Commerce 2BC3 Test Bank

(1)

Chapter 1—Changing Nature of Human Resources Management

MULTIPLE CHOICE

1. Which of the following best defines human resources management?

a. the use and coordination of human skills to ensure the profitability and survival of the organization

b. the design of the organization and its systems in order to achieve the goals of the organization

c. the supervision, monitoring, controlling, and disciplining of employees in order to achieve organizational goals

d. the policies, practices, and systems that influence how employees behave, feel, and perform to attain organizational goals

ANS: D PTS: 1 DIF: Moderate REF: 3

OBJ: 01-1 TOP: Definitional

2. Which of the following is human resources (HR) management primarily a function of? a. non-governmental organizations

b. organizations with any number of employees

c. for-profit organizations with more than 100 employees d. businesses holding federal contracts over $50 000

ANS: B PTS: 1 DIF: Easy REF: 3

OBJ: 01-1 TOP: Conceptual

3. Which form of management provides a system of policies and practices designed to influence employee behaviour and functioning to support the goals of the company?

a. personnel administration b. human resources management c. human capital management d. strategic management

OBJ: 01-1 TOP: Definitional 4. How do global forces affect HR management?

a. affected primarily in the international outsourcing of jobs b. affected in almost all of its functions

c. unaffected by global forces

d. affected primarily when the organization expands into foreign markets

ANS: B PTS: 1 DIF: Moderate REF: 3

5. Who is directly responsible for anticipating and responding to HR changes in the organization? a. specialists in HR strategic management

b. HR development professionals

c. HR management information systems professionals d. the CEO and board of directors of the organization

ANS: A PTS: 1 DIF: Easy REF: 3

(2)

6. HR management is responsible for providing enough qualified individuals to fill the jobs in the organization. Through which of the following means does it do so?

a. employment equity b. staffing

c. performance management d. strategic HR management

7. Diversity and employment equity are both tied to a larger aspect of human resources management. Which of the following are they functions of?

a. the position of the company as a forward-thinking employer

b. the values of unionized workplaces as opposed to non-unionized workplaces c. HR management information systems

d. compliance with equal employment opportunity laws and regulations

ANS: D PTS: 1 DIF: Easy REF: 5

8. Which aspect of HR management focuses on ensuring that the organization can fill jobs with appropriately qualified individuals ?

a. staffing

b. strategic planning and analysis c. development

d. diversity assessment and training

9. Which of the following HR components identifies paths and activities for individual employees within the organization?

a. staffing

b. career planning c. HR development

d. performance management

10. Which of the following activities are part of HR development? a. diversity assessment and analysis

b. performance management c. environmental scanning d. wage and salary administration

11. Which of the following costs poses a major and growing concern to HR managers in almost all organizations?

a. equalization of pay between men and women b. benefits

c. early retirement packages d. incentive pay

(3)

ANS: B PTS: 1 DIF: Easy REF: 5 OBJ: 01-1 TOP: Conceptual

12. For which of the following are employee assistance programs typically used? a. providing concierge service for employees

b. outplacing laid-off employees

c. advising employees in selection of benefit options d. helping employees with substance abuse problems

13. The HR director of Tyrone Plastics is concerned about the increasing incidence of workplace violence nationwide. Which of the following types of programs might she initiate in the company to address her concern?

a. employee rights b. employee assistance c. monitoring

d. security

OBJ: 01-1 TOP: Application

14. In which workplace settings must employee rights be specifically addressed? a. in union-free workplaces

b. in all organizations c. in unionized organizations

d. in government rather than private-sector workplaces

15. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusions into his territory by HR managers. He believes that relationships with his employees are strong and supportive, and that HR initiatives generally cause unnecessary trouble. What is off in Henry’s relationship with the HR managers?

a. Henry would be surprised to learn that every manager, including him, is an HR manager. b. Henry is probably committing major violations of company policy and wants to keep this

secret from HR management.

c. The HR function is a support function, and as Henry believes, it should not intrude on day-to-day management functions.

d. HR managers have the sole responsibility for properly implementing company policy regarding employees—Henry has failed to recognize this.

ANS: A PTS: 1 DIF: Moderate REF: 6

16. Which of the following is NOT a major HR concern of small businesses? a. potential unionization efforts

b. increasing wage costs c. increasing benefits costs d. shortages of qualified workers

(4)

17. Matt has recently joined his family’s wholesale landscape nursery business as vice president of operations. The firm employs 25 full-time employees and about 20 seasonal employees. In the past, Matt’s father handled all HR issues. Matt plans to bring the company in line with typical HR staffing levels. Which of the following options best reflects that?

a. taking on all HR duties himself as VP of operations b. adding a clerical employee to help with HR tasks c. hiring a full-time HR professional

d. delegating all HR tasks and issues to supervisors

ANS: B PTS: 1 DIF: Challenging REF: 6

18. Which are the four key types of assets in an organization? a. physical, financial, tangible, and human

b. physical, financial, intangible, and human c. physical, tangible, technological, and human d. tangible, technological, human, and knowledge

19. Which of the following assets allow all the other assets of a university to be used to offer educational services to its students?

a. administrators, professors, and other employees

b. libraries, laboratories, and technological learning facilities c. financial endowment and income

d. unique operating processes, specialized research capabilities, and other intangible assets

20. Which of the following terms best encompasses the value of all the capabilities, knowledge, skills, life experiences, and motivation that people contribute to a workforce?

a. total human resources b. human assets

c. organizational talent inventory d. human capital

21. Human resources and workforce-related expenditures can be viewed as a percentage of total company expenditures. Which of the following statements outlines the trend in this regard in the last decade? a. Costs have remained stable.

b. Costs have been declining rapidly. c. Costs have shown wide swings. d. Costs have been rising steeply.

22. The chief financial officer of McGill Tubing wants to know the contribution of McGill’s workforce toward creating value for shareholders. Which calculation-based analysis would provide this information?

(5)

a. the human capital revenue stream b. profit per employee

c. return on human capital investments d. marginal revenue generated per employee

ANS: C PTS: 1 DIF: Challenging REF: 8

23. What is human resources to a firm when the human resources function develops a unique capability that creates high value and differentiates the organization from its competition?

a. emerging asset b. critical capability c. tangible asset d. core competency

24. A rumour at the largest law firm in the city is that the partners may outsource much of the work done by paralegals in the firm to a company in India. If you were a paralegal at this firm, what would be the most appropriate way to respond and why?

a. Relax. Work of this level of professionalism cannot be outsourced to a foreign firm. b. Consider your options. Only occupations that are dying are considered for outsourcing. c. Consider your options. The firm can generate huge labour cost savings by outsourcing

your job.

d. Relax. Work that requires intimate knowledge of the Canadian legal system cannot be outsourced.

ANS: C PTS: 1 DIF: Moderate REF: 9

25. Prestige Executive Services offers companies ransom insurance policies for up to $10 million. Which of the following HR management challenges has generated this business opportunity?

a. organizational cost pressures and restructuring b. economic and technological changes

c. workforce demographics and diversity d. globalization of business

26. Which of the following occupational areas is a defining characteristic of the Canadian economy? a. industrial

b. technological c. manufacturing d. service

27. In which occupational area can be found most of the new jobs held by individuals? a. health care

b. professions

c. information technology d. services

(6)

ANS: D PTS: 1 DIF: Moderate REF: 10 OBJ: 01-3 TOP: Conceptual

28. Which of the following fields is fastest growing in occupations? a. health care

b. human resources c. manufacturing d. the public sector

ANS: A PTS: 1 DIF: Moderate REF: 10-11

29. The Conference Board of Canada would define all but one of the following as soft skillsneeded in a knowledge economy. Which is the exception?

a. computer skills b. communication skills c. flexibility

d. problem-solving skills

30. Which of the following statements makes an accurate link between the Canadian education system and the demands of the workplace?

a. Too many people with manufacturing skills are seeking jobs, making wages low in that sector.

b. Canadian schools are graduating more engineers than can be used in the economy. c. Canadian students outperform students in other, directly competitive nations in math and

science.

d. Canadian firms are concerned about the specific skills of new graduates.

31. Which of these terms encompasses temporary workers, independent contractors, and leased employees?

a. contingent workers b. part-time workers c. virtual employees

d. extra-organizational employees

32. Some businesses use contingent workers; some do not. Which of the following is NOT a reason for using contingent workers?

a. to stabilize the core workforce b. to encourage employee loyalty

c. to reduce compensation and benefit costs d. to potentially avoid legal liability for workers

ANS: A PTS: 1 DIF: Challenging REF: 12

(7)

33. A government policy seeks to ensure that all citizens can keep their identities, take pride in their backgrounds, and feel a sense of belonging. Which of the following names the policy?

a. cultural management b. cultural diversity c. employment equality d. multiculturalism

34. To which of the following conditions has the improvement in communication technology led? a. a reduction of stress for workers

b. better work–life balance for employees in professional occupations c. ease of managing temporary employees

d. an increase in the number of hours worked per employee

ANS: D PTS: 1 DIF: Challenging REF: 13

35. Which of the following HR management practices has NOT become Web based? a. recruiting

b. performance improvement counselling c. performance appraisal documentation d. benefits enrollment

36. Which of the following statements presents an accurate picture of the age factor in the workforce? a. Despite the many layoffs occurring in the last decade, the average age of the workforce is

older.

b. Because of the many early retirement programs instituted in the last decade, the average age of the workforce is younger.

c. As the workforce ages, the need for diversity management is decreasing—the workforce has psychological maturity.

d. Variation of ages in the workplace is not considered diversity in the same sense that variation by race and gender is considered diversity.

37. What are flexible hours, job-sharing, child-care referral services, and flexible leave all examples of? a. programs mandated by the Employment Equity Act

b. executive perks

c. anti-unionization measures

d. retention programs based on work–family concerns

38. Claude is the HR manager for a pharmaceuticals firm. One of his top salespersons, Agatha, has twin boys under age two. Despite the fact that Agatha has a full-time nanny, she is clearly overwhelmed by the demands of her work and her personal life. Which of the following should probably be Claude’s main concern in this case?

a. retaining Agatha as an employee

(8)

b. getting Agatha to refocus on her career through motivational training c. assessing whether Agatha will file lawsuit

d. persuading Agatha to resign without violating the Canadian Human Rights Act

39. Which of the following activities is NOT usually associated with organizational “rightsizing”? a. closing facilities

b. merging with other organizations c. displacing workers

d. increasing layers of management

40. Which of the following has been the main pressure behind restructuring, rightsizing, and mergers and acquisitions?

a. the desire to increase profits

b. obsolescence of plant and equipment c. the need to reduce costs

d. intense domestic competition

41. As HR manager of a mid-sized auto parts manufacturing plant, you have been asked to predict the impact on the employees of a 20 percent layoff of hourly workers. Which of the following predictions are you LEAST likely to include in your memo to the CEO?

a. increased turnover of survivors b. productivity surge by survivors c. potential loss of employee loyalty d. increased workload on survivors

42. Charlotte is describing her new HR position to a friend. She says that she handles most of the clerical duties involved in running the HR department, including such tasks as maintaining employee files and submitting governmental reports. Into which HR role would Charlotte’s job fall?

a. administrative b. employee advocate c. secretarial

d. operational

43. Which situation is NOT affecting the roles played by HR management within the firm? a. increasing need for high-technology workers

b. business restructuring c. cost reduction pressures d. globalization of business

(9)

44. Which of the following HR roles typically involve recruiting and selecting for current openings? a. employee advocacy

b. operational c. strategic d. administrative

45. Woodland Production Company employees more than 2000 hourly workers. The HR department is debating the introduction of Web-based technology to handle employment applications, employee benefit enrollments, and other related functions. Which HR department role will be most affected by the move to this technology?

a. administrative b. operational c. strategic

d. employee advocate

46. While one HR management role has been declining in emphasis, another has been increasing in importance. Which are the former and latter roles?

a. strategic, operational and advocate b. administrative, strategic

c. operational, administrative and advocate d. advocate, operational and administrative

ANS: B PTS: 1 DIF: Moderate REF: 17| Figure 1-4

47. Which of the following HR activities is most likely to be outsourced? a. performance management

b. benefits administration c. strategic planning d. risk management

48. What is the main reason why HR functions are outsourced? a. to eliminate internal tension

b. to provide consistent service despite staff turnover

c. to be able to focus on more strategic product development d. to save money on staffing

49. Which of the following HR roles is associated with ensuring ensure fair and equitable treatment for employees no matter what their background or circumstances are?

a. strategic b. operational c. administrative

(10)

d. employee advocate

50. As the vice president of HR for Woodland Production, you are presenting a proposal to top

management for outsourcing many of your department’s administrative HR functions to vendors. You argue that HR vendors have greater expertise than your in-house staff and that outsourcing will allow you to spend more time on the strategic aspects of HR. Which of the following should be your key selling point to top management?

a. the ability to have closer contact with HR’s clients, the employees b. the prestige of retaining a world-class vendor

c. the improvement in morale of HR staff d. the reduction in HR administrative staff

51. Which of the following activities is categorized as an advocacy aspect of HR management? a. engaging in community workforce development planning

b. resolving employee complaints about unfair treatment c. conducting new employee orientations

d. engaging in labour/management negotiations

52. HR management can reduce the number of employee lawsuits against the company. Which of the following roles is most influential in achieving this reduction?

a. administrative b. strategic c. operational d. advocate

53. Which of the following is NOT a typical HR operational activity? a. monitoring safety programs

b. partnering with top executives c. supervising compensation d. ensuring government compliance

54. Which is a key difference between operational HR management and strategic HR management? a. planning oriented versus implementation oriented

b. employee focused versus organization focused c. profit focused versus cost focused

d. pro-active versus reactive

(11)

55. In the professional and academic communities, it is a truism that HR management must be a strategic partner in organizations. Which of the following statements is supported by research?

a. Dramatic growth of the strategic HR function has occurred. b. HR spends less than one-quarter of its time on its strategic role.

c. Strategic HR has been largely eliminated from the organization and lodged in the position of the chief operating officer.

d. Over 70 percent of HR managers report that they function as full strategic business partners.

56. The top executives of an organization may truly view the top HR manager as contributing to the strategic success of the firm. Which of these requests from top management best exemplifies that perception?

a. Improve the implementation of performance appraisals for supervisors. b. Streamline the employee selection process.

c. Select a vendor for outsourcing benefits administration.

d. Evaluate potential merger candidates for organizational compatibility.

57. Which type of HR is it when professionals from different organizations work together to solve business problems they have in common?

a. professional b. collusive c. operational d. collaborative

58. Eric belongs to an informal group of HR compensation executives from various industries who meet once a month at a local restaurant to discuss problems that they all face, for example, the challenge of designing true merit pay systems. Which of these practices are Eric and his colleagues engaging in? a. cronyism

b. collaboration c. collusion d. competition

59. Which of the following terms refers to an integrated system that provides information used in HR decision making?

a. human resources information system. b. human resources management system c. human resources administrative system. d. human resources operational system.

(12)

a. to develop complete records about each employee b. to facilitate HR decision making

c. to ensure that the organization’s HR management system is stronger than its competitors’ systems

d. to allow the HR department to retain the management system function in-house rather than outsourcing it to vendors

61. Ernest, the vice president of HR for the Blue Moon motel chain, has been on the HR side of the hotel/motel industry for more than 30 years. He has become a prized partner with the top executives of the corporation, and his advice is valued by the executives. Ernest prides himself on making decisions based on his “gut” and his intuition honed over his career. Which of the following statements most likely provides an accurate description of Ernest’s relationship with a human resources management system (HRMS) at Blue Moon?

a. Due to Ernest’s efforts, Blue Moon possesses a state-of-the-art HR management system. b. Ernest will now be pressed by Blue Moon’s top executives to support his intuitive

arguments with hard data.

c. Ernest will be easily impressed and influenced by strategic arguments based on analysis of extensive HR data.

d. Ernest would appreciate the efficiency aspect of an HRMS more than its effectiveness aspect.

62. You are a consultant for an HRMS vendor, which offers a complete HRMS. You are calling on the head of HR at a potential client firm, which is still using a manual HR system, even though it has 1800 employees. To interest the potential client, your sales pitch will likely stress two things. One is your software’s ability to help with automating payroll and benefits. Which of the following is the software’s other ability?

a. to track employment equity activity

b. to allow employees to handle changes in their personnel files themselves c. to provide advanced data analysis

d. to allow the employer and your firm to be electronically linked

63. Which is the most basic application of an HRMS?

a. enabling employees to check their work schedules for the following month b. automating payroll and benefits

c. allowing employees to enrol for health benefits online

d. permitting employees to notify HR when children need to be added to health insurance

64. Which of the following aspects of HR can an organization’s initial use of an HRMS make more efficient?

a. strategic b. legal c. advocacy d. administrative

(13)

ANS: D PTS: 1 DIF: Challenging REF: 22-23 OBJ: 01-5 TOP: Conceptual

65. Which of the following is NOT an organizational use of Web-based systems? a. extended linkages

b. HR metrics c. bulletin boards d. data access

66. Employees may be allowed to enter the organization’s HR database to change their personnel records, enrol in benefit plans, and apply for posted jobs. Which of the following is a critical concern when providing self-service options?

a. overcoming internal HR management resistance to technology b. monitoring excessive employee use of the system

c. training non-computer literate employees to use the system d. maintaining security of the system

ANS: D PTS: 1 DIF: Moderate REF: 23| Figure 1-6

67. From an HR perspective, there is a compelling practical reason for an organization to maintain high ethical standards. Which of the following phrases presents that reason?

a. the ability to succeed in bids for government contracts

b. the reputation of the organization’s HR department in the profession c. the ability to attract and retain employees

d. higher salaries for HR managers

68. What does the Corruption of Foreign Public Officials Act prohibit? a. Canadian firms from engaging in bribery in foreign countries

b. Canadian firms from engaging in practices that are corrupt under the laws of the countries in which they are operating

c. Canadian firms from doing business with foreign firms that engage in corrupt practices d. foreign firms from engaging in corrupt practices in Canada

69. A not-for-profit scientific organization wishes to build a fisheries research station in a remote part of a developing nation. In order to receive a construction permit from the local government, the scientific organization also had to agree to build an elementary school. How should this situation be

characterized?

a. an instance of the corrupting influence of Canadian organizations on developing countries b. an unambiguously ethical and legal act

c. a clear example of a violation of the Corruption of Foreign Public Officials Act

d. an example of an ethical dilemma in deciding whether this action would be bribery or a benevolent act

(14)

70. Which of the following statements describes the appropriate relationship between HR and ethical behaviour in the firm?

a. HR management must focus on clearly illegal behaviours and leave ethics up to the conscience of each manager.

b. HR management is the voice of organizational ethics.

c. The HR department is largely responsible for the unethical behaviours of employees. d. The HR function is largely insulated from unethical behaviours.

71. Which types of issues pose fundamental questions about fairness and justice? a. strategic

b. global c. ethical d. legal

ANS: C PTS: 1 DIF: Easy REF: 26

72. Which of these organizations administers the most well-known certification program for HR generalists?

a. Canadian Council of Human Resources Associations b. Canadian Public Personnel Management Association c. International Personnel Management Association d. World at Work Association

OBJ: 01-7 TOP: Definitional 73. In simple terms, what does ethics deal with?

a. what is required by law

b. how standard practices and procedures are assessed c. how religious values and work intersect

d. what ought to be done

74. Which of the following fundamentally determines how ethically the employees and managers at a firm behave?

a. professional codes of ethics b. the organization’s culture

c. the church-going status of a majority of the organization’s employees

d. the relevant laws and legal guidelines applying to the organization and its industry

75. As director of HR, you are designing an ethics program for your organization. You plan to develop a written code of ethics, training for all organizational members, and means for organizational members to obtain advice on ethical situations. Which of the following represents a critical element missing from your plan?

(15)

b. a way of ensuring that the code of ethics is less restrictive than the relevant laws c. means for employees to call attention to organizational wrongdoing to governmental

agencies

d. systems for confidential reporting of misconduct

76. A committee making a promotion decision is considering two individuals for the position of vice president of HR. One candidate is a mid-level executive from the operations end of the business, a large paper-products manufacturing company; the other is the current director of compensation. What does the director of compensation most need to convince the committee of?

a. that she is an expert in legal matters pertaining to HR b. that she is familiar with all areas of HR

c. that she has extensive professional connections in the HR community d. that she understands the paper-products business

ANS: B PTS: 1 DIF: Challenging REF: 28

77. What is the name of the national umbrella organization for several provincial and specialist human resources groups in Canada?

a. International Association for Human Resources Information b. Canadian Public Personnel Management Association c. Canadian Council of Human Resources Associations d. World at Work Association

78. According to a recent U.S. study, which of the following is NOT a key competency needed by HR professionals?

a. HR technology

b. contract negotiation and administration c. strategic contribution

d. business knowledge

79. Pauline negotiates contracts between the city government and the teachers’ union. Which of these types of HR roles does she play?

a. interventionist b. technologist c. specialist d. generalist

80. Which of these titles refers to a person who is responsible for performing a variety of HR activities? a. generalist

b. technologist c. unit manager d. specialist

(16)

ANS: A PTS: 1 DIF: Easy REF: 28 OBJ: 01-7 TOP: Definitional

81. Some individuals have in-depth knowledge and expertise in a limited area of HR. Which of the following titles applies?

a. unit managers b. specialists c. generalists d. technologists

82. Relatively speaking, which of the following best puts the expected hourly earnings for an HR manager in context?

a. close to the average for occupations in the business, finance, and administrative sectors b. above average for all managerial occupations

c. below the national average d. at the national average

ANS: D PTS: 1 DIF: Moderate REF: 29| Figure 1-9

83. Which of the following represents certification of a nationally recognized level of achievement in the field of human resources?

a. HRPAD b. IMPA c. CSTD d. CHRP

84. Which of these ratings signifies the work prospects of human resources professionals? a. poor

b. excellent c. fair d. good

85. Which of the following statements best explains why HR professionals value their certification? a. It is the equivalent of a master’s degree in HR.

b. It represents their outstanding professionalism. c. They can command higher pay.

d. They need it in order to hold an exempt-level position in HR.

ANS: B PTS: 1 DIF: Moderate REF: 30-31

TRUE/FALSE

1. Human resources management is supervising, monitoring, controlling, and disciplining employees in order to achieve organizational goals.

(17)

ANS: F PTS: 1 DIF: Easy REF: 3 OBJ: 01-1 TOP: Definitional

2. HR management is exclusively concerned with activities and forces within the firm.

ANS: F PTS: 1 DIF: Easy REF: 4| Figure 1-1

3. Human resources management is a technical discipline requiring specialized skills. Accordingly, all HR activities should be carried out by HR professionals.

ANS: F PTS: 1 DIF: Moderate REF: 5

4. There is a clear division of labour between the duties of line supervisors and HR professionals.

ANS: F PTS: 1 DIF: Moderate REF: 6-7

5. Intellectual capital, an aspect of the firm’s human capital, represents the thinking, knowledge, creativity, and decision making that people in the organization contribute.

ANS: T PTS: 1 DIF: Easy REF: 7

6. The value of human capital is intangible and its contribution to the organization is not measurable, even though it is of critical importance to the organization’s success.

ANS: F PTS: 1 DIF: Moderate REF: 7-8

7. Studies have found that approximately 50 percent of total company expenditures today are related to human resources.

ANS: F PTS: 1 DIF: Easy REF: 8-9

8. An HR professional who seeks to work in international business must look for a job in a very large firm.

ANS: F PTS: 1 DIF: Easy REF: 9

9. Offshoring occurs when work that cannot be performed domestically is moved to another country.

10. Despite the growth of the service sector, the Canadian economy is dominated by manufacturing firms.

(18)

11. One consequence of the shift to a service economy is that the number of jobs requiring semi-skilled and less educated workers is expected to grow at a more rapid rate than the number of other jobs.

12. One reason for the growth in contingent workers is the potentially reduced legal liability faced by employers.

ANS: T PTS: 1 DIF: Challenging REF: 12

13. Clark employs 11 international sales representatives who communicate with him entirely by telephone and email. Clark is correct in calling them “my virtual employees.”

ANS: T PTS: 1 DIF: Moderate REF: 12

14. According to Statistics Canada, 40 percent of Canada’s labour force was born outside of the country.

15. The high level of divorce among professional couples is changing the emphasis from the management of dual-career couples to the management of working mothers.

16. As a recruiter, Joyce has noticed a number of applicants who were laid off from one of her employer’s main competitors. This competitor recently completed a major restructuring of the organization. Although Joyce has no direct information about this organization, she surmises that the restructuring was due to cost pressures. Joyce is probably correct.

17. Because the core of HR management involves working with people, the introduction of Web-based technology has had little impact on the day-to-day working lives of HR managers.

18. Most HR outsourcing is related to HR’s administrative role.

19. The top management team of Celestial Bedding is considering outsourcing some of its HR functions. Management probably expects to save money by eliminating some HR staff positions.

(19)

20. Typical operational HR functions include collecting data, complying with law, and doing HR planning.

ANS: F PTS: 1 DIF: Challenging REF: 19| Figure 1-5

21. Operational HR is essentially reactive while strategic HR is essentially pro-active.

ANS: T PTS: 1 DIF: Moderate REF: 19| Figure 1-5

22. When EconoPharm was thinking about acquiring a competing chain of discount drugstores, the vice president of HR was brought in after the decision to acquire was made. This circumstance is an example of HR as a strategic partner.

ANS: F PTS: 1 DIF: Challenging REF: 18-19

OBJ: 01-4 TOP: Application 23. HR is becoming more strategic rapidly.

24. When HR departments of firms in the same industry collaborate, there is some concern that competitive conflicts may arise.

25. The main purpose served by an HRMS in an organization is efficiency: quicker processing of data and activities with fewer HR staff.

26. When implementing an HRMS, an early goal for the system is enabling employees to access information, such as checking to see what positions are open in the organization.

27. Employee self-service in an HRMS means that employees can handle all their interactions with HR electronically without ever needing to interact face to face with an HR professional.

ANS: F PTS: 1 DIF: Challenging REF: 23

28. Firms with high ethical standards are more likely to meet long-term profit goals than firms that behave unethically.

ANS: T PTS: 1 DIF: Moderate REF: 23-24

(20)

29. A bribe to a government official will be exempt from the Corruption of Foreign Public Officials Act if the HR professional involved records the transaction as a gift.

ANS: F PTS: 1 DIF: Challenging REF: 23-24

30. With respect to HR management, ethics is primarily concerned with legal compliance to avoid “negative press.”

31. Compliance with laws will guarantee ethical behaviour.

32. A survey of HR professionals indicated that common misconduct by employees included lying to supervisors, drug or alcohol use, misrepresentation of hours worked, and favouritism in hiring and promotion.

ANS: T PTS: 1 DIF: Challenging REF: 26| Figure 1-8

33. It is fair to say that at Enron (where there were widespread incidents of corruption), the organizational culture supported unethical behaviour.

34. Because of their unique role within the organization, HR professionals are protected from organizational retaliation if they report ethical concerns to higher levels of management.

35. The competencies for being an HR professional to be a strategic contributor to the organization include a focus on efficiency, attention to details, and the ability to work with people well.

ANS: F PTS: 1 DIF: Easy REF: 28

36. Two common entry-level positions in HR are Wage and Salary Administrator and Staff Recruiter.

ANS: T PTS: 1 DIF: Easy REF: 28-29

37. An important method for an HR professional to demonstrate outstanding professionalism is to earn the CHRP designation.

(21)

38. One reason why human resources professionals should achieve CHRP is that the designation reflects a conviction that the professional practice of human resources management can safeguard the interests of employers, employees, and the public.

ESSAY

1. What challenges are facing HR managers with regard to workforce availability and quality? ANS:

In many parts of Canada, there are shortages of workers with needed skills. As a result, HR professionals are concentrating on improving recruitment, training workers, and retaining skilled workers. Canadian students are slightly above the international average in math and science, but they are behind the students from directly competitive nations. Canadian schools are not meeting the demand for graduates with degrees in engineering, computers, and health sciences. These shortages have spurred international outsourcing.

PTS: 1 DIF: Moderate REF: 10-11 OBJ: 01-3

TOP: Conceptual

2. What are the three major roles of HR management? ANS:

The administrative role focuses on clerical administration. The operational and employee advocate role focuses on the management of most HR activities and serving as the employees’ champion. The strategic role of HR focuses on HR as a business contributor and the “keeper” of organizational ethics.

TOP: Conceptual

3. Describe the major purposes of an HR management system (HRMS) in the organization. ANS:

An HRMS enhances administrative and operational efficiency. It also improves the effectiveness of the organization. Efficiencies are created in the compilation of data and the automation of paperwork. Organizational effectiveness is served by providing data for HR planning and managerial decision making.

TOP: Conceptual

4. Discuss why ethical issues permeate HR management. ANS:

Ethics deals with what “ought” to be done, not necessarily what is done. Ethical issues revolve around questions of fairness, justice, truthfulness, and social responsibility. Organizational ethics is driven by organizational culture: the shared values and beliefs of organizational members. Organizational members look to HR management as the “keeper and the voice” of organizational ethics. The HR department is often the main resource for ethics policies in the organization. The most common unethical incidents observed by HR managers include employees lying to supervisors, using drugs and alcohol, and falsifying records.

(22)

PTS: 1 DIF: Moderate REF: 25-26 OBJ: 01-6 TOP: Conceptual

5. Describe the key competencies needed by HR professionals. ANS:

In order to be a strategic partner to top management, HR managers need competencies in five basic areas: (1) strategic competencies, such as managing organizational culture, anticipating and responding to changes quickly, making strategic decisions, and connecting to market-driven and customer forces; (2) knowledge of business and the organization; (3) ability to deliver HR activities efficiently and effectively; (4) HR technology; and (5) personal and professional credibility.

PTS: 1 DIF: Moderate REF: 28 OBJ: 01-7

TOP: Conceptual

(23)

Chapter 2—Strategic HR Management and Planning

MULTIPLE CHOICE

1. Corporate executives hold a certain perspective on HR management in its strategic role, Which of the following would they see as HR’s major deficiency?

a. HR’s traditional opposition to corporate management b. the lack of specific quantifiable measures of HR activities c. HR’s “softness” as a people-oriented area

d. the lack of respect for HR managers’ professional and educational credentials

ANS: B PTS: 1 DIF: Challenging REF: 42-43

2. One type of HR process involves linking the HR function with organizational objectives so that performance will improve. Which of the following names it?

a. strategic HR management b. operational management c. employee exploitation d. manpower planning

3. Georgiana, the vice president of HR, is in a meeting with the other top-level corporate executives. They are discussing whether opening a branch in Amsterdam is a good strategy for the firm. What must Georgiana do in her role as head of HR?

a. raise the ethical issues of opening a branch in a country known for legalization of soft drugs, prostitution, and other “alternative lifestyles”

b. warn the executives against operating in the European Union due to restrictive labour laws c. meet the strategy’s requirement no matter what the current state of the company’s human

resources

d. frankly communicate whether the firm’s current human resources have the capabilities to handle such a strategy

4. According to Porter, what are the three basic organizational competitive strategies? a. risk aversion, aggressiveness, and entrepreneurial

b. global, domestic, and multinational c. vertical, horizontal, and diagonal

d. cost-leadership, differentiation, and focused

5. In which of the following business environments is a cost-leadership strategy more appropriate than other organizational strategies?

a. relatively stable b. decentralized c. dynamic

d. highly competitive

(24)

ANS: A PTS: 1 DIF: Challenging REF: 46 OBJ: 02-1 TOP: Conceptual

6. Which of the following strategies would be most appropriate in a dynamic environment where the need to find new products and new markets is continuous?

a. conglomerate b. cost-leadership c. differentiation d. global

7. Multi-Brands, Inc. “builds” its own human resources to fit its specialized needs. It takes years to train employees with the specific skills that the company requires to pursue its organizational strategy. Which of the following organizational strategies does Multi-Brands probably use?

a. entrepreneurial b. global

c. differentiation d. cost-leadership

8. An organizational strategy is focused when the company is concentrating its efforts. Which of these does NOT represent something on which the company could apply a focused strategy?

a. a particular production process b. a particular customer segment c. a limited geographical area d. a specific distribution channel

9. According to Miles and Snow’s strategy typology, what are the four basic types of competing firms within a single industry?

a. defenders, prospectors, attackers, and reactors b. defenders, attackers, reactors, and analyzers c. defenders, prospectors, analyzers, and reactors d. defenders, attackers, prospectors, and analyzers

ANS: C PTS: 1 DIF: Easy REF: 46-47

10. According to Miles and Snow, how should organizations with broad product lines that focus on product innovation and search for new markets be characterized?.

a. as reactors b. as defenders c. as prospectors d. as analyzers

ANS: C PTS: 1 DIF: Moderate REF: 46-47

(25)

11. Which of the following types of companies would be characterized by centralized authority, tight cost control, and little employee empowerment?

a. prospectors b. defenders c. reactors d. analyzers

12. IBM and Procter & Gamble operate in many different product-market segment areas, which may be either stable or variable. They adjust their strategy based on the type of area in which they operate. Which of these terms applies to IBM and Procter & Gamble?

a. reactors b. defenders c. prospectors d. analyzers

13. Which of these organizational characteristics holds true of a reactor?

a. operates in at least two different product-market areas, where one is stable and one is variable

b. values creativity, risk-taking, and innovation

c. lacks a consistent strategy, structure, or culture relationship d. focuses on improving the efficiency of ,existing operations

14. Organizations may engage in analyzing and identifying the need for and availability of human

resources. The purpose of doing this is to enable them to meet their objectives. Which of the following terms names this process?

a. human resources planning b. strategic planning

c. labour market analysis d. environmental scanning

15. Which of the following organizational events would NOT affect HR planning? a. monitoring declining quality of the community’s schools

b. opening a branch office in Johannesburg, South Africa c. making technological changes in the manufacturing process d. changing the accounting software used by the company

16. Which of the following best describes the responsibility for HR planning? a. HR planning is typically the responsibility of operating managers.

b. HR planning is mainly the responsibility of the top HR executive and subordinate staff specialists.

(26)

c. HR planning is the responsibility of the top HR executive.

d. HR planning is the responsibility of the organization’s top management.

17. Effective HR planning results in having the right people in the right numbers with the right capabilities at the right time. Which of the following phrases would best complete this assessment?

a. with the right demographics b. for the right purpose c. in the right place d. with the right attitudes

ANS: C PTS: 1 DIF: Easy REF: 48-49| Figure 2-5

18. Which of these activities is typically part of the HR unit’s responsibilities during planning? a. monitoring the HR plan to identify changes needed

b. implementing HR plans as approved by top management c. integrating HR plans with departmental plans

d. reviewing employee succession plans in relation to overall HR plan

19. Chipper, the only grandchild of the founder of a successful commercial construction firm, is taking a year’s research fellowship to study tiger genetics. Family members have held the top management positions in the firm since 1911. Chipper’s father, the present CEO, is 72 and is ill. Which of the following statements reflects an incorrect perception to this situation?

a. This business has a succession problem.

b. Years ago, this firm should have focused on attracting and retaining outsiders with key capabilities.

c. This situation is not unusual for a family firm.

d. It is time for Chipper to get serious and take over the family firm.

20. Which of the following is a top challenge faced by family-owned firms? a. tax planning

b. job creation for extended-family members c. management succession

d. anti-nepotism legislation

OBJ: 02-2 TOP: Conceptual 21. How does the HR planning process begin?

a. by forecasting the relationship between supply and demand for human resources b. by analyzing the internal inventory of HR capabilities

c. by considering the organizational objectives and strategies

d. by scanning the external environment for changes affecting the labour supply

ANS: C PTS: 1 DIF: Moderate REF: 51| Figure 2-7

(27)

22. Why is scanning the external environment especially important for HR planning? a. because of the demographic patterns of the internal workforce

b. because of the limited supply of potential employees for all jobs in the firm c. because of the need to meet certain employment equity quotas

d. because of the reality of drawing from the same labour market as all other employers

ANS: D PTS: 1 DIF: Moderate REF: 50-51

23. Which of the following government laws or regulations do NOT affect HR planning? a. tax benefits for job-training expenses

b. pension laws

c. regulations on workweek length

d. reporting requirements for workers’ compensation claims

ANS: D PTS: 1 DIF: Easy REF: 51-52

24. Which of the following would be affected by tax credits for employee day care and financial aid for education?

a. an expanding array of government rules

b. employer practices in recruiting and retaining workers c. retirement patterns

d. job security

25. If the unemployment rate declines, which of the following statements suggests the most likely result? a. Early retirement plans become more attractive.

b. Filling jobs with qualified workers becomes easier. c. The need for overtime also declines.

d. People available for work may be less educated, less skilled, or less willing to work.

26. Which of the following is a geographic trend that has forced changes in HR plans? a. the influx of highly skilled technical workers from Eastern Europe

b. the outsourcing of jobs to countries with lower wage levels c. the deterioration of inner cities

d. the movement of better educated workers to Western Canada

27. Arden Glassworks has consistently paid lower wages than the other employers in the community have. What is likely characteristic of Arden compared with other employers in the community?

a. a much lower quality workforce b. higher unit labour costs

c. more committed employees d. higher productivity

(28)

28. Which of these is NOT a trend in the composition of the workforce? a. aging

b. falling age of workforce entry c. availability of contingent workers d. outsourcing

29. Which of the following identifies what a comprehensive audit of jobs provides a basis for? a. doing human capital accounting

b. determining the effectiveness and efficiency of the company’s human resources c. forecasting what jobs will need to be done in the future

d. analyzing the capabilities of the company’s workforce

30. Where can much of the data needed for a comprehensive audit of all current jobs be found? a. employee evaluations

b. existing staffing and organizational databases c. personnel update forms completed by employees d. supervisory files

ANS: B PTS: 1 DIF: Easy REF: 53-54

31. Which of the following questions should a planner address when auditing jobs? a. Who is responsible for staffing the organization?

b. Which jobs have the highest turnover rate?

c. What is the demographic profile of the current jobholders? d. How essential is each job?

32. What is the basic source of data on current employees and their capabilities? a. employee evaluations

b. personnel update forms completed by employees c. HR records in the organization

d. supervisory files

33. An HR manager is compiling an inventory of organizational capabilities. What data on current employees would the manager NOT include?

a. work accomplishments b. age

c. number of children d. pay rates

(29)

a. It should be available only to those who have a specific use for it. b. It should be posted on the company’s intranet.

c. It should not be relied on, as it is often inaccurate and outdated. d. It should include non-job-related data.

35. Vincent, the vice president of HR, is studying the profile of the organization’s workforce. His employer is a utility company which essentially provides lifetime employment for workers. Turnover rate is low. An interesting aspect of the profile catches Vincent’s eye. He says to himself, “This must be the result of the seven-year hiring freeze we had in the 1970s.” Which of the following did Vincent probably notice?

a. an excessive number of employees in the 50–60 age range. b. a lack of young female and minority employees

c. a gap between younger workers and workers who will be retiring in the next 10 years d. an organizational profile heavily weighted toward employees with low seniority levels

ANS: C PTS: 1 DIF: Challenging REF: 53

36. Which of the following statements accurately characterizes HR forecasting methods? a. Subjective judgment has no place in modern HR forecasting.

b. Forecasting is a combination of quantitative and qualitative methods.

c. Research has shown that mathematical models are inadequate for HR forecasting. d. Complex computer simulations are the best quantitative forecasting models available.

37. Which of the following techniques for forecasting employee demand reflects a qualitative approach? a. trend analysis

b. scatter plots c. simulation models d. nominal group

38. Which of these terms pertains to using an organization’s past employment needs over several years to predict future needs?

a. regression analysis b. trend analysis c. ratio analysis d. scatter plot analysis

39. How far does an intermediate planning range usually project into the future? a. one to five years

b. three to five years c. six months to one year d. beyond five years

ANS: A PTS: 1 DIF: Easy REF: 54-55

(30)

40. Decision rules are developed about the proportion of openings in a particular job that will be covered by internal promotions versus new hires. Which of these terms best refers to such rules?

a. internal versus external placement b. placement ratio

c. fill rate

d. make versus buy ratio

41. Where should the analysis of specific openings that are likely to occur in the future always begin? a. the top positions in the firm

b. the jobs where applicants with the required KSAs are scarce c. the jobs that are easiest to fill

d. the entry-level positions in the firm

42. A clothing retailer determined the number of salespeople needed by dividing the company’s sales by the number of salespeople and then applying this to sales forecasts. What is this an example of? a. regression analysis

b. trend analysis c. simulation model d. ratio analysis

OBJ: 02-3 TOP: Application 43. Which best defines a scatter plot?

a. a representation of real situations in abstract form

b. a study of an organization’s past employment needs over a period to predict future needs c. a graphical method used to help identify the relationships between two variables

d. a statistical comparison of past relationships among a number of factors

44. A statistical relationship is ascertained between gross sales and number of salespeople among sales regions. With which forecasting technique is this activity most associated?

a. trend analysis b. regression analysis c. scatter plot

d. ratio analysis

45. Which of the following techniques would be used in sophisticated forecasting circumstances? a. scatter plot

b. trend analysis c. ratio analysis d. simulation models

(31)

ANS: D PTS: 1 DIF: Moderate REF: 57 OBJ: 02-3 TOP: Conceptual

46. Which of the following reflects a quantitative approach to forecasting? a. simulation models

b. nominal group technique c. the Delphi technique d. management forecasts

47. Which of the following methods uses the direct job and industry knowledge of managers and supervisors to project employee demand?

a. management forecasts b. the nominal group technique c. the Delphi technique

d. simulation models

48. Which of these methods is specifically useful in generating insights in highly unstructured or undeveloped areas, such as human resources planning?

a. the Delphi technique b. scatter plots

c. management forecasts d. nominal group technique

49. What statement presents a defining characteristic of the nominal group technique? a. It represents real situations in abstract form.

b. It uses the experiences of managers and supervisors to make projections and judgments. c. It brings participants together for a discussion session led by a moderator.

d. It involves repeated surveys and summaries until the experts’ opinions agree on a judgment.

50. Tools that usually include employee age, present performance rating, and potential promotability status can help to identify internal candidates for promotion. Which of the following types of forecasting tools are these?

a. organizational charts b. Markov analysis c. replacement charts d. skills inventories

51. An HR goal is to identify internal candidates who may be ready for promotion or transfer. Which of these forecasting tools will the HR department probably use first?

(32)

a. organizational charts b. skill inventories c. replacement charts d. Markov analysis

52. Which method to source employees clearly demonstrates the employee movement that can be achieved within an organization?

a. replacement charts b. Markov analysis c. skills inventories d. organizational charts

53. One method of sourcing internal candidates uses statistical analysis. Needs are predicted based on probabilities determined by the movement pattern through various jobs. Which of these terms applies to this method?

a. Markov analysis b. trend analysis c. organizational charts d. skills inventories

54. Which of the following makes a false statement about the use of Markov analysis? a. It is insensitive to multiple moves in a time period.

b. It does not consider underlying causes or changes. c. It requires a large sample size.

d. It is usually used for executive positions.

55. How do HR departments use government estimates of labour force populations and industry trends? a. to predict terminations, retirements, and deaths of employees

b. to forecast the external supply of human resources

c. to implement a human resources information system (HRIS) d. to estimate the internal supply of labour

56. Which of the following influences the internal supply of human resources? a. government regulations and pressures

b. training and development programs

c. changing workforce composition and patterns d. actions of competing employers

(33)

57. There is a “human capital crisis” in the federal government. Beyond the need for HR planning, what does this situation illustrate?

a. the fact that replacement of employees is more difficult as they age

b. the need for succession planning and the development of replacement charts

c. the fact that most of the federal government’s older workers are unskilled in the new technologies needed to be efficient and effective in the modern world

d. the mistake of hiring a large number of baby boomers in the 1970s

58. As an assistant HR manager for a large law firm, Alicia is estimating the outflows from the law firm’s current ranks of paralegals. Which of the following factors does Alicia NOT need to include?

a. pregnancies b. retirements c. promotions d. deaths

ANS: A PTS: 1 DIF: Easy REF: 62| Figure 2-13

59. Several organizational characteristics can promote retention. Which of the following does NOT drive retention?

a. characteristics of the employer b. job design and work

c. mergers and acquisitions d. employee relationships

ANS: C PTS: 1 DIF: Easy REF: 63| Figure 2-14

60. In an organizational context, which of the following terms refers to a pattern of shared values and beliefs from which members obtain meaning and determine rules for behaviour?

a. culture b. ethics c. commitment d. environment

61. According to the textbook, the “100 Best Companies to Work For” have somewhat different cultures and values, yet one factor is consistent among them. What is it?

a. work/life balancing programs

b. commitment to treating their employees well

c. work that allows employees to meet self-actualization needs d. high compensation and benefits

62. As director of HR of a medium-sized information technology consulting firm, you are most concerned about one kind of turnover because it will have a significant impact on retention of remaining staff. The turnover of which group of employees most concerns you?

a. middle management employees

(34)

b. employees who are popular with many co-workers c. high-calibre, top performers

d. low-performing, but highly motivated employees

63. Which of the following have organizations found to be the cause of high employee turnover rates in the first few months of employment?

a. uncompetitive pay scales

b. lack of recognition for performance c. inadequate selection screening d. work and family conflicts

64. Which of the following statements presents a misconception about employee workloads? a. Almost half of employees feel they are overworked.

b. The average worker works slightly more than 40 hours a week at his/her main job. c. Technology has eased the burden of work for Canadian employees.

d. Overworked employees are more likely to look for another job.

65. The executive committee of the firm is concerned with the high rate of turnover among their most promising young new hires. They ask you, as the new director of HR, to suggest how to retain these individuals. Which of these responses would you suggest as the most appropriate to this retention problem?

a. employee recognition programs b. a formal mentoring program c. immediate promotions d. hiring bonuses

ANS: B PTS: 1 DIF: Moderate REF: 65-66

66. What role, if any, can orientation practices play in retention?

a. Well done orientation can increase employee retention by as much as 25 percent.

b. Orientation can affect retention, but only if new employees are assigned to mentors upon entry to the organization.

c. “Realistic” orientation encourages newly hired employees to quit immediately when they perceive that the organization is a poor fit for them.

d. Orientation practices have little effect on retention of employees.

ANS: A PTS: 1 DIF: Moderate REF: 65-66

67. Competitive pay is consistent with individuals’ perceptions of their capabilities, experience, and performance. Which of the following is also characteristic of competitive pay?

a. It is within 15 percent of the market rate. b. It is within 10 percent of the market rate. c. It is at the exact market average.

d. It is within 20 percent of the market rate.