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1. Technology—and automation in particular—has reduced the number of jobs that require routine tasks and little skill
and has increased the number of jobs that require considerable skill.
a.
True
b.
False
ANSWER:
True
2. Knowledge workers are employees whose responsibilities include only problem-solving.
a.
True
b.
False
ANSWER:
False
3. In order to get the current and accurate HR-related data that she needs for control and decision making, Steph uses a
human resources information system (HRIS).
a.
True
b.
False
ANSWER:
True
4. To proactively manage change, organizations should wait to see how external forces impact an organization’s
performance, and then develop a plan to address those changes.
a.
True
b.
False
ANSWER:
False
5. A job candidate who has experience working abroad or knows more than one language may have an advantage in the
hiring process because the strategies companies are pursuing today increasingly involve one or more elements of
globalization.
a.
True
b.
False
ANSWER:
True
6. A firm’s ability to compete through people depends on its ability to manage human capital.
a.
True
b.
False
ANSWER:
True
7. Human capital is owned by an organization and is part of its core competencies.
a.
True
b.
False
ANSWER:
False
8. A company saw a drop in sales after negative publicity around a scandal involving safety reports. The strategic changes
the company makes to deal with this situation are reactive changes.
a.
True
b.
False
ANSWER:
True
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9. One way that XLT Corp. could accomplish its goal of giving all managers exposure to different areas of the
organization is by rotating non-human resource (HR) managers into HR positions and vice versa.
a.
True
b.
False
ANSWER:
True
10. Human capital is intangible, but can still be managed the way organizations manage jobs, products, and technologies.
a.
True
b.
False
ANSWER:
False
11. The United States is the world’s most productive nation in terms of the total value of all goods and services it
produces, even when it comes to manufacturing.
a.
True
b.
False
ANSWER:
True
12. Because it is a service-intensive firm, Spago’s Spa should expect labor costs to be among the smallest expenditures the
company makes.
a.
True
b.
False
ANSWER:
False
13. A firm has required some of its employees to take time off but is still providing them with full pay and benefits. In this
situation, those employees have been furloughed.
a.
True
b.
False
ANSWER:
False
14. Nearshoring occurs when a firm relocates jobs abroad to nations closer to its domestic market.
a.
True
b.
False
ANSWER:
True
15. Downsizing is often used by organizations for the planned elimination of jobs.
a.
True
b.
False
ANSWER:
True
16. Knowledge base is a buzzword that describes the massive amounts of data available online and offline today that can
be “crunched” to make decisions.
a.
True
b.
False
ANSWER:
False
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17. XLT Corp. wants to employ workers who work out of their homes rather than in the traditional office environment.
XLT Corp. is considering outsourcing.
a.
True
b.
False
ANSWER:
False
18. Corporate social responsibility is the responsibility of an organization to act in the best interests of the people and
communities affected by its activities.
a.
True
b.
False
ANSWER:
True
19. Older workers are generally undependable and prefer to operate like free agents.
a.
True
b.
False
ANSWER:
False
20. Juan, who does not work in HR but supervises the work of other employees, is a line manager.
a.
True
b.
False
ANSWER:
True
21. The U.S. Department of Education has found that less than half of all high school seniors in the U.S. are able to handle
basic math involving fractions, decimals, and simple algebra.
a.
True
b.
False
ANSWER:
True
22. Pat is in a demographic group that currently accounts for slightly more than half of the American workforce. Pat is
most likely female.
a.
True
b.
False
ANSWER:
False
23. By 2050, Hispanics are projected to make up about one-half of the U.S. labor force.
a.
True
b.
False
ANSWER:
False
24. Malcom is enthusiastic about his work and is very committed to it. Malcom has a high level of employee engagement.
a.
True
b.
False
ANSWER:
True
25. Employees today are less likely to define their personal success only in terms of financial gain.
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a.
True
b.
False
ANSWER:
True
26. A firm that offers employees options such as flexible hours, job sharing, and telecommuting is engaging in family-
friendly practices.
a.
True
b.
False
ANSWER:
True
27. One of the responsibilities of HR managers is to provide strategic advice and counsel to supervisors.
a.
True
b.
False
ANSWER:
True
28. Organizational culture refers to the shared values, beliefs, and assumptions people in an organization have.
a.
True
b.
False
ANSWER:
True
29. HR policies are generally proposed by the senior executives of an organization and then submitted to the HR
managers, who actually issue them.
a.
True
b.
False
ANSWER:
False
30. A firm monitored its employees’ emails and Internet use while on the job. That firm is in violation of the Electronic
Communications Privacy Act of 1986.
a.
True
b.
False
ANSWER:
False
31. HR managers can establish personal credibility by developing good relationships with people both internal and
external to the firm.
a.
True
b.
False
ANSWER:
True
32. A firm that has an agreement with a professional employer organization that takes over the firm’s HR-related activities
and becomes a coemployer of the employees is using employee leasing.
a.
True
b.
False
ANSWER:
True
33. Which of the following is NOT a competitive challenge within the human resources management framework?
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a.
Changes in the marketplace
b.
Globalization
c.
Technology
d.
Employee rights
ANSWER:
d
34. The __________ was the first major trade agreement of the twentieth century to establish rules and guidelines for
global commerce.
a.
North American Free Trade Agreement (NAFTA)
b.
General Agreement on Tariffs and Trade (GATT)
c.
Free Trade Area of the Americas (FTAA)
d.
Asia Pacific Economic Cooperation (APEC)
ANSWER:
b
35. Offshoring is also referred to as
a.
global staffing.
b.
strategic staffing.
c.
global sourcing.
d.
employees leasing.
ANSWER:
c
36. Which of the following is a human resource issue that firms have to balance because of globalization?
a.
Training foreign managers abroad
b.
Gauging the knowledge and skill base of workers
c.
Figuring out how to best hire and train workers
d.
All of these are correct.
ANSWER:
d
37. One of the first steps in choosing an HRIS is for the HR personnel to
a.
evaluate the most time-consuming tasks.
b.
examine the user-friendliness of the software.
c.
calculate the cost savings in using an HRIS.
d.
calculate the time required to train the HR staff.
ANSWER:
a
38. __________ is closely related to corporate social responsibility.
a.
Downsizing
b.
Furloughing
c.
Sustainability
d.
Offshoring
ANSWER:
c
39. When external forces have already affected an organization’s performance, the strategic changes made by the
organization to combat those forces are said to be
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a.
proactive.
b.
intentional.
c.
reactive.
d.
negative.
ANSWER:
c
40. A manager who initiates change to take advantage of targeted opportunities, such as expanding into a new geographic
region, is making a __________ change.
a.
proactive
b.
turnover
c.
reactive
d.
reflective
ANSWER:
a
41. XLT Corp. used __________ when it moved jobs from India to Mexico, which is closer to its domestic market in the
United States.
a.
nearshoring
b.
outsourcing
c.
homeshoring
d.
furloughing
ANSWER:
a
42. Millennials are also known as
a.
baby boomers.
b.
Generation X.
c.
Generation Y.
d.
screenagers.
ANSWER:
c
43. The knowledge, skills, and capabilities of individuals that have a tremendous impact on an organization’s performance
but do not show up directly on its balance sheet are known as __________ capital.
a.
intellectual
b.
human
c.
core
d.
employee
ANSWER:
b
44. Women who are employed full-time today make about __________ percent of what men employed full-time make.
a.
58
b.
70
c.
83
d.
91
ANSWER:
c
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45. Oftentimes, knowledge goes unshared and unused in organizations because
a.
employees lack motivation.
b.
of an ineffective human resources information system.
c.
of the organizational culture.
d.
employees lack proper training.
ANSWER:
c
46. A firm that is able to make quick changes in order to gain a competitive advantage is demonstrating its
a.
leverage.
b.
analytics.
c.
sustainability.
d.
agility.
ANSWER:
d
47. Firms are increasingly trying to expand their exports to what country because it has the world’s second-largest
population and a growing middle class?
a.
China
b.
Japan
c.
India
d.
South Korea
ANSWER:
c
48. The national identities of products are blurring due to the effects of
a.
globalization.
b.
nearshoring.
c.
downsizing.
d.
furloughing.
ANSWER:
a
49. The __________ paved the way for the formation of many major trade agreements and institutions.
a.
General Agreement on Tariffs and Trade (GATT)
b.
International Monetary Fund (IMF)
c.
North American Free Trade Agreement (NAFTA)
d.
European Union (EU)
ANSWER:
a
50. What is one way that organizations can increase their productivity?
a.
Increase inputs
b.
Reduce human capital
c.
Reduce outputs
d.
Increase physical capital
ANSWER:
d
51. When planning their budget, the managers of a knowledge-intensive firm should realize that their largest expenditures
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will most likely be in what area?
a.
Production costs
b.
Marketing costs
c.
Labor costs
d.
Distribution costs
ANSWER:
c
52. As part of its initiative to streamline operations, XLT Corp. is planning to eliminate a number of jobs. Which strategy
is XLT Corp. using?
a.
Downsizing
b.
Outsourcing
c.
Nearshoring
d.
Reengineering
ANSWER:
a
53. XLT Corp. needs to take some steps to manage the size of its workforce. All of the following options could help
achieve that goal EXCEPT
a.
furloughing.
b.
homeshoring.
c.
employee leasing.
d.
outsourcing.
ANSWER:
c
54. Hiring someone outside the company to perform tasks that were formerly done internally is known as
a.
outplacement.
b.
contracting.
c.
outsourcing.
d.
employee leasing.
ANSWER:
c
55. The business practice of sending jobs to other countries is referred to as
a.
nearshoring.
b.
offshoring.
c.
outsourcing.
d.
employee leasing.
ANSWER:
b
56. A method of containing costs that allows a professional employer organization (PEO), typically a larger company, to
take over the management of a smaller company’s HR tasks and become a coemployer to its employees is known as
a.
outsourcing.
b.
employee leasing.
c.
furloughing.
d.
nearshoring.
ANSWER:
b
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57. It is anticipated that in the future, the U.S. workforce will exhibit
a.
about the same demographic mix as it does today.
b.
an increase in ethnic diversity.
c.
a decrease in ethnic diversity.
d.
a decrease in the number of older workers.
ANSWER:
b
58. Nikolas is currently in an age group whose labor force participation rate is projected to increase between now and
2050 according to the U.S. Bureau of Labor Statistics. Given the following choices, how old is Nikolas?
a.
15
b.
27
c.
38
d.
58
ANSWER:
d
59. One workplace diversity challenge is that Blacks and Hispanics have been
a.
fairly well represented in fast-growing occupations.
b.
heavily concentrated in slow-growth occupations.
c.
underrepresented in declining occupations.
d.
overrepresented in fast-growing occupations.
ANSWER:
b
60. In which of the following ways are the labor force and its demographics expected to change?
a.
Minorities will make up a smaller share of the U.S. labor force than they did in the past.
b.
The number of women joining the labor force is expected to increase.
c.
By 2050, the labor force participation rate will be only about 60 percent.
d.
The demand for temporary workers will triple by 2050.
ANSWER:
c
61. Older workers
a.
operate more like free agents.
b.
prefer having younger supervisors.
c.
are often willing to work flexible hours.
d.
learn new behaviors more quickly because of their experience.
ANSWER:
c
62. Over the years, the educational attainment of the U.S. labor force has
a.
risen dramatically.
b.
fallen dramatically.
c.
remained at about the same level.
d.
had little influence on HRM.
ANSWER:
a
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63. Approximately __________ percent of mothers with school-age children are employed.
a.
10
b.
30
c.
50
d.
70
ANSWER:
d
64. The use and disclosure of personal medical information is protected by the
a.
Privacy Act of 1974.
b.
Health Insurance Portability and Accountability Act of 1996.
c.
Electronic Communications Privacy Act of 1986.
d.
Public Health Service Act of 1944.
ANSWER:
b
65. Which of the following does NOT represent a cultural change emerging in organizations?
a.
An increased concern for privacy
b.
Changing attitudes toward work
c.
Balancing work and family demands
d.
Accommodating unemployed workers
ANSWER:
d
66. Employee rights include all of the following EXCEPT
a.
company funded pension plans.
b.
equal employment opportunities.
c.
union representation if desired.
d.
equal pay for equal work.
ANSWER:
a
67. A company that wants to offer family-friendly work options to its employees might adopt any of the following
EXCEPT
a.
day care.
b.
spousal benefits.
c.
parental leave.
d.
job sharing.
ANSWER:
b
68. Which of the following statements regarding employees today is accurate?
a.
The majority of employees have children under 18.
b.
Most people still enjoy work and want to excel at it.
c.
Remaining with a single employer is a top priority.
d.
Personal success is defined only in terms of financial gains.
ANSWER:
b
69. XLT Corp. does not want to change the size of its workforce, but it does need a better way to manage benefits. Which
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of the following might XLT Corp. want to consider?
a.
Furloughing
b.
Homeshoring
c.
Employee leasing
d.
Outsourcing
ANSWER:
c
70. Steve demonstrates understanding of his organization’s customers and economic and financial capabilities. He uses
this understanding to help his firm achieve its strategic direction. Steve has __________ mastery.
a.
change
b.
HR
c.
business
d.
personal
ANSWER:
c
71. As an employee advocate, HR managers
a.
formulate and issue policy revisions for employees.
b.
listen to employees and represent their needs to management.
c.
provide individual orientation and training to every employee.
d.
assist employees with labor negotiations.
ANSWER:
b
72. Which of the following is NOT a general responsibility of the HR manager?
a.
Employee supervision
b.
Strategic advice and counsel
c.
Policy formulation and implementation
d.
Employee advocacy
ANSWER:
a
73. Ella, an HR manager, has developed personal relationships with people both internal and external to the firm.
She demonstrates the values of the firm while standing up for her own beliefs and dealing with all parties equitably.
Which competency is Ella demonstrating?
a.
Change mastery
b.
HR mastery
c.
Business mastery
d.
Personal credibility
ANSWER:
d
74. Fuller Foods sets rigorous standards for its suppliers that minimize the negative impact of fish farming, deforestation,
and antibiotic use while promoting practices such as maintaining water quality and limited the spread of disease. This
represents an emphasis on
a.
agility.
b.
offshoring.
c.
furloughing.
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d.
sustainability.
ANSWER:
d
75. Globalization stirs fierce debate, especially when it comes to
a.
equal pay for women.
b.
jobs.
c.
proprietary technology.
d.
information exchange.
ANSWER:
b
76. Globalization has led to
a.
a new focus on corporate social responsibility.
b.
older workers behaving more like free agents.
c.
a reduction in the number of offshoring options.
d.
a reduction in the number of nearshoring options.
ANSWER:
a
77. Renata is the go-to person at her company for issues related to staffing, development, appraisals, rewards, and team
building. She has good interpersonal skills and has expert knowledge in the areas of performance measurement and
communication. In the context of the competencies required of HR managers, Renata has developed
a.
personal credibility.
b.
HR mastery.
c.
business mastery.
d.
change mastery.
ANSWER:
b
78. Human capital is _____ and _____ be managed the way organizations manage jobs, products, and technologies.
a.
tangible; cannot
b.
tangible; can
c.
intangible; cannot
d.
intangible; can
ANSWER:
c
79. Gene uses HR data such as employee demographic information, performance ratings, and employee surveys to try to
predict which employees are most likely to quit. Gene is making use of
a.
big (HR) data.
b.
workforce (HR) analytics.
c.
HR data crunching.
d.
HRIS analysis.
ANSWER:
b
80. Today about __________ percent of women aged 16 years and older participate in the workforce in the U.S.
a.
40
b.
80
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People in Generation X were born between 1964 and 1979. Generation Xers value job security. The members
of Generation X are also independent. They like challenging work rather than repetitive work and dislike
supervisors who look over their shoulders.
c.
30
d.
60
ANSWER:
d
81. List six competitive challenges facing human resources management departments.
ANSWER:
Competitive challenges facing HRM departments include:
1. Responding strategically to changes in the marketplace
2. Competing, recruiting and, staffing globally
3. Setting and achieving corporate social responsibility and sustainability goals
4. Technology
5. Containing costs while retaining top talent and maximizing productivity
6. Employee challenges
82. Explain the major activities for which an HR manager is typically responsible.
ANSWER:
1. Strategic advice and counsel: HR managers often serve as in-house consultants to supervisors, managers,
and executives. Given their knowledge of internal employment information and productivity metrics as well as
their awareness of external trends such as economic and unemployment data and new legal and regulatory
issues, HR managers are an invaluable resource for making decisions. In some companies, generally larger
ones, the top HR manager acts as the chief compliance or ethics officer to help employees wade through gray
areas when it comes to right and wrong and ensure personnel comply with the laws and regulations that affect
their industries. HR managers are also being relied on more heavily to advise compensation committees.
2. Service: HR managers perform such services as recruiting, selecting, testing, and planning and conducting
training programs. Technical expertise in these areas is essential for HR managers as they design and
implement talent-management programs.
3. Policy formation and implementation: HR managers generally propose and draft new policies or policy
revisions to cover recurring problems or to prevent anticipated problems. HR managers also monitor the firm’s
managers and employees to ensure they follow established HR policies, procedures, and practices. Perhaps
more important, they are a resource to whom managers can turn for policy interpretation.
4. Employee advocacy: HR managers listen to employee concerns and represent their needs. The HR manager
must ensure that the interests of the employee align with the interests of the organization.
83. Discuss the age distribution of today’s workforce.
ANSWER:
The newest generation entering the workplace is Generation Z. The members of Generation Z were born in the
mid-1990s and early 2000s. It’s been estimated that by 2020, they will make up 20 percent of the workforce.
These workers have never known life without smartphones and social media, and they expect to be trained and
managed with digital tools. They are also more comfortable with racial, cultural, and sexual diversity than
other generations and want to change the world for the better. A large number of members of this generation
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