Multiple Choice Questions

26. (p. 2) The policies, practices, and systems that influence employees’ behavior, attitudes, and performance constitute: 
A. supply chain management.
B. materials management.
C. human resource management.
D. labor laws.
E. equal employment opportunity.

27. (p. 2) Managers and economists traditionally have seen human resource management as: 
A. a source of value to their organization.
B. a necessary expense.
C. an asset.
D. an essential component of a high-performance work system.
E. a waste of money.

 28. (p. 3) The concept of “human resource management” implies that employees: 
A. are interchangeable.
B. are easily replaceable.
C. are a necessary expense.
D. can add economic value to the organization.
E. are not crucial to the company’s success or failure.


 29. (p. 3) As a type of resource, human capital refers to: 
A. the wages, benefits, and other costs incurred in support of HR functions in an organization.
B. executive talent within an organization.
C. the tax-deferred value of an employee’s 401(k) plan.
D. employee characteristics that add economic value to the organization.
E. the total budget allocated to the HR department in an organization.

 30. (p. 3) Human capital includes all of the following EXCEPT: 
A. training.
B. profitability.
C. relationships.
D. intelligence.
E. insight.

31. (p. 4) When an organization is better than competitors at something and can hold that advantage over an extended period of time, it is said to have a(n): 
A. differentiated focus.
B. sustainable competitive advantage.
C. core competency.
D. low-cost competitive advantage.
E. optimum efficiency frontier.

32. (p. 4) The text implies that human resources that are valuable, rare, inimitable, and hard to replace contribute to an organization achieving: 
A. only short-term success.
B. low employee turnover.
C. low client retention rates.
D. low recruitment costs.
E. a sustainable competitive advantage.

33. (p. 4) Human resources provide an organization with a sustainable competitive advantage because: 
A. highly skilled and knowledgeable employees are commonly available.
B. the organization can easily duplicate the success of competitors’ human resources.
C. after financial resources, human resources are the most committed to an organization.
D. high-quality employees provide a needed service as they perform many critical functions.
E. employees can be easily trained, motivated, and developed to care about customers.

 34. (p. 4) Which of the following terms describes an organization in which technology, organizational structure, people, and processes all work together to give an organization an advantage in the competitive environment? 
A. Low-involvement work system
B. Optimal production system
C. Balanced score-card system
D. Environmental work system
E. High-performance work system

35. (p. 4) On average, an organization has one HR staff person for every _____ employees served by the department. 
A. 15
B. 27
C. 54
D. 93
E. 145

 36. (p. 4) According to the text, administrative services and transactions, business partner services, and strategic partner, all constitute: 
A. activities usually outsourced by large organizations.
B. the responsibilities of HR departments.
C. tasks carried out by supervisors in most companies.
D. functions of the top management in large companies.
E. HR activities usually carried out by line managers in large companies.

37. (p. 5) If one were to think of HR as a business, which of the following “product lines” involves developing effective HR systems that help the organization meet its goals for attracting, keeping, and developing people with the skills it needs? 
A. Administrative services
B. Business partner services
C. Strategic partner
D. Product quality audit
E. Administrative transactions

38. (p. 6) Which one of the following responsibilities is specifically associated with the HR function of employee relations? 
A. Conducting attitude surveys
B. Work analysis
C. HR information systems
D. Human resource planning and forecasting
E. Job design

 39. (p. 6) Which of the following responsibilities is specifically associated with the HR function of support for strategy? 
A. Discipline
B. Human resource planning and forecasting
C. Wage and salary administration
D. Developing employee handbooks and company publications
E. Developing an HR information system

40. (p. 6) Which of the following refers to the process of getting detailed information about jobs? 
A. Job design
B. Workflow analysis
C. Job analysis
D. Work study
E. Job review

41. (p. 6) Job design is the process of: 
A. defining the way work will be performed and the tasks that a given job requires.
B. the process of getting detailed information about jobs.
C. the process by which the organization attempts to identify suitable candidates for jobs.
D. enabling employees to learn job-related knowledge, skills, and behavior.
E. presenting candidates with positive and negative information about a job.

 42. (p. 6) At Smartech, a company dealing in software products, employees often complain about lack of clarity regarding the tasks they are required to perform. Specifically which HR function, it would appear from this information, has been performed inefficiently at Smartech? 
A. Compliance with laws
B. Analysis and design of work
C. Compensation and benefits
D. Maintaining employee relations
E. Recruitment and selection

43. (p. 6) Why has the job trend shifted to broadly defined jobs? 
A. Emphasis on innovation and quality
B. Increased demand for low skilled workers
C. Increased focus on simplifying jobs
D. Lack of competition
E. Increased need for efficiency

44. (p. 7) Which of the following refers to the process through which an organization seeks applicants for potential employment? 
A. Orientation
B. Selection
C. Recruitment
D. Work analysis
E. Job design

45. (p. 7) The process by which the organization attempts to identify applicants with the necessary knowledge, skills, abilities, and other characteristics that will help the organization achieve its goals is referred to as: 
A. orientation.
B. selection.
C. recruitment.
D. work analysis.
E. performance management.

46. (p. 7) According to a study quoted in the text, which of the following is one of the top qualities that employers say they are looking for in employees? 
A. Physical skills
B. Wide experience
C. Computer skills
D. Multilingual skills
E. Interpersonal skills

47. (p. 7) According to a study quoted in the text, which one of the following is NOT among the top qualities employers look for in employees? 
A. Computer skills
B. Work ethic
C. Initiative/flexibility
D. Honesty/loyalty
E. Interpersonal skills


48. (p. 7) _____ is a planned effort to enable employees to learn job-related knowledge, skills, and behavior. 
A. Selection
B. Employee relations
C. Training
D. Coordinating
E. Recruitment


 49. (p. 7) The HR function of _____ involves acquiring knowledge, skills, and behavior that improve employees’ ability to meet the challenges of a variety of new or existing jobs, including the client and customer demands of those jobs. 
A. recruitment
B. personnel policy
C. development
D. employee relations
E. selection


50. (p. 7) If a company, as part of its job redesign program, plans to set up teams to manufacture products, which of the following programs might it offer to help employees learn the ins and outs of effective teamwork? 
A. Development
B. Recruitment
C. Orientation
D. Selection
E. Performance management

51. (p. 8) The process of ensuring that employees’ activities and outputs match the organization’s goals is called: 
A. job analysis.
B. strategic management.
C. employee development.
D. performance management.
E. career planning.

52. (p. 8) Which of the following is an example of an outcome that can be used to evaluate performance? 
A. The manner in which a customer complaint is addressed
B. The method used to assemble a product
C. The order in which a series of tasks is performed
D. The number of customer complaints
E. The tone used in speaking to subordinates


53. (p. 8) Which one of the following is NOT true of the performance management process? 
A. Performance measures may emphasize either observable behaviors or outcomes, or both.
B. The evaluation may focus on the short term or long term.
C. When the person evaluating performance is not familiar with the details of the job, specific behaviors tend to be easier to evaluate than outcomes.
D. In some organizations, employees evaluate their own performance, and often, peers and subordinates participate, too.
E. The evaluation may focus on individual employees or groups.


54. (p. 8) Typically, the evaluation in performance management is completed by: 
A. HR specialists.
B. external job analysts.
C. the incumbent employee.
D. peers and subordinates.
E. the employee’s supervisor.


55. (p. 8) The employees at Edifice Financials complain that they are not provided feedback on their performance. They do not get proper information as to how they have performed and where they need to improve. The performance goals are vague and not measurable. Which HR function does Edifice Financials need to improve upon? 
A. Recruitment and selection
B. Employee relations
C. Training and development
D. Performance management
E. Planning and administering pay and benefits

56. (p. 9) This HR function includes preparing and distributing employee handbooks that detail company policies and, in large organizations, company publications such as a monthly newsletter or a Web site on the organization’s intranet. 
A. Recruitment and selection
B. Maintaining positive employee relations
C. Ensuring compliance with labor laws
D. Performance management
E. Planning and administering pay and benefits

57. (p. 9) When employees of an organization feel they have been discriminated against, see safety hazards, or have other problems and are dissatisfied with their supervisor’s response, they may turn to the HR department for help. Addressing such problems suitably is part of the HR function of: 
A. recruitment and selection.
B. maintaining positive employee relations.
C. training and developing employees.
D. performance management.
E. planning and administering pay and benefits.

58. (p. 9-10) The HR function of maintaining positive employee relations includes: 
A. maintaining performance measures on outcomes.
B. offering training programs on effective teamwork.
C. selecting only those applicants that are referred by employees.
D. maintaining communication with union representatives.
E. planning employee pay and benefits.

59. (p. 10) How does establishing and administering policies help organizations? 
A. It allows companies to handle situations fairly and objectively.
B. It allows companies to address issues on a case-by-case basis.
C. It eliminates documentation and record-keeping.
D. Employees are not told of the consequences of violating the policies.
E. It leaves a lot of room for subjective decision-making.

60. (p. 10) Labor laws: 
A. guarantee lifetime employment.
B. prohibit employment at will.
C. prohibit layoffs.
D. prohibit age discrimination.
E. do not govern pay and benefits.

61. (p. 10) Under the principle of “employment at will”, the employer may terminate employment: 
A. after two weeks’ notice.
B. at any time without notice.
C. immediately after written notice.
D. only if the employee voluntarily resigns.
E. only if he can show just cause.

62. (p. 11) Evidence-based HR refers to: 
A. the exclusive use of statistical models for planning, forecasting, and other related HR activities.
B. the establishment of measurable performance goals and desired outcomes during performance management.
C. demonstrating that human resource practices have a positive influence on the company’s profits or key stakeholders.
D. the process of ensuring that employees’ activities and outputs match the organization’s goals.
E. an organization-wide planned effort to enable employees to learn job-related knowledge, skills, and behavior.

 63. (p. 11) The process of identifying the numbers and types of employees the organization will require in order to meet its objectives is known as: 
A. supply chain management.
B. performance management.
C. human resource planning.
D. work analysis.
E. performance planning.

64. (p. 11) This process helps the human resource department to forecast the organization’s needs for hiring, training, and reassigning employees, and also includes handling or avoiding layoffs. 
A. Supply chain management
B. Job development
C. Human resource planning
D. Evidence-based HR
E. Corporate social responsibility

 65. (p. 12) Which of the following describes a company’s commitment to meeting the needs of its stakeholders? 
A. Corporate governance
B. Public relations
C. Social media optimization
D. Public governance
E. Corporate social responsibility


 66. (p. 12) The parties with an interest in the company’s success—typically, shareholders, the community, customers, and employees—constitute the _____ of a company. 
A. market
B. stakeholders
C. management
D. personnel
E. strategic partners

67. (p. 12) Ensuring a fair return on investors’ capital, safe and reliable products for customers, fair compensation and safe working conditions for employees, and clean air and water for communities, are all ways in which a company can exercise: 
A. public relations.
B. social networking.
C. corporate social responsibility.
D. social media optimization.
E. corporate governance.

68. (p. 13) An HR manager becomes a(n) _____ when she is so well respected in the organization that she can influence the positions taken by managers. This involves delivering results with integrity, sharing information, building trusting relationships, influencing others, providing candid observation, and taking appropriate risks. 
A. credible activist
B. cultural steward
C. strategic architect
D. operational executor
E. business ally

69. (p. 13) In the role of a cultural steward, an HR manager: 
A. administers day-to-day work of managing people.
B. helps employees find meaning in their work and manage work/life balance.
C. develops people strategies that contribute to the business strategy.
D. understands how the business makes money.
E. recognizes business trends and their impact on the business.


70. (p. 14) As ___, the HR manager knows the ways that people join the organization and move to different positions within it. 
A. strategy architect
B. cultural steward
C. talent manager/organizational designer
D. business ally
E. credible activist

71. (p. 14) For an HR manager, being a(n) _____ requires awareness of business trends and an understanding of how they might affect the business, as well as opportunities and threats they might present. 
A. strategy architect
B. cultural steward
C. talent manager/organizational designer
D. operational executor
E. credible activist

72. (p. 14) As ___, HR managers know how the business makes money, who its customers are, and why customers buy what the company sells. 
A. business allies
B. cultural stewards
C. talent managers/organizational designers
D. operational executors
E. credible activists

 73. (p. 14) At the most basic level, HR managers fulfilling the role of ___, carry out particular HR functions such as handling the selection, training, or compensation of employees. 
A. business allies
B. cultural stewards
C. talent managers/organizational designers
D. operational executors
E. credible activists


 74. (p. 14) Which of the following statements is true about HR responsibilities of supervisors? 
A. HR activities are invariably limited to the specialists in the HR department.
B. In small organizations, all HR activities are carried out by HR specialists.
C. Non-HR managers do not need be familiar with the basics of HRM.
D. Job analysis and design are usually outside the purview of supervisors.
E. Supervisors typically have responsibilities related to all the HR functions.

75. (p. 14) At a start-up company, the first supervisors are: 
A. the HR staff.
B. the company’s founders.
C. the shop-floor workers.
D. external auditors.
E. contract workers.

76. (p. 15) Ethics are: 
A. one’s religious values and beliefs.
B. what is required by law.
C. what is acceptable to the company.
D. the fundamental principles of right and wrong.
E. the economic principles guiding business.

 77. (p. 15) Which of the following is true of ethics in human resource management? 
A. Evidence shows that HRM practices invariably ethical.
B. The general public has a positive perception of the ethical conduct of U.S. businesses.
C. Many ethical issues in the workplace involve human resource management.
D. Most managers have a positive perception of the ethical conduct of U.S. businesses.
E. Most people believe that individuals apply values they hold in their personal lives to their professional activities.

 78. (p. 15) Which of the following views on employment reflects ethical principles embodied in the U.S. Constitution and Bill of Rights? 
A. HR managers must view employees as having basic rights.
B. Employees have the right to lifetime employment.
C. HR managers have the right to hire whoever they deem best suited for a job.
D. HR managers must view employees as a necessary expense.
E. HR managers must set aside quotas for minorities.

79. (p. 15) A widely adopted understanding of human rights, quoted in the text, assumes that in a moral universe, every person has certain basic rights—right of free consent, right of privacy, right of freedom of conscience, right of freedom of speech, and right to due process. This concept is based partly on the work of the philosopher: 
A. Plato.
B. Max Weber.
C. William James.
D. Immanuel Kant.
E. Aristotle.

80. (p. 15) The right of employees to know the nature of the job they are being hired to do and the obligation of a company not to deceive them in this respect is reflective of the basic Kantian right of ___. 
A. privacy
B. free consent
C. freedom of speech
D. freedom of conscience
E. due process

81. (p. 15-16) Which one of the following is NOT among Immanuel Kant’s basic human rights? 
A. Right of privacy
B. Right to lifetime employment
C. Right to due process
D. Right of freedom of conscience
E. Right of free consent

 82. (p. 16) Which one of Kant’s basic human rights is violated when a supervisor requires an employee to do something that is unsafe or environmentally damaging, in spite of the employee clearly objecting to the order? 
A. Right of freedom of speech
B. Right of equal opportunity employment
C. Right to due process
D. Right of freedom of conscience
E. Right of privacy

83. (p. 16) People’s right of privacy is the right to: 
A. know the nature of the job they are being hired for.
B. autonomy in how they carry out their work.
C. control what they reveal about their private life.
D. right to a fair and impartial hearing.
E. right to decline to reveal business details to regulatory agencies.

84. (p. 16) By keeping employees’ personal records confidential, an employer respects their right of: 
A. autonomy.
B. freedom of conscience.
C. due-process.
D. freedom of speech.
E. privacy.


85. (p. 16) People’s right to freedom of speech is the right to: 
A. criticize an organization’s ethics if they do so in good conscience.
B. refuse to do something that is environmentally unsafe.
C. do as they wish in their private life.
D. to be treated only as they knowingly and willingly consent to be treated.
E. prohibit criticism of theorganization.


86. (p. 16) If people believe their rights are being violated, they have the right to a fair and impartial hearing. This reflects the basic human right to: 
A. lifetime employment.
B. privacy.
C. due process.
D. free consent.
E. freedom of conscience.


87. (p. 17) Which one of the following does NOT represent an ethical principle of a successful company? 
A. Its employees assume responsibility for the actions of the company.
B. It has a sense of purpose or vision that employees value and use in their work.
C. It emphasizes mutual benefits in its customer, client, and vendor relationships.
D. It emphasizes fairness; that is, another person’s interests count as much as their own.
E. It emphasizes profit-maximization as the sole mission of the company.


88. (p. 17) Which of the following is a standard that human resource managers must satisfy for HRM practices to be ethical? 
A. Managers must treat employees as family.
B. Human resource practices must result in the greatest good for the largest number of people.
C. Employment practices must respect employees’ right of lifetime employment.
D. Managers must always maintain that customers are right.
E. Employment practices must respect the principle of employment-at-will.

89. (p. 18) Which one of the following statements about the HR profession is true? 
A. A degree in law is the main qualification for those who wish to choose HRM as a career.
B. The vast majority of HRM professionals have a postgraduate degree.
C. Professional certification in HRM continues to be less common than membership in professional associations.
D. Usually, HR generalists get paid substantially more than HR specialists.
E. HR generalists usually perform the full range of HRM activities.

 90. (p. 19) The primary professional organization for HRM is the: 

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