Test Bank For Strategic Human Resource Management 6th Edition 2026 by Jeffrey A. Mello Chapter 1-14 Answers are at the End of Each Chapter

Test Bank For Strategic Human Resource Management 6th Edition 2026 by Jeffrey A. Mello Chapter 1-14 Answers are at the End of Each Chapter
Chapter 1
Indicate whether the statement is true or false.
1. An investment approach to HR involves an organization looking at its employees as variable costs of production.
a. True
b. False
2. The ease of quantifying outcomes makes it more likely that an organization will invest in human assets as opposed to
other assets.
a. True
b. False
3. Analytics are data points whereas metrics examine relationships.
a. True
b. False
4. Investing in employees provides a guaranteed return without a risk of losing the investment.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
5. Which of the following is true?
a. analytics precede metrics
b. metrics precede analytics
c. analytics and metrics are unrelated
d. analytics and metrics are the same thing
6. Which of the following is not a factor that influences how investment-oriented an organization is?
a. management values
b. needed employee skills
c. the product produced, or service provided
d. attitudes toward risk
7. The skills required for most jobs are becoming
a. less manual and more cerebral and knowledge-based
b. more manual and less cerebral and knowledge-based
c. less manual and more service-based
d. more manual and less service-based
8. Technology is becoming more invested in an organization’s
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Page 2
a. capital
b. people
c. new product development
d. market strategy
9. Physical and capital assets include all of the following except
a. plant
b. machinery
c. employees
d. technology
10. The HR Value Chain contains all of the following except
a. market-based outcomes
b. operational outcomes
c. financial/accounting outcomes
d. legal outcomes
11. Assets that are not easily cloned by competitors are
a. products, but not services
b. services, but not products
c. technologies
d. employees
12. Sources of employee value include all of the following except
a. the ability to learn and grow
b. decision making capabilities
c. self-loyalty
d. technical knowledge
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Page 3
Answer Key
1. False
2. False
3. False
4. False
5. b
6. c
7. a
8. b
9. c
10. d
11. d
12. c
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chapter 2
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Indicate whether the statement is true or false.
1. An organization pursuing a cost leadership strategy aggressively seeks prices slightly above the industry average to
increase and maximize profits.
a. True
b. False
2. Compensation systems in organizations that use a cost leadership strategy should focus on rewards that promote
efficiency.
a. True
b. False
3. The I/O model suggests that an organization’s strategy is driven by external considerations while the resource-based
view suggests that strategy should be driven by internal considerations.
a. True
b. False
4. An organization's strategy must be formulated prior to establishing its mission.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
5. Limited upward mobility is a critical human resource issue for an organization pursuing what strategy?
a. stability
b. growth
c. differentiation
d. cost leadership
6. Which model of strategy espouses the view that strategy should be driven by the organization’s external environment?
a. resource-based view
b. industrial organization model
c. external environment capitalization model
d. none of the above
7. The environmental analysis stage of strategic planning involves examining all of the following except
a. competition
b. technology
c. management systems
d. government regulations
8. Performance incentives for creativity should be utilized with what type of competitive strategy?
a. stability
b. retrenchment
c. defender

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