Deck 1: Human Resource Management: Gaining a Competitive Advantage

Question 1

ISO 9000 certification is an integral component of W. Edwards Deming's quality control process.

Answer 1

False
Explanation: The ISO 9000 is a family of standards related to quality (ISO 9000, 9001, 9004, and 10011). The ISO 9000 quality standards address what the company does to meet regulatory requirements and the customer's quality requirements while striving to improve customer satisfaction and continuous improvement. The standards represent an international consensus on quality management practices.

Question 2

The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance.

Answer 2

True
Explanation: The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance: organizations are spending millions of dollars each year to comply with regulations under the Sarbanes-Oxley Act, which imposes criminal penalties for corporate governing and accounting lapses, including retaliation against whistle-blowers reporting violations of Security and Exchange Commission rules.

Question 3

HR functions related to areas such as employee development, performance management, and organizational development are outsourced most frequently.

Answer 3

False
Explanation: Outsourcing refers to the practice of having another company (a vendor, third party or consultant)provide services. The most commonly outsourced activities include those related to benefits administration (e.g., flexible spending accounts, health plan eligibility status), relocation, and payroll.

Question 4

Evidence-based HR provides managers with data to make decisions, instead of just relying on intuition.

Question 5

Companies have historically looked at HRM as a means to contribute to profitability, quality, and other business goals through enhancing and supporting business operations.

Question 6

Stakeholders of a company are shareholders, the community, customers, employees, and all of the other parties that have an interest in seeing that the company succeeds.

Question 7

The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a strategic business partner, change agent, and employee advocate are increasing.

Question 8

A learning organization places the highest emphasis on completion of formal employment training.

Question 9

To be effective, balanced scorecards must be customized by companies to fit different market situations, products, and competitive environments.

Question 10

Corporate cultures within companies that successfully implement TQM typically emphasize individualism, hierarchy, accountability, and profits.

Question 11

Because the workforce is predicted to become more uniform in terms of age, ethnicity, and racial background, it is likely that one set of values will characterize all employees.

Question 12

Cultural diversity can provide a company competitive advantage regarding problem-solving.

Question 13

The human resource department is most likely to collaborate with other company functions on outplacement, labor law compliance, testing, and unemployment compensation.

Question 14

The balanced scorecard should not be used to link the company's human resource management activities to the company's business strategy.

Question 15

The three product lines of HR include administrative services and transactions, business partner services, and strategic partner roles.

Question 16

Companies are now more and more interested in using intangible assets and human capital as a way to gain an advantage over competitors.

Question 17

Advances in technology have allowed HR services to be offered more on a self-service basis than in the past.

Question 18

The skills and motivation of a company's internal labor force determine the need for training and development practices and the effectiveness of the company's compensation and reward systems.

Question 19

The use of alternative work arrangements which include independent contractors, on-call workers, temporary workers, and contract company workers is shrinking.

Question 20

The psychological contract describes what an employee expects to contribute and what the company will provide to the employee in return for these contributions.

Question 21

Which of the following is true about a cultural steward?

A)Facilitates change
B)Recognizes business trends and their impact on the business
C)Implements workplace policies conducive to work environment
D)Develops talent and designs reward systems
E)Understands how business makes money

Question 22

_____ involves usage of quantitative and scientific methods to analyze data from human resource databases.

A)Workforce analytics
B)Statistical analytics
C)Quantitative analytics
D)Calculative analytics
E)Scientific analytics

Question 23

Giving employees online access to information about HR issues such as training, benefits, and compensation is called _____.

A)outsourcing
B)self-service
C)learning organization
D)strategic planning
E)continuous learning

Question 24

Which of the following is true about an operational executor?

A)Facilitates change
B)Recognizes business trends and their impact on the business
C)Implements workplace policies conducive to work environment
D)Develops talent and designs reward systems
E)Understands how business makes money

Question 25

One of the disadvantages of technology is that it does not allow older workers to postpone retirement.

Question 26

E-HRM is more applicable to practices associated with recruiting and training than those associated with analysis and design work, selection, and compensation and benefits.

Question 27

Every business must be prepared to deal with the global economy.

Question 28

Compensating human resources involves measuring employees' performance.

Question 29

Which of the following HR responsibilities include employee assistance programs and helps employee with relocation and outplacement?

A)Employee and community relations
B)Strategic planning
C)Compensation
D)Benefits
E)Employee services

Question 30

Which of the following is true about administrative services and transactions?

A)It involves developing effective HR systems and helping implement business plans and talent management.
B)It emphasizes on knowing the business and exercising influence.
C)It emphasizes on the knowledge of HR and of the business and competition.
D)It contributes to business strategy based on considerations of human capital.
E)It deals with practices like compensation, hiring, and staffing.

Question 31

Which of the following HR responsibilities include attitude surveys, publications, labor law compliance, and discipline?

A)Employee and community relations
B)Strategic planning
C)Compensation
D)Benefits
E)Employee services

Question 32

_____ refers to a company's ability to maintain and gain market share in its industry.

A)Outsourcing
B)Competitiveness
C)Self-service
D)Empowerment
E)Lean thinking

Question 33

Traditionally, the HRM department was primarily a(n)_____.

A)proactive agency
B)finance expert
C)employer advocate
D)administrative expert
E)payroll expert

Question 34

An HR dashboard is a series of indicators that managers and employees have access to on the company intranet or human resource information system.

Question 35

Which of the following HR responsibilities include international human resources, forecasting, planning, and mergers and acquisitions?

A)Community relations
B)Benefits
C)Strategic planning
D)Production and operations
E)Recruiting

Question 36

_____ refers to the policies, practices, and systems that influence employees' behavior, attitudes, and performance.

A)Total quality management
B)Financial management
C)Human resource management
D)Production and operations management
E)Competency management

Question 37

Which of the following is true about an organizational designer?

A)Facilitates change
B)Recognizes business trends and their impact on the business
C)Implements workplace policies conducive to work environment
D)Develops talent and designs reward systems
E)Understands how business makes money

Question 38

Which of the following is true about a business ally?

A)Facilitates change
B)Recognizes business trends and their impact on the business
C)Implements workplace policies conducive to work environment
D)Develops talent and designs reward systems
E)Understands how business makes money

Question 39

The practice of having another company provide services traditionally associated with the administrative role of HR is known as:

A)e-commerce.
B)empowering.
C)contracting.
D)benchmarking.
E)outsourcing.

Question 40

Which of the following is true about a strategic architect?

A)Facilitates change
B)Recognizes business trends and their impact on the business
C)Implements workplace policies conducive to work environment
D)Develops talent and designs reward systems
E)Understands how business makes money

Question 41

Which of following is true about lean thinking?

A)It is a way to do more with less effort, time, equipment, and space.
B)It is a way to compete for quality awards and certification.
C)It includes offering no-frills goods and services to customers.
D)It is working for zero inventories.
E)It results in moving employees to avoid production wastage.

Question 42

Trade secrets is an example of _____ capital.

A)social
B)customer
C)human
D)intellectual
E)financial

Question 43

A(n)_____ contract describes what an employee expects to contribute and what the company will provide to the employee for these contributions.

A)employer
B)employee
C)psychological
D)job
E)official

Question 44

Which of the following corresponds to a technological competitive challenge that influences a U.S company?

A)Expanding into foreign markets
B)Placing increased value on human capital
C)Providing a return to shareholders
D)Preparing employees to work in foreign locations
E)Developing e-commerce

Question 45

The skills and motivation of a company's _____ labor force determine the need for training and development practices and the effectiveness of the company's compensation and reward systems.

A)projected
B)secondary
C)external
D)internal
E)administrative

Question 46

According to the financial perspective of the balanced scorecard, which of the following questions should be answered?

A)How do customers see us?
B)Can we continue to improve and create value?
C)What must we excel at?
D)How do we look to shareholders?
E)What strategy must we employ?

Question 47

Mentoring relationships is an example of _____ capital.

A)social
B)customer
C)human
D)intellectual
E)financial

Question 48

Increasingly, companies are trying to meet shareholder and general public demands that they be more ethically, and environmentally responsible. Thus, companies are recognizing the importance of _____.

A)a balanced scorecard approach to business
B)diversity
C)total quality management
D)social responsibility
E)cultural responsibility

Question 49

Which of the following is true about the balanced scorecard?

A)It is similar to most measures of company performance.
B)It uses indicators important to the company's strategy.
C)It is a standardized instrument of company performance.
D)It should not be applied to HR practices.
E)It is one of the measures of traditional performance for the company.

Question 50

Implementation of _____ is a companywide effort to continuously improve the ways people, machines, and systems accomplish work.

A)six sigma
B)total quality management
C)quality control
D)process decision program chart
E)activity network diagram

Question 51

_____ refers to the ability of a company to survive and succeed in a dynamic competitive environment.

A)Outsourcing
B)Empowerment
C)Sustainability
D)Resource management
E)Stability

Question 52

Which one of the following is true about the Six Sigma process?

A)The objective of the process is to create a total business focus on supervising its employees.
B)Termination is an important component of the process.
C)The process is one of seven categories evaluated within the Malcolm Baldrige Quality Award.
D)The process involves measuring, analyzing, improving, and controlling processes.
E)The six sigma process includes six employee measurement procedures.

Question 53

Empowering is defined as:

A)the movement of women and minorities into managerial positions.
B)giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.
C)leading employees by the strength of one's charisma.
D)the act of continually learning and improving one's skills and abilities.
E)the process of managing employees in an authoritative manner.

Question 54

Tacit knowledge is an example of _____ capital.

A)social
B)customer
C)human
D)intellectual
E)financial

Question 55

The way senior executives create and sustain vision, values, and mission: promote legal and ethical behavior, is the definition for which Malcolm Baldrige National Quality Award criterion?

A)Strategic planning
B)Workforce focus
C)Customer and market focus
D)Operation Focus
E)Leadership

Question 56

Which of the following corresponds to a sustainability competitive challenge that influences a U.S company?

A)Changing employees' and managers' work roles
B)Placing increased value on human capital
C)Using social networking tools
D)Preparing employees to work in foreign locations
E)Developing e-commerce

Question 57

Distribution channels is an example of _____ capital.

A)social
B)customer
C)human
D)intellectual
E)financial

Question 58

Which of the following corresponds to a global competitive challenge that influences a U.S company?

A)Changing employees' and managers' work roles
B)Placing increased value on human capital
C)Providing a return to shareholders
D)Preparing employees to work in foreign locations
E)Developing e-commerce

Question 59

_____ refers to the degree to which employees are fully involved in their work and the strength of their job and company commitment.

A)Psychological
B)Workforce analytics
C)Self-service
D)Commitment
E)Employee engagement

Question 60

_____ refers to a systematic planned strategic effort by a company to attract, retain, develop, and motivate highly skilled employees and managers.

A)Psychological contract
B)Workforce analytics
C)Talent management
D)Training and development
E)Employee engagement

Question 61

Managing cultural diversity involves:

A)enforcing EEO rules.
B)creating separate career tracks for employees with families.
C)establishing a strong affirmative action policy.
D)creating a workplace that makes it comfortable for employees of all backgrounds to be creative and innovative.
E)Excluding generational issues.

Question 62

Which of the following statements is true about the Generation X?

A)They were born between 1925 and 1945.
B)They tend to be uncomfortable challenging the status quo and authority.
C)They were born between 1981 and 1995.
D)They were born between 1946 and 1964.
E)They tend to be pragmatic, cynical, and have well-developed self-management skills.

Question 63

Which of the following cultural diversity arguments states that reactions should be faster and cost less?

A)System flexibility argument
B)Marketing argument
C)Employee attraction and retention argument
D)Problem-solving argument
E)Creativity argument

Question 64

Which of the following statements is true about the Sarbanes-Oxley Act of 2002?

A)It is very easy on the rules regarding corporate behavior.
B)Organizations are spending millions of dollars each year by complying with regulations under the Sarbanes-Oxley Act.
C)It imposes no penalties for corporate governing and accounting lapses
D)With the regulations introduced, corporate boards need to paying less attention to issues like leadership development and succession planning.
E)The Act has brought down the number of HR executives and individuals with HR expertise.

Question 65

Litigation involving job security will have a major influence on human resource management practices because:

A)company rules, systems and practices might falsely communicate lifetime employment agreements not intended by the company during layoffs.
B)adjustments of test scores to meet affirmative action requirements are now illegal.
C)employees now bear the burden of proof in discrimination cases.
D)compensation awards for discrimination claims have increased.
E)lack of state and federal laws will force companies to lay off employees.

Question 66

Hammer and Nail Co. has offices around the globe. Its teams are separated by time, geographic distance, culture, and/or organizational boundaries, and almost rely exclusively on technology for interaction between team members. Its teams are:

A)virtual teams.
B)geographically-concentrated teams.
C)lean teams.
D)teleworker teams.
E)learning organizational teams.

Question 67

Which of the following cultural diversity arguments states that diversity of perspectives and less emphasis on conformity to norms of the past should improve the level of resourcefulness and inventiveness?

A)System flexibility argument
B)Marketing argument
C)Employee attraction and retention argument
D)Problem-solving argument
E)Creativity argument

Question 68

Which of the following areas of the legal environment has influenced HRM practices over the past 25 years?

A)Equal employment opportunity
B)Executive compensation
C)Product liability
D)Patent infringement
E)Labor relations

Question 69

Which of the following statements is true about the composition of the U.S. labor force in the next decade?

A)Immigration will cease to affect the size and diversity of the workforce.
B)The largest proportion of the labor force is expected to be in the 16-to-24-year age group.
C)There will be fewer white males than minorities or women in the labor force.
D)The number of baby boom workers will increase faster than any other age group.
E)The high cost of health insurance and decrease in health benefits will cause many employees to quit working.

Question 70

Which of the following is true about global marketing?

A)Offshoring now includes low-skilled manufacturing jobs with repeatable tasks.
B)Globalization is not limited to a particular sector of the economy.
C)It is relatively easy for global companies to retain talented employees.
D)In most emerging markets, companies are facing an excess of performing employees when compared to supply.
E)Offshoring involves exporting jobs from a developing country where labor and other costs are lower.

Question 71

Which of the following is true about social networking?

A)It may result in employees wasting time.
B)It reduces distribution of job postings.
C)It undermines learning.
D)It demotes creativity.
E)It leads to loss of expert knowledge.

Question 72

Which of the following cultural diversity arguments states that companies with the best reputations for managing diversity will win the competition for the best personnel?

A)System flexibility argument
B)Marketing argument
C)Employee attraction and retention argument
D)Problem-solving argument
E)Creativity argument

Question 73

Which of the following is one of the four ethical principles of a successful company?

A)Managers assume all responsibility for the actions of the company.
B)It has a strong profit orientation.
C)Customer, client, and vendor relationships emphasize mutual benefits.
D)It does not produce products that can be used for violent purposes.
E)Companies emphasize self-gained profits in their relationships with customers and vendors.

Question 74

In managing cultural diversity, which of the following would improve the level of creativity thereby providing competitive advantage to an organization?

A)Diversity of perspectives and less emphasis on conformity to norms of the past.
B)Those with the best reputations for managing diversity will win the competition for the best personnel.
C)An implication of the multicultural model for managing diversity is that the system will become less determinate, less standardized, and therefore more fluid.
D)Heterogeneity in decisions and problem-solving groups potentially produces better decisions.
E)Developing reputations on favorability as prospective employers for women and ethnic minorities.

Question 75

Exporting jobs to rural parts of the United States is referred to as _____.

A)insourcing
B)offshoring
C)importing
D)onshoring
E)exportation

Question 76

Which of the following cultural diversity arguments states that heterogeneity potentially produces better decisions through a wider range of perspectives?

A)System flexibility argument
B)Marketing argument
C)Employee attraction and retention argument
D)Problem-solving argument
E)Creativity argument

Question 77

Exporting jobs from developed to less developed countries is known as _____.

A)insourcing
B)offshoring
C)importing
D)onshoring
E)homeshoring

Question 78

Which of the following is true about baby boomers?

A)They like the latest technology, are ambitious and goal-oriented, and seek meaningful work.
B)They want to be noticed, respected, and involved.
C)They tend to be uncomfortable challenging the status quo and authority.
D)They value unexpected rewards for work accomplishments, opportunities to learn new things, praise, recognition, and time with the manager.
E)They tend to be pragmatic, cynical, and have well-developed self-management skills.

Question 79

Regardless of their background, most employees value:

A)the ability to challenge the status quo.
B)simplistic tasks requiring few skills.
C)managerial positions.
D)work that leads to self-fulfillment.
E)comparing compensation with other employees.

Question 80

Which legislation act sets new strict rules for business especially as regards accounting practices?

A)Human Rights Act of 1994
B)Reverse Discrimination Act of 1990
C)Sarbanes-Oxley Act of 2002
D)Corruption and Practices Act of 2000
E)Civil Rights Act of 1991