1. At the last board meeting of Clearwater Electronics, the HR director discussed the threat of a new entrant in the computer chip market, Silicon Unlimited. The HR director is concerned that Silicon Unlimited will try to poach some of Clearwaters top talent and wants the boards approval to make counteroffers to employees should this happen. Why is reducing the availability of top talent a good strategy to combat the threat of this new competitor?

   • It will ensure that Silicon Unlimited does not obtain the resources it needs to be successful.
   • It will create a barrier to entry for Silicon Unlimited and make it more difficult for the company to begin operations.
   • It will cause Silicon Unlimited to look elsewhere for employees.
   • It will make it harder for Silicon Unlimited to invest in the human capital it needs to get off the ground.
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   Due to a recent patent expiration, a new industry-wide computer chip design has been released. As a result, the company that develops and produces the chip fastest will have a significant increase in revenue and market share. The HR department at Clearwater Electronics responds quickly to the patent expirationa feature of the external environmentby hiring more innovative employees who can help with the implementation of the chip. Which of the following statements best describes the necessity for Clearwater Electronics to respond quickly to the external environment?

   • Organizations that can respond quickly and efficiently to the external environment often have a competitive edge over their competitors.
   • Organizations that respond quickly to the external environment can often capture the best talent available.
   • Organizations that respond quickly to the external environment can better comply with government and legal regulations.
   • Organizations that respond quickly to the external environment are often on the cutting edge of technology and know how to hire the new generation of workers.
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   To better frame the HR strategic recommendations for the next year, the HR director of Clearwater Electronics did some research on the companys history. The company was started in 1978 as a small electrical engineering company. However, after a decade of struggling, the company discovered an untapped niche market and began to produce electronic ceramics such as substrates and integrated circuit packages. In 1989, after realizing how profitable these products were, the company reincorporated itself as Clearwater Electronics and became one of the premier leaders in the computer chip industry. Clearwater Electronics has come a long way since its early days of emergent strategy. Today, the company uses a planning strategy to set goals. Why is a planning strategy better for Clearwaters business today?

   • A planning strategy is better for large businesses, so it would not have worked in Clearwaters early days.
   • A planning strategy allows a company to set its goals and objectives without the need for change or frequent review.
   • A planning strategy allows company departments to pursue different goals and objectives to become stronger business partners.
   • A planning strategy analyzes the business and the market to set goals and objectives, with constant attention to the direction the company is heading.
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   In the most recent negotiations, the union demanded a decrease in floor automation as well as additional paid time off for every employee on the floor. With the implementation and cost of a recent retirement plan for all employees at Clearwater Electronics, management felt that such demands were unacceptable, and negotiations have stalled for a month. The company and the union have agreed to mediation. Which statement best explains why mediation is a better option than arbitration for Clearwater in this situation?

   • Mediation is able to explore alternative solutions without offending both parties.
   • Mediation will allow both parties to take time to calm down and think clearly.
   • Mediation has no power to impose a settlement, so the company can still protect its position.
   • Mediation does not have a formal discovery process, so it is less time-consuming for the company.
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   Because most of Clearwater Electronics nonexempt employees belong to the union, the HR department at Clearwater Electronics recently hired a labor relations specialist, a new position in the company. Which statement gives the best reason for the company to have union expertise in the HR department?

   • The company needs the expertise to navigate the many changes in union legislation.
   • The company needs the expertise to dissuade employees wishing to organize into a union.
   • The company needs to be better informed about union tactics.
   • The company needs to be prepared to deal with employee discipline and investigations brought to the company.
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   The HR director at Clearwater Electronics is responsible for all negotiations with the companys union. Like other companies in the industry, most of the employee base at Clearwater is unionized. A meeting has been scheduled to negotiate a proposed wage increase for nonexempt employees at Clearwater, and the HR director anticipates the negotiation will be difficult. Why do wage disputes cause conflict?

   • Conflict arises because the employees do not understand the employers need to reduce costs to maintain a profitable company.
   • Conflict arises because people do not understand what the other side is going through.
   • Conflict arises because increased wages cost the company, and wage decreases cost the employee.
   • Conflict arises because the employer does not understand what it means to be in the trenches where true value is added to the company.
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   The HR director of Clearwater Electronics had a meeting with upper management to discuss new technology the company will be installing in the future and how to help employees adapt to the changes. The group developed a plan to start a task force with representatives from the departments involved: HR, production, maintenance, engineering, planning and scheduling, and quality. Which statement is the best reason why the company should involve employees from all levels in the task force?

   • The process of learning together will create an opportunity for people to get to know and understand one another better.
   • The company wants its employees to learn collaboratively and creatively and ultimately increase the transfer of knowledge and buy-in to all other employees.
   • The company wants its employees to feel valued, even if they dont understand the technology well enough to contribute valid ideas.
   • Getting different levels of employees to work together will help the company eliminate conflict that arises among employees, especially between managers and line workers.
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   A central part of Clearwater Electronics strategic plan is to design and implement a new warehouse management system (WMS). This new system should improve many of the systems and processes within the organization. As a result, most employees will experience a significant amount of change. Why would the HR director be tasked to manage this change process?

   • The HR director should be the primary contact for design and implementation processes due to the significant amount of training HR professionals receive in HR planning.
   • The HR director should be involved in every company project.
   • The HR director can provide project management guidance to the warehouse crew.
   • The HR director has the responsibility to align the organizations employees with its strategic goals and make sure employees understand how the change affects them.
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   Because of a recent downturn in the economy, the HR director of Clearwater Electronics would like to implement several changes to help the firm navigate anticipated difficulties. The HR director has prepared a needs analysis that explains the major benefits of implementing the changes, how employees will be notified of the changes, and how employees concerns about the changes will be addressed. Why is it important for the HR director to be concerned about how employees will accept the changes?

   • Understanding reactions to change will help the HR director show employees that they should be grateful for their employment during an economic downturn.
   • Knowing how employees will react will help inform the HR director which employees would be likely candidates for layoffs should the need arise.
   • Being proactive about perceived barriers to change will allow the HR director to be prepared to respond to questions and concerns.
   • The research done for the needs analysis will allow the HR director to analyze feedback and help protect the company from possible litigation.