Chapter 1: Human Resource Management: Gaining a Competitive Advantage

As part of today's job culture new employees are assigned mentors who guide the new employee through on-the-job training as well as the culture of the company. This is known as ________ capital. A)social B)customer C)human D)intellectual E)financial

A)social

Which of the following HR competencies focuses on the ability to apply the principles of HR management to contribute to the success of a business? A)relationship management B)HR technical expertise C)organizational navigation D)ethical practice E)consultation

B)HR technical expertise

Which of the following is true of a balanced scorecard? A)It indicates the value of a company based on its competitive demands. B)It depicts a company from the perspective of internal and external customers. C)It measures a company's performance based on the business strategy adopted by it. D)It should not be used to link HRM activities and a company's business strategy. E)It guides companies to increase the time spent on new product and service development.

B)It depicts a company from the perspective of internal and external customers.

Which of the following statements is true about the Sarbanes-Oxley Act of 2002? A)In case of noncompliance, it limits charges to heavy fines; it does not include prison terms for executives. B)Organizations spend millions of dollars each year to comply with regulations under the Sarbanes-Oxley Act. C)It imposes no criminal penalty for corporate governing and accounting lapses. D)Retaliation against whistle-blowers is not included as a violation under the law. E)It was passed in response to illegal and unethical behavior by employees toward the management.

B)Organizations spend millions of dollars each year to comply with regulations under the Sarbanes-Oxley Act.

Rachel, who is responsible for ________, deals with record keeping, workforce analytics, social media, intranet and Internet access. A)legal compliance B)employee data and information systems C)business strategy support D)performance management E)analysis and design of work

B)employee data and information systems

In a(n) ________, improvements in product or service quality do not stop when formal training is completed. A)shared services model B)learning organization C)evidence-based organization D)performance management model E)self-service model

B)learning organization

Which of the following dimensions of HRM practices involves ensuring that HRM practices comply with federal, state, and local laws? A)vision and mission of human resources B)managing the human resource environment C)acquiring and preparing human resources D)compensating human resources E)assessment and development of human resources

B)managing the human resource environment

Which of the following argument states that insight and cultural sensitivity that diverse employees bring to the marketing effort should help the company enter new markets and develop products and services for diverse populations. A)system flexibility argument B)marketing argument C)employee attraction and retention argument D)problem-solving argument E)creativity argument

B)marketing argument

Often someone new to HR will be assigned to the ________ HR department to manage employee data and information systems functions. A)job analysis and description B)record keeping and workforce analytics C)attitude surveys and labor law compliance D)orientation and skills training E)talent and change management

B)record keeping and workforce analytics

When Simone responded to Nathan's email about how to find information on benefits and compensation, Simone was providing A)performance management. B)self-service. C)employee engagement. D)talent management. E)shared service.

B)self-service.

________ is a companywide effort to continuously improve the ways people, machines, and systems accomplish work. A)The Six Sigma process B)Total quality management C)Quality control D)The process decision program E)The activity network

D)The process decision program

Which of the following activities is part of the assessment and development of the human resources dimension of HRM practices? A)training employees to have the skills needed to perform their jobs B)identifying human resource requirements C)ensuring that HRM practices comply with federal, state, and local laws D)creating an employment relationship and a work environment that benefit the company E)creating pay systems as well as providing employees with benefits

D)creating an employment relationship and a work environment that benefit the company

Cesar was being recruited by a competitor due to his success at his current company in getting several new patents. This is an example of ________ capital. A)social B)customer C)human D)intellectual E)financial

D)intellectual

Which of the following arguments states that heterogeneity in decisions potentially produces better decisions through a wider range of perspectives and critical analysis? A)system flexibility argument B)marketing argument C)employee attraction argument D)problem-solving argument E)creativity argument

D)problem-solving argument

Which of the following is true of workforce analytics? A)It relies on qualitative measures to evaluate employer performance. B)It collects and analyzes information only from external databases. C)It does not aid in evidence-based human resource decisions. D)It does not include information from HR databases and financial reports. E)It can show that HR practices influence an organization's profits.

E)It can show that HR practices influence an organization's profits.

Which of the following is true about the product line administrative services and transactions? A)It deals with implementation of business plans and talent management. B)It emphasizes knowing the business and exercising influence. C)It emphasizes the knowledge of HR and of the business and competition. D)It contributes to the business strategy based on considerations of business capabilities. E)It deals with functions such as compensation, hiring, and staffing.

E)It deals with functions such as compensation, hiring, and staffing.

Which of the following people would be categorized as part of the external labor market with regard to Jos Air Filtration? A)Desiree, who works for Jos Air Filtration as a full-time employee B)Tanisha, who works for Jos Air Filtration and is looking for a new job C)Wang, who is an employee at a direct competitor of Jos Air Filtration and is not looking for a new job D)Carlos, who is unemployed and not looking for employment E)Kelban, who works for GoodAir Inc. and is seeking employment elsewhere

E)Kelban, who works for GoodAir Inc. and is seeking employment elsewhere

With technology constantly changing and employers attempting to keep talented employees away from their competition, which legal issue may be on the rise in the United States? A)Workplace safety will receive less attention. B)HR professionals will work independently without legal counsel. C)There will be no penalty for not providing health care coverage. D)Reporting and inspection requirements will decrease. E)Security of intellectual property will receive more attention.

E)Security of intellectual property will receive more attention.

Which of the following is a prediction about legal issues regarding employment in the United States? A)The emphasis on eliminating discrimination is likely to end. B)The focus will turn away from preemployment tests. C)There will be less focus on criminal background screening. D)There are likely to be fewer challenges to race discrimination. E)There will be less emphasis on discrimination against veterans.

E)There will be less emphasis on discrimination against veterans.

Which of the following arguments states that diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of resourcefulness? A)system flexibility argument B)marketing argument C)employee attraction and retention argument D)problem-solving argument E)creativity argument

E)creativity argument

Which competency is an HR professional said to have if he is able to act personally and professionally with integrity and accountability? A)critical evaluation B)consultation C)business acumen D)communication E)ethical practice

E)ethical practice

According to emerging changes in the employment relationship, which of the following benefits do employees typically not expect to be provided by employers? A)flexible work schedules B)comfortable working conditions C)more autonomy D)employability E)job security

E)job security

A company competes for the Malcolm Baldrige National Quality Award. If it is evaluated based on how senior executives create and sustain vision, values, and mission, it is likely that the company is being judged on the criterion of A)strategic planning. B)workforce focus. C)customer and market focus. D)operation focus. E)leadership.

E)leadership.

In high-performance work systems, A)previously established boundaries between employees and customers remain intact. B)managers and employees work together, while vendors and suppliers work independently. C)line employees are trained to specialize in individual tasks. D)employees do not communicate directly with suppliers and customers. E)line employees interact frequently with quality experts and engineers

E)line employees interact frequently with quality experts and engineers

Many companies today are having to redo their personnel policies to address the issue of social networking. This is due to a fear of A)suppressed knowledge sharing. B)creation of online expert communities. C)loss of expert knowledge. D)no sharing of best practices. E)lower productivity.

E)lower productivity.

HR Resources, Inc. provides HR services to small companies that do not need full-time HR. Contracting with HR Resources is known as A)e-commerce. B)reshoring. C)downsizing. D)benchmarking. E)outsourcing.

E)outsourcing.

Jamal was hired recently by his firm to provide coaching to a work unit that is underperforming. This is part of the ________ function of HR. A)recruitment and selection B)compensation and benefits C)employee relations D)personnel policies E)performance management

E)performance management

A company competing through sustainability is likely to A)place increased value on tangible assets. B)avoid social and environmental responsibilities. C)emphasize productivity more than quality. D)adapt badly to changes in the labor force. E)provide high-quality products and services.

E)provide high-quality products and services.

True or False: The amount of time that the HRM function devotes to administrative tasks is decreasing, and its role as a strategic business partner is increasing.

True

________ should be used to link a company's human resource management activities to the company's business strategy. A)The balanced scorecard B)Social responsibility C)Evidence-based HR D)Performance management E)Sustainability

A)The balanced scorecard

How does employees' use of mobile devices offer an advantage to companies? A)Companies do not need to lease storage space in the cloud. B)Employees have access to work information at any time or location. C)Companies can decrease spending on desktop computers and software. D)The devices facilitate automation of key HR and business practices. E)It minimizes social networking by employees during business hours.

B)Employees have access to work information at any time or location

________ refers to the policies, practices, and systems that influence employees' behavior, attitudes, and performance. A)Total quality management B)Financial management C)Human resource management D)Production and operations management E)Competency management

C)Human resource management

Which of the following is true of virtual teams? A)They are typically situated in the same location. B)They usually work in the same time zone. C)They can work well without relying on technology. D)They do not include partnership with competitors. E)They combine top talent to solve tough challenges.

E)They combine top talent to solve tough challenges.

True or False: Companies have historically looked at HRM as a means to contribute to profitability and quality

False

True or False: Lean is a new way to envision the work. Projects using lean methodology emphasize only new skills to improve and do not encourage the use of old skills in new ways.

False

True or False: Senior Living Co. has contracted with Truck to Go for relocation services. This type of practice is not the norm for outsourcing

False

True or False: The three product lines of HR as a business are administrative services and transactions, business partner services, and strategic partner roles

True

True or False: To be effective, balanced scorecards must be customized by companies to fit different market situations, products, and competitive environments.

True

________ tools can help prevent the loss of expert knowledge that occurs due to retirement. A)Automation B)Workplace analytics C)Social networking D)High performance work system E)Work design

C)Social networking

Pay structure and benefits are a part of the ________ function of HR. A)recruiting B)training C)development D)compensation E)assessment

D)compensation

________ maximize(s) the fit between the company's social system (employees) and its technical system. A) Virtual teams B) Performance management C) Work design D) Employee training E) High performance work systems

E) High performance work systems

True or False: As part of updating the HR resources available to employees and managers, Alban Co. creates an intranet of useful materials that include performance evaluation metrics. This is an example of an HR dashboard.

True

Distribution channels are an example of ________ capital. A)social B)customer C)human D)intellectual E)financial

B)customer

Over the next decade, which of the following people will have the most difficulty attracting talented employees due to a skills deficit? A)Wanda, the owner of several restaurants B)Roberto, the HR manager for a biotech research firm C)Sarita, the director of a mobile advertising company D)Francesca, the HR director for a foodservice company E)Ethan, the owner of a large cattle farm

C)Sarita, the director of a mobile advertising company

Traditionally, the HRM department was primarily a(n) A)proactive agency. B)finance expert. C)employer advocate. D)administrative expert. E)payroll expert.

D)administrative expert.

Which of the following is the objective of the Six Sigma process? A)It focuses on the end product of employee satisfaction. B)It terminates once the processes have been brought within the Six Sigma standards. C)It strives to attain quality through supervision of daily work, not through training. D)It discourages employees from lean thinking. E)It aims to create a total business focus on serving the customer.

E)It aims to create a total business focus on serving the customer.

Which of the following is true of how different generations view each other? A)Millennials may think Generation X managers are good delegators. B)Generation X managers may think that Millennials lack self-confidence. C)Millennials might believe that Baby Boomers do not comply with company rules. D)Traditionalists may believe that Millennials don't have a strong work ethic. E)Baby Boomers may consider Millennials to be technologically illiterate.

D)Traditionalists may believe that Millennials don't have a strong work ethic.

Which of the following arguments emphasizes that it's critical to integrate workers as organization become more diverse? A)cost argument B)marketing argument C)employee attraction and retention argument D)problem-solving argument E)creativity argument

A)cost argument

Which of the following HR competencies focuses on the ability to manage interactions with and between others with the specific goal of providing service and organizational success? A)relationship management B)HR technical expertise C)organizational navigation D)ethical practice E)business acumen

A)relationship management

Since the baby boomers are getting closer to retirement, A)the U.S. workforce is predicted to decrease in age. B)college graduates will have a harder time finding entry-level jobs. C)the U.S. workforce is predicted to increase in age. D)their productivity will probably decrease. E)the need for continuing education will decrease.

A)the U.S. workforce is predicted to decrease in age.

Which of the following HRM practices involves helping employees understand how their jobs contribute to the finished product? A)work design B)performance management C)training D)staffing E)compensation

A)work design

The ________ imposes criminal penalties for corporate governing and accounting lapses. A)Fair Labor Standards Act B)Sarbanes-Oxley Act C)Equal Employment Opportunity Commission D)Dodd-Frank Act E)Whistleblower Protection Act

B)Sarbanes-Oxley Act

Sampson Lighting was struggling to make a quality product and meet its payroll. The costs for labor were too high. They visited several countries and then decided to move the production side of the business. This is called A)insourcing. B)offshoring. C)reshoring. D)onshoring. E)homesourcing.

B)offshoring.

The training and development function of an HR department includes A)job analysis. B)orientation. C)performance measures. D)attitude surveys. E)policy creation.

B)orientation.

Doscent Power provided funds to clean up the production wastes it had pumped into the ground. This shows that the company was recognizing the importance of A)a balanced scorecard approach. B)performance management. C)total quality management. D)social responsibility. E)cultural responsibility.

B)performance management.

Which of the following HRM practices involves peer interviews? A)work design B)staffing C)training D)performance management E)compensation

B)staffing

Which of the following statements is true about Generation X? A)It includes people who were born between 1925 and 1945. B)Its members grew up much before the personal computer was invented. C)Its members value skepticism and informality. D)It is called the "me" generation. E)Its members prefer close supervision and has a lot of patience.

C)Its members value skepticism and informality.

Which of the following acts sets strict rules for businesses, especially for accounting practices that require more open and consistent disclosure of financial data and CEOs' assurance that the data is completely accurate? A)Gramm-Leach-Bliley Act B)Glass-Steagall Act C)Sarbanes-Oxley Act D)Dodd-Frank Act E)McCarran-Ferguson Act

C)Sarbanes-Oxley Act

________ is a systematic, planned strategic effort by a company to attract, retain, develop, and motivate highly skilled employees and managers. A)Performance appraisal B)Workforce analytics C)Talent management D)Training and development E)Employee engagement

C)Talent management

Which of the following is one of the four characteristics of an ethical, successful company? A)The company gets the best deals, even to the detriment of its vendors. B)It has a vision that employees may relate to but cannot use in their day-to-day work. C)The company emphasizes mutual benefits in its relationship with customers, clients, and vendors. D)It works on the belief that one's own interest comes before the interest of others. E)It allows flexibility of ethical norms when the financial stakes involved are very high.

C)The company emphasizes mutual benefits in its relationship with customers, clients, and vendors.

Lionel is evaluated on how well he understands organizational metrics and their relationship to business success. In this case, he is being evaluated on his competency in A)relationship management. B)organizational navigation. C)business acumen. D)business communication. E)ethical practice.

C)business acumen.

Raoul is unsure of which 401K and retirement plan will meet his needs. He should make an appointment to see a counselor who works with A)training and development. B)employee relations. C)compensation benefits. D)employee data and information systems. E)legal compliance.

C)compensation benefits.

Which of the following arguments states that companies develop reputations on favorability as prospective employers for women and ethnic minorities? A)system flexibility argument B)marketing argument C)employee attraction argument D)problem-solving argument E)creativity argument

C)employee attraction argument

When a corporate organization competes through globalization, as opposed to technology, it is likely to put most of its efforts into A)social responsibility. B)environmental issues. C)expansion into foreign markets. D)development of HR dashboards. E)integration of technology and social systems

C)expansion into foreign markets.

When an HR professional is evaluated on how well she embraces inclusion and how effectively she works with diverse populations, she is being evaluated on her competency in A)organizational navigation. B)HR technical expertise and practice. C)global and cultural effectiveness. D)business acumen. E)critical evaluation.

C)global and cultural effectiveness.

As part of Curt's small business loan application, he has to demonstrate the "triple bottom line" of economic, social, and environmental benefits. In doing so, his business is seen as A)futuristic. B)corporate. C)sustainable. D)communal. E)profit.

C)sustainable.

Otto, the CEO of a company, appraises his managers based on how well they empower their employees. Which of the following managers is Otto likely to rate the highest in this regard? A)Claire, who gives clear instructions to her subordinates and expects them to follow the orders exactly as given B)Shannon, who asks her subordinates to always check with her before making any decisions C)Yao, who prefers that members of his team always report to him what they do throughout the day D)Meri, who assigns responsibility to her subordinates and intervenes only when there is a need E)Jordan, who assigns complete authority to his subordinates and does not offer any guidance

D)Meri, who assigns responsibility to her subordinates and intervenes only when there is a need

Which of the following is a core value of TQM? A)Methods are designed to meet the needs of external customers, not internal customers. B)A few, select employees in an organization are given training in quality. C)Processes are designed such that errors are detected and corrected immediately after they occur. D)The company promotes cooperation with vendors and customers to hold down costs. E)Managers measure progress with feedback based on qualitative observations.

D)The company promotes cooperation with vendors and customers to hold down costs.

Which of the following statements is true about the composition of the U.S. labor force in the next decade? A)Immigration will cease to affect the size and diversity of the workforce. B)The largest proportion of the labor force is expected to be in the age group of 16-24 years. C)The percentage of highly skilled immigrants will continue to remain lower than the percentage of low-skilled immigrants. D)The median age of the labor force will increase to the highest number ever. E)The high cost of health insurance and a decrease in health benefits will cause many employees to quit working.

D)The median age of the labor force will increase to the highest number ever.

Which of the following is a characteristic of Millennials? A)They are not comfortable with using computers and the Internet. B)They are pessimistic and cynical. C)They have low levels of self-esteem. D)They are eager to learn, work, and please. E)They are not narcissistic.

D)They are eager to learn, work, and please.

The HR department is most likely to collaborate with other company functions on A)legal compliance. B)outplacement. C)record keeping. D)performance management. E)unemployment compensation.

D)performance management.

________ demonstrates that HR practices have a positive influence on the company's bottom line or key stakeholders. A)Shared services B)Performance management C)Workforce management D)Workforce analytics E)Evidence-based HR

E)Evidence-based HR

Which of the following HRM practices involves rewarding employees based on their team's performance? A)work design B)performance management C)training D)staffing E)compensation

E)compensation

O'Donnell & Co. employs the practice of team building and thinking outside the box. They are likely to have ________ compared to a company with low engagement. A)lower retention B)lower empowerment C)poorer customer service D)lower productivity E)lower turnover

E)lower turnover

Bricklaying contractors are unable to find enough bricklayers. A semi-automated mason (SAM) can help perform some, but not all, of the human mason's tasks. This is an example of A)AI streamlining complex tasks. B)technology enhancing a person's job. C)robots eliminating someone's job. D)automation that works in collaboration with humans. E)robots providing skills that are hard to find.

E)robots providing skills that are hard to find.

True or False: Central Services, Inc. is faced with a decision to hire part-time employees or more full-time employees. Management has heard that part-time employee make the job easier to fill but take longer to train. On the other hand, it is easier to terminate full-time employees.

False

True or False: Donlon & Sons Bakery has decided to adopt total quality management (TQM). In doing so, training in quality was offered to only the employees who oversee the ovens and baking.

False

True or False: High-performance work systems minimize the fit between a company's social system (employees) and its technical system.

False

True or False: Intangible assets are less valuable than financial and physical assets, but they are difficult to duplicate or imitate.

False

True or False: When a firm shifts to evidence-based HRM, it should stop using workforce analytics.

False

True or False: Big data used in evidence-based HR gathers information from many different sources.

True

True or False: In exchange for working longer hours without job security, employees want companies to provide flexible work schedules and comfortable working conditions.

True

True or False: When it comes to problem solving, cultural diversity can provide companies with a competitive advantage.

True

True or False: Workers with disabilities can be a source of competitive advantage.

True

Today's workforce is changing. Which of the following is true at companies dealing with older employees? A)Older employees do not want to learn new skills. B)There are no additional increases in benefit or healthcare costs. C)Worker performance will decrease. D)Some employees will choose a working retirement. E)There is no problem with age discrimination.

D)Some employees will choose a working retirement.

When considering a balanced scorecard that depicts a company from a(n) ________ perspective, the critical HR indicators are employee satisfaction with HR department services and employee perceptions of the company as an employer. A)learning B)internal C)financial D)customer E)innovation

D)customer

When a company participates in lean thinking they evaluate current practices to A)do minimal work with highest attention and care for details. B)deliver the best customer service while compromising on volume and quantity. C)create quality products and services using maximum resources. D)do more with less effort, time, space, and equipment. E)discourage training and quality programs.

D)do more with less effort, time, space, and equipment.

An HR dashboard is a series of indicators that A)only HR managers have access to. B)requires communication via an extranet. C)allows the public to understand the HR policies of a company. D)enables workforce analytics and evidence-based HR. E)helps managers hire new employees based on secondary data.

D)enables workforce analytics and evidence-based HR.

Which of the following major dimensions of HRM practices involves training employees to have the skills needed to perform their jobs? A)vision and mission of human resources B)managing the human resource environment C)acquiring and preparing human resources D)compensating human resources E)assessment and development of human resources

C)acquiring and preparing human resources

Typically when a company is in the news, it is because the company failed to be sustainable. Which of the following best describes its failure? A)The company is able to meet the business needs at the cost of environmental responsibilities. B)The company is pursuing economic goals despite social and ethical concerns. C)The company has developed socially responsible strategies at the cost of profits. D)The company is willing to sacrifice the business and other needs to support the needs of its competitors. E)The company is unable to meet the business needs without sacrificing the ability of future generations to meet theirs.

E)The company is unable to meet the business needs without sacrificing the ability of future generations to meet theirs.