HR ch:1

19. Older workers are generally undependable and operate like free agents. a. True b. False

False

1. In general, many companies are realizing a diminished demand for touch labor and an increasing demand for knowledge work. a. True b. False

True

15. Downsizing is often used by organizations for the planned elimination of jobs. a. True b. False

True

20. Educational level is positively related to annual earnings. a. True b. False

True

24. Older workers are often willing to work flexible hours. a. True b. False

True

25. Employees today are less likely to define success in terms of financial gain. a. True b. False

True

76. Globalization has led to _____. a. a new focus on corporate social responsibility b. older workers behaving more like free agents c. a reduction in the number of offshoring options d. a reduction in the number of nearshoring options

a. a new focus on corporate social responsibility

37. The first step in choosing an HRIS is for the HR personnel to: a. evaluate the most time-consuming tasks. b. examine the user-friendliness of the software. c. calculate the cost savings in using an HRIS. d. calculate the time required to train the HR staff.

a. evaluate the most time-consuming tasks.

31. HR managers can establish personal credibility by developing good relationships with people both internal and external to a firm. a. True b. False

True

69. A firm's top _____ manager is in a good position to be the chief ethics officer of the firm. a. HR b. finance c. production d. marketing

a. HR

77. In the context of the competencies required of HR managers, understanding an organization's customers and economic and financial capabilities is part of _____. a. Personal credibility b. HR mastery c. Business mastery d. Change mastery

c. Business mastery

63. Approximately _____ of mothers with school-age children are employed. a. 10 percent b. 30 percent c. 50 percent d. 70 percent

d. 70 percent

75. Globalization stirs fierce debate, especially when it comes to _____. a. equal pay for women b. jobs c. proprietary technology d. information exchange

b. jobs

55. The business practice of sending jobs to other countries is referred to as: a. outplacement. b. offshoring. c. outsourcing. d. employee leasing.

b. offshoring

46. A survey conducted by the Human Resource Planning Society revealed that _____ percent of the responding companies believe that their HR group plays an important role in developing human capital. a. less than 30 b. nearly 50 c. between 30 and 40 d. nearly 65

d. nearly 65

16. Technology, transportation, communications, and utilities industries tend to spend the least on training. a. True b. False

False

18. Corporate social responsibility is the responsibility of an organization to act in the best interests of the people and communities affected by its activities. a. True b. False

True

79. In absolute terms, which country in the world is the most productive? a. Japan b. United States c. Germany d. Sweden

b. United States

57. It is anticipated that in the future, the American workforce will exhibit: a. about the same demographic mix as it does today. b. an increase in ethnic diversity. c. a decrease in ethnic diversity. d. a decrease in the number of older workers.

b. an increase in ethnic diversity.

22. Women now account for slightly more than half of the American workforce. a. True b. False

False

52. Which strategy refers to the planned elimination of jobs? a. Downsizing b. Outsourcing c. Nearshoring d. Reengineering

a. Downsizing

47. About _____ of what Americans produce every year dollar-wise is sold abroad. a. 50 percent b. 30 percent c. 10 percent d. 2 percent

c. 10 percent

53. Approximately _____ of the U.S. economy today is affected by international competition, including small companies. a. 25 to 40 percent b. 50 to 65 percent c. 70 to 85 percent d. 90 to 100 percent

c. 70 to 85 percent

60. In which of the following ways are labor force and its demographics expected to change? a. Minorities will make up a smaller share of the U.S. labor force than they did in the past. b. Women will make up a smaller share of the U.S. labor force than they did in the past. c. By 2050, the labor force participation rate will be only about 59 percent. d. The demand for temporary workers will triple by 2050.

c. By 2050, the labor force participation rate will be only about 59 percent.

42. Millennials are also known as: a. baby boomers. b. Generation X. c. Generation Y. d. screenagers.

c. Generation Y.

38. _____ is closely related to corporate social responsibility. a. Downsizing b. Furloughing c. Sustainability d. Offshoring

c. Sustainability

45. Managers have to find ways to empower employees and encourage their participation and involvement to more fully utilize human capital because: a. employees are required to cut down on administrative costs. b. firms are moving away from team-based structures. c. employee skills often go unused. d. managers want to avoid competing through people.

c. employee skills often go unused.

54. Hiring someone outside the company to perform tasks that could be done internally is known as: a. outplacement. b. contracting. c. outsourcing. d. employee leasing.

c. outsourcing.

39. Organizational changes are said to be _____ when external forces have already affected an organization's performance. a. proactive b. intentional c. reactive d. negative

c. reactive

27. One of the responsibilities of HR managers is to provide advice and counsel to line managers. a. True b. False

True

28. An HR manager is typically expected to function as an in-house consultant to supervisors, managers, and executives. a. True b. False

True

34. The _____ is the first major trade agreement of the twentieth century to establish rules and guidelines for global commerce. a. NAFTA (North American Free Trade Agreement) b. GATT (General Agreement on Tariffs and Trade) c. FTAA (Free Trade Area of the Americas) d. APEC (Asia Pacific Economic Cooperation)

b. GATT (General Agreement on Tariffs and Trade)

64. The use and disclosure of personal medical information is protected by the: a. Privacy Act of 1974. b. Health Insurance Portability and Accountability Act of 1996. c. Electronic Communications Privacy Act of 1986. d. Public Health Service Act of 1944.

b. Health Insurance Portability and Accountability Act of 1996

56. A method of containing costs that allows a professional employer organization (PEO), typically a larger company, to takeover the management of a smaller company's HR tasks and become a coemployer to its employees is known as _____. a. outsourcing b. employee leasing c. furloughing d. nearshoring

b. employee leasing

43. The knowledge, skills, and capabilities of individuals that have a tremendous impact on an organization's performance but do not show up directly on its balance sheet are known as: a. intellectual capital. b. human capital. c. core capital. d. employee capital.

b. human capital.

. _____ requires an understanding of an organization's customers and economic and financial capabilities to help a firm achieve its strategic direction and adjust it as needed. a. Change mastery b. HR mastery c. Business mastery d. Personal credibility

c. Business mastery

36. Which of the following is NOT a primary impact that technology has had on human resources management (HRM)? a. It has altered the methods of collecting employment information. b. It has quickened the processing of employment data. c. It has diminished the role of supervisors in managing employees. d. It has improved the processes of internal and external communications.

c. It has diminished the role of supervisors in managing employees.

51. Which of the following is one of the largest expenditures of service companies? a. Production costs b. Marketing costs c. Labor costs d. Distribution costs

c. Labor costs

62. Over the last few decades, the educational attainment of the U.S. labor force has: a. risen dramatically. b. fallen dramatically. c. remained at about the same level. d. had little influence on HRM.

a. risen dramatically.

58. According to the U.S. Bureau of Labor Statistics, about _____ of people over 55 now participate in the labor force. a. 15 percent b. 40 percent c. 55 percent d. 75 percent

b. 40 percent

Which of the following is false? a. Majority of employees have no children under 18. b. Family-friendly policies have no positive outcomes for firms. c. Flextime options are on the rise for employees. d. Family-friendly policies may include day care, part-time work, and job sharing.

b. Family-friendly policies have no positive outcomes for firms.

80. Today about _____ percent of women aged 16 years and older participate in the work force in the U.S. a. 40 b. 80 c. 30 d. 60

d. 60

65. Which of the following does NOT represent a cultural change emerging in organizations? a. An increased concern for privacy b. Changing attitudes toward work c. Balancing work and family demands d. Accommodating unemployed workers

d. Accommodating unemployed workers

61. Older workers: a. operate more like free agents. b. prefer having younger supervisors. c. are more willing to work flexible hours. d. learn new behaviors more quickly because of their experience.

c. are more willing to work flexible hours.

72. Which of the following is NOT a general responsibility of the HR manager? a. Employee supervision b. Strategic advice and counsel c. Policy formulation and implementation d. Employee advocacy

a. Employee supervision

41. _____ is the process of moving jobs closer to one's home country. a. Nearshoring b. Outsourcing c. Homeshoring d. Furloughing

a. Nearshoring

40. _____ change is initiated by management to take advantage of targeted opportunities. a. Proactive b. Turnover c. Reactive d. Reflective

a. Proactive

35. Which of the following is the largest employment agency in the United States? a. Snelling Personnel Services b. Kelly Services c. Manpower Inc. d. Labor Ready

c. Manpower Inc.

44. Women who are employed full-time today make about _____ of what men employed full-time make. a. 50 percent b. 95 percent c. 79 percent d. 100 percent

c. 79 percent

33. Which of the following is NOT a competitive challenge within the Human Resources Management framework? a. Changes in the marketplace b. Globalization c. Technology d. Employee rights

d. Employee rights

73. _____ is a competency of the HR manager earned by developing personal relationships with people both internal and external to the firm demonstrating the values of the firm, standing up for one's own beliefs, and dealing with all parties equitably. a. Change mastery b. HR mastery c. Business mastery d. Personal credibility

d. Personal credibilit

74. Globalization is of interest to _____ companies. a. service b. consumer product c. only large d. all types of

d. all types of

49. The _____ paved the way for the formation of many major trade agreements and institutions. a. General Agreement on Tariffs and Trade (GATT) b. International Monetary Fund (IMF) c. North American Free Trade Agreement (NAFTA) d. European Union (EU)

a. General Agreement on Tariffs and Trade (GATT)

66. Employee rights include all of the following EXCEPT: a. company funded pension plan. b. equal employment opportunity. c. union representation. d. equal pay for equal work.

a. company funded pension plan.

48. The national identities of products are blurring due to the effect of: a. globalization. b. nearshoring. c. downsizing. d. furloughing.

a. globalization.

13. Furloughing is a situation in which a firm asks an employee to take time off but the employee is still provided with full pay and benefits. a. True b. False

False

17. Outsourcing refers to employing workers in their homes rather than within the traditional office environment. a. True b. False

False

Knowledge workers are employees whose responsibilities include only problem-solving. a. True b. False

False

11. In absolute terms, the United States remains the world's most productive nation, even when it comes to manufacturing. a. True b. False

True

14. Methods of reducing labor costs include downsizing, outsourcing, and employee leasing. a. True b. False

True

21. The U.S. Department of Education has found that less than half of all high school seniors in the U.S. are unable to handle basic math involving fractions, decimals, and simple algebra. a. True b. False

True

26. Family-friendly practices include offering flexible hours, telecommuting, and job sharing. a. True b. False

True

30. One of the roles of HR managers is to act as employee advocates despite their positions as managers. a. True b. False

True

50. Which of the following is NOT a characteristic of organizations that have been successful in engineering change? a. Linking the change to business strategy b. Engaging key employees early in the change process c. Investing in the implementation of change d. Engaging suppliers only after making changes

d. Engaging suppliers only after making changes

10. Human capital is intangible, but can still be managed the way organizations manage jobs, products, and technologies. a. True b. False

False

32. When employee leasing is used, a firm signs an agreement with a professional employer organization. a. True b. False

True

5. The strategies companies are pursuing today increasingly involve one or more elements of globalization. a. True b. False

True

8. Reactive changes are strategic changes initiated by managers in response to external forces that have already affected a company's performance. a. True b. False

True

9. Companies are increasingly rotating non-HR managers into HR positions and vice versa to give them exposure to different areas of the organization. a. True b. False

True

A Human Resource Information System (HRIS) provides current and accurate data for control and decision-making by managers. a. True b. False

True

78. Human capital is _____ and _____ be managed the way organizations manage jobs, products, and technologies. a. tangible; cannot b. tangible; can c. intangible; cannot d. intangible; can

c. intangible; cannot

12. Labor costs are always the smallest expenditures companies make, particularly in service-intensive firms. a. True b. False

False

23. By 2050, the percentage of Hispanics in the United States is expected to nearly triple, while the percentage of people of Asian descent is expected to significantly decrease. a. True b. False

False

29. The HR policies are generally proposed by the senior executives of an organization to the HR managers, who actually issue them. a. True b. False

False

4. To proactively manage change, organizations should wait to see how external forces impact an organization's performance, and then develop a plan to address those changes. a. True b. False

False

7. Human capital is owned by an organization and is part of its core competencies. a. True b. False

False

59. Managers are concerned that the expertise of employees will be rapidly drained from their companies because: a. recruitment of minorities is increasing. b. large portions of American workers are nearing retirement. c. older workers' are becoming more resistant to flexible work hour. d. older workers are increasing behaving like free agents.

b. large portions of American workers are nearing retirement.

. As an employee advocate, HR managers: a. formulate and issue policy revisions for employees. b. listen to employees and represent their needs to management. c. provide individual orientation and training to every employee. d. assist employees with labor negotiations.

b. listen to employees and represent their needs to management.

67. Family-friendly work options include all of the following EXCEPT: a. day care. b. spousal benefits. c. parental leave. d. job sharing.

b. spousal benefits.