Deck 2: Trends in Human Resource Management

Question 1

Rajat, an Indian citizen, works for an automobile company in India. Currently, he is in the United States to work on a project at the company's office in Pittsburgh, Pennsylvania. In this scenario, Rajat is regarded as an expatriate.

Answer 1

True

Question 2

A large gap exists between the social system and the technical system in high-performance work systems.

Answer 2

False

Question 3

Early retirement programs are one of the most effective approaches to downsizing.

Answer 3

False

Question 4

InTime Corp., a major watch manufacturer, purchases Antec Inc., a smaller company that makes watch bands. Following this purchase, the watch band operations are performed by the Antec Division of InTime Corp. This scenario is an example of an acquisition.

Question 5

When two companies merge, HRM plays an important role that includes preparing employees to resolve conflicts.

Question 6

The processing and transmission of digitized human resource information is called electronic human resource management.

Question 7

Employees' job security has increased as a result of the new psychological contract.

Question 8

Skilled knowledge workers generally do not have job opportunities in a slow economy.

Question 9

Virtual teams rely on communications technology such as videoconferences, e-mail, and cell phones to keep in touch and coordinate activities.

Question 10

Individuals who arrive in the United States without meeting the legal requirements for immigration or asylum are referred to as undocumented immigrants.

Question 11

The use of employee empowerment has shifted the recruiting focus away from general cognitive and interpersonal skills toward technical skills.

Question 12

Total quality management is intended to bring about a continuous process of quality improvement.

Question 13

Traditional management thinking treated human resource management primarily as a means to support a company's strategy.

Question 14

Total quality management proposes that every employee in the organization receive training in quality.

Question 15

A Chicago-based company shifts its warehouses and operations to a low-rent area that is 50 miles away. This is an example of offshoring.

Question 16

Successful organizations treat all their workers as knowledge workers.

Question 17

Under the new type of psychological contract, organizations expect employees to contribute time, effort, skills, abilities, and loyalty in return for job security and opportunities for promotion within the organization.

Question 18

Parkers Appliances wants to improve the quality of and lower the costs in its service department. A strategy being considered involves directing technicians on exactly how to complete service calls, which should improve customer service in addition to lowering labor costs. In addition, the technicians will work under a contract so the company doesn't have to pay the employer's share of Social Security for those workers. Is this a possible strategy for Parkers Appliances to employ?

Question 19

The members of Generation X are characterized by their comfort with the latest technology, and the need to be noticed, respected, and involved.

Question 20

When two firms in one industry join together to hold a greater share of the industry, it represents a consolidation.

Question 21

Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future. Her colleague Owen argues that organizations will not have to increase their spending on employee health care benefits. Which statement weakens Owen's argument?

A) The labor force is expected to grow at a greater rate by 2026 than at any other time in U.S. history.
B) The largest proportion of the labor force is expected to be in the 16- to 25-year age group.
C) The fastest-growing age group is workers 16-25, who are prone to having accidents.
D) The fastest-growing share of the workforce is at least 55 years old.
E) The total cost of labor in the United States will decrease considerably in the near future.

Question 22

Baker Corp., a financial services company, specializes in customers' preferences and cost-efficient processes. They also encourage self-managing teams that make all decisions regarding business development and the sale of services to their customers. The firm ensures that there is a good fit between its work system and its people. This scenario implies that Baker has a

A) workforce analysis system.
B) high-performance work system.
C) supply chain system.
D) total quality management system.
E) holistic management system.

Question 23

Given the increasing use of computers to do routine tasks, which skill is most likely to be actively sought by U.S. employers today?

A) physical strength
B) mastery of a particular piece of machinery
C) interpersonal skills
D) ability to perform routine tasks
E) ability to work with a tool

Question 24

Sky Meadows Health Care Systems set up a program that encourages employees to share their ideas for patient satisfaction and cost savings. After a year of collecting these ideas, the HR department conducted an employee survey and learned that its employees did not feel very empowered. What else should Sky Meadows do to improve the sense of empowerment?

A) Hold employees accountable for their results.
B) Train employees to use information resources.
C) Show that management is listening to the ideas and implementing the valuable ones.
D) Train managers to link employees to resources within and outside the organization.
E) Encourage employees to interact with staff throughout the organization.

Question 25

Samuel Homes wants to expand rapidly by building homes in major markets throughout the United States. Which forecast by the Bureau of Labor Statistics presents the most significant challenge to rapid expansion?

A) whites continuing to be the largest racial group
B) more women participating in the paid labor force
C) Asian-Americans being the fastest-growing racial group
D) greater racial and ethnic diversity
E) a slowing growth rate for the U.S. civilian labor force

Question 26

The growth in e-commerce and the information economy has led to an increase in the demand for employees in

A) technical jobs.
B) mining and resource extraction.
C) agriculture.
D) service occupations.
E) manufacturing.

Question 27

Sean works at Rowen Corp., an environmentally conscious apparel manufacturing company. He primarily focuses on the tastes and needs of the firm's customers. He achieves this by managing a team that regularly interacts with customers through various promotional activities and events. He also provides insights on how to produce eco-friendly outfits through his specialized knowledge of cost-efficient manufacturing processes. This implies that Sean

A) is an HR professional.
B) encourages centralized decision making.
C) is a knowledge worker.
D) encourages a narrow business focus.
E) belongs to the external labor market.

Question 28

Which statement is true of employee empowerment?

A) Proper training must be provided only to supervisors so that they can exert their wider authority.
B) Managers should ensure that employees are not linked to resources outside the organization, such as customers.
C) Employee empowerment shifts the recruiting focus away from cognitive and interpersonal skills toward general technical skills.
D) Employee empowerment prevents holding employees accountable for the products and services they developed.
E) Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

Question 29

The external labor market consists of

A) contract workers in the organization.
B) current employees of the organization.
C) individuals who are actively seeking employment.
D) employees who have direct contact with customers.
E) employees of the immediate competitors of the organization.

Question 30

In high-tech industries, such as computer software development, employers press the federal government for immigration laws that allow for a greater supply of foreign-born workers. What is the main reason these companies cite for that effort?

A) There is a lack of adequate technology in the United States.
B) Undocumented immigrants work harder than U.S. citizens.
C) Qualified technical workers are scarce in the United States.
D) U.S. workers do not want this physically demanding work.
E) The size of the U.S. workforce is declining.

Question 31

How has the requirement for creating high-performance work systems changed?

A) There is a drive toward low-cost strategy in the labor market.
B) Employees prefer implementation of a 40-hour workweek.
C) Competitors are looking for ways to standardize prices in their respective industries.
D) Employers are looking for ways to tap people's creativity and interpersonal skills.
E) Customers are demanding standardized products over customized products.

Question 32

Fred is the project manager. He encourages his team members to have brainstorming sessions before initiating a project to determine the best method to deliver positive results. He provides his team members with complete authority to execute all production tasks independently. This scenario indicates that Fred promotes

A) centralized decision making.
B) risk aversion.
C) downsizing.
D) outsourcing.
E) employee empowerment.

Question 33

Which term refers to organizations that have the best possible fit between their social system and their technical system?

A) workforce analysis systems
B) holistic management systems
C) supply chain systems
D) high-performance work systems
E) total quality management systems

Question 34

Dino Inc., a marketing firm, has employees who work in different cities in different time zones around the country. They coordinate their work efficiently with the help of technology, such as videoconferencing, mobile phones, and e-mail, for the production of marketing activities. Which statement is true of Dino Inc.?

A) It has a vertical organizational structure.
B) It does not hold employees accountable for products and services.
C) It encourages virtual teams.
D) It encourages centralized decision making.
E) It has self-employed individuals with multiple clients.

Question 35

Which statement is correct regarding skilled knowledge workers?

A) They do not have considerable autonomy to make decisions.
B) They are most likely to experience a lack of opportunities in a slow economy.
C) They are not easily replaced because they own the knowledge that the company requires to produce its products.
D) They are not expected to be technically efficient and are only involved in direct interactions with customers.
E) They do not have a lot of job opportunities because employers can simply order these employees to perform tasks.

Question 36

Name the agency that is responsible for tracking changes in the composition of the U.S. labor force and forecasting employment trends.

A) the National Statistics Association
B) the Occupational Outlook Bureau
C) the U.S. Census Bureau
D) the Bureau of Economic Analysis
E) the Bureau of Labor Statistics

Question 37

Which scenario exemplifies an individual in the external labor market?

A) Sarah, a contract worker, working for a certain period specified in a written contract
B) Drew, a temporary worker, being paid by a company for his services
C) Morgan, an engineering graduate, looking for a job
D) Silas, an employee, going through training
E) Jamaal, an employee, securing his financial services certification

Question 38

What is a characteristic of current-day high-performance work systems?

A) mismatches in technical system and social system
B) employee empowerment in decision making
C) increase in individual assignments
D) centralized decision making
E) reduced reliance on knowledge workers

Question 39

Managing cultural diversity involves

A) forming different pay structures for various groups.
B) creating separate career tracks for employees with families.
C) avoiding the use of affirmative action policies.
D) reducing cultural diversity by selective hiring.
E) encouraging career development for women and minorities.

Question 40

Identify the correct statement regarding the composition of the U.S. labor force during the projected 2016-2026 period.

A) The labor force is expected to grow at a greater rate than at any other time in U.S. history.
B) The largest proportion of the labor force is expected to be in the 16- to 25-year age group.
C) The segment of the workforce nearing retirement age will hold steady.
D) Despite a small increase in the number of young workers, the overall workforce will be aging.
E) The total workforce of the United States will considerably decrease.

Question 41

According to the core values of total quality management,

A) the progress of employees should be measured through self-evaluation.
B) external customers should not be given any importance while developing any process.
C) only key personnel should receive training in quality.
D) errors in a product or service should be prevented before occurrence.
E) internal customers should be valued more than external customers.

Question 42

What is necessary for the success of employee empowerment?

A) The jobs must be designed in such a manner that the managers have complete control over business processes.
B) Employees must be properly trained to exert their wider authority and use information resources such as the Internet.
C) Pay and other rewards should reflect employees' loyalty to the organization and not their authority.
D) Employers should provide feedback only when employees resign and are about to leave the organization.
E) Employers should create jobs that minimize the need for the employees to come up with innovative ideas and solutions.

Question 43

In what way does teamwork make work more significant?

A) It centralizes authority so workers do not have to make decisions.
B) Team members have less authority, so they can relax.
C) Teams get to work on fast-moving assembly lines.
D) Team members contribute to quality and assume many activities traditionally reserved for managers.
E) Teams spare employees from having to work directly with customers.

Question 44

Which of the following reflects a core value of total quality management?

A) providing quality training to specific employees
B) detecting errors and correcting them as they appear in an error-prone product or service
C) developing generalized methods and processes that focus only on meeting the needs of external customers
D) encouraging cooperation with vendors, suppliers, and customers to improve quality
E) measuring an employee's progress based on how productive the employee appears

Question 45

A chemical company buying a medical equipment manufacturing company is an example of

A) an acquisition.
B) a partnership.
C) a consolidation.
D) a joint venture.
E) a strategic alliance.

Question 46

Connor Cell, a large-scale cell phone manufacturer, buys Minnow Inc., a small cell phone manufacturer, to secure a greater share of the cell phone industry. This scenario exemplifies

A) a consolidation.
B) a partnership.
C) downsizing.
D) a merger.
E) a strategic alliance.

Question 47

The specific ways in which human resource professionals support an organization's strategy vary according to

A) their level of involvement and the nature of the strategy.
B) the location of the organization's corporate headquarters.
C) the government regulations of the countries in which the organization does business.
D) the mastery of a particular piece of machinery among the employees of the organization.
E) the organization's market share in the industry.

Question 48

Clark Corp., an automobile manufacturer, purchases Forward Inc., a company that produces auto parts and accessories. This scenario exemplifies

A) consolidation.
B) a partnership.
C) an acquisition.
D) a joint venture.
E) a strategic alliance.

Question 49

If two firms in one industry join to hold a greater share of the industry, it will be referred to as

A) a consolidation.
B) a takeover.
C) an acquisition.
D) a conglomerate.
E) assimilation.

Question 50

How has the use of employee empowerment affected the recruitment process in the United States.?

A) It has enhanced the need for people with working knowledge of operating different kinds of machinery.
B) It has substantially increased employment opportunities for workers with less education.
C) It has shifted the focus away from technical skills to general cognitive and interpersonal skills.
D) It has significantly reduced recruitment costs by using low-cost strategies, though it hinders innovation.
E) It has made the recruitment process less time-consuming.

Question 51

Phineas Corp. has made a name for itself by following long-standing methods to manufacture wooden furniture. Recently, competitors using more modern technology have appeared in the furniture market, and Phineas has found its business suffering as a result. Using a TQM approach, what might help Phineas Corp. improve?

A) Phineas should firmly resist engaging in any risk taking, instead continuing to follow its traditional methods and processes.
B) Phineas management should not involve subordinates when looking to solve the corporation's problems.
C) Phineas should create an atmosphere that promotes innovation.
D) Phineas should ignore its customer needs and requests.
E) Phineas should provide quality training only to those in top management.

Question 52

Miller Inc. is a large corporation preparing to acquire GrowIt, a start-up business. Miller has many policies and procedures based on years of experience. Employees at GrowIt are used to figuring out the best practices as they go along. How can Miller's HR professionals help the company prepare for the acquisition to succeed in spite of these differences?

A) by replacing GrowIt's employees with new employees who will follow rules
B) by reassuring everyone that any differences will disappear after the acquisition
C) by identifying the differences and developing employees' skills in conflict resolution
D) by planning systems to ensure there are no conflicts following the acquisition
E) by training employees in how to set up new HR systems

Question 53

Filerton Inc. produces large quantities of products for their customers within tight deadlines. Recently, customers have been returning their products to Filerton, citing errors and defects in the items they have received. Which total quality management core value does Filerton need to employ to correct this issue?

A) Filerton needs to promote cooperation with vendors, suppliers, and customers.
B) Filerton managers need to measure progress.
C) Filerton needs to ensure quality is designed into their products so errors are prevented from occurring.
D) Filerton needs to hold down costs.
E) Filerton needs to employ methods to meet the needs of internal customers.

Question 54

Lennon, the branch manager of a local bank, wants to initiate a teamwork system because he believes it will improve the performance of the branch. Which statement provides valid support for Lennon's idea?

A) Teamwork encourages centralized decision making, which will lower costs.
B) Teamwork eliminates the need for quality control.
C) Teamwork makes work motivating for employees and helps reduce labor costs.
D) Teamwork simplifies each job to a few tasks, reducing errors.
E) Teamwork reduces errors because team members must communicate face-to-face.

Question 55

Hutch Inc., a software company, uses an approach in which software developers and programmers interact directly with customers. The team asks the customers for their requirements, develops a sample, and sends it to them for feedback. The team continues production based on the feedback given by their clients. The firm spends less time on negotiating contracts and documenting processes. This scenario implies that Hutch is using which approach?

A) just-in-time
B) total quality management
C) agile
D) downsizing
E) outsourcing

Question 56

Brady works at a machine production facility assembling small parts in a specialized division. In addition to his regular job duties, Brady works in tandem with his other coworkers to schedule work, select new team members, and carry out multiple assembly tasks. This style of work is best described as

A) centralized.
B) a virtual team.
C) teamwork.
D) agile development.
E) knowledge work.

Question 57

What is a challenge for human resource management during mergers?

A) scrutinizing balance sheets
B) evaluating the financial worth of the new company
C) developing competitively priced products
D) developing conflict resolution skills
E) sustaining the brand image of the company

Question 58

Vinzo Pharmaceuticals and Aurora Medicines combined their businesses to create a new company, Aurora Pharmaceuticals Inc. This is an example of a(n)

A) acquisition.
B) takeover.
C) partnership.
D) strategic alliance.
E) merger.

Question 59

What occurs when two companies join forces and become one entity?

A) an acquisition
B) a merger
C) a takeover
D) a joint venture
E) a strategic alliance

Question 60

Tasty Treats, a cookie manufacturer, combines with Minty Goodies, a chocolate manufacturer, to form a company called Yummy, Inc. This scenario illustrates a(n)

A) consolidation.
B) partnership.
C) acquisition.
D) merger.
E) strategic alliance.

Question 61

What is the most common reason why U.S. organizations hire employees in foreign countries?

A) lack of technology in the United States.
B) lack of demand for their products in the United States.
C) poor quality of labor in the United States.
D) governmental pressure
E) low cost of labor in foreign countries

Question 62

Fisher Inc., a cell phone manufacturer, has its assembly operations performed by Morton Corp., a firm that deals exclusively in assembling products for other companies. This scenario indicates that Fisher Inc. engages in the practice of

A) outsourcing.
B) reengineering.
C) downsizing.
D) benchmarking.
E) acquiring.

Question 63

The HRM function during downsizing is to terminate the workers who

A) are performing multiple organizational roles.
B) are less valuable in their performance.
C) are a part of the external labor force.
D) are older than the other employees.
E) are being paid the highest salaries.

Question 64

Which statement best describes offshoring?

A) It is the practice of having another company provide services.
B) It refers to moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.
C) It is a method of staffing other than the traditional hiring of full-time employees.
D) It is a complete review of the organization's critical work processes to make them more efficient and able to deliver higher quality of products and services.
E) It refers to acquiring a new company in a distant location or another country in order to acquire higher market share or growth.

Question 65

When an organization undertakes a complete review of its critical work processes to make them more efficient in an effort to deliver higher quality, it is engaging in

A) outsourcing.
B) offshoring.
C) reengineering.
D) greenfield venturing.
E) codetermining.

Question 66

The practice of having another company provide services is known as

A) benchmarking.
B) downsizing.
C) codetermining.
D) outsourcing.
E) reengineering.

Question 67

Which statement is true about downsizing?

A) HRM cannot, and should not, inform all employees why downsizing is necessary.
B) HRM should withhold information regarding downsizing rather than maintain open communication with remaining employees.
C) Downsizing is associated with positive stock returns.
D) Downsizing results in higher profitability following layoffs.
E) HRM can provide downsized employees with outplacement services to help them find new jobs.

Question 68

During downsizing, the HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance. What is a reason for this being difficult to achieve?

A) The definition of "less valuable" is fluid and hard to define.
B) Downsizing companies tend to have a strong, interconnected hierarchy.
C) The best workers may leave before the organization lays off anyone.
D) Voluntary turnover is encouraged for all levels of employees.
E) Decision making has become decentralized, leaving no department with the power to reduce the workforce.

Question 69

Fuller Corporation recently undertook a reengineering strategy to increase the efficiency of its processes. According to your text, will reengineering have any effect on Fuller's HR department?

A) No; the HR department will continue to accomplish its goals as it always has.
B) Yes; the structure of pay and benefits will have to be redesigned.
C) Yes; employees will require training, but only those in the top managerial positions.
D) Yes; new employees with the same skill sets as current workers will need to be hired.
E) No; employee levels will stay the same, with none being hired or laid off.

Question 70

As part of a company-wide business strategy, Smith Inc. conducts a comprehensive examination of its critical work techniques to increase their efficiency. The results of the examination are used to create a strategy to provide high-quality goods and services to the firm's customers. Which HRM practice is Smith Inc. using?

A) outsourcing
B) reengineering
C) downsizing
D) merger
E) acquisition

Question 71

Companies are finding that to survive they must contend in international markets as well as fend off foreign competitors' attempts to gain ground in the United States. What would help businesses in the United States meet these challenges?

A) They must focus on developing domestic markets rather than on developing global markets.
B) They must hire only from a domestic labor pool.
C) They must prepare employees for global assignments.
D) They must eliminate reshoring-reestablishing operations in North America.
E) They must reduce the workforce with a "grenade" approach-by eliminating an entire group of employees.

Question 72

Xeon Inc., a maker of chocolate products, assigns its packaging and labeling to First Choice U.S.A., a firm that specializes in packaging and labeling other companies' products. Which HRM practice is Xeon Inc. using in this scenario?

A) acquiring
B) reengineering
C) downsizing
D) benchmarking
E) outsourcing

Question 73

Employees who take assignments in other countries are called

A) host-country nationals.
B) immigrants.
C) external employees.
D) expatriates.
E) emigrants.

Question 74

EnTech Inc., an electronics manufacturer, is headquartered in Florida. The firm shifted its operations from Florida to China due to lower labor costs and the availability of required skills in China. This scenario indicates that EnTech engaged in the practice of

A) downsizing.
B) reengineering.
C) offshoring.
D) benchmarking.
E) acquiring.

Question 75

Mable Textiles, a garment manufacturing company, implements a new technology to improve the speed of its production process. To do this effectively, the company decides to train its employees on how to use this new process. The company also implements new quality checks and efficiency measures, reducing the costs of production while delivering better quality products. This process of making changes to vital company technology to make it more efficient is known as

A) outsourcing.
B) codetermining.
C) downsizing.
D) hedging.
E) reengineering.

Question 76

When large U.S. software companies open facilities in developing countries to take advantage of the highly skilled labor available there at lower pay rates, they are engaging in

A) consolidation.
B) nationalization.
C) crowdsourcing.
D) codetermining.
E) offshoring.

Question 77

A downsizing strategy at City Corp. has resulted in negative stock returns and lower profitability following the layoffs. Which statement best explains the reason for these negative results at City Corp.?

A) Downsizing tends to eliminate good performers instead of poor performers first.
B) Downsizing demands the HR department have a third-party vendor provide services, which results in lower revenues.
C) Downsizing conducts a complete review of the organization's critical work processes, which results in heavy expenditures.
D) The HRM of a firm must provide downsized employees with multiple stock options.
E) When labor costs fall after a downsizing, sales per employee also tend to fall.

Question 78

What is true of early retirement programs that are used as a method of downsizing?

A) They are the most effective.
B) They are linked to greater employee suffering and distress.
C) They offer a better alternative to the "grenade" approach.
D) They help in distinguishing between good and poor performers.
E) They are humane.

Question 79

Which observation about reengineering is true?

A) It is primarily concerned with production processes.
B) Critical processes are not altered during this process.
C) Rapidly changing customer needs and technologies necessitate reengineering.
D) It has no impact on human resource practices and systems.
E) Retaining the current work processes with minimal change requires reengineering.

Question 80

At Your Service Inc. is a consumer goods company that provides the option of door-to-door delivery. The company partners with a packaging company for transporting its goods to the customers. This is an example of

A) cause marketing.
B) outsourcing.
C) reengineering.
D) disinvesting.
E) downsizing.