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61) Today HR outsourcing can be done in different ways. Which of the following is one of those
ways?
A) discrete services outsourcing
B) project management outsourcing
C) external recruitment process outsourcing
D) parts supply outsourcing
62) A firm that outsources only benefits administration to a third party is most likely using
________.
A) discrete services
B) multiprocess services
C) business process outsourcing
D) single service outsourcing
63) Whirlpool Corporation has an agreement with IBM for the HR outsourcer to handle
Whirlpool's workforce administration, compensation, recruitment, training, and performance
reporting. This type of outsourcing is known as ________.
A) process control outsourcing
B) discrete services outsourcing
C) business process outsourcing
D) single task outsourcing
64) Which HR task is most likely to be outsourced?
A) training and development
B) benefits administration
C) payroll and compensation
D) recruitment
65) Which of the following takes routine, transaction-based activities that are dispersed
throughout the organization and consolidates them in one place?
A) outsourcing centers
B) shared service centers
C) consolidation centers
D) human resource centers
66) Shared service centers provide an alternative to HR ________ and can often provide the
same cost savings and customer service.
A) outsourcing
B) onboarding
C) broadbanding
D) downsizing
67) Which term refers to a company that leases employees to other businesses?
A) shared service center
B) human resource provider
C) external employer organization
D) professional employer organization
68) Which of the following is a TRUE statement about professional employer organizations?
A) PEOs have the right to hire and fire the client company's employees.
B) PEOs are less popular than in the past due to technology improvements.
C) PEOs run day-to-day operations for client companies.
D) PEOs lease employees from other businesses.
69) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The
firm employs 700 people and expects to hire more in the next few years. Currently, all of the
firm's HR tasks are handled internally by Shelby's HR department. However, top executives at
Shelby are considering the idea of outsourcing benefits administration. Which of the following
questions is LEAST relevant to the decision to outsource Shelby's benefits administration tasks?
A) What is the cost difference for Shelby between handling benefits internally and externally?
B) How much time is spent by Shelby's HR department handling benefits administration tasks?
C) Which Shelby HR professional should oversee benefits administration at the shared service
center?
D) How knowledgeable is Shelby's HR staff about benefits administration and federal health care
laws?
70) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The
firm employs 700 people and expects to hire more in the next few years. Currently, all of the
firm's HR tasks are handled internally by Shelby's HR department. However, top executives at
Shelby are considering the idea of outsourcing benefits administration. Which of the following
best supports the idea of outsourcing benefits administration?
A) Shelby employees enroll for health benefits through the firm's intranet.
B) Shelby's HR manager recently participated in a strategic planning session.
C) The benefits specialist at HR is knowledgeable about changing health care laws.
D) Benefits administration is highly time consuming for the Shelby HR department.
71) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The
firm employs 700 people and expects to hire more in the next few years. Currently, all of the
firm's HR tasks are handled internally by Shelby's HR department. However, top executives at
Shelby are considering the idea of outsourcing benefits administration. Which of the following
most likely undermines the idea of outsourcing benefits administration?
A) Employees use Shelby's intranet to self-manage their own benefits.
B) Staff managers at Shelby discuss benefits packages with new employees.
C) Shelby's HR manager regularly meets with the firm's insurance provider.
D) Shelby recently began offering employees a flexible spending plan for benefits.
72) Which term refers to individuals that are directly involved in accomplishing the primary
purpose of the organization?
A) HR managers
B) line managers
C) staff managers
D) sales managers
73) Why are line managers most likely performing more HR tasks today?
A) competition from PEOs
B) implementation of EEO laws
C) automation of HR processes
D) expansion of HR departments
74) A human resource management professional is an individual who normally acts in an
advisory or staff capacity by assisting other managers with HR issues.
75) In today's workplace, outsourcing is focused more on saving money than on improving
service quality and saving time.
76) Business process outsourcing involves transferring one element of a business process, such
as benefits administration, to a third party.
77) A shared service center (SSC), also known as a center of expertise, takes routine, transaction-
based activities dispersed throughout the organization and consolidates them in one place.
78) A professional employer organization (PEO) leases employees to other organizations.
79) Shared service centers typically handle tasks associated with benefits and pension
administration, payroll, and relocation assistance, but succession planning and global training
activities remain the responsibility of the firm's HR department.
80) Billings Manufacturing has made the decision to use a professional employer organization.
As a result, Billings will release its employees, who will then be hired by the PEO.
81) Individuals directly involved in accomplishing the primary purpose of the organization are
line managers.
82) What is a line manager and what role does a line manager play in HR? Why do you think
line managers are involved with HR now more than in the past?
83) A top-level manager who reports directly to a corporation's chief executive officer or to the
head of a major division is a(n) ________.
A) generalist
B) executive
C) specialist
D) manager
84) Which is the designation within the HR profession that may be an HR executive, manager, or
nonmanager who is typically concerned with only one of the six functional areas of HRM?
A) executive
B) generalist
C) manager
D) specialist
85) In recent years, HR professionals have increasingly been expected to ________.
A) serve as strategic partners
B) handle administrative tasks
C) implement federal guidelines
D) act as employee advocates
86) The duties of today's HR professionals are focused toward ________.
A) keeping track of government regulations
B) supporting day-to-day operational processes
C) solving strategic matters that are truly important to the company
D) solving transactional problems in the organization
87) The rapidly evolving world of HR will increasingly require HR professionals to ________.
A) focus exclusively on learning new trends in the HR profession
B) thoroughly understand all aspects of what the companies they work for do
C) focus their attention on compliance with government regulation
D) integrate their operations with the finance department operations
88) A useful way to better understand how HR serves as a strategic business partner is to think
about the use of the following for value creation: ________.
A) balance sheet
B) capital
C) outsourcing
D) professional employee organization
89) In today's workplace, HR is ________.
A) moving towards a narrower focus on personnel
B) focusing more on administrative tasks
C) focusing more on strategic planning
D) moving towards a wider focus on training
90) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at
Burton realize that human capital plays an essential role in the continued success of the firm, and
they want HR to participate in strategic planning. Which of the following questions is LEAST
relevant to determining whether HR currently plays a strategic role at Burton?
A) Is HR rated by Burton's customers?
B) Is HR present at Burton's restructuring discussions?
C) Does Burton's HR provide an annual report on its ROI?
D) Does HR utilize current technology in recruiting Burton employees?
91) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at
Burton realize that human capital plays an essential role in the continued success of the firm, and
they want HR to participate in strategic planning. Which of the following, if TRUE, best
supports the argument that HR should be more involved in strategic planning at Burton?
A) Burton plans to acquire another drug company within the next six months.
B) Burton recently settled a lawsuit related to charges of unfair hiring practices.
C) Burton primarily hires sales representatives who have medical backgrounds.
D) Burton experienced a small profit loss last quarter due to increased competition.
92) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at
Burton realize that human capital plays an essential role in the continued success of the firm, and
they want HR to participate in strategic planning. Which of the following, if TRUE, suggests that
HR is already involved in strategic planning at Burton?
A) HR representatives attend merger and acquisition discussions.
B) HR handles all compliance issues related to OSHA and the ADA.
C) HR regularly updates job analysis and job specification information.
D) HR representatives monitor employee training needs and interests.
93) Working as a strategic business partner requires a much deeper and broader understanding of
business issues.
94) Companies rely on capital to create value. These include human capital, financial capital, and
environmental capital.
95) Every company relies on different combinations of capital.
96) What is strategic planning? What role can HR professionals play in strategic planning?
97) Which of the following is NOT an environment factor?
A) competition
B) customers
C) mission
D) shareholders
98) Which term refers to potential employees located within a specific geographic area?
A) forecasted allocation
B) labor market
C) labor union
D) employee relations
99) Which of the following is the discipline of dealing with what is right and wrong?
A) corporate social responsibility
B) sociology
C) cultural norms
D) ethics
100) The implied obligation of managers, acting in their official capacities, to serve or protect
the interests of groups other than themselves is referred to as ________.
A) ethics
B) managerial values
C) political activism
D) corporate social responsibility
101) Which of the following is the discipline most closely related to corporate social
responsibility?
A) sociology
B) psychology
C) ethics
D) philosophy
102) Unions are treated as an environmental factor because they act as a ________ when dealing
with a firm.
A) supervisor
B) political party
C) third party
D) shareholder
