HRM701 Chapter 2 Practice Test UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is human resources planning? - CORRECT ANSWER - the process of anticipating
and making provisions for movement of people into, within, and out of an organization
Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is
making decisions such as whether to maintain its current path as industry leader in the running
shoe business, or branch out to include casual footwear. In addition, the company is also
discussing the various needs it will have for new staff if it does choose to go in a new direction.
What is Kramer Athletic Equipment doing? - CORRECT ANSWER - applying principles
of strategic human resources management
Organization Z is planning its future. In the process, the firm is making decisions such as what
type of market it wants to be the leader in and what path to take to achieve this goal. What is
Organization Z doing? - CORRECT ANSWER - strategic planning
Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone
industry. To do so, however, it would have to make significant changes to its approach to product
development in order to gain an edge in this competitive industry. What is the smartest next step
for Eldorado Electronics? - CORRECT ANSWER - It should consider how its strategic
plans will affect HR needs and also how its current HR status will affect its strategic plans.
HR managers must be concerned with aligning HR planning and which of the following? -
CORRECT ANSWER - the organization's strategic plan
Different skills groups in an organization can be classified by the degree to which they create
strategic value and the degree to which they are unique, by using which of the following? -
CORRECT ANSWER - a human capital architecture map
A human capital architecture map classifies employees according to which of the following -
CORRECT ANSWER - strategic value and unique skills
, On the entrance to Mac Pencils' factory are the words "to provide the world with high-quality
and dependable pencils." This is an example of which of the following? - CORRECT
ANSWER - mission
Which of the following best describes the skills of contract labour workers? - CORRECT
ANSWER - Their skills are available to all firms.
Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about
safety on the job, the comfort of the working conditions, and their general level of satisfaction
with their work, managers, and co-workers. Smith Frozen Foods is most likely performing which
of the following? - CORRECT ANSWER - a cultural audit
When an organization monitors demographic and labour market trends as well as technological
and IT changes, it is most likely performing which of the following? - CORRECT
ANSWER - an environment scan
The examination of the attitudes and activities of a company's workforce refers to which of the
following? - CORRECT ANSWER - a cultural audit
What are the most important factors to consider when scanning the environment in strategic
planning - CORRECT ANSWER - the competition, customers, rival firms, new entrants,
substitutes, suppliers and external labour supply
What is benchmarking? - CORRECT ANSWER - the process of identifying the best
practices of a firm in a given area and comparing your practices to their practices
Which of the following organizations is most likely to gain a sustained competitive advantage
through its people? - CORRECT ANSWER - one in which employees' talent is organized,
difficult to imitate, rare, and valuable
ACTUAL Exam Questions and CORRECT
Answers
What is human resources planning? - CORRECT ANSWER - the process of anticipating
and making provisions for movement of people into, within, and out of an organization
Kramer Athletic Equipment is planning the future of the organization. In this process, the firm is
making decisions such as whether to maintain its current path as industry leader in the running
shoe business, or branch out to include casual footwear. In addition, the company is also
discussing the various needs it will have for new staff if it does choose to go in a new direction.
What is Kramer Athletic Equipment doing? - CORRECT ANSWER - applying principles
of strategic human resources management
Organization Z is planning its future. In the process, the firm is making decisions such as what
type of market it wants to be the leader in and what path to take to achieve this goal. What is
Organization Z doing? - CORRECT ANSWER - strategic planning
Eldorado Electronics wants to move from the stagnant calculator industry into the smart phone
industry. To do so, however, it would have to make significant changes to its approach to product
development in order to gain an edge in this competitive industry. What is the smartest next step
for Eldorado Electronics? - CORRECT ANSWER - It should consider how its strategic
plans will affect HR needs and also how its current HR status will affect its strategic plans.
HR managers must be concerned with aligning HR planning and which of the following? -
CORRECT ANSWER - the organization's strategic plan
Different skills groups in an organization can be classified by the degree to which they create
strategic value and the degree to which they are unique, by using which of the following? -
CORRECT ANSWER - a human capital architecture map
A human capital architecture map classifies employees according to which of the following -
CORRECT ANSWER - strategic value and unique skills
, On the entrance to Mac Pencils' factory are the words "to provide the world with high-quality
and dependable pencils." This is an example of which of the following? - CORRECT
ANSWER - mission
Which of the following best describes the skills of contract labour workers? - CORRECT
ANSWER - Their skills are available to all firms.
Smith Frozen Foods performs a yearly employee survey to assess how its employees feel about
safety on the job, the comfort of the working conditions, and their general level of satisfaction
with their work, managers, and co-workers. Smith Frozen Foods is most likely performing which
of the following? - CORRECT ANSWER - a cultural audit
When an organization monitors demographic and labour market trends as well as technological
and IT changes, it is most likely performing which of the following? - CORRECT
ANSWER - an environment scan
The examination of the attitudes and activities of a company's workforce refers to which of the
following? - CORRECT ANSWER - a cultural audit
What are the most important factors to consider when scanning the environment in strategic
planning - CORRECT ANSWER - the competition, customers, rival firms, new entrants,
substitutes, suppliers and external labour supply
What is benchmarking? - CORRECT ANSWER - the process of identifying the best
practices of a firm in a given area and comparing your practices to their practices
Which of the following organizations is most likely to gain a sustained competitive advantage
through its people? - CORRECT ANSWER - one in which employees' talent is organized,
difficult to imitate, rare, and valuable
