unemployed. What is this supply source called? a. skills gap b. external supply c. employee segmentation d. recruitment ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

53. An organization is seeking members of the workforce not currently employed by the firm, who are currently undergoing training, working for competitors, and/or unemployed. What is this supply source called? a. employee selection b. labour supply richard@qwconsultancy.com

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c. redeployment d. external supply ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

54. An organization is grouping its employees based on characteristics that are relevant to the employee experience such as career preferences, demographics, work–life preferences, or benefits. What is this HR process called? a. organizational development b. labour market supply c. employee segmentation d. balancing internal human resource supply ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

55. A company is in a situation in which the supply of a particular form of human capital available to the firm is inadequate to address the demand. What is this circumstance called? a. skills gap b. labour market demand c. employee segmentation d. external human resource supply ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

56. An organization finds that there are insufficient numbers of workers who possess the skills necessary to perform several job positions. What is this situation called? a. employee segmentation b. labour market supply c. skills gap d. external human resource supply ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

57. Which of the following is a hard cost associated with replacing workers? a. lost business contacts b. decreased quality of work due to training c. headhunter and recruiting fees d. learning curve gaps ANSWER: c POINTS: 1 DIFFICULTY: Easy clxiv

REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

58. Which of the following is a soft cost associated with replacing workers? a. interview training and time b. increased turnover c. lost production d. administrative expenses ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

59. Which of the following HR practices allows for working conditions to be well understood by applicants before they are hired into a job position? a. realistic job previews b. job analysis c. job description d. job interviews ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

60. If an organization cannot find a sufficient external supply of labour for certain jobs, what might it consider? a. retraining its employees b. changing working conditions c. redeploying its their employees d. transferring its employees ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

61. The textbook discusses various mechanisms that influence the external supply of human capital. Which of the following is one of these influences? a. labour relations role b. regulatory bodies role c. employer’s role d. professional associations’ role ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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62. The major attributes that influence the employee relationship with the firm can be blended and moulded to suit the individual needs of the employee. What is this HR practice called? a. career development programs b. mass customization in HR c.

HR renewal model d. substitution strategies ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Supply Programs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

Pacific Health Care Pacific Health Care (“PHC”) operates 18 health care facilities in B.C. with more than 1600 total beds, and it employs approximately 2200 registered nurses (“RN”) and 350 licensed practical nurses (“LPN”). PHC focuses its services on four “populations of emphasis”: cardio-pulmonary risks and illnesses, mental health, renal risks and illness, and specialized needs in aging.

Administrators in PHC’s facilities are worried about a looming shortage of RNs and LPNs and are already experiencing rising overtime and sick-time costs. A chronic shortage of specialty-trained nurses resulted in a six percent increase in overtime costs over the previous year. Specialty nurses took home $125 000 in overtime pay this past year. Median pay for a registered nurse with specialty knowledge and skills is $75,000 a year.

RNs and LPNs are not working to the fullest extent of their respective scopes of practice. RNs are in charge and given patient information and assignments, and LPNs “float” around helping with tasks such as taking vital signs and answering call bells. LPNs have limited patient information and are not encouraged to participate in patient care plans. Staff departures by retirement or resignation are increasing.

Each department is undertaking a detailed assessment of its staffing needs with the aim of working toward developing a staff complement that has the skills, capacity, and expertise to meet PHC’s HR needs.

63. Refer to Scenario: Pacific Health Care. When considering the issue of supplying personnel to meet PHC’s HR demand, it is best for PHC to consider obtaining workers from two sources. What are these two sources? a. internal and/or external human resource sources b. current employees and individuals previously employed by the organization c. internal HR supply and individuals who receive training for subsequent promotion d. preferential consideration to PHC’s own workforce through promotions and training ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:53 AM

64. Refer to Scenario: Pacific Health Care. When considering the issue of supplying health care personnel to meet PHC’s HR demand, workers can be obtained from a variety of sources. What sources are PHC focusing on? a. external human resource sources b. internal human resource sources c. current employees and individuals previously employed by health care organizations d. skilled individuals with training that allows for promotion ANSWER: b RATIONALE: NARR: Pacific clxvi

POINTS: 1 DIFFICULTY: Difficult REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:22 PM 65. Refer to Scenario: Pacific Health Care. When considering the issue of ascertaining HR supply to meet PHC’s HR demand, workers can be obtained from a variety of sources. What sources are given limited attention by PHC? a. external human resource sources b. health care individuals employed by PHC c. licensed practical nurses (LPN’s) d.

PHC’s own workforce ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:54 AM 66. Refer to Scenario: Pacific Health Care. What would be the first step in PHC’s HR forecasting, once it identified its organizational goals, objectives, and plans? a. to examine data from a variety of perspectives b. to determine overall demand requirements for personnel (i.e., what staff are needed, when, and where) c. assess in-house skills and other internal supply characteristics d. to determine the net demand requirements that must be met from external environmental supply sources ANSWER: b RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:55 AM 67. Refer to Scenario: Pacific Health Care. What would be PHC’s first step in ascertaining HR supply, once it determined the organization’s overall HR demand requirements? a. to examine data from a variety of perspectives b. to determine what staff are needed, when, and where. c. to assess in-house skills and other internal supply characteristics d. to determine the net demand requirements that must be met from external environmental supply sources ANSWER: c RATIONALE: NARR: Pacific POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human CapitalKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:56 AM

68. Refer to Scenario: Pacific Health Care. What would be the initial step that PHC might take to examine the number and capabilities of current employees and managers? a. use staffing tables to forecast the staff needed b. use employee and management skills inventories c. use replacement charts and tables d. use Markov analysis ANSWER: b RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human CapitalKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:22 PM

69. Refer to Scenario: Pacific Health Care. PHC obtained information about its RN and LPN jobs to determine the duties, tasks, knowledge, skills, abilities, equipment used, working conditions, effort, job context, and performance standards necessary to perform the work successfully. What human resource records typically contain this information? a. skills inventories b. human resource planning c. job evaluation d. human resource career data ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:23 PM 70. Refer to Scenario: Pacific Health Care. What would be the next step in PHC’s HR forecasting, once it assessed its in-house skills and other internal supply characteristics? a. identify organizational goals, objectives, and plans b. determine overall demand requirements for personnel (i.e., what staff are needed, when, and where) c. develop HR plans and programs to ensure that the right people are in the right place at the right time d. examine data from a variety of perspectives ANSWER: c RATIONALE: NARR: Pacific POINTS: 1 clxviii

DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human CapitalKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:23 PM

71. Refer to Scenario: Pacific Health Care. PHC requires specialty nurses, resulting in the HR demand exceeding the current personnel resources available in the organization’s workforce. What is this called? a.

HR surplus b.

HR shortage c.

HR scarcity d.

HR supply ANSWER: b RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:59 AM

72. Refer to Scenario: Pacific Health Care. PHC is experiencing a shortage of certain key positions. What would be the first step it would take in conducting a HR supply analysis? a. examine skills and management inventories b. determine the HR demand available c. calculate the ratio of hires to retires d. analyze the external environment ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 8:59 AM

73. Refer to Scenario: Pacific Health Care. PHC wants to choose the best technique for tracking the number of individuals who move annually between various job levels in the organization, which HR planning method would it choose? a.

Markov model b.

Delphi technique c. succession planning d. trend analysis ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: Difficult REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific richard@qwconsultancy.com

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NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:01 AM

74. A skills inventory is an individualized personnel record held on each employee, including those currently in management or professional positions. a.

True b.

False ANSWER: False RATIONALE: (excluding management or professional positions) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

75. Mass customization of HR is the ability to customize HR practices at the employee level, efficiently and at low cost. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

76. Many of the methods used to forecast HR demand can also be used to determine personnel supply. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

77. In the Markov model, the employee has five possible movement options. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

78. Linear programming is a complex mathematical procedure commonly used for project analysis in engineering and business applications. a.

True clxx

b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

79. Another name for the vacancy model is the renewal model. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

80. Linear programming is defined as a technique used to analyze personnel supply, specifically the chain or ripple effect that promotions or job losses have on the movements of other personnel in the organization. a.

True b.

False ANSWER: False RATIONALE: (movement analysis) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

81. When an individual is transferred or promoted, the resulting changes are referred to as chain effects. a.

True b.

False ANSWER: True RATIONALE: (also known as ripple effects) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

82. The Markov model uses projected patterns of movement between jobs in the organization. a.

True b.

False ANSWER: False RATIONALE: (historical patterns of movement) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:08 AM

83. Until organizations begin to work hard to rebuild trust and mutual commitment, they will continue to have HR supply and retention problems. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

84. The upward mobility rate is also known as the promotion rate. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

85. When an organization is planning on hiring additional employees, the growth percentage is negative. a.

True b.

False ANSWER: False RATIONALE: (positive) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

86. Transitional probabilities in the Markov model refer to the likelihood that an individual in a specific job will exhibit one of five movement behaviours. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

87. A linear model is an analysis of the flow of personnel throughout the organization by examining inputs and outputs at each hierarchical or compensation level. a.

True b.

False ANSWER: False clxxii

RATIONALE: (vacancy model) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

88. A management inventory is used for professional or technical personnel. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

89. In the vacancy model, personnel supply requirements are considered for many levels simultaneously. a.

True b.

False ANSWER: False RATIONALE: (one level at a time) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 90. When personnel supply requirements are approached at using a “top-down” fashion, the level with the highest relevant authority level is the starting point in the vacancy model. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

91. The movement model is a series of matrices that detail the various patterns of movement to and from the various jobs in the organization. a.

True b.

False ANSWER: False RATIONALE: (Markov model) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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92. A renewal model can also be referred to as a probabilistic or stochastic model. a.

True b.

False ANSWER: False RATIONALE: (Markov model) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

93. Linear programming has similar assumptions to those in regression analysis. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

94. According to a survey of executives in 27 countries, the reason that organizations cannot find sufficient supply of labour is that they don’t know what skills the workforce will need to remain competitive in the near future. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

95. Vacancy analysis enables the identification of not only the location and number of open positions that must be filled by the organization but also the total number of individuals who will be moved to fill these openings. a.

True b.

False ANSWER: False RATIONALE: (movement analysis) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 96. When personnel supply requirements are approached in a “top-down” fashion, the level with the highest relevant authority level is the starting point in the vacancy model. a.

True b.

False ANSWER: True clxxiv

POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

97. The vacancy model is a series of matrices that detail the various patterns of movement to and from the various jobs in the organization. a.

True b.

False ANSWER: False RATIONALE: (Markov model) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

98. Skills and management inventories contain information that allows a detailed analysis of the current workforce to determine whether the organization can meet the demand for replacement from current employees in the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

99. A movement analysis can also be referred to as a probabilistic model. a.

True b.

False ANSWER: False RATIONALE: (Markov model) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

100. A Markov model can also be referred to as a probabilistic model. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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101. The Markov model is a series of matrices that detail the various patterns of movement to and from the various jobs in the organization a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

102. The Many of the methods used to forecast HR demand—such as trend analysis, simulation, the Delphi technique, and NGT—can also be used to determine the supply of human capital. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

103. Many organizations give preference to external supply because external labour markets provide a larger source of human resources. a.

True b.

False ANSWER: False RATIONALE: (internal, other reasons) POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

104. Human capital must be obtained from a source that is either internal and/or external to the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

105. Human capital must be obtained from current employees and/or or individuals currently employed by other organizations. a.

True b.

False ANSWER: False clxxvi

RATIONALE: (also unemployed) POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 106. One reason for giving preferential consideration to an organization’s own workforce to fill job openings is that current employees are already socialized to the norms, rules, and procedures of the organization, and so organizational fit is ensured. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 107. One reason for giving preferential consideration to an organization’s own workforce to fill job openings is that the employer possesses detailed knowledge of the employees’ performance and KSAs over time. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

108. Existing employees who can be retrained, promoted, transferred, or otherwise redeployed to fill anticipated future HR requirements are referred to as internal supply. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

109. Members of the workforce not currently employed by the firm, who are currently under-going training, working for competitors, members of unions or professional associations, in a transitional stage, between jobs, or unemployed are referred to as external supply. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

110. The concept used for grouping of employees based on characteristics that are relevant to the employee experience such as career preferences, demographics, work–life preferences, or benefits is mass customization of HR. a.

True b.

False ANSWER: False RATIONALE: (employee segmentation) POINTS: 1 REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

111. A skills gap is a situation in which the supply of a particular form of human capital available to a firm is inadequate to address the demand. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

112. Human resource segmentation is a term used to describe the ability to customize HR practices at the employee level efficiently and at low cost. a.

True b.

False ANSWER: False RATIONALE: (mass customization of HR) POINTS: 1 REFERENCES: Segmenting the Internal Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

113. Workers who have retired are a good source of labour particularly if the schedules are flexible. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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114. According to a survey of executives in 27 countries, only 38 percent of Canadian busi-nesses offer training to teach technical skills to employees in the highly desirable STEM ar-eas (science, technology, engineering, and math), compared to over 50 percent in the United States. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

115. One aspect of HR supply is monitoring and controlling levels of absenteeism and employee turnover. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

116. Retention refers to the way in which the major attributes that influence the employee relationship with the firm can be blended and moulded to suit the individual needs of the employee. a.

True b.

False ANSWER: False RATIONALE: (mass customization in HR) POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

117. Mass customization of HR is the ability to customize HR practices at the organization level efficiently and effectively. a.

True b.

False ANSWER: False RATIONALE: (employee level) POINTS: 1 REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

118. Employee retention will soon become the number-one priority for HR professionals. a.

True b.

False ANSWER: True POINTS: 1 richard@qwconsultancy.com

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REFERENCES: HR Supply Programs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

119. After forecasting the demand for and the supply of human capital, the difference between these two figures represents a surplus if the supply exceeds demand. a.

True b.

False ANSWER: False RATIONALE: (or a gap if the demand exceeds supply) POINTS: 1 REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

120. Automation is expected to become a popular substitution strategy over the next decade. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

121. Although most organizations tend to devote considerable time and resources to the pro-cess of attracting new workers, a great many fall short by not putting enough emphasis on retaining the high-quality workers they currently employ. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

122. Human capital segmentation occurs when errors in estimating the supply of human capital are amplified along the supply chain, resulting in large overestimates of hiring needs. a.

True b.

False ANSWER: False RATIONALE: (bullwhip effect) POINTS: 1 REFERENCES: Substitution and Other Gap Strategies QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM clxxx

123. A skills inventory is an individualized personnel record held on each employee except those currently in management or professional positions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

124. A management inventory is an individualized personnel record for managerial, professional, or technical personnel and includes additional information on specialized duties, responsibilities, and accountabilities. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

125. Movement analysis is a technique used to analyze the chain or ripple effect that promotions or job losses have on the movements of employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

126. Markov models use historical patterns of individual movement between jobs in the organization based on the transitional probabilities for promotion, transfer, and remaining in the particular job for an annual or specified future period. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

127. Linear programming allows HR planners to model the number of open positions throughout the organization and to track career progression and the time required for indi-viduals to reach specified target jobs. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (Markov Models) POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

128. Simulation uses mathematical equations and algorithms to model supply given specified constraints, such as minimizing labour cost. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

129. The vacancy model provides specific information on total flows into and out of each job or compensation level, as well as for the organization as a whole. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

130. Although most organizations devote considerable time and resources to the process of attracting new workers, a great many fall short by not placing enough emphasis on retaining the high-quality personnel they currently employ.

Identify five specific strategies that organizations can employ to help retain existing staff.

ANSWER: Some possible strategies include; • All managers should be held responsible for the retention of their personnel, and managerial performance evaluation should incorporate specific measurable goals in this regard.

• Greater emphasis should be placed on high-performing and high-potential employees by offering training and development opportunities, special assignments, transfers, and promotions, etc.

• Form a “retention task force” comprised of HR personnel, line managers, and senior executives to examine specific practices and programs that can be implemented to increase retention.

• Reinforce employee loyalty by promoting from within wherever possible.

• Review and address compensation and working conditions before they become issues for dissatisfaction that prompt employees to leave the organization.

• Measure turnover on an ongoing basis at a corporate, divisional, and local level.

POINTS: 10 REFERENCES: HR Supply Programs KEYWORD: QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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131. Using the Markov model, what are the five possible movements/changes that an employee can make in an organization?

ANSWER: ∙ remaining in the current job ∙ promotion to a higher-classified job ∙ a lateral transfer to a job with a similar classification level ∙ exit from the job: o termination o lay-off o voluntary leaving by the employee ∙ 5demotion POINTS: 10 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

132. What is the difference between a skills inventory and a management inventory?

ANSWER: ∙ A skills inventory is an individualized personnel record prepared on each employee except those currently in management or professional positions. A typical skills inventory will include the following: ∙ Personal information: o name o employee number o job classification o compensation band o emergency notification o telephone number ∙ Education: training, and skill competencies: o certificates o licenses o diplomas o degrees o areas of specialization o dates of attendance o names of institutions ∙ Work History: o date of hire, seniority, o current job and supervisor o previous jobs held in the company and dates employed ∙ Performance ratings ∙ Career information: o potential future jobs desired by the employee and recommended by the supervisor ∙ Performance Ratings ∙ Career information: potential future jobs desired by the employee and recommended by the supervisor ∙ Hobbies and Interests: community and volunteer associations, interest to relocate A management inventory is an individualized personnel record for managerial, professional, or technical personnel that includes all elements in the skills inventory with the addition of information on specialized duties, responsibilities, and accountabilities. Management inventories are enhanced skills inventories and typically include the following information: ∙ history of management or professional jobs held ∙ record of management or professional training courses and their dates of completion ∙ key accountabilities for the current job o job organizational resources o size of budget controlled o number of subordinates, o important organizational outcomes for which the incumbent is responsible ∙ assessment centre and appraisal data richard@qwconsultancy.com

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∙ professional and industry association memberships POINTS: 10 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

133. Why do many organizations give preference to internal human resource supply?

ANSWER: ∙ Selecting employees for training and development and subsequent promotion enables the organization to reinforce employee loyalty and performance. ∙ Employees are already socialized to the rules, norms, and procedures of the organization. ∙ Employee motivation and commitment to the organization may increase when you reinforce their past loyalty and performance. ∙ Employers possess knowledge (e.g., HRMS files) on their performance and knowledge, skills, and abilities (KSAs) (e.g., work history and experience). ∙ Internal labour markets provide employees some protection from economic downturns, as employees can move from one job type to others.

POINTS: 10 REFERENCES: Introduction QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

134. Identify an organization you are familiar with (such as from your work experience or from the course textbook).

Describe one method used by the organization to determine external and internal supply of the organization’s personnel.

ANSWER: Refer to the textbook for details on the following methods: ∙ Skills and management inventories ∙ Human capital segmentation ∙ Markov models ∙ Linear programming and simulation ∙ Movement analysis ∙ Vacancy/renewal models POINTS: 10 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

135. Are skills gaps real, and if so, what are the causes and cures? Discuss.

ANSWER: Some research suggests that the skills gap is limited to particular geographic regions or knowledge sectors. For example, the insurance industry lacks sufficient numbers of claims managers, claims handlers, and actuaries, and some skilled trades such as boilermakers, ma-chinists, and heavy equipment handlers currently face a skills gap. However, for many jobs, research suggests that a large portion of the gap may be brought on by organizations. Firms that do not have a development pipeline, that spend little on training, and that are dependent on external hiring for most skilled workers are especially at risk for not being able to hire adequate numbers. Another contributing factor to an inflated gap is in the recruitment and hiring practices popular in firms today. Rather than selecting based on knowledge, skills, abilities, and aptitudes derived from on job analysis, many firms prioritize work experience as a minimum qualification. When an organization is looking for an applicant with three to five years of experience in the job, how realistic is it to expect that an employee who has been working the same job but clxxxiv

in another organization for three to five years will be willing to forego their firm-specific human capital to go work for roughly the same pay in a different organization? If firms want to pay the market rate or lower for an employee with several years of experience at the job, it is not surprising that the job advertisement yields an appli-cant pool that does not match its requirements.

Firms that want to avoid unfilled jobs over the long term need to align their strategic activi-ties with their critical talent segments, and incorporate training, development, and retention strategies to reduce their need for external hiring. Firms need to appeal to their critical talent segments with HR practices that draw a larger applicant pool and should consider paying above market wages for the talent segments that are critical to implementing firm strategy.

POINTS: 10 REFERENCES: HR Planning Today 6.1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

136. If an organization cannot find a sufficient supply of external labour for certain jobs, what might it consider?

ANSWER: ∙ Changing the nature of the job ∙ Training workers ∙ Looking at other labour pools (such as designated groups, older workers) ∙ Making jobs more attractive ∙ Changing the working conditions ∙ Changing the perceptions about the job ∙ Lobbying government to increase training programs POINTS: 10 REFERENCES: HR Supply Programs QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

137. If an organization does not have the policies in place nor the resources to provide an ade-quate supply of human capital from within the organization, it must find its labour supply outside the organization. Discuss one mechanism that influences the external supply of hu-man capital. Provide an example.

ANSWER: There are several mechanisms that range from the employer to government influences.

Employers play a role in influencing external labour supply. If employers cannot find a suf-ficient supply of labour for certain jobs, they can either change the nature of the job, train workers themselves, or look at other labour pools (such as designated groups, older workers). Jobs that are difficult to fill can be made more attractive. In one country, locals were unwill-ing to apply for construction jobs because they saw the work as dangerous, difficult, and dirty, in an unsafe and uncomfortable environment. Where possible, companies could try to either change the work conditions or change the perceptions of these jobs. Alternatively, managers could train the types of workers that they need. For example, a group of manufac-turers, the Ontario Manufacturing Learning Consortium, is hiring young unskilled people and training them (with both classroom and on-the-job experiences) for jobs such as machinists.

Governments also control the supply of labour in many ways. Provincial governments, for example, determine the number of places available in professional programs such as nursing, and trade apprenticeships, such as electricians.

Working through their employer associations, organizations could lobby the government to increase the number of training programs or students. The government also plays a key role in determining the number of immigrants admitted to Canada. By increasing the spaces available to qualified professionals and trades-people, the government can alleviate demand for these workers in targeted occupations.

POINTS: 10 REFERENCES: HR Supply Programs QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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138. It has been found that older workers (50 and over) desire many of the same things that other workers feel are important in their workplace. List five of these factors. Identify an organization you are familiar with (such as from your work experience or from the course textbook) and describe one factor used by the organization to retain the organization’s personnel.

ANSWER: ∙ Flexible working options ∙ Training and development ∙ Job design ∙ Recognition and respect ∙ Performance evaluation ∙ Compensation POINTS: 10 REFERENCES: HR Planning Today 6.2 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

139. Organizations cannot afford to lose experienced, talented employees. Given that highly qualified, highperforming staff will always have alternative employment options, describe two steps an organization can take to help attract and retain talented employees?

ANSWER: ∙ Train managers in strategies for the retention of employees and hold them accountable for retention. ∙ Pay is not the main reason for losing talent. Pay attention to “toxic” bosses and co-workers, bad management practices, and a lack of autonomy and respect at work. ∙ Implement flexible working arrangements to facilitate work–life balance (e.g., flexible work hours, compressed workweek, telecommuting, job sharing, daycare centres, and so on). ∙ Reward fairly, consistently, and differentially on the basis of performance and results. Give recognition to employee preferences for different types of work benefits (time off, nonmonetary rewards such as travel or goods, tuition assistance, pension plans, life in-surance, and so on). ∙ Hold regular feedback and career development discussions with employees. ∙ Recognize that talented, highly motivated employees do not view training as a discretion-ary item that should get cut during the first round of annual budget reviews! ∙ Deal with “slackers” and underperformers! Talented employees resent being burdened with additional stress and workload. ∙ Reward organizational seniority in addition to rewarding performance. ∙ Identify “high turnover risk” occupations, classifications, and personnel, and develop ap-propriate talent retention strategies. ∙ Develop a managerial academy to teach talented employees the technical and interper-sonal skills necessary to assume higher managerial positions in the future. ∙ Review and pare to a minimum the following potential “dissatisfiers”: rules, regulations, micromanagement, policy manuals, meetings, and so on. ∙ Take action on talent management; don’t just meet, discuss, or prepare a report.

POINTS: 10 REFERENCES: HR Planning Notebook 6.1 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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140. Analyze Scenario: Pacific Health Care. Throughout your case incident analysis, assume the role of a human resources consultant. Your task is to advise the organization on how it should align its strategic human resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the causes of the problem/opportunity, identify solutions, and recommend a plan for implementation and justification. Please be specific about the approaches and methods you would recommend to facilitate the workforce forecasting process and, in particular, how the organization is going to ascertain HR supply.

ANSWER: Refer to various sections in Chapter 6, “Ascertaining HR Supply” NARR: Pacific POINTS: 10 REFERENCES: Various sections in Chapter 6, “Ascertaining HR Supply” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

141. Refer to Scenario: Pacific Health Care. What can PHC do to increase its supply of workers?

ANSWER: Refer to various sections in Chapter 6, “Ascertaining HR Supply” NARR: Pacific POINTS: 10 REFERENCES: Refer to various sections in Chapter 6, “Ascertaining HR Supply” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

142. Refer to Scenario: Pacific Health Care. Discuss the disadvantages of internal staffing and the advantages of external staffing.

ANSWER: Some possible disadvantages of internal recruiting include: poor morale (leading to possible turnover) for workers not promoted; overtime costs; internal competition that can reduce worker cooperation; current employees who lack the knowledge, experience, or skills needed for placement in a vacant or new position; and new ideas may be limited.

Some possible advantages of external recruiting include: the ability to acquire competencies that may not be available within, new ideas and novel ways of solving problems that may emerge, reduced overtime costs.

NARR: Pacific POINTS: 10 REFERENCES: Methods of Modelling the Supply of Human Capital QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

1. In a succession/replacement chart, potential successors can be coded to indicate their availability. If an employee is coded “RD,” what does this represent? a. retention desired b. ready with development c. return to division d. requires downsizing ANSWER: b POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

2. Which employee characteristic is NOT typically associated with the process of succession management? a. skilled b. trained c. available d. reliable ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

3. What negative consequence might result if there is a delay in naming a successor when a key executive, such as a CEO, suddenly quits? a. decreased operating performance for up to two years b. increased recruitment and selection of middle managers c. decreased opportunities for management development d. increased likelihood that the successor will be a family member ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

4. According to the CEO of Maritime Life Insurance, what is the best indicator of whether an employee is ready for a top position? a. education b. intelligence c. rotation d. attitude ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. What are two motivational benefits of job rotation? a. opportunity for advancement and training c. feeling appreciated and valued d.

ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False clxxxviii

b. job satisfaction and job enlargement reduction of boredom and fatigue

DATE CREATED: DATE MODIFIED:

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6. In flat organizations, where promotions are rare, what preferred developmental method is used? a. job enlargement b. job enrichment c. job rotation d. job sharing ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

7. Which of the following is NOT considered to be one of the most common development methods? a. special assignments b. job rotations c. mentoring d. active learning ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

8. Which technique is often used by organizations to test whether high-potential employees have management potential? a. give them a special assignment b. give them a greater workload c. give them a training opportunity d. give them a performance review ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

9. Which of the following would NOT be a risk that would be managed by HR professionals when considering succession management? a. transition risk b. vacancy risk c. potential risk d. readiness risk ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

10. What can HR professionals do to manage the risks associated with succession management? richard@qwconsultancy.com

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a. promote a culture of talent management b. encourage development only for key positions c. identify historic gaps in competencies d. develop successors for all organizational positions ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

11. If an organization wishes to identify high-potential employees, which of the following is a typical approach that might be used? a. replacement tables b. replacement charts c. permanent replacements d. supply replacements ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. According to the textbook, why do some CEOs develop a talent management culture? a. to develop talent at the top where it is most needed b. to develop talent at all levels of an organization c. to develop talent branding more than company branding d. to develop talent in-house before competitors do ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

13. According to MDS, a medical supply company, why does the company hire talent even when there are no openings available? a.

Recruitment is strategic. b.

The company can pay less. c.

The hiree can work two jobs. d.

Someone is about to be fired.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

14. There are many reasons why organizations have succession management. According to your text, what is one of these reasons? cxc

a. to ensure upward advancement opportunities for employees b. to increase employee satisfaction and commitment c. to help individuals realize their career plans within the organization d. to increase job engagement and job enlargement opportunities ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

15. If a board of directors brings in an outsider to lead the company, what message is it sending to the shareholders and employees? a.

None of the internal candidates is proficient. b.

The old way of doing things is going to change. c.

The performance review process is inadequate. d.

The internal candidates are all new as well.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

16. Which of the following is NOT considered to be a downside of employee rotations? a. increased time spent learning new jobs b. cost of errors while learning new jobs c. loss of efficiency while learning new jobs d. increased fatigue while learning new jobs ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

17. According to the textbook, why have many Canadian dynasties failed? a. because their heirs were incapable of managing the business b. because they did not monitor the external environment c. because they expanded too quickly into global markets d. because they were unaware of anticipated mergers and acquisitions ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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18. Which organization cited in the textbook has a six-hour replacement strategy if its CEO dies suddenly? a.

Target b.

Walmart c.

Apple d.

McDonald’s ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

19. What is one way that replacement planning has evolved into succession management? a. improving the data collection b. improving the evaluation system c. improving the HR supply d. improving the stability of jobs ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

20. What is the typical time period that succession management focuses on, beyond immediate replacements? a. one year b. two years c. three years d. ten years ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

21. What is the first step in the succession management process? a. identify high-potential employees b. identify the skills and competencies needed c. align succession management plans with strategy d. provide developmental opportunities and experiences ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. Which of the following is NOT a competency identified by Catano and his colleagues? a. knowledge competencies b. distinctive competencies c. role competencies d. core competencies ANSWER: a POINTS: 1 cxcii

DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

23. What two approaches are used to identify the characteristics of successful managers? a. task-based and knowledge-based b. job-based and competency-based c. skill-based and curriculum-based d. market-based and value-based ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

24. If a job requires proficiency in Facebook, what is this proficiency called? a. a competency b. an attribute c. a skill d. an ability ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

25. What is the final step in the succession management process? a. identify high-potential employees b. identify the skills and competencies needed c. monitor succession management d. provide developmental opportunities and experiences ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

26. Which of the following is NOT a typical lag measure used in succession management? a. decreased number of bosses as talent developers b. increased ratio of internal to external hires in key positions c. increased average number of candidates for key positions d. decreased average number of positions with no successors ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

27. Why must high-potential employees be given a reason to stay within an organization? a. because they have fragile egos and need positive affirmation b. because jobs are scarce and they need to hang onto them c. because career planning effectively eliminates job searches d. because competition for leadership talent is so intense ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

28. According to the textbook, what are two emerging career management concepts? a. organizational identity, and inward and political mindset b. self-directed career responsibility and horizontal career progression c. role of manager as coach and benefit of focusing on job security d. loyalty to profession and family and implicit employment contract ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.9 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. In the textbook, what reason is given why the majority of companies still use traditional and passive instructional techniques for management development, although they are the least effective? a. because these techniques are cheaper than external ones b. because these techniques are fast and easy to use c. because these techniques are controlled by the company d. because these techniques are customized to the company ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

30. Which of the following is a benefit to the organization as a result of using external coaches? a. collaborating with the individual and enhancing personal values b. promoting greater focus and clarity to enhance goal achievement c. reducing learning time in order to optimize skills and competencies d. changing attitudes and skills for long-term sustainability ANSWER: d POINTS: 1 cxciv

DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.7 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

31. After an organization has identified high-potential employees, what would be the next step in the succession management process? a. evaluating and monitoring the high-potential employees b. identifying the skills and competencies needed c. aligning succession management plans with strategy d. providing developmental opportunities and experiences ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

32. In succession planning, what would be the starting point for HR planning? a. the job position b. the organization’s strategy c. the employees’ competencies d. the role of the manager and employees ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. What is one way that replacement planning has evolved into succession management? a. broadened the HRM systems b. broadened the assessment process c. broadened the HR role d. broadened the focus to be more strategic ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

34. A replacement chart has potential management successors coded to indicate their future availability. If a manager is coded “PN,” what does this represent? a. preferred nominee b. professional development needed c. promotable now d. practicum needed ANSWER: c POINTS: 1 richard@qwconsultancy.com

cxcv

DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

35. What does the succession management process link with replacement planning? a. business continuity b. management retention c. management development d. changing environmental demands ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. After an organization has identified the skills and competencies needed to meet its HR plans, what would be the next step in the succession management process? a. identifying high-potential employees b. monitoring and evaluating the employees’ skills development c. aligning succession management plans with strategy d. providing developmental opportunities and experiences ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

37. Which of the following is a risk that would be managed by HR professionals when considering succession management? a. talent pool risk b. leadership risk c. potential risk d. readiness risk ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

38. What is one way that replacement planning has evolved into succession management? a. expanded the data collection b. expanded the time horizon c. expanded the HR role d. expanded the jobs requirements ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice cxcvi

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

39. After an organization has aligned its succession management with the organization’s strategy, what would be the next step in the succession management process? a. identifying high-potential employees b. identifying the skills and competencies needed c. aligning the organization’s strategy with HR strategy d. providing developmental opportunities and experiences ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

40. Which of the following development method tests high-potential employees by giving them an assignment in addition to their regular duties? a. formal experience b. job rotation c. mentoring d. action learning ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

41. According to the textbook, what are two emerging career management concepts? a. organizational identity and implicit employment contract b. employer career responsibility and horizontal career progression c. formal training and job security d. loyalty to profession and family, and meaningful contributions ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.9 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

42. Why is succession planning critical for effective HR planning? a.

It helps to develop employees by providing new job experiences. b.

It helps employees to stay motivated because it promotes them for their performance. c.

It helps an organization to stabilize its organizational structures . d.

It saves time and money and helps employees to in career transition.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

cxcvii

REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

43. What is the normal planning time horizon for succession planning? a. one to two months b. one to two quarters c. one to two years d. two years or more ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 44. Why are Canada’s family businesses facing a leadership crisis? a. lack of business planning b. lack of environmental scanning c. lack of organizational goals d. lack of succession planning ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. Which of the following is NOT a way in which succession planning is linked to effective HR planning? a.

It enables smooth internal employee movement and continuity. b.

It improves employee opportunities for management. c.

It supports new organizational structures and flexibility. d.

It motivates employees and promotes them for performance.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

46. What is a traditional approach to succession analysis? a. chain effect analysis b. replacement analysis c.

HR supply analysis d. movement analysis ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cxcviii

47. Demographic trends predict even greater shortages in the market supply due to retiring baby boom generation workers. What HR supply analysis method is therefore assuming much greater importance? a. staffing inventories b.

HRMS database c. succession planning d. movement analysis ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

48. Why would an organization want to conduct succession planning? a.

It provides for business continuity and future direction during inevitable change. b.

It supports employee resiliency and career development. c.

It is costly and time-consuming but increases employee commitment and motivation. d.

It is costly and time-consuming but increases organizational efficiency and productivity.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

49. In replacement planning, what would be the starting point for HR planning? a. the job b. the strategy of the organization c. employees’ competencies d. position replacements ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

50. Succession management used to focus mainly on the CEO. However, there must be a pipeline of talent for the most critical roles. Which of the following is one of these pipeline positions? a. senior management team b. managers c. front line supervisors d. administrators ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

51. What are two motivational benefits of job rotation for employees? richard@qwconsultancy.com

cxcix

a. upward advancement and development opportunities b. employee satisfaction and commitment c. feelings of equity and justice d. job engagement and job enlargement ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

52. An organization wants to ensure it develops future leaders. The organization has begun the succession management process by aligning its succession management plans with strategy. What is the next (second) step the organization would take to ensure it develops its own future leaders? a.

Identify high-potential leaders. b.

Identify the leadership skills and competencies needed. c.

Develop an employee value proposition to retain leaders. d.

Provide leadership developmental opportunities and experiences.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

53. According to your textbook, what is one reason organizations have succession management programs? a. to improve employees’ ability to respond to changing environmental demands b. to assist employees set realistic and attainable career plans c. to improve performance management systems d. to improve organizational development ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

54. With demographic trends predicting even greater shortages in the market supply due to retiring baby boom generation workers, what HR supply analysis method is now assuming much greater importance? a. staffing inventories b.

HRMS database c. succession planning d. movement analysis ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cc

55. An organization wants to ensure it develops future leaders. It has begun the succession management process by aligning its succession management plans with strategy and identifying the leadership knowledge skills and abilities needed. What is the next (third) step the organization would take to ensure it develops its own future leaders? a.

Identify high-potential leaders. b.

Develop a talent management culture. c.

Ensure organizational commitment to succession management plans. d.

Provide leadership developmental opportunities and experiences.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

56. Companies that have implemented effective succession management have experienced three outcomes.

According to your textbook, which of the following is one of these outcomes? a. improved organizational development b. an increase in leadership development c. an increase in shareholder value d. reduced absenteeism and turnover ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

57. What HR concept refers to the systematic process of determining critical roles within the organization, identifying and evaluating possible successors, and developing them for these roles? a.

HR planning b. organizational development c. leadership development d. succession management ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

58. What HR concept might be viewed as part of the talent management process of an organization that focuses on the flow of employees, starting from selection to career management to exit, through the organization? a. leadership development b. mentorship and coaching c. succession management d. management development ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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59. Succession management used to focus mainly on the CEO. However, there must be a pipeline of talent for the most critical roles that provide long-term value to the organization. Which of the following might be considered as one of these critical roles? a. scientists or customer relationship specialists b. managers or front-line supervisors c. administrators or marketing specialists d. employees and managers ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

60. The effective implementation of succession management has been linked to three outcomes. According to your textbook, which of the following is one of these outcomes? a. improved performance management b. the retention of key talent c. an increase in training and development d. improved career development ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

61. The effective implementation of succession management has been linked to three outcomes. According to your textbook, which of the following is one of these outcomes? a. improved performance management b. reduced senior executive turnover after succession c. an increase in leadership development d. increased career opportunities ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

62. Which of the following is the goal of succession management programs? a. to improve the performance management of leaders and to ensure business continuity b. to identify leadership positions and develop future leaders c. to identify and prepare future leaders and to ensure business continuity d. to identify leadership behaviours that will improve the performance of leaders ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice ccii

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

63. Most internal candidates succeed in their new organization. What is the percentage of success of internal job candidates? a.

50 percent b.

67 percent c.

75 percent d.

80 percent ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

64. There are many reasons organizations have succession management. According to your textbook, what is one of these reasons? a. to improve internal and external candidate pools b. to balance employee and employer needs c. to recognize labour gaps d. to retain employees ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

65. Research shows that when a company is doing well, internal candidates are favoured to sustain high performance. What is the reason for this preferring of internal candidates? a.

They have high-potential leader skills. b.

They fit into a talent management culture. c.

They possess valuable firm-specific knowledge. d.

They are more committed to the organization.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

66. An organization identifies the employees who are critical to the success of the organization. What is this HR process called? a. talent segmentation b. talent pooling c. talent development d. talent management ANSWER: a POINTS: 1 DIFFICULTY: Moderate richard@qwconsultancy.com

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REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

67. Succession management depends on internal and external candidates. Which of the following is an advantage of internal candidates? a.

Internal candidates may have better skills to lead the organization through a major transformation. b.

Internal candidates bring new knowledge acquired through training and development. c.

Internal candidates prevent the organization from becoming stagnant. d.

Internal candidates can preserve the corporate culture.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

68. A succession management approach not only depends on internal candidates but also tracks external candidates.

Which of the following is an advantage of external candidates? a.

External candidates bring new knowledge and skills to the organization. b.

External recruitment and selection costs are lower. c.

There is less internal disruption waiting to see who the new leader is with external candidates. d.

Organizations have more and better information about external candidates.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

69. What is one reason organizations have succession management programs? a. to assist employees in their employment transitions in and out of the organization b. to encourage the advancement of diverse groups c. to reduce employee absenteeism and turnover d. to develop leaders slowly and with caution ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 7.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

70. What is the most common and most effective leader development activity as rated by HR managers? a. computer-based learning b. tests, assessments, or other measures of skills cciv

c. special projects within one’s own job responsibilities d. coaching with external coaches or mentors ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Table 7.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

71. Why is succession planning critical for effective HR planning? a.

It helps to develop employees with new experiences and jobs in case they are laid off. b.

It helps employees to stay motivated because it promotes them for their performance. c.

It helps an organization to stabilize its organizational structures and flexibility. d.

It saves time and money and helps employees to smooth their movement for external hiring.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

72. Which of the following is NOT a reason that links succession planning to effective HR planning? a.

It enables smooth internal employee movement and continuity. b.

It improves employee opportunities for management. c.

It supports new organizational structures and flexibility. d.

It motivates employees and promotes them for performance.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

73. What is another term for succession analysis? a. chain effect analysis b. replacement analysis c.

HR supply analysis d. movement analysis ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

74. With demographic trends predicting shortages resulting from older retiring workers, what organizational HR supply planning method is now assuming much greater importance? a. expanding HRMSs in implementing effective supply forecasting procedures richard@qwconsultancy.com

ccv

b. expanding staffing inventories c. long-term succession planning d. short-term emergency succession planning ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

75. Why would an organization want to conduct succession planning? a.

Succession planning provides for business continuity and future direction during inevitable change. b.

Succession planning supports employee resiliency and career development. c.

Although succession planning is costly and time consuming, it increases employee commitment and motivation. d.

Although succession planning is costly and time consuming, it increases organizational efficiency and productivity.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 76. An individual worker’s skill and knowledge requirements are matched to the specific jobs within an organization.

What is this process called? a.

Markov analysis b. job specification and job matching c. succession and replacement planning d.

HRM systems ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

77. HR planning revealed that planning that dealt with determining which internal candidates were best suited for promotion within an organization was a weakness. What is this weakness called? a. job design b. succession planning c.

HR supply planning d. specification planning ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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78. Which of the following is NOT a risk that would be managed by HR professionals when considering succession management? a. transition risk b. vacancy risk c. assumed risk d. readiness risk ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

Pacific Health Care Pacific Health Care (PHC) operates 18 health care facilities in B.C. with more than 1,600 total beds, and it employs approximately 2,200 registered nurses (RN) and 350 licensed practical nurses (LPN). PHC focuses its services on four “populations of emphasis”: cardio-pulmonary risks and illnesses, mental health, renal risks and illness, and specialized needs in aging.

Administrators in PHC’s facilities are worried about a looming shortage of RNs and LPNs and are already experiencing rising overtime and sick-time costs. A chronic shortage of specialty-trained nurses resulted in a 6 percent increase in overtime costs over the previous year. Specialty nurses took home $125,000 in overtime pay this past year. Median pay for a registered nurse with specialty knowledge and skills is $75,000 a year.

RNs and LPNs are not working to the fullest extent of their respective scopes of practice. RNs are in charge and given patient information and assignments, and LPNs “float” around helping with tasks such as taking vital signs and answering call bells. LPNs have limited patient information and are not encouraged to participate in patient care plans. Staff departures by retirement or resignation are increasing.

Adding to this issue of nursing shortages is the growing scarcity of senior nurse administrators with the required leadership competencies. Of particular concern is that this critical shortage of nurse managers responsible for managing various departments is expected to worsen.

Each department is undertaking a detailed assessment of its staffing needs with the aim of working toward developing a staff complement that has the skills, capacity, and expertise to meet PHC’s HR needs.

79. Refer to Scenario: Pacific Health Care. With demographic trends predicting even greater shortages in the market supply of health care workers, what organizational HR supply planning method is now assuming much greater importance? a.

HRMS database b. staffing inventories c. succession planning d. movement analysis ANSWER: c RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:02 AM

80. Refer to Scenario: Pacific Health Care. Why would PHC want to conduct succession planning for effective HR planning? a.

It enables PHC to respond appropriately when unpredictable changes occur. b.

It supports the PHC’s organizational dependency on skilled and knowledgeable employees. c.

Although succession planning is costly and time consuming, it increases employee commitment and motivation. d.

Although succession planning is costly and time consuming, it increases organizational efficiency and productivity. richard@qwconsultancy.com

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ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:02 AM

81. Refer to Scenario: Pacific Health Care. Which of the following would NOT be a risk that would be managed by PHC’s HR professionals when considering succession management? a. transition risk b. vacancy risk c. potential risk d. readiness risk ANSWER: c RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:25 PM

82. Refer to Scenario: Pacific Health Care. PHC obtained information about its RN and LPN jobs to determine the duties, tasks, knowledge, skills, abilities, equipment used, working conditions, effort, job context, and performance standards necessary to perform the work successfully. What is this HR process called? a. job specification b. human resource planning c. job evaluation d. job analysis ANSWER: d RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:26 PM 83. Refer to Scenario: Pacific Health Care. The administrators in PHC’s facilities need to prepare job information that will list the tasks, duties, and responsibilities of the RN and LPN jobs along with the knowledge, skills, and abilities needed for LPNs and RNs to successfully perform their jobs. What is this job information called? a. job performance standards b. job summary c. job description d. job design ANSWER: c RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management QUESTION TYPE: Multiple Choice ccviii

HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:04 AM

84. Refer to Scenario: Pacific Health Care. An LPN at PHC must be a current full practising licensure with the College of Licensed Practical Nurses of British Columbia (CLPNBC). An individual worker’s LPN licence and other skill and knowledge requirements are matched to specific jobs at PHC. What is this process called? a. succession and replacement planning b.

Markov analysis c. job specification and job matching d.

HRM systems ANSWER: a RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:27 PM

85. Refer to Scenario 1: Pacific Health Care. An analysis by PHC revealed that planning that dealt with determining which internal candidates were best suited for promotion within an organization was a weakness. What is this weakness called? a. job design b. succession planning c.

HR supply planning d. specification planning ANSWER: b RATIONALE: NARR: Pacific POINTS: 1 DIFFICULTY: High REFERENCES: Importance of Succession Management KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:06 AM

86. In succession management, there must be a pipeline for talent only for critical roles such as the CEO and senior management. a.

True b.

False ANSWER: False RATIONALE: (and also critical roles such as scientists or customer relationship specialists) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

87. Replacement planning is the process of finding replacement employees for key managerial positions. a.

True richard@qwconsultancy.com

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b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

88. According to Peter Drucker, only one quarter of organizations know who would take charge if their CEO resigned today. a.

True b.

False ANSWER: False RATIONALE: (one half) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

89. If a contract is transactional in nature, it will list the responsibilities of each party in the employer–employee relationship. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 90. According to the textbook, about one half of the HR managers surveyed didn’t consider grooming potential leaders a high priority. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

91. Once high-potential or star employees are discovered, it is important for an organization to communicate to them that they are valued and have leadership potential, while at the same time making commitments to their promised career progression. a.

True b.

False ANSWER: False RATIONALE: (without promising anything) POINTS: 1 REFERENCES: Importance of Succession Management ccx

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

92. Job rotation includes both lateral and vertical moves within an organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

93. Traditional approaches to management development included a senior leadership course and one developmental assignment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

94. One way of quickly orienting a new employee is to place him or her in a new department every few weeks. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

95. Counselling and friendship are two benefits derived from mentorship. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

96. HR should own the talent management process in order to mitigate three types of risk to the organization: vacancy risk, readiness risk, and performance risk. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (transition risk not performance risk) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

97. HR planning has evolved into succession planning by creating a talent pool of replacements and improving the evaluation system. a.

True b.

False ANSWER: False RATIONALE: (Replacement planning has evolved into succession management) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

98. Before considering developmental opportunities and experiences to develop managers, two main questions should be asked: “Are leaders born or made?” and “Should leaders be bought or made?” a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

99. Mentors are executives who coach, advise, and encourage junior employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

100. Mentors are almost always more senior people who volunteer within an organization, while coaches are volunteers from outside the organization a.

True b.

False ANSWER: False RATIONALE: (Coaches are paid counsellors from outside the organization.)

POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False ccxii

DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

101. An acceleration pool is a group of candidates whose development an organization wishes to accelerate. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

102. A common use of job rotation is to take a functional generalist, such as an accountant, and rotate this individual through specialist areas, such as HR and production, in preparation for management. a.

True b.

False ANSWER: False RATIONALE: (take a functional specialist) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

103. Key job candidates seem to be attracted to companies that are characterized by growth and development. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 104. Peter Drucker said that “most managers are born, not made!” a.

True b.

False ANSWER: False RATIONALE: (“Most managers are made, not born … ”) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

105. There are two approaches to identifying the characteristics of a successful manager: experience-based and competency-based. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (job-based not experience-based) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

106. Core competencies are characteristics, such as business knowledge, shared by different positions within an organization a.

True b.

False ANSWER: False RATIONALE: (role competencies) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

107. The goals of succession management programs are to identify and prepare future leaders and to ensure business growth. a.

True b.

False ANSWER: False RATIONALE: (ensure business continuity) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

108. Role competencies are characteristics, such as thinking skills, that every member of the organization is expected to possess. a.

True b.

False ANSWER: False RATIONALE: (core competencies) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

109. Succession management is needed even when retirements and company sellouts are predictable. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False ccxiv

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

110. The succession management process links replacement planning and management development. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 111. Succession readiness codes state what the employee’s level of performance will be in the future. a.

True b.

False ANSWER: False RATIONALE: (level of performance in current job) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

112. The effective implementation of succession management has been linked to several outcomes. One of these outcomes is the increase in shareholder value. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

113. In both replacement planning and succession management the starting point is the strategy of the organization. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

114. As employees cannot trust organizations to provide lifetime job security, so too organizations cannot rely on single individuals or a small group of employees for their succession plans. a.

True b.

False richard@qwconsultancy.com

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ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

115. The first type of document used in succession planning is referred to as a succession/ replacement table. a.

True b.

False ANSWER: False RATIONALE: (replacement chart) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

116. Replacement planning refers to the systematic process of determining critical roles within the organization, identifying and evaluating possible successors, and developing them for these roles. a.

True b.

False ANSWER: False RATIONALE: (succession management) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

117. In reference to succession plans, organizations can rely on single individuals or a small group of employees. a.

True b.

False ANSWER: False RATIONALE: (cannot) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

118. Key job candidates seem to be attracted to companies where employees have flexibility and good relationships with the boss. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM ccxvi

DATE MODIFIED:

9/13/2018 9:08 AM

119. Succession management consists of a process of identifying employees who have the potential to assume key positions in the organization and preparing them for these positions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

120. Succession management might be viewed as part of the talent management process of an organization that focuses on the flow of employees, starting from selection to career management to exit, through the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

121. Mentoring is the systematic process of determining critical roles with the organization, identifying and evaluating possible successors, and developing them for these roles. a.

True b.

False ANSWER: False RATIONALE: (succession management) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

122. The effective implementation of succession management has been linked to several outcomes. One of these outcomes is the retention of key talent. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

123. Organizations that have developed a reputation for developing key talent have a significant value proposition to attract new employees and retain key ones. a.

True richard@qwconsultancy.com

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b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

124. The goal of succession management programs are to identify and prepare future leaders and to ensure business continuity. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

125. The first priority of any succession management program is to have a plan to replace its leaders. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

126. HR planning is the process of identifying short-term and long-term emergency backups to fill critical positions. a.

True b.

False ANSWER: False RATIONALE: (replacement planning) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

127. The effective implementation of succession management has been linked to several outcomes. One of these outcomes is the reduced senior executive turnover after succession. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM ccxviii

128. Research in HR has indicated that the best predictor of future performance is current performance. a.

True b.

False ANSWER: False RATIONALE: (past performance) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

129. Replacement planning has evolved into succession management by broadening the focus and reducing the time horizon. a.

True b.

False ANSWER: False RATIONALE: (expanding the time horizon) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

130. In replacement planning, the starting point is the job, whereas in succession management, the starting point is the strategy of the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

131. In reference to succession plans, employees can trust organizations to provide lifetime job security. a.

True b.

False ANSWER: False RATIONALE: (cannot) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 132. In a succession management approach, few senior leaders give current evaluations on an employee’s performance. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (several raters) POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

133. An employee value proposition is a brand positioning aimed at employees so that the company will be seen as an employer worth working for. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

134. What is the difference between succession management and replacement planning?

ANSWER: Succession management is the process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the organization.

Replacement planning is the process of finding replacement employees for key managerial positions. ∙ focus of replacement planning is the job and having someone to fill that job ∙ development of succession or replacement charts to fill key positions in the organization ∙ consists of periodically updating the table of employees who might be selected for promotions if the need arises ∙ depends on a stable future, including unchanging organizational structures POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 135. Why is succession management so important in today’s workplace?

ANSWER: Succession management is important because: ∙ It ensures continuity in leadership by developing the “next generation of players.” ∙ Organizations must prepare for expected and unexpected turnover. ∙ It plans for replacement of retiring staff. ∙ It provides opportunities for high-potential workers.

POINTS: 1 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

136. What are the five steps in the succession management process?

ANSWER: ∙ aligning succession management plans with strategy ∙ identifying the skills and competencies needed to meet strategic objectives ∙ identifying high-potential employees ccxx

∙ providing developmental opportunities and experiences ∙ monitoring succession management POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

137. What are three of the key characteristics that are critical to the perceptions of the effectiveness of succession management?

ANSWER: ∙ a timeframe for achieving planned action ∙ flexible adjustments to changes in strategic plans ∙ the sharing of information about the nomination process performance and rankings with identified candidates ∙ visible support from top management ∙ the involvement of line management in the identification and development of candidates POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

138. A succession management approach should track not only on internal candidates but also external candidates.

Discuss the advantages and disadvantages of internal and external candidates? Which method is preferred?

ANSWER: Advantages of Internal Candidates: ∙ Organizations have more and better information about internal candidates. ∙ Organizations that offer career development and opportunities to internal candidates increase commitment and retention among their employees. ∙ Internally developed leaders preserve corporate culture. ∙ Internal candidates can hit the road running because they know the organization, its people, and its processes. Other employees know the internal candidate, and there is less internal disruption as a result of waiting to see who the new executive is and what changes he or she will make. Internally chosen executives do not replace those who report to them as often as external candidates do; externally chosen candidates often get rid of the “old guard.” ∙ Recruitment and selection costs are lower. For example, the replacement cost of a CEO is estimated to be $750 000, including the use of a search firm and lost opportunities while getting the external candidate up to speed.

Additionally, internal candidates do not have to be compensated at the higher levels demanded by external candidates (who face the risk of starting in a new organization).

Advantages of External Candidates: ∙ The external candidate may have better skills to lead the organization through a major transformation or change in strategy. ∙ The external candidate brings new knowledge and skills to the organization and prevents the organization from becoming inbred and stale.

The list of advantages of internal candidates is more robust than that of external candidates, and the reality is that about two-thirds of internal candidates do succeed. Moreover, it appears that when a company is doing well, internal candidates are favoured to sustain high performance because they possess valuable firm-specific knowledge. But overall, it appears that companies that are performing well do better by hiring from within, and companies that are struggling show better returns by hiring outsiders.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:08 AM

139. Define replacement planning. Describe how replacement planning has evolved into succession management.

ANSWER: Replacement planning is the process of identifying short-term and long-term emergency backups to fill critical positions.

Replacement planning has evolved into succession management by broadening the focus, expanding the time horizon, creating a talent pool of replacements, and improving the evaluation system.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

140. Identify an organization you are familiar with (such as from your work experience or from the course textbook).

Discuss the reasons why the organization would implement succession planning.

ANSWER: ∙ To improve internal candidate pools ∙ To assure business continuity ∙ To reduce skill gaps ∙ To retain employees ∙ To help individuals realize their career plans within the organization ∙ To develop leaders more quickly ∙ To encourage the advancement of diverse groups ∙ To improve employees’ ability to respond to changing environmental demands POINTS: 10 REFERENCES: HR Planning Notebook 7.2 QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

141. Discuss the following two questions as they relate to succession management and management development.

1. Are leaders born or made?

2. Should organizations produce their own managerial talent or buy it on the open market?

ANSWER: Born or made?

Peter Drucker, considered by many to be the founder of management as a discipline, is credited with saying, “Most managers are made, not born. There has to be systematic work on the supply, the development, and the skills of tomorrow’s management. It cannot be left to chance.”

Buy or make?

One survey found than more than half of companies need to hire an outsider because no insider has been developed to assume the CEO role. By bringing in an outsider, the company sends a strong message to employees and shareholders that the old way of doing things will change. Other organizations feel strongly that they want to indoctrinate and train their own leaders, who then have a deep commitment to the organizational vision.

Management Development There are no easy answers to these questions. Organizations may find outstanding leaders by chance, or they may commit to the development process. Some may choose to hire from the outside to obtain fresh approaches; others will commit significant time and money to train their own managers. However, most large organizations have a policy of promotion from within. There are many advantages to this: the organization has accurate records of employees’ past performance, and employees understand and are committed to organizational objectives, know the ropes, and know how to get things done. Some estimate that one-third to one-half of new CEOs fail within the first 18 months. Newcomers apparently fail at understanding the political situation or overestimate an organization’s willingness to change (often the core reason that they were hired). Another reason to recruit internally is that CEOs ccxxii

recruited from the outside delivered annual returns 3.7 percent lower than insiders. Plus, external hires are paid about 18 percent more than internals, with little evidence that they produce better results. Most large organizations have formal management development programs to ensure a ready supply of “promotables.” Some of the methods organizations use for management development include promotions, job rotations, special assignments and action learning, formal training and development, and mentoring and coaching.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

142. Define job rotation, providing an example. Job rotation has several motivational benefits for employees.

Describe two benefits.

ANSWER: Job rotations are lateral (and vertical) transfers of employees between jobs in an organization.

Rotations involve a change in job assignments but not necessarily more responsibility or money. For example, one way of orienting a new employee quickly is to place him or her in a new department every few weeks, providing an overview of the organization. Another example is Maritime Life Insurance, which placed staff with potential in a variety of roles across the organization to avoid costly placement decisions.

Rotations have several motivational benefits for employees, including the reduction of boredom and fatigue. Trying out new jobs also benefits employees who have reached a career plateau. The development of additional skills may increase an employee’s job and career prospects. Almost all the research suggests that job rotation makes employees more satisfied, motivated, involved, and committed.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

143. Describe two advantages and two disadvantages of using job rotation as a development opportunity for potential future leaders.

ANSWER: From the organization’s standpoint, rotations are useful for orientation and career development.

Rotations allow an employee to increase his or her experience, knowledge, and skills. A common use of job rotation is to take a functional specialist, such as an accountant, and rotate this specialist through both HR and operations in preparation for management positions. Besides the additional knowledge of the functional areas, such as sales, and management areas, such as business knowledge, the rotated employee is making contacts and establishing a network that might prove useful in the future. Learning new ways of doing things, with different co-workers and bosses, also might make employees more adaptable in their managerial jobs. The research shows that rotation improves an employee’s knowledge of the organization (e.g., of business, strategy, and contacts) and improves his or her ability to cope with uncertainty. Furthermore, employees who have tried out several jobs gain a better insight into their own strengths and weaknesses. However, job rotation produces generalists and should be supplemented by training for any specific skills needed.

Of course, the downside of employee rotations includes the increased time needed to learn the new jobs, the cost of errors while learning, and the loss of efficiency that otherwise is gained through repetition and specialization. In other words, workload may increase for the employee while productivity decreases, and other employees absorb additional work and stress in efforts to socialize, orient, and train the newcomer.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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144. What is succession planning, and what are three of its benefits to organizations?

ANSWER: Succession planning is the process of training and work experience that enables individuals to assume higher-level job appointments in the future. Some of its benefits include: ∙ Enabling the organization to respond appropriately and stay on track when inevitable changes occur; ∙ Providing for continuity and future direction in the midst of significant change; ∙ Helping prepare people for new experiences and jobs (this preparation can also help improve their performance in current positions); ∙ Positively motivating employees when succession planning takes into account employees’ performance; ∙ Supporting new organizational structures and flexibility by explicitly providing backup for various positions, thereby reducing organizational dependency on one employee; ∙ Saving time and money by having plans in place to enable the smooth transition of employees.

POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

145. Within your organization 30 percent of top management positions and 40 percent of middle management positions will become vacant in the near future. A growing number of the workforce began retiring in 2011 and these retirements of baby boomers are accelerating the loss of critical positions. Discuss how you would implement a formal succession plan for an organization.

ANSWER: There are five steps in the succession management process. ∙ Aligning succession management plans with strategy ∙ Identifying the skills and competencies needed to meet strategic objectives ∙ Identifying high-potential employees ∙ Providing developmental opportunities and experiences ∙ Monitoring succession management POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

146. Twenty percent of top management positions and 25 percent of middle management positions will become vacant in the near future, and retirements of baby boomers will accelerate this trend. Yet, about one-half of the HR managers consider developing potential leaders as a high priority. What reasons would you give to these HR managers to have them better understand the importance of succession management?

ANSWER: Some reasons for succession management are listed in HR Planning Notebook 7.2. ∙ Improve internal candidate pools ∙ Assure business continuity ∙ Reduce skill gaps ∙ Retain employees ∙ Help individuals realize their career plans within the organization ∙ Develop leaders more quickly ∙ Encourage the advancement of diverse groups ∙ Improve employees’ ability to respond to changing environmental demands POINTS: 10 REFERENCES: HR Planning Notebook 7.2.

QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic ccxxiv

DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

147. There are internal ways to judge whether a succession management program is successful. List three lag measures. Describe one providing an example.

ANSWER: • Increased average number of candidates for key positions • Reduced average number of positions having no identified successors • Increased percentage of managers with replacement plans • Increased percentage of key positions filled according to plans • Increased ratio of internal hires to external hires in key positions • Increased retention rates of key talent • Increased percentage of positive job evaluations after promotion • More positive assessment of the quality of preparedness for new roles • Increased number of bosses skilled as talent developers POINTS: 10 REFERENCES: Importance of Succession Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

Pacific Health Care Pacific Health Care (PHC) operates 18 health care facilities in B.C. with more than 1,600 total beds, and it employs approximately 2,200 registered nurses (RN) and 350 licensed practical nurses (LPN). PHC focuses its services on four “populations of emphasis”: cardio-pulmonary risks and illnesses, mental health, renal risks and illness, and specialized needs in aging.

Administrators in PHC’s facilities are worried about a looming shortage of RNs and LPNs and are already experiencing rising overtime and sick-time costs. A chronic shortage of specialty-trained nurses resulted in a 6 percent increase in overtime costs over the previous year. Specialty nurses took home $125,000 in overtime pay this past year. Median pay for a registered nurse with specialty knowledge and skills is $75,000 a year.

RNs and LPNs are not working to the fullest extent of their respective scopes of practice. RNs are in charge and given patient information and assignments, and LPNs “float” around helping with tasks such as taking vital signs and answering call bells. LPNs have limited patient information and are not encouraged to participate in patient care plans. Staff departures by retirement or resignation are increasing.

Adding to this issue of nursing shortages is the growing scarcity of senior nurse administrators with the required leadership competencies. Of particular concern is that this critical shortage of nurse managers responsible for managing various departments is expected to worsen.

Each department is undertaking a detailed assessment of its staffing needs with the aim of working toward developing a staff complement that has the skills, capacity, and expertise to meet PHC’s HR needs.

148. Analyze Case Incident: Pacific Health Care. Throughout your case incident analysis, assume the role of a human resources consultant. Your task is to advise the organization on how it should align its strategic human resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the causes of the problem/opportunity, identify solutions, and recommend a plan for implementation and justification. Please be specific about the approaches and methods you would recommend to facilitate the workforce forecasting process and, in particular, how the organization will ascertain HR supply for nurse administrators and managers.

ANSWER: Refer to various sections in Chapter 7, “Succession Management” NARR: Pacific POINTS: 10 REFERENCES: Various sections in Chapter 7, “Succession Management” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 1/18/2019 9:07 AM

149. Analyze Case Incident: Pacific Health Care. Discuss how succession management could mitigate the seriousness of this situation.

ANSWER: Refer to various sections in Chapter 7, “Succession Management” NARR: Pacific POINTS: 10 REFERENCES: Various sections in Chapter 7, “Succession Management” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:08 AM

150. Analyze Case Incident: Pacific Health Care. Discuss the steps you would take to ensure there are successors for future senior nursing administration and management positions.

ANSWER: Refer to various sections in Chapter 7, “Succession Management.” There are five steps in the succession management process.

1. Aligning succession management plans with strategy 2. Identifying the skills and competencies needed to meet strategic objectives 3. Identifying high-potential employees 4. Providing developmental opportunities and experiences 5. Monitoring succession management NARR: Pacific POINTS: 10 REFERENCES: Various sections in Chapter 7, “Succession Management” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic PREFACE NAME: Pacific NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:08 AM

1. What is another name for the performance appraisal system known as a 360o feedback? a. multiple source b. comprehensive data c. vertical assessment d. appraisal feedback ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

2. What type of analysis is required when analyzing HRM software information such as the size of the company and network environment? a. network b. critical c. data d. needs ANSWER: d ccxxvi

POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

3. Compared to a paper-based HR system, what can users of an IT system do better? a. project demand/supply b. support succession planning c. prepare strategies d. retrieve data ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

4. The role of workforce analytics can be placed into one or more of three categories. What analytic domain makes inferences based on existing data to describe what could happen? a. prescriptive analytics b. functional analytics c. predictive analytics d. differential analytics ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. What leads the list of HR mobile apps? a. benefits b. training c. recruiting d. attendance management ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

6. The use of information technology (IT) for HRM planning allows HR to mine data faster, cheaper, and more effectively than any paper-based system. What role can HR dedicate more time and resources to resulting from the use of IT? a. strategic role of change agent b. transactional role c. operational role d. functional role ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

7. If ESS and MSS applications are available to employees and managers, one can conclude that the information is being captured at the source. What type of technology platform applies these applications? a. e-learning b. self-service c. outsourcing d. online ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

8. When an organization applies HR metrics workforce analytics, what is the major challenge it needs to overcome in order to address strategic decision making? a. business intelligence b. skills inventories c. succession management d. replacement charts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce AnalyticsKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

9. If an organization utilizes advanced information technologies, what is one communication property it will benefit from? a. storage and retrieval of large amounts of information b. rapidly and accurately reconfigured information c. improved transmission of processing capacity d. selectively controlled access and participation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 8.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

10. Which of the following is a strategic and analytic HR operation that is starting to benefit from the capabilities of automation? a. employee benefits b. organizational charts c. employee payroll d. recruitment ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice ccxxviii

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

11. If a database can share information across many tables or files, what is it called? a. segregated b. relational c. derived d. condensed ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. Companies go through various stages of adopting of HR technology. What would be the last stage? a.

The organization updates employee data. b.

The organization supplements employee data. c.

The organizations uses employee data. d.

The organization codifies employee data.

ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

13. If a company is conducting a needs analysis to assist its IT selection for HRM, it will respond to numerous questions. According to the textbook, which question is most likely to be posed by the company? a.

Is the HR department spending enough time on manual processing? b.

Are there too many data security risks involved with IT processing? c.

Are we managing our human capital as a current asset? d.

Are we maintaining too much redundant information?

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 8.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

14. What is the purpose of dashboards? a. to provide managers with business strategy indicators b. to indicate when changes to aspects of business performance are in order c. to provide managers with a quick understanding of key performance indicators in their business d. to gain an understanding what data is available for use in various projects ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics richard@qwconsultancy.com

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

15. What key performance indicators (KPIs) are best to include in an HR dashboard? a. those that track the amount of communication between team or group members to map the flow of communication and transfer of information across groups b. those that demonstrate the extent to which the HR function is addressing strategic needs, and are improving service quality and efficiency c. those that provide managers with future indicators of business success d. those that focus managers’ attention on the most recent and up-to-date information ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

16. What is the first stage in deciding to use technology for HRM? a. explore the marketplace b. codify employee data c. conduct an organizational analysis d. evaluate vendors and products ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

17. Which of the following are some new apps for HR that are becoming popular today? a. self-service, training, and compensation b. employee assistance programs, pensions, and vacations c. people search, benefits administration, and talent management d. legal information, health and safety, and employment testing ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 8.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

18. Which of the following is a strategic HR operation that is starting to benefit from the capabilities of automation? a. employee data storage b. employee payroll c. performance management d. job postings ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: IT and HRM ccxxx

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

19. According to the textbook, computer capacity has doubled every 24 months. When did this trend start to occur? a.

1970 b.

1980 c.

1990 d.

2000 ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

20. A relational database creates information that can be shared across multiple files simultaneously. What type of security systems might be used to protect the security of the data? a. keeping the system on b. smart cards or access codes c. encryption devices d.

PINs and memory sticks ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

21. Technology initiatives need to be evaluated in a variety of ways. What are two effectiveness items that are useful in this evaluation process? a. information satisfaction and system quality b. information usefulness and system satisfaction c. system quality and information attitude d. system satisfaction and information usefulness ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 8.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. What term is best defined as a software-based ability to demonstrate learning and decision making? a. talent management data b.

Big data c. artificial intelligence d. web-based database ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Big Data QUESTION TYPE: Multiple Choice HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

23. The role of workforce analytics can be placed into one or more of three categories. What analytic domain describes what happened? a. descriptive analytics b. predictive analytics c. prescriptive analytics d. functional analytics ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

24. If an HR manager requires a comprehensive across-the-board software system that integrates subsystems and modules, what does the manager need? a.

MSS b.

HRMSP c.

HRIS d.

IHRIM ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 25. What is the first step in defining an organization’s needs regarding a new technology solution for HRM? a. explore the marketplace b. develop a proposal c. conduct a needs analysis d. evaluate data security ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

26. If an organization is interested in trying to link phenomena together in order to detect trends or predict behaviours, what type of reporting should management use? a. financial b. forensic c. activity-based d. scanning ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR PlanningKEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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27. In order for data security systems to be effective, there must be a proper balance between what an individual is expected to divulge and another factor. What is this second factor? a. what information employment and management decisions require b. what the security system costs and the known or projected benefits c. what level of technology acceptance and user satisfaction is expected d. what the size of the organization is relative to its external environment ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

28. What three types of security features are used to ensure data security? a. data field security, record security, and information security b. row-level security, information security, and system security c. record security, login security, and data field security d. login security, row-level security, and field-level security ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. The role of workforce analytics can be placed into one or more of three categories. What analytic domain describes what should happen? a. prescriptive analytics b. explanatory analytics c. descriptive analytics d. predictive analytics ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

30. The use of information technology (IT) for HRM planning helps HR help alleviate the burden of operational activities. What HR role is being reduced by IT? a. strategic role of business partner b. strategic role of change agent c. transactional role d. functional role ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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31. What are three apps for HR functions offered through the use of mobile technology? a. self-service, training, and compensation b. employee assistance programs, pensions, and vacations c. recruitment, benefits administration, and talent management d. legal information, health and safety, and employment testing ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 8.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

32. What are three HR apps that have become popular through the use of mobile technology? a. training, benefits, and employment data b. employee assistance programs, pensions, and vacations c. people search applications, benefits administration, and talent management d. legal information, health and safety, and employment testing ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 8.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. Which of the following is a strategic HR application that is beginning to benefit from the capabilities of automation? a. succession management b. organizational charts c. employee payroll d. employee benefits ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

34. The use of information technology (IT) for HRM planning provides better data storage, information retrieval, and tools for analysis alleviating the burden of operational activities. What role can HR dedicate more time and resources to resulting from the use of IT? a. functional role b. transactional role c. strategic role d. operational role ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM ccxxxiv

35. Organizations go through various stages as they decide to use technology to help manage the workforce. What would be the first stage? a.

The organization supplements employee data by drawing from other sources. b.

The organization codifies employee data such as name, job, and compensation. c.

The organization updates employee data such as career profiles. d.

The organizations uses data to predict employee behaviour such as turnover.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. HR metrics functions largely within one domain. Which of the following is this initial workforce analytic domain? a. predictive analytics b. functional analytics c. descriptive analytics d. prescriptive analytics ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 37. What is a new service delivery model that would allow an organization’s workers to access, input, and edit personal information in a timely manner? a. compensation data systems b. self-service systems c. personnel data systems d. human resource data systems ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

38. What is a new service delivery model that would allow an organization to adopt e-learning and e-recruiting processes? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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39. HR planners want to ensure that the technology they adopt enables workers to access and modify their data via a web browser using their laptop computer. What is this service delivery model called? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 40. An organization’s human resource department wants to ensure that the technology it adopts allows workers to gain access to knowledge repositories and other e-HR functions. What is this service delivery model called? a. enterprise portals b. self-service systems c. personnel data systems d. web-based HR ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 41. An organization’s training and development specialists want to ensure that learning contents are distributed in digital format via computers over its network. What is this service delivery model called? a. enterprise portals b. self-service systems c. business intelligence d. e-learning ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

42. What HR metric is an aggregation of useful or relevant HR metrics or performance indicators that provide a summary snapshot of performance? a. business intelligence b.

Big data c.

HR dashboard d. predictive analytics ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

43. What type of database can share information across multiple tables allowing the same information to exist in multiple files simultaneously? ccxxxvi

a.

HRIS database b. self-service database c. relational database d. web-based database ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

44. What concept is best defined as the integration of digitized data from multiple sources and in multiple formats, including structured and unstructured data? a.

HRIS data b.

Big data c. self-service data d. web-based database ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Big Data QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. What term can be described as hardware and software, including networking and communication technologies involved in storing, retrieving, and transmitting information? a. information technology b.

Big data c.

HR metrics d.

HR data ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: IT and HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

46. Which of the following HR mobile apps allows managers and employees to view current skills, job histories, and succession plans as well as get data on open positions, head counts, turnover, and other HR planning metrics? a. people search applications b. talent management applications c. career development applications d. benefits administration applications ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 47. An organization’s human resource department wants to ensure they provide a single site for employees to access HR services. What is this service delivery model called? a. information systems b. self-service systems c. enterprise portals d. technology-based HR ANSWER: c richard@qwconsultancy.com

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POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 48. A company’s human resource department wants to ensure that the technology it adopts allows employees from multiple locations to access and benefit from specialized knowledge associated with various tasks. What is this service delivery model called? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

49. Increasing usage of mobile technology has created an apps culture for some organizations. What leads the list of HR mobile apps? a. recruiting b. training c. benefits d. payroll ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

50. Which of the following HR mobile apps allows recruiters to mine social media to pull information from Twitter, Facebook etc. about candidates? a. people search applications b. staffing applications c.

HR data applications d. career profile applications ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

51. Which of the following HR mobile apps allows employees to request vacation time, track their use of benefits, and submit claims? a. employee career profile applications b. payroll administration applications c. employee employment applications d. benefits administration applications ANSWER: d POINTS: 1 DIFFICULTY: Moderate ccxxxviii

REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

52. What service delivery application is based on the principle that data is most effectively captured at the source? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

53. What service delivery application allows employees and managers to communicate with and affect databases? a. self-service systems b. web-based HR c.

HR data systems d. enterprise portals ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

54. An organization has introduced a service delivery system where information is being captured at the source.

What type of technology platform is it implementing? a. self-service b. online c. outsourcing d. e-learning ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

55. What HR service delivery application allows employees and managers to edit and input data on their personnel files? a. enterprise portals b. web-based HR c.

HR data systems d. self-service systems ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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56. What HR planning software provides applications for deploying employees most effectively, such as forecasting overhead to determine staffing and scheduling requirements? a. workforce scheduling b. forensic reporting c. system security d. applicant tracking ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

57. What HR planning software provides applications for auditing employees to ensure they comply with policies such as safety inspections or overtime payments? a. system security b. workforce scheduling c. applicant trackingd. forensic reporting ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

58. Tim Hortons integrates digitized data from all the corporate functions, including marketing, operations, finance, and HR, as well as information from social media sources such as Facebook and LinkedIn, and more. What is this data called? a.

HR data b. research data c. big data d. quantitative data ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Big Data QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

Nova Scotia Social Services Nova Scotia Social Services (NSSS) provides support services to families in need. After 32 round-table discussions, a new provincial strategic plan was developed. A decision was made to reduce the number of assistant directors throughout the province. As part of the strategic planning process, NSSS learned that 40 percent of its social workers are between the ages of 55 and 65 years, and 10 percent are over 65 years. The HR planners do not know exactly when these older social workers will decide to retire, but they assume that a large number of this baby boom cohort will be retiring over the next one to five years. Recruitment of social workers is becoming increasingly competitive.

One strategy developed by the Board Planning Committee is to make NSSS an employer of choice. As part of the strategic planning process, the Board Planning Committee decided to begin using information technology solutions for HR planning.

59. Refer to Scenario: Nova Scotia Social Services. What type of analysis will NSSS want to conduct when analyzing HR planning software information? a. retention b. staffing ccxl

c. data d. needs ANSWER: d RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:10 AM

60. Refer to Scenario: Nova Scotia Social Services. What three types of security features would NSSS want to adopt to ensure data security? a. login security, record security, and data field security b. row-level security, information security, and system security c. record security, login security, and data field security d. data field security, record security, and information security ANSWER: c RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: Other Aspects of IT for HR Planning KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:29 PM

61. Refer to Scenario: Nova Scotia Social Services. What is a new service delivery model that would allow NSSS workers to access, input, and edit personal information in a timely manner? a. compensation data systems b. self-service systems c. personnel data systems d. human resource data systems ANSWER: b RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:29 PM

62. Refer to Scenario: Nova Scotia Social Services. What is a new service delivery model that would allow NSSS to adopt e-learning and e-recruiting processes? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: a RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: New Service Delivery Models richard@qwconsultancy.com

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:10 AM

63. Refer to Scenario: Nova Scotia Social Services. NSSS wants to ensure that the technology it adopts enables workers to access and modify their data via a web browser from their laptop computer. What is this service delivery model called? a. web-based HR b. self-service systems c. personnel data systems d. enterprise portals ANSWER: b RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:11 AM

64. Refer to Scenario: Nova Scotia Social Services. NSSS wants to ensure that the technology it adopts allows workers to gain access to knowledge repositories and e-HR functions. What is this service delivery model called? a. enterprise portals b. self-service systems c. personnel data systems d. web-based HR ANSWER: a RATIONALE: NARR: Nova Scotia POINTS: 1 DIFFICULTY: Difficult REFERENCES: New Service Delivery Models QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 2:30 PM

65. The more strategic and analytic HR operations that use information technology are rarely outsourced. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 66. An enterprise resource planning (ERP) software program platform integrates and automates the firm’s business processes into a common database. a.

True b.

False ccxlii

ANSWER: True POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

67. Replacement planning deals with finding employees for all positions in the organization. a.

True b.

False ANSWER: False RATIONALE: (managerial positions) POINTS: 1 REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

68. One new trend in information technology for HR planning involves the use of forensic reporting. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Other Aspects of IT for HR PlanningKEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

69. Workforce analytics applications address the challenge of getting business intelligence for operational decision making. a.

True b.

False ANSWER: False RATIONALE: (strategic decision making) POINTS: 1 REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

70. As a result of information technology, HR professionals have been able to shift focus more to operational efficiency and transactional activities. a.

True b.

False ANSWER: False RATIONALE: (focus more on strategic roles of business partner and change agent.)

POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:08 AM

71. The hardware and software, including networking and communication technologies involved in storing, retrieving, and transmitting information, is referred to as information technology (IT). a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

72. Using technology to mine an HR database is faster but more expensive than any paper-based system. a.

True b.

False ANSWER: False RATIONALE: (less expensive) POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

73. E-learning is the process of learning contents distributed in digital format. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 74. HRIS represents “human resources intelligence system.” a.

True b.

False ANSWER: False RATIONALE: (human resources information system) POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

75. Transactional activities, such as employee benefits and payroll management, can be outsourced to an outside company. a.

True b.

False ANSWER: True ccxliv

POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

76. Two typical self-service platforms used in HR technology include the ESS and ISS. a.

True b.

False ANSWER: False RATIONALE: (ESS – employee self-service; MSS – manager self-service) POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

77. Online recruiting or e-recruiting is a type of web-based HR process and practice. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

78. A human resources information system includes only the software elements and support functions to gather, store, and report human resources data. a.

True b.

False ANSWER: False RATIONALE: (includes hardware and system policies and procedures as well) POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

79. Outsourcing involves contracting an outside company to manage a function that used to be dealt with within the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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80. An enterprise resource planning (ERP) program often incorporates finance, logistics, production, accounting, and HRM. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

81. Specialty products are software solutions for specific/specialized applications that are not always integrated with the main HR database. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

82. Information technology is allowing HR professionals more time and resources to be dedicated to the more strategic roles of business partner and change agent. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

83. Strategic and analytic operations can be outsourced to an outside company. a.

True b.

False ANSWER: False RATIONALE: (transactional activities) POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 84. In a self-service HR system, employers are not obligated to protect employees’ personal records. a.

True b.

False ANSWER: False RATIONALE: (are obligated) POINTS: 1 ccxlvi

REFERENCES: Other Aspects of IT for HR PlanningKEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

85. There is no legislation in Canada that requires personal information to be kept accurate, up-to-date, and complete as possible in an organizational HRIS. a.

True b.

False ANSWER: False RATIONALE: (is legislation) POINTS: 1 REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

86. Information technology (IT) can help project correct demand and supply levels on the basis of realistic scenarios. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

87. Workforce analytics applications address the challenge of getting business intelligence for strategic decision making. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

88. Workforce analytics uses statistical modelling and software to gather information about employees and work in order to optimize the use of human resources in the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Metrics and Workforce Analytics KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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89. Increasing usage of mobile technology has created an apps culture for some organizations, with industry sources predicting a doubling of usage among HR professionals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

90. People search applications is a mobile app that allows HR recruiters to mine social media to pull information from Twitter, Facebook etc. about candidates. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

91. Career management applications is a mobile app that allows employees to request vacation time, track their use of benefits, and submit claims. a.

True b.

False ANSWER: False RATIONALE: (benefits administration applications) POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

92. Talent management applications is a mobile app that allows managers and employees to view current skills, job histories, and succession plans as well as get data on open positions, head counts, turnover, and other HR planning metrics. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

93. Knowledge communities that allow employees from a single or multiple companies to access and benefit from specialized knowledge associated with tasks are referred to as enterprise portals a.

True b.

False ANSWER: True ccxlviii

POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

94. Self-service is a technology platform that enables employees and managers to access and modify their data via a web browser from a desktop or centralized kiosk. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

95. Knowledge communities that allow employees from a single or multiple companies to access and benefit from specialized knowledge associated with tasks are referred to as HRIS. a.

True b.

False ANSWER: False RATIONALE: (Enterprise portals) POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

96. Self-service is a technology platform that offers a web-based access point to all information sources, tools, and systems needed to consume HR services effectively. a.

True b.

False ANSWER: False RATIONALE: (Enterprise portals) POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

97. An enterprise portal is a technology platform that allows employees and managers to communicate with and affect databases. a.

True b.

False ANSWER: False RATIONALE: (self-service) POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

98. Human resources information system (HRIS) solutions are based on software that integrates data from diverse applications into a common database. a.

True b.

False ANSWER: False RATIONALE: (Enterprise resource planning) POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 99. Relational databases are commercial software systems that automate and integrate many or most of a firm’s business processes. a.

True b.

False ANSWER: False RATIONALE: (Enterprise resource planning) POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

100. Big data promotes the use of a single, shared relational database for critical information across the organization. a.

True b.

False ANSWER: False RATIONALE: (Enterprise resource planning) POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

101. Enterprise resource planning fosters the enforcement of consistent processes and procedures throughout the organization and ensures that administrative units can easily share information and communicate with one another. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

ccl

102. A relational database can share information across multiple tables or files, which allows the same information to exist in multiple files simultaneously. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

103. Big data is the integration of digitized data from multiple sources and in multiple formats, including structured and unstructured data. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Big Data QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

104. Big data represents the integration and analysis of many different types of data from a wide variety of data sources. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Big Data QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

105. Artificial intelligence in general refers to the ability of a piece of software to learn. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Big Data QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

106. A software-based ability to demonstrate learning and decision making is referred to as knowledge management. a.

True b.

False ANSWER: False RATIONALE: (artificial intelligence) POINTS: 1 REFERENCES: Big Data QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

107. Big data and artificial intelligence present new questions for HR professionals around data security, individual privacy issues, and ethics. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Big Data QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

108. HR metrics and workforce analytics applications address the challenge of getting business intelligence for strategic decision making. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

109. HR metrics comprises the applications and technologies for gathering, storing, analyzing, and providing access to data to help users make better business decisions. a.

True b.

False ANSWER: False RATIONALE: (business intelligence) POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

110. HR metrics are summary measures of HR outcomes that are relevant to the performance of the HR function. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

111. An example of HR metrics includes the cost of recruitment, time-to-hire, and turnover rate. a.

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b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

112. One of the uses of workforce analytics includes predicting the probable success of a candidate. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

113. One of the uses of workforce analytics includes identifying and quantifying the physical workplace risks to employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

114. A HR dashboard in an aggregation of useful or relevant HR metrics or performance indicators that provide a summary snapshot of performance. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

115. The purpose of dashboards is to provide managers with a quick understanding of key performance indicators in their business. a.

True b.

False ANSWER: False RATIONALE: (dashboards) POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:08 AM

116. A key performance indicator is a snapshot measure of system performance that demonstrates the success of strategy implementation in terms of cost, quality, or time. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Metrics and Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

117. Organizations need information technology systems to protect corporate data. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

118. Technology acceptance is the extent to which users intend to or actually use technology as a regular part of their job. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Other Aspects of IT for HR Planning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 119. Identify five of the most significant ways that IT is supporting HR functions in today’s workplace.

ANSWER: ∙ storing important data such as wages, and vacation and sick time ∙ transferring employee data between HR and outside payroll systems ∙ generating organizational charts ∙ posting job openings within the organization ∙ tracking labour costs POINTS: 1 REFERENCES: IT and HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

120. What are the differences between a human resources information system (HRIS) and an enterprise resource planning (ERP) solution? ccliv

ANSWER: Human resources information system (HRIS) – a comprehensive across-the-board system for HR management that includes subsystems or modules such as recruitment and selection, time and attendance management, training and development, and pension administration. It involves acquiring the best available software product that will encompass a broad range of HR functions (e.g., benefits, payroll, time and attendance, training, etc.). The system collects, stores, maintains data, and retrieves information about employees and their jobs.

Enterprise resource planning (ERP) – commercial software systems that automate and integrate many or most of a firm’s business processes. An ERP can integrate HR data with other systems in the firm (e.g., finance, logistics, production, and accounting). HR then becomes one application among others and is a subset of ERP software solutions.

POINTS: 1 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

121. What is a self-service solution? What are some of the major functions of HR self-service solutions?

ANSWER: Self-service solution – a technology platform that enables employees and managers to access and modify their data via a web browser from a desktop or centralized kiosk.

Functions of HR Self-Service Solutions: ∙ entering or modifying employee information ∙ applying for travel reimbursement ∙ enrolling in training classes ∙ enrolling in and viewing benefits ∙ viewing job openings and applying for positions in the company ∙ managers can access employee information for those they supervise ∙ recording turnover and absenteeism data POINTS: 1 REFERENCES: New Service Delivery Models QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

122. Define and provide an example of how enterprise portals provide solutions for and improve human resource planning.

ANSWER: Enterprise portals are knowledge communities that allow employees from a single or multiple companies to access and benefit from specialized knowledge associated with business tasks.

Enterprise portals are one of many IT tools that allow efficient access to relevant content and applications. HR portals are sophisticated websites that are designed to communicate a range of human resources information and a variety of organizational resources. They provide a single site for employees to access HR services. They are, in a sense, HR’s front door as they offer a web-based access point to all information sources, tools, and systems needed to consume HR services effectively. Employees can access the portal to share information and collaborate more effectively with customers, partners, and suppliers using a secure infrastructure. The portal might also allow employees to sign up for direct deposit or view their time cards. Employees may also gain access to a knowledge repository and e-HR functions.

POINTS: 10 REFERENCES: New Service Delivery Models QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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123. Increasing usage of mobile technology has created an apps culture for some organizations, with industry sources predicting a doubling of usage among HR professionals. Discuss and provide an example of one app that provides solutions for and improves human resource planning.

ANSWER: In some instances HR departments are offering apps for HR that include obtaining and sharing legal information and benefits. While recruiting heads the list of HR mobile apps, experts predict that tracking time and attendance and payroll will dominate over the next years. Some new apps that are becoming popular include: • People search applications: This mobile app allows recruiters to mine social media to pull information from Twitter, Facebook etc. about candidates.

• Benefits administration: This app allows employees to request vacation time, track their use of benefits, and submit claims.

• Talent management: The app allows managers and employees to view current skills, job histories, and succession plans as well as get data on open positions, head counts, turnover, and other HR planning metrics.

POINTS: 10 REFERENCES: New Service Delivery Models QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

124. Organizations go through various stages as they decide to use technology to help manage the workforce. List the stages of HR technology adoption. Provide an example of one stage.

ANSWER: Stage 1: At this initial phase, companies simply codify employee data such as name, job, compensation, etc.

Stage 2: The basic data is supplemented by data pulled from other sources, such as performance ratings and training outcomes.

Stage 3: In this stage, employees are given access to their data and can update or edit their profiles. They can also access career trajectories and indicate their career preferences.

Stage 4: This is the data mining stage, where organizations use statistics, such as turnover data by occupation, to predict employee behaviour and link it to organizational outcomes.

POINTS: 10 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

125. Define how enterprise resource planning (ERP) provides solutions for and improves human resource planning.

Describe one benefit and one challenge for HR in implementing ERP applications.

ANSWER: Enterprise resource planning (ERP) solutions are based on software systems that automate and integrate data from diverse applications into a common database such as many or most of a firm’s business processes. The fullest range of organizational activities can include finance, logistics, production, accounting, and HRM. ERP computer systems are used by large corporations around the world, adopted with the aim of achieving substantial cost savings and improved access to “tried and tested” solutions, new releases, and an opportunity to update procedures and align them with the so-called “best practices.”

The ERP approach promotes the use of a single, shared relational database for critical information across the organization. This fosters the enforcement of consistent processes and procedures throughout the organization and ensures that administrative units can easily share information and communicate with one another. For HR, the enterprise-wide solution provides a platform for a better integration of HR and finance in the management of payroll.

When HR finds it difficult to obtain budget approval for investments in an HRIS solution, the enterprise-wide solution offers an opportunity for automation along with other administrative functions. HR professionals may also gain credibility as a result of their effective involvement in an ERP implementation. The ERP approach, however, is often quite costly with a lengthy implementation, as it involves significant organizational and contextual change. HR may get sidelined in the process of integrating a whole range of functions across the organization. Also, because ERP systems are built with “generic users” in mind, they may not be well adapted to the specific practices and cclvi

requirements of the HR user group in any given company. This may create tensions regarding the organization’s unique identity.

POINTS: 10 REFERENCES: Different Solutions for Different Needs QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 126. When attempting to assess an organization’s readiness for Big data, the five pillars of Big data give some indication of the resources required to extract value from the investment required to collect, store, and analyze Big data. Define Big data and describe one of the pillars (or attributes).

ANSWER: Big data is the integration of digitized data from multiple sources and in multiple formats, including structured and unstructured data. The five pillars refer to the attributes of volume, velocity, variety, veracity, and value. ∙ Volume. The volume of data that organizations can collect today is staggering. As people’s choices and preferences become issues of public record through social media, and as the Internet of things proliferates, making the usage of many common everyday items measurable, the volume of data available for capture is rapidly expanding. The first resource requirement for organizations considering trying to make use of Big data is having the capacity to store the potentially overwhelming volume of data. ∙ Velocity. This refers to the requirement to be able to transfer large amounts of data in a reasonable period of time. It might be possible to warehouse large amounts of video data, but if they cannot be accessed and searched in a reasonable period of time, it becomes increasingly difficult to integrate those data into any kind of analysis or to combine them with other data in a meaningful manner. ∙ Variety. Big data can come in many formats, as suggested by the possible types of unstructured data. Organizations must have the ability to deal with a wide variety of data types to make the most use of Big data. ∙ Veracity. As the variety and volume of data increase, the old saying garbage in, garbage out becomes even more relevant. When considering the way that unstructured data might be error prone (for example, the metadata might be incorrect for photo files, or object recognition from video files might be error prone), and the reduced ability to verify the accuracy of external data, the potential for error in the data leading to incorrect inferences from the data becomes greater, and the ability to detect and reduce those errors becomes more difficult. ∙ Value. With the ability to capture data from so many sources, how do organizations determine what data is of value and what to ignore? More valuable data can be given greater attention so that it is gathered with less error. This is one area where artificial intelligence can help to determine how data can be arranged and analyzed, and consequently what data is more useful.

The five pillars demonstrate that harnessing the power of Big data presents significant challenges and a large investment of knowledge, skills, and technological capital. Given the large increase in the uncertainty of the accuracy of unstructured and external data as well as the complexities of making associations among these disparate forms of data, the use of artificial intelligence to manage these tasks has become an important aspect of using Big data.

POINTS: 10 REFERENCES: Big Data QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

127. Define HR analytics. List three uses of workforce analytics.

ANSWER: HR metrics and workforce analytics applications address the challenge of getting business intelligence for strategic decision making. HR analytics has been defined as an HR practice enabled by information technology that uses descriptive, visual, and statistical analyses of data related to HR processes, human capital, organizational performance, and external economic benchmarks to establish business impact and enable data-driven decision making.

Some uses of workforce analytics are: • Predicting the probable success of a candidate.

• Identifying and quantifying physical risks to employees. richard@qwconsultancy.com

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• Identifying workforce characteristics that contribute to fraud.

• Measuring employee engagement and predicting turnover.

• Identifying obsolete departments and or positions.

POINTS: 10 REFERENCES: HR Metrics and Workforce Analytics QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

Nova Scotia Social Services Nova Scotia Social Services (NSSS) provides support services to families in need. After 32 round-table discussions, a new provincial strategic plan was developed. A decision was made to reduce the number of assistant directors throughout the province. As part of the strategic planning process, NSSS learned that 40 percent of its social workers are between the ages of 55 and 65 years, and 10 percent are over 65 years. The HR planners do not know exactly when these older social workers will decide to retire, but they assume that a large number of this baby boom cohort will be retiring over the next one to five years. Recruitment of social workers is becoming increasingly competitive.

One strategy developed by the Board Planning Committee is to make NSSS an employer of choice. As part of the strategic planning process, the Board Planning Committee decided to begin using information technology solutions for HR planning.

128. Refer to Scenario: Nova Scotia Social Services. Throughout your case incident analysis, assume the role of a human resources consultant. Your task is to advise the organization on how it should align its strategic human resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the causes of the problem/opportunity, identify solutions, and recommend a plan for implementation and justification. Please be specific about the approaches and methods you would recommend to facilitate the adoption, implementation, and evaluation of workforce planning information technology.

ANSWER: Refer to the various sections in Chapter 8, “Information Technology for HR Planning.”

NARR: Nova Scotia POINTS: 10 REFERENCES: Various Sections in Chapter 8, “Information Technology for HR Planning” QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic PREFACE NAME: Nova Scotia NOTES: scenario developed and written by Catherine Fitzgerald, 2018 DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 1/18/2019 9:12 AM

1. An organization’s change initiative is characterized by change in the organization’s culture and in the attitudes and values of its employees. The goal is to reduce costs and enhance quality. Which type of change initiative is this? a. downsizing b. systematic change c. restructuring d. mergers ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Why is Organizational Change Important?

QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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2. In order to lead change, researchers suggest that HR professionals should be able to identify the activities, outcomes, and human capital necessary for a business to succeed in its market. What is this HR competency? a. strategic positioner b. credible activist c. paradox navigator d. communicator e. systems thinker ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

3. Organizational change occurs in response to multiple level developments. Retail stores are providing online shopping in response to the growing number of customers that are increasingly shopping and purchasing products online. What level of development are these retail stores attempting to adapt to? a. individual level b. societal level c. industrial level d. firm level ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial, and Organizational Levels of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

4. Economic and environmental issues are strong drivers of organizational change. What level of change are these drivers? a. industry level b. organization level c. society level d. economic level ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial and Organizational Levels of Change KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. What term best defines an organizational system that receives inputs from its external environment? a. environmental system b. strategic system c. open system d. integrated system ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Models of Organizational Change KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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6. When an organization attempts to solve a problem using a single strategy, without examining the validity of the problem itself, what type of learning is occurring? a. organizational learning b. open -system learning c. single-loop learning d. double-loop learning ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

7. In order to lead change, researchers suggest that HR professionals must be able to understand and work from different points of view, and different mental models. What is this HR competency? a. strategic positioner b. communicator c. paradox navigator d. systems thinker ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

8. What type of feedback would a technology company use to determine the number of laptops to produce? a. negative feedback b. performance feedback c. production feedback d. positive feedback ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

9. Shareholders might demand a different strategic direction for a business forcing change. What level of change is occurring? a. industrial-level developments b. firm-level developments c. economic-level developments d. societal-level developments ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial and Organizational Levels of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

10. Organizational change occurs in response to three levels of developments. What are these three levels? a. employee, supervisory and management b. individual, group, and organizational c. societal, industrial, and organizational d. leadership, group, and individual ANSWER: c cclx

POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial and Organizational Levels of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

11. What type of learning occurs when managers and employees examine and question their tacit assumptions around their decision making? a. organizational learning b. open-system learning c. double-loop learning d. single-loop learning ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. Many change models recognize that the change process comprises several critical periods of change. What is the first period? a. diagnosing what is needed for organizational change b. planning and preparing for the change c. identifying the need for change and ensuring buy-in from all stakeholders d. continuously managing and sustaining the change ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Generic Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

13. What is the most difficult stage in the change process? a. diagnosing what needs to change b. c. planning and preparing for change d.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Generic Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

recognizing the need for change implementing and sustaining the change

14. Once the need for change has been identified, what would be the next step in the change process? a. to plan and prepare for change b. to implement the change c. to sustain the change d. to motivate the workforce ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Generic Model of Change richard@qwconsultancy.com

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

15. In order to lead change, researchers suggest that HR professionals must be trustworthy partners to the business in helping to understand how to solve business challenges. What is this HR competency? a. systems thinker b. strategic positioner c. credible activist d. paradox navigator ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

16. Which of the following elements comprise organizational learning? a. personal mastery and mental models b. shared vision and action learning c. team learning and organizational-level learning d. systems thinking and sense of urgency ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Organizational Learning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

17. Which of the following pairs of elements defines a learning organization? a. action learning and mental models b. shared vision and personal mastery c. team learning and organizational learning d. systems thinking and psychological safety ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Organizational Learning QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 18. Which element of a learning organization helps individual workers’ knowledge structures to navigate the information in their work environment? a. personal mastery b. mental models c. shared vision d. systems thinking ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Organizational Learning KEYWORD: QUESTION TYPE: Multiple Choice cclxii

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

19. Which element of a learning organization combines individual ideas and team efforts to arrive at something that could not have been achieved by the individual on his or her own? a. team learning b. mental models c. shared vision d. systems thinking ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Organizational Learning KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

20. Which element of organizational learning views change issues within the framework of the entire organization? a. shared vision b. systems thinking c. team learning d. mental models ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Organizational Learning KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 21. Once the organization’s need for change has been identified and has the buy-in from all stakeholders, what is the next step in the change process? a. reviewing the need for change b. diagnosing what needs to change c. planning and preparing for change d. implementing and sustaining the change ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Generic Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. A change initiative is undertaken to improve organizational efficiency, productivity, and/or competitiveness. This affects the size of the firm’s workforce, its costs, and its work processes. Which type of change initiative is this? a. outsourcing b. acquisitions c. downsizing d. restructuring ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Why is Organizational Change Important?

QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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23. From which point of view does an open-system perspective view the organization? a. from the point of view of an individual subsystem and its interaction with its environment b. from the point of view of groups of subsystems and their interaction with their environment c. from the point of view of the organization as a whole and its interaction with its environment d. from the point of view of the organization’s departments and their interaction with their environment ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

24. In order to lead change, researchers suggest that HR professionals must be able to understand all aspects of the business, including what customers value about the firm’s products or services. What is this HR competency? a. credible activist b. communicator c. strategic positioner d. systems thinker ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

25. As people turn increasingly to online shopping, the big-box stores are becoming less relevant to shoppers. Bigbox retailers are now developing smaller versions of their stores in an attempt to adapt to these changes. What level of change are the big-box retailers responding to? a. economic-level developments b. societal-level developments c. industrial-level developments d. firm-level developments ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial and Organizational Levels of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

26. What type of feedback would a small restaurant use to determine whether it has met its goals? a. performance feedback b. productivity feedback c. negative feedback d. positive feedback ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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27. Which type of learning can prevent a learner from developing an understanding of underlying or root issues of a workplace problem? a. single-loop learning b. open-system learning c. organizational learning d. double-loop learning ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

28. Organizational change has occurred in a company in response to new leadership directives and different strategic plans. What level of development is creating this change? a. industrial level b. firm level c. individual level d. societal level ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Societal, Industrial, and Organizational Levels of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. There are three basic models that form the basis of most models of change. What are the three models? a. planned change, emergent change, and cultural change b. generic change, planned change, and emergent change c. generic change, planned change, and cultural change d. innovative change, emergent change, and cultural change ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

30. Which type of learning is typified by encouraging participation in decision making and open expression of conflicting views, using valid information and widespread and open testing of evaluations? a. systems thinking b. double-loop learning c. single-loop learning d. team learning ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

31. What type of learning occurs when managers and employees examine the assumptions they used to arrive at a point of view? richard@qwconsultancy.com

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a. organizational learning b. double-loop learning c. single-loop learning d. open-system learning ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Models of Organizational Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 32. Once the organization’s need for change has been identified, has the buy-in from all stakeholders, and has implemented the change, what is the final step in the change process? a. reviewing the need for change b. sustaining the change c. planning future change d. diagnosing past and future change ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Generic Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. What term best defines a framework for analyzing a problem that seeks to identify all the relevant factors and stakeholders that are acting to either sustain the current state or to move away from the current state? a. action research b. organizational analysis c. force-field analysis d. stakeholder analysis ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Planned Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

34. Which of the following is one of the main benefits of action research? a. it identifies the problems and action planning around methods of enhancing change b. each of the successive steps taken to implement change is based on input from stakeholders and uses information from prior steps c. to establishes new norms and modes of behaviour that are likely to reinforce the change that has taken place d. each of the successive steps taken to implement change is based on enhancing the driving forces and reducing the restraining forces ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Planned Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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35. In managing change, individuals and groups must develop a sense of pressure to change in order to overcome resistance and to move away from current behaviours and toward new learning and new behaviours. What stage of the unfreezing process is this? a. disconfirmation of the validity of the status quo b. inducing survival anxiety c. creating psychological safety d. reliability of the status quo ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Planned Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. In managing change, stakeholders must be convinced that the current modes of behaviour and way of doing things are no longer successful paths to achieving goals. What stage in the unfreezing process is this? a. disconfirmation of the validity of the status quo b. inducing survival anxiety c. creating psychological safety d. reliability of the status quo ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Planned Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

37. Change management interventions such as providing a strong organizational vision, consistent systems and structures, training, role models, and support groups can unfreeze people’s behaviours. What do these initiatives aim to achieve? a. reduced survival anxiety b. reliability of the status quo c. validity of the status quo d. psychological safety ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Planned Model of Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

38. Which of the following is common to all models of planned change? a. the assumption that action planning enhances change b. the assumption that change is a process that can be segmented into discrete and necessary steps that organizations all pass through en route to successful change c. the assumption that change is based on information from evidence-based research d. the assumption that leadership commitment and behaviours reinforce the change process ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Development of the Planned Change Approach QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

39. What two aspects are critical to organizational change efforts and foundational to the HR function in managing change? a. clarifying and communicating the policies and total reward systems b. integrating business strategy with all human resource functions training and education c. initiating and evaluating all human resource functions d. clarifying and communicating the values and organizational learning ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic HR and Change QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

40. The interconnected nature of organizational structures, processes, practices, members, and the changing environment renders the prediction of change outcomes a practical impossibility. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Why is Organizational Change Important?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

41. Research suggests that up to 70 percent of organizational change efforts fail. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Societal, Industrial, and Organizational Levels of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

42. An open system receives inputs from its internal environment and the external subsystems that interact with one another. a.

True b.

False ANSWER: False RATIONALE: (external, internal) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cclxviii

43. An open system refers to how organizational internal subsystems interact with one another. a.

True b.

False ANSWER: False RATIONALE: (and inputs from the external environment) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

44. Organizations are complex, closed systems that both influence and are influenced by their environment. a.

True b.

False ANSWER: False RATIONALE: (open systems) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. Positive feedback is the kind of information that tells whether the system is achieving its goal. a.

True b.

False ANSWER: False RATIONALE: (negative feedback) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

46. Negative feedback is the kind of information that a system uses to determine if its purpose is suited for its environment. a.

True b.

False ANSWER: False RATIONALE: (positive feedback) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

47. Positive feedback can help an organization to determine if it should be producing 1 000 scarves a week and what styles of scarves it should be producing. a.

True b.

False richard@qwconsultancy.com

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ANSWER: True POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

48. Double-loop learning involves questioning the tacit assumptions and attributions that people have around their decision making. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

49. In organizational settings, single-loop learning involves questioning the extent to which the strategy itself and the systems and structures that implement the strategy support the underlying purpose of the organization. a.

True b.

False ANSWER: False RATIONALE: (double-loop) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

50. When managers and employees examine the assumptions they have used to arrive at a point of view, they are using mental model learning that enables them to bypass the assumptions that may be locking them into a particular frame of mind. a.

True b.

False ANSWER: False RATIONALE: (double-loop) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

51. Both single-loop and double-loop learning are methods of learning that involve questioning current assumptions, examining problems from different perspectives, and questioning the validity of the problems. a.

True b.

False ANSWER: False RATIONALE: (only double-loop) POINTS: 1 REFERENCES: Models of Organizational Change cclxx

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

52. Personal mastery learning is an attempt to solve a problem using a single strategy. a.

True b.

False ANSWER: False RATIONALE: (single-loop) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

53. The most difficult stage in the change process is to achieve full buy-in from all stakeholders. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Generic Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

54. Force-field analysis is an approach to understanding and changing individual or group perceptions and behaviours by seeking to understand the interdependent forces that act on individuals or groups and that motivate them toward certain courses of action and restrain them from others. a.

True b.

False ANSWER: False RATIONALE: (Field Theory) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

55. Force-field analysis is a framework for analyzing a problem that seeks to identify all the relevant factors and stakeholders that are acting to either sustain the current state or to move away from the current state. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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56. “Unfreezing” is an initial stage in an organizational change process. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 57. “Freezing” is a stage in the change process that involves the development of a shared understanding among stakeholders that a particular change is necessary. a.

True b.

False ANSWER: False RATIONALE: (unfreezing) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 58. “Freezing” is a stage in the change process that involves a trial-and-error process of taking action to move the firm through the intended change. a.

True b.

False ANSWER: False RATIONALE: (moving) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 59. “Moving” is a stage in the change process that involves putting policies, practices, and structures in place to establish new norms around an organizational change. a.

True b.

False ANSWER: False RATIONALE: (refreezing) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

60. Organizational learning is an approach to learning that applies double-loop learning and an attempt to understand how the entire system may be affected by change. a.

True b.

False ANSWER: True cclxxii

POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

61. Personal mastery allows knowledge from any individual in the organization to become incorporated into the firm’s culture and processes. a.

True b.

False ANSWER: False RATIONALE: (organizational learning) POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 62. Mental model is the understanding of one’s purpose and the development of a personal vision. a.

True b.

False ANSWER: False RATIONALE: (personal mastery) POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

63. Organizational defensive routines can insulate an organization from examining its mental models. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

64. Systems thinking views change issues within the framework of the entire organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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65. In order to lead change, researchers suggest that HR professionals should be able to understand and work from different points of view and different mental models. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

66. In order to lead change, HR professionals should have the competency of communicator—the ability to create an environment in which employees feel that they can speak up about what is working and what needs to be improved. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Introduction QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

67. The ability to manage change is such an important organizational competency that some scholars believe it is the only form of sustainable competitive advantage. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Why is Organizational Change Important?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

68. The most important aspects of the job of a general manager include implementing change initiatives. a.

True b.

False ANSWER: False RATIONALE: (creating and directing strategy, and managing change) POINTS: 1 REFERENCES: Why is Organizational Change Important?

QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

69. Organizational change occurs in response to economic-level developments. a.

True b.

False ANSWER: False RATIONALE: (societal, industrial, and firm-level) POINTS: 1 REFERENCES: Societal, Industrial, and Organizational Levels of Change cclxxiv

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

70. Action research is typified by encouraging participation in decision making and open expression of conflicting views, using valid information, and widespread and open testing of evaluations. a.

True b.

False ANSWER: False RATIONALE: (double-loop learning) POINTS: 1 REFERENCES: Models of Organizational Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

71. Implementing change is one of the most difficult stages in the change process. a.

True b.

False ANSWER: False RATIONALE: (recognizing the need for change) POINTS: 1 REFERENCES: The Generic Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

72. The first step in force-field analysis is to describe the future state. a.

True b.

False ANSWER: False RATIONALE: (current state) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

73. Lewin believed that organizational change could be achieved only by changing behaviours at the individual level. a.

True b.

False ANSWER: False RATIONALE: (group level) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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74. According to Lewin, efforts focused on changing individual behaviours alone would be insufficient to bring about effective and sustainable change. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

75. One of the main benefits of action research is that each of the successive steps taken to implement change is based on input from stakeholders and uses information from prior steps. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

76. The generic model of change is an iterative trial-and-error process of discovery that involves diagnosing a problem, planning a solution, acting on the solution, evaluating the results of the actions, learning from the outcomes, and asking new questions. a.

True b.

False ANSWER: False RATIONALE: (action research) POINTS: 1 REFERENCES: The Planned Model of Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

77. Chaos theory refers to the idea that complex systems are based on some form of order but can behave in unpredictable ways. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Emergent Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

78. Senge suggests that our primary tasks in complex human systems are to become more reflective on the reasoning that guides our actions and to gradually improve our theories in use. a.

True b.

False ANSWER: True cclxxvi

POINTS: 1 REFERENCES: Organizational Learning QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

79. Change efforts should be guided by a set of established values, and all change involves new learning. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic HR and Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 80. Clarifying and communicating the organization’s values and building a culture of learning are the two critical areas for the HR function in managing change. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic HR and Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

81. The two areas of HRM that are critical to implementing strategic change are leadership and vision. a.

True b.

False ANSWER: False RATIONALE: (organizational learning and clarifying and communicating the values) POINTS: 1 REFERENCES: Strategic HR and Change QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

82. Organizations are complex, open systems that both influence and are influenced by their environment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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83. Both the planned and emergent approaches to change share an emphasis on the importance of learning, of having a shared sense of purpose, and of being able to adapt the change implementation as it progresses. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

84. Many change models recognize that the change process comprises several critical stages of change. List these stages of change and discuss the most difficult stage in the change process (also referred to as the generic model of change).

OR Many change models recognize that the change process comprises several critical stages of change. List these stages of change and discuss the first stage in the change process (also referred to as the generic model of change).

ANSWER: ∙ recognize the need for change ∙ diagnose what needs to change ∙ plan and prepare for change ∙ implement the change ∙ sustain the change Refer to Figure 9.1: Adaptation of Hayes’ Generic Model of Change.

Recognizing the need for change and starting the change process (getting commitment and involvement from all stakeholders) is one of the most difficult stages in the change process. Change requires not only that a need to change is identified but also that the need is broadly felt among all participants involved in the change process. Without full buy-in from all stakeholders, change efforts are likely to fail. Once the need for change has been identified, the motivation for change must be spread throughout the firm. This motivation can come in the form of incentives tied to organizational goals that are aligned to the desired outcomes of the change, or in the form of a highinvolvement/high-commitment strategy that aligns employee values with organizational values. Successful change initiatives tend to involve management and employees in the process of discovering the problems and developing the solutions, as this inclusive style tends to promote a shared understanding of the issues.

POINTS: 10 REFERENCES: The Generic Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

85. The generic change model recognizes that the change process comprises several critical periods of change. Using an example, discuss one of these periods of change.

ANSWER: ∙ recognize the need for change ∙ diagnose what needs to change ∙ plan and prepare for change ∙ implement the change ∙ sustain the change Refer to Figure 9.1, Adaptation of Hayes’ Generic Model of Change.

One example is the period of sustaining the organization’s change. Once change has been implemented, steps must be taken to ensure that the organization does not slip back into its pre-change mode. While new methods or processes can be put into place, these methods will likely not endure if they do not fit with the firm’s culture or if they are not incorporated into existing mental models of how things work within the organization. For example, despite the potential benefits of merging to both Daimler and Chrysler in terms of expected market development and resource sharing, and despite all the systems put in place to merge these two firms, the inattention to integrating the cultures of these two very different firms ultimately led to one of the most notable merger failures in the auto industry.

Sustaining change usually involves a set of measures to provide feedback to the organization that indicate when cclxxviii

goals that relate to successful change are being met, and systems that can lead to the development of adaptations when those goals are not being met.

POINTS: 10 REFERENCES: The Generic Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

86. Identify an organization you are familiar with (such as from your work experience or from the course textbook).

As the HRM responsible for moving the organization through an organizational change, what steps would you follow?

ANSWER: Identify the Problem – Starting with the firm’s strategy and the activities that implement the strategy, identify the problem. Double-loop learning and the principles of a learning organization will facilitate the identification of the primary issues. Once the problem has been identified and clearly expressed, the need for change must be spread throughout the organization.

Unfreezing – There must be widespread understanding of the need for change and an associated path that moves toward a solution. This stage of the change process is difficult because of the many challenges in bringing about a mutually held belief in the need for, and direction of, change. A force-field analysis based on the problem that has been identified is an excellent tool to identify the factors that may be leading to resistance to change and the factors that can help to leverage movement toward the intended change. At this point in the process, change leaders must use their political and persuasive skills to ensure that as many stakeholders as possible agree that the status quo is no longer acceptable and to develop a shared vision of the firm’s future. HR practices must be monitored for the extent to which they align with the change and adjusted to move the culture away from the status quo and toward the change.

Moving – The principles of emergent change and a learning organization are apparent in the moving stage. Moving toward the new direction is fraught with uncertainty and the high risk of unanticipated consequences. Changes to policies, work activities, and organization structures should be associated with short-term goals, so that stakeholders can understand when change is moving in the intended direction and celebrate these small victories. An organization that empowers its employees to act autonomously, that can effectively communicate its strategic intentions around change, and that can challenge its existing mental models will be more likely to demonstrate emergence in this stage of change. This means that employees will be able to adapt spontaneously to the requirement to implement effective change based on their understanding of what needs to be done.

Refreezing – After change has been implemented, the new state must be reinforced, or the organization will likely revert to its pre-change state. To balance the driving and stabilizing forces around the new status quo, HR practices, employee tasks, organizational structure, or other organizational policies must be put into place and monitored for success. For example, an organization that has moved from a focus on production efficiency to more of a customerfocused perspective could measure the extent to which a customer service climate is developing among employees and the extent to which customer satisfaction is changing, while at the same time monitoring production efficiency.

POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

87. What is the purpose of force-field analysis in the change management process?

ANSWER: The purpose of force-field analysis is to analyze a condition and to plan corrective actions. Refer to Figure 9.3, which shows that the analysis therefore begins with a statement of the current state or condition and a statement of the desired future state or condition. The analysis then attempts to plot the forces that are supporting or driving toward the future state as well as the forces that are restraining the future state from being put into action. A force-field analysis is an important first step in a change plan. It helps organizations to identify issues by requiring change planners to first identify a future desired state rather than to focus solely on existing problems. It also helps planners to identify suitable courses of action to initiate a change implementation.

Refer to Figure 9.3: Force-Field Analysis. richard@qwconsultancy.com

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POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

88. Discuss the two uses of force-field analysis and their benefits to the change management process.

ANSWER: Force-field analysis can be used as a problem-solving tool as well as a change management tool.

Some of the benefits of a force-field analysis include the development of a strong understanding of the current situation and a clarification around how it differs from an ideal future state or situation.

POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

89. Force-field analysis can be used to decide whether a change is appropriate and, if so, what actions should be taken to move toward the new direction. List the seven steps in the force-field analysis process.

ANSWER: ∙ Describe the current state (i.e., the status quo) and why it must be changed. Ultimately this will lead to a statement of the current condition such as “team coherence is at an all-time low.” ∙ Describe the desired future state. The future condition should ultimately be described in a sentence or a few sentences such as “increase team effectiveness and communication within one year.” ∙ Identify the forces that are supporting or driving toward increasing team coherence as well as the forces that are restraining or preventing increased team coherence. Techniques that access a wide variety of stakeholder viewpoints such as surveys, brainstorming sessions, and nominal group technique might be useful to perform this step. ∙ Examine the valence of each of these forces. Which forces are the strongest, and which are the weakest? Which of these forces can be controlled or are susceptible to behavioural intervention? ∙ Develop strategies to reduce the strength of the restraining forces and strategies to amplify the driving forces. ∙ Implement the strategies developed in step five. As restraining forces are reduced in strength and number and driving forces are amplified and increased in number, behaviours should begin to shift toward the desired state. ∙ Develop strategies to stabilize the driving and restraining forces into a new state of quasi-equilibrium. How do we make this the new status quo? After using a force-field analysis, organizational planners can begin the process of moving toward the future state through a series of trial-and-error attempts to implement the strategies developed in step five to reduce the restraining forces and amplify the driving forces. After moving to the new state, planners must develop strategies to stabilize the driving and restraining forces into a new state of quasi-equilibrium in order to turn the change into the new status quo.

POINTS: 10 REFERENCES: HR Planning Notebook 9.3: Force-Field Analysis QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 90. Describe Kurt Lewin’s three-step model of planned organization change ANSWER: Kurt Lewin’s three-step model is the main component of the Planned Model of Change. The three steps of unfreezing, moving, and refreezing have become the foundation of many subsequent models of organizational change.

Unfreezing – As the initial stage of organizational change, unfreezing involves the development of a shared understanding among stakeholders that a particular change is necessary. cclxxx

Moving – As the second stage of a change process, the moving stage involves the trial-and-error process of taking action to move the firm through the intended change.

Refreezing – The third and final stage of a change initiative, refreezing, involves putting policies, practices, and structures in place to establish new norms around the change POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 91. Edgar Schein expanded on Lewin’s three-step model by suggesting that the process of unfreezing requires three conditions to unfreeze current behaviours. Describe these three conditions.

OR Describe the three conditions that will help reduce resistance to organizational change efforts.

ANSWER: ∙ Disconfirmation of the validity of the status quo: Essentially, this means that stakeholders must be convinced that the current modes of behaviour and way of doing things are no longer successful paths to achieving goals. ∙ Inducing survival anxiety: Individuals and groups must develop a sense of survival anxiety, or pressure to change, in order to overcome resistance and to move away from current behaviours and toward new learning and new behaviours. However, new learning and new behaviours carry with them learning anxiety, or the fear of failure. In the context of a force-field analysis, survival anxiety can be considered a driving force, and learning anxiety a restraining force. Therefore, moving away from the status quo would require both increasing the driving force and reducing the restraining force (learning anxiety). ∙ Creating psychological safety: Psychological safety is the belief that an individual can take certain risks and openly discuss workplace issues without fear of reprisal or threat to mental well-being. Schein recommends that psychological safety can be increased through interventions, such as providing a strong organizational vision, consistent systems and structures, training, role models, and support groups, as well as by involving the learner.

Thus, unfreezing requires that stakeholders develop the understanding that the current way of doing things is no longer acceptable, that continuing along the current path will lead to meaningful negative consequences, and that taking a risk on a new path or expressing new ways of doing things will not be judged negatively.

POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 92. Describe John Kotter’s eight-step model of change.

ANSWER: Kotter’s eight steps include: (1) establishing a sense of urgency, (2) forming a guiding coalition, (3) creating a vision, (4) communicating the vision, (5) empowering others to act on the vision, (6) planning for and creating short-term wins, (7) consolidating improvements and producing still more change, and (8) institutionalizing new approaches.

Refer to Figure 9.5.

POINTS: 10 REFERENCES: The Planned Model of Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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93. Change occurs as a form of adaptation and as a result of learning, and so the most important attributes that an organization can develop in order to promote emergent change are those of a learning organization. Define organizational learning and the five elements it comprises.

ANSWER: Organizational learning is one of the most important attributes necessary to bring about emergent change. Organizational learning is an approach to learning that applies double-loop learning and an attempt to understand how the entire system may be affected by change. Organizational learning allows knowledge from any individual in the organization to become incorporated into the firm’s culture and processes. The elements of organizational learning comprise (1) personal mastery, (2) mental models, (3) building a shared vision, (4) team learning, and (5) systems thinking.

POINTS: 10 REFERENCES: Emergent Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

94. In order to lead change, researchers suggest that HR professionals should possess a specific set of competencies.

Describe two of these competencies.

ANSWER: • Strategic positioner—to be able to identify the activities, outcomes, and human capital necessary for a business to succeed in its market.

• Credible activist—to be a trustworthy partner to the business in helping to understand how to solve business challenges.

• Paradox navigator—to be able to understand and work from different points of view, and different mental models.

For example, to be able to bring together a top-down view of competencies with a bottom-up view of KSAOs from job analysis.

• Communicator—to be able to create an environment in which employees feel that they can speak up about what is working and what needs to be improved, and believe that they can have an impact on the organization.

• Systems thinker— to be able to understand all aspects of the business, including what customers value about the firm’s products or services. This will enable the HR function to understand the interactions between all aspects of the firm so that as one aspect changes, it is possible to envision how it will affect the system as a whole.

POINTS: 10 REFERENCES: Introduction QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

95. Define double-loop learning and how this occurs in organizational settings.

ANSWER: Double-loop learning is a method of learning that involves questioning tacit assumptions and attributions that people have around their decision making. It further involves examining a problem from different perspectives and questioning the validity of the problem.

In organizational settings, this involves questioning the extent to which the strategy itself, and the systems and structures that implement the strategy, support the underlying purpose of the organization. When managers and employees examine the assumptions they have used to arrive at a point of view, they are using double-loop learning to bypass the assumptions that may be locking them into a particular frame of mind, and preventing them from viewing the problem from a different perspective. Double-loop learning is typified by encouraging participation in decision making and open expression of conflicting views, using valid information, and widespread and open testing of evaluations.

POINTS: 10 REFERENCES: Models of Organizational Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cclxxxii

96. Two aspects are critical to organizational change efforts and foundational to the HR function. Describe these two areas, providing examples of how HRM is involved in strategic change process.

ANSWER: 1. One aspect of HRM that is critical to implementing strategic change is clarifying and communicating the values that are central to the organization and the need for the change. When TD Bank acquired Canada Trust Financial Services in 2000, the main messages that were made clear were that customers would immediately experience better service through longer banking hours and more access to automated banking machines, and that the new organization would do as much as possible to minimize the negative consequences to employees as a result of the acquisition. It is interesting to see that both these values flow from TD Canada Trust’s central value proposition that “banking can be this comfortable.” Part of HR’s role at TDCT during this time included developing planning initiatives to minimize the number of layoffs that are inevitable with an acquisition.

Because TDCT is a large company, these plans incorporated the redeployment of employees from areas of the firm that now contained redundancies to areas that were growing, by limiting new hires to allow for attrition to reduce a surplus of human capital, and providing severance policies that exceeded industry standards as well as outplacement training and services. An important aspect of communicating a set of organizational values is making certain that no HR practices are inconsistent with the message that is being communicated.

The HR function plays a very important role in ensuring that the need for change is understood throughout the firm.

Consistent with Lewin’s three-step model of change, senior management must communicate the need to change the status quo, and HR plays a role in demonstrating how the new state and the process for moving to that state is consistent with the firm’s values. This helps to bring about employee buy-in to the change initiative.

2. The other area of HRM that is critical to implementing strategic change is training, education, and organizational learning. The HR function is responsible for developing each of the dimensions of organizational learning. To the extent that HR fosters the five dimensions of organizational learning, it builds a culture of learning within the organization. This enhances any training that occurs within the firm, and it encourage employees to take a learning approach to daily tasks. The HR function must also thoroughly understand the new activities that are required to get the firm to the new state and to refreeze the new state. Based on these strategic activities, HR can determine the KSAOs and competencies required to perform these activities and institute training, redeployment, and hiring where appropriate. Organizational change requires a great deal of new learning, and when HR anticipates the learning needs, and has a culture in place that facilitates learning, organizational change has a better chance of success.

POINTS: 10 REFERENCES: Strategic HR and Change QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

1. According to your textbook, what is the least commonly used restructuring and organizational change tactic? a. across-the-board cuts b. eliminating tasks c. contracting out d. use of part-time employees ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

2. What time horizon is generally associated with systematic change related to downsizing and restructuring? a. immediate b. short-term c. medium-term d. long-term ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

3. What should union officials and management protect when anticipating potential downsizing and restructuring? richard@qwconsultancy.com

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a. human rights of employees b. positive labour relations programs c. wage and benefit concessions d. labour-management climate ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “New Deal” in Employment and the Psychological Contract

4. According to Pfeffer, which of the following happens first when a layoff is announced? a.

Companies lose people they don’t want to lose. b.

Morale declines and fear rises in the workplace. c.

People head for the door who have not been laid off. d.

Motivation, commitment, and job satisfaction decline.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “New Deal” in Employment and the Psychological Contract

5. Which of the following is a medium-term alternative to downsizing? a. exit incentives b. hiring freeze c. mandatory vacation d. reduced overtime ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

6. According to your textbook, what is the most common benefit provided to displaced workers? a. job referral service b. benefits continuation c. family counselling d. severance pay ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Inplacement and Outplacement Issues

7. According to a poll of almost 7,000 employees discussed in your textbook, what personal strategy would the majority of individuals implement if they heard that their company was planning layoffs? a. visit a lawyer and be aware of their legal rights b. search for a new job before the layoffs occur c. make sure that they remain invisible to the managers d. spend more time at the office and less with family ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Inplacement and Outplacement Issues

8. How do you define job insecurity? a. expectations about continuity and life employment b. overall concern about the future existence of a job c. inability to predict future employment d. understanding of negative implications of job analysis ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The “Survivors” of Downsizing cclxxxiv

9. Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing. What type of justice is associated with the fairness of a downsizing decision? a. procedural b. interactional c. distributive d. manipulative ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

10. Which of the following is a short-term strategy aimed at cutting the number of employees through programs such as attrition and early retirement? a. work redesign b. workforce reduction c. systematic change d. downsizing ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

11. What is one HR program associated with embeddedness, given that downsizing is unavoidable? a. flextime b. off-site child care c. defined-contribution plans d. severance pay ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 10.5

12. What is one challenge that managers must confront when managing in times of uncertainty and potential downsizing? a. focusing on the short term b. paying attention to middle management c. controlling the rumour mill d. taking charge and minimizing involvement ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Financial Performance and Downsizing

13. Which of the following is a short-term strategy aimed at cutting the number of employees through programs such as voluntary severance packages and layoffs or terminations? a. workforce reduction b. downsizing c. systematic change d. work redesign ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

14. If employees believe that they will be rewarded for loyal service and feel protected by job security, what type of contract do they have? a. employment contract b. psychological contract c. union contract d. long-term contract ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The “New Deal” in Employment and the Psychological Contract richard@qwconsultancy.com

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15. What organizational initiative provides a program of counselling and job search assistance for workers who have been terminated? a. ethics b. succession c. outplacement d. reintegration ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Inplacement and Outplacement Issues

16. What do you call an employee who remains with an organization after a downsizing? a. employed b. victim c. survivor d. talented ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

17. Downsizing became a huge phenomenon in the 1990s and then it waned. In which year did downsizing make a comeback? a.

2008 b.

2009 c.

2010 d.

2011 ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

18. When survivors of downsizing continue to work for an organization, there are several impacts on them personally. Which of the following is NOT an impact experienced by survivors? a. compliance with workplace safety b. negative attitudes and behaviours c. reduced performance capabilities d. lower organizational productivity ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

19. If an organization wants to achieve an effective restructuring, what is one strategy that it might implement? a. outsourcing b. rightsizing c. designing d. rationalizing ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Financial Performance and Downsizing

20. Which of the following is a medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be changed or eliminated? a. restructuring b. systematic change c. work redesign d. workforce reduction ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon cclxxxvi

21. What type of strategy requires an organization to focus on work process and to assess whether specific functions, products, and/or services should be eliminated? a. downsizing b. workforce reduction c. work redesign d. systematic change ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

22. According to your textbookbook, what is the main goal to be achieved if an organization is downsizing and restructuring with a systematic change strategy? a. competitive advantage b. environmental scanning c. scenario planning d. continuous improvement ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

23. What type of justice focuses on the interpersonal treatment employees receive during the implementation of the downsizing decision? a. procedural justice b. interactional justice c. distributive justice d. manipulative justice ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

24. What is one issue that has received little attention relative to downsizing? a. reputation for corporate social performance b. pension contributions and defined benefits c. effects on long-term profitability and debt d. employee satisfaction of survivors ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Financial Performance and Downsizing

25. What is the relationship between downsizing and workplace safety for employees? a.

Downsizing results in greater safety for employees because there are fewer employees to monitor. b.

Downsizing results in lower levels of job satisfaction, which results in lower safety motivation. c.

Downsizing results in more job insecurity, which produces more turnover and sick days. d.

Downsizing results in higher safety compliance, which produces higher productivity.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Financial Performance and Downsizing

26. What is an essential component that is necessary for senior management prior to developing a downsizing strategy? a. knowing financial indicators b. scanning the external environment c. communicating with employees d. creating a culture of trust ANSWER: d POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Moderate REFERENCES: Financial Performance and Downsizing

27. According to your textbookbook, what is the relationship between job loss and social withdrawal? a. inverse relationship b. no relationship c. negative relationship d. positive relationship ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “New Deal” in Employment and the Psychological Contract

28. In the research by Classen and Dunn, what is one of their major findings associated with job loss? a.

The risk for suicide increases with long periods of unemployment. b.

Losing a job can have positive benefits. c.

Employees are more likely to quit following a downsizing. d.

Cost-cutting is unlikely to disappear in the future.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 10.2

29. What is another term that experienced downsizers might use to describe a workforce reduction or realignment? a. reinventing b. reorganizing c. redistributing d. revectoring ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

30. Historically, what issue necessitated so much of the emphasis on downsizing today? a. organizations focused on growth b. organizations focused on the bottom line c. organizations focused on competitive advantage d. organizations focused on stock prices ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

31. Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing. What type of justice is associated with the interpersonal treatment employees receive during the implementation of the downsizing decision? a. procedural b. interactional c. distributive d. manipulative ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

32. According to your textbookbook, what is the least common benefit provided to displaced workers? a. job search support b. benefits continuation c. retraining assistance d. severance pay cclxxxviii

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Inplacement and Outplacement Issues

33. Which of the following is a short-term cost adjustment that an organization could consider to reduce costs? a. exit incentives b. extending reductions in salaries c. voluntary sabbaticals d. reduced work week ANSWER: d POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon

34. An organization is NOT taking a career management approach that would be aimed at absorbing displaced workers into other divisions of the organization. What is this organization NOT doing? a. ethical placement b. inplacement c. outplacement d. replacement ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Inplacement and Outplacement Issues

35. Perceptions of fairness and equity play a key role in understanding how survivors react to a downsizing. What type of justice is associated with the procedures or rules used to determine which employees will be downsized? a. procedural b. interactional c. distributive d. manipulative ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

36. What are three types of downsizing strategies? a. systematic change, service reduction, restructuring b. systematic change, work design, employee layoffs c. work redesign, workforce reduction, systematic change d. work redesign, bottom-line cost cutting, workforce reduction ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

37. An organization is paring back services. What type of downsizing strategy is it implementing? a. systematic change b. service reduction c. work redesign d. service cost cutting ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

38. An organization is working with senior HR planners to develop a long-term downsizing strategy that changes not only the organization’s culture and attitudes but also employees’ values. The organization’s goals are to reduce costs and enhance quality. What type of downsizing strategy is this organization developing? a. downsizing b. workforce reduction richard@qwconsultancy.com

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c. work redesign d. systematic change ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

39. Which of the following is a medium-term cost adjustment that an organization could consider to reduce costs? a. exit incentives b. hiring freeze c. mandatory vacation d. reduced overtime ANSWER: a POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon

40. An organization is implementing a downsizing strategy that requires the elimination of specific work processes and functions. What type of downsizing strategy is this organization executing? a. culture redesign b. workforce reduction c. systematic change d. work redesign ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon 41. Which of the following is a long-term strategy characterized by changing the organization’s culture and the attitudes and values of employees with the ongoing goal of reducing costs and enhancing quality? a. work redesign b. restructuring c. systematic change d. workforce reduction ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The Downsizing Phenomenon

42. What type of organizational restructuring involves changes in the mix and/or percentage makeup of the organization’s businesses? a. portfolio restructuring b. financial restructuring c. organizational restructuring d. workforce restructuring ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

43. What type of organizational restructuring involves any major reconfiguration of internal administrative structure that is associated with an intentional management change program? a. workforce restructuring b. organizational restructuring c. portfolio restructuring d. financial restructuring ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

44. There are several alternatives to downsizing available to organizations. Which of the following is a medium-term cost adjustment alternative? a. mandatory vacation b. reducing the workweek ccxc

c. voluntary sabbaticals d.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

reducing overtime

45. What type of organizational restructuring involves changes such as reducing cash flow or increasing levels of debt? a. financial restructuring b. business restructuring c. strategic restructuring d. portfolio restructuring ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

46. Several alternatives to downsizing are available to organizations faced with the challenge of cutting costs. Which of the following is a short-term cost adjustment alternative? a. extending reductions in salary b. lending employees c. exit incentives d. hiring freeze ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon

47. Jobs are being dramatically altered due to several factors such as artificial intelligence and computerization.

Which of the following is an important factor resulting from the intelligence resolution shaping the future of work? a.

The concept of a job has been fundamentally changed. b.

A declining number of employees are consultants. c.

Both humans and machines are learning faster. d.

Technological change will result in limited disruption.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Future of Work

48. What HR planning strategy refers to a career management approach aimed at reabsorbing excess or inappropriately placed workers into a restructured organization? a. inplacement b. outplacement c. mentoring d. career development ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Inplacement and Outplacement Issues

49. Several alternatives to downsizing are available to organizations faced with the challenge of cutting costs. Which of the following is a medium-term cost adjustment alternative? a. reducing salaries b. voluntary sabbaticals c. short-term facility shutdowns d. obtaining cost-reduction ideas from employees ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Downsizing Phenomenon richard@qwconsultancy.com

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50. Which of the following terms best defines the type of interpersonal treatment employees receive during the implementation of the downsizing decision? a. procedural justice b. interactional justice c. distributive justice: d. psychological contract ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

51. What HR planning strategy focuses on the provision of a program of counselling and job search assistance for workers who have been terminated? a. mentoring b. inplacement c. outplacement d. career development ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Inplacement and Outplacement Issues

52. Which of the following terms best defines the fairness of the downsizing decision? a. psychological contract b. procedural justice c. distributive justice d. interactional justice ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The “Survivors” of Downsizing

53. Which of the following terms best defines an unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service? a. distributive justice b. psychological contract c. procedural justice d. interactional justice ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The “New Deal” in Employment and the Psychological Contract

ConocoPhillips The Canadian arm of ConocoPhillips is one of Canada’s largest oil and gas exploration and production companies.

ConocoPhillips cut 1,000 jobs early in 2015 and will be eliminating around 1,810 more positions by the end of 2015 due to company losses in the millions, the result of low oil prices. The CEO stated that the company is eliminating 10 percent of its workforce this year. ConocoPhillips plans to eliminate more than 400 jobs and 100 contractors in Canada. The CEO further stated that the company needs to cut jobs to ensure that the company becomes more competitive.

ConocoPhillips is preparing for a period of lower and more volatile oil prices and has cut back its spending forecasts.

The company is also paring back its deepwater exploration and Alberta oil sands projects. ConocoPhillips shares have fallen 41 percent over the last year, reaching their lowest price in five years.

54. Refer to Scenario: ConocoPhillips. What is the main reason that ConocoPhillips is downsizing? a. restructuring of exploration work b. declining company profits c. low company share prices d. lower spending forecasts and less deep water exploration work ANSWER: b RATIONALE: NARR: ConocoPhillips ccxcii

POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

55. Refer to Scenario: ConocoPhillips. What is the key reason why ConocoPhillips continues to downsize? a. to improve its competitive position b. to cut back its deep water and Alberta oil sands exploration projects c. global financial crisis d. lower spending forecasts and less deep water exploration work ANSWER: a RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

56. Refer to Scenario: ConocoPhillips. ConocoPhillips is paring back its deep water and Alberta oil sands exploration projects and is laying off workers. What type of downsizing strategy is the company implementing? a. systematic change and operation reductions b. work redesign and workforce reduction c. work redesign and bottom line cost cutting d. systematic change and work design ANSWER: b RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

57. Refer to Scenario: ConocoPhillips. What two downsizing strategies is ConocoPhillips implementing? a. combining systematic change and workforce reduction b. combining systematic change and work redesign c. combining work redesign and workforce reduction d. combining work redesign and bottom-line cost cutting ANSWER: c RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

58. Refer to Scenario: ConocoPhillips. ConocoPhillips is implementing a downsizing strategy that requires the elimination of specific work processes and functions. What type of downsizing strategy is it adopting? a. downsizing b. workforce reduction c. work redesign d. systematic change ANSWER: c RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

richard@qwconsultancy.com

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59. Refer to Scenario: ConocoPhillips. ConocoPhillips is working with senior HR planners to develop a long-term downsizing strategy that changes not only the organization’s culture and attitudes but also employees’ values. The company’s goals are to reduce costs and enhance quality. What type of downsizing strategy is it adopting? a. culture change b. workforce reduction c. work redesign d. systematic change ANSWER: d RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

60. Refer to Scenario: ConocoPhillips. Which of the following is a short-term cost adjustment that ConocoPhillips could consider to reduce costs? a. exit incentives b. lending workers c. extending reductions in salary d. reducing overtime ANSWER: d RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

61. Refer to Scenario: ConocoPhillips. Which of the following is a medium-term cost adjustment that ConocoPhillips could consider to reduce costs? a. exit incentives b. hiring freeze c. mandatory vacation d. reducing overtime ANSWER: a RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

62. Refer to Scenario: ConocoPhillips. Which of the following is a short-term cost adjustment that ConocoPhillips is implementing to reduce costs? a. exit incentives b. exploration work shutdowns c. extending reductions in salary d. voluntary sabbaticals ANSWER: b RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

63. Refer to Scenario: ConocoPhillips. ConocoPhillips is providing job referral services and job search assistance for workers who have been terminated. What is this organizational initiative called? a. ethics b. succession c. outplacement d. reintegration ANSWER: c RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: Inplacement and Outplacement Issues NOTES: scenario developed and written by Catherine Fitzgerald, 2018 ccxciv

64. Refer to Scenario: ConocoPhillips. ConocoPhillips is NOT taking a career management approach that would be aimed at absorbing displaced workers into other divisions of the organization? What is ConocoPhillips NOT doing? a. ethical placement b. inplacement c. outplacement d. replacement ANSWER: b RATIONALE: NARR: ConocoPhillips POINTS: 1 DIFFICULTY: Difficult REFERENCES: Inplacement and Outplacement Issues NOTES: scenario developed and written by Catherine Fitzgerald, 2018

65. Offshoring occurs when an organization moves work to foreign entities outside the company. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The “Survivors” of Downsizing

66. Systematic change is a short-term strategy. a.

True b.

False ANSWER: False RATIONALE: (systematic change is a long-term strategy) POINTS: 1 REFERENCES: The Downsizing Phenomenon

67. Outplacement is providing a program of counselling and job search assistance for workers who have been terminated. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

68. Interactional justice refers to the interpersonal treatment employees receive during the implementation of the downsizing decision. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The “Survivors” of Downsizing

69. A psychological contract is a written commitment between employers and their employees that guarantees job security and rewards for loyal behaviour. a.

True b.

False ANSWER: False RATIONALE: (unwritten) POINTS: 1 REFERENCES: The “New Deal” in Employment and the Psychological Contract

richard@qwconsultancy.com

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70. A downsizing strategy seeks to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

71. There are three types of restructuring: portfolio, human capital, and organizational. a.

True b.

False ANSWER: False RATIONALE: (portfolio, financial, and organizational) POINTS: 1 REFERENCES: The Downsizing Phenomenon

72. There are three types of downsizing strategies: workforce reduction, work redesign, and systemic change. a.

True b.

False ANSWER: False RATIONALE: (systematic change) POINTS: 1 REFERENCES: The Downsizing Phenomenon

73. Many organizations are reactive to downsizing instead of proactive. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

74. Downsizing is unlikely to disappear in the future because it helps to alleviate the huge financial burdens facing many organizations. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon 75. Some researchers have found evidence that the longer a person is unemployed, the higher the person’s risk for suicide. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Planning Today 10.2

76. There is considerable evidence that workforce reduction programs ultimately achieve their objectives of cutting costs. a.

True b.

False ANSWER: False ccxcvi

RATIONALE: (ultimately fail to achieve their objectives) POINTS: 1 REFERENCES: The Downsizing Phenomenon

77. Work redesign is a short-term strategy, whereas workforce reduction is a medium-term strategy. a.

True b.

False ANSWER: False RATIONALE: (Medium-term strategy and short-term strategy, respectively) POINTS: 1 REFERENCES: The Downsizing Phenomenon

78. Outsourcing refers to the reabsorbing of excess or inappropriately placed workers into a restructured organization. a.

True b.

False ANSWER: False RATIONALE: (inplacement) POINTS: 1 REFERENCES: Inplacement and Outplacement Issues

79. Downsizing may be considered a breach of the unwritten employment contract between employers and their employees. a.

True b.

False ANSWER: False RATIONALE: (psychological contract) POINTS: 1 REFERENCES: Inplacement and Outplacement Issues

80. Inplacement provides a program of counselling and job search assistance for workers who have been terminated. a.

True b.

False ANSWER: False RATIONALE: (outplacement) POINTS: 1 REFERENCES: Inplacement and Outplacement Issues

81. Asking employees to take voluntary sabbaticals is one medium-term solution to avoid downsizing. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Planning Notebook 10.2

82. When rationalizing decisions about downsizing, many managers will rely on economic, accounting, and revenuebased rationales. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Inplacement and Outplacement Issues richard@qwconsultancy.com

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83. Distributive justice refers to the rules used to determine which employees will be downsized. a.

True b.

False ANSWER: False RATIONALE: (procedural justice) POINTS: 1 REFERENCES: The “Survivors” of Downsizing

84. Negative consequences of downsizing might be minimized with greater communication and employee participation. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

85. Research evidence indicates that downsizing creates job insecurity and low job satisfaction, which are related to greater safety compliance because employees do not wish to be hurt on the job. a.

True b.

False ANSWER: False RATIONALE: (less safety compliance) POINTS: 1 REFERENCES: Financial Performance and Downsizing 86. One issue that has received little attention is the effect of downsizing on the organization’s reputation for corporate social responsibility. a.

True b.

False ANSWER: False RATIONALE: (reputation for corporate social performance – RCSP) POINTS: 1 REFERENCES: Financial Performance and Downsizing 87. Downsizing can be linked to less innovation and more protection of one’s turf. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

88. Many downsizing efforts fall short of meeting organizational objectives, and are carried out with little strategic planning or consideration of the costs to the individuals and the employer. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

89. The research evidence suggests that downsizing creates job insecurity, which is strongly associated with low levels of safety motivation. ccxcviii

a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing 90. In today’s workplaces downsizing is a proactive strategy that gives priority to worker health over increasing organizational performance. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: Financial Performance and Downsizing

91. Downsizing is a set of activities undertaken to improve organizational efficiency, productivity, and/or competitiveness that affect the size of the firm’s workforce, its costs, and its work processes. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

92. Laying off employees is a quick, but temporary, option for workforce reduction. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

93. A downsizing strategy is a short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations. a.

True b.

False ANSWER: False RATIONALE: (workforce reduction) POINTS: 1 REFERENCES: The Downsizing Phenomenon

94. A workforce reduction strategy is to cut the number of employees through attrition, early retirement, or voluntary severance packages. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

95. A workforce reduction strategy is to cut the number of employees through layoffs and terminations. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon richard@qwconsultancy.com

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96. Downsizing can be a costly strategy for organizations to pursue, and, as a result, it is desirable to investigate whether alternatives to downsizing exist. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Downsizing Phenomenon

97. In examining the downsizing decision it is necessary to focus on outplacement issues. a.

True b.

False ANSWER: False RATIONALE: (consider both inplacement and outplacement) POINTS: 1 REFERENCES: Inplacement and Outplacement Issues KEYWORD:

98. Employees who face challenges adapting to major change are more likely to engage in unethical behaviour in the workplace a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Inplacement and Outplacement Issues KEYWORD:

99. The labour force participation rate is the highest it has been in the past decade and there is particular concern that many individuals are staying in the workforce. a.

True b.

False ANSWER: False RATIONALE: (lowest, out of the workforce) POINTS: 1 REFERENCES: Inplacement and Outplacement Issues KEYWORD:

100. There is a movement by organizations to protect a core of employees and surround that with a periphery of less permanent employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Inplacement and Outplacement Issues KEYWORD:

101. Distributive fairness is more important than procedural fairness for downsizing survivors. a.

True b.

False ANSWER: False RATIONALE: (procedural is more important than distributive) for downsizing survivors.

POINTS: 1 REFERENCES: The “Survivors” of Downsizing

102. Most downsizing efforts meet the organizational objectives. a.

True b.

False ccc

ANSWER: False RATIONALE: (fall short of meeting organizational objectives) POINTS: 1 REFERENCES: Financial Performance and Downsizing

103. Most downsizing efforts are carried out through strategic planning. a.

True b.

False ANSWER: False RATIONALE: (with little strategic planning) POINTS: 1 REFERENCES: Financial Performance and Downsizing

104. Most downsizing efforts are carried out with consideration of the costs to the individuals and the employer. a.

True b.

False ANSWER: False RATIONALE: (with little consideration) POINTS: 1 REFERENCES: Financial Performance and Downsizing

105. More often, job cuts represent a short-term reaction to a much more complex problem. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

106. While senior executives often focus on financial issues during a reorganization, the benefits of restructuring frequently fail to transpire if HR issues are not carefully thought out and resolved appropriately. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

107. Downsizing is associated with a higher quit rate. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Financial Performance and Downsizing

108. There is considerable evidence that many downsizings achieve the goals that senior management expected. a.

True b.

False ANSWER: False RATIONALE: (many downsizings fell far short of achieving) POINTS: 1 REFERENCES: Summary

richard@qwconsultancy.com

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109. Many downsizings are carried out with careful consideration on how the downsizing will affect the organization’s employees. a.

True b.

False ANSWER: False RATIONALE: (without considering) POINTS: 1 REFERENCES: Summary 110. Many downsizings are carried out with careful consideration of the organization’s strategic objectives. a.

True b.

False ANSWER: False RATIONALE: (without considering) POINTS: 1 REFERENCES: Summary 111. Define “downsizing,” and identify and describe three types of downsizing strategies.

ANSWER: Downsizing involves activities undertaken to improve organizational efficiency, productivity, and/or competitiveness by reducing the size of the firm’s workforce, the costs, and the work processes.

Three Types of Downsizing: Downsizing strategy is the strategy to improve an organization’s efficiency by reducing the workforce, redesigning the work, or changing the systems of the organization. ∙ Workforce Reduction – a short-term strategy to cut the number of employees through attrition, early retirement or voluntary severance packages, and layoffs or terminations ∙ Work Redesign – a medium-term strategy in which organizations focus on work processes and assess whether specific functions, products, and/or services should be reconfigured or changed ∙ Systematic Change –a long-term strategy that changes the organization’s culture and attitudes and values of employees with the goal of reducing costs and enhancing quality POINTS: 10 REFERENCES: The Downsizing Phenomenon

112. What are four of the reasons that organizations downsize?

ANSWER: The most common reasons for organizational downsizing include: ∙ declining profits ∙ business downturn or increased pressure from competitors ∙ merging with another organization, resulting in duplication of efforts ∙ introduction of new technology ∙ the need to reduce operating costs ∙ the desire to decrease levels of management ∙ getting rid of employee “deadwood” POINTS: 10 REFERENCES: The Downsizing Phenomenon

113. From your work experience or from your textbook, identify an organization you are familiar with that is embarking on a downsizing strategy. Describe four key issues the organization would want to consider in its HR planning.

ANSWER: Some key issues include the following: ∙ Determining how many people will lose their jobs. ∙ Determining who will be let go. For example, will the decision be made on the basis of seniority, performance, or potential? ∙ Determining how the reduction will be carried out. For example, to what extent will the organization use attrition, early retirement or voluntary severance programs, and layoffs or termination? The approaches to workforce reduction vary in terms of the degree of protection to employees and the time it takes to implement them. cccii

∙ Determining the legal consequences. For example, organizations often ignore, or are unaware of, legal requirements when downsizing the workforce. Some areas of law to consider include the law of wrongful dismissal, employment standards legislation, trade union law, existing collective agreement provisions, and human rights legislation. ∙ Designing current and future work plans. This issue represents a key challenge for the organization and is frequently neglected. ∙ Implementing the decision. Implementation includes elements such as the communication of the termination decision, the timing of the decision, security issues, severance payments, outplacement counselling, and communications with remaining employees. ∙ Performing follow-up evaluation and assessment of the downsizing efforts. Although this step is critical, it is often ignored in many organizations.

POINTS: 1 REFERENCES: Inplacement and Outplacement Issues

114. Define workforce reduction. Discuss its limitations on human resource planning.

ANSWER: Downsizing is a set of activities undertaken on the part of management and designed to improve organizational efficiency, productivity, and/or competitiveness. It represents a strategy implemented by managers that affects the size of the firm’s workforce, the costs, and the work processes. Workforce reduction is typically a short-term strategy aimed at cutting the number of employees through programs such as attrition, early retirement or voluntary severance packages, and layoffs or terminations. While a number of these approaches allow for a relatively quick reduction of the workforce, the problem is that their impact is often short term, and in many instances the organization loses valuable human resources.

POINTS: 10 REFERENCES: The Downsizing Phenomenon

115. Discuss the limitations of downsizing on human resource planning. Provide two examples of alternative HR strategies to downsizing.

ANSWER: Downsizing can be a costly strategy for organizations to pursue, and, as a result, it is desirable to investigate whether alternatives to downsizing exist. In a number of instances, organizations discover that pursuing different alternatives to downsizing may eliminate the need to reduce the workforce or allow for a less severe downsizing strategy.

Different approaches are summarized in HR Planning Notebook 10.2.

Several alternatives are available to organizations faced with the challenge of cutting costs. These include: Moderate-Term Cost Adjustments ∙ Extending reductions in salary ∙ Voluntary sabbaticals ∙ Lending employees ∙ Exit incentives Short-Term Cost Adjustments ∙ Hiring freeze ∙ Mandatory vacation ∙ Reducing the workweek ∙ Reducing overtime ∙ Reducing salaries ∙ Short-term facility shutdowns ∙ Obtaining cost-reduction ideas from employees POINTS: 10 REFERENCES: The Downsizing Phenomenon

116. Jobs are being dramatically altered due to several factors such as artificial intelligence and computerization.

Discuss two important factors resulting from the intelligence resolution shaping the future of work.

ANSWER: Several factors are presented in HR Planning Notebook 10.3.

Factors identified as shaping the future of work include the following: ∙ The concept of a job has been fundamentally changed—traditional notions of work are often not applicable in the world of work that is emerging. richard@qwconsultancy.com

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∙ Machines are learning faster than humans—machines now have the capability to learn and upgrade their skills and capabilities. ∙ New opportunities for people and machines are emerging as technologies converge—artificial intelligence, motion sensors, and advanced cameras are being integrated. ∙ Impact of technological change will result in wide and deep disruption—for instance, even fields such as law and medicine (which have historically been largely unaffected by automation) are being changed dramatically. ∙ New workforce is emerging—a growing number of employees are freelancers or consultants who are employed for a specific project and then move on to another job with a different employer.

POINTS: 10 REFERENCES: The Future of Work

117. Discuss and provide an example of two organizational HR practices that can help previously employed workers adjust to job loss and secure new employment.

ANSWER: A number of organizational practices have been identified as helping previously employed workers adjust to job loss and secure new employment. They include the following: • Advance notification of layoffs, which gives employees time to deal with the reality of job loss and seek future employment • Severance pay and extended benefits, which provide an economic safety net • Education and retraining programs, which give individuals time to acquire marketable skills • Outplacement assistance to inform employees of new job opportunities and to improve their ability to “market” themselves • Clear, direct, and empathetic announcement of layoff decisions • Consideration of HR planning practices that represent alternatives to large-scale layoffs POINTS: 10 REFERENCES: Inplacement and Outplacement Issues

118. Discuss how perceptions of fairness and equity play a key role in understanding how survivors of a downsizing react to their experience. Provide examples of the three types of justice.

ANSWER: ∙ Procedural justice: The procedures (or “decision rules”) used to determine which employees will leave or remain with the organization. ∙ Interactional justice: The type of interpersonal treatment employees receive during the implementation of the downsizing decision. ∙ Distributive justice: The fairness of the downsizing decision. For example, responses from employees may include feelings of guilt after seeing co-workers lose their jobs, support for the downsizing decision as necessary for the firm, or feelings of unfairness and concern that further layoffs may put their own job in jeopardy.

POINTS: 10 REFERENCES: The “Survivors” of Downsizing

119. Discuss whether employees will quit their job if an organization downsizes. Does investment in human resources management practices affect whether employees will quit or stay when an organization downsizes?

ANSWER: These questions were addressed in a study by Trevor and Nyberg. Among their major findings were the following: • Downsizing was associated with a higher quit rate. This finding has implications for an organization that may lose more people than desired, because the downsizing in turn impacts on the quit rate. As well, higher performers may be among those who decide to voluntarily leave the organization.

• Higher quits are frequently associated with negative consequences, compounding the negative effect of the downsizing. The authors found that if just 1 percent of the workforce is downsized, post-downsizing voluntary turnover rates increase by about 31 percent.

• If downsizing is unavoidable, adopting practices such as job embeddedness (e.g., flextime, on-site child care, and defined-benefit plans) and procedural justice prior to the downsizing may reduce the consequences of downsizing resulting from higher voluntary turnover, induce the least valuable employees to leave, and encourage the most valuable employees to stay.

POINTS: 10 REFERENCES: Financial Performance and Downsizing

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120. A number of studies have pointed out downsizing strategies and practices that do not work. Discuss two best practices that may reduce the negative impact of downsizing.

OR Discuss one effective and one ineffective HR downsizing approach.

ANSWER: Cameron, Freeman, and Mishra developed a list of six best practices in downsizing firms: ∙ Downsizing should be initiated from the top but requires hands-on involvement from all employees. ∙ Workforce reduction must be selective in application and long term in emphasis. ∙ Special attention should be paid both to those who lose their jobs and to the survivors who remain with the organization. ∙ Decision makers should identify precisely where redundancies, excess costs, and inefficiencies exist and attack those specific areas. ∙ Downsizing should result in the formation of small, semi-autonomous organizations within the broader organization. ∙ Downsizing must be a proactive strategy focused on increasing performance.

Although the importance of communication is widely acknowledged, it appears that communication during downsizing is particularly difficult because of the negative effect on the informal communication networks in an organization. It is important to (1) attend to rumours, (2) provide survivors with available information on the downsizing, (3) ensure that survivors are aware of the new organizational goals, (4) make expectations clear, (5) tell survivors that they are valued, and (6) allow time for grieving.

POINTS: 10 REFERENCES: Financial Performance and Downsizing

121. Human resources experts have a considerable role to play in downsizing and restructuring. Discuss two of their roles.

ANSWER: • Advising on restructuring the organization (work groups, teams, departments, and so on) to maximize productivity and retain quality performers.

• Developing skill inventories and planning charts to evaluate the impact of a downsizing on HR needs and projected capabilities.

• Communicating the downsizing decision effectively.

• Evaluating the downsizing program after completion. This includes an assessment of who left the organization and who remains. Some key issues include job design and redesign, worker adjustment to change, the need for employee counselling, organizational communication, and a review of the appropriateness of HRM policies and programs (training, compensation and benefits, orientation of employees into the “new” organization, etc.).

POINTS: 10 REFERENCES: The “New Deal” in Employment and the Psychological Contract

ConocoPhillips The Canadian arm of ConocoPhillips is one of Canada’s largest oil and gas exploration and production companies.

ConocoPhillips cut 1,000 jobs early in 2015 and will be eliminating around 1,810 more positions by the end of 2015 due to company losses in the millions, the result of low oil prices. The CEO stated that the company is eliminating 10 percent of its workforce this year. ConocoPhillips plans to eliminate more than 400 jobs and 100 contractors in Canada. The CEO further stated that the company needs to cut jobs to ensure that the company becomes more competitive.

ConocoPhillips is preparing for a period of lower and more volatile oil prices and has cut back its spending forecasts.

The company is also paring back its deepwater exploration and Alberta oil sands projects. ConocoPhillips shares have fallen 41 percent over the last year, reaching their lowest price in five years.

122.

ANSWER: ∙ Reduced job satisfaction, organizational commitment, safety compliance, retention, morale, performance, productivity ∙ Ιncreased turnover, absenteeism, theft and sabotage, uncertainty, job instability ∙ Deteriorating organizational climate and culture ∙ Impact of negative employees on clients and customers ∙ Ιnability of organizations to reliably cut costs ∙ Inability of reduction programs to meet objectives ∙ Ηigher potential of incidents of depression and suicide ∙ Εrosion of community fabric socially and financially richard@qwconsultancy.com

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∙ Short-term reaction to a long-term, complex problem—not proactive ∙ Stimulates the loss of good employees in anticipation of further downsizing ∙ Μajority of downsized individuals would never work for the downsized company ever again ∙ Violation of the psychological contract ∙ Job loss can lead to greater social withdrawal, even with one incident ∙ Unions suffer if there are perceptions of injustice ∙ Union–management relations suffer because there are so many negative outcomes NARR: ConocoPhillips POINTS: 10 REFERENCES: The “Survivors” of Downsizing and Financial Performance and Downsizing NOTES: scenario developed and written by Catherine Fitzgerald, 2018

123. Refer to Scenario: ConocoPhillips. Throughout your case incident analysis, assume the role of a human resources consultant. Your task is to advise the organization on how it should align its strategic human resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the causes of the problem/opportunity, identify solutions, and recommend a plan for implementation and justification. Please be specific about the approaches and methods you would recommend to facilitate the workforce downsizing process.

ANSWER: Some key issues ConocoPhillips would want to consider in their HR planning and downsizing strategy include the following: ∙ Determining how many people will lose their jobs. ∙ Determining who will be let go. For example, will the decision be made on the basis of seniority, performance, or potential? ∙ Determining how the reduction will be carried out. For example, to what extent will the organization use attrition, early retirement or voluntary severance programs, and layoffs or termination? The approaches to workforce reduction vary in terms of the degree of protection to employees and the time it takes to implement them. ∙ Determining the legal consequences. For example, organizations often ignore or are unaware of legal requirements when downsizing the workforce. Some areas of law to consider include the law of wrongful dismissal, employment standards legislation, trade union law, existing collective agreement provisions, and human rights legislation. ∙ Designing current and future work plans. This issue represents a key challenge for the organization and is frequently neglected. ∙ Implementing the decision. Implementation includes elements such as the communication of the termination decision, the timing of the decision, security issues, severance payments, outplacement counselling, and communications with remaining employees. ∙ Performing follow-up evaluation and assessment of the downsizing efforts. Although this step is critical, it is often ignored in many organizations.

NARR: ConocoPhillips POINTS: 1 REFERENCES: The Downsizing Phenomenon NOTES: scenario developed and written by Catherine Fitzgerald, 2018

124.

ANSWER: The most common benefits are severance pay, continuation of employee benefits, outplacement counselling, and an extended notice period. A minority of firms provided retraining assistance or family counselling.

Refer to Figure 10.2: Benefits to Displaced Workers.

NARR: ConocoPhillips POINTS: 1 REFERENCES: Inplacement and Outplacement Issues NOTES: scenario developed and written by Catherine Fitzgerald, 2018

125. Refer to Scenario: ConocoPhillips. Discuss four organizational interventions that ConocoPhillips can adopt to help previously employed workers adjust to job loss and secure new employment ANSWER: A number of organizational interventions have been identified as helping previously employed workers adjust to job loss and secure new employment. They include the following: ∙ advance notification of layoffs, which gives employees time to deal with the reality of job loss and seek future employment cccvi

∙ severance pay and extended benefits, which provide an economic safety net ∙ education and retraining programs, which give individuals time to acquire marketable skills ∙ outplacement assistance to inform employees of new job opportunities and to improve their ability to “market” themselves ∙ clear, direct, and empathetic announcement of layoff decisions ∙ consideration of HR planning practices that represent alternatives to large-scale layoffs NARR: ConocoPhillips POINTS: 10 REFERENCES: Inplacement and Outplacement Issues NOTES: scenario developed and written by Catherine Fitzgerald, 2018

1. Which strategy has French lodging giant ACCOR followed for its U.S. subsidiaries in order to attract and retain local employees? a. global IHRM strategy b. integrative IHRM strategy c. exportive IHRM strategy d. adaptive IHRM strategy ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 2. Canada’s workforce diversity produces a wide range of HR-related challenges for international placements. Which of the following is typical of those challenges? a. increased number of younger workers b. employees with disabilities c. cultural assimilation in the new country d. family and divorce issues for expatriates ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

3. If a company introduces culturally sensitive products in chosen countries with the least amount of cost, what type of strategy is the company adopting? a. multinational b. multidomestic c. global d. domestic ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

4. What do you call individuals from the subsidiary country who know the foreign cultural environment well? a. home-country nationals b. third-country nationals c. parent-country nationals d. host-country nationals ANSWER: a richard@qwconsultancy.com

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POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. When an individual returns to his or her home headquarters or home subsidiaries after working in a foreign country, what is this process called? a. enculturation b. repatriation c. culture shock d. alienation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Post-assignment Activities QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

6. If an individual has an ability to acquire certain skills to a desired level of performance, what is this capability called? a. pliability b. flexibility c. trainability d. adaptability ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

7. When an individual moves to a foreign country to work, the individual may experience an overwhelming sense of alienation from the new culture. What is this experience called? a. depression b. culture shock c. ethnocentrism d. post-traumatic stress ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Post-assignment Activities QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

8. What expatriate training step clarifies the purpose and goals of training that are relevant and applicable to global managers’ daily activities? a. training contents b. training approaches c. training design d. training planning ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Pre-assignment training cccviii

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

9. What best defines the capability of an international employee to substitute sources of reinforcement when necessary and deal with alienation and isolation? a. perceptual competencies b. relationship competencies c. self-maintenance competencies d. leadership competencies ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

10. What type of strategy concentrates on the development of foreign markets by selling to foreign nationals? a. multidomestic b. domestic c. multinational d. global ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

11. According to a Canadian survey, what is the greatest major challenge that management faces with international relocation? a. family and tax issues b. dual-income spouses c. terrorism and security d. hardship allowances ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Post-assignment Activities QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. What best defines the capability of an international employee to develop and maintain relationships with homecountry nationals? a. perceptual competencies b. relationship competencies c. self-maintenance competencies d. problem solving competencies ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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13. What is one benefit of cross-cultural training? a. self-development b. self-monitoring c. self-sacrifice d. self-adjustment ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

14. What is the main reason that companies have NOT benefited from expatriate training? a.

Expatriates have had their training needs evaluated and assessed. b.

Expatriates have clarified their purpose and goals of training. c.

Expatriates are selected too quickly and receive little training. d.

Expatriates have had training programs designed to meet their needs.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

15. What are the three international training approaches promoted by your textbook? a. case studies, lecture-based briefings, vicarious learning b. information giving, behavioural modelling, experiential forms of training c. role-playing, field experiences, sensitivity training d. culture assimilators, on-the-job, area studies ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 16. What are individuals called who are from headquarters and are highly familiar with the firm’s products and services, as well as with its corporate culture? a. host-country nationals b. home-country nationals c. third-country nationals d. parent-country nationals ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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17. If a company is looking for a strategy that would create the highest internal fit, which International Human Resources Management (“IHRM”) approach should be chosen? a. exportive IHRM approach b. adaptive IHRM approach c. integrative IHRM approach d. global IHRM approach ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

18. What type of strategy deals with internationalization by exporting goods abroad as a means of seeking new markets? a. multidomestic b. domestic c. multinational d. global ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

19. What did Colgate-Palmolive Co. do to capitalize on its expatriate skills? a.

It created a global succession-planning database. b.

It developed cross-cultural training for critical incidents. c.

It committed funds to improve failed expatriate assignments. d.

It improved its pre-assignment and post-assignment communication.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Post-assignment Activities QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 20. Which class of workers is NOT involved in Canada’s union structure? a. industrial b. craft c. conglomerate d. professional ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Labour Relations QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

21. In 2013, which country(s) had some of the highest unionization rates in the world? a.

Canada b.

Germany c.

Scandinavian countries d.

European countries richard@qwconsultancy.com

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ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Labour Relations QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. What expatriate training step assesses and evaluates the needs of training for every selected potential global manager? a. training contents b. training approaches c. training planning d. training evaluation ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Pre-assignment training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

23. In general, why have levels of union density declined throughout the world? a.

Unions do not represent all interests in a global society. b.

Politicization of unions has been linked to local governments. c.

Union organizations have been decentralized and fragmented. d.

Union power has been eroded, and negative public sentiment towards unions has increased.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Labour Relations QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

24. What is one advantage of increased use of third-country nationals? a.

They are well versed in a company’s needs and norms. b.

They are familiar with the parent-country culture. c.

They have greater familiarity with the host-country culture. d.

They are familiar with a company’s corporate culture.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

25. What is one of the internal factors with which international HR planning must fit? a. local economy b. host-country culture c. competitors’ strategies d. existing HR system ANSWER: d POINTS: 1 cccxii

DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

26. The many factors related to international employee cross-cultural adjustment can be categorized into three dimensions of cross-cultural competencies. Which of the following is one of these dimensions? a. leadership competencies b. organization competencies c. perceptual competencies d. time management competencies ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

27. Which dimension of cross-cultural competencies refers to the ability to substitute sources of reinforcement when necessary and deal with alienation and isolation? a. relationship competencies b. self-maintenance competencies c. perceptual competencies d. stress management competencies ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

28. Which type of training plays a crucial role in the pre-assignment process for an expatriate? a. field experiences b. behavioural modelling c. management training d. cross-cultural training ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment Training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. Which of the following is NOT considered to be a symptom of reverse culture shock? a. increased levels of anxiety about the adjustment to returning home b. increased satisfaction with the standard of living upon returning home c. decreased interest from co-workers in hearing about the repatriate’s experiences d. decreased use of the repatriate’s international knowledge, skills, and abilities (KSAs) upon returning home ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Post-assignment Activities richard@qwconsultancy.com

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

30. In the multidomestic stage of internationalization, what single perspective is a trademark of this stage? a. ethnocentric perspective b. polycentric perspective c. geocentric perspective d. egocentric perspective ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

31. What is one disadvantage of increased use of home-country nationals? a. lack of knowledge of the corporate culture b. limited familiarity with the firm’s own operations c. potential unfamiliarity with the cultural norms of the host country d. lack of knowledge of the parent-country’s culture ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

32. Which of the following is a key challenge influencing HR practices within an international context? a. increased number of younger workers b. employment legislation c. cultural assimilation in the new country d. family and divorce issues for expatriates ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. Which of the following is a key challenge influencing HR practices within an international context? a. domestic strategy b. cultural assimilation in the new country c. security d. family and divorce issues for expatriates ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cccxiv

34. What do you call a company’s employees who are natives of a country other than those in which the company’s headquarters and its subsidiaries are situated? a. home-country nationals b. third-country nationals c. parent-country nationals d. host-country nationals ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

35. What is one advantage of increased use of home-country nationals? a.

They are well versed in a company’s needs and norms. b.

They are familiar with the parent-country culture. c.

They have greater familiarity with the host-country culture. d.

They require lower relocation costs.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. What is one disadvantage of increased use of parent-country nationals? a. lack of knowledge of the corporate culture b. potential unfamiliarity with the cultural norms of the host country c. limited familiarity with the firm’s own operations d. limited cross-cultural preparation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 37. What type of strategy results in the standardization around the world of an organization’s products and services in order to gain efficiency? a. multidomestic b. domestic c. global d. multinational ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: ANS: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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38. What is one advantage of increased use of parent-country nationals? a.

They are well versed in a company’s needs and norms. b.

They are familiar with the host-country culture. c.

They have greater familiarity with the host-country’s management practices. d.

They require lower relocation costs.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

39. What is one disadvantage of increased use of third-country nationals? a. lack of knowledge of the corporate culture b. limited familiarity with the firm’s own operations c. potential unfamiliarity with the cultural norms of the host country d. lack of understanding of the subsidiary’s needs ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

40. If a company looks for a strategy that combines home HR practices with local practices and selects the most qualified people for the appropriate positions, which international human resources management (“IHRM”) approach should it choose? a. integrative IHRM approach b. adaptive IHRM approach c. exportive IHRM approach d. global IHRM approach ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

41. Which of the following is a key challenge for managers in their overseas assignments, and a critical HR aspect in the internationalization of Canadian companies and their employees? a. entering new markets b. political challenges c. struggling to fit in d. financial challenges ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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42. HR managers face a number of challenges related to workforce diversity when their organizations expand across national borders. Which of the following is NOT typical of these challenges? a. accommodation of an increased number of older workers b. diverse gender identities c. ethnic and cultural differences among employees d. family and divorce issues for expatriates ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

43. Expatriate employee security produces a wide range of HR-related challenges for international placements.

Which of the following is a HR support structure in the area of international employee safety? a. environmental assessments b. organizational needs assessment c. risk assessment processes d. legislative reviews ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

44. Which of the following is NOT an HR support structure that seeks to ensure that employees and their families deployed in dangerous parts of the world always return home safely? a. precautionary actions and procedures b. environmental assessments c. contingency planning d. risk assessments ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. Which of the following has been rated by multinational corporations as the most critical goal of international HRM? a. compensating and rewarding managers who are competent to represent the company in a global arena b. training and developing managers who are competent to represent the company in a global arena c. attracting and retaining managers who are competent to represent the company in a global arena d. orienting managers who are competent to represent the company in a global arena ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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46. An organization is projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish global competence pools within companies. What is the organization undertaking? a. international strategic management b. strategic international HR planning c. strategic HR management d. international strategic planning ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

47. What best defines the human resources management issues, functions, policies, and practices that result from the strategic goals and activities of multinational enterprises? a. international strategic planning b. strategic international HR planning c. strategic international HR management d. international strategic management ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

48. An organization is internationalizing by exporting goods abroad as a means of seeking new markets. What strategy is the organization following? a. domestic strategy b. multidomestic strategy c. global strategy d. multinational strategy ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 49. An organization’s strategy is to concentrate on the development of foreign markets by selling to foreign nationals. What strategy is the organization following? a. global strategy b. multinational strategy c. domestic strategy d. multidomestic strategy ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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50. An organization has implemented HRM systems for its foreign subsidiaries that are consistent with the local economic, political, and legal environment. What approach is the organization using? a. exportive IHRM approach b. integrative IHRM approach c. strategic IHRM approach d. adaptive IHRM approach ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

51. HR managers face a number of challenges related to employment legislation when their organizations expand across national borders. Which of the following is typical of those challenges? a. diverse gender identities b. employment policies and processes c. ethnic and cultural differences among employees d. conducting risk assessments ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 52. An organization’s strategy is to standardize its products and services around the world to gain efficiency. What strategy is the organization adopting? a. global strategy b. multinational strategy c. domestic strategy d. multidomestic strategy ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 53. Following an organization’s multinational business strategy, it’s HR systems are standardized across its subsidiaries all over the world. What approach is the organization adopting? a. integrative IHRM approach b. exportive IHRM approach c. adaptive IHRM approach d. functional IHRM approach ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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54. An organization has reduced transaction costs, ensured the consistency of its corporate policies all over the world, and gained control over its subsidiaries. What approach has the organization adopted? a. global IHRM approach b. exportive IHRM approach c. adaptive IHRM approach d. integrative IHRM approach ANSWER: b POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

55. An organization is adopting a strategy that introduces culturally sensitive products with the least amount of cost.

What strategy is the organization adopting? a. domestic strategy b. multidomestic strategy c. global strategy d. multinational strategy ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

56. Which of the following is a type of international assignment where the employee may make frequent trips to the host country but does not relocate to that country? a. short-term assignment b. international commuters c. frequent flyers d. flexible assignment ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

57. An organization is combining home HR practices with local practices and selecting the most qualified people for the appropriate positions no matter where these candidates come from. What approach has the organization adopted? a. exportive IHRM approach b. adaptive IHRM approach c. integrative IHRM approach d. broad IHRM approach ANSWER: c POINTS: 1 DIFFICULTY: Difficult REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

58. Which of the following is a type of international assignment where the employee is relocated for a period of time, usually in excess of a year? a. international commuters b. expatriate cccxx

c. short-term assignment d.

Moderate-term assignment ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

59. What is the first major challenge in forecasting the demand for labour in an international setting? a. developing an understanding of the culture b. developing an understanding of the labour market c. developing an understanding of the people practices d. developing an understanding of the HR policies ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

60. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Which of the following is NOT one of these areas? a. understanding local labour market data b. issues relating to external human capital demand and supply c. the existing market d. flexible labour practices.

ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

61. Which of the following is a type of international assignment where the employee works in the host country, but continues to live in the home country? a. international commuters b. frequent flyers c. short-term assignment d. flexible assignment ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

62. Which of the following is NOT a skill related to cross-cultural adjustment? a. leadership skills b. stress-management skills c. conflict resolution skills d. communication skills richard@qwconsultancy.com

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ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

63. Which of the following is a factor related to cross-cultural adjustment? a. negotiation skills b. leadership skills c. cultural knowledge d. intuitive skills ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

64. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Which of the following is one of these areas? a. issues relating to internal human capital demand and supply b. the workplace and workforce c. understanding and interpreting local labour market data d.

HR policies and procedures ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

65. Which of the following is a factor related to cross-cultural adjustment? a. negotiation skills b. stress-management skills c. change management skills d. problem solving ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

66. The many factors related to international employee cross-cultural adjustment can be categorized into three dimensions of cross-cultural competencies. Which of the following is one of these dimensions? a. problem-solving competencies b. decision-making competencies c. change management competencies d. self-maintenance competencies ANSWER: d POINTS: 1 DIFFICULTY: Easy cccxxii

REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

67. The many factors related to international employee cross-cultural adjustment can be categorized into three dimensions of cross-cultural competencies. Which of the following is one of these dimensions? a. organization competencies b. relationship competencies c. problem-solving competencies d. change management competencies ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

68. What best defines the capacity of an international employee to understand why foreigners behave the way they do, to make correct attributions about the reasons or causes of HCNs’ behaviour, and to correct those attributions when they prove incorrect? a. perceptual competencies b. relationship competencies c. self-maintenance competencies d. problem-solving competencies ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: International Recruitment and Selection QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

69. What expatriate training step has been found to be the best way to help employees gain global competence? a. off-the-job training b. practical training c. on-the-job training d. project training ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Pre-assignment training QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

70. An organization rotates potential global managers through its various foreign businesses, allowing the managers to gain experience in different cultures and acquire the skills, ability, and knowledge to lead anywhere in the world.

What is this training called? a. on-the-job training b. off-the-job training c. mentoring d. project training ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Pre-assignment training QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

71. Which of the following HR practices will minimize the negative consequences of reverse cultural shock upon repatriation for global managers? a. mentoring b. coaching c. career development d. training ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Post-assignment Activities QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

72. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Which of the following is one of these areas? a. understanding the HR policies and practices b. issues relating to external human capital demand and supply c. the organization and industry d. labour relations practices ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

73. When entering new markets, organizations are confronted with a wide range of challenges mostly related to socioeconomic, political, and technological aspects. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

74. An adaptive IHRM approach does not focus on local laws. a.

True b.

False ANSWER: False RATIONALE: (does) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cccxxiv

75. A multinational strategy involves having unique products and services for each geographical area where the company has outlets across the globe. a.

True b.

False ANSWER: False RATIONALE: (standardized globally) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

76. A multidomestic strategy is a strategy that concentrates on the development of foreign markets by selling to foreign nationals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

77. To maintain security in foreign countries, it is important for Canadian organizations to establish close relationships with embassies, consultants, chambers of commerce, and high commissions. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

78. If management wants to adopt a global strategy for the organization, this would involve introducing culturally sensitive products in chosen countries with the least amount of cost. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

79. Parent-country nationals are individuals from the subsidiary country who know the foreign cultural environment well. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (home-country nationals) POINTS: 1 REFERENCES: International Recruitment and Selection KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 80. Trainability refers to an individual’s ability to acquire certain skills to a desired level of performance. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

81. When an individual moves to a foreign country to work, the individual may experience repatriation, which refers to the overwhelming sense of alienation with the new culture. a.

True b.

False ANSWER: False RATIONALE: (culture shock) POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

82. Most organizations involved in international operations do not have well-developed repatriation processes for their expatriate employees. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

83. Projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish global competence pools within companies is referred to as strategic international HRM. a.

True b.

False ANSWER: False RATIONALE: (strategic international HR planning) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False cccxxvi

DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

84. A multinational strategy concentrates on the development of foreign markets by selling to foreign nationals. a.

True b.

False ANSWER: False RATIONALE: (multidomestic strategy) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

85. When an individual leaves his or her home country to work in a foreign country, this individual is considered a repatriate. a.

True b.

False ANSWER: False RATIONALE: (expatriate) POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

86. Cross-cultural training for global managers and their accompanying relatives plays a crucial role in the postassignment process common to IHRM. a.

True b.

False ANSWER: False RATIONALE: (pre-assignment) POINTS: 1 REFERENCES: Pre-assignment Training QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

87. There is a global trend of union density decrease. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Labour Relations QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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88. Strategic international HR planning is defined as human resource management issues, functions, and policies and practices that result from the strategic activities of multinational enterprises and that impact the international concerns and goals of those enterprises. a.

True b.

False ANSWER: False RATIONALE: (Strategic international HRM) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

89. In general, there are two categories of international assignments: strategic control and transfer of knowledge and skills. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

90. The exportive IHRM approach transfers home HRM systems to foreign subsidiaries without modifying or adapting to the local environment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

91. The adaptive IHRM approach has the highest internal fit. a.

True b.

False ANSWER: False RATIONALE: (highest external fit) POINTS: 1 REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

92. Antecedent factors of cross-cultural adjustment include items such as cultural knowledge, stress-management skills, and psychological flexibility. a.

True b.

False ANSWER: False cccxxviii

RATIONALE: (cognitive flexibility not psychological flexibility) POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 93. The Four Seasons’ “Golden Rule” was not successfully implemented in its other locations outside North America because it was culturally sensitive and value-laden. a.

True b.

False ANSWER: False RATIONALE: (Golden Rule was the key to Four Seasons’ success) POINTS: 1 REFERENCES: HR Planning Today 11.4 QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

94. The category of assignment intended to retain the culture, structure, and decision processes of the home-country firm is referred to as strategic control. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

95. Many authors believe that there are three areas of competencies that are necessary for cross-cultural adjustment: self-maintenance, relationship, and perceptual. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

96. Perceptual competencies refer to the capacity to understand why foreigners behave the way they do and to make correct attributions about the reasons for their behavior. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

97. An integrative IHRM approach combines home HR practices with local practices. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

98. A multidomestic strategy promotes a price-sensitive perspective with limited emphasis on cultural differences. a.

True b.

False ANSWER: False RATIONALE: (multinational strategy) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

99. Companies adopting a global strategy strive to adopt HRM systems for foreign subsidiaries that are consistent with the local economic, political, and legal environment. a.

True b.

False ANSWER: False RATIONALE: (Adaptive IHRM approach) POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 100. “Transfer of knowledge and skills” is a category for international assignments defined as bringing the necessary skills to the host-country firm. a.

True b.

False ANSWER: False RATIONALE: (“Strategic control”) POINTS: 1 REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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101. The first major challenge in forecasting the HR demand in an international setting is to develop an understanding of the labour market. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

102. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Understanding and interpreting local labour market data is one of these areas. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

103. Deciding where to locate a business in a foreign country is determined by the availability of the necessary resources and the proximity to customers. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 104. Labour is often 40 to 50 percent of a firm’s operating costs and, as such, is one of the largest resources to consider in international HR planning decisions. a.

True b.

False ANSWER: False RATIONALE: (40 percent to 80 percent) POINTS: 1 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

105. Parent-country nationals may be unfamiliar with the cultural norms of the host country. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection richard@qwconsultancy.com

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

106. Conflict resolution skills have been identified as a factor relating to successful cross-cultural adjustment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

107. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Understanding the industries and culture are two of these areas. a.

True b.

False ANSWER: False RATIONALE: (understanding the environment and flexible labour practices) POINTS: 1 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

108. Aware of the negative consequences of reverse cultural shock, companies pay close attention to the return of their expatriate employees. a.

True b.

False ANSWER: False RATIONALE: (pay little attention) POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

109. Leadership skills have been identified as a factor relating to successful cross-cultural adjustment. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

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110. Relationship competencies refer to the capability of international employees to substitute sources of reinforcement when necessary and deal with alienation and isolation. a.

True b.

False ANSWER: False RATIONALE: (Self-maintenance competencies) POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

111. Stress-management skills have been identified as a factor relating to successful cross-cultural adjustment. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

112. Perceptual competencies refer to the capability of international employees to develop and maintain relationships with home-country nationals. a.

True b.

False ANSWER: False RATIONALE: (Relationship competencies) POINTS: 1 REFERENCES: International Recruitment and Selection QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

113. Cross-cultural and language training increases assignment success. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Pre-assignment Training QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

114. Career planning and development for global managers will minimize the negative consequences of repatriation. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

115. Aware of the negative consequences of reverse cultural shock, organizations have well-developed repatriation processes for their international assignees. a.

True b.

False ANSWER: False RATIONALE: (do not have) POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 116. SIHRM practices and issues should be implemented in line with the firm’s strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

117. What are three of the key challenges facing strategic international HRM? ANSWER: Workforce Diversity: ∙ Integration and accommodation of an increased number of older workers and employees with disabilities, gender issues, and aspects related to ethnic and cultural differences among employees; ∙ The complexity of workforce diversity will grow with each foreign market Canadian organizations decide to enter; ∙ IHRM systems must consider and accommodate the needs of an increasingly diverse labour force and tailor international HR policies and practices accordingly.

Employment Legislation: ∙ HR managers are faced with a complex legislation framework; ∙ When crossing national borders, Canadian HR managers encounter additional, host-country employment legislation.

The Role of the HR Function: ∙ HR departments are often understaffed, underfunded, and limited to a supporting role with little key decisionmaking power; ∙ Employment legislation, socioeconomic, and technological differences in local markets demand sophisticated IHRM systems; ∙ The increased complexity of the HR function requires HR managers to redefine their role and outsource some of their responsibilities to specialists and consultants (e.g., international employment lawyers).

Flexibility: ∙ Defined as the firm’s ability to respond to various demands from a dynamic, competitive environment; ∙ Advanced IHRM systems can obtain a high level of fit and flexibility by developing a strategic approach toward the management of international workforces.

Security: cccxxxiv

∙ Business environments are becoming increasingly unsafe, and so it is important to consider the security of employees overseas; ∙ SIHRM policies should include risk assessments, precautions, safety procedures, contingency plans for employees and their families; ∙ Establishing relationships with Canadian government representatives, such as embassies, chambers of commerce, consulates, high commissions, etc., is essential; ∙ Knowledge of the local laws is also reinforced here.

POINTS: 10 REFERENCES: Key Challenges Influencing HR Practices and Processes Within an International Context QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

118. Define strategic international human resources planning and strategic international human resources management.

ANSWER: Strategic international HR planning involves projecting global competence supply, forecasting global competence needs, and developing a blueprint to establish competence pools within companies.

Strategic international HR management encompasses human resource issues, functions, and policies and practices that result from the strategic activities of multinational enterprises and that affect the international concerns and goals of these enterprises.

POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

119. Identify and briefly explain the three different approaches to SIHRM. ANSWER: Adaptive HRM Approach: ∙ Local cultural, political, and legal issues will be considered and local HR practices will be adopted; ∙ A local executive is usually hired to take care of the subsidiaries’ HR management; ∙ The local manager is familiar with the local issues, and there is no language barrier between the HR manager, local partners, and employees; ∙ Hiring a local manager can also guarantee the consistency of HR practices with the local legal system and the environment; ∙ The disadvantage is that the local manager does not know the company’s culture as well.

Exportive IHRM Approach: ∙ Multinational corporations will have standardized HR systems across their subsidiaries all over the world; ∙ Transaction costs are reduced, corporate policies are consistent, and control over subsidiaries is maintained; ∙ Advantage is that the HR managers at headquarters have a “tried and true” HR system and can readily implement it at subsidiaries across the world; ∙ Disadvantage is that the local environment will not have been considered in the HR system and the fit with the local system will be missing.

Integrative IHRM Approach: ∙ Combines home HR practices with local practices; ∙ The best HR policies and practices will be chosen for foreign subsidiaries; ∙ Context-free HR practices will be transferred to subsidiaries; ∙ Decision making regarding HR policies and practices will be jointly in the hands of headquarters and foreign subsidiaries; ∙ HR managers in the headquarters must have a geocentric or global perspective, be culturally sensitive, and be able to move HR resources strategically around the subsidiaries and headquarters. richard@qwconsultancy.com

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POINTS: 1 REFERENCES: Strategic International Human Resources Management QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 120. What is cross-cultural training (“CCT”)? What are the benefits of CCT? What are the five steps that must be planned and implemented to ensure successful training?

ANSWER: Cross-cultural training is the orientation and training provided to those individuals selected by a multinational corporation to work internationally. Some of the primary benefits of CCT are: ∙ CCT positively influences the potential success of the expatriate ∙ Training helps with adjustment and effectiveness of expatriate managers ∙ Strategic HR planning is needed for training to focus on the development of global competencies Training should emphasize five points: ∙ assess and evaluate the needs of training for expatriates ∙ clarify the purpose and goals of the training that are relevant to the participants’ daily activities ∙ plan and design the training programs to meet training goals ∙ implement the training plan ∙ use several techniques to increase the effectiveness of the training POINTS: 1 REFERENCES: Pre-assignment Training QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

121. What is repatriation? What are some of the issues facing repatriates?

ANSWER: Repatriation occurs when the PCNs, TCNs, or even the HCNs return to their home headquarters or home subsidiaries after the completion of their assignment. “Reverse culture shock” is often experienced upon return from an international assignment. Some common consequences when people repatriate are: ∙ Increased levels of anxiety about the adjustment “back home”; ∙ Dissatisfaction with the standard of living upon returning home; ∙ Co-workers may not be interested in hearing about the repatriate’s experiences; ∙ The repatriate’s job does not make as much use of the repatriate’s international KSAs as it could; ∙ There is a high rate of turnover among repatriates; ∙ Although there is considerable evidence of need, companies continue to have poorly developed repatriation strategies and pay little attention to their returning expatriates.

POINTS: 1 REFERENCES: Post-assignment Activities QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

122. Discuss one advantage and one disadvantage of the use of home-country nationals, parent-country nationals, and third-country nationals.

ANSWER: Refer to HR Notebook | 11.1: Strategic Advantages and Disadvantages of Key Recruitment Options.

POINTS: 10 cccxxxvi

REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

123. Discuss three factors that enhance cross-cultural adjustment.

ANSWER: Many different antecedent factors of cross-cultural adjustment have been identified in the literature. These include cultural knowledge, stress-management skills, conflict resolution skills, communication skills, and cognitive flexibility. Several authors suggest that there are three dimensions of cross-cultural competencies: ∙ self-maintenance competencies, which refer to the ability to substitute sources of reinforcement when necessary and deal with alienation and isolation ∙ relationship competencies, which refer to the ability to develop and maintain relationships with home-country nationals (“HCNs”) ∙ perceptual competencies, which refer to the capacity to understand why foreigners behave the way they do, to make correct attributions about the reasons or causes of HCNs’ behaviour, and to correct those attributions when they prove incorrect.

POINTS: 1 REFERENCES: Key International Recruitment and Selection QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

124. Partly because of the costs and risks associated with long-term international assignments to employees and organizations, many different forms of international assignments have emerged, based on the duration of time spent away from the home country. Discuss two types of international employment arrangements and the HR considerations.

ANSWER: The following types of arrangements represent a continuum that ranges from frequent visitors to the host-country location to becoming a permanent employee in the host location. ∙ Frequent Flyers. This type of assignment is for the employee who takes more than the occasional business trip.

While the employee may make frequent trips to the host country, he or she does not relocate to that country. ∙ International Commuters. International commuters work in the host country but continue to live in the home country. Rather than uprooting the entire family, these commuters travel on a weekly or multi-day basis, and travel home for the weekend or for longer periods of time off work. Frequent flyers and international commuters comprise a substantial portion of international travellers. ∙ Short-Term Assignment. This type of assignment describes any relocation assignment lasting less than a year. The employee lives in the host country, and may or may not bring her or his family for the duration of the assignment. ∙ Expatriate Assignment. This is one of the more familiar forms of international assignment, where the employee is relocated for a period of time usually in excess of a year. Because of the long-term nature of the assignment, employees are usually accompanied by their spouse and children, and plan to work in the host country for three to five years. These types of long-term assignments are becoming less popular, as companies appear to be replacing assignments lasting more than one year with shorter-term assignments lasting six months or less. ∙ Permanent Transfer. The final type of international assignment is when the employee is permanently moved from the home country to the host country.

When planning for the demand and supply of employees for global operations, organizations and the HR function must balance the costs with the strategic requirement for home-country employees to be present in the new location, as well as the duration over which to situate employees in the new location. Long-term assignments can become much more costly to the organization than short-term assignments or local hires. The HR function must also consider the local supply of human capital when expanding internationally, as the costs associated with relocating an adequate supply of skilled human capital may become prohibitive.

POINTS: 10 richard@qwconsultancy.com

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REFERENCES: Key HR Practices and Processes Within an International Context QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

125. The Conference Board of Canada has identified four major areas of focus for workforce planning in an international context. Discuss one of these areas and the implications and challenges for HR planning. Provide an example.

ANSWER: The four major areas are understanding and interpreting local labour market data, issues relating to external human capital demand and supply, the environment, and flexible labour practices.

1. Labour Market Data. With the proliferation of data and its increased availability, it is tempting for planners to make inferences about foreign labour markets by seeking out data sources to confirm whether or not the local labour market can support the firm’s operational needs. Organizations such as Gapminder and the International Labour Organization that collect data and make it available to consumers for little or no cost can be incredibly valuable resources. Many governments also collect and report labour market information. The Canadian Government collects data about the Canadian workforce in general and produces reports that relate to labour supply and demand broken down by industry, job skill levels, age categories, identified groups, and many other attributes of the workforce that may be relevant to employers. For more detailed analyses, the Federal Government produces the National Occupation Classification, which is a listing of jobs, analyzed using Functional Job Analysis, that contains the major duties and tasks of most of the benchmark jobs that comprise the Canadian economy. Governments produce these types of analyses to help foreign and domestic businesses, as well as the countries’ citizens to understand where issues of demand and supply are leading to gaps or surpluses, and to make policies to ensure a strong labour market.

A reliance on foreign government labour statistics can be problematic for business planning, as the assumptions around how data is collected, what jobs are included in job categories, what skills levels represent in terms of applicable skills, or other grouping assumptions could lead to costly mistakes in forecast estimates of human capital demand or supply. Governments may also be interested in encouraging foreign investment, and may therefore be biased toward presenting their country’s labour market to the rest of the world in the most favourable manner possible. As a result, the safest strategy for making determinations about foreign labour markets is to use several sources of information, examine the assumptions used to compile the data, make use of trusted networks that have experience in the foreign market, and send a company representative to get first-hand experience with the industry and the labour pool.

2. External Human Capital Demand and Supply. Assumptions made about the labour market can mean the difference between business success and failure. If a company assumes that it can access adequate numbers of employees with certain technical skills, but finds that those skills are not actually available in the location that the company decides to place its offices, it might have to incur unexpected costs to help draw applicants from further afield. It might even be the case that the necessary technical skills are simply not available in the new location. Some of the manufacturing firms in Mississauga, Ontario, found that it was becoming increasingly difficult to find job applicants, and that many of the applicants who wished to work at the firms were coming from the nearby city of Brampton.

However, public transit between Brampton and Mississauga was not at all convenient, and these companies began running shuttle buses to facilitate transit. These sorts of issues can present unexpected and significant problems in an international context. Some of these issues can be addressed through an expatriate strategy, where the firm brings in the necessary human capital, and those employees train newly hired local employees and model the firm’s desired culture. The mix of home- and host-country employees will be determined by the balance between the strategic needs of the firm, the availability of host-country human capital, and the costs associated with providing homecountry employees when host-country human capital is not available.

3. The Environment. Deciding where to locate a business in a foreign country is determined by the availability of the necessary resources and the proximity to customers. Because labour is often 40 percent to 80 percent of a firm’s operating costs, it is one of the largest resources to consider in this decision. The tools used to perform strategic analysis come in useful for this type of decision as well. The PESTDL analysis is a variation of SWOT, in which planners consider the strengths, weakness, opportunities, and threats that are presented to the organization through the local political, economic, social, technological, demographic, and legal/regulatory environment, and how these environmental issues can affect how the management of human capital may be different between the home country and the host country.

4. Flexible Labour Strategies. Flexible labour strategies include the types of working relationships that the firm can have with its employees, such as telecommuting, flexible work hours, job sharing, part-time, contract, and other arrangements. These types of strategies can provide increased work opportunities to job applicants who may not be cccxxxviii

able to take on full-time, centrally located employment. These arrangements also provide the firm with increased operating leverage by allowing the firm to shed some of its labour force when revenues are lower, and increase the size of its labour force when revenues are higher. Local labour regulations and customs can have an impact on the types of flexible arrangements that firms can make use of, and so the full range of possible local options should be explored and understood before incorporating them into HR practices.

POINTS: 10 REFERENCES: International Human Capital Demand and Supply QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

126. Selecting the right candidates for global assignments is crucial for the long-term success of both the MNC and the individual managers. Discuss two factors relating to successful cross-cultural adjustment.

ANSWER: The factors relating to successful cross-cultural adjustment include cultural knowledge, stress-management skills, conflict resolution skills, communication skills, and cognitive flexibility.

Several authors have simplified this list into the following three dimensions of cross-cultural competencies: • Self-maintenance competencies, which refer to the capability to substitute sources of reinforcement when necessary and deal with alienation and isolation • Relationship competencies, which refer to the capability to develop and maintain relationships with home-country nationals (HCNs) • Perceptual competencies, which refer to the capacity to understand why foreigners behave the way they do, to make correct attributions about the reasons or causes of HCNs’ behaviour, and to correct those attributions when they prove incorrect POINTS: 10 REFERENCES: International Recruitment and Selection QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

127. The researchers found that effective expatriate training should emphasize five points. List these five points.

Discuss and provide an example of one.

ANSWER: 1. Assess and evaluate the needs of training for expatriates.

2. Clarify the purpose and goals of training that are relevant and applicable to participants’ daily activities.

3. Plan and design the training programs to meet training goals.

4. Implement the training plan.

5. Use several techniques to increase the effectiveness of training programs.

POINTS: 10 REFERENCES: Pre-assignment Training QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

128. There are four steps that guide effective expatriate training. Discuss one step and its importance to effective training.

ANSWER: 1. Training planning: Assess and evaluate the needs of training for every selected potential global manager. Clarify the purpose and goals of training that are relevant and applicable to global managers’ daily activities. Plan and design the training programs to meet training goals. richard@qwconsultancy.com

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2. Training contents: Training can cover many areas depending on the needs of individual managers, ranging from technical training and managerial training to interpersonal skills training and cultural training. Typically, cultural training involves the following aspects: (1) area studies programs that include environmental briefings and cultural orientations; (2) culture assimilators—essentially multiple-choice questions about cultural characteristics; (3) language training; (4) sensitivity training (which could include role-playing exercises and behavioural modelling videos designed to raise awareness of cultural differences in behaviour); and (5) field experiences, such as visits to the restaurants of the target nationality or actual visits to the host country itself. These cultural training activities are not only useful for the global managers but also helpful for their spouses and children.

3. Training approaches: Several training approaches have been used in reality, ranging from (1) an informationgiving approach (such as lecture-based area briefings), to (2) behavioural modelling videos or case studies that offer vicarious learning, to (3) the most experiential forms (e.g., training based on role-playing and immersion in the form of field experiences). These three methods should be encompassed in the training plan according to the training needs. An information-giving approach will increase the knowledge competency of the global managers; the other two approaches will increase the trainees’ other skills, such as interpersonal and analytical skills. All methods will be effective if they are planned properly to meet the training needs of the global managers, but the experiential methods are usually considered more “rigorous” (i.e., as having a greater degree of trainee involvement).

4. Treating the international assignment as on-the-job training: Global experience has been found to be the best way to help employees gain global competence. For example, rotating potential global managers through various foreign businesses allows them to gain experience in different cultures and acquire the skills, ability, and knowledge to lead anywhere in the world. This requires, however, mentoring at the host-country site.

POINTS: 10 REFERENCES: Pre-assignment Training QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

1. Who are the two parties involved in a vertical merger? a. buyer and supplier b. two competitors c. management and employees d. shareholders and executives ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

2. What was the main reason that the merger of Daimler-Benz and Chrysler failed? a.

The companies were rivals, and their communication channels never fully opened. b.

The merger was too time-consuming for the companies to worry about operations. c.

The companies were from two different countries and had different corporate cultures. d.

The two types of cars were expensive and inexpensive and consumers could not reconcile this.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 12.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cccxl

3. What was one of the key factors that resulted in the successful merger of Rogers Communications Inc. with Fido? a.

Rogers ensured no job losses. b.

Rogers set up an intranet site. c.

Rogers paid a premium for Fido. d.

Rogers monitored the merger’s progress.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction: Big Is Beautiful QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

4. If a book publishing company decides to merge with a pulp and paper mill for its paper needs, what type of merger would result? a. horizontal b. vertical c. conglomerate d. takeover ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

5. If two competitors merge, what type of merger is created? a. horizontal b. vertical c. linear d. conglomerate ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

6. What is the growth strategy that results in the fastest growth for an organization? a. leveraging current customers b. opening new markets internationally c. corporate joint ventures d. mergers and acquisitions ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

7. If a company wants to reduce its dependency on a market that is cyclical in nature, what type of merger strategy should it choose? richard@qwconsultancy.com

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a. integration b. assimilation c. diversification d. consolidation ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

8. What type of strategy is applied when the targeted company makes a counteroffer for the bidding firm? a. hostile takeover b. poison pill c. white knight d.

Pac-Man ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

9. If a company is able to use one set of inputs to produce a wider range of products and services, what is this ability called? a. economies of scale b. economy of advantage c. economy of scope d. economies of productivity ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

10. Why must the needs of management be considered as an important motivator for mergers? a.

Managers often consider their power and ego needs ahead of the needs of their organization. b.

Managers are unconsciously motivated by the game of corporate life and takeover challenges. c.

Managers are concerned only about their substantial incentives and salaries and not about their employees. d.

Managers have personality characteristics that result in acquisition behaviours and greed.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

11. Which of the following is NOT a typical employee behaviour category during a merger? a. not willing b. not available c. not able d. not knowing ANSWER: b cccxlii

POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

12. Following a merger, what is constructive dismissal? a.

Employees are demoted into a position of lesser status and compensation. b.

Employees receive a compensation package that satisfies their basic needs. c.

Employees are terminated using compassionate and sufficient compensation. d.

Employees receive substantially different compensation packages after the merger.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

13. What is one important benefit that an organization can offer its terminated employees? a. access to organizational intranet and email b. continuation of benefits for a certain time period c. incentive plan that incorporates performance d. buyouts that have cost-of-living adjustments ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

14. Why must collective agreements be considered during a merger? a. to follow the protocols for notification periods for layoffs and terminations b. to help management create an environment of trust, fairness, and equity c. to ensure that employees will continue to work with the same compensation d. to interpret the legalities of downsizing and restructuring ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

15. Why must development programs, such as overseas assignments, be put on hold for managers during a merger? a.

Costs are prohibitive during a merger, so deferring overseas assignments is a cost-cutting measure. b.

Managers may require additional training to manage the reactions of their employees. c.

Managers cannot hide in another country to avoid being terminated with the merger. d.

It is important that managers be available to work out incentive and reward schemes. richard@qwconsultancy.com

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ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

16. Why was the merger of Alberta Energy with PanCanadian Energy deemed a stunning success? a.

The merger was extremely fast. b.

The merger was financially motivated. c.

The merger was employee-oriented. d.

The merger was focused on unionization.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 12.5 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

17. What is one benefit for organizations that apply due diligence in order to manage their culture during a merger? a. lower absenteeism and attrition b. improved job satisfaction c. increased stock prices d. higher revenues and profits ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 12.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

18. According to your textbook, what percentage of all mergers fail due to the mismanagement of culture? a.

25 percent b.

45 percent c.

65 percent d.

85 percent ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

19. Which of the following is typically NOT an item included in a contingency plan for a merger? a. financial projections b. negotiation skills training c. methods of communicating d. chain of command ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice cccxliv

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:08 AM 9/13/2018 9:08 AM

20. According to your textbook, what percentage of firms fail to produce any shareholder value following a merger? a.

20 percent b.

40 percent c.

60 percent d.

80 percent ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

21. What are the three primary reasons that companies create mergers? a. financial benefits, needs of management, human resource benefits b. financial benefits, strategic benefits, competitive benefits c. financial benefits, needs of management, strategic benefits d. global benefits, competitive benefits, human resource benefits ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

22. Within what timeframe should the majority of anticipated synergies be captured and identified to ensure the success of the merger? a. within the first quarter b. within the first year c. within two years d. within five years ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

23. How many person-hours did the executives of HP and Compaq spend in planning for the merger integration? a. more than fifty thousand but less than one hundred thousand b. more than one hundred thousand but less than five hundred thousand c. more than a half million but less than one million d. more than one million ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:08 AM

24. What is it called when two cultures fuse and evolve into a brand new culture? a. integration b. assimilation c. separation d. deculturation ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

25. There is strong public opinion against foreign ownership in Canada. What was one acquisition that the federal government recently blocked? a. acquisition of Potash Inc. b. acquisition of Inco. c. acquisition of Petro-Canada d. acquisition of Intrawest ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 12.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM 26. Which of the following is NOT one of the key areas that General Mills’ transition team focused upon? a. developing the systems that mattered most to employees b. providing fair compensation and incentives to employees c. sequencing the implementation of any new systems d. using a climate survey to monitor employee feedback ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 12.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

27. What is the most successful conglomerate in India? a.

Bank of India b.

Bharat c.

VSLN d.

Tata ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM cccxlvi

28. What is one financial benefit of a merger? a. tax advantages b. reduced debt load c. increased stock price d. higher productivity ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

29. Which one of these factors may influence the success rate of a merger? a. stress counselling for employees b. industry sector of the merger c. both companies being the same size d. languages spoken by management ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

30. Merging two workplace cultures is difficult. What is it called when one company absorbs the other? a. cultural integration b. cultural pluralism c. cultural assimilation d. cultural transformation ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

31. If a real estate agency decides to merge with a real estate developer to achieve the synergies of controlling all factors affecting the company’s success, what type of merger would result? a. horizontal b. vertical c. conglomerate d. takeover ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

32. What is it called when one company seeks to acquire another company? a. consolidation b. conglomerate c. vertical merger d. takeover ANSWER: d POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

33. What is it called when two or more companies join together and form an entirely new company? a. conglomerate b. vertical merger c. consolidation d. horizontal merger ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

34. If two competing companies merged to increase market power, what type of merger would result? a. acquisition b. horizontal c. conglomerate d. vertical ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

35. Loblaws purchased Shoppers Drug Mart. What is this an example of? a. acquisition b. horizontal merger c. consolidation d. acquisition ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

36. A university and college in the same city decide to merge. What type of benefits do these academic institutions benefit from? a. strategic and financial benefits b. cost savings and resource allocation benefits c. increased federal government grants and funding d. improved employee and student resources ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False cccxlviii

DATE CREATED: DATE MODIFIED:

9/13/2018 9:08 AM 9/13/2018 9:08 AM

37. If a company is able reduce costs by a corporate combination, what is this ability called? a. economy-of-scope advantage b. economy of advantage c. economies of scale d. economies of productivity ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

38. What are three motives for a company to decide to merge? a. financial benefits, management needs, and increased resources b. strategic benefits, management needs, and increased resources c. strategic benefits, financial benefits, and management needs d.

CEO desires, cost savings, and resource benefits ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

39. Merging two workplace cultures is difficult. What is it called when two company partners co-exist? a. cultural pluralism b. cultural integration c. cultural assimilation d. cultural transformation ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

40. What is usually referred to as operating synergy? a. economy-of-scope advantage b. competitive advantage c. economies of scale d. economies-of-scale benefit ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

richard@qwconsultancy.com

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41. Merging two organizational cultures is challenging. What is it called when the partner organizations blend current cultures together? a. cultural integration b. cultural assimilation c. cultural transformation d. cultural pluralism ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

42. Which of the following is an HR planning issue in mergers that is NOT part of the normal planning process? a. reduction planning b.

HR due diligence c.

HRIS d.

HR demand estimations ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

43. Which of the following is an HR planning issue in acquisitions that is NOT part of the normal planning process? a. transition team implementation b. reduction planning c.

HRIS d.

HR demand forecasts ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Issues in M&As QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

44. If one company merges with another company but the two companies have no competitive or buyer–seller relationship, what type of merger would result? a. vertical b. horizontal c. conglomerate d. acquisition ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

45. Merging two organizational cultures is challenging. What is it called when the partner companies abandon key elements of their current cultures and adopt new norms? a. cultural pluralism b. cultural transformation c. cultural integration d. cultural assimilation ANSWER: b cccl

POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

46. What issues are responsible for the failure of one-third to one-half of mergers? a. strategic b. financial c. employee d. organizational ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

47. Who are the two parties involved in a conglomerate merger? a. buyer and supplier b. two competitors c. two organizations competing in different markets d. shareholders and competitors ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:08 AM DATE MODIFIED: 9/13/2018 9:08 AM

48. Mergers are forged for what reasons? a. financial and human b. c. strategic and financial d.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

human and strategic functional and operational

49. One option for those involved in merging cultures is for one company (usually the acquirer) to absorb the other.

What is this called? a. cultural pluralism b. cultural integration c. cultural assimilation d. cultural transformation ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice richard@qwconsultancy.com

cccli

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

50. Mergers succeed or fail for what reasons? a. human b. strategic c. financial d. operational ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 51. What is the percentage of all merger failure due to the mismanagement of the organization’s culture? a.

90 percent b.

65 percent c.

50 percent d.

85 percent ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Urge to Merge QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

52. According to researchers, four options are open to those involved in merging cultures. Which of the following is NOT an option? a. cultural pluralism b. cultural inspiration c. cultural assimilation d. cultural transformation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

53. One option for those involved in merging cultures is for the partner organizations to blend current cultures together. What is this called? a. cultural pluralism b. cultural integration c. cultural assimilation d. cultural transformation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

ccclii

54. Who are the two parties involved in a horizontal merger? a. buyer and supplier b. two competitors c. management and employees d. shareholders and executives ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Definitions QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

55. One option for those involved in merging cultures is for the partner companies to abandon key elements of their current cultures and adopt new norms. What is this called? a. cultural pluralism b. cultural transformation c. cultural integration d. cultural assimilation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

56. A horizontal merger occurs between a buyer and a supplier. a.

True b.

False ANSWER: False RATIONALE: (vertical merger) POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

57. Culture refers to the set of important beliefs that members of an organization share. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

58. A conglomerate merger is the merger of two organizations competing in different markets. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False richard@qwconsultancy.com

cccliii

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

59. Typically, mergers and acquisitions do not result in layoffs or the reduction of the size of the workforce. a.

True b.

False ANSWER: False RATIONALE: (layoffs do occur) POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

60. Horizontal integration is the merger or acquisition of two organizations that have a buyer–seller relationship. a.

True b.

False ANSWER: False RATIONALE: (vertical integration) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

61. Due diligence is a process through which a potential acquirer evaluates a target firm for acquisition. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

62. Demotion refers to a reduction of responsibility, territory, or lines of authority for an employee. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

63. A takeover usually refers to a hostile transaction because it involves acquisition of the company against the wishes of its management. a.

True b.

False cccliv

ANSWER: True POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

64. Assimilation is when two organizational cultures are fused together to create a new culture. a.

True b.

False ANSWER: False RATIONALE: (this is integration) POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

65. Some mergers are done without acknowledging the loss of tangible assets such as the knowledge of vacating employees following a merger. a.

True b.

False ANSWER: False RATIONALE: (intangible assets – human capital) POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

66. Researchers have found that there is a tendency for some organizations to dismiss issues related to organizational culture if the numbers from the merger look good. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

67. Individuals who survive a merger often experience stress, anxiety, and loss of productivity. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

ccclv

68. In their mergers, typically Canadians want more structure and definition of roles and responsibilities than do Mexicans. a.

True b.

False ANSWER: False RATIONALE: (Mexicans want more) POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

69. When XM and SIRIUS, two satellite radio businesses in Canada, merged, the impact was negligible on the bottom line for XM. a.

True b.

False ANSWER: False RATIONALE: (XM’s revenue and customer base quadrupled) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

70. The success of the valuation-driven acquisition depends on predicting economic cycles. a.

True b.

False ANSWER: False RATIONALE: (timing economic cycles) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

71. One of the disadvantages of mergers is that employees might have to reapply for their old jobs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

72. When two companies merge, one possible result is the creation of a new compensation system. a.

True b.

False ANSWER: True ccclvi

POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

73. One main advantage of mergers is the lowering of expenses by reducing headcount. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

74. Deculturation describes the feeling of inclusion from the dominant partner in a merger even though the organizational cultures may be different. a.

True b.

False ANSWER: False RATIONALE: (feeling of alienation) POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

75. Culture can be likened to the social glue that binds individuals together in an organization. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

76. Pension plans are often the root cause of failed merger deals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

77. Mergers and acquisitions can be classified as corporate restructuring strategies. richard@qwconsultancy.com

ccclvii

a.

True b.

False ANSWER: False RATIONALE: (growth strategies) POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 78. “White knights” refers to a situation in which key players have the right to purchase shares at a huge discount, which makes takeovers extremely expensive. a.

True b.

False ANSWER: False RATIONALE: (poison pills) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

79. It is estimated that mismanagement of the culture is responsible for as much as 85 percent of all merger failures a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

80. Due diligence is a process through which a potential acquirer evaluates a target firm for acquisition a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

81. Worker stress levels during M&As may necessitate clearer policies, procedures, and compliance. a.

True b.

False ANSWER: False RATIONALE: (relaxed rules and more counselling and coaching) POINTS: 1 REFERENCES: HR Issues in M&As QUESTION TYPE: True / False HAS VARIABLES: False ccclviii

DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

82. One in three employees will experience a merger or acquisition during the course of their working lives. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Mergers and Acquisitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

83. Integration difficulties is one of the reasons for M&A failures. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

84. Strategic benefits is one of the reasons companies merge. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

85. About half of Canadian CEOs are planning a merger or acquisition. a.

True b.

False ANSWER: False RATIONALE: (one-quarter) POINTS: 1 REFERENCES: Mergers and Acquisitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

86. An example of a horizontal merger is a real estate agency merging with a real estate developer. a.

True b.

False ANSWER: False RATIONALE: (vertical merger) POINTS: 1 richard@qwconsultancy.com

ccclix

REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

87. A conglomerate merger occurs when one company merges with another but the two companies have no competitive or buyer–seller relationship. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

88. Financial benefits is one of the reasons companies merge. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge KEYWORD: QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

89. An example of consolidation is Burroughs and Sperry, two computer manufacturers, joining to form UNISYS. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

90. Too small an acquisition is one of the reasons M&As fail. a.

True b.

False ANSWER: False RATIONALE: (too large) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

91. An example of a conglomerate merger is three hospitals in Toronto—York Finch, Humber Memorial, and Northwestern General—merging in response to budget cutbacks. ccclx

a.

True b.

False ANSWER: False RATIONALE: (consolidation) POINTS: 1 REFERENCES: Definitions QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

92. The needs of the CEO or managing team is one of the reasons companies merge. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

93. Economies-of-scale benefit is the ability of a firm to use one set of inputs to produce a wider range of products and services. a.

True b.

False ANSWER: False RATIONALE: (economy-of-scope) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

94. Operating synergy is the cost reductions achieved by economies of scales produced by a merger or acquisition. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

95. Vertical integration is the merger or acquisition of rivals. a.

True b.

False ANSWER: False RATIONALE: (Horizontal) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False richard@qwconsultancy.com

ccclxi

DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

96. Too little diversification is one of the reasons for M&A failures. a.

True b.

False ANSWER: False RATIONALE: (too much) POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

97. After a merger, restructuring including the termination of employees, often occurs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Urge to Merge QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

98. Mergers are undertaken to provide a strategic benefit or a financial benefit, or to fulfill the psychological needs of the managers. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

99. The financial results of mergers are most often positive. a.

True b.

False ANSWER: False RATIONALE: (not always as positive as expected) POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

100. The effect of mergers on staff is devastating to employees terminated but not to the employees who remain employed with the merged company. a.

True b.

False ccclxii

ANSWER: False RATIONALE: (whether or not employees stay with the merged company) POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

101. The culture of the previously separate companies and the new merged company is the area that experts say is the most important predictor of merger success. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Summary QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

102. What is a merger? Identify and describe three different types of mergers.

ANSWER: A merger is the combination of two organizations to create a third organization.

Horizontal merger: the merging of two competitors. The competitors combine to increase market power. These mergers are subject to review by regulators who fear monopoly in the marketplace (for example, the merging of Coles Books and Smith Books to form Chapters, which was then acquired by Indigo).

Vertical merger: the merger of a buyer and seller or supplier. These two merge to achieve synergies by controlling all factors affecting the company’s success, from the production of raw goods to manufacturing to distribution and sales.

The example provided is the merger of a real estate agency with a real estate developer.

Conglomerate merger: the merger of two organizations competing in different markets. These are different businesses competing in different markets.

Acquisition: the purchase of a company or a controlling interest in a company.

Consolidation: two or more organizations join and form a new organization. A third company takes on the assets and liabilities of both companies, usually after the original companies are dissolved (for example, Metro Toronto Hospital consolidations).

Takeover: one company acquires another company. Usually a takeover refers to a hostile transaction, but it can mean a friendly merger as well. A hostile takeover refers to the acquisition of a company against the wishes of management.

POINTS: 10 REFERENCES: Definitions QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

103. Identify and describe two of the three major benefits of mergers.

ANSWER: Strategic Benefits: ∙ M&As are a growth strategy for companies – it is a quick method of growth ∙ Competitive positions can be strengthened ∙ Complementarities can be obtained – operating synergy is the cost reductions achieved by economies of scales produced by a merger or acquisition, e.g., HP and Compaq can renegotiate contracts with suppliers for memory chips and hard drives to save a total of $3 billion annually ∙ Merge to gain access to new markets, e.g., merging of XM and SIRIUS, two satellite radio businesses – XM’s revenue and customer base quadrupled richard@qwconsultancy.com

ccclxiii

∙ Diversification may occur to reduce reliance on one market, e.g., General Electric acquiring insurance businesses, television stations, plastics, etc. ∙ Companies may redefine their business through acquisitions, e.g., Nortel Networks ∙ Vertical integration – the merger or acquisition of two organizations that have a buyer–seller relationship, e.g., PepsiCo acquired KFC, Taco Bell, and Pizza Hut to ensure distribution of its products in these restaurant outlets ∙ Horizontal integration – the merger or acquisition of rival companies, e.g., Cisco Systems is an active acquirer of small firms Financial Benefits: ∙ Reduce the variability of the cash flow of their own business – put “different eggs in different baskets” ∙ Organizations use funds generated by their own mature businesses (cash cows) to fund growing business ∙ Considerable tax losses in the acquired firm may offset the income of a parent company ∙ Astute corporations may analyze the financial statements of a company and decide that the company is undervalued ∙ Shareholders’ wealth is increased Managerial Needs: ∙ Managers love to play the corporate game ∙ Personal motives of managers ∙ CEOs have incentives or payoffs if they engage in acquisition behaviour, e.g., managerial compensation, prestige, and status ∙ Unconscious motives of CEOs ∙ Personality characteristics of CEOs POINTS: 10 REFERENCES: The Urge to Merge QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

104. What is culture? Identify and briefly describe two of the four different types of cultures companies may adopt after a merger or acquisition.

ANSWER: Cultureis the set of important beliefs that the members of an organization share. These beliefs are unspoken; they are an accumulation of the group’s shared history and experience. Culture is known as the “social glue” that binds individuals together and creates organizational cohesiveness.

Assimilation: This occurs when one organization willingly gives up its culture and is absorbed by the culture of the acquirer or dominant partner.

Integration: This refers to the fusion of two cultures, resulting in the evolution of a new culture.

Deculturation: Sometimes the acquired organization does not value the culture of the dominant partner and is left confused, alienated, and marginalized.

Separation: The two cultures resist merging, and either the merged company operates as two separate companies or divorce occurs.

POINTS: 10 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

105. List two major results of the research surrounding success rates of mergers and acquisitions.

ANSWER: ∙ Research demonstrates that only 15 percent of mergers successfully achieve their financial goals ∙ Acquisitions of related businesses fare better than acquisitions of businesses unrelated to the parent company ∙ A merger occupies so much management time, attention, and other resources that the original businesses are neglected ∙ Major challenges face the merging of companies: integrating computer systems, eliminating duplications, reevaluating supplier relationships, reassuring clients, advising employees, and reconfiguring work routines POINTS: 10 ccclxiv

REFERENCES: The Urge to Merge QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

106. Identify and describe three HRM impacts that occur as a result of mergers and acquisitions.

ANSWER: HR planning in an M&A has several dimensions that are not part of the normal planning process.

Contingency Plan: Strategic planners must be aware of the boards of directors’ interests in M&As. A contingency plan must include the chain of command, methods for communicating, procedures to follow during a takeover, negotiation skills, and media response training for the senior team, and it should identify a transition team.

HR Due Diligence: Conduct a due diligence review to assess how the M&A will affect the treatment of employees.

This is necessary because of the urgency of the M&A situation and the information gaps and employee stress that characterize it.

Transition Team: An important element of a merger or acquisition is the need to appoint a transition team to manage the urgency of the merger related to information gaps and employee stress. The goals of the transition team are to retain talent, maintain productivity (both quality and quantity), select individuals for the new organization, integrate HR programs, and begin the process of integrating cultures.

Selection: Retention and reduction must be addressed immediately. Duplicate positions and redundant employees must be terminated, while highly qualified employees in critical positions must be motivated to stay. Employees may face demotion, competition for the same job, or termination.

Compensation: Two companies with two different compensation systems have to merge their systems, adopt one, or create a new one. Benefit plan integration also needs to be assessed.

Performance Appraisal: The focus is on short-term, as opposed to long-term, goals. Employees may fall into three different categories: (1) not knowing (remedied by more communication), (2) not able (remedied by training), and (3) not willing (a strong case for performance management).

Training and Development: After the strategic plan development, inventory the KSAs needed to align with the strategy.

Labour Relations: Unionized employees are covered by a collective agreement – a legally binding document. How will the contract terms be applied in the new situation? At a minimum, the collective agreement must be read to determine what provisions exist for job security and what the notification periods are for layoffs and terminations.

POINTS: 10 REFERENCES: HR Issues in M&As QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

107. According to researcher F.R. David (Strategic Management: Concepts and Cases, 12th edition, 2009, page 169) what are five of the main reasons for the failure of mergers and acquisitions?

ANSWER: ∙ integration difficulties ∙ inadequate evaluation of target ∙ large or extraordinary debt ∙ inability to achieve synergy ∙ too much diversification ∙ managers overly focused on acquisitions ∙ too large an acquisition ∙ difficult to integrate organizational cultures ∙ reduced employee morale due to layoffs and relocations POINTS: 10 REFERENCES: The Urge to Merge QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

108. Early on in a merger, company executives and HR planners have to decide if one culture will be grafted onto that of the other, or if the two will merge to create a third culture. According to researchers, four options are open to organizations involved in M&As. Discuss these four options.

ANSWER: ∙ Cultural pluralism: The partners co-exist. ∙ Cultural integration: The partner organizations blend current cultures together. ∙ Cultural assimilation: One company (usually the acquirer) absorbs the other. ∙ Cultural transformation: The partner companies abandon key elements of their current cultures and adopt new norms.

POINTS: 10 REFERENCES: Cultural Issues in Mergers QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

109. HR planning in a merger and acquisitions situation has several dimensions that are NOT part of the normal planning process. Describe three HR planning activities that are not part of the normal HR planning process and that an organization would want to include in the merger and acquisition process.

ANSWER: ∙ transition team implementation ∙ contingency planning ∙ HR due diligence POINTS: 10 REFERENCES: HR Issues in M&As QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

110. Identify an organization you are familiar with that is embarking on a merger or acquisition (such as from your work experience or from your textbook). Discuss the impact of the merger or acquisition on human resources (the impact on the employees).

ANSWER: The real costs of a merger may be hidden, that is, not evident when analyzing financial records. Takeovers result in human displacement, and the cost of losing the best sales rep, who either is anxious about her job or does not wish to work for the acquired company, cannot be measured in accounting terms. The time involved in replacing this employee with a new one represents a cost to the employer. Research has shown that that M&As cause increases in work, less affective commitment, and a loss of trust in the firm and its top managers. This is particularly true in hostile acquisitions.

The feeling among those experienced in M&As is that, while mergers are forged for strategic and financial reasons, they succeed or fail for human reasons. Experts estimate that employee issues are responsible for the failure of onethird to one-half of mergers. These issues include the difficulty in blending cultures, reduction in service levels, poor motivation, loss of key people and clients, and loss of focus on longer-term objectives, POINTS: 10 REFERENCES: The Urge to Merge QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

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111. Discuss the steps an organization can take to actively manage its cultures during the integration of a merger.

ANSWER: 1. Conduct a cultural audit of each organization through qualitative research (e.g., interviews, focus groups) or through quantitative surveys.

2. Identify similarities and differences, and discuss these. Create a new employee value proposition from the strengths of each culture.

3. Use acculturation strategies such as cross-functional seminars and graduation ceremonies (to let go of the “old”), and provide cultural mentors to strengthen integration.

4. To overcome cultural challenges, celebrate small wins, acknowledge value in past practices, and measure progress at regular intervals.

POINTS: 10 REFERENCES: HR Issues in M&As QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

1. A core competency can be defined in four different ways. Three of those definitions are: (1) activities traditionally performed internally; (2) activities critical to business success; (3) activities creating current or potential competitive advantage. What is the fourth way that core competency can be defined? a. activities that will influence future growth b. activities that will increase profitability c. activities that will result in innovation d. activities that will reduce debt load ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

2. Which core competency does Nike retain in-house while outsourcing nearly everything else? a. product design b. financial analysis c. customer service d. employee recruitment ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

3. Which of the following HR functions is most likely to be outsourced by organizations? a.

HR planning b.

HR strategy c. pension administration d. restructuring ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 13.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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4. Why do cost overrides with outsourcing occur more frequently than projected? a.

Information technology is deemed a compatible system b.

Client demands are outside of the standard vendor package c.

Organizations are inexperienced with vendor selection d.

Vendors will make contracts that are biased in their favour ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

5. What is the first step in managing outsourcing? a. cost–benefit analysis b. c. negotiating the contract d.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

selecting the vendor monitoring the arrangement

6. Which of the following is NOT a function of the evaluation team in an outsourcing decision? a. analyzing bids b. applying due diligence c. choosing the vendor d. negotiating the contract ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

7. What function does a stay-back team perform? a.

It negotiates the outsourcing contract c.

It monitors the outsourcing arrangement ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

b. d.

8. What are the two most frequent causes of outsourcing problems? a. reduction of costs, vendor incompetence b. excessive time, lack of technology ccclxviii

It conducts a cost–benefit analysis It selects the outsourcing vendor

c. organizational politics, reduced employee morale d. poor service definition, weak management processes ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

9. Which organizational activity performs better than outsourcing with respect to cost savings? a. management by objectives b. balanced scorecard c. re-engineering d. continuous improvement ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

10. What can a company do to reduce the risk of an outsourcing company entering the market and becoming a competitor? a. outsource non-core work b. erect strategic blocks c. establish trust d. monitor the outsource arrangement ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

11. In an outsourcing arrangement, what typically happens to the employees who currently do the outsourced function in-house? a.

They are fired. b.

They quit or retire. c.

They move to another company. d.

They transfer to other functions.

ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

12. What percentage of HR professionals resist outsourcing because they worry about losing their jobs? a. one-tenth b. one-quarter c. one-third d. one-half ANSWER: c POINTS: 1 DIFFICULTY: Easy richard@qwconsultancy.com

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REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

13. When selecting a vendor, an organization needs a description of the responsibilities to be outsourced and an invitation to potential providers to present their proposal for carrying out the job. What is this called? a. vendor checklist b. supplier sequencing c. request for proposal d. sender request ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

14. When rumours of potential outsourcing plans surface in an organization, what might managers expect next? a. productivity losses b. customer service disruptions c. media attention d. more formal communication ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

15. Why have many western nations outsourced activities to India? a. increasing pool of outsourcing companies b. large English-speaking population c. relatively stable legal system d. committed and loyal workforce ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 13.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

16. Which of the following characteristics is NOT typically used to help determine whether an organization should outsource? a. reliance on technology b. routine activity frequently undertaken c. cost-effectiveness d. accessibility from remote sites ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice ccclxx

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

17. Why do large organizations rarely outsource their entire HR departments? a.

Outsourcers specialize in market niches and so no one company does all functions. b.

Organizations do not wish to relinquish total control over all HR functions. c.

Organizations have different cultures than their outsourcing vendors. d.

Outsourcers need to be monitored, and this extra time has associated costs.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

18. Why are specialized outsource vendors more efficient in their offering of training than many organizations? a.

Outsourcers can achieve economies of scale. b.

Outsourcers can charge for every transaction. c.

Outsourcers can maximize their capital. d.

Outsourcers can provide uninterrupted service.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

19. Why is it important to outsource transactional work? a.

It adds value to non-core activities. b.

It frees up management’s time. c.

It reduces transaction time. d.

It is repetitive, predictable, and easily duplicated.

ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

20. According to the textbook, why were 30 percent of outsourcing arrangements NOT renewed? a. because of an incompetent outsourcer b. because cost savings were not achieved c. because employees resisted change d. because productivity suffered ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False richard@qwconsultancy.com

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DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

21. What was the public relations consequence for a catering company that had been outsourced by British Airways when 70 000 passengers were stranded at Heathrow Airport in the U.K.? a. brand image damage b. bankruptcy c. no known consequences d. decreased business ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

22. What is one of the primary risks associated with outsourcing? a. increased costs b. decreased employee morale c. impact on public relations d. loss of strategic control ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

23. What is one service risk to an organization in having a company provide outsourcing arrangements? a.

The vendor might have a less personal relationship with employees. b.

The outsourcer might allow changes to the contract. c.

The vendor might limit certain proprietary technology. d.

The outsourcer might have a disruption of service.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

24. What is an essential first step that an organization must undertake with its outsourcing vendor when negotiating the contract? a. making sure that there is a termination clause b. checking references using the vendor’s current clients c. establishing benchmarks for current service levels d. projecting a budget for cost savings ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM ccclxxii

DATE MODIFIED:

9/13/2018 9:09 AM

25. What were two HR functions that Avenor Inc. of Montreal outsourced? a. preliminary interviews and training needs analysis b. pensions and payroll administration c. program delivery and executive salary negotiations d. wellness programs and strategic HR planning ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

26. Which company reduced the headcount in its head office from 40 employees in 1994 to 12 employees today due to outsourcing? a.

TransCanada b.

Gow Corp. c.

Avenor d.

Pratt & Whitney ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

27. According to the textbook, why did CIBC make the decision to outsource major portions of its HR functions? a. to downsize employees and increase efficiency b. to avoid capital expenses and increase cultural fit c. to cut costs and increase productivity d. to improve service and increase automation ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 13.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

28. Which of the following outsourcing functions carries a potential risk of information being leaked? a. payroll and benefits b. software development c. recruitment d. pension administration ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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29. What happened to Schwinn, a U.S. bicycle manufacturer? a.

Its outsourcing vendor, Giant Manufacturing in Taiwan, stole its confidential employee information, which resulted in many lawsuits against Schwinn. b.

Its outsourcing vendor, Giant Manufacturing in Taiwan, became insolvent and was unable to fulfill its annual order for Schwinn. c.

Its outsourcing vendor, Giant Manufacturing in Taiwan, became a competitor and damaged Schwinn’s business. d.

Its outsourcing vendor, Giant Manufacturing in Taiwan, used lower quality materials to make Schwinn’s bikes, which increased product defects.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

30. What other HR strategy provides a negative impact on employees similar to that of outsourcing? a. acquisitions b. restructuring c. mergers d. divestitures ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

31. Nike focuses on its competencies in product design and outsources other competencies. What is this competency product design called? a. non-core competencies b. worker competencies c. core competencies d. transactional competencies ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

32. What are two primary reasons why organizations outsource? a. financial savings and strategic focus b. strategic focus and restructuring c. access to advanced technology and ability to service remote locations d. improved internal and external service levels ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False ccclxxiv

DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

33. Once an organization has negotiated the outsourcing contract, what would be the next step in managing outsourcing? a. cost–benefit analysis b. selecting the vendor c. reviewing policies d. monitoring the arrangement ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

34. Which of the following health and safety activities are most likely outsourced? a. employee assistance and wellness programs b. hazard recognition and risk assessment c. health and safety policies and procedures d. workplace hazard controls ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

35. Which of the following HR functions is NOT likely to be outsourced by organizations? a. training and development b. strategic planning c. benefits administration d. recruitment ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 13.3 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

36. Which of the following activities is most likely to be outsourced by organizations? a. confidential activities b.

HR strategy activities c. employee layoff activities d. rule-based activities ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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37. Which of the following is a key reason why an organization would outsource? a. to produce deliverables b. to undertake complex business activities c. to improved service levels d. to improve organizational knowledge activities ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

38. What are two primary reasons why organizations outsource? a. strategic and transactional focus b. access to specialized expertise and advanced technology c. access to specialized expertise and ability to service remote locations d. organizational politics and restructuring ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

39. What are two primary risks associated with outsourcing? a. increased costs and displaced workers b. impact on public and private relations c. service and security d. loss of strategic and operational control ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

40. Once an organization has selected a vendor, what would be the next step in managing outsourcing? a. cost–benefit analysis b. reviewing policies c. negotiating the contract d. monitoring the arrangement ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Management of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

41. Which of the following activities is NOT likely to be outsourced? a. rule based b. repetitive ccclxxvi

c. frequently undertaken d.

ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

unpredictable

42. Which of the following activities is NOT likely to be outsourced? a. predictable b. strategic c. able to be fully or partly automated by technology d. able to be delivered by remote sites ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

43. Which is one of the meanings of core competency? a. activities currently performed internally b. activities contributing directly to the bottom line c. activities traditionally providing competitive advantage d. activities influencing human behaviour ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

44. An organization decided to focus on its core competencies, such as customer service, and contract out its secondary functions, such as benefits administration. Which of the following defined its core competencies? a. activities that were best performed using technology b. activities that both contributed to the bottom line and employee commitment c. activities that created current or potential competitive advantage d. activities that traditionally led to competitive advantage and growth ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

45. Which of the following HR activities is suitable for outsourcing? a. succession management b. conducting HR surveys richard@qwconsultancy.com

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c. administering personnel tests ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

d.

layoffs, restructuring

46. Which of the following HR activities is NOT suitable for outsourcing? a. economics of scale b. ancillary activities c. routine activities d. management decision activities ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

47. An organization decided to focus on its core competencies, such as innovation, and contract out its secondary functions, such as payroll administration. Which of the following defined its core competencies? a. activities traditionally performed internally and critical to business success b. activities representing a balance between both core work and non-core work c. activities creating employee commitment and creativity d. activities traditionally performed internally and influence employee productivity ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Rationale for Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

48. Which of the following HR the functions is NOT likely to be outsourced? a. temporary staffing b. payroll c. training d. orientation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

49. Which of the following HR the functions is NOT likely to be outsourced? a. training b. employee relations c. recruiting d. benefits administration.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate ccclxxviii

REFERENCES: Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

50. Which of the following HR functions are most likely to be outsourced? a. performance management b. recruiting c. succession management d. organizational change ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 51. An organization found that outsourcing its employees’ skills limited their ability to learn and exploit changes.

What risks did this organization carry as a result of outsourcing? a. employee morale risks b. reduced value risks c. service risks d. security risks ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

52. Which of the following HR activities is NOT suitable for outsourcing? a. benefits administration b.

HR strategy c. administering personnel tests d. payroll administration ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

53. Which of the following HR activities is following a new trend that is being outsourced because of its complexity and need for confidentiality? a. payroll b. absence management c. recruiting d. benefits administration ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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54. An organization found that outsourcing led to company information being leaked. What risks did this organization carry as a result of outsourcing? a. service risks b. security risks c. reduced value risks d. employee morale risks ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

55. An organization found that outsourcing its human resources function resulted in employee confidential personnel data not being kept private. What risks did this organization carry as a result of outsourcing? a. employee morale risks b. security risks c. service risks d. reduced value risks ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

56. An organization found that in outsourcing its human resources function sensitive information, such as employee performance reviews were shared. What risks did this organization carry as a result of outsourcing? a. security risks b. reduced value risks c. employee morale risks d. service risks ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

57. Which of the following HR functions is most likely to be outsourced? a. orientation b. leadership development c. training d. employee relations ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 58. An organization’s outsourcing led to the disintegration of the organization’s culture. What risks did this organization carry as a result of outsourcing? ccclxxx

a. service risks b. reduced value risks c. employee morale risks d. security risks ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing KEYWORD: QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 59. An organization’s outsourcing impacted its customers’ perceptions of service, which were directly impacted by the level of organizational commitment of employees. What risks did this organization carry as a result of outsourcing? a. employee morale risks b. security risks c. reduced value risks d. service risks ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

60. Considering the risks and limitations of outsourcing, it is estimated that few outsourced HR functions have been brought back in-house. What is the percentage of outsourced HR functions that are taken back by organizations? a.

1 to 20 percent b.

10 to 30 percent c.

20 to 40 percent d.

10 to 40 percent ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 61. An organization’s restructuring and outsourcing resulted in displaced employees who felt resentful and retaliatory. What risks did this organization carry as a result of outsourcing? a. security risks b. reduced value risks c. employee morale risks d. service risks ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

62. Labour relations problems and a strike with the outsourced food catering supplier of British Airways left 70,000 passengers stranded at Heathrow Airport. What risks did British Airways carry as a result of outsourcing? a. service risks b. employee morale risks c. security risks d. reduced value risks richard@qwconsultancy.com

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ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

63. Technology has been an important driver of the outsourcing trend. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

64. Activities that are most likely to be outsourced include ones that are repetitive, predictable, and infrequent. a.

True b.

False ANSWER: False RATIONALE: (frequent) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

65. Quality improvement is typically cited as a benefit of outsourcing, and therefore it is written into the outsourcing contract. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

66. Because an outsourced function is not as visible to the employees as an in-house function, there may be issues of confidentiality. a.

True b.

False ANSWER: False RATIONALE: (confidentiality is improved) POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM ccclxxxii

DATE MODIFIED:

9/13/2018 9:09 AM

67. According to one survey in the textbook, about 80 percent of companies reported that outsourcing service agreements did not reduce overall costs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

68. When HR activities are outsourced to foreign countries, this is called HRO, or human resources outsourcing. a.

True b.

False ANSWER: False RATIONALE: (HR offshoring) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

69. Typically a company will outsource its HR functions if the labour laws and regulations governing employees are too complex for the company’s current level of expertise. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

70. Outsourcing is a contractual relationship for the provision of business services by any available provider with relevant expertise. a.

True b.

False ANSWER: False RATIONALE: (external provider) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

71. Outsourcing is a special organizational function that does not require a cost–benefit analysis. a.

True b.

False richard@qwconsultancy.com

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ANSWER: False RATIONALE: (does require a cost–benefit analysis) POINTS: 1 REFERENCES: Management of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

72. Recruiting is an HR function that is most likely to be outsourced. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

73. Outsourcing occurs when a company pays another company to do work for it. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

74. The two most frequent causes of outsourcing problems are poor service definition and cost overruns. a.

True b.

False ANSWER: False RATIONALE: (poor service definition and weak management processes) POINTS: 1 REFERENCES: Management of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

75. Three reasons that organizations outsource are improved service levels, access to specialized expertise, and organizational politics. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM ccclxxxiv

76. When selecting an outsourcing company, reference checks should be done to verify the quality of its previous work. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Management of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

77. Non-core work is transformational work that is routine and standard and can easily be duplicated and replicated. a.

True b.

False ANSWER: False RATIONALE: (transactional) POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

78. Two core functions that should be outsourced are employee relations and performance management. a.

True b.

False ANSWER: False RATIONALE: (should NOT be) POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 79. Two disadvantages of outsourcing include the potential disintegration of an organization’s culture and the loss of control over proprietary knowledge. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

80. The major information risk to the HR department when using outsourcing is the potential for violations of confidential employee data. a.

True b.

False ANSWER: True POINTS: 1 richard@qwconsultancy.com

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REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

81. Emerging research on outsourcing low-value, routine activities demonstrated that HR staff did not focus more on strategic or higher-value work. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

82. There is a new trend for organizations to outsource absence management because claims are complex, confidential, and medically oriented. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 83. Outsourcing can result in an organization’s employees losing some of its KSAOs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 84. The real sources of competitive advantage are not products but management’s ability to consolidate skills and technologies into competencies to adapt to changing circumstances. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

85. A competency is a combination of technology, management, and collective learning. ccclxxxvi

a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

86. For an organization, the major information security risk is the loss of personnel information. a.

True b.

False ANSWER: False RATIONALE: (for HR) POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

87. Outsourcing occurs when an organization contracts with another organization to provide services or products of a major business function or activity. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

88. Outsourcing in HR means transferring high-volume transactional work from the HR department to an outside contractor. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

89. Outsourcing occurs when an organization contracts with another organization to provide services or products of a minor function or activity. a.

True b.

False ANSWER: False RATIONALE: (major function) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False richard@qwconsultancy.com

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HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

90. Currently, outsourcing is being promoted as one of the most powerful trends reshaping management. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

91. Today, firms are outsourcing everything from information technology management to entire functions such as human resources. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

92. Outsourcing is similar to alliances, partnerships, and joint ventures in that the flow of resources is one-way, from the provider to the user. a.

True b.

False ANSWER: False RATIONALE: (differs from) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

93. HR practices that are most likely to be outsourced are rule based and repetitive activities. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

94. Activities that are able to be fully or partly automated by technology and delivered by remote sites are most likely to be outsourced. a.

True ccclxxxviii

b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

95. In HR, the functions most likely to be outsourced are temporary staffing, payroll, training, recruiting, and benefits administration. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

96. Outsourcing is the same as using consultants which may provide assistance on a project-by-project basis. a.

True b.

False ANSWER: False RATIONALE: (not the same) POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

97. Three reasons that organizations outsource are financial savings, strategic focus, and access to advanced technology. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 98. The real sources of competitive advantage are not products but management’s ability to consolidate skills and technologies into competencies to adapt to changing circumstances. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:09 AM

99. Increased service can be achieved when a provider, such as Ceridien, which specializes in benefits administration, concentrates on one area and provides this service to many corporations. a.

True b.

False ANSWER: False RATIONALE: (Economies of scale) POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

100. Core work is transactional and adds value to employees or customers. a.

True b.

False ANSWER: False RATIONALE: (transformational) POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

101. Two core functions that should NOT be outsourced are orientation and leadership development. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

102. Contracts typically include standards of service and quality. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Management of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

103. One of the primary risks in outsourcing is the effect on employee morale and performance. a.

True b.

False ANSWER: True POINTS: 1 cccxc

REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

104. Two core functions that should be outsourced are succession management and organizational change. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

105. Business functions that should be outsourced have an understanding of organizational culture and a long-term orientation. a.

True b.

False ANSWER: False POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

106. A competency is a combination of technology, management, and collective learning. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

107. Define outsourcing. What activities are most likely to be outsourced by an organization?

ANSWER: Outsourcing occurs when an organization contracts with another organization to provide services or products of a major function or activity. Work that is traditionally done internally is shifted to an external provider, and the employees of the original organization are often transferred to that provider.

Activities most likely to be outsourced are: ∙ Rule based ∙ Repetitive ∙ Frequently undertaken ∙ Predictable ∙ Able to be fully or partly automated by technology ∙ Able to be delivered by remote sites POINTS: 10 REFERENCES: Outsourcing richard@qwconsultancy.com

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QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

108. Why do organizations outsource? Discuss three of the six primary reasons.

ANSWER: The Rationale for Outsourcing: ∙ Almost all organizations outsource, and the trend is growing. ∙ 94 percent of organizations surveyed by the American Management Association had outsourced one or more HR functions.

Six Major Reasons Why Organizations Outsource: ∙ financial savings ∙ strategic focus ∙ access to advanced technology ∙ improved service levels ∙ access to specialized expertise ∙ organizational politics Financial Savings: ∙ Cost reduction is typically 10 to 20 percent ∙ Economies of scale from specialized outsourcers who are more efficient ∙ Cost control ∙ Decreased capital commitments Strategic Focus: ∙ Decide to focus on specific core competencies, such as customer service or innovation. (Core competencies are resources and capabilities that serve as a firm’s competitive advantage, distinguish a company competitively, and reflect its personality.) ∙ Core work is transformational and adds value to employees or customers ∙ Move secondary functions (or non-core work), such as benefits administration, to firms that do these things well (they are core competencies for the outsourced firm) Access to Advanced Technology: ∙ Technology has been a main driver of outsourcing ∙ Organizations want to improve technical service if they cannot find technical talent or need quick and reliable access to technology ∙ Technology enables a company to reduce transaction time (the time it takes to handle a request) Improved Service Levels: ∙ Quality improvement ∙ Outsource to those who are excellent performers ∙ More flexibility in hiring and rewarding employees ∙ Improved response time, performance, and confidentiality Access to Specialized Expertise: ∙ “Outsource when somebody can do it better than you.” ∙ Experts understand the complex laws and regulations required in HR ∙ Use of experts reduces the risks and liabilities for organizations ∙ Access to “best practices” Organizational Politics: ∙ Outsourced function is not as visible as an in-house department performing the same tasks ∙ Outsource to get rid of a troublesome department (e.g., employees who are underperforming) ∙ Outsourcing reduces headcount ∙ HR outsourced ratio 1:231 cccxcii

∙ Traditional HR ratio 1:100 POINTS: 10 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

109. List and briefly explain three risks associated with outsourcing.

ANSWER: Risks and Limitations: ∙ Projected benefits versus actual benefits ∙ Service risks ∙ Employee morale ∙ Reduced value Important Questions to Ask: ∙ Are the anticipated benefits realized? ∙ What are the risks to service levels? ∙ What is the effect on employee morale? ∙ Does outsourcing reduce the value of the organization?

Projected Benefits versus Actual Benefits: ∙ Outsourcing is not as cost-effective and problem-free as expected ∙ 50 percent found that it was more expensive to outsource ∙ Incompatible systems and client demands are the reason for excessive costs ∙ Organizations often duplicate some of the outsourced work for anomalous employees ∙ About 30 percent of outsourcing contracts are not renewed Service Risks: ∙ Contractual arrangements dictate which services will be provided ∙ Flexibility is compromised to add new features or change service levels ∙ Disruption of service could pose challenges from potential labour relations problems with outsourced organization Employee Morale: ∙ Outsourcing is a form of restructuring, which creates displaced, resentful, alienated, and anxious employees ∙ Organizations that outsource face a backlash ∙ About one-third of HR professionals resist outsourcing because they worry about: ∙ Losing their jobs ∙ Being forced to work for a vendor ∙ Fear that management believes outsiders are more competent Reduced Value: ∙ Extreme levels of outsourcing hollow out a company ∙ An organization experiences a reduced capacity to generate profits or innovate ∙ The internal image of HR may deteriorate ∙ Up to 20 percent of outsourced HR functions are ultimately brought back in-house POINTS: 1 REFERENCES: Risks and Limitations of Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

110. What are some considerations in managing an outsourced service or program? Describe two in detail. richard@qwconsultancy.com

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ANSWER: Outsourcing must be subjected to a cost–benefit analysis. Can the contractor do a faster, better job while maintaining service levels and meeting legislative requirements? How will this be measured?

Selecting the Vendor: Once a decision is made to explore outsourcing a function, the organization should: ∙ Inform the staff of the affected function ∙ Prepare a request for proposal, describing the responsibilities to be outsourced and inviting potential providers to present their proposal for carrying out the job ∙ Invite internal and external bids ∙ Establish a team to evaluate these bids Negotiating the Contract: An essential first step that the user organization must undertake is the establishment of benchmark levels with current services. ∙ Customize and negotiate the outsourcing contract ∙ Set performance standards or penalty clauses for the outsourcing company ∙ Establish benchmarks for service expectations ∙ Response time ∙ Response cost ∙ Customer satisfaction ratings Monitor the Arrangement: The work is managed by results, not necessarily by time expended to generate the results. ∙ Most frequent causes of outsourcing problems are: ∙ Poor service definition ∙ Weak management processes ∙ Establish a relationship to ensure the outsourcer acts in the best interests of the organization and has relevant knowledge of the organization ∙ Check outsourcing company’s references ∙ Demand frequent and accurate reporting ∙ Conduct internal and external client satisfaction surveys POINTS: 10 REFERENCES: Management of Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 111. Comment on the quote “not a single company can afford to even try and be the first in everything.” Define and give an example of core work and non-core work.

ANSWER: Core work is transformational and adds value to employees or customers. There are four meanings of core work: ∙ Activities traditionally performed internally ∙ Activities critical to business success; core work contributes directly to the bottom line, non-core work doesn’t ∙ Activities creating current or potential competitive advantage ∙ Activities that will influence future growth or rejuvenation Non-core work is transactional work that is routine and standard and can easily be duplicated and replicated.

POINTS: 1 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

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112. Describe three advantages for small businesses to outsource their HR functions.

ANSWER: Most businesses do not hire an HR professional until the employee numbers reach about 100, or even 400. But legislated HR functions, such as payroll and benefits, are necessary for every organization, regardless of size, so small businesses turn to other small businesses specializing in HR. The advantages are the following: ∙ Lessens the handling of routine, transactional HR work (payroll) by in-house staff ∙ Offers access to experts who may provide advice in atypical situations (employee fraud) ∙ Provides the management of one-off services (such as computer training) ∙ Ensures that the company is complying with current legislation ∙ Allows access to technology platforms that are too expensive to develop in-house POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

113. How can you determine which HR activities are amenable to outsourcing?

ANSWER: Activities most likely to be outsourced are: ∙ Rule based ∙ Repetitive ∙ Frequently undertaken ∙ Predictable ∙ Able to be fully or partly automated by technology ∙ Able to be delivered by remote sites Another way to determine if any HR activities are amenable to outsourcing is to consider their strategic importance.

Research suggests that HR activities can be grouped into seven hierarchical activities, according to strategic importance (levels below). HR activities in the first few levels are suitable for outsourcing; those at the higher levels are not.

Level 1: Ancillary activities—food service, grounds maintenance Level 2: Routine activities—benefits administration Level 3: Economics of scale—administering personnel tests Level 4: Specialized knowledge—conducting HR surveys, delivering a training course Level 5: Specific organizational knowledge—succession management Level 6: Highly confidential activities—layoffs, restructuring Level 7: Management decision activities—HR strategy, structure POINTS: 1 REFERENCES: Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 114. Discuss the quote “The best advice is to outsource transactions and insource transformations.”

ANSWER: Employers recognize that they cannot pursue excellence in all areas. Therefore, employers decide to focus on their core competency, such as customer service or innovation, and move secondary functions, such as benefits administration, to firms in which these functions are a core competency.

How is core defined? There are four meanings: • Activities traditionally performed internally • Activities critical to business success—core work contributes directly to the bottom line; non-core work doesn’t richard@qwconsultancy.com

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• Activities creating current or potential competitive advantage • Activities that will influence future growth or rejuvenation Non-core work is transactional work that is routine and standard and can easily be duplicated and replicated; core work is transformational and adds value to employees or customers. The notion of core competencies was created by Prahalad and Hamel, who argued that the real sources of competitive advantage were not products but management’s ability to consolidate skills and technologies into competencies to adapt to changing circumstances. A competency is a combination of technology, management, and collective learning.

Executives will decide to concentrate on what the organization does best, and contract everything else out to vendors.

Core functions that should not be outsourced are orientation, leadership development, employee relations, final selection, performance management, succession management, and organizational change, as these depend on an understanding of organizational culture, a long-term orientation, consistency, trust, and confidential information. By outsourcing non-core activities, managers hope to be able to focus on value-added roles.

POINTS: 10 REFERENCES: The Rationale for Outsourcing QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

1. What type of costs can be estimated but not easily measured by financial expenditures? a. direct b. indirect c. tangible d. intangible ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

2. Why do some managers resist the need to measure the effectiveness of their performance? a. because it is impossible to calibrate meaningful measures b. because they know that they are underperforming in their jobs c. because they do not control the information that is produced d. because the time to gather information exceeds the benefits ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

3. In the book titled Retooling HR, author Boudreau stated that HR evolution is challenged by the presence of too much information. What solution did the author suggest? a. reducing the volume of information b. developing measures to summarize information c. focusing on relevant HR information d. creating frameworks to interpret the information ANSWER: d cccxcvi

POINTS: 1 DIFFICULTY: Easy REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

4. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer satisfaction? a. employee turnover and “presenteeism” b. employee commitment and engagement c. employee innovation and advocacy d. employee satisfaction and work–life balance ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction-Keeping Score with the Scorecard QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

5. Which of the following is NOT related to the Sarbanes-Oxley requirements? a. executive compensation b. pension plans c. employee benefits d. whistleblower protection ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 6. Typically, what is an organization’s largest controllable cost? a. technological costs b. capital costs c. labour costs d. benefits costs ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM 7. What are the three stages of a fad’s lifecycle? a. introduction, growth, decline c. introduction, growth, maturity ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 14.2 richard@qwconsultancy.com

b. d.

ascendency, maturity, decline ascendency, growth, maturity

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QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

Multiple Choice False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

8. Which of the following is NOT part of the 5C model of HRM impact? a. contribution b. cost control c. compliance d. commitment ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

9. What methods are typically used to measure client satisfaction? a. informal feedback and surveys b.

Delphi technique and focus groups c. questionnaires and nominal group technique d. critical incident method and breakout groups ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

10. If an organization measures a decline in employee morale, approximately how long will it take to realize a drop in customer satisfaction? a.

2 months b.

4 months c.

6 months d.

8 months ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

11. What is the underlying assumption of the culture management model that is used to determine the effectiveness of HRM? a.

HR professionals are employed 20 to 30 percent of the time to ensure compliance with laws and legislation. b.

Organizational effectiveness is directly correlated to the size of the human resources budget. c.

HR practices can have a positive influence on employee attitudes, which in turn influence employee performance. d.

Highly committed employees will make personal sacrifices for the job and will not leave the organization for personal gain.

ANSWER: c POINTS: 1 cccxcviii

DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

12. What are three of the main employee attitudes that are measured in HRM effectiveness surveys? a. motivation, commitment, and work–life balance b. satisfaction empowerment, and engagement c. empowerment, commitment, and advocacy d. engagement, satisfaction, and motivation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 14.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

13. What is one way that an HR department can reduce expenses associated with employees without reducing the headcount? a. increase employees’ efficiencies b. eliminate the costs associated with absenteeism c. purchase technology that improves productivity d. initiate a hiring freeze and a wage freeze ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

14. Which of the following is NOT a measure of efficiency? a. time b. quality c. volume d. cost ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

15. According to a recent study, what percentage increase in customer satisfaction did Sears stores realize with every five percent increase in improved employee attitudes? a.

0.8 percent b.

1.3 percent c.

1.8 percent d.

2.3 percent ANSWER: b POINTS: 1 richard@qwconsultancy.com

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DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

16. What organizational costs would be affected by a smoking cessation program? a. pension costs b. vacation costs c. presenteeism costs d. productivity costs ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

17. If an organization wishes to monitor the costs of turnover, which two costs should it measure? a. lost revenue and productivity b. absenteeism and termination c. replacement and training d. learning time and recruitment ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

18. If HRM is effective, it can cause numerous effects on employee behaviour. What is one such effect? a. improving customer satisfaction b. enhancing employee attrition c. reducing employee shirking d. eliminating high-potentials ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

19. What is considered a zero-sum index when measuring HRM effectiveness? a. growth b. survival c. maturity d. stability ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM cd

20. Why are measures of managerial perceptions necessary when evaluating HRM effectiveness? a. because other measures are time-consuming and meaningless b. because management has a unique, comprehensive perspective c. because management can give rich, qualitative information d. because financial measures can be neither available nor appropriate ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

21. What costs did National Steel track over four years to determine the effectiveness of its safety programs? a. safety incentive payouts and needs assessment costs b. injuries on the job, and safety orientation and training c. cost of accidents and motivation for safe behaviour d. drug and alcohol addiction, and lost-time accidents ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Today 14.1 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

22. Which of the following is NOT an approach to measuring HRM practices? a. activity-based measures b. costing measures c. client satisfaction d. balanced scorecard ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

23. Which of the following is NOT a hurdle to the development of HR metrics? a. applying HR measures consistently and over time b. gaining acceptance of HR measures by stakeholders c. training managers to believe in the usefulness of HR measures d. identifying HR measures that are grounded in research and theory and are practical ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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24. What are some of the necessary costs for human resources accounting? a. training, development, executive salaries, and benefits b. recruiting, selecting, training, and retaining c. technology, outsourcing, selecting, and orientation d. downsizing, training, recruiting, and development ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

25. What is one benefit of benchmarking? a.

It motivates employees to take performance to a higher standard. b.

It stimulates a subjective review of processes, practices, and systems. c.

It provides subjective comparative data with best-in-class organizations. d.

It raises questions and stimulates discussion about better ways of strategizing.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

26. Which of the following is one of the four basic questions used in the balanced HR scorecard? a.

How do employees see us? b.

Can we continue to remain profitable? c.

How do we look to shareholders? d.

Which areas need improvement?

ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

27. Which of the following is NOT a type of mimicry that organizations use to adopt HR practices? a. outcome-based mimicry b. frequency-based mimicry c. trait-based mimicry d. knowledge-based mimicry ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 14.2 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

28. What is a leading indicator in HRM evaluation? cdii

a. an indicator that anticipates management action b. an indicator that predicts or affects the future c. an indicator that explains changes or events d. an indicator that represents current HR trends ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 14.9 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

29. What is the perennial problem in measuring the impact of HRM practices? a. separating cause and effect b. finding financial resources c. overcoming the conservative nature of HRM d. attracting individuals with knowledge ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

30. What percentage is typically added to an HR budget in order to regularly evaluate HR practices? a.

5 percent b.

10 percent c.

15 percent d.

20 percent ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: HR Planning Notebook 14.10 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

31. What are two main ways of measuring HR contributions to organizational performance? a. financial measures and managerial perceptions of effectiveness b. organizational efficiency and productivity c. worker productivity and efficiency d. managerial perceptions of effectiveness and worker productivity ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

richard@qwconsultancy.com

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32. What are three ways to reduce labour expenses by reducing the size of the labour force? a. technology, job design, and outsourcing b. technology, outsourcing, and downsizing c. layoffs, downsizing, and restructuring d. outsourcing, layoffs, and downsizing ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

33. The number of people interviewed to fill a job is an example of what kind of efficiency measurement? a. time b. labour c. volume d. cost ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

34. Why is there interest in measuring HR? a. the need for competitive measurements b. the need to measure human resource productivity c. the need to measure change initiatives d. the need for objective indicators of success to accompany the analysis of HR activities ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

35. What type of costs can be measured by financial expenditures? a. direct b. indirect c. tangible d. intangible ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

36. Which of the following is a part of the 5C model of HRM impact? a. change management b. commitment c. compliance d. communication ANSWER: c POINTS: 1 cdiv

DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

37. What is a problem with measuring client satisfaction? a. low expectations of clients b. conflicting expectations c. use of broad techniques d. use of critical incident methods ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

38. What are two of the main employee attitudes that are measured in HRM effectiveness surveys? a. initiative and satisfaction b. satisfaction and collaboration c. empowerment and commitment d. engagement and motivation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 14.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

39. What is a typical way of measuring HR activities? a. efficiency measures b. activity-based measures c. productivity measures d. health measures ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

40. There are a number of approaches to measuring the impact of HRM policies and practices. Measuring the cost per hire is an example of what type of measure? a. activity-based measures b. hiring measures c. costing measures d. staffing measures ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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DATE MODIFIED:

9/13/2018 9:09 AM

41. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer satisfaction? a. employee commitment and productivity b. employee satisfaction and engagement c. employee innovation and advocacy d. employee satisfaction and work–life balance ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction-Keeping Score with the Scorecard QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

42. Which of the following is the beginning of the strategic HR planning process? a. assessing and implementing HRM policies and practices b. defining, interpreting, and communicating HRM policies and practices c. aligning HRM programs and policies with organizational goals d. reviewing and evaluating how HRM programs and policies are performing ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

43. What term best defines the collection and analysis of facts and statistics for reference or analysis? a. performance metric b. analytics c. data d. hr analytics ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

44. What are two types of evidence that Enbridge Gas Distribution measures to determine overall customer satisfaction? a. employee commitment and high levels of productivity b. employee creativity and high levels of innovation c. employee leadership succession and high levels of alignment to company goals d. employee satisfaction and high levels of employee efficiency ANSWER: c POINTS: 1 DIFFICULTY: Moderate REFERENCES: Introduction-Keeping Score with the Scorecard QUESTION TYPE: Multiple Choice HAS VARIABLES: False cdvi

DATE CREATED: DATE MODIFIED:

9/13/2018 9:09 AM 9/13/2018 9:09 AM

45. What term best defines the process of measuring an organization’s behaviour, activities, and performance? a. performance metrics b. analytics c. workforce analytics d.

HR analytics ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

46. What is an evidence-based approach for making better decisions about employees and HR policies, using a variety of tools to report HR metrics and to predict outcomes of HR programs? a. performance analytics b.

HR analytics c. data analytics d. workforce analytics ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

47. There is growing interest in measuring HR. What is this interest fuelled by? a. the need for competitive measurements b. business improvement efforts across organizations c. the need to measure human resource productivity d. the need for subjective and objective indicators of HR activities ANSWER: b POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

48. What term best defines how HR metrics, such as turnover and employee engagement, are used to describe the workforce? a. workforce analytics b.

HR analytics c. analytics d. performance metric ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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49. There is growing interest in measuring HR. What is this interest fuelled by? a. attempts to measure competitive advantage b. attempts to position HR as a strategic partner c. attempts to measure change initiatives d. attempts to evaluate HR activities ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

50. What are three ways to reduce labour expenses by reducing the size of the labour force? a. restructuring, outsourcing, and downsizing b. technology, rightsizing, and downsizing c. technology, layoffs, and downsizing d. technology, outsourcing, and downsizing ANSWER: d POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

51. Which of the following is a cost-efficiency measure? a. time to process compensation and benefits b. ratio of compensation expense to total operating expense c. number of training days and number of employees trained d. number of interviews per selection ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

52. What term best defines the discovery, interpretation, and communication of meaningful patterns in data? a. performance metric b. analytics c. workforce analytics d.

HR analytics ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: Workforce Analytics QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

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53. Which of the following is a volume efficiency measure? a. benefit cost per employee covered b. ratio of benefits expense to total operating expense c. ratio of filled positions to authorized positions d. cost per trainee per program ANSWER: c POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

54. What are two main employee attitudes that are measured in HRM effectiveness surveys? a. engagement, advocacy, and motivation b. satisfaction, empowerment, and engagement c. empowerment, commitment, and advocacy d. motivation, commitment, and work–life balance ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: HR Planning Notebook 14.4 QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

55. Which of the following is a passive measure of employee contentment with little relationship to performance? a. satisfaction b. motivation c. fulfillment d. engagement ANSWER: a POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

56. Which of the following is a measure that probes whether employees feel stimulated in their role and are driven to meet work and organizational goals? a. empowerment b. commitment c. engagement d. motivation ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

57. Which of the following is a response time efficiency measure? richard@qwconsultancy.com

cdix

a. time between requisition and filling of position b. processing costs per benefit claim c. administration costs per benefit claim d. cost per training day ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

58. Which of the following is an employee attitude measure of their alignment with the strategy, objectives, and values of the organization? a. commitment b. engagement c. empowerment d. satisfaction ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

59. Which of the following is a measure of high employee motivation, commitment, and advocacy? a. empowerment b. engagement c. motivation d. satisfaction ANSWER: b POINTS: 1 DIFFICULTY: Easy REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

60. Counting the number of employees completing training is an example of what type of measure? a. activity-based measure b. costing measure c. client satisfaction measure d. employee satisfaction measure ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Multiple Choice HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

61. Many HR departments were originally set up because of the need to comply with employment legislation and standards. a.

True b.

False ANSWER: True cdx

POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

62. HR professionals are resistant to measuring their work because they have limited knowledge of measurement models and limited skills of measurement ratios. a.

True b.

False ANSWER: False RATIONALE: (limited skills of measurement design) POINTS: 1 REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

63. Indirect costs are the hard costs that can be measured by expenditures. a.

True b.

False ANSWER: False RATIONALE: (direct costs) POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

64. Kim has to move to another city. Kim has decided to compare and contrast different moving companies in terms of their charges and the times that they are available. Kim is conducting an informal utility analysis. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

65. By focusing on the alignment of HR practices with organizational strategy, a company will achieve greater performance and fit than by focusing on best practices and benchmarking. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM richard@qwconsultancy.com

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66. An audit is a measurement method that assesses progress against plan. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

67. Corporate scorekeeping allows organizations to make a plan that fits organizational strategy. a.

True b.

False ANSWER: False RATIONALE: (make adjustments to reach organizational goals) POINTS: 1 REFERENCES: Keeping Score with the Scorecard QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

68. Direct costs are harder to measure than indirect costs. a.

True b.

False ANSWER: False RATIONALE: (reverse) POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

69. With respect to the HR scorecard, deliverables should be linked to strategy. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

70. Most organizations do undertake the evaluation of HRM effectiveness because the problems of measurement are difficult to resolve. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices cdxii

QUESTION TYPE: HAS VARIABLES: DATE CREATED: DATE MODIFIED:

True / False False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

71. There are three ways to reduce labour expenses by reducing the size of the labour force: technology, outsourcing, and mergers. a.

True b.

False ANSWER: False RATIONALE: (technology, outsourcing, and downsizing) POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

72. HR can affect the probability of survival of a new venture by as much as 32 percent. a.

True b.

False ANSWER: False RATIONALE: (22 percent) POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

73. Return on investment is a key financial ratio computed by an organization to determine its relative success in achieving its goals. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

74. There are three typical measures for efficiency: time, quality, and cost. a.

True b.

False ANSWER: False RATIONALE: (time, volume, and cost) POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

richard@qwconsultancy.com

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75. Organizational survival is the first measure of effectiveness and is considered a “life-or-death” index. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

76. Benchmarking enhances organizational performance by establishing standards against which processes, products, and performance can be compared and improved. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

77. There are four sources of benchmarking partners: internal, competitive, sector, and external. a.

True b.

False ANSWER: False RATIONALE: (internal, competitive, sector, and best-in-breed) POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

78. Efficiency is defined as the results achieved compared to resource inputs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

79. Sarbanes-Oxley requirements force HR to provide information about executive compensation, pension plans, and employee benefits. a.

True b.

False ANSWER: False RATIONALE: (not employee benefits but rather whistle-blower protection) POINTS: 1 REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: True / False cdxiv

HAS VARIABLES: DATE CREATED: DATE MODIFIED:

False 9/13/2018 9:09 AM 9/13/2018 9:09 AM

80. Measuring and benchmarking HR activities will result in the fulfillment of management-by-objectives. a.

True b.

False ANSWER: False RATIONALE: (will result in continuous improvements) POINTS: 1 REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

81. The HR profession is like the accounting profession because they both rely on generic measures and principles. a.

True b.

False ANSWER: False RATIONALE: (unlike the accounting profession) POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

82. The costs of turnover include termination, replacement, reduced customer satisfaction, and time for a new employee to become productive. a.

True b.

False ANSWER: False RATIONALE: (not reduced customer satisfaction but rather loss of revenue) POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

83. The 5C model of HRM impact includes five areas for evaluating HRM: compliance, client satisfaction, culture management, cost control, and commitment. a.

True b.

False ANSWER: False RATIONALE: (not commitment but rather contribution) POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

richard@qwconsultancy.com

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84. A balanced scorecard is a measure that can enhance organizational performance by establishing standards against which processes, products, and performance can be compared and improved a.

True b.

False ANSWER: False RATIONALE: (Benchmarking) POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

85. HR analytics is an evidence-based approach for making better decisions about employees and HR policies, using a variety of tools to report HR metrics and to predict outcomes of HR programs. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

86. The goal of surveying clients is to identify gaps between their expectations and their satisfaction. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

87. Attitudes in an organizational context can be defined as perceptions or opinions about organizational characteristics. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

88. Workforce analytics is an evidence-based approach for making better decisions about employees and HR policies, using a variety of tools to report HR metrics and to predict outcomes of HR programs. a.

True b.

False ANSWER: False RATIONALE: (HR analytics) POINTS: 1 cdxvi

REFERENCES: Workforce Analytics QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

89. If employee morale drops, management can expect to see customer satisfaction levels drop in about six months. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

90. Attitudes, in an organizational context, can be defined as perceptions or opinions about organizational characteristics. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

91. There are two ways of measuring contribution: financial measures and measures of managerial perceptions of effectiveness. a.

True b.

False ANSWER: True POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

92. An example of a costing measure is the number of employees hired. a.

True b.

False ANSWER: False RATIONALE: (activity-based measure) POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

93. An example of an activity-based measure is the cost of the training program. richard@qwconsultancy.com

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a.

True b.

False ANSWER: False RATIONALE: (costing measure) POINTS: 1 REFERENCES: How HR Contributes to Organizational Performance QUESTION TYPE: True / False HAS VARIABLES: False DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

94. Identify and describe three different approaches to measuring HRM practices.

ANSWER: ∙ Cost–Benefit Analysis: examines the relationship between the costs of the program and its benefits. Direct costs are those that are used to implement the program, such as the cost of selection tests or training materials. Indirect costs are those that the organization absorbs, such as the employee’s time away from work to attend training. ∙ Utility Analysis: a method of determining the gain or loss that results from different approaches. It calculates, in dollar terms, the costs and probable outcomes of decisions that assist HR managers to make decisions between programs. ∙ Benchmarking or Auditing: an audit is a measurement method that assesses progress against a plan. Benchmarking is an organized method for collecting data that can be used to improve organizational operations, through the comparison with other operations.

POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

95. The Society for Human Resource Management identifies nine major reasons why it is important to measure HRM programs and practices. Briefly state five of these reasons.

ANSWER: ∙ Labour costs are most often a firm’s largest controllable cost. ∙ Managers recognize that employees make the difference between success and failure and so good performance can be rewarded objectively. ∙ Organizations have legal responsibilities to ensure compliance with laws governing the employer–employee relationship. ∙ Evaluations are needed to determine which HR practices are effective (and not fads). ∙ Measuring and benchmarking HR activities will result in continuous improvements. Performance gaps can be identified and eliminated. ∙ Audits will bring HR closer to the line functions of the organization. ∙ Data will be available to support resource allocations. ∙ Investors want this information. ∙ HR managers are more likely to be welcomed at the boardroom table and to influence strategy if they use measures to demonstrate the contribution of their function.

POINTS: 1 REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

96. Identify and briefly describe the 5C model of HRM impact.

ANSWER: ∙ Compliance: HR expertise is needed to ensure that organizational practices comply with laws such as employment standards, health and safety, employment equity, etc. cdxviii

∙ Client Satisfaction: Many organizations are tracking their success by measuring client satisfaction. Stakeholders, including internal and external clients, are those people who can influence, or must interact with, the HR department. ∙ Culture Management: Organizations seek to influence employee attitudes through the development of an appropriate culture that will support optimum performance. Evaluation methods include attitude surveys of job satisfaction and commitment. ∙ Cost Control: Costs of employees consist of pay, benefits, absenteeism, and turnover. Reducing the workforce and attempting to maintain productivity through technology can reduce labour costs. Other ways to decrease costs are to increase efficiency and reduce behaviours such as absenteeism, turnover, etc. ∙ Contribution: HRM practices shape the behaviour of employees in the organization and help the organization achieve its goals. Research has shown that HR practices can affect organizational performance in measurable ways.

POINTS: 1 REFERENCES: The Importance of Evaluating HRM QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

97. Briefly describe three methods used to measure client satisfaction.

ANSWER: 1. Informal Feedback: People can simply be asked if they are satisfied with the service. Informal feedback has limited use due to the reluctance of people to give negative feedback.

2. Surveys: Surveys can be used to solicit feedback formally, confidentially, anonymously, and with a larger number of stakeholders.

3. Critical Incident Method: Clients are asked to describe a situation in which the HR department provided assistance that was particularly useful. In addition, they are asked to provide an example of when the assistance was not useful.

POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

98. When evaluating the effectiveness of HRM practices, organizations have the choice of using two approaches: fit or best practice. Briefly describe the difference between the two approaches.

ANSWER: See Figure 14.3 – Two Approaches: Fit or Best Practice on page 389.

Fit Approach: is an evaluation approach that focuses on the alignment of HR practices with organizational strategy.

If they are in good alignment, then there should be corresponding effects seen in the HR outcomes such as employee satisfaction, motivation, productivity, and also the financial criteria such as profitability, added-value for shareholders, growth, etc. It is important also to note that environment scanning is an important first step in the fit approach.

Best Practice: is an evaluation approach that mimics or copies the best practices and benchmarks of other organizations that may or may not be similar to the evaluating organization. From there, these best practices and benchmarks will be factored into the business and HR strategies. Although this is a more generic approach that would be useful if the evaluating organization did not have the expertise to grow its own approach, the relevance to the evaluating organization may not be as useful as the customized fit approach. Using the best practices of one’s competitors might not necessarily support the goals and objectives of the organization.

POINTS: 10 REFERENCES: Figure 14.3 – Two Approaches: Fit or Best Practice QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

richard@qwconsultancy.com

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99. Discuss the three ways HR practices can reduce labour expenses by reducing the size of the labour force.

ANSWER: ∙ Technology: One of the most frequently used ways to cut labour costs is to increase the use of technology. Technology to process benefits claims and pursue e-learning has replaced HR staff, resulting in cost savings of about 30 percent. ∙ Outsourcing: Firms are also outsourcing major activities in order to manage the costs of labour. However, there are detrimental effects of cutting costs in this way. Core talent may be lost and the capacity for innovation diminished.

See Chapter 13 for a more detailed discussion of outsourcing. ∙ Downsizing: Chapter 10 provides an analysis of the processes for restructuring.

POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

100. Identify an organization you are familiar with (such as from your work experience or from your textbook).

Discuss one measure that the organization uses to measure the efficiency of their HR practices. Provide a concrete example. Ensure you define efficiency.

ANSWER: Efficiency is expressed in terms of the results achieved (outputs) in comparison to the resource inputs. Measures of efficiency include the following: ∙ Time (e.g., average time to fill an opening, process a benefits claim) ∙ Volume (e.g., number of people interviewed to fill a job, number of requests processed per employee) ∙ Cost (e.g., cost per training hour or per test).

Cost: ∙ ratio of compensation expense to total operating expense ∙ benefit cost per employee covered ∙ ratio of benefits expense to total operating expense ∙ processing costs per benefit claim ∙ administration costs per benefit claim ∙ cost per training day ∙ cost per trainee per program Volume: ∙ number of training days ∙ number of interviews per selection ∙ ratio of filled positions to authorized positions ∙ percentage of employees with formal performance evaluations ∙ percentage of designated employees Response Time: ∙ time between requisition and filling of position ∙ time to process benefits ∙ time from identifying a training need to program implementation ∙ time to respond to requests by category POINTS: 1 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

101. What does added value mean when measuring the impact of HRM practices?

ANSWER: The following examples help explain the concept of value added: ∙ An activity measure for an HR professional would be the number of people trained. ∙ A performance measure for an HR professional would be the number of trainees who passed the training test or rated the training courses as above average. cdxx

∙ An added-value measure for an HR professional would be the increase in profits, sales, or customer satisfaction, or decrease in complaints, errors, or defects, as a result of the skills learned in the training course.

POINTS: 1 REFERENCES: Approaches to Measuring HRM Practices QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

102. Organizations may use different terms when measuring employee attitudes. Discuss attitude and 2 terms (behaviours) which can be measured through HR culture surveys ANSWER: Attitudes, in an organizational context, can be defined as perceptions or opinions about organizational characteristics.

Organizations use different terms in measuring employee attitudes: • Satisfaction: This is a passive measure of employee contentment with little relationship to performance.

• Motivation: This measure probes whether employees feel stimulated in their role and are driven to meet work and organizational goals. Motivation is strongly related to productivity measures.

• Commitment: A measure of the alignment between the strategy, objectives, and values of the organization, commitment is strongly linked to employee loyalty and customer service excellence.

• Advocacy: This is a measure of whether employees will speak highly of the organization as an employer, and as an organization with products and service. Advocacy is strongly linked to sales growth and employee attraction.

• Engagement: If an employee scores highly on motivation, commitment, and advocacy, then she would be classified as engaged. Engaged employees are more productive, deliver higher customer satisfaction levels, deliver the brand promise more effectively, create stronger growth, and generate higher profits.

POINTS: 10 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

103. Hewitt Associates describes the attitudes of an engaged employee in three simple ways. Describe these three ways.

ANSWER: • Say: Consistently speaks about the organization to co-workers, potential employees, and customers • Stay: Has an intense desire to be a member of the organization • Strive: Exerts extra effort and engages in behaviours that contribute to organizational success.

POINTS: 10 REFERENCES: The 5C Model of HRM Impact QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

104. Discuss the future of HR analytics and its importance to HRM. ANSWER: It is apparent that the numbers that the HR department used to generate (such as number of people trained) now seem as if they come from the Stone Age. Currently, HR professionals are generating data establishing the effectiveness and efficiency of the HR programs. What is trending now is the establishment of units where HR data is tightly linked to operational data, and the data is used to drive programs to meet organizational objectives.

The number and type of data sources will rise and will be used to predict employee behaviour and fully integrated into operational decision making. richard@qwconsultancy.com

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Refer to Table 14.2 for a summary of the current state and the “desired future” state of HR analytics.

With analytical skills, HR professionals will contribute significantly to the success of organizations.

POINTS: 10 REFERENCES: The Future of HR Analytics KEYWORD: QUESTION TYPE: Subjective Short Answer HAS VARIABLES: False STUDENT ENTRY MODE: Basic DATE CREATED: 9/13/2018 9:09 AM DATE MODIFIED: 9/13/2018 9:09 AM

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