Chapter 1—Changing Nature of Human Resource Management

MULTIPLE CHOICE 1. Human resource management is a. supervising, monitoring, controlling, and disciplining employees in order to achieve organizational goals. b. the designing of organizational systems to ensure that human talent is used effectively to accomplish organizational goals. c. the use and coordination of human capital to ensure the profitability and survival of the organization. d. the design of the organization and its systems in order to achieve the goals of the organization. ANS: B OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: HRM

2. HR metrics must be linked to a. statistical analyses. b. industry outcomes. c. business performance. d. employee satisfaction. ANS: C OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: Creation of Value

3. All of the following are types of organizational assets EXCEPT a. social. b. human. c. financial. d. intangible. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: Creation of Value

4. Which of the following statements is TRUE? a. Because of the higher quality of Western European education, the return on human capital for European firms is higher than the return on human capital for U.S. firms. b. Companies that spend more than 60% of total operating costs on employee costs have poor returns on investment in their human capital. c. U.S. firms spend nearly twice as much as European firms on employee salaries and benefits, but U.S. firms experience higher levels of return on investment for their human capital. d. Human capital is the collective value of capabilities, knowledge, skills, life experiences and motivation of an organizational workforce. Being intangible, it is difficult to measure the effect of human capital on shareholder value. ANS: C OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 5 LOC: Creation of Value

5. In a university, the assets that allow all the other assets of the school to be used to offer educational services to its students are the university’s a. financial endowment and income. b. physical plant such as libraries, laboratories and technological learning facilities. c. administrators, professors, and other employees. d. intangible assets such as its unique operating processes and specialized research capabilities. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 5 LOC: Creation of Value

6. The Chief Financial Officer of McGill Tubing wants to learn the contribution of McGill’s workforce toward creating value for shareholders. An analysis which would provide this information is the calculation of a. the human capital revenue stream. b. marginal revenue generated per employee. c. return on human capital investment. d. profit per employee. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 5 LOC: Creation of Value

7. Through ____ HR management provides the organization with a sufficient supply of qualified individuals to fill the jobs in the organization. a. staffing b. affirmative action c. talent management d. performance management ANS: A OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 5 LOC: HRM

8. Tyrone Toys is intensely focused on reducing labor costs. During the executive committee’s discussion of closing its unionized plant in Ohio and opening a non-union plant in Mississippi, the executive vice president of HR suggests that the committee get legal advice in case Tyrone Toys would be subject to lawsuits by the union. This interaction suggests that a. HR is not a strategic partner in this firm because the EVP of HR is reacting to another committee member’s suggestion, not proactively making his own suggestion. b. HR is not a strategic partner in the firm because any suggestion about closing a plant should properly come from HR, not another executive. c. HR is a strategic partner in the firm because in this firm the EVP of HR is allowed to sit in on important strategic meetings. d. HR is a strategic partner in the firm because the EVP of HR a permanent member of the executive committee. ANS: D OBJ: 3 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 6 LOC: Strategy

9. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusions into his territory by HR managers. Henry feels that his relationships with his employees are strong and supportive, and that HR initiatives generally cause unnecessary trouble and complications.

Henry is subverting this process. d. the environmental factor of the effect of global warming on hurricane patterns. c. a. Career planning ANS: D OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. including him. 7 LOC: HRM . capital contributor ANS: B OBJ: 1 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. b. a. Henry is correct. wage and salary administration c. HR development c. ____ identifies paths and activities for individual employees as they develop within the organization. Henry is probably committing major violations of company policy and wants to keep this secret from HR management. ANS: D OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. because the HR function is a support and staff function and should not intrude on day-to-day management functions. you are deeply involved in rebuilding the company’s strength in the Hurricane Katrina recovery. 6 LOC: Strategy 11. When the human resources function creates a unique capability in a firm that creates high value and differentiates the organization from its competition.a. HR managers have the sole responsibility for the proper implementation of company policy regarding employees. Performance management d. Staffing b. job-skill training b. 7 LOC: HRM 13. core competency c. the legal factor of the enforcement of the Foreign Corrupt Practices Act. c. critical capability d. Henry would be surprised to learn that every manager.S. is an HR manager. diversity assessment and analysis d. b. environmental scanning ANS: A OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 7 | Figure 1-1 LOC: HRM 12. human resources is a/an ____ for the firm. 6 LOC: HRM 10. Talent management includes which of the following activities? a. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. d. As the top HR manager of a medium-sized hospitality business in New Orleans that is heavily dependent on U. and international tourism. the employee and labor relations factor of whether unions are targeting hospitality workers for organization. You need to monitor all of the following factors EXCEPT a. the global factor of the value of the yen and the euro in relation to the dollar. tangible asset b.

shortages of qualified workers c. traditional. the organization’s talent inventory. human capital. potential unionization efforts b. ANS: C OBJ: 1 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 9 LOC: Operations Management . 7 LOC: HRM 15. d. HR professionals must react swiftly to initiatives created by operating managers. 8 LOC: Environmental Influence 16. knowledge. b. Most new jobs in the U. b.14. 8 LOC: HRM 18. HR professionals must implement processes that have been designed by top management and that impact operating managers. particularly health care and technology. b. total human resources. c. c. incentive pay. ANS: C OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. ANS: B OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. HR professionals see the “coarse-grained picture” of organizational strategy while operating managers see the “fine-grained picture” of daily production. Which of the following is NOT a major HR concern of small businesses? a. small private sector businesses. Compensation and benefits managers in almost all organizations face a major and growing concern regarding the cost of a. federal government agencies and the military. large private sector firms in service industries. the organization’s intellectual assets. 8 LOC: HRM 17. equalization of pay between men and women. c. increasing benefits costs ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. b. HR designs processes that the operating managers must help implement. ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. skills. large heavy manufacturing companies. The reason that cooperation between operating managers and HR staff is necessary for HR efforts to succeed is that a. economy are created by a. d. compliance with government regulations d. c. outsourcing. d. benefits.S. life experiences and motivation of an organized workforce is called a. d. The collective value of the capabilities.

She says that she handles most of the clerical duties involved in running the HR department. The firm employs 25 full time employees. b.000 hourly workers. c. whereas the ____ has/have been increasing in importance. 10-11 LOC: HRM 21. Matt plans to bring the company in line with typical HR staffing levels. employee advocate ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. would be less likely to be strategic partners with top management. 10-11 LOC: HRM 22. Matt has recently joined his family’s wholesale landscape nursery business as vice president of operations. 10-11 | Figure 1-3 LOC: HRM 23. strategic. Matt will a.19. operational c. administrative and advocate d. Matt’s father personally handled all HR issues. The move to this technology will most affect the HR department’s ____ role. a. a. c. plus about 20 seasonal employees. operational and administrative c. strategic b. b. In the past. 9 LOC: HRM 20. Woodmere Production Company employees over 2. Charlotte is describing her new HR position to a friend. strategic ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. would be more tightly linked with vendors of HR specialty services. a. The ____ role of HR management has been declining in emphasis. d. secretarial ANS: C OBJ: 3 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. current HR departments compared to departments of fifteen years ago a. administrative d. employee benefit enrollments and other related functions. add a clerical employee to help with HR tasks. operational and advocate b. operational. advocate. would have more clerks than professional staff. Considering the trends in HR. hire a full-time HR manager and a payroll clerk. hire a full-time HR professional. strategic b. administrative d. operational and employee advocate c. administrative. The HR department is debating the introduction of web-based technology to handle employment applications. Charlotte’s job would fall into the ____ HR role. d. would tend to have larger staffs. including such tasks as maintaining employee files and submitting governmental reports. outsource the HR function. . ANS: B OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p.

401k administration b. your key sellingpoint to top management will be a. safety programs c. Which of the following would NOT be identified as a typical HR operational activity? a. you are presenting a proposal to Woodmere’s top management for outsourcing many of your department’s administrative HR functions to vendors. compensation d. employee advocacy b. ANS: A OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. government compliance b. administrative ANS: B OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p.ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. But. improvement in morale of HR staff. As the vice-president of HR for Woodmere Production. employee advocate d. the prestige of retaining a world-class vendor. risk management c. the employees d. the reduction in labor costs in the HR department. 11-12 LOC: Creation of Value 25. a. labor negotiations d. You argue that HR vendors have greater expertise than your in-house staff and that outsourcing will allow you to spend more time on the strategic aspects of HR. partnering with top executives . Inc. Recruiting and selecting employees for current openings are typical ____ HR activities. operational c. b. Which of the following HR activities is MOST likely to be outsourced successfully? a. a.. 11 LOC: Information Technologies 24. 12 LOC: HRM 28. performance management ANS: A OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. c. Ensuring fair and equitable treatment for employees regardless of their personal background or circumstances is associated with the ____ role of HR. administrative ANS: C OBJ: 3 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. operational c. 12 LOC: HRM 26. the ability to have closer contact with HR’s clients. strategic b. 12 LOC: HRM 27. strategic d.

select a vendor for outsourcing benefits administration. advocate c. 12 LOC: HRM 29. You have been unable to lure any scientist with the needed qualifications to your firm. implementation-oriented b. The roles played by HR management in the firm are being affected by all of the following EXCEPT a. d. Which problem are you most likely to encounter? a. strategic b. 14 LOC: Environmental Influence 33. work culture. you have found a Peruvian scientist with impeccable credentials who is interested in moving back to the U. b. c. Tight immigration quotas for high skilled workers. A key difference between operational HR management and strategic HR management is that operational HR management is ____ and strategic HR management is ____. The inability of the scientist to adapt to the U. ANS: C OBJ: 3 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. d. cost reduction pressures. 14 LOC: Environmental Influence 31. After intensive searching. Top executives of an organization truly view the top HR executive as contributing to the strategic success of the firm when they request the HR manager to a. planning-oriented.S. cost-focused . improve the implementation of performance appraisals for supervisors. Your firm needs a scientist with a highly-specialized background. b. administrative ANS: B OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. organizational restructuring. ANS: A OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p.ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. c. streamline the employee selection process. operational d. a. challenges of managing a more highly-educated workforce.S. reactive c. a. 12 LOC: HRM 30. c. The difficulty in meeting the salary expectations of the Peruvian scientist. b. You are the recruiter for an ophthalmologic products company. d. Your current scientific employees fearing that their work will be outsourced overseas. evaluate potential merger candidates for organizational compatibility. 14 LOC: Strategy 32. globalization of business. The HR management role that is most influential in reducing the number of employee lawsuits against the company is the ____ role. proactive. ANS: B OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. profit-focused. even though you have offered a very high salary.

d. Work of this level of professionalism cannot be outsourced to a foreign firm. Relax. 15 LOC: Environmental Influence 36. manufacturing c. c. The U. d. Consider your options. This is an example of a.S. globalization of business ANS: D OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. outsourcing. a. d. Only occupations that are dying are considered for outsourcing. organization-focused ANS: D OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. occupational shifting. economy can be characterized as a/an ____ economy. workforce demographics and diversity d. A large Japanese semiconductor manufacturer is building a manufacturing plant in central Texas. Relax. knowledge-based ANS: A OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. economic and technological changes c. Consider your options. 15 LOC: Environmental Influence 37. employee-focused. This is an example of a business opportunity generated by which one of the following HR management challenges? a.S. in-shoring. A rumor has been circulating at the largest law firm in the city that the partners are considering outsourcing much of the work of the paralegals in the firm to a company in India. what would be your most appropriate attitude or action? a. industrial d. This will increase the number of jobs in this central Texas area and make it more difficult for local firms to fill open positions. The firm can generate huge labor cost savings by outsourcing your job. c. b. ANS: D OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. Between now and 2010 the largest number of new jobs in the U. If you were a paralegal at this firm. will be in . Eclipse Executive Services offers ransom insurance policies for companies up to $10 million per kidnapping. 16 LOC: Environmental Influence 38. 15 | Figure 1-4 LOC: HRM 34. ANS: A OBJ: 4 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p.S. legal system cannot be outsourced. ethical challenges b. repatriation of jobs. service b. b. 15 LOC: Environmental Influence 35. Work that requires intimate knowledge of the U.

more people classify themselves as multi-racial. d. the public sector. U. there is less cultural and ethnic diversity in the U. c. A major trend regarding diversity is that a. since the baby boomers are moving out of the workforce. b. Which of the following is TRUE about the U. 17 LOC: Environmental Influence 42. because of the melting pot effect.S. food-service. c. c. ANS: D OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. b. d. 16 LOC: Environmental Influence 41. part-timers and leased employees are collectively referred to as a.S. Temporary workers. ANS: D OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 17 LOC: Environmental Influence . d.S. ANS: C OBJ: 4 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. independent contractors. full-time-equivalent employees. schools are graduating more engineers than can be used in the economy. contingent workers.S. out of political and philosophical convictions many people refuse to classify themselves as any racial or ethnic group. information technology. d. directly-competitive nations in math and science. Wages are low in the U. workers are inadequately educated. health care. manufacturing. the issue of aging workers will be a non-issue in 10 years. extra-organizational employees. c.S. 16 | Figure 1-5 LOC: Environmental Influence 40.S. b. d. ANS: A OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Diversity REF: p. b. c. U. between now and 2010 most of the fastest-growing occupations will be in a.a. professional occupations. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. human resources. b. U. healthcare. Other than information technology occupations. virtual employees. manufacturing sector because of the excess number of people with manufacturing skills seeking jobs. as time passes. 16 | Figure 1-5 LOC: Environmental Influence ANS: B OBJ: 4 TOP: Conceptual 39. students outperform students in other. educational system? a.

Claude’s main concern in this case is probably a. retention programs based on work/family concerns. Despite the fact that Agatha has a full-time nanny. increasing the number of hours worked per employee. better work-life balance for employees in professional occupations. getting Agatha to refocus on her career through motivational training. has twin boys under age 2. executive perks. ANS: A OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. the need for diversity training is decreasing due to the psychological maturity of the older workforce.43. it is obvious that she is overwhelmed by the demands of her work and her personal life. Agatha. how to persuade Agatha to resign without violating the Pregnancy Discrimination Act. 18-19 LOC: Environmental Influence 46. to stabilize the core workforce c. anti-unionization programs. b.” d. Which of the following is NOT a major reason why businesses use contingent workers? a. b. One of his top salespersons. . to reduce compensation and benefit costs d. Variation of ages in the workplace is not considered “diversity” in the same sense that variation by race and gender is considered “diversity. the average age of the workforce is younger. Claude is the HR manager for a pharmaceuticals firm. to potentially avoid legal liability for workers b. d. c. ANS: A OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. to accommodate employee desire for flexible work schedules. the average age of the workforce is older. 18 LOC: HRM 47. job-sharing. c. reduction of stress for workers. As the workforce ages. retaining Agatha as an employee. programs mandated by the Equal Employment Opportunity Act. The improvement in communication technology has resulted in a. c. Because of the many early retirement programs instituted in the last decade. child-care referral services. Flexible hours. ANS: B OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. enabling management of virtual employees. Which of the following statements is TRUE? a. Despite the many layoffs occurring in the last decade. d. c. b. ANS: D OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. and flexible leave programs are all examples of a. d. 17 LOC: Environmental Influence 45. b. whether Agatha will file an FMLA lawsuit. 17 LOC: Environmental Influence 44.

19 LOC: Strategy 49. c. Wal-Mart’s competitors have had to follow the “cost-less” strategy. b. An integrated system providing information used in HR decision making is a/an a. d.S. intense domestic competition. merging with other organizations d. outplacing workers b.ANS: C OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. your CEO has asked you to predict the impact on the employees of a 20 percent layoff of hourly workers. Wal-Mart’s single-minded focus on lowest prices has had the all the following HR ramifications EXCEPT a. c. potential loss of employee loyalty. As HR manager of a mid-sized auto parts manufacturing plant. Wal-Mart competitors have moved to using virtual employees. increased turnover of layoff survivors. manufacturing sector. 18 LOC: HRM 48. ANS: C OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 19 LOC: Individual Dynamics 52. ANS: D OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. c. productivity surge by survivors.S. human resource information system d. the need for U. You write the CEO a memo including all of the following predictions EXCEPT a. ANS: B OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. decreasing the span of supervision ANS: D OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. increased workload on survivors. d. rightsizing. Wal-Mart vendors have had to cut jobs and close factories. firms to increase in size to compete with international cartels. and mergers and acquisitions has been a. The main pressure behind restructuring. 19 LOC: HRM 50. Which of the following activities is NOT usually associated with organizational "rightsizing"? a. b. 19 LOC: Environmental Influence 51. b. obsolescence of plant and equipment in the U. ANS: D PTS: 1 DIF: Easy REF: p. human resource administrative system b. the drive to reduce costs. d. closing facilities c. human resource management system. human resource operational system c. 19-20 . Wal-Mart vendors have had to outsource their manufacturing processes to overseas companies.

b. ANS: C OBJ: 5 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. 20 LOC: Information Technologies 55. allow HR departments to retain the HRMS function in-house rather than outsourcing it to vendors. benefits enrollment b. internal job posting c. collaborative HR. legal b. ANS: B OBJ: 5 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. b. d. the major reason for compiling data in HR management systems is to a. b. 20 LOC: Information Technologies 56. performance improvement counseling ANS: D OBJ: 5 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Technology REF: p. facilitate information-based HR decision making. administrative d. professional HR. ANS: A OBJ: 5 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Technology REF: p. c. 20 . collaboration. When HR professionals from different organizations work together to solve shared business problems they are engaging in a. 20 LOC: Information Technologies 54. 20 LOC: Group Dynamics 57. In addition to administrative efficiency. cronyism. a. An organization’s initial use of an HRMS can be characterized as making HR ____ functions more efficient. Eric belongs to an informal group of HR compensation executives from various industries who share information and programs through a wiki. collusion. develop complete records about each employee. collusive HR. operational HR. c. c. d. Eric and his colleagues are engaging in a. d. Which of the following HR management practices has NOT become web-based? a. strengthen the organization’s HRMS in comparison to its competitors’ HRMS functions. competition.OBJ: 5 TOP: Definitional NAT: AACSB Technology LOC: Information Technologies 53. strategic c. advocacy ANS: C PTS: 1 DIF: Challenging REF: p. employee training d.

When allowing employee self-service options whereby employees can enter the organization’s HR database and change their personnel records.S. enroll in benefit plans. a legal gift. Ernest prides himself on making decisions based on his “gut” and his intuition honed over his career. a compelling reason for an organization to maintain high ethical standards is a. ANS: D OBJ: 5 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Technology REF: p. a bribe. ANS: C OBJ: 5 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. b. firms from engaging in corrupt practices in foreign countries. 22 LOC: Ethical Responsibilities 62. the ability to succeed in bids for governmental contracts. 21 LOC: Ethical Responsibilities 61. d. 20 LOC: Information Technologies 59. foreign firms from engaging in corrupt practices in the U. Ernest has become a prized partner with the top executives of the Legendary corporation. Which of the following statements is most likely to be TRUE? a. a benefit. and apply for posted jobs. the ability to attract and retain employees. Ernest. From an HR perspective. b. The Foreign Corrupt Practices Act (FCPA) prohibits a. d. d. c. c. In plain language an “expediting charge” is really a.S. Ernest will be easily impressed and influenced by strategic arguments based on analysis of extensive HR data. a courtesy. monitoring excessive employee use of the system. overcoming internal HR management resistance to technology. has been on the HR side of the hotel/motel industry for over 30 years. b. ANS: B OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. c. Legendary’s top executives will press Ernest to support his intuitive arguments with hard data. Ernest would appreciate the efficiency aspect of HRMS more than the effectiveness aspect of HRMS. a critical concern is a. maintaining security of the system. d. ANS: B OBJ: 6 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. Legendary possesses a “state-of-the-art” HRMS system. higher salaries for HR managers. the vice president of HR for the Legendary motel chain. training non-computer literate employees to use the system.OBJ: 5 TOP: Conceptual NAT: AACSB Technology LOC: Information Technologies 58. 21 LOC: Information Technologies 60. . the reputation of the organization’s HR department in the profession. U. c. and his advice is valued by the executives. b. b.

a hotline for confidential calls on ethical problems. In order to receive a construction permit from the local government. 23 LOC: Ethical Responsibilities 65. The HR department is largely responsible for the unethical behaviors of employees in the organization. b.S. a medical clinic. As Director of HR. b. This is a. c.S. c. free housing for all workers and to provide SUVs for the use of local officials. You plan to develop a written code of ethics. Which of the following statements is TRUE? a. a clear example of a violation of the Foreign Corrupt Practices Act. training for all organizational members. d. ensuring that the organization’s code of ethics is not more restrictive than the relevant laws.S. c. What critical element is missing from your plan? a. even though it is not legal in the U. 23 LOC: Ethical Responsibilities 66. an example of an ethical dilemma in deciding whether this action would be bribery or a benevolent act by the U. ANS: C OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. d. d.c. 22 LOC: Legal Responsibilities 63. a discipline system for offenders against the code of ethics. an instance of the corrupting influence of U. organization.S.S. ANS: A OBJ: 6 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. HR management must focus on clearly illegal behaviors within the firm and leave ethics up to the conscience of each individual manager. organizations on developing countries. c. means for employees to blow the whistle on organizational wrongdoing to governmental agencies. . b. you are designing an ethics program for your organization. d. A not-for-profit scientific organization wishes to build a fisheries research station in a remote part of a developing nation. HR management is the voice of organizational ethics. annual ethics training. The HR function in the organization is largely insulated from unethical behaviors. an acceptable practice because it is legal in this nation. ANS: B OBJ: 6 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. and means for organizational members to obtain advice on ethical situations. U. U. All of the following are aspects of UPS’s corporate integrity program EXCEPT a. ANS: A OBJ: 6 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. firms from engaging in practices which are corrupt under the laws of the countries in which they are operating. a detailed code-of-conduct manual. firms from doing business with foreign firms which engage in corrupt practices. systems for confidential reporting of misconduct. b. d. the scientific organization had to agree to build an elementary school. a zero-tolerance policy regarding ethical lapses. 22 LOC: Ethical Responsibilities 64.

ANS: A OBJ: 6 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. Does this behavior meet professional standards? ANS: A OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. 24 LOC: Ethical Responsibilities 69. ANS: A OBJ: 6 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. ANS: D OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. a person must answer all the following questions EXCEPT a. The position of vice-president of HR is open in a large paper-products manufacturing company. whether the organization has a code of ethics. d. HR has to check time. 25 . 24 LOC: Ethical Responsibilities 70. that the candidate be a highly detail-oriented person. The Sarbanes-Oxley Act has had all of the following effects on HR EXCEPT a. b. what is required by law. 25 LOC: Legal Responsibilities 71. professional codes of ethics. in order to decide whether certain behavior is ethical or not. c. b. the relevant laws and legal guidelines applying to the organization and its industry. d. HR exempt-level professionals must have professional certification. that the candidate have personal and professional credibility. Does this behavior conform to mainstream political standards? b. the organization’s culture. ANS: B PTS: 1 DIF: Moderate REF: p. In organizations. both from the internal HR function at the firm. All of the following competencies are highly desirable EXCEPT a. 24 LOC: Ethical Responsibilities 68. and government codes? c. religious values. regulations. c. standard practices and procedures. HR has had to staff the compliance verification effort involved with the act. Does this behavior meet all applicable laws. c. what ought to be done. c. that the candidate understand the long-term implications of HR issues. HR vendors must prove that they are in compliance with the act. d. that the candidate understands the paper-products business in all aspects. Does this behavior meet organizational standards? d. ANS: D OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. Whether employees and managers of an organization behave ethically is fundamentally a function of a. b. Two individuals are being considered. and payroll more closely. b. Ethics deals with a. 23 LOC: Ethical Responsibilities 67. The selection committee wants the new vice-president to be a strategic contributor to the firm. attendance. d.

technologist. unit manager. EEO compliance. b. specialist. b. specialist. Human Resource Certification Institute b. ANS: A OBJ: 7 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. ANS: D OBJ: 7 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. benefits. the International Personnel Management Association (IPMA). interventionist. International Personnel Management Association c. Emil is the assistant HR manager at a commercial construction company. American Society for Training and Development ANS: A OBJ: 7 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. the Society for Human Resource Management (SHRM). b. d. labor/management relations. ANS: A OBJ: 7 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. She is the lead negotiator for contracts between the city government and the police and firefighters’ unions. Emil handles almost every aspect of human resources at the company. 26 LOC: HRM 73. from employee questions about benefits to holding exit interviews. World at Work Association d. Pauline is an employee of a large city. d. ANS: C OBJ: 7 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. HR information systems. The ____ sponsors the most well-known certification program for HR generalists. the Human Resource Certification Institute (HRCI). 27 LOC: HRM . generalist. c. c.OBJ: 7 TOP: Application NAT: AACSB Reflective Thinking LOC: Strategy 72. c. Emil is an HR a. 27 LOC: HRM 76. 26 | Figure 1-8 LOC: HRM 74. d. the American Society for Training and Development (ASTD). 27 LOC: HRM 75. d. b. The most common area for HR specialization is a. Pauline is an HR a. The largest professional organization for HR generalists is a. technologist. c. generalist. a.

HR management is exclusively concerned with activities and forces within the firm. You are the director of HR for a medium-sized firm. 28 LOC: HRM 78. creativity. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. OHST.77. The value of human capital is intangible and its contribution to the organization is not measurable. d. b. 5 LOC: Creation of Value 4. You would prefer the individual to be certified in this field. Effective use of a firm’s human capital may explain significant amounts of the difference in market value between one company and another. c. and decision-making that people in organizations contribute. certification is required in order to hold an exempt-level position in HR. d. Consequently. ANS: T OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. ANS: F OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 5 LOC: Creation of Value PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. b. HR professionals value their professional certification because a. 5 LOC: Creation of Value 3. you will check applicant resumés for these initials a. ANS: T OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. GPHR. certification is viewed as the equivalent of a master’s degree in HR. of the credibility certification gives them with peers and senior managers. knowledge. 28 LOC: HRM 2. Few firms bother to calculate the return they receive on human capital investments. ANS: C OBJ: 7 TOP: Conceptual TRUE/FALSE 1. You are looking to hire a benefits specialist. . ANS: B OBJ: 7 TOP: Application PTS: 1 DIF: Easy NAT: AACSB Analytic REF: p. CPT. CEBS c. 5 LOC: Creation of Value 5. Intellectual capital is the thinking. PHR and SPHR certified professionals command higher pay. even though it is of critical importance to the organization’s success.

8 LOC: HRM 8. processing applications. The top management team of an international chemical company is considering outsourcing some of its HR functions. 13 | Figure 1-4 LOC: HRM 12. the vice president of HR was brought in after the decision to acquire was made. and administering wages and salaries. ANS: F OBJ: 3 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. This is an example of HR as a strategic partner. 18 LOC: HRM 11. Typical operational HR functions include legal compliance. From a legal standpoint. you ought to be updating your resumé because you will probably be terminated. ANS: F OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. When EconoPharm acquired a competing chain of discount drug stores. 14 LOC: Strategy . 12 LOC: Strategy 10. all HR activities should be carried out by HR professionals. Human resource management is a technical discipline requiring specialized skills. ANS: F OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. it is critical that line managers not undertake HR management activities. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 11 LOC: HRM 9. Most HR outsourcing is related to the administrative role of HR. ANS: F OBJ: 3 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 6 LOC: HRM 6. in order to make plans for workforce changes. Accordingly.ANS: F OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. As a member of the HR staff who has been involved with top management in strategic discussions about an upcoming acquisition. Operational HR is essentially reactive while strategic HR is essentially proactive. training supervisors. ANS: T OBJ: 3 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 8 LOC: HRM 7.

16 LOC: Environmental Influence 16. ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. benefits. 17 LOC: Legal Responsibilities 17. ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. Joyce is probably correct in her guess. The fastest-growing occupations are related to information technology and health care. This competitor recently completed a major restructuring of the organization. but the most job growth in terms of total number of jobs is in lower-skilled service fields. African-Americans make up the largest proportion of minorities in the overall U. U. educational system does not improve. 17 LOC: Information Technologies 18. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. Although Joyce has no direct information about this competitor. 15 LOC: Environmental Influence 14. employers will be forced to expand international outsourcing of jobs. . ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 18 LOC: Environmental Influence 20..S. discrimination. Contingent workers have less legal protection regarding selection. Joyce has noticed a number of applicants for positions at DeeLish Candies who were laid off from one of its main competitors. workforce.S. Inc. Clark is correct in calling them “my virtual employees. Clark employs eleven international sales representatives who communicate with him entirely by telephone and email. discipline and termination than do regular employees. As a recruiter for DeeLish Candies.” ANS: T OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Technology REF: p. An HR professional who seeks to work in international business must look for a job in a very large firm. ANS: T OBJ: 4 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 16 LOC: Environmental Influence 15.13. Employee problems with balancing work and family have resulted in growing retention problems for firms. If the U. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p.S. 17 LOC: Environmental Influence 19. she surmises that the restructuring was due to cost pressures.

19 LOC: Legal Responsibilities 22. ANS: T OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. When HR departments of firms in the same industry collaborate. 19 LOC: Information Technologies 26. Firms with high ethical standards are more likely to meet long-term strategic goals than firms which behave unethically. 21 LOC: Ethical Responsibilities . Employee self-service in an HRMS means that employees can handle all their interactions with HR electronically without ever needing to interact face-to-face with an HR professional. 19 LOC: Creation of Value 21. ANS: F OBJ: 5 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Technology REF: p. 22 LOC: Information Technologies 25.ANS: T OBJ: 4 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 20 LOC: Ethical Responsibilities 24. 19 LOC: Information Technologies 23. ANS: F OBJ: 5 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Technology REF: p. 21 LOC: Information Technologies 27. Because the core of HR management involves working with people one-on-one. HRMS have not been effective at improving HR work flow in most organizations because of educational limitations of hourly-level employees. the introduction of web-based technology has had little impact on the day-to-day working lives of HR managers. ANS: T OBJ: 5 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. It is illegal under discrimination laws for a firm to be hiring employees for some positions while simultaneously laying off employees from other positions. The initial purpose served by an HRMS in an organization is efficiency: quicker processing of data and activities with fewer HR staff. there is some concern that competitive conflicts may arise. ANS: F OBJ: 4 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Reflective Thinking REF: p. ANS: T OBJ: 5 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Technology REF: p. ANS: F OBJ: 5 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Technology REF: p.

ANS: T OBJ: 7 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 24 LOC: Ethical Responsibilities 33. 22 LOC: Ethical Responsibilities 31. the recruiter would be wise to look for a professional with the OHST and/or the CPT certifications. A bribe to a government official will be exempt from the Foreign Corrupt Practices Act if the HR professional involved records the transaction as a gift. 21 LOC: Ethical Responsibilities 29. ANS: T OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. ANS: F OBJ: 6 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Ethics REF: p. A survey of HR professionals indicated that common ethical misconduct in HR activities included favoritism in hiring and promotion as well as personal bias in performance appraisal and pay increases. ANS: T OBJ: 6 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p. 28 LOC: HRM 34. ANS: F OBJ: 7 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. European businesses are less subject to ethical scandals than are U. An important method for an HR professional to establish credibility internally and externally to the firm is professional certification. 28 LOC: HRM . Because of higher European standards for business conduct. ANS: F OBJ: 6 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Ethics REF: p.S. When hiring a benefits specialist for a large organization. 28 LOC: HRM 35. ANS: F OBJ: 6 TOP: Conceptual PTS: 1 DIF: Challenging NAT: AACSB Ethics REF: p. ethics is primarily concerned with legal compliance to avoid expensive lawsuits and out-of-court settlements. 24 | Figure 1-7 LOC: Ethical Responsibilities 32.28. It is fair to say that at Enron (where there were widespread incidents of corruption) the organizational culture supported unethical behavior. With respect to HR management. An individual wanting a position in international HR would be well-advised to seek GPHR certification. 22 LOC: Ethical Responsibilities 30. ANS: T OBJ: 7 PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. businesses.

S. Efficiencies are created in the rapid execution of activities and the reduction of paperwork. students are falling behind competitive nations in math and science. Describe the major purposes of an HR management system (HRMS) in the organization. HR professionals in this role help devise and implement strategy. workers also puts an extra training burden on U. ANS: An HRMS enhances administrative and operational efficiency and it also improves the effectiveness of the organization. The employee advocate role of HR requires dealing with employee crises. 16-17 OBJ: 4 LOC: Environmental Influence 3. U. there are shortages of workers with needed skills. economy. companies to outsource jobs internationally and to bring skilled workers to the U. Organizational effectiveness is served by providing data for HR planning and managerial decision making. Examples of such involvement include evaluating mergers and acquisitions.S. administering wages and salaries.S. and linking databases of HR vendors and employers. processing applications and filling positions. However. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p.TOP: Conceptual ESSAY 1. The operational and employee advocate role of HR take up about 30% of HR time. PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking TOP: Conceptual REF: p. Collaboration among HR professionals in different organizations is aided by wikis which enable HR professionals to share information and programs. 10-14 LOC: HRM OBJ: 3 TOP: Conceptual 2. These shortages have spurred U. education improve to provide a future workforce with modern skills.S. What are the three major roles of HR management? Which is/are the most affected by technology and outsourcing? Which role is growing in importance? ANS: The administrative role of HR focuses on clerical administration. these workers lack the skills needed to fill the jobs in the current U.S.S. and resolving safety problems. The operational role requires HR professionals to identify and implement needed programs and policies in cooperation with operating managers.S. and health sciences. data access systems.S. and U. This includes legal compliance. Web-based systems include bulletin boards. from overseas. The poor preparation of U. and helping ensure fair and equitable treatment for all employees. and are most easily outsourced to vendors. It involves processing and record keeping activities. What challenges face HR managers with regard to workforce availability and quality? What are potential solutions? ANS: In many parts of the U.S. The administrative activities of HR are easily computerized. HR is increasingly playing a strategic role in organizations. computers. The strategic role of HR focuses on HR as a business partner with top management. . strict quotas on foreign workers impede U.S. It is urgent that U. and compensation and incentive plan changes. training supervisors. while the administrative role is being outsourced and automated. Although there is not a shortage of potential workers. workforce planning. employee self-service systems. Give examples of HRMS uses. schools are not meeting the demand for graduates with degrees in engineering. firms from hiring them in sufficient numbers. employers.

and (4) systems for confidential reporting of ethical misconduct or questionable behavior. as well as avoid lawsuits and regulatory actions. 20-21 OBJ: 5 LOC: Information Technologies 4. (3) means for employees to obtain advice on ethical situations. From a practical perspective. (3) HR delivery. Identify the key competencies needed by HR professionals. what “practical” value does ethical behavior have for an organization? What are the four elements of ethics programs? ANS: Ethics deals with what "ought" to be done. The four elements of ethics programs are: (1) a written code of ethics and standards of conduct. Organizational members look to HR management as the “keeper and the voice” of organizational ethics. justice. drug and alcohol use. and falsification of records. 25-26 LOC: HRM OBJ: 7 TOP: Conceptual . Organizational ethics are driven by organizational culture. not necessarily what “is done. the shared values and beliefs of organizational members. Ethical organizations are viewed more positively by the community. truthfulness. (2) business knowledge. industry. The HR department is often the main resource for ethics policies in the organization. The most common unethical incidents observed by HR managers include: employees lying to supervisors. Beyond the value of ethics for its own sake.PTS: 1 DIF: Moderate NAT: AACSB Technology TOP: Conceptual REF: p. and (5) personal credibility. and social responsibility. PTS: 1 DIF: Moderate NAT: AACSB Ethics TOP: Conceptual REF: p. ethical organizations are more likely to meet long-term strategic and profit goals. (4) HR technology. (2) training on ethical behavior for all organizational members.” Ethical issues revolve around questions of fairness. This allows employers to attract and retain employees. consumers and other employers. PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. ANS: In order to be a strategic partner to top management. Discuss why ethical issues permeate HR management. HR managers need competencies in five basic areas: 1) Strategic contribution. 21-25 OBJ: 6 LOC: Ethical Responsibilities 5.

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