Strategic Human Resources Planning

6th Edition Belcourt Test Bank

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Indicate whether the statement is true or false.

1. Mentors are almost always more senior people who volunteer within an organization, while coaches are
volunteers from outside the organization
a. True
b. False

2. According to Peter Drucker, only one quarter of organizations know who would take charge if their CEO
resigned today.
a. True
b. False

3. 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.
a. True
b. False

4. Succession management is needed even when retirements and company sellouts are predictable.
a. True
b. False

5. Role competencies are characteristics, such as thinking skills, that every member of the organization is
expected to possess.
a. True
b. False

6. 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.
a. True
b. False

7. Core competencies are characteristics, such as business knowledge, shared by different positions within an
organization
a. True
b. False

8. 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.
a. True
b. False

9. If a contract is transactional in nature, it will list the responsibilities of each party in the employer–employee
relationship.
a. True
b. False

10. In succession management, there must be a pipeline for talent only for critical roles such as the CEO and
senior management.
a. True
b. False
11. Replacement planning is the process of finding replacement employees for key managerial positions.
a. True
b. False

12. According to the textbook, one benchmarking organization suggests that effective organizations have 1.3
candidates for each key role.
a. True
b. False

13. The succession management process links replacement planning and management development.
a. True
b. False

14. 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.
a. True
b. False

15. The goals of succession management programs are to identify and prepare future leaders and to ensure
business growth.
a. True
b. False

16. One way of quickly orienting a new employee is to place him or her in a new department every few weeks.
a. True
b. False

17. 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
b. False

18. Cisco uses the 3E Model for management development, which represents Experience, Exposure, and
Education.
a. True
b. False

19. An acceleration pool is a group of candidates whose development an organization wishes to accelerate.
a. True
b. False

20. Counselling and friendship are two benefits derived from mentorship.
a. True
b. False

21. 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
 b. False

22. There are two approaches to identifying the characteristics of a successful manager: experience-based and
competency-based.
a. True
b. False

23. Peter Drucker said that “most managers are born, not made!”
a. True
b. False

24. Traditional approaches to management development included a senior leadership course and one
developmental assignment.
a. True
b. False

25. Job rotation includes both lateral and vertical moves within an organization.
a. True
b. False

Indicate the answer choice that best completes the statement or answers the question.

26. What is a traditional approach to succession analysis?

a. chain effect analysis
b. replacement analysis
c. HR supply analysis
d. movement analysis

27. 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

28. 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

29. 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
30. Which employee characteristic is NOT typically associated with the process of succession management?
a. skilled
b. trained
c. available
d. reliable

31. 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

32. 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

33. 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

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

a. a competency
b. an attribute
c. a skill
d. an ability

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

36. 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

37. 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

38. 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.

39. According to a McKinsey study, what fraction of HR directors at top-performing companies constantly
search for talented executives?
a. one tenth
b. one quarter
c. one third
d. one half

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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.

49. 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

50. 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

51. 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
52. 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

53. 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

54. 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

55. 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.

56. 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

57. 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

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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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
b. intelligence
c. rotation
d. attitude

65. 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

66. 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

67. In a succession/replacement chart, potential successors can be coded to indicate their availability. If an
employee is coded “RD,” what does this represent?
a. retention desired
b. ready with development
c. return to division
d. requires downsizing

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

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

69. 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

70. 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

71. 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

72. 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

73. 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

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

75. Describe how replacement planning has evolved into succession management.

76. What are the five steps in the succession management process?

77. 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?

78. What are three of the key characteristics that are critical to the perceptions of the effectiveness of succession
management?

79. 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.

80. What is the difference between succession management and replacement planning?
Answer Key
1. False

2. False

3. False

4. True

5. False

6. False

7. False

8. False

9. True

10. False

11. True

12. False

13. True

14. False

15. False

16. True

17. True

18. True

19. True

20. True

21. True

22. False

23. False

24. True

25. True

26. b

27. c
28. d

29. c

30. d

31. b

32. c

33. d

34. c

35. d

36. b

37. d

38. b

39. c

40. d

41. d

42. a

43. a

44. d

45. a

46. b

47. a

48. b

49. d

50. a

51. d

52. d

53. b

54. a

55. a
56. b

57. b

58. c

59. d

60. d

61. a

62. b

63. b

64. c

65. c

66. b

67. b

68. a

69. a

70. b

71. c

72. c

73. d

74. 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.

75. Replacement planning has evolved into succession management by broadening the focus, expanding the
time horizon, creating a talent pool of replacements, and improving the evaluation system.

76. 1. aligning succession management plans with strategy

2. identifying the skills and competencies needed to meet strategic objectives
3. identifying high-potential employees
4. providing developmental opportunities and experiences
5. monitoring succession management

77. 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.

78. ∙ a timeframe for achieving planned action

∙ flexible adjustments to changes in strategic plans
∙ 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. ∙ to improve internal candidate pools

∙ to assure business continuity
∙ to reduce skill gaps
∙ 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

80. 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 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