Human Resource Management, 12e (Dessler) Chapter 3 The Manager's Role in Strategic Human Resource Management 1) Strategic planning

primarily benefits a firm's managers by ________. A) outlining procedures for firing employees B) creating a hierarchy of decision-makers C) establishing goals to be accomplished D) allo ing employees to pro!ide input ") clarifying the supply chain net ork Ans er# $ "%planation# Strategic planning benefits a firm's managers by establishing the goals that need to be accomplished at e!ery le!el of an organi&ation. A firm's strategic plan directs the ork that occurs ithin a firm. A hierarchy of goals is established from the top of an organi&ation do n ard. Diff# ' (age )ef# *' $hapter# + ,b-ecti!e# 1 Skill# $oncept ') Since most ell-run firms utili&e a hierarchy of goals to guide ma-or decisions. ________ is especially important to managers at e!ery le!el to pre!ent departments from orking at crosspurposes. A) strategic planning B) financial auditing $) employee testing D) employee benchmarking ") annual personnel training Ans er# A "%planation# Successful firms use a hierarchy of goals that are established at the top and trickle do n ard. Such a system enables the strategic plans of a firm to be made clear to each manager and employee. Strategic planning helps guide managers to make decisions in hiring. training. financing. and in!entory that benefit the goals of the firm. Diff# ' (age )ef# *'-*+ $hapter# + ,b-ecti!e# 1 Skill# $oncept

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+) 2hat is the first step in the management planning process3 A) e!aluating the alternati!es B) making forecasts of trends $) implementing a course of action D) setting an objecti e ") comparing options Ans er# D "%planation# 4he first step of any type of plan is to set an ob-ecti!e or a goal. 5aking forecasts of industry trends and comparing options and alternati!es are the second and third steps of the process. "!aluating alternati!es and implementing the plan are the final steps of the planning process. Diff# ' (age )ef# *+ $hapter# + ,b-ecti!e# ' Skill# $oncept 6) 2hich of the follo ing is the most significant difference bet een managerial planning and the basic planning process3 A) e!aluation of alternati!e methods B) comparisons of strengths and eaknesses $) establishment of clear ob-ecti!es D) assessment of long-term goals !) inter"erence "rom corporate hierarchies Ans er# " "%planation# 4he basic planning process is the same in all situations hether planning a career. !acation. or sales techni7ue. 4he planning process in!ol!es e!aluating alternati!es. establishing ob-ecti!es. and assessing goals. 8o e!er. managerial planning is hindered by the hierarchy of a corporation. hich re7uires that plans meet budgetary re7uirements and match the long-term goals of the firm. Diff# + (age )ef# *+ $hapter# + ,b-ecti!e# ' Skill# $oncept

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9) 2hich of the follo ing pro!ides a comprehensi!e !ie of both a firm's current situation and its goals for the ne%t + to 9 years3 A) S2,4 analysis #) business plan $) !alue proposition D) financial plan ") operations plan Ans er# B "%planation# A firm's business plan offers a comprehensi!e !ie of the firm's current situation and its goals for the ne%t + to 9 years. Business plans may include financial plans and operations plans ithin them. and they are also often referred to as long-term or strategic plans. Diff# 1 (age )ef# *+ $hapter# + ,b-ecti!e# + Skill# $oncept :) 4he main contents of a typical business plan include all of the follo ing ";$"(4 ________. A) political "orecast B) business description $) marketing plan D) financial plan ") personnel plan Ans er# A "%planation# 2hile the contents of business plans !ary. the minimum contents typically include a business description. such as o nership details and product descriptions. as ell as marketing. financial. and personnel plans. Business plans might include information about market trends but not political trends. Diff# ' (age )ef# *+ $hapter# + ,b-ecti!e# + Skill# $oncept *) 4he purpose of the marketing plan that is included ithin a business plan is to ________. A) clarify the pro-ected profits of a firm's products B) set long-term ob-ecti!es for a firm's middle managers $) assign measurable goals for a firm's sales team D) speci"$ the "eatures o" a "irm's product or ser ice ") describe the benefits of performing an industry analysis Ans er# D "%planation# 4he marketing plan is the element of a business plan that specifies the nature of a firm's product or ser!ice. such as its !ariety. 7uality. design. and features. 4he marketing plan describes a firm's intended approach to ards the four (s -- product. price. promotion. and place. Diff# + (age )ef# *6 $hapter# + ,b-ecti!e# + Skill# $oncept

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<) 1n order to implement a marketing plan. Apple needs a=n) ________ that ill address its producti!e assets like the factories. machines. and facilities re7uired to manufacture and distribute its popular i(ods. A) balance sheet B) pricing strategy C) operations plan D) income statement ") personnel plan Ans er# $ "%planation# 4he operations or production plan is the element of a business plan that is re7uired before a marketing plan can be implemented. 4he operations plan e!aluates hether Apple has the factories. machines. and facilities needed to manufacture and distribute the anticipated number of i(ods that ill be demanded. 4he personnel plan is an element of the business plan that determines hether the firm has enough human resources. Diff# ' (age )ef# *9 $hapter# + ,b-ecti!e# + Skill# Application >) S5A)4 goals set by managers are ________. A) specific. measurable. aggressi!e. re7uired. and tested B) short-term. moti!ational. attainable. rele!ant. and total $) standardi&ed. manageable. accurate. restricti!e. and tested D) short-term. measurable. aggressi!e. risky. and timely !) speci"ic% measurable% attainable% rele ant% and timel$ Ans er# " "%planation# S5A)4 is an acronym used by e%perienced managers to check hether their goals are effecti!e or not. ?ood goals are described as specific =make clear hat to achie!e). measurable. attainable. rele!ant =in terms of hat you're setting the goal for). and timely =they ha!e deadlines and milestones). Diff# ' (age )ef# *: $hapter# + ,b-ecti!e# 6 Skill# $oncept

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10) )a- and his manager meet for lunch to -ointly set )a-'s 7uarterly sales goals. )a-'s manager ill periodically assess the progress )a- makes to ards those goals. )a- and his manager are most likely participating in ________. A) strategic planning initiati!es B) corporate-le!el strategi&ing C) management b$ objecti es D) human resource arbitration ") -ob instruction training Ans er# $ "%planation# 5anagement by ob-ecti!es =5B,) is a techni7ue that in!ol!es a manager and a subordinate orking together to set goals for the subordinate. 5B, can be done informally. but it is most often used on a formal organi&ation- ide le!el and in!ol!es special forms and regular assessments of an employee's progress. Diff# 1 (age )ef# *: $hapter# + ,b-ecti!e# 6 Skill# Application 11) 2hich of the follo ing is the primary benefit of 5B,3 A) M#& is an e""ecti e method "or determining the relationship bet'een an emplo$ee's goals and the goals o" super isors and subordinates( B) @eedback pro!ided by customers ho participate in an 5B, program enhances a firm's marketing efforts. $) 1mplementing an 5B, program re7uires !ery little time and pro!ides e%tensi!e employee moti!ation. D) 5B, is an informal yet highly effecti!e techni7ue of documenting a firm's long-term goals and ob-ecti!es. ") An 5B, program encourages employee participation during department meetings and company conferences. Ans er# A "%planation# 5anagement by ob-ecti!es =5B,) is an effecti!e method of setting employee goals that align ith the goals of a larger unit. the firm. andAor other employees. 5B, is a simple process that re7uires employee participation. but it is e%tremely time-consuming due to the high demand for documentation. Diff# + (age )ef# ** $hapter# + ,b-ecti!e# 6 Skill# $oncept

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1') A=n) ________ is a firm's method for matching its internal strengths and eaknesses ith e%ternal opportunities and threats to maintain a competiti!e ad!antage. A) strategic plan B) situation analysis $) en!ironmental scan D) S2,4 analysis ") tactical plan Ans er# A "%planation# A strategic plan is a firm's plan for assessing internal strengths and eaknesses ith e%ternal opportunities and threats. 4he essence of strategic planning in!ol!es asking. B2here are e no as a business. here do e ant to be. and ho should e get there3B 5anagers then de!elop specific strategies for taking a firm here it ants to be. Diff# 1 (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept 1+) A course of action that a firm can pursue to achie!e its strategic aims is kno n as a ________. A) !ision B) goal C) strateg$ D) tactic ") mission Ans er# $ "%planation# A strategy is a course of action taken by a firm to achie!e strategic aims. @or e%ample. if CahooD decides it needs to raise money and focus on its applications. one strategy of the firm ould be to sell CahooD Search. 4he !ision is hat a firm anticipates for the future. and the mission addresses the specific business of the firm. Diff# 1 (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept

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16) All of the follo ing are steps in!ol!ed in the strategic management process ";$"(4 ________. A) e!aluating the firm's internal and e%ternal situation B) defining the business and de!eloping a mission $) translating the mission into strategic goals D) crafting a course of action !) o""shoring lo')s*ill jobs Ans er# " "%planation# 4he strategic management process includes se!en different steps. hich include those described in $hoices A. B. $. and D. 2hile offshoring lo -skill -obs may be a strategy for some firms to lo er e%penditures. it is not a specific step in!ol!ed in the strategic management process. Diff# ' (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept 19) 2hat is the first step in the strategic management process3 A) formulating a strategy #) de"ining the current business $) translating a mission into goals D) performing internal and e%ternal audits ") implementing an en!ironmental scan Ans er# B "%planation# 4he first step in the strategic planning process is defining a firm's current business situation. hich in!ol!es assessing hat products are sold. here the products are sold. and ho the products differ from those offered by the competition. 4his step is follo ed by performing internal and e%ternal audits. hich may in!ol!e using an en!ironmental scanning orksheet. A firm ould then formulate a ne mission and translate the mission into strategic goals before de!eloping a strategy to achie!e those goals. Diff# + (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept

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1:) 2hich of the follo ing is a simple guide used to compile rele!ant information about economic. competiti!e. and political trends that may affect a firm3 A) organi&ation chart B) orkforce re7uirement matri% C) en ironmental scanning 'or*sheet D) e%ternal resource system table ") potential globali&ation net ork Ans er# $ "%planation# "n!ironmental scanning orksheets are often used by managers hen e%ternal and internal audits need to be performed as part of the strategic management process. An en!ironmental scanning orksheet pro!ides a simple format for compiling information about political. economic. and competiti!e trends that may affect a company. A S2,4 chart is another tool fre7uently used by managers to assess a firm's strengths. eaknesses. opportunities. and threats. Diff# 1 (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept 1*) 4he primary tool used by managers ho are performing e%ternal and internal audits as part of the strategic management process is the ________. A) B$? matri% B) ES(5 matri% C) S+&T chart D) "(SA"B14 table ") 5B, assessment Ans er# $ "%planation# 4he S2,4 chart is a tool fre7uently used by managers ho are responsible for performing e%ternal and internal audits. During the strategic management process. a S2,4 chart is used to compile and organi&e a firm's strengths. eaknesses. opportunities. and threats. 5B, =management by ob-ecti!es) is a process used for setting goals for an organi&ation. department. or indi!idual. Diff# ' (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept

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1<) 2hich of the follo ing pro!ides a summary of a firm's intended direction and sho s. in broad terms. B hat e ant to becomeB3 A) mission statement B) strategic plan $) code of ethics D) ision statement ") marketing plan Ans er# D "%planation# A firm's !ision statement is a general statement about the intended direction of the firm and hat the business should look like in the future. 1n contrast. a mission statement ans ers the 7uestion B2hat business are e in3B 5anagers use mission statements to address !ertical integration. geographic co!erage. product scope. and competiti!e ad!antage. Diff# 1 (age )ef# <0 $hapter# + ,b-ecti!e# 9 Skill# $oncept 1>) 4he sales director at 2eb5D is calculating annual sales re!enue targets and the number of ne medical-related content pro!iders that the firm needs to maintain a competiti!e ad!antage. 1n hich step of the strategic management process is the sales director in!ol!ed3 A) performing e%ternal and internal audits B) defining the business and its mission C) translating a mission into strategic goals D) e!aluating strategic decisions ") implementing a strategy Ans er# $ "%planation# 4he sales director is in the process of translating the firm's mission. hich is to maintain a competiti!e ad!antage. into strategic goals. hich in this case in!ol!e sales re!enue targets. 4his step is the fourth one in the strategic process. and it occurs after the firm's business and mission ha!e been defined and after audits ha!e been performed. 1mplementation and e!aluation occur after strategic goals are de!eloped. Diff# ' (age )ef# <0 $hapter# + ,b-ecti!e# 9 Skill# Application

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'0) 4he ________ of the $alifornia "nergy $ommission indicates that the organi&ation assesses and acts through public and pri!ate partnerships to impro!e energy systems that promote a strong economy and a healthy en!ironment. A) mission statement B) strategic plan $) code of ethics D) !ision statement ") organi&ational code Ans er# A "%planation# A mission statement addresses the 7uestion. B2hat business are e in3B 5ission statements e%plain the scope of an organi&ation's product or ser!ices. and they may also address issues of !ertical integration. geographic co!erage. and competiti!e ad!antage. 1n this e%ample. the $"$'s scope is impro!ing Benergy systemsB through Bpublic and pri!ate partnershipsB in order to Bpromote a strong economy and a healthy en!ironment.B 1n contrast. a !ision statement addresses an organi&ation's intended direction and plans for the future. Diff# ' (age )ef# <0 $hapter# + ,b-ecti!e# 9 Skill# Application '1) A company's ________ strategy identifies the portfolio of businesses that comprise a firm and the ays in hich these businesses relate to each other. A) functional B) business unit C) corporate)le el D) competiti!e ") departmental Ans er# $ "%planation# 5anagers use three types of strategies for the three different le!els of a company. $orporate-le!el strategy identifies the portfolio of businesses that comprise a firm and ho these businesses relate to each other. 4he ne%t le!el is business unit or competiti!e strategic planning hich addresses building and strengthening the firm's long-term competiti!e position in the marketplace. @unctional or departmental strategic planning focuses on broad acti!ities that each department ithin a firm ill pursue. Diff# 1 (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept

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'') A di!ersification corporate strategy implies that a firm ill ________. A) become an industry's lo -cost leader #) e,pand b$ adding ne' product lines $) reduce the company's si&e to increase market share D) sa!e money by producing its o n ra materials ") increase profits by offering one popular product Ans er# B "%planation# A di!ersification corporate strategy suggests that a firm ill e%pand by adding ne product lines. @or e%ample. (epsi$o has di!ersified o!er the years by adding chips and Euaker ,ats to its product offerings. $onsolidation refers to reducing a firm's si&e. hile concentration implies that a firm ill offer one product or product line. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept '+) 8arley-Da!idson sells a line of boots. helmets. and leather -ackets indicating that the the firm is pursuing hich of the follo ing strategies3 A) cost leadership B) conglomerate di!ersification $) geographic e%pansion D) related di ersi"ication ") hori&ontal integration Ans er# D "%planation# )elated di!ersification means di!ersifying so that a firm's lines of business still possess some kind of fit. 8arley-Da!idson sells apparel orn to ride the motorcycles the firm manufactures. so the firm is in!ol!ed in related di!ersification. $onglomerate di!ersification means di!ersifying into products not related to the firm's current businesses. hich ould be the case if 8arley Da!idson started manufacturing computers or se ing machines. Diff# ' (age )ef# <' AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# : Skill# Application

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'6) Ac7uiring control of competitors in the same or similar markets ith the same or similar products is kno n as ________. A) market penetration B) product de!elopment $) !ertical integration D) geographic e%pansion !) hori-ontal integration Ans er# " "%planation# 8ori&ontal integration occurs hen a firm gains control of competitors in the same or similar markets. 5arket penetration refers to boosting sales of current products ith aggressi!e selling and marketing. (roduct de!elopment is a concentration strategy that in!ol!es impro!ing current products. Fertical integration is a strategy that in!ol!es e%pansion through ra material production or direct sales. Diff# 1 (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept '9) 2inchester )ugs operates a eb site called .buyrugsdirect.com. so 2inchester )ugs is most likely using a strategy of ________. A) consolidation B) conglomerate di!ersification $) geographic e%pansion D) ertical integration ") hori&ontal integration Ans er# D "%planation# A !ertical integration strategy means that a firm e%pands by producing its o n ra materials or in the case of 2inchester )ugs. selling its products directly instead of using a retailer. $onsolidation in!ol!es reducing the si&e of a firm. hile geographic e%pansion in!ol!es taking a business o!erseas. 8ori&ontal integration is a type of concentration strategy that occurs hen a firm ac7uires control of a competitor in the same market. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# Application

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':) 2hich of the follo ing acti!ities most likely indicates that a firm is implementing a !ertical integration strategy3 A) selling unprofitable di!isions B) offshoring lo -skill -obs C) producing ra' materials D) aggressi!ely selling a ne product ") purchasing a competitor's firm Ans er# $ "%planation# Fertical integration strategies are methods used for e%panding a firm that typically include either selling products directly or producing ra materials rather than relying on suppliers. Aggressi!ely selling products and purchasing a competitor's firm are methods in!ol!ed in a concentration strategy. $onsolidation in!ol!es reducing a firm's si&e. hich may re7uire selling unprofitable di!isions. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# Application '*) 4he '00< announcement by Starbucks that it ould be closing appro%imately :00 of its stores suggests the firm as using a ________ strategy. A) consolidation B) di!ersification $) geographic e%pansion D) !ertical integration ") product de!elopment Ans er# A "%planation# Starbucks is trying to reduce its si&e by eliminating some of its stores. so the firm is using a strategy of consolidation. Di!ersification and geographic e%pansion ould in!ol!e e%panding Starbucks ith ne products or opening stores in ne locations rather than closing stores. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# Application

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'<) S eet Geaf 4ea. a 4e%as-based maker of bottled iced tea. is a small but fast-gro ing firm that has gained a loyal follo ing for its use of fresh. organic ingredients in its be!erages. Although be!erage industry e%perts recommended that S eet Geaf replace the organic cane sugar and honey it uses ith less costly high-fructose corn syrup. S eet Geaf refused because of the company's mission to pro!ide a high-7uality. organic be!erage to consumers. 4he 11-year old company has 90 employees. and its products are a!ailable in +0H of the I.S. market. S eet Geaf 4ea recently recei!ed multi-million dollar in!estments hich ill enable the business to e%pand its national presence. 2hich of the follo ing. if true. ould best support the argument that S eet Geaf 4ea should implement a corporate-le!el strategy of market penetration3 A) S eet Geaf 4ea can e%pand its customer base and reduce costs by selling its products directly at S eet Geaf stores. B) S eet Geaf 4ea can de!elop a national name by adding ne product lines. such as organic snack foods and organic coffee. $) S eet Geaf 4ea's marketing research indicates that customers ould purchase the organic be!erages more fre7uently if the prices ere lo er. D) S'eet .ea" Tea can achie e gro'th b$ aggressi el$ selling its be erages in current mar*ets 'here lo$al customers 'ill help boost 'ord)o")mouth( ") S eet Geaf 4ea's competitors primarily focus their marketing and distribution efforts on regional grocery-store chains rather than big bo% national retailers. Ans er# D "%planation# A corporate-le!el strategy of market penetration means that S eet Geaf ould boost sales of its current products by more aggressi!ely selling and marketing in its current markets. Goyal customers ould most likely spread the ord about the be!erage through ordof mouth. $hoice A refers to a strategy of !ertical integration. hile $hoice B in!ol!es a strategy of di!ersification. (rice and competitors' marketing efforts fail to support the argument that S eet Geaf should implement a market penetration strategy. Diff# + (age )ef# <' AA$SB# Analytic Skills $hapter# + ,b-ecti!e# : Skill# $ritical 4hinking

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'>) S eet Geaf 4ea. a 4e%as-based maker of bottled iced tea. is a small but fast-gro ing firm that has gained a loyal follo ing for its use of fresh. organic ingredients in its be!erages. Although be!erage industry e%perts recommended that S eet Geaf replace the organic cane sugar and honey it uses ith less costly high-fructose corn syrup. S eet Geaf refused because of the company's mission to pro!ide a high-7uality. organic be!erage to consumers. 4he 11-year old company has 90 employees. and its products are a!ailable in +0H of the I.S. market. S eet Geaf 4ea recently recei!ed multi-million dollar in!estments hich ill enable the business to e%pand its national presence. 2hich of the follo ing. if true. ould most likely undermine the argument that S eet Geaf 4ea should implement a corporate-le!el strategy of !ertical integration3 A) S'eet .ea" Tea lac*s the "acilities or *no'ledge to produce the ra' ingredients "or its be erages( B) 5arket research suggests that S eet Geaf 4ea customers primarily purchase only one fla!or of tea. $) 5ost loyal customers of S eet Geaf 4ea purchase the be!erage at neighborhood con!enience stores. D) S eet Geaf 4ea has decided to lo er its prices by replacing cane sugar ith corn syrup in some of its be!erages. ") Sugar farmers used by S eet Geaf 4ea ha!e agreed to a fi%ed price for the ne%t 9 years so that the company can keep prices lo . Ans er# A "%planation# A corporate-le!el strategy of !ertical integration ould re7uire S eet Geaf to e%pand by either producing its o n ra materials or selling its products directly. 1f the company lacks the facilities and kno ledge to produce ra materials or the price of sugar is guaranteed to remain stable for 9 years. then !ertical integration is a bad idea. 1f loyal customers purchase the tea at con!enience stores. then selling the product through speciali&ed stores ould not likely be beneficial. Diff# + (age )ef# <' AA$SB# Analytic Skills $hapter# + ,b-ecti!e# : Skill# $ritical 4hinking

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+0) S eet Geaf 4ea. a 4e%as-based maker of bottled iced tea. is a small but fast-gro ing firm that has gained a loyal follo ing for its use of fresh. organic ingredients in its be!erages. Although be!erage industry e%perts recommended that S eet Geaf replace the organic cane sugar and honey it uses ith less costly high-fructose corn syrup. S eet Geaf refused because of the company's mission to pro!ide a high-7uality. organic be!erage to consumers. 4he 11-year old company has 90 employees. and its products are a!ailable in +0H of the I.S. market. S eet Geaf 4ea recently recei!ed multi-million dollar in!estments hich ill enable the business to e%pand its national presence. 2hich of the follo ing. if true. best supports the idea that S eet Geaf 4ea has implemented a competiti!e strategy of differentiation3 A) Je S eet Geaf 4ea customers are initially attracted to the uni7ue labels and logo on the bottles. #) .o$al customers o" S'eet .ea" Tea see* products that are /SDA certi"ied organic despite the associated higher costs( $) ,ther brands of bottled iced tea compete ith S eet Geaf 4ea by offering ne fla!ors at competiti!e prices. D) S eet Geaf 4ea sells both lemonade and teas in a !ariety of fla!ors that appeal to consumers of all ages. ") S eet Geaf 4ea has not raised its prices in se!eral years due to fears of losing regional customers. Ans er# B "%planation# Differentiation is a business-le!el strategy that occurs hen a firm seeks to be uni7ue in its industry along dimensions that are idely !alued by buyers. S eet Geaf has de!eloped a customer base among indi!iduals ho only buy organic products and are illing to pay more for them. so it has differentiated itself from other be!erage firms. Diff# + (age )ef# <' AA$SB# Analytic Skills $hapter# + ,b-ecti!e# : Skill# $ritical 4hinking +1) A company's ________ strategy identifies ho to build and strengthen the business's longterm competiti!e position in the marketplace. A) functional B) economic $) corporate-le!el D) hori&ontal !) competiti e Ans er# " "%planation# A business-le!el or competiti!e strategy identifies ho to build and strengthen the business's long-term competiti!e position in the marketplace. @or e%ample. the competiti!e strategy identifies ho 2algreens ill compete ith $FS or ho 8onda ill compete ith 4oyota. Diff# 1 (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept
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+') 2hich of the follo ing refers to any factors that allo a company to differentiate its product or ser!ice from those of its competitors to increase market share3 A) functional strategy #) competiti e ad antage $) distincti!e competence D) competiti!e focusers ") related di!ersification Ans er# B "%planation# A competiti!e ad!antage refers to the factors that allo a firm to differentiate its product or ser!ice from competitors to gain market share. 5anagers aim to achie!e competiti!e ad!antages for each of their businesses through cost leadership. differentiation. and focus. Diff# 1 (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept ++) A company's business-le!el strategy identifies the ________. A) 'a$s to build and strengthen a "irm's long)term competiti e position in the mar*etplace B) tools for di!ersifying a business portfolio through the ac7uisition of a multi-national enterprise $) specific courses of action that each department ill pursue to help a firm accomplish its !ision D) means to becoming a lo -cost leader ithin a highly competiti!e industry ") ays to car!e out a market niche in order to compete for high-end customers Ans er# A "%planation# A competiti!e or business-le!el strategy identifies ho a firm ill build and strengthen its competiti!e position in the marketplace. such as ho 2al-5art ill compete ith 4arget. Becoming a lo -cost leader in an industry or car!ing out a market niche are t o types of competiti!e strategies often used by firms. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept

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+6) $ompanies like @errari are kno n as ________ because they car!e out a market niche and compete by pro!iding a product that customers can attain in no other ay. A) cost leaders #) "ocusers $) !isionaries D) market leaders ") complementary competitors Ans er# B "%planation# @ocusers is a term used to describe firms that car!e out market niches and compete by pro!iding uni7ue products or ser!ices. @errari pro!ides customers ith a uni7ue automobile that is not readily a!ailable any here else. Diff# 1 (age )ef# <' $hapter# + ,b-ecti!e# : Skill# Application +9) 2hich of the follo ing strategies identifies the broad acti!ities that each department ill pursue in order to help a business attain its competiti!e goals3 A) competiti!e B) business-le!el $) corporate-le!el D) consolidation !) "unctional Ans er# " "%planation# @unctional strategies apply to the acti!ities performed ithin each department of a firm in an effort to accomplish competiti!e goals. "ach department's functional strategy should correlate ith the business-le!elAcompetiti!e strategy. @or e%ample. a firm that has a competiti!e strategy related to impro!ing product 7uality ould lead to raised hiring standards and increased personnel training and testing. Diff# ' (age )ef# <+ $hapter# + ,b-ecti!e# : Skill# $oncept

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+:) A firm's functional strategies identify the broad acti!ities that each ________ ill pursue in order to help the firm accomplish its competiti!e goals. A) board member B) supplier C) department D) e%ecuti!e ") employee Ans er# $ "%planation# @unctional strategies stem from a firm's competiti!e strategies. and they identify the acti!ities that each department ithin a firm ill pursue in order to help a business accomplish its competiti!e goals. Departments such as manufacturing. sales. and human resource management ould be gi!en directi!es that correspond ith a firm's business-le!el strategy. Diff# 1 (age )ef# <+ $hapter# + ,b-ecti!e# : Skill# $oncept +*) Strategic planning e%pert 5ichael (orter uses the term ________ to describe ho a firm's departmental strategies and competiti!e aims should align for the greatest impact. A) strategic ob-ecti!es B) !isionary strategy $) !ertical strategy D) strategic management !) strategic "it Ans er# " "%planation# Strategic fit is a term coined by strategic planning e%pert 5ichael (orter to describe the concept that each department's strategy should fit the parent business's competiti!e aims. Departmental acti!ities should be de!eloped that match the goals of the firm. Diff# 1 (age )ef# <+ $hapter# + ,b-ecti!e# : Skill# $oncept

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+<) All of the follo ing are roles that departmental managers ould most likely ha!e in the strategic planning process ";$"(4 ________. A) assisting top managers in de!ising a strategic plan B) de!eloping functional. departmental plans $) implementing functional. departmental plans D) deciding the businesses in 'hich a "irm 'ill be in ol ed ") pro!iding input to top management about industry trends Ans er# D "%planation# Deciding the businesses in hich a company ill be in!ol!ed and on hat basis a company ill compete are strategic decisions left to top management. 8o e!er. departmental managers pro!ide top managers ith important information such as industry and product trends that assist top managers ith their de!elopment of a strategic plan. Departmental managers are directly in!ol!ed ith de!eloping and implementing functional plans during the strategic planning process. Diff# ' (age )ef# <+-<6 $hapter# + ,b-ecti!e# : Skill# $oncept +>) "%porting -obs from de!eloped countries to countries ith lo labor force costs is kno n as ________. A) freelancing B) unioni&ing C) o""shoring D) integrating ") net orking Ans er# $ "%planation# ,ffshoring is the term used to describe the practice of e%porting -obs from de!eloped countries to countries here labor and other costs are lo er. ,ffshoring occurs hen a computer manufacturer sets up customer call centers in 1ndia or builds manufacturing facilities in $hina. ,ffshoring is becoming an increasingly popular competiti!e strategy. Diff# 1 (age )ef# <9 $hapter# + ,b-ecti!e# : Skill# $oncept

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60) @ormulating and e%ecuting human resource policies and practices that produce the employee competencies and beha!iors a company needs to achie!e its strategic aims is kno n as ________. A) strategic human resource management B) human resource performance systems $) strategic human resource metrics D) high-performance personnel management ") personnel management by ob-ecti!es Ans er# A "%planation# Strategic human resource management is the term for formulating and e%ecuting human resource policies and practices that produce the employee competencies and beha!iors the company needs to achie!e its strategic aims. 4he idea behind strategic human resource management is to produce the employee skills and beha!iors that a company needs to achie!e its strategic aims. Diff# 1 (age )ef# <: $hapter# + ,b-ecti!e# * Skill# $oncept 61) 4he primary purpose of strategic human resource management is to ________. A) de!elop human resource policies that align ith the industry standard #) lin* a compan$'s strategic plan 'ith its human resource strategies $) create stringent appraisal systems that highlight employee eaknesses D) eliminate bonuses for top management and distribute the cost sa!ings among subordinates ") use offshoring to reduce human resource costs and to initiate globali&ation Ans er# B "%planation# Strategic human resource management is intended to link a firm's strategic plan ith its human resource strategies. 2hen creating human resource management policies and acti!ities. a manager needs to produce the employee skills and beha!iors that the firm re7uires to accomplish its strategic plan. Diff# + (age )ef# <: $hapter# + ,b-ecti!e# * Skill# $oncept

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6') 1n order to generate the desired orkforce skills. competencies. and beha!iors that a firm needs to achie!e its strategic goals. human resource management must first de!elop ________. A) 8) consultants #) HR strategies $) 8) databases D) employee cultures ") company norms Ans er# B "%planation# 8) strategies refer to the 8) policies and practices maintained by a firm. Such strategies are necessary to produce the desired orkforce skills. competencies. and beha!iors that a firm needs to achie!e its strategic goals. Diff# ' (age )ef# <: $hapter# + ,b-ecti!e# * Skill# $oncept 6+) 2hich of the follo ing most likely ser!es as the basis for the 8) strategies de!eloped by the ma-ority of firms3 A) mission statements B) potential strengths $) super!isory ob-ecti!es D) competiti!e ad!antages !) 'or*"orce re0uirements Ans er# " "%planation# 4he orkforce re7uirements of the firm guide the policies and practices implemented by the 8) department. Such 8) strategies help produce the desired orkforce ith the skills. competencies. and beha!iors needed by the firm . Diff# ' (age )ef# <: $hapter# + ,b-ecti!e# * Skill# $oncept 66) 2hich of the follo ing is the final step in the strategic human resource management process3 A) formulating 8) policies and practices B) identifying a firm's orkforce re7uirements $) formulating an effecti!e business strategy D) de eloping detailed HR scorecard measures ") testing current employees for skills and kno ledge Ans er# D "%planation# 4he final step in the strategic human resource management process is de!eloping detailed 8) scorecard measures to determine hether the 8) strategies are aligning ith the business strategies of the firm. 4he scorecard helps 8) assess hether orkforce re7uirements are being met. Diff# ' (age )ef# <* $hapter# + ,b-ecti!e# * Skill# $oncept
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69) 8uman resource strategies are the ________ used to support a firm's strategic goals. A) !isions and ob-ecti!es #) policies and practices $) missions and goals D) plans and e!aluations ") theories and tools Ans er# B "%planation# 8uman resource strategies are the policies and practices de!eloped to support the employee competencies and beha!iors that a firm needs to accomplish its strategic aims. @or e%ample. if a business stri!es to de!elop a reputation for being ser!ice-oriented. then its 8) policies and practices ould include training employees about ho to sho care and compassion to ards customers. Diff# 1 (age )ef# <* $hapter# + ,b-ecti!e# * Skill# $oncept 6:) As ith many failed mergers and ac7uisitions. the Bank of America ac7uisition of 5errill Gynch as unsuccessful because of problems ith ________. A) technology B) financing $) geography D) personnel ") stock prices Ans er# D "%planation# 4he most cited reason for failed mergers and ac7uisitions is personnel problems rather than financial or technical issues. @ailure to prepare and train employees of both companies for a merger or ac7uisition may lead to employee resistance. mass e%its of high7uality employees. and declining morale and producti!ity. 1n the case of Bank of America. do&ens of 5errill managers 7uit ithin ' months of the ac7uisition. Diff# ' (age )ef# <> $hapter# + ,b-ecti!e# * Skill# Application

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6*) 2hich of the follo ing best e%plains the increased success of mergers and ac7uisitions in recent years3 A) impro!ements in ireless communication technology B) union support of employee rights in multiple industries $) fe er restrictions regarding corporate globali&ation D) federal legislation regarding employee ages and rights !) consistent in ol ement o" human resource management Ans er# " "%planation# Since '000. human resource managers ha!e played greater roles during the merger and ac7uisition process. As a result. almost <0H of recent mergers and ac7uisitions ha!e had satisfactory results. @irms are no utili&ing their 8) managers early in the 5KA process in order to ease employee concerns and to foster a spirit of cooperation. Diff# ' (age )ef# <> $hapter# + ,b-ecti!e# * Skill# $oncept 6<) During a merger or an ac7uisition. due diligence re!ie s performed by human resource teams are most likely to assess all of the follo ing ";$"(4 ________. A) accounting procedures B) organi&ational culture $) employee compensation D) employee benefits ") labor relations Ans er# A "%planation# 8) teams perform due diligence re!ie s during mergers and ac7uisitions to assess !arious aspects of the t o firms that directly affect employees. 8) managers ill re!ie things like organi&ational culture and structure. employee compensation and benefits. labor relations. pending employee litigation. human resource policies and procedures. and key employees. Accounting procedures are less likely to be assessed. Diff# ' (age )ef# <> $hapter# + ,b-ecti!e# * Skill# $oncept

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6>) 2hich of the follo ing is the most important human resource issue to address during the first fe months of a merger3 A) inter!ie ing and hiring lo -le!el managers B) modifying benefits packages C) identi"$ing and retaining *e$ talent D) modifying employee pay grades ") eliminating annual employee re!ie s Ans er# $ "%planation# 1dentifying and retaining key talent is critical during the early stages of a merger or ac7uisition. Successful mergers call for 7uality employees. so it is important that 8) identifies the best people in an organi&ation and orks to retain them. During the early months of an 5KA. choosing top management teams. communicating changes ith employees. and aligning the t o cultures are priorities. Details such as benefits. compensation. and re!ie s are less important to address ithin the first fe months. Diff# ' (age )ef# <>->0 $hapter# + ,b-ecti!e# * Skill# $oncept 90) All of the follo ing are ser!ices that human resource consulting companies pro!ide during mergers and ac7uisitions ";$"(4 ________. A) aligning compensation programs #) o erseeing database reco er$ s$stems $) de!eloping change management plans D) designing and implementing staffing models ") managing employee communications strategies Ans er# B "%planation# 8uman resource consulting companies are often hired by firms during mergers and ac7uisitions to manage communication. design staffing models. de!elop management plans. and align compensation programs. 8) consulting companies focus only on personnel-related issues. and they are less likely to become in!ol!ed in technology issues like database integration. Diff# ' (age )ef# >0 $hapter# + ,b-ecti!e# * Skill# $oncept

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91) 2hich of the follo ing is a strategic planning tool that sho s the Bbig pictureB of ho each department's performance contributes to achie!ing the company's o!erall strategic goals3 A) 8) audit B) strategic plan $) digital dashboard D) strateg$ map ") 8) scorecard Ans er# D "%planation# 4he strategy map sho s the Bbig pictureB of ho each department's performance contributes to achie!ing the company's o!erall strategic goals. Strategy maps help managers understand the role their departments play in e%ecuting a firm's strategic plan. 8) scorecards and digital dashboards are other tools used by managers to help translate a firm's broad strategic goals into specific 8) policies. Diff# 1 (age )ef# >0 $hapter# + ,b-ecti!e# < Skill# $oncept 9') 2hich of the follo ing refers to a process for assigning financial and nonfinancial goals to the 8) management-related chain of acti!ities re7uired for achie!ing the company's strategic aims and for monitoring results3 A) strategy map #) HR scorecard $) internal auditing D) 8) feedback scale ") digital dashboard Ans er# B "%planation# 4he 8) scorecard is a process for assigning financial and nonfinancial goals to the 8) management-related chain of acti!ities re7uired for achie!ing the company's strategic aims and for monitoring results. 4he basic idea behind an 8) scorecard is to 7uantify the strategy map hich is often accomplished ith the use of specialty scorecard soft are. Diff# 1 (age )ef# >1 $hapter# + ,b-ecti!e# < Skill# $oncept

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9+) A ________ presents a manager ith desktop graphs and charts that illustrate here the company stands on metrics from the 8) scorecard process. A) strategy map B) 8) benchmark $) business plan D) scanning orksheet !) digital dashboard Ans er# " "%planation# 4he digital dashboard is comprised of desktop graphs and charts that illustrate here the company stands on metrics from the 8) scorecard process. A digital dashboard on a computer usually displays real-time trends for strategy map acti!ities hich enable managers to take correcti!e action. Diff# 1 (age )ef# >1->' $hapter# + ,b-ecti!e# < Skill# $oncept 96) 4he concise measurement system used by companies to sho the 7uantitati!e standards the firm uses to measure 8) acti!ities. employee beha!iors resulting from the acti!ities. and the strategically rele!ant organi&ational outcomes of those employee beha!iors is called a=n) ________. A) e!aluation system #) HR scorecard $) appraisal system D) e!aluation benchmark ") annual report Ans er# B "%planation# 5anagers use 8) scorecards to 7uantify the relationships bet een 8) acti!ities. resulting employee beha!iors. and resulting firm- ide strategic outcomes and performance. 8) scorecards 7uantify the strategy map. Diff# 1 (age )ef# >1 $hapter# + ,b-ecti!e# < Skill# $oncept

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99) 2hich of the follo ing is used to manage employee performance and to align all employees ith the key ob-ecti!es a firm needs to achie!e its strategic goals3 A) functional planning system #) HR Scorecard $) annual 8) benchmarks D) high performance ork system ") 5B, format Ans er# B "%planation# 8) scorecards are used to manage employee performance and to align all employees ith the key ob-ecti!es a firm needs to achie!e its strategic goals. 4he 8) scorecard process enables managers to assign financial and nonfinancial goals. monitor and assess performances. and 7uickly take correcti!e action. Benchmarking is used to make comparisons ith comparable companies. Diff# 1 (age )ef# >' $hapter# + ,b-ecti!e# < Skill# $oncept 9:) 2hich of the follo ing terms refers to a set of human resource management policies and practices that promote organi&ational effecti!eness3 A) management by ob-ecti!es system B) human resource metric $) corporate-le!el strategy D) high)per"ormance 'or* s$stem ") strategic human resource map Ans er# D "%planation# A high-performance ork system is a set of human resource management policies and practices that promote organi&ational effecti!eness. Such 8(2Ss differ from less producti!e systems and are often a distinguishing characteristic of high-performing firms. Diff# 1 (age )ef# >+ $hapter# + ,b-ecti!e# > Skill# $oncept

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9*) 8igh-performance ork organi&ations are most likely characteri&ed by all of the follo ing ";$"(4 ________. A) multi-skilled ork teams B) empo ered front-line orkers $) e%tensi!e training D) labor management cooperation !) commitment to high production rates Ans er# " "%planation# 8igh-performance ork organi&ations are characteri&ed by multi-skilled ork teams. empo ered front-line orkers. e%tensi!e training. labor-management cooperation. commitment to 7uality. and customer satisfaction. Being committed to high production rates is not necessarily a characteristic of an 8(2S. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept 9<) 8igh-performance ork systems ha!e become necessary for I.S. firms due to ________. A) unemployment rates B) federal regulations $) increased minimum ages D) global competition ") cost leadership Ans er# D "%planation# 8igh-performance ork systems became popular in the 1>>0s hen I.S. firms faced increasing competition from global firms. such as 4oyota and 8onda. I.S. firms needed ays to impro!e 7uality. producti!ity. and responsi!eness in order to compete effecti!ely. @ederal regulations. minimum age. and unemployment rates ha!e less if any effect on the need for 8(2Ss. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept

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9>) All of the follo ing practices are most likely implemented by companies ith highperformance ork systems ";$"(4 ________. A) hiring employees based on !alidated selection tests B) filling positions ith internal candidates $) utili&ing self-managing ork teams D) pro!iding e%tensi!e training to employees !) pro iding pa$ increases based on ser ice $ears Ans er# " "%planation# 1n comparison to lo -performance companies. high-performance companies are more likely to use !alidated selection tests hen hiring employees. fill -obs internally. use selfmanaging ork teams. and pro!ide e%tensi!e amounts of employee training. (ay increases are more likely to be based on -ob performance rather than the number of years an employee has orked for a firm. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept :0) )eese "nterprises seeks to fill upper-le!el positions internally hene!er possible and uses !alidated selection tests hen considering e%ternal hires. 4his most likely suggests the company is de!eloping a ________. A) high)per"ormance 'or* s$stem B) scorecard management system $) benchmark D) management by ob-ecti!es strategy ") selection metric Ans er# A "%planation# A firm that attempts to fill upper-le!el positions internally and uses !alidated selection tests for e%ternal candidates is most likely implementing a high-performance ork system. 5etrics and benchmarks are fre7uently used to identify and create the policies and practices of 8(2Ss. but the manner in hich -obs are filled does not necessarily indicate the use of metrics and benchmarks. Diff# + (age )ef# >6 AA$SB# Analytic Skills $hapter# + ,b-ecti!e# > Skill# Application

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:1) 2hich of the follo ing is most likely a true statement about high-performance companies3 A) 5ost employees are members of a local labor union. #) Most emplo$ees recei e regular per"ormance appraisals( $) "mployee turno!er is e%tremely high. D) ,nly e%ecuti!es are eligible for incenti!e pay. ") 4he ma-ority of -obs are filled e%ternally. Ans er# B "%planation# 1n a comparison of lo -performance and high-performance companies. >9H of employees at the high-performance companies recei!ed regular performance appraisals. 2ith high-performance firms. employee turno!er is lo . the ma-ority of the orkforce is eligible for incenti!e pay. and most -obs are filled internally. Diff# + (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# Application :') 2hich of the follo ing terms refers to the 7uantitati!e measure of a human resource management yardstick such as employee turno!er or 7ualified applicants per position3 A) human resource audit B) high-performance ork system C) human resource metric D) management by ob-ecti!es ") human resource scorecard Ans er# $ "%planation# A human resource metric is the 7uantitati!e measure of a human resource management yardstick such as employee turno!er. 7ualified applicants per position. or hours of training per employee. Such metrics are used to assess a firm's 8) performance and to compare one company's 8) performance ith another. Diff# 1 (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept :+) 4he use of human resource metrics is essential for ________. A) management by ob-ecti!es B) emergent employee beha!iors $) corporate-le!el strategies D) related di!ersification !) e idence)based management Ans er# " "%planation# Ising concrete. 7uantifiable e!idence that is a!ailable from human resource metrics is essential to e!idence-based management. "!idence-based management in!ol!es the use of data. facts. analytics. scientific rigor. critical e!aluation. and critically e!aluated researchAcase studies to support human resource management proposals. decisions. practices. and conclusions. Diff# ' (age )ef# >6->9 $hapter# + ,b-ecti!e# > Skill# $oncept
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:6) 4he primary purpose of implementing high-performance practices such as recruiting. screening. and training is to ________. A) foster a strong organi&ational culture B) eliminate the tendency to hire interns for full-time positions $) create management opportunities for ne hires D) de elop a trained and sel")moti ated 'or*"orce ") utili&e benchmarks to compare personnel skills ithin an industry Ans er# D "%planation# 8igh-performance practices generally aspire to help orkers to manage themsel!es. 4he primary purpose of recruiting. screening. training. and other human resource practices is to foster a trained. empo ered. self-moti!ated. and fle%ible orkforce. Diff# ' (age )ef# >9 $hapter# + ,b-ecti!e# > Skill# $oncept :9) 2hich of the follo ing terms refers to the process of comparing and analy&ing the practices of one firm ith those of a high-performing company3 A) benchmar*ing B) di!ersifying $) offshoring D) strategi&ing ") outsourcing Ans er# A "%planation# Benchmarking refers to comparing and analy&ing the practices of high-performing companies to your o n in order to understand hat they do that makes them better. ,ffshoring and outsourcing refer to the act of e%porting -obs from de!eloped countries to countries ith lo labor costs. Di!ersification is a type of corporate strategy that implies a firm ill e%pand by adding ne product lines. Diff# 1 (age )ef# >9 $hapter# + ,b-ecti!e# > Skill# $oncept

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::) According to studies. combining high-performance 8) practices ith modern technology most likely leads to increases in all of the follo ing areas ";$"(4 ________. A) orker producti!ity #) media mentions $) annual sales D) product 7uality ") financial performance Ans er# B "%planation# Studies ha!e sho n that combining modern technology ith high-performance 8) practices leads to increases in producti!ity. 7uality. sales. and financial performance. Being mentioned by the media is a less likely result of a firm achie!ing success than the other options. 5edia mentions are more likely to be the direct result of a firm's aggressi!e marketing. Diff# ' (age )ef# >9 $hapter# + ,b-ecti!e# > Skill# $oncept :*) 2hich of the follo ing refers to an analysis by hich an organi&ation measures here it currently stands and determines hat it has to accomplish to impro!e its 8) functions3 A) 8) methodology B) 8) benchmark $) 8) checklist D) HR audit ") 8) ratio Ans er# D "%planation# An 8) audit is an analysis by hich an organi&ation measures here it currently stands and determines hat it has to accomplish to impro!e its 8) functions. $ompliance audits. best practices audits. strategic audits. and function specific audits are the types of 8) audits used by firms. Benchmarking. hich in!ol!es comparing one firm ith another. is an additional tool used by managers ho take an e!idence-based approach to 8) management. Diff# 1 (age )ef# 106 $hapter# + ,b-ecti!e# > Skill# $oncept

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:<) 2hich of the follo ing audits is used by 8) managers to determine hether a firm is adhering to rele!ant la s and regulations3 A) strategic audit #) compliance audit $) organi&ational audit D) best practices audit ") function specific audit Ans er# B "%planation# $ompliance audits are used to assess the degree to hich a firm is complying ith rele!ant la s and regulations. Best practices audits are used to determine if a firm's recruitment and hiring practices are comparable to those of Bbest practicesB companies. Strategic audits address hether 8) management practices are helping a firm achie!e strategic goals. @unction specific audits focus on a specific 8) area such as compensation or training. Diff# 1 (age )ef# 106-109 $hapter# + ,b-ecti!e# > Skill# $oncept :>) 2hat is the first step of the 8) audit process3 A) planning the audit budget B) attaining top management support $) drafting an audit team D) determining the scope o" the audit ") compiling internal and e%ternal checklists Ans er# D "%planation# 4he first step of the 8) audit process is to decide on the scope of the audit. hich is follo ed by drafting an audit team. and compiling checklists. Lno ing the audit's likely costs. considering the legalities of the audit. and getting top management support are additional steps of the process. Diff# 1 (age )ef# 109 $hapter# + ,b-ecti!e# > Skill# $oncept

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*0) All of the follo ing are commonly used 8) metrics ";$"(4 ________. A) communication e,penses B) absence rate $) cost per hire D) human capital ),1 ") health care costs per employee Ans er# A "%planation# Absenteeism. costs in!ol!ed ith a ne hire. per capital costs of employee benefits. 8) e%penses in relation to total operating e%penses. and return on in!estment for employees are typical categories used in 8) metrics. $ommunication e%penses are less likely to be a factor in assessing the functions. acti!ities. and costs associated ith 8). Diff# 1 (age )ef# 10> $hapter# + ,b-ecti!e# > Skill# $oncept *1) ?oals are initiated by the bottom le!el of an organi&ation according to the hierarchy of goals approach to strategic planning. Ans er# @AGS" "%planation# Inder the hierarchy of goals approach to strategic planning. goals are set at the top of a company by the president or $",. ?oals then flo do n ard to the lo est-ranked managers and employees. Diff# ' (age )ef# *' $hapter# + ,b-ecti!e# 1 Skill# $oncept *') 4he basic steps in the management planning process include setting ob-ecti!es. determining alternati!e courses of action. and e!aluating hich options are best. Ans er# 4)I" "%planation# Setting ob-ecti!es. making forecasts. determining and e!aluating alternati!es. and implementing and e!aluating the final plan constitute the basic steps of the management planning process. Diff# ' (age )ef# *+ $hapter# + ,b-ecti!e# ' Skill# $oncept *+) A firm's marketing plan typically guides e!ery functional department ithin a firm. including sales. manufacturing. and finance. Ans er# @AGS" "%planation# 4he business plan guides functional departments ithin a firm. such as sales. marketing. manufacturing. and finance. A business plan pro!ides a comprehensi!e !ie of a firm's situation today and of its company- ide and departmental goals for the ne%t + to 9 years. Diff# ' (age )ef# *+ $hapter# + ,b-ecti!e# + Skill# $oncept
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*6) 4he pro forma profit and loss statement on a firm's financial plan sho s the re!enue. cost. and profitAloss implications of a firm's marketing. production. and personnel plans. Ans er# 4)I" "%planation# 4he financial plan is one of the elements found in a firm's business plan. and it ser!es to address the financial implications of a firms' marketing. production. and personnel plans. 4he pro forma or pro-ected profit and loss statement indicates a firm's financial bottom line. Diff# ' (age )ef# *9 $hapter# + ,b-ecti!e# + Skill# $oncept *9) "ffecti!e goals set by managers are specific. measurable. attainable. rele!ant. and tentati!e. Ans er# @AGS" "%planation# S5A)4 goals set by managers are specific. measureable. attainable. rele!ant. and timely. ?oals are effecti!e hen employees are clear about hat is e%pected and hy the goals are being set. ?oals should be challenging yet attainable. and they should also ha!e specific deadlines. Diff# ' (age )ef# *9-*: $hapter# + ,b-ecti!e# 6 Skill# $oncept *:) According to goal-setting studies. assigned goals rather than participati!ely set goals consistently result in increased employee performance and reduced employee resistance. Ans er# @AGS" "%planation# Jeither participati!ely set goals nor assigned goals consistently result in higher employee performance. 8o e!er. participation from employees in goal setting usually reduces employee resistance to goals. hich is hy e%perts recommend participation. Diff# ' (age )ef# *: $hapter# + ,b-ecti!e# 6 Skill# $oncept **) A management ob-ecti!es grid ill most likely be used by a department manager to summari&e for subordinates hat their goals are in light of the department's goals. Ans er# 4)I" "%planation# A management ob-ecti!es grid pro!ides a system for organi&ing ho the goals of subordinates do!etail ith those of a department or a firm. 5anagers use management ob-ecti!es grids to clarify goals and to track the progress of subordinates in accomplishing goals. Diff# ' (age )ef# ** $hapter# + ,b-ecti!e# 6 Skill# $oncept

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*<) 4here are se!en steps in the strategic management process. Ans er# 4)I" "%planation# 4he se!en steps in the strategic planning process include defining the business and de!eloping a missionM de!eloping a S2,4 chartM formulating a ne business directionM translating the mission into strategic goalsM formulating strategiesM implementing strategiesM and e!aluating performance. Diff# 1 (age )ef# *< $hapter# + ,b-ecti!e# 9 Skill# $oncept *>) A mission statement is a general statement of a company's intended direction that e!okes emotional feelings in the organi&ation's members. Ans er# @AGS" "%planation# A firm's mission statement ans ers the 7uestion. B2hat business are e in3B 5anagers use mission statements to pinpoint hether and ho the firm ill !ertically integrate. as ell as the firm's product scope. geographic co!erage. and competiti!e ad!antage. Diff# 1 (age )ef# <0 $hapter# + ,b-ecti!e# 9 Skill# $oncept <0) A !ision statement is broader and more future-oriented than a mission statement. Ans er# 4)I" "%planation# 4he !ision statement is a general statement of the firm's intended direction and broadly indicates hat the firm ants to become. Fision statements focus on the future hile mission statements address hat the business does. Diff# ' (age )ef# <0 $hapter# + ,b-ecti!e# 9 Skill# $oncept <1) Strategy implementation focuses more on translating a mission into goals than on the functions of organi&ing. staffing. and controlling. Ans er# @AGS" "%planation# Strategy implementation means translating strategies into action. hich is accomplished by hiring or firing employees. building or closing plants. and adding or eliminating products. Before strategy implementation can occur. managers must translate the firm's mission into strategic goals or ob-ecti!es. Diff# ' (age )ef# <0-<1 $hapter# + ,b-ecti!e# 9 Skill# $oncept

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<') $onsolidation keeps the company's strategy up to date by assessing progress to ard strategic goals and taking correcti!e action as needed. Ans er# @AGS" "%planation# 4he corporate strategy of consolidation in!ol!es reducing the si&e of a company. $oncentration. di!ersification. !ertical integration. and geographic e%pansion are other commonly used corporate strategies. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept <+) 5anagers engage in three le!els of strategic planning. Ans er# 4)I" "%planation# 5anagers use three types of strategies. one for each le!el of the company. 4here is corporate- ide strategic planning. business unit strategic planning. and functional strategic planning. Diff# 1 (age )ef# <1 $hapter# + ,b-ecti!e# : Skill# $oncept <6) $ost leadership. differentiation. and focus strategies are types of corporate-le!el strategies. Ans er# @AGS" "%planation# $ost leadership. differentiation. and focus are types of business-le!el rather than corporate-le!el strategies. 4hese strategies. hich are also kno n as competiti!e strategies. identify ho a firm can build and strengthen its competiti!e position in the marketplace. such as ho (i&&a 8ut ill compete ith (apa Nohn's and ho 4oshiba ill compete ith Dell. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept <9) A !ertical integration strategy means that a firm ill e%pand by adding ne product lines. Ans er# @AGS" "%planation# A !ertical integration strategy means the firm e%pands by producing its o n ra materials or selling its products directly. 1n contrast. a strategy of di!ersification implies that a firm ill e%pand by adding ne product lines. Diff# ' (age )ef# <' $hapter# + ,b-ecti!e# : Skill# $oncept

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<:) 5cDonald's addressed its lagging profitability by first closing stores operating belo its guidelines. 5cDonald's used a consolidation strategy. Ans er# 4)I" "%planation# A strategy of consolidation in!ol!es reducing the company's si&e. 2hen 5cDonald's closes stores that are not-performing up to corporate standards. the firm is implementing a consolidation strategy. Diff# ' (age )ef# <' AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# : Skill# Application <*) A business-le!el strategy is implemented by (i&&a 8ut. Domino's. (apa Nohn's and Gittle $aesar's in their competition ith each other for pi&&a customers. Ans er# 4)I" "%planation# Business-le!el or competiti!e strategies address ho a firm ill build or strengthen its long-term competiti!e position in the marketplace. (i&&a 8ut. Domino's. (apa Nohn's and Gittle $aesar's are competitors in the pi&&a market. and each firm has a business-le!el strategy to indicate ho to compete. Diff# ' (age )ef# <' AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# : Skill# Application <<) ,ffshoring is limited to lo er skilled manufacturing -obs ithin the garment industry. Ans er# @AGS" "%planation# 1n the past. offshoring as limited to lo er skilled manufacturing -obs especially in the garment industry. 8o e!er. firms are increasingly using offshoring to reduce costs and stay competiti!e. so higher skilled -obs are being e%ported to countries here labor costs are lo . Diff# ' (age )ef# <9 $hapter# + ,b-ecti!e# : Skill# $oncept <>) Strategic human resource management means formulating and e%ecuting 8) systems that produce the employee competencies and beha!iors a firm needs to achie!e its strategic aims. Ans er# 4)I" "%planation# Strategic human resource management refers to the policies and acti!ities de!eloped in order to produce the employee skills and beha!iors needed for a firm to achie!e its strategic aims. 5anagement creates a strategic plan that implies certain orkforce re7uirements and policies and practices to produce certain orkforce skills. Diff# ' (age )ef# <: $hapter# + ,b-ecti!e# * Skill# $oncept
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>0) 4he specific human resource policies and practices used to support a firm's strategic goals are kno n as human resource strategies. Ans er# 4)I" "%planation# 8uman resource strategies are the policies and practices de!eloped in order to produce personnel ith the skills. competencies. and beha!iors needed to achie!e a firm's ob-ecti!es. Diff# 1 (age )ef# <* $hapter# + ,b-ecti!e# * Skill# $oncept >1) "mployers ad-ust 8) strategies and policies during significant changes in the economic and financial markets. such as recessions. Ans er# 4)I" "%planation# "mployers ad-ust 8) strategies and policies hen faced ith difficult economic and financial times such as recessions. @or e%ample. hiring free&es. layoffs. and salary reductions are likely to occur among firms during challenging economic times. Diff# ' (age )ef# << $hapter# + ,b-ecti!e# * Skill# $oncept >') 8) scorecards present managers ith desktop graphs and charts of ho a firm's 8) strategies compare to those of other firms in the same industry. Ans er# @AGS" "%planation# A digital dashboard pro!ides managers ith desktop graphs and charts of here a company stands based on the metrics from the 8) scorecard process. An 8) scorecard is a process for assigning financial and nonfinancial goals or metrics to the 8) management-related chain of acti!ities re7uired for achie!ing the firm's strategic aims and for monitoring results. Diff# 1 (age )ef# >1 $hapter# + ,b-ecti!e# < Skill# $oncept >+) According to the I.S. Department of Gabor. high-performance ork organi&ations include multi-skilled ork teams. empo ered front-line orkers. and e%tensi!e training. Ans er# 4)I" "%planation# 8igh-performance ork organi&ations are characteri&ed by multi-skilled ork teams. empo ered front-line orkers. e%tensi!e training. labor-management cooperation. commitment to 7uality. and customer satisfaction. 8igh-performing firms are distinguished from lo -performing firms by their 8) policies and practices that promote organi&ational effecti!eness. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept
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>6) 8uman resource practices. such as hiring based on selection tests. pay raises based on ork performance. and training pro!ided to ne and e%perienced employees. contribute to a company's ability to achie!e high-performance le!els. Ans er# 4)I" "%planation# 8) practices of high-performance firms differ from those of lo -performance firms. 8igh-performance firms typically hire from ithin. use selection tests. tie pay raises to ork performance. and pro!ide all employees ith training. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept >9) $ompanies ith empo ered. highly trained. fle%ible orkforces ha!e a competiti!e ad!antage. Ans er# 4)I" "%planation# @irms that adhere to high-performance 8) practices and ha!e empo ered. highly trained. and fle%ible orkforces gain a competiti!e ad!antage. 4he concept of competiti!e ad!antage refers to the factors that allo a firm to differentiate its products or ser!ices from its competitors to gain market share. and 8) can ser!e as a competiti!e ad!antage. Diff# ' (age )ef# <'. >9 AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# :. > Skill# Synthesis >:) 8igh-performance companies are less likely than lo -performance companies to in!est in costly employee training programs. Ans er# @AGS" "%planation# 8igh-performance firms are more likely to in!est in employee training for both ne and current employees. 8igh-performance companies in!est in their employees in order to de!elop a orkforce that matches the needs of the company. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept >*) 8uman resource metrics are used to assess a firm's 8) performance and to compare one firm's 8) performance ith another firm's. Ans er# 4)I" "%planation# A human resource metric is the 7uantitati!e measure of some human resource management yardstick like employee turno!er. Such metrics can be used to assess a firm's 8) performance and to compare one firm's 8) performance ith that of another firm's. Diff# ' (age )ef# >6 $hapter# + ,b-ecti!e# > Skill# $oncept
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><) 8uman resource managers. department managers. and super!isors influence the number of 7ualified applicants for a position. Ans er# 4)I" "%planation# 8uman resource managers clearly influence aspects such as the number of 7ualified applicants for a position. but line managers play a role in building a high-performance ork system as ell. Department managers and super!isors influence the number of -ob applicants. testing. training. and incenti!es among employees in a firm. Diff# ' (age )ef# >9 $hapter# + ,b-ecti!e# > Skill# $oncept >>) 8uman resource audits and benchmarking are t o critical tools used by managers ho implement an e!idence-based approach to human resource management. Ans er# 4)I" "%planation# 8uman resource audits and benchmarking are t o critical tools for managers using an e!idence-based approach. "!idence-based 8) management uses data. facts. analytics. scientific rigor. critical e!aluation. and case studies to support 8) management proposals. decisions. practices. and conclusions. Diff# 1 (age )ef# 10+ $hapter# + ,b-ecti!e# > Skill# $oncept 100) A strategic audit ould most likely be used by an 8) manager to assess a firm's procedures and practices in regards to employee benefits. Ans er# @AGS" "%planation# A function specific audit ould most likely be used to analy&e a firm's procedures for employee benefits or other specific areas of human resource management like training and de!elopment. Strategic audits are used to assess hether 8) management practices help a firm achie!e its strategic goals by fostering the re7uired employee beha!iors. Diff# ' (age )ef# 106-109 $hapter# + ,b-ecti!e# > Skill# $oncept

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101) 2hy is strategic planning important to managers3 "%plain the importance of setting hierarchical goals. Ans er# Strategic planning is important to managers because in ell-run companies the goals from the !ery top of the organi&ation do n ard should form a more-or-less unbroken chain =or BhierarchyB) of goals. 4hese goals. in turn. should be guiding hat e!eryone does. 5anagement creates a hierarchy or chain of departmental goals. from the top do n to the lo est-ranked managers. and e!en employees. 4hen. if e!eryone does his or her -obOif each salesperson sells his or her 7uota. and the sales manager hires enough good salespeople. and the 8) manager creates the right incenti!e plan. and the purchasing head buys enough ra materialsOthe company and the $", should also accomplish the o!erall. company- ide strategic goals. Cou could therefore say ith great certainty that ithout a clear plan at the top. no one in the company ould ha!e the foggiest notion of hat to do. At best. you'd all be orking at crosspurposes. Diff# ' (age )ef# *'-*+ $hapter# + ,b-ecti!e# 1 Skill# Application 10') Don is a salesperson at Bentsen 5otors. and he has not been meeting his monthly sales 7uota. 1n particular. Don needs to sell more SIFs and trucks. As the sales manager at Bentsen 5otors. you need to de!elop goals for Don using the S5A)4 method. 2hat goals do you set for Don3 2ould it be better for you to tell Don the goals or let him participate in setting the goals3 "%plain your ans er in a short essay. Ans er# "%perienced managers ha!e a simple and effecti!e ay to check hether their goals are good or notOthey use the acronym BS5A)4.B 4hey say good goals are specific =make clear hat to achie!e). measurable. attainableM rele!ant =in terms of hat you're setting the goal for). and timely =they ha!e deadlines and milestones). Don's goals should be stated like this# BDon by the end of this September. ' months from today. you'!e got to sell double the total number of !ehicles you sold in the last ' months. and three-7uarters of those ne !ehicles must be trucks and SIFs.B 4his goal is specific. measurable. probably more attainable. rele!ant. and timely. (articipati!ely set goals do not consistently result in higher performance than assigned goals. nor do assigned goals consistently result in higher performance than participati!ely set ones. But hen =as is usually the case) the participati!ely set goals are more difficult than the assigned ones. participati!ely set goals usually produce higher performance. And of course. participation usually reduces employee resistance. So participation is usually best. 4herefore. Don should participate in setting the goals ith the manager. Diff# + (age )ef# *9-*: AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# 6 Skill# $ritical 4hinking

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10+) 2hat is strategic management3 Gist and e%plain each step in the strategic management process. Ans er# Strategic management is the process of identifying and e%ecuting the organi&ation's mission. by matching the organi&ation's capabilities ith the demands of its en!ironment. 4he steps are as follo s# Step 1# Define the Business and 1ts 5ission - A logical place to start is by defining one's current business. Specifically. hat products do e sell. here do e sell them. and ho do our products or ser!ices differ from our possessi!e3 Step '# (erform "%ternal and 1nternal Audits - 4he ne%t step is to ask. BAre e heading in the right direction3B (rudent managers periodically assess hat's happening in their en!ironments. Cou need to audit the firm's en!ironment. and strengths and eaknesses. Cou can use the en!ironmental scanning orksheet or the S2,4 chart. Step +# @ormulate a Je Direction - 4he 7uestion no is. based on the en!ironmental scan and S2,4 analysis. hat should our ne business be. in terms of three thingsO hat products e ill sell. here e ill sell them. and ho our products or ser!ices ill differ from competitors' products3 Step 6# 4ranslate the 5ission into Strategic ?oals - Je%t. translate the mission. such as !ertical integration. product scope =di!ersity). geographic co!erage. and competiti!e ad!antageOinto strategic goals or ob-ecti!es. Step 9# @ormulate a Strategy to Achie!e the Strategic ?oals - Je%t. the manager chooses strategiesOcourses of actionOthat ill enable the company to achie!e its strategic goals. Step :# 1mplement the Strategy - Strategy implementation or e%ecution means translating the strategies into action. 4he company's managers do this by actually hiring =or firing) people. building =or closing) plants. and adding=or eliminating) products and product lines. Step *# "!aluate (erformance - 4his step in!ol!es assessing strategic decisions since things do not al ays turn out as anticipated. Diff# + (age )ef# *<-<1 $hapter# + ,b-ecti!e# 9 Skill# $oncept 106) "%plain the difference bet een a firm's !ision and its mission. 2hat role does a firm's !ision statement play in corporate and competiti!e strategies3 Ans er# A company's !ision is a general statement of the company's intended direction that sho s in broad terms hat a company ants to become. A !ision statement is future-oriented hile a mission statement is oriented in the present. 5ission statements indicate hat a company is doing right no hile !ision statements are hat a company stri!es to become. A firm's corporate-le!el strategy indicates the portfolio of businesses that comprise a company. hile its competiti!e strategy identifies ho to build a firm's long-term competiti!e position in the marketplace. A firm's !ision is here the firm ants to be in the future and the strategies are the tools used to get the firm to that place. @or e%ample. if a firm's !ision is to pro!ide affordable products to consumers. then its competiti!e strategy ill be cost leadership. Diff# + (age )ef# <0. <' AA$SB# Analytic Skills $hapter# + ,b-ecti!e# 9. : Skill# Synthesis
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109) 1dentify the three le!els of strategic planning and describe the function of each le!el. 2hat is the relationship bet een human resource strategy and a firm's strategic plans3 Ans er# 4he three le!els are corporate-le!el. business-le!el. and functional-le!el strategies. $orporate-le!el strategy identifies the portfolio of businesses that comprise the company and the ays in hich these businesses relate to each other. 4he business-le!el strategy is the ne%t le!el. 1t identifies ho to build and strengthen the business's long-term competiti!e position in the marketplace. 4he lo est le!el is the functional-le!el strategies. @unctional strategies identify the basic course of action that each department ill pursue in order to help the business attain its competiti!e goals. 8) strategies are a type of functional strategy. "!ery company needs its human resource management policies and acti!ities to make sense in terms of its broad strategic aims. Strategic human resource management means formulating and e%ecuting human resource policies and practices that produce the employee competencies and beha!iors the company needs to achie!e its strategic aims. 4he basic idea behind strategic human resource management is simple# 1n formulating human resource management policies and acti!ities. the manager's aim must be to produce the employee skills and beha!iors that the company needs to achie!e its strategic aims. 5anagement formulates a strategic plan. 4hat strategic plan implies certain orkforce re7uirements. ?i!en these orkforce re7uirements. human resource management formulates 8) strategies =policies and practices) to produce the desired orkforce skills. competencies. and beha!iors. @inally. the human resource manager identifies the measures he or she can use to gauge the e%tent to hich its ne policies and practices are actually producing the re7uired employee skills and beha!iors. Diff# + (age )ef# <1-<+. <: $hapter# + ,b-ecti!e# :. * Skill# Synthesis 10:) 1n a brief essay. describe the three types of competiti!e strategies that firms use to achie!e competiti!e ad!antage. Support your ans er ith e%amples of organi&ations that currently use each of the strategies. Ans er# 4he three forms of competiti!e strategies are cost leadership. differentiation. and focus. $ost leadership means offering the lo est prices andAor emphasi&ing lo costs and efficiency as a source of competiti!e ad!antage. 2al-5art is an e%ample of a company pursuing a cost leadership strategy. Differentiation means emphasi&ing a source of difference bet een a company and its competitors. 4he differential ad!antage becomes the source of competiti!e ad!antage. 4arget follo s a differentiation strategy by stressing the sale of more upscale brands than 2al-5art. A focus strategy means that a company pursues a small niche in the market place. @errari follo s this strategy by offering a product that customers can get no other ay. Diff# + (age )ef# <' AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# : Skill# $ritical 4hinking

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10*) 2hat role has offshoring played as a competiti!e strategy3 2hat role does strategic human resource management play in offshoring3 Ans er# ,ffshoring increasingly plays a role in employers' competiti!e strategies. ,ffshoring is the e%porting of -obs from de!eloped countries to countries here labor and other costs are lo er. 8istorically. offshoring in!ol!ed mostly lo er skilled manufacturing -obs as. say. clothing manufacturers chose to assemble their garments abroad. 1ncreasingly. ho e!er. employersO seeking to reduce costs and stay competiti!eOare offshoring thousands of higher skilled -obs. for instance. in financial. legal. and security analysis.4he human resource manager plays a role at each stage of the offshoring decision. but 8)'s main in!ol!ement is usually once the company decides to offshore. hich is hen strategic human resource management comes into play. Strategic human resource management means formulating and e%ecuting human resource policies and practices that produce the employee competencies and beha!iors the company needs to achie!e its strategic aims. 1n regards to employees o!erseas. the human resource management team needs to establish policies go!erning things like compliance ith ethical safety and ork standards. and pay le!els. 4he basic idea behind strategic human resource management is simple# 1n formulating human resource management policies and acti!ities. the manager's aim must be to produce the employee skills and beha!iors that the company needs to achie!e its strategic aims both at home and abroad. Diff# + (age )ef# <9. <: AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# :. * Skill# Synthesis 10<) 1n a brief essay. e%plain ho the strategy map. the 8) Scorecard. and the digital dashboard are used in strategic human resource management. Ans er# 5anagers use the strategy map. the 8) Scorecard. and the digital dashboard to help them translate the company's broad strategic goals into specific human resource management policies and acti!ities. 4he strategy map sho s the Bbig pictureB of ho each department's performance contributes to achie!ing the company's o!erall strategic goals. 1t helps the manager understand the role his or her department plays in helping to e%ecute the company's strategic plan. 5any employers 7uantify and computeri&e the map's acti!ities. and the 8) Scorecard helps them to do so. 4he 8) Scorecard is not a scorecard. 1t refers to a process for assigning financial and nonfinancial goals or metrics to the human resource managementPrelated chain of acti!ities re7uired for achie!ing the company's strategic aims and for monitoring results. 4he saying Ba picture is orth a thousand ordsB e%plains the purpose of the digital dashboard. A digital dashboard presents the manager ith desktop graphs and charts. and so a computeri&ed picture of here the company stands on all those metrics from the 8) Scorecard process. A top manager's dashboard might display on the ($ screen real-time trends for strategy map acti!ities. hich gi!es the manager time to take correcti!e action. Diff# + (age )ef# >0->' $hapter# + ,b-ecti!e# < Skill# Application
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10>) 2hat is a high-performance ork system3 2hat role does strategic human resource management play in high-performance ork systems3 Ans er# A high-performance ork system is a set of human resource management policies and practices that promote organi&ational effecti!eness. A high-performance ork system is hat managers no e%pect from the 8) system. 1t means that the 8) system is designed to ma%imi&e the o!erall 7uality of human capital throughout the organi&ation. Based on ongoing research. firms that use 8(2S practices perform at a significantly higher le!el than those that do not. Strategic human resource management is significant to a high-performance ork system. Strategic human resource management refers to formulating and e%ecuting human resource policies and practices that produce the employee competencies and beha!iors the company needs to achie!e its strategic aims and to ma%imi&e its human resources. 1n formulating human resource management policies and acti!ities. the manager's aim must be to produce the employee skills and beha!iors that the company needs to achie!e its strategic aims. @or 8(2Ss. that most likely means implementing policies and practices regarding selection tests. training. merit increases. and incenti!e pay. Diff# + (age )ef# <:. >+->6 AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# *. > Skill# Synthesis 110) 2hat are human resource metrics3 2hy are human resource metrics important in highperformance ork systems3 Ans er# A human resource metric is the 7uantitati!e measure of some human resource management yardstick such as employee turno!er. hours of training per employee. or 7ualified applicants per position. Cou can use such metrics to assess your o n company's 8) performance. and to compare one company's ith another's. 8uman resource metrics are critical in creating high performance human resource policies and practices. 4his is because they enable managers to benchmark. Benchmarking means comparing and analy&ing the practices of high-performing companies to your o n in order to understand hat they do that makes them better. Diff# ' (age )ef# >6->9 AA$SB# )eflecti!e 4hinking $hapter# + ,b-ecti!e# > Skill# $ritical 4hinking

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