TBChap009, Creating and Maintaining High-Performance Organizations

Chapter 09 Creating and Maintaining High-Performance Organizations
Answer Key
True / False Questions
1. Creating a high-performance work system is similar to traditional management practices
because both treat decision making about technology, organization structure, and human
resources as unrelated.
FALSE
Creating a high-performance work system contrasts with traditional management practices. In

the past, decisions about technology, organizational structure, and human resources were
treated as if they were unrelated. More recently, managers have realized that success depends
on how well all elements work together.
AACSB: Analytical Thinking

Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 09-01 Define high-performance work systems, and identify the elements of such a system.
Level of Difficulty: 1 Easy
Topic: High-Performance Work Systems
9-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
2. An organization's HR department makes most decisions about organizational structure.
FALSE
An organization's top management makes most decisions about structure, for instance, how
many employees report to each supervisor and whether employees are grouped according to
the functions they carry out or the customers they serve.

Blooms: Remember
Topic: Elements of a High-Performance Work System
3. The reward systems of an organization include the performance measures by which employees
are judged and the methods of measuring performance.
TRUE
Reward systems contribute to high performance by encouraging people to strive for objectives
that support the organization's overall goals. Reward systems include the performance
measures by which employees are judged, the methods of measuring performance, and the
incentive pay and other rewards linked to success.

Blooms: Remember
9-2
4. High-performance work systems are characterized by high employee turnover.
FALSE
Outcomes of a high-performance work system include higher productivity and efficiency. A
high-performance work system may have other outcomes, including high product quality, great
customer satisfaction, and low employee turnover.

Blooms: Remember
Learning Objective: 09-02 Summarize the outcomes of a high-performance work system.
Topic: Outcomes of a High-Performance Work System
5. The most popular way to empower employees is to design work so that it can be performed by
individuals.
FALSE
One of the most popular ways to empower employees is to design work so that it is performed
by teams. On a work team, employees bring together various skills and experiences to produce
goods or provide services.

Blooms: Remember
Learning Objective: 09-03 Describe the conditions that create a high-performance work system.
Topic: Teamwork and Empowerment
9-3
6. To create a learning organization, one challenge is to shift the focus of training away from
merely generating and sharing knowledge toward a stronger focus on teaching skills.
FALSE
Knowledge is shared. Therefore, to create a learning organization, one challenge is to shift the
focus of training away from merely teaching skills and toward a broader focus on generating
and sharing knowledge.

Blooms: Understand
Topic: Knowledge Sharing
7. A condition underpinning any high-performance organization is that employees be fully

engaged with their work.
TRUE
A condition underpinning any high-performance organization is that employees be fully

engaged with their work. Employee engagement is the degree to which employees are fully
involved in their work and the strength of their commitment to their job and company. Being
fully engaged tends to require that employees experience their jobs as fulfilling or allowing
them to fulfill important values. Research supports the idea that employees' job satisfaction and
job performance are related.

Blooms: Remember
Topic: Job Satisfaction and Employee Engagement
9-4
8. People experience occupational intimacy when they love their work, when they and their co-
workers care about one another, and when they find their work meaningful.
TRUE
People experience occupational intimacy when they love their work, when they and their co-

Blooms: Remember
9. A written code of ethics is usually ineffective if it is developed with input from employees about
situations they encounter.
FALSE
A number of organizational systems can promote ethical behavior. These include a written code
of ethics that the organization distributes to employees and expects them to use in decision
making. This type of guidance can be especially effective if developed with input from
employees about situations they encounter.

Blooms: Remember
Topic: Ethics
9-5
10. Research suggests that it is more effective to improve HRM practices as a whole than to focus
on one or two isolated practices.
TRUE
Research suggests that it is more effective to improve HRM practices as a whole than to focus
on one or two isolated practices, such as the organization's pay structure or selection system.
Also, to have the intended influence on performance, the HRM practices must fit well with one
another and the organization as a whole.

Blooms: Remember
Learning Objective: 09-04 Explain how human resource management can contribute to high performance.
Topic: HRM's Contribution to High Performance
11. High-performance organizations do not need selection methods that identify more than
technical skills.
FALSE
High-performance organizations need selection methods that identify more than technical skills
like ability to perform accounting and engineering tasks. Employers may use group interviews,
open-ended questions, and psychological tests to find employees who innovate, share ideas,
and take initiative.

Blooms: Remember
Topic: HRM Practices
9-6
12. To set up a performance management system that supports the organization's goals, managers
need to understand the process of employee performance.
TRUE
Performance management, ensures that employees' work contributes to achieving the

organization's goals. To set up a performance management system that supports the
organization's goals, managers need to understand the process of employee performance.

Blooms: Remember
13. Measures of employees' performance should take the effects of situational constraints into
account.
TRUE
An organization should monitor economic conditions, the organization's culture, and other
influences of situational constraints on performance. Measures of employees' performance
should take these influences into account.

Blooms: Remember
9-7
14. Compensation usually discourages high-performance organizations when it is linked in part to
performance measures.
FALSE
Compensation supports high-performance organizations when it is linked in part to

performance measures.

Blooms: Remember
15. Transaction processing includes the activities required to meet government reporting
requirements.
TRUE
Transaction processing refers to computations and calculations involved in reviewing and

documenting HRM decisions and practices. It includes documenting decisions and actions
associated with employee relocation, training expenses, and enrollment in courses and benefit
plans. Transaction processing also includes the activities required to meet government
reporting requirements, such as filling out EEO-1 reports, on which employers report
information about employees' race and gender by job category.

Blooms: Remember
Learning Objective: 09-05 Discuss the role of HRM technology in high-performance work systems.
Topic: HRM Applications
9-8
16. An expert system can increase efficiency by enabling more highly skilled employees to do work
that otherwise would require many less-skilled employees.
FALSE
An expert system can increase efficiency by enabling fewer or less-skilled employees to do work
that otherwise would require many highly skilled employees.

Blooms: Understand
Level of Difficulty: 2 Medium
17. A standard feature of a modern Human Resource Information Systems (HRIS) is the use of
relational databases, which store data in separate files that can be linked by common elements.
TRUE
A standard feature of a modern Human Resource Information Systems (HRIS) is the use of
relational databases, which store data in separate files that can be linked by common elements.
These common elements are fields identifying the type of data.

Blooms: Remember
Topic: Human Resource Information Systems
9-9
18. A benefit of e-HRM is that employees can help themselves to information they need when they
need it, instead of contacting an HR staff person.
TRUE
A benefit of e-HRM is that employees can help themselves to the information they need when
they need it, instead of contacting an HR staff person.

Blooms: Remember
Topic: Human Resource Management Online: E-HRM
19. In the context of e-HRM, online appraisal or talent management systems provide data that can
help managers spot high performers to reward or types of skills where additional training is a
priority.
TRUE
Most administrative and information-gathering activities in human resource management can

be part of e-HRM.

Blooms: Remember
9-10
20. For an organization's human resource division, "customers" are the organization's top
management.
FALSE
In recent years, human resource management at some organizations has responded to the
quest for total quality management by taking a customer-oriented approach. For an
organization's human resource division, "customers" are the organization as a whole and its
other divisions.

Blooms: Remember
Learning Objective: 09-06 Summarize ways to measure the effectiveness of human resource management.
Topic: Effectiveness of Human Resource Management
21. An HRM audit is a formal review of the outcomes of HRM functions.
TRUE
An HRM audit is a formal review of the outcomes of HRM functions. To conduct the audit, the
HR department identifies key functions and the key measures of business performance and
customer satisfaction that would indicate each function is succeeding.

Blooms: Remember
Topic: Human Resource Management Audits
9-11
22. Training dollars per employee is a business indicator of the success of an HR department's
training programs.
TRUE
Training dollars per employee is a business indicator of the success of an HR department's

training programs.

Blooms: Remember
23. The usual way to measure customer satisfaction in the course of an HRM audit is to conduct
experiments in controlled environments.
FALSE
The usual way to measure customer satisfaction is to conduct surveys such as the employee
attitude surveys.

Blooms: Remember
9-12
24. One way to measure HRM effectiveness is to measure a program's success in terms of whether
it achieved its objectives and whether it delivered value in an economic sense.
TRUE
One way to measure HRM effectiveness is to analyze specific programs or activities. The
analysis can measure a program's success in terms of whether it achieved its objectives and
whether it delivered value in an economic sense.

Blooms: Remember
Topic: Analyzing the Effect of HRM Programs
25. A recruiter's colleagues are most useful as a source of leads to qualified job candidates than are
people the recruiter communicates with only occasionally.
FALSE
A recruiter's closest friends and colleagues are less useful as a source of leads to qualified job
candidates than are people the recruiter communicates with only occasionally. These less-close
associates are likelier to have acquaintances who aren't already familiar to the recruiter.

Blooms: Remember
9-13
Multiple Choice Questions
26. Identify the statement that best defines a high-performance work system.
A. It is an arrangement of machinery and equipment that streamlines the workflow and results
in maximum efficiency and cost savings.
B. It refers to the right combination of people, technology, and organizational structure that
makes full use of the organization's resources and opportunities in achieving its goals.
C. It is a computer software system that is designed to help managers solve problems by
showing how results vary when the manager alters assumptions or data.
D. It is a system that is used to collect, record, store, analyze, and retrieve data concerning an
organization's human resources.
E. It refers to a performance management system that measures customer satisfaction.
A high-performance work system refers to the right combination of people, technology, and
organizational structure that makes full use of the organization's resources and opportunities in
achieving its goals.

Blooms: Remember
9-14
27. Which of the following statements is true of high-performance work systems?
A. Creating a high-performance work system is akin to using traditional management
practices.
B. To function as a high-performance work system, people, technology, and organizational
structure must be completely independent of one another.
C. To develop a high-performance work system, organizations need to determine what kinds

of people fit their needs and then locate, train, and motivate those special people.
D. A high-performance work system usually excludes reward systems.
E. Integrated high-performance work practices usually have little impact on productivity and
long-term financial performance.
To function as a high-performance work system, each of the elements—people, technology,
and organizational structure—must fit well with the others in a smoothly functioning whole.
Organizations need to determine what kinds of people fit their needs, and then locate, train,
and motivate those special people.

Blooms: Understand
9-15
28. Identify the term that refers to the way in which an organization groups its people into useful
divisions, departments, and reporting relationships.
A. Job structure
B. Organizational structure
C. Value chain
D. Corporate design
E. Relationship management
Organizational structure is the way the organization groups its people into useful divisions,
departments, and reporting relationships.

Blooms: Remember
9-16
29. Which of the following in an organization usually makes most of the decisions about
organizational structure?
A. Top management
B. HR department
C. Supervisors
D. Middle-level managers
E. Technical analysts
An organization's top management makes most decisions about structure, for instance, how
many employees report to each supervisor and whether employees are grouped according to
the functions they carry out or the customers they serve.

Blooms: Remember
9-17
30. Which of the following elements of a high-performance work system determines how the
details of the organization's necessary activities will be grouped, whether into jobs or team
responsibilities?
A. Information systems
B. Reward systems
C. Performance
D. Organizational structure
E. Task design
Task design determines how the details of the organization's necessary activities will be
grouped, whether into jobs or team responsibilities. In a high-performance work system, task
design makes jobs efficient while encouraging high quality.

Blooms: Remember
9-18
31. Which of the following statements is true about task design?
A. It determines what type of information to gather to reduce errors in planning.
B. It empowers people to perform better and create goals that match an organization's goals.
C. It allows the recruitment of prospective candidates to occur in an easier manner.
D. It involves dividing a task or assignment into smaller tasks or assignments so that short-term
goals can be met.
E. It involves the clustering of details pertaining to an organization's required activities.
Task design determines how the details of an organization's necessary activities will be
grouped, whether into jobs or team responsibilities.

Blooms: Understand
9-19
32. Gibson United is a new firm located in Chicago. The firm has to hire qualified individuals,
compartmentalize them into different departments, and hire a set of managers who will be able
to instruct, monitor, and guide these employees to ensure smooth functioning of the
organization. In this scenario, Gibson United is engaging in creating a(n) _____.
A. information system
B. task-design procedure
C. reward system
D. organizational structure
E. staffing solution
departments, and reporting relationships.
AACSB: Knowledge Application

Blooms: Apply
Level of Difficulty: 3 Hard
9-20
33. David believes that for a company to run smoothly, it must adopt an organizational structure in
which the employees clearly know who their reporting managers are and which departments
they belong to. David claims that this will give the employees clarity about their roles and
functions and will help them contribute efficiently toward the organization's overall success.
Which of the following statements strengthens David's claims?
A. Roles can be better understood when managers provide examples that will help employees
understand their roles better.
B. Clarity depends on how well a manager describes job functions.
C. Departmentalization may create a feeling of superiority among managers, which will help
them work better.
D. An organizational structure creates a positive environment without hindering the learning

process.
E. An efficient structure depends on an efficient taskforce that is willing to learn and adapt.
departments, and reporting relationships. In a high-performance work system, organizational
structure promotes cooperation, learning, and continuous improvement. According to David's
belief, an organizational structure should be such that it constructs an environment that

supports the learning process.
AACSB: Reflective Thinking

Blooms: Analyze
9-21
34. Isabel is a new hire at an IT firm. She experiences trouble performing the job assigned to her
even though she has the necessary skill set to complete the job. She has little clarity about team
responsibilities and details of her work activities and has a difficult time comprehending the
work activities. In this case, which of the following elements of the high-performance work
systems has been implemented ineffectively by the organization?
A. Organizational structure.
B. Staffing.
C. Reward systems.
D. Task design.
E. Information systems.

Blooms: Apply
9-22
35. Which of the following elements in a high-performance work system contributes to high
performance by encouraging people to strive for objectives that support the organization's
overall goals and includes the performance measures by which employees are judged?
A. Organizational goals
B. Task design
C. Reward systems
D. Information systems
E. Training systems

Blooms: Remember
9-23
36. Ryan is an experienced employee at an organization. The latest policy implemented by the
firm's management provides only new employees with bonuses and other perks for exemplary
performance. Ryan has raised concerns regarding the revised policy, but management stands
firm on its revised policy. Which of the following elements of a high-performance work system
would most likely weaken the organization's performance?
A. Organizational structure
B. Staffing
C. Reward systems
D. Task design
E. Information systems

Blooms: Apply
9-24
37. Which of the following is true of an information system?
A. It acts as a gateway to the reservoir of knowledge available across the Internet.
B. It is a physical server in which all the data that belongs to a company is stored and
managed.
C. Managers must decide who has access to what type of information and its availability.
D. Managers post their problems on an information system and receive solutions for these
problems.
E. Any information system used in an organization allows access to all of the organization's
databases.
Managers make decisions about the types of information to gather and the sources of
information. They also must decide who in the organization should have access to the
information and how they will make the information available.

Blooms: Understand
9-25
38. Nicole is a new recruit at a leading IT firm. She keeps records of important client data and is
given special access to certain confidential data, which is available only to her and not to others
in the organization. Given the nature of her work, which of the following elements of a high-
performance work system is illustrated in this scenario?
A. Organizational structure
B. Staffing
C. Reward systems
D. Task design
E. Information systems
Managers make decisions about the types of information to gather and the sources of
information. They also must decide who in the organization should have access to the
information and how they will make the information available. Modern information systems,
including the Internet, have enabled organizations to share information widely.

Blooms: Apply
9-26
39. In a high-performance work system, task design makes jobs _____.
A. narrow in scope
B. high in task significance but low in autonomy
C. highly specialized
D. efficient while encouraging high quality
E. simple and repetitive

Blooms: Remember
9-27
40. High-performance work systems result in _____.
A. simple, repetitive jobs
B. high employee turnover
C. high production costs
D. high product quality
E. centralized decision making
Outcomes of a high-performance work system thus include higher productivity and efficiency.
These outcomes contribute to higher profits. A high-performance work system may have other
outcomes, including high product quality, great customer satisfaction, and low employee
turnover.

Blooms: Remember
41. Outcomes of a high-performance work system include higher productivity and _____.
A. efficiency
B. maintenance
C. manpower
D. equipment
E. resources
Outcomes of a high-performance work system include higher productivity and efficiency.
9-28
Blooms: Remember
42. Which of the following statements is true about the outcomes of high-performance work
systems?
A. The outcomes of high-performance work systems include high employee turnover.
B. Sales revenues increase the outcomes of high-performance work systems.
C. Clients are the main force that drives the outcomes of a high-performance work system.
D. The outcomes of each employee contribute to a system's overall high performance.
E. Incentives provided to each employee play a big part in contributing to outcomes.
In a high-performance work system, the outcomes of each employee and work group
contribute to the system's overall high performance. The organization's individuals and groups
work efficiently, provide high-quality goods and services, and so on, and in this way, they
contribute to meeting the organization's goals.

Blooms: Understand
9-29
43. Cell-O World Inc. has increased doubled its profits since last year just by reducing employee
absenteeism. Increased productivity is the reason for the surge in the company's profits. The
employees have also improved customer satisfaction due to their increased productivity. In this
scenario, which of the following aspects of a high-performance work system is contributing to

the high productivity and efficiency?
A. Outcomes
B. Problems
C. Situations
D. Taskforce
E. Infrastructure
Outcomes of a high-performance work system include higher productivity and efficiency. These
outcomes contribute to higher profits.

Blooms: Apply
9-30
44. Which of the following statements is true of an organizational structure in a high-performance
work system?
A. It promotes high employee turnover.
B. It promotes cooperation and learning.
C. It discourages competition.
D. It helps the organization select the right people with the required qualifications.
E. It encourages people to strive for objectives that support the organization's overall goals.
In a high-performance work system, organizational structure promotes cooperation, learning,
and continuous improvement.

Blooms: Understand
45. Which of the following is a condition that contributes to high performance?
A. Teams perform work only if employees are interested in a project.
B. Work design gives employees the opportunity to utilize a variety of skills.
C. Ongoing training is not emphasized, but it is implemented when necessary.
D. Managers understand how their jobs contribute to a finished product or service.
E. Employees' rewards and compensation relate to their own performance.
Work design allows employees to use a variety of skills. This is one of the many conditions that
contribute to high performance.
9-31
Blooms: Understand
Topic: Conditions that Contribute to High Performance
46. _____ is a necessary condition of high performance because it contributes to good long-term
relationships with employees, customers, and the public.
A. Emotional behavior
B. Ethical behavior
C. Physical behavior
D. Mental behavior
E. Cognitive behavior
Ethical behavior is a necessary condition of high performance because it contributes to good

long-term relationships with employees, customers, and the public.

Blooms: Understand
9-32
47. An automobile manufacturing firm hires employees with different backgrounds and varying
years of experience. The new employees and the experienced employees struggle to cope with
each other as they share different views about the bonus system and the work activities. The
new employees feel left out of critical decision-making processes; whereas the experienced
employees feel they are undertrained. Which of the following conditions, if true, would
strengthen the formation of a high-performance work system?
A. The experienced employees should be encouraged to focus on the work rather than being
involved in the selection process.
B. The management should allow new employees to participate in changes made to work
systems, equipment, and layout.
C. The ongoing training for experienced employees should be minimized.
D. The employees' rewards and compensation should be distinct and independent of the
company's financial performance.
E. The work design of the firm should be such that it discourages flexibility.
Certain conditions underlie the formation of a high-performance work system, such as allowing
employees to participate in equipment, layout, and work methods.

Blooms: Analyze
9-33
48. Which of the following would most likely aid in the formation of a high-performance work
system?
A. Employees' rewards and compensation that relate to the company's financial performance
B. Work design that allows employees to use a single skill
C. Technology that is used to discourage flexibility
D. Employees that receive little formal performance feedback
E. Training that is discouraged because of increasing costs
Certain conditions underlie the formation of a high-performance work system. Employees'
rewards and compensation relate to the company's financial performance.

Blooms: Understand
9-34
49. The most popular way of empowering employees is by:
A. narrowing the scope of jobs.
B. designing work so that it is performed by teams.
C. adopting a centralized decision-making approach.
D. paying bonuses to all employees regardless of contribution.
E. providing employees with simple, repetitive jobs.
One of the most popular ways to empower employees is to design work so that it is performed
by teams. On a work team, employees bring together various skills and experiences to produce
goods or provide services.

Blooms: Remember
50. A work team can be empowered by:
A. reducing the team's interaction with other department or teams.
B. keeping roles independent and separate from one another.
C. authorizing the team to make decisions traditionally made by managers.
D. confining the scope of work done by the team and its members.
E. assigning management of work schedules to the manager.
In order to empower teams, an organization may charge the teams with making decisions
traditionally made by managers, such as hiring team members and planning work schedules.
9-35
Blooms: Understand
51. Teamwork and empowerment contribute to high performance when they improve _____.
A. job satisfaction
B. organizational goals
C. organizational ethics
D. job rotation
E. job enlargement
Teamwork and empowerment contribute to high performance when they improve job
satisfaction and give the organization fuller use of employees' ideas and expertise.

Blooms: Remember
9-36
52. For empowerment to succeed, managers should:
A. micromanage their teams and delegate as much work as possible.
B. ensure that communication flows top down from senior management.
C. help their teams ensure that communication flows in both directions.
D. hold frequent meetings to constantly supervise the progress of the team.
E. ensure that a team shares information only after it receives approval.
For empowerment to succeed, a manager should help the team and its members interact with
employees from other departments or teams and should make sure communication flows in
both directions—the manager keeps the team updated on important issues and ensures that
the team shares information and resources with others who need them.

Blooms: Remember
9-37
53. Which of the following statements is true about a learning organization?
A. It actively resists organizational change.
B. It usually considers organizational learning a barrier to the dissemination of corporate

culture.
C. It supports lifelong learning by enabling all employees to continually acquire and share
knowledge.
D. It places a relatively low importance on innovation.
E. It considers training a superfluous corporate ritual.
A learning organization is an organization in which the culture values and supports lifelong
learning by enabling all employees to continually acquire and share knowledge.

Blooms: Understand
9-38
54. For a learning organization to function well, employees ought to:
A. create short-term learning goals rather than long-term learning goals.
B. identify their own training needs.
C. take part in seminars and conferences at least once every week.
D. share the information that was acquired during the learning process.
E. distribute highly classified information.
People are the essential ingredients in a learning organization. They must be committed to
learning and willing to share what they have learned.

Blooms: Remember
55. Each employee's and each group's ongoing efforts to gather information and apply the
information to their decisions in a learning organization is referred to as:
A. continuous learning.
B. critical thinking.
C. innovation.
D. cognition.
E. groupthink.
Continuous learning refers to each employee's and each group's ongoing efforts to gather
information and apply the information to their decisions.
9-39
Blooms: Remember
56. Which of the following is true about continuous learning?
A. The advancement of technology has put little pressure on employees to learn about their
work systems.
B. Employees should continuously learn about their work systems to improve performance.
C. Continuous learning may eventually turn out to be a disadvantage because it results in

information overload.
D. Despite continuous learning, employees do not put into practice what they have learned.
E. Continuous learning definitely will result in a job transfer or better job opportunities.
To engage in continuous learning, employees must understand the entire work system they
participate in, the relationships among jobs, their work units, and the organization as a whole.
Employees who continuously learn about their work system are adding to their ability to
improve performance.

Blooms: Understand
9-40
57. What is the perception about training in a learning organization?
A. It is treated as a superfluous corporate ritual.
B. It is viewed as an investment in the organization's human resources.
C. It is considered as the only driver of continued growth and sustainability.
D. It is deemed as the primary means of retaining good employees.
E. It is regarded as a tool to minimize organizational anarchy.
To create a learning organization, one challenge is to shift the focus of training away from
merely teaching skills and toward a broader focus on generating and sharing knowledge. In this
view, training is an investment in the organization's human resources; it increases employees'

value to the organization.

Blooms: Understand
9-41
58. Which of the following occurs when organizations encourage employees to see relationships
among ideas and to test assumptions and observe the results of their actions?
A. High employee turnover
B. Critical, systematic thinking
C. Disruptive, intermittent learning
D. Organizational change
E. Organizational anarchy
Critical, systematic thinking is widespread in learning organizations. This occurs when
organizations encourage employees to see relationships among ideas and to test assumptions
and observe the results of their actions. Reward systems can be set up to encourage employees
and teams to think in new ways.

Blooms: Remember
9-42
59. A learning culture creates the conditions in which managers:
A. encourage experimentation.
B. ensure rigidity.
C. help sustain the status quo.
D. encourage groupthink.
E. demonstrate a high degree of risk aversion.
A learning culture is a culture in which learning is rewarded, promoted, and supported by

managers and organizational objectives. This culture may be reflected in performance
management systems and pay structures that reward employees for gathering and sharing
more knowledge. A learning culture creates the conditions in which managers encourage
flexibility and experimentation.

Blooms: Understand
9-43
60. Which of the following is a valid reason for ethical behavior to be a necessary condition for high
performance?
A. It fosters competitiveness.
B. It empowers first-line managers and supervisors.
C. It helps an organization maintain the status quo.
D. It contributes to good long-term relationships with employees, customers, and the public.
E. It encourages people to be highly innovative.
Ethical behavior is a necessary condition of high performance because it contributes to good
long-term relationships with employees, customers, and the public.

Blooms: Understand
9-44
61. Which of the following is a way in which organizations can promote job satisfaction?
A. They can make jobs more repetitive.
B. They can set up subjective performance management systems.
C. They can set highly abstract goals.
D. They can empower supervisors.
E. They can make jobs more interesting.
There are a number of ways organizations can promote job satisfaction. They include making
jobs more interesting, setting clear and challenging goals, and providing valued rewards that
are linked to performance in a performance management system that employees consider fair.

Blooms: Understand
9-45
62. Zoom Motors pays a lot of attention to improving employee skills on the job. Its training
centers and mentors are open to one-on-one sessions, group discussions, and workshops. The
organization boasts a world-class resource center that offers the latest editions of many books
and journals related to the automotive industry. All employees have free access to the
knowledge pool in the organization and are welcome to initiate discussions on topics of
interest. In this scenario, Zoom Motors has created a _____.
A. learning organization
B. cultural organization
C. static organization
D. smart organization
E. technology-based organization
A learning organization, that is, an organization in which the culture values and supports
lifelong learning by enabling all employees to continually acquire and share knowledge. From
this scenario it can be understood that Zoom Motors provides a learning organization where
learning is encouraged and knowledge is shared.

Blooms: Apply
9-46
63. The employees at Waycliff Foundation are continuously conducting research on ways to
improve facilities and benefits for the impoverished children they care for. They then implement
the ideas resulting from their research. This is an example of _____.
A. brand alignment
B. continuous learning
C. employee engagement
D. performance management
E. expert systems
Continuous learning involves each employee's and each group's ongoing efforts to gather
information and apply the information to their decisions. In this scenario, the Waycliff
Foundation has conducted research and also implemented the findings of their search to help
take care of impoverished children.

Blooms: Apply
9-47
64. Calvin, the CEO of Incal Inc., a digital media startup, holds a meeting with his employees, telling
them he wants them to put 100% effort into their daily work. To motivate them, he announces
that the employee with the best performance will be named Employee of the Month and
provided with additional perks. In this scenario, Calvin is trying to increase _____ at Incal Inc.
A. managerial engagement
B. employer engagement
C. client engagement
D. employee engagement
E. distributor engagement
Employee engagement is the degree to which employees are fully involved in their work and
the strength of their commitment to their job and company. In this scenario, Calvin is trying to
increase employee engagement at Incal Inc.

Blooms: Apply
9-48
65. Tamara McKay, a manager at Ionic Consulting, believes that it is important for employees to
feel a sense of satisfaction about their jobs. She feels that a satisfied employee will contribute
more to the organization than an employee who is dissatisfied with his or her job. Harry,
Tamara's coworker, argues that job satisfaction should not have an impact on the quality of
work or productivity. Which of the following statements supports Tamara's belief?
A. Rewarding an employee for a job well done helps motivate the person to perform better in
his or her job.
B. Salary and benefits should be considered more important than just a satisfying job that
provides a small salary.
C. Employees have no interest in being recognized by management for a job well done.
D. Deadlines, when met, help create an environment where an employee is content with his or
her job.
E. Employees engage actively in assigned work when there is a free flow of communication
between the employer and employee.
Being fully engaged tends to require that employees experience their jobs as fulfilling or
allowing them to fulfill important values. Organizations can promote job satisfaction and
employee engagement through providing valued rewards that are linked to performance in a
performance management system that employees consider fair. Rewarding an employee when
he or she does something right, will motivate him or her to perform future tasks in a better way.

Blooms: Analyze
9-49
66. At Wakame Beauty Solutions, Sheila created an award-winning line of lip balm, lip gloss, and
lipstick after many hours of research and discussions with experts. Now, with her manager's
encouragement, she frequently conducts workshops for other employees about lip color and
other beauty products. In this scenario, which of the following features of Wakame Beauty
Solutions is exemplified?
A. Flexible environment
B. Critical thinking
C. Learning culture
D. Job rotation
E. Functional organization
This scenario demonstrates that Wakame Beauty Solutions has a learning culture—a culture in
which learning is rewarded, promoted, and supported by managers and organizational
objectives. This culture may be reflected in performance management systems and pay
structures that reward employees for gathering and sharing more knowledge.

Blooms: Apply
9-50
67. Georgia, the learning and development manager at StudyWell Inc., believes that in addition to
providing superior benefits to employees, it is important to create an environment in which
they also have access to the firm's large learning database. She suggests that employees take
time out of their workday to research relevant topics and conduct seminars to share knowledge
with their colleagues. However, Georgia's manager, Vincent, argues that encouraging
employees to do so will cause a downturn in productivity. Which of the following statements
supports Georgia's suggestion?
A. Any increase in learning activities in an organization increases workload and decreases the
time available to handle the workload.
B. Vincent believes that learning should occur during employees' free time, not as part of their
daily work activities.
C. The time that employees spend in research should not interfere with projects that must be
accomplished under tight deadlines.
D. Learning a task and knowing how to perform it in an efficient manner is a highly rewarding
experience.
E. Vincent feels Georgia's idea will create conflict among her team members.
A learning culture is one in which learning is rewarded, promoted, and supported by managers
and organizational objectives. This culture may be reflected in performance management
systems and pay structures that reward employees for gathering and sharing more knowledge.
Learning and sharing additional knowledge is a rewarding experience.

Blooms: Analyze
9-51
68. Colin Bleuze, the new CEO of Silver Star, claims that work equals life for him. He believes that
when one learns to love his or her job, it will result in job satisfaction. He provides employees
with the best amenities the firm can afford, such as a sports center, a health clinic, and other
facilities. The results are clear: reduced absenteeism, increased productivity, and an interactive
social culture. Which of the following is most likely to cause conflict and dissatisfaction in the
work that the employees engage in at Silver Star?
A. The employees feel that such amenities are to be enjoyed outside of work.
B. The employees are given tasks that vary significantly from their job descriptions.
C. The employees demand fewer working hours or more pay.
D. Silver Star's major competitor is changing its organizational structure.
E. Other companies are trying to replicate Silver Star's approach to employee engagement.
workers care about one another, and when they find their work meaningful. If the employees
are given tasks that vary significantly from their job description, it is most likely to reduce
occupational intimacy and cause conflicts.

Blooms: Analyze
9-52
69. People experience _____ when they love their work, when they and their co-workers care about
one another, and when they find their work meaningful.
A. burnout
B. cognitive job satisfaction
C. occupational intimacy
D. diminished personal accomplishment
E. emotional dissonance

Blooms: Remember
9-53
70. James works at a publishing house. He is fond of his work and is a passionate team member.
His colleagues show concern for him and his work, and he experiences a positive feeling about
his work. In the context of job satisfaction, this feeling experienced by Vincent is known as
_____.
A. job altruism
B. occupational intimacy
C. work loyalty
D. task obedience
E. job compliance

Blooms: Apply
9-54
71. Which of the following practices is most likely to enhance occupational intimacy?
A. Lowering emphasis on organizational learning
B. Narrowing the scope of work
C. Setting highly abstract goals
D. Establishing rigid and enduring pay structures
E. Establishing policies that show concern for employees' needs
Human resource managers have a significant role in creating these conditions for employees to
experience occupational intimacy. For example, they can select people who care about their
work and customers, provide methods for sharing knowledge, design work to make jobs
interesting, and establish policies and programs that show concern for employees' needs.

Blooms: Understand
9-55
72. Which of the following processes involves ensuring that HR policies, practices, and programs
support or are congruent with an organization's overall culture or brand, including its products
and services?
A. Brand reinforcement
B. Brand alignment
C. Crowdsourcing
D. Brand dilution
E. Corporate social responsibility
Brand alignment is the process of ensuring that HR policies, practices, and programs support or
are congruent with an organization's overall culture or brand, including its products and
services.

Blooms: Remember
9-56
73. A firm's marketing department plans to introduce a new product into the market. The
department invites suggestions from employees about the new product. New employees at the
firm are also given an exhaustive orientation by the HR department about the company's vision
and goals, and how the firm's products have traditionally formed an integral part of their daily
work life. This orientation activity organized by the HR department is an example of _____.
A. brand alignment
B. brand extension
C. brand equity
D. brand valuation
E. brand earnings
services. One way to ensure HR policies align with a company's strategic vision is to educate
employees about the company's "brand" and their role in bringing that brand to life as part of
everyday work activities.

Blooms: Apply
9-57
74. Unity Inc. sells novelty products to a niche market. With support from the human resources
team, the customer services team handles the firm's unique brand and reaches out to specific
audiences. To ensure that its product line remains strong, the company's CEO emphasizes team
adherence to the ethics and policies of the organization. In this scenario, which of the following
methods of employee engagement is the CEO of Unity Inc. encouraging?
A. Continuous learning
B. Opportunities for career progress
C. Recognition for accomplishments
D. Brand alignment
E. HR analytics
services. In this scenario, the CEO of Unity Inc. is encouraging brand alignment.

Blooms: Apply
9-58
75. Numerous cases of unethical behavior have been reported in a leading beverage company.
Which of the following, if true, would strengthen the reason for the increase in these cases?
A. The firm uses only a written code of ethics.
B. The firm uses a continuous learning culture.
C. The firm failed to use its cloud computing services.
D. The employees at the firm experience occupational intimacy.
E. The firm excludes ethical behavior in its performance measures.
Ethical behavior is a necessary condition for high performance in firms. Hence, if the firm
excludes ethical behavior in its performance measures, the number of cases of unethical
behavior is likely to increase.

Blooms: Analyze
Topic: Ethics
9-59
76. Which of the following is an HRM practice that helps organizations achieve high performance?
A. Work is performed by individuals.
B. Organization discourages continuous learning.
C. Performance management system measures customer satisfaction and quality.
D. Pay systems primarily reward loyalty to the company.
E. Technology increases costs.
There are many HRM practices that help organizations achieve high performance. One of them
is performance management systems measure customer satisfaction and quality. Refer to Table
9.1.

Blooms: Remember
77. Job design aimed at empowerment:
A. is complex.
B. limits flexibility.
C. includes access to resources.
D. increases employee turnover.
E. includes a rigid pay structure.
Job design aimed at empowerment includes access to resources such as information

technology.
9-60
Blooms: Understand
78. ThinkBig Inc. has been known for its excellent customer service since its start more than 40
years ago. The founder of the company believes that it is because of the dedicated efforts of his
employees. The company boasts of carefully selected employees who, through various tests,
are hired based on their skills and their ability to contribute to the organization. The
organization has benefited greatly because of its process of selecting employees, which, in turn,
has resulted in customer loyalty to the services it provides. Rival companies have envied the
type of selection methods the company has used to hire candidates. Which of the following
would undermine the recruitment efforts of this company?
A. ThinkBig Inc. is not recognized as providing the best customer service.
B. Customers feel that there is no room for improvement in terms of service provided by
ThinkBig Inc.
C. High performers in the company find it difficult to refer their friends to open vacancies in
the company.
D. Other companies have adopted the same style of recruiting employees as ThinkBig Inc.
E. ThinkBig Inc. begins hiring employees without thoroughly assessing their skills and
knowledge.
Recruitment and selection aim at obtaining employees who are enthusiastic about and able to
contribute to teamwork, empowerment, and knowledge sharing. If ThinkBig Inc. begins hiring
employees without thoroughly assessing their skills and knowledge, it will undermine its
recruitment efforts.

Blooms: Analyze
9-61
79. ITI Inc., a software company, is currently looking for employees to fill vacant positions. It is
looking for prospective candidates who are enthusiastic about work and willing to share their
knowledge with their colleagues on various topics related to their field. The HR department is
responsible for finding the right type of candidate to fit the roles in the organization. In this
scenario, the HR department at ITI Inc. is engaged in _____.
A. job design
B. training
C. performance management
D. recruitment and selection
E. job search
contribute to teamwork, empowerment, and knowledge sharing. Qualities such as creativity and
ability to cooperate as part of a team may play a large role in selection decisions. In this
scenario, the HR team at ITI Inc. is practicing recruitment and selection.

Blooms: Apply
9-62
80. Identify the right HRM practice that can assist firms in becoming a high-performance
organization.
A. Discipline system is conservative.
B. Organizations avoid monitoring employees' satisfaction.
C. Selection system is job related and legal.
D. Work design encourages rigidity.
E. Technology is used sparingly.
There are many HRM practices that help organizations achieve high performance. One practice
is that the selection system is job related and legal. Refer to Table 9.1.

Blooms: Understand
9-63
81. Which of the following selection methods is used by organizations to identify employees who
innovate, share ideas, and take initiative?
A. Technical proficiency
B. Psychological testing
C. Structured interview
D. Aptitude
E. Physical ability

Blooms: Remember
9-64
82. At a high-performance organization, recruitment and selection aim at obtaining the kinds of
employees who can thrive in this type of setting. These employees are _____.
A. primarily individual contributors
B. enthusiastic about knowledge sharing
C. averse to risk taking
D. averse to experimentation
E. averse to taking initiatives
contribute to teamwork, empowerment, and knowledge sharing. Qualities such as creativity and
ability to cooperate as part of a team may play a large role in selection decisions.

Blooms: Understand
9-65
83. One way performance management systems can support organizational goals is by:
A. defining and measuring performance in broad behavioral terms.
B. linking performance measures to meeting internal and external customers' needs.
C. ignoring situational constraints.
D. outsourcing those goals to professional behavior management firms.
E. choosing business goals based on employees' skills and abilities.
Performance management systems can better support organizational goals if performance

measures are linked to meeting customer needs. "Customers" may be the organization's
external customers, or they may be internal customers (employees receiving services from a co-
worker). Service goals for internal customers should be related to satisfying external customers.

Blooms: Understand
9-66
84. Winston Memorial Hospital has a well-disciplined and focused staff. Doctors and other health
care professionals are taught to follow the organization's policies and guidelines and strictly
conduct themselves and their jobs in a manner that reflects the hospital's goals. These policies
have helped the hospital gain recognition as one of the best hospitals in the region. This is an
example of _____.
A. resource management
B. performance management
C. recruitment and selection
D. training and feedback
E. job design and job maintenance
Performance management ensures that employees' work contributes to achieving the
organization's goals. In this scenario, the employees at Winston Memorial Hospital are
practicing performance management.

Blooms: Apply
9-67
85. A media company gives its employees monetary bonuses at the end of the company's fiscal
year based on employees' contribution to the firm's financial success. This is a method of:
A. including employees in organizational planning.
B. disassociating compensation from performance measures.
C. disseminating organizational learning.
D. increasing employee participation in strategic decision making.
E. linking compensation to performance measures.
performance measures. Organizations can reinforce the impact of a performance management

system that encourages high performance by linking compensation in part to performance
measures.

Blooms: Understand
9-68
86. Ronaldo, the general manager of RipnRoll Furniture, believes that each employee must
thoroughly understand the goals of the organization. He understands that adhering to the
vision and mission of the organization will help increase employee satisfaction and will also
result in improved employee performance. Which of the following strengthens Ronaldo's

belief?
A. The vision and mission of the organization are ethical.
B. Understanding the organization's goals helps employees improve their performance.
C. Employee performance can be enhanced by keeping costs under control.
D. Ronaldo has too many expectations of his employees.
E. The organization's goals constantly change.
Performance management ensures that employees' work contributes to achieving the
organization's goals. In a high-performance organization, this requires making sure that
employees know the organization's goals and what they must do to contribute to goal
achievement. When employees are aware of the overall goals of the organization, they tend to
achieve more clarity and focus in the work they do.

Blooms: Analyze
9-69
87. Compensation systems can help create the conditions that contribute to high performance.
Consequently, organizations can increase empowerment and job satisfaction by:
A. communicating the basis for decisions about pay.
B. disassociating compensation from performance measures.
C. discouraging negotiations regarding pay.
D. limiting employee participation in management.
E. limiting the use of gainsharing and profit sharing.
Organizations can increase empowerment and job satisfaction by including employees in
decisions about compensation and by communicating the basis for decisions about pay.

Blooms: Understand
9-70
88. To improve the performance of employees at RowYourBoat Inc., the company provides
recognition and monetary benefits to those employees whose performance exceeds
expectations. This strategy can motivate some employees to perform better. This is an example
of a(n) _____ strategy.
A. occupational intimacy
B. brand alignment
C. appraisal
D. compensation
E. job design

performance measures. This initiation by RowYourBoat Inc. is an example of a compensation
strategy.

Blooms: Apply
9-71
89. New technology usually involves _____—that is, using equipment and information processing to
perform activities that had been performed by people.
A. downsizing
B. outsourcing
C. offshoring
D. automation
E. diversification
New technology usually involves automation and collaboration—that is, using equipment and
information processing to perform activities that had been performed by people. Over the last
few decades, automation has improved HRM efficiency by reducing the number of people
needed to perform routine tasks.

Blooms: Remember
Topic: HRM Technology
9-72
90. Which of the following refers to the computations and calculations involved in reviewing and
documenting HRM decisions and practices?
A. E-HRM
B. Transaction processing
C. Automation
D. Expert systems
E. Decision support systems
documenting HRM decisions and practices.

Blooms: Remember
9-73
91. The HR department at AYM Resources is having a tough time documenting its strategies. In
addition, irregularities were uncovered when reviewing the training expenses for a new group
of employees. As a solution to these issues, the general manager proposes that all policies,
decisions, expenses, and other plans be documented thoroughly with the help of computers
that would store pertinent data and organizational information. In this scenario, the general
manager proposes using _____.
A. transformational processing
B. expert systems
C. decision support systems
D. micro processing
E. transaction processing
documenting HRM decisions and practices. In this scenario, the general manager proposes
using transactional processing.

Blooms: Apply
9-74
92. Which of the following best defines decision support systems?
A. It refers to computer software systems that allow managers to see how outcomes vary when
assumptions or data are altered.
B. It is a network of remote servers used to store reusable data.
C. It is a network of systems that incorporates decision rules used by people who are
considered to have expertise in a certain area.
D. It refers to the set of topics on which a human resource information system collects and
maintains information.
E. It refers to online training and development materials that employees can access at their
own convenience from anywhere around the world.
Decision support systems are computer software systems designed to help managers solve
problems by showing how results vary when the manager alters assumptions or data.

Blooms: Remember
9-75
93. A manager wishes to test a range of assumptions on the availability of a certain skill in the labor
market. He plans to enter different assumptions or data to check how the likely outcomes alter
in accordance with the corresponding change in data. Which of the following is the most
suitable system for such a purpose?
A. A decision support system
B. An expert system
C. An e-HRM system
D. A transactional processing system
E. A transitional matrix
problems by showing how results vary when the manager alters assumptions or data.

Blooms: Apply
9-76
94. The senior management of a firm is undecided about the number of employees needed for its
new project. Management uses a network of computer software systems that enables it to
know the various possible outcomes required for the formation of the new project team. The
type of system most likely to have been used in this case is a(n) _____.
A. expert system
B. employee retention system
C. decision support system
D. work-action system
E. document management system
problems by showing how results vary when the manager alters assumptions or data. By
applying internal data or research results, this type of system can help managers make
decisions for human resource planning.

Blooms: Apply
9-77
95. _____ are computer systems that incorporate the decision rules used by people who are
considered to have proficiency in a certain area.
A. Decision support systems
B. Expert systems
C. E-HRM systems
D. Transactional processing systems
E. Clouds
Expert systems are computer systems that incorporate the decision rules used by people who
are considered to have expertise in a certain area. The systems help users make decisions by
recommending actions based on the decision rules and the information provided by the users.

Blooms: Remember
9-78
96. A firm's HR department uses a computer system that assists in the selection of candidates to be
interviewed for a job opening. The computer system enables the interviewer to act as both an
interviewee and interviewer in a simulation, thus providing the HR specialist with
comprehensive knowledge about the overall interview and selection process. This computer
system is likely to be a(n) _____.
A. expert system
B. employee retention system
C. decision support system
D. work-action system
E. document management system
Expert systems are computer systems that incorporate the decision rules used by people who
are considered to have expertise in a certain area. The systems help users make decisions by
recommending actions based on the decision rules and the information provided by the users.

Blooms: Apply
9-79
97. Which of the following statements is true of expert systems?
A. They can only be used by employees who have proven expertise in a certain area.
B. They increase errors arising from decision-making biases.
C. They are typically unstable.
D. They deliver quality at a very high cost.
E. They aid in reducing errors that result from fatigue.
By using the decision processes of experts, an expert system helps many people to arrive at
decisions that reflect the expert's knowledge. An expert system helps avoid the errors that can
result from fatigue and decision-making biases.

Blooms: Understand
9-80
98. A standard feature of a modern HRIS (Human Resource Information Systems) is the use of
_____, which store data in separate files that can be linked by common elements.
A. graph databases
B. hypermedia databases
C. relational databases
D. unstructured databases
E. parallel databases
A standard feature of a modern HRIS is the use of relational databases, which store data in
separate files that can be linked by common elements. These common elements are fields
identifying the type of data.

Blooms: Remember
9-81
99. Identify the advantage of a relational database.
A. It facilitates the storage of employee information in a single, large file.
B. It replicates the traditional method of filing employee data by name, a system that is
strongly preferred by organizations worldwide.
C. It helps HR staff in retrieving information about specific applicants.
D. It helps people arrive at decisions that reflect expert knowledge.
E. It is designed to exclusively meet the needs of the HR department.
A relational database lets a user sort the data by any of the fields. The ability to locate and
combine many categories of data has a multitude of uses in human resource management and
also meets the needs of line managers.

Blooms: Understand
9-82
100. Which of the following refers to a display of a series of HR measures, showing human resource
goals and objectives and the progress toward meeting them?
A. A performance review template
B. A job preview
C. An expert system
D. An HR dashboard
E. A relational database
One of the most creative developments in Human Resource Information Systems (HRIS)
technology is the HR dashboard, a display of a series of HR-related indicators, or measures,

showing human resource goals and objectives and the progress toward meeting them.
Managers with access to the HRIS can look at the HR dashboard for an easy-to-scan review of
HR performance.

Blooms: Remember
9-83
101. The HR department at TIP Consulting uses a human resource information system (HRIS). The
employees of the department can view and track their individual progress as well as the
progress that the department has made using HRIS. The component of the HRIS that enables
this is called a(n) _____.
A. HR banner
B. HR bulletin board
C. HR showcase
D. HR dashboard
E. HR scroll
One of the most creative developments in HRIS technology is the HR dashboard, a display of a
series of HR-related indicators, or measures, showing human resource goals and objectives and
the progress toward meeting them.

Blooms: Apply
9-84
102. Roger, an HR specialist at Maestro Inc., claims that the department is running exceptionally well
because of the HR dashboard. Progress and developments of various tasks are accessed easily
using HRIS technology. Which of the following validates Roger's claim?
A. Roger believes in using traditional methods rather than new age innovations.
B. The HR dashboard can be accessed by employees with little training.
C. The dashboard provides an easy-to-scan review of HR performance on a companywide

basis.
D. The HRIS receives frequent upgrades when there is a sudden increase in data storage.
E. Roger has not taken into account that his team has helped in creating satisfying results.
HR dashboard is a display of a series of HR-related indicators, or measures, showing human

resource goals and objectives and the progress toward meeting them. Managers with access to
the HRIS can look at the HR dashboard for an easy-to-scan review of HR performance.

Blooms: Analyze
9-85
103. A leading IT firm experiences a major exodus of production employees department to a rival
firm. The firm uses a tool that tracks such movements, which is part of the human resource
information system (HRIS). Which of the following tools will help the firm track such data?
A. Expert system
B. Cloud computing database
C. Decision support system
D. HR dashboard
E. Judge-advisor system
the progress toward meeting them. Managers with access to the HRIS can look at the HR
dashboard for an easy-to-scan review of HR performance.

Blooms: Apply
9-86
104. Which of the following is a vital tool in making confidential HR-related information widely
accessible to authorized users within an organization?
A. A decision support system
B. An expert system
C. An intranet
D. A transactional processing system
E. A judge-advisor system
More and more organizations are engaging in e-HRM, providing HR-related information over
the Internet. Because much human resource information is confidential, organizations may do
this with an intranet, which uses Internet technology but allows access only to authorized users
(such as the organization's employees).

Blooms: Remember
9-87
105. Which of the following exemplifies one of the most creative developments in human resource
information systems technology?
A. Decision support system
B. Transactional processing system
C. HR dashboard
D. Expert system
E. Intranet
the progress toward meeting them.

Blooms: Understand
9-88
106. Most human resource information is confidential, so organizations engaging in e-HRM:
A. continuously limit the amount and type of information made available to company
personnel.
B. increasingly place company-specific information on a secure intranet with links to resources
on the broader Internet.
C. consolidate information into a single file and limit access to the database to top-level
personnel within the company.
D. do not favor of knowledge sharing within the organization.
E. encourage employees to restrict the use of intranet.
More and more organizations are engaging in e-HRM, providing HR-related information over
the Internet. Because much human resource information is confidential, organizations may do
this with an intranet, which uses Internet technology but allows access only to authorized users
(such as the organization's employees).

Blooms: Understand
9-89
107. Identify the correct statement regarding e-HRM.
A. Most administrative and information-gathering HRM activities can be part of e-HRM.
B. E-HRM is less economical than traditional HR systems.
C. E-HRM has adversely affected employee manageability.
D. The number of organizations actively engaged in e-HRM is steadily decreasing.
E. A major drawback of e-HRM is that employees cannot help themselves to the information
they need when they need it.
Most administrative and information-gathering activities in human resource management can
be part of e-HRM.

Blooms: Understand
9-90
108. Which of the following statements accurately characterizes e-HRM?
A. It requires employees to contact an HR staff person when they need information.
B. It poses new challenges to employees and new issues for HR managers to address.
C. It is less economical compared to traditional HR systems.
D. It has unfavorable effects on employee manageability.
E. It excludes information-gathering activities of human resource management.
As Internet use has increasingly taken the form of social-media applications, e-HRM has moved
in this direction as well. Generally speaking, social media bring networks of people together to
collaborate on projects, solve problems, or socialize.

Blooms: Understand
9-91
109. WingDing Inc. is a popular retailer with outlets in more than 30 cities in the United States. After
a recent expansion during which it opened an additional 15 outlets, it was looking to expand its
IT infrastructure to accommodate growing data needs. The IT department decided against
increasing the capacity of the company's servers. Instead, the team used a third-party hosting
service for its data storage needs and for running its applications. The employees at the
megastore were allowed access to this information through a web interface. In this scenario,
WingDing is employing _____.
A. management information systems
B. relational database management
C. cloud computing
D. analytical processing
E. decision support systems
Cloud computing involves using a network of remote servers hosted on the Internet to store,
manage, and process data. These services are offered by data centers around the world (and
not within an organization's offices) and are collectively called "the cloud." In this scenario,
WingDing Inc. is making use of cloud computing.

Blooms: Apply
9-92
110. Alamos Inc. has extensively made use of the technology called cloud computing for several
functions of its HR department. This technology has helped manage department functions,
store necessary data, and also has given employees access to the required databases to resolve
customer queries and complaints. Which of the following, if true, would disrupt the services
provided by this arrangement?
A. Internet access in the facility is intermittent for three hours every day.
B. An updated version of the cloud is available with more features.
C. Many other companies are making use of this device to store and manage data.
D. The data stored can be subject to cyber crimes.
E. The technology automatically blocks access to those who do not have required credentials.
Cloud computing involves using a network of remote servers hosted on the Internet to store,
manage, and process data. These services offer the ability to access information that's delivered
on demand from any device, anywhere, at any time. Intermittent Internet access would disrupt
the services provided by a cloud computing arrangement.

Blooms: Analyze
9-93
111. In the context of an organization's human resource division, which of the following statements
is true of customers?
A. They refer specifically to the organization's shareholders.
B. They refer specifically to the organization's offshore clients.
C. They usually refer to the top management.
D. They refer to the organization as a whole and its other divisions.
E. They refer to the labor law enforcement agencies.

other divisions.

Blooms: Remember
9-94
112. The HR department meets the needs of line managers by:
A. providing qualified staffing.
B. assisting in performance management.
C. designing a rewards system.
D. providing training and development.
E. enforcing labor law regulations.
other divisions. The HR department meets the needs of line managers by providing them with
qualified staff.

Blooms: Understand
9-95
113. Which of the following is a way in which the HR department meets the needs of strategic
planners?
A. They provide them qualified staffing.
B. They aid in performance management.
C. They introduce rewards systems.
D. They provide training and development.
E. They enforce labor law regulations.

other divisions. The HR department meets the needs of strategic planners through performance
management.

Blooms: Understand
9-96
114. The HR department of an organization can meet the needs of employees by:
A. providing qualified staffing.
B. conducting performance management.
C. hiring people with niche skills.
D. providing training and development.
E. enforcing labor law regulations.
other divisions. The HR department meets the needs of employees through designing a
rewards system and by providing opportunities for training and development.

Blooms: Understand
9-97
115. A formal review of the outcomes of HRM functions, based on identifying key HRM functions
and measures of business performance, is referred to as a(n) _____.
A. balanced scorecard
B. profit-and-loss statement
C. evidence-based HRM
D. job description
E. HRM audit
An HRM audit is a formal review of the outcomes of HRM functions, based on identifying key
HRM functions and measures of business performance.

Blooms: Remember
116. The primary focus of an HRM audit is based on:
A. motivating customers.
B. estimating the costs of implementing an HR practice.
C. reviewing the various outcomes of HRM functions.
D. determining the dollar value of the HRM program.
E. determining the legality of HR practices.
An HRM audit is a formal review of the outcomes of HRM functions, based on identifying key
HRM functions and measures of business performance.
9-98
Blooms: Remember
117. Identify a HRM function from the following functions.
A. Production
B. Appraisal
C. Export
D. Import
E. Copyright protection
HRM functions include: staffing, compensation, benefits, training, appraisal and development,
and overall effectiveness. Refer to Table 9.3.

Blooms: Remember
9-99
118. In the context of an HRM audit, ratio of acceptance to offers made primarily serves as a
business indicator for _____ activities.
A. employee development
B. appraisal
C. training
D. compensation
E. staffing
Business indicators for staffing activities include the ratios of acceptances to offers made, per
capita requirement costs, etc. Refer to Table 9.3.

Blooms: Remember
9-100
119. The HR department of a firm identifies the per capita requirement costs in its annual audit. It
also calculates the average number of days taken to fill open positions at the firm. The data
gathered were used as business indicators in the audit. The business indicators are most likely
to measure the performance of the _____ activity of the firm.
A. training
B. employee appraisal
C. employee development
D. compensation
E. staffing
Business indicators for staffing activities include the ratios of acceptances to offers made, per
capita requirement costs, etc. Refer to Table 9.3.

Blooms: Apply
9-101
120. Which of the following is a measure of customer satisfaction that indicates the success of the
staffing efforts of an HR department?
A. Treatment of applicants
B. Average years of experience or education of hires per job family
C. Average days taken to fill open requisitions
D. Ratio of acceptances to offers made
E. Ratio of minority or women applicants to representation in local labor market
The treatment of applicants, skill in handling terminations, and also anticipation of personnel
needs are customer satisfaction measures that indicate the success of staffing activities. Refer to
Table 9.3.

Blooms: Remember
9-102
121. Which of the following is a business indicator of the success of the compensation system
designed by the HR department of an organization?
A. Competitiveness in the local labor market
B. Ratio of average salary offers to average salary in community
C. Relationship between pay and performance
D. Employee satisfaction with pay
E. Fairness of existing job evaluation system in assigning grades and salaries
Business indicators for the success of a compensation system include the ratios of average
salary offers to average salary in community. Refer to Table 9.3.

Blooms: Remember
9-103
122. Which of the following is a customer satisfaction measure that indicates the success of the
compensation system designed by the HR department of an organization?
A. Competitiveness in local labor market
B. Ratio of average salary offers to average salary in community
C. Per capita (average) merit increases
D. Percentage of overtime hours to straight time
E. Ratio of recommendations for reclassification to number of employees
Customer satisfaction measures for the success of a compensation system include
competitiveness in the local labor market. Refer to Table 9.3.

Blooms: Remember
9-104
123. Which of the following is a business indicator of the success of the training programs
implemented by the HR department of an organization?
A. The extent to which training programs meet the needs of employees and the company
B. Training dollars per employee
C. Communication to employees about available training opportunities
D. Assistance in identifying management potential
E. Quality of introduction or orientation programs
Business indicators for the success of a training system include training dollars per employee.
Refer to Table 9.3.

Blooms: Remember
9-105
124. While conducting an HRM audit, which of the following will serve as an important customer
satisfaction measure in assessing the success of training programs conducted by HR?
A. Percentage of employees participating in training programs per job family
B. Percentage of employees receiving tuition refunds
D. Training dollars per employee
E. Quality of introduction or orientation programs
Customer satisfaction measures for the success of a training system include quality of
introduction or orientation programs. Refer to Table 9.3.

Blooms: Remember
9-106
125. To determine the outcomes of the HR functions at Vesco International, several top-level
managers suggest conducting a formal review of the HR department to evaluate its functions.
The CEO approves the implementation of this suggestion. In this scenario, which of the
following ways to measure the effectiveness of human resource management is Vesco

practicing?
A. HRM functions
B. HRM audit
C. HRM analytics
D. HRM programs
E. HRM activities
customer satisfaction that would indicate each function is succeeding. In this scenario, Vesco
International Inc. is making use of an HRM audit to measure the effectiveness of the
department.

Blooms: Apply
9-107
126. Which of the following is a measure of customer satisfaction that indicates the success of the
benefits programs implemented by the HR department of an organization?
A. Promptness in handling claims
B. Average unemployment compensation payment
D. Benefit cost per payroll dollar
E. Percentage of sick leave to total pay
Customer satisfaction measures for the success of a benefits program include promptness in
handling claims. Refer to Table 9.3.

Blooms: Remember
9-108
127. In the context of an HRM audit, average unemployment compensation payment primarily
serves as a vital business indicator for activities related to _____.
A. staffing
B. training
C. employee appraisals
D. benefits
E. recruitment
Business indicators for the success of a benefits program include average unemployment
compensation payment (UCP). Refer to Table 9.3.

Blooms: Remember
9-109
128. Which of the following is a business indicator of the success of the employee appraisal and
development programs implemented by the HR department of an organization?
A. Assistance in identifying management potential
B. Organizational development activities provided by HRM department
C. Accuracy and clarity of information provided to managers and employees
D. Quality of introduction or orientation programs
E. Distribution of performance appraisal ratings
The business indicators for the success of employee appraisal and development programs
include evaluating the distribution of performance appraisal ratings. Refer to Table 9.3.

Blooms: Remember
9-110
129. Which of the following is a customer satisfaction measure of the overall effectiveness of HR
activities?
A. Ratio of personnel staff to employee population
B. Percentage of employees receiving tuition refunds
D. Working relationship between organizations and HRM department
E. Turnover rate
Customer satisfaction measures for the overall effectiveness of HR activities include evaluating
the working relationship between organizations and HRM department. Refer to Table 9.3.

Blooms: Remember
130. A business indicator of the overall effectiveness of HR activities includes:
A. ratio of personnel staff to employee population.
B. accuracy and clarity of information provided to managers and employees.
C. competence and expertise of staff.
D. working relationship between organizations and HRM department.
E. assistance in identifying management potential.
Business indicators for the overall effectiveness of HR activities include considering the ratio of
personnel staff to employee population. Refer to Table 9.3.
9-111
Blooms: Remember
131. The use of HR analytics involves measuring a program's success in terms of whether it:
A. adopted a pro-innovation approach.
B. was perceived as effective by external stakeholders.
C. sustained the status quo.
D. delivered value in an economic sense.
E. enjoyed the support of trade unions.
The analysis of the effect of HR programs can take an economic approach that measures the
dollar value of the program's costs and benefits. Successful programs should deliver value that
is greater than the programs' costs.

Blooms: Understand
9-112
132. Maridings Inc., an apparel manufacturer, employed a large-scale recruitment drive to hire some
of the country's best fashion designers. The company's HR team was responsible for measuring
the success of this recruitment drive to quantify its returns. This process is referred to as _____.
A. HR report
B. HR audit
C. HR analytics
D. HR statistics
E. HR scoping
The process of HR analytics involves measuring a program's success in terms of whether it

achieved its objectives and whether it delivered value in an economic sense.

Blooms: Apply
9-113
133. In general, HR departments should be able to improve their performance through some
combination of greater efficiency and greater effectiveness. In this context, greater efficiency
means the HR department:
A. has a relatively limited influence over employee performance.
B. uses fewer and less-costly resources to perform its functions.
C. expends lavishly on resources.
D. has a more beneficial effect on the organization's performance.
E. ensures that all operations are legal.
In general, HR departments should be able to improve their performance through some

combination of greater efficiency and greater effectiveness. Greater efficiency means the HR
department uses fewer and less-costly resources to perform its functions.

Blooms: Understand
9-114
134. In general, HR departments should be able to improve their performance through some
combination of greater efficiency and greater effectiveness. In this context, greater effectiveness
means that:
A. the rate of employee turnover is considerably high.
B. the HR personnel use fewer and less-costly resources to perform its functions.
C. the average employee compensation in the organization is well above the prevailing market
rate.
D. what the HR department does has a more beneficial effect on employees' and the
organization's performance.
E. there is a relatively narrow gap between the highest and the lowest salaries paid in the
organization.
combination of greater efficiency and greater effectiveness. Greater effectiveness means that
what the HR department does—for example, selecting employees or setting up a performance
management system—has a more beneficial effect on employees' and the organization's
performance.

Blooms: Understand
Essay Questions
9-115
135. What is a high-performance work system? Explain the different elements of a high-performance
work system. What is the role of HRM in such a system?
A high-performance work system is the right combination of people, technology, and

organizational structure that makes full use of an organization's resources and opportunities in
achieving its goals.
Common elements of such a system include (1) organizational structure, (2) task design, (3)
people, (4) reward systems, and (5) information systems. Human resource management plays
an important role in establishing all of these.
(1) Organizational structure refers to the way the organization groups its people into divisions,
departments, and reporting relationships. The organization's top management makes most
decisions about structure, and these decisions affect how well employees coordinate their
activities and respond to change. In a high-performance work system, organizational structure
promotes cooperation, learning, and continuous improvement.
(2) Task design involves determining how the details of the organization's activities will be
grouped into jobs or team responsibilities. In a high-performance work system, task design
makes jobs efficient while encouraging high quality.

(3) HRM plays a significant role in providing people who are well suited and well prepared for
their jobs. Human resource personnel help the organization recruit and select people with the
needed qualifications. Training, development, and career management ensure that these
people are able to perform their current and future jobs with the organization.
(4) Reward systems contribute to high performance by encouraging people to strive for
objectives that support the organization's overall goals. These systems include the performance
incentive pay and other rewards linked to success. HRM plays an important role in developing
and administering reward systems.
(5) The final element is the organization's information systems. Managers make decisions about
the types of information to gather and the sources of information. They also must decide who
in the organization should have access to the information and how they will make the
information available. HR departments take advantage of this technology to give employees
9-116
access to information about benefits, training opportunities, job openings, and more.

Blooms: Remember
136. Discuss the various outcomes of a high-performance work system.
Outcomes of a high-performance work system include higher productivity and efficiency. These
outcomes contribute to higher profits. A high-performance work system may have other
outcomes, including high product quality, great customer satisfaction, and low employee
turnover. Some of these outcomes meet intermediate goals that lead to higher profits. For
example, high quality contributes to customer satisfaction, and customer satisfaction
contributes to growth of the business. Likewise, improving productivity lets the organization do
more with less, which satisfies price-conscious customers and may help the organization win
over customers from its competitors. Other ways to lower cost and improve quality are to
reduce absenteeism and turnover, providing the organization with a steady supply of
experienced workers. In a high-performance work system, the outcomes of each employee and
work group contribute to the system's overall high performance. The organization's individuals
and groups work efficiently, provide high-quality goods and services, and so on, and in this
way, they contribute to meeting the organization's goals. When the organization adds or
changes goals, people are flexible and make changes as needed to meet the new goals.

Blooms: Understand
9-117
137. List the conditions that contribute to the formation of a high-performance work system.
Certain conditions underlie the formation of a high-performance work system:
1) Teams perform work.

2) Employees participate in selection.
3) Employees receive formal performance feedback and are actively involved in the
performance improvement process.

4) Ongoing training is emphasized and rewarded.
5) Employees' rewards and compensation relate to the company's financial performance.
6) Equipment and work processes are structured, and technology is used to encourage
maximum flexibility and interaction among employees.
7) Employees participate in planning changes in equipment, layout, and work methods.
8) Work design allows employees to use a variety of skills.
9) Employees understand how their jobs contribute to the finished product or service.
10) Ethical behavior is encouraged.

Blooms: Remember
9-118
138. What is a learning organization? What are its key features?
A learning organization refers to an organization that supports lifelong learning by enabling all
employees to acquire and share knowledge.
It has the following key features:
1) It engages in continuous learning, each employee's and each group's ongoing efforts to
gather information and apply the information to their decisions.

2) Knowledge is shared.
3) Critical, systematic thinking is widespread.
4) The organization has a learning culture—a culture in which learning is rewarded, promoted,
and supported by managers and organizational objectives.
5) Employees are valued.

Blooms: Remember
9-119
139. What is occupational intimacy? Explain.
Some organizations are moving beyond concern with mere job satisfaction and are trying to
foster employees' passion for their work. Passionate people are fully engaged with something
so that it becomes part of their sense of who they are. Feeling this way about one's work has
been called occupational intimacy. People experience occupational intimacy when they love
their work, when they and their co-workers care about one another, and when they find their
work meaningful. Human resource managers have a significant role in creating these
conditions. For example, they can select people who care about their work and customers,
provide methods for sharing knowledge, design work to make jobs interesting, and establish
policies and programs that show concern for employees' needs. Such efforts may become
increasingly important as the business world increasingly uses employee empowerment,
teamwork, and knowledge sharing to build flexible organizations.

Blooms: Understand
9-120
140. Discuss how recruitment and selection practices contribute to high performance in an
organization.
At a high-performance organization, recruitment and selection aim at obtaining the kinds of

employees who can thrive in this type of setting. These employees are enthusiastic about and
able to contribute to teamwork, empowerment, and knowledge sharing. Qualities such as
creativity and ability to cooperate as part of a team may play a large role in selection decisions.

Blooms: Understand
9-121
141. What are the guidelines that describe how to make the performance management system
support organizational goals?
The following guidelines describe how to make the performance management system support
organizational goals:
1) Define and measure performance in precise terms: Focus on outcomes that can be defined in
terms of how frequently certain behaviors occur. Include criteria that describe ways employees
can add value to a product or service (such as through quantity, quality, or timeliness). Include
behaviors that go beyond the minimum required to perform a job (such as helping co-workers).
2) Link performance measures to meeting customer needs: "Customers" may be the

organization's external customers, or they may be internal customers (employees receiving
services from a co-worker). Service goals for internal customers should be related to satisfying
external customers.
3) Measure and correct for the effect of situational constraints: Monitor economic conditions,
the organization's culture, and other influences on performance. Measures of employees'
performance should take these influences into account.

Blooms: Remember
9-122
142. Describe an HR dashboard.
the progress toward meeting them. Managers with access to the HRIS can look at the HR
dashboard for an easy-to-scan review of HR performance.

Blooms: Remember
143. What is an HRM audit?
customer satisfaction that would indicate each function is succeeding. These functions could
include staffing, compensation, benefits, training, appraisal and development, and overall
effectiveness. After identifying performance measures for the audit, the staff carries out the
audit by gathering information. The information for the key business indicators is usually
available in the organization's documents. However, sometimes the HR department has to
create new documents for gathering specific types of data.

Blooms: Remember
9-123
144. How can HR departments improve their performance?

combination of greater efficiency and greater effectiveness. Greater efficiency means the HR
department uses fewer and less-costly resources to perform its functions. Greater effectiveness
means that what the HR department does—for example, selecting employees or setting up a
performance management system—has a more beneficial effect on employees' and the

organization's performance.

Blooms: Remember
9-124

TBChap009, Creating and Maintaining High-Performance Organizations

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TBChap009, Creating and Maintaining High-Performance Organizations

Uploaded by

Copyright:

Available Formats

Chapter 09 Creating and Maintaining High-Performance Organizations

True / False Questions

1. Creating a high-performance work system is similar to traditional management practices

Creating a high-performance work system contrasts with traditional management practices. In

on how well all elements work together.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

are judged and the methods of measuring performance.

incentive pay and other rewards linked to success.

AACSB: Analytical Thinking

Outcomes of a high-performance work system include higher productivity and efficiency. A

AACSB: Analytical Thinking

goods or provide services.

AACSB: Analytical Thinking

and sharing knowledge.

AACSB: Analytical Thinking

7. A condition underpinning any high-performance organization is that employees be fully

A condition underpinning any high-performance organization is that employees be fully

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

Performance management, ensures that employees' work contributes to achieving the

organization's goals, managers need to understand the process of employee performance.

AACSB: Analytical Thinking

should take these influences into account.

AACSB: Analytical Thinking

Compensation supports high-performance organizations when it is linked in part to

AACSB: Analytical Thinking

Transaction processing refers to computations and calculations involved in reviewing and

AACSB: Analytical Thinking

AACSB: Analytical Thinking

These common elements are fields identifying the type of data.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

Most administrative and information-gathering activities in human resource management can

AACSB: Analytical Thinking

AACSB: Analytical Thinking

21. An HRM audit is a formal review of the outcomes of HRM functions.

customer satisfaction that would indicate each function is succeeding.

AACSB: Analytical Thinking

Training dollars per employee is a business indicator of the success of an HR department's

AACSB: Analytical Thinking

experiments in controlled environments.

AACSB: Analytical Thinking

whether it delivered value in an economic sense.

AACSB: Analytical Thinking

AACSB: Analytical Thinking

C. It is a computer software system that is designed to help managers solve problems by

E. It refers to a performance management system that measures customer satisfaction.

AACSB: Analytical Thinking

A. Creating a high-performance work system is akin to using traditional management

B. To function as a high-performance work system, people, technology, and organizational

structure must be completely independent of one another.

C. To develop a high-performance work system, organizations need to determine what kinds

D. A high-performance work system usually excludes reward systems.

long-term financial performance.

To function as a high-performance work system, each of the elements—people, technology,

AACSB: Analytical Thinking

departments, and reporting relationships.

AACSB: Analytical Thinking

AACSB: Analytical Thinking