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Fundamentals of Human Resource Management, 2e (Dessler)

Chapter 1 Managing Human Resources Today


1) The basic functions of management include all of the following EXCEPT ________.
A) staffing
B) planning
C) organiing
!) outsourcing
Answer" !
E#planation" !) The fi$e basic functions of the management process include planning% organiing%
staffing% leading% and controlling. &utsourcing 'obs ma( be an aspect of human resources% but it is not
one of the primar( management functions.
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*) .ow is +.+. Bean most li-el( able to attract high/0ualit( emplo(ees1
A) re0uiring annual performance re$iews
B) pro$iding training through simulators
C) offering a supporti$e en$ironment
!) offshoring most clerical 'obs
Answer" C
E#planation" C) +.+. Bean offers a supporti$e% outdoors/oriented wor-ing en$ironment% competiti$e
pa(% and a full range of benefits. 2nstead of offshoring 'obs abroad% the compan( -eeps its 'obs close to
the town where +eon +eonwood Bean started his compan( almost 133 (ears ago. 4ost firms re0uire
performance re$iews% but it is the supporti$e wor-ing en$ironment that allows the firm to attract an
e#cellent staff.
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5) A manager is best described as a person who is responsible for ________.
A) teaching new emplo(ees basic s-ills
B) accomplishing the organiation6s goals
C) communicating with stoc-holders
!) delegating authorit( to subordinates
Answer" B
E#planation" B) A manager is someone who is responsible for accomplishing the organiation6s goals%
and who does so b( managing the efforts of the organiation6s people. 4ost writers agree that managing
in$ol$es performing fi$e basic functions" planning% organiing% staffing% leading% and controlling.
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8) 9hich indi$idual in an organiation is responsible for accomplishing the organiation6s goals b(
planning% organiing% staffing% leading% and controlling personnel1
A) manager
B) generalist
C) mar-eter
!) entrepreneur
Answer" A
E#planation" A) The manager is the person responsible for accomplishing an organiation6s goals b(
planning% organiing% staffing% leading% and controlling the efforts of the organiation6s people. An
entrepreneur ma( manage people or ma( hire a manager to do so instead% but entrepreneurs are defined
as indi$iduals who start their own businesses.
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:) 9hich of the following in$ol$es the fi$e functions of planning% organiing% staffing% leading% and
controlling1
A) strategic management
B) adaptabilit( screening
C) succession planning
!) management process
Answer" !
E#planation" !) The management process includes fi$e basic functionsplanning% organiing% staffing%
leading% and controlling. ,trategic management refers to the process of identif(ing and e#ecuting the
organiation6s mission b( matching its capabilities with the demands of its en$ironment.
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;) 9hich basic function of management includes de$eloping rules and procedures1
A) planning
B) organiing
C) leading
!) staffing
Answer" A
E#planation" A) Planning% organiing% staffing% leading% and controlling are the fi$e functions of
management. The planning function in$ol$es establishing goals and standards< de$eloping rules and
procedures< and de$eloping plans and forecasts.
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=) 9hich basic function of management in$ol$es maintaining emplo(ee morale and moti$ating
subordinates1
A) planning
B) leading
C) organiing
!) de$eloping
Answer" B
E#planation" B) Planning% organiing% staffing% leading% and controlling are the fi$e functions of
management. The leading function in$ol$es getting others to accomplish a tas-% maintaining morale% and
moti$ating subordinates.
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>) 9hat specific acti$ities listed below are part of the planning function1
A) gi$ing each subordinate a specific tas-
B) training and de$eloping emplo(ees
C) de$eloping rules and procedures
!) establishing 0ualit( standards
Answer" C
E#planation" C) The planning function of management in$ol$es establishing goals and standards<
de$eloping rules and procedures< and de$eloping plans and forecasts. The other functions of
management are organiing% staffing% leading% and controlling.
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?) Celeste spends most of her time at wor- establishing goals for her staff of fift( emplo(ees and
de$eloping procedures for $arious tas-s. 2n which function of the management process does Celeste
spend most of her time1
A) planning
B) organiing
C) moti$ating
!) staffing
Answer" A
E#planation" A) The planning function of the management process re0uires managers to establish goals
and standards% de$elop rules and procedures% and de$elop plans and forecast. +eading in$ol$es
moti$ating staff% while controlling re0uires a manager to set standards% such as sales 0uotas. Assigning
tas-s to emplo(ees is an aspect of the organiing function.
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13) @ohn primaril( spends his time gi$ing tas-s to subordinates and establishing departments. .e is
performing what function of management1
A) leading
B) planning
C) organiing
!) controlling
Answer" C
E#planation" C) The organiing function of management in$ol$es gi$ing each subordinate a specific
tas-< establishing departments< delegating authorit( to subordinates< establishing channels of authorit(
and communication< and coordinating the wor- of subordinates. +eading% planning% and controlling are
other acti$ities in the management process.
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11) 9hich function of the management process includes delegating authorit( to subordinates and
establishing channels of communication1
A) organiing
B) moti$ating
C) leading
!) staffing
Answer" A
E#planation" A) The organiing function of the management process includes delegating authorit( to
subordinates and establishing channels of communication. The organiing function also includes
establishing departments and coordinating the wor- of subordinates.
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1*) Aachar(% a sales manager with a commercial real estate firm% uses sales 0uotas to assess the
performance of his staff members% and he then de$elops strategies for correcti$e action. 9hich function
of the management process is Aachar( most li-el( performing1
A) planning
B) staffing
C) controlling
!) organiing
Answer" C
E#planation" C) ,etting standards such as sales 0uotas% 0ualit( standards% or production le$els are
acti$ities in$ol$ed in the control function of the management process. Chec-ing to see how actual
performance compares with these standards and ta-ing correcti$e action as needed are additional control
functions.
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15) 9hich of the following acti$ities is related to the organiing function of the management process1
A) gi$ing each subordinate a specific tas-
B) recruiting prospecti$e emplo(ees
C) de$eloping rules and procedures
!) establishing 0ualit( standards
Answer" A
E#planation" A) Bi$ing subordinates tas-s is an aspect of the organiing function. )ecruiting
emplo(ees% de$eloping procedures% and establishing standards are acti$ities related to other management
functions.
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18) All of the following are acti$ities performed within the staffing function of the management process
EXCEPT ________.
A) e$aluating performance
B) pro$iding training
C) recruiting emplo(ees
!) maintaining morale
Answer" !
E#planation" !) !etermining what t(pe of people should be hired< recruiting prospecti$e emplo(ees<
selecting emplo(ees< setting performance standards< compensating emplo(ees< e$aluating performance<
counseling emplo(ees< and training and de$eloping emplo(ees are aspects of the staffing function.
4aintaining emplo(ee morale is an acti$it( of the leading function.
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1:) 9hich of the following terms best describes firms such as +.+. Bean% To(ota% and !ell1
A) bargaining unit
B) wor- council
C) organiation
!) open shop
Answer" C
E#planation" C) An organiation% such as +.+. Bean% To(ota% and !ell% consists of people with formall(
assigned roles who wor- together to achie$e the organiation6s goals. Bargaining units% wor- councils%
and open shops ma( wor- within an organiation.
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1;) 2n the management process% which acti$it( is part of the staffing function1
A) de$eloping rules
B) maintaining morale
C) e$aluating performance
!) setting production le$els
Answer" C
E#planation" C) The staffing function in$ol$es e$aluating the performance of emplo(ees. !e$eloping
rules is a planning function% and maintaining morale is a leading function. ,etting standards such as
production le$els is an aspect of the controlling function of the management process.
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1=) 9hich function of the management process in$ol$es setting standards such a sales 0uotas and
production le$els1
A) planning
B) organiing
C) controlling
!) leading
Answer" C
E#planation" C) ,etting standards such as sales 0uotas% 0ualit( standards% or production le$els is part of
the controlling function of the management process. Planning% organiing% and leading are other
functions in the management process.
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1>) 9hich acti$it( is part of the controlling function of the management process1
A) recruiting prospecti$e emplo(ees
B) training and de$eloping new emplo(ees
C) de$eloping departmental rules and procedures
!) comparing emplo(ee performance with standards
Answer" !
E#planation" !) )ecruiting and training are staffing functions% while de$eloping rules is a planning
function. Controlling in$ol$es setting standards and then chec-ing to see how an emplo(ee6s actual
performance compares to those standards.
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1?) ________ is the process of ac0uiring% training% appraising% and compensating emplo(ees% and
attending to their labor relations% health and safet(% and fairness concerns.
A) .uman resource management
B) Career planning
C) Beha$ioral management
!) @ob e$aluation
Answer" A
E#planation" A) .uman resource management is the process of ac0uiring% training% appraising% and
compensating emplo(ees% and of attending to their labor relations% health and safet(% and fairness
concerns. Career planning is the process of assessing personal s-ills and establishing a plan to achie$e
specific goals.
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*3) .uman resource management is best defined as the process of ________.
A) controlling and orienting new emplo(ees
B) organiing and scheduling wor- acti$ities for teams
C) outsourcing and offshoring clerical 'obs to foreign countries
!) ac0uiring% training% appraising% and compensating emplo(ees
Answer" !
E#planation" !) .uman resource management is the process of ac0uiring% training% appraising% and
compensating emplo(ees% and of attending to their labor relations% health and safet(% and fairness
concerns. &rienting new emplo(ees and outsourcing 'obs ma( be re0uired of .) managers at times% but
hiring% training% and pa(ing wor-ers are the main tas-s of .) management.
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*1) ________ is the right to ma-e decisions% to direct the wor- of others% and to gi$e orders.
A) +eadership
B) Authorit(
C) Arbitration
!) Bargaining
Answer" B
E#planation" B) Authorit( is the right to ma-e decisions% to direct the wor- of others% and to gi$e orders.
Arbitration refers to settling a disagreement through a third part(.
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**) All of the following are a line manager6s responsibilities for effecti$e .) management EXCEPT
________.
A) ad$ising upper management
B) controlling labor costs
C) de$eloping emplo(ees
!) orienting new emplo(ees
Answer" A
E#planation" A) ,taff managers are authoried to assist and ad$ise line managers. +ine managers ha$e
line authorit(% which means the( t(picall( wor- to control labor costs% de$elop emplo(ees% and orient
new wor-ers.
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*5) 9hich of the following best defines line authorit(1
A) a manager6s right to fle#ible decision/ma-ing powers
B) a manager6s right to ad$ise other managers or emplo(ees
C) a manager6s right to ad$ocate on behalf of his or her department
!) a manager6s right to issue orders to other managers or emplo(ees
Answer" !
E#planation" !) +ine authorit( is a manager6s right to issue orders to other managers or emplo(ees%
which creates a superior/subordinate relationship. ,taff authorit( refers to a manager6s right to ad$ise
other managers or emplo(ees% which creates an ad$isor( relationship.
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*8) 2n most organiations% human resource managers are categoried as ________% who assist and ad$ise
________ in areas li-e recruiting% hiring% and compensation.
A) staff managers< line managers
B) line managers< middle managers
C) line managers< staff managers
!) functional managers< staff managers
Answer" A
E#planation" A) .uman resource managers are usuall( staff managers. The( assist and ad$ise line
managers in areas li-e recruiting% hiring% and compensation. .owe$er% line managers still ha$e human
resource duties.
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*:) 9hich of the following has historicall( been an integral part of e$er( line manager6s duties1
A) establishing dress codes
B) de$eloping annual budgets
C) handling personnel issues
!) creating personnel policies
Answer" C
E#planation" C) All line managers are hea$il( in$ol$ed with personnel issues% such as hiring and
training new emplo(ees. Cot all line managers participate in dress codes% budgets% and policies% but the(
are alwa(s in$ol$ed in issues relating to subordinates.
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*;) 9hich of the following best e#plains wh( .) management is important to all managers1
A) Economic challenges facing the world call for ad$anced cost/cutting and streamlining.
B) 2n$esting in human capital enables managers to achie$e positi$e results for the firm.
C) An enthusiastic labor force is li-el( to pro$ide financial support to local unions.
!) Technological changes and global competition re0uire clear organiation charts.
Answer" B
E#planation" B) Betting results is the bottom line of managing% and it is primaril( accomplished through
human capital. 4anagers throughout a firm need good people to get results% and hiring and retaining
good people is the ob'ecti$e of .)4.
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*=) According to e#perts% the primar( hindrance to a firm6s producti$it( is its inabilit( to ________.
A) attain ade0uate cash and credit
B) use ad$anced accounting controls
C) ac0uire and maintain a good wor-force
!) create efficient manufacturing facilities
Answer" C
E#planation" C) E#perts assert that it is the wor-force and the compan(6s inabilit( to recruit and
maintain a good wor-force that constitutes a bottlenec- for production. Pro'ects bac-ed b( good ideas%
$igor% and enthusiasm are less li-el( to be stopped b( a shortage of cash than a shortage of human
capital% which is the -nowledge% education% training% s-ills% and e#pertise of a firm6s wor-ers.
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*>) +arr( is a line manager at a large sporting goods store. 9hich of the following is +EA,T li-el( to be
one of +arr(6s .) responsibilities1
A) appraising emplo(ee performance
B) conducting 'ob anal(ses
C) sharing financial ad$ice
!) disciplining emplo(ees
Answer" C
E#planation" C) +ine managers are t(picall( in$ol$ed with .) tas-s such as assessing emplo(ees%
determining the nature of each emplo(ee6s 'ob% and communicating with emplo(ees for inter$iewing and
disciplinar( purposes. Pro$iding financial ad$ice is not a responsibilit( of most line managers.
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*?) All of the following are e#amples of human resource specialties EXCEPT ________.
A) 'ob anal(st
B) training specialist
C) EE& coordinator
!) financial ad$isor
Answer" !
E#planation" !) @ob anal(sis% training% and e0ual emplo(ment opportunit( coordination are all duties of
the .) department. .) specialists are less li-el( to ser$e as financial ad$isors.
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53) Cicole wor-s as a 'ob anal(st at a computer firm. 9hich of the following most li-el( describes
Cicole6s duties in her current position1
A) searching for 0ualified 'ob candidates
B) handling emplo(ee benefits programs
C) collecting information about 'ob duties
!) planning and organiing training acti$ities
Answer" C
E#planation" C) @ob anal(sts collect and e#amine detailed information about 'ob duties to prepare 'ob
descriptions. )ecruiters inter$iew 'ob candidates% and compensation managers handle benefits programs.
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51) 2n general% how man( human resource emplo(ees would be on staff for a firm with :33 total
emplo(ees1
A) 1
B) *
C) :
!) 13
Answer" C
E#planation" C) 2n most firms% there is one .) emplo(ee for e$er( 133 compan( emplo(ees. Therefore%
a firm with :33 compan( emplo(ees would re0uire : .) emplo(ees to handle all of the firm6s .)
issues.
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5*) 9hich of the following human resource management specialties would most li-el( re0uire e#tensi$e
tra$el1
A) labor relations specialist
B) training specialist
C) 'ob anal(st
!) recruiter
Answer" !
E#planation" !) )ecruiters are re0uired to maintain contact within the communit( and perhaps tra$el
e#tensi$el( to search for 0ualified 'ob applicants. +abor relations specialists% training specialists% and 'ob
anal(sts would re0uire less tra$el.
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55) 9hich of the following focuses on using centralied call centers and outsourcing arrangements with
$endors as a wa( to pro$ide specialied support for certain .) acti$ities1
A) transactional .) groups
B) corporate .) groups
C) embedded .) units
!) .) consulting firms
Answer" A
E#planation" A) Transactional .) groups focus on using centralied call centers and outsourcing
arrangements with $endors% such as benefits ad$isors% to pro$ide specialied support in da(/to/da(
transactional .) acti$ities to a firm6s emplo(ees. Acti$ities ma( include changing benefits plans and
pro$iding updated appraisal forms.
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58) An .) generalist at 9ilson 4anufacturing has been assigned to the sales department to pro$ide .)
management assistance as needed. 9hich of the following best describes the structure of the .)
ser$ices pro$ided at 9ilson 4anufacturing1
A) transactional .) groups
B) corporate .) groups
C) embedded .) units
!) .) centers of e#pertise
Answer" C
E#planation" C) 2n the embedded .) unit structure% an .) generalist is assigned directl( to a
department within an organiation to pro$ide localied human resource management assistance as
needed. Transactional% corporate% and centers of e#pertise are three other t(pical organiational
approaches to .).
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5:) )oberta 9hitman has recentl( been hired b( @ac-son Pharmaceuticals as the senior $ice president of
human resources. @ac-son Pharmaceuticals has a histor( of problems within its .) department including
high emplo(ee turno$er% EE& $iolations% inade0uate training programs% and benefit enrollment
difficulties. 9ith (ears of e#perience transforming .) departments in other firms% 9hitman belie$es she
can correct the problems at @ac-son Pharmaceuticals.
9hich of the following best supports the argument that 9hitman should create embedded .) units and
assign relationship managers to each department within the firm1
A) Emplo(ees fre0uentl( complain about the inconsistent assistance the( recei$e from the .)
department due to its large sie.
B) The global nature of the firm ma-es it difficult for the .) department to effecti$el( communicate
corporate messages to emplo(ees scattered around the world.
C) Centralied call centers would enable the .) department to pro$ide specialied support on dail(
transactional acti$ities.
!) +ine managers want to implement additional screening and e$aluations to impro$e the 0ualit( of
their subordinates.
Answer" A
E#planation" A) The embedded .) unit assigns .) generalists directl( to departments li-e sales and
production to pro$ide the localied human resource management assistance the departments need. 2f
emplo(ees are unable to recei$e the .) assistance the( need on a regular basis% then it would be
appropriate for the firm to assign .) generalists to each department as a direct line to the .)
department.
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5;) )oberta 9hitman has recentl( been hired b( @ac-son Pharmaceuticals as the senior $ice president of
human resources. @ac-son Pharmaceuticals has a histor( of problems within its .) department including
high emplo(ee turno$er% EE& $iolations% inade0uate training programs% and benefit enrollment
difficulties. 9ith (ears of e#perience transforming .) departments in other firms% 9hitman belie$es she
can correct the problems at @ac-son Pharmaceuticals.
9hich of the following best supports 9hitman6s idea to de$elop a transactional .) group to handle
benefits administration1
A) E#tensi$e training has been pro$ided to line managers so that the( full( understand the different
insurance options a$ailable to emplo(ees.
B) +ower insurance premiums would eliminate the need for outsourcing medical ser$ices and impro$e
emplo(ee health co$erage.
C) &utside $endors specialiing in all aspects of benefits administration would pro$ide impro$ed
support to the firm6s emplo(ees.
!) All emplo(ees are currentl( re0uired to participate in health screening and drug tests to eliminate
high ris- emplo(ees from the benefits plan.
Answer" C
E#planation" C) The transactional .) group focuses on using centralied call centers and outsourcing
arrangements with $endors to pro$ide specialied support in da(/to/da( transactional .) acti$ities to
the compan(6s emplo(ees. B( outsourcing benefits administration% @ac-son would allow .) managers to
focus on other issues and enable benefits specialists to handle benefits enrollment and co$erage issues. 2t
is not the role of line managers to handle benefits administration.
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5=) ________ refers to the tendenc( of firms to e#tend their sales% ownership% andDor manufacturing to
new mar-ets abroad.
A) 4ar-et de$elopment
B) Blobaliation
C) E#port growth
!) !i$ersification
Answer" B
E#planation" B) Blobaliation is the tendenc( of firms to e#tend their sales% ownership% andDor
manufacturing to new mar-ets abroad. Eirms usuall( e#pand globall( to e#pand sales% cut labor costs% or
form partnerships with foreign firms.
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5>) 9hich term refers to e#porting 'obs to lower/cost locations abroad1
A) compensating
B) benchmar-ing
C) offshoring
!) warehousing
Answer" C
E#planation" C) The search for greater efficiencies is prompting emplo(ers to offshore Fe#port) more
'obs to lower/cost locations abroad. 2ndia is a common location for outsourced call centers% for e#ample.
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5?) 9hich of the following is C&T a trend facing human resource managers toda(1
A) increasing age of the wor-force
B) increasing di$ersit( in the wor-force
C) decreasing number of contingent wor-ers
!) decreasing number of college/educated wor-ers
Answer" C
E#planation" C) The G.,. wor-force is becoming older and more di$erse% and the number of (oung%
college/educated wor-ers is falling. The number of contingent or temporar( wor-ers is on the rise as
people freelance% wor- part/time% and wor- as independent contractors.
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83) 9hich of the following describes the most significant demographic trend facing the G.,. wor-force1
A) decreasing number of contingent wor-ers
B) increasing number of blue/collar wor-ers
C) decreasing number of bilingual wor-ers
!) increasing number of older wor-ers
Answer" !
E#planation" !) &ne of the most significant demographic trends facing the G.,. wor-force is the
increasing number of aging wor-ers% who are those o$er age ::. There are not enough (ounger wor-ers
to replace the pro'ected number of bab(/boom era older/wor-er retirees. As a result% man( retirees are
returning to the wor-force.
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81) 9hich of the following statements best e#plains wh( emplo(ers are e#pecting a se$ere labor
shortage in the ne#t few (ears1
A) 4ore people are retiring than are entering the 'ob mar-et.
B) &ne/third of single mothers are not in the labor force.
C) People are li$ing longer because of better health care.
!) 2ncreasing ta#es ha$e forced businesses to globalie.
Answer" A
E#planation" A) 4an( human resource professionals call Hthe aging wor-forceH the biggest
demographic threat affecting emplo(ers. The basic problem is that there aren6t enough (ounger wor-ers
to replace the pro'ected number of bab(/boom era older wor-ers retiring.
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8*) 9hat are man( emplo(ers doing to fill openings left b( retiring emplo(ees1
A) increasing the retirement age
B) offering fle#ible wor- hours
C) hiring more women
!) rehiring retirees
Answer" !
E#planation" !) 4an( human resource professionals call Hthe aging wor-forceH the biggest
demographic threat affecting emplo(ers. The basic problem is that there aren6t enough (ounger wor-ers
to replace the pro'ected number of bab( boom/era older wor-ers retiring. &ne sur$e( found that 81I of
sur$e(ed emplo(ers are bringing retirees bac- into the wor-force.
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85) According to emplo(er sur$e(s% one of the primar( challenges of Beneration J emplo(ees is their
________.
A) desire to wor- onl( in part/time positions
B) inabilit( to use information technolog(
C) need for constant praise and recognition
!) inabilit( to balance wor- and famil(
Answer" C
E#planation" C) Beneration J has been described as Hthe most high/maintenance wor-force in the
histor( of the world%H which is wh( the primar( challenge of Beneration J emplo(ees is their constant
need for feedbac- and recognition. .owe$er% Beneration J grew up using computers% so their greatest
strength relates to their abilit( to use information technolog(.
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88) The ,arbanes/&#le( Act see-s to do all of the following EXCEPT ________.
A) ensure emplo(ee pri$ac( rights
B) certif( accurate financial reporting
C) prohibit personal loans to e#ecuti$es
!) re0uire codes of ethics for public companies
Answer" A
E#planation" A) Congress passed the ,arbanes/&#le( Act in *335. to curb erroneous corporate financial
reporting. ,arbanes/&#le( re0uires CE&s and CE&s to certif( their companies6 periodic financial reports
and prohibits personal loans to e#ecuti$e officers. 2n addition% e$er( publicl( listed compan( now needs
a code of ethics% more often than not promulgated b( human resources.
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8:) 9hat term refers to the -nowledge% education% training% s-ills% and e#pertise of a firm6s wor-ers1
A) tangible assets
B) human capital
C) human resources
!) intellectual propert(
Answer" B
E#planation" B) .uman capital is the -nowledge% education% training% s-ills% and e#pertise of a firm6s
wor-ers. 2n the modern wor-force% emplo(ment is shifting from manual wor-ers to -nowledge wor-ers.
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8;) 2n toda(6s business en$ironment% what is a firm6s main source of competiti$e ad$antage1
A) technolog(
B) human capital
C) financial structure
!) creati$e ad$ertising
Answer" B
E#planation" B) 2n toda(6s business en$ironment% highl( trained and committed emplo(ees% not
machines% are often a firm6s main competiti$e ad$antage. Technolog(% finances% and ad$ertising are less
important factors than ha$ing highl( s-illed wor-ers.
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8=) 4ost modern emplo(ers e#pect .) managers to do all of the following EXCEPT ________.
A) create high/performance wor- s(stems
B) participate in strategic planning acti$ities
C) ta-e an integrated talent management approach
!) utilie transactional relations to ensure corporate success
Answer" !
E#planation" !) As a result of trends such as globaliation% increased competition% and economic
recessions% .) managers are e#pected to handle a wider $ariet( of tas-s. Eirms e#pect .) managers to
de$elop high/performance wor- s(stems% help with strategic planning% and integrate talent management.
Transactional ser$ices ha$e alwa(s been an aspect of .)% but most firms e#pect these acti$ities to be
handled in new wa(s.
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8>) 9hich of the following terms refers to wor-ers who hold multiple 'obs or are part/time emplo(ees1
A) short/term
B) seasonal
C) temporar(
!) nontraditional
Answer" !
E#planation" !) There has been a shift to nontraditional wor-ers% which includes those who hold
multiple 'obs% those who are HcontingentH or part/time wor-ers% or those who wor- in alternati$e wor-
arrangements. 4an( others are freelancers or independent contractors hired for specific pro'ects.
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8?) 9hich of the following best describes a nontraditional wor-er1
A) entrepreneurial wor-ers
B) wor-ers with multiple 'obs
C) ser$ice industr( wor-ers
!) wor-ers near retirement age
Answer" B
E#planation" B) Contraditional wor-ers include those who hold multiple 'obs% those who are
HcontingentH or part/time wor-ers% or those who wor- in alternati$e wor- arrangements. Toda(% almost
13I of American wor-ers fit this nontraditional wor-force categor(. &f these% about > million are
independent contractors who wor- on specific pro'ects and mo$e on once the( complete the pro'ects.
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:3) Blobaliation% competition% and technolog( ha$e led to which of the following trends in human
resource management1
A) .) managers assist top management with de$eloping and implementing strategies.
B) .) managers primaril( focus on pro$iding transactional ser$ices li-e recruiting and hiring.
C) 4etrics used to measure emplo(ee potential ha$e been replaced b( standardied testing.
!) College recruiting has increased as a result of the growing number of retiring bab( boomers.
Answer" A
E#planation" A) Blobaliation% competition% wor-force trends% and economic uphea$al ha$e led .)
managers to become more in$ol$ed with top management in de$eloping and implementing the firm6s
strategies or long/term plans. .) managers are focusing more on the big picture and less on
transactional ser$ices% which are being increasingl( outsourced.
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:1) Tara )obles earned an 4BA degree and is now an .) manager for a Eortune :33 compan(. 2n
which of the following tas-s does Tara6s ad$anced degree benefit her the most1
A) training interns to perform basic computer tas-s
B) recruiting college graduates for entr(/le$el positions
C) distributing pension pa(ments to retiring emplo(ees
!) assisting upper management in formulating business strategies
Answer" !
E#planation" !) .uman resource managers in toda(6s wor-force still need s-ills in areas such as
emplo(ee selection% training% and compensation% as .) managers in the past did. .owe$er% modern .)
managers also re0uire broader business -nowledge and proficiencies% which can be gained through an
4BA program. Eor e#ample% to assist top management in formulating strategies% the human resource
manager needs to be familiar with strategic planning% mar-eting% production% and finance. .e or she
must also be able to Hspea- the CE&6s language%H b( e#plaining human resource acti$ities in financiall(
measurable terms% such as return on in$estment and cost per unit of ser$ice.
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:*) 9hich of the following most li-el( e#plains wh( top .) e#ecuti$es are being paid increasingl( high
salaries1
A) A firm6s $ision is onl( effecti$e when .) managers pla( a strategic role in its de$elopment.
B) .uman capital is lin-ed to increased producti$it( and customer satisfaction.
C) Transactional acti$ities are more cost/effecti$e when outsourced b( .).
!) Business strategies de$eloped b( .) managers are 0uantifiable.
Answer" B
E#planation" B) 4an( emplo(ers toda(% such as +.+. Bean% -now that a great staff ma-es them more
competiti$e% and that the better the( treat their staff% the better the staff treat customers. .uman
capitalthe emplo(ees6 -nowledge% s-ills% and e#periencescan ha$e a big effect on important
organiational outcomes such as customer satisfaction% profitabilit(% product de$elopment% and corporate
growth. As a result% top .) e#ecuti$es are being increasingl( well paid. ,tudies also show that top
managers recognie the crucial role human resource managers can pla( in achie$ing a compan(6s
strategic goals.
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:5) 9hich of the following is +EA,T li-el( to be used b( .) managers to pro$ide transactional
ser$ices1
A) de$eloping embedded wor- teams
B) outsourcing clerical tas-s to $endors
C) establishing centralied call centers
!) offering self/administered benefits plans
Answer" A
E#planation" A) An increasing number of .) managers are helping de$elop long/term plans and
strategies% so transactional tas-s are being handled in new wa(s. Benefits enrollment and in0uiries are
fre0uentl( handled b( outside $endors% centralied call centers% or b( emplo(ees through intranet/based
9eb sites.
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:8) 9hich of the following terms refers to a set of .) management policies and practices that together
produce superior emplo(ee performance1
A) career management s(stem
B) in/house de$elopment s(stem
C) high/performance wor- s(stem
!) management assessment s(stem
Answer" C
E#planation" C) A high/performance wor- s(stem is a set of human resource management policies and
practices that together produce superior emplo(ee performance. Eirms with .P9,s t(picall( pa( more%
use sophisticated recruitment practices% and use self/managing wor- teams.
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::) @erem(% an .) specialist% wor-s for a firm that has de$eloped a high/performance wor- s(stem.
9hich of the following practices is +EA,T li-el( to be used at @erem(6s firm1
A) emplo(ee training
B) automatic pa( increases
C) wor-place safet( measures
!) producti$it( measurements
Answer" B
E#planation" B) .igh/performance wor- s(stems are t(picall( characteried b( applicant screening to
determine the best emplo(ees% e#tensi$e emplo(ee training% and plant safet( programs. .P9,s are more
li-el( to use e$idence/based .) management% which in$ol$es the use of producti$it( measurements to
ma-e .) decisions. .P9,s are more li-el( to offer merit and incenti$e pa( rather than automatic pa(
increases.
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:;) E$idence/based human resource management relies on all of the following t(pes of e$idence
EXCEPT ________.
A) anal(tics
B) e#isting data
C) research studies
!) 0ualitati$e opinions
Answer" !
E#planation" !) Kualitati$e information or opinions are not characteristic of e$idence/based .)
management because neither can be measured. E$idence/based human resource management is based on
the use of data% facts% anal(tics% scientific rigor% critical e$aluation% and criticall( e$aluated researchDcase
studies to support human resource management proposals% decisions% practices% and conclusions.
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:=) 9hich term refers to a set of 0uantitati$e performance measures that human resource managers use
to assess their operations1
A) ratios
B) tools
C) metrics
!) case studies
Answer" C
E#planation" C) 4etrics are 0uantitati$e performance measures used b( .) managers to assess
operations. 4etrics are used in e$idence/based human resource management to ma-e decisions about
.) management practices and policies.
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:>) 4AX Computers manufactures affordable laptops and des-tops at its factor( in Ariona. 4AX has
e#perienced a moderate amount of financial success% but upper management wants the firm to grow at a
faster rate and become a bigger pla(er in the highl( competiti$e computer mar-et. The firm6s greatest
problems relate to its emplo(ees. Emplo(ee turno$er is highmost emplo(ees at 4AX lea$e within *
(ears or less of being hired. 2n addition% the rate of producti$it( among emplo(ees is not as high as
e#ecuti$es would li-e. The $ice president of human resources is considering mo$ing 4AX towards a
high/performance wor- s(stem.
9hich of the following best supports the argument that 4AX should mo$e towards a high/performance
wor- s(stem1
A) 4AX will be able to reduce 0ualit( control issues b( reassigning line and staff managers to new
departments.
B) Gsing tests and $alidated inter$iews during recruitment will enable 4AX to screen 'ob candidates
effecti$el(.
C) &utsourcing clerical tas-s will enable 4AX to raise emplo(ee salaries% implement fle#ible schedules%
and increase producti$it(.
!) 4AX6s competitors regularl( use benchmar-ing as a method for comparing their emplo(ees with
those in other firms.
Answer" B
E#planation" B) A high/performance wor- s(stem is a set of .) management policies and practices that
'ointl( produce superior emplo(ee performance. .P9,s t(picall( pa( more% train emplo(ees more% use
more ad$anced recruitment and hiring practices% and use self/managing wor- teams. 4AX would
impro$e emplo(ee producti$it( and reduce turno$ers if it effecti$el( recruited and tested applicants to
ma-e sure the( were the right people for the 'ob.
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:?) 4AX Computers manufactures affordable laptops and des-tops at its factor( in Ariona. 4AX has
e#perienced a moderate amount of financial success% but upper management wants the firm to grow at a
faster rate and become a bigger pla(er in the highl( competiti$e computer mar-et. The firm6s greatest
problems relate to its emplo(ees. Emplo(ee turno$er is highmost emplo(ees at 4AX lea$e within two
(ears or less of being hired. 2n addition% the rate of producti$it( among emplo(ees is not as high as
e#ecuti$es would li-e. The $ice president of human resources is considering mo$ing 4AX towards a
high/performance wor- s(stem.
9hich of the following 0uestions is most rele$ant to 4AX6s decision to mo$e toward a high/
performance wor- s(stem1
A) .ow would the implementation of self/managing wor- teams affect emplo(ee morale and wor-
standards at 4AX1
B) .ow will 0ualitati$e performance measures address the needs of 4AX emplo(ees in regard to the
firm6s benefits plan1
C) 9hat roles should line managers% staff managers% and .) managers at 4AX pla( in performance
appraisals1
!) 9hat case studies are a$ailable to compare the s-ills of 4AX emplo(ees with wor-ers in other
industries1
Answer" A
E#planation" A) .P9,s t(picall( pa( more% train emplo(ees more% use more ad$anced recruitment and
hiring practices% and use self/managing wor- teams. B( answering the 0uestion about emplo(ee morale
and wor- standards% it would become clear that 4AX should mo$e towards a .P9, and self/managing
wor- teams. Benefits plans and performance appraisals are less rele$ant to a .P9,. Case studies are
useful in e$idence/based .)4 but not necessaril( to .P9,s.
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;3) An .) scorecard is primaril( used to measure the relationship between .) acti$ities and ________.
A) emplo(ee career de$elopment
B) benefits of outsourcing
C) organiational structure
!) emplo(ee beha$iors
Answer" !
E#planation" !) 4anagers often use an .) scorecard process to measure the human resource function6s
effecti$eness. The .) scorecard is a concise measurement s(stem that shows the 0uantitati$e standards
the firm uses to measure each .) acti$it(% to measure the emplo(ee beha$iors resulting from these
acti$ities% and to measure the strategicall( rele$ant organiational outcomes of those emplo(ee
beha$iors.
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;1) 9hich term refers to the standards someone uses to decide what his or her conduct should be1
A) morals
B) ethics
C) autonom(
!) responsibilit(
Answer" B
E#planation" B) Ethics refers to the standards someone uses to decide what his or her conduct should
be. Ethical decisions alwa(s in$ol$e moralit(matters of serious conse0uence to societ(6s well/being%
such as murder% l(ing% and stealing.
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;*) All of the following are ethical issues that must be considered b( human resource managers
EXCEPT ________.
A) wor-place safet(
B) affirmati$e action
C) ECC regulations
!) pri$ac( rights
Answer" C
E#planation" C) The regulations of the Eederal Communications Commission are not li-el( to affect
decisions made b( .) managers. Ethical issues faced b( .) managers include wor-place safet(%
securit( of emplo(ee records% emplo(ee theft% affirmati$e action% comparable wor-% and emplo(ee
pri$ac( rights.
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;5) @ennifer was recentl( certified as a professional human resource manager. 9hich organiation most
li-el( pro$ided this certification to @ennifer1
A) ,ociet( for .uman )esource 4anagement
B) Academ( of .uman )esource E#ecuti$es
C) Association of Business Administration
!) Association of Certified .) 4anagers
Answer" A
E#planation" A) The ,ociet( for .uman )esource 4anagement F,.)4) pro$ides professional
certification to .) managers. ,.)4 e#ams test the professional6s -nowledge of all aspects of human
resource management% including ethics% management practices% staffing% de$elopment% compensation%
labor relations% and health and safet(.
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;8) @ames is preparing to ta-e an ,.)4 certification e#am. 9hich of the following sub'ects is +EA,T
important for @ames to stud(1
A) strategic management
B) wor-force planning
C) information technolog(
!) occupational health and safet(
Answer" C
E#planation" C) The ,ociet( for .uman )esource 4anagement F,.)4) pro$ides professional
certification e#ams that test the professional6s -nowledge of all aspects of human resource management%
including ethics% management practices% staffing% de$elopment% compensation% labor relations% strategic
management% wor-force planning% and occupational health and safet(. 2nformation technolog( is less
li-el( to be co$ered on the ,.)4 e#am.
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;:) Gnli-e .) managers of the past% modern .) managers must be able to ________.
A) hire wor-ers who are well/matched to a firm6s .) needs
B) assist with emplo(ee training in departments within a firm
C) de$elop and implement a firm6s long/term business strategies
!) e#plain .) acti$ities in terms of a firm6s finances and producti$it(
Answer" !
E#planation" !) 2n the past% .) managers mainl( focused on emplo(ee training% compensation% and
hiring. Cow% .) managers need to be familiar with strategic planning% mar-eting% production% and
finance. .e or she must also be able to Hspea- the CE&6s language%H b( e#plaining human resource
acti$ities in financiall( measurable terms% such as return on in$estment and cost per unit of ser$ice. &nl(
top/le$el managers de$elop long/term business strategies for a firm% although .) managers ma( assist
in the process.
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;;) Planning% organiing% staffing% leading% and controlling are the fi$e basic functions of the
management process.
Answer" T)GE
E#planation" A manager is someone who is responsible for accomplishing the organiation6s goals% and
who does so b( managing the efforts of the organiation6s people. 4ost writers agree that managing
in$ol$es performing fi$e basic functions" planning% organiing% staffing% leading% and controlling.
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;=) Personnel management in$ol$es recruiting prospecti$e emplo(ees% setting performance standards%
and monitoring production le$els.
Answer" EA+,E
E#planation" Personnel management in$ol$es recruiting% setting performance standards% and counseling.
.owe$er% the controlling function of the management process re0uires managers to monitor production
le$els and set other t(pes of standards.
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;>) ,etting standards such as sales 0uotas% 0ualit( standards% or production le$els is part of the leading
function of human resource management.
Answer" EA+,E
E#planation" ,etting standards such as sales 0uotas% 0ualit( standards% or production le$els is part of the
controlling rather than the leading function of human resource management. +eading in$ol$es
maintaining morale and moti$ating wor-ers.
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;?) The planning function of management includes establishing goals and standards and de$eloping
forecasts.
Answer" T)GE
E#planation" The planning function of management includes establishing goals and standards%
de$eloping rules and procedures% and de$eloping plans and forecasting. Planning% organiing% staffing%
leading% and controlling are the fi$e functions of the management process.
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=3) Communicating is one of the fi$e basic functions of the management process.
Answer" EA+,E
E#planation" Planning% organiing% staffing% leading% and controlling are the fi$e functions of the
management process. Although communicating with emplo(ees is part of e$er( step% it is not one of the
fi$e basic functions.
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=1) .iring the wrong person for the 'ob% committing unfair labor practices% and failing to moti$ate
emplo(ees are personnel mista-es that hinder firms from achie$ing positi$e results.
Answer" T)GE
E#planation" Common .)4 mista-es include hiring the wrong people% failing to moti$ate wor-ers% and
committing unfair labor practices. The primar( goal of .)4 is to help the firm achie$e its goals% and
such .)4 mista-es hinder that process.
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=*) Autonom( refers to the right to ma-e decisions% direct the wor- of others% and gi$e orders.
Answer" EA+,E
E#planation" Authorit( rather than autonom( is the right to ma-e decisions% direct the wor- of others%
and gi$e orders. 2n management% authorit( is distinguished between line authorit( and staff authorit(.
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=5) ,taff managers are authoried to issue orders to subordinates and are directl( in charge of
accomplishing the organiation6s basic goals.
Answer" EA+,E
E#planation" +ine managers% not staff managers% are authoried to issue orders down the chain of
command. ,taff managers ha$e the authorit( to ad$ise other managers or emplo(ees.
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=8) .uman resource managers are generall( staff managers.
Answer" T)GE
E#planation" .uman resource managers are usuall( staff managers. The( assist and ad$ise line
managers in areas li-e recruiting% hiring% and compensation. .owe$er% line managers still ha$e human
resource duties.
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=:) ,taff managers ha$e staff authorit( which enables them to issue orders down the chain of command%
unli-e line managers.
Answer" EA+,E
E#planation" +ine managers can issue orders down the chain of command% while staff managers are
onl( able to ad$ise other managers and emplo(ees.
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=;) 2n small organiations with less than 133 emplo(ees% line managers fre0uentl( handle all personnel
duties without the assistance of a human resource staff.
Answer" T)GE
E#planation" 2n small firms% line managers are able to handle personnel duties. .owe$er% large firms of
o$er 133 emplo(ees re0uire human resource specialists.
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==) 2n most large firms% human resource managers assist line managers with hiring% training% e$aluating%
rewarding% counseling% promoting% and hiring emplo(ees.
Answer" T)GE
E#planation" Assisting and ad$ising line managers is the heart of the human resource manager6s 'ob. .)
assists in hiring% training% e$aluating% rewarding% counseling% promoting% and firing emplo(ees.
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=>) 2n the ma'orit( of firms% the tas- of inter$iewing 'ob candidates is shared between .) and the hiring
department% but training is t(picall( the sole responsibilit( of staff managers.
Answer" EA+,E
E#planation" .) and line managers share responsibilit( for most human resource acti$ities. Eor
e#ample% in about two/thirds of the firms in one sur$e(% human resource and line managers shared
responsibilit( for s-ills training.
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=?) The role of labor relations specialists includes in$estigating EE& grie$ances and collecting data
about 'obs for the purpose of writing 'ob descriptions.
Answer" EA+,E
E#planation" +abor relations specialists ad$ise management on all aspects of unionLmanagement
relations. EE& coordinators in$estigate EE& grie$ances% and 'ob anal(sts collect data for 'ob
descriptions.
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>3) E#tensi$e tra$el is re0uired of recruiters% compensation managers% and 'ob anal(sts.
Answer" EA+,E
E#planation" )ecruiters will most li-el( ha$e to tra$el to inter$iew prospecti$e candidates. &ther .)
positions such as compensation manager or 'ob anal(sts are less li-el( to tra$el.
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>1) Eirms of all sies are re0uired to ha$e at least one full/time human resource manager on staff.
Answer" EA+,E
E#planation" Emplo(ers usuall( ha$e about one .) professional per 133 emplo(ees. ,mall firms Fsa(%
those with less than 133 emplo(ees) generall( do not ha$e the critical mass re0uired for a full/time
human resource manager.
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>*) ,ur$e(s indicate that small firms rel( on creati$e recruiting practices to attract 0ualified candidates.
Answer" EA+,E
E#planation" ,mall firms with less than 133 emplo(ees generall( do not ha$e the critical mass re0uired
for a full/time human resource manager. Their human resource management therefore tends to be Had
hoc and informal.H Eor e#ample% one sur$e( concludes that small firms tend to use Hunimaginati$eH
recruiting practices li-e rel(ing on newspaper ads% wal-/ins% and word/of/mouth.
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>5) Transactional .) groups focus on assisting top management in big picture issues such as de$eloping
a firm6s long/term strategic plan.
Answer" EA+,E
E#planation" Corporate .) groups focus on assisting top management in big picture issues such as
de$eloping a firm6s long/term strategic plan. Transactional .) groups focus on pro$iding specialied
.) support on dail( transactional .) acti$ities li-e benefits administration.
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>8) An embedded .) unit focuses on using centralied call centers and benefits ad$isors to pro$ided
specialied support.
Answer" EA+,E
E#planation" The transactional .) group focuses on using centralied call centers and $endors Fsuch as
benefits ad$isors) to pro$ide specialied support in da(/to/da( transactional .) acti$ities to the
compan(6s emplo(ees. The embedded .) unit assigns .) generalists to departments to pro$ide the
assistance the departments need.
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>:) 2B4 isolates .) functions into silos% which enables teams of .) specialists to focus on the needs of
specific groups of emplo(ees.
Answer" EA+,E
E#planation" According to 2B46s senior $ice president of human resources% the traditional .)
organiation improperl( isolates .) functions into HsilosH such as recruitment% training% and emplo(ee
relations. .e sa(s this silo approach means there6s no one team of .) specialists focusing on the needs
of specific groups of emplo(ees.
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>;) Between now and *318% the ma'orit( of new 'obs added in the Gnited ,tates will be in the ser$ices
industries.
Answer" T)GE
E#planation" Toda( o$er two/thirds of the G.,. wor-force is emplo(ed in producing and deli$ering
ser$ices% not products. Between *338 and *318% almost all the 1? million new 'obs added in the Gnited
,tates will be in ser$ices% not in goods/producing industries.
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>=) According to the Bureau of +abor ,tatistics% between now and *31; the number of wor-ers
classified as Hwhite% non/.ispanicH will decrease and the number of wor-ers classified as Asian will
increase.
Answer" T)GE
E#planation" According to the Bureau of +abor ,tatistics% the number of wor-ers classified as Hwhite%
non/.ispanicH will decrease between 1??; and *31; while the wor-force will see an increase in the
number of Asian% .ispanic% and African/American wor-ers.
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>>) As bab( boomers retire from the wor-force% there will be more people entering the labor pool than
lea$ing it.
Answer" EA+,E
E#planation" According to the Bureau of +abor ,tatistics% the number of wor-ers classified as Hwhite%
non/.ispanicH will decrease between 1??; and *31; while the wor-force will see an increase in the
number of Asian% .ispanic% and African/American wor-ers.
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>?) The ./1B $isa program allows G.,. emplo(ers to hire foreign wor-ers to fill wor-force shortfalls
for hourl( positions that re0uire onl( limited s-ills.
Answer" EA+,E
E#planation" 9ith retirements triggering pro'ected wor-force shortfalls% man( emplo(ers are hiring
foreign wor-ers for G.,. 'obs. The ./1B $isa program lets G.,. emplo(ers recruit s-illed foreign
professionals to wor- in the Gnited ,tates when the( cannot find 0ualified G.,. wor-ers. .owe$er% one
stud( concluded that man( wor-ers brought in under the programs filled 'obs that didn6t actuall( demand
highl( specialied s-ills% man( pa(ing less than M1: an hour.
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?3) 2n recent (ears% the number of .) administrati$e 'obs has dropped% and emplo(ers are attempting to
consolidate their .) management practices.
Answer" T)GE
E#planation" 2n part due to the recent recession% .) administrati$e 'obs are down from :I to 18I%
depending on the industr(. 9ith .) staffing down% man( emplo(ers are ta-ing steps to simplif( and
consolidate their human resource management practices and costs.
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?1) 4odern human resource managers perform transactional duties as well as help top management
de$elop and e#ecute the firm6s long/term plans.
Answer" T)GE
E#planation" Toda(6s new human resource managers are in$ol$ed in more Hbig pictureH issues. The( do
not 'ust do transactional things li-e signing on new emplo(ees. Emplo(ers want them to be the firms6
internal consultants% identif(ing and institutionaliing changes that help emplo(ees better contribute to
the compan(6s success% and helping top management formulate and e#ecute its long/term plans or
strategies.
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?*) +ow/performance wor- s(stems are t(picall( characteried b( minimum wages% e#tensi$e emplo(ee
training% and sophisticated recruitment and hiring practices.
Answer" EA+,E
E#planation" A high/performance wor- s(stem is a set of human resource management policies and
practices that together produce superior emplo(ee performance. .igh/performance wor- s(stems are
t(picall( characteried b( high wages% e#tensi$e emplo(ee training% and sophisticated recruitment and
hiring practices.
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?5) ,tudies indicate that high/performance firms pro$ide more training to emplo(ees and -eep operating
costs down b( pa(ing lower salaries than competing firms.
Answer" EA+,E
E#planation" A high/performance wor- s(stem is a set of human resource management policies and
practices that together produce superior emplo(ee performance. Eor e#ample% in one stud(% the high
performance plants paid more% trained more% used more sophisticated recruitment and hiring practices%
and used more self/managing wor- teams. These plants also had the best o$erall performance in terms of
higher profits% lower operating costs% and lower turno$er.
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?8) The e$idence used in e$idence/based human resource management t(picall( comes from actual
measurements% e#isting data% or criticall( e$aluated research studies.
Answer" T)GE
E#planation" E$idence is the core of e$idence/based human resource management. !ata% facts%
anal(tics% scientific rigor% critical e$aluation% and criticall( e$aluated researchDcase studies are used to
support human resource management proposals% decisions% practices% and conclusions.
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?:) .) scorecards are technological tools that are primaril( used b( .) managers to compare the s-ills
and credentials of 'ob candidates.
Answer" EA+,E
E#planation" The .) scorecard is a concise measurement s(stem% often presented in a des-top window
showing the 0uantitati$e standards the firm uses to measure each .) acti$it(% to measure the emplo(ee
beha$iors resulting from these acti$ities% and to measure the strategicall( rele$ant organiational
outcomes of those emplo(ee beha$iors.
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?;) The ,.)4 .uman )esource Certification e#ams include testing on management practices% staffing%
de$elopment% compensation% labor relations% and health and safet(.
Answer" T)GE
E#planation" The ,ociet( for .uman )esource 4anagement offers .) professional certification e#ams.
The e#ams test the professional6s -nowledge of all aspects of human resource management% including
ethics% management practices% staffing% de$elopment% compensation% labor relations% and health and
safet(.
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?=) The ,arbanes/&#le( Act is intended to curb erroneous corporate financial reporting.
Answer" T)GE
E#planation" Congress passed the ,arbanes/&#le( Act in *335. To help ensure that managers ta-e their
ethics responsibilities seriousl(% ,arbanes/&#le( F,&X) aims to curb erroneous corporate financial
reporting.
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?>) Because of the ,arbanes/&#le( Act% .) managers must now re$iew and appro$e a firm6s financial
statements.
Answer" EA+,E
E#planation" ,arbanes/&#le( re0uires CE&s and CE&s rather than .) managers to certif( their
companies6 periodic financial reports. ,&X also prohibits personal loans to e#ecuti$e officers and
directors% and re0uires CE&s and CE&s to reimburse their firms for bonuses and stoc- option profits if
corporate financial statements subse0uentl( re0uire restating.
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??) Ethical issues such as wor-place safet(% securit( of emplo(ee records% comparable wor-% and
emplo(ee pri$ac( rights are all related to human resource management.
Answer" T)GE
E#planation" Ethics refers to the standards someone uses to decide what his or her conduct should be.
Ethical issues related to .) management include wor-place safet(% securit( of emplo(ee records%
emplo(ee theft% affirmati$e action% comparable wor-% and emplo(ee pri$ac( rights.
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133) ,ince .) managers are e#pected to participate in long/term strategic planning% the( no longer need
to ha$e recruiting and training s-ills.
Answer" EA+,E
E#planation" Acti$ities such as strategiing% measuring% and dealing with technolog( demand that .)
managers e#hibit new human resource management proficiencies. .owe$er% human resource managers
still need s-ills in areas such as emplo(ee selection and training.
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131) Toda(6s trend is for .) managers to spend more time on administrati$e% transactional ser$ices and
less time on long/term strategic planning.
Answer" EA+,E
E#planation" 4odern .) managers must handle both strategic planning and transactional ser$ices.
Technolog( has changed how .) departments manage transaction ser$ices% such as benefits
administration. 2ntranet/based 9eb sites enable emplo(ees to self/administer benefits plans for e#ample.
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13*) The ,arbanes/&#le( Act totall( defines the realm of ethics with which the .) manager has to
cope.
Answer" EA+,E
E#planation" The ,arbanes/&#le( Act helps ensure that managers ta-e their ethics responsibilities
seriousl(% and it aims to curb erroneous corporate financial reporting. .owe$er% the human resource
manager6s responsibilities for ethics do not end with ,arbanes/&#le(. &ne sur$e( found that si# of the
ten most serious ethical issuesLwor-place safet(% securit( of emplo(ee records% emplo(ee theft%
affirmati$e action% Hcomparable wor-H% and emplo(ee pri$ac( rightsLwere human resource
management related.
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135) .uman resource managers who complete professional certification e#ams can earn ,P.)% BP.)%
or P.) certificates.
Answer" T)GE
E#planation" ,.)4 e#ams test the professional6s -nowledge of all aspects of human resource
management% including ethics% management practices% staffing% de$elopment% compensation% labor
relations% and health and safet(. Those who successfull( complete all re0uirements earn the ,P.)
F,enior Professional in .))% BP.) FBlobal Professional in .))% or P.) FProfessional in .))
certificate.
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138) .uman resource management is the sole responsibilit( of human resource managers% so line
managers and staff managers rel( hea$il( on .) specialists to hire the best emplo(ees.
Answer" EA+,E
E#planation" .uman resource management is the responsibilit( of e$er( managerNnot 'ust those in
human resources. Throughout e$er( page in the te#tboo-% (ou6ll therefore find an emphasis on practical
material that (ou as a manager will need to perform (our da(/to/da( management responsibilities.
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13:) Economic challenges faced on a national and a global le$el in recent (ears ha$e affected human
resource management at most firms.
Answer" EA+,E
E#planation" The economic challenges the Gnited ,tates and the world faced starting around *33>
prompted most emplo(ers to re/thin- the costs and benefits of how the( deli$ered their human resource
ser$ices.
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13;) 9hat are the fi$e basic functions of management1 E#plain some of the specific acti$ities in$ol$ed
in each function. 2s one function more important for human resource management1
Answer" The fi$e basic functions are planning% organiing% staffing% leading% and controlling. Planning
acti$ities include establishing goals and standards% de$eloping rules and procedures% and de$eloping
plans and forecasting. &rganiing acti$ities include gi$ing specific tas- assignments to subordinates%
establishing departments% delegating authorit( to subordinates% and establishing channels of authorit(
and communication. ,taffing acti$ities include determining what t(pe of people should be hired%
recruiting prospecti$e emplo(ees% and setting performance standards. +eading acti$ities include
maintaining morale and moti$ating subordinates. Controlling acti$ities include setting standards such as
sales 0uotas and 0ualit( standards% and ta-ing correcti$e action as needed. ,taffing is the function most
readil( related to human resource management. .owe$er% .) managers actuall( perform all fi$e
functions.
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13=) E#plain the difference between line authorit( and staff authorit(. 9hat t(pe of authorit( do human
resource managers ha$e1
Answer" Authorit( is the right to ma-e decisions% to direct the wor- of others% and to gi$e orders. +ine
managers are authoried to direct the wor- of subordinates and are directl( in charge of accomplishing
the organiation6s basic goals. ,taff managers are authoried to assist and ad$ise line managers in
accomplishing these basic goals. .uman resource managers are usuall( staff managers because the( are
responsible for assisting and ad$ising line managers in areas li-e recruiting% hiring% and compensation.
.owe$er% human resource managers do ha$e line authorit( within their own department.
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13>) .ow ha$e technological ad$ances changed the .) en$ironment1 9hat technological tools enable
.) managers to perform their duties more efficientl(1
Answer" Technolog( is changing how businesses operate as well as the nature of wor-. 2n plants
throughout the world% -nowledge/intensi$e high/tech manufacturing 'obs are replacing traditional
factor( 'obs% which means that emplo(ees need new s-ills and training to e#cel at increasingl( comple#
'obs. 2ntranet/based 9eb sites enable emplo(ees to self/administer benefits plans% which allows .)
managers to focus on other tas-s. .) scorecards presented in des-top windows help managers see the
relationships between emplo(ee beha$iors and .) acti$ities% such as training. 2nternet/based
communications enable firms to offshore call center 'obs to 2ndia% which has had a significant effect on
.) management.
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13?) 9hat is human resource management1 9h( is human resource management important to all
managers1 9hat is the role of line managers in human resource management1
Answer" .uman resource management is the process of ac0uiring% training% appraising% and
compensating emplo(ees% and of attending to their labor relations% health and safet(% and fairness
concerns. .) management is important to all managers because managers can do e$er(thing else
rightla( brilliant plans% draw clear organiation charts% set up world/class assembl( lines% and use
sophisticated accounting controlsbut still fail% b( hiring the wrong people or b( not moti$ating
subordinates. &n the other hand% man( managerspresidents% generals% go$ernors% super$isorsha$e
been successful e$en with inade0uate plans% organiations% or controls because the( had the -nac- of
hiring the right people for the right 'obs and moti$ating% appraising% and de$eloping them. The direct
handling of people is an integral part of e$er( line manager6s duties. 4ore specificall(% line managers
must place the right person in the right 'ob% orient and train new emplo(ees% impro$e the 'ob
performance of each person% gain cooperation and de$elop smooth wor-ing relationships% interpret the
compan(6s policies and procedures% control labor costs% and protect emplo(ees6 health and ph(sical
condition.
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113) 9hat duties are re0uired of most .) managers1 .ow ha$e the duties of .) managers changed
from 53 (ears ago1
Answer" 4ost .) managers conduct 'ob anal(ses% recruit 'ob candidates% train emplo(ees% compensate
emplo(ees% and communicate with emplo(ees and other managers. 4odern managers are e#pected to be
in$ol$ed in strategic issues rather than onl( in transactional duties as in the past.
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111) 9hat proficiencies are necessar( for .) managers to succeed in toda(6s business en$ironment1
Answer" ,trategiing% internal consulting% and dealing with outside $endors and technolog( call for new
human resource management proficiencies. &f course% human resource managers still need s-ills in
areas such as emplo(ee selection% training% and compensation. But in addition% the( re0uire broader
business -nowledge and proficiencies.
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11*) +ist and e#plain fi$e personnel mista-es (ou do not want to ma-e as an .) manager.
Answer" The answer should include an( of the following" to ha$e (our emplo(ee not performing at
pea-% to hire the wrong person% to e#perience high turno$er% to ha$e emplo(ees not doing their best% to
ha$e the compan( ta-en to court because of discriminator( actions% to ha$e (our compan( cited for
safet( $iolations% to ha$e undertrained emplo(ees% and to commit unfair labor practices.
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115) 9h( are demographic trends important to .) managers1
Answer" .) managers need to be cogniant of demographic trends because changes in the a$ailabilit(
of wor-ers directl( affect recruiting and selection efforts. The changes in the wor-force can impact the
a$ailabilit( of technologicall( sa$$( emplo(ees or the a$ailabilit( of s-illed labor. Additionall(% the
a$ailabilit( of emplo(ees affects the compensation that needs to be offered to attract and retain $alued
emplo(ees.
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118) 2n a brief essa(% compare the role of human resource management in small businesses and in high/
performance wor- s(stems.
Answer" ,mall firms generall( do not ha$e the critical mass re0uired for a full/time human resource
manager. Their human resource management therefore tends to be informal. ,mall firms t(picall( do
little or no formal training and recruit emplo(ees with newspaper ads and through word/of/mouth. 2n
contrast% a high/performance wor- s(stem is a set of human resource management policies and practices
that together produce superior emplo(ee performance. .P9,s t(picall( pa( well% train emplo(ees
regularl(% use sophisticated recruitment and hiring practices% and use self/managing wor- teams.
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11:) 9hat changes in the business en$ironment ha$e led to .) managers pla(ing more strategic roles in
organiations1 As a result of these changes% what s-ills are now re0uired of modern .) managers1
Answer" Changes in the en$ironment of .) management are re0uiring .) to pla( a more strategic role
in organiations. These changes include growing wor-force di$ersit(% rapid technological change%
globaliation% and changes in the nature of wor-% such as the mo$ement toward a ser$ice societ( and a
growing emphasis on education and human capital. .uman resource managers still need s-ills in areas
such as emplo(ee selection and training. But now the( also re0uire broader business -nowledge and
competencies. Eor e#ample% to assist top management in formulating strategies% the human resource
manager needs to understand strategic planning% mar-eting% production% and finance.
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