Chapter 01
Managing Human Resources
 

True / False Questions
 
1. Managers and economists traditionally have seen human resource management as a source of value to their organizations.
 
True    False
 
2. The concept of “human resource management” implies that employees in an organization cannot be considered as a resource and hence are interchangeable.
 
True    False
 
3. Human resources cannot be imitated.
 
True    False
 
4. High-performance work systems have been essential in making organizations strong enough to weather the storm of a recession and remain profitable when the economy begins to expand after the recession.
 
True    False
 
5. No two human resource departments will have precisely the same roles and responsibilities. 
 
True    False
 
6. The concern for innovation and quality in recent times has forced companies to use more narrowly defined jobs to increase efficiency.
 
True    False
 
7. The process of selection is limited to hiring new employees for job openings and excludes internal transfers and promotions.
 
True    False
 
8. Establishing and administering personnel policies allows the company to handle problematic situations more fairly and objectively than if it addressed such incidents on a case-by-case basis.
 
  
 
True    False
 
9. Companies following a low-cost strategy closely align their pay packages to the industry norms.
 
True    False
 
10. Establishing and administering personnel policies allows the company to handle problematic situations more fairly and objectively than if it addressed such incidents on a case-by-case basis.
 
True    False
 
11. The current federal laws fail to outline how to use employee databases in order to protect employees’ privacy while also meeting employers’ and society’s concerns for security.
 
  
 
True    False
 
12. Human resource management is increasingly becoming a purely administrative function.
 
True    False
 
13. Evidence-based HR refers to the practice of initiating disciplinary action against employees only in the presence of clear and demonstrable proof of undesirable behavior.
 
True    False
 
14. In organizations with a sustainable strategy, the HR departments focus on employee development and empowerment rather than short-term costs.
 
True    False
 
15. An HR professional can be an effective talent manager or organizational designer only when he has the knowledge of how the organization is structured and how that structure might be adjusted to help it meet its goals for developing and using employees’ talents.
 
True    False
 
16. Knowledge of business trends is essential for the strategic architect role of an HR professional.
 
True    False
 
17. The HR activities are exclusively carried out by an HR specialist in small organizations. 
 
True    False
 
18. The supervisors play a key role in employee relations as they are most often the voice of management for the employees.
 
True    False
 
19. The right of free consent states that employers can conceal the nature of the job while hiring an employee for a particular position. 
 
True    False
 
20. Mimi feels that her being denied promotion has more to do with her being a woman than with her performance. However, her supervisors and the HR department are refusing to hear her case. This indicates that Mimi has been denied her right to due process.
 
True    False
 
21. In companies that are ethical and successful, the owners are the only stakeholders who are responsible for the actions of the company.
 
True    False
 
22. For human resource practices to be considered ethical, they must result in the greatest good for the largest number of people.
 
True    False
 
23. The role of HR generalist is essentially limited to recruitment and selection. 
 
True    False
 
24. The vast majority of HRM professionals have a college degree.
 
True    False
 
25. The Society for Human Resource Management is the primary professional organization for HRM and the world’s largest human resource management association.
 
True    False
 
 

Multiple Choice Questions
 
26. 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. The concept of “human resource management” implies that employees:
 

A.  are interchangeable.

B.  are easily replaceable.

C.  are a necessary expense to process work demands.

D.  are resources who add economic value to the organization.

E.  are secondary to all elements of economic capital like cash and technology.

 
28. As a type of resource, human capital refers to the: 
 

A.  wages, benefits, and other costs incurred in support of HR functions in an organization.

B.  cash, equipment, technology, and facilities that the organization uses.

C.  tax-deferred value of an employee’s 401(k) plan.

D.  employee characteristics that add economic value to the organization.

E.  total budget allocated to the HR department in an organization.

 
29. The term _____ is used to describe the employees of an organization in terms of their training, experience, judgment, intelligence, relationships, and insight.
 

A.  performance management

B.  human capital

C.  development

D.  traditional management

E.  working capital

 
30. One of the qualities of human resources is that _____.
 

A.  it is highly substitutable and interchangeable

B.  it is easily available for all companies to utilize

C.  it is easily imitated by rivals

D.  it is negligible in terms of value

E.  it is indispensable for building a competitive advantage

 
31. 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.

 
32. 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

 
33. 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

 
34. Which of the following refers to the process of getting detailed information about jobs? 
 

A.  Job rotation

B.  Supply chain management

C.  Job analysis

D.  Policy creation

E.  Job orientation

 
35. Job design is the process of:  
 

A.  defining the way work will be performed and the tasks that a given job requires.

B.  generating a pool of potential candidates for a job.
 
 

C.  identifying 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.

 
36. At Smartech, a company dealing in software products, employees often complain about the lack of clarity regarding the tasks they are required to perform. Often there are two employees working on overlapping tasks, while some tasks are not designated to any employee. Though employees are satisfied with the pay and work culture, this aspect of their work environment has led to a lot of conflict in the workplace. From the information provided, this complaint of the employees can be closely linked to which of the following HR functions? 
 

A.  Compliance with laws

B.  Analysis and design of work

C.  Compensation and benefits

D.  Maintaining employee relations

E.  Recruitment and selection

 
37. Which of the following is responsible for the shift in the job trend, from the use of narrowly defined jobs to the use of broadly defined jobs in organizations? 
 

A.  Emphasis on innovation and quality

B.  Increased demand for low skilled workers

C.  Increased focus on simplifying jobs

D.  Lack of competition

E.  Reduced use of team-based project

 
38. Which of the following refers to the process through which an organization seeks applicants for potential employment? 
 

A.  Orientation

B.  Training

C.  Recruitment

D.  Work analysis

E.  Job design

 
39. 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.  compensation

D.  work analysis

E.  performance management

 
40. _____ is a planned effort to enable employees to learn job-related knowledge, skills, and behavior.
 

A.  Selection

B.  Performance appraisal

C.  Training

D.  Compensation

E.  Recruitment

 
41. 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

 
42. 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

 
43. The process of ensuring that employees’ activities and outputs match the organization’s goals is called _____.
 

A.  job analysis

B.  supply chain management

C.  employee development

D.  performance management

E.  career planning

 
44. The employees at Edifice Financials often complain that they are not provided feedback on their performance. They feel that they do not get proper information as to how they have performed and the areas in which they need to improve. They also claim that the performance goals are vague and not measurable. Which of the following HR functions does Edifice Financials need to specifically improve upon to resolve this complaint put forth by its employees? 
 

A.  Recruitment

B.  Employee selection

C.  Training and development

D.  Performance management

E.  Planning and administering pay and benefits

 
45. Which of the following HR functions 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

 
46. 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.

 
47. The HR function of maintaining positive employee relations primarily 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.

 
48. 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 the need for documentation and record-keeping.

D.  It encourages employees to defend themselves by claiming ignorance of disciplinary norms.

E.  It leaves a lot of room for subjective decision-making.

 
49. _____ refers to the use of quantitative tools and scientific methods to analyze data from human resource databases and other sources to make evidence-based decisions that support business goals.
 

A.  Conjoint analysis

B.  Performance management

C.  Workforce analytics

D.  Career development

E.  Task analysis

 
50. 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 cannot show just cause.

 
51. Evidence-based HR is defined as the:
 

A.  exclusive use of statistical models for planning, forecasting, and other related HR activities.

B.  establishment of overlapping 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.  process of ensuring that employees’ activities and outputs match the organization’s goals.

E.  organization-wide planned effort to enable employees to learn job-related knowledge, rather than teamwork or communication skills.

 
52. 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.  utilization analysis.

E.  performance planning.

 
53. The process that helps the human resource department to forecast the organization’s needs for hiring, training, reassigning employees along with handling or avoiding layoffs is known as _____.
 

A.  supply chain management

B.  job development

C.  human resource planning

D.  evidence-based HR

E.  corporate social responsibility

 
54. _____ is a systematic, planned effort to attract, retain, develop, and motivate highly skilled employees and managers.
 

A.  Work flow analysis

B.  Job analysis

C.  Conjoint analysis

D.  Talent management

E.  Performance management

 
55. An organization’s ability to profit without depleting its resources, including employees, natural resources, and the support of the surrounding community is called _____.
 

A.  high-performance management

B.  social media optimization

C.  substitutability

D.  sustainability

E.  supply chain management

 
56. 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

 
57. Which of the following is true of sustainable organizations?
 

A.  They primarily focus on maximizing profits and delivering high returns to investors.

B.  They focus on smooth turnover and outsourcing rather than long-term planning.

C.  They are more concerned about justice and fairness rather than short-term profits.

D.  They are less concerned about employee development and empowerment.

E.  They are more concerned with the quantum of output than quality standards.

 
58. 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.  administrator

B.  cultural steward

C.  recruitment manager

D.  operational aide

E.  trainer

 
59. In the role of a cultural steward, an HR manager primarily:
 

A.  administers day-to-day work of managing people.

B.  facilitates change and helps to build and strengthen the culture

C.  develops people strategies to control attrition rates.

D.  understands how the business makes money.

E.  recognizes business trends and their impact on the business.

 
60. As a _____, the HR manager should know the ways that people join the organization and move to different positions within it.
 

A.  strategy architect

B.  cultural steward

C.  talent manager

D.  business ally

E.  credible activist

 
61. 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

 
62. 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 job design are techniques that lie outside the purview of supervisors.

E.  Supervisors typically have responsibilities related to all the HR functions.

 
63. Which of the following is true of ethics in human resource management?
 

A.  Evidence shows that HRM practices are 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.

 
64. Which of the following views on employment reflects the 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.

 
65. 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 mainly reflective of the basic Kantian right of _____. 
 

A.  privacy

B.  free consent

C.  freedom of speech

D.  freedom of conscience

E.  due process

 
66. The organizations try to address the right of _____ by offering hot lines and policies and procedures designed to handle complaints from employees.
 

A.  privacy

B.  freedom of speech

C.  due process

D.  freedom of conscience

E.  free consent

 
67. 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

 
68. 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.  a fair and impartial hearing.

E.  fight against a wrongful discharge.

 
69. By keeping employees’ personal records confidential, an employer respects their right of:
 

A.  autonomy.

B.  freedom of conscience.

C.  equal opportunity.

D.  freedom of speech.

E.  privacy.

 
70. 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.  be treated only as they knowingly and willingly consent to be treated.

E.  prohibit criticism of the organization.

 
71. 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.

 
72. Which of the following is true of companies that are ethical and successful?
 

A.  They are solely concerned about the benefits of the company while making business decisions.

B.  The owners most often assume responsibility for the actions of the company rather than the employees.

C.  They are less concerned about the interests of the people involved in the business.

D.  Their main aim is to maximize profits in all their transactions.

E.  They have a sense of purpose and vision that the employees value, and use in their day-to-day work.

 
73. 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 limit the application of the principle of employment-at-will as it is unfair to employees.

 
74. Which of the following statements is true about the HR profession? 
 

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 the most common feature of a majority of professionals in the field.

D.  Usually, HR generalists get paid substantially more than HR specialists.

E.  HR generalists usually perform the full range of HRM activities.

 
75. The _____ is the primary professional organization for HRM that provides education and information services and is also the world’s largest human resource organization.
 

A.  Strategic Human Resource Management

B.  Recognition Professionals International

C.  Society for Human Resource Management

D.  Human Resource Certification institute

E.  Human Resource Professionals Association

 
 

Essay Questions
 
76. What are the qualities associated with human resources that help an organization gain a sustainable competitive advantage?
 

 

 

 
 
77. Name five important responsibilities of HR, briefly describing the specific activities associated with each.
 

 

 

 
 
78. Distinguish between training and development of employees.
 

 

 

 
 
79. Discuss the responsibility of HR with regard to planning and administering pay and benefits. Also analyze the impact of this function on the organization.
 

 

 

 
 
80. Describe the terms human resource planning and evidence-based HR. How do these concepts help HR in supporting the organization’s strategy?
 

 

 

 
 
81. Briefly describe six competencies required for the HR profession.
 

 

 

 
 
82. Discuss the HR responsibilities of supervisors.
 

 

 

 
 
83. List and discuss the basic human rights suggested by the work of Immanuel Kant, as well as the tradition of the Enlightenment.
 

 

 

 
 
84. What are the four principles followed by ethical successful companies?
 

 

 

 
 
85. How would you describe a career in human resource management? Cite the type of positions available, degree requirements, the nature of the work, and salary levels.