Chapter 2—Strategic HR Management and Planning MULTIPLE CHOICE 1. The flawed assumption underlying the creation of the “Job Bank” at GM, Ford and Chrysler in the 1980s was that a. the excess workers could be retrained for new “high tech” positions in the auto plants that would be created as the car manufacturing process was automated. b. the auto unions would trade job training for laid-off workers for reductions in the pension plans for retired auto workers thus reducing the labor cost burden per car. c. the Job Bank would be a temporary benefit to employees who took voluntary severance packages that would be phased out as the manufacturers achieved the optimal workforce size. d. demand for American-made cars would increase and the excess workers could return to their factory jobs. ANS: D PTS: 1 DIF: Challenging REF: p. 35 OBJ: 1 NAT: AACSB Analytic LOC: Strategy TOP: Application 2. ____ refers to organizational use of employees to gain or keep a competitive advantage resulting in greater organizational effectiveness. a. Manpower planning b. Strategic HR management c. HR forecasting d. Operational HR ANS: B PTS: 1 DIF: Easy REF: p. 36 OBJ: 1 NAT: AACSB Reflective Thinking LOC: Strategy TOP: Definitional 3. Which of the following statements is FALSE? a. The organization’s existing employees limit the organization’s choice of strategy. b. Organizations survive and grow by choosing the strategy that will allow them to achieve low costs and innovative products. c. Most competitive strategies depend heavily on the quality of the organization’s human capital. d. Organizations in which the CEO dominates the selection of the organization’s strategy are less successful than organizations in which strategy is developed by a formal committee process. ANS: B PTS: 1 DIF: Challenging REF: p. 35 OBJ: 1 NAT: AACSB Reflective Thinking LOC: Strategy TOP: Conceptual 4. In order to add value to the human capital of the organization, a. HR must have good metrics about the HR side of the business. b. HR managers must be focused on reducing the total cost of labor. c. the HR function must form the interface between the external environment of the organization and its internal environment. d. HR policies and practices should result in the workforce with the minimum quantity and maximum quality needed to achieve productivity goals. ANS: A PTS: 1 DIF: Challenging REF: p. 36
OBJ: 1 NAT: AACSB Reflective Thinking LOC: Creation of Value TOP: Conceptual 5. In order for any organizational strategy to work, the HR strategy must a. align with the “one best way” to achieve worker productivity. b. move beyond the traditional HR focus on effectiveness and efficiency. c.
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