43) In what way does teamwork make work more significant?
A) It centralizes authority so workers do not have to make decisions.
B) Team members have less authority, so they can relax.
C) Teams get to work on fast-moving assembly lines.
D) Team members contribute to quality and assume many activities traditionally reserved for
managers.
E) Teams spare employees from having to work directly with customers.
44) Brady works at a machine production facility assembling small parts in a specialized
division. In addition to his regular job duties, Brady works in tandem with his other coworkers to
schedule work, select new team members, and carry out multiple assembly tasks. This style of
work is best described as
A) centralized.
B) a virtual team.
C) teamwork.
D) agile development.
E) knowledge work.
45) Lennon, the branch manager of a local bank, wants to initiate a teamwork system because he
believes it will improve the performance of the branch. Which statement provides valid support
for Lennon’s idea?
A) Teamwork encourages centralized decision making, which will lower costs.
B) Teamwork eliminates the need for quality control.
C) Teamwork makes work motivating for employees and helps reduce labor costs.
D) Teamwork simplifies each job to a few tasks, reducing errors.
E) Teamwork reduces errors because team members must communicate face-to-face.
46) Hutch Inc., a software company, uses an approach in which software developers and
programmers interact directly with customers. The team asks the customers for their
requirements, develops a sample, and sends it to them for feedback. The team continues
production based on the feedback given by their clients. The firm spends less time on negotiating
contracts and documenting processes. This scenario implies that Hutch is using which approach?
A) just-in-time
B) total quality management
C) agile
D) downsizing
E) outsourcing
47) The specific ways in which human resource professionals support an organization’s strategy
vary according to
A) their level of involvement and the nature of the strategy.
B) the location of the organization’s corporate headquarters.
C) the government regulations of the countries in which the organization does business.
D) the mastery of a particular piece of machinery among the employees of the organization.
E) the organization’s market share in the industry.
48) What occurs when two companies join forces and become one entity?
A) an acquisition
B) a merger
C) a takeover
D) a joint venture
E) a strategic alliance
49) Miller Inc. is a large corporation preparing to acquire GrowIt, a start-up business. Miller has
many policies and procedures based on years of experience. Employees at GrowIt are used to
figuring out the best practices as they go along. How can Miller’s HR professionals help the
company prepare for the acquisition to succeed in spite of these differences?
A) by replacing GrowIt’s employees with new employees who will follow rules
B) by reassuring everyone that any differences will disappear after the acquisition
C) by identifying the differences and developing employees’ skills in conflict resolution
D) by planning systems to ensure there are no conflicts following the acquisition
E) by training employees in how to set up new HR systems
50) Which of the following reflects a core value of total quality management?
A) providing quality training to specific employees
B) detecting errors and correcting them as they appear in an error-prone product or service
C) developing generalized methods and processes that focus only on meeting the needs of
external customers
D) encouraging cooperation with vendors, suppliers, and customers to improve quality
E) measuring an employee’s progress based on how productive the employee appears
51) Filerton Inc. produces large quantities of products for their customers within tight deadlines.
Recently, customers have been returning their products to Filerton, citing errors and defects in
the items they have received. Which total quality management core value does Filerton need to
employ to correct this issue?
A) Filerton needs to promote cooperation with vendors, suppliers, and customers.
B) Filerton managers need to measure progress.
C) Filerton needs to ensure quality is designed into their products so errors are prevented from
occurring.
D) Filerton needs to hold down costs.
E) Filerton needs to employ methods to meet the needs of internal customers.
52) Phineas Corp. has made a name for itself by following long-standing methods to
manufacture wooden furniture. Recently, competitors using more modern technology have
appeared in the furniture market, and Phineas has found its business suffering as a result. Using a
TQM approach, what might help Phineas Corp. improve?
A) Phineas should firmly resist engaging in any risk taking, instead continuing to follow its
traditional methods and processes.
B) Phineas management should not involve subordinates when looking to solve the corporation’s
problems.
C) Phineas should create an atmosphere that promotes innovation.
D) Phineas should ignore its customer needs and requests.
E) Phineas should provide quality training only to those in top management.
53) According to the core values of total quality management,
A) the progress of employees should be measured through self-evaluation.
B) external customers should not be given any importance while developing any process.
C) only key personnel should receive training in quality.
D) errors in a product or service should be prevented before occurrence.
E) internal customers should be valued more than external customers.
54) A chemical company buying a medical equipment manufacturing company is an example of
A) an acquisition.
B) a partnership.
C) a consolidation.
D) a joint venture.
E) a strategic alliance.
55) Clark Corp., an automobile manufacturer, purchases Forward Inc., a company that produces
auto parts and accessories. This scenario exemplifies
A) consolidation.
B) a partnership.
C) an acquisition.
D) a joint venture.
E) a strategic alliance.
56) Tasty Treats, a cookie manufacturer, combines with Minty Goodies, a chocolate
manufacturer, to form a company called Yummy, Inc. This scenario illustrates a(n)
A) consolidation.
B) partnership.
C) acquisition.
D) merger.
E) strategic alliance.
57) Connor Cell, a large-scale cell phone manufacturer, buys Minnow Inc., a small cell phone
manufacturer, to secure a greater share of the cell phone industry. This scenario exemplifies
A) a consolidation.
B) a partnership.
C) downsizing.
D) a merger.
E) a strategic alliance.
58) If two firms in one industry join to hold a greater share of the industry, it will be referred to
as
A) a consolidation.
B) a takeover.
C) an acquisition.
D) a conglomerate.
E) assimilation.
59) Vinzo Pharmaceuticals and Aurora Medicines combined their businesses to create a new
company, Aurora Pharmaceuticals Inc. This is an example of a(n)
A) acquisition.
B) takeover.
C) partnership.
D) strategic alliance.
E) merger.
60) What is a challenge for human resource management during mergers?
A) scrutinizing balance sheets
B) evaluating the financial worth of the new company
C) developing competitively priced products
D) developing conflict resolution skills
E) sustaining the brand image of the company
61) The HRM function during downsizing is to terminate the workers who
A) are performing multiple organizational roles.
B) are less valuable in their performance.
C) are a part of the external labor force.
D) are older than the other employees.
E) are being paid the highest salaries.
62) During downsizing, the HRM function must “surgically” reduce the workforce by cutting
only the workers who are less valuable in their performance. What is a reason for this being
difficult to achieve?
A) The definition of “less valuable” is fluid and hard to define.
B) Downsizing companies tend to have a strong, interconnected hierarchy.
C) The best workers may leave before the organization lays off anyone.
D) Voluntary turnover is encouraged for all levels of employees.
E) Decision making has become decentralized, leaving no department with the power to reduce
the workforce.
63) A downsizing strategy at City Corp. has resulted in negative stock returns and lower
profitability following the layoffs. Which statement best explains the reason for these negative
results at City Corp.?
A) Downsizing tends to eliminate good performers instead of poor performers first.
B) Downsizing demands the HR department have a third-party vendor provide services, which
results in lower revenues.
C) Downsizing conducts a complete review of the organization’s critical work processes, which
results in heavy expenditures.
D) The HRM of a firm must provide downsized employees with multiple stock options.
E) When labor costs fall after a downsizing, sales per employee also tend to fall.
64) What is true of early retirement programs that are used as a method of downsizing?
A) They are the most effective.
B) They are linked to greater employee suffering and distress.
C) They offer a better alternative to the “grenade” approach.
D) They help in distinguishing between good and poor performers.
E) They are humane.
65) Which statement is true about downsizing?
A) HRM cannot, and should not, inform all employees why downsizing is necessary.
B) HRM should withhold information regarding downsizing rather than maintain open
communication with remaining employees.
C) Downsizing is associated with positive stock returns.
D) Downsizing results in higher profitability following layoffs.
E) HRM can provide downsized employees with outplacement services to help them find new
jobs.
66) When an organization undertakes a complete review of its critical work processes to make
them more efficient in an effort to deliver higher quality, it is engaging in
A) outsourcing.
B) offshoring.
C) reengineering.
D) greenfield venturing.
E) codetermining.
67) Which observation about reengineering is true?
A) It is primarily concerned with production processes.
B) Critical processes are not altered during this process.
C) Rapidly changing customer needs and technologies necessitate reengineering.
D) It has no impact on human resource practices and systems.
E) Retaining the current work processes with minimal change requires reengineering.
68) Mable Textiles, a garment manufacturing company, implements a new technology to
improve the speed of its production process. To do this effectively, the company decides to train
its employees on how to use this new process. The company also implements new quality checks
and efficiency measures, reducing the costs of production while delivering better quality
products. This process of making changes to vital company technology to make it more efficient
is known as
A) outsourcing.
B) codetermining.
C) downsizing.
D) hedging.
E) reengineering.
69) Fuller Corporation recently undertook a reengineering strategy to increase the efficiency of
its processes. According to your text, will reengineering have any effect on Fuller’s HR
department?
A) No; the HR department will continue to accomplish its goals as it always has.
B) Yes; the structure of pay and benefits will have to be redesigned.
C) Yes; employees will require training, but only those in the top managerial positions.
D) Yes; new employees with the same skill sets as current workers will need to be hired.
E) No; employee levels will stay the same, with none being hired or laid off.
70) As part of a company-wide business strategy, Smith Inc. conducts a comprehensive
examination of its critical work techniques to increase their efficiency. The results of the
examination are used to create a strategy to provide high-quality goods and services to the firm’s
customers. Which HRM practice is Smith Inc. using?
A) outsourcing
B) reengineering
C) downsizing
D) merger
E) acquisition
71) Fisher Inc., a cell phone manufacturer, has its assembly operations performed by Morton
Corp., a firm that deals exclusively in assembling products for other companies. This scenario
indicates that Fisher Inc. engages in the practice of
A) outsourcing.
B) reengineering.
C) downsizing.
D) benchmarking.
E) acquiring.
72) Xeon Inc., a maker of chocolate products, assigns its packaging and labeling to First Choice
U.S.A., a firm that specializes in packaging and labeling other companies’ products. Which HRM
practice is Xeon Inc. using in this scenario?
A) acquiring
B) reengineering
C) downsizing
D) benchmarking
E) outsourcing
73) The practice of having another company provide services is known as
A) benchmarking.
B) downsizing.
C) codetermining.
D) outsourcing.
E) reengineering.
74) At Your Service Inc. is a consumer goods company that provides the option of door-to-door
delivery. The company partners with a packaging company for transporting its goods to the
customers. This is an example of
A) cause marketing.
B) outsourcing.
C) reengineering.
D) disinvesting.
E) downsizing.
75) Companies are finding that to survive they must contend in international markets as well as
fend off foreign competitors’ attempts to gain ground in the United States. What would help
businesses in the United States meet these challenges?
A) They must focus on developing domestic markets rather than on developing global markets.
B) They must hire only from a domestic labor pool.
C) They must prepare employees for global assignments.
D) They must eliminate reshoring—reestablishing operations in North America.
E) They must reduce the workforce with a “grenade” approach—by eliminating an entire group
of employees.
76) What is the most common reason why U.S. organizations hire employees in foreign
countries?
A) lack of technology in the United States.
B) lack of demand for their products in the United States.
C) poor quality of labor in the United States.
D) governmental pressure
E) low cost of labor in foreign countries
77) EnTech Inc., an electronics manufacturer, is headquartered in Florida. The firm shifted its
operations from Florida to China due to lower labor costs and the availability of required skills in
China. This scenario indicates that EnTech engaged in the practice of
A) downsizing.
B) reengineering.
C) offshoring.
D) benchmarking.
E) acquiring.
78) Which statement best describes offshoring?
A) It is the practice of having another company provide services.
B) It refers to moving operations from the country where a company is headquartered to a
country where pay rates are lower but the necessary skills are available.
C) It is a method of staffing other than the traditional hiring of full-time employees.
D) It is a complete review of the organization’s critical work processes to make them more
efficient and able to deliver higher quality of products and services.
E) It refers to acquiring a new company in a distant location or another country in order to
acquire higher market share or growth.