Professional Documents
Culture Documents
Strategic Human Resources Planning 7Th Edition Belcourt Test Bank Full Chapter PDF
Strategic Human Resources Planning 7Th Edition Belcourt Test Bank Full Chapter PDF
2. Which employee characteristic is NOT typically associated with the process of succession management?
a. skilled b. trained
c. available d. reliable
ANSWER: d
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 b. intelligence
c. rotation d. attitude
ANSWER: c
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
ANSWER: c
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
Copyright Cengage Learning. Powered by Cognero. Page 1
Name: Class: Date:
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
ANSWER: c
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. There are many reasons why organizations have succession management. According to your text, what is
one of these reasons?
a. to ensure upward advancement opportunities for employees
b. to increase employee satisfaction and commitment
c. to help individuals realize their career plans within the organization
d. to increase job engagement and job enlargement opportunities
ANSWER: c
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
ANSWER: d
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
ANSWER: b
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
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
Copyright Cengage Learning. Powered by Cognero. Page 4
Name: Class: Date:
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
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
ANSWER: d
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
43. What is the normal planning time horizon for succession planning?
a. one to two months b. one to two quarters
c. one to two years d. two years or more
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
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
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. Succession management used to focus mainly on the CEO. However, there must be a pipeline of talent for
the most critical roles. Which of the following is one of these pipeline positions?
a. senior management team b. managers
c. front line supervisors d. administrators
ANSWER: a
51. What are two motivational benefits of job rotation for employees?
a. upward advancement and development opportunities
b. employee satisfaction and commitment
c. feelings of equity and justice
d. job engagement and job enlargement
ANSWER: b
52. An organization wants to ensure it develops future leaders. The organization has begun the succession
management process by aligning its succession management plans with strategy. What is the next (second) step
the organization would take to ensure it develops its own future leaders?
a. Identify high-potential leaders.
b. Identify the leadership skills and competencies needed.
c. Develop an employee value proposition to retain leaders.
d. Provide leadership developmental opportunities and experiences.
ANSWER: b
53. According to your textbook, what is one reason organizations have succession management programs?
a. to improve employees’ ability to respond to changing environmental demands
b. to assist employees set realistic and attainable career plans
c. to improve performance management systems
d. to improve organizational development
ANSWER: a
54. With demographic trends predicting even greater shortages in the market supply due to retiring baby boom
generation workers, what HR supply analysis method is now assuming much greater importance?
a. staffing inventories b. HRMS database
c. succession planning d. movement analysis
ANSWER: c
56. Companies that have implemented effective succession management have experienced three outcomes.
According to your textbook, which of the following is one of these outcomes?
a. improved organizational development b. an increase in leadership development
c. an increase in shareholder value d. reduced absenteeism and turnover
ANSWER: c
57. What HR concept refers to the systematic process of determining critical roles within the organization,
identifying and evaluating possible successors, and developing them for these roles?
a. HR planning b. organizational development
c. leadership development d. succession management
ANSWER: d
58. What HR concept might be viewed as part of the talent management process of an organization that focuses
on the flow of employees, starting from selection to career management to exit, through the organization?
a. leadership development b. mentorship and coaching
c. succession management d. management development
ANSWER: c
59. Succession management used to focus mainly on the CEO. However, there must be a pipeline of talent for
the most critical roles that provide long-term value to the organization. Which of the following might be
considered as one of these critical roles?
a. scientists or customer relationship specialists
b. managers or front-line supervisors
c. administrators or marketing specialists
d. employees and managers
ANSWER: a
60. The effective implementation of succession management has been linked to three outcomes. According to
your textbook, which of the following is one of these outcomes?
a. improved performance management b. the retention of key talent
c. an increase in training and development d. improved career development
ANSWER: b
63. Most internal candidates succeed in their new organization. What is the percentage of success of internal job
candidates?
a. 50 percent b. 67 percent
c. 75 percent d. 80 percent
ANSWER: b
64. There are many reasons organizations have succession management. According to your textbook, what is
one of these reasons?
a. to improve internal and external candidate pools
b. to balance employee and employer needs
c. to recognize labour gaps
d. to retain employees
ANSWER: d
65. Research shows that when a company is doing well, internal candidates are favoured to sustain high
performance. What is the reason for this preferring of internal candidates?
a. They have high-potential leader skills.
b. They fit into a talent management culture.
c. They possess valuable firm-specific knowledge.
d. They are more committed to the organization.
ANSWER: c
66. An organization identifies the employees who are critical to the success of the organization. What is this HR
process called?
a. talent segmentation b. talent pooling
c. talent development d. talent management
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 10
Name: Class: Date:
68. A succession management approach not only depends on internal candidates but also tracks external
candidates. Which of the following is an advantage of external candidates?
a. External candidates bring new knowledge and skills to the organization.
b. External recruitment and selection costs are lower.
c. There is less internal disruption waiting to see who the new leader is with external candidates.
d. Organizations have more and better information about external candidates.
ANSWER: a
70. What is the most common and most effective leader development activity as rated by HR managers?
a. computer-based learning
b. tests, assessments, or other measures of skills
c. special projects within one’s own job responsibilities
d. coaching with external coaches or mentors
ANSWER: c
72. Which of the following is NOT a reason that links succession planning 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.
74. With demographic trends predicting shortages resulting from older retiring workers, what organizational HR
supply planning method is now assuming much greater importance?
a. expanding HRMSs in implementing effective supply forecasting procedures
b. expanding staffing inventories
c. long-term succession planning
d. short-term emergency succession planning
ANSWER: c
76. An individual worker’s skill and knowledge requirements are matched to the specific jobs within an
organization. What is this process called?
a. Markov analysis b. job specification and job matching
c. succession and replacement planning d. HRM systems
ANSWER: c
77. HR planning revealed that planning that dealt with determining which internal candidates were best suited
for promotion within an organization was a weakness. What is this weakness called?
a. job design b. succession planning
c. HR supply planning d. specification planning
ANSWER: b
78. Which of the following is NOT a risk that would be managed by HR professionals when considering
succession management?
a. transition risk b. vacancy risk
c. assumed risk d. readiness risk
ANSWER: c
80. Refer to Scenario: Pacific Health Care. Why would PHC want to conduct succession planning for effective
HR planning?
a. It enables PHC to respond appropriately when unpredictable changes occur.
b. It supports the PHC’s organizational dependency on skilled and knowledgeable employees.
c. Although succession planning is costly and time consuming, it increases employee commitment and
motivation.
d. Although succession planning is costly and time consuming, it increases organizational efficiency
and productivity.
ANSWER: a
81. Refer to Scenario: Pacific Health Care. Which of the following would NOT be a risk that would be managed
by PHC’s HR professionals when considering succession management?
a. transition risk b. vacancy risk
c. potential risk d. readiness risk
ANSWER: c
82. Refer to Scenario: Pacific Health Care. PHC obtained information about its RN and LPN jobs to determine
the duties, tasks, knowledge, skills, abilities, equipment used, working conditions, effort, job context, and
performance standards necessary to perform the work successfully. What is this HR process called?
a. job specification b. human resource planning
c. job evaluation d. job analysis
ANSWER: d
83. Refer to Scenario: Pacific Health Care. The administrators in PHC’s facilities need to prepare job
information that will list the tasks, duties, and responsibilities of the RN and LPN jobs along with the
knowledge, skills, and abilities needed for LPNs and RNs to successfully perform their jobs. What is this job
information called?
a. job performance standards b. job summary
c. job description d. job design
ANSWER: c
84. Refer to Scenario: Pacific Health Care. An LPN at PHC must be a current full practising licensure with the
College of Licensed Practical Nurses of British Columbia (CLPNBC). An individual worker’s LPN licence and
other skill and knowledge requirements are matched to specific jobs at PHC. What is this process called?
a. succession and replacement planning b. Markov analysis
c. job specification and job matching d. HRM systems
ANSWER: a
Copyright Cengage Learning. Powered by Cognero. Page 13
Name: Class: Date:
85. Refer to Scenario 1: Pacific Health Care. An analysis by PHC revealed that planning that dealt with
determining which internal candidates were best suited for promotion within an organization was a weakness.
What is this weakness called?
a. job design b. succession planning
c. HR supply planning d. specification planning
ANSWER: b
86. 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
ANSWER: False
87. Replacement planning is the process of finding replacement employees for key managerial positions.
a. True
b. False
ANSWER: True
88. According to Peter Drucker, only one quarter of organizations know who would take charge if their CEO
resigned today.
a. True
b. False
ANSWER: False
89. If a contract is transactional in nature, it will list the responsibilities of each party in the employer–employee
relationship.
a. True
b. False
ANSWER: True
90. According to the textbook, about one half of the HR managers surveyed didn’t consider grooming potential
leaders a high priority.
a. True
b. False
ANSWER: True
91. 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
ANSWER: False
92. Job rotation includes both lateral and vertical moves within an organization.
Copyright Cengage Learning. Powered by Cognero. Page 14
Name: Class: Date:
93. Traditional approaches to management development included a senior leadership course and one
developmental assignment.
a. True
b. False
ANSWER: True
94. 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
ANSWER: True
95. Counselling and friendship are two benefits derived from mentorship.
a. True
b. False
ANSWER: True
96. 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
ANSWER: False
97. HR planning has evolved into succession planning by creating a talent pool of replacements and improving
the evaluation system.
a. True
b. False
ANSWER: False
98. 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
ANSWER: True
99. Mentors are executives who coach, advise, and encourage junior employees.
a. True
b. False
ANSWER: True
100. Mentors are almost always more senior people who volunteer within an organization, while coaches are
Copyright Cengage Learning. Powered by Cognero. Page 15
Name: Class: Date:
101. An acceleration pool is a group of candidates whose development an organization wishes to accelerate.
a. True
b. False
ANSWER: True
102. 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
ANSWER: False
103. Key job candidates seem to be attracted to companies that are characterized by growth and development.
a. True
b. False
ANSWER: True
104. Peter Drucker said that “most managers are born, not made!”
a. True
b. False
ANSWER: False
105. There are two approaches to identifying the characteristics of a successful manager: experience-based and
competency-based.
a. True
b. False
ANSWER: False
106. Core competencies are characteristics, such as business knowledge, shared by different positions within an
organization
a. True
b. False
ANSWER: False
107. The goals of succession management programs are to identify and prepare future leaders and to ensure
business growth.
a. True
b. False
ANSWER: False
109. Succession management is needed even when retirements and company sellouts are predictable.
a. True
b. False
ANSWER: True
110. The succession management process links replacement planning and management development.
a. True
b. False
ANSWER: True
111. Succession readiness codes state what the employee’s level of performance will be in the future.
a. True
b. False
ANSWER: False
112. The effective implementation of succession management has been linked to several outcomes. One of these
outcomes is the increase in shareholder value.
a. True
b. False
ANSWER: True
113. In both replacement planning and succession management the starting point is the strategy of the
organization.
a. True
b. False
ANSWER: False
114. As employees cannot trust organizations to provide lifetime job security, so too organizations cannot rely
on single individuals or a small group of employees for their succession plans.
a. True
b. False
ANSWER: True
115. The first type of document used in succession planning is referred to as a succession/ replacement table.
a. True
b. False
ANSWER: False
117. In reference to succession plans, organizations can rely on single individuals or a small group of
employees.
a. True
b. False
ANSWER: False
118. Key job candidates seem to be attracted to companies where employees have flexibility and good
relationships with the boss.
a. True
b. False
ANSWER: True
119. Succession management consists of a process of identifying employees who have the potential to assume
key positions in the organization and preparing them for these positions.
a. True
b. False
ANSWER: True
120. Succession management might be viewed as part of the talent management process of an organization that
focuses on the flow of employees, starting from selection to career management to exit, through the
organization.
a. True
b. False
ANSWER: True
121. Mentoring is the systematic process of determining critical roles with the organization, identifying and
evaluating possible successors, and developing them for these roles.
a. True
b. False
ANSWER: False
122. The effective implementation of succession management has been linked to several outcomes. One of these
outcomes is the retention of key talent.
a. True
b. False
ANSWER: True
123. Organizations that have developed a reputation for developing key talent have a significant value
proposition to attract new employees and retain key ones.
Copyright Cengage Learning. Powered by Cognero. Page 18
Name: Class: Date:
124. The goal of succession management programs are to identify and prepare future leaders and to ensure
business continuity.
a. True
b. False
ANSWER: True
125. The first priority of any succession management program is to have a plan to replace its leaders.
a. True
b. False
ANSWER: True
126. HR planning is the process of identifying short-term and long-term emergency backups to fill critical
positions.
a. True
b. False
ANSWER: False
127. The effective implementation of succession management has been linked to several outcomes. One of these
outcomes is the reduced senior executive turnover after succession.
a. True
b. False
ANSWER: True
128. Research in HR has indicated that the best predictor of future performance is current performance.
a. True
b. False
ANSWER: False
129. Replacement planning has evolved into succession management by broadening the focus and reducing the
time horizon.
a. True
b. False
ANSWER: False
130. In replacement planning, the starting point is the job, whereas in succession management, the starting point
is the strategy of the organization.
a. True
b. False
ANSWER: True
132. In a succession management approach, few senior leaders give current evaluations on an employee’s
performance.
a. True
b. False
ANSWER: False
133. An employee value proposition is a brand positioning aimed at employees so that the company will be seen
as an employer worth working for.
a. True
b. False
ANSWER: True
134. What is the difference between succession management and replacement planning?
ANSWER: 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
136. What are the five steps in the succession management process?
ANSWER: ∙ aligning succession management plans with strategy
∙ identifying the skills and competencies needed to meet strategic objectives
∙ identifying high-potential employees
∙ providing developmental opportunities and experiences
∙ monitoring succession management
137. What are three of the key characteristics that are critical to the perceptions of the effectiveness of
succession management?
ANSWER: ∙ a timeframe for achieving planned action
∙ flexible adjustments to changes in strategic plans
Copyright Cengage Learning. Powered by Cognero. Page 20
Name: Class: Date:
138. 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.
139. Define replacement planning. Describe how replacement planning has evolved into succession
management.
ANSWER: Replacement planning is the process of identifying short-term and long-term emergency backups to
fill critical positions.
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.
140. Identify an organization you are familiar with (such as from your work experience or from the course
textbook). Discuss the reasons why the organization would implement succession planning.
ANSWER: ∙ To improve internal candidate pools
∙ To assure business continuity
Copyright Cengage Learning. Powered by Cognero. Page 21
Name: Class: Date:
141. Discuss the following two questions as they relate to succession management and management
development.
1. Are leaders born or made?
2. Should organizations produce their own managerial talent or buy it on the open market?
ANSWER: Born or made?
Peter Drucker, considered by many to be the founder of management as a discipline, is credited with
saying, “Most managers are made, not born. There has to be systematic work on the supply, the
development, and the skills of tomorrow’s management. It cannot be left to chance.”
Buy or make?
One survey found than more than half of companies need to hire an outsider because no insider has
been developed to assume the CEO role. By bringing in an outsider, the company sends a strong
message to employees and shareholders that the old way of doing things will change. Other
organizations feel strongly that they want to indoctrinate and train their own leaders, who then have a
deep commitment to the organizational vision.
Management Development
There are no easy answers to these questions. Organizations may find outstanding leaders by chance,
or they may commit to the development process. Some may choose to hire from the outside to obtain
fresh approaches; others will commit significant time and money to train their own managers.
However, most large organizations have a policy of promotion from within. There are many
advantages to this: the organization has accurate records of employees’ past performance, and
employees understand and are committed to organizational objectives, know the ropes, and know
how to get things done. Some estimate that one-third to one-half of new CEOs fail within the first 18
months. Newcomers apparently fail at understanding the political situation or overestimate an
organization’s willingness to change (often the core reason that they were hired). Another reason to
recruit internally is that CEOs recruited from the outside delivered annual returns 3.7 percent lower
than insiders. Plus, external hires are paid about 18 percent more than internals, with little evidence
that they produce better results. Most large organizations have formal management development
programs to ensure a ready supply of “promotables.” Some of the methods organizations use for
management development include promotions, job rotations, special assignments and action learning,
formal training and development, and mentoring and coaching.
142. Define job rotation, providing an example. Job rotation has several motivational benefits for employees.
Describe two benefits.
ANSWER: Job rotations are lateral (and vertical) transfers of employees between jobs in an organization.
Rotations involve a change in job assignments but not necessarily more responsibility or money. For
example, one way of orienting a new employee quickly is to place him or her in a new department
every few weeks, providing an overview of the organization. Another example is Maritime Life
Insurance, which placed staff with potential in a variety of roles across the organization to avoid
costly placement decisions.
Rotations have several motivational benefits for employees, including the reduction of boredom and
Copyright Cengage Learning. Powered by Cognero. Page 22
Name: Class: Date:
143. Describe two advantages and two disadvantages of using job rotation as a development opportunity for
potential future leaders.
ANSWER: From the organization’s standpoint, rotations are useful for orientation and career development.
Rotations allow an employee to increase his or her experience, knowledge, and skills. A common use
of job rotation is to take a functional specialist, such as an accountant, and rotate this specialist
through both HR and operations in preparation for management positions. Besides the additional
knowledge of the functional areas, such as sales, and management areas, such as business knowledge,
the rotated employee is making contacts and establishing a network that might prove useful in the
future. Learning new ways of doing things, with different co-workers and bosses, also might make
employees more adaptable in their managerial jobs. The research shows that rotation improves an
employee’s knowledge of the organization (e.g., of business, strategy, and contacts) and improves his
or her ability to cope with uncertainty. Furthermore, employees who have tried out several jobs gain
a better insight into their own strengths and weaknesses. However, job rotation produces generalists
and should be supplemented by training for any specific skills needed.
Of course, the downside of employee rotations includes the increased time needed to learn the new
jobs, the cost of errors while learning, and the loss of efficiency that otherwise is gained through
repetition and specialization. In other words, workload may increase for the employee while
productivity decreases, and other employees absorb additional work and stress in efforts to socialize,
orient, and train the newcomer.
144. What is succession planning, and what are three of its benefits to organizations?
ANSWER: Succession planning is the process of training and work experience that enables individuals to
assume higher-level job appointments in the future. Some of its benefits include:
∙ Enabling the organization to respond appropriately and stay on track when inevitable changes
occur;
∙ Providing for continuity and future direction in the midst of significant change;
∙ Helping prepare people for new experiences and jobs (this preparation can also help improve their
performance in current positions);
∙ Positively motivating employees when succession planning takes into account employees’
performance;
∙ Supporting new organizational structures and flexibility by explicitly providing backup for various
positions, thereby reducing organizational dependency on one employee;
∙ Saving time and money by having plans in place to enable the smooth transition of employees.
145. Within your organization 30 percent of top management positions and 40 percent of middle management
positions will become vacant in the near future. A growing number of the workforce began retiring in 2011 and
these retirements of baby boomers are accelerating the loss of critical positions. Discuss how you would
implement a formal succession plan for an organization.
ANSWER: There are five steps in the succession management process.
∙ Aligning succession management plans with strategy
∙ Identifying the skills and competencies needed to meet strategic objectives
Copyright Cengage Learning. Powered by Cognero. Page 23
Name: Class: Date:
146. Twenty percent of top management positions and 25 percent of middle management positions will become
vacant in the near future, and retirements of baby boomers will accelerate this trend. Yet, about one-half of the
HR managers consider developing potential leaders as a high priority. What reasons would you give to these
HR managers to have them better understand the importance of succession management?
ANSWER: Some reasons for succession management are listed in HR Planning Notebook 7.2.
∙ Improve internal candidate pools
∙ Assure business continuity
∙ Reduce skill gaps
∙ Retain employees
∙ Help individuals realize their career plans within the organization
∙ Develop leaders more quickly
∙ Encourage the advancement of diverse groups
∙ Improve employees’ ability to respond to changing environmental demands
147. There are internal ways to judge whether a succession management program is successful. List three lag
measures. Describe one providing an example.
ANSWER: • Increased average number of candidates for key positions
• Reduced average number of positions having no identified successors
• Increased percentage of managers with replacement plans
• Increased percentage of key positions filled according to plans
• Increased ratio of internal hires to external hires in key positions
• Increased retention rates of key talent
• Increased percentage of positive job evaluations after promotion
• More positive assessment of the quality of preparedness for new roles
• Increased number of bosses skilled as talent developers
148. Analyze Case Incident: Pacific Health Care. Throughout your case incident analysis, assume the role of a
human resources consultant. Your task is to advise the organization on how it should align its strategic human
resource planning with its organizational strategy. Begin by clearly and succinctly stating the problem and/or
opportunity, its impact, and why it is important that these problems/opportunities are addressed. Analyze the
causes of the problem/opportunity, identify solutions, and recommend a plan for implementation and
justification. Please be specific about the approaches and methods you would recommend to facilitate the
workforce forecasting process and, in particular, how the organization will ascertain HR supply for nurse
administrators and managers.
ANSWER: Refer to various sections in Chapter 7, “Succession Management”
NARR: Pacific
149. Analyze Case Incident: Pacific Health Care. Discuss how succession management could mitigate the
seriousness of this situation.
ANSWER: Refer to various sections in Chapter 7, “Succession Management”
NARR: Pacific
La plainte des
palombes
Dans les micocouliers !