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Human Resource Management, 15e (Dessler)
Chapter 3 Human Resource Management Strategy and Analysis
1) ________ defines the nature of the company's business in terms of how it will match its
internal strengths and weaknesses with its external opportunities and threats in order to maintain
a competitive position.
A) Financial auditing
B) Strategic planning
C) Employee benchmarking
D) Employee testing
Answer: B
Explanation: B) Strategic planning is the company's overall planning for how it will match its
internal strengths and weaknesses with its external opportunities and threats in order to maintain
a competitive position.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
2) ________ involves setting objectives, making forecasts, reviewing alternative courses of
action, evaluating options and implementing the plan.
A) The management planning process
B) Financial auditing
C) Employee testing
D) Employee benchmarking
Answer: A
Explanation: A) The basic management planning process involves setting objectives, making
forecasts, reviewing alternative courses of action, evaluating options and implementing the plan.
Planning is always goal-directed.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
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3) What is the first step in the basic planning process?
A) evaluating the possible alternatives
B) implementing a course of action
C) setting an objective
D) comparing options
Answer: C
Explanation: C) The first step of management planning is to set an objective or a goal.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
4) Which of the following is NOT part of the basic managerial planning?
A) evaluation of best options
B) establishment of clear objectives
C) implementation of the plan
D) building corporate hierarchies
Answer: D
I
Explanation: D) The basic management planning process involves setting objectives, making
alternative courses of action, evaluating which options are
3
2 basic planning forecasts, reviewing
4
best and then choosing and
implementing
the plan. However, managerial planning is hindered by
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the hierarchy of a corporation, which requires that plans meet budgetary requirements and match
the long-term goals of the firm.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
5) Which term indicates the course of action for getting from where you are to where you want to
go?
A) goal
B) plan
C) proposition
D) assessment
Answer: B
Explanation: B) A plan shows the course of action for getting from where you are to where you
want to go in other words, to the goal. Planning is always "goal-directed."
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
2
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6) What is a company's plan for how it will match its internal strengths and weaknesses with
external opportunities and threats to maintain a competitive advantage?
A) strategic plan
B) situation analysis
C) SWOT analysis
D) tactical plan
Answer: A
Explanation: A) A strategic plan is a firm's plan for assessing internal strengths and weaknesses
with external opportunities and threats. The essence of strategic planning involves asking,
"Where are we now as a business and where do we want to be?" Managers then develop specific
strategies for taking a firm where it wants to be.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
7) A course of action that a firm can pursue to achieve its strategic aims is known as a ________.
A) vision
B) goal
C) strategy
D) mission
Answer: C
Explanation: C) A strategy is a course of action taken by a firm to achieve strategic aims.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
3
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8) Strategic management is best defined as the process of identifying and executing the
organization's strategic plan by matching the company's capabilities with its ________.
A) environmental demands
B) competitive standards
C) natural resources
D) hierarchical skills
Answer: A
Explanation: A) Strategic management is the process of identifying and executing the
organization's strategic plan by matching the company's capabilities with the demands of its
environment. Industry standards, resources, and corporate hierarchies are less relevant.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
9) All of the following are steps involved in the strategic management process EXCEPT
________.
A) evaluating the firm's internal and external situation
B) asking, "Where are we now as a business?"
C) formulating a new business direction
D) offshoring low-skill jobs
Answer: D
Explanation: D) While offshoring low-skill jobs may be a strategy for some firms to lower
expenditures, it is not a specific step involved in the strategic management process.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
10) What is the first step in the strategic management process?
A) formulating a strategy
B) asking, "Where are we now as a business?"
C) evaluating the strategic plan
D) implementing an environmental scan
Answer: B
Explanation: B) The first step in the strategic planning process is asking, "Where are we now as
a business?"
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
4
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11) Which of the following is a simple guide used to compile relevant information about a
company's environment including economic, competitive, and political trends that may affect a
firm?
A) workforce requirement matrix
B) environmental scan worksheet
C) external resource system table
D) potential globalization network
Answer: B
Explanation: B) Environmental scan worksheets are a guide for compiling information about the
company's environment. This includes the economic, competitive, and political trends that may
affect the company.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
12) John wants to perform external and internal audits as part of the strategic management
process. What is a frequently used tool to organize relevant information on positive and negative
aspects of the company and environment?
A) BCG matrix
B) QSPM matrix
C) SWOT chart
D) EPS/EBIT table
Answer: C
Explanation: C) The SWOT chart is a tool frequently used by managers who are responsible for
performing external and internal audits. Managers use it to compile and organize the company
strengths, weaknesses, opportunities, and threats.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
5
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13) Which of the following provides a summary of a firm's intended direction and shows, in
broad terms, "what we want to become"?
A) mission statement
B) strategic plan
C) vision statement
D) marketing plan
Answer: C
Explanation: C) A firm's vision statement is a general statement about the intended direction of
the firm and what the business should look like in the future.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
14) The sales director at WebMD is calculating annual sales revenue targets and the number of
new medical-related content providers that the firm needs to maintain a competitive advantage.
In which step of the strategic management process is the sales director involved?
A) evaluating the firm's internal and external strengths
B) defining the business and its mission
C) choosing specific strategies or courses of action
D) evaluating the strategic plan
Answer: C
Explanation: C) The sales director is in the process of translating the firm's mission, which is to
maintain a competitive advantage, choosing specific strategies or courses of action. This step is
the fifth one in the strategic process, and it occurs after the manager makes a strategic choice.
Difficulty: Hard
Chapter: 3
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
6
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15) The ________ of the California Energy Commission indicates that the organization assesses
and acts through public and private partnerships to improve energy systems that promote a strong
economy and a healthy environment.
A) mission statement
B) strategic plan
C) code of ethics
D) vision statement
Answer: A
Explanation: A) A mission statement addresses the question, "What business are we in?"
Mission statements explain the scope of an organization's product or services, and they may also
address issues of vertical integration, geographic coverage, and competitive advantage.
Difficulty: Hard
Chapter: 3
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
16) Goals are initiated by the bottom level of an organization according to the hierarchy of goals
approach to strategic planning.
Answer: FALSE
Explanation: Under the hierarchy of goals approach to strategic planning, goals are set at the top
of a company by the president or CEO. Goals then flow downward to the lowest-ranked
managers and employees.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
17) Steps in the basic management planning process include setting objectives, reviewing
alternative courses of action, and evaluating which options are best.
Answer: TRUE
Explanation: The basic management planning process consists of five steps: setting objectives,
making basic planning forecasts, reviewing alternative courses of action, evaluating which
options are best, and then choosing and implementing your plan planning process.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
7
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18) Strategy is a course of action.
Answer: TRUE
Explanation: Strategy is a course of action the company can pursue to achieve its strategic aims.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
19) A mission statement is a general statement of a company's intended direction that evokes
emotional feelings in the organization's members.
Answer: FALSE
Explanation: A firm's mission statement answers the question, "What business are we in?"
Managers use mission statements to pinpoint whether and how the firm will vertically integrate,
as well as the firm's product scope, geographic coverage, and competitive advantage.
Difficulty: Easy
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
20) A vision statement is broader and more future-oriented than a mission statement.
Answer: TRUE
Explanation: The vision statement is a general statement of the firm's intended direction and
broadly indicates what the firm wants to become. Vision statements focus on the future while
mission statements address what the business does.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
21) Strategic management focuses more on translating a mission into goals than on the functions
of organizing, staffing, and controlling.
Answer: TRUE
Explanation: Strategic management is the process of identifying and executing the
organization's strategic plan by matching the company's capabilities with the demands of its
environment.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
8
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22) Why is strategic planning important to managers? Explain the importance of setting
hierarchical goals.
Answer: Strategic planning is important to managers because in well-run companies the goals
from the very top of the organization downward should form a more-or-less unbroken chain (or
"hierarchy") of goals. These goals, in turn, should be guiding what everyone does. Management
creates a hierarchy or chain of departmental goals, from the top down to the lowest-ranked
managers, and even employees. Then, if everyone does his or her job if each salesperson sells
his or her quota, and the sales manager hires enough good salespeople, and the HR manager
creates the right incentive plan, and the purchasing head buys enough raw materials the
company and the CEO should also accomplish the overall, company-wide strategic goals. You
could therefore say with great certainty that without a clear plan at the top, no one in the
company would have the foggiest notion of what to do. At best, you'd all be working at crosspurposes.
Difficulty: Moderate
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
9
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23) What is strategic management? List and explain each step in the strategic management
process.
Answer: Strategic management is the process of identifying and executing the organization's
mission, by matching the organization's capabilities with the demands of its environment. The
steps are as follows:
Step 1: Where are we now as a business? Here the manager defines the company's current
business and mission. Specifically, what products do we sell, where do we sell them, and how do
our products or services differ from our competitors'?
Step 2: The second step is to ask, "Are we in the right business given our strengths and
weaknesses and the challenges that we face?" To answer this, managers "audit" or study both the
firm's environment and the firm's internal strengths and weaknesses. Prudent managers
periodically assess what's happening in their environments. You need to audit the firm's
environment and strengths and weaknesses. You can use the environmental scanning worksheet
or the SWOT chart.
Step 3: Decide what our new business should be in terms of what we sell, where we will sell it,
and how our products or services differ from competitors' products and services. This step is
where vision statements and mission statements are developed.
Step 4: Translate the desired new direction into strategic goals. At Ford, for example, what
exactly did making "Quality Job One" mean for each department in terms of how they would
boost quality? The answer was laid out in goals such as "no more than 1 initial defect per 10,000
cars."
Step 5: The manager chooses strategies courses of action that will enable the company to
achieve its strategic goals. For example, how should Ford pursue its goal of no more than 1
initial defect per 10,000 cars? Perhaps open two new high-tech plants and put in place new,
rigorous employee selection, training, and performance-appraisal procedures.
Step 6: Strategy execution, which means translating the strategies created into action. This means
actually hiring (or firing) people, building (or closing) plants, and adding (or eliminating)
products and product lines.
Step 7: The manager evaluates the results of his or her planning and execution. Things don't
always turn out as planned. All managers should periodically assess the progress of strategic
decisions.
Difficulty: Hard
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
10
Copyright © 2017 Pearson Education, Inc.
24) Explain the difference between a firm's vision and its mission. How might these impact the
actions of an organization?
Answer: A company's vision is a general statement of the company's intended direction that
shows in broad terms what a company wants to become. A vision statement is future-oriented
while a mission statement is oriented in the present. Mission statements indicate what a company
is doing right now while vision statements are what a company strives to become. The vision
statement will impact how the organization plans for the future and what it focuses. The mission
statement is the plan for what the organization is doing in the current time period and day to day.
Difficulty: Hard
Chapter: 3
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 3.1 Explain with examples each of the eight steps in the strategic
management process.
25) A company's ________ strategy identifies the portfolio of businesses that comprise a firm
and the ways in which these businesses relate to each other.
A) functional
B) business unit
C) corporate-level
D) competitive
Answer: C
Explanation: C) Managers use three types of strategies for the three different levels of a
company. Corporate-level strategy identifies the portfolio of businesses that comprise a firm and
how these businesses relate to each other.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
26) A diversification corporate strategy implies that a firm will ________.
A) expand by adding new product lines
B) reduce the company's size to increase market share
C) save money by producing its own raw materials
D) increase profits by offering one popular product
Answer: A
Explanation: A) A diversification corporate strategy suggests that a firm will expand by adding
new product lines. For example, PepsiCo has diversified over the years by adding chips and
Quaker Oats to its product offerings.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
11
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27) Harley-Davidson sells a line of boots, helmets, and leather jackets indicating that the firm is
pursuing which of the following strategies?
A) consolidation
B) geographic expansion
C) diversification
D) horizontal integration
Answer: C
Explanation: C) A diversification corporate strategy suggests that a firm will expand by adding
new product lines.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
28) When Apple opened its own Apple stores, this was an example of ________.
A) market penetration
B) concentration
C) vertical integration
D) consolidation
Answer: C
Explanation: C) Vertical integration is a strategy that involves expansion through producing raw
material or selling product directly.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
29) Winchester Rugs operates a Web site called www.buyrugsdirect.com, so Winchester Rugs is
most likely using a strategy of ________.
A) consolidation
B) geographic expansion
C) vertical integration
D) concentration
Answer: C
Explanation: C) A vertical integration strategy means that a firm expands by producing its own
raw materials or, in the case of Winchester Rugs, selling its products directly instead of using a
retailer.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
12
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30) Which of the following activities most likely indicates that a firm is implementing a vertical
integration strategy?
A) selling unprofitable divisions
B) producing raw materials
C) aggressively selling a new product
D) purchasing a competitor's firm
Answer: B
Explanation: B) Vertical integration strategies are methods used for expanding a firm that
typically include either selling products directly or producing raw materials rather than relying
on suppliers.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
31) The 2008 announcement by Starbucks that it would be closing approximately 600 of its
stores suggests the firm was using a ________ strategy.
A) consolidation
B) diversification
C) geographic expansion
D) vertical integration
Answer: A
Explanation: A) Starbucks is trying to reduce its size by eliminating some of its stores, so the
firm is using a strategy of consolidation. Diversification and geographic expansion would
involve expanding Starbucks with new products or opening stores in new locations rather than
closing stores.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
13
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32) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company's mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, would best support the argument that Sweet Leaf Tea should
implement a corporate-level strategy of concentration?
A) Sweet Leaf Tea can develop a national name by adding new product lines, such as organic
snack foods and organic coffee.
B) Sweet Leaf Tea's marketing research indicates that customers would purchase the organic
beverages more frequently if the prices were lower.
C) Market data suggests that customers really only want the tea itself, not related products.
D) Sweet Leaf Tea's competitors primarily focus their marketing and distribution efforts on
regional grocery-store chains rather than big box national retailers.
Answer: C
Explanation: C) A corporate-level strategy of concentration means that Sweet Leaf would offer
one product or product line, usually in one market. The customers' interest in only the tea
suggests such a concentration is warranted.
Difficulty: Hard
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
14
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33) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company's mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, would most likely undermine the argument that Sweet Leaf Tea
should implement a corporate-level strategy of vertical integration?
A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its
beverages.
B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor
of tea.
C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience
stores.
D) Sugar farmers used by Sweet Leaf Tea have agreed to a fixed price for the next five years so
that the company can keep prices low.
Answer: A
Explanation: A) A corporate-level strategy of vertical integration would require Sweet Leaf to
expand by either producing its own raw materials or selling its products directly. If the company
lacks the facilities and knowledge to produce raw materials or the price of sugar is guaranteed to
remain stable for five years, then vertical integration is a bad idea.
Difficulty: Hard
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
15
Copyright © 2017 Pearson Education, Inc.
34) Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm
that has gained a loyal following for its use of fresh, organic ingredients in its beverages.
Although beverage industry experts recommended that Sweet Leaf replace the organic cane
sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of
the company's mission to provide a high-quality, organic beverage to consumers. The 11-year
old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet
Leaf Tea recently received multi-million dollar investments which will enable the business to
expand its national presence.
Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a
competitive strategy of differentiation?
A) New Sweet Leaf Tea customers are initially attracted to the unique labels and logo on the
bottles.
B) Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the
associated higher costs.
C) Other brands of bottled iced tea compete with Sweet Leaf Tea by offering new flavors at
competitive prices.
D) Sweet Leaf Tea sells both lemonade and teas in a variety of flavors that appeal to consumers
of all ages.
Answer: B
Explanation: B) Differentiation is a business-level strategy that occurs when a firm seeks to be
unique in its industry along dimensions that are widely valued by buyers. Sweet Leaf has
developed a customer base among individuals who only buy organic products and are willing to
pay more for them, so it has differentiated itself from other beverage firms.
Difficulty: Hard
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
35) A company's ________ strategy identifies how to build and strengthen the business's longterm competitive position in the marketplace.
A) functional
B) corporate-level
C) horizontal
D) competitive
Answer: D
Explanation: D) A business-level or competitive strategy identifies how to build and strengthen
the business's long-term competitive position in the marketplace. For example, the competitive
strategy identifies how Pizza Hut will compete with Papa John's or how Walmart will compete
with Target.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
16
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36) Which of the following refers to any factors that allow a company to differentiate its product
or service from those of its competitors to increase market share?
A) functional strategy
B) competitive advantage
C) distinctive competency
D) related diversification
Answer: B
Explanation: B) A competitive advantage refers to the factors that allow a firm to differentiate
its product or service from competitors to gain market share. Managers aim to achieve
competitive advantages for each of their businesses through cost leadership, differentiation, and
focus.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
37) A company's business-level strategy identifies the ________.
A) ways to strengthen a firm's long-term competitive position in the marketplace
B) tools for diversifying a business portfolio through the acquisition of MNEs
C) means to becoming a low-cost leader within a highly competitive industry
D) ways to carve out a market niche in order to compete for high-end customers
Answer: A
Explanation: A) A competitive or business-level strategy identifies how a firm will build and
strengthen its competitive position in the marketplace, such as how Walmart will compete with
Target.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
38) Companies like Ferrari are known as ________ because they carve out a market niche and
compete by providing a product that customers can attain in no other way.
A) cost leaders
B) focusers
C) visionaries
D) market leaders
Answer: B
Explanation: B) Focusers is a term used to describe firms that carve out market niches and
compete by providing unique products or services. Ferrari provides customers with a unique
automobile that is not readily available anywhere else.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
17
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39) Which of the following strategies identifies the broad activities that each department will
pursue in order to help a business attain its competitive goals?
A) competitive
B) business-level
C) corporate-level
D) functional
Answer: D
Explanation: D) Functional strategies identify what each department must do to help the
business accomplish its strategic goals. Each department should operate within the framework of
the company's overall strategic plan and mission.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
40) A firm's functional strategies identify the broad activities that each ________ will do in order
to help the business accomplish its strategic goals.
A) supplier
B) department
C) executive
D) employee
Answer: B
Explanation: B) Functional strategies stem from a firm's competitive strategies, and they
identify the activities that each department within a firm will pursue in order to help a business
accomplish its competitive goals. Departments such as manufacturing, sales, and human resource
management would be given directives that correspond with a firm's business-level strategy.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
41) John wants his shoe store to adopt the strategy of having the lowest prices on shoes in town.
John is adopting which competitive strategy?
A) focusers
B) differentiation
C) cost leadership
D) providing input to top management about industry trends
Answer: C
Explanation: C) Cost leadership means becoming the low-cost leader in an industry. Walmart is
an example.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
18
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42) What is the primary reason that mergers and acquisitions fail?
A) technology
B) financing
C) personnel
D) stock prices
Answer: C
Explanation: C) The most cited reason for failed mergers and acquisitions is personnel problems
rather than financial or technical issues. Failure to prepare and train employees of both
companies for a merger or acquisition may lead to employee resistance and declining morale and
productivity.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
43) Critical human resource tasks during mergers and acquisitions include all the following
EXCEPT:
A) retaining key talent
B) merging the firms' cultures
C) choosing top management
D) enforcing current rules
Answer: D
Explanation: D) Critical human resource merger or acquisition tasks include choosing top
management, communicating changes to employees, merging the firms' cultures, and retaining
key talent. Rules can often change during such a process.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
19
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44) All of the following are services that human resource consulting companies provide during
mergers and acquisitions EXCEPT ________.
A) aligning compensation programs
B) overseeing database recovery systems
C) helping to determine which employee is best for which role in the new organization
D) identifying key talent and suitable retention strategies
Answer: B
Explanation: B) Human resource consulting companies such as Towers Watson assist firms with
merger-related human resource management services. For example, they identify potential
pension shortfalls, identify key talent and suitable retention strategies, help clients combine
payroll systems, and help determine which employee is best for which role in the new
organization.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
45) Lauren is identifying what each department in her company must do to help the business
accomplish its strategic goals. These are known as ________ strategies.
A) competitive advantage
B) competitive
C) functional
D) vertical integration
Answer: C
Explanation: C) Functional strategies identify what each department must do to help the
business accomplish its strategic goals.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
46) Consolidation keeps the company's strategy up to date by assessing progress toward strategic
goals and taking corrective action as needed.
Answer: FALSE
Explanation: The corporate strategy of consolidation involves reducing the size of a company.
Concentration, diversification, vertical integration, and geographic expansion are other
commonly used corporate strategies.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
20
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47) Managers engage in three levels of strategic planning.
Answer: TRUE
Explanation: Managers use three types of strategic planning. There is corporate-level strategic
planning, business unit (or competitive) strategic planning, and functional (or departmental)
strategic planning.
Difficulty: Easy
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
48) Cost leadership, differentiation, and focus strategies are types of corporate-level strategies.
Answer: FALSE
Explanation: Cost leadership, differentiation, and focus are types of business-level rather than
corporate-level strategies. These strategies, which are also known as competitive strategies,
identify how a firm can build and strengthen its competitive position in the marketplace, such as
how Pizza Hut will compete with Papa John's and how Walmart will compete with Target.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
49) A vertical integration strategy means that a firm will expand by adding new product lines.
Answer: FALSE
Explanation: A vertical integration strategy means the firm expands by producing its own raw
materials or selling its products directly.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
50) McDonald's addressed its lagging profitability by first closing stores operating below its
guidelines. McDonald's used a consolidation strategy.
Answer: TRUE
Explanation: A strategy of consolidation involves reducing the company's size. When
McDonald's closes stores that are not performing up to corporate standards, the firm is
implementing a consolidation strategy.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
21
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51) A business-level strategy is implemented by Pizza Hut, Domino's, Papa John's and Little
Caesar's in their competition with each other for pizza customers.
Answer: TRUE
Explanation: Business-level or competitive strategies address how a firm will build or
strengthen its long-term competitive position in the marketplace. Pizza Hut, Domino's, Papa
John's and Little Caesar's are competitors in the pizza market, and each firm has a business-level
strategy to indicate how to compete.
Difficulty: Moderate
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
52) Identify the three levels of strategic planning and describe the function of each level. What is
the relationship between human resource strategy and a firm's strategic plans?
Answer: The three levels are corporate-level, business/competitive-level, and functional-level
strategies. Corporate-level strategy identifies the portfolio of businesses that comprise the
company and the ways in which these businesses relate to each other. The business-level strategy
is the next level. It identifies how to build and strengthen the business's long-term competitive
position in the marketplace. The lowest level is the functional-level strategies. Functional
strategies identify the basic course of action that each department will pursue in order to help the
business attain its competitive goals. HR strategies are a type of functional strategy.
Every company needs its human resource management policies and activities to make sense in
terms of its broad strategic aims. Strategic human resource management means formulating and
executing human resource policies and practices that produce the employee competencies and
behaviors the company needs to achieve its strategic aims. The basic idea behind strategic human
resource management is simple: In formulating human resource management policies and
activities, the manager's aim must be to produce the employee skills and behaviors that the
company needs to achieve its strategic aims. Management formulates a strategic plan. That
strategic plan implies certain workforce requirements. Given these workforce requirements,
human resource management formulates HR strategies (policies and practices) to produce the
desired workforce skills, competencies, and behaviors. Finally, the human resource manager
identifies the measures he or she can use to gauge the extent to which its new policies and
practices are actually producing the required employee skills and behaviors.
Difficulty: Hard
Chapter: 3
Objective: 2
AACSB: Reflective Thinking
Learning Outcome: 3.2 List with examples the main types of strategies.
22
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53) In a brief essay, describe the three types of competitive strategies that firms use to achieve
competitive advantage. Support your answer with examples of organizations that currently use
each of the strategies.
Answer: The three forms of competitive strategies are cost leadership, differentiation, and focus.
Cost leadership means offering the lowest prices and/or emphasizing low costs and efficiency as
a source of competitive advantage. Walmart is an example of a company pursuing a cost
leadership strategy. Differentiation means emphasizing a source of difference between a
company and its competitors. The differential advantage becomes the source of competitive
advantage. Target follows a differentiation strategy by stressing the sale of more upscale brands
than Walmart. A focus strategy means that a company pursues a small niche in the market place.
Ferrari follows this strategy by offering a product that customers can get no other way.
Difficulty: Hard
Chapter: 3
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 3.2 List with examples the main types of strategies.
54) ________ is a strategic planning tool that shows how each department performance
contributes to achieve the company's overall strategic goal.
A) A strategic objective
B) Visionary strategy
C) Vertical strategy
D) A strategy map
Answer: D
Explanation: D) A strategy map is a planning tool that summarizes how each department's
performance contributes to achieving the company's overall strategic goals.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
23
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55) Formulating and executing human resource policies and practices that produce the employee
competencies and behaviors a company needs to achieve its strategic aims is known as
________.
A) strategic human resource management
B) human resource performance systems
C) high-performance personnel management
D) personnel management by objectives
Answer: A
Explanation: A) Strategic human resource management means formulating and executing
human resource policies and practices that produce the employee competencies and behaviors
the company needs to achieve its strategic aims.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
56) The primary purpose of strategic human resource management is to ________.
A) develop human resource policies that align with industry standards
B) integrate a company's strategic plan with its human resource strategies
C) create stringent appraisal systems that highlight employee weaknesses
D) use offshoring to reduce human resource costs and to initiate globalization
Answer: B
Explanation: B) Strategic human resource management is intended to link a firm's strategic plan
with its human resource strategies. When creating human resource management policies and
activities, a manager needs to produce the employee competencies and behaviors that the
company needs to achieve its strategic aims.
Difficulty: Hard
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
24
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57) In order to generate the desired workforce skill, competencies, and behaviors that a firm
needs to achieve its strategic goals, human resource management must first develop ________.
A) strategic plans
B) HR policies
C) employee skills
D) company norms
Answer: A
Explanation: A) Developing strategic plans and goals is the first step of strategic human
resource management.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
58) John is a manager is looking at HR scorecard data through a ________, which presents the
manager with desktop graphs and charts, showing a computerized picture of how the company is
doing on all the metrics from the HR scorecard process.
A) digital dashboard
B) strategy map
C) HR audit
D) mission plan
Answer: A
Explanation: A) A digital dashboard presents the manager with desktop graphs and charts,
showing a computerized picture of how the company is doing on all the metrics from the HR
scorecard process.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Application of Knowledge
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
25
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59) Which of the following is the final step in the strategic human resource management
process?
A) The manager asks, "What employee skills and behaviors will we need to achieve these plans
and goals?"
B) The manager formulates strategic plans and goals.
C) The manager asks, "Specifically what recruitment, selection, training, and other HR policies
and practices should we put in place so as to produce the required employee skills and
behaviors?"
D) The manager asks, "How much profit can we make on this?"
Answer: C
Explanation: C) The final step in the strategic human resource management process is when the
manager asks, "Specifically what recruitment, selection, training, and other HR policies and
practices should we put in place so as to produce the required employee skills and behaviors?"
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
60) Human resource strategies are the ________ used to support a firm's strategic goals.
A) visions and objectives
B) policies and practices
C) missions and goals
D) theories and tools
Answer: B
Explanation: B) Human resource strategies are the policies and practices developed to support
the employee competencies and behaviors that a firm needs to accomplish its strategic aims.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
26
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61) The ________ is a process for assigning financial and nonfinancial goals or metrics to the
human resource management-related strategy-map chain of activities required for achieving the
company's strategic aims.
A) HR scorecard
B) vision statement
C) digital dashboard
D) benchmarking process
Answer: A
Explanation: A) The HR scorecard process is a process for assigning financial and nonfinancial
goals or metrics to the human resource management-related strategy-map chain of activities
required for achieving the company's strategic aims.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
62) Which of the following is a strategic planning tool that offers an overview of how each
department's performance contributes to achieving the company's overall strategic goals?
A) digital dashboard
B) HR scorecard
C) strategy map
D) HR audit
Answer: C
Explanation: C) The strategy map summarizes how each department's performance contributes
to achieving the company's overall strategic goals.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
27
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63) Which of the following refers to a process for assigning financial and nonfinancial goals to
the HR management-related chain of activities required for achieving the company's strategic
aims and for monitoring results?
A) strategy map
B) HR scorecard
C) HR feedback scale
D) digital dashboard
Answer: B
Explanation: B) The HR scorecard is a process for assigning financial and nonfinancial goals to
the HR management-related chain of activities required for achieving the company's strategic
aims and for monitoring results.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
64) A ________ presents a manager with desktop graphs and charts that illustrate where the
company stands on metrics from the HR scorecard process.
A) strategy map
B) business plan
C) scanning worksheet
D) digital dashboard
Answer: D
Explanation: D) The digital dashboard is comprised of desktop graphs and charts that illustrate
where the company stands on metrics from the HR scorecard process. A digital dashboard on a
computer usually displays real-time trends for strategy map activities which enable managers to
take corrective action.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
28
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65) The concise measurement system used by companies to show the quantitative standards the
firm uses to measure HR activities, employee behaviors resulting from the activities, and the
strategically relevant organizational outcomes of those employee behaviors is called a(n)
________.
A) evaluation system
B) HR scorecard
C) appraisal system
D) evaluation benchmark
Answer: B
Explanation: B) Managers use HR scorecards to quantify the relationships between HR
activities, resulting employee behaviors, and resulting firm-wide strategic outcomes and
performance. HR scorecards quantify the strategy map.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
66) Which of the following is used to manage employee performance and to align all employees
with the key objectives a firm needs to achieve its strategic goals?
A) functional planning system
B) HR scorecard
C) annual HR benchmarks
D) high-performance work system
Answer: B
Explanation: B) HR scorecards are used to manage employee performance and to align all
employees with the key objectives a firm needs to achieve its strategic goals. The HR scorecard
process enables managers to assign financial and nonfinancial goals, monitor and assess
performances, and quickly take corrective action. Benchmarking is used to make comparisons
with comparable companies.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
29
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67) Strategic human resource management means formulating and executing HR systems that
produce the employee competencies and behaviors a firm needs to achieve its strategic aims.
Answer: TRUE
Explanation: Strategic human resource management refers to the policies and activities
developed in order to produce the employee skills and behaviors needed for a firm to achieve its
strategic aims. Management creates a strategic plan that implies certain workforce requirements
and policies and practices to produce certain workforce skills.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
68) The specific human resource policies and practices used to support a firm's strategic goals
are known as human resource strategies.
Answer: TRUE
Explanation: Human resource strategies are the policies and practices developed in order to
produce personnel with the skills, competencies, and behaviors needed to achieve a firm's
objectives.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
69) HR scorecards present managers with desktop graphs and charts of how a firm's HR
strategies compare to those of other firms in the same industry.
Answer: FALSE
Explanation: A digital dashboard provides managers with desktop graphs and charts of where a
company stands based on the metrics from the HR scorecard process. An HR scorecard is a
process for assigning financial and nonfinancial goals or metrics to the HR management-related
chain of activities required for achieving the firm's strategic aims and for monitoring results.
Difficulty: Easy
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
30
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70) Strategy maps help managers link the company's strategic plan with departmental activities.
Answer: TRUE
Explanation: The strategy map provides an overview of how each department's performance
contributes to achieving the company's overall strategic goals. It helps the manager understand
the role his or her department plays in helping to execute the company's strategic plan.
Difficulty: Moderate
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
71) In a brief essay, explain how the strategy map, the HR scorecard, and the digital dashboard
are used in strategic human resource management.
Answer: Managers use the strategy map, the HR scorecard, and the digital dashboard to help
them translate the company's broad strategic goals into specific human resource management
policies and activities. The strategy map shows the "big picture" of how each department's
performance contributes to achieving the company's overall strategic goals. It helps the manager
understand the role his or her department plays in helping to execute the company's strategic
plan. Many employers quantify and computerize the map's activities, and the HR scorecard helps
them to do so. The HR scorecard is not a scorecard. It refers to a process for assigning financial
and nonfinancial goals or metrics to the human resource management related chain of activities
required for achieving the company's strategic aims and for monitoring results. The saying "a
picture is worth a thousand words" explains the purpose of the digital dashboard. A digital
dashboard presents the manager with desktop graphs and charts, and so a computerized picture
of where the company stands on all those metrics from the HR scorecard process. A top
manager's dashboard might display on the PC screen real-time trends for strategy map activities,
which gives the manager time to take corrective action.
Difficulty: Hard
Chapter: 3
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 3.3 Define strategic human resource management and give an example of
strategic human resource management in practice.
31
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72) Which of the following terms refers to the quantitative measure of a human resource
management yardstick such as employee turnover or qualified applicants per position?
A) human resource audits
B) human resource metrics
C) management by objectives
D) human resource scorecards
Answer: B
Explanation: B) A human resource metric is the quantitative measure of a human resource
management yardstick such as employee turnover, qualified applicants per position, or hours of
training per employee. Such metrics are used to assess a firm's HR performance and to compare
one company's HR performance with another.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
73) The use of human resource metrics is essential for ________.
A) management by objectives
B) emergent employee behaviors
C) corporate-level strategies
D) evidence-based management
Answer: D
Explanation: D) Using concrete, quantifiable evidence that is available from human resource
metrics is essential to evidence-based management. Evidence-based management involves the
use of data, facts, analytics, scientific rigor, critical evaluation, and critically evaluated
research/case studies to support human resource management proposals, decisions, practices, and
conclusions.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
32
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74) Which of the following terms refers to the process of comparing and analyzing the practices
of one firm with those of a high-performing company?
A) benchmarking
B) diversifying
C) strategizing
D) outsourcing
Answer: A
Explanation: A) Benchmarking refers to comparing and analyzing the practices of highperforming companies to your own in order to understand what they do that makes them better.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
75) Which of the following refers to an analysis by which an organization measures where it
currently stands and determines what it has to accomplish to improve its HR functions?
A) HR methodology
B) HR benchmark
C) HR checklist
D) HR audit
Answer: D
Explanation: D) An HR audit is an analysis by which an organization measures where it
currently stands and determines what it has to accomplish to improve its HR functions.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
76) All of the following are commonly addressed in an HR audit EXCEPT ________.
A) exempt workers
B) job descriptions
C) accounting expenses
D) workers' compensation benefits
Answer: C
Explanation: C) Although HR audits vary in scope and focus, most cover such issues as exempt
and non-exempt workers, job descriptions, and benefits. Accounting expenses are less likely to
be addressed in an HR audit.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
33
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77) Which term refers to software applications used to analyze and draw conclusions from HR
data?
A) data mines
B) talent analytics
C) HR scorecards
D) digital dashboards
Answer: B
Explanation: B) Employers increasingly use workforce analytics (or "talent analytics") software
applications to analyze their human resources data and to draw conclusions from it. Data mining
techniques are used in talent analytics software applications.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
78) Executives at Hartford Clothing, a retail department store chain, want to find out what
products their customers buy, when they purchase products, and what days of the week are most
popular for shopping. Executives want to discover customer patterns and make predictions about
their customers' buying habits. What would be the most effective tool for Hartford?
A) data mining system
B) talent value model
C) financial audit
D) strategy map
Answer: A
Explanation: A) Data mining is "the set of activities used to find new, hidden, or unexpected
patterns in data." Data mining systems use tools like statistical analysis and intelligent agents to
sift through data looking for relationships. Department stores often use data mining to make
predictions about their customers' shopping habits.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Application of Knowledge
Learning Outcome: 3.4 Give at least five examples of HR metrics.
34
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79) Which of the following questions would LEAST likely be answered by the use of workforce
analytics software?
A) Which departments need improvement?
B) What hiring policies are standard in the industry?
C) How many workers will the firm need in five years?
D) Why do employees choose to leave the organization?
Answer: B
Explanation: B) Employers increasingly use workforce analytics (or "talent analytics") software
applications to analyze their human resources data and discover patterns and to draw conclusions
from it. Such software can help identify departmental needs, estimate future workforce
requirements, and predict employee turnover. Industry-wide hiring policies are less likely to be
addressed.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Application of Knowledge
Learning Outcome: 3.4 Give at least five examples of HR metrics.
80) An HR manager conducting an HR audit on compensation would most likely search for
________.
A) current job descriptions
B) workforce health and safety training
C) completed benefit enrollment forms
D) compliance with state and federal laws
Answer: D
Explanation: D) When auditing for compensation compliance, a manager is most likely ensuring
that the firm is meeting all state and federal laws regarding overtime and timecards. Job
descriptions, health and safety, and benefits would most likely be addressed in other types of HR
audits.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Application of Knowledge
Learning Outcome: 3.4 Give at least five examples of HR metrics.
35
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81) Like the scientific method, evidence-based HR management should have all of the following
characteristics EXCEPT ________.
A) use of data
B) experimentation
C) subjectivity
D) prediction
Answer: C
Explanation: C) Evidence-based HR management should be objective rather than subjective to
ensure validity. Like scientific experiments, evidence-based management requires objectivity,
experimentation, quantification, explanation, prediction, and replication.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
82) What tool might be best used to assess recruitment effectiveness?
A) computerized applicant tracking systems
B) benchmarking
C) data mines
D) strategy map
Answer: A
Explanation: A) Many employers do track and analyze recruitment data with the help of
computerized applicant tracking systems (ATS).
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
83) Human resource metrics are used to assess a firm's HR performance and to compare one
firm's HR performance with that of another firm.
Answer: TRUE
Explanation: A human resource metric is the quantitative measure of some human resource
management yardstick like employee turnover. Such metrics can be used to assess a firm's HR
performance and to compare one firm's HR performance with that of another firm.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
36
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84) Human resource audits and benchmarking are two critical tools used by managers who
implement an evidence-based approach to human resource management.
Answer: TRUE
Explanation: Human resource audits and benchmarking are two critical tools for managers using
an evidence-based approach. Evidence-based HR management uses data, facts, analytics,
scientific rigor, critical evaluation, and case studies to support HR management proposals,
decisions, practices, and conclusions.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
85) A strategic audit would most likely NOT be used by an HR manager to assess a firm's
procedures and practices in regards to employee benefits.
Answer: FALSE
Explanation: Human resources managers often collect data on matters such as employee
turnover and safety via strategic audit. An HR audit is an analysis by which an organization
measures where it currently stands and determines what it has to accomplish to improve its HR
functions.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
86) HR audits typically review a firm's recruiting, testing, and training methods to ensure
compliance with government and organization regulations.
Answer: TRUE
Explanation: The HR audit generally involves reviewing the functioning of most aspects of the
company's human resource function (recruiting, testing, training, and so on), usually using a
checklist, as well as ensuring that the employer is adhering to regulations, laws, and company
policies.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
37
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87) Although applicant tracking systems typically increase overall recruiting costs, the benefits
of hiring high-performing employees are worth the investment for most firms.
Answer: FALSE
Explanation: Applicant tracking systems tend to reduce recruiting costs because recruitment
dollars are shifted from less effective sources to more effective ones.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
88) Benchmarking involves analyzing the demographic make-up of an organization over a
specific period to determine the overall diversity of the firm.
Answer: FALSE
Explanation: Benchmarking means comparing the practices of high-performing companies to
your own, in order to understand what they do that makes them better.
Difficulty: Easy
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
89) A construction firm that wants to compare its own HR-related metric results with those of
other construction firms can use a benchmarking service provided by SHRM.
Answer: TRUE
Explanation: SHRM provides a customized benchmarking service. This enables employers to
compare their own HR-related metric results with those of other companies. SHRM's service
provides benchmark figures for many industries.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
90) Benchmarking indicates the extent to which a firm's HR practices are helping to accomplish
long-term strategic goals.
Answer: FALSE
Explanation: Benchmarking may not show the extent to which a firm's HR practices are helping
achieve its strategic goals. Strategy-based metrics specifically focus on measuring the activities
that contribute to achieving a company's strategic aims.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
38
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91) What are human resource metrics? Why are human resource metrics important in highperformance work systems?
Answer: A human resource metric is the quantitative measure of some human resource
management yardstick such as employee turnover, hours of training per employee, or qualified
applicants per position. You can use such metrics to assess your own company's HR
performance, and to compare one company's with another's. Human resource metrics are critical
in creating high-performance human resource policies and practices. This is because they enable
managers to benchmark. Benchmarking means comparing and analyzing the practices of highperforming companies to your own in order to understand what they do that makes them better.
Difficulty: Moderate
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
92) What are the HR uses of data analytics and big data?
Answer: Data analytics means using statistical and mathematical analysis and algorithms to find
relationships and make predictions. For example, when online bookstores use algorithms to
predict which books you're most likely to buy based on things like what books you've already
bought and similarities between you and other groups, they are using data analytics. Data mining
is crucial for data analytics and is "the set of activities used to find new, hidden, or unexpected
patterns in data." Data mining sifts through huge amounts of employee data to identify
correlations that employers then use to improve their employee-selection and other practices.
Thanks to data mining, the manager can discover patterns that he or she can then use to make
predictions.
Big data is basically data analytics on steroids, using very large data sets. The basic idea (of
scientifically analyzing data to find relationships and make predictions) is the same. However,
with "big data" the volume, velocity, and variety of data that are analyzed are much greater. In
terms of volume, for example, Walmart now collects about 2.5 petabytes of data 2.5 million
gigabytes every hour from its customer transactions. Similarly, in terms of velocity, all these
data are being created more or less instantaneously (as at Walmart); that means companies can
use them to more quickly to adapt in real time (for instance, to who's buying what products, and
therefore how to adjust online promotions). Finally, big data capitalizes on the huge variety of
data now available. For instance, data come not just from Walmart's transactions but from
customers' mobile phones, GPS, and social networks too.
Difficulty: Hard
Chapter: 3
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 3.4 Give at least five examples of HR metrics.
39
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93) Which of the following terms refers to a set of human resource management policies and
practices that promote organizational effectiveness?
A) management by objectives system
B) human resource metric
C) high-performance work system
D) strategic human resource map
Answer: C
Explanation: C) A high-performance work system is a set of human resource management
policies and practices that promote organizational effectiveness. Such HPWSs differ from less
productive systems and are often a distinguishing characteristic of high-performing firms.
Difficulty: Easy
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
94) High-performance work organizations are most likely characterized by all of the following
EXCEPT ________.
A) using more selection tests
B) empowered front-line workers
C) extensive training
D) commitment to high production rates
Answer: D
Explanation: D) High-performance work organizations are characterized by paying more,
training more, using more sophisticated recruitment and hiring practices and using more selfmanaging work teams. Being committed to high production rates is not necessarily a
characteristic of an HPWS.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
40
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95) All of the following practices are most likely implemented by companies with highperformance work systems EXCEPT ________.
A) hiring employees based on validated selection tests
B) providing pay increases based on service years
C) extensive training of the workforce
D) utilizing self-managing work teams
Answer: B
Explanation: B) In comparison to low-performance companies, high-performance companies are
more likely to use validated selection tests when hiring employees, fill jobs internally, and use
self-managing work teams. Pay increases are more likely to be based on job performance rather
than the number of years an employee has worked for a firm.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
96) Reese Enterprises seeks to fill upper-level positions internally whenever possible and uses
validated selection tests when considering external hires. This most likely suggests the company
is developing a ________.
A) high-performance work system
B) scorecard management system
C) benchmark and metric analysis
D) management by objectives strategy
Answer: A
Explanation: A) A firm that attempts to fill upper-level positions internally and uses validated
selection tests for external candidates is most likely implementing a high-performance work
system. Metrics and benchmarks are frequently used to identify and create the policies and
practices of HPWSs, but the manner in which jobs are filled does not necessarily indicate the use
of metrics and benchmarks.
Difficulty: Hard
Chapter: 3
Objective: 5
AACSB: Application of Knowledge
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
41
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97) MAX Computers manufactures affordable laptops, desktops, and tablets at its factory in
Arizona. MAX has experienced a moderate amount of financial success, but upper management
wants the firm to grow at a faster rate and become a bigger player in the highly competitive
computer market. The firm's greatest problems relate to its employees. Employee turnover is
high most employees at MAX leave within two years or less of being hired. In addition, the
rate of productivity among employees is not as high as executives would like. The vice president
of human resources is considering moving MAX towards a high-performance work system.
Which of the following best supports the argument that MAX should move towards a highperformance work system?
A) MAX competitors regularly use benchmarking to compare their employees to those in other
firms.
B) MAX customers purchase new computers every two years according to online customer
surveys.
C) Outsourcing clerical tasks would enable MAX to raise employee salaries and increase
productivity.
D) Using advanced recruitment and hiring practices will allow MAX to improve employee
productivity.
Answer: D
Explanation: D) A high-performance work system is a set of HR management policies and
practices that jointly produce superior employee performance. HPWSs typically pay more, train
employees more, use more advanced recruitment and hiring practices, and use self-managing
work teams. MAX would improve employee productivity and reduce turnovers if it effectively
recruited and tested applicants to make sure they were the right people for the job.
Difficulty: Hard
Chapter: 3
Objective: 5
AACSB: Application of Knowledge
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
42
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98) MAX Computers manufactures affordable laptops and desktops at its factory in Arizona.
MAX has experienced a moderate amount of financial success, but upper management wants the
firm to grow at a faster rate and become a bigger player in the highly competitive computer
market. The firm's greatest problems relate to its employees. Employee turnover is high most
employees at MAX leave within two years or less of being hired. In addition, the rate of
productivity among employees is not as high as executives would like. The vice president of
human resources is considering moving MAX towards a high-performance work system.
Which of the following questions is most relevant to MAX's decision to move toward a highperformance work system?
A) How would the implementation of self-managing work teams affect employee morale and
work standards at MAX?
B) How will qualitative performance measures address the needs of MAX employees in regards
to the firm's benefits plan?
C) What roles should line managers, staff managers, and HR managers at MAX play in
performance appraisals?
D) What economic and demographic trends in the U.S. are related to the employee turnover rate
at MAX?
Answer: A
Explanation: A) HPWSs typically pay more, train employees more, use more advanced
recruitment and hiring practices, and use self-managing work teams. By answering the question
about employee morale and work standards, it would become clear that MAX should move
towards a HPWS and self-managing work teams. Economic trends, benefits plans, and
managerial roles in performance appraisals are less relevant to a HPWS.
Difficulty: Hard
Chapter: 3
Objective: 5
AACSB: Application of Knowledge
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
99) Which of the following is most likely a true statement about high-performance companies?
A) Employees receive extensive training.
B) Employee turnover is extremely high.
C) Only executives are eligible for incentive pay.
D) The majority of jobs are filled externally.
Answer: A
Explanation: A) In a comparison of low-performance and high-performance companies, HPWSs
typically pay more, train employees more, use more advanced recruitment and hiring practices,
and use self-managing work teams.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
43
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100) The primary purpose of implementing high-performance practices such as recruiting,
screening, and training is to ________.
A) foster a strong organizational culture
B) create management opportunities for new hires
C) develop a trained, flexible, and self-motivated workforce
D) utilize benchmarks to compare personnel skills within an industry
Answer: C
Explanation: C) High-performance practices generally aspire to help workers to manage
themselves. The primary purpose of recruiting, screening, training, and other human resource
practices is to foster a trained, empowered, self-motivated, and flexible workforce.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
101) According to recent studies, high-performance work organizations recruit more job
candidates, use more selection tests, and spend many more hours training employees.
Answer: TRUE
Explanation: Studies show that high-performance work systems' policies and practices do differ
from less productive ones. High-performing companies recruit more job candidates, use more
selection tests, and spend many more hours training employees
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
102) Human resource practices, such as hiring based on selection tests, pay raises based on work
performance, and training provided to new and experienced employees, contribute to a
company's ability to achieve high-performance levels.
Answer: TRUE
Explanation: HR practices of high-performance firms differ from those of low-performance
firms. High-performance firms typically hire from within, use selection tests, tie pay raises to
work performance, and provide all employees with training.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
44
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103) Companies with empowered, highly trained, flexible workforces have a competitive
advantage.
Answer: TRUE
Explanation: Firms that adhere to high-performance HR practices and have empowered, highly
trained, and flexible workforces gain a competitive advantage. The concept of competitive
advantage refers to the factors that allow a firm to differentiate its products or services from its
competitors to gain market share, and HR can serve as a competitive advantage.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
104) High-performance companies are less likely than low-performance companies to invest in
costly employee training programs.
Answer: FALSE
Explanation: High-performance firms are more likely to invest in employee training for both
new and current employees. High-performance companies invest in their employees in order to
develop a workforce that matches the needs of the company.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
105) A high-performance work system is a tool that quantifies the relationship between HR
activities, employee behaviors, and firm performance.
Answer: FALSE
Explanation: An HR scorecard helps the manager quantify the relationships between (1) the HR
activities (amount of testing, training, and so forth), (2) the resulting employee behaviors
(customer service, for instance), and (3) the resulting firm-wide strategic outcomes and
performance (such as customer satisfaction and profitability). A high-performance work system
may involve the use of HR scorecards but not necessarily.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
45
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106) What is a high-performance work system? What role does strategic human resource
management play in high-performance work systems?
Answer: A high-performance work system is a set of human resource management policies and
practices that promote organizational effectiveness. A high-performance work system is what
managers now expect from the HR system. It means that the HR system is designed to maximize
the overall quality of human capital throughout the organization. Based on ongoing research,
firms that use HPWS practices perform at a significantly higher level than those that do not.
Strategic human resource management is significant to a high-performance work system.
Strategic human resource management refers to formulating and executing human resource
policies and practices that produce the employee competencies and behaviors the company needs
to achieve its strategic aims and to maximize its human resources. In formulating human
resource management policies and activities, the manager's aim must be to produce the employee
skills and behaviors that the company needs to achieve its strategic aims. For HPWSs, that most
likely means implementing policies and practices regarding selection tests, training, merit
increases, and incentive pay.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
107) What is an applicant tracking system? How can such systems improve a firm's talent
management efforts?
Answer: An applicant tracking system allows a firm to collect and assess recruitment metrics.
Metrics might include, "quality of new hires" and on "which recruitment sources produce the
most new hires." Applicant tracking systems support the employer's talent management efforts in
other ways. For example, installing an Authoria ATS enabled the Thomson Reuters Company to
identify the sources, candidate traits, and best practices that work best in each geographic area
where they do business. This in turn enabled them to reduce recruiting costs, for instance, by
shifting recruitment dollars from less effective sources to ones that are more effective. Similarly,
the ATS can also help hire better employees, for instance, by helping the employer see which
employee competencies correlate with superior performance.
Difficulty: Moderate
Chapter: 3
Objective: 5
AACSB: Analytical Thinking
Learning Outcome: 3.5 Give five examples of what employers can do to have high-performance
systems.
46
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108) According to the text, approximately what percentage of the U.S. workforce feels engaged?
A) 5%
B) 30%
C) 50%
D) 75%
Answer: B
Explanation: B) Depending on the study, only about 21-30% of employees nationally are
engaged, with one Gallop poll finding 30% engaged.
Difficulty: Moderate
Chapter: 3
Objective: 6
AACSB: Analytical Thinking
Learning Outcome: 3.6 Describe how you would execute a program to improve employee
engagement.
109) Which of the following is NOT one of the steps KIA UK used in their employee
engagement HR strategy?
A) set measurable objectives
B) focused on bonus-based compensation
C) held an extensive leadership development program
D) improved internal communications
Answer: B
Explanation: B) Kia UK made a number of changes to its compensation and other policies but in
fact eliminated bonuses and substituted fixed-rate percentage-based salary increases.
Difficulty: Moderate
Chapter: 3
Objective: 6
AACSB: Analytical Thinking
Learning Outcome: 3.6 Describe how you would execute a program to improve employee
engagement.
110) Research suggests a majority of workers in the United States are engaged at work.
Answer: FALSE
Explanation: Research suggests only about 21-30% of employees nationally are engaged.
Difficulty: Easy
Chapter: 3
Objective: 6
AACSB: Analytical Thinking
Learning Outcome: 3.6 Describe how you would execute a program to improve employee
engagement.
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Human Resource Management, 15e (Dessler)
Chapter 1 Introduction to Human Resource Management
1) The basic functions of the management process include all of the following EXCEPT
________.
A) planning
B) organizing
C) outsourcing
D) leading
Answer: C
Explanation: C) The five basic functions of the management process include planning,
organizing, staffing, leading, and controlling. Outsourcing jobs may be an aspect of human
resources, but it is not one of the primary management functions.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
2) Which of the following is the person responsible for accomplishing an organization's goals by
managing the efforts of the organization's people?
A) manager
B) entrepreneur
C) generalist
D) marketer
Answer: A
Explanation: A) The manager is the person responsible for accomplishing an organization's
goals by planning, organizing, staffing, leading, and controlling the efforts of the organization's
people. An entrepreneur may manage people or may hire a manager to do so instead, but
entrepreneurs are defined as individuals who start their own businesses.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
1
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3) Which of the following includes five basic functions planning, organizing, staffing, leading,
and controlling?
A) a job analysis
B) strategic management
C) the management process
D) adaptability screening
Answer: C
Explanation: C) The management process includes five basic functions planning, organizing,
staffing, leading, and controlling. Strategic management refers to the process of identifying and
executing the organization's mission by matching its capabilities with the demands of its
environment.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
4) Which function of the management process requires a manager to establish goals and
standards and to develop rules and procedures?
A) planning
B) organizing
C) staffing
D) leading
Answer: A
Explanation: A) Planning, organizing, staffing, leading, and controlling are the five main
functions of management. The planning function involves establishing goals and standards,
developing rules and procedures, and forecasting.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
2
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5) Claire spends most of her time at work establishing goals for her staff of fifty employees and
developing procedures for various tasks. In which function of the management process does
Claire spend most of her time?
A) leading
B) controlling
C) organizing
D) planning
Answer: D
Explanation: D) The planning function of the management process requires managers to
establish goals and standards, develop rules and procedures, and develop plans and forecast.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
6) Jolene, a manager, delegates the authority for a project to Lee, her subordinate. Jolene is most
likely involved in which function of the management process?
A) staffing
B) organizing
C) motivating
D) leading
Answer: B
Explanation: B) The organizing function of the management process includes delegating
authority to subordinates and establishing channels of communication. The organizing function
also includes establishing departments and coordinating the work of subordinates.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
3
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7) When managers use metrics to assess performance and then develop strategies for corrective
action, they are performing the ________ function of the management process.
A) planning
B) leading
C) controlling
D) organizing
Answer: C
Explanation: C) The controlling function of the management process requires managers to set
standards such as sales quotas, quality, standards, or production levels. Managers then compare
actual performance with the standards, which often involves the use of metrics. Corrective action
is then taken when necessary.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
8) Which function of the management process includes selecting employees, setting performance
standards, and compensating employees?
A) organizing
B) planning
C) motivating
D) staffing
Answer: D
Explanation: D) The staffing function of the management process determines what type of
people you should hire, recruiting prospective employees, selecting employees, training and
developing employees, setting performance standards, evaluating performance, counseling
employees, compensating employees.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
4
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9) Larry, a manager at a commercial real estate firm, has established a monthly sales quota for
his sales team. Which basic function of management best describes Larry's actions?
A) planning
B) organizing
C) controlling
D) staffing
Answer: C
Explanation: C) The controlling function involves setting standards such as sales quotas, quality
standards or production levels; checking to see how actual performance compares with these
standards; taking corrective action, as needed.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
10) ________ is the process of acquiring, training, appraising, and compensating employees, and
attending to their labor relations, health and safety, and fairness concerns.
A) Labor relations
B) Human resource management
C) Behavioral management
D) Organizational health and safety management
Answer: B
Explanation: B) Human resource management is the process of acquiring, training, appraising,
and compensating employees, and of attending to their labor relations, health and safety, and
fairness concerns. HRM falls under the staffing function of the management process.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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11) In the management process, which of the following is an activity associated with the leading
function?
A) motivating subordinates
B) setting performance standards
C) training new employees
D) developing procedures
Answer: A
Explanation: A) The leading function of the management process requires a manager to get
others to get the job done; maintaining morale, and motivating subordinates.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
12) Personnel activities associated with human resource management most likely include all of
the following EXCEPT ________.
A) orienting and training new employees
B) appraising employee performance
C) building employee commitment
D) developing customer relationships
Answer: D
Explanation: D) Human resource management involves numerous personnel-related activities,
and HR managers are less likely to interact with customers. Managing compensation, orienting
new employees, appraising employee performance, and developing employee commitment are
typical aspects of the HR manager's job.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
6
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13) Since human resources is important to all managers, which is NOT a personnel mistake a
manager wants to avoid making while managing?
A) waste time with useless interviews
B) hire the wrong person
C) have your people not doing their best
D) experience low turnover
Answer: D
Explanation: D) Personnel mistakes a manager does not want to make while managing are
hiring the wrong person for the job; experience high turnover; have your people not doing their
best; waste time with useless interviews; have your company taken to court because of your
discriminatory actions; have your company cited under federal occupational safety laws for
unsafe practices; have some employees think their salaries are unfair relative to others in the
organization; allow a lack of training to undermine your department's effectiveness; commit any
unfair labor practices.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
14) Approximately what percentage of people in the United States work for small firms?
A) 10%
B) 25%
C) 50%
D) 80%
Answer: C
Explanation: C) More than half the people working in the United States work for small firms.
Small businesses as a group also account for most of the 600,000 or so new businesses created
every year.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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15) ________ is the right to make decisions, to direct the work of others, and to give orders.
A) Leadership
B) Authority
C) Management
D) Responsibility
Answer: B
Explanation: B) The right to make decisions, to direct the work of others, and to give orders is
known as authority.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
16) Which of the following best defines line authority?
A) management over a small staff in a public firm
B) management with flexible decision-making powers
C) a manager's right to advise other managers or employees
D) a manager's right to issue orders to other managers or employees
Answer: D
Explanation: D) Line authority is a manager's right to issue orders to other managers or
employees, which creates a superior-subordinate relationship. Staff authority refers to a
manager's right to advise other managers or employees, which creates an advisory relationship.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
17) In most organizations, human resource managers are categorized as ________, who assist
and advise ________ in areas like recruiting, hiring, and compensation.
A) staff managers; line managers
B) line managers; middle managers
C) line managers; staff managers
D) functional managers; staff managers
Answer: A
Explanation: A) Human resource managers are usually staff managers. They assist and advise
line managers in areas like recruiting, hiring, and compensation. However, line managers still
have human resource duties.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
8
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18) Gerard is authorized to direct the work of subordinates and is responsible for accomplishing
the organization's tasks. Gerard is most likely a ________.
A) training specialist
B) staff manager
C) line manager
D) recruiter
Answer: C
Explanation: C) A line manager is authorized to direct the work of subordinates and is
responsible for accomplishing the organization's tasks. Unlike line managers, staff managers lack
the authority to issue orders down the chain of command. Recruiters and training specialists are
specialties within the HR department, and HR managers are usually staff managers rather than
line managers.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
19) Which of the following is NOT considered one of the line supervisor's responsibilities for
effective human resources management under the general headings outlined by a major company
discussed in the textbook?
A) protecting employees' health and physical condition
B) changing employees' attitudes regarding work
C) developing the abilities of each person
D) interpreting the company policies and procedures
Answer: B
Explanation: B) The direct handling of people has always been part of every line manager's
duties, from the president down to first-line supervisors. One major company outlines its line
supervisor's responsibilities for effective human resource management under these general
headings: placing the right person in the right job; starting new employees in the organization
(orientation); training employees for jobs that are new to them; improving the job performance of
each person; gaining cooperation, and developing smooth working relationships; interpreting the
company's policies and procedures; controlling labor costs; developing the abilities of each
person; creating and maintaining department morale; protecting employees' health and physical
condition.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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20) A line manager's human resource responsibilities most likely include all of the following
EXCEPT ________.
A) maintaining department morale
B) controlling labor costs
C) protecting employees' health
D) marketing new products and services
Answer: D
Explanation: D) Human resource management most often involves creating and maintaining
department morale, controlling labor costs, and protecting employees' health and physical
condition. Handling personnel is an integral part of every line manager's duties, but marketing
new products is not a personnel issue and would be handled by the marketing department.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
21) Which of the following refers to the authority a manager has to advise other managers or
employees?
A) staff authority
B) line authority
C) functional authority
D) corporate authority
Answer: C
Explanation: C) Staff authority refers to a manager's right to advise other managers or
employees, which creates an advisory relationship.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
22) Which of the following is most likely a line function of the human resource manager?
A) ensuring that line managers are implementing HR policies
B) advising top managers about how to implement EEO laws
C) representing the interests of employees to senior management
D) directing the activities of subordinates in the HR department
Answer: D
Explanation: D) Directing members of the HR staff is a line function.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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23) One of the ________ functions of a human resource manager includes directing the activities
of his or her subordinates in the HR department.
A) coordinative
B) corporate
C) staff
D) line
Answer: D
Explanation: D) Line functions and staff functions are the distinct functions of HR managers.
Examples of line functions include a human resource manager directing the activities of the
people in his or her own department.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
24) Will works at a position in his organization where he maintain contacts within the local
community and travels to search for qualified job applicants. Will's position is best described as:
A) recruiter
B) manager
C) labor relations specialist
D) job analyst
Answer: A
Explanation: A) The recruiter maintains contacts within the community and perhaps travels
extensively to search for qualified job applicants.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
25) ________ functions involve assisting and advising line managers.
A) Staff
B) Advocacy
C) Line
D) Coordinative
Answer: A
Explanation: A) Staff functions involve assisting and advising line managers.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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26) All of the following are major areas in which an HR manager assists and advises line
managers EXCEPT ________.
A) recruiting
B) hiring
C) strategic business planning
D) compensation
Answer: C
Explanation: C) Human resource managers are usually staff managers. They assist and advise
line managers in areas like recruiting, hiring, and compensation.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
27) Human resource managers generally exert ________ within the human resources department
and ________ outside the human resources department.
A) line authority; staff authority
B) staff authority; line authority
C) functional authority; line authority
D) staff authority; implied authority
Answer: A
Explanation: A) HR managers usually have line authority in the HR department, which means
they have the right to direct the activities of the people in their own department. However,
outside of the HR department, HR managers are likely to exert implied authority because line
managers realize that the HR manager has top management's ear in areas like testing and
affirmative action. Staff (assist and advise) function refers to a manager's authority to advise
managers or employees outside of his or her department.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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28) The HR staff member who has the job of advising management on all aspects of unionmanagement aspects is the ________.
A) recruiter
B) line manager
C) compensation manager
D) labor relations specialist
Answer: D
Explanation: D) The labor relations specialist advises management on all aspects of unionmanagement relations.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
29) All of the following are examples of human resource specialties EXCEPT ________.
A) job analyst
B) financial advisor
C) compensation manager
D) labor relations specialist
Answer: B
Explanation: B) HR management specialties include recruiter, EEO coordinator, job analyst,
compensation manager, training specialist, and labor relations specialist. HR managers are less
likely to serve as financial advisors.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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30) Ralph works in the HR department and is in charge of developing the plans for how people
are paid and how the employee benefits program is run. Ralph is most likely holding the position
of:
A) training specialist
B) recruiter
C) compensation manager
D) job analyst
Answer: C
Explanation: C) The compensation manager develops compensation plans and handles the
employee benefits program.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
31) Which of the following human resource management specialties calls for collecting data to
write job descriptions?
A) job analyst
B) job training specialist
C) compensation manager
D) EEO coordinator
Answer: A
Explanation: A) As a job analyst, a human resource manager collects and examines information
about jobs to prepare job descriptions.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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32) Which of the following focuses on using centralized call centers and outside vendors as a
way to provide specialized support in day-to-day HR activities?
A) embedded HR units
B) corporate HR groups
C) HR centers of expertise
D) shared HR groups
Answer: D
Explanation: D) Transactional (or shared) HR groups focus on using centralized call centers and
outsourcing arrangements with vendors, such as benefits advisors, to provide specialized support
in day-to-day transactional HR activities to a firm's employees. Activities may include changing
benefits plans and providing updated appraisal forms.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
33) An HR generalist at Wilson Manufacturing has been assigned to the sales department to
provide HR management assistance as needed. Which of the following best describes the
structure of the HR services provided at Wilson Manufacturing?
A) shared HR teams
B) embedded HR teams
C) centers of expertise
D) corporate HR teams
Answer: B
Explanation: B) In the embedded HR teams structure, a HR generalist is assigned directly to a
department within an organization to provide localized human resource management assistance
as needed.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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34) Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vice
president of human resources. Jackson Pharmaceuticals has a history of problems within its HR
department including difficulties recruiting and retaining qualified employees, EEO violations,
inadequate employee training programs, and confusion regarding health benefit enrollment and
coverage. With years of experience transforming HR departments in other firms, Whitman
believes she can correct the problems at Jackson Pharmaceuticals.
Which of the following best supports Whitman's idea to develop a shared services arrangement
to handle benefits administration?
A) An embedded HR unit would assist top management with big picture issues as well as
benefits administration.
B) Extensive training has been provided to line managers so that they fully understand the
different insurance options available to employees.
C) Outside vendors specializing in all aspects of benefits administration would provide improved
support to the firm's employees.
D) Lower insurance premiums would eliminate the need for outsourcing services and improve
employee health coverage.
Answer: C
Explanation: C) The shared services (or transactional) HR teams focus on using centralized call
centers and outsourcing arrangements with vendors (such as benefits advisors) to provide
specialized support in day-to-day transactional HR activities (such as changing benefits plans
and providing updated appraisal forms) to the company's employees. By outsourcing benefits
administration, Jackson would allow HR managers to focus on other issues and enable benefits
specialists to handle benefits enrollment and coverage issues.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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35) Roberto Sanchez has recently been hired by Slate Pharmaceuticals as the senior vice
president of human resources. Slate Pharmaceuticals has a history of a variety of significant
problems within its HR department such as EEO violations, inadequate employee training
programs, and employee confusion regarding health benefit enrollment and coverage. With 20
years of experience transforming HR departments in other firms, Sanchez believes he can correct
the major problems at Slate Pharmaceuticals.
Which of the following best supports the argument that Sanchez should create embedded HR
units and assign relationship managers to each department within the company?
A) Employees frequently complain about the inconsistent assistance they receive from the HR
department due to its large size.
B) The global nature of the firm makes it difficult for the HR department to effectively
communicate corporate messages to employees scattered around the world.
C) Centralized call centers would enable the HR department to provide specialized support on
daily transactional activities.
D) Line managers want to implement additional screening and evaluations to improve the quality
of their subordinates.
Answer: A
Explanation: A) The embedded HR teams assign HR generalists (also known as "relationship
managers" or "HR business partners") directly to departments like sales and production, to
provide the localized human resource management assistance the departments need. If
employees are unable to receive the HR assistance they need on a regular basis, then it would be
appropriate for the firm to assign HR generalists to each department as a direct line to the HR
department.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
36) Which of the following areas is NOT a major area where human resource managers assist
and advise line managers?
A) recruiting
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door
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C) compensation
up
D) performance management
Answer: D
Explanation: D) Human resource managers assist and advise line managers in areas like
recruiting, hiring, and compensation.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
M
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37) Which organization of the human resource function involves dedicated HR members that
assist top management in issues such as developing the personnel aspects of the company's longterm strategic plan?
A) embedded HR teams
B) corporate HR teams
C) centers of expertise
D) shared services
Answer: B
Explanation: B) Corporate HR teams assist top management in top-level issues such as
developing the personnel aspects of the company's long-term strategic plan.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
38) The vice president of marketing tells a marketing manager to prepare a presentation by the
end of the week. The vice president is most likely exercising which of the following?
A) staff authority
B) procedural authority
C) line authority
D) functional authority
Answer: C
Explanation: C) Line authority traditionally gives managers the right to issue orders to other
managers or employees. Line authority therefore creates a superior (order giver) subordinate
(order receiver) relationship. Staff authority gives a manager the right to advise other managers
or employees. It creates an advisory relationship.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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39) Which HR specialty involves preparing job descriptions?
A) compensation manager
B) EEO coordinator
C) job analyst
D) recruiter
Answer: C
Explanation: C) Job analysts collect and examine information about jobs to prepare job
descriptions. Compensation managers develop compensation plans and handle the employee
benefits program.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
40) Which of the following would most likely provide assistance to executives about long-term
strategic plans?
A) centers of expertise
B) embedded HR teams
C) corporate HR teams
D) professional employee organizations
Answer: C
Explanation: C) The corporate HR teams focus on assisting top management in "top level" big
picture issues such as developing and explaining the personnel aspects of the company's longterm strategic plan. The centers of expertise are like specialized HR consulting firms within the
company for instance, they provide specialized advice in areas such as organizational change.
The embedded HR assigns HR generalists directly to departments like sales and production.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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41) Setting standards such as sales quotas, quality standards, or production levels is part of the
leading function of human resource management.
Answer: FALSE
Explanation: Setting standards such as sales quotas, quality standards, or production levels is
part of the controlling rather than the leading function of human resource management. Leading
involves maintaining morale and motivating workers.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
42) The planning function of management includes establishing goals and standards and
developing forecasts.
Answer: TRUE
Explanation: The planning function of management includes establishing goals and standards,
developing rules and procedures, and developing plans and forecasting. Planning, organizing,
staffing, leading, and controlling are the five functions of the management process.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
43) Communicating is one of the five basic functions of the management process.
Answer: FALSE
Explanation: Planning, organizing, staffing, leading, and controlling are the five functions of the
management process. Although communicating with employees is part of every step, it is not one
of the five basic functions.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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44) Hiring the wrong person for the job, committing unfair labor practices, and having your
people not doing their best are personnel mistakes that hinder firms from achieving positive
results.
Answer: TRUE
Explanation: Common HRM mistakes include hiring the wrong people, having your people not
doing their best and committing unfair labor practices. The primary goal of HRM is to help the
firm achieve its goals, and such HRM mistakes hinder that process.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
45) Autonomy is the right to make decisions, direct the work of others, and give orders.
Answer: FALSE
Explanation: Authority rather than autonomy is the right to make decisions, direct the work of
others, and give orders. In management, authority is distinguished between line authority and
staff authority.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
46) Staff managers are authorized to issue orders to subordinates and are directly in charge of
accomplishing the organization's basic goals.
Answer: FALSE
Explanation: Line managers, not staff managers, are authorized to issue orders down the chain
of command. Staff managers have the authority to advise other managers or employees.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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47) Human resource managers are generally staff managers.
Answer: TRUE
Explanation: Human resource managers are usually staff managers. They assist and advise line
managers in areas like recruiting, hiring, and compensation. However, line managers still have
human resource duties.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
48) Staff managers have staff authority which enables them to issue orders down the chain of
command unlike line managers.
Answer: FALSE
Explanation: Line managers can issue orders down the chain of command, while staff managers
are only able to advise other managers and employees.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
49) In small organizations, line managers frequently handle all personnel duties without the
assistance of a human resource staff.
Answer: TRUE
Explanation: In small firms, line managers may carry out personnel tasks unassisted. However,
large firms of over 100 employees require human resource specialists.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
50) Human resource managers assist line managers with recruiting, hiring, and compensation.
Answer: TRUE
Explanation: Assisting and advising line managers is the heart of the human resource manager's
job. HR assists in recruiting, hiring, and compensation.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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51) Staff authority gives a manager the right to advise other managers or employees.
Answer: TRUE
Explanation: Staff authority gives a manager the right to advise other managers or employees. It
creates an advisory relationship.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
52) The role of labor relations specialists includes investigating EEO grievances and collecting
data about jobs for the purpose of writing job descriptions.
Answer: FALSE
Explanation: Labor relations specialists advise management on all aspects of union
management relations. EEO coordinators investigate EEO grievances, and job analysts collect
data for job descriptions.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
53) Shared service HR teams focus on assisting top management in big picture issues such as
developing a firm's long-term strategic plan.
Answer: FALSE
Explanation: Corporate HR teams focus on assisting top management in big picture issues such
as developing a firm's long-term strategic plan.
Difficulty: Moderate
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
54) Centralized HR units whose employees are shared by all the companies' departments to
obtain advice are called shared service.
Answer: TRUE
Explanation: Shared service is centralized HR units whose employees are shared by all the
companies' departments to obtain advice on matters such as discipline problems.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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Copyright © 2017 Pearson Education, Inc.
55) Centers of expertise are specialized HR that act like consulting firms within the company on
particular topics.
Answer: TRUE
Explanation: Centers of expertise are basically specialized HR consulting firms within the
company. For example, a center might provide specialized advice in an area like organizational
change to all the company's various units.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
56) A key concept of the textbook is that human resource management is the sole responsibility
of human resource managers, so line managers and staff managers rely heavily on HR specialists
to hire the best employees.
Answer: FALSE
Explanation: Human resource management is the responsibility of every manager not just
those in human resources. Throughout every page in the textbook, you'll therefore find an
emphasis on practical material that you as a manager will need to perform your day-to-day
management responsibilities.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
57) A key concept of the textbook is that effective human resource management practices add
measurable value to an organization.
Answer: TRUE
Explanation: Employers need human resource management practices that add value, and these
practices are an essential part of HR's function.
Difficulty: Easy
Chapter: 1
Objective: 1
AACSB: Analytical Thinking
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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Copyright © 2017 Pearson Education, Inc.
58) What are the five basic functions of the management process? Explain some of the specific
activities involved in each function. Which function is most closely associated with human
resource management?
Answer: The five basic functions are planning, organizing, staffing, leading, and controlling.
Planning activities include establishing goals and standards, developing rules and procedures,
and developing plans and forecasting. Organizing activities include giving specific task
assignments to subordinates, establishing departments, delegating authority to subordinates, and
establishing channels of authority and communication. Staffing activities include determining
what type of people should be hired, recruiting prospective employees, and setting performance
standards. Leading activities include maintaining morale and motivating subordinates.
Controlling activities include setting standards such as sales quotas and quality standards and
taking corrective action as needed. Staffing is the function most readily related to human
resource management. However, HR managers actually perform all five functions.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
59) Why is human resource management important to all managers? What is the role of line
managers in human resource management?
Answer: HR management is important to all managers because managers can do everything else
right lay brilliant plans, draw clear organization charts, set up world-class assembly lines, and
use sophisticated accounting controls but still fail, by hiring the wrong people or by not
motivating subordinates. On the other hand, many managers presidents, generals, governors,
supervisors have been successful even with inadequate plans, organizations, or controls
because they had the knack of hiring the right people for the right jobs and motivating,
appraising, and developing them. The direct handling of people is an integral part of every line
manager's duties. More specifically, line managers must place the right person in the right job,
orient and train new employees, improve the job performance of each person, gain cooperation
and develop smooth working relationships, interpret the company's policies and procedures,
control labor costs, and protect employees' health and physical condition.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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Copyright © 2017 Pearson Education, Inc.
60) Explain the difference between line authority and staff authority. What type of authority do
human resource managers usually have?
Answer: Authority is the right to make decisions, to direct the work of others, and to give
orders. Line managers are authorized to direct the work of subordinates and are directly in charge
of accomplishing the organization's basic goals. Staff managers are authorized to assist and
advise line managers in accomplishing these basic goals. Human resource managers are usually
staff managers because they are responsible for assisting and advising line managers in areas like
recruiting, hiring, and compensation. However, human resource managers do have line authority
within their own department.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
61) What are the two distinct functions carried out by human resource managers? Describe each
function in a brief essay.
Answer: The functions are a line function and a staff (assist and advise) function. HR managers
exert line authority within the HR department because they direct the activities of the people in
that department. In the staff (assist and advise) function, HR managers assist in hiring, training,
evaluating, rewarding, counseling, promoting, and firing employees. They also administer
benefit programs and help line managers comply with EEO, occupational health and safety laws
and play an important role in handling grievances and labor relations.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
62) Describe how shared service HR arrangements and embedded HR arrangements differ.
Answer: Many organizations plan to use technology to institute more "shared services" (or
"transactional") arrangements. These establish centralized HR units whose employees are shared
by all the companies' departments to obtain advice on matters such as discipline problems. The
shared services HR teams offer their services through intranets or centralized call centers; they
aim to provide managers and employees with specialized support in day-to-day HR activities
(such as discipline problems). Embedded HR teams have HR generalists (also known as
"relationship managers" or "HR business partners") assigned to functional departments like sales
and production. They provide the selection and other assistance the departments need.
Difficulty: Hard
Chapter: 1
Objective: 1
AACSB: Application of Knowledge
Learning Outcome: 1.1 Explain what human resource management is and how it relates to the
management process.
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63) Between 2012 and 2022 what ethnic group is projected to decrease as a percentage of the
workforce?
A) black
B) Hispanic
C) Asian
D) white
Answer: D
Explanation: D) The percentage of the workforce that is white is expected to fall from 79.8% in
2012 to 77.7% in 2022.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
64) ________ refers to the tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad.
A) Expansion
B) Globalization
C) Export growth
D) Diversification
Answer: B
Explanation: B) Globalization is the tendency of firms to extend their sales, ownership, and/or
manufacturing to new markets abroad. Firms usually expand globally to expand sales, cut labor
costs, or form partnerships with foreign firms.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
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65) All of the following are the most common reasons that firms decide to globalize EXCEPT
________.
A) lower costs
B) supervising quality control methods
C) make employees more productive
D) to do things better
Answer: B
Explanation: B) Globalization compels employers to be more efficient. More globalization
means more competition, and more competition means more pressure to be "world class" to
lower cost, to make employees more productive, and to do things better and less expensively.
Difficulty: Moderate
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
66) Which was NOT a change in the economic and political philosophies that drove the
globalization boom causing U.S. imports and exports to rise from $47 billion in 1960, to $562
billion in 1980, to about $5.1 trillion recently?
A) government dropped cross-border taxes or tariffs
B) economic free trades areas were formed
C) steps were taken to encourage free flow of trade among countries
D) instability in the world labor market
Answer: D
Explanation: D) Globalization brings both benefits and threats to consumers. It means lower
prices and higher quality on practically everything from computers to cars, but also the prospect
of working harder, and perhaps having less secure jobs.
Difficulty: Moderate
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
28
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67) Which of the following is NOT one of the five main types of digital technologies driving the
transfer of functionality from HR professionals to automation?
A) Email
B) Social media
C) Mobile applications
D) Cloud computing
Answer: A
Explanation: A) While email is an important tool at work it is not one of the primary types of
digital technology that is transferring functionality to automation.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
68) What term refers to the knowledge, skills, and abilities of a firm's workers?
A) human resources
B) human capital
C) intangible assets
D) contingent personnel
Answer: B
Explanation: B) Human capital is the knowledge, skills, and abilities of a firm's workers. In the
modern workforce, employment is shifting from manual workers to knowledge workers.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
29
Copyright © 2017 Pearson Education, Inc.
69) Which of the following describes one of the most significant demographic trends facing the
U.S. workforce?
A) increased number of aging workers
B) decreased number of contingent workers
C) increased number of blue-collar workers
D) decreased number of bilingual workers
Answer: A
Explanation: A) One of the most significant demographic trends facing the U.S. workforce is the
increasing number of aging workers, who are those over age 55. There are not enough younger
workers to replace the projected number of baby boom era older-worker retirees. As a result,
many retirees are returning to the workforce.
Difficulty: Moderate
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
70) Over the next few years, employers may face a severe labor shortage because ________.
A) there are fewer people entering the workforce than there are retiring baby boomers
B) one-third of single mothers are not employed in the U.S. labor force
C) there are too many nontraditional workers holding multiple jobs
D) older employees are more family-centric than younger employees
Answer: A
Explanation: A) Employers are faced with a possible labor shortage because baby boomers
account for a large percentage of the workforce. As these workers reach retirement age, younger
workers will need to fill the open positions, except there are fewer younger workers available.
The family-centric nature and poor work values of younger workers are problematic for
employers, but neither one is the cause of a labor shortage.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
30
Copyright © 2017 Pearson Education, Inc.
71) What is the term for workforces like those at the company Uber, where freelancers and
independent contractors work when they can, on what they want to work on, and when the
company needs them?
A) tele-commuters
B) human capital
C) job-analysts
D) on-demand workers
Answer: D
Explanation: D) On-demand workers are freelancers and independent contractors who work
when they can on what they want to work on, when the company needs them.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
72) Which of the following best describes a nontraditional worker?
A) workers near retirement age
B) ethnically diverse workers
C) workers with multiple jobs
D) service-based workers
Answer: C
Explanation: C) Nontraditional workers include those who hold multiple jobs, or who are
"temporary" or part-time workers, or who are working in alternative work arrangements. Today,
almost 10% of Americans workers fit this nontraditional workforce category.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
31
Copyright © 2017 Pearson Education, Inc.
73) The recent trend where in some occupations (such as high-tech) unemployment rates are low,
while in others unemployment rates are still very high and recruiters in many companies can't
find candidates, while in others there's a wealth of candidates is called:
A) talent analytics
B) globalization
C) the unbalanced labor force
D) human capital
Answer: C
Explanation: C) The unbalanced labor force is shown in that in some occupations,
unemployment rates are low, while in others, unemployment rates are still very high. In some
industries, recruiters in many companies can't find candidates, while in others there's a wealth of
candidates.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
74) Approximately how many people now use information technology to work from remote
locations at least once per month?
A) 1 million
B) 5 million
C) 17 million
D) 50 million
Answer: B
Explanation: B) About 17 million people now use information technology to work from remote
locations at least once per month.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
32
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75) Which term refers to exporting jobs to lower-cost locations abroad?
A) freelancing
B) offshoring
C) rightsizing
D) warehousing
Answer: B
Explanation: B) Many organizations are moving jobs offshore, exporting jobs to lower-cost
locations abroad.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
76) Tools such as Twitter, Facebook, and LinkedIn that can be used to recruit new employees are
known as:
A) data analytics
B) social media
C) mobile applications
D) cloud computing
Answer: B
Explanation: B) Employers increasingly use social media tools such as Twitter, Facebook, and
LinkedIn (rather than, say, as many employment agencies) to recruit new employees.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
77) ________ involves using statistical techniques, algorithms, and problem-solving to identify
relationships among data for the purpose of solving particular problems.
A) Data analytics
B) Social media
C) Cloud computing
issues
D) Gaming
u
Answer: A
Explanation: A) Data analytics is using statistical techniques, algorithms, and problem-solving
to identify relationships among data for the purpose of solving particular problems.
Difficulty: Moderate
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
I
Gut
just like
got issues
33
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78) In the next few years, almost all the new jobs added in the United States will be in goodsproducing industries.
Answer: FALSE
Explanation: In the US the next few years, almost all the new jobs added will be in services, not
in goods-producing industries.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
79) According to the Bureau of Labor Statistics, between now and 2022 the number of workers
classified as "white, non-Hispanic" will decrease, and the number of workers classified as Asian
will increase.
Answer: TRUE
Explanation: The number of workers classified as "white, non-Hispanic" is expected to decrease
by 2022. The workforce will see an increase in the number of Asian, Hispanic, and AfricanAmerican workers according to the Bureau of Labor Statistics.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
80) As baby boomers retire from the workforce, there will be more people entering the labor
pool than leaving it.
Answer: FALSE
Explanation: Many human resource professionals call "the aging workforce" the biggest
demographic trend affecting employers. The basic problem is that there aren't enough younger
workers to replace the projected number of baby boom era older-worker retirees.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
34
Copyright © 2017 Pearson Education, Inc.
81) On-demand workers are freelancers and independent contractors who work when they can,
on what they want to work on, and when the company needs them.
Answer: TRUE
Explanation: On-demand workers, like those at Uber, are freelancers and independent
contractors who work when they can on what they want to work on, when the company needs
them.
Difficulty: Easy
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
82) Cloud computing basically means using statistical techniques, algorithms, and problemsolving to identify relationships among data for the purpose of solving particular problems.
Answer: FALSE
Explanation: Data analytics means using statistical techniques, algorithms, and problem-solving
to identify relationships among data for the purpose of solving particular problems.
Difficulty: Moderate
Chapter: 1
Objective: 2
AACSB: Analytical Thinking
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
35
Copyright © 2017 Pearson Education, Inc.
83) In what way has technology changed human resources management? Discuss at least 3
technologies that have had an impact.
Answer: Five main types of digital technologies are driving this transfer of functionality from
HR professionals to automation. Employers increasingly use social media tools such as Twitter,
Facebook, and LinkedIn (rather than, say, as many employment agencies) to recruit new
employees. Employers use new mobile applications, for instance, to monitor employee location
and to provide digital photos at the facility clock-in location to identify workers. The feedback,
fun, and objectives inherent in gaming support many new training applications, and Web sites
such as Knack, Gild, and True Office enable employers to inject gaming features into training,
performance appraisal, and recruiting. Cloud computing and more intuitive user interfaces enable
employers to monitor and report on things like a team's goal attainment and to provide real-time
evaluative feedback. Finally, data analytics basically means using statistical techniques,
algorithms, and problem-solving to identify relationships among data for the purpose of solving
particular problems (such as what are the ideal candidate's traits, or how can I tell in advance
which of my best employees is likely to quit?) When applied to human resource management,
data analytics is called talent analytics.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
84) On-demand workers are a developing part of the workforce. In a brief essay, explain what
on-demand workers are and how they impact organizations.
Answer: Today, in more and more companies like Uber, Elance, and Airbnb, employees aren't
employees at all. They are what are called on-demand workers, or freelancers and independent
contractors who work when they can on what they want to work on when the company needs
them. So, for example, Airbnb can run, in essence, a vast lodging company with only a fraction
of the "regular" employees Hilton Worldwide or another hotel chain would need, as the lodgings
are managed by the homeowners themselves. Other sites tapping on-demand workers include
Amazon's Mechanical Turk, Elance-oDesk, TaskRabbit, and Handybook (which lets users tap
Handy's thousands of freelance cleaners and furniture assemblers when they need jobs done).
These short-term professionals can be viewed as "mobile, independent bundles of skills."
Employers' increasing reliance on such Uber-like "extended workforces" has implications for
HR. Companies that rely on freelancers, consultants, and other such nontraditional employees
will need to create personnel policies on matters like compensation for these "nonemployees"
and become more expert as talent brokers in matching specific workers with specific tasks that
need to be done.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
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85) How has increasing globalization affected business?
Answer: Globalization has impacted how and where companies do business. Free trade areas
agreements that reduce tariffs and barriers among trading partners encourage international
trade. The North American Free Trade Agreement (NAFTA) and the European Union (EU) are
examples. Globalization has boomed for the past 50 or so years. For example, the total sum of
U.S. imports and exports rose from $47 billion in 1960, to $562 billion in 1980, to about $5.1
trillion recently. Changing economic and political philosophies drove this boom. Governments
dropped cross-border taxes or tariffs, formed economic free trade areas, and took other steps to
encourage the free flow of trade among countries. The fundamental economic rationale was that
by doing so, all countries would gain, and indeed, economies around the world did grow quickly
until recently. At the same time, globalization vastly increased international competition. More
globalization meant more competition, and more competition meant more pressure to be "world
class" to lower costs, to make employees more productive, and to do things better and less
expensively. As multinational companies jockey for position, many transfer operations abroad,
not just to seek cheaper labor but to tap into new markets. For example, Toyota has thousands of
sales employees based in America, while GE has over 10,000 employees in France. The search
for greater efficiencies prompts some employers to offshore (export jobs to lower-cost locations
abroad, as when Dell offshored some call-center jobs to India). Some employers offshore even
highly skilled jobs such as lawyer. Managing the "people" aspects of globalization is a big task
for any company that expands abroad and for its HR managers.
Difficulty: Hard
Chapter: 1
Objective: 2
AACSB: Application of Knowledge
Learning Outcome: 1.2 Briefly discuss and illustrate each of the important trends influencing
human resource management.
86) ________ involves formulating and executing human resource policies and practices that
produce the employee competencies and behaviors the company needs to achieve its strategic
aims.
A) Employee engagement
B) Data analytics
C) Strategic human resource management
D) Sustainability
Answer: C
Explanation: C) Strategic human resource management involves formulating and executing
human resource policies and practices that produce the employee competencies and behaviors
the company needs to achieve its strategic aims.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
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87) About what percentage of all job openings are now posted online?
A) 15%
B) 35%
C) 50%
D) 70%
Answer: D
Explanation: D) Approximately 70% of all job openings are now posted online.
Difficulty: Hard
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
88) Which of the following is an aspect of "distributed" HR?
A) more centralized HRM decisions
B) HRM tasks redistributed to the company's employees and line managers
C) more paperwork
D) HR professional embedded in all departments
Answer: B
Explanation: B) Distributed HR involves more and more human resource management tasks
being redistributed from a central HR department to the company's employees and line
managers, thanks to digital technologies like mobile phones and social media.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
89) According to the textbook, approximately what percentage of job seekers used Glassdoor
during their job search to learn about a company they might apply for?
A) 11%
B) 32%
C) 48%
D) 70%
Answer: C
Explanation: C) According to one report, 48% of job seekers surveyed said they've used
Glassdoor during their job search, including checking before applying for employment at a
companies.
Difficulty: Hard
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
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90) Strategic human resource management refers to ________.
A) formulating and executing human resource policies and practices that produce the employee
competencies and behaviors the company needs to achieve strategic aims
B) planning the balance of internal strengths and weaknesses with external opportunities and
threats to maintain competitive advantage
C) emphasizing the knowledge, education, training, skills, and expertise of a firm's workers
D) extending a firm's sales, ownership, and manufacturing to new markets
Answer: A
Explanation: A) Strategic human resource management involves formulating and executing
human resource policies and practices that produce the employee competencies and behaviors
the company needs to achieve strategic aims. Strategic human resource plans enable a company
to hire the employees who will exhibit the behaviors the company needs to accomplish its goals.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
91) ________ refers to ensuring that the human resources management function is delivering its
services efficiently.
A) Strategic planning
B) Strategic human resource management
C) HR department lever
D) Human resource scorecard approach
Answer: C
Explanation: C) Today's human resources manager is in a powerful position to improve the
firm's performance and profitability and uses three main levers to do so. One is the HR
department lever which ensures that the human resource management function is delivering its
services efficiently.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
39
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92) Evidence-based human resource management relies on all of the following types of evidence
EXCEPT ________.
A) scientific rigor
B) existing data
C) research studies
D) qualitative opinions
Answer: D
Explanation: D) Qualitative information or opinions are not characteristic of evidence-based HR
management because neither can be measured. Evidence-based human resource management is
based on the use of data, facts, analytics, scientific rigor, critical evaluation, and critically
evaluated research/case studies to support human resource management proposals, decisions,
practices, and conclusions.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
93) Which term refers to the HR manager putting into place the policies and practices that
produce the employee competencies and skills the company needs to achieve its strategic goals?
A) HR department lever
B) strategic results lever
C) practices
D) employee cost lever
Answer: B
Explanation: B) Today's human resources manager is in a powerful position to improve the
firm's performance and profitability and uses three main levers to do so. One is the strategic
results lever which puts in place the policies and practices that produce the employee
competencies and skills the company needs to achieve its strategic goals.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
40
Copyright © 2017 Pearson Education, Inc.
94) ________ refers to being psychologically involved in, connected to, and committed to
getting one's jobs done.
A) Ethics
B) Sustainability
C) Human capital
D) Employee engagement
Answer: D
Explanation: D) Employee engagement refers to being psychologically involved in, connected
to, and committed to getting one's jobs done. Engaged employees "experience a high level of
connectivity with their work tasks," and therefore work hard to accomplish their task-related
goal.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
95) Distributed HR is the idea that more and more human resource management tasks are now
being redistributed from a central HR department to the company's employees and line
managers.
Answer: TRUE
Explanation: Distributed HR involves human resource management tasks being redistributed
from a central HR department to the company's employees and line managers, facilitated by
digital technologies like mobile phones and social media.
Difficulty: Moderate
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
96) Strategic human resource management refers to performing basic day-to-day duties that
satisfy the needs and demands of both the employees and the employer.
Answer: FALSE
Explanation: Strategic human resource management means formulating and executing human
resource policies and practices that produce the employee competencies and behaviors the
company needs to achieve its strategic aims.
Difficulty: Easy
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
41
Copyright © 2017 Pearson Education, Inc.
97) The HR department lever has HR managers put in place the policies and practices that
produce the employee competencies and skills the company needs to achieve its goals .
Answer: FALSE
Explanation: The strategic results lever has HR managers put in place the policies and practices
that produce the employee competencies and skills the company needs to achieve its strategic
goals.
Difficulty: Easy
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
98) According to research, less than one-third of all workers in the U.S. are mentally and
emotionally invested in their work.
Answer: TRUE
Explanation: In one survey, about 30% were engaged, 50% were not engaged, and 20% were
actively disengaged (anti-management).
Difficulty: Easy
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
99) The evidence used in evidence-based human resource management may come from actual
measurements, existing data, or critically evaluated research studies.
Answer: TRUE
Explanation: Evidence is the core of evidence-based human resource management. Data, facts,
analytics, scientific rigor, critical evaluation, and critically evaluated research/case studies are
used to support human resource management proposals, decisions, practices, and conclusions.
Difficulty: Easy
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
42
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100) What is evidence-based human resource management? How does evidence-based human
resource management benefit firms?
Answer: Evidence-based human resource management involves using data, facts, analytics,
scientific rigor, critical evaluation, and critically evaluated research/case studies to support
human resource management proposals, decisions, practices, and conclusions. Put simply,
evidence-based human resource management is the deliberate use of the best-available evidence
in making decisions about the human resource management practices you are focusing on.
Managers should use evidence-based human resource management because unless managers take
a healthy, skeptical, evidence-based approach to human resources, they may jump to the wrong
managerial conclusions. Life is filled with intuitive-sounding insights, so managers should
always be asking questions like, "What is the evidence for this claim?" and "Did this action
really cause this result?"
Difficulty: Hard
Chapter: 1
Objective: 3
AACSB: Analytical Thinking
Learning Outcome: 1.3 List and briefly describe "distributed HR" and other important aspects of
human management today.
101) Which of the following refers to the standards someone uses to decide what his or her
conduct should be?
A) ethics
B) strategies
C) preferences
D) competencies
Answer: A
Explanation: A) Ethics is the standards used by individuals to determine how to behave or act.
In human resources, ethics relates to the decisions made by HR managers regarding workplace
safety, security of employee records, employee theft, affirmative action, comparable work, and
employee privacy rights.
Difficulty: Easy
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
43
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102) Which organization provides professional certification for human resource managers?
A) Association of Certified HR Managers
B) Society for Human Resource Management
C) Academy of Human Resource Executives
D) Association of Business Administration
Answer: B
Explanation: B) The Society for Human Resource Management (SHRM) provides professional
certification to HR managers. SHRM exams test the professional's knowledge of all aspects of
human resource management, including ethics, management practices, staffing, development,
compensation, labor relations, and health and safety.
Difficulty: Easy
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
103) Which of the following is NOT a HR certification?
A) HRCI's Professional in Human Resources (PHR)
B) HRCI's Senior Professional in Human Resources (SPHR)
C) SHRM Junior Professional
D) SHRM Certified Professional
Answer: C
Explanation: C) The HRCI awards several credentials, including Professional in Human
Resources (PHR) and Senior Professional in Human Resources (SPHR). SHRM offers SHRM
Certified Professionals and SHRM Senior Certified Professionals.
Difficulty: Hard
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
104) Which SHRM HR manager competency involves the ability to provide guidance to
organizational stakeholders?
A) consultation
B) ethical practice
C) business acumen
D) critical evaluation
Answer: A
Explanation: A) The SHRM HR manager competency of consultation involves the ability to
provide guidance to organizational stakeholders.
Difficulty: Moderate
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
44
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105) Pablo has the ability to understand and apply information with which to contribute to his
organization's overall strategic plan. This is the SHRM HR competency of:
A) communication
B) critical evaluation
C) business acumen
D) leadership & navigation
Answer: C
Explanation: C) The SHRM HR manager competency of business acumen is the ability to
understand and apply information with which to contribute to the organization's strategic plan.
Difficulty: Easy
Chapter: 1
Objective: 4
AACSB: Application of Knowledge
Learning Outcome: 1.4 List at least four important human resource manager competencies.
106) Which SHRM HR manager competency involves the ability to effectively exchange
information with stakeholders?
A) relationship management
B) communication
C) ethical practice
D) controlling
Answer: B
Explanation: B) Communication is the competency that relates to the ability to effectively
exchange information with stakeholders.
Difficulty: Moderate
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
107) Ethics are the standards someone uses to decide what his or her conduct should be.
Answer: TRUE
Explanation: Ethics refers to the standards someone uses to decide what his or her conduct
should be. Ethical issues related to HR management include workplace safety and employee
privacy rights.
Difficulty: Moderate
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
45
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108) The SHRM human resource manager competencies include ethical practice, business
acumen, and relationship management.
Answer: TRUE
Explanation: The SHRM human resource manager competencies are leadership & navigation,
ethical practice, business acumen, consultation, critical evaluation, global & cultural
effectiveness and communication.
Difficulty: Moderate
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
109) Human resource managers who complete HRCI professional certification exams can earn
PHR and SPHR, GPHR certificates.
Answer: TRUE
Explanation: HRCI certification includes Professional in Human Resources (PHR), and Senior
Professional in Human Resources (SPHR) among others.
Difficulty: Easy
Chapter: 1
Objective: 4
AACSB: Analytical Thinking
Learning Outcome: 1.4 List at least four important human resource manager competencies.
110) What is human resource management? What competencies are necessary for HR managers
to succeed in today's business environment? Explain your answer in a brief essay.
Answer: Human resource management is the process of acquiring, training, appraising, and
compensating employees, and of attending to their labor relations, health and safety, and
fairness. The SHRM Human Resource Manager competencies are leadership & navigation,
ethical practice, business acumen, consultation, critical evaluation, global & cultural
effectiveness and communication. HR managers need to show how their actions are "adding
value" for the organization as a whole.
Difficulty: Hard
Chapter: 1
Objective: 4
AACSB: Application of Knowledge
Learning Outcome: 1.4 List at least four important human resource manager competencies.
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