Human Resource Management 4th Edition Test Bank

ExamName___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The process of ensuring that employees' activities and outputs match the organization's 1) goals is called: A) strategic management. B) development. C) job analysis. D) quality assurance. E) performance management. Answer: E Explanation: A) B) C) D) E) 2) The processing and transmission of digitized HR information, especially using computer 2) networking and the Internet, is: A) self-service. B) human resource information system (HRIS). C) electronic-human resource management (E-HRM). D) reengineering. E) electronic business (e-business). Answer: C Explanation: A) B) C) D) E) 3) ______________ refers to demonstrating that human resource practices have a positive 3) influence on the company's profits or key stakeholders. A) Evidence-based HR B) Strategy C) Compliance D) Performance management E) Productivity improvement Answer: A Explanation: A) B) C) D) E) 1 4) Which of the following is NOT one of the "product lines" of the business of HR within 4) the organization? A) Strategic partner B) Administrative services and transactions C) Business partner services D) Credible activist E) All of the choices are product lines of the business of HR. Answer: D Explanation: A) B) C) D) E) 5) Which of the following is NOT a typical area of involvement of supervisors and 5) managers in HRM? A) Design and implement pension plans B) Train, coach, and develop employees C) Appraise performance D) Provide a motivational environment E) Interview and select candidates Answer: A Explanation: A) B) C) D) E) 6) Human Resource Management develops which of the following that influence 6) employees' behaviour? A) Practices B) Policies C) Laws D) Systems E) Policies, "practices," and "systems" Answer: E Explanation: A) B) C) D) E) 2 7) Development programs often focus on: 7) A) preparing employees for management responsibility. B) identifying the top qualities employers look for in employees. C) enabling employees to learn job-related knowledge, skills, and behaviour. D) ensuring that employees' activities and outputs match the organization's goals. E) All of the choices are the focus of development programs. Answer: A Explanation: A) B) C) D) E) 8) Which one of the following terms describes the best possible fit between a company's 8) social system (people and how they interact) and its technical system (equipment and processes)? A) High-performance work system B) Electronic human resource management C) Outsourcing D) Total quality management E) Self-service system Answer: A Explanation: A) B) C) D) E) 9) The focus on employee engagement has had what effect upon recruiting? 9) A) It has substantially enhanced employment opportunities for employment equity groups. B) It has significantly reduced recruiting costs. C) It has created an international labour market. D) It has shifted the focus away from technical skills toward general cognitive and interpersonal skills. E) It has increased the use of teamwork. Answer: D Explanation: A) B) C) D) E) 3 10) Positions in HRM generally involve work in specialized areas (e.g. recruiting or training) 10) or ___________ who perform a full range of HRM activities. A) technicians B) generalists C) specialists D) executives E) environmentalists Answer: B Explanation: A) B) C) D) E) 11) Which one of the following statements regarding workforce skills is FALSE? 11) A) When employees lack advanced literacy and thinking skills, they may be unable to perform their jobs competently and will experience difficulty adjusting to changes in the workplace. B) The increasing use of computers to do routine tasks has shifted the kinds of skills needed by employees. C) Today's employees must be able to handle a variety of responsibilities, interact with customers, and think creatively. D) Often when organizations are looking for technical skills, they are looking for skills related to using technology. E) More and more employers are looking for employees with solid technical skills rather than knowledge-based or interpersonal skills. Answer: E Explanation: A) B) C) D) E) 12) The only age group growing in numbers between 2014 and 2033 is the ______ age 12) group. A) 35 to 44 B) 55+ C) 16 to 24 D) 15 and younger E) 25 to 34 Answer: B Explanation: A) B) C) D) E) 4 13) Standards for ethical conduct include which of the following? 13) A) Greatest profitability. B) Greatest good for the greatest number. C) Fair and equitable. D) Greatest good for the greatest number, "greatest profitability," and "fair and equitable." E) Only "greatest good for the greatest number" and "fair and equitable." Answer: E Explanation: A) B) C) D) E) 14) Employees who take assignments in other countries are called: 14) A) knowledge workers. B) outsourcees. C) nationalists. D) expatriates. E) immigrants. Answer: D Explanation: A) B) C) D) E) 15) Which of the following is NOT an alternative work arrangement? 15) A) On-call workers B) Independent contractors C) Temporary workers D) Contract company workers E) Full-time employees Answer: E Explanation: A) B) C) D) E) 5 16) Many organizations are taking steps to provide more flexible work schedules, to: 16) A) protect employees' free time. B) to increase satisfaction and productivity. C) recruit and retain employees. D) to more productively use employees' work time. E) All of the choices are correct. Answer: E Explanation: A) B) C) D) E) 17) Which one of the following refers to a planned effort to enable employees to learn 17) job-related knowledge, skills, and behaviour? A) Orientation B) Selection C) Development D) Recruitment E) Training Answer: E Explanation: A) B) C) D) E) 18) Which one of the following refers to the process through which an organization seeks 18) applicants for potential employment? A) Selection B) Job analysis C) Orientation D) Recruitment E) Performance management Answer: D Explanation: A) B) C) D) E) 6 19) What do we call the grouping of competencies for HR professionals that means being so 19) well-respected in the organization that they can influence the positions taken by managers? A) Ethical designer B) Cultural steward C) Credible activist D) Operational executor E) Both "credible activist" and "operational executor." Answer: C Explanation: A) B) C) D) E) 20) As a type of resource, human capital refers to: 20) A) the tax-deferred value of an employee's pension plan. B) executive talent within an organization. C) substitutes for physical assets. D) the wages, benefits, and other costs incurred in support of HR functions within an organization. E) employee characteristics that can add economic value to the organization. Answer: E Explanation: A) B) C) D) E) 21) Which one of the following statements about the composition of the labour force is 21) TRUE? A) The largest proportion of Canada's population is 15 to 24 years of age. B) Diversity does not affect HRM practices. C) Worker performance and learning suffer significantly as a result of aging. D) The average age of Canada's labour force is getting younger. E) There is increasing generational diversity in the workforce. Answer: E Explanation: A) B) C) D) E) 7 22) Which term refers to all people willing and able to work? 22) A) Passive labour force B) Labour force C) Internal labour force D) External labour market E) Knowledge workers Answer: B Explanation: A) B) C) D) E) 23) The extent that an employee experiences full involvement in one's work and 23) commitment to one's job and organization refers to: A) high-performance. B) ethical behaviour. C) employee satisfaction. D) teamwork. E) employee engagement. Answer: E Explanation: A) B) C) D) E) 24) Employees whose main contribution to the organization is specialized knowledge, such 24) as knowledge of customers, a process, or a profession are: A) HR professionals. B) college or university graduates. C) knowledge workers. D) technical specialists. E) generalists. Answer: C Explanation: A) B) C) D) E) 8 25) When the technology, organizational structure, people, and processes of an organization 25) all work together to give it an advantage within its competitive environment, the company has a: A) competitive advantage. B) global focus. C) high-performance work system. D) differentiated focus. E) core competency. Answer: C Explanation: A) B) C) D) E) 26) A small manufacturing company decides to have its accounting function performed by a 26) medium-sized accounting firm. This is an example of: A) outsourcing. B) offshoring. C) joining forces through a merger. D) productivity improvement. E) expatriation. Answer: A Explanation: A) B) C) D) E) 27) HR employees play a smaller role in maintaining records, and employees now get 27) information through: A) a psychological contract. B) self-service. C) a shared service centre. D) an HR engagement portal. E) a high-performance work system. Answer: B Explanation: A) B) C) D) E) 9 28) Which one of the following is NOT true of psychological contracts? 28) A) Psychological contracts describe what an employee expects to contribute in an employment relationship and what the employer will provide the employee in exchange for those contributions. B) Under the "new" psychological contract, organizations expect their employees to contribute time, effort, skills, abilities, and loyalty in return for job security and opportunities for promotions. C) Psychological contracts describe unspoken expectations. D) Companies demand excellent customer service and high productivity levels from employees. E) Unlike a written sales contract, psychological contracts are not formally put into writing. Answer: B Explanation: A) B) C) D) E) 29) Which one of the following refers to the process of getting detailed information about 29) jobs? A) Selection B) Performance management C) Recruitment D) Job analysis E) Job design Answer: D Explanation: A) B) C) D) E) 30) When an organization is better than competitors at something, and can hold that 30) advantage over a sustained period of time, it is said to have a: A) low-cost competitive advantage. B) sustainable competitive advantage. C) core competency. D) differentiated focus. E) None of the choices are correct. Answer: B Explanation: A) B) C) D) E) 10 31) Identifying the numbers and types of employees the organization will require in order to 31) meet its objectives is: A) performance management. B) workforce planning. C) job design. D) development. E) None of the choices are correct. Answer: B Explanation: A) B) C) D) E) 32) Human resources provide an organization with a sustainable competitive advantage 32) because they (are): A) cannot be imitated. B) have no good substitutes. C) valuable. D) rare. E) All of the choices are correct. Answer: E Explanation: A) B) C) D) E) 33) Which of the following statements about knowledge workers is TRUE? 33) A) Managers depend on the employees' willingness to share information. B) Knowledge workers are in a position of power. C) Skilled knowledge workers have many job opportunities, even in a slow economy. D) Knowledge workers are in a position of power, "managers depend on the employees" willingness to share information," and "skilled knowledge workers have many job opportunities, even in a slow economy." E) Only "Knowledge workers are in a position of power" and "managers depend on the employees" willingness to share information" are correct. Answer: D Explanation: A) B) C) D) E) 11 34) Human capital means the organization's employees described in terms of all but one of 34) the following. Name the exception. A) Experience B) Relationships C) Intelligence D) Profitability E) Training Answer: D Explanation: A) B) C) D) E) 35) Ethics refer to: 35) A) one's political values and beliefs. B) the fundamental principles of right and wrong. C) what is acceptable to the company. D) one's religious beliefs. E) what is required by law. Answer: B Explanation: A) B) C) D) E) 36) Providing employees online access to obtain information about HR issues such as 36) training, benefits, and compensation, to enroll themselves in programs and services, or to provide feedback through online surveys is known as: A) human resource information system. B) strategic planning. C) continuous learning. D) self-service. E) outsourcing. Answer: D Explanation: A) B) C) D) E) 12 37) What types of skills are more employers looking for? 37) A) Physical strength B) Mathematical, verbal, and interpersonal C) Creativity D) Mastery of a particular piece of equipment E) Mathematical, verbal, and interpersonal and "creativity" Answer: E Explanation: A) B) C) D) E) 38) What minimum level of education do CHRP candidates require to qualify for the CHRP 38) designation? A) Executive membership in a human resource association B) A bachelor's degree in any discipline C) Three or more years of management experience D) A high school diploma E) A score of at least 50% in the National Knowledge Exam (NKE) Answer: B Explanation: A) B) C) D) E) 39) A display of a series of HR measures, showing human resource goals and objectives and 39) progress toward meeting them is the: A) intranet. B) HR application resource. C) E-HRM. D) HR dashboard. E) evidence-based HR portal. Answer: D Explanation: A) B) C) D) E) 13 40) From a manager's perspective, an HRIS can be used to perform primarily all BUT one of 40) the following. Name the exception. A) Support day-to-day HR decisions B) Support strategic decision making C) Motivate employees D) Help the organization avoid lawsuits E) Provide data to evaluate programs or policies Answer: C Explanation: A) B) C) D) E) TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 41) Compliance with laws and regulations is not an HR responsibility, but rather the sole 41) responsibility of managers within the organization. Answer: True False Explanation: 42) No two human resource departments will have the same roles and responsibilities due to 42) the size of the company, the characteristics of the workforce and the industry, and the values of the firm's management. Answer: True False Explanation: 43) Performance management requires that employee activities and outputs match the 43) individual's goals. Answer: True False Explanation: 44) HRM should have a significant role in carrying out a merger or acquisition. 44) Answer: True False Explanation: 45) Advances in technology have allowed many HR services to be offered on a self-service 45) basis. Answer: True False Explanation: 46) Members of the HR department need to be credible activists. This requires HR 46) professionals who implement workplace policies and design reward systems. Answer: True False Explanation: 14 47) The concept of "human resource management" implies that employees are 47) interchangeable, easily replaced assets that should be managed like any other physical asset. Answer: True False Explanation: 48) Managers and economists traditionally have seen human resource management as a 48) necessary expense rather than as a source of value to their organization. Answer: True False Explanation: 49) Canada underperforms the United States with respect to labour productivity. 49) Answer: True False Explanation: 50) Canada's population and its labour force are aging. 50) Answer: True False Explanation: 51) Recruitment refers to the process by which an organization selects applicants with the 51) right knowledge, skills, and abilities to help the organization achieve its goals. Answer: True False Explanation: 52) The role of supervisors and managers in HRM usually begins after employees have been 52) hired. Answer: True False Explanation: 53) Under the "new" psychological contract, organizations expect employees to contribute 53) time, effort, skills, abilities, and loyalty in return for job security and opportunities for promotion within the organization. Answer: True False Explanation: 54) The CHRP designation has an experience requirement "ten or more years of 54) professional experience in human resources within the last twenty years." Answer: True False Explanation: 55) Managers are increasingly seeing a more administrative role for HRM in the future. 55) Answer: True False Explanation: 15 56) Important decisions in planning pay and benefits include how much to offer employees 56) in salary or wages, as opposed to bonuses, commissions, and other performance-related pay. Answer: True False Explanation: 57) For employee engagement to occur, managers must be trained to link employees to 57) resources within and outside the organization, such as customers, co-workers in other departments, and websites with needed information. Answer: True False Explanation: 58) Employee engagement shifts the recruiting focus away from general cognitive and 58) interpersonal skills toward technical skills. Answer: True False Explanation: 59) Electronic human resource management (E-HRM) has the potential to change all 59) traditional HRM functions. Answer: True False Explanation: 60) Setting up a business enterprise in another country (e.g. building a factory in China) is 60) called outsourcing. Answer: True False Explanation: 61) Recent surveys indicate that the general public and managers do not have positive 61) perceptions of the ethical conduct of businesses. Answer: True False Explanation: 62) Almost one-third of the Aboriginal population is under age 15, in contrast with half of 62) the non-Aboriginal population. Answer: True False Explanation: 63) The use of alternative staffing arrangements such as independent contractors, on-call 63) workers, temporary workers, and contract company workers is decreasing. Answer: True False Explanation: 16 ESSAY. Write your answer in the space provided or on a separate sheet of paper. 64) What are some of the specific ways human resource professionals support the organization's strategy? Answer: 1. Workforce Planning: Identifying the numbers and types of employees the organization will require to meet its objectives. 2. Productivity Improvement: Supporting the organization's efforts to enhance productivity. 3. Expanding into Global Markets: Providing and preparing talent for a global workforce. 4. Outsourcing: Helping with a transition to outsourcing and outsourcing. 5. Mergers and Acquisitions: Assessing potential for conflict due to differences in culture and implementing the necessary people practices to sort out the differences in the two companies' practices e.g. rewards, performance management, and other HR systems. 65) Discuss three major trends in the composition of the labour force and their impact on HR practices. Answer: 1. An aging workforce: In terms of age, the fastest growing segment will be workers aged 55+ as the baby boom generation continues to age. Young workers between the ages of 15 and 24 will actually be fewer in number. This combination of trends will cause the overall workforce to age. Aging workforce issues include retirement planning, retraining older workers, motivating workers whose careers plateaued, controlling the rising costs of benefits, and dealing with the increasing generational diversity of the workforce. 2. A diverse workforce. The labour force is growing more diverse. The four designated employment equity groups represent a strategic resource. HR practices will need to ensure that tests used to select employees are objective and unbiased; employees need flexible schedules that allow them to meet nonwork needs; training and development is needed to make employees aware of the damage that stereotypes can do; and compensation and rewards including providing benefits to accommodate the needs of a diverse workforce. 3. Skill deficiencies of the workforce. The increasing use of computers to do routine tasks has shifted the kinds of skills needed for employees. When employees lack advanced literacy and thinking skills they may be unable to perform their jobs competently and will experience difficulty adjusting to changes in the workplace. HR may need to provide training to correct skill deficiencies and ensure that employees are able to handle a variety of responsibilities, interact with customers, and think creatively. 17 66) One way to define the responsibilities of HR departments is to think of HR as a business within the organization with three product lines. Briefly describe each of these product lines. For each of these product lines what type of HR expertise is needed? Answer: The three HR product lines are: • Administrative services and transactions Handling administrative tasks such as processing tuition reimbursement applications and answering questions about benefits efficiently and with a commitment to quality. This requires expertise in the particular tasks. • Business partner services Developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs. For the systems to be effective, HR people must understand the business so it can understand what the business needs. Requires HR to understand the business so it can understand what the business needs. • Strategic partner Contributing to the company's strategy through an understanding of its existing and needed human resources and ways HR practices can give the company a competitive advantage. HR people must understand the business, its industry, and its competitors. 67) Name the four qualities associated with human resources that help an organization gain a sustainable competitive advantage. Answer: The four qualities are: 1. Human resources are valuable. High-quality employees provide a needed service as they perform many critical functions. 2. Human resources are rare. A person with high levels of the needed skills and knowledge is not common. An organization might spend months looking for a talented and experienced manager or technician. 3. Human resources cannot be imitated. To imitate human resources at a high-performing competitor requires one to first figure out which employees are providing the advantage and how to recruit people who can do precisely the same thing, and to set up the systems that enable those people to imitate the competitor. 4. Human resources have no good substitutes. When people are well trained and highly motivated, they learn, develop their abilities, and care about customers. Few, if any other resources can match committed and talented employees. 18 68) What are some of the typical HR responsibilities of supervisors and managers? Answer: Supervisors and managers typically have responsibilities related to all the HR functions. Typical examples include: - Help define jobs - Forecast HR needs - Train, coach, and develop employees - Interview (and select) candidates - Set goals, provide feedback, and appraise performance - Recommend pay increases and promotions - Communicate policies and comply with legal requirements - Provide a motivational environment 69) CCHRA's National Code of Ethics has 7 important requirements of HR practitioners. Identify and discuss four of the requirements. Answer: 1. Competence: Maintain competence in carrying out professional responsibilities and provide services in an honest and diligent manner. Ensure that activities engaged in are within the limits of one's knowledge, experience, and skill. 2. Legal requirements: Adherence to any statutory acts, regulations, or by-laws related to HRM, as well as civil and criminal laws, regulations, and statutes that apply in one's jurisdiction. 3. Dignity in the workplace: Support, promote, and apply the principles of human rights, equity, dignity, and respect. 4. Balancing interests: Strive to balance organizational and employees' needs and interests. 5. Confidentiality: Hold in strict confidence all confidential information acquired in the course of performing one's duties. 6. Conflict of interest: Either avoid or disclose a potential conflict of interest. 7. Professional growth and support of other professionals: Maintain personal and professional growth in human resource management by engaging in activities that enhance the credibility and value of the profession. 70) What are alternative work arrangements? Identify at least 3 of the common methods. Answer: Alternative work arrangements are methods of staffing other than the traditional hiring of full-time employees. The most common methods are: • Independent contractors self-employed individuals with multiple clients. • On-call workers persons who work for an organization only when they are needed. • Temporary workers persons employed by a temporary agency. • Contract company workers employed directly by a company for a specific time specified in a written contract. 19 Answer Key Testname: C1 1) E 2) C 3) A 4) D 5) A 6) E 7) A 8) A 9) D 10) B 11) E 12) B 13) E 14) D 15) E 16) E 17) E 18) D 19) C 20) E 21) E 22) B 23) E 24) C 25) C 26) A 27) B 28) B 29) D 30) B 31) B 32) E 33) D 34) D 35) B 36) D 37) E 38) B 39) D 40) C 41) FALSE 42) TRUE 43) FALSE 44) TRUE 45) TRUE 46) FALSE 47) FALSE 48) TRUE 49) TRUE 50) TRUE 20 Answer Key Testname: C1 51) FALSE 52) FALSE 53) FALSE 54) FALSE 55) FALSE 56) TRUE 57) TRUE 58) FALSE 59) TRUE 60) FALSE 61) TRUE 62) FALSE 63) FALSE 64) 1. Workforce Planning: Identifying the numbers and types of employees the organization will require to meet its objectives. 2. Productivity Improvement: Supporting the organization's efforts to enhance productivity. 3. Expanding into Global Markets: Providing and preparing talent for a global workforce. 4. Outsourcing: Helping with a transition to outsourcing and outsourcing. 5. Mergers and Acquisitions: Assessing potential for conflict due to differences in culture and implementing the necessary people practices to sort out the differences in the two companies' practices e.g. rewards, performance management, and other HR systems. 65) 1. An aging workforce: In terms of age, the fastest growing segment will be workers aged 55+ as the baby boom generation continues to age. Young workers between the ages of 15 and 24 will actually be fewer in number. This combination of trends will cause the overall workforce to age. Aging workforce issues include retirement planning, retraining older workers, motivating workers whose careers plateaued, controlling the rising costs of benefits, and dealing with the increasing generational diversity of the workforce. 2. A diverse workforce. The labour force is growing more diverse. The four designated employment equity groups represent a strategic resource. HR practices will need to ensure that tests used to select employees are objective and unbiased; employees need flexible schedules that allow them to meet nonwork needs; training and development is needed to make employees aware of the damage that stereotypes can do; and compensation and rewards including providing benefits to accommodate the needs of a diverse workforce. 3. Skill deficiencies of the workforce. The increasing use of computers to do routine tasks has shifted the kinds of skills needed for employees. When employees lack advanced literacy and thinking skills they may be unable to perform their jobs competently and will experience difficulty adjusting to changes in the workplace. HR may need to provide training to correct skill deficiencies and ensure that employees are able to handle a variety of responsibilities, interact with customers, and think creatively. 21 Answer Key Testname: C1 66) The three HR product lines are: • Administrative services and transactions Handling administrative tasks such as processing tuition reimbursement applications and answering questions about benefits efficiently and with a commitment to quality. This requires expertise in the particular tasks. • Business partner services Developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs. For the systems to be effective, HR people must understand the business so it can understand what the business needs. Requires HR to understand the business so it can understand what the business needs. • Strategic partner Contributing to the company's strategy through an understanding of its existing and needed human resources and ways HR practices can give the company a competitive advantage. HR people must understand the business, its industry, and its competitors. 67) The four qualities are: 1. Human resources are valuable. High-quality employees provide a needed service as they perform many critical functions. 2. Human resources are rare. A person with high levels of the needed skills and knowledge is not common. An organization might spend months looking for a talented and experienced manager or technician. 3. Human resources cannot be imitated. To imitate human resources at a high-performing competitor requires one to first figure out which employees are providing the advantage and how to recruit people who can do precisely the same thing, and to set up the systems that enable those people to imitate the competitor. 4. Human resources have no good substitutes. When people are well trained and highly motivated, they learn, develop their abilities, and care about customers. Few, if any other resources can match committed and talented employees. 68) Supervisors and managers typically have responsibilities related to all the HR functions. Typical examples include: - Help define jobs - Forecast HR needs - Train, coach, and develop employees - Interview (and select) candidates - Set goals, provide feedback, and appraise performance - Recommend pay increases and promotions - Communicate policies and comply with legal requirements - Provide a motivational environment 22 Answer Key Testname: C1 69) 1. Competence: Maintain competence in carrying out professional responsibilities and provide services in an honest and diligent manner. Ensure that activities engaged in are within the limits of one's knowledge, experience, and skill. 2. Legal requirements: Adherence to any statutory acts, regulations, or by-laws related to HRM, as well as civil and criminal laws, regulations, and statutes that apply in one's jurisdiction. 3. Dignity in the workplace: Support, promote, and apply the principles of human rights, equity, dignity, and respect. 4. Balancing interests: Strive to balance organizational and employees' needs and interests. 5. Confidentiality: Hold in strict confidence all confidential information acquired in the course of performing one's duties. 6. Conflict of interest: Either avoid or disclose a potential conflict of interest. 7. Professional growth and support of other professionals: Maintain personal and professional growth in human resource management by engaging in activities that enhance the credibility and value of the profession. 70) Alternative work arrangements are methods of staffing other than the traditional hiring of full-time employees. The most common methods are: • Independent contractors self-employed individuals with multiple clients. • On-call workers persons who work for an organization only when they are needed. • Temporary workers persons employed by a temporary agency. • Contract company workers employed directly by a company for a specific time specified in a written contract. 23