Question 1
Incorrect
Identify the correct statement regarding companies that are ethical and successful.
Response Feedback: Ethical, successful companies act according to four principles. First, in their
relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual
benefit. Second, employees assume responsibility for the actions of the company. Third, such
companies have a sense of purpose or vision that employee’s value and use in their day-to-day work.
Finally, they emphasize fairness; that is, another person’s interests count as much as their own.
Question 2
Correct
Which of the following is a standard that human resource managers must satisfy for HRM practices to be
ethical?
Response Feedback: For human resource practices to be considered ethical, they must satisfy three basic
standards. First, HRM practices must result in the greatest good for the largest number of people.
Second, employment practices must respect basic human rights of privacy, due process, consent, and
free speech. Third, managers must treat employees and customers equitably and fairly.
Question 3
Correct
Montero Inc., an automobile manufacturing company, had the largest number of employees in the
manufacturing sector last year. Instead of hiring more employees, the company decided to invest heavily
in training its employees on automotive maintenance and design. Which of the following beliefs has led
the company to take this decision?
Response Feedback: nHuman capital means the organization’s employees, described in terms of their
training, experience, judgment, intelligence, relationships, and insight—the employee characteristics
that can add economic value to the organization. In other words, for an organization to succeed at what
it does, it needs employees with certain qualities, such as particular kinds of training and experience.
This view means employees in today’s organizations are not interchangeable, easily replaced parts of a
system but the source of the company’s success or failure. In this case, Montero Inc. decided to invest
heavily in training its employees on automotive maintenance and design instead of hiring more
employees because employees are the source of the company’s success or failure.
Question 4
Correct
Julie works at Matrix Inc. Her primary role in the company is to create self-rating, job-related
questionnaires for the employees. Which of the following human resource management (HRM) practices
is being performed by Julie?
Response Feedback: In this scenario, Julie is involved in performance management. The process of
ensuring that employees’ activities and outputs match an organization’s goals is called performance
management. The activities of performance management include specifying the tasks and outcomes of a
job that contribute to the organization’s success. The human resource department may be responsible
for developing or obtaining questionnaires and other devices for measuring performance.
Question 5
Correct
In the context of HRM functions, the activities of performance management include:
Response Feedback: The activities of performance management include specifying the tasks and
outcomes of a job that contribute to the organization’s success. Then various measures are used to
compare the employee’s performance over some time period with the desired performance.
Question 6
Correct
How can an HR department that is considered its company’s strategic partner help the company gain a
competitive advantage?
Response Feedback: Contributing to a company’s strategy through an understanding of its existing and
needed human resources and ways HR practices can give the company a competitive advantage. For
strategic ideas to be e;ective, HR people must understand the business, its industry, and its competitors.
Question 7
Correct
Blandings Corp., an apparel manufacturer, has been pro#table for a long time without depleting its
resources—raw materials, employees, and the support of the local community. The company also caters
to the needs of all its stakeholders. Which of the following characteristics is illustrated in this scenario?
Response Feedback: Sustainability is broadly defined as an organization’s ability to pro#t without
depleting its resources, including employees, natural resources, and the support of the surrounding
community. Success at sustainability comes from meeting the needs of the organization’s stakeholders,
all the parties who have an interest in the organization’s success.
Question 8
Correct
If people believe their rights are being violated, they have the right to a fair and impartial hearing. This
re?ects the basic human right to:
Response Feedback: Right to due process implies that if people believe their rights are being violated,
they have the right to a fair and impartial hearing.
Question 9
Correct
People’s right of privacy is the right to:
Response Feedback: The right of privacy holds that people have the right to do as they wish in their
private lives, and they have the right to control what they reveal about private activities.
Question 10
Correct
Heather is an HR specialist at McCoy Manufacturing, where she is responsible for making sure HR
policies and transactions deliver results on a companywide basis by acquiring, developing, motivating,
and deploying human resources. This scenario illustrates Heather‘s skills as a(n) _____.
Response Feedback: This scenario illustrates Heather’s skills as an operational executor. This competency
requires HR employees to carry out particular HR functions, such as handling the selection, training, or
compensation of employees and communicating through a variety of media. All of the other HR skills
require some ability as operational executor, because this is the level at which policies and transactions
deliver results by legally, ethically, and eEciently acquiring, developing, motivating, and deploying
human resources.
Question 11
Correct
Which of the following refers to the process of geFng detailed information about jobs?
Response Feedback:
Job analysis is the process of geFng detailed information about jobs.
Question 12
Correct
Citrus Fruits Inc., a beverages company, was shut down because of public allegations about the quality of
its products. AGer a period of 10 years, the former CEO of the company decided to start up the company
again. Analyzing the situation, what measures should the revamped company undertake in order to
emerge successful?
Response Feedback: Ethical, successful companies act according to four principles. First, in their
relationships with customers, vendors, and clients, ethical and successful companies emphasize mutual
benefit. Second, employees assume responsibility for the actions of the company. Third, such
companies have a sense of purpose or vision that employees value and use in their day-to-day work.
Finally, they emphasize fairness; that is, another person’s interests count as much as their own. In this
case, Citrus Fruits Inc. should improve quality and ethics in production and employees be mindful of the
importance of quality in their daily activities.
Question 13
Correct
The process by which an organization aIempts to identify applicants with the necessary knowledge,
skills, abilities, and other characteristics that will help the organization achieve its goals is referred to as
_____.
Response Feedback: Selection refers to the process by which an organization aIempts to identify
applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the
organization achieve its goals. An organization makes selection decisions in order to add employees to its
workforce, as well as to transfer existing employees to new positions.
Question 14
Correct
Jonathan is a part of the HR department in an advertising #rm. During a performance review, Jonathan
realized he does not know the details of the job performed by a certain group of employees. However,
he proceeds with the review and evaluates their performance. Which of the following is most likely to
have occurred aGer the performance review?
Response Feedback: Performance measures may emphasize observable behaviors (for example,
answering the phone by the second ring), outcomes (number of customer complaints and compliments),
or both. When the person evaluating performance is not familiar with the details of the job, outcomes
tend to be easier to evaluate than specific behaviors. In this case, Jonathan completed the review and
evaluated the performance of a certain group of employees though he did not know the details of the
jobs performed by them. He would have found it easier to evaluate the outcome than the specific
behaviors of the employees.
Question 15
Correct
If a company, as part of its job redesign program, plans to set up teams to manufacture products, which
of the following programs might it o;er to help employees learn the ins and outs of e;ective teamwork?
Response Feedback: Development involves acquiring knowledge, skills, and behavior that improve
employees’ ability to meet the challenges of a variety of new or existing jobs, including the client and
customer demands of those jobs. Development programs oGen focus on preparing employees for
management responsibility. Likewise, if a company plans to set up teams to manufacture products, it
might o;er a development program to help employees learn the ins and outs of e;ective teamwork.
Question 16
Correct
Employees who take assignments in other countries are called _____.
Response Feedback: Employees who take assignments in other countries are called expatriates.
Question 17
Correct
Identify the correct statement about ?exible work schedules.
Response Feedback: The globalization of the world economy and the development of e-commerce have
made the notion of a 40-hour workweek obsolete. As a result, companies need to be sta;ed 24 hours a
day, seven days a week.
Question 18
Correct
Neo Pharmaceuticals and Ayurva Medicines combined their businesses to create a new company, Ayurva
Pharmaceuticals Inc. This is an example of a(n) _____.
Response Feedback: A merger occurs when two companies become one. In this case, Neo
Pharmaceuticals and Ayurva Medicines created a merger because they combined their businesses to
create a new company, Ayurva Pharmaceuticals.
Question 19
Incorrect
According to the core values of total quality management:
Response Feedback: Total quality management has several core values: quality is designed into a product
or service so that errors are prevented from occurring, rather than being detected and
Question 20