CHAP2.TB - Chapter 2 Formulating a Corporate and Human...

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Chapter 2 Formulating a Corporate and Human Resource Strategy True/False 1. When formulating a corporate strategy, managers must consider several strategic choices. Answer: True Page: 43 Easy 2. Three primary factors that influence strategy formulation are competitor actions, environmental opportunities and threats, and an organization’s internal strengths and weaknesses. Answer: True Page: 43 Difficult 3. Future orientation is not a key concept in the strategy formulation process. Answer: False Page: 44 Easy 4. Strategy is goal oriented, and goals exist from the past. Answer: False Page: 44 Easy 5. Strategy is heavily laden with the personal philosophies and codes of ethics of key decision makers in an organization. Answer: True Page: 44 Moderate 6. Constituent groups are the same as stakeholders. Answer: True Page: 45 Moderate 7. An example of a stakeholder from outside the firm is a supplier. Answer: True Page: 45 Moderate 8. Stakeholders’ interests cause strategy formulators to compromise. Answer: True Page: 46 Difficult
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9. Societal forces do not play a role in the strategy formulation process. Answer: False Page: 47 Difficult 10. Underlying societal forces heavily affect strategy formulation in individual organizations. Answer: True Page: 48 Easy 11. One of the two key strategies for human resource management is decline, where management tends to recruit primarily at the entry level and promote from within. Answer: False Page: 48 Difficult 12. When an organization adopts a political strategy that emphasizes cost cutting, the decision has a profound impact on human resource strategies in all phases of human resource activity. Answer: False Page: 50 Moderate 13. Overall corporate strategy should drive functional, including human resource, strategies. Answer: True Page: 53 Difficult 14. Human resource managers have only recently suffered from the staff- line conflict that tends to arise in many organizations. Answer: False Page: 54 Difficult 15. Human resource managers have long enjoyed the success of being considered both a line and staff function. Answer: False Page: 54 Difficult 16. A company should ensure that people who staff the human resource unit are competent, well trained, and experienced in the various human resource functions. Answer: True Page: 55 Easy 2-2
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17. Line-staff conflict can always be completely eliminated Answer: False Page: 56 Moderate 18. A human resource audit often discovers unanticipated results. Answer: True Page: 59 Moderate 19. An audit of the turnover rate would involve examining the company image in the community. Answer: False Page: 59 Difficult 20. The formulation of a proper strategy for a particular firm is organization vague. Answer:
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CHAP2.TB - Chapter 2 Formulating a Corporate and Human...

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