1.

In a succession/replacement chart, potential successors can be coded to indicate their

availability. If an employee is coded “RD,” what does this represent?
retention desired
ready with development
return to division
requires downsizing
ANSWER: b

2. Which employee characteristic is NOT typically associated with the process of

succession management?
a skilled
b trained
c available
d reliable
ANSW
d
ER:

3. What negative consequence might result if there is a delay in naming a successor when
a key executive, such as a CEO, suddenly quits?
a decreased operating performance for up to two years
b increased recruitment and selection of middle managers
c decreased opportunities for management development
d increased likelihood that the successor will be a family member
ANSWER: a

4. According to the CEO of Maritime Life Insurance, what is the best indicator of
whether an employee is ready for a top position?
a education
intelligenc
b
e
c rotation
d attitude
ANSW
c
ER:

5. What are two motivational benefits of job rotation?

a opportunity for advancement and training
b job satisfaction and job enlargement
c feeling appreciated and valued
d reduction of boredom and fatigue
ANSWER: d

6. In flat organizations, where promotions are rare, what preferred developmental method
is used?
a job enlargement
b job enrichment
c job rotation
d job sharing
ANSWE c
R:

7. Which of the following is NOT considered to be one of the most common development
methods?
a special assignments
b job rotations
c mentoring
d active learning
ANSWER: d

8. Which technique is often used by organizations to test whether high-potential

employees have management potential?
a give them a special assignment
b give them a greater workload
c give them a training opportunity
d give them a performance review
ANSWER: a

9. Which of the following would NOT be a risk that would be managed by HR

professionals when considering succession management?
a transition risk
b vacancy risk
c potential risk
d readiness risk
ANSWE
c
R:

10. What can HR professionals do to manage the risks associated with succession
management?
a promote a culture of talent management
b encourage development only for key positions
c identify historic gaps in competencies
d develop successors for all organizational positions
ANSWER: a

11. If an organization wishes to identify high-potential employees, which of the following

is a typical approach that might be used?
a replacement tables
b replacement charts
c permanent replacements
d supply replacements
ANSWER: b

12. According to the textbook, why do some CEOs develop a talent management culture?
a to develop talent at the top where it is most needed
b to develop talent at all levels of an organization
c to develop talent branding more than company branding
d to develop talent in-house before competitors do
ANSWER: b

13. According to MDS, a medical supply company, why does the company hire talent
even when there are no openings available?
a Recruitment is strategic.
b The company can pay less.
c The hiree can work two jobs.
d Someone is about to be fired.
ANSWER: a

14. According to a McKinsey study, what fraction of HR directors at top-performing

companies constantly search for talented executives?
a one tenth
one
b
quarter
c one third
d one half
ANSW
c
ER:

15. If a board of directors brings in an outsider to lead the company, what message is it
sending to the shareholders and employees?
a None of the internal candidates is proficient.
b The old way of doing things is going to change.
c The performance review process is inadequate.
d The internal candidates are all new as well.
ANSWER: b

16. Which of the following is NOT considered to be a downside of employee rotations?

a increased time spent learning new jobs
b cost of errors while learning new jobs
c loss of efficiency while learning new jobs
d increased fatigue while learning new jobs
ANSWER: d

17. According to the textbook, why have many Canadian dynasties failed?
a because their heirs were incapable of managing the business
b because they did not monitor the external environment
c because they expanded too quickly into global markets
d because they were unaware of anticipated mergers and acquisitions
ANSWER: a

18. Which organization cited in the textbook has a six-hour replacement strategy if its
CEO dies suddenly?
a Target
b Walmart
c Apple
d McDonald’s
ANSWE
d
R:

19. What is one way that replacement planning has evolved into succession management?
a improving the data collection
b improving the evaluation system
c improving the HR supply
d improving the stability of jobs
ANSWER: b

20. What is the typical time period that succession management focuses on, beyond
immediate replacements?
a one year
b two years
c three years
d ten years
ANSW
b
ER:

21. What is the first step in the succession management process?

a identify high-potential employees
b identify the skills and competencies needed
c align succession management plans with strategy
d provide developmental opportunities and experiences
ANSWER: c

22. Which of the following is NOT a competency identified by Catano and his
colleagues?
a knowledge competencies
b distinctive competencies
c role competencies
d core competencies
ANSWER: a

23. What two approaches are used to identify the characteristics of successful managers?
a task-based and knowledge-based
b job-based and competency-based
c skill-based and curriculum-based
d market-based and value-based
ANSWER: b

24. If a job requires proficiency in Facebook, what is this proficiency called?

a a competency
b an attribute
c a skill
d an ability
ANSWE
c
R:
25. What is the final step in the succession management process?
a identify high-potential employees
b identify the skills and competencies needed
c monitor succession management
d provide developmental opportunities and experiences
ANSWER: c

26. Which of the following is NOT a typical lag measure used in succession
management?
a decreased number of bosses as talent developers
b increased ratio of internal to external hires in key positions
c increased average number of candidates for key positions
d decreased average number of positions with no successors
ANSWER: a

27. Why must high-potential employees be given a reason to stay within an organization?
a because they have fragile egos and need positive affirmation
b because jobs are scarce and they need to hang onto them
c because career planning effectively eliminates job searches
d because competition for leadership talent is so intense
ANSWER: d

28. According to the textbook, what are two emerging career management concepts?
a organizational identity, and inward and political mindset
b self-directed career responsibility and horizontal career progression
c role of manager as coach and benefit of focusing on job security
d loyalty to profession and family and implicit employment contract
ANSWER: b

29. In the textbook, what reason is given why the majority of companies still use
traditional and passive instructional techniques for management development, although
they are the least effective?
a because these techniques are cheaper than external ones
b because these techniques are fast and easy to use
c because these techniques are controlled by the company
d because these techniques are customized to the company
ANSWER: b

30. Which of the following is a benefit to the organization as a result of using external
coaches?
a collaborating with the individual and enhancing personal values
b promoting greater focus and clarity to enhance goal achievement
c reducing learning time in order to optimize skills and competencies
d changing attitudes and skills for long-term sustainability
ANSWER: d

31. After an organization has identified high-potential employees, what would be the next
step in the succession management process?
a evaluating and monitoring the high-potential employees
b identifying the skills and competencies needed
c aligning succession management plans with strategy
d providing developmental opportunities and experiences
ANSWER: d

32. In succession planning, what would be the starting point for HR planning?
a the job position
b the organization’s strategy
c the employees’ competencies
d the role of the manager and employees
ANSWER: b

33. What is one way that replacement planning has evolved into succession management?
a broadened the HRM systems
b broadened the assessment process
c broadened the HR role
d broadened the focus to be more strategic
ANSWER: d

34. A replacement chart has potential management successors coded to indicate their
future availability. If a manager is coded “PN,” what does this represent?
a preferred nominee
b professional development needed
c promotable now
d practicum needed
ANSWER: c

35. What does the succession management process link with replacement planning?
a business continuity
b management retention
c management development
d changing environmental demands
ANSWER: c

36. After an organization has identified the skills and competencies needed to meet its HR
plans, what would be the next step in the succession management process?
a identifying high-potential employees
b monitoring and evaluating the employees’ skills development
c aligning succession management plans with strategy
d providing developmental opportunities and experiences
ANSWER: a

37. Which of the following is a risk that would be managed by HR professionals when
considering succession management?
a talent pool risk
b leadership risk
 c potential risk
d readiness risk
ANSWE
d
R:

38. What is one way that replacement planning has evolved into succession management?
a expanded the data collection
b expanded the time horizon
c expanded the HR role
d expanded the jobs requirements
ANSWER: b

39. After an organization has aligned its succession management with the organization’s
strategy, what would be the next step in the succession management process?
a identifying high-potential employees
b identifying the skills and competencies needed
c aligning the organization’s strategy with HR strategy
d providing developmental opportunities and experiences
ANSWER: b

40. Which of the following development method tests high-potential employees by giving
them an assignment in addition to their regular duties?
a formal experience
b job rotation
c mentoring
d action learning
ANSWER
d
:

41. According to the textbook, what are two emerging career management concepts?
a organizational identity and implicit employment contract
b employer career responsibility and horizontal career progression
c formal training and job security
d loyalty to profession and family, and meaningful contributions
ANSWER: d

42. Why is succession planning critical for effective HR planning?

It helps to develop employees with new experiences and jobs in case they
a.
laid off.
It helps employees to stay motivated because it promotes them for their
b.
performance.
c. It helps an organization to stabilize its organizational structures and flexib
It saves time and money and helps employees to smooth their movement f
d.
external hiring.
ANSWER: b

43. What is the normal planning time horizon for succession planning?
a one month
 one
b
quarter
c one year
d two years
ANSW
d
ER:

44. Why are Canada’s family businesses facing a leadership crisis?

a lack of business planning
b lack of environmental scanning
c lack of organizational goals
d lack of succession planning
ANSWER: d

45. Which of the following is NOT a way in which succession planning is linked to
effective HR planning?
a It enables smooth internal employee movement and continuity.
b It improves employee opportunities for management.
c It supports new organizational structures and flexibility.
d It motivates employees and promotes them for performance.
ANSWER: b

46. What is a traditional approach to succession analysis?

a chain effect analysis
b replacement analysis
c HR supply analysis
d movement analysis
ANSWER: b

47. Demographic trends predict even greater shortages in the market supply due to
retiring baby boom generation workers. What HR supply analysis method is therefore
assuming much greater importance?
a staffing inventories
b HRMS database
c succession planning
d movement analysis
ANSWER: c

48. Why would an organization want to conduct succession planning?

It provides for business continuity and future direction during inevitable
a.
change.
b. It supports employee resiliency and career development.
It is costly and time-consuming but increases employee commitment and
c.
motivation.
It is costly and time-consuming but increases organizational efficiency and
d.
productivity.
ANSWER: a

49. In replacement planning, what would be the starting point for HR planning?
 a the job
b the strategy of the organization
c employees’ competencies
d position replacements
ANSWER: a

50. In succession management, there must be a pipeline for talent only for critical roles
such as the CEO and senior management.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

51. Replacement planning is the process of finding replacement employees for key
managerial positions.
a True
Fals
b
e
ANS
WER True
:

52. According to Peter Drucker, only one quarter of organizations know who would take
charge if their CEO resigned today.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

53. If a contract is transactional in nature, it will list the responsibilities of each party in
the employer–employee relationship.
a True
Fals
b
e
ANS
WER True
:
54. According to the textbook, about one half of the HR managers surveyed in 2011
didn’t consider grooming potential leaders a high priority.
a True
Fals
b
e
ANS
WER True
:

55. Once high-potential or star employees are discovered, it is important for an

organization to communicate to them that they are valued and have leadership potential,
while at the same time making commitments to their promised career progression.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

56. Job rotation includes both lateral and vertical moves within an organization.
a True
Fals
b
e
ANS
WER True
:

57. Traditional approaches to management development included a senior leadership

course and one developmental assignment.
a True
Fals
b
e
ANS
WER True
:

58. One way of quickly orienting a new employee is to place him or her in a new
department every few weeks.
a True
Fals
b
e
ANS
WER True
:

59. Counselling and friendship are two benefits derived from mentorship.
 a True
Fals
b
e
ANS
WER True
:

60. HR should own the talent management process in order to mitigate three types of risk
to the organization: vacancy risk, readiness risk, and performance risk.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

61. According to the textbook, one benchmarking organization suggests that effective
organizations have 1.3 candidates for each key role.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

62. Before considering developmental opportunities and experiences to develop

managers, two main questions should be asked: “Are leaders born or made?” and “Should
leaders be bought or made?”
a True
Fals
b
e
ANS
WER True
:

63. Cisco uses the 3E Model for management development, which represents Experience,
Exposure, and Education.
a True
Fals
b
e
ANS True
WER
:

64. Mentors are almost always more senior people who volunteer within an organization,
while coaches are volunteers from outside the organization
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

65. An acceleration pool is a group of candidates whose development an organization

wishes to accelerate.
a True
Fals
b
e
ANS
WER True
:

66. A common use of job rotation is to take a functional generalist, such as an accountant,
and rotate this individual through specialist areas, such as HR and production, in
preparation for management.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

67. According to the textbook, one reason to recruit externally is that CEOs who are
recruited from the outside delivered annual returns 3.7 percent higher than insiders.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False
68. Peter Drucker said that “most managers are born, not made!”
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

69. There are two approaches to identifying the characteristics of a successful manager:
experience-based and competency-based.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

70. Core competencies are characteristics, such as business knowledge, shared by

different positions within an organization
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

71. The goals of succession management programs are to identify and prepare future
leaders and to ensure business growth.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False
72. Role competencies are characteristics, such as thinking skills, that every member of
the organization is expected to possess.
T
a r
. u
e
F
a
b
l
.
s
e
ANSWER: False

73. Succession management is needed even when retirements and company sellouts are
predictable.
a True
Fals
b
e
ANS
WER True
:

74. The succession management process links replacement planning and management
development.
a True
Fals
b
e
ANS
WER True
:

75. What is the difference between succession management and replacement planning?
Succession management is the process of ensuring that pools of skilled
employees are trained and available to meet the strategic objectives of the
organization.

Replacement planning is the process of finding replacement employees for key

ANSWER managerial positions.
: ∙ focus of replacement planning is the job and having someone to fill that job
∙ development of succession or replacement charts to fill key positions in the
organization
∙ consists of periodically updating the table of employees who might be
selected for promotions if the need arises
∙ depends on a stable future, including unchanging organizational structures

76. Why is succession management so important in today’s workplace?

ANSWER Succession management is important because:
: ∙ It ensures continuity in leadership by developing the “next generation of
players.”
 ∙ Organizations must prepare for expected and unexpected turnover.
∙ It plans for replacement of retiring staff.
∙ It provides opportunities for high-potential workers.

77. What are the five steps in the succession management process?
1. aligning succession management plans with strategy
2. identifying the skills and competencies needed to meet strategic objectives
ANSWER
3. identifying high-potential employees
:
4. providing developmental opportunities and experiences
5. monitoring succession management

78. What are three of the key characteristics that are critical to the perceptions of the
effectiveness of succession management?
∙ a timeframe for achieving planned action
∙ flexible adjustments to changes in strategic plans
ANSWER
∙ the sharing of information about the nomination process performance and
rankings with identified candidates
:
∙ visible support from top management
∙ the involvement of line management in the identification and development of
candidates

79. A succession management approach should track not only on internal candidates but
also external candidates. Discuss the advantages and disadvantages of internal and
external candidates? Which method is preferred?
ANSWER Advantages of Internal Candidates:
: ∙ Organizations have more and better information about internal candidates.
∙ Organizations that offer career development and opportunities to internal
candidates increase commitment and retention among their employees.
∙ Internally developed leaders preserve corporate culture.
∙ Internal candidates can hit the road running because they know the
organization, its people, and its processes. Other employees know the internal
candidate, and there is less internal disruption as a result of waiting to see who
the new executive is and what changes he or she will make. Internally chosen
executives do not replace those who report to them as often as external
candidates do; externally chosen candidates often get rid of the “old guard.”
∙ Recruitment and selection costs are lower. For example, the replacement cost
of a CEO is estimated to be $750 000, including the use of a search firm and
lost opportunities while getting the external candidate up to speed. Additionally,
internal candidates do not have to be compensated at the higher levels
demanded by external candidates (who face the risk of starting in a new
organization).

Advantages of External Candidates:

∙ The external candidate may have better skills to lead the organization through
a major transformation or change in strategy.
∙ The external candidate brings new knowledge and skills to the organization
and prevents the organization from becoming inbred and stale.

The list of advantages of internal candidates is more robust than that of external
candidates, and the reality is that about two-thirds of internal candidates do
succeed. Moreover, it appears that when a company is doing well, internal
candidates are favoured to sustain high performance because they possess
 valuable firm-specific knowledge. But overall, it appears that companies that
are performing well do better by hiring from within, and companies that are
struggling show better returns by hiring outsiders.

80. Describe how replacement planning has evolved into succession management.
Replacement planning has evolved into succession management by broadening
ANSWER
the focus, expanding the time horizon, creating a talent pool of replacements,
:
and improving the evaluation system.

81. Identify an organization you are familiar with (such as from your work experience or
from the course textbook). Discuss why the organization has succession planning.
∙ to improve internal candidate pools
∙ to assure business continuity
∙ to reduce skill gaps
ANSWER ∙ to retain employees
: ∙ to help individuals realize their career plans within the organization
∙ to develop leaders more quickly
∙ to encourage the advancement of diverse groups
∙ to improve employees’ ability to respond to changing environmental demands