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?