Strategic Management

Transcription

1 Strategic Management 2008 SHRM Post Test An organization decides to develop a corporate citizenship program that gives employees time off tovolunteer at a homeless shelter. A company task force creates a list of goals that the program hopes to accomplish. In which management function is the task force engaged? A. Planning. B. Organizing. C. Coordinating. D. Controlling. 1

2 The correct answer is A. The Planning function involves activities such as setting goals, forecasting, and determining possible actions. The other management functions take place after the planning has been completed. The organizing function involves creating structures and processes to help meet the goals, while the coordinating function involves integrating all activities necessary to meet the goals. A project manager who works to build team norms and foster harmony is assuming which responsibility? A. Informational. B. Interpersonal. C. Conceptual. D. Decisional. i 2

3 The correct answer is B. Interpersonal Responsibilities i include serving as a leader and liaison. Top responsibilities include building team norms and fostering harmony. A project manager would be more inclined to use a PERT chart rather than a Gantt chart when the manager needs to A. Assign particular tasks to team members. B. Monitor the exact time that each step of the project takes. C. Plan the details of the project. D. Show the critical path of a project. 3

4 The correct answer is D. The PERT chart is best used to illustrate the length of a project, which is determined by adding up the time required on the critical path. The Gantt chart lists all activities and the start and stop date for each. Team members can easily see the start and end dates for each activity they are assigned and can track their time on their task. The change process goes more smoothly when A. Senior management announces changes to the employees. B. Employees have input into change alternatives. C. HR is responsible for the change initiative. D. Change is critical to the organization s survival. 4

5 The correct answer is B. If possible, employees should ldbe given the opportunity to discuss change options. This makes it more likely that they will accept whatever decision is made. At the very least, it helps change agents in the organization understand employee issues and reactions and plan forways to dealwith them. Which of the following is the first step in the outsourcing process? A. Define the budget. B. Outline the implementation process. C. Create a request for proposal. D. Conduct a needs analysis. 5

6 The correct answer is D. A needs analysis is always the beginning point when outsourcing a product or service. All potential users of the product or service should have input into defining the goals, expectations, and scope of the product or service. Once this is done, a realistic budget can be established. Which of the following is likely to be a result of continued advances in technology? A. Training will be available only to those with highspeed internet access and voice activated computers. B. Privacy issues will be eliminated by security advances such as iris and fingerprint scans. C. In house software will become increasingly desirable as application service providers become less flexible. D. Electronic signatures will expand the types of transactions that can be done on the web. 6

7 The correct answer is D. The Electronic Signature in Global and National Commerce Act mandates that an electronic signature carries the same weight as a pen and ink signature. This has opened the door to a variety of new types of actions that can be done online. Although training will be increasingly delivered online, it will not necessarily require the most sophisticated system in order to participate. Privacy issues will increase rather than decrease as companies try to determine what employees rights are and whether sophisticated tracking and security procedures violate these rights. Finally, application service providers (ASPs) will be used more frequently for routine tasks such as time and attendance tracking and other administrative tasks that can be done more cost effectively on a subscription basis. Strategic planning starts with an organization s A. Mission i statement. tt t B. Environmental scan. C. Human resources inventory. D. Needs assessment. 7

8 The correct answer is A. Strategic planning begins with a mission statement that articulates who the organization is, what the organization does, and where the company is headed. The mission sets the direction for all other activities. Without this direction, other activities such as needs assessments, inventories, and environmental scans have no direction. Therefore, the first step is to have the board or owners articulate an organization s vision. Which of the following takes both an internal and external snapshot of the organization? A. SWOT analysis. B. Environmental scan. C. Human Resources inventory. D. Human Resources audit. 8

9 The correct answer is A. The SWOT analysis looks at the organization s internal strengths and weaknesses and external opportunities and threats. The environmental scan looks only at external conditions while the human resources inventory and the audit are internally focused. Which of the following is true of short term objectives? A. They create direction and synergy for the organization. B. They establish priorities for allocating resources. C. They must be created before unit strategies can be developed. D. They take the place of action plans. 9

10 The correct answer is B. Short term term objectives specify the milestones that must be reached before long term goals can be met. The short term objectives are focused and specific, and at the point the organization can allocate the resources to meet them. It is important to note that short term objectives do not takethe the place ofactionplans plans, which aredirect outgrowth of short term objectives. Which of the following is typically part of an environmental scan? A. Analysis of the organization s labor contract. B. Analysis of minority employees within the organization. C. Review of internal salary survey data. D. Analysis of unemployment rates. 10

11 The correct answer is D. Environmental scans focusonexternalchangeson changes and attempt to identify and interpret strategic issues that affect the company. D is the only choice with an external focus. The other choices listed all deal with internal activities. Which of the following is true of a balance sheet? A. It includes transactions ti without t a definite dfiit monetary value. B. It indicates the net income of the company. C. It summarizes an organization s assets, liabilities, and equity. D. It measures the difference between the cost to produce a product and the price for which it is sold. 11

12 The correct answer is C. A balance sheet summarizes the financial position of a company at a given time. It lists the assets, liabilities and equity of the organization and includes only transactions measurable in money. Of the four elements associated with marketing, which includes supply chain management? A. Product. B. Place. C. Price. D. Promotion. 12

13 The correct answer is B. Inthe marketing world, place refers to distribution. Placing a product requires marketers to think about how the product gets from the manufacturer to the customer. This process is known as supply chain management. Which of the following is a key responsibility of the operations function within an organization? A. Ensuring that the product is priced profitably. B. Communicating the benefits of the product to customers. C. Deciding which features and benefits will appeal to customers. D. Determining the ability of the company to meet product demand. 13

14 The correct answer is D. Operations departments areconcerned with their ability to produce top quality products that meet the demands of the marketplace. The operations department sets detailed time estimates that allow them to determine their capacity (ability to produce product). Based on forecasts, they develop a schedule that allows them to operate at capacity. Which of the following is a primary advantage of the balanced scorecard? A. It separates business strategy from day to day activities. B. It relates the performance of business functions to the organization s mission. C. It focuses on financial measurements and hard data results. D. It tracks progress against goals without raising accountability issues. 14

15 The correct answer is B. The balanced scorecard links business strategies with day to day activities and aligns business function measurements with organization strategies. As a result, an organization can track progress, reinforce accountability, and prioritize improvement opportunities. It includes related perspectives (finance, customers, internal processes, and learning and growth) rather than just a financial perspective. An organization that hires experienced personnel and is willing to exceed the standard pay range to quickly build its workforce is in what phase of the organization life cycle? A. Maturity. B. Growth. C. Introduction. D. Decline. 15

16 The correct answer is C. The organization is in the introduction phase and needs to do whatever is necessary to get its product or service off the ground. Therefore, the organization is willing to pay more to recruit a talented, already trained workforce. An organization at maturity will focus on controlling labor costs, while an organization that is in a growth stage will add new positions but will not exceed the standard pay range to do so. An organization in decline is likely to be downsizing or shrinking the workforce through attrition. An organization that places more emphasis on training and formalized policies and procedures is in what phase of the organization life cycle? A. Maturity. B. Growth. C. Introduction. C. Decline. 16

17 The correct answer is A. Anorganization that has time to formalize policies and procedures and uses training to maintain the flexibility and skills of its workers is in the maturity phase of the organizational life cycle. An organization that becomes entrenched in rules and policies and is resistant to change is in what phase of the organizational life cycle? A. Maturity. B. Growth. C. Introduction. D. Decline. 17

18 The correct answer is D. Anorganization is in the decline phase whenit becomes resistant to change and entrenched in the status quo. Which of the following situations illustrates a corporate strategy of differentiation? A. A company orders large quantities of parts to get the greatest discount. B. The finished product is sold at a lower price than that of the competition. C. A company develops a product that is uniquely easy to use and charges a premium price. D. A company sells in volume and offers discounts to its best customers. 18

19 The correct answer is C. Differentiation focuses on setting a product or service apart by giving unique characteristics that consumers value and for which they will pay a premium. Centralization of authority works best in organizations where A. Economies of scale are important. B. Operating units need to collaborate. C. Employee turnover is high. D. Decision making ability is expected of all employees. 19

20 The correct answer is A. Centralization is the degree to which decision making authority is restricted to highest levels of management. When economies of scale are important, a single decision making authority can best guarantee the consistency of results. Decentralization works best in organizations where A. A uniform policy is important. t B. Contracts are negotiated with outside agents. C. A quick response to problems is desired. D. Employees do not want additional responsibility. 20

21 The correct answer is C. Decentralization is the degree to which decisionmaking authority is given to lower levels in an organization s hierarchy. Pushing a decision down to its lowest authority level in an organization produces a quick response to problems. A field HR unit that reports directly to corporate headquarters is referred to as what type of structure? A. Departmental. B. Functional. C. Matrix. D. Divisional. i i 21

22 The correct answer is B. A functional organization is more centralized, and its departments are arranged by function (HR, finance, marketing, etc.), with each department reporting to a regional or corporate headquarters. A field HR unit that reports to the general manager of the unit and has dotted line accountability to corporate HR is referred to as what type of structure? A. Departmental. B. Functional. C. Matrix. D. Divisional. 22

23 The correct answer is D. In the divisional structure, divisions are separated on the basis of product, market, or region. All the resources necessary to manufacture, sell, or supply the product are put under the control of the division. There is usually a dotted line accountability to corporate HR, but the field unit actually reports to the general manager of the division. The matrix relationship creates a dual reporting structure, and the functional structure has a single reporting relationship directly with a manager in a like functional area. A narrow span of control is typically used when A. There is a shortage of managers. B. A team effort is not required. C. Subordinates are experienced. D. Tasks are complex. 23

24 The correct answer is D. Span of control refers to the number of individuals d who report to a supervisor. Narrower spans of control are typically used when tasks are complex, subordinates are poorly trained or inexperienced, or a team effort is required. The PRIMARY purpose of an HR audit is to A Complete a cost benefit analysis ofanhris A. Complete a cost benefit analysis of an HRIS. B. Evaluate the effectiveness of the HR function. C. Determine HR staffing requirements. D. Determine which HR functions will be outsourced. 24

25 The correct answer is B. Theprimary purpose ofthe HR audit is to evaluate the effectiveness of the HR function. The end result is not a cost benefit analysis, a staffing plan, an outsourcing plan, or a proposal for a new HRIS, although these activities may be secondary results of the audit. The ability of an instrument to measure what it is intended to measure is referred to as A. Validity. B. Internal consistency. C. Reliability. D. Parallelism. 25

26 The correct answer is A. Validity answers the question What does the instrument measure? Which of the following is true of experimental designs? A. Subjects are not assigned randomly to a group. B. Only the experimental group receives the treatment. C. It is the least rigorous type of design. D. A control group is not needed. 26

27 The correct answer is B. Experimental designs arethe most rigorous types of designs. True experiments utilize a control group. Which of the following questionnaire approaches elicits the broadest range of answers? A. Rating scales. B. Yes/no answers. C. Essay questions. D. Multiple choice questions. 27

28 The correct answer is C. Essay questions are open ended and allow respondents to provide as much input as they would like. Which of the following measures of central tendency refers to the value that occurs most frequently in a distribution? A. Mode. B. Median. C. Mean. D. Range. 28

29 The correct answer is A. Themode occurs most frequently in the distribution. The median is the point at which the number of values below is equal to the number above; the mean reflects the average; and the range refers to the difference between the highest and lowest values. Which measure of association measures the relationship between two variables? A. Range. B. Regression. C. Correlation. D. Deviation. 29

30 The correct answer is C. Correlation measures the relationship betweentwotwo variables. Regression involves the relationship between two or more variables and defines the ability to predict a variable based on knowledge about another variable. HR can BEST assist in creating an ethical organization by A. Handling all ethical issues that arise. B. Training leaders on ethical practices. C. Referring all ethical issues to legal counsel. D. Initiating a tip line for reporting ethical violations. 30

31 The correct answer is B. Tocreateanethical an ethical organization, leaders and managers need to know how to recognize ethical dilemmas and how to deal with them. Leaders need to know what the organization values and what its expectations are for its leaders and employees. An employee works in the engineering department of a manufacturing company and has a consulting contract with one of the company s clients. Which ethical problem might exist? A. Insider trading. B. Conflict of interest. C. Kickbacks. D. Copyright violation. 31

32 The correct answer is B. It is a conflict of interest for an employee to have a consulting contractwith one ofthe company s clients or competitors. In this case, the employee may be taking business away from the company or suggesting strategies that may not be in the best interest of the company. A clothing company gives its employees time off to work at a shelter for homeless women and children. It also donates clothing and shoes to the shelter. What phase of involvement does the company exhibit? A. Reactive philanthropy. B. Strategic contributions. C. Mainstream involvement. D. Corporate accountability. 32

33 The correct answer is C. The company s community involvement is linked to operational business concerns. Involvement consists of more than just giving money; it also involves the donation of goods and services. A bill originates in a House committee and is forwarded to a subcommittee for review. The subcommittee conducts hearings on the bill and amends it. At this stage, the bill is sent to the A. Full House for a final vote. B. Senate for floor debate. C. President forhis orher signature. D. House committee for a vote. 33

34 The correct answer is D. TheHouse committee receives the bill back from the subcommittee and can conduct further hearings and vote on whether to recommend the bill to the House. This procedure is called ordering a bill reported. The president vetoes a bill and sends it to the 435 member House of Representatives. When the House attempts to override the veto, 360 representatives are in attendance. How many representatives must vote for the bill? A B C D

35 The correct answer is D. Two thirds ofthe members who arepresent (in Two thirds of the members who are present (in sufficient numbers for a quorum) must vote to override the veto. 35