1. Define human resources management (HRM), and discuss the overall activities involved in each of its three main
phases.
2. How does a replacement chart differ from a skills inventory? What is the purpose of each?
3. There are at least four methods for reducing the number of employees when sales demand is really down. Name
each and define the term.
4. What is cultural diversity, and why is it an important issue?
5. Discuss the challenges and advantages of a culturally diverse workforce.
6. To learn the exact nature of a job, we may use job analysis, a job description, and a job specification. For what
purpose is each used?
7. What are the advantages and disadvantages of internal recruiting?
8. Why does the selection process focus not on choosing the applicant with the most qualifications but on choosing the
applicant with the most appropriate qualifications for the job?
9. What is a new employee orientation? What subjects might reasonably be covered for a new clerical employee?
10. What is the job evaluation process in terms of the wage structure decision?
11. Define the concept of comparable worth. What do critics say about comparable worth?
12. Is employee performance feedback important in the appraisal process? Support your view.
13. In what ways can disabled persons benefit from the provisions of the Americans with Disabilities Act?
14. Discuss the effect of Title VII of the Civil Rights Act of 1964 on employment opportunities for minorities. Are the
effects similar to those of the Age Discrimination and Employment Act?
15. Refer to HR Solutions, Inc. When HRSI helps small companies with the development phase of human resource
management, it is involved with which of the following activities?
a. Profit-sharing
b. Training
c. Downsizing
d. Determining health benefits
e. Attrition
16. Refer to HR Solutions, Inc. HRSI hopes that all companies can downsize simply by attrition, a word that, in this
context, refers to
a. increasing quality.
b. being dismissed from the workforce.
c. people leaving the company.
d. retiring early because employees are within a few years of retirement anyway.
e. an increasing amount of work per employee.
17. Refer to HR Solutions, Inc. Since HRSI puts a great deal of emphasis on cultural diversity, it needs to inform its
clients about its advantages. These include all of the following except
a. profit–sharing.
b. cost.
c. flexibility.
d. creativity.
e. problem solving.
18. Refer to HR Solutions, Inc. When HRSI is going through the selection process, which of the following activities
would it include?
a. Job analysis
b. Recruiting
c. Compensation
d. Checking references
e. Orientation
19. Refer to HR Solutions, Inc. Maintaining human resources involves which of the following?
a. Selection
b. Recruiting
c. Compensation
d. Job analysis
e. Checking references
Jefferson, Inc. (JI)
Jefferson Inc. (JI) is a relatively new company that wants to improve its employee rewards, compensation, and
benefits. The company understands that there are effective reward systems that will motivate employees.
However, JI management is not sure which would be the best for the company. Compensation, another important
area, must also be improved so that it will satisfy all employees effectively. In addition, the company wants to
create benefits to keep the employees not just satisfied, but also motivated. Yet another pressing issue is deciding
on the training methods that are to be used to successfully teach the new employees.
JI believes that it will be on the right path if all of these changes can be successfully accomplished. The company
plans to incorporate performance appraisals so it can be sure that the rewards, compensation, and benefits are
effectively distributed.
20. Refer to Jefferson, Inc. JI management needs to know that effective reward systems must do which of the
following?
a. Distinguish the best from the rest
b. Enable employees to satisfy basic needs
c. Provide noncomparable rewards to those offered by other firms so JI can be differentiated
d. Distribute to the top performers only in the organization
e. Recognize that all people have the same needs, which can be satisfied with more money
21. Refer to Jefferson, Inc. If JI management discovers that its female employees generally make less than its male
employees, it may want to study the of positions occupied by men and women.
a. job analysis
b. monthly salary
c. comparable worth
d. incentive payments
e. hourly wages
22. Refer to Jefferson, Inc. JI management must consider implementing the many different types of benefits. These
include all of the following except
a. insurance packages.
b. pension and retirement programs.
c. workers’ compensation insurance.
d. Social Security.
e. profit–sharing.
23. Refer to Jefferson, Inc. The training of new employees at JI can be carried out through
a. appraisal errors.
b. judgmental methods.
c. turnovers.
d. seminars.
e. rating scales.
24. Refer to Jefferson, Inc. When JI management considers performance appraisal, various techniques and methods
are either objective or in nature.
a. measurable
b. marginal
c. judgmental
d. goal-oriented
e. personal
25. Chevron Corporation is one of the largest integrated oil companies in the world. Its management is assessing the
world marketplace and taking steps to sustain the company’s competitive position. Chevron is studying external and
internal factors that could influence its success. Faced with business competition on a global scale, Chevron is
modifying its strategic business model to manage its resources more efficiently. At Chevron, as at competing
companies, one of the most important resources is
a. financial resources.
b. human resources.
c. natural resources.
d. lobbyists.
e. computers.
26. Another name for human resources management is management.
a. personnel
b. corporate
c. administrative
d. operations
e. marketing
27. John works for Texas Instruments. His tasks involve traveling to nearby colleges, interviewing students for hire
after graduation, selecting certain ones to be invited for an office visit, and acquainting them with the facilities. He
is in which phase of the HRM process?
a. Maintaining a certain level of human resources
b. Developing and training human resources
c. Human resources planning
d. Orientation and employee relations
e. Acquiring human resources
28. Periodically, employees at Southwest Airlines complete satisfaction surveys that management uses to improve
employee job satisfaction. This is an example of
a. job analysis.
b. employee relations.
c. human resources planning.
d. performance appraisal.
e. employee communication programs.
29. Activities that increase employee satisfaction such as satisfaction surveys, employee communication programs, exit
interviews, and fair treatment are all part of which phase of the human resources management process?
a. Benefits and compensation
b. Job analysis
c. Developing human resources
d. Maintaining human resources
e. Acquiring human resources
30. The development phase of human resources management consists of two important activities: (1) training and
development (2) and
a. job analysis.
b. recruiting.
c. motivating.
d. appraising performance.
e. orientation.
31. Chevron’s 60,000 employees work for thirteen major operating companies in fifty eight countries. Each national unit
does business according to the needs of its market. Effective management of human resources in such a complex
environment is an awesome task, and the key to success is reliable, accurate management information. Thus,
Chevron developed an online human resources information system, which is a critical tool in managing its human
resources. As expected, one of the broad goals of the human resources information system is to help management
a. prepare specific job or position descriptions.
b. write a job specification for the computer programmer.
c. develop a replacement chart.
d. send greetings to employees on their birthdays.
e. utilize human resources efficiently to meet organizational goals.
32. Generally, human resources management is a responsibility shared by line managers and
a. top management.
b. unions.
c. foremen.
d. HRM specialists.
e. vestibule centers.
33. At a large book publishing company like Cengage, we would expect human resources management to be handled
by . At a small local print shop, human resources management would probably be .
a. a vice president; completely ignored
b. the owner; handled at the vice-presidential level
c. a specialist; assigned to the vice president for personnel management
d. a departmental secretary; completely ignored
e. the personnel manager; the responsibility of the owner
34. Employee compensation systems are generally developed and administered by , and pay increases and
promotions are usually recommended by .
a. top management; HRM specialists
b. unions; line managers
c. HRM specialists; line managers
d. top management; unions
e. professional HR consultants; HRM staff personnel
35. Information on evolving technologies, industry staffing practices, projected economic trends, the particular
company‘s future business ventures, new products, and projected expansions or contractions of certain product lines
can be helpful in predicting
a. human resources supply.
b. the level of industry unemployment.
c. human resources demand.
d. the quality of new applicants in the job market.
e. trends in the global market with regard to new skills.
36. If the Colgate-Palmolive Company were to develop a replacement chart, the chart would show
a. key personnel along with possible replacements within the firm.
b. those key personnel who are scheduled to be replaced because of poor performance reviews.
c. the skills and experience of key personnel.
d. the time between purchase and replacement of each Colgate product, such as toothpaste.
e. the key items of capital equipment due for replacement within the fiscal year.
37. A computerized data bank containing information on the skills and experience of all employees is called
a. a replacement chart.
b. a skills inventory.
c. a compensation survey.
d. management development.
e. a human resources inventory.
38. The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data
analysis by using their microcomputer along with a commercial database management system (DBMS) to develop
a . Now the company can readily identify specific organizational skills, eliminating the need to comb personnel
files manually.
a. compensation survey
b. management development program
c. skills inventory
d. human resources inventory
e. replacement chart
39. A list of key personnel as well as possible successors within a firm is called
a. a replacement chart.
b. a skills inventory.
c. management inventory.
d. a wage survey.
e. performance appraisal.
40. Two useful tools for estimating the supply of needed human resources are the
a. recruiting chart and skills inventory.
b. employee survey and skills chart.
c. performance appraisal and replacement chart.
d. replacement chart and skills inventory.
e. skills inventory and attrition graph.
41. Leading Lady, a manufacturer of maternity wear, maintains a database of information that records the various skills
and abilities of its employees. This database can be referred to as a
a. replacement record.
b. skill appraisal system.
c. skills inventory.
d. skills database.
e. replacement chart.
42. South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all
state agencies. The state decides to stop hiring new employees to fill vacated positions to comply with budgetary
constraints. This approach is called
a. attrition.
b. natural turnover.
c. layoffs.
d. passive firing.
e. downsizing.
43. When sales drop each summer at Vail Mountain Resorts, a high-quality destination ski area, the resort owners
temporarily have too many employees to service the reduced number of tourists that enjoy the area during the
warmer months. In this situation, the resorts most likely would
a. hire more workers.
b. lay off workers.
c. fire as many workers as possible.
d. allow production workers to relax more on the production line.
e. force all of the extra workers to seek early retirement.
44. A firm attempting to reduce the size of its workforce may use several approaches. The approach most likely to be
saved as a last resort is
a. attrition.
b. early retirement.
c. firing.
d. hiring freeze.
e. layoff.