Chapter 01 Human Resource Management: Gaining a ... ·...

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Chapter 01

Human Resource Management: Gaining a Competitive Advantage

True / False Questions

1. Companies have historically looked at HRM as a means to contribute to profitability, quality,

and other business goals through enhancing and supporting business operations.

True False

2. The human resource department is most likely to collaborate with other company functions

on outplacement, labor law compliance, testing, and unemployment compensation.

True False

3. The three product lines of HR include a) administrative services and transactions, B)

financial services, and c) strategic partners.

True False

4. The amount of time that the HRM function devotes to administrative tasks is decreasing, and

its roles as a strategic business partner, change agent, and employee advocate are increasing.

True False

5. Advances in technology have allowed HR services to be offered more on a self-service basis

than in the past.

True False

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6. HR functions related to areas such as employee development, performance management, and

organizational development are outsourced most frequently.

True False

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7. Evidence-based HR provides managers with data to make decisions, instead of just relying

on intuition.

True False

8. Stakeholders of a company are shareholders, the community, customers, employees, and all

of the other parties that have an interest in seeing that the company succeeds.

True False

9. Companies are now more and more interested in using intangible assets and human capital as

a way to gain an advantage over competitors.

True False

10. A learning organization places the highest emphasis on completion of formal employment

training.

True False

11. The psychological contract describes what an employee expects to contribute and what the

company will provide to the employee in return for these contributions.

True False

12. The use of alternative work arrangements, which include independent contractors, on-call

workers, temporary workers, and contract company workers, is shrinking.

True False

13. To be effective, balanced scorecards must be customized by companies to fit different

market situations, products, and competitive environments.

True False

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14. The balanced scorecard should not be used to link the company's human resource

management activities to the company's business strategy.

True False

15. Corporate cultures within companies that successfully implement TQM typically

emphasize individualism, hierarchy, accountability, and profits.

True False

16. ISO 9000 certification is an integral component of W. Edwards Deming's quality control

process.

True False

17. The skills and motivation of a company's internal labor force determine the need for

training and development practices and the effectiveness of the company's compensation and

reward systems.

True False

18. Because the workforce is predicted to become more uniform in terms of age, ethnicity, and

racial background, it is likely that one set of values will characterize all employees.

True False

19. Cultural diversity can provide a company competitive advantage regarding

problem-solving.

True False

20. The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy fines

and prison terms for noncompliance.

True False

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21. Every business must be prepared to deal with the global economy.

True False

22. One of the disadvantages of technology is that it does not allow older workers to postpone

retirement.

True False

23. E-HRM is more applicable to practices associated with recruiting and training than those

associated with analysis and design work, selection, and compensation and benefits.

True False

24. An HR dashboard is a series of indicators that managers and employees have access to on

the company intranet or human resource information system.

True False

25. Compensating human resources involves measuring employees' performance.

True False

Multiple Choice Questions

26. _____ refers to a company's ability to maintain and gain market share in its industry.

A. Outsourcing

B. Competitiveness

C. Self-service

D. Empowerment

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27. _____ refers to the policies, practices, and systems that influence employees' behavior,

attitudes, and performance.

A. Total quality management

B. Financial management

C. Human resource management

D. Production and operations management

28. Strategic HR management includes all but one of the following. Name the exception.

A. Financial planning

B. Training and development

C. Performance management

D. Recruiting talent

29. Which of the following is NOT a responsibility of HR departments?

A. Recruiting

B. Benefits

C. Community relations

D. Production and operations

30. Which of the following is NOT a product line of human resources?

A. Administrative services and transactions

B. Strategic partner

C. Human capital partner

D. Business partner services

31. Which of the following best describes a cultural steward?

A. Shapes the organization.

B. Delivers results with integrity.

C. Facilitates change.

D. Recognizes business trends and their impact on the business.

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32. A strategic architect is one who:

A. facilitates change.

B. recognizes business trends and their impact on the business.

C. implements workplace policies conducive to work environment.

D. develops talent and designs reward systems.

33. Giving employees online access to information about HR issues such as training, benefits,

and compensation is known as:

A. outsourcing.

B. continuous learning.

C. self-service.

D. strategic planning.

34. The practice of having another company (a vendor, third-party provider, consultant)

provide services traditionally associated with the administrative role of HR is known as:

A. e-commerce.

B. empowering.

C. outsourcing.

D. benchmarking.

35. Traditionally, the HRM department was primarily a(n):

A. proactive agency.

B. finance expert.

C. employer advocate.

D. administrative expert.

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36. Which of the following statements about evidence-based HR is FALSE?

A. It helps show that the money invested in HR programs is justified and that HR is

contributing to the company's goals and objectives.

B. It emphasizes that HR is being transformed from a broad corporate competency to a

specialized, stand-alone function in which human resources and line managers build

partnerships to gain competitive advantage.

C. It requires collecting data on such metrics as productivity, turnover, accidents, employee

attitudes and medical costs and showing their relationship with HR practices.

D. It refers to demonstrating that human resources practices have a positive influence on the

company's bottom line or key stakeholders.

37. Which one of the following statements about the HR profession is FALSE?

A. A college degree is required of HR specialists, but not of generalists.

B. Generalists usually perform the full range of HRM activities, including recruiting, training,

compensation, and employee relations.

C. Professional certification in HRM is less common than membership in professional

associations.

D. The primary professional organization for HRM is the Society for Human Resource

Management.

38. All of the following competitive challenges faced by companies will increase the

importance of human resource management EXCEPT:

A. the global challenge.

B. the challenge of sustainability.

C. the political challenge.

D. the technology challenge.

39. _____ refers to the ability of a company to survive and succeed in a dynamic competitive

environment.

A. Outsourcing

B. Empowerment

C. Sustainability

D. Resource management

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40. Sustainability includes all of the following EXCEPT:

A. expanding into foreign markets.

B. the ability to deal with economic and social changes.

C. engaging in responsible and ethical business practices.

D. providing high-quality products and services.

41. Which of the following statements about intangible assets is FALSE?

A. They include human capital.

B. They are less valuable than physical assets.

C. They are equally or even more valuable than financial assets.

D. They are difficult to duplicate or imitate.

42. Tacit knowledge is an example of _____ capital.

A. social

B. customer

C. human

D. intellectual

43. Which of the following is NOT true of knowledge workers?

A. They often contribute specialized knowledge that their managers may not have, such as

information about customers.

B. They have many job opportunities.

C. They are in high demand because companies need their skills.

D. They contribute to the company through manual labor and intellectual labor.

44. Empowering is defined as:

A. the movement of women and minorities into managerial positions.

B. giving employees responsibility and authority to make decisions regarding all aspects of

product development or customer service.

C. leading employees by the strength of one's charisma.

D. the act of continually learning and improving one's skills and abilities.

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45. A(n) _____ contract describes what an employee expects to contribute and what the

company will provide to the employee for these contributions.

A. employer

B. employee

C. psychological

D. job

46. All of the following are examples of alternative work arrangements EXCEPT:

A. independent contractors.

B. current labor force.

C. on-call workers.

D. temporary workers.

47. The balanced scorecard:

A. is similar to most measures of company performance.

B. uses indicators important to the company's strategy.

C. is a standardized instrument of company performance.

D. should not be applied to HR practices.

48. The balanced scorecard presents a view of company performance from the perspective of:

A. its customers only.

B. its employees only.

C. its employees and customers only.

D. its employees, customers, and shareholders.

49. According to the financial perspective of the balanced scorecard, which of the following

questions should be answered?

A. How do customers see us?

B. Can we continue to improve and create value?

C. What must we excel at?

D. How do we look to shareholders?

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50. Increasingly, companies are trying to meet shareholder and general public demands that

they be more socially, ethically, and environmentally responsible. Thus, companies are

recognizing the importance of:

A. a balanced scorecard approach to business.

B. diversity.

C. total quality management.

D. social responsibility.

51. TQM focuses on:

A. designing processes to meet the needs of external customers only.

B. reducing variability in the product or service.

C. preventing errors rather than correcting errors.

D. tying pay to employees' total output less rejects.

52. "How senior executives create and sustain corporate citizenship, customer focus, clear

values, and expectations, and promote quality and performance excellence" is the definition for

which Malcolm Baldrige National Quality Award criterion?

A. Strategic planning

B. Workforce focus

C. Customer and market focus

D. Leadership

53. Which one of the following is NOT true of the Six Sigma process?

A. The objective of the process is to create a total business focus on serving the customer.

B. Training is an important component of the process.

C. The process is one of seven categories evaluated within the Malcolm Baldrige Quality

Award.

D. The process involves measuring, analyzing, improving, and controlling processes once they

have been brought within six quality standards.

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54. Which of following holds TRUE for lean thinking?

A. It is a way to do more with less effort, time, equipment, and space.

B. It is a way to compete for quality awards and certification.

C. It includes offering no-frills goods and services to customers.

D. It is working for zero inventories.

55. The skills and motivation of a company's _____ labor force determine the need for training

and development practices and the effectiveness of the company's compensation and reward

systems.

A. projected

B. secondary

C. external

D. internal

56. Which of the following statements about the composition of the U.S. labor force in the next

decade is TRUE?

A. Labor force growth is greater than at any other time in U.S. history.

B. The largest proportion of the labor force is expected to be in the 16-to-24-year age group.

C. There will be fewer white males than minorities or women in the labor force.

D. The number of "baby boom" workers will increase faster than any other age group.

57. Which of the following statements about older workers is FALSE?

A. Worker performance and learning are adversely affected by aging.

B. The aging labor force means companies are likely to employ a growing share of older

workers.

C. An emerging trend is for qualified older workers to ask to work part-time or for only a few

months at a time as a means to transition to retirement.

D. Older employees are willing and able to learn new technology.

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58. Baby boomers:

A. like the latest technology, are ambitious and goal-oriented, and seek meaningful work.

B. want to be noticed, respected, and involved.

C. tend to be uncomfortable challenging the status quo and authority.

D. value unexpected rewards for work accomplishments, opportunities to learn new things,

praise, recognition, and time with the manager.

59. Regardless of their background, most employees' value:

A. the ability to challenge the status quo.

B. simplistic tasks requiring few skills.

C. managerial positions.

D. work that leads to self-fulfillment.

60. To successfully manage a diverse workforce, managers need to develop all of the following

skills EXCEPT:

A. providing performance feedback that is based on values rather than objective outcomes.

B. communicating effectively with employees from a wide variety of cultural backgrounds.

C. coaching employees of different ages, educational backgrounds, ethnicity, physical ability,

and race.

D. recognizing and responding to generational issues.

61. Managing cultural diversity involves:

A. enforcing EEO rules.

B. creating separate career tracks for employees with families.

C. establishing a strong affirmative action policy.

D. creating a workplace that makes it comfortable for employees of all backgrounds to be

creative and innovative.

62. How diversity issues are managed in companies has implications for all the following

EXCEPT:

A. knowing how to learn.

B. creativity.

C. retaining good employees.

D. problem solving.

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63. Managing cultural diversity can provide a competitive advantage by:

A. decreasing the number of available women and minorities in the company's labor pool.

B. helping women and minorities understand they must conform to organizational norms and

expectations.

C. helping companies produce better decisions by including all employees' perspectives and

analysis.

D. identifying product markets on which the company should focus.

64. In managing cultural diversity, which of the following would improve the level of creativity

thereby providing competitive advantage to an organization?

A. Diversity of perspectives and less emphasis on conformity to norms of the past.

B. Those with the best reputations for managing diversity will win the competition for the best

personnel.

C. An implication of the multicultural model for managing diversity is that the system will

become less determinate, less standardized, and therefore more fluid.

D. Heterogeneity in decisions and problem-solving groups potentially produces better

decisions.

65. Which of the following cultural diversity arguments states that companies with the best

reputations for managing diversity will win the competition for the best personnel?

A. System flexibility argument

B. Marketing argument

C. Employee attraction and retention argument

D. Problem-solving argument

66. Diversity is important for tapping all of the following skills of employees EXCEPT:

A. cultural skills.

B. communication skills.

C. creativity.

D. homogeneous thinking.

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67. What areas of the legal environment have influenced HRM practices over the past 25

years?

A. Equal employment opportunity, safety and health, pay and benefits, privacy, and job

security.

B. Executive compensation, pay and benefits, workers' compensation, safety and health, and

job security.

C. Product liability, workers' compensation, equal employment opportunity, safety and health,

and labor relations.

D. Equal employment opportunity, patent infringement, workers' compensation, safety and

health, and job security.

68. There will likely be continued discussion, debate, and possible legislation in all but one of

the following areas in companies. Name the exception.

A. Genetic testing

B. Glass ceiling

C. Employment-at-will

D. Design of physical work environment

69. Litigation involving job security will have a major influence on human resource

management practices because:

A. work rules, recruitment practices, and performance evaluation systems might falsely

communicate lifetime employment agreements that the company does not intend to honor

during layoffs.

B. adjustments of test scores to meet affirmative action requirements are now illegal.

C. employees now bear the burden of proof in discrimination cases.

D. compensation awards for discrimination claims have increased.

70. Which of the following is one of the four ethical principles of a successful company?

A. Managers assume all responsibility for the actions of the company.

B. It has a strong profit orientation.

C. Customer, client, and vendor relationships emphasize mutual benefits.

D. It does not produce products that can be used for violent purposes.

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71. Which legislation act sets new strict rules for business especially as regards accounting

practices?

A. Human Rights Act of 1994

B. Reverse Discrimination Act of 1990

C. Sarbanes-Oxley Act of 2002

D. Corruption and Practices Act of 2000

72. Which of the following is NOT a standard that human resource managers must satisfy for

practices to be ethical?

A. Managers must treat employees as family.

B. Human resource practices must result in the greatest good for the largest number of people.

C. Employment practices must respect basic human rights of privacy, due process, and free

speech.

D. Managers must treat employees and customers equitably and fairly.

73. Exporting jobs from developed to less developed countries is known as:

A. insourcing.

B. offshoring.

C. importing.

D. onshoring.

74. Exporting jobs to rural parts of the United States is referred to as:

A. insourcing.

B. offshoring.

C. importing.

D. onshoring

75. Which of the following statements about technology is FALSE?

A. The Internet allows employees to locate and gather resources, including software, reports,

photos, and videos.

B. Technology does not allow older workers to postpone retirement.

C. The Internet gives employees instant access to experts whom they can communicate with.

D. Technology has made equipment easier to operate, helping companies cope with skill

shortages.

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76. Which of the following is NOT typically true of work teams?

A. They are used to increase employee responsibility and control.

B. They use cross-training to give employees knowledge on a wide range of skills.

C. They frequently select new team members and plan work schedules.

D. They assume all of the activities reserved for managers such as controlling, planning, and

coordinating activities.

77. Which of the following is NOT recommended for supporting work teams?

A. Reducing flexibility and interaction between employees to maintain high productivity.

B. Giving employees formal performance feedback.

C. Linking compensation and rewards with performance.

D. Allowing employees to participate in planning changes in equipment, layout, and work

methods.

78. All of the following statements about cross training are true EXCEPT:

A. it provides teams' maximum flexibility.

B. it helps in measuring employees' performance.

C. it trains employees in a wide range of skills.

D. employees can fill any of the roles needed to be performed on the team.

79. Company X has offices around the globe. Its teams are separated by time, geographic

distance, culture and/or organizational boundaries, and almost rely exclusively on technology

for interaction between team members. Its teams are:

A. virtual teams.

B. geographically-concentrated teams.

C. lean teams.

D. teleworker teams.

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80. Adaptive organizational structures emphasize:

A. efficiency, decision making by managers, and the flow of information from top to bottom of

the organization.

B. a core set of values, and elimination of boundaries between managers, employees, and

organizational functions.

C. clear boundaries between managers, employees, customers, vendors, and the functional

areas, and a constant state of learning.

D. internal linking, external linking, diversification, and a core set of values.

81. Which of the following is FALSE about high-involvement, adaptive organizational

structures?

A. Employees are in a constant state of learning and performance improvement.

B. Employees are free to move wherever they are needed in a company.

C. Line employees are trained to specialize in one job in order to maximize efficiency.

D. Previously established boundaries between managers, employees, customers, and vendors

are abandoned.

82. Employees in geographically dispersed locations can work together in virtual teams using

video, e-mail, and the Internet. This e-HRM implication refers to which aspect of HR?

A. Recruiting

B. Analysis and design of work

C. Selection

D. Compensation and benefits

83. From the manager's perspective, an HRIS can be used to perform primarily all but one of the

following. Name the exception.

A. Support strategic decision making

B. Avoid litigation

C. Evaluate programs and policies

D. Motivate employees

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84. A(n) _____ is a series of indicators or metrics that managers and employees have access to

on the company intranet or human resource information system.

A. HR dashboard

B. balanced scorecard

C. web portal

D. Intranet

85. All of the following HR practices support high-performance work systems EXCEPT:

A. employees participate in selection process.

B. jobs are designed to use a variety of skills.

C. employee rewards are related to company performance.

D. individuals tend to work separately.

86. Which one of the following is NOT associated with managing the human resource

environment?

A. Linking HRM practices to the company's business objectives.

B. Identifying human resource requirements through human resource planning, recruitment,

and selection.

C. Ensuring that HRM practices comply with federal, state, and local laws.

D. Designing work that motivates and satisfies the employee as well as maximizes customer

service, quality, and productivity.

87. Economic value is traditionally associated with all of the following EXCEPT:

A. equipment.

B. technology.

C. facilities.

D. HRM practices.

88. A company's human resource acquisition requirements are influenced by all of the

following EXCEPT:

A. terminations.

B. customer demands for products and services.

C. motivation and satisfaction of employees.

D. promotions.

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89. Managing the assessment and development of human resources involves all of the

following EXCEPT:

A. measuring employees' performance.

B. creating an employment relationship and work environment that benefits both the company

and the employee.

C. recruiting employees and placing them in jobs that best use their skills.

D. identifying employees' work interests, goals, and values, and other career issues.

90. Besides interesting work, _____ are the most important incentives that companies can offer

to its employees.

A. training for future work roles

B. beneficial work environments

C. support for nonwork activities

D. pay and benefits

Essay Questions

91. Name and discuss the competencies that HR professionals need.

92. How has the role of HRM changed in recent years? Discuss three trends that are changing

the HRM function. Why have these roles changed?

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93. What is meant by empowering and what type of training must be conducted to make it

effective?

94. Discuss the balanced scorecard approach of measuring stakeholder performance.

95. Discuss the Malcolm Baldrige National Quality Award including its purpose, the

application process, the criteria used for evaluation, and the advantages associated with the

award.

96. What sorts of activities does managing cultural diversity involve? Discuss four of the six

ways (arguments) that managing cultural diversity can provide a competitive advantage.

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97. What five main areas of the legal environment have influenced human resource

management over the past 25 years?

98. Define electronic human resource management (e-HRM) and indicate its implications for

five HRM practices.

99. Discuss how HR practices support the use of new technology and work designs.

100. Outline the four dimensions of human resource management practices, including specific

examples of human resource practices within each area.

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Chapter 01 Human Resource Management: Gaining a Competitive Advantage

Answer Key

True / False Questions

1. (p. 5) Companies have historically looked at HRM as a means to contribute to profitability,

quality, and other business goals through enhancing and supporting business operations.

FALSE

AACSB: Business Knowledge and Analytic Skills

BT: Knowledge

Difficulty: Easy Learning Objective: 1-1

Topic: What Responsibilities and Roles do HR Departments Perform?

2. (p. 5) The human resource department is most likely to collaborate with other company

functions on outplacement, labor law compliance, testing, and unemployment compensation.

FALSE

AACSB: Business Knowledge and Analytic Skills, Group/Individual Dynamics in Organizations

BT: Knowledge Difficulty: Easy

Learning Objective: 1-1 Topic: What Responsibilities and Roles do HR Departments Perform?

3. (p. 6) The three product lines of HR include a) administrative services and transactions, B)

financial services, and c) strategic partners.

FALSE


BT: Knowledge


Topic: What Responsibilities and Roles do HR Departments Perform?

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4. (p. 9) The amount of time that the HRM function devotes to administrative tasks is decreasing,

and its roles as a strategic business partner, change agent, and employee advocate are

increasing.

TRUE

AACSB: Business Knowledge and Analytic Skills, Group/Individual Dynamics in Organizations BT: Knowledge

Difficulty: Medium Learning Objective: 1-1

Topic: How is the HRM Function Changing?

5. (p. 9) Advances in technology have allowed HR services to be offered more on a self-service

basis than in the past.

TRUE

AACSB: Business Knowledge and Analytic Skills, Information Technologies

BT: Knowledge Difficulty: Medium

Learning Objective: 1-1 Topic: How is the HRM Function Changing?

6. (p. 9) HR functions related to areas such as employee development, performance management,

and organizational development are outsourced most frequently.

FALSE

AACSB: Business Knowledge and Analytic Skills BT: Knowledge



7. (p. 11) Evidence-based HR provides managers with data to make decisions, instead of just

relying on intuition.

TRUE




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8. (p. 14) Stakeholders of a company are shareholders, the community, customers, employees,

and all of the other parties that have an interest in seeing that the company succeeds.

TRUE



Topic: Introduction

9. (p. 19) Companies are now more and more interested in using intangible assets and human

capital as a way to gain an advantage over competitors.

TRUE



Learning Objective: 1-2

Topic: The Sustainability Challenge

10. (p. 22) A learning organization places the highest emphasis on completion of formal

employment training.

FALSE




11. (p. 22) The psychological contract describes what an employee expects to contribute and what

the company will provide to the employee in return for these contributions.

TRUE





1-26

12. (p. 25) The use of alternative work arrangements, which include independent contractors,

on-call workers, temporary workers, and contract company workers, is shrinking.

FALSE




13. (p. 27) To be effective, balanced scorecards must be customized by companies to fit different

market situations, products, and competitive environments.

TRUE

AACSB: Business Knowledge and Analytic Skills, Domestic and Global Economic Environments of Organizations



Topic: Meeting the Needs of Stakeholders, Shareholders, Customers, Employees, and Community

14. (p. 27) The balanced scorecard should not be used to link the company's human resource

management activities to the company's business strategy.

FALSE




15. (p. 30) Corporate cultures within companies that successfully implement TQM typically

emphasize individualism, hierarchy, accountability, and profits.

FALSE




Topic: Customer Service and Quality Emphasis

1-27

16. (p. 31) ISO 9000 certification is an integral component of W. Edwards Deming's quality

control process.

FALSE




17. (p. 34) The skills and motivation of a company's internal labor force determine the need for


reward systems.

TRUE



Learning Objective: 1-3 Topic: Changing Demographics and Diversity of the Workforce

18. (p. 37) Because the workforce is predicted to become more uniform in terms of age, ethnicity,

and racial background, it is likely that one set of values will characterize all employees.

FALSE



Topic: Changing Demographics and Diversity of the Workforce

19. (p. 39) Cultural diversity can provide a company competitive advantage regarding

problem-solving.

TRUE

AACSB: Multicultural and Diversity Understanding, Business Knowledge and Analytic Skills



1-28

20. (p. 42) The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy

fines and prison terms for noncompliance.

TRUE

AACSB: Business Knowledge and Analytic Skills, Ethical/Legal Responsibilities BT: Knowledge


Topic: Legal and Ethical Issues

21. (p. 43) Every business must be prepared to deal with the global economy.

TRUE




Topic: The Global Challenge

22. (p. 48) One of the disadvantages of technology is that it does not allow older workers to

postpone retirement.

FALSE

AACSB: Business Knowledge and Analytic Skills, Information Technologies BT: Knowledge

Difficulty: Medium

Learning Objective: 1-5 Topic: The Technology Challenge

23. (p. 51) E-HRM is more applicable to practices associated with recruiting and training than

those associated with analysis and design work, selection, and compensation and benefits.

FALSE

AACSB: Reflective Thinking Skills, Information Technologies

BT: Comprehension Difficulty: Medium


Topic: High-Performance Work Systems

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24. (p. 54) An HR dashboard is a series of indicators that managers and employees have access to

on the company intranet or human resource information system.

TRUE




25. (p. 58) Compensating human resources involves measuring employees' performance.

FALSE




Topic: Meeting Competitive Challenges Through HRM Practices

Multiple Choice Questions

26. (p. 4) _____ refers to a company's ability to maintain and gain market share in its industry.

A. Outsourcing

B. Competitiveness

C. Self-service

D. Empowerment

Competitiveness is related to company effectiveness, which is determined by whether the

company satisfies the needs of stakeholders (groups affected by business practices).



Learning Objective: 1-1 Topic: Introduction

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27. (p. 4) _____ refers to the policies, practices, and systems that influence employees' behavior,

attitudes, and performance.

A. Total quality management

B. Financial management

C. Human resource management

D. Production and operations management

Many companies refer to HRM as involving "people practices."




Topic: Introduction

28. (p. 5) Strategic HR management includes all but one of the following. Name the exception.

A. Financial planning

B. Training and development

C. Performance management

D. Recruiting talent

Strategic HR management includes Analysis and design of work, HR planning, Recruiting,

Selection, Training and development, Compensation, Performance management, and

Employee relations.



Learning Objective: 1-1 Topic: Introduction

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29. (p. 6) Which of the following is NOT a responsibility of HR departments?

A. Recruiting

B. Benefits

C. Community relations

D. Production and operations

The Responsibilities of HR departments include Employment and Recruiting, Training and

Development, Compensation, Benefits, Employee services, Employee and community

relations, Personnel records, Health and safety and Strategic planning.




30. (p. 6) Which of the following is NOT a product line of human resources?

A. Administrative services and transactions

B. Strategic partner

C. Human capital partner

D. Business partner services

The product lines of human resources include Administrative services and transactions,

Strategic partner and Business partner services.




1-32

31. (p. 8) Which of the following best describes a cultural steward?

A. Shapes the organization.

B. Delivers results with integrity.

C. Facilitates change.

D. Recognizes business trends and their impact on the business.

Cultural steward facilitates change, develops and values the culture and helps employees

navigate the culture.




Topic: What Competencies Do HR Professionals Need?

32. (p. 8) A strategic architect is one who:

A. facilitates change.

B. recognizes business trends and their impact on the business.

C. implements workplace policies conducive to work environment.

D. develops talent and designs reward systems.

A strategic architect is one who recognizes business trends and their impact on the business and

develops people strategies that contribute to the business strategy.





1-33

33. (p. 9) Giving employees online access to information about HR issues such as training,

benefits, and compensation is known as:

A. outsourcing.

B. continuous learning.

C. self-service.

D. strategic planning.

Self-service refers to giving employees online access to information about HR issues such as

training, benefits, compensation, and contracts; enrolling online in programs and services; and

completing online attitude surveys.

AACSB: Business Knowledge and Analytic Skills, Information Technologies



34. (p. 9) The practice of having another company (a vendor, third-party provider, consultant)

provide services traditionally associated with the administrative role of HR is known as:

A. e-commerce.

B. empowering.

C. outsourcing.

D. benchmarking.

The primary reasons for outsourcing are to save money and spend more time on strategic

business issues.


Difficulty: Easy


1-34

35. (p. 10) Traditionally, the HRM department was primarily a(n):

A. proactive agency.

B. finance expert.

C. employer advocate.

D. administrative expert.

The HRM department took care of employee problems, made sure employees were paid

correctly, administered labor contracts, and avoided legal problems.





36. (p. 11) Which of the following statements about evidence-based HR is FALSE?

A. It helps show that the money invested in HR programs is justified and that HR is

contributing to the company's goals and objectives.

B. It emphasizes that HR is being transformed from a broad corporate competency to a

specialized, stand-alone function in which human resources and line managers build


C. It requires collecting data on such metrics as productivity, turnover, accidents, employee

attitudes and medical costs and showing their relationship with HR practices.

D. It refers to demonstrating that human resources practices have a positive influence on the

company's bottom line or key stakeholders.

A study concludes that human resources is being transformed from a specialized, stand-alone

function to a broad corporate competency in which human resources and line managers build


AACSB: Reflective Thinking Skills BT: Comprehension

Difficulty: Medium



1-35

37. (p. 12-13) Which one of the following statements about the HR profession is FALSE?

A. A college degree is required of HR specialists, but not of generalists.

B. Generalists usually perform the full range of HRM activities, including recruiting, training,

compensation, and employee relations.

C. Professional certification in HRM is less common than membership in professional

associations.

D. The primary professional organization for HRM is the Society for Human Resource

Management.

A college degree is required of all HR professionals.

AACSB: Reflective Thinking Skills

BT: Comprehension Difficulty: Hard

Learning Objective: 1-1 Topic: What Competencies Do HR Professionals Need?

38. (p. 13) All of the following competitive challenges faced by companies will increase the

importance of human resource management EXCEPT:

A. the global challenge.

B. the challenge of sustainability.

C. the political challenge.

D. the technology challenge.

Three competitive challenges that companies now face will increase the importance of human

resource management practices: the challenge of sustainability, the global challenge, the

technology challenge.

AACSB: Business Knowledge and Analytic Skills, Domestic and Global Economic Environments of Organizations BT: Knowledge

Difficulty: Medium

Learning Objective: 1-2 Topic: Competitive Challenges Influencing Human Resource Management

1-36

39. (p. 14) _____ refers to the ability of a company to survive and succeed in a dynamic

competitive environment.

A. Outsourcing

B. Empowerment

C. Sustainability

D. Resource management

Sustainability refers to a company's ability to make a profit without sacrificing the resources of

its employees, the community, or the environment.



Learning Objective: 1-2 Topic: The Sustainability Challenge

40. (p. 14) Sustainability includes all of the following EXCEPT:

A. expanding into foreign markets.

B. the ability to deal with economic and social changes.

C. engaging in responsible and ethical business practices.

D. providing high-quality products and services.

Expanding into foreign markets falls under the global challenge.





1-37

41. (p. 19) Which of the following statements about intangible assets is FALSE?

A. They include human capital.

B. They are less valuable than physical assets.

C. They are equally or even more valuable than financial assets.

D. They are difficult to duplicate or imitate.

Intangible assets are equally or even more valuable than physical assets.




Topic: Economic Changes

42. (p. 20) Tacit knowledge is an example of _____ capital.

A. social

B. customer

C. human

D. intellectual

Tacit knowledge, Education, Work-related know how and Work-related competence are the

examples of human capital.





1-38

43. (p. 21) Which of the following is NOT true of knowledge workers?

A. They often contribute specialized knowledge that their managers may not have, such as

information about customers.

B. They have many job opportunities.

C. They are in high demand because companies need their skills.

D. They contribute to the company through manual labor and intellectual labor.

Knowledge workers are employees who contribute to the company not through manual labor,

but through what they know about customers or a specialized body of knowledge.



Learning Objective: 1-2 Topic: Economic Changes

44. (p. 21) Empowering is defined as:

A. the movement of women and minorities into managerial positions.

B. giving employees responsibility and authority to make decisions regarding all aspects of

product development or customer service.

C. leading employees by the strength of one's charisma.

D. the act of continually learning and improving one's skills and abilities.

Employees also share the rewards and losses of the results.

AACSB: Business Knowledge and Analytic Skills, Group/Individual Dynamics in Organizations



1-39

45. (p. 22) A(n) _____ contract describes what an employee expects to contribute and what the

company will provide to the employee for these contributions.

A. employer

B. employee

C. psychological

D. job

Unlike a sales contract, a psychological contract is not written.





46. (p. 25) All of the following are examples of alternative work arrangements EXCEPT:

A. independent contractors.

B. current labor force.

C. on-call workers.

D. temporary workers.

Alternative work arrangements include independent contractors, on-call workers, temporary

workers, and contract company workers.





1-40

47. (p. 27) The balanced scorecard:

A. is similar to most measures of company performance.

B. uses indicators important to the company's strategy.

C. is a standardized instrument of company performance.

D. should not be applied to HR practices.

The balanced scorecard depicts the company from the perspective of internal and external

customers, employees, and shareholders.





48. (p. 27) The balanced scorecard presents a view of company performance from the perspective

of:

A. its customers only.

B. its employees only.

C. its employees and customers only.

D. its employees, customers, and shareholders.

The balanced scorecard is important because it brings together most of the features that a

company needs to focus on to be competitive.



Learning Objective: 1-3 Topic: Meeting the Needs of Stakeholders, Shareholders, Customers, Employees, and Community

1-41

49. (p. 28) According to the financial perspective of the balanced scorecard, which of the

following questions should be answered?

A. How do customers see us?

B. Can we continue to improve and create value?

C. What must we excel at?

D. How do we look to shareholders?

According to the financial perspective of the balanced scorecard, the question should be

answered is "How do we look to shareholders?" The managers should be able to identify critical

indicators or metrics related to human resources.




50. (p. 28) Increasingly, companies are trying to meet shareholder and general public demands

that they be more socially, ethically, and environmentally responsible. Thus, companies are

recognizing the importance of:

A. a balanced scorecard approach to business.

B. diversity.

C. total quality management.

D. social responsibility.

Social responsibility can help boost a company's image with customers, gain access to new

markets, and help attract and retain talented employees.


Difficulty: Medium


1-42

51. (p. 30) TQM focuses on:

A. designing processes to meet the needs of external customers only.

B. reducing variability in the product or service.

C. preventing errors rather than correcting errors.

D. tying pay to employees' total output less rejects.

TQM refers to a cooperative form of doing business that relies on the talents and capabilities of

both labor and management to continually improve quality and productivity.





52. (p. 31) "How senior executives create and sustain corporate citizenship, customer focus, clear

values, and expectations, and promote quality and performance excellence" is the definition for

which Malcolm Baldrige National Quality Award criterion?

A. Strategic planning

B. Workforce focus

C. Customer and market focus

D. Leadership

Malcolm Baldrige National Quality Award is an award established in 1987 to promote quality

awareness, to recognize quality achievements of U.S. companies, and to publicize successful

quality strategies.


Difficulty: Medium

Learning Objective: 1-3 Topic: Customer Service and Quality Emphasis

1-43

53. (p. 33) Which one of the following is NOT true of the Six Sigma process?

A. The objective of the process is to create a total business focus on serving the customer.

B. Training is an important component of the process.

C. The process is one of seven categories evaluated within the Malcolm Baldrige Quality

Award.

D. The process involves measuring, analyzing, improving, and controlling processes once they

have been brought within six quality standards.

Seven categories evaluated within the Malcolm Baldrige Quality Award are leadership,

measurement, analysis, and knowledge management, strategic planning, workforce focus,

process management, business results and customer and market focus.

AACSB: Reflective Thinking Skills, Value Creation BT: Comprehension

Difficulty: Medium


54. (p. 33) Which of following holds TRUE for lean thinking?

A. It is a way to do more with less effort, time, equipment, and space.

B. It is a way to compete for quality awards and certification.

C. It includes offering no-frills goods and services to customers.

D. It is working for zero inventories.

Part of lean thinking includes training workers in new skills or how to apply old skills in new

ways so they can quickly take over new responsibilities or use new skills to help fill customer

orders.

AACSB: Business Knowledge and Analytic Skills, Value Creation BT: Knowledge

Difficulty: Medium


1-44

55. (p. 34) The skills and motivation of a company's _____ labor force determine the need for


reward systems.

A. projected

B. secondary

C. external

D. internal

The labor force of current employees is often referred to as the internal labor force.




56. (p. 34-37) Which of the following statements about the composition of the U.S. labor force in

the next decade is TRUE?

A. Labor force growth is greater than at any other time in U.S. history.

B. The largest proportion of the labor force is expected to be in the 16-to-24-year age group.

C. There will be fewer white males than minorities or women in the labor force.

D. The number of "baby boom" workers will increase faster than any other age group.

The 55 years and older workforce is expected to grow by approximately 47 percent between

2006 and 2016, more than five times the 8.5 percent growth projected for the entire workforce.




1-45

57. (p. 35) Which of the following statements about older workers is FALSE?

A. Worker performance and learning are adversely affected by aging.

B. The aging labor force means companies are likely to employ a growing share of older

workers.

C. An emerging trend is for qualified older workers to ask to work part-time or for only a few

months at a time as a means to transition to retirement.

D. Older employees are willing and able to learn new technology.

Older employees are willing and able to learn new technology.




58. (p. 37) Baby boomers:

A. like the latest technology, are ambitious and goal-oriented, and seek meaningful work.

B. want to be noticed, respected, and involved.

C. tend to be uncomfortable challenging the status quo and authority.

D. value unexpected rewards for work accomplishments, opportunities to learn new things,

praise, recognition, and time with the manager.

"Baby boomers," born between 1946 and 1964, live to work.




1-46

59. (p. 38) Regardless of their background, most employees' value:

A. the ability to challenge the status quo.

B. simplistic tasks requiring few skills.

C. managerial positions.

D. work that leads to self-fulfillment.

Employees view work as a means to self-fulfillment—that is, a means to more fully use their

skills and abilities, meet their interests, and allow them to live a desirable life-style.





60. (p. 38-39) To successfully manage a diverse workforce, managers need to develop all of the

following skills EXCEPT:

A. providing performance feedback that is based on values rather than objective outcomes.

B. communicating effectively with employees from a wide variety of cultural backgrounds.

C. coaching employees of different ages, educational backgrounds, ethnicity, physical ability,

and race.

D. recognizing and responding to generational issues.

Managers need to develop a skill of providing performance feedback that is based on objective

outcomes rather than values and stereotypes that work against women, minorities, and

handicapped persons by prejudging these persons' abilities and talents.

AACSB: Multicultural and Diversity Understanding, Reflective Thinking Skills BT: Comprehension

Difficulty: Medium


1-47

61. (p. 39) Managing cultural diversity involves:

A. enforcing EEO rules.

B. creating separate career tracks for employees with families.

C. establishing a strong affirmative action policy.

D. creating a workplace that makes it comfortable for employees of all backgrounds to be

creative and innovative.

How diversity issues are managed has implications for creativity, problem solving, retaining

good employees, and developing markets for the firm's products and services.




62. (p. 39) How diversity issues are managed in companies has implications for all the following

EXCEPT:

A. knowing how to learn.

B. creativity.

C. retaining good employees.

D. problem solving.

How diversity issues are managed has implications for creativity, problem solving, retaining

good employees, and developing markets for the firm's products and services.

AACSB: Multicultural and Diversity Understanding, Reflective Thinking Skills



1-48

63. (p. 39) Managing cultural diversity can provide a competitive advantage by:

A. decreasing the number of available women and minorities in the company's labor pool.

B. helping women and minorities understand they must conform to organizational norms and

expectations.

C. helping companies produce better decisions by including all employees' perspectives and

analysis.

D. identifying product markets on which the company should focus.

Managing cultural diversity can provide a competitive advantage by cost argument, employee

attraction and retention argument, marketing argument, creativity argument, problem-solving

argument and system flexibility argument.

AACSB: Multicultural and Diversity Understanding, Reflective Thinking Skills BT: Comprehension

Difficulty: Medium


64. (p. 39) In managing cultural diversity, which of the following would improve the level of

creativity thereby providing competitive advantage to an organization?

A. Diversity of perspectives and less emphasis on conformity to norms of the past.

B. Those with the best reputations for managing diversity will win the competition for the best

personnel.

C. An implication of the multicultural model for managing diversity is that the system will

become less determinate, less standardized, and therefore more fluid.

D. Heterogeneity in decisions and problem-solving groups potentially produces better

decisions.

Diversity of perspectives and less emphasis on conformity to norms of the past (which

characterize the modern approach to management of diversity) should improve the level of

creativity in managing cultural diversity. This is called creative argument.


BT: Comprehension



1-49

65. (p. 39) Which of the following cultural diversity arguments states that companies with the best

reputations for managing diversity will win the competition for the best personnel?

A. System flexibility argument

B. Marketing argument

C. Employee attraction and retention argument

D. Problem-solving argument

Employee attraction and retention argument states that companies develop reputations on

favorability as prospective employers for women and ethnic minorities. Those with the best

reputations for managing diversity will win the competition for the best personnel.




66. (p. 39) Diversity is important for tapping all of the following skills of employees EXCEPT:

A. cultural skills.

B. communication skills.

C. creativity.

D. homogeneous thinking.

Diversity is important for tapping all employees' creative, cultural, and communication skills

and using those skills to provide competitive advantage.




1-50

67. (p. 40) What areas of the legal environment have influenced HRM practices over the past 25

years?

A. Equal employment opportunity, safety and health, pay and benefits, privacy, and job

security.

B. Executive compensation, pay and benefits, workers' compensation, safety and health, and

job security.

C. Product liability, workers' compensation, equal employment opportunity, safety and health,

and labor relations.

D. Equal employment opportunity, patent infringement, workers' compensation, safety and

health, and job security.

Attention is likely to continue to be paid to age, race, and religious discrimination, and

discrimination against physically challenged employees.

AACSB: Business Knowledge and Analytic Skills, Ethical/Legal Responsibilities BT: Knowledge



68. (p. 40-41) There will likely be continued discussion, debate, and possible legislation in all but

one of the following areas in companies. Name the exception.

A. Genetic testing

B. Glass ceiling

C. Employment-at-will

D. Design of physical work environment

There is also likely to be continued discussion about legislation to prohibit discrimination by

employers and health insurers against employees based on their genetic makeup.

AACSB: Reflective Thinking Skills, Ethical/Legal Responsibilities BT: Comprehension

Difficulty: Medium



1-51

69. (p. 41) Litigation involving job security will have a major influence on human resource

management practices because:

A. work rules, recruitment practices, and performance evaluation systems might falsely

communicate lifetime employment agreements that the company does not intend to honor

during layoffs.

B. adjustments of test scores to meet affirmative action requirements are now illegal.

C. employees now bear the burden of proof in discrimination cases.

D. compensation awards for discrimination claims have increased.

As companies are forced to close plants and lay off employees because of restructuring,

technology changes, or financial crisis, cases dealing with the illegal discharge of employees

have increased.

AACSB: Reflective Thinking Skills, Ethical/Legal Responsibilities BT: Comprehension

Difficulty: Medium

Learning Objective: 1-3 Topic: Legal and Ethical Issues

70. (p. 41) Which of the following is one of the four ethical principles of a successful company?

A. Managers assume all responsibility for the actions of the company.

B. It has a strong profit orientation.

C. Customer, client, and vendor relationships emphasize mutual benefits.

D. It does not produce products that can be used for violent purposes.

Ethical, successful companies can be characterized by four principles. First, in their

relationships with customers, vendors, and clients, these companies emphasize mutual benefits.

Second, employees assume responsibility for the actions of the company. Third, such

companies have a sense of purpose or vision the employees value and use in their day-to-day

work. Finally, they emphasize fairness; that is, another person's interests count as much as their

own.

AACSB: Ethical and Legal Understanding and Reasoning Abilities, Business Knowledge and Analytic Skills

BT: Knowledge



1-52

71. (p. 42) Which legislation act sets new strict rules for business especially as regards accounting

practices?

A. Human Rights Act of 1994

B. Reverse Discrimination Act of 1990

C. Sarbanes-Oxley Act of 2002

D. Corruption and Practices Act of 2000

The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy fines

and prison terms for noncompliance.

AACSB: Business Knowledge and Analytic Skills, Ethical/Legal Responsibilities



72. (p. 43) Which of the following is NOT a standard that human resource managers must satisfy

for practices to be ethical?

A. Managers must treat employees as family.

B. Human resource practices must result in the greatest good for the largest number of people.

C. Employment practices must respect basic human rights of privacy, due process, and free

speech.

D. Managers must treat employees and customers equitably and fairly.

HRM practices must result in the greatest good for the largest number of people, must respect

basic human rights of privacy, due process, and free speech and they must treat employees and

customers equitably and fairly.

AACSB: Ethical and Legal Understanding and Reasoning Abilities, Business Knowledge and Analytic Skills BT: Knowledge

Difficulty: Medium


1-53

73. (p. 45) Exporting jobs from developed to less developed countries is known as:

A. insourcing.

B. offshoring.

C. importing.

D. onshoring.

The main reason for offshoring is labor costs.




Topic: Offshoring

74. (p. 47) Exporting jobs to rural parts of the United States is referred to as:

A. insourcing.

B. offshoring.

C. importing.

D. onshoring

Onshoring may be most attractive to companies that have brands tied to the United States

because they fear the political fallout related to offshoring.




Topic: Offshoring

1-54

75. (p. 48) Which of the following statements about technology is FALSE?

A. The Internet allows employees to locate and gather resources, including software, reports,

photos, and videos.

B. Technology does not allow older workers to postpone retirement.

C. The Internet gives employees instant access to experts whom they can communicate with.

D. Technology has made equipment easier to operate, helping companies cope with skill

shortages.

Technology has also made equipment easier to operate, helping companies cope with skill

shortages and allowing older workers to postpone retirement.

AACSB: Reflective Thinking Skills, Information Technologies


Learning Objective: 1-5 Topic: How and Where People Work

76. (p. 49) Which of the following is NOT typically true of work teams?

A. They are used to increase employee responsibility and control.

B. They use cross-training to give employees knowledge on a wide range of skills.

C. They frequently select new team members and plan work schedules.

D. They assume all of the activities reserved for managers such as controlling, planning, and

coordinating activities.

Work teams may assume many of the activities usually reserved for managers, including

selecting new team members, scheduling work, and coordinating activities with customers and

other units in the company.

AACSB: Reflective Thinking Skills, Group/Individual Dynamics in Organizations BT: Comprehension

Difficulty: Medium

Learning Objective: 1-6 Topic: High-Performance Work Systems

1-55

77. (p. 49) Which of the following is NOT recommended for supporting work teams?

A. Reducing flexibility and interaction between employees to maintain high productivity.

B. Giving employees formal performance feedback.

C. Linking compensation and rewards with performance.

D. Allowing employees to participate in planning changes in equipment, layout, and work

methods.

Supporting work teams involves encouraging flexibility and interaction between employees to

maintain high productivity.

AACSB: Reflective Thinking Skills, Group/Individual Dynamics in Organizations



78. (p. 49) All of the following statements about cross training are true EXCEPT:

A. it provides teams' maximum flexibility.

B. it helps in measuring employees' performance.

C. it trains employees in a wide range of skills.

D. employees can fill any of the roles needed to be performed on the team.

The performance appraisal process measures employee performance according to departmental

objectives that support the scorecard.




1-56

79. (p. 50) Company X has offices around the globe. Its teams are separated by time, geographic

distance, culture and/or organizational boundaries, and almost rely exclusively on technology

for interaction between team members. Its teams are:

A. virtual teams.

B. geographically-concentrated teams.

C. lean teams.

D. teleworker teams.

Virtual teams refer to teams that are separated by time, geographic distance, culture, and/or

organizational boundaries and that rely almost exclusively on technology (e-mail, Internet,

videoconferencing) to interact and complete their projects.

AACSB: Reflective Thinking Skills BT: Application

Difficulty: Medium


80. (p. 50-51) Adaptive organizational structures emphasize:

A. efficiency, decision making by managers, and the flow of information from top to bottom of

the organization.

B. a core set of values, and elimination of boundaries between managers, employees, and

organizational functions.

C. clear boundaries between managers, employees, customers, vendors, and the functional

areas, and a constant state of learning.

D. internal linking, external linking, diversification, and a core set of values.

In the adaptive organizational structure, employees are in a constant state of learning and

performance improvement. Employees are free to move wherever they are needed in the

company.


BT: Comprehension

Difficulty: Hard Learning Objective: 1-6


1-57

81. (p. 51) Which of the following is FALSE about high-involvement, adaptive organizational

structures?

A. Employees are in a constant state of learning and performance improvement.

B. Employees are free to move wherever they are needed in a company.

C. Line employees are trained to specialize in one job in order to maximize efficiency.

D. Previously established boundaries between managers, employees, customers, and vendors

are abandoned.

Line employees are trained in multiple jobs, communicate directly with suppliers and

customers, and interact frequently with engineers, quality experts, and employees from other

functions.


Difficulty: Hard


82. (p. 51) Employees in geographically dispersed locations can work together in virtual teams

using video, e-mail, and the Internet. This e-HRM implication refers to which aspect of HR?

A. Recruiting

B. Analysis and design of work

C. Selection

D. Compensation and benefits

Human Resource Management Practices include Analysis and design of work, HR planning,

Recruiting, Selection, Training and development, Compensation, Performance management

and Employee relations.




1-58

83. (p. 52) From the manager's perspective, an HRIS can be used to perform primarily all but one

of the following. Name the exception.

A. Support strategic decision making

B. Avoid litigation

C. Evaluate programs and policies

D. Motivate employees

A systematic planned strategic effort by a company to attract, retain, develop, and motivate

highly skilled employees and managers is called talent management.


BT: Comprehension Difficulty: Easy


84. (p. 54) A(n) _____ is a series of indicators or metrics that managers and employees have

access to on the company intranet or human resource information system.

A. HR dashboard

B. balanced scorecard

C. web portal

D. Intranet

HR dashboard allows company to identify divisions that are developing new talent.




1-59

85. (p. 54) All of the following HR practices support high-performance work systems EXCEPT:

A. employees participate in selection process.

B. jobs are designed to use a variety of skills.

C. employee rewards are related to company performance.

D. individuals tend to work separately.

One of the most popular methods for increasing employee responsibility and control is work

teams.





86. (p. 56) Which one of the following is NOT associated with managing the human resource

environment?

A. Linking HRM practices to the company's business objectives.

B. Identifying human resource requirements through human resource planning, recruitment,

and selection.

C. Ensuring that HRM practices comply with federal, state, and local laws.

D. Designing work that motivates and satisfies the employee as well as maximizes customer

service, quality, and productivity.

Acquiring and Preparing Human Resources deals with identifying human resource

requirements through human resource planning, recruitment, and selection.


Difficulty: Medium

Learning Objective: 1-7 Topic: Managing the Human Resource Environment

1-60

87. (p. 56) Economic value is traditionally associated with all of the following EXCEPT:

A. equipment.

B. technology.

C. facilities.

D. HRM practices.

HRM practices have not traditionally been seen as providing economic value to the company.




Topic: Meeting Competitive Challenges Through HRM Practices

88. (p. 57) A company's human resource acquisition requirements are influenced by all of the

following EXCEPT:

A. terminations.

B. customer demands for products and services.

C. motivation and satisfaction of employees.

D. promotions.

Creating a positive environment for human resources involves designing work that motivates

and satisfies the employee as well as maximizes customer service, quality, and productivity.




Topic: Acquiring and Preparing Human Resources

1-61

89. (p. 58) Managing the assessment and development of human resources involves all of the

following EXCEPT:

A. measuring employees' performance.

B. creating an employment relationship and work environment that benefits both the company

and the employee.

C. recruiting employees and placing them in jobs that best use their skills.

D. identifying employees' work interests, goals, and values, and other career issues.

Acquiring and Preparing Human Resources involves recruiting employees and placing them in

jobs that best use their skills.



Learning Objective: 1-7 Topic: Assessment and Development of Human Resources

90. (p. 58) Besides interesting work, _____ are the most important incentives that companies can

offer to its employees.

A. training for future work roles

B. beneficial work environments

C. support for nonwork activities

D. pay and benefits

Also, pay and benefits are used to reward employees' membership in the company and attract

new employees.


Difficulty: Medium

Learning Objective: 1-7 Topic: Compensating Human Resources

Essay Questions

1-62

91. (p. 8) Name and discuss the competencies that HR professionals need.

1. Credible activist: delivers results with integrity, shares information, builds trusting

relationships, and influences others, providing candid observation, taking appropriate risks.

2. Cultural steward: facilitates change, develops and values the culture, and helps employees

navigate the culture.

3. Talent manager/organizational designer: develops talent, designs reward systems, and shapes

the organization.

4. Strategic architect: recognizes business trends and their impact on the business,

evidence-based HR, and develops people strategies that contribute to the business strategy.

5. Business ally: understands how the business makes money and the language of the business.

6. Operational executor: implements workplace policies, advances HR technology, and

administers day-to-day work of managing people.

AACSB: Reflective Thinking Skills BT: Analysis



92. (p. 9-10) How has the role of HRM changed in recent years? Discuss three trends that are

changing the HRM function. Why have these roles changed?

The amount of time that the HRM function devotes to administrative tasks is decreasing, and its

roles as a strategic business partner, change agent, and employee advocate are increasing. One

trend seen today is that the role of HRM in administration is decreasing as technology is used

for many administrative purposes, such as managing employee records and allowing employees

to get information about and enroll in training, benefits, and other programs. Another trend is

that outsourcing of the administrative role is occurring quite frequently. Additionally, HRM is

becoming more proactive and less reactive. Roles such as practice development and strategic

business partnering have increased.

HRM roles have changed because managers see HRM as the most important lever for

companies to gain competitive advantage over both domestic and foreign competitors.


BT: Analysis Difficulty: Medium



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93. (p. 21) What is meant by empowering and what type of training must be conducted to make it

effective?

Empowering means giving employees responsibility and authority to make decisions regarding

all aspects of product development or customer service. Employees are then held accountable

for products and services; in return, they share the resulting rewards and losses of the results.

For empowerment to succeed, managers must be trained to link employees to resources within

and outside the company, help employees interact with their fellow employees and managers

throughout the company, and ensure that employees are updated on important issues and

cooperate with each other. Employees must also be trained to use the Web, e-mail, and other

tools for communicating, collecting, and sharing information.

AACSB: Reflective Thinking Skills, Group/Individual Dynamics in Organizations BT: Analysis

Difficulty: Medium


94. (p. 27) Discuss the balanced scorecard approach of measuring stakeholder performance.

The balanced scorecard:

1. Is based on the degree to which stakeholder needs are satisfied.

2. Brings together most measures needed to be competitive.

3. Gives employees a framework to link their goals to organizational goals.

4. Is used to link HR activities to business strategy.

5. Evaluates how much HR is helping to meet strategic objectives.


Difficulty: Medium


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95. (p. 31) Discuss the Malcolm Baldrige National Quality Award including its purpose, the

application process, the criteria used for evaluation, and the advantages associated with the

award.

Established to promote quality awareness:

1. Company fills out detailed application with basic information about the company location,

markets and products, as well as in-depth presentation of how the company addresses specific

criteria related to quality improvement.

2. Board of examiners evaluates the application. All applicants receive written feedback

summarizing company strengths and needs for improvements. Three awards may be given

annually in each of five categories: manufacturing, service, small businesses, education, and

health care.

Criteria used:

1. Leadership—120 pts

2. Customer and market focus—85 pts

3. Workforce focus—85 pts

4. Measurement, analysis, and knowledge management—90 pts

5. Strategic planning—85 pts

6. Process management—85 pts

7. Business results—450 pts

Overall research suggests the award has had a positive impact on overall company

performance, including:

1. Better employee relations.

2. Increased productivity.

3. Customer satisfaction.

4. Market share.


BT: Analysis



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96. (p. 38-39) What sorts of activities does managing cultural diversity involve? Discuss four of

the six ways (arguments) that managing cultural diversity can provide a competitive

advantage.

Activities include:

1. Creating an organizational culture that values diversity

2. Ensuring that HRM systems are bias-free

3. Facilitating higher career involvement of women

4. Promoting knowledge and acceptance of cultural differences

5. Ensuring involvement in education both within and outside the company

6. Dealing with employees' resistance to diversity

Competitive advantages associated with diversity

1. Cost argument—As organizations become more diverse, the cost of a poor job in integrating

workers will increase. Those who handle this well will thus create cost advantages over those

who do not.

2. Employee attraction and retention argument—Companies will develop reputations as good

companies for women and minorities to work for and therefore they will attract the best from

these groups of individuals. This will be especially important as the labor pool shrinks and

changes composition.

3. Marketing argument—The insight and cultural sensitivity of employees with roots in other

countries or different ethnic groups will help both in multinational organizations as well as

when marketing to subpopulations domestically.

4. Creativity argument—Creativity should be improved by diversity of perspectives and less

emphasis on conformity to norms of the past.

5. Problem-solving argument—Wider range of perspectives and more thorough critical

analysis of issues will lead to more heterogeneity in decisions and problem-solving groups.

6. System flexibility argument—System will become less determinate, less standardized, and

more fluid, which should create greater flexibility to react to environmental changes.





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97. (p. 40) What five main areas of the legal environment have influenced human resource

management over the past 25 years?

The five main areas of the legal environment that have influenced HRM over the past 25 years

are equal employment opportunity legislation, employee safety and health, employee pay and

benefits, employee privacy, and job security.

AACSB: Reflective Thinking Skills, Ethical/Legal Responsibilities

BT: Knowledge

Difficulty: Medium



98. (p. 51) Define electronic human resource management (e-HRM) and indicate its implications

for five HRM practices.

Electronic human resource management (e-HRM) refers to the processing and transmission of

digitized information used in HRM, including text, sound, and visual images, from one

computer or electronic device to another.

Implications include:

1. Analysis and design of work—Employees in geographically dispersed locations can work

together in virtual teams using video, e-mail, and the Internet.

2. Recruiting—Post job openings online. Candidates can apply for jobs online.

3. Training—Online training can bring training to employees anywhere, anytime.

4. Selection—Online simulations, including tests, videos, and e-mails that measure job

candidate's abilities to deal with real-life business challenges.

5. Compensation and benefits—Employee can review salary and bonus information and seek

information about and enroll in benefit plans.




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99. (p. 49-50) Discuss how HR practices support the use of new technology and work designs.

Teams are used to perform work. Employees participate in the selection process. Employees

receive formal performance feedback and are actively involved in the

performance-improvement process. Ongoing training is emphasized and rewarded. Employees'

rewards and compensation relates to the company's financial performance. Equipment and

work processes are structured to encourage maximum flexibility and interaction among

employees. Employees participate in planning changes in equipment, layout, and work

methods. Work design allows employees to use a variety of skills. Employees understand how

their jobs contribute to the finished product or service.


BT: Analysis Difficulty: Hard


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100. (p. 56-58) Outline the four dimensions of human resource management practices, including

specific examples of human resource practices within each area.

1. Managing the human resource environment. Managing internal and external environmental

factors allow employees to make the greatest possible contribution to company productivity

and competitiveness. Examples include:

a) Ensuring that HRM practices are in legal compliance.

b) Designing work that motivates employees and that maximizes customer service, quality, and

productivity.

c) Linking HRM practices to the company's business objectives.

2. Acquiring and preparing human resources. Number and type of employees influenced by

customer needs, terminations, promotions, and retirements. Need to predict the number and

types of employees needed and identify current or potential employees to fill those needs.

Examples include:

a) Human resource planning.

b) Recruiting employees.

c) Selecting employees.

d) Training employees.

3. Assessment and development of human resources. Managers must ensure employees have

the necessary skills to perform current and future jobs. Work may be redesigned to be done by

teams. Companies need to create a supportive work environment. Examples include:

a) Measuring employee performance.

b) Preparing employees for future work roles.

c) Identifying employees' work interests, goals, and values.

4. Compensating human resources. Pay and benefits are important incentives to offer

employees in exchange for contributing to productivity, quality, and customer service. Also

used to reward employees' membership and attract new employees. Examples include:

a) Creating pay systems.

b) Rewarding employee contributions.

c) Providing employees with benefits.



Learning Objective: 1-7 Topic: Meeting Competitive Challenges Through HRM Practices

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