MGT 364 EXAM 1

Which of the following companies is most likely to achieve the human resource management (HRM) goal of complying with legal and social obligations?

A company that makes sure its employees are aware of regulatory requirements

Which of the following is the basic underlying assumption for using related diversification?

A corporation can achieve synergy among the various businesses it owns.

Which of the following businesses can legally justify the need for a bona fide occupational qualification (BFOQ)?

A cryobank looking for sperm donors

Which of the following is a disadvantage of the international business strategy of licensing?

A firm using licensing needs to be vigilant to ensure that its quality standards are upheld.

Which of the following strategies can be pursued internally by opening additional locations or externally through mergers, joint ventures, or the acquisition of other businesses?

A growth strategy

In the context of compensating expatriates, which of the following is an additional financial incentive offered to individuals to entice them to accept a less than attractive international assignment?

A hardship premium

Which of the following produces sexual harassment because of a climate or culture that is punitive toward people of a different gender?

A hostile work environment

The negotiations between management and the newly formed labor union of Bluspart Inc., an automobile manufacturer, reach an impasse. Both parties fail to agree on crucial issues such as wages, employee benefits, and safety standards. Following this, the management shuts down the assembly unit, thereby restricting the employees from entering the workplace unless they agree to the terms laid down by the management. In the given scenario, which of the following tactics is Bluspart Inc.'s management using to pressure the employees?

A lockout

Identify a true statement about the HR department of small organizations.

A single manager can usually handle the HR function in small organizations.

The workers of Stollon Inc., a manufacturing company, unanimously decide to work at a leisurely pace, spending most of their time on tea breaks and chatting. They also take longer lunch breaks than usual. The workers do this in order to protest against the company's new layoff strategy. In this scenario, which of the following tactics are the workers using to protest against management?

A slowdown

Westick Inc., a computer manufacturing firm, rightsized itself by closing down two of its subsidiaries in the last fiscal year. It is now satisfied with its current management and its new position as the international market leader. The firm now wants to focus on maintaining its position as the market leader and ensuring that its e-waste management techniques continue to remain eco-friendly. Which of the following strategies should Westick Inc. adopt to achieve this goal?

A stability strategy

Which of the following strategies does an organization adopt when its goal is to protect itself from environmental threats?

A stability strategy

In the context of union security agreements, which of the following agreements allows a nonunion member to be hired, although he or she must join the union within a specified time to keep his or her job?

A union shop agreement

In the context of equal employment opportunity, which of the following is an element of an affirmative action program?

A utilization analysis

The employees of Plummington Corporation, a mining company, work in a hazardous environment without using adequate safety gear. The labor union's negotiations with management to improve workplace safety have not been successful. Following the death of an employee in a mine explosion, the other employees abruptly stop all production activities. They do not consult the union or the management despite a binding labor agreement still in effect. In this scenario, which of the following tactics are the employees of Plummington Corporation using to protest against the management?

A wildcat strike

Which of the following refers to positive steps taken by an organization to actively seek qualified applicants from underrepresented groups in the workforce?

Affirmative action

Victor was a labor union president in the 1880s. His union represented various small craft unions. Victor rarely got involved in legislative and political activism. Instead, he put his efforts into improving working conditions and acquiring more beneficial labor contracts. In the given scenario, Victor was most likely the president of the:

American Federation of Labor.

Which of the following is a new trend in bargaining perspectives between labor unions and management?

Bargaining situations are often characterized by demands for improved job security.

Which of the following is a similarity between mediation and arbitration?

Both require a neutral third party to propose an acceptable agreement.

Who among the following has a psychological contract with his or her organization?

Brandon, a clerk in a bank, who has a clear idea of the services he is expected to provide to bank managers and the incentives he expects from the bank in return for his services

Which of the following was an effect of the Industrial Revolution?

Business owners began to rely on professional managers to oversee a portion of their operations.

Identify a strategy that deals with how a firm will compete in each market where it conducts its operations.

Business strategy

In the context of HR strategy formulation, which of the following is a component of the employee-development strategy of a firm?

Career planning

Which of the following illustrates quid pro quo harassment?

Caroline's manager promising to promote her if she engages in intimate physical activities with him

Which of the following statements is true of personnel management during the 1950s? a. The roles of HR managers as compliance officers and strategic partners grew in importance. b. Companies began to experiment with sophisticated reward systems. c. The job of personnel managers became less complex. d. Personnel management was seen as a critical function in business organizations.

Companies began to experiment with sophisticated reward systems.

Which of the following is an advantage of the direct foreign investment strategy?

Considerably more profit potential can be realized because the company itself keeps all the profits its investment earns in a foreign country.

Which of the following is a human resource management (HRM) practice that can lead to improved firm performance?

Contingent pay

Which of the following strategies deals with determining what businesses a firm will operate?

Corporate strategy

Which of the following is a local compensation issue faced by international businesses?

Different benefit packages are offered to workers in different countries.

In the context of the types of illegal discrimination, which of the following occurs when an apparently neutral employment practice disproportionately excludes a protected group from employment opportunities?

Disparate impact discrimination

Which of the following statements is a difference between disparate treatment and disparate impact?

Disparate treatment is based on an individual's age or disability status, whereas disparate impact is based on an individual's membership in a protected group.

Which of the following statements is true of human resources? A. Each employee is important to the overall effectiveness of an organization. B. After financial resources, human resources are an organization's most important resources. C. The human resources of an organization are also known as material resources. D. Each employee should be selected with the aim of creating an ethnocentric work environment.

Each employee is important to the overall effectiveness of an organization.

Which of the following statements is true of the HR function of an organization?

Effective human resource management is increasingly being viewed as a source of competitive advantage by organizations.

Which of the following statements is true of the negotiation process while formulating labor agreements?

Effective negotiation involves finding an overlap between the demands and expectations of organizations and unions in the bargaining zone.

Milla, a 26-year-old woman, and Ross, a 25-year-old man, are quality supervisors in a beverage bottling company. Milla and Ross are both white and have similar work experience and educational qualifications. Milla realizes that her salary is 35 percent less than Ross's salary. In this scenario, Milla and Ross's company is in violation of the _____.

Equal Pay Act of 1963

Which of the following is one of the two emerging legal perspectives on compensation and benefits?

Executive compensation

Which of the following statements is true of legal compliance and its evaluation in organizations? a. The third step in evaluating legal compliance is ensuring that managers understand the laws that govern every aspect of HRM. b. Internal audits prove to be expensive and intrusive into an organization's daily routine. c. The first step in evaluating legal compliance involves ensuring that managers conduct a thorough utilization analysis. d. External audits can keep an organization out of legal trouble when conducted properly.

External audits can keep an organization out of legal trouble when conducted properly.

_____ is the way in which the human resource management (HRM) function provides the most value to an organization.

Facilitating organizational competitiveness

Which of the following is a method in which the parties involved in negotiation bargain until impasse and then the two parties' ultimate terms are submitted to a third party?

Final-offer arbitration

Keith, the HR manager of a firm, puts forward a proposal to the top management that managing the major operations of the firm, such as finance and human resources, separately will lead to a more effective management system and will increase the profits of the firm in the long run. In the given scenario, which of the following strategies is Keith suggesting to the top management?

Functional strategy

Which of the following strategies deals with how an organization will manage each of its major operations such as marketing, finance, and human resources?

Functional strategy

In the context of the dimensions of national culture as identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness), which of the following refers to equal opportunities for men and women in society?

Gender egalitarianism

Avont Inc. is a conglomerate that originated from a strategy of unrelated diversification and holds various businesses. The organization design of Avont Inc. is such that each business under it is autonomous. Also, each business has its separate HR department, and a corporate-level staff links business-level and corporate-level issues. In the given scenario, Avont Inc. uses the _____.

H-form design

Which of the following statements is true of the career opportunities in human resource management (HRM)? a. A Global Professional in Human Resources certification is necessary to become an HR manager. b. A graduate degree in HRM is a necessary prerequisite for a person to enter the HRM profession. c. HR managers are likely to be considered second-class citizens in their organizations. d. HR managers are likely to have a demanding and rewarding experience in their organization.

HR managers are likely to have a demanding and rewarding experience in their organization.

Which of the following statements is true of the strategic perspective on human resource management (HRM)?

HR tasks and functions are highly interrelated.

Which of the following is a major reason for the lack of global competitiveness by automakers in the United States?

High labor costs

Which of the following statements is true of local recruiting and selection issues?

Host-country nationals are usually employed for nonmanagerial jobs in international business.

_____ refers to the comprehensive set of managerial activities and tasks concerned with attracting, developing, and maintaining a qualified workforce in ways that contribute to organizational effectiveness.

Human resource management

_____ are an organization's most important resources.

Human resources

In the context of the dimensions of national culture as identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness), which of the following is the degree to which people value caring, altruistic, and generous behavior?

Humane orientation

Which of the following is a difference between a prospector strategy and a defender strategy? a. HR managers in firms using a prospector strategy recruit stable employees who exhibit loyalty to the firm, whereas HR managers in firms using a defender strategy recruit employees who frequently change their jobs. b. A prospector strategy works best when the business environment has a high degree of stability, whereas a defender strategy works best when the business environment is dynamic and growing. c. A prospector strategy works best when the business environment has relatively little uncertainty, whereas a defender strategy works best when the business environment has considerable uncertainty. d. In a prospector strategy, prospectors continually focus on new products and markets, whereas in a defender strategy, defenders focus primarily on their existing environment.

In a prospector strategy, prospectors continually focus on new products and markets, whereas in a defender strategy, defenders focus primarily on their existing environment.

Chin, a college graduate, recently started working at a renowned advertising agency. He is enthusiastic about his work, is highly appreciative of his colleagues, and takes immense pride in the company he works for. In the context of the dimensions of national culture as identified by Robert House's GLOBE project (Global Leadership and Organizational Behavior Effectiveness), which of the following dimensions of national culture does Chin display?

In-group collectivism

Which of the following statements is true of the global perspective on human resource management (HRM)?

Increasing globalization has reinforced the need to view HRM from a systems perspective.

In the context of Geert Hofstede's four dimensions of national culture, which of the following refers to the extent to which persons define themselves as single entities rather than as members of groups?

Individualism versus collectivism

In the context of the four international strategies proposed by Bartlett and Goshal, which of the following firms relies heavily on headquarters expertise, although this expertise is adapted to local needs?

International strategy

Which of the following is an advantage of the international business strategy of licensing?

It allows a firm to gain market exposure that will make it easier for it to enter the market more aggressively in the future.

Which of the following is a provision of the Privacy Act of 1974?

It allows employees to review their personnel files periodically to ensure the accuracy of the information contained in them.

Which of the following statements is true of an organization using a cost leadership strategy?

It can reengineer jobs so that they require minimal skills.

Which of the following is true of the Taft-Hartley Act of 1947?

It conferred on the National Labor Relations Board the power to regulate unfair union practices.

Which of the following statements is true of the labor market of an organization? a. All jobs within the organization draw on relevant labor markets with similar characteristics. b. It consists of workers who have the skills needed to perform the work. c. It consists solely of women employees who are either widowed or legally divorced. d. It is composed of individuals who work for a minimum of 12 hours a day.

It consists of workers who have the skills needed to perform the work.

Which of the following statements is true of the Americans with Disabilities Act (ADA) of 1990? a. It does not cover employees with cancer, a history of mental illness, or a history of heart disease. b. It covers individuals with substance-abuse problems, obesity, and other similar non-work-related characteristics. c. It covers mental and psychological disorders such as mental retardation, learning disabilities, and emotional illness. d. It does not consider AIDS and HIV disabilities.

It covers mental and psychological disorders such as mental retardation, learning disabilities, and emotional illness.

Which of the following statements is true of the Cordwainer doctrine? a. It declared that labor unions were in restraint of trade and thus illegal. b. It mandated the presence of a mediator during collective bargaining. c. It mandated the provision of health benefits to the workers of an organization. d. It prohibited employers from interacting directly with union members in case of strikes

It declared that labor unions were in restraint of trade and thus illegal.

Which of the following statements is true of corporate culture?

It does not have an ideal form.

Which of the following statements is true of the Employee Retirement Income Security Act (ERISA) of 1974?

It ensures that employees receive at least some pension benefits at the time of termination.

Which of the following statements is true of the Fair Labor Standards Act of 1938? a. It established a minimum wage. b. It required that employers provide certain employees with up to 12 weeks of unpaid leave per year. c. It dealt with unionization procedures. d. It required that national labor unions elect new leaders at least once every five years.

It established a minimum wage.

Which of the following statements is true of the Knights of Labor? a. It only sought to improve the wages of its members. b. It sought to replace worker cooperatives through capitalism. c. It expanded its membership to include workers in many different fields. d. It admitted people on the basis of race and creed.

It expanded its membership to include workers in many different fields.

Which of the following statements is true of the Drug-Free Workplace Act of 1988? a. It exempts employees of the Securities and Exchange Commission from the drug-testing rules of the act. b. It was passed to reduce the use of both legal and illegal drugs in the workplace. c. It extends to organizations regulated by the Department of Transportation and the Nuclear Regulatory Commission. d. It makes it mandatory for both public- and private-sector organizations to test employees for alcohol and drugs.

It extends to organizations regulated by the Department of Transportation and the Nuclear Regulatory Commission.

Which of the following statements is true of the Equal Employment Opportunity Commission (EEOC)? a. It can take as many as 180 days to investigate a complaint. b. It investigates and resolves complaints about alleged discrimination in organizations. c. It establishes a minimum hourly wage for different types of jobs. d. It gives the lowest priority to cases that appear to have the potential for classwide effects.

It investigates and resolves complaints about alleged discrimination in organizations.

Which of the following statements best describes a tariff?

It is a tax collected on goods shipped across national boundaries.

Which of the following statements is true of outsourcing? A. It reduces a firm's risk of facing intellectual property theft. B. It is an important competitive weapon for an organization. C. It results in an increase in HR staffs within companies. D. It increases job dissatisfaction among workers.

It is an important competitive weapon for an organization.

Which of the following statements is true of discrimination against employees? a. It is illegal to discriminate against individuals on the basis of their years of work experience. b. Title VII of the Civil Rights Act of 1964 states that an employer cannot refuse employment on the basis of past performance. c. It is illegal to discriminate against employees based on aspects that are not job related. d. The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees under 25 years of age.

It is illegal to discriminate against employees based on aspects that are not job related.

Which of the following statements is true of the Landrum-Griffin Act?

It prohibits convicted felons from holding national union office.

Which of the following statements is true of the Family and Medical Leave Act (FMLA) of 1993? a. It requires firms to provide an employee on FMLA leave with the same or comparable job on the employee's return. b. It was passed in response to growing concerns about the employment opportunities denied to people with various disabilities. c. It was passed in response to discrimination against employees who are 40 years of age or older. d. It requires employers with more than 50 employees to provide 15 weeks of FMLA leave to an employee with a serious illness.

It requires firms to provide an employee on FMLA leave with the same or comparable job on the employee's return.

Which of the following is a feature of the Fair Labor Standards Act of 1938?

It specifies that all full-time employees must be paid at a rate of one and a half times their normal hourly rate for each hour of work beyond 40 hours in a week.

Which of the following statements is true of personnel management during the 1930s and 1940s? a. It was concerned solely with structuring individual jobs to maximize efficiency and productivity. b. It was concerned almost exclusively with hiring first-line employees. c. It was considered a function of line managers. d. It was seen as a critical function in most business organizations.

It was concerned almost exclusively with hiring first-line employees.

Which of the following statements is true of scientific management in the 20th century? A. It was based on the belief that employees work harder if they are happy. B. It was concerned exclusively with creating an ethnocentric work environment. C. It was concerned with every motion that a worker made. D. It was focused on maximizing job satisfaction and quality rather than efficiency and productivity.

It was concerned with every motion that a worker made.

Space Age Technologies, an aircraft parts manufacturer, wants to enter new markets and increase its profits. It does so by selling its products to retailers in foreign countries. Which of the following is a disadvantage that Space Age Technologies is most likely to face because of this approach?

It will incur high expenses as its products will be subject to taxes and tariffs.

Which of the following statements is true of a labor union? a. It is an illegally established entity of the workers of an organization. b. It is established by the government to monitor labor-related issues. c. It has sole authority over deciding the pay increments of the workers of an organization. d. It works toward achieving job-related goals such as acquiring higher wages.

It works toward achieving job-related goals such as acquiring higher wages.

Which of the following was a weakness of the American Federation of Labor (AF of L)?

Its focus on accepting only skilled craftspersons for specifically defined jobs

Which of the following statements is true of the enforcement of laws in the regulation process of HRM? a. The court system seldom provides a vehicle for enforcement. b. Law enforcement agencies have the power to levy fines on firms that violate laws. c. Enforcement of federal and state laws is assigned solely to the Department of Labor. d. The enforcement of laws is the third and the last step in the regulation process.

Law enforcement agencies have the power to levy fines on firms that violate laws.

Ms. Penny's, a domestic packaged food manufacturer based in Chile, wants to increase its customer base. It enters into an agreement with a firm in Argentina, thereby giving the Argentinian firm the permission to produce and distribute Ms. Penny's products in the Argentinian market. In return, the Argentinian firm will have to pay a royalty to Ms. Penny's based on the number of products it sells. Which of the following international business strategies is Ms. Penny's using?

Licensing

SoleAce is a footwear company based in India. SoleAce grants permission to a British manufacturer to make and sell its products in the United Kingdom. The agreement allows the British manufacturer to use SoleAce's design and materials to make and sell footwear bearing SoleAce's logo. The British manufacturer will pay a royalty to SoleAce based on the volume of sales. Which of the following international business strategies is SoleAce using?

Licensing

Which of the following is true of repatriation?

Losing a repatriate manager is costly for a global business in terms of international experience and knowledge.

Which of the following was a result of the Hawthorne studies?

Managers began to focus more attention on better understanding the human character of their employees.

Identify a true statement about legal compliance and its evaluation in organizations.

Managers should rely on their own legal and HR staff to answer questions and review HRM procedures periodically.

In the context of the parameters for collective bargaining, which of the following includes wages, working hours, and benefits and must be included as part of collective bargaining if either party expresses a desire to negotiate one or more of them?

Mandatory items

Which of the following is a controversial area in the Age Discrimination in Employment Act of 1967?

Mandatory retirement age

In the context of Geert Hofstede's four dimensions of national culture, which of the following is a dimension that contrasts assertive, competitive, and success-driven values with quality of life and relationship-oriented values in society?

Masculinity versus femininity

In the context of resolving impasses, which of the following occurs when a neutral third party listens to and reviews the information provided by both sides involved in a negotiation, makes an informed recommendation, and provides advice to both parties about what he or she believes should be done?

Mediation

Which of the following firms is using the joint venture strategy of international business?

Mega Tech, a computer manufacturer in Japan, who has a tie-up with a computer manufacturer in India to mutually manage the production operation of its business

Identify a true statement about labor unions across the world.

More than half the world's workforce outside the United States belongs to labor unions.

Which of the following statements is true of human resource management in the electronic age? a. New technologies have made it easier for management to deliver information and communicate with employees. b. The widespread use of technology has drastically affected the basic approach to how human resources are managed. c. Electronic communication systems have reduced the occurrence of issues related to ethics and privacy in organizations. d. The use of technology has reduced organizations' needs for specialized employees.

New technologies have made it easier for management to deliver information and communicate with employees.

The radiation department of St. George Hospital frequently monitors the radiation levels of the hospital environment to ensure that employees and patients are not exposed to radiation beyond the permissible limit. This is done to ensure that no physical harm is caused to the employees and the patients. These measures taken by the hospital are in compliance with the _____.

Occupational Safety and Health Act

Which of the following takes place in the international business strategy of licensing?

One company grants permission to another company in a foreign country to manufacture or market its products in the other country's local market.

In the context of HR strategy formulation, which of the following is a component of a firm's compensation strategy?

Performance-based incentives

In the context of resolving impasses between a labor union and management, which of the following occurs when workers represented by the union march at the entrance to the employer's facility with signs explaining their reasons for striking?

Picketing

The union members of Florasis Corporation, a tiles manufacturing company, are not able to negotiate a satisfactory contract with the company's management during the bargaining process. As a result, they stage a protest. During the protest, union members frequently march to the entrance of the company with placards in their hands in an attempt to intimidate the management. In the given scenario, which of the following tactics is being used by the union members to meet their demands?

Picketing

Which of the following is essential for a firm to gain a sustained competitive advantage over its competitors?

Placing its employees in the right jobs

_____ is the total set of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs.

Quality

Which of the following activities most likely aligns with the human resource management goal of facilitating organizational competitiveness?

Recruiting skilled employees to help achieve organizational targets

Which of the following statements is true of the HR department of a small organization?

Relatively little training is provided to HR staff on how to handle HR issues in a small firm.

Identify a true statement about repatriation: a. Repatriation is uncomplicated on a personal level for expatriates living overseas for a long time. b. Repatriation involves simply packing belongings and putting the manager and his or her family on a plane. c. Roughly one-half of repatriated managers leave their companies within 2 years of repatriation. d. Most repatriated managers have their old jobs waiting for them once they return home after an overseas assignment.

Roughly one-half of repatriated managers leave their companies within 2 years of repatriation.

Who among the following is a victim of disparate impact discrimination?

Sally, who had to resign from her job because her employer implemented a rule stating that all employees should keep their hair short to maintain hygiene in his restaurant

_____ are those responsible for an indirect or support function that would have costs but whose bottom-line contributions to their organizations are less direct than the contributions of line managers.

Staff managers

Which of the following statements is true of the regulatory environment of HRM in the United States? a. The decisions of the government take precedence over those of the Supreme Court. b. The president of the United States does not have the power to create new regulations. c. State regulations are more likely to extend or modify national regulations than create new ones. d. New regulations can be passed only by local government bodies.

State regulations are more likely to extend or modify national regulations than create new ones.

In the context of unionization in the United States, which of the following labor unions was founded in 1886 and was focused on improved working conditions rather than getting involved in legislative and political activities?

The American Federation of Labor

Which of the following acts made it illegal for employers to consider factors such as gender, religion, race, skin color, or national origin when making employment-related decisions?

The Civil Rights Act of 1964

In the context of unionization in the United States, which of the following labor unions was established in the late 1930s and was focused on organizing employees by industry, regardless of their craft, skills, or occupation?

The Congress of Industrial Organizations

Which of the following U.S. departments was given the power to apply the standards of the Occupational Safety and Health Act of 1970 and enforce its provisions?

The Department of Labor

Which of the following acts was passed in the year 1959 and focused on eliminating various unethical, illegal, and undemocratic union practices?

The Landrum-Griffin Act

Jolly Treats, a multinational corporation, began its operations 25 years ago with one business in the packaged food industry. The company has acquired five food manufacturing firms since then. In the given scenario, which of the following would be the most appropriate organization design for Jolly Treats's strategy?

The M-form design

Which of the following is used as a basis for establishing a prima facie case of disparate impact discrimination?

The McDonnell-Douglas test

Which of the following agencies was established to administer the provisions of the Wagner Act?

The National Labor Relations Board

Which of the following acts was passed in 1947 to regulate union actions and their internal affairs in a way that puts them on an equal footing with management and organizations?

The Taft-Hartley Act

Raptors Inc. is a start-up that manufactures sports goods. It classifies its departments based on their functions such as marketing, finance, and distribution to utilize its resources better. The HR department of the firm coordinates the activities across all these departments. Which of the following organization designs does Raptors Inc. use in the given scenario?

The U-form design

In the legal context of HRM in the United States, identify the institution whose decisions set precedence and play a major role in establishing the regulatory environment.

The U.S. Supreme Court

The employees of an automobile manufacturing company in the United States form a labor union to collectively address the issues they face. They engage in collective bargaining with the management for better wages and working conditions and threaten to go on strike if their demands are not fulfilled. In this context, which of the following acts most likely gave the labor union the power to collectively bargain with the company?

The Wagner Act

Which of the following acts was passed in 1935 and gives workers the legal right to form unions, to bargain collectively with management, and to engage in group activities such as strikes to accomplish their goals?

The Wagner Act

Printys Inc., a software company with 3,000 employees, was acquired by another company. The new management laid off 1,000 employees without any prior warning. In this case, the company violated the _____.

The Worker Adjustment and Retraining Notification Act

Which of the following acts stipulates that an organization with at least 100 employees must warn employees at least 60 days in advance of plans to close a facility or lay off 50 or more employees?

The Worker Adjustment and Retraining Notification Act of 1988

In the context of the adaptation model, which of the following strategies falls between the defender and prospector strategies?

The analyzer strategy

Which of the following occurs when a prima facie case of discrimination is filed against a company?

The company is considered at fault unless it can demonstrate another legal basis for its decision that had discriminatory consequences.

Unitex Corp., a watch manufacturer, introduced a new sub-brand of glow-in-the-dark watches for kids. It subsequently attained a monopoly in this segment of the market in its home country owing to the cost effectiveness of the new watches. As a result, it discontinued all the other sub-brands of watches that it used to manufacture earlier to concentrate on its new customer base. In the given scenario, which of the following is a business strategy that Unitex Corp. most likely followed?

The focus strategy

RAS Inc., a multinational jewelry brand, follows a staffing strategy that involves hiring the best person available for every position in the organization, irrespective of the individual's nationality. It adopts this staffing strategy in all its foreign outlets as well. Which of the following staffing models does RAS Inc. use?

The geocentric staffing model

Which of the following staffing models puts parent-country nationals, host-country nationals, and third-country nationals in the same category and then attempts to hire the best person available for a position?

The geocentric staffing model

In the context of the four international strategies proposed by Bartlett and Goshal, which of the following strategies poses the lowest risk for potential agency problems when dealing with expatriates?

The global strategy

Which of the following statements is true of the collective-bargaining process?

The goal of this process is to produce agreement on a binding labor contract that will define the employment relationship for a specified period of time.

Hana is an employee of the housekeeping staff in Monako Hotels, a domestic chain of hotels in Japan. She and her colleagues are members of a labor union. Which of the following is most likely to happen if disputes arise between the employees and the management of the hotel?

The labor union and the hotel management will settle disputes cordially through mutual agreement.

Who among the following managers in a manufacturing company is traditionally considered to be a line manager?

The marketing manager

Azuranz Tech, an electrical appliances manufacturing company, has operations in different countries. To compete well in foreign markets and increase its market share, Azuranz Tech prefers to employ host-country nationals at each level in all its foreign offices. The management feels that the host-country nationals can effectively deal with local market conditions. Which of the following staffing models does Azuranz Tech use?

The polycentric staffing model

Which of the following is a condition that must be met for the decertification of a union to occur?

The union must have served as the official bargaining agent for the employees for at least 1 year.

Which of the following statements is true of contemporary human resource management (HRM)?

The view of HRM as part of the legal enforcement arm of an organization is largely applicable only in the United States.

Which of the following statements correctly reflects a shift in the nature of modern labor unions?

There has been a decline in union membership in the United States due to aggressive antiunionization strategies undertaken by companies.

Which of the following statements is true of the HR function in organizations? a. Effective HR management has been found to increase ethnocentrism among employees. b. There has been a recent trend toward evaluating entire systems of HR activities. c. Outsourcing an HR function is seldom dependent on the actual cost of keeping the function in-house. d. An HR function that adds little value is likely to be retained rather than outsourced.

There has been a recent trend toward evaluating entire systems of HR activities.

Identify a true statement about contemporary HR managers. a. They are required to be a member of the Society for Human Resource Management. b. They are responsible for promoting ethnocentrism in the workplace. c. They are considered a critical source of information about employment practices. d. They are regarded as second-class corporate citizens.

They are considered a critical source of information about employment practices.

Which of the following statements is true of contingent workers?

They are considered independent contractors.

Which of the following statements is true of stockholders? a. They are overly concerned about risk. b. They always align their interests with those of the managers of an organization. c. They are the true owners of a modern corporation. d. They are typically the people who run an organization on a day-to-day basis.

They are the true owners of a modern corporation.

Which of the following statements is true of unionized firms?

They can be obstructed by the union in implementing any strategic change.

Which of the following statements is true of craft unions? a. They were formed under the National Labor Relations Act. b. They organized employees by industry, regardless of their skills or occupation. c. They were established by the government to create labor laws during the Revolutionary War. d. They limited themselves to representing groups of workers who performed common and specific skilled jobs.

They limited themselves to representing groups of workers who performed common and specific skilled jobs.

Identify a true statement about contemporary HR executives. a. They must have a graduate degree in human resource management. b. They must have general management abilities that reflect conceptual, diagnostic, and analytical skills. c. They are required to develop policies that promote an ethnocentric environment in the workplace. d. They are required to be a member of the Society for Human Resource Management.

They must have general management abilities that reflect conceptual, diagnostic, and analytical skills.

Which of the following statements is true of today's HR executives? a. They need a solid educational background as the sole prerequisite for success. b. They need to understand different specialized areas such as the legal environment and labor relations. c. They are tasked with developing policies that promote ethnocentrism in the workplace. d. They are regarded as second-class corporate citizens.

They need to understand different specialized areas such as the legal environment and labor relations.

Which of the following statements is true of contemporary HR managers? a. They are required to be a member of the Society for Human Resource Management. b. They represent a diverse set of professionals with a variety of backgrounds. c. They are responsible for promoting ethnocentrism in the workplace. d. They are regarded as second-class corporate citizens.

They represent a diverse set of professionals with a variety of backgrounds.

Which of the following statements is true of labor unions in the 21st century?

They use the Internet effectively to communicate with members across countries.

The passage of _____ made it clear that organizations had to find ways to hire, reward, and manage people effectively within the limits of the law.

Title VII of the Civil Rights Act of 1964

Which of the following is a human resource management (HRM) practice that can lead to improved firm performance?

Total quality management

Which of the following statements is true of the domestic issues in international human resource management? a. Third-country nationals are considered the cheapest employees for blue-collar jobs. b. Compensation varies according to the gender and nationality of employees. c. Benefit packages offered to employees remain the same across markets. d. Training requirements for host-country nationals are based on the location of the market.

Training requirements for host-country nationals are based on the location of the market.

Which of the following is a difference between the HR departments in a large organization and a small organization?

Unlike the HR department in a large organization, the HR department in a small organization mostly requires line managers to handle its basic HR functions.

Which of the following is by far the most common method to test for drugs on the job, is extremely invasive, and has been known to result in a fair number of false-positive tests?

Urinalysis

Which of the following terms is defined as the attempt to measure, in objective terms, the impact and effectiveness of human resource management (HRM) practices in terms of metrics such as a firm's financial performance?

Utility analysis

Which of the following is a valid cause for the decertification of a labor union?

Workers' disillusionment with the labor union

In the context of international business strategies, a direct investment occurs when:

a firm headquartered in one country builds operating facilities in a foreign country.

When two or more firms cooperate in the management or ownership of an operation, often on an equity basis, it is called _____.

a joint venture

Fairview Hotels and Spas is a multinational chain of hotels. It has been competing in the international market for years. It uses a corporate strategy that requires expatriate managers to rely on expertise from headquarters, which is modified to accommodate local needs. In the context of the four international strategies proposed by Bartlett and Goshal, Fairview Hotels and Spas has:

a low risk of agency problems.

A comparison of the racial, sex, and ethnic composition of an employer's workforce compared to that of the available labor supply is known as _____.

a utilization analysis

The third step in the regulation process of HRM is the:

actual practice and implementation of regulations in organizations.

Interpersonal processes are especially important because of the role they play in:

affecting the performance effectiveness exhibited by each employee in a firm.

The interests of the management of an organization may differ from those of the owners, and this may most likely lead to _____.

an agency problem

Retaliation, a form of discrimination, occurs when:

an organization takes some action against an employee who has filed suit against the organization for illegal discrimination.

Fabrisch, which started as an automobile company, has now acquired over 10 companies in the fast-food and IT industries. With its wide array of businesses, Fabrisch can shield itself from the adverse effects of business cycles, unexpected competition, and other economic fluctuations. In the context of corporate strategies, it is evident that Fabrisch has adopted _____.

an unrelated diversification strategy

In the context of the adaptation model, if HR managers in an organization seek to recruit and retain employees who might be moderately entrepreneurial and flexible but who will also be quite dedicated and loyal to the organization, the organization is using the _____.

analyzer strategy

When the negotiations between management and the workers of Grensen Inc., a multinational company, reach an impasse, they both decide to call in a third party to resolve the matter. Despite their differences, they make a prior agreement to accept the recommendations made by the third party. In the given scenario, the management and the workers of Grensen Inc. are using _____ to resolve the impasse.

arbitration

Unlike the labor unions in the United States, the labor unions in most other countries:

are much more concerned about social issues.

In the context of the steps involved in forming a union, the specifically defined group of employees who are eligible for representation by the union is referred to as the _____.

bargaining unit

If a firm uses a strategy of related diversification, its compensation system must be geared to:

be flexible enough to facilitate cross-business employee transfers.

In the context of the tactics used by unions to intimidate management, which of the following occurs when union members agree not to buy the products of a targeted employer?

boycott

The employees of Laclin, a popular personal care products manufacturing company, have decided not to use any of the company's products for at least 5 months. They have also advised their family members and acquaintances to do likewise. This tactic adopted by the employees to show their resentment toward the company's wage reduction policies is referred to as _____.

boycott

Juan, a manager at Wiston Inc., prepares a presentation on how the company can compete effectively with other companies in the market. Juan's presentation is most likely based on the company's _____.

business strategy

In the context of the different staffing models that international businesses adopt, the polycentric staffing model:

calls for a heavy use of host-country nationals at all levels in an organization.

The first step in evaluating legal compliance in organizations is to ensure that managers:

clearly understand the laws that govern every aspect of HRM.

The process by which managers and union leaders negotiate acceptable terms and conditions of employment for those workers represented by the unions is called _____.

collective bargaining

The process by which two or more parties exchange information and share meaning is called _____.

communication

In the context of HR strategy formulation, employee benefits and services and wage structure are part of a firm's _____.

compensation strategy

The HR department of Vierra Publishing Corporation has developed a sponsorship scheme to support students facing financial difficulties. Under this scheme, the company will select a meritorious student every year and sponsor his or her education until he or she graduates. In this scenario, the initiative undertaken by the HR department of Vierra Publishing Corporation aligns with the human resource management goal of _____.

complying with and meeting social obligations

In the context of the adaptation model, if HR managers in an organization recruit and retain stable employees who exhibit high levels of commitment and loyalty to the organization, the organization is using the _____.

defender strategy

In the context of HR strategy formulation, performance management is a component of a firm's _____.

development strategy

In the context of HR strategy formulation, the training of employees and managers is a component of a firm's _____.

development strategy

Sue owns a health food manufacturing company. She decides to expand her business and compete in the international market. As a result, she buys land in a neighboring country and opens a production facility there. In the context of international business strategies, Sue is using the strategy of _____.

direct foreign investment

A form of illegal discrimination under Title VII of the Civil Rights Act of 1964 is _____.

disparate impact discrimination

Mohan, an Asian, works as a customer service executive in an American company. He was fired from his job by Judy, his manager. According to her, she fired Mohan because she received five customer complaints against him. However, several of Mohan's white colleagues who also had many complaints registered against them are still working in the company. In the given scenario, Mohan is a victim of _____.

disparate treatment discrimination

Fionart Group owns several apparel and shoe businesses under different brand names. Being the parent corporation, it makes sure that all these businesses have as many vendors in common as possible. Moreover, the management at Fionart Group has a policy of rotating managers across its various businesses. In the given scenario, Fionart Group is following a _____.

diversification strategy

The purpose of a business is to:

earn profit for its owners.

Silis Inc., a manufacturer of automobile parts, imports advanced machinery to improve its products. The HR department of the company organizes training sessions for the employees to learn how to operate the new machine. The department also introduces monthly reward systems to improve employee motivation. In the given scenario, the activities undertaken by the HR department of Silis Inc. most likely align with the human resource management goal of _____.

enhancing productivity and quality

Juliet's Bar and Kitchen, a chain of high-end restaurants based in France, opens an outlet in a foreign country. The owners of Juliet's Bar and Kitchen decide to send employees from their own country to staff higher-level positions in the foreign outlet. They feel that the employees from their own nation will be able to represent the culture and values of Juliet's Bar and Kitchen more effectively in the foreign country. In the given scenario, Juliet's Bar and Kitchen has adopted the:

ethnocentric staffing model.

Doftel Corp., a telecom company, has a long-standing contract with a law firm to review its HRM procedures and practices. The law firm conducts regular audits of Doftel's policies to ensure that they comply with the concerned laws and regulations. Doftel also encourages its staff to regularly review its practices internally. In this context, Doftel Corp. is engaged in _____.

evaluating legal compliance to regulations

A firm's _____ is a body composed of key top managers that makes major policy decisions and sets corporate strategy.

executive committee

In the context of the human resource function in international business, the process of making a product in a firm's domestic marketplace and then selling it in another country is called _____.

exporting

Ruby Mill, a textile company, decides to expand its business and enter new markets. The company enters into contracts with retailers in different countries and ships its products to them. These retailers then sell Ruby Mill's products in the local markets of their countries. In the given scenario, Ruby Mill is using the international business strategy of _____.

exporting

Forty females and sixty males applied for the position of sales representative in a company. Following the selection process, only 20 percent of the females and 80 percent of the males were hired. Despite being qualified for the job, most of the female candidates were rejected. In this case, the female candidates, being a protected class, can establish a prima facie case using the _____.

four-fifths rule

The first step in the unionization process is to:

generate interest in unionization among the employees of an organization.

Freya, a high-level expatriate manager, works with a multinational corporation that follows a single strategy for all its operations. This strategy requires that Freya speak with her superiors from the home office on a weekly basis, carry out their instructions, and maintain information symmetry. Moreover, it forbids her from making any important decisions alone. In the context of the four international strategies proposed by Bartlett and Goshal, Freya works with a company that uses the _____.

global strategy

A turnaround strategy occurs when an organization:

goes through a period of rightsizing by closing operations.

In the context of economic communities, unlike the North American Free Trade Agreement (NAFTA), the European Union (EU):

has a common currency designed to eliminate exchange-rate fluctuations.

Unlike the HR department in a small organization, the HR department in a large organization:

has a full-time HR manager with a secretary or assistant.

In the context of labor and management issues, a situation in which one or both parties believe that reaching an agreement is not imminent is known as a(n) _____.

impasse

In the context of economic communities, the North American Free Trade Agreement (NAFTA):

includes separate labor agreements for each of its member countries.

In the context of the human relations era, the Hawthorne studies revealed that:

individual and group behavior played an important role in organizations.

To achieve the human resource management (HRM) goal of enhancing productivity and quality, organizations should:

invest in training and development of employees.

If a firm uses a strategy of unrelated diversification, its compensation system:

is likely to be focused on the depth of knowledge and skills of its employees.

Astro Inc., a pharmaceutical company, wants to develop a drug to fight a new virus that is affecting people in Asian countries. To assist its team of doctors in developing the drug, the company hires two scientists who had previously conducted research on the virus. The company intends to use their expertise on the subject to create the drug. In the given scenario, Astro Inc. has most likely hired _____.

knowledge workers

Jasper is a manager at an electronic equipment manufacturing firm. He supervises assembly-line workers and manages inventory. He also assigns employees to various tasks and assignments. In the given scenario, Jasper can be traditionally considered to be a(n) _____.

line manager

Finley is known by his colleagues to be assertive, strong willed, and competitive. He always excels at tasks that are assigned to him and prefers to work alone rather than in a team. Moreover, he likes challenges and spontaneity rather than routines. Finley is also condescending in his attitude toward others. In the context of Dutch scholar Geert Hofstede's dimensions of national culture, Finley is most likely to score high on the dimension of _____.

masculinity

In the context of human resource management, companies can establish a competitive advantage by:

motivating their employees to work hard.

Expatriate training is important because multinational organizations are recognizing that managers given overseas assignments:

must be able to communicate with others in the host country.

Practice discrimination is a type of discrimination that occurs:

on a classwide or systemic basis.

Gears Inc., an automobile manufacturing firm, has hired an external agency to handle its employee compensation function so that its HR employees can focus on other tasks, such as legal compliance and employee training. The firm has made this change for two reasons: to increase workforce efficiency by reducing the time spent on the compensation function and to reduce the dissatisfaction caused by the repetitious nature of this function. In the given scenario, Gears Inc. is employing _____.

outsourcing

For an organization, ownership investment, sales revenues, and bank loans that provide capital and cover expenses necessary to conduct business constitute the organization's _____.

physical resources

An investment firm has a clearly-defined organizational structure where trainees and executives report to supervising managers and the supervising managers report to senior managers. In this structure, employees at each level maintain a strictly professional relationship with their superiors. They follow the orders given to them, and they are afraid to clarify queries from or ask questions to their superiors. In the context of Dutch scholar Geert Hofstede's dimensions of national culture, the investment firm will most likely score high on the dimension of:

power distance.

In the context of the forms of illegal discrimination, a plaintiff must prove that an organization intended to discriminate against a particular class of individuals to demonstrate _____.

practice discrimination

Designing jobs that are challenging and provide personal satisfaction to employees helps an organization achieve the human resource management (HRM) goal of:

promoting individual growth

The overall set of expectations held by an individual with respect to what he or she will contribute to an organization and what the organization will provide the individual in return is called a _____.

psychological contract

Yeally Inc., a garment manufacturer, is facing huge losses due to a decline in the demand for its products. In an effort to become profitable again, the management adopts a new strategy and decides to close three of its manufacturing units. It plans to invest the resulting resources into a product that has a high demand. In the given scenario, Yeally Inc. has adopted a _____.

retrenchment strategy

In the context of the evolution of the HR function, _____ was concerned with structuring individual jobs to maximize efficiency and productivity.

scientific management

Early American unionists were less concerned with:

social issues.

Elizabeth is a manager in the accounting department of an investment firm. She monitors the day-to-day financial transactions of the firm. She also collates, analyzes, and reports accounting information to her superiors. In the given scenario, Elizabeth can be traditionally considered to be a(n) _____.

staff manager

Unlike line managers, staff managers: a. include operations managers, financial managers, and marketing managers. b. support efforts and functions that are directly related to achieving organizational goals. c. are directly responsible for the creation of goods and services. d. contribute directly to their organization's bottom line.

support efforts and functions that are directly related to achieving organizational goals.

In the context of collective bargaining, an organization's desire to have a zero increase in wages and benefits as the outcome of bargaining is known as management's _____.

target point

Unlike an H-form organization, _____.

the businesses in an M-form organization are closely related to one other.

The third part of the affirmative action program of an organization is:

the development of a list of action steps specifying what the organization will do to work toward reducing underutilization.

The downturns in the U.S. markets in 2009 showed:

the exact extent of the interdependence of global economies.

U.S. labor unions in current times oppose:

the exportation of jobs to low-paying countries.

In the context of collective bargaining, management's resistance point refers to:

the maximum increase in wages and benefits the management is willing to provide.

Bruce Wang, an employee at Kknox Inc., a small apparel manufacturing company, has been elected by the members of the local union to act as a mediator between the management of the company and the union members in case of disputes. Bruce conveys the demands of the union to the management and also informs the union members about company policies. In the given scenario, Bruce Wang is:

the shop steward of the local union at Kknox Inc.

In the context of direct foreign investment, a disadvantage for a firm entering a new market by purchasing an existing business in a foreign country is that:

this approach may require protracted negotiations over the acquisition.

An advantage of using exporting as an international business strategy is that it:

typically requires only a small outlay of capital.

In the context of union security agreements, a closed shop refers to a:

workplace in which only workers who are already union members may be hired by the employer.