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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. 1 Copyright © 2017 Pearson Education, Inc. 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 5 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 47 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 5 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 7 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 9 Copyright © 2017 Pearson Education, Inc. 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. 10 Copyright © 2017 Pearson Education, Inc. 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. 11 Copyright © 2017 Pearson Education, Inc. 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. 12 Copyright © 2017 Pearson Education, Inc. 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. 13 Copyright © 2017 Pearson Education, Inc. 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. 14 Copyright © 2017 Pearson Education, Inc. 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. if theysexy thyPinky belt ever fight that its heimannnature 15 Copyright © 2017 Pearson Education, Inc. 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. odd if an gillugg I needed to somettinging relyly own 16 Copyright © 2017 Pearson Education, Inc. know spewhere we only 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 opens door B) hiring he 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 17 Copyright © 2017 Pearson Education, Inc. 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. 18 Copyright © 2017 Pearson Education, Inc. 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. 19 Copyright © 2017 Pearson Education, Inc. 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. 20 Copyright © 2017 Pearson Education, Inc. 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. 21 Copyright © 2017 Pearson Education, Inc. 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. 22 Copyright © 2017 Pearson Education, Inc. 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. 23 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. 24 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. 25 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. 26 Copyright © 2017 Pearson Education, Inc. 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. 27 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 36 Copyright © 2017 Pearson Education, Inc. 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. 37 Copyright © 2017 Pearson Education, Inc. 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. 38 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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. 46 Copyright © 2017 Pearson Education, Inc.