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Chapter 02
Trends in Human Resource Management
True / False Questions
1. An individual who is actively seeking employment is a part of an organization’s external
labor market.
True False
2. It is generally seen that worker performance and learning suffer heavily as a result of
aging.
True False
3. Individuals who arrive in the United States without meeting the legal requirements for
immigration or asylum are referred to as undocumented immigrants.
True False
4. Most organizations are looking for educational achievements to find employees who can
handle a variety of responsibilities, interact with customers, and think creatively.
True False
5. A large gap exists between the social system and the technical system in high-performance
work systems.
True False
6. The Bureau of Labor Statistics forecasts that between 2008 and 2018, most new jobs will
be in manufacturing.
True False
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7. Knowledge workers in an organization do not work directly with customers.
True False
8. Skilled knowledge workers would suffer the most in a slow economy as they have little
operational importance in a company.
True False
9. The use of employee empowerment shifts the recruiting focus away from general cognitive
and interpersonal skills toward technical skills.
True False
10. Virtual teams rely on communications technology such as videoconferences, e-mail, and
cell phones to keep in touch and coordinate activities.
True False
11. The traditional role of HRM as primarily an administrative function has gradually given
way to a new role—that of strategic partner.
True False
12. Total quality management is intended to bring about a continuous process of quality
improvement.
True False
13. Total quality management proposes that every employee in the organization receive
training in quality.
True False
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14. One of the core values of TQM is that methods and processes are designed to meet the
needs of internal customers rather than those of external customers.
True False
15. When forming Citigroup, Citicorp combined its banking business with Traveller’s Group’s
insurance business. This is an example of a merger.
True False
16. Early-retirement programs are a strategy used by organizations undergoing downsizing.
True False
17. According to research, early-retirement programs are one of the most effective approaches
to downsizing.
True False
18. An organization’s critical work processes are not altered during a reengineering process.
True False
19. A company that operates in the U.S. shifts its warehouses and operations to a low rent area
that is 50 miles away from town. This is an example of offshoring.
True False
20. Offshoring refers to moving the operations from the country where a company is
headquartered to a country where pay rates are lower but the necessary skills are available.
True False
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21. The processing and transmission of digitized HR information is called electronic human
resource management.
True False
22. Under the new psychological contract, organizations expect employees to contribute time,
effort, skills, abilities, and loyalty in return for job security and opportunities for promotion
within the organization.
True False
23. Employees’ job security has increased as a result of the new psychological contract.
True False
24. Contract company workers are employed directly by a company.
True False
25. The globalization of the world economy and the development of e-commerce have
reinforced the concept of a 40-hour workweek.
True False
Multiple Choice Questions
26. The external labor market in an organization refers to the:
A. contracted workers in the organization.
B. laid-off employees of the organization.
C. individuals who are actively seeking employment.
D. employees who have direct contact with customers.
E. employees of the immediate competitors of the organization.
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27. Which of the following statements best explains the term “labor force”?
A. All the permanent employees of an organization.
B. All those who have contracted to work for the company.
C. All the adult members of a population.
D. All the temporary workers of an organization.
E. All the people willing and able to work.
28. Which of the following authorities is responsible for tracking changes in the composition
of the U.S. labor force and in forecasting employment trends?
A. National Statistics Association
B. Occupational Outlook Bureau
C. U.S. Census Bureau
D. Bureau of Labor Analysis
E. Bureau of Labor Statistics
29. The fastest growing segment of the labor force is expected to be between the ages of:
A. 16 to 24.
B. 25 to 35.
C. 36 to 45.
D. 46 to 54.
E. 55 and older.
30. Which of the following statements about the composition of the U.S. labor force during
the next decade is true?
A. The labor force is expected to grow at a greater rate than at any other time in U.S. history.
B. The largest proportion of the labor force is expected to be in the 16- to 25-year age group.
C. For the first time ever, the number of workers under 40 years of age will exceed the
number of workers 40 years of age or older.
D. Despite a small increase in the number of young workers, the overall workforce will be
aging.
E. The total cost of labor in the United States would considerably decrease.
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31. Which of the following is a major problem associated with aging?
A. Older workers present challenges related to costs of health care.
B. Older workers are not capable of learning new technology.
C. Older workers do not want to work.
D. The learning process suffers due to aging.
E. Worker performance suffers due to aging.
32. Which of the following form the majority of the U.S. labor force?
A. African-Americans
B. Whites
C. Hispanics
D. Asians
E. Europeans
33. Which of the following is the fastest growing category in the U.S. labor force?
A. African-Americans
B. Australians
C. Whites
D. Asian and other groups
E. Europeans
34. Employers’ support for immigration to the United States can be attributed to the fact that:
A. there is lack of adequate technology in the country.
B. regulation is not strong enough to control undocumented immigration.
C. qualified technical workers are scarce in the United States.
D. there is increased support from the government also.
E. U.S. workers are not open to innovation.
35. Managing cultural diversity involves:
A. forming different pay structures for various groups.
B. creating separate career tracks for employees with families.
C. avoiding the use of affirmative action policies.
D. reducing cultural diversity by selective hiring.
E. encouraging career development for women and minorities.
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36. Which of the following skills are more actively sought by U.S. employers today?
A. Physical strength
B. Mastery of particular machinery
C. Mathematical skills
D. Ability to perform routine tasks
E. Ability to work with a tool
37. Today’s employees must be able to handle a variety of responsibilities, interact with
customers, and think creatively. To find such employees, most organizations are looking for:
A. basic psychomotor skills.
B. employees in competitors’ work locations.
C. highly experienced employees.
D. older employees.
E. educational qualifications.
38. Which of the following describes organizations with the best possible fit between their
social system and their technical system?
A. Optimal production systems
B. Holistic management systems
C. Optimal service systems
D. High-performance work systems
E. Total quality management systems
39. Which of the following is a trend that is seen in today’s high-performance work systems?
A. Mismatches in technical system and social system
B. Employee empowerment in decision making
C. Increase in individual assignments
D. Centralized decision making
E. Reduced reliance on knowledge workers
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40. How has the requirement for creating high-performance work systems changed?
A. Customers are demanding cheaper, standardized products.
B. Employees prefer implementation of 40-hour work weeks.
C. Competitors are looking for ways to standardize prices in their respective industries.
D. Employers are looking for ways to tap people’s creativity and interpersonal skills.
E. Customers are demanding standardized products over customized products.
41. The Bureau of Labor Statistics forecasts that between 2008 and 2018, most new jobs will
be in:
A. service occupations.
B. the primary sector.
C. agriculture.
D. the secondary sector.
E. manufacturing.
42. According to data published by the Bureau of Labor Statistics, which of the following
occupations is projected to add the most number of jobs before 2018?
A. Office clerks
B. Registered nurses
C. Pilots
D. Retail salespersons
E. Production workers
43. Skilled knowledge workers:
A. would have less power in the organization.
B. would suffer the most in a slow economy.
C. cannot be replaced easily.
D. never work directly with customers.
E. rarely have a college degree.
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44. The reliance on knowledge workers also affects organizations’ decisions about the kinds of
people they are recruiting and selecting leading them to emphasize on:
A. specific job skills.
B. foundation skills.
C. arithmetical skills.
D. general cognitive skills.
E. operative skills.
45. Employee empowerment is defined as:
A. the movement of women and minorities into managerial positions.
B. providing increased salary and benefits to the employees.
C. leading employees by the strength of one’s charisma.
D. the act of continually learning and improving one’s skills and abilities.
E. giving employees responsibility and authority to make decisions.
46. What effect does the use of employee empowerment have on recruiting?
A. It has created an international labor market.
B. It has substantially enhanced employment opportunities for women and minorities.
C. It has shifted the focus away from technical skills to general cognitive and interpersonal
