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Chapter 1—HR’s Role, Strategy, and Planning
MULTIPLE CHOICE
1. Which of the following statements is true of the functions of human resource management?
a.
It is a clerical operation in large companies concerned with payroll and employee records.
b.
It refers to a department which looks into the legal ramifications of policies and
procedures that affect only the employees in an organization.
c.
It is a function concerned with costs, planning, and the implications of various strategies
for organizations.
d.
It refers to a design of formal systems in an organization to manage human talent for
accomplishing organizational goals.
2. A useful way to measure the productivity of a workforce is:
a.
to determine the total cost of people required for each unit of output.
b.
to determine the total cost of people required for an output of 100 units.
c.
to determine the total cost of people required to complete a day’s worth of work.
d.
to determine the total cost of people required to complete a year’s worth of work.
3. _____, a method to increase employee productivity, involves eliminating layers of management and
changing reporting relationships, as well as cutting staff through downsizing, layoffs, and early
retirement buyout programs.
a.
Organizational restructuring
b.
Redesigning work
c.
Aligning human resource activity
d.
Outsourcing
4. _____, a method to increase employee productivity, involves having fewer employees who perform
multiple job tasks.
a.
Organizational restructuring
b.
Aligning HR activity
c.
Outsourcing
d.
Redesigning work
5. _____, a method to increase employee productivity, includes ensuring that staffing, training and
development, performance management, and compensation are not working to offset productivity.
a.
Outsourcing
b.
Redesigning work
c.
Aligning human resource activity
d.
Organizational restructuring
6. Which of the following is a part of the process of redesigning work?
a.
Reshaping jobs because of technology changes
b.
Revising organizational structures
c.
Training, developing, and evaluating employees
d.
Outsourcing operations internationally
7. Which of the following is a part of the process of aligning human resource activities?
a.
Changing workloads and combining jobs
b.
Revising organizational structure
c.
Using domestic vendors instead of employees
d.
Training, developing, and staffing
8. Which of the following is true of organizational culture?
a.
It increases the diversity of an organization.
b.
It decreases the diversity of an organization.
c.
It provides employees with rules for behavior.
d.
It does not take a very long time to evolve.
9. Which of the following is a part of the process of outsourcing analyses?
a.
Revising organizational structure
b.
Using vendors instead of employees
c.
Changing workloads and combining jobs
d.
Attracting and retaining employees
10. Which of the following is true of the administrative role of human resource departments?
a.
It involves managing most human resource activities in keeping with strategies and
operations that have been identified by management.
b.
It involves helping to define the strategy relative to human capital and its contribution to
organizational results.
c.
It involves identifying possible strategies to attract and retain talent with a focus on
organizational growth.
d.
It focuses on record keeping, including essential legal paperwork and policy
implementation.
11. Which of the following is true of the operational role of human resource departments?
a.
It involves focusing on clerical administration and recordkeeping, including essential legal
paperwork and policy implementation.
b.
It involves identifying possible strategies to attract and retain talent with a focus on
organizational growth.
c.
It involves managing most human resource activities in keeping with the strategies that
have been identified by management.
d.
It involves helping to define the strategy relative to human capital and its contribution to
organizational results.
12. Which of the following has traditionally been the dominant role for human resources?
a.
Operational role
b.
Employee advocate role
c.
Administrative role
d.
Strategic role
13. Sara, a human resource manager at Comp Inc., is moving from an administrative role in the human
resource department to an operational role. Which of the following best describes Sara’s change of
role?
a.
Moving from processing legal paperwork to serving as a “champion” of employee
concerns.
b.
Moving from processing legal paperwork to helping define the strategy to manage human
capital
c.
Moving from helping define the strategy to manage human capital to serving as a
“champion” of employee concerns
d.
Moving from helping define the strategy to manage human capital to processing legal
paperwork
14. Bob, a human resources executive at Axis Inc., is moving from an operational role in the human
resources department to a strategic role. Which of the following best describes Bob’s change of role?
a.
Moving from serving as a “champion” of employee concerns to helping define the strategy
to manage human capital
b.
Moving from helping define the strategy to manage human capital to processing legal
paperwork
c.
Moving from processing legal paperwork to serving as a “champion” of employee
concerns
d.
Moving from processing legal paperwork to helping define the strategy to manage human
capital
15. David, a human resources manager at RedWall Inc., is moving from an administrative role in the
human resource department to a strategic role. Which of the following best describes David’s change
of role?
a.
Moving from serving as a “champion” of employee concerns to processing legal
paperwork
b.
Moving from helping define the strategy to manage human capital to serving as a
“champion” of employee concerns
c.
Moving from processing legal paperwork to helping define the strategy to manage human
capital
d.
Moving from helping define the strategy to manage human capital to processing legal
paperwork
16. Mike, a human resources executive at Oyster Studios, is moving from an operational role in the human
resources department to an administrative role. Which of the following best describes Mike’s change
of role?
a.
Moving from processing legal paperwork to serving as a “champion” of employee
concerns
b.
Moving from serving as a “champion” of employee concerns to helping define the strategy
to manage human capital
c.
Moving from processing legal paperwork to helping define the strategy to manage human
capital
d.
Moving from serving as a “champion” of employee concerns to processing legal
paperwork
17. Donna, a human resources manager at Loch Inc., is moving from a strategic role in the human
resources department to an operational role. Which of the following best describes Donna’s change of
role?
a.
Moving from helping define the strategy to manage human capital to serving as a
“champion” of employee concerns
b.
Moving from helping define the strategy to manage human capital to processing legal
paperwork
c.
Moving from processing legal paperwork to helping define the strategy to manage human
capital
d.
Moving from serving as a “champion” of employee concerns to processing legal
paperwork
18. Sunny, a human resources executive at FlyHi Inc. is moving from a strategic role in the human
resources department to an administrative role. Which of the following best describes Sunny’s change
of role?
a.
Moving from processing legal paperwork to serving as a “champion” of employee
concerns
b.
Moving from serving as a “champion” of employee concerns to helping define the strategy
to manage human capital
c.
Moving from helping define the strategy to manage human capital to serving as a
“champion” of employee concerns
d.
Moving from helping define the strategy to manage human capital to processing legal
paperwork
19. Which of the following is a disadvantage of an aging workforce in economically developed countries?
a.
Having to provide retirement benefits
b.
Having to decrease the span of control
c.
Having to provide flexible work arrangements
d.
Having to replace experience and talent
20. Which of the following is an advantage of using a contingent workforce?
a.
Committed employees
b.
No training needed
c.
Lower cost
d.
Wider span of control
21. A person who is responsible for performing a variety of human resource activities is known as a
_____.
a.
human resource specialist
b.
human resource planner
c.
human resource strategist
d.
human resource generalist
22. Which of the following is a specialized human resource organization?
a.
World at Work Association
b.
Organization for Economic Cooperation
c.
Ethics Resource Center
d.
U.S. Small Business Association
23. Josh, a human resource manager, used to handle employee recruitment and compensation for his
organization. After a promotion, he was responsible for handling employee recruitment, compensation,
and benefits. Which of the following is true of Josh?
a.
Both the roles played by Josh are generalist roles.
b.
Both the roles played by Josh are specialist roles.
c.
Josh moved from a generalist role to a specialist role.
d.
Josh moved from a specialist role to a generalist role.
24. Suzie, a human resource executive, works with ZedNet Inc. She was responsible for employee
recruitment and compensation. After a promotion, she was made responsible only for recruitment.
Which of the following is true of Suzie?
a.
Both the roles that Suzie played were generalist roles.
b.
Both the roles that Suzie played were specialist roles.
c.
Suzie moved from a specialist role to a generalist role.
d.
Suzie moved from a generalist role to a specialist role.
25. Ramone, a human resource manager, works for TelVille Inc. Initially, he was responsible only for
recruitment. After a promotion, he was made responsible exclusively for employee benefits. Which of
the following is true of Ramone?
a.
Both the roles that Ramone played were generalist roles.
b.
Both the roles that Ramone played were specialist roles.
c.
Ramone moved from a specialist role to a generalist role.
d.
Ramone moved from a generalist role to a specialist role.
26. Max, a human resource executive, works at Axis Inc. Initially, he was responsible only for
recruitment, but after his promotion, he was responsible for recruitment, compensation, and benefits.
Which of the following best describes Max?
a.
Both the roles played by Max were generalist roles.
b.
Both the roles played by Max were specialist roles.
c.
Max moved from a specialist role to a generalist role.
d.
Max moved from a generalist role to a specialist role.
27. Which of the following is typically the first step in the strategic planning process for organizations?
a.
Organizational mission
b.
SWOT analysis
c.
Formulating organizational strategy
d.
Establishing goals and objectives
28. Which of the following is typically the last step in the strategic planning process for organizations?
a.
Formulating supporting functional strategies
b.
Evaluating and reassessing strategy
c.
Establishing goals and objectives
d.
Stating the organizational mission
29. Ken, a brand manager at Media Labs LLC., is formulating a strategic plan for his organization. He has
identified the organizational mission and formulated a SWOT analysis of the business. Which of the
following is most likely to be Ken’s next step in the strategic planning process?
a.
Evaluate and reassess strategy
b.
Implement strategy
c.
Establish goals and objectives
d.
Formulate organization-level strategies
30. Which of the following is typically the first step in the HR planning process?
a.
Review organization’s environmental analysis/strategic plans
b.
Develop HR staffing plans and actions
c.
Compile HR planning forecasts
d.
Assess external and internal workforce
31. Which of the following is typically the last step in the HR planning process?
a.
Review organization’s environmental analysis/strategic plans
b.
Develop HR staffing plans and actions
c.
Compile HR planning forecasts
d.
Assess external and internal workforce
32. Mark, an HR manager, is responsible for the HR planning process in his organization. He has reviewed
the organization’s strategic plans. Which of the following is most likely to be Mark’s next step in the
planning process?
a.
Develop HR staffing plans and actions
b.
Compile HR planning forecasts
c.
Implement HR staffing plans and actions
d.
Assess external and internal workforce
33. Which of the following is a factor of the external environment in an organization?
a.
Leadership bench strength
b.
Organizational culture
c.
Quality of talent
d.
Competitive forces
34. Which of the following is an effective method of managing a talent surplus?
a.
Outsourcing to a third party
b.
Using contingent workers
c.
Freezing hiring
d.
Increasing employee work hours through overtime
35. Which of the following is an effective method for managing a talent shortage?
a.
Reducing employee work hours
b.
Encouraging attrition
c.
Implementing voluntary separation programs
d.
Outsourcing to a third party
36. Which of the following is true of the Consolidated Omnibus Budget Reconciliation Act?
a.
Displaced workers can retain their group medical coverage for up to 18 months for
themselves, and up to 36 months for their dependents, if they pay the premiums
themselves.
b.
Displaced workers can use the Medicare program sponsored by the government for up to
18 months after the termination of their employment.
c.
Displaced workers can use the Medicare program sponsored by the federal government for
up to 36 months after the termination of their employment.
d.
Displaced workers can retain their group medical coverage for up to 12 months for
themselves, and up to 24 months for their dependents, if they pay the premiums
themselves.
37. Which of the following best defines the term ‘effectiveness’?
a.
The degree to which operations are done in an economical manner
b.
The ability to produce a specific desired effort or result that can be measured
c.
The degree to which operations are done in the least possible time
d.
The ability to produce a specific desired effort or result that cannot be measured
38. Which of the following best defines HR analytics?
a.
An evidence-based approach to making HR decisions on the basis of quantitative tools and
models
b.
An assumption-based approach to making HR decisions on the basis of quantitative tools
and models
c.
An evidence-based approach to making HR decisions on the basis of qualitative tools and
models
d.
An assumption-based approach to making HR decisions on the basis of qualitative tools
and models
39. Which of the following is the function of compliance audits?
a.
Reviewing regulatory compliance, benefits administration and reporting
b.
Checking record keeping on state and federal paperwork requirement
c.
Reviewing specific HR areas such as compensation, training, and so on
d.
Reviewing compliance with immigration regulations and the I-9 form requirement
40. Which of the following is a part of the strategy and planning function of human resource management?
a.
Diversity
b.
Human resource retention
c.
Job analysis
d.
Compensation
41. Which of the following is the function of benefit programs audit?
a.
Reviewing regulatory compliance, benefits administration and reporting
b.
Checking record keeping on state and federal paperwork requirement
c.
Reviewing specific HR areas such as compensation, training, and so on
d.
Reviewing compliance with immigration regulations and the I-9 form requirement
42. Which of the following is the function of I-9 audit?
a.
Reviewing regulatory compliance, benefits administration and reporting
b.
Checking record keeping on state and federal paperwork requirement
c.
Reviewing specific HR areas such as compensation, training, and so on
d.
Reviewing compliance with immigration regulations
43. Which of the following is the function of specific program audit?
a.
Reviewing regulatory compliance, benefits administration and reporting
b.
Checking record keeping on state and federal paperwork requirement
c.
Reviewing particular HR subareas such as compensation, training, and so on
d.
Reviewing compliance with immigration regulations and the I-9 form requirement
44. Which of the following is a part of the staffing function of human resource management?
a.
Recruiting
b.
Training
c.
Orientation
d.
Career planning
45. Which of the following is a part of the human resource function of employee and labor relations?
a.
Human resource policies
b.
Health and wellness
c.
Human resource effectiveness
d.
Affirmative action
TRUE/FALSE
1. Human resources operations in some companies have been involved with mergers, acquisitions, and
outsourcing.
2. Human resource management is the design of formal systems in an organization to manage human
talent for accomplishing organizational goals.
3. Intellectual property is the collective value of the capabilities, knowledge, skills, life experiences, and
motivation of an organizational workforce.
4. A core competency is a unique capability that creates high value in which an organization excels.
5. A useful way to measure the productivity of a workforce is to determine the total cost of people
against the annual sales of the organization.
6. Some of the major ways of increasing employee productivity are organizational restructuring,
redesigning work, and aligning human resource activities.
7. Organizational culture consists of the shared values and beliefs that give members of an organization
meaning and provide them with rules for behavior.
8. Even if an organization does not have a history in which people have shared experiences for years, the
organizational culture will stabilize.
9. The operational role of human resource involves focusing on clerical administration and
recordkeeping, including essential legal paperwork and policy implementation.
10. The administrative role of human resource involves serving as employee “champion” for employee
issues and concerns.
11. The strategic role of human resource involves helping to define the strategy relative to human capital
and its contribution to organizational results.
12. Replacing the experience and talents of longer-service workers is a challenge facing employers in all
industries.
13. Contingent workers include temporary workers, independent contractors, leased employees, and part-
timers.
14. By using contingent workers, employers risk facing more legal issues regarding selection,
discrimination, benefits, discipline, and termination.
16. It is not necessary for human resource professionals at all levels to possess strategic knowledge and
impact.
15. A person who has in-depth knowledge and expertise in a limited area of human resource is known as a
human resource generalist.
