CHAPTER TWO: aligning training with strategy
MULTIPLE-CHOICE questions

1. Strategic planning is best defined as
A) The development of a relatively long‑term mission consistent with internal tactics.
B) The development of relatively short‑term objectives that meet the executive committee objectives.
C) A process for determining how best to pursue the organization’s mission while meeting the demands of the environment.
D) The development of values and ideals of the organization relevant to long-term objectives.
Answer: C
Difficulty: Moderate
Page Ref: 27

2. Strategic planning that focuses on the long term is a(n)
A) Reactive strategy.
B) Proactive strategy.
C) Less formal analysis.
D) Objective setting process.
Answer: B
Difficulty: Challenging
Page Ref: 27

3. HRD should be involved in strategic planning by
A) Helping shape strategy.
B) Influencing the HR strategy.
C) Developing its own strategy in line with the strategic plan.
D) Both B & C.
E) All of the above.
Answer: E
Difficulty: Challenging
Page Ref: 28

4. Which of the following is a market leader strategy?
A) Keep costs low
B) Develop new markets
C) Development of economies of scale
D) None of the above
E) All of the above
Answer: B
Difficulty: Moderate
Page Ref: 29

5. The defender strategy is also referred to as
A) Differentiator.
B) Innovator.
C) Cost leader.
D) Market leader.
E) Market follower.
Answer: C
Difficulty: Moderate
Page Ref: 29

6. Which of the following statements is true in an uncertain environment?
A) The organization must rigidly define operating methods.
B) A market leader strategy is the best strategy to adopt.
C) There is less complexity in the environment.
D) Cost leader strategy is the best strategy to adopt.
Answer: B
Difficulty: Easy
Page Ref: 30

7. Low uncertainty in the external environment is created by
A) High complexity and low stability.
B) Low stability and low complexity.
C) High stability and low complexity.
D) Both A & B.
Answer: C
Difficulty: Easy
Page Ref: 30

8. __________ refers to the number of factors in an organization’s environment and how they are interrelated.
A) Environmental uncertainty
B) Environmental flexibility
C) Environmental complexity
D) Environmental stability
E) None of the above
Answer: C
Difficulty: Easy
Page Ref: 30

9. A non-routine technology label is applied to tasks that have
A) Well structured and defined solutions to occurring problems.
B) Few problems.
C) Problems that occur often and unexpectedly.
D) A high degree of predictability.
E) All of the above.
Answer: C
Difficulty: Easy
Page Ref: 31

10. You would typically associate routine technology with which of the following?
A) Those with market leader strategies
B) A low degree of predictability of outcomes or results
C) No defined solutions when problems do occur
D) Highly specialized technologies
E) All of the above are associated with routine technologies
Answer: D
Difficulty: Easy
Page Ref: 31

11. Organizational design refers to
A) The type of technology used.
B) The type and style of decision making used.
C) How the division of labor is set up.
D) Both B & C.
E) None of the above.
Answer: E
Difficulty: Moderate
Page Ref: 32

12. A mechanistic design is best applied in which of the following situations?
A) Non‑routine technologies
B) Small businesses
C) High volume assembly lines
D) Where there are not clear answers to many of the problems that arise
E) A & D
Answer: C
Difficulty: Easy
Page Ref: 32

13. What is one reason companies should invest in strategic HR?
A) To be able to grow
B) To increase their market value
C) To centralize their strategies
D) To involve management
Answer: B
Difficulty: Moderate
Page Ref: 33

14. According to the text, the strategic planning process at Hewlett Packard Canada in the late 1980’s resulted in
A) The sales force reorganizing around specific products.
B) A concentration on the laser printer and increasing the profit margin on each unit.
C) Hewlett