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.
The members of Generation X are characterized by their comfort with the latest technology,
and the need to be noticed, respected, and involved.
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.
Knowledge workers in an organization do not work directly with customers.
True False
7.
Skilled knowledge workers generally do not have job opportunities in a slow economy.
True False
8.
Successful organizations treat all their workers as knowledge workers.
True False
9.
The use of employee empowerment has shifted the recruiting focus away from general
cognitive and interpersonal skills toward technical skills.
True False
10.
Teamwork gives employees the authority and ability to decide on how to do their work.
True False
11.
Virtual teams rely on communications technology such as videoconferences, e-mail, and cell
phones to keep in touch and coordinate activities.
True False
12.
Traditional management thinking treated human resource management primarily as a means
to support a company’s strategy.
True False
13.
Total quality management is intended to bring about a continuous process of quality
improvement.
True False
14.
Total quality management proposes that every employee in the organization receive training
in quality.
True False
15.
When forming Citigroup, Citicorp combined its banking business with Traveler’s Group’s
insurance business. This is an example of a merger.
True False
16.
Laurie Corp., a watch manufacturer, purchases Smith Inc., a manufacturer of pens. This
scenario is an example of an acquisition.
True False
17.
When two firms in one industry join together to hold a greater share of the industry, it
represents a consolidation.
True False
18.
Early-retirement programs are one of the most effective approaches to downsizing.
True False
19.
An organization’s critical work processes are not altered during a reengineering process.
True False
20.
A New York City-based company shifts its warehouses and operations to a low rent area that
is 50 miles away from the city. This is an example of offshoring.
True False
21.
Rajeev, an Indian citizen, works for an automobile company in India. Currently, he is in the
United States to work on a project at the company’s office in Salt Lake City, Utah. In this
scenario, Rajeev is regarded as an expatriate.
True False
22.
The processing and transmission of digitized human resource information is called electronic
human resource management.
True False
23.
Under a new type of 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
24.
Employees’ job security has increased as a result of the new psychological contract.
True False
25.
In the context of alternative work arrangements, contract company workers are employed
directly by a company.
True False
26.
Employers can direct contract workers on details such as how and when they have to do their
jobs without paying the employer’s share of Social Security for those workers.
True False
Multiple Choice Questions
27.
The external labor market consists of:
A.
contract workers in the organization.
B.
current employees of the organization.
C.
individuals who are actively seeking employment.
employees who have direct contact with customers.
E.
employees of the immediate competitors of the organization.
28.
Which of the following scenarios exemplifies an external labor market?
A.
Katie, a contract worker, working for a certain period specified in a written contract.
B.
Andrew, a temporary worker, being paid by a company for his services.
C.
Jill, an engineering graduate, looking for a job.
Hilary, an employee, going through training.
E.
Salim, an employee, securing his financial services certification.
29.
Name the agency that is responsible for tracking changes in the composition of the U.S. labor
force and forecasting employment trends.
A.
The National Statistics Association
B.
The Occupational Outlook Bureau
C.
The U.S. Census Bureau
The Bureau of Economic Analysis
E.
The Bureau of Labor Statistics
30.
Eric, a management student, is required to compile a report on the current composition of the
U.S. labor force for his human resource management class. He also wants to include details
on the current and future age distribution of U.S. employees. His professor suggests that he
conduct his research with the help of the Internet and with sources from the college library.
The website of which of the following agencies would be most useful for preparing this
report?
A.
The National Statistics Association
B.
The Occupational Outlook Bureau
C.
The U.S. Census Bureau
The Bureau of Economic Analysis
E.
The Bureau of Labor Statistics
31.
Which of the following racial groups will form the majority of the U.S. labor force according to
the 2012-2022 Employment Projections from the Bureau of Labor Statistics?
A.
African Americans
B.
Whites
C.
Hispanics
Asians
E.
Native Americans
32.
Identify the correct statement regarding the composition of the U.S. labor force during the
period 2012-2022.
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.
The number of workers under 40 years of age will exceed the number of workers 40 years
of age or older.
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.
33.
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.
undocumented immigration is not taken seriously by the U.S. government.
C.
qualified technical workers are scarce in the United States.
there is increased support from the government.
E.
U.S. workers are not open to innovation.
34.
Anne, a business researcher, believes that organizations will have to spend a lot of money on
employee health care in the future. Her colleague Nick argues that organizations will not have
to increase their spending on employee health care benefits. Which of the following
statements weakens Nick’s argument?
A.
The labor force is expected to grow at a greater rate by 2015 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.
The number of workers under 40 years of age will exceed the number of workers 40 years
of age or older.
By 2022, all baby boomers will be at least 55 years old, increasing the ranks of workers
nearing retirement.
E.
The total cost of labor in the United States will decrease considerably in the near future.
35.
Gerard, a college student, believes that academic achievement and not mechanical skills will
help one secure a job in the U.S. workforce. Jack, his classmate, believes that mechanical
skills are more important than academic achievement in landing a job in the U.S. Which of
the following statements strengthens Gerard’s argument?
A.
Employers no longer look for individuals who have strong verbal and interpersonal skills.
B.
Qualities such as physical strength are very important for many jobs in this period of time.
C.
Companies invest more on the latest technology for their production needs.
Companies prefer individuals with hands-on experience than those with theoretical
knowledge.
E.
Mastery of a particular piece of machinery is no longer important for many jobs.
36.
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.
reducing cultural diversity by selective hiring.
E.
encouraging career development for women and minorities.
37.
Which of the following skills is actively sought by U.S. employers today?
A.
Physical strength
B.
Mastery of a particular piece of machinery
C.
Interpersonal skills
Ability to perform routine tasks
E.
Ability to work with a tool
38.
_____ refer to organizations that have the best possible fit between their social system and
their technical system.
A.
Workforce analysis systems
B.
Holistic management systems
C.
Supply chain systems
High-performance work systems
E.
Total quality management systems
39.
Moore Corp., a financial services company, specializes in customers’ preferences and cost–
efficient processes. They also encourage self-managing teams that make all decisions
regarding business development and the sale of services to their customers. The firm
ensures that there is a good fit between its work system and its people. This scenario implies
that Moore has a _____.
A.
workforce analysis system
B.
high-performance work system
C.
supply chain system
total quality management system
E.
holistic management system
40.
Which of the following is a characteristic of current day high-performance work systems?
A.
Mismatches in technical system and social system
B.
Employee empowerment in decision making
C.
Increase in individual assignments
Centralized decision making
E.
Reduced reliance on knowledge workers
41.
How has the requirement for creating high-performance work systems changed?
A.
There is a drive toward low-cost strategy in the labor market.
B.
Employees prefer implementation of a 40-hour workweek.
C.
Competitors are looking for ways to standardize prices in their respective industries.
Employers are looking for ways to tap people’s creativity and interpersonal skills.
E.
Customers are demanding standardized products over customized products.
42.
The growth in e-commerce and the information economy has led to an increase in the
demand for employees in:
A.
technical jobs.
B.
mining and resource extraction.
C.
agriculture.
service occupations.
E.
manufacturing.
43.
Identify the correct statement regarding skilled knowledge workers.
A.
They do not have considerable autonomy to make decisions.
B.
They are most likely to experience a lack of opportunities in a slow economy.
C.
They are not easily replaced because they own the knowledge that the company requires
to produce its products.
They are not expected to be technically efficient and are only involved in direct
interactions with customers.
E.
They do not have a lot of job opportunities because employers can simply order these
employees to perform tasks.
44.
Oliver works at Tate Corp., an apparel manufacturing company. He primarily focuses on the
tastes and needs of the firm’s customers. He achieves this by managing a team that regularly
interacts with customers through various promotional activities and events. He also provides
insights on how to produce eco-friendly outfits through cost-efficient manufacturing
processes. This implies that Oliver:
A.
is an HR professional.
B.
encourages centralized decision making.
C.
is a knowledge worker.
encourages a narrow business focus.
belongs to the external labor market.
C.
She bases her work on the terms of a psychological contract.
D.
She is an on-call worker.
She is a knowledge worker.