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Chapter 2—Strategic HR Management and Planning
MULTIPLE CHOICE 1. The flawed assumption underlying the creation of the “Job Bank” at GM, Ford and Chrysler in the 1980s was that a. the excess workers could be retrained for new “high tech” positions in the auto plants that would be created as the car manufacturing process was automated. b. the auto unions would trade job training for laid-off workers for reductions in the pension plans for retired auto workers thus reducing the labor cost burden per car. c. the Job Bank would be a temporary benefit to employees who took voluntary severance packages that would be phased out as the manufacturers achieved the optimal workforce size. d. demand for American-made cars would increase and the excess workers could return to their factory jobs. ANS: D OBJ: 1 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 35 LOC: Strategy

2. ____ refers to organizational use of employees to gain or keep a competitive advantage resulting in greater organizational effectiveness. a. Manpower planning b. Strategic HR management c. HR forecasting d. Operational HR ANS: B OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 36 LOC: Strategy

3. Which of the following statements is FALSE? a. The organization’s existing employees limit the organization’s choice of strategy. b. Organizations survive and grow by choosing the strategy that will allow them to achieve low costs and innovative products. c. Most competitive strategies depend heavily on the quality of the organization’s human capital. d. Organizations in which the CEO dominates the selection of the organization’s strategy are less successful than organizations in which strategy is developed by a formal committee process. ANS: B OBJ: 1 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. 35 LOC: Strategy

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