Strategic Human Resources Planning 5th Edition By Monica Belcourt – Test Bank

Strategic Human Resources Planning 5th Edition By Monica Belcourt – Test Bank

CHAPTER 8 — SUCCESSION MANAGEMENT

MULTIPLE CHOICE

1. In a succession/replacement chart, potential successors can be coded to indicate their availability. If an employee is coded “RD,” what does this represent?

a.

retention desired

b.

ready with development

c.

return to division

d.

requires downsizing

ANS: B BLM: HIGHER ORDER REF: Page 203

2. Which employee characteristic is NOT typically associated with the process of succession management?

a.

skilled

b.

trained

c.

available

d.

reliable

ANS: D BLM: REMEMBER REF: Page 200

3. What negative consequence might result if there is a delay in naming a successor when a key executive, like a CEO, suddenly quits?

a.

Decreased operating performance for up to two years.

b.

Increased recruitment and selection of middle managers.

c.

Decreased opportunities for management development.

d.

Increased likelihood that the successor will be a family member.

ANS: A BLM: REMEMBER REF: Page 201

4. According to the CEO of Maritime Life Insurance, what is the best indicator of whether an employee is ready for a top position?

a.

education

b.

intelligence

c.

rotation

d.

attitude

ANS: C BLM: REMEMBER REF: Page 214

5. What are two motivational benefits of job rotation?

a.

Opportunity for advancement and training.

b.

Job satisfaction and job enlargement.

c.

Feeling appreciated and valued.

d.

Reduction of boredom and fatigue.

ANS: D BLM: REMEMBER REF: Page 214

6. In flat organizations, where promotions are rare, what preferred developmental method is used?

a.

job enlargement

b.

job enrichment

c.

job rotation

d.

job sharing

ANS: C BLM: HIGHER ORDER REF: Page 214

7. Which of the following is NOT considered to be one of the most common development methods?

a.

special assignments

b.

job rotations

c.

mentoring

d.

active learning

ANS: D BLM: REMEMBER REF: Page 214

8. Which technique is often used by organizations to test whether high-potential employees have management potential?

a.

Give them a special assignment.

b.

Give them a greater workload.

c.

Give them a training opportunity.

d.

Give them a performance review.

ANS: A BLM: REMEMBER REF: Page 215

9. Which of the following would NOT be a risk that would be managed by HR professionals when considering succession management?

a.

transition risk

b.

vacancy risk

c.

potential risk

d.

readiness risk

ANS: C BLM: REMEMBER REF: Page 223

10. What can HR professionals do to manage the risks associated with succession management?

a.

Promote a culture of talent management.

b.

Encourage development only for key positions.

c.

Identify historic gaps in competencies.

d.

Develop successors for all organizational positions.

ANS: A BLM: HIGHER ORDER REF: Page 223

11. If an organization wishes to identify high-potential employees, which of the following is a typical approach that might be used?

a.

replacement tables

b.

replacement charts

c.

permanent replacements

d.

supply replacements

ANS: B BLM: HIGHER ORDER REF: Page 209

12. According to the textbook, why do some CEOs develop a talent management culture?

a.

To develop talent at the top where it is most needed.

b.

To develop talent at all levels of an organization.

c.

To develop talent branding more than company branding.

d.

To develop talent in-house before competitors do.

ANS: B BLM: HIGHER ORDER REF: Page 210

13. According to MDS, a medical supply company, why does the company hire talent even when there are no openings available?

a.

Recruitment is strategic.

b.

The company can pay less.

c.

The hiree can work two jobs.

d.

Someone is about to be fired.

ANS: A BLM: HIGHER ORDER REF: Pages 210-211

14. According to a McKinsey study, what fraction of HR directors at top-performing companies constantly search for talented executives?

a.

one tenth

b.

one quarter

c.

one third

d.

one half

ANS: C BLM: REMEMBER REF: Page 211

15. If a board of directors brings in an outsider to lead the company, what message is it sending to the shareholders and employees?

a.

That all the internal candidates are not proficient.

b.

That the old way of doing things is going to change.

c.

That the performance review process is inadequate.

d.

That the internal candidates are all new as well.

ANS: B BLM: HIGHER ORDER REF: Page 213

16. Which of the following is NOT considered to be a downside of employee rotations?

a.

Increased time spent learning new jobs.

b.

Cost of errors while learning new jobs.

c.

Loss of efficiency while learning new jobs.

d.

Increased fatigue while learning new jobs.

ANS: D BLM: REMEMBER REF: Page 215

17. According to the textbook, why did many Canadian dynasties fail?

a.

Because their heirs were incapable of managing the business.

b.

Because they did not monitor the external environment.

c.

Because they expanded too quickly into global markets.

d.

Because they were unaware of anticipated mergers and acquisitions.

ANS: A BLM: HIGHER ORDER REF: Page 201

18. Which organization cited in the textbook has a six-hour replacement strategy if its CEO dies suddenly?

a.

Target

b.

Walmart

c.

Apple

d.

McDonalds

ANS: D BLM: REMEMBER REF: Pages 200–201

19. What is one way that replacement planning has evolved into succession management?

a.

Improving the data collection.

b.

Improving the evaluation system.

c.

Improving the HR supply.

d.

Improving the stability of jobs.

ANS: B BLM: REMEMBER REF: Page 202

20. What is the typical time period that succession management focuses on, beyond immediate replacements?

a.

one year

b.

two years

c.

three years

d.

ten years

ANS: B BLM: REMEMBER REF: Page 204

21. What is the first step in the succession management process?

a.

Identify high-potential employees.

b.

Identify the skills and competencies needed.

c.

Align succession management plans with strategy.

d.

Provide developmental opportunities and experiences.

ANS: C BLM: REMEMBER REF: Page 207

22. Which of the following is NOT a competency identified by Catano and his colleagues?

a.

knowledge competencies

b.

distinctive competencies

c.

role competencies

d.

core competencies

ANS: A BLM: REMEMBER REF: Page 209

23. What two approaches are used to identify the characteristics of successful managers?

a.

task-based and knowledge-based

b.

job-based and competency-based

c.

skill-based and curriculum-based

d.

market-based and value-based

ANS: B BLM: REMEMBER REF: Pages 207–208

24. If a job requires proficiency in Facebook, what is this proficiency called?

a.

a competency

b.

an attribute

c.

a skill

d.

an ability

ANS: C BLM: HIGHER ORDER REF: Page 209

25. What is the final step in the succession management process?

a.

Identify high-potential employees.

b.

Identify the skills and competencies needed.

c.

Monitor succession management.

d.

Provide developmental opportunities and experiences.

ANS: C BLM: REMEMBER REF: Page 220

26. Which of the following is NOT a typical lag measure used in succession management?

a.

Decreased number of bosses as talent developers.

b.

Increased ratio of internal to external hires in key positions.

c.

Increased average number of candidates for key positions.

d.

Decreased average number of positions with no successors.

ANS: A BLM: REMEMBER REF: Page 220

27. Why must high-potential employees be given a reason to stay within an organization?

a.

Because they have fragile egos and need positive affirmation.

b.

Because jobs are scarce and they need to hang onto them.

c.

Because career planning effectively eliminates job searches.

d.

Because competition for leadership talent is so intense.

ANS: D BLM: HIGHER ORDER REF: Page 222

28. According to the textbook, what are two emerging career management concepts?

a.

organizational identity; inward and political mindset

b.

self-directed career responsibility; horizontal career progression

c.

role of manager as coach; benefit of focusing on job security

d.

loyalty to profession and family; implicit employment contract

ANS: B BLM: HIGHER ORDER REF: Page 222

29. According to the textbook, what is the reason given why the majority of companies still use traditional and passive instructional techniques for management development, although they are the least effective?

a.

Because these techniques are cheaper than external ones.

b.

Because these techniques are fast and easy to use.

c.

Because these techniques are controlled by the company.

d.

Because these techniques are customized to the company.

ANS: B BLM: HIGHER ORDER REF: Page 216

30. Which of the following is a benefit to the organization from using external coaches?

a.

Collaborate with the individual and enhance personal values.

b.

Promote greater focus and clarity to enhance goal achievement.

c.

Reduce learning time in order to optimize skills and competencies.

d.

Change attitudes and skills for long-term sustainability.

ANS: D BLM: HIGHER ORDER REF: Page 217
TRUE/FALSE

1. In succession management there must be a pipeline for talent for critical roles like the CEO and senior management only.

ANS: F BLM: REMEMBER REF: Page 200

(and also critical roles like scientists or customer relationship specialists)

2. Replacement planning is the process of finding replacement employees for key managerial positions.

ANS: T BLM: REMEMBER REF: Page 200

3. According to Peter Drucker, only one quarter of organizations know who would take charge if their CEO resigned today.

ANS: F BLM: REMEMBER REF: Page 200

(one half)

4. If a contract is transactional in nature, it will list the responsibilities of each party in the employer-employee relationship.

ANS: T BLM: HIGHER ORDER REF: Page 221

5. According to the textbook, about one-half of the HR managers surveyed in 2011 don’t consider grooming potential leaders a high priority.

ANS: T BLM: REMEMBER REF: Page 201

6. Once high-potential or star employees are discovered, it is important for an organization to communicate to them that they are valued and have leadership potential, while at the same time making commitments to their promised career progression.

ANS: F BLM: HIGHER ORDER REF: Page 205

(without promising anything)

7. Job rotation includes both lateral and vertical moves within an organization.

ANS: T BLM: REMEMBER REF: Page 214

8. Traditional approaches to management development included a senior leadership course and one developmental assignment.

ANS: T BLM: REMEMBER REF: Page 214

9. One way of orienting a new employee quickly is to place him or her in a new department every few weeks.

ANS: T BLM: REMEMBER REF: Page 214

10. Counselling and friendship are two benefits derived from mentorship.

ANS: T BLM: REMEMBER REF: Page 217

11. HR should own the talent management process in order to mitigate three types of risk to the organization: vacancy risk, readiness risk, and performance risk.

ANS: F BLM: HIGHER ORDER REF: Page 223

(transition risk not performance risk)

12. According to the textbook, one benchmarking organization suggests that effective organizations have 1.3 candidates for each key role.

ANS: F BLM: REMEMBER REF: Page 220

(1.6 candidates)

13. Before considering developmental opportunities and experiences to develop managers, two main questions should be asked: “Are leaders born or made?” and “Should leaders be bought or made?”

ANS: T BLM: HIGHER ORDER REF: Page 213

14. Cisco uses the 3E Model for management development, which represents Experience, Exposure and Education.

ANS: T BLM: HIGHER ORDER REF: Page 217

15. Mentors are almost always more senior people who volunteer within an organization, while coaches are volunteers from outside the organization

ANS: F BLM: HIGHER ORDER REF: Page 217

(coaches are paid counsellors from outside the organization)

16. An acceleration pool is a group of candidates for whom an organization wishes to accelerate development.

ANS: T BLM: HIGHER ORDER REF: Page 218

17. A common use of job rotation is to take a functional generalist, such as an accountant, and rotate this individual through specialist areas like HR and production in preparation for management.

ANS: F BLM: HIGHER ORDER REF: Page 214

(take a functional specialist)

18. According to the textbook, one reason to recruit externally is that CEOs recruited from the outside delivered annual returns 3.7 percent higher than insiders.

ANS: F BLM: REMEMBER REF: Page 213

(if recruited externally returns are 3.7% lower)

19. Peter Drucker said that “Most managers are born, not made!”

ANS: F BLM: REMEMBER REF: Page 213

(“Most managers are made, not born…”)

20. There are two approaches to identifying the characteristics of a successful manager: experience-based and competency-based.

ANS: F BLM: REMEMBER REF: Page 213

(job-based not experience-based)

21. According to Frauenheim, the greatest driver of succession management programs is the retirement of critical/executive roles.

ANS: F BLM: HIGHER ORDER REF: Page 201

(current or imminent leadership gaps)

22. The goals of succession management programs are to identify and prepare future leaders and to ensure business growth.

ANS: F BLM: HIGHER ORDER REF: Page 200

(ensure business continuity)

23. In Canada, “academy companies” include IBM, Procter and Gamble, Petro-Canada, and TD Canada Trust.

ANS: F BLM: REMEMBER REF: Page 218

(not TD Canada Trust)

SHORT ANSWER

1. What is the difference between succession management and replacement planning?

ANS:

Succession management is the process of ensuring that pools of skilled employees are trained and available to meet the strategic objectives of the organization.

Replacement planning is the process of finding replacement employees for key managerial positions.

• Focus of replacement planning is the job and having someone to fill that job.
• Development of succession or replacement charts to fill key positions in the organization.
• Consisted of periodically updating the table of employees who might be selected for promotions if the need arose.
• Depends on a stable future, including unchanging organizational structures.

BLM: HIGHER ORDER REF: Pages 200–202

2. Why is succession management so important in today’s workplace?

ANS:

Succession management is important because:

• Ensures continuity in leadership by developing the “next generation of players.”
• Organizations must prepare for expected and unexpected turnover.
• Plans for replacement of retiring staff.
• Provides opportunities for high-potential workers.

BLM: HIGHER ORDER REF: Pages 200–202

3. What are the five steps in the succession management process?

ANS:

1. align succession management plans with strategy
2. identify the skills and competencies needed to meet strategic objectives
3. identify high-potential employees
4. provide developmental opportunities and experiences
5. monitor succession management

BLM: REMEMBER REF: Pages 207–221

4. What are THREE of the key characteristics that are critical to the perceptions of the effectiveness of succession management?

ANS:

• A timeframe for achieving planned action
• Flexible adjustments to changes in strategic plans
• The sharing of information about the nomination process performance and rankings with identified candidates
• Visible support from top management
• The involvement of line management in the identification and development of candidates

BLM: HIGHER ORDER REF: Page 221