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1. The use of new technologies by an organization for manufacturing, communication, and human resource management
reduces the organization’s need for knowledge workers.
a. True
b. False
2. The global perspective on human resource management (HRM) includes the need to understand domestic similarities
and differences in managing human resources in different countries.
a. True
b. False
3. Scientists and lawyers are usually considered knowledge workers.
a. True
b. False
4. Outsourcing has resulted in an increase in the size of human resource (HR) departments within companies.
a. True
b. False
5. Organizations fulfill the human resource management goal of complying with legal and social obligations by designing
jobs that are challenging and provide personal satisfaction to employees.
a. True
b. False
6. Contemporary human resource (HR) managers are increasingly regarded as second-class corporate citizens.
a. True
b. False
7. In the context of the human resource (HR) movement, Elton Mayo developed the Theory X and Theory Y framework.
a. True
b. False
8. The passage of the Taft-Hartley Act made it clear that organizations had to find ways to hire, reward, and manage
people effectively within the limits of the law.
a. True
b. False
9. Computer monitoring allows organizations to collect real-time performance data from employees on various jobs.
a. True
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b. False
10. Scientific management helped augment the concept of assembly-line production.
a. True
b. False
11. Which of the following is a benefit of outsourcing?
a. It eliminates jobs that tend to be repetitious.
b. It reduces a firm’s risk of facing intellectual property theft.
c. It makes employees self-reliant.
d. It helps a firm meet its expansion needs.
12. Which of the following statements is true of contemporary human resource management (HRM) perspectives?
a. HRM policies are aimed at promoting ethnocentrism in the workplace.
b. Human resource managers are second-class corporate citizens.
c. Strategic decisions made in an organization do not significantly affect its human resources.
d. HRM practices significantly affect management’s ability to formulate and implement strategy in any area.
13. Which of the following departments of an organization was usually thought of as a staff function?
a. The legal department
b. The operations department
c. The finance department
d. The marketing department
14. Wrapp Kitchen Inc., a restaurant chain, wants to increase worker productivity and efficiency. To achieve this, the
management of the restaurant restructures the kitchen space and the jobs of waiters and chefs to maximize output and
service delivery. The aim is to focus each and every employee activity toward maximizing productivity. This scenario
illustrates the concept of _____.
a. personnel management
b. outsourcing
c. licensing
d. scientific management
15. Which of the following statements is true of contemporary human resource (HR) managers?
a. They are concerned exclusively with hiring first-line employees such as blue-collar workers and unskilled labor.
b. They are responsible for promoting ethnocentrism in the workplace.
c. They possess general management abilities that reflect conceptual, diagnostic, and analytical skills.
d. They are regarded as second-class corporate citizens.
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16. Which of the following should an organization do to achieve the human resource management goal of facilitating
organizational competitiveness?
a. Organizational objectives should be formulated in a way that they deal with revenue growth and profitability.
b. Human resource practices should focus on promoting ethnocentrism in the workplace.
c. Organizations should match employee contributions to local charities.
d. Incentive and reward systems should be structured in such a way that they help maintain employee motivation.
17. Which of the following statements is true of the human resource (HR) department of large organizations?
a. Relatively little HR training is provided in large organizations.
b. Line managers are required to handle basic HR functions in large organizations.
c. The general manager handles the HR duties in large organizations.
d. HR functions are likely to have specialized subunits in large organizations.
18. Undertaking initiatives that help an organization assume an enhanced citizenship role aligns with the human resource
management goal of:
a. complying with legal and social obligations.
b. facilitating organizational effectiveness.
c. enhancing productivity and quality.
d. promoting individual growth and development.
19. The _____ offers three core certifications: Professional in Human Resources (PHR), Senior Professional in Human
Resources (SPHR), and Global Professional in Human Resources (GPHR).
a. American Human Resources Certification Association
b. Human Resource Certification Institute
c. National Academy of Human Resources
d. Institute of Human Resource Capital Consultancy
20. Which of the following is a necessary prerequisite for success in human resource management?
a. A solid educational background
b. A membership in the Society for Human Resource Management
c. Theory X management style
d. An ethnocentric attitude
21. Who among the following is most likely to handle human resource (HR) duties in a small, independent business?
a. The human resource manager
b. The general manager
c. The marketing manager
d. The administrative assistant
22. Xbuzz, a gadget manufacturer, has developed a new PlayStation that enables users to talk to the characters in video
games. When the company files a patent for it, it discovers that the product has already been wrongfully patented by a
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competing firm. The company hires a lawyer to get his expert advice on the situation and to find a way to gain rights over
the product. In the given scenario, Xbuzz has hired a(n) _____.
a. blue-collar worker
b. knowledge worker
c. ancillary worker
d. free rider
23. TechUp Inc., a computer manufacturing firm, hires an external specialist agency to perform background checks on its
new employees. By doing this, TechUp Inc. ensures quality service and saves both time and labor costs. In the given
scenario, TechUp Inc. is using _____.
a. crowdsourcing
b. foreign direct investment
c. importing
d. outsourcing
24. Which of the following statements is true of human resource management in modern organizations?
a. It is exclusively concerned with structuring jobs to maximize efficiency.
b. It is responsible for promoting ethnocentrism in the workplace.
c. Modern organizations outsource all human resource functions.
d. Line managers often make decisions about pay raises and promotions.
25. The human resource department (HR) of an investment firm monitors all organizational activities to ensure that they
adhere to existing regulations and standards. It also examines employee complaints and is responsible for their timely
resolution. In the given scenario, which of the following goals of human resource management is fulfilled by the activities
of the HR department?
a. Enhancing employee skills
b. Complying with legal and social obligations
c. Creating an ethnocentric work environment
d. Enhancing product quality
26. Fulfilling the psychological contract between employers and employees aligns with the human resource management
goal of _____.
a. adhering to legal business guidelines
b. creating an ethnocentric work environment
c. promoting individual growth and development
d. complying with social obligations
27. The _____ is the human resource management field’s largest professional HR organization.
a. Human Resources Professionals Association
b. Institute of Human Resource Capital Consultancy
c. Human Resources Management Association
d. Society for Human Resource Management
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28. _____ prohibits discrimination on the basis of an individual’s race, color, religious beliefs, sex, or national origin.
a. Title VII of the Civil Rights Act of 1964
b. Section 5 of the Worker Adjustment and Retraining Notification Act of 1988
c. The Labor Management Relations Act of 1947
d. The Taft-Hartley Act of 1947
29. A _____ is the overall set of expectations held by an employee with regard to what he or she will contribute to the
organization and held by the organization with regard to what it will provide to the individual in return.
a. value proposition
b. cost-benefit analysis
c. mission statement
d. psychological contract
30. To achieve the human resource management goal of promoting individual growth and development, organizations
should:
a. provide pro bono services.
b. support volunteer activities by matching employee contributions to local charities.
c. provide stress-management programs to help their employees cope with anxiety.
d. promote ethnocentrism in the workplace.
31. Wags is a chain of veterinary clinics. As a growing organization, the management of Wags recognizes the need to
coordinate various human resource management (HRM) activities. It feels that all staffing activities should be directed at
identifying and attracting skilled workers and that appraisals, compensation, and performance management should reflect
an employee’s nature. Which of the following approaches to HRM explains the management’s recognition of the need to
coordinate HRM activities?
a. The systems approach
b. The scientific management approach
c. The open-book management approach
d. The functional approach
32. The _____ revealed that individual and group behavior played an important role in organizations and that human
behavior at work was something managers really needed to understand more fully.
a. Hawthorne studies
b. scientific management approach
c. systems approach to management
d. Industrial Revolution
33. The management of Gilbert Inc., an automobile parts manufacturer, has created a separate department to deal with the
company’s increasing hiring needs. The department hires skilled employees and ensures that all organizational activities
are in compliance with government regulations. In the given scenario, the new department created by Gilbert Inc. is
concerned with _____.
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a. operations management
b. finance management
c. personnel management
d. scientific management
34. The material resources of an organization include:
a. the people employed to work for the organization.
b. the sources of information of the organization.
c. ownership investments, sales revenue, and bank loans.
d. factories, equipment, raw materials, computers, and offices.
35. The human resource department (HR) of Asterix, a large organization, recommends setting up fitness centers and
conducting career planning sessions to enhance the overall progress of its employees. The management of the company
believes that the employees should be happy and personally fulfilled on the job. In the given scenario, the
recommendation of the HR department, if executed, will most likely help Asterix achieve the human resource
management goal of _____.
a. adhering to legal business guidelines
b. complying with social obligations
c. promoting ethnocentric practices in the workplace
d. promoting individual growth and development
36. The _____ recognizes that if an organization needs highly skilled, knowledgeable workers to carry out its strategy,
then all staffing activities must be coordinated toward identifying and attracting such employees.
a. hard approach to human resource management
b. open-book management approach
c. scientific management approach
d. systems-oriented view of human resource management
37. Which of the following statements is true of traditional line managers?
a. They are responsible for a support functions.
b. They make indirect bottom-line contributions to the organization.
c. They include human resource managers.
d. They are directly responsible for creating goods and services.
38. Employees who contribute to the organization by the nature of what they know and how well they can apply what they
know are known as _____.
a. ancillary workers
b. free riders
c. blue-collar workers
d. knowledge workers
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39. Varo Inc., a pharmaceutical company, plans to develop a drug that would treat the diseases caused by a new strain of
virus. In order to assist the in-house doctors in developing the drug, the company hires a scientist who has previously done
research on the virus. The company intends to use the scientist’s expertise on the subject to create a useful drug. In the
given scenario, Varo Inc. has hired a(n) _____.
a. blue-collar worker
b. knowledge worker
c. ancillary worker
d. free rider
40. Which of the following statements is true of the human resource (HR) department of small organizations?
a. The HR department of small firms has specialized subunits.
b. A separate HR unit is a necessity in small firms.
c. HR issues are relatively straightforward in small firms.
d. Small firms never subcontract their basic administrative activities.
41. Which of the following bodies created the Human Resource Certification Institute (HRCI)?
a. The Human Resources Professionals Association
b. The Institute of Human Resource Capital Consultancy
c. The Society for Human Resource Management
d. The National Academy of Human Resources
42. The management of Finitos, a stationery manufacturer, has decided to reduce costs to increase the profits of the
company. In order to reduce costs, it cuts down its human resource staff and hires an external agency to manage basic
human resource functions such as payroll and benefits. Which of the following concepts does this scenario illustrate?
a. Crowdsourcing
b. Outsourcing
c. Foreign direct investment
d. Importing
43. Which of the following is most likely to happen as a small firm grows into a large business?
a. A separate human resource unit becomes a necessity.
b. A standard approach to deal with most human resource problems is designed.
c. The owner or general manager of the firm starts handing human resource duties.
d. The firm becomes exempt from many legal regulations.
44. Futurics is a consulting services provider. The management of the firm regularly introduces various reward programs
to maintain motivation and effort among the employees. This ensures that the employees are motivated to provide
premium services to the firm’s clients. In the given scenario, which of the following goals of human resource management
is fulfilled by the aforementioned activities of the management?
a. Adhering to legal business guidelines
b. Enhancing productivity and quality
c. Creating an ethnocentric work environment
d. Complying with social obligations
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45. Douglas McGregor’s Theory X and Theory Y framework grew from _____.
a. the Industrial Revolution
b. scientific management
c. the human relations movement
d. operations management
46. Zander, an online shopping website, has hired hundreds of workers to handle the orders that the website receives. As
the organization grows, the management recognizes the need to maximize the productivity and efficiency of its workers.
To achieve this, the workers’ jobs are studied carefully, and their jobs are structured to help them work faster. The given
scenario illustrates the use of _____.
a. personnel management
b. scientific management
c. licensing
d. outsourcing
47. In order to better manage its human resources, the management of Bart, a pharmaceutical and drug store, decides to
create a separate department that would be responsible for hiring skilled employees, performing bookkeeping functions,
and managing behavioral issues. The given scenario illustrates the concept of _____.
a. personnel management
b. scientific management
c. outsourcing
d. licensing
48. Rockslide Inc., a sports equipment manufacturing firm, hires an external agency to manage its payroll and insurance
functions. It does this to ensure specialist service and more efficient operations. In the given scenario, Rockslide Inc. is
using _____.
a. crowdsourcing
b. foreign direct investment
c. outsourcing
d. importing
49. Which of the following supplanted scientific management as the dominant approach to management during the 1930s?
a. The open-book management approach
b. The personnel management approach
c. The human relations era
d. The systems-oriented view to human resource management
50. Which of the following statements is true of contemporary human resource management?
a. It has grown into a source of competitive advantage.
b. It does little beyond ensuring compliance with labor regulations.
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c. It is responsible for promoting ethnocentrism in the workplace.
d. It does not impact the formulation and implementation of other strategies in the organization.
51. _____ refers to treating social outcomes and financial outcomes as complementary, rather than competing outcomes.
a. Personnel management
b. Shareholder primacy
c. Corporate governance
d. Conscious capitalism
52. Which of the following statements was true of scientific management in the twentieth century?
a. It was concerned exclusively with hiring first-line employees.
b. It helped augment the concepts of division of labor and economies of scale.
c. It was based on the belief that employees would work harder if they were happy.
d. It focused on maximizing job satisfaction and quality rather than efficiency and productivity.
53. Which of the following statements is true of the Civil Rights Act of 1964?
a. It outlawed labor unions in the Unites States.
b. It made the processes of hiring and promoting employees within the organization far more complex.
c. It promoted ethnocentrism in the workplace.
d. It required that organizations provide a 60-day notice before terminating employees or closing a factory.
54. The management of Crimson, a growing organic cosmetic brand, has entrusted its human resource department with
the responsibility of organizing charity events and fundraiser programs to create awareness about various issues related to
women and children. The management also supports volunteer activities by matching employee contributions to local
charities. In the given scenario, which of the following goals of human resource management is fulfilled through these
activities?
a. Complying with legal and social obligations
b. Promoting individual growth and development
c. Facilitating organizational competitiveness
d. Enhancing productivity and quality
55. Abigail, a human resource executive in a company, coordinates with the management to plan and implement a wide
range of employee engagement activities for improving the mental and physical health of the employees. These activities
include personality enhancement sessions, career development lectures, and annual office trips. She also works with the
management to provide employees with a platform where they can share their innovative ideas. In this scenario, Abigail’s
initiatives fulfill the human resource management goal of:
a. complying with social obligations.
b. promoting individual growth and development.
c. adhering to legal business guidelines.
d. creating an ethnocentric work environment.
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56. Which of the following was true of human resource (HR) managers in the 1980s and 1990s when firms sought
mergers and acquisitions in order to compete effectively in the global marketplace?
a. They helped create strategies that promoted ethnocentrism in the workplace.
b. They helped identify the critical human resources that firms would need in the future.
c. They developed strategies that ensured that any knowledge acquired was kept confidential among top executives.
d. They were involved solely in scheduling working hours and disciplining problem employees.
57. The basic premise of the human relations era was that:
a. employees have to be intimidated to be motivated.
b. individuals work best in an ethnocentric environment.
c. satisfied employees work harder and are more productive.
d. union activities are harmful for an organization.
58. Which of the following activities aligns with the human resource management goal of enhancing productivity and
quality?
a. Promoting ethnocentric practices in the workplace
b. Establishing charitable foundations to deal with societal problems
c. Using new and different types of rewards to help maintain employee motivation
d. Undertaking corporate social responsibility initiatives
59. _____ is an economic measure of efficiency that summarizes and reflects the value of the outputs created by an
individual, organization, industry, or economic system relative to the value of the inputs used to create them.
a. Quality
b. Productivity
c. Reliability
d. Sustainability
60. The human resource department (HR) of Woodworkers, a furniture manufacturing firm, takes the time and effort to
identify and attract the right type of skilled employees required to manufacture premium furniture. It also trains the
employees extensively so that they gain job-related knowledge. Moreover, it has established monthly reward systems so
that the employees feel appreciated for their hard work. In this scenario, the activities undertaken by the HR department of
Woodworkers align with the human resource management goal of _____.
a. adhering to legal business guidelines
b. complying with social obligations
c. creating an ethnocentric work environment
d. enhancing productivity and quality
61. Briefly explain the human resource management goal of complying with legal and social obligations.
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62. How do people become human resource (HR) managers?
63. Briefly explain the scientific management approach and the human relations era.
64. Explain how human resource management operations are carried out in small organizations.
65. What is the Society for Human Resource Management? What are the certifications offered by the Human Resource
Certification Institute?
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