Principles And Metrics For Value Ch12 Test Bank + Answers

Chapter 12: Principles and metrics for value adding HRM

TRUE-FALSE QUESTIONS

1. ‘Best practices’ are thought of as an ideal or ‘model’ mode of practice, and they are identified from highly successful organisations.

a. True

b. False

Answer: a

LO: 1

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

2. ‘Best principles’ are scientifically proven axioms of human behaviour and often they focus on best practices rather than best principles.

a. True

b. False

Answer: a

LO: 1

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

3. It is important that rather than simply adopting the practices of effective organisations, one should examine the underlying principles that led to the development of these effective practices.

a. True

b. False

Answer: a

LO: 1

Diff: 2

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

4. HR climate audits communicate with employees that their opinions are valued, accepted and integrated into the organisational culture.

a. True

b. False

Answer: a

LO: 2

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

5. To achieve effective HRM, the HRM system must be continually fine-tuned and its components monitored and reviewed to assure continuous learning.

a. True

b. False

Answer: a

LO: 2

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

6. Benchmarking can be a useful tool for acquiring information on what competitors are doing.

a. True

b. False

Answer: a

LO: 2

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

7. If I wanted to determine whether Adam’s level of job satisfaction varied from Michael’s level, I would gather between-person metrics.

a. True

b. False

Answer: a

LO: 3

Diff: 1

Topic: Human resource metrics

AACSB: 3

8. According to the examples in the text, within-person metrics can be used during recruitment and selection while between-person metrics can be used during job design.

a. True

b. False

Answer: b

LO: 4

Diff: 1

Topic: Human resource metrics

AACSB: 3

9. HR practitioners believe that the quality of relationships with one’s supervisor and co-workers affect work behaviour and attitudes is the only value and benefit to consider

a. True

b. False

Answer: b

LO: 4

Diff: 1

Topic: A value-driven culture underpins effective SHRM

AACSB: 7

10. When using organisational-level metrics it is necessary to undertake a gap analysis both vertically and horizontally to ensure that HR functions are consistent and that gaps do not prevent the organisation from achieving its strategic goals.

a. True

b. False

Answer: b

LO: 3

Diff: 2

Topic: Human resource metrics

AACSB: 3

MULTIPLE CHOICE QUESTIONS

1. Best practice is different from best principle in terms of:

a. once the principle is established then the practice can be adopted

b. practice comes first then the principle is applied

c. they should always be applied jointly to obtain effective SHRM

d. they produce very different results for the SHRM

Answer: c

LO: 1

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

2. Being able to communicate to employees that their opinions are valued, accepted and integrated into the organisational culture, norms, practices and policies with the purpose of identifying and filling any gaps in nurturing people’s cognitive, affective is considered through:

a. HR benchmarking

b. HR climate audit

c. HR best practice policy initiative

d. HR strategic objectives

Answer: b

LO: 1

Diff: 1

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

3. The Sweat Shirt Company installed a new database system and developed an appropriate culture to utilise and further develop this system of technology. This example illustrates:

a. best principles

b. benchmarking

c. best practice

d. HR culture audit

Answer: c

LO: 1

Diff: 2

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

4. An American-owned multinational found the ‘Employee of the Month’ recognition as an effective motivator in the USA. Its Australian subsidiary decided to comply with the American initiative by simply rostering employees for the award with recognition in a practical and effective manner yet suitable for the employees in this environment. This is an example of:

a. best practice

b. external motivational forces

c. best principles

d. cross cultural foundations for learning

Answer: a

LO: 1

Diff: 2

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

5. Obtaining information about remuneration practices in order to understand the reality of the market for talent is an example of:

a. benchmarking

b. competitor analysis

c. SWOT analysis

d. Filing gaps in the HRM practice

Answer: a

LO: 2

Diff: 2

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

6. A bus operator runs the business on a narrow profit margin and the owner has considered the underlying principles of best practice reward systems. By identifying issues that employees value, they develop an innovative reward system that is specific to the business. They asked employees what non-financial factors they valued in their job and the list included new buses and preferred bus routes and shifts. The owner then chose from both intrinsic and extrinsic rewards to motivate employees and identified the rewards linked to desired performance levels. This is an example of:

a. ineffective SHRM

b. effective SHRM

c. benchmarking

d. HRM auditing

Answer: b

LO: 2

Diff: 3

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

7. Effective HRM is a dynamic process which involves:

a. ongoing and systematic environmental scanning

b. analysis of organisational objectives, strategies and policies

c. the promotion of ‘systems’ thinking

d. all of the above

Answer: d

LO: 2

Diff: 1

Topic: Effective SHRM is an evolutionary, dynamic process, not a static set of routines

AACSB: 3

8. Developing an understanding of the organisation as a highly interconnected system is termed:

a. benchmarking

b. systems thinking

c. SWOT analysis

d. strategic objective setting

Answer: b

LO: 2

Diff: 2

Topic: Effective SHRM is about best principles, not best practices

AACSB: 3

9. HR metrics can be used to monitor all of the following except:

a. what is going on within the organisation

b. what effects any changes implemented within the organisation are having

c. the value being added to the organisation through its human resources

d. the most appropriate recruitment and selection procedures to use in the organisation

Answer: d

LO: 3

Diff: 2

Topic: Human resource metrics

AACSB: 7

10. Luke, the HR manager, examined training evaluations completed by employees. The evaluations revealed that employees had different reasons for participating in training, different perceptions of their ability to use the training, and different opinions of the usefulness of the training on the job. This type of information is an example of:

a. within-person metrics

b. within-person variability

c. between-person metrics

d. group-level metrics

Answer: b

LO: 3

Diff: 2

Topic: Human resource metrics

AACSB: 3

11. Nicole, the HR manager, collected information about the personality of people within the organisation and their levels of honesty. She found that employees who displayed the personality characteristic of Machiavellianism were more likely to lie at work. Nicole collected:

a. within-person metrics

b. within-person variability

c. between-person metrics

d. group-level metrics

Answer: c

LO: 3

Diff: 2

Topic: Human resource metrics

AACSB: 8

12. Francis discovered that a lot of the conflict in her project team was due to the diversity of team members. This led to low group morale and communication problems. Francis has collected:

a. within-person metrics

b. within-person variability

c. between-person metrics

d. group-level metrics

Answer: d

LO: 4

Diff: 2

Topic: Human resource metrics

AACSB: 8

13. When Olive, the HR manager, compared the overall levels of job satisfaction of staff to the overall job satisfaction of staff in a competitor’s organisation she found that her staff were much more satisfied with their opportunities for promotion and development. Olive has collected:

a. between-person metrics

b. group-level metrics

c. organisational-level metrics

d. multilevel metrics

Answer: c

LO: 5

Diff: 2

Topic: Human resource metrics

AACSB: 3

14. Aaron, the HR manager, found that those employees who had an extravert personality contributed to work group cohesion and that this contributed to a positive organisational culture. What did Aaron use to reach this conclusion?

a. between-person metrics

b. group-level metrics

c. organisational-level metrics

d. multilevel metrics

Answer: d

LO: 4

Diff: 2

Topic: Human resource metrics

AACSB: 3

15. Which of the following is not an example of organisational-level metrics?

a. organisational culture

b. organisational citizenship behaviour

c. organisational climate

d. corporate social responsibility

Answer: b

LO: 5

Diff: 2

Topic: Human resource metrics

AACSB: 3

16. When using HR metrics, the mistake of developing and using metrics for each individual function or activity is often made, without thinking about the ‘bigger picture’. When using HR metrics it is important to ensure that they are in line with:

a. the other organisational functions

b. the organisation’s strategic goals

c. a multilevel metrics model

d. all of the above

Answer: d

LO: 5

Diff: 3

Topic: Human resource metrics

AACSB: 3

17. Gary used a horizontal gap analysis to examine whether the performance management process was being implemented differently for individuals and groups in different departments throughout the organisation. Gary used this analysis as part of the process for gathering:

a. multilevel metrics

b. organisational-level metrics

c. group-level metrics

d. within-person metrics

Answer: a

LO: 5

Diff: 2

Topic: Human resource metrics

AACSB: 3

18. The values and philosophy of an organisation that link to organisational success and the values and beliefs driving people management are crucial to the forming what type of HRM system?

a. a value-driven culture

b. an organisation where behaviours and attitudes are not respected

c. a philosophical organisation

d. value orientated HRM policy

Answer: a

LO: 6

Diff: 1

Topic: A value-driven culture underpins effective SHRM

AACSB: 2

19. The paradigm that is most relevant to the contemporary business context contains which of the following values and beliefs?

a. recognition of the whole person

b. a positive social environment and the emotional aspects of working

c. a healthy and secure physical environment

d. all of the above

Answer: d

LO: 6

Diff: 1

Topic: A value-driven culture underpins effective SHRM

AACSB: 7

20. The triple bottom line (TBL) approach suggests that three types of indicators should be used to measure successful business performance. These three indicators are:

a. financial, environmental and cultural

b. economic, ecological and social

c. financial, environmental and social

d. economic, ecological and cultural

Answer: c

LO: 7

Diff: 1

Topic: The future of HRM, and HRM in the future

AACSB: 7

SHORT ANSWER QUESTIONS

1. If HR practitioners adopt ‘best practices’ used by other firms or repeat ‘best practices’ used in the past then they see effective HRM as a set of specific and routine practices that can be applied to any context. What is wrong with this thinking?

Answer:

Effective HRM is a dynamic process, involving ongoing and systematic environmental scanning and analysis of organisational objectives, strategies and policies. As the internal and external environments of organisations change so too must the HR practices adopted. Therefore HR practitioners should adopt ‘systems thinking’ or the consideration of the elements of an HR activity and the processes that interconnect them. The HR system must be continually fine-tuned and its components (i.e. policies and practices) must be monitored to ensure they are addressing the underlying causes of behaviour and that they align with one another. Effective SHRM therefore reflects continuous learning processes. It requires a flexible mindset, mechanisms which ensure the availability of the most accurate information at the time required, reflecting on what can be learned from the past while thinking about the needs and demands of the future.

LO: 1

Diff: 1

Topic: Effective SHRM is about best principles not best practices

AACSB: 8

2. What is benchmarking in HR, how is it effective and how can it be problematic?

Answer:

Benchmarking can be a useful tool for acquiring information on what competitors are doing with respect to their HR policies and practices, providing context on the business factors impacting on an organisation’s quest to attract and retain talent. Such information may be collected directly by the HR department through salary surveys or outsourced to outside experts such as HR consultants or HR academics/researchers.

HR benchmarking for purposes other than information gathering can be problematic. If HR decision-making regarding which policies and practices to adopt is driven by having the same or more of the same practices as competitors, the specific gaps relating to the cognitive, affective and behavioural qualities of an organisation’s employees are likely to go unmet.

Instead, the driver of HRM, needs to be human wellbeing. Using the CHRM decision-making framework, HR practitioners can identify the HR tools that fit the organisation’s unique circumstances while at the same time meeting the specific needs of its people.

LO: 2

Diff: 1

Topic: HR metrics

AACSB: 3

3. What is the difference between within-person metrics, between-person metrics and group-level metrics?

Answer:

Within-person metrics are used to measure differences within an individual person.

People, unlike machines, are not static entities; rather, they can change from moment to moment.

Between-person metrics are used to measure differences between people. While it is possible, for example, to measure differences within an individual’s levels of motivation, it is also possible to measure differences between people.

Group-level metrics can be used to measure variables at the group level. This level of measurement is particularly important considering that now, more than ever, organisations are using work teams to increase efficiency and effectiveness.

LO: 3

Diff: 1

Topic: HR metrics

AACSB: 3

4. List five of the values and beliefs that are contained in the thinking approach (or ‘paradigm/) that is most relevant to the contemporary business context.

Answer:

• Recognition of the whole person. That is, employee behaviour is affected not only by what is happening in the workplace but also by their personal lives. Effective HRM takes this fact into account as much as is feasible.
• The social environment within the organisation influences employee behaviour for better or for worse. Effective HRM promotes a positive social environment.
• The physical environment the employee works in influences behaviour, emotions, attitudes and motivation. Effective HRM ensures a healthy and secure physical environment.
• The emotions employees experience at work influence their behaviour. Effective HRM recognises the emotional aspects of work and working and ensures employees are supported in the management of these.
• The quality of relationships with one’s supervisor and co-workers affects work behaviour and attitudes. Effective HRM promotes inclusion and constructive conflict and addresses destructive conflict.
• Employee behaviour is a product of personal and environmental characteristics. Effective HRM ensures high-quality interpersonal relationships, appropriate organisational systems, clear goals and performance criteria, a healthy work environment and consideration of person–job fit.
• Employee behaviour is better served by HRM policies and practices which focus on motivation through support rather than through fear.

LO: 7

Diff: 1

Topic: A value-driven culture underpins SHRM

AACSB: 8

5. Given the changes in how business is valued in society, discuss the potential “future” of organisations. Describe and provide examples of differing conditions that underpin the way that HRM may be practised in future organisations.

Answer:

The triple bottom line view has highlighted for business, society and governments the importance of which metrics are used to indicate successful business performance. In particular, the triple bottom line suggests that it is inappropriate to rely on financial performance indicators alone. Rather, this approach suggests that business success is measured by good performance on financial, social and environmental indicators.

Although the current ability to accurately assess environmental and social impact in any meaningful way is still problematic, the view that business should contribute to the wellbeing of the environment and society does foreshadow the possibility that current notions of economics and business performance may shift away from a material focus to a human wellbeing focus.

For HRM, a key implication would be the need to explicitly link the management of people to social and environmental outcomes in addition to financial ones. Examples of non-financial outcomes that HRM may need to show it positively affects include cognitive moral development, corruption, distributive justice, diversity openness, inclusion, crime, economic development, poverty alleviation, education, corporate citizenship, environmental impact, human rights, and empowerment to exercise civil and employment freedoms.

The increasing expectations of consumers, employees, communities and governments regarding the purpose of business in society and how it should operate will undoubtedly require a greater integration of HRM with the other functions within an organisation, as well as integration with the broader community.

LO: 7

Diff: 1

Topic: The future of HRM and HRM in the future

AACSB: 3

ESSAY QUESTION

1. Part of being an effective leader in business is to think about what the future is likely to hold in terms of both challenges and opportunities. Consider the triple bottom line view and discuss its influences on business, society and government.

Answer:

When considering the triple bottom line in HRM, it is useful to consider how the theory and practice of HRM might be different in the future, as well as how business might be different, and the people-management implications of these.

By considering what business might be like in the future, already we have witnessed shifts in how business is valued in society. The triple bottom line view has highlighted for business, society and governments the importance of which metrics are used to indicate successful business performance. In particular, the triple bottom line suggests that it is inappropriate to rely on financial performance indicators alone. Rather, this approach suggests that business success is measured by good performance on financial, social and environmental indicators.

Although the current ability to accurately assess environmental and social impact in any meaningful way is still problematic, the view that business should contribute to the wellbeing of the environment and society does foreshadow the possibility that current notions of economics and business performance may shift away from a material focus to a human wellbeing focus. For HRM, a key implication would be the need to explicitly link the management of people to social and environmental outcomes in addition to financial ones.

Examples of non-financial outcomes that HRM may need to show it positively affects include cognitive moral development, corruption, distributive justice, diversity openness, inclusion, crime, economic development, poverty alleviation, education, corporate citizenship, environmental impact, human rights, and empowerment to exercise civil and employment freedoms.

The increasing expectations of consumers, employees, communities and governments regarding the purpose of business in society and how it should operate will undoubtedly require a greater integration of HRM with the other functions within an organisation, as well as integration with the broader community.

LO: 7

Diff: 1

Topic: The future of HRM and HRM in the future

AACSB: 3