Deck 2: Trends in Human Resource Management

Question 1

Successful organizations treat all their workers as knowledge workers.

Answer 1

True
Explanation: The idea that only some of an organization's workers are knowledge workers has come under criticism. To the critics, this definition is no longer realistic in a day of computerized information systems and computer-controlled production processes. For the company to excel, everyone must know how their work contributes to the organization's success. Successful organizations treat all their workers as knowledge workers. They let employees know how well the organization is performing, and they invite ideas about how the organization can do better.

Question 2

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

Answer 2

True
Explanation: Some mergers and acquisitions result in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

Question 3

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

Answer 3

False
Explanation: Members of Generation X (1965-1980) tend to be pragmatic and cynical, and they have well-developed self-management skills. Those born from 1981 to 1995, often called Millennials or Generation Y, are comfortable with the latest technology, and they want to be noticed, respected, and involved.

Question 4

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

Question 5

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

Question 6

Teamwork gives employees the authority and ability to decide on how to do their work.

Question 7

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

Question 8

An organization's critical work processes are not altered during a reengineering process.

Question 9

A New York City-based company shifts its warehouses and operations to a low rent area that is 50 miles away from the city.This is an example of offshoring.

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

Knowledge workers in an organization do not work directly with customers.

Question 12

An individual who is actively seeking employment is a part of an organization's external labor market.

Question 13

Most organizations are looking for educational achievements to find employees who can handle a variety of responsibilities,interact with customers,and think creatively.

Question 14

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

Question 15

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

Question 16

When forming Citigroup,Citicorp combined its banking business with Traveler's Group's insurance business.This is an example of a merger.

Question 17

Laurie Corp.,a watch manufacturer,purchases Smith Inc.,a manufacturer of pens.This scenario is an example of an acquisition.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

A) The labor force is expected to grow at a greater rate by 2015 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 number of workers under 40 years of age will exceed the number of workers 40 years of age or older.
D) By 2022, all baby boomers will be at least 55 years old, increasing the ranks of workers nearing retirement.
E) The total cost of labor in the United States will decrease considerably in the near future.

Question 22

Employers' support for immigration to the United States can be attributed to the fact that:

A) there is lack of adequate technology in the country.
B) undocumented immigration is not taken seriously by the U.S. government.
C) qualified technical workers are scarce in the United States.
D) there is increased support from the government.
E) U.S. workers are not open to innovation.

Question 23

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 24

Under a 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 25

Which of the following racial groups will form the majority of the U.S.labor force according to the 2012-2022 Employment Projections from the Bureau of Labor Statistics?

A) African Americans
B) Whites
C) Hispanics
D) Asians
E) Native Americans

Question 26

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

Question 27

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

Question 28

Which of the following 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 29

Moore 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 Moore 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 30

In the context of alternative work arrangements,contract company workers are employed directly by a company.

Question 31

Identify the correct statement regarding the composition of the U.S.labor force during the period 2012-2022.

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 number of workers under 40 years of age will exceed the number of workers 40 years of age or older.
D) Despite a small increase in the number of young workers, the overall workforce will be aging.
E) The total cost of labor in the United States would considerably decrease.

Question 32

Employers can direct contract workers on details such as how and when they have to do their jobs without paying the employer's share of Social Security for those workers.

Question 33

Which of the following skills is 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 34

Eric,a management student,is required to compile a report on the current composition of the U.S.labor force for his human resource management class.He also wants to include details on the current and future age distribution of U.S.employees.His professor suggests that he conduct his research with the help of the Internet and with sources from the college library.The website of which of the following agencies would be most useful for preparing this report?

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 35

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 36

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 37

Rajeev,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 Salt Lake City,Utah.In this scenario,Rajeev is regarded as an expatriate.

Question 38

Which of the following scenarios exemplifies an external labor market?

A) Katie, a contract worker, working for a certain period specified in a written contract.
B) Andrew, a temporary worker, being paid by a company for his services.
C) Jill, an engineering graduate, looking for a job.
D) Hilary, an employee, going through training.
E) Salim, an employee, securing his financial services certification.

Question 39

_____ refer 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 40

Gerard,a college student,believes that academic achievement and not mechanical skills will help one secure a job in the U.S.workforce.Jack,his classmate,believes that mechanical skills are more important than academic achievement in landing a job in the U.S.Which of the following statements strengthens Gerard's argument?

A) Employers no longer look for individuals who have strong verbal and interpersonal skills.
B) Qualities such as physical strength are very important for many jobs in this period of time.
C) Companies invest more on the latest technology for their production needs.
D) Companies prefer individuals with hands-on experience than those with theoretical knowledge.
E) Mastery of a particular piece of machinery is no longer important for many jobs.

Question 41

Which of the following 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 42

Kelton Inc.produces large quantities of products for their customers within tight deadlines.However,customers are not satisfied with the products produced by Kelton.Which of the following,if true,would best explain the customers' dissatisfaction with Kelton?

A) Kelton's methods are designed to meet the needs of only internal customers.
B) Kelton focuses on detecting and correcting errors rather than preventing them from occurring.
C) Kelton does not adhere to quality standards.
D) Kelton collaborates with other companies for product development and enhancement.
E) Kelton provides quality training to subordinates as well as to top management.

Question 43

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 44

Which of the following best describes teamwork?

A) It refers to centralizing responsibility and authority to make decisions regarding all aspects of product development.
B) It refers to having the best possible fit between an organization's social system and technical system.
C) It involves making efforts to continuously improve the ways people, machines, and systems accomplish work.
D) It involves assigning work to a group of employees with various skills who interact to assemble a product.
E) It refers to providing employees with individual opportunities to grow, thereby achieving organizational goals.

Question 45

Which of the following refers to full involvement in one's work and commitment to one's job and company?

A) Job enhancement
B) Employee selection
C) Employee appraisal
D) Job specialization
E) Employee engagement

Question 46

Rhea is an employee at Diaz Inc.She specializes in graphic and web design,user interface design,and search engine optimization.She also knows how to interact with customers by asking them about their preferences and providing them with products that meet their needs.Which of the following statements is true about Rhea?

A) She specializes in outsourcing.
B) She is a part of the external labor market.
C) She bases her work on the terms of a psychological contract.
D) She is an on-call worker.
E) She is a knowledge worker.

Question 47

Oliver works at Tate Corp.,an 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 cost-efficient manufacturing processes.This implies that Oliver:

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 48

Milton Inc.invests heavily in training its employees to develop skills in conflict resolution.Which of the following is a possible reason for Milton's management to implement this action?

A) Milton hires employees with different educational qualifications.
B) Managers at Milton seldom encourage employees to voice their opinions.
C) Disagreements can arise when Milton signs business deals with other companies.
D) Milton does not collaborate with other companies for its business operations.
E) Milton does not meet the requirements to merge with another company to hold a greater share of the industry.

Question 49

Zino 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 of the following statements is true of Zino?

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 50

Companies that develop software are increasingly using an approach they call _____,which involves weaving the development process more tightly into the organization's activities and strategies.

A) just in time
B) total quality management
C) agile
D) lean manufacturing
E) reengineering

Question 51

Which of the following is in compliance with the core values of total quality management?

A) Providing quality training to specific employees.
B) Detecting errors and correcting them in an error-prone product or service.
C) Developing generalized methods and processes that only focus on meeting the needs of external customers.
D) Encouraging employees and customers to provide input on improving quality of products and holding costs down.
E) Measuring employees' progress based on the amount of work done rather than the feedback obtained from customers.

Question 52

Dave is the director of operations at Arc Inc.and provides his team members with complete authority to execute all tasks independently.He encourages his team members to have brainstorming sessions before initiating a project to determine the best method to deliver positive results.This scenario indicates that Dave promotes _____.

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

Question 53

Work teams often assume many activities traditionally reserved for managers,such as:

A) hiring new employees.
B) determining company policies.
C) coordinating work with customers.
D) conducting training programs.
E) determining employee salaries.

Question 54

Finch Inc.,a software company,uses a certain 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 Finch is using a(n)_____ approach.

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

Question 55

Which of the following statements 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 56

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 57

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 58

Identify the correct statement 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 59

Gilbert,the branch manager of a local bank,wants to initiate a teamwork system because he believes it will improve overall task management in the organization.Jane,his colleague,opposes Gilbert's idea because she thinks it will result in excessive costs.Which of the following,if true,would weaken Jane's argument?

A) Teamwork encourages centralized decision making and hence keeps all costs the same.
B) Teamwork promotes dedicating time to negotiating contracts and documenting processes and hence saves costs.
C) Teamwork makes work interesting and fun for employees and helps reduce labor costs.
D) Teamwork results in reduced salary costs because it is part of a vertical organizational structure.
E) Teamwork reduces the costs that result from employee errors because it encourages employees to follow instructions provided by their supervisors.

Question 60

How has the use of employee empowerment affected the recruitment process in the U.S.?

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 61

The human resource management (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 62

Which of the following 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 63

Leo Corp.,a large-scale cell phone manufacturer,buys Milo Inc.,a small cell phone manufacturer,to secure a greater share of the cell phone industry.This scenario exemplifies a(n)_____.

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

Question 64

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 65

Which of the following occurs when two companies join forces and become one entity?

A) Acquisition
B) Merger
C) Takeover
D) Joint venture
E) Strategic alliance

Question 66

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

A) Downsizing tends to distinguish good performers from poor performers rather than eliminating an entire group of employees.
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 is not authorized to provide downsized employees with outplacement services to help them find new jobs.
E) When labor costs fall after a downsizing, sales per employee also tend to fall.

Question 67

Which of the following statements is true about downsizing?

A) HRM cannot 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

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

A) consolidation
B) takeover
C) acquisition
D) conglomerate
E) assimilation

Question 69

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 70

Which of the following 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 71

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

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

Question 72

Lewis Corp.,an automobile manufacturer,purchases Vision Inc.,a company that produces auto parts and accessories.This scenario exemplifies a(n)_____.

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

Question 73

Mirth Inc.,a cookie manufacturer,combines with Herge Corp.,a chocolate manufacturer,to form a company called Hobbes Inc.This scenario illustrates a(n)_____.

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

Question 74

The management of Durrell Inc.is finding it difficult to "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance.Which of the following is a reason for the difficulty faced by Durrell management?

A) Durrell has to provide unemployment benefits to terminated workers.
B) Durrell has a strong hierarchy.
C) Durrell has good workers who have the ability to find alternative employment.
D) Durrell does not encourage voluntary turnover.
E) Durrell has centralized decision making.

Question 75

A chemical company buying a medical equipment manufacturing company is an example of a(n)_____.

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

Question 76

Brighton Corp.undertook a reengineering strategy recently to increase the efficiency of its processes.As a result,the HR department has revised the job and pay structures for employees.The firm is also hiring new employees with different skill sets.Which of the following arguments strengthens the HR department's decision?

A) Reengineering demands the HR department hire another vendor or a third-party provider.
B) Reengineering necessitates the HR department design and implement changes so employees will be committed to its success.
C) Reengineering provides training only to those in top managerial positions.
D) Reengineering involves one company buying another company.
E) Reengineering results in consolidation within an industry, meaning that two firms in one industry join to hold a greater share of the industry.

Question 77

As part of a companywide business strategy,Wright Inc.conducts a comprehensive examination of its critical work techniques to increase their efficiency.The strategy is also used to provide high quality goods and services to the firm's customers.Which of the following HRM practices does Wright use?

A) Outsourcing
B) Reengineering
C) Downsizing
D) Merger
E) Acquisition

Question 78

Iris Corp.manufactures products by following traditional methods,and managers make decisions without obtaining input from their subordinates.Recently the firm has been receiving complaints from its customers regarding the quality of its products.Which of the following would help the firm avoid these complaints in the future?

A) Iris should not engage in risk taking.
B) Iris should not involve subordinates when solving problems.
C) Iris should create an atmosphere that promotes innovation.
D) Iris should focus less on creativity.
E) Iris should provide quality training only to those in top management.

Question 79

Which of the following observations about reengineering is true?

A) It is primarily concerned with production processes.
B) Critical processes are not altered during this process.
C) 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

M&B Textiles Inc.,a garment manufacturing company,implements a new technology to improve the speed of its production process.To implement the new technology 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 to reduce 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