Deck 16: Strategically Managing the HRM Function

Question 1

The audit approach to evaluating HR effectiveness focuses on reviewing the various outcomes of the HRM functional areas.

Answer 1

True
Explanation: The audit approach focuses on reviewing the various outcomes of the HRM functional areas. Both key indicators and customer satisfaction measures are typically collected.

Question 2

In keeping with the total quality management philosophy, HR executives have moved to customer orientation in implementing the function.

Answer 2

True
Explanation: One recent trend within the field of HRM, consistent with the total quality management philosophy, is for the HR executive to take a customer-oriented approach to implementing the function. In other words, the strategic planning process that takes place at the level of the business can also be performed with the HRM function.

Question 3

Reengineering involves incremental, ongoing changes and redesigning to make work processes more cost efficient.

Answer 3

False
Explanation: The reengineering process involves four steps: identifying the process to be reengineered, understanding the process, redesigning the process, and implementing the new process.

Question 4

Technology enables closer monitoring of employees' work.

Question 5

HRM function effectively consists of three divisions: the centers for expertise, the field generalists, and the service center.

Question 6

One of the main reasons for outsourcing is to limit competition.

Question 7

Ensuring that the HRM systems enable the business to execute its strategy is one of the responsibilities of field generalists.

Question 8

Service centers often leverage information technology to efficiently deliver employee services.

Question 9

In strategically designed HR structures, centers for expertise ensure that transactional activities are delivered throughout the organization.

Question 10

Employees are HRM customers because the rewards they receive from the employment relationship are determined by the HRM department.

Question 11

Attempting to estimate the financial impact of substance abuse is an example of human resource accounting.

Question 12

Transactional activities provide the greatest strategic value to a firm.

Question 13

Employee relations fall into the traditional category of HRM activities.

Question 14

Fewer HR activities are being outsourced today than in past years.

Question 15

Data-flow diagrams show the types of data used within a business function and the relationship among the different types of data.

Question 16

The human resource accounting approach places a dollar value on human resources as if they were physical or financial resources.

Question 17

New technology, rather than downsizing, restructuring, and reengineering, has always been credited for improvements in productivity.

Question 18

New technologies are current applications of knowledge, procedures, and equipment that have not been used previously.

Question 19

The analytic approach to evaluating HR effectiveness focuses exclusively on estimating the financial costs and benefits resulting from HR practice.

Question 20

The basic process of building HR strategy starts with scanning the internal environment.

Question 21

Knowledge management, management development, cultural change, and strategic redirection and renewal represent which type of HR activity?

A)Transactional
B)Transnational
C)Transformational
D)Traditional
E)Transcendental

Question 22

The main purpose of imaging is to scan and print documents to be placed in applicants' files.

Question 23

Because the HR strategy seeks to address business issues, involving _____ can increase the quality of information from which the HR strategy is created.

A)competitors
B)suppliers
C)line executives
D)shareholders
E)customers

Question 24

Which of the following strategies include activities such as selection and compensation?

A)Transcendental
B)Transnational
C)Transformational
D)Traditional
E)Transactional

Question 25

E-HRM capabilities have allowed the focus of HRM functions to move from transactional to transformational concerns and activities.

Question 26

_____ assure line managers that employees will use their skills for organizational benefit, and they provide strategic planners with ways to ensure that all employees are acting in ways that will support the strategic plan.

A)Selection systems
B)Training and development systems
C)Performance management systems
D)Reward systems
E)Administrative systems

Question 27

Which of the following HR functions' articulation of people outcomes stems from an analysis of what their functions currently do?

A)Business-linked
B)Technology-linked
C)People-linked
D)HR-focused
E)Outcome-focused

Question 28

Examining the need to develop new technologies is a part of:

A)identifying people issues.
B)scanning the external environment.
C)developing the HR strategy.
D)identifying strategic business issues.
E)communicating the HR strategy.

Question 29

With the use of relational databases, the number of data fields that can be kept for any employee is limitless.

Question 30

Which of the following is an example of a transformational activity?

A)Benefits administration
B)Training
C)Compensation
D)Management development
E)Record keeping

Question 31

Which one of the following HR categories is lowest in its strategic value to the firm?

A)Transcendental
B)Transnational
C)Transformational
D)Traditional
E)Transactional

Question 32

The role of a strategic advisor entails sharing the people expertise as part of the decision-making process, as well as shaping how the human capital of the firm fits into its strategy.

Question 33

The recent trend in HRM that is consistent with the total quality management philosophy emphasizes:

A)efficiency in delivering programs.
B)cost reduction of HR functions.
C)functional approaches in delivering HR programs.
D)a customer-oriented approach in delivering HR programs.
E)spending more time in performing transformational activities.

Question 34

The first step to a customer orientation is:

A)identifying the needs of customers.
B)identifying the HRM function to serve the customer.
C)developing technologies that serve customers.
D)creating strategies that serve customers.
E)identifying customers.

Question 35

Which of the following meet the needs of both the line managers and employees by giving employees opportunities to ensure that they increase their human capital?

A)Selection systems
B)Training and development systems
C)Performance management systems
D)Reward systems
E)Administrative systems

Question 36

Activities focused on identifying workforce morale issues or concerns pertain to the leader of the HR function.

Question 37

Which of the following stages involves increasing immigrant population in an HR strategy process?

A)Identifying people issues
B)Scanning the external environment
C)Developing the HR strategy
D)Identifying strategic business issues
E)Communicating the HR strategy

Question 38

_____ HR functions begin with an assessment of what HR is doing, then identify the major people outcomes they should focus on.

A)Business-linked
B)HR-focused
C)People-linked
D)Business-driven
E)Outcome-focused

Question 39

Which of the following falls under the traditional activities of HRM?

A)Benefits administration
B)Employee Services
C)Cultural change
D)Performance management
E)Strategic redirection

Question 40

Transformational activities:

A)include knowledge management, cultural change, and strategic renewal.
B)are low in their strategic value.
C)are the nuts and bolts of HRM.
D)often form the practices and systems to ensure strategy execution.
E)account for the major amount of time spent during HRM activities.

Question 41

Which of the following approaches focuses on determining whether the introduction of a program or practice has the intended effect?

A)Wellness approach
B)Audit approach
C)Cost-benefit approach
D)Analytic approach
E)Outcome approach

Question 42

Which of the following statements is true about the audit approach?

A)Key indicators and customer satisfaction measures are important in this approach.
B)This approach deals with the determination of the impact of the dollar value.
C)It involves the use of statistics and finance and hence it is more demanding.
D)It uses utility analysis to estimate the financial impact of the employee behavior.
E)It determines whether the introduction of a program or practice has the intended effect.

Question 43

_____ involves evaluation to help determine whether the HRM function is meeting its objectives and effectively using its budget.

A)Auditing
B)Providing accountability
C)Marketing the function
D)Employee selection
E)Using analytical data

Question 44

Which HR strategy begins by identifying the major business needs and issues, considers how people fit in and what people outcomes are necessary, and builds HR systems focused on meeting those needs?

A)HR-focused
B)People-linked
C)Business-linked
D)Business-driven
E)Outcome-focused

Question 45

_____ involves contracting with an outside vendor to provide a product or service to a firm, as opposed to producing the product using employees within the firm.

A)Offshoring
B)Importing human capital
C)Outsourcing
D)Transferring human capital
E)Exporting

Question 46

Which of the following is true about centers for expertise within the recent generic HR structure?

A)They have dual reporting relationships to both the head of the line business and the head of HR.
B)They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation.
C)They consist of individuals who ensure that the transactional activities are delivered throughout the organization.
D)They assign individuals to business units within the organization to assist them in executing their business-level strategies.
E)They often leverage information technology to efficiently deliver employee services.

Question 47

Which of the following represents a traditional structure of HRM function?

A)Functional directors reporting to the VP of HRM
B)Functional specialists acting as consultants in development of systems
C)HRM generalists with dual reporting relationships
D)Individuals leveraging information technology
E)Generalists taking responsibility for helping line executives

Question 48

Identify the example of utility analysis from the following.

A)Capitalization of salary
B)Gains from selection programs
C)Returns on human assets and human investments
D)Net present value of expected wage payments
E)Evaluation of training program

Question 49

Which of the following represents the recent generic structure of HRM function?

A)VP of HRM reporting to VP of finance and administration
B)Functions structured around labor relations
C)Functional directors reporting to the VP of HRM
D)Functions structure around staffing and appraisal
E)HRM generalists with dual reporting relationships

Question 50

The audit approach for evaluating the effectiveness of HR practices focuses on:

A)determining whether the HR program/practice has the intended effect.
B)estimating the financial costs and benefits resulting from an HR practice.
C)reviewing the various outcomes of the HR functional area.
D)determining the dollar value of a program.
E)utility analysis to estimate the financial impact of the employee behavior.

Question 51

The problem with assessing effectiveness only from the _____ perspective is that often responses are based on individual perspectives rather than from the standpoint of what is good for the firm.

A)employee
B)stakeholder
C)executive
D)competitor
E)employer

Question 52

The _____ consists of individuals who often leverage information technology to efficiently deliver employee services.

A)field generalist area
B)data output area
C)center for expertise
D)service center
E)labor relations center

Question 53

Which of the following is human resource accounting likely to include?

A)Turnover costs
B)Absenteeism
C)Capitalization of salaries
D)Job performance
E)Gains from selection programs

Question 54

HR and line executives' evaluations of the effectiveness of HRM roles showed:

A)higher evaluations on the part of HR executives than line executives across all HRM roles.
B)agreement on the roles of "change consulting."
C)general agreement on the part of both parties across all HRM roles.
D)no differences on the roles of "business partner", "developing the organization", and "tailoring practices to the strategy."
E)higher evaluations on the part of line executives than HR executives across all HRM roles.

Question 55

HR and line executives' evaluations of the effectiveness of HRM contributions showed:

A)higher evaluations on the part of line executives than HR executives across all HRM contributions.
B)agreement on the contributions toward "core competency."
C)general agreement on the part of both parties across all HRM contributions.
D)no differences on "performing the expected job" and "providing useful information."
E)higher evaluations on the part of HR executives than line executives across all HRM contributions.

Question 56

Which of the following is true about improving HRM effectiveness?

A)Improvement often focuses on the effectiveness of each activity rather than on the efficiency of the same.
B)There is often a push to eliminate the transformational work to free up time for transactional work.
C)Improvement goals can be achieved by avoiding outsourcing the HRM activities.
D)Ways to improve effectiveness should be explored much before the strategic direction is established.
E)Improvement focuses on eliminating some of the traditional work to free up resources for transformational work.

Question 57

Which of the following is an example of cost-benefit analysis?

A)Customer satisfaction
B)A key indicator like turnover rate
C)Human resource accounting
D)An HRM functional area like recruiting
E)Evaluation of a training program

Question 58

Which of the following is true about field generalists within the recent generic HR structure?

A)They have dual reporting relationships to both the head of the line business and the head of HR, although the line business tends to take priority.
B)They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation.
C)They consist of individuals who ensure that the transactional activities are delivered throughout the organization.
D)They act as consultants in the development of state-of-the-art HR systems and processes for use in the organization.
E)They often leverage information technology to efficiently deliver employee services.

Question 59

Which of the following is true about the service center within the recent generic HR structure?

A)They have dual reporting relationships to both the head of the line business and the head of HR, although the line business tends to take priority.
B)They are responsible for the traditional areas of HR, such as recruitment, selection, training, and compensation.
C)They consist of individuals who ensure that the transactional activities are delivered throughout the organization.
D)They act as consultants in the development of state-of-the-art HR systems and processes for use in the organization.
E)They ensure that the HRM systems enable the business to execute its strategy.

Question 60

The cost-benefit analysis approach that estimates the financial impact of employee behavior is called _____.

A)utility analysis
B)valuation approach
C)human resource accounting
D)audit approach
E)returns on employee investment

Question 61

Which of the following corresponds to identifying the process as a part of reengineering?

A)Considering whether jobs can be combined
B)Developing models and choosing prototype
C)External and internal customers who see outcome of the process being included in the team
D)Considering the exceptions to be dealt with
E)Considering if all the steps in the process are necessary

Question 62

Transaction processing refers to:

A)systems that allow users to see how outcomes change when assumptions or data change.
B)computations and calculations used to review and document human resources decisions and practices.
C)systems that recommend actions the user can take based on the information provided.
D)the set of topics on which a human resource information system collects and maintains information.
E)computer systems that incorporate the decision rules of people deemed to have expertise in a certain area.

Question 63

In a(n)_____, information is stored in separate files, which look like tables.

A)entity relationship diagram
B)expert system
C)relational database
D)data-flow diagram
E)client-server architecture

Question 64

_____ refers to scanning documents, storing them electronically, and retrieving them.

A)Software designing
B)Imaging
C)Groupware
D)Computer-aided designing
E)Duplication

Question 65

Scenario analysis:

A)compares the costs of completing tasks with and without automated systems or software.
B)shows the flow of data used among departments.
C)shows the types of data used within a business function and the relationship among different types of data.
D)asks end users to indicate how information systems or software can help address their real work problems.
E)collects information about the data used and stored in a functional area.

Question 66

The most likely activities to be outsourced include _____ activities.

A)transformational
B)transactional
C)traditional
D)training
E)transcendental

Question 67

A review of critical work processes and the redesign to make them more efficient and able to deliver higher quality is called _____.

A)reengineering
B)benchmarking
C)total quality management
D)expert work systems
E)process enhancement

Question 68

Which of the following is true about the reengineering process?

A)Information technology applications are mandatory for process redesign.
B)Reengineering is critical to ensuring that there is no loss from employing human resources.
C)Applying new technology to an inefficient process will improve effectiveness.
D)Reengineering cannot be used to review specific HRM practices but only HRM department functions.
E)Process redesign enables HRM function to deliver HRM services more efficiently and effectively.

Question 69

According to recent study of companies, which one of the following investments provide a better return than investments in other kind of capital?

A)Computers
B)People
C)Foreign companies
D)Laborsaving devices
E)Imported machinery

Question 70

Which of the following steps in reengineering involves conducting surveys?

A)Identifying the process
B)Understanding the process
C)Redesigning the process
D)Implementing the process
E)Auditing the process

Question 71

Which of the following is an example of a transaction processing system?

A)A software application that helps organizations complete EEO-1 reports.
B)A software application that helps managers conduct employment interviews.
C)A software application that helps organize the availability of employees with technical skills to meet changes in product demands.
D)A software application that helps employees enroll in the company benefit plan.
E)A software application that helps employers calculate contributable funds.

Question 72

Cost-benefit analysis:

A)evaluates the design of data structure and content.
B)is a review of how soon the system of software application will become outdated.
C)shows the flow of data between departments.
D)uses information regarding materials, time, people, and hardware to determine the value of a software application of system.
E)evaluates the importance, frequency, and criticality of automating specific tasks within a functional area.

Question 73

Which of the following is the initial step in the reengineering process?

A)Identifying the process
B)Auditing the process
C)Implementing the process
D)Redesigning the process
E)Understanding the process

Question 74

Which of the following HR areas benefits from imaging?

A)Training
B)Recruitment
C)Applicant tracking
D)Career development
E)Compensation

Question 75

Which of the following is an advantage of a relational database?

A)Information is stored in one large file.
B)Databases are stored in a central location.
C)Users can file or retrieve information according to any field or multiple fields across different tables or databases.
D)It can store facts, figures, and decision rules.
E)It allows maximum use of the computing power of the personal computer.

Question 76

_____ show the types of data used within a business function and the relationship among the different types of data.

A)Focus groups
B)Scenario analyses
C)Cost-benefit analyses
D)Data-entity relationship diagrams
E)Data-flow diagrams

Question 77

Which one of the follow is true about client-server architecture?

A)It provides a means of consolidating data and applications into a single system.
B)It allows users to organize data in a relatively easier way.
C)It is housed on the World Wide Web and requires a URL (uniform resource locator).
D)It allows files to be linked by common elements such as identification number or location.
E)It allows information to be stored in separate files, which look like tables.

Question 78

Which of the following is true about outsourcing?

A)Employees learn unique innovations from one company and transfer that to a new company.
B)It causes obstruction for effective training of employees.
C)A firm loses its ability to provide excellent service in specialized areas.
D)Transactional activities of HRM are primarily outsourced.
E)One of the motives behind outsourcing is to limit competition.

Question 79

Decision support system refers to:

A)systems that allow users to see how outcomes change when assumptions or data change.
B)computations and calculations used to review and document human resources decisions and practices.
C)systems that recommend actions the user can take based on the information provided.
D)the set of topics on which human resource information system collects and maintains information.
E)computer systems that incorporate the decision rules of people deemed to have expertise in a certain area.

Question 80

Which of the following HR functions benefits from interactive voice technology?

A)Training
B)Recruitment
C)Benefits administration
D)Career development
E)Compensation