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STRATEGIC HUMAN RESOURCE MANAGEMENT Topic 1: Evolution of HRM; HRM and its relation with Competitive Advantage and

Organizational Performance A. Multiple Choice Questions 1. The term competitive advantage stands for a) the superior market position of a company in the market vis-a-vis its competitors b) the organizational confidence level c) the expansion of product lines in the market d) None of the above The reason for organizations efforts to gain competitive advantage ou t of HR is: a) HR environment is responsible for competitive advantage as it cannot be imitated easily by the competitors. b) Human resources are more important than physical resources. c) It is easy to obtain competitive advantage out of HR practices. d) None of the above When a manager is moved to another country for employment, he is called a) international manager b) foreign manager c) expatriate d) None of the above The treatment of employees as one of the factors of production is the basic assumption of the _______ version of HRM. a) soft b) hard c) medium d) indifferent Which of the following resources is a source of competitive advantage? a) physical resources b) human resources c) organizational resources d) All of the above Performance evaluation improves competitive advantage by a) involving immediate supervisors in the evaluation process b) providing strong basis for demotion, transfers, and lay-offs c) increasing the frequency of performance evaluation d) reducing grievance and labour turnover by making employees trust that they are treated fairly ________ are the resources that provide utility value to all other resources. a) Men b) Material c) Money d) Machinery The term procurement stands for (a) recruitment and selection (b) training and development (c) pay and benefits (d) health and safety The characteristics of human resources are ________ in nature (a) homogeneous (b) heterogeneous (c) ductility (d) None of the above

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10. Identify the managerial function out of the following functions of HR managers. (a) procurement (b) development (c) organizing (d) performance appraisal

11. Which of the following is an example of operative function of HR managers? (a) planning (b) organizing (c) procurement (d) controlling 12. The scope of human resource management includes (a) procurement (b) development (c) compensation (d) All of the above 13. Human resource management is normally ________ in nature. (a) proactive (b) reactive (c) combative (d) None of the above 14. The human resource management functions aim at (a) ensuring that the human resources possess adequate capital, tool, equipment and material to perform the job successfully (b) helping the organization deal with its employees in different stages of employment (c) improving an organizations creditworthiness among financial institutions (d) None of the above 15. Which of the following aptly describes the role of line managers and staff advisors, namely HR professionals? (a) Staff advisors focus more on developing HR programmes while line managers are more involved in the implementation of those programmes. (b) Line managers are concerned more about developing HR programmes whereas staff advisors are more involved in implementing such programmes. (c) Staff advisors are solely responsible for developing, implementing and evaluating the HR programmes while line managers are not all involved in any matters concerning HR. (d) Line managers alone are responsible for developing, implementing and evaluating the HR programmes while staff advisors are not all involved in any matters concerning HR. 16. Which one of the following is not a part of the external environment of an organization? (a) social factors (b) political factors (c) legal factors (d) organizational culture 17. Identify the odd one out of the following factors (a) organizational structure (b) HR systems (c) business strategy (d) technology 18. The first recorded human resource management initiative was made during (a) the pre-industrial revolution era (b) the First World War era (c) the Second World War era (d) None of the above 19. What is the most important contribution of the Hawthorne studies? (a) the discovery of the informal relationship and social groups among employees (b) the significance of lighting and ventilation for performance (c) the difference in the performance of male and female employees (d) the relationship between the behaviour and performance 20. The term environmental scanning stands for (a) gathering data about the organization and its surroundings (b) collecting information about the shareholders (c) gathering information relating to the employees (d) none of the above 21. McGregors Theory X and Theory Y was introduced during (a) the First World War

(b) the Industrial revolution (c) the Second World War (d) the human relations movement 22. One of the important assumptions of the ----------perspective is that uncertainty in environment is more of an internal problem and less of an external problem (a) objective environment perspective (b) perceived environment perspective (c) enacted environment perspective (d) none of the above 23. When an organization creates its own environment out of its knowledge of the environment, it has created a/an (a) enacted environment (b) perceived environment (c) objective environment (d) none of the above 24. Transformational change in an organization refers to (a) complete change in almost all aspects of the organization (b) incremental change in which necessary improvements are made in the existing organization (c) no change in any aspect of the organization (d) None of the above 25. Which of the following is normally the cause of organizational change? (a) technological development (b) change in labour characteristics (c) mergers, acquisitions, etc. (d) All of the above 26. When employee resistance provokes a well-grounded debate and constructive criticism leading to improvements in the change process, it is called (a) positive resistance (b) negative resistance (c) passive resistance (d) None of the above 27. Which type of employee resistance aims at ensuring the complete failure of change initiatives of the organization? (a) positive resistance (b) negative resistance (c) passive resistance (d) active resistance 28. Which of the following is not a symptom of employee resistance to change? (a) increase in employee absenteeism (b) non-participative and indifferent behaviour (c) increase in performance and productivity (d) unprofessional conduct 29. A written statement of policies and principles that guides the behaviour of all employees is called (a) code of ethics (b) word of ethics (c) ethical dilemma (d) None of the above 30. An empirical inquiry into the actual rules or standards of a particular group is (a) normative justice (b) descriptive justice (c) interpersonal justice (d) None of the above 31. The HR policy which is based on the philosophy of the utmost good for the greatest number of people is covered under the (a) utilitarian approach (b) approach based on rights (c) approach based on justice (d) None of the above

32. Which of the following is not usually the objective of a code of ethics? (a) to create an ethical workplace (b) to evaluate the ethical components of the proposed actions of the employees (c) to improve the public image of the company (d) to enhance the profits of the business continuously 33. Which of the following is not a core principle of the Society for Human Resource Managements Code of Ethics? (a) professional responsibility (b) fairness and justice (c) professional development (d) None of the above 34. Which of the following factors shapes the ethical behavior of the members of the organization? (a) The superiors behavior (b) Organizational culture (c) Code of ethics (d) All of the above 35. Which of the following best describes the line manager? (a) A line manager is a person who has direct responsibility for employees and their work. (b) A line manager is person who manages specific lines for special promotions. (c) A line manager is a person who manages a particular production line. (d) A line manager is a person who manages a production line. 36. Which of the following was the earliest name for the people management specialist? (a) HR manager (b) Industrial welfare officer (c) Employment law specialist (d) Personnel manager 37. Which of the following is NOT a typical feature of the HRM approach to the management of people? (a) The importance of adopting a strategic approach is emphasised. (b) A pluralist approach is used (c) A unitarist approach is used. (d) Line managers play an important role. 38. Which of the following is NOT something which is normally included in Kaplan and Norton s (1992, 1996) balanced scorecard? (a) Financial results. (b) Behavioural observation scales. (c) Customer relations. (d) Learning and development. 39. Which of the following is the best description of soft HRM? (a) The primacy of business needs means that human resources will be acquired, deployed and dispensed with as the HR department demands. (b) In order to gain competitive advantage through the workforce, regardless of whether they are full- or part-time, temporary or contract staff, all potential must be nurtured. (c) The primacy of business needs means that human resources will be acquired, deployed and dispensed with as the corporate plan demands. (d) In order to gain competitive advantage through the workforce full time staff must be nurtured and developed. 40. According to Arkin (2007) which of the following is the title which a growing number of CIPD members are using to describe themselves? (a) Administrative expert (b) Industrial welfare officer (c) Personnel manager (d) HR business partner 41. Which of the following is NOT one of the roles Ulrich and Brockbank (2005) describe as a 21st century role? (a) Functional expert (b) Employee welfare officer (c) Human capital developer (d) Employee advocate

42. In a CIPD survey conducted in 2003 which of the following was NOT regarded as being one of the top three activities which HR managers regarded as important? (a) Developirng HR strategy and policy (b) Business strategy (c) HR administration (d) The provision of specialist HR input to wider business issues 43. Which of the following is NOT identified by John Purcell (2003) and a team of researchers as being an aspect of HRM which made a difference to performance in organizations? (a) Strong values and an inclusive culture (b) A strong management who did not need to share ideas with others (c) The way people worked together to be productive and flexible enough to meet new challenges. (d) Sufficient line managers to bring HR policies and practices to life. 44. In the ACAS 2007 model of what makes an effective organization, which of the following is NOT included? (a) Ambitions, goals and plans that employees know about, and understand (b) Managers who genuinely listen to and consider their employees views (c) Ambitions, goals and plans that the management keep to themselves (d) Formal procedures for dealing with disciplinary matters, grievances and disputes that managers know about and use fairly 45. According to Reilly (2007b), in a survey of organizations which percentage had fully implemented the Ulrich model of HRM? (a) 50 per cent (b) 75 per cent (c) Between 21 per cent and 30 per cent (d) Less than 20 per cent 46. According to your textbook which of the following is NOT a current issue in HRM? (a) Human capital (b) Welfare (c) Talent management (d) Information technology 47. Which of the following is NOT according to Green (1999) an aspect of added value? (a) Engagement (b) Alignment (c) Measurement (d) Detachment 48. Which of the following is NOT one of Hofstedes cultural characteristics? (a) Long-term orientation/short-term orientation (b) Language skills (c) Individualism/collectivism (d) Power distance 49. Which of the following is not a form of flexible working environment? (a) Job share (b) Annual hours contract (c) Part time employment (d) 360 degree appraisal 50. Which of the following best describes corporate and social responsibility (CSR) in HRM? (a) It is an area of interest only in relation to possible financial irregularities within an organization. (b) It is of interest to HR managers but specifically just in relation to the environment al impact of the business. (c) It is an area of no interest to HR managers. (d) It affects everyone and not just those who are core stakeholders in the business, so there are a great many areas in which HR managers can be involved. B. True and False 1. 2. 3. 4. 5. Division of Labour was invented in the 19th century Modern business is uniquely complex Tips on supervision are recorded in a 5,000-year-old document Professional managers were introduced during the 19th century Personnel Management dates from the 1890's in the USA

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Management education first appeared in Britain and the Commonwealth Scientific Management was invented by Schmidt Mass production was first used by Henry Ford The ideas of F.W Taylor and Henry Ford have no influence on management today 'Therblig' was a measure of work Elton Mayo was responsible for the famous Hawthorne experiments Basically, HRM is just Human Relations HRM is one of a number of management fashions that have developed over the last few decades HRM has a unitarist tradition in the USA HRM has a unitarist tradition in Europe and Australasia Traditional personnel managers had high status compared to managers in other business functions The Japanese role model is a mixture of racial stereotyping, myth and reality 'Just-in-time' and continuous improvement were developed in the USA Introduction of HRM on the Harvard MBA had a significant impact on the subject HRM has been portrayed as a proactive approach to people management HRM is an approach to the management of people. Another term synonymous with Human Resource is MANPOWER. The Practice of Management has been authored by Douglas McGregor. The Behavioural Science Movement was founded by Maslow and Likert. The Art of Japanese Management has been authored by Simon &Schuster. HRM is reactive rather than proactive in nature. Reward Management is a part of Human Resource Planning. Human Resource Organization comprises of Culture Management Programme. Career Management Programmes are a part of Human Resource Development. Human Resource Systems also comprise of Reward and Performance Management Programmes. Management by Objectives was conceptualized by Rensis Likert. Integration as human resources management function involves motivating employees only through various non-financial activities. Human resources management may be defined as a set of policies, practices, and programmes designed to maximize organizational goals only. Human resources are rigid and homogeneous. Of all the resources, manpower is the only resource which does not depreciate with the passages of time. Human resource reacts to the same situation in different ways. As a central subsystem, HRM interacts closely and continuously with all other subsystems if an organizations. Integration function is the process of reconciling the goals of the organizational members with those of the organization. Human Resources management is the central subsystem of an organization. HR mangers will face no problems in the near future. BPR is the same thing as restructuring. Most of the employees do not prefer empowerment. HR management has nothing to do with quality of working life. The profile of workforce is changing continuously. Managing workforce diversity is a great challenge for the HR manager. Taylor had no contribution to the field of personnel management. Human realtionists gave emphasis on formal relations only. Personnel management is yet to achieve the status of a profession. George Elton Mayo is credited for human relations approach. Personnel management can be spilt into three aspects including welfare aspects including welfare aspect, labour aspect and industrial relation aspect. HRM philosophy represents humanization of management. Human resources could be managed to create HR based competitive advantage. BPR is nothing but restructuring, Human resource based competitive is rare and inimitable. Strategic human resource management is proactive in nature. Right sizing of human resources is not the concern of strategic human resource management. The modern HR function has HRD at its core. The relationship between good HR practices and organizational effectiveness is very simple Human resource management is responsible for getting the best people, training and providing mechanism. The single biggest challenge of HR managers is to focus their efforts on improving the organizations current operational performance.

Answers A. 1 (a), 2 (a), 3 (c), 4 (b), 5 (d), 6 (d), 7 (d), 8 (a), 9 (b), 10 (c), 11 (c), 12 (d), 13 (a), 14 (b), 15 (a), 16 (d), 17 (d) , 18 (a), 19 (a), 20 (a), 21 (d), 22 (b), 23 (a), 24 (a), 25 (d), 26 (a), 27 (b), 28 (c), 29 (a), 30 (b), 31 (a), 32 (d), 33 (d), 34 (d), 35 (a), 36 (b), 37 (b), 38 (b), 39 (b), 40 (d), 41 (b), 42 (c), 43 (b), 44 (c), 45 (d), 46 (b), 47 (d), 48 (b), 49 (d), 50 (d)

B. 1. F, 2. F, 3. T, 4. T, 5. T, 6. N, 7. N, 8. T, 9. F, 10. T, 11. F, 12. F, 13. T, 14. T, 15. F, 16. F, 17. T, 18. F, 19. T, 20. T, 21. T, 22. T, 23. T, 24. F, 25. F, 26. T, 27. F, 28. T, 29. T, 30. T, 31. F, 32. F, 33. F, 34. F, 35. T, 36. T, 37. T, 38. T, 39. T, 40. F, 41. F, 42. F, 43. F, 44. T, 45. T, 46. F, 47. F, 48. F, 49. T, 50. T, 51. T, 52. T, 53. F, 54. T, 55. T, 56. F, 57. T, 58. F, 59. T, 60. F Topic 2: Concept of Strategic Human Resource Management A. Multiple Choice Questions 1. In strategic human resource management, HR strategies are generally aligned with (a) business strategy (b) marketing strategies (c) finance strategy (d) economic strategy Which of the following is closely associated with strategic human resource management? (a) efficient utilization of human resources (b) attracting the best human resources (c) providing the best possible training (d) All of the above Treating employees as precious human resources is the basis of the _______ approach. (a) hard HRM (b) soft HRM (c) medium HRM (d) None of the above Strategic human resource management aims to achieve competitive advantage in the market through (a) price (b) product (c) people (d) process Wright and Snell made important contribution to the growth of (a) Strategic fit model (b) Strategic labour allocation process model (c) Business-oriented model (d) None of the above Strategic management process usually consists of _______ steps. (a) Four (b) Five (c) Six (d) Seven One of the components of corporate level strategy is (a) growth strategy (b) portfolio strategy (c) parenting strategy (d) All of the above Creating an environment that facilitates a continuous and two-way exchange of information between the superiors and the subordinates is the core of (a) High involvement management model (b) High commitment management model (c) High performance management model (d) None of the above Human resource management is the formal part of an organization responsible for all of the following aspects of the management of human resources except: (a) systems, processes, and procedures (b) management of the organization's finances (c) policy making, implementation, and enforcement (d) strategy development and analysis

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10. The field of HRM was founded on the idea that the competitive advantage of the organization relies on the following sources of capital:

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cultural, human and system capital organization relies on the following sources of capital: social, cultural and human capital cultural, human and source capital

11. To address the challenges and opportunities they face organizations engage in a process of strategic management. Strategic management is: (a) long-term focused and composed of the organization's mission, vision and value statements (b) short-term focused and composed of the organization's mission, vision and value statements (c) long-term focused and composed of organizational strategy, including strategy formulation and implementation (d) short-term focused and composed of organizational strategy, including strategy formulation and implementation 12. Strategic human resource management involves: (a) planning, foresight and analytical decision making (b) setting employment standards and policies (c) linking human resources with strategic objectives to improve performance (d) all of the above 13. Tsui's multiple constituency model (1990) proposes that: (a) an organization has multiple constituencies whose objectives may conflict and differ (b) an organization has multiple constituencies who will have the same overall objectives (c) an organization has multiple constituencies who are easily satisfied (d) an organization has multiple constituencies who emerge from the external environment 14. The balanced scorecard proposes that organizational success depends on: (a) a focus on only the internal environment of the organization (b) a constantly changing external environment (c) an ability to develop a complete list of cause and effect relationships driving a firm's success (d) the belief that it is impossible to take a rationalist view of the organization to make optimal choices 15. Kochan and Barocci's (1985) model of HRM has three elements. These elements are: (a) the external environment, the internal environment and human resource management (b) the external environment, human resource management and HRM/IR system effectiveness (c) HRM/IR system effectiveness, the external environment and the internal environment (d) human resource management, the internal environment and HRM/IR system effectiveness 16. What is the purpose of a business strategy? (a) To focus attention on failing areas of business practice. (b) To decide on the areas of expansion/retraction. (c) To create a consistent corporate image. (d) To secure and sustain competitive advantage. 17. Which of these models is not a rational planning approach? (a) Corporate-level strategic planning (b) Strategic business unit level strategic planning (c) Processual approach (d) Operational level strategic planning 18. What type of rationality is evident in the processual approach? (a) Instrumental (b) Unbounded (c) Bounded (d) Traditional 19. Which of the following is a 'best fit' approach? (a) Resource-based view (b) The universal approach (c) Competitive-advantage models (d) Bundles and high-performance working practices 20. Which approach that seeks to link strategy, business performance and HRM policies and practices, assumes that there are a number of HRM practices that are suitable for all organizations? (a) Best practice (b) Best fit (c) Resource-based view (d) Life-cycle models

21. Which personnel association uses the idea of bundles of integrated HRM practices? (a) European Association for Personnel Management (b) U.S. Office of Personnel Management (c) Chartered Institute of Personnel and Development (d) Association of Personnel Service Organisations 22. Which country is associated with the universal best practice approach? (a) UK (b) US (c) Germany (d) Norway 23. Which HRM approach does the Bolton Wanderers example illustrate? (a) Universal approach (b) Bundles of integrated HRM practices (c) Life-cycle models (d) Resource based approach 24. Focusing on core competencies means companies have the possibility of generating? (a) Human capital advantage (b) Larger profit margins (c) Better output (d) New staff 25. What is the primary limitation of the resource-based view? (a) It overlooks the significance of the wider environment. (b) It overlooks the importance of the organizations culture. (c) It does not consider the importance of employees. (d) It underestimates the role of line managers. B. True and False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. The primary role of the HR department is to support the strategic direction of the organisation. The behavioural sciences approach proposed that people would be motivated to perform better if they were more satisfied in their jobs. The resource-based view of the firm has shifted the focus away from strategy based on external factors such as industry position to internal competencies and human resources. Due to constant changes in the organisation's internal and external environments SHRM decisions which have been successful in the past should not be used to guide future actions. Organisations operate in stable external environments and therefore do not have to change very often. Leading focuses on the selection and use of employees. Training is especially important for a differentiation strategy emphasizing quality or customer service. Executive succession is the process of replacing a key top manager. A performance appraisal system is used for evaluating a person's suitability for an advanced position. Implementation involves leading through coaching people to use their abilities and skills most effectively and efficiently to achieve organizational objectives. Communication is key to the effective management of change. Assimilation involves the disintegration of one company's culture resulting from unwanted and extreme pressure from the other to impose its culture and practices. An action plan states what actions are going to be taken, by whom, during what timeframe, and with what expected results. Power distance is the extent to which society is oriented toward the long versus the short term. Multinational corporations must pay attention to the many differences in cultural dimensions around the world and adjust their management practices accordingly.

Answers A. 1 (a), 2 (d), 3 (b), 5 (c), 6 (c), 7 (b), 8 (d), 9 (a), 10 (b), 11 (c), 12 (c), 13 (a), 14 (c). 15 (b), 16 (d), 17 (c), 18, ( c), 19 (c), 20 (a), 21 (c), 22 (b), 23 (d), 24 (a), 25 (a) B. 1 T, 2 T, 3 T, 4 T, 5 F, 6 F, 7 T, 8 T, 9 F, 10 T, 11 T, 12 F, 13 T, 14 F, 15 T Topic: Investment In Human Resources A. Multiple Choice Questions 1. People are not like the other resources of the organisation because:

(a) (b) (c) (d) 2.

they are difficult to predict and no two people are alike there is only one best way to manage them in an organisation their behaviour cannot be directed towards the attainment of the organisation's goals they have common values, attitudes, beliefs, experiences, expectations and ideas

Younger employees are mostly motivated by: (a) money, status and a big office (b) materialistic rewards for work (c) intrinsic factors (d) extrinsic factors Adam's equity theory (1963) proposes that: (a) employees will be motivated when they perceive their rewards are fair when compared to the rewards of similar others (b) employees' motivation depends on goal specificity and clarity (c) employees will be motivated to display desired behaviours when the behaviour is reinforced (d) employees will only be motivated by what they desire and what they perceive is achievable Employees have a reciprocal relationship with the organisation - they give effort, loyalty, and commitment in exchange for extrinsic and intrinsic rewards. When employees perform the duties of their jobs for an agreed upon salary this is an example of the: (a) ideology infused contract (b) reward contract (c) relational contract (d) transactional contract Organisations that are concerned for the welfare of all employees and believe that all organisational stakeholders should benefit from the organisation's activities would likely have a workforce that is: (a) satisfied (b) motivated (c) committed (d) productive A HR manager who focuses on health and safety policies, the wellbeing and happiness of employees and making sure employees' jobs are satisfying rather than maximising profits is adopting which strategic management approach? (a) rational (b) sociological (c) industrial organisational (d) conflict Adopting hard HRM practices for peripheral employees and soft HRM practices for core employees could be viewed as: (a) unethical (b) sensible (c) strategic (d) inhumane Organisational change often affects a variety of things in the firm. These include: (a) organisational structure (b) organisational status quo (c) organisational resources (d) all of the above An automobile manufacturing organisation is introducing new computer technology that will replace some workers' jobs. Only the workers who are involved with soldering door panels will be affected by this change. This is an example of: (a) radical change (b) planned organisational change (c) unplanned organisational change (d) incremental change

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10. Using Lewin's (1951) theory of restraining and driving forces for change, to overcome resistance to change an organisation should: (a) ensure a new CEO is employed (b) ensure the need to survive is recognised (c) overcome the lack of resources such as employee skills and abilities (d) ensure employees are willing to change Answers

A. 1(a) 2(c) 3(a) 4(d) 5(b) 6(b) 7(a) 8(d) 9(b) 10(c) Topic 1: Concept of Strategic Management A. Multiple Choice Questions 1. Which of the following is not a recognized element of corporate strategy? a. Competitive advantage b. Closure c. Acquisition d. Divestment e. All of the above 2. Which of the following statements is false? Formal strategic planning: a. implies determined actions for achieving objectives b. is a time consuming process c. should develop clear and rigid plans for the organization to implement d. is most applicable in stable environments e. None of the above 3. Which of the following statements best describes the concept of strategic awareness? a. Managers understanding of the organizations history, competencies, and current strategy b. Managers understanding of current strategy and its effectiveness c. Managers understanding of the strategic options available to the organization d. Managers understanding the organizations strategy, its effectiveness, and the potential avenues for change e. None of the above 4. Which of the following is associated with successful strategies? a. Creating superior value to customers b. Exploitation of key success factors c. Creating and maintaining strategic fit d. Achieving specified strategic objectives e. All of the above 5. Which type of strategies are of particular importance to global companies? a. Corporate b. Functional c. Competitive d. Corporate and competitive e. Corporate, competitive, and functional 6. Which one of the following is of concern for not-for-profit organizations? a. The markets to service b. Identifying suppliers to deal with c. Developing capabilities d. Which customers to target e. Building monopolies 7. Select the statement that best applies to emergent strategies. Emergent strategy... a. implies an ability to react to events b. implies deliberate evaluation and selection between different strategic options c. implies strategizing d. implies no deviation from plans e. implies constant evaluation of the bigger picture 8. Select the most accurate statement. Value: a. means value for money b. is best described as the benefits the business chooses to give to customers through its product/service c. is the benefits of a product/service as perceived by the customer d. does not offer competitive advantage e. is not a key element of competitive strategy 9. Which of the following statements best describes strategic management? a. A process consisting of determining objectives and strategic actions to achieve those objectives

b. A process consisting of determining objectives, strategic actions to achieve those objectives, the implementation of desired strategy, and the monitoring of that strategy c. A process consisting of the determination of direction, strategic actions to achieve objectives, the implementation of desired strategy, and monitoring of that strategy d. A process for determining direction, strategic actions to achieve objectives, and the implementation of desired strategy 10. Which one of the following would not be considered a functional strategy? a. Financial b. Marketing c. Product-market d. Operations e. None of the above 11. Strategy effectiveness and competitive success is dependent on which of the following groups of competencies? a. Change, planning, learning b. Content, change, planning c. Content, change, learning d. Learning, planning, content 12. Which of the following competencies relates to functionality? a. Providing excellent quality which is recognized by customers b. Developing and introducing new processes for cost savings and speedier decision-making c. Manage 'green' issues to avoid crises or create competitive advantage d. Avoid business failures by becoming and staying crisis averse 13. Doing things right and doing the right things are also known as? a. Efficiency and effectiveness b. Strategic competency and congruence c. Strategic competency and strategy creation d. Corporate strategy and synergy 14. Which of the following elements of strategy affect the process of strategy creation and implementation? a. Synergy b. The strategic leaders perspective on strategy c. Structure d. Strategic paradoxes 15. Miles and Snow (1994) identify four main reasons for failure. Which of the following is one of those reasons? a. Lack of competitive advantage b. Lack of strategy competency c. Lack of strategic resources d. Poor judgement leading to poor, inappropriate strategic decisions 16. How does Checkland (1981) describe an organization? a. A collection of people who are trying to act with purpose b. Systems that comprise a collection of people who are trying to act with purpose c. A collection of people that act with little purpose d. A collection of systems and functions, inclusive of its people 17. How might an organization spot, create, and exploit new opportunities ahead of its rivals? a. Through managers in the various businesses working together, sharing information and capabilities, helping each other, and creating synergy. b. Through managers in the various businesses sharing information, capabilities, and creating synergy. c. Through managers in the various businesses working together, sharing information, and sharing capabilities. d. Through managers in the various businesses working together to create strategic competencies for the organization in order to pursue opportunities. 18. Which of the following is not a competence recognized by Richardson and Thompson (1994)? a. Strategic thinking b. Managing paradoxes c. Innovative climate d. Providing excellent quality 19. Which of the following is not a recognized performance outcome for an organization? a. Strong financial performance b. Committed employees

c. High level of service d. Customer retention 20. If an organization is to survive, which of the following is most essential? a. Supernormal profits b. Market share c. Meeting stakeholder needs and expectation d. Meeting financial targets and satisfying investors B. True and False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. The first phase of the strategic management process is forecast-based planning. One benefit of strategic management is a sharper focus on what is strategically important. Electronic commerce refers to the use of the Internet to conduct business transactions. Learning organizations are skilled at experimenting with new approaches. SWOT is an acronym used to describe Strengths, Weaknesses, Opportunities, and Technologies. An objective is an open-ended statement of what one wants to accomplish with no quantification of what is to be achieved and no time criteria for completion. Standard Operating Procedures (SOP) is shorthand for procedures. A period of strategic drift may simply result from inertia on the part of the organization or may simply reflect management's belief that the current strategy is still inappropriate and needs only some "fine-tuning." Logical incrementalism involves the systematic gathering of appropriate information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. A strategic audit provides a checklist of questions, by area or issue, that enables a systematic analysis to be made of various corporate functions and activities. Environmental scanning is the monitoring, evaluation, and disseminating of information from the external and internal environments to key people within the corporation. Demographic trends are part of the political-legal aspect of the societal environment. A multinational corporation (MNC) is a company with significant assets and activities in multiple countries. The willingness to reject unfamiliar as well as negative information is called strategic myopia. A possible entry barrier is the presence of homogenous products. Intense rivalry can result from a firm's capacity. Bottled water is a substitute product for soda. At the maturity stage of the industry life cycle, products tend to become more like commodities, and this is now a fragmented industry. Reactors are companies with a limited product line that focus on improving the efficiency of their existing operations. Competitive intelligence is a formal program of gathering information on a company's competitors.

Answers A. 1(a), 2(c), 3(d), 4(e), 5(d), 6(a), 7(a), 8(c), 9(c), 10(c), 11(c), 12(b), 13(a), 14(d), 15(d), 16(b), 17(a), 18(b), 19(c), 20(c) B. 1 F, 2 T, 3 T, 4 F, 5 F, 6 F, 7 T, 8 T, 9 F, 10 T, 11 T, 12 F, 13 T, 14 T , 15 F , 16 T, 17 T, 18 F, 19 F, 20 T Topic 2: Strategic Human Resource Planning B. True and False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. A contingency approach to people management implies that HR specialists must always be involved at the strategic decisionmaking level. The levels at which strategies are commonly formulated in business organisations are named as corporate, business and functional. A marketing strategy is an example of a functional strategy. The three generic business strategies described in the work of Michael Porter are cost leadership, differentiation and internationalisation. The management of diversity is regarded as one of the key elements in modern HR strategies. Work study is a technique used to estimate demand for employees based on historical ratios from previous experience of production. A high stability index indicates that most of the labour turnover in an organisation is occurring among new recruits. British labour force projections for 2006-2020 indicated an increasing participation rate among women. The term activity rate effects refers to the effect the birth rate has on the size of the labour force. People who work part-time are not included in the calculation of the size of the labour force. A slack labour market means that employers find it hard to recruit new employees. The CIPD reported in 2007 that employers cited a lack of numeracy as a problem among school leavers. A lack of skills among an organisations internal supply of human resources is known as a skills shortage. In todays business environment, it is unlikely that the projected demand for human resources will be equal to forecast internal supply.

15. If the internal supply of human resources is greater than future demand, it will be necessary to make some of the workforce redundant. 16. Succession planning may lead to turnover of high performers if not communicated across the organization 17. Succession planning acts as a retention strategy in organizations 18. Succession planning is a source of raised expectations and implied contracts for employees in the organization 19. Layoff is not a strategy to manage surplus of manpower in an organization 20. A firm can manage shortage of labor by reducing outsourced work. C. Fill in the Blanks 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The use of a _____________ _____________ is an alternative to developing an individual person specification to describe the qualities and abilities employers are looking for in their employees. When job design purposively takes motivation factors into consideration, jobs will be designed to include elements of ______________, ________________ and __________________. A recognized way of increasing the motivational potential of jobs is to design them to be done by ______________. Computerized systems of personnel data are commonly known as ____________ _____________ ___________________ ______________. Employers can create a ______________ _______________ to record the full range of competencies that employees possess (i.e. including those abilities not currently exploited). The labour turnover rate is also known as the _________________ rate. In order to evaluate whether they will be able to obtain an adequate supply of employees to achieve their goals, employers need to assess the ___________ __________ and the ____________ ______________ of human resources. What do you obtain if you make the following calculation: (number of employees with 1 year or more of service number of people in post 1 year ago / total number of employees) x 100? ______________ ________________ Changes in the numbers of people in the labour force are caused by a combination of ___________ _____________ and _______________ _____________ ______________. When employers experience ongoing difficulties in filling vacancies, this is defined as demonstrating the existence of ____________ _______________. The identified consequences of skills shortages and skills gaps on operational effectiveness include __________ __________ of _____________ ______________, ________________ __________________, and inability to _______________ _________________ _______________. The four main areas in which an organization may develop Human Resource strategies are __________________, ___________________, ____________________ and _____________________. In addition to recruiting new employees, organizations might consider _______________ and ________________ planning for their existing employees in order to meet demand for increased skill levels. When formulating Human Resource reward strategies, organizations should ensure that rewards are linked properly to the ________________ of __________________ ______________. Improved employee relations may be achieved through action plans that focus on better ____________________, ___________________, ____________________ ______________________ and ____________________

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Answers B. 1 F, 2 T, 3 T, 4 F, 5 T, 6 F, 7 T, 8 T, 9 F, 10 F, 11 F, 12 F, 13 F, 14 T, 15 F, 16 T, 17 T, 18 T, 19 F, 20 F C. 1. Competency Framework, 2. Variety; Responsibility; Autonomy 3. Teams 4. Human Resource Information Systems 5. Skills Inventory 6. Wastage or Separation 7. Internal Supply; External Supply 8. Stability Index 9.Population Effects; Activity Rate Effects 10. Skills Shortages 11. Poorer Level Of customer Service; Lost Business; Develop New Products 12.Resourcing; Development; Reward; employee Relations 13 Career; Succession 14.Achievement; Corporate Goals 15. Consultation; communication; Employee Involvement; Partnership Topic 3: Strategy Driven Role Behaviors B. True and false 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. A firm following the cost leadership strategy is short term focused A firm following the cost leadership strategy is a risk taker A firm following the cost leadership strategy is predictable results oriented A firm following the cost leadership strategy is not comfortable working by itself and interacts freely with the environment. A firm following the cost leadership strategy has virtually no training programmes A firm following the cost leadership strategy has long term appraisal systems A firm following the cost leadership strategy very specialized jobs Firms pursuing innovative strategy are highly creative A firm following the innovative strategy is a risk taker and is oriented towards the long run A firm that undertakes the innovative strategy offers flexible compensation packages to its employees Firms pursuing the quality strategy offer extensive training programmes for their employees Firms pursuing the quality strategy rely on participative decision making Firms pursuing the quality strategy focus risk reduction

14. Firms pursuing the quality strategy place emphasis on their production/service processes 15. Firms pursuing the cost leadership strategy have performance management systems that emphasize results in the long term Answers B. 1 T, 2 F, 3 T, 4 F, 5 T, 6 F, 7 T, 8 T, 9 T, 10 T, 11 T, 12 T, 13 T, 14 T, 15 F Topic 1: Selection of Employees B. True and False 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Selection interviews have been proven by research to be high in validity as a selection method. The initial screening of applications is best carried out by one person to eliminate the possible influence of other peoples biased opinions. The halo effect occurs when interviewers seek to hire people who are similar to themselves. Stereotyping is an example of a perceptual error. A question which invites a response of yes or no is known as an open question. Leading questions are usually the most effective type of question for eliciting relevant information from candidates. Behavioural questions have been found to improve the validity and reliability of interviews. Situational questions are likely to be more effective than behavioural questions if previous experience is not a criterion on the person specification. Structured interviews mean that interviewers must avoid individualised questions at all costs. Employers are entitled to request information about sex, race, disability and age of applicants at some stage in the recruitment and selection process if they intend to use it to monitor for equal opportunities. Individual companies are meant to adapt the administration and scoring of commercially available psychological tests so that the results correlate well with their particular organisational culture. The basic level of training which qualifies persons to use ability tests is the BPS Certificate of Competence in Occupational Testing (Level A). The BPS Certificate of Competence in Occupational Testing (Level A) qualifies its holders to use personality questionnaires. One indicator of when to use psychological tests is when the selection ratio is high. According to Smith and Robertson (1993), tests of interest and motivation are not suitable for use in the selection process. The IDS (2002) identified peer and self-assessment as the most frequently used exercise in assessment centres. Work sample tests are a type of job simulation. The levels of certificate available from the Criminal Records Bureau are called routine and advanced. Graphology tests are widely used in the UK as a selection method. There is a legal obligation on employers to actively check that all new employees have a legal right to work in the UK. Reverse discrimination is one of the types of unlawful discrimination outlined in the Sex Discrimination Act 1975. When someone is treated less favourably because that person has made a complaint or indicated an intention to make a complaint about sex or race discrimination, this is known as indirect discrimination. There is no qualifying period of employment required for a person to be able to take a complaint about any type of unlawful discrimination to an Employment Tribunal. Under the Disability Discrimination Act 2005, employees with cancer must be impaired by their symptoms before they are covered by the legislation. Disability is defined in the Disability Discrimination Act 1995 as any mental or physical impairment which has a substantial and long-term adverse effect on a persons ability to carry out normal day to day activities. Severe disfigurement may be held to be a disability under the Disability Discrimination Act 1995. All employers must accept that they have no right to know about previous offences of job applicants once their convictions are spent as defined in the Rehabilitation of Offenders Act 1974. There is no such thing as a genuine occupational requirement with regard to sexual orientation. The monitoring of job applications for equality purposes is compulsory under all of the equality laws. Managing diversity is simply a matter of offering all types of people equal access to jobs in a company in the expectation that they will then adapt to the organisations culture.

C. Fill in the blanks 1. 2. 3. 4. 5. 6. 7. Because of skills shortages, _____________ __________________ has become well-established as a priority for HR. For the best results, it is important to adopt a _____________ approach to recruitment. An internal recruitment policy shows that employers _______ their employees, wish to ________ them, and provide them with opportunities to ___________. If an established employee no longer wishes to work full-time and prefers part-time hours, one alternative is to recruit for a ______________ partner. The name of the process used to gather information and produce job descriptions and person specifications is _____ ___________. The techniques that can be used for job analysis include ________________, critical _____________ analysis, and the use of __________________ and interviews. An important pointer when writing job descriptions is to use _________ to indicate what a person will be doing.

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17. 18. 19. 20. 21. 22. 23. 24. 25.

John Munro Fraser developed the ____________ ___________ and Alec Rodger developed the ______________ _______ as bases for developing person specifications. The use of a _____________ _____________ is an alternative to developing an individual person specification to describe the qualities and abilities employers are looking for in their employees. Competencies required of all employees in an organisation are known as ______ competencies. 80% of respondents to a 2007 CIPD survey emphasised that they use their ____________ _______ in order to attract desirable recruits. Techniques that have been used in job advertisements to attract the reader's attention include the use of ___________ and ______ or ______________ statements. Organisations often use ________ and __________ to draw attention to their job advertisements. Limiting recruitment to those who prefer to use the Internet for job searches may have a negative effect on workforce ___________. Companies can engage in ______ ______ to encourage members of under-represented groups to apply for vacant positions. Initial screening of applications should be carried out with direct reference to the ______ ___________________, _____________ ____________________ and ______________________ _________________________ for the job in question. Having more than one person involved in systematically screening applications to draw up a shortlist for interviews should increase the ________________________ of the process. The CIPD reported in 2004 that _________________ ___________________ was becoming more popular as part of the initial screening process, particularly with the growth of call centres. The tendency to evaluate a candidates abilities inappropriately high because he/she f ollows a poor performer is known as the __________________ ________________. Training programmes for selection interviewers normally include awareness of ______________ __________________________ and development of _________________________ skills. A ___________________ interview will help to eliminate some interviewer errors. In addition to the ability to ask effective questions, ____________________ is an important skill for interviewers. Two types of question that have been shown to improve the validity and reliability of interviews are the _____________________ and _______________________ question. Questions about a persons leisure activities outside of work might be regarded as an infringement of a persons ____________ ______ ________________ under the __________________ __________________ Act 1998. A scoring system applied to candidates responses can contribute to a more ______________________ __________________________ of the information obtained.

Answers B. 1 F, 2 F, 3 F, 4 T, 5 F, 6 F, 7 T, 8 T, 9 F, 10 T, 11 F, 12 T, 13 F, 14 T, 15 T, 16 F, 17 T, 18 F, 19 F, 20 T, 21 F, 22 F, 23 T, 24 F, 25 F, 26 F, 27 F, 28 F, 29 F, 30 F C. 1. talent management, 2. Systematic, 3. Value, retain, develop, 4. Job share, 5. Job analysis, 6. Observation, incident, questionnaires, 7. verbs, 8. Five-fold network, seven-point plan, 9. Competency framework, 10. core, 11. Employer brand, 12. Questions, bold, controversial, 13. Color, graphics, 14. diversity, 15. Targeted recruitment, 16. Job description, person specification, competency framework, 17. objectivity, 18. Telephonic interviewing, 19. Contrast effect, 20. Equal opportunity, questioning, 21. structured, 22. listening, 23. Situational, behavioral, 24. Right to privacy, human rights, 25. Objective evaluation Topic 2: Strategically Oriented Performance Management System A. Multiple Choice Questions Select the most appropriate one 1. Bernie uses his knowledge of customer service and his understanding of electronic devices and components in his job as a salesperson in a Dick Smith store. What type of performance is he displaying? (a) contextual performance (b) technical performance (c) job performance (d) task performance 2. Both Gary and Bernie work in a Dick Smith electronic store. Gary is the manager and is expected to ensure the store reaches specific sales targets each month. Bernie is a sales person and is required to keep customer satisfaction high. What factor of performance are these examples of? (a) outputs (b) managerial performance (c) sales performance (d) inputs 3. There are five characteristics of performance management that HR managers need to consider before conducting performance reviews. ProGrow, a sports clothing manufacturer, has a goal of increasing its production volume by 10% each month. In order to achieve this goal each machinist must produce 15 more items per day. This is an example of: (a) horizontal integration (b) a process of continuous input and output management (c) a multifaceted and multilevel agreement of input and output

(d) vertical integration The performance management process seeks to link the formal appraisal process to the organisation's: (a) strategic goals (b) stakeholder needs (c) culture (d) organisational structure 5. Performance appraisals can be used in an organisation to: (a) identify and fill performance gaps for individual employees (b) plan and review employee performance (c) quantify the performance of individual employees (d) all of the above 6. When rewarding employees for the work they perform the manager should recognise: (a) both the work they perform that is required and the discretionary behaviours they engage in at work (b) the discretionary behaviours they engage in at work (c) the quality and quantity of work they produce (d) the actual knowledge, skills and abilities the employee needs to perform the job 7. One way to improve the performance appraisal meeting is to use procedures that are fair, such as giving the employees opportunities to voice their view of their own performance or opportunities to discuss the manager's ratings of their performance. This is an example of: (a) engaging in strategic communication (b) giving feedback and performance information (c) eliciting input from the employee (d) giving positive and negative feedback 8. The performance appraisal approach that requires managers to record specific examples of effective and ineffective performance is called: (a) graphic rating scale (b) management by objectives (c) behaviour observation scale (d) critical incidents method 9. According to Conway (1999) when peers are involved in the 360 degree feedback method of performance appraisals what aspects of their colleagues' work would they be most likely to comment on? (a) specific job-related knowledge, skills and abilities (b) the contextual performance of the employee such as interpersonal skills (c) cognitive abilities, skills and experience (d) none of the above, they are not involved in the 360 degree feedback method of performance appraisal 10. Len was rating the performance of Katherine, one of his sales representatives. When Katherine saw her performance ratings she noticed that Len had mostly given her the highest rating of 5, even on criteria that she would have given herself a rating of 3. Len has likely committed what type of rater error? (a) halo effect (b) relationship effect (c) leniency bias (d) recency effect B. True/False Questions 1. Subjective measures in performance appraisal are most desirable. 2. Performance appraisals can reduce bias. 3. Employee self appraisals are a good way to decide promotions. 4. Using multiple raters improves evaluations. 5. Assessment centre technique is costly and time-consuming. 6. Rating scales are particularly subject to bias. 7. Evaluation interviews require careful preparation. 8. Behavioral techniques focus attention on ratings rather than on observation. 9. Objective appraisal measures are always popular with employees. 10. Job analysis is the basis for performance standards. 4. Answers: A. Multiple Choice Questions 1. d, 2. a, 3. b, 4. a, 5. d, 6. a. 7. c, 8. d, 9. b, 10. c B. True/ False 1. F, 2. T, 3. F, 4. T, 5. T, 6. T, 7. T, 8. F, 9. F, 10. T Topic 3: Strategically Oriented Compensation Systems A. Multiple Choice Questions 1. As part of the benefits package available to her, Nancy chose the options of subsidised childcare, salary sacrifice to lease a car and to have a moderate level of health insurance. The benefits that Nancy has chosen represent what types of rewards? (a) intrinsic rewards

(b) first choice rewards (c) extrinsic rewards (d) non-financial rewards 2. Together with his manager, Bill developed a goal for the next appraisal period of increasing customer sales by 5%. This goal was quite challenging for Bill as he sells in an extremely dispersed geographic region. This is an example of: (a) goal setting theory (b) reinforcement theory (c) equity theory (d) expectancy theory Wyatt designed a reward strategy that would encourage and reward employees for behaving in a way that reinforced the key values and culture of the company. Wyatt was rewarding employees for meeting: (a) self-esteem needs (b) safety needs (c) individual needs (d) organisational needs In the past, minimum wages were determined by the Australian Industrial Relations Commission. Now they are determined by the Australian Fair Pay Commission. What is the expected outcome of this? (a) over time lower paid workers will receive much more than before (b) over time higher paid workers will receive much more than before (c) over time higher paid workers will receive much less than before (d) over time lower paid workers will receive much less than before There are several factors that proactive reward management should include. Which of the following is not one of these factors? (a) ensuring compliance with reward-related legislation (b) ensuring job worth is consistent with the market worth (c) encouraging overtime work and pay (d) frequently updating all job descriptions by reporting all changes in jobs Broadbanding, the collapsing of a large number of salary grades into a few wide bands where each grade includes a wide range of jobs and salaries, aims to ensure (a) job motivation (b) external equity (c) job satisfaction (d) internal equity Performance pay is comprised of: (a) discretionary bonuses and incentives (b) salaries and wages (c) wages and incentives (d) salaries and bonuses Which of the following pay-for-performance programs does not use an incentive payment as a group reward method? (a) Rucker Plan (b) earnings-at-risk (c) Scanlon plan (d) merit pay One of the internal factors that may affect pay strategies is ability to pay. When organisations predict that future profits may decline an alternative would be to: (a) focus on the benefits offered to employees (b) focus on the base pay offered to employees (c) focus on intrinsic motivational factors such employee need for recognition, self-determination and achievement (d) focus on the bonuses paid to employees

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10. When organisations base pay decisions on identifying particular employee attributes that serve business objectives and reward those attributes more than other attributes it is using: (a) team-based rewards (b) employability pay (c) market-determined pay (d) person-based pay B. True and False

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

Reward management is based on the belief that employees should be rewarded in an equitable manner and that reward formulation and implementation should be aligned with the strategic direction and values of the organisation. An individual employment contract made between an employer and an employee must not exceed the 5 minimum conditions of employment. One of the disadvantages of performance pay is that it cannot adequately differentiate between high and low performers and reward them appropriately. Non-financial rewards such as opportunities for self-direction, recognition from the CEO or opportunities for personal growth are not as motivational to employees as financial rewards and so should not form part of the reward management system. In order to cope with today's dynamic changing environment, reward management should aim to compete in the labour market by paying market-competitive pay. Whole job ranking is a form of non-analytical job evaluation scheme. Paired comparisons is a form of non-analytical job evaluation scheme. Points rating is a form of non-analytical job evaluation scheme. One advantage of the job classification form of job evaluation is that it is simple to operate. Analytical job evaluation schemes do not contain any form of subjectivity. Whatever payment system is chosen in an organisation will give a message to the workers about the issues and values that the organisation feels are important. Time rates are the most complex of all the types of payment system. Those employers who feel that their workers are motivated by the satisfaction gained from the job itself will want to pay bonuses or performance related pay. Total reward is a concept that recognizes that pay is not the only motivating factor for people. It offers flexible benefits that also include aspects of work such as career development or personal development as part of the reward package. An incremental pay scale normally rewards people for staying with an organisation and encourages a unstable workforce. Piece work systems are another name for incremental pay schemes. Plant or enterprise-wide payment by results schemes are used when an individualistic reward system is required in the organisation. Measured day work is an individualised payment scheme. Non monetary rewards can form a useful part of a performance related pay scheme. Performance-related pay is sometimes referred to as merit rating. Performance-related pay may sometimes involve non-financial rewards. One very flexible system of payments is sometimes referred to as the cafeteria approach. The fact that other European countries now use the Euro as a common currency has no effect on payment in British companies. The Equal Opportunities Commissions revised Code of Practice o n Equal Pay (2003) states that all organisations should carry out regular, transparent equal pay reviews as a means of ensuring equal pay is achieved. The opportunity to commend someone can be an important motivational tool.

Answers A. 1(c) 2(a) 3(d) 4(d) 5(c) 6(c) 7(a) 8(d) 9(c) 10(d) B. 1T 2F 3F 4F 5F 6T 7T 8F 9T 10F 11T 12F 13F 14T 15F 16F 17F 18T 19T 20T 21T 22T 23F 24T 25T Topic 4 : Managing Workforce Diversity 1. Workforce diversity can be described as: (a) individual differences such as race, gender, age, sexuality and religious beliefs (b) group identity such as race, nationality, gender and age (c) individual differences such as educational level, work experience and attitudes towards others (d) group identity and individual differences that are visible or invisible The Australian Government stipulates that all employees should have equal opportunities to participate in work, have access to training and be promoted in the workplace. This is an example of which case for diversity? (a) regulatory (b) moral (c) legal (d) business A manager in an organisation treats employees who are members of her 'in group' more favourably than employees who are members of her 'out group'. This is consistent with: (a) social categorization theory (b) the similarity attraction paradigm (c) autonomous work teams theory (d) social identity theory

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When people are included and treated with respect by others they often feel capable of performing their work and rise to challenges and increased responsibility. This is a positive outcome of diversity known as: (a) innovation (b) empowerment (c) productivity (d) group decision effectiveness In 1980 Geert Hofstede developed dimensions of national culture. These dimensions were: (a) power distance, uncertainty avoidance, time orientation and individualism versus collectivism (b) uncertainty avoidance, time orientation, individualism versus collectivism and masculinity versus femininity (c) power distance, uncertainty avoidance, time orientation and masculinity versus femininity (d) power distance, uncertainty avoidance, individualism versus collectivism and masculinity versus femininity A managerial initiative that employs, develops and promotes a wide variety of employees to their full potential and recognises the value of this to the firm's competitive advantage is: (a) affirmative action (b) equal opportunity employment (c) diversity management (d) non-discriminatory employment Sharyn, a group leader, realises that members of the group often disagree with each other. In order to resolve this she encourages everyone to contribute to group decisions, to listen to others and respect other's opinions. Sharyn shows she has: (a) emotion management skills (b) conflict management skills (c) diversity management skills (d) dissimilarity openness Organisations that do not practice diversity-open recruitment and selection will not have: (a) organizational objectives that reflect diversity values (b) employees who understand one another (c) employees who work to the maximum level of their abilities (d) the human resources necessary to meet the challenges of a diverse marketplace Alex's recent personal development plan states one objective as "to develop an increased awareness and understanding of people's differences". This is an example of: (a) diversity-open training and development (b) diversity-open performance evaluation (c) diversity-oriented HRM (d) diversity-open recruitment and selection

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10. There are several advantages for an organisation that values a diverse workforce. Which of the following is a disadvantage? (a) having an increase in conflict between employees due to their difference (b) being seen as an employer of choice (c) having a competitive advantage (d) having the ability to attract and retain the knowledge and abilities of highly skilled staff B. True and False 1. 2. Unobservable differences between people include their values and beliefs, their sexual orientation and their skills and knowledge. The similarity attraction paradigm states that in diverse organisations people from comparable cultures tend to socialise together because they have comparable backgrounds and understand each other better than people from different backgrounds do. The national culture of a country does not impact on the way people who live in that country interact at work. When employees focus their efforts on dealing with social conflict and are unable to take in all relevant information when doing a task, this is unlikely to affect them emotionally. Problems often arise in diversity management because while the organisation adopts diversity-open recruitment and selection policies they do not support this with other diversity-open HRM policies.

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Answers A. 1(b) 2(c) 3(a) 4(b) 5(d) 6(c) 7(a) 8(d) 9(b) 10(a) B. 1T, 2T, 3F, 4F, 5T

Topic 5: Cultural Issues of Expatriates

A. Multiple Choice Questions 1. The country where the headquarters of a multinational company is located is known as (a) host country (b) home country (c) third country (d) None of the above When an international firm follows a strategy of choosing only from the nationals of the parent country, it is called (a) polycentric approach (b) geocentric approach (c) ethnocentric approach (d) None of the above When the firms adopt a strategy of limiting recruitment to the nationalities of the host country where the branch is located, it is called (a) polycentric approach (b) geocentric approach (c) ethnocentric approach (d) None of the above When the firms choose a strategy of recruiting the most suitable persons for the positions available in the firm, irrespective of their nationalities, it is called (a) polycentric approach (b) geocentric approach (c) ethnocentric approach (d) None of the above Which of the following factors is not related directly to the success of expatriate assignments? (a) the personality of expatriate employees (b) the intentions of expatriate employees (c) the incapability of the spouse to adjust to the new situation (d) the nature of products produced by the company The management of the organisation's employees in more than one country is known as: (a) strategic global HRM (b) global strategic HRM (c) strategic international management (d) strategic international HRM Subway restaurants train employees at four different locations around the world. During training the employees are taught the values and vision of the organisation as well as how to make Subway sandwiches. This ensures that world travellers will feel 'at home' when they enter a Subway restaurant. Subway has adopted: (a) an international approach to SIHRM (b) an adaptation approach to SIHRM (c) a global approach to SIHRM (d) a localised approach to SIHRM Bakers Delight decides to expand internationally. It realises that in order to do this it needs to adopt a unified corporate culture and recruit the best employees from anywhere in the world. Each new subsidiary will therefore have the power to determine its own strategy and practices. In this instance Bakers Delight is adopting: (a) a regiocentric management orientation (b) a polycentric management orientation (c) an ethnocentric management orientation (d) a geocentric management orientation Thailand has a collectivist culture and ranks highly on the dimension of power distance; this is very different to Australia's national culture. An Australian organisation that expanded into Thailand would likely need to: (a) deal with unions less often than it would in Australia (b) deal with unions more often than it would in Australia (c) deal with unions as often as it would in Australia (d) establish unions in the workforce

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10. In order to 'go global' an organisation needs to consider the extent to which it will participate in international markets and competition. These levels of participation include (a) domestic, international, multinational and transnational (b) domestic, international, global and multinational (c) global, multinational, domestic and transnational (d) international, global, multinational and transnational 11. Organisations can determine if they are operating within the global arena by looking at all of the following characteristics except: (a) decreased and discontinuous worldwide connections (b) rapid, turbulent and discontinuous development (c) increased organisational complexity (d) a growth in the number and diversity of stakeholders 12. Porter (1980) identified five forces that will impact on the likelihood of success and level of competition an organisation can expect from operating in a new country. The HR manager should first identify the force and then the HR implications of each force. For example, an HR manager organised staff into teams to develop new ways to brand a product in order to differentiate it from other similar products in the marketplace. This strategy was a response to which of Porter's five forces? (a) threat of substitutes (b) barriers to entry (c) supplier power (d) intensity of rivalry 13. Expatriation is the process of sending a home-country national to a foreign country to work. This is often the choice of an organisation adopting: (a) an ethnocentric management orientation (b) a regiocentric management orientation (c) a geocentric management orientation (d) a polycentric management orientation 14. Before departure for overseas assignment, employees and their families receive training to aid their in-country adjustment. This training may include: (a) language lessons (b) learning about new cultures (c) developing support networks in the host country (d) all of the above 15. An organisation gains a sustained global competitive advantage when the most highly talented global employees are selected and motivated to work for the organisation. In this way the human resources of the organisation, rather than the financial or technical resources, are seen as the source of this sustained global competitive advantage. This reflects the: (a) resource-based view of SIHRM (b) global view of SIHRM (c) international HRM system (d) heterogeneous human capital view

B. True and False 1. 2. 3. 4. 5. Organization that adopted a globalised strategy while localising some of its practices would be using an adaptation approach to SIHRM. Because of the national cultures of different countries the SHRM strategy and practices that an organisation uses successfully in one location may not have the same impact in another location. Taxes, tariffs, quality controls and import/export restrictions are all government drivers for globalisation. Globalisation is unstoppable because leaders around the world have concluded that capitalism and open markets are the best means for achieving economic wellbeing. Employing home country staff for a global organisation is advantageous because they have more knowledge of the organisation; its systems, structures, culture and politics,

Answers A. 1b 2c 3a 4b 5d 6c 7c 8d 9a 10a 11a 12d 13a 14d 15a B. 1T 2T 3T 4T 5T