SHRM Reviewer PDF

Strategic Human Resource Management (SHRM) Midterm Exam Reviewer 1. A company is implementing a new software system to enhance its HR functions. Which approach best reflects Strategic HRM? ○ A) HR focuses only on training for the new system, without aligning it to business...

Strategic Human Resource Management (SHRM) Midterm Exam Reviewer 1. A company is implementing a new software system to enhance its HR functions. Which approach best reflects Strategic HRM? ○ A) HR focuses only on training for the new system, without aligning it to business goals. ○ B) HR creates a strategy to align the new system with the company’s broader goals. ○ C) HR outsources all training and does not involve itself in the implementation. ○ D) HR leaves the implementation to the IT department. 2. A manufacturing company faces communication issues between HR and line managers regarding performance management. According to SHRM principles, how should this be addressed? ○ A) HR should handle performance management alone. ○ B) Line managers should be solely responsible for employee performance. ○ C) HR and line managers should collaborate on addressing performance challenges. ○ D) Escalate the issue directly to senior management. 3. In an external analysis, a company identifies significant opportunities for growth in a competitive market. According to the I/O model, what should the company focus on? ○ A) Building internal capabilities. ○ B) Leveraging its existing resources. ○ C) Entering the market and adjusting its resources. ○ D) Acquiring resources that competitors cannot imitate. 4. Which of the following is a technological resource in SHRM? ○ A) Human resource management practices ○ B) Patents and trademarks ○ C) Office equipment ○ D) Capital investments 5. According to the Resource-Based View (RBV) model, what should a company prioritize for innovation? ○ A) Understanding external trends before innovating ○ B) Acquiring and developing internal resources ○ C) Matching industry standards ○ D) Expanding into new markets before internal development 6. Which HR action aligns with SHRM during a product launch? ○ A) Focus on employee retention and benefits. ○ B) Integrate employee skills into the product launch strategy. ○ C) Delay HR involvement until after the product launch. ○ D) Outsource talent management to a third-party agency. 7. A company is conducting an organizational self-assessment. Which area is critical for this process? ○ A) Government regulations ○ B) Work systems and human resources ○ C) Local economic trends ○ D) Competitor pricing models 8. A telecommunications company is planning long-term growth. According to SHRM principles, what should HR prioritize? ○ A) Address current staffing needs only. ○ B) Align HR deployments with long-term business goals. ○ C) Focus on employee satisfaction surveys. ○ D) Emphasize day-to-day HR operations. 9. Which external environment is crucial to assess when determining a company’s competitive advantage? ○ A) Industry structure ○ B) Internal communication ○ C) Customer loyalty ○ D) Supply chain reliability 10. What defines a company employing a strategic HR approach? A) HR's sole focus is operational efficiency. B) HR professionals understand factors critical to business success. C) HR operates independently from business strategy. D) HR focuses only on administrative functions. 11. Which of the following does NOT describe strategic HR? A) Initiatives are proactive and integrated. B) HR drives transformational change. C) Investments focus solely on capital. D) Goals are aligned with organizational needs. 12. Which of the following actions would transform Traditional HRM to Strategic HRM? A) Focusing on operational tasks B) Integrating HR job design with overall business strategy C) Reducing expenses related to HR programs D) Outsourcing recruitment processes 13. A global company needs HR policies that align with international operations. What should HR focus on? A) Separate policies for each division B) Align HR policies with the global structure C) Tailor policies to local preferences only D) HR involvement should be minimal 14. Which SHRM strategy best fits a company in the maturity stage of the business life cycle? A) Aggressive recruitment B) Downsizing and reducing HR costs C) Expanding HR practices D) Maintenance and optimization of current systems 15. A healthcare company aims to reduce costs by streamlining HR processes. According to Porter’s competitive strategies, which action aligns with cost leadership? A) Enhancing employee involvement in decision-making B) Offering extensive employee benefits C) Reducing operational expenses through lean HR practices D) Investing heavily in research and development 16. Which model emphasizes that internal resources are key to gaining a competitive advantage? A) I/O Model B) Resource-Based View (RBV) Model C) Michigan Model D) Harvard Model 17. What is a key component of High-Performance Work Systems (HPWS)? A) Reduced employee involvement B) Benchmarking performance outcomes C) Limited communication channels D) Minimal investment in training 18. Which HR strategy aligns with a company focusing on innovation? A) Standardizing all work processes B) Encouraging creativity and flexibility C) Minimizing employee training D) Reducing employee influence in decision-making 19. What should HR prioritize when helping a company transition to Strategic HRM? A) Reduce employee involvement in strategy B) Focus on short-term operational needs C) Align HR activities with long-term business goals D) Limit HR’s involvement in decision-making 20. What is the role of HR in an organization following the Resource-Based View model? A) Outsource recruitment and training B) Focus on acquiring resources that are hard to imitate C) Ensure HR aligns with operational efficiency D) Minimize internal talent development 21. A company is expanding globally and needs its HR strategies to reflect this. According to SHRM principles, how should HR adjust its focus? A) Focus on the headquarters' needs only B) Develop policies aligned with both global and local operations C) Outsource all recruitment processes internationally D) Create policies with no input from local divisions 22. A company is seeking to attract highly skilled employees who are difficult to replace. Which SHRM strategy would best align with this goal? A) Focus on short-term cost reduction B) Prioritize the recruitment of employees with unique skills C) Invest primarily in operational infrastructure D) Minimize training programs to reduce costs 23. What is a primary goal of SHRM during a company’s growth phase? A) Reducing operational costs B) Aligning HR initiatives with business expansion C) Delaying employee recruitment until after growth D) Cutting employee benefits to save costs 24. What HR practice would best support a company’s strategy to become an industry leader in innovation? A) Reducing all HR costs B) Investing in employee skill development and training C) Focusing on administrative HR functions only D) Standardizing work processes across all divisions 25. According to the Michigan Model, what should HR focus on when integrating with business strategy? A) Developing reward systems B) Streamlining employee engagement programs C) Aligning HR flows with work systems D) Focusing on work-life balance initiatives Answer Key with Explanations 1. B) HR creates a strategy to align the new system with the company’s broader goals. ○ Explanation: Strategic HRM involves aligning HR initiatives with overall business objectives. 2. C) HR and line managers should collaborate on addressing performance challenges. ○ Explanation: SHRM emphasizes collaboration between HR and line managers to improve performance. 3. C) Entering the market and adjusting its resources. ○ Explanation: The I/O model suggests adapting resources to fit environmental demands. 4. B) Patents and trademarks ○ Explanation: Technological resources include intellectual property like patents and trademarks. 5. B) Acquiring and developing internal resources ○ Explanation: The RBV model emphasizes leveraging internal resources for innovation. 6. B) Integrate employee skills into the product launch strategy. ○ Explanation: SHRM aligns employee skills with business initiatives like product launches. 7. B) Work systems and human resources ○ Explanation: These are key areas for organizational self-assessment to ensure strategic alignment. 8. B) Align HR deployments with long-term business goals. ○ Explanation: SHRM requires HR planning that aligns with long-term business objectives. 9. A) Industry structure ○ Explanation: Industry structure is crucial in determining competitive advantage. 10. B) HR professionals understand factors critical to business success. Explanation: SHRM ensures that HR professionals align their strategies with business needs. 11. C) Investments focus solely on capital. Explanation: Strategic HR involves broader investments than just capital. 12. B) Integrating HR job design with overall business strategy Explanation: Transforming HRM into SHRM requires aligning HR activities with business strategy. 13. B) Align HR policies with the global structure Explanation: SHRM requires integration of HR policies with global operations. 14. D) Maintenance and optimization of current systems Explanation: In the maturity stage, HR should focus on optimizing existing processes. 15. C) Reducing operational expenses through lean HR practices Explanation: Cost leadership strategies aim to minimize costs, including HR-related expenses. 16. B) Resource-Based View (RBV) Model Explanation: The RBV model focuses on leveraging internal resources for competitive advantage. 17. B) Benchmarking performance outcomes Explanation: HPWS emphasizes benchmarking and setting performance targets. 18. B) Encouraging creativity and flexibility Explanation: Innovation strategies rely on a flexible and creative workforce. 19. C) Align HR activities with long-term business goals Explanation: SHRM aligns HR strategies with long-term business objectives. 20. B) Focus on acquiring resources that are hard to imitate Explanation: The RBV model highlights the importance of unique, hard-to-imitate resources. 21. B) Develop policies aligned with both global and local operations Explanation: SHRM ensures HR policies are aligned with global and local needs. 22. B) Prioritize the recruitment of employees with unique skills  Explanation: SHRM focuses on attracting and retaining unique talent for a competitive edge. 23. B) Aligning HR initiatives with business expansion Explanation: During growth, HR must support business expansion through aligned strategies. 24. B) Investing in employee skill development and training Explanation: Innovation relies on continuous employee development and skill enhancement. 25. C) Aligning HR flows with work systems Explanation: The Michigan Model emphasizes the alignment of HR processes with organizational workflows. These questions and explanations provide a comprehensive review of Strategic Human Resource Management (SHRM) for your midterm examination.