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Chapter 01
<Human Resource Management: Gaining a Competitive Advantage>
True / False Questions
1. | Companies have historically looked at HRM as a means to contribute to profitability and quality.
True False |
2. | Orientation and skills training are responsibilities of HR personnel involved in analysis and design of work.
True False |
3. | The three product lines of HR as a business are administrative services and transactions, business partner services, and strategic partner roles.
True False |
4. | The amount of time that the HRM function devotes to administrative tasks is decreasing, and its role as a strategic business partner is increasing.
True False |
5. | Advances in technology have decreased HRM's role in providing self-service to employees.
True False |
6. | HR functions related to benefits administration such as health plan eligibility status, relocation, and payroll are usually not outsourced.
True False |
7. | When a firm shifts to evidence-based HRM, it should stop using workforce analytics.
True False |
8. | Evidence-based HR refers to the demonstration that human resource practices have no impact on the company's bottom line or key stakeholders.
True False |
9. | Intangible assets are equally as or more valuable than financial and physical assets, but they are difficult to duplicate or imitate.
True False |
10. | In a learning organization, improvements in product or service quality do not stop when formal training is completed.
True False |
11. | In exchange for working longer hours without job security, employees want companies to provide flexible work schedules and comfortable working conditions.
True False |
12. | From a company perspective, it is harder to add part-time employees than it is to add full-time employees.
True False |
13. | To be effective, balanced scorecards must be customized by companies to fit different market situations, products, and competitive environments.
True False |
14. | The balanced scorecard should not be used to link a company's human resource management activities to the company's business strategy.
True False |
15. | A company that adopts total quality management (TQM) trains only selected employees in quality.
True False |
16. | Big data used in evidence-based HR gathers information from many different sources.
True False |
17. | Projections to the demographics of the U.S. workforce predict that the average age of the workforce will decrease.
True False |
18. | Workers with disabilities can be a source of competitive advantage.
True False |
19. | When it comes to problem solving, cultural diversity can provide companies with a competitive advantage.
True False |
20. | The Sarbanes-Oxley Act of 2002 imposes criminal penalties for corporate governing and accounting lapses.
True False |
21. | Lean thinking emphasizes only learning new skills to improve and does not encourage the use of old skills in new ways.
True False |
22. | Social networking tools can help prevent the loss of expert knowledge that occurs due to retirement.
True False |
23. | High-performance work systems minimize the fit between a company's social system (employees) and its technical system.
True False |
24. | An HR dashboard is a series of indicators that are accessible to both managers and employees.
True False |
25. | Measuring employees' performance is a part of the compensation function of HR.
True False |
Multiple Choice Questions
26. | _____ refers to the policies, practices, and systems that influence employees' behavior, attitudes, and performance.
A. | Total quality management |
C. | Human resource management |
D. | Production and operations management |
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27. | The training and development function of an HR department includes _____.
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28. | Among the functions performed by an HR department, feedback and coaching are categorized under the _____ function.
A. | recruitment and selection |
B. | compensation and benefits |
E. | performance management |
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29. | Among the functions performed by an HR department, vacation, retirement plans, and profit sharing are categorized under the _____ function.
A. | training and development |
D. | employee data and information systems |
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30. | The employee data and information systems function of an HR department focuses on responsibilities such as _____.
A. | job analysis and description |
B. | record keeping and workforce analytics |
C. | attitude surveys and labor law compliance |
D. | orientation and skills training |
E. | talent and change management |
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31. | Which of the following is true about the product line administrative services and transactions?
A. | It deals with implementation of business plans and talent management. |
B. | It emphasizes knowing the business and exercising influence. |
C. | It emphasizes the knowledge of HR and of the business and competition. |
D. | It contributes to the business strategy based on considerations of business capabilities. |
E. | It deals with functions such as compensation, hiring, and staffing. |
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32. | Giving employees online access to information about HR issues such as training, benefits, and compensation is called _____.
A. | performance management |
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33. | The practice of companies having other companies provide services is known as
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34. | Traditionally, the HRM department was primarily a(n) _____.
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35. | Which of the following is true of workforce analytics?
A. | It relies on qualitative measures to evaluate employer performance. |
B. | It collects and analyzes information only from external databases. |
C. | It does not aid in evidence-based human resource decisions. |
D. | It does not include information from HR databases and financial reports. |
E. | It can show that HR practices influence an organization's profits. |
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36. | Which of the following HR competencies focuses on the ability to apply the principles of HR management to contribute to the success of a business?
A. | Relationship management |
B. | HR technical expertise |
C. | Organizational navigation |
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37. | Which of the following HR competencies focuses on the ability to manage interactions with and between others with the specific goal of providing service and organizational success?
A. | Relationship management |
B. | HR technical expertise |
C. | Organizational navigation |
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38. | When an HR professional is evaluated on how well she embraces inclusion and how effectively she works with diverse populations, she is being evaluated on her competency in _____.
A. | organizational navigation |
B. | HR technical expertise and practice |
C. | global and cultural effectiveness |
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39. | When an HR professional is evaluated on how well he understands organizational metrics and their relationship to business success, he is being evaluated on his competency in _____.
A. | relationship management |
B. | organizational navigation |
D. | business communication |
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40. | Which competency is an HR professional said to have if he is able to act personally and professionally with integrity and accountability?
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41. | Organizations that pursue a _____ strategy pursue the "triple bottom line" of economic, social, and environmental benefits.
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42. | A company competing through sustainability is likely to _____.
A. | place increased value on tangible assets |
B. | avoid social and environmental responsibilities |
C. | emphasize productivity more than quality |
D. | adapt badly to changes in the labor force |
E. | provide high-quality products and services |
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43. | When a corporate organization competes through globalization, as opposed to technology, it is likely to put most of its efforts into _____.
C. | expansion into foreign markets |
D. | development of HR dashboards |
E. | integration of technology and social systems |
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44. | Sustainability is the ability of a company to
A. | meet its business needs at the cost of environmental responsibilities. |
B. | pursue economic goals despite social and ethical concerns. |
C. | develop socially responsible strategies at the cost of profits. |
D. | sacrifice its business and other needs to support the needs of its competitors. |
E. | meet its needs without sacrificing the ability of future generations to meet theirs. |
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45. | Over the next decade, which of the following people will have the most difficulty attracting talented employees due to a skills deficit?
A. | Tracy, the owner of several fast-food franchises |
B. | Rex, the HR manager for a biotech research firm |
C. | Yelena, the director of a mobile advertising company |
D. | Franco, the HR director for a large grocery chain |
E. | Barbara, the superintendent of an urban school system |
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46. | Mentoring relationships are an example of _____ capital.
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47. | Distribution channels are an example of _____ capital.
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48. | Trade secrets are an example of _____ capital.
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49. | Jake, the CEO of a company, appraises his managers based on how well they empower their employees. Which of the following managers is Jake likely to rate the highest in this regard?
A. | Hector, who gives clear instructions to his subordinates and expects them to follow the orders exactly as given |
B. | Melody, who asks her subordinates to always check with her before making any decisions |
C. | Jing, who prefers that members of his team always report to him what they do throughout the day |
D. | Zara, who assigns responsibility to her subordinates and intervenes only when there is a need |
E. | Darnell, who assigns complete authority to his subordinates and does not offer any guidance |
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50. | According to emerging changes in the employment relationship, which of the following benefits do employees typically not expect to be provided by employers?
A. | Flexible work schedules |
B. | Comfortable working conditions |
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51. | A company whose employees have high engagement is likely to have _____ compared to a company with low employee engagement.
C. | poorer customer service |
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52. | _____ is a systematic, planned strategic effort by a company to attract, retain, develop, and motivate highly skilled employees and managers.
D. | Training and development |
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53. | Which of the following is true of a balanced scorecard?
A. | It indicates the value of a company based on its competitive demands. |
B. | It depicts a company from the perspective of internal and external customers. |
C. | It measures a company's performance based on the business strategy adopted by it. |
D. | It should not be used to link HRM activities and a company's business strategy. |
E. | It guides companies to increase the time spent on new product and service development. |
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54. | When considering a balanced scorecard that depicts a company from a(n) _____ perspective, the critical HR indicators are employee satisfaction with HR department services and employee perceptions of the company as an employer.
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55. | When companies are trying to meet the shareholders' and general public's demands to act more ethically and environmentally responsibly, they are recognizing the importance of _____.
A. | a balanced scorecard approach |
B. | performance management |
C. | total quality management |
E. | cultural responsibility |
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56. | _____ is a companywide effort to continuously improve the ways people, machines, and systems accomplish work.
B. | Total quality management |
D. | The process decision program |
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57. | A company competes for the Malcolm Baldrige National Quality Award. If it is evaluated based on how senior executives create and sustain vision, values, and mission, it is likely that the company is being judged on the criterion of _____.
C. | customer and market focus |
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58. | Which of the following is true about the Six Sigma process?
A. | It focuses on the end product of employee satisfaction. |
B. | It terminates once the processes have been brought within the Six Sigma standards. |
C. | It strives to attain quality through supervision of daily work, not through training. |
D. | It discourages employees from lean thinking. |
E. | It aims to create a total business focus on serving the customer. |
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59. | Which of following is true of lean thinking?
A. | It is a way to do minimal work with highest attention and care for details. |
B. | It aims to deliver the best customer service while compromising on volume and quantity. |
C. | It is a way to create quality products and services using maximum resources. |
D. | It aims to do more with less effort, time, space, and equipment. |
E. | It is discouraged by training and quality programs. |
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60. | Which of the following people would be categorized as part of the external labor market with regard to Phoenix Inc.?
A. | Ahmad, who works for Phoenix Inc. as a full-time employee |
B. | Tamika, who works for Phoenix Inc. and is looking for a new job |
C. | Pete, who is an employee at a direct competitor of Phoenix and is not looking for a new job |
D. | Rogerio, who is unemployed and not looking for employment |
E. | Karla, who works for Jupiter Inc. and is seeking employment elsewhere |
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61. | Which of the following statements is true about the composition of the U.S. labor force in the next decade?
A. | Immigration will cease to affect the size and diversity of the workforce. |
B. | The largest proportion of the labor force is expected to be in the age group of 16–24 years. |
C. | The percentage of highly skilled immigrants will continue to remain lower than the percentage of low-skilled immigrants. |
D. | The median age of the labor force will increase to the highest number ever. |
E. | The high cost of health insurance and a decrease in health benefits will cause many employees to quit working. |
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62. | Which of the following statements is true about Generation X?
A. | It includes people who were born between 1925 and 1945. |
B. | Its members grew up much before the personal computer was invented. |
C. | Its members value skepticism and informality. |
D. | It is called the "me" generation. |
E. | Its members prefer close supervision and have a lot of patience. |
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63. | Which of the following is a characteristic of people of the Baby Boomer Generation?
A. | They surrender to establishments. |
B. | They lack social conscientiousness. |
C. | They do not conform to rules. |
D. | They are considered to be workaholics. |
E. | They focus on maintaining a hierarchy, even at the cost of justice. |
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64. | Which of the following is a characteristic of Millennials?
A. | They are not comfortable with using computers and the Internet. |
B. | They are pessimistic and cynical. |
C. | They have low levels of self-esteem. |
D. | They are eager to learn, work, and please. |
E. | They are not narcissistic. |
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65. | Which of the following is true of how different generations view each other?
A. | Millennials may think Generation X managers are good delegators. |
B. | Generation X managers may think that Millennials lack self-confidence. |
C. | Millennials might believe that Baby Boomers do not comply with company rules. |
D. | Traditionalists may believe that Millennials don't have a strong work ethic. |
E. | Baby Boomers may consider Millennials to be technologically illiterate. |
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66. | Which of the following arguments states that companies with the best reputations for managing diversity will win the competition for talent?
A. | System flexibility argument |
C. | Employee attraction and retention argument |
D. | Problem-solving argument |
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67. | Which of the following arguments emphasizes that reactions should be faster and cost less?
A. | System flexibility argument |
C. | Employee attraction and retention argument |
D. | Problem-solving argument |
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68. | Which of the following arguments states that diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of resourcefulness?
A. | System flexibility argument |
C. | Employee attraction and retention argument |
D. | Problem-solving argument |
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69. | Which of the following arguments states that heterogeneity in decisions potentially produces better decisions through a wider range of perspectives and critical analysis?
A. | System flexibility argument |
C. | Employee attraction argument |
D. | Problem-solving argument |
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70. | Which of the following arguments states that companies develop reputations on favorability as prospective employers for women and ethnic minorities?
A. | System flexibility argument |
C. | Employee attraction argument |
D. | Problem-solving argument |
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71. | Which of the following is a prediction about legal issues regarding employment in the United States?
A. | The emphasis on eliminating discrimination is likely to end. |
B. | The focus will turn away from pre-employment tests. |
C. | There will be more focus on criminal background screening. |
D. | There are likely to be fewer challenges to race discrimination. |
E. | There will be less emphasis on discrimination against veterans. |
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72. | Which of the following is a prediction about legal issues in the workplace in the United States?
A. | Workplace safety will receive less attention. |
B. | HR professionals will work independently without legal counsel. |
C. | There will be no penalty for not providing health care coverage. |
D. | Reporting and inspection requirements will decrease. |
E. | Security of intellectual property will receive more attention. |
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73. | Which of the following is one of the four characteristics of an ethical, successful company?
A. | The company gets the best deals, even to the detriment of its vendors. |
B. | It has a vision that employees may relate to but cannot use in their day-to-day work. |
C. | The company emphasizes mutual benefits in its relationship with customers, clients, and vendors. |
D. | It works on the belief that one's own interest comes before the interest of others. |
E. | It allows flexibility of ethical norms when the financial stakes involved are very high. |
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74. | Which of the following acts sets strict rules for businesses, especially for accounting practices that require more open and consistent disclosure of financial data and CEOs' assurance that the data is completely accurate?
A. | Gramm-Leach-Bliley Act |
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75. | Which of the following statements is true about the Sarbanes-Oxley Act of 2002?
A. | In case of noncompliance, it limits charges to heavy fines; it does not include prison terms for executives. |
B. | Organizations spend millions of dollars each year to comply with regulations under the Sarbanes-Oxley Act. |
C. | It imposes no criminal penalty for corporate governing and accounting lapses. |
D. | Retaliation against whistle-blowers is not included as a violation under the law. |
E. | It was passed in response to illegal and unethical behavior by employees toward the management. |
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76. | Which of the following is a core value of TQM?
A. | Methods are designed to meet the needs of external customers, not internal customers. |
B. | A few, select employees in an organization are given training in quality. |
C. | Processes are designed such that errors are detected and corrected immediately after they occur. |
D. | The company promotes cooperation with vendors and customers to hold down costs. |
E. | Managers measure progress with feedback based on qualitative observations. |
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77. | Exporting jobs from developed to less developed countries is known as _____.
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78. | Which of the following, if true, would support reshoring as a strategy for a U.S. firm?
A. | Rising labor costs overseas |
B. | Increasing wage costs in the United States |
C. | Increasing public support for offshoring in the United States |
D. | Improving health and safety requirements overseas |
E. | Decreasing cost of living overseas |
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79. | Which of the following is a concern caused by Gen-Y generation employees using social networking tools?
A. | Suppressed knowledge sharing |
B. | Creation of online expert communities |
C. | Loss of expert knowledge |
D. | No sharing of best practices |
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80. | Which of the following is true of virtual teams?
A. | They are typically situated in the same location. |
B. | They usually work in the same time zone. |
C. | They can work well without relying on technology. |
D. | They do not include partnership with competitors. |
E. | They combine top talent to solve tough challenges. |
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81. | How does employees’ use of mobile devices offer an advantage to companies?
A. | Companies do not need to lease storage space in the cloud. |
B. | Employees have access to work information at any time or location. |
C. | Companies can decrease spending on desktop computers and software. |
D. | The devices facilitate automation of key HR and business practices. |
E. | It minimizes social networking by employees during business hours. |
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82. | In high-performance work systems,
A. | previously established boundaries between employees and customers remain intact. |
B. | managers and employees work together, while vendors and suppliers work independently. |
C. | line employees are trained to specialize in individual tasks. |
D. | employees do not communicate directly with suppliers and customers. |
E. | line employees interact frequently with quality experts and engineers. |
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83. | An HR dashboard is a series of indicators that
A. | only HR managers have access to. |
B. | requires communication via an extranet. |
C. | allows the public to understand the HR policies of a company. |
D. | enables workforce analytics and evidence-based HR. |
E. | helps managers hire new employees based on secondary data. |
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84. | Which of the following HRM practices involves helping employees understand how their jobs contribute to the finished product?
B. | Performance management |
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85. | Which of the following HRM practices involves employees receiving feedback?
B. | Performance management |
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86. | Which of the following HRM practices involves employees participating in peer interviews?
B. | Performance management |
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87. | Which of the following HRM practices involves rewarding employees based on their team's performance?
B. | Performance management |
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88. | Which of the following major dimensions of HRM practices involves training employees to have the skills needed to perform their jobs?
A. | Vision and mission of human resources |
B. | Managing the human resource environment |
C. | Acquiring and preparing human resources |
D. | Compensating human resources |
E. | Assessment and development of human resources |
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89. | Which of the following dimensions of HRM practices involves ensuring that HRM practices comply with federal, state, and local laws?
A. | Vision and mission of human resources |
B. | Managing the human resource environment |
C. | Acquiring and preparing human resources |
D. | Compensating human resources |
E. | Assessment and development of human resources |
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90. | Which of the following activities is part of the assessment and development of the human resource dimension of HRM practices?
A. | Training employees to have the skills needed to perform their jobs |
B. | Identifying human resource requirements |
C. | Ensuring that HRM practices comply with federal, state, and local laws |
D. | Creating an employment relationship and a work environment that benefit the company |
E. | Creating pay systems as well as providing employees with benefits |
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Essay Questions
91. | What are the two challenges that HR managers face? Discuss how the shared service model and the self-service model help them overcome the two challenges.
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92. | Discuss the competencies, according to the Society for Human Resource Management, that HR professionals require to be successful.
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93. | What is meant by empowering, and what type of training must be conducted to make it effective?
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94. | Discuss the balanced scorecard approach of measuring stakeholder performance.
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95. | What is the purpose of the Malcolm Baldrige Award? Describe the application and evaluation process, and list the seven characteristics that companies are scored for in the examination.
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96. | Discuss how managing cultural diversity can provide a competitive advantage to a firm.
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97. | Discuss what companies should do to compete in the global marketplace.
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98. | What is a human resource information system (HRIS)? Explain the benefits of using an HRIS.
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99. | What is an HR dashboard? Explain a few ways in which it supports managers and employees.
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100. | Outline the four dimensions of human resource management practices.
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