100+ Current Trends and Cases in HRM Solved MCQs

Cases for questions Case 1.1 Caplin Company is having a strategic planning session with the director of HR. They are discussing the fit between the company’s overall management philosophy, organizational structure, organizational culture, and their current HR strategies. During the meeting, the management team asks the HR Director to profile the current workforce. The HR Director reports that the workforce used to be 85% white, 50% male. Now it is 50% white, 50% minority with twice as many women as men, but supervisors still tend to be white males. The management team begins to discuss how to control costs, improve quality, and create distinctive capabilities. Several ideas are raised, discussed, and either tabled or assigned to an individual for further exploration. Some managers noted that people tend to come in at start time and take 30 minutes to get down to work and that they begin to pack up for the day 30 minutes before quitting time. People don’t seem all that concerned about working hard and producing quality products. As the team wraps up the day’s meeting, they briefly discuss their commitment to the surrounding community. As a cost-cutting measure, they had eliminated their support of an Adult Literacy program, in which volunteers used company facilities to conduct reading classes. The management team decides that they should reinstate the program and appoints the Director of HR to notify the local literacy council. Case 1.2 As the manager of HR, you are leading the management team of an old established company in a strategic planning session. During the planning session, managers are being forced to think about the future, see the likely changes in the marketplace, and commit to plans to use company resources to enhance their competitive edge. The company decides that as part of its business strategy, it wants to attract and retain the best possible employees. You suggest that the company pay a hiring bonus, use a pay Case 1.3 Your company sells high-tech products throughout the world and is focusing on a differentiation strategy. The business environment for the company is volatile, rapidly changing, and highly complex. The company is highly entrepreneurial and has a strong moral commitment to quality products, employee job satisfaction, and contributing to the surrounding community. Finally, the management team has decided to create a common company culture among the various national and international subsidiaries to reduce cultural differences and tensions. Case 1.4 Crowe, Inc. has been a powerful steel producer for the last 15 years and sees only positive prospects in the future. The company provides employees with long-lasting careers and has only recently seen the potential to lose a significant number of workers. The company is very stable and has an elaborate system for providing employees with promotions and transfers to higher levels within the company. Crowe has a very secure position within its industry and has no need to extend its production and services into different industries. However, some discontent has arisen among lower-level employees. Several employees were fired for on-the-job ethical violations. Those employees let go, in turn, convinced nearly 100 other employees to threaten to leave unless the policies regarding ethical violations are revised. In light of this event, Crowe’s HR department has decided to implement some strategies to curb former employees from causing others to leave, one of these being that in the instance that any exiting employee convinces another to leave the company, the company will take back the small stock option given to him/her. Prior to this, the company’s atmosphere was very congenial and featured camaraderie between employees at all levels. Now, there has been a noticeable negative shift in the attitude of the workers toward Crowe authority. Many employees are now filing more grievances against the management. Some noticeable hostility has also arisen from employees toward upper-level management.

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration in Human Resource Management (BBA HRM) .

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51.	Managers who often depend on their personal views and experiences to solve problems and make business decisions run the risk of:
A.	alienating employees who want to contribute to the decision-making process.
B.	undermining the goals of the company by becoming too independent.
C.	taking on more responsibility than is necessary in a given business venture.
D.	making assumptions about the business and economic environment that are untrue, thereby threatening the profitability of the company.
E.	threatening the profitability of the company by encouraging centralized decisionmaking processes.
Answer» D. making assumptions about the business and economic environment that are untrue, thereby threatening the profitability of the company.

52.	For the Strategic HR Planning Process to stimulate critical thinking:
A.	it needs to create common bonds among the various work units in the organization.
B.	it should focus on day-to-day management issues.
C.	it cannot include specific operational planning but must remain at the conceptual level.
D.	it should manage work flows at the same time.
E.	it must be a continuing, flexible process rather than a rigid procedure.
Answer» E. it must be a continuing, flexible process rather than a rigid procedure.

53.	Creating a sense of community and shared values and goals among employees at a firm can often increase:
A.	innovation and customer focus within the firm.
B.	decentralization within the firm.
C.	brain drain.
D.	gaps between the current situation and the future goals.
E.	the disinterest of line managers.
Answer» A. innovation and customer focus within the firm.

54.	One challenge of Strategic HR Planning is:
A.	getting employees to accept empowerment strategies.
B.	decreasing job security while lowering labor costs.
C.	being appropriately reactive to problems in the firm and external environment.
D.	building HR strategies independent of the overall business strategy of the company.
E.	developing strategies that offer a firm a sustained competitive advantage.
Answer» E. developing strategies that offer a firm a sustained competitive advantage.

55.	Ima is focusing on recruiting qualified employees for her growing company, reviewing benefit plans in order to offer competitive compensation packages, and is generally very involved with a number of urgent HR needs and “fire fighting.” Ima is facing the strategic HR planning challenge of:
A.	reinforcing the overall business strategy with her HR strategies.
B.	excessive concentration on day-to-day problems.
C.	coping with the external environment.
D.	securing management commitment to her HR strategies.
E.	none of the above
Answer» B. excessive concentration on day-to-day problems.

56.	The challenges inherent in Strategic HR Planning include:
A.	identifying HR constraints and limitations.
B.	creating common bonds.
C.	developing HR strategies suited to unique organizational features.
D.	explicating company goals.
E.	all of the above
Answer» C. developing HR strategies suited to unique organizational features.

57.	Town House Publishing is implementing a new HR strategy, and to give it the best chance of succeeding, the HR department should:
A.	increase diversity in the environment.
B.	ensure managers’ commitment to the strategy.
C.	create a back-up strategy to implement in case the initialstrategy fails.
D.	centralize management in order to communicate more effectively with employees.
E.	maximize efforts to control day-to-day problems.
Answer» B. ensure managers’ commitment to the strategy.

58.	The acid test for an HR strategic plan is:
A.	management’s commitment to it.
B.	whether it makes a practical difference for the company.
C.	how people oriented it is.
D.	if it provides fast solutions.
E.	if it is an emergent strategy rather than an intended strategy.
Answer» B. whether it makes a practical difference for the company.

59.	Intended strategies are as opposed to emergent strategies, which are.
A.	proactive / reactive
B.	spontaneous / planned
C.	fuzzy / detailed
D.	based on company politics / based on company environment
E.	necessary in large companies / necessary in smaller companies
Answer» A. proactive / reactive

60.	Emergent strategies generally:
A.	evolve and change as needs arise.
B.	involve only portions of an organization.
C.	are proactive and well developed in advance.
D.	encourage strong leadership within a firm.
E.	are less beneficial to a small company.
Answer» A. evolve and change as needs arise.

61.	Working on his HR strategic plan, Jose is thinking about whether to recommend specific job descriptions or broad job classes, and detailed or loose work planning. Jose is considering the HR strategic choice related to:
A.	performance appraisals.
B.	training and development.
C.	staffing.
D.	work flows.
E.	employee compensation.
Answer» D. work flows.

62.	If a firm is working on its strategic HR choices in the staffing area, it would be looking at decisions about:
A.	imposing a hiring freeze to avoid laying off workers.
B.	developing an appraisal system that invites participation by multiple employee groups.
C.	empowering supervisors to make hiring decisions.
D.	detailed work planning.
E.	deciding whether to hire high wage people or train people internally.
Answer» C. empowering supervisors to make hiring decisions.

66.	Candles, Inc. is currently evaluating the they give their employees, including stock options, benefit packages, and raises based on performance.
A.	employee rights
B.	compensation
C.	worker awards
D.	salary
E.	kudos
Answer» B. compensation

68.	Which of the following is NOT a key strategic HR choice when working with international management in a business?
A.	Establishing a repatriation agreement with each employee going abroad versus avoiding any commitment to expatriates.
B.	Sending expatriates abroad to manage foreign subsidiaries versus hiring local people to manage them.
C.	Establishing travel packages and benefits to those who will be expatriated versus making other compensation changes.
D.	Creating a common company culture to reduce inter-country cultural differences versus allowing foreign subsidiaries to adapt to local cultures.
E.	Establishing company policies that must be followed in all subsidiaries versus decentralizing policy formulation so that each local office can develop its own.
Answer» C. Establishing travel packages and benefits to those who will be expatriated versus making other compensation changes.

72.	An evolutionary corporation would most likely display which of the following characteristics?
A.	It would be a mixture of several different industrial firms.
B.	It would exhibit strong managerial control over employees.
C.	It would be very decentralized and flexible.
D.	It would emphasize long-term career development among employees.
E.	It would emphasize moral commitment.
Answer» C. It would be very decentralized and flexible.

63.	When considering HR strategies regarding employee separations, managers must consider:
A.	whether to use layoffs or voluntary inducements to downsize a firm.
B.	whether to empower supervisors to make hiring decisions.
C.	whether to encourage decentralization or centralization of the firm to better enhance employee relations.
D.	whether to compensate long-term employees more than recent hires.
E.	whether to create rigid job descriptions in order to keep the responsibilities of managers and their subordinates from becoming interrelated.
Answer» A. whether to use layoffs or voluntary inducements to downsize a firm.

64.	When developing performance appraisals, a firm needs to make strategic HR choices concerning:
A.	how data will be used in job descriptions.
B.	training and career development for those whose job performance is substandard.
C.	the quality of work that an employee must exhibit in order to maintain his or her employment.
D.	which kind of appraisal system (customized or general) will work best for the organization.
E.	how to maintain the privacy of managers and employees while collecting data regarding their job performance.
Answer» D. which kind of appraisal system (customized or general) will work best for the organization.

65.	If an HR department is reviewing whether to use discipline as a control mechanism or as a proactive way to encourage appropriate behavior, it is considering its strategic choices within the HR function of:
A.	work flows.
B.	performance appraisal.
C.	employee rights.
D.	employee and/or labor relations.
E.	employee separations.
Answer» C. employee rights.

67.	Timberlake Corporation is reconsidering recent choices regarding employee and labor relations, including:
A.	the strong “top-down” communication from managers to subordinates.
B.	the discipline policy regarding Internet use at work.
C.	a policy that tends to protect employees’ interests over those of the employer.
D.	the new on-the-job training for incoming employees.
E.	compensation of managers versus compensation of lower-level employees.
Answer» A. the strong “top-down” communication from managers to subordinates.

69.	The relative contribution of an HR strategy to an organization’s performance increases:
A.	the less it fits the external environment.
B.	to the degree that it increases bottom-line profitability, regardless of the cost to labor.
C.	if the HR strategy is distinct from the firm’s business strategies.
D.	the more HR strategies are independent of each other.
E.	the more HR strategy fits the uniqueness of the organization.
Answer» E. the more HR strategy fits the uniqueness of the organization.

70.	Which of the following is NOT critically important when determining which HR strategies will positively impact a firm’s performance?
A.	organizational capabilities.
B.	organizational strategies.
C.	organizational characteristics.
D.	environment.
E.	overall cost leadership strategy.
Answer» E. overall cost leadership strategy.

71.	For an HR strategic plan to fit with organizational strategies, it needs to align with:
A.	individual employees’ personal goals.
B.	its use of technology.
C.	work flows used by the organization.
D.	the firm’s corporate and business unit strategies.
E.	the company’s international management plans.
Answer» D. the firm’s corporate and business unit strategies.

73.	Which of the following HR strategies best fits a firm with an overall cost leadership business strategy?
A.	emphasis on innovation and flexibility.
B.	external recruitment.
C.	performance appraisal as a control device.
D.	broad job classifications.
E.	all of the above
Answer» C. performance appraisal as a control device.

74.	A firm’s differentiation business strategy refers to:
A.	employee satisfaction.
B.	the defender’s strategy.
C.	cost effectiveness of production.
D.	the creation of a unique product or service.
E.	the emphasis of the focus strategy.
Answer» D. the creation of a unique product or service.

75.	An HR strategy that fits a company’s differentiation strategy would be:
A.	one emphasizing innovation and flexibility.
B.	managerial control reliability.
C.	HR employee selection.
D.	standardized appraisals, internal recruiting.
E.	detailed work planning and a narrow focus in performance appraisal.
Answer» A. one emphasizing innovation and flexibility.

100+ Current Trends and Cases in HRM Solved MCQs

Managers who often depend on their personal views and experiences to solve problems and make business decisions run the risk of:

For the Strategic HR Planning Process to stimulate critical thinking:

Creating a sense of community and shared values and goals among employees at a firm can often increase:

One challenge of Strategic HR Planning is:

Ima is focusing on recruiting qualified employees for her growing company, reviewing benefit plans in order to offer competitive compensation packages, and is generally very involved with a number of urgent HR needs and “fire fighting.” Ima is facing the strategic HR planning challenge of:

The challenges inherent in Strategic HR Planning include:

Town House Publishing is implementing a new HR strategy, and to give it the best chance of succeeding, the HR department should:

The acid test for an HR strategic plan is:

Intended strategies are as opposed to emergent strategies, which are.

Emergent strategies generally:

Working on his HR strategic plan, Jose is thinking about whether to recommend specific job descriptions or broad job classes, and detailed or loose work planning. Jose is considering the HR strategic choice related to:

If a firm is working on its strategic HR choices in the staffing area, it would be looking at decisions about:

When considering HR strategies regarding employee separations, managers must consider:

When developing performance appraisals, a firm needs to make strategic HR choices concerning:

If an HR department is reviewing whether to use discipline as a control mechanism or as a proactive way to encourage appropriate behavior, it is considering its strategic choices within the HR function of:

Candles, Inc. is currently evaluating the they give their employees, including stock options, benefit packages, and raises based on performance.

Timberlake Corporation is reconsidering recent choices regarding employee and labor relations, including:

Which of the following is NOT a key strategic HR choice when working with international management in a business?

The relative contribution of an HR strategy to an organization’s performance increases:

Which of the following is NOT critically important when determining which HR strategies will positively impact a firm’s performance?

For an HR strategic plan to fit with organizational strategies, it needs to align with:

An evolutionary corporation would most likely display which of the following characteristics?

Which of the following HR strategies best fits a firm with an overall cost leadership business strategy?

A firm’s differentiation business strategy refers to:

An HR strategy that fits a company’s differentiation strategy would be:

HR strategies that fit a company’s focus strategy would be:

Firms that display a defender strategy generally:

Firmsthat are high on uncertainty or that operate in volatile environments would benefit most from HR strategies that involve:

Firms that are low on uncertainty and change and that operate in stable environments would benefit most from HR strategies that involve:

A firm considering the volatility of its product market, the degree of change that its product is experiencing over the passing of time, and the number of competitors with which it is competing is probably examining its HR strategy’s:

An organization’s “personality” consists of five characteristics, which include:

Thurmont’s steel mill is considering a new HR strategy. Which of the following could be considered an important element of the basic strategy?

Stacey notes that her firm is risk averse, operates with a flexible, delegating management style, and is outwardly focused. Stacey’s observations describe which organizational characteristic of a company?

A firm that encourages an entrepreneurial climate may do which of the following:

Mona is interested in buying a new computer. She has heard that Shell processors are on the low end of the cost spectrum and that the company offers an excellent warranty. Mona is focused on the firm’s:

The role of HR is to:

A company can take a number of steps to foster an effective relationship between managers and HR, such as:

An HR department needs to develop several competencies in order to become a full strategic partner, such as:

Carson is gathering information for an HR audit. Which of the following areas should he be concerned with?

The Society for Human Resource Management (SHRM) offers which of the following to the HR field?

Refer to Case 1.1. The change in the workforce at Caplin is an example of the environmental challenge of:

Refer to Case 1.1. Caplin’s discussion of costs, quality, and capabilities shows that they are trying to address:

Refer to Case 1.1. The discussion about people’s work habits represents the organizational challenge for HR of:

Refer to Case 1.1. The closing discussion about supporting the literacy program is an example of a company grappling with:

Refer to Case 1.2. One clear benefit of this strategic planning session is:

Refer to Case 1.2. The HR strategies suggested are examples of one way to address the strategic HR planning challenge of:

Refer to Case 1.2. If this firm chooses to also address its employee relations, it should:

Refer to Case 1.2. The HR strategies suggested are examples of:

Refer to Case 1.2. The HR strategies suggested are examples of the strategic HR choice in the area of:

Refer to Case 1.3. Which of the following HR strategies would support the company’s business strategy?

76.	HR strategies that fit a company’s focus strategy would be:
A.	similar to those of a Miles and Snow defender strategy.
B.	the same as those of a Miles and Snow prospector strategy.
C.	identical to those of a company using a differentiation strategy.
D.	identical to those of a company using a low-cost strategy.
E.	between those of a differentiation and a low-cost strategy.
Answer» E. between those of a differentiation and a low-cost strategy.

77.	Firms that display a defender strategy generally:
A.	encourage risk-taking behaviors.
B.	rank very low in job security.
C.	encourage reliability over innovation.
D.	recruit externally.
E.	do not provide much upward mobility for employees.
Answer» C. encourage reliability over innovation.

78.	Firmsthat are high on uncertainty or that operate in volatile environments would benefit most from HR strategies that involve:
A.	variable pay and flexibility.
B.	control emphasis and fixed pay.
C.	centralized pay decisions and explicit job descriptions.
D.	internal recruitment and a formal hiring process.
E.	high dependency on superiors and uniform appraisal procedures.
Answer» A. variable pay and flexibility.

80.	A firm considering the volatility of its product market, the degree of change that its product is experiencing over the passing of time, and the number of competitors with which it is competing is probably examining its HR strategy’s:
A.	fit with organizational characteristics.
B.	fit with organizational capabilities.
C.	customized appraisals within the market.
D.	fit with the environment.
E.	defender capabilities.
Answer» D. fit with the environment.

81.	An organization’s “personality” consists of five characteristics, which include:
A.	empowerment strategies.
B.	its ability to outsource its work processes.
C.	strategies for managing the work and family roles of its employees.
D.	itsresponse to legislation.
E.	the firm’s market posture.
Answer» E. the firm’s market posture.

82.	Thurmont’s steel mill is considering a new HR strategy. Which of the following could be considered an important element of the basic strategy?
A.	Fostering moral commitment among the employees.
B.	Discouraging informal socializing.
C.	Implementing job-specific training.
D.	Implementing generic job training.
E.	Instituting more flexible HR strategies.
Answer» C. Implementing job-specific training.

83.	Stacey notes that her firm is risk averse, operates with a flexible, delegating management style, and is outwardly focused. Stacey’s observations describe which organizational characteristic of a company?
A.	Its production process for converting inputs into outputs.
B.	The firm’s market posture.
C.	Its organizational structure.
D.	The firm’s management philosophy.
E.	The organization’s overall personality.
Answer» D. The firm’s management philosophy.

84.	A firm that encourages an entrepreneurial climate may do which of the following:
A.	display informal hiring strategies.
B.	display a strong top-down managerial preference.
C.	discourage innovation and risk taking.
D.	ignore HR strategies.
E.	rely on employees’ moral commitment to the firm.
Answer» A. display informal hiring strategies.

85.	Mona is interested in buying a new computer. She has heard that Shell processors are on the low end of the cost spectrum and that the company offers an excellent warranty. Mona is focused on the firm’s:
A.	fit with the market.
B.	distinctive competencies.
C.	consumer appreciation.
D.	fit with organizational capabilities.
E.	consumer enjoyment.
Answer» B. distinctive competencies.

86.	The role of HR is to:
A.	alleviate the personnel management responsibility from managers.
B.	develop technical expertise to win more management battles than it loses.
C.	mind its own business and leave the understanding and running of the business to the line managers.
D.	support and help managers perform their jobs.
E.	all of the above
Answer» D. support and help managers perform their jobs.