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Chapter 01 Human Resource Management: Gaining a Competitive Advantage


True / False Questions

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

!. The human resource department is most likely to collaborate "ith other company functions on outplacement, labor la" compliance, testing, and unemployment compensation. True alse

#. The three product lines of HR include a$ administrative services and transactions, %$ financial services, and c$ strategic partners. True alse

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

'. (dvances in technology have allo"ed HR services to be offered more on a self)service basis than in the past. True alse

*. HR functions related to areas such as employee development, performance management, and organi+ational development are outsourced most frequently. True alse

,. -vidence)based HR provides managers "ith data to make decisions, instead of .ust relying on intuition. True alse

/. 0takeholders of a company are shareholders, the community, customers, employees, and all of the other parties that have an interest in seeing that the company succeeds. True alse

1. Companies are no" more and more interested in using intangible assets and human capital as a "ay to gain an advantage over competitors. True alse

12. ( learning organi+ation places the highest emphasis on completion of formal employment training. True alse

11. The psychological contract describes "hat an employee e3pects to contribute and "hat the company "ill provide to the employee in return for these contributions. True alse

1!. The use of alternative "ork arrangements, "hich include independent contractors, on)call "orkers, temporary "orkers, and contract company "orkers, is shrinking. True alse

1#. To be effective, balanced scorecards must be customi+ed by companies to fit different market situations, products, and competitive environments. True alse

1&. The balanced scorecard should not be used to link the company4s human resource management activities to the company4s business strategy. True alse

1'. Corporate cultures "ithin companies that successfully implement T5M typically emphasi+e individualism, hierarchy, accountability, and profits. True alse

1*. 607 1222 certification is an integral component of 8. -d"ards 9eming4s quality control process. True alse

1,. The skills and motivation of a company4s internal labor force determine the need for training and development practices and the effectiveness of the company4s compensation and re"ard systems. True alse

1/. %ecause the "orkforce is predicted to become more uniform in terms of age, ethnicity, and racial background, it is likely that one set of values "ill characteri+e all employees. True alse

11. Cultural diversity can provide a company competitive advantage regarding problem) solving. True alse

!2. The 0arbanes)73ley (ct of !22! sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance. True alse

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!1. -very business must be prepared to deal "ith the global economy. True alse

!!. 7ne of the disadvantages of technology is that it does not allo" older "orkers to postpone retirement. True alse

!#. -)HRM is more applicable to practices associated "ith recruiting and training than those associated "ith analysis and design "ork, selection, and compensation and benefits. True alse

!&. (n HR dashboard is a series of indicators that managers and employees have access to on the company intranet or human resource information system. True alse

!'. Compensating human resources involves measuring employees4 performance. True alse

Multiple Choice Questions

!*. ::::: refers to a company4s ability to maintain and gain market share in its industry. (. 7utsourcing %. Competitiveness C. 0elf)service 9. -mpo"erment

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!,. ::::: refers to the policies, practices, and systems that influence employees4 behavior, attitudes, and performance. (. Total quality management %. inancial management C. Human resource management 9. ;roduction and operations management

!/. 0trategic HR management includes all but one of the follo"ing. <ame the e3ception. (. inancial planning %. Training and development C. ;erformance management 9. Recruiting talent

!1. 8hich of the follo"ing is <7T a responsibility of HR departments= (. Recruiting %. %enefits C. Community relations 9. ;roduction and operations

#2. 8hich of the follo"ing is <7T a product line of human resources= (. (dministrative services and transactions %. 0trategic partner C. Human capital partner 9. %usiness partner services

#1. 8hich of the follo"ing best describes a cultural ste"ard= (. 0hapes the organi+ation. %. 9elivers results "ith integrity. C. acilitates change. 9. Recogni+es business trends and their impact on the business.

#!. ( strategic architect is one "ho> (. facilitates change. %. recogni+es business trends and their impact on the business. C. implements "orkplace policies conducive to "ork environment. 9. develops talent and designs re"ard systems.

##. ?iving employees online access to information about HR issues such as training, benefits, and compensation is kno"n as> (. outsourcing. %. continuous learning. C. self)service. 9. strategic planning.

#&. The practice of having another company @a vendor, third)party provider, consultant$ provide services traditionally associated "ith the administrative role of HR is kno"n as> (. e)commerce. %. empo"ering. C. outsourcing. 9. benchmarking.

#'. Traditionally, the HRM department "as primarily a@n$> (. proactive agency. %. finance e3pert. C. employer advocate. 9. administrative e3pert.

#*. 8hich of the follo"ing statements about evidence)based HR is (A0-= (. 6t helps sho" that the money invested in HR programs is .ustified and that HR is contributing to the company4s goals and ob.ectives. %. 6t emphasi+es that HR is being transformed from a broad corporate competency to a speciali+ed, stand)alone function in "hich human resources and line managers build partnerships to gain competitive advantage. C. 6t requires collecting data on such metrics as productivity, turnover, accidents, employee attitudes and medical costs and sho"ing their relationship "ith HR practices. 9. 6t refers to demonstrating that human resources practices have a positive influence on the company4s bottom line or key stakeholders.

#,. 8hich one of the follo"ing statements about the HR profession is (A0-= (. ( college degree is required of HR specialists, but not of generalists. %. ?eneralists usually perform the full range of HRM activities, including recruiting, training, compensation, and employee relations. C. ;rofessional certification in HRM is less common than membership in professional associations. 9. The primary professional organi+ation for HRM is the 0ociety for Human Resource Management.

#/. (ll of the follo"ing competitive challenges faced by companies "ill increase the importance of human resource management -BC-;T> (. the global challenge. %. the challenge of sustainability. C. the political challenge. 9. the technology challenge.

#1. ::::: refers to the ability of a company to survive and succeed in a dynamic competitive environment. (. 7utsourcing %. -mpo"erment C. 0ustainability 9. Resource management

&2. 0ustainability includes all of the follo"ing -BC-;T> (. e3panding into foreign markets. %. the ability to deal "ith economic and social changes. C. engaging in responsible and ethical business practices. 9. providing high)quality products and services.

&1. 8hich of the follo"ing statements about intangible assets is (A0-= (. They include human capital. %. They are less valuable than physical assets. C. They are equally or even more valuable than financial assets. 9. They are difficult to duplicate or imitate.

&!. Tacit kno"ledge is an e3ample of ::::: capital. (. social %. customer C. human 9. intellectual

&#. 8hich of the follo"ing is <7T true of kno"ledge "orkers= (. They often contribute speciali+ed kno"ledge that their managers may not have, such as information about customers. %. They have many .ob opportunities. C. They are in high demand because companies need their skills. 9. They contribute to the company through manual labor and intellectual labor.

&&. -mpo"ering is defined as> (. the movement of "omen and minorities into managerial positions. %. giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. C. leading employees by the strength of one4s charisma. 9. the act of continually learning and improving one4s skills and abilities.

&'. (@n$ ::::: contract describes "hat an employee e3pects to contribute and "hat the company "ill provide to the employee for these contributions. (. employer %. employee C. psychological 9. .ob

&*. (ll of the follo"ing are e3amples of alternative "ork arrangements -BC-;T> (. independent contractors. %. current labor force. C. on)call "orkers. 9. temporary "orkers.

&,. The balanced scorecard> (. is similar to most measures of company performance. %. uses indicators important to the company4s strategy. C. is a standardi+ed instrument of company performance. 9. should not be applied to HR practices.

&/. The balanced scorecard presents a vie" of company performance from the perspective of> (. its customers only. %. its employees only. C. its employees and customers only. 9. its employees, customers, and shareholders.

&1. (ccording to the financial perspective of the balanced scorecard, "hich of the follo"ing questions should be ans"ered= (. Ho" do customers see us= %. Can "e continue to improve and create value= C. 8hat must "e e3cel at= 9. Ho" do "e look to shareholders=

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'2. 6ncreasingly, companies are trying to meet shareholder and general public demands that they be more socially, ethically, and environmentally responsible. Thus, companies are recogni+ing the importance of> (. a balanced scorecard approach to business. %. diversity. C. total quality management. 9. social responsibility.

'1. T5M focuses on> (. designing processes to meet the needs of e3ternal customers only. %. reducing variability in the product or service. C. preventing errors rather than correcting errors. 9. tying pay to employees4 total output less re.ects.

'!. CHo" senior e3ecutives create and sustain corporate citi+enship, customer focus, clear values, and e3pectations, and promote quality and performance e3cellenceC is the definition for "hich Malcolm %aldrige <ational 5uality ("ard criterion= (. 0trategic planning %. 8orkforce focus C. Customer and market focus 9. Aeadership

'#. 8hich one of the follo"ing is <7T true of the 0i3 0igma process= (. The ob.ective of the process is to create a total business focus on serving the customer. %. Training is an important component of the process. C. The process is one of seven categories evaluated "ithin the Malcolm %aldrige 5uality ("ard. 9. The process involves measuring, analy+ing, improving, and controlling processes once they have been brought "ithin si3 quality standards.

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'&. 8hich of follo"ing holds TRD- for lean thinking= (. 6t is a "ay to do more "ith less effort, time, equipment, and space. %. 6t is a "ay to compete for quality a"ards and certification. C. 6t includes offering no)frills goods and services to customers. 9. 6t is "orking for +ero inventories.

''. The skills and motivation of a company4s ::::: labor force determine the need for training and development practices and the effectiveness of the company4s compensation and re"ard systems. (. pro.ected %. secondary C. e3ternal 9. internal

'*. 8hich of the follo"ing statements about the composition of the D.0. labor force in the ne3t decade is TRD-= (. Aabor force gro"th is greater than at any other time in D.0. history. %. The largest proportion of the labor force is e3pected to be in the 1*)to)!&)year age group. C. There "ill be fe"er "hite males than minorities or "omen in the labor force. 9. The number of Cbaby boomC "orkers "ill increase faster than any other age group.

',. 8hich of the follo"ing statements about older "orkers is (A0-= (. 8orker performance and learning are adversely affected by aging. %. The aging labor force means companies are likely to employ a gro"ing share of older "orkers. C. (n emerging trend is for qualified older "orkers to ask to "ork part)time or for only a fe" months at a time as a means to transition to retirement. 9. 7lder employees are "illing and able to learn ne" technology.

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'/. %aby boomers> (. like the latest technology, are ambitious and goal)oriented, and seek meaningful "ork. %. "ant to be noticed, respected, and involved. C. tend to be uncomfortable challenging the status quo and authority. 9. value une3pected re"ards for "ork accomplishments, opportunities to learn ne" things, praise, recognition, and time "ith the manager.

'1. Regardless of their background, most employees4 value> (. the ability to challenge the status quo. %. simplistic tasks requiring fe" skills. C. managerial positions. 9. "ork that leads to self)fulfillment.

*2. To successfully manage a diverse "orkforce, managers need to develop all of the follo"ing skills -BC-;T> (. providing performance feedback that is based on values rather than ob.ective outcomes. %. communicating effectively "ith employees from a "ide variety of cultural backgrounds. C. coaching employees of different ages, educational backgrounds, ethnicity, physical ability, and race. 9. recogni+ing and responding to generational issues.

*1. Managing cultural diversity involves> (. enforcing --7 rules. %. creating separate career tracks for employees "ith families. C. establishing a strong affirmative action policy. 9. creating a "orkplace that makes it comfortable for employees of all backgrounds to be creative and innovative.

*!. Ho" diversity issues are managed in companies has implications for all the follo"ing -BC-;T> (. kno"ing ho" to learn. %. creativity. C. retaining good employees. 9. problem solving.

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*#. Managing cultural diversity can provide a competitive advantage by> (. decreasing the number of available "omen and minorities in the company4s labor pool. %. helping "omen and minorities understand they must conform to organi+ational norms and e3pectations. C. helping companies produce better decisions by including all employees4 perspectives and analysis. 9. identifying product markets on "hich the company should focus.

*&. 6n managing cultural diversity, "hich of the follo"ing "ould improve the level of creativity thereby providing competitive advantage to an organi+ation= (. 9iversity of perspectives and less emphasis on conformity to norms of the past. %. Those "ith the best reputations for managing diversity "ill "in the competition for the best personnel. C. (n implication of the multicultural model for managing diversity is that the system "ill become less determinate, less standardi+ed, and therefore more fluid. 9. Heterogeneity in decisions and problem)solving groups potentially produces better decisions.

*'. 8hich of the follo"ing cultural diversity arguments states that companies "ith the best reputations for managing diversity "ill "in the competition for the best personnel= (. 0ystem fle3ibility argument %. Marketing argument C. -mployee attraction and retention argument 9. ;roblem)solving argument

**. 9iversity is important for tapping all of the follo"ing skills of employees -BC-;T> (. cultural skills. %. communication skills. C. creativity. 9. homogeneous thinking.

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*,. 8hat areas of the legal environment have influenced HRM practices over the past !' years= (. -qual employment opportunity, safety and health, pay and benefits, privacy, and .ob security. %. -3ecutive compensation, pay and benefits, "orkers4 compensation, safety and health, and .ob security. C. ;roduct liability, "orkers4 compensation, equal employment opportunity, safety and health, and labor relations. 9. -qual employment opportunity, patent infringement, "orkers4 compensation, safety and health, and .ob security.

*/. There "ill likely be continued discussion, debate, and possible legislation in all but one of the follo"ing areas in companies. <ame the e3ception. (. ?enetic testing %. ?lass ceiling C. -mployment)at)"ill 9. 9esign of physical "ork environment

*1. Aitigation involving .ob security "ill have a ma.or influence on human resource management practices because> (. "ork rules, recruitment practices, and performance evaluation systems might falsely communicate lifetime employment agreements that the company does not intend to honor during layoffs. %. ad.ustments of test scores to meet affirmative action requirements are no" illegal. C. employees no" bear the burden of proof in discrimination cases. 9. compensation a"ards for discrimination claims have increased.

,2. 8hich of the follo"ing is one of the four ethical principles of a successful company= (. Managers assume all responsibility for the actions of the company. %. 6t has a strong profit orientation. C. Customer, client, and vendor relationships emphasi+e mutual benefits. 9. 6t does not produce products that can be used for violent purposes.

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,1. 8hich legislation act sets ne" strict rules for business especially as regards accounting practices= (. Human Rights (ct of 111& %. Reverse 9iscrimination (ct of 1112 C. 0arbanes)73ley (ct of !22! 9. Corruption and ;ractices (ct of !222

,!. 8hich of the follo"ing is <7T a standard that human resource managers must satisfy for practices to be ethical= (. Managers must treat employees as family. %. Human resource practices must result in the greatest good for the largest number of people. C. -mployment practices must respect basic human rights of privacy, due process, and free speech. 9. Managers must treat employees and customers equitably and fairly.

,#. -3porting .obs from developed to less developed countries is kno"n as> (. insourcing. %. offshoring. C. importing. 9. onshoring.

,&. -3porting .obs to rural parts of the Dnited 0tates is referred to as> (. insourcing. %. offshoring. C. importing. 9. onshoring

,'. 8hich of the follo"ing statements about technology is (A0-= (. The 6nternet allo"s employees to locate and gather resources, including soft"are, reports, photos, and videos. %. Technology does not allo" older "orkers to postpone retirement. C. The 6nternet gives employees instant access to e3perts "hom they can communicate "ith. 9. Technology has made equipment easier to operate, helping companies cope "ith skill shortages.

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,*. 8hich of the follo"ing is <7T typically true of "ork teams= (. They are used to increase employee responsibility and control. %. They use cross)training to give employees kno"ledge on a "ide range of skills. C. They frequently select ne" team members and plan "ork schedules. 9. They assume all of the activities reserved for managers such as controlling, planning, and coordinating activities.

,,. 8hich of the follo"ing is <7T recommended for supporting "ork teams= (. Reducing fle3ibility and interaction bet"een employees to maintain high productivity. %. ?iving employees formal performance feedback. C. Ainking compensation and re"ards "ith performance. 9. (llo"ing employees to participate in planning changes in equipment, layout, and "ork methods.

,/. (ll of the follo"ing statements about cross training are true -BC-;T> (. it provides teams4 ma3imum fle3ibility. %. it helps in measuring employees4 performance. C. it trains employees in a "ide range of skills. 9. employees can fill any of the roles needed to be performed on the team.

,1. Company B has offices around the globe. 6ts teams are separated by time, geographic distance, culture andEor organi+ational boundaries, and almost rely e3clusively on technology for interaction bet"een team members. 6ts teams are> (. virtual teams. %. geographically)concentrated teams. C. lean teams. 9. tele"orker teams.

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/2. (daptive organi+ational structures emphasi+e> (. efficiency, decision making by managers, and the flo" of information from top to bottom of the organi+ation. %. a core set of values, and elimination of boundaries bet"een managers, employees, and organi+ational functions. C. clear boundaries bet"een managers, employees, customers, vendors, and the functional areas, and a constant state of learning. 9. internal linking, e3ternal linking, diversification, and a core set of values.

/1. 8hich of the follo"ing is (A0- about high)involvement, adaptive organi+ational structures= (. -mployees are in a constant state of learning and performance improvement. %. -mployees are free to move "herever they are needed in a company. C. Aine employees are trained to speciali+e in one .ob in order to ma3imi+e efficiency. 9. ;reviously established boundaries bet"een managers, employees, customers, and vendors are abandoned.

/!. -mployees in geographically dispersed locations can "ork together in virtual teams using video, e)mail, and the 6nternet. This e)HRM implication refers to "hich aspect of HR= (. Recruiting %. (nalysis and design of "ork C. 0election 9. Compensation and benefits

/#. rom the manager4s perspective, an HR60 can be used to perform primarily all but one of the follo"ing. <ame the e3ception. (. 0upport strategic decision making %. (void litigation C. -valuate programs and policies 9. Motivate employees

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/&. (@n$ is a series of indicators or metrics that managers and employees have access to on the company intranet or human resource information system. (. HR dashboard %. balanced scorecard C. "eb portal 9. 6ntranet

/'. (ll of the follo"ing HR practices support high)performance "ork systems -BC-;T> (. employees participate in selection process. %. .obs are designed to use a variety of skills. C. employee re"ards are related to company performance. 9. individuals tend to "ork separately.

/*. 8hich one of the follo"ing is <7T associated "ith managing the human resource environment= (. Ainking HRM practices to the company4s business ob.ectives. %. 6dentifying human resource requirements through human resource planning, recruitment, and selection. C. -nsuring that HRM practices comply "ith federal, state, and local la"s. 9. 9esigning "ork that motivates and satisfies the employee as "ell as ma3imi+es customer service, quality, and productivity.

/,. -conomic value is traditionally associated "ith all of the follo"ing -BC-;T> (. equipment. %. technology. C. facilities. 9. HRM practices.

//. ( company4s human resource acquisition requirements are influenced by all of the follo"ing -BC-;T> (. terminations. %. customer demands for products and services. C. motivation and satisfaction of employees. 9. promotions.

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/1. Managing the assessment and development of human resources involves all of the follo"ing -BC-;T> (. measuring employees4 performance. %. creating an employment relationship and "ork environment that benefits both the company and the employee. C. recruiting employees and placing them in .obs that best use their skills. 9. identifying employees4 "ork interests, goals, and values, and other career issues.

12. %esides interesting "ork, ::::: are the most important incentives that companies can offer to its employees. (. training for future "ork roles %. beneficial "ork environments C. support for non"ork activities 9. pay and benefits

!ssa" Questions

11. <ame and discuss the competencies that HR professionals need.

1!. Ho" has the role of HRM changed in recent years= 9iscuss three trends that are changing the HRM function. 8hy have these roles changed=

!2

1#. 8hat is meant by empo"ering and "hat type of training must be conducted to make it effective=

1&. 9iscuss the balanced scorecard approach of measuring stakeholder performance.

1'. 9iscuss the Malcolm %aldrige <ational 5uality ("ard including its purpose, the application process, the criteria used for evaluation, and the advantages associated "ith the a"ard.

1*. 8hat sorts of activities does managing cultural diversity involve= 9iscuss four of the si3 "ays @arguments$ that managing cultural diversity can provide a competitive advantage.

!1

1,. 8hat five main areas of the legal environment have influenced human resource management over the past !' years=

1/. 9efine electronic human resource management @e)HRM$ and indicate its implications for five HRM practices.

11. 9iscuss ho" HR practices support the use of ne" technology and "ork designs.

122. 7utline the four dimensions of human resource management practices, including specific e3amples of human resource practices "ithin each area.

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Chapter 21 Human Resource Management> ?aining a Competitive (dvantage (ns"er Fey

True / False Questions

1. (p. 5) Companies have historically looked at HRM as a means to contribute to profitability, quality, and other business goals through enhancing and supporting business operations. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: ()at *esponsi#ilities and *oles do +* Depa!t,ents -e!fo!,.

!. (p. 5) The human resource department is most likely to collaborate "ith other company functions on outplacement, labor la" compliance, testing, and unemployment compensation. FA#$!

AACSB: Business Knowledge and Analytic Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: ()at *esponsi#ilities and *oles do +* Depa!t,ents -e!fo!,.

#. (p. 4) The three product lines of HR include a$ administrative services and transactions, %$ financial services, and c$ strategic partners. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: ()at *esponsi#ilities and *oles do +* Depa!t,ents -e!fo!,.

!#

&. (p. 5) The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a strategic business partner, change agent, and employee advocate are increasing. TR%!

AACSB: Business Knowledge and Analytic Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

'. (p. 5) (dvances in technology have allo"ed HR services to be offered more on a self)service basis than in the past. TR%!

AACSB: Business Knowledge and Analytic Skills/ 2nfo!,ation Tec)nologies BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

*. (p. 5) HR functions related to areas such as employee development, performance management, and organi+ational development are outsourced most frequently. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

,. (p. &&) -vidence)based HR provides managers "ith data to make decisions, instead of .ust relying on intuition. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

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/. (p. &8) 0takeholders of a company are shareholders, the community, customers, employees, and all of the other parties that have an interest in seeing that the company succeeds. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: 2nt!oduction

1. (p. &5) Companies are no" more and more interested in using intangible assets and human capital as a "ay to gain an advantage over competitors. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

12. (p. 99) ( learning organi+ation places the highest emphasis on completion of formal employment training. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

11. (p. 99) The psychological contract describes "hat an employee e3pects to contribute and "hat the company "ill provide to the employee in return for these contributions. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

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1!. (p. 95) The use of alternative "ork arrangements, "hich include independent contractors, on)call "orkers, temporary "orkers, and contract company "orkers, is shrinking. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

1#. (p. 9:) To be effective, balanced scorecards must be customi+ed by companies to fit different market situations, products, and competitive environments. TR%!

AACSB: Business Knowledge and Analytic Skills/ Do,estic and 0lo#al Econo,ic En%i!on,ents of "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

1&. (p. 9:) The balanced scorecard should not be used to link the company4s human resource management activities to the company4s business strategy. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

1'. (p. ;=) Corporate cultures "ithin companies that successfully implement T5M typically emphasi+e individualism, hierarchy, accountability, and profits. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

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1*. (p. ;&) 607 1222 certification is an integral component of 8. -d"ards 9eming4s quality control process. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

1,. (p. ;8) The skills and motivation of a company4s internal labor force determine the need for training and development practices and the effectiveness of the company4s compensation and re"ard systems. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

1/. (p. ;:) %ecause the "orkforce is predicted to become more uniform in terms of age, ethnicity, and racial background, it is likely that one set of values "ill characteri+e all employees. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

11. (p. ;5) Cultural diversity can provide a company competitive advantage regarding problem) solving. TR%!

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

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!2. (p. 89) The 0arbanes)73ley (ct of !22! sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance. TR%!

AACSB: Business Knowledge and Analytic Skills/ Et)ical1 egal *esponsi#ilities BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

!1. (p. 8;) -very business must be prepared to deal "ith the global economy. TR%!

AACSB: Business Knowledge and Analytic Skills/ Do,estic and 0lo#al Econo,ic En%i!on,ents of "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'8 Topic: T)e 0lo#al C)allenge

!!. (p. 8@) 7ne of the disadvantages of technology is that it does not allo" older "orkers to postpone retirement. FA#$!

AACSB: Business Knowledge and Analytic Skills/ 2nfo!,ation Tec)nologies BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'5 Topic: T)e Tec)nology C)allenge

!#. (p. 5&) -)HRM is more applicable to practices associated "ith recruiting and training than those associated "ith analysis and design "ork, selection, and compensation and benefits. FA#$!

AACSB: *eflecti%e T)inking Skills/ 2nfo!,ation Tec)nologies BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

!/

!&. (p. 58) (n HR dashboard is a series of indicators that managers and employees have access to on the company intranet or human resource information system. TR%!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

!'. (p. 5@) Compensating human resources involves measuring employees4 performance. FA#$!

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: 6eeting Co,petiti%e C)allenges T)!oug) +*6 -!actices

Multiple Choice Questions

!*. (p. 8) ::::: refers to a company4s ability to maintain and gain market share in its industry. (. 7utsourcing &' Competitiveness C. 0elf)service 9. -mpo"erment Competitiveness is related to company effectiveness, "hich is determined by "hether the company satisfies the needs of stakeholders @groups affected by business practices$.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: 2nt!oduction

!1

!,. (p. 8) ::::: refers to the policies, practices, and systems that influence employees4 behavior, attitudes, and performance. (. Total quality management %. inancial management C' Human resource management 9. ;roduction and operations management Many companies refer to HRM as involving Cpeople practices.C

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: 2nt!oduction

!/. (p. 5) 0trategic HR management includes all but one of the follo"ing. <ame the e3ception. A' inancial planning %. Training and development C. ;erformance management 9. Recruiting talent 0trategic HR management includes (nalysis and design of "ork, HR planning, Recruiting, 0election, Training and development, Compensation, ;erformance management, and -mployee relations.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: 2nt!oduction

#2

!1. (p. 4) 8hich of the follo"ing is <7T a responsibility of HR departments= (. Recruiting %. %enefits C. Community relations (' ;roduction and operations The Responsibilities of HR departments include -mployment and Recruiting, Training and 9evelopment, Compensation, %enefits, -mployee services, -mployee and community relations, ;ersonnel records, Health and safety and 0trategic planning.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: ()at *esponsi#ilities and *oles do +* Depa!t,ents -e!fo!,.

#2. (p. 4) 8hich of the follo"ing is <7T a product line of human resources= (. (dministrative services and transactions %. 0trategic partner C' Human capital partner 9. %usiness partner services The product lines of human resources include (dministrative services and transactions, 0trategic partner and %usiness partner services.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: ()at *esponsi#ilities and *oles do +* Depa!t,ents -e!fo!,.

#1

#1. (p. @) 8hich of the follo"ing best describes a cultural ste"ard= (. 0hapes the organi+ation. %. 9elivers results "ith integrity. C' acilitates change. 9. Recogni+es business trends and their impact on the business. Cultural ste"ard facilitates change, develops and values the culture and helps employees navigate the culture.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: ()at Co,petencies Do +* -!ofessionals <eed.

#!. (p. @) ( strategic architect is one "ho> (. facilitates change. &' recogni+es business trends and their impact on the business. C. implements "orkplace policies conducive to "ork environment. 9. develops talent and designs re"ard systems. ( strategic architect is one "ho recogni+es business trends and their impact on the business and develops people strategies that contribute to the business strategy.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: ()at Co,petencies Do +* -!ofessionals <eed.

#!

##. (p. 5) ?iving employees online access to information about HR issues such as training, benefits, and compensation is kno"n as> (. outsourcing. %. continuous learning. C' self)service. 9. strategic planning. 0elf)service refers to giving employees online access to information about HR issues such as training, benefits, compensation, and contractsG enrolling online in programs and servicesG and completing online attitude surveys.

AACSB: Business Knowledge and Analytic Skills/ 2nfo!,ation Tec)nologies BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

#&. (p. 5) The practice of having another company @a vendor, third)party provider, consultant$ provide services traditionally associated "ith the administrative role of HR is kno"n as> (. e)commerce. %. empo"ering. C' outsourcing. 9. benchmarking. The primary reasons for outsourcing are to save money and spend more time on strategic business issues.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

##

#'. (p. &=) Traditionally, the HRM department "as primarily a@n$> (. proactive agency. %. finance e3pert. C. employer advocate. (' administrative e3pert. The HRM department took care of employee problems, made sure employees "ere paid correctly, administered labor contracts, and avoided legal problems.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

#*. (p. &&) 8hich of the follo"ing statements about evidence)based HR is (A0-= (. 6t helps sho" that the money invested in HR programs is .ustified and that HR is contributing to the company4s goals and ob.ectives. &' 6t emphasi+es that HR is being transformed from a broad corporate competency to a speciali+ed, stand)alone function in "hich human resources and line managers build partnerships to gain competitive advantage. C. 6t requires collecting data on such metrics as productivity, turnover, accidents, employee attitudes and medical costs and sho"ing their relationship "ith HR practices. 9. 6t refers to demonstrating that human resources practices have a positive influence on the company4s bottom line or key stakeholders. ( study concludes that human resources is being transformed from a speciali+ed, stand)alone function to a broad corporate competency in "hich human resources and line managers build partnerships to gain competitive advantage.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

#&

#,. (p. &9'&;) 8hich one of the follo"ing statements about the HR profession is (A0-= A' ( college degree is required of HR specialists, but not of generalists. %. ?eneralists usually perform the full range of HRM activities, including recruiting, training, compensation, and employee relations. C. ;rofessional certification in HRM is less common than membership in professional associations. 9. The primary professional organi+ation for HRM is the 0ociety for Human Resource Management. ( college degree is required of all HR professionals.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: +a!d ea!ning "#$ecti%e: &'& Topic: ()at Co,petencies Do +* -!ofessionals <eed.

#/. (p. &;) (ll of the follo"ing competitive challenges faced by companies "ill increase the importance of human resource management -BC-;T> (. the global challenge. %. the challenge of sustainability. C' the political challenge. 9. the technology challenge. Three competitive challenges that companies no" face "ill increase the importance of human resource management practices> the challenge of sustainability, the global challenge, the technology challenge.

AACSB: Business Knowledge and Analytic Skills/ Do,estic and 0lo#al Econo,ic En%i!on,ents of "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Co,petiti%e C)allenges 2nfluencing +u,an *esou!ce 6anage,ent

#'

#1. (p. &8) ::::: refers to the ability of a company to survive and succeed in a dynamic competitive environment. (. 7utsourcing %. -mpo"erment C' 0ustainability 9. Resource management 0ustainability refers to a company4s ability to make a profit "ithout sacrificing the resources of its employees, the community, or the environment.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

&2. (p. &8) 0ustainability includes all of the follo"ing -BC-;T> A' e3panding into foreign markets. %. the ability to deal "ith economic and social changes. C. engaging in responsible and ethical business practices. 9. providing high)quality products and services. -3panding into foreign markets falls under the global challenge.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: T)e Sustaina#ility C)allenge

#*

&1. (p. &5) 8hich of the follo"ing statements about intangible assets is (A0-= (. They include human capital. &' They are less valuable than physical assets. C. They are equally or even more valuable than financial assets. 9. They are difficult to duplicate or imitate. 6ntangible assets are equally or even more valuable than physical assets.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

&!. (p. 9=) Tacit kno"ledge is an e3ample of ::::: capital. (. social %. customer C' human 9. intellectual Tacit kno"ledge, -ducation, 8ork)related kno" ho" and 8ork)related competence are the e3amples of human capital.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

#,

&#. (p. 9&) 8hich of the follo"ing is <7T true of kno"ledge "orkers= (. They often contribute speciali+ed kno"ledge that their managers may not have, such as information about customers. %. They have many .ob opportunities. C. They are in high demand because companies need their skills. (' They contribute to the company through manual labor and intellectual labor. Fno"ledge "orkers are employees "ho contribute to the company not through manual labor, but through "hat they kno" about customers or a speciali+ed body of kno"ledge.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

&&. (p. 9&) -mpo"ering is defined as> (. the movement of "omen and minorities into managerial positions. &' giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. C. leading employees by the strength of one4s charisma. 9. the act of continually learning and improving one4s skills and abilities. -mployees also share the re"ards and losses of the results.

AACSB: Business Knowledge and Analytic Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

#/

&'. (p. 99) (@n$ ::::: contract describes "hat an employee e3pects to contribute and "hat the company "ill provide to the employee for these contributions. (. employer %. employee C' psychological 9. .ob Dnlike a sales contract, a psychological contract is not "ritten.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

&*. (p. 95) (ll of the follo"ing are e3amples of alternative "ork arrangements -BC-;T> (. independent contractors. &' current labor force. C. on)call "orkers. 9. temporary "orkers. (lternative "ork arrangements include independent contractors, on)call "orkers, temporary "orkers, and contract company "orkers.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

#1

&,. (p. 9:) The balanced scorecard> (. is similar to most measures of company performance. &' uses indicators important to the company4s strategy. C. is a standardi+ed instrument of company performance. 9. should not be applied to HR practices. The balanced scorecard depicts the company from the perspective of internal and e3ternal customers, employees, and shareholders.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

&/. (p. 9:) The balanced scorecard presents a vie" of company performance from the perspective of> (. its customers only. %. its employees only. C. its employees and customers only. (' its employees, customers, and shareholders. The balanced scorecard is important because it brings together most of the features that a company needs to focus on to be competitive.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

&2

&1. (p. 9@) (ccording to the financial perspective of the balanced scorecard, "hich of the follo"ing questions should be ans"ered= (. Ho" do customers see us= %. Can "e continue to improve and create value= C. 8hat must "e e3cel at= (' Ho" do "e look to shareholders= (ccording to the financial perspective of the balanced scorecard, the question should be ans"ered is CHo" do "e look to shareholders=C The managers should be able to identify critical indicators or metrics related to human resources.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

'2. (p. 9@) 6ncreasingly, companies are trying to meet shareholder and general public demands that they be more socially, ethically, and environmentally responsible. Thus, companies are recogni+ing the importance of> (. a balanced scorecard approach to business. %. diversity. C. total quality management. (' social responsibility. 0ocial responsibility can help boost a company4s image "ith customers, gain access to ne" markets, and help attract and retain talented employees.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

&1

'1. (p. ;=) T5M focuses on> (. designing processes to meet the needs of e3ternal customers only. %. reducing variability in the product or service. C' preventing errors rather than correcting errors. 9. tying pay to employees4 total output less re.ects. T5M refers to a cooperative form of doing business that relies on the talents and capabilities of both labor and management to continually improve quality and productivity.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

'!. (p. ;&) CHo" senior e3ecutives create and sustain corporate citi+enship, customer focus, clear values, and e3pectations, and promote quality and performance e3cellenceC is the definition for "hich Malcolm %aldrige <ational 5uality ("ard criterion= (. 0trategic planning %. 8orkforce focus C. Customer and market focus (' Aeadership Malcolm %aldrige <ational 5uality ("ard is an a"ard established in 11/, to promote quality a"areness, to recogni+e quality achievements of D.0. companies, and to publici+e successful quality strategies.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

&!

'#. (p. ;;) 8hich one of the follo"ing is <7T true of the 0i3 0igma process= (. The ob.ective of the process is to create a total business focus on serving the customer. %. Training is an important component of the process. C' The process is one of seven categories evaluated "ithin the Malcolm %aldrige 5uality ("ard. 9. The process involves measuring, analy+ing, improving, and controlling processes once they have been brought "ithin si3 quality standards. 0even categories evaluated "ithin the Malcolm %aldrige 5uality ("ard are leadership, measurement, analysis, and kno"ledge management, strategic planning, "orkforce focus, process management, business results and customer and market focus.

AACSB: *eflecti%e T)inking Skills/ Aalue C!eation BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

'&. (p. ;;) 8hich of follo"ing holds TRD- for lean thinking= A' 6t is a "ay to do more "ith less effort, time, equipment, and space. %. 6t is a "ay to compete for quality a"ards and certification. C. 6t includes offering no)frills goods and services to customers. 9. 6t is "orking for +ero inventories. ;art of lean thinking includes training "orkers in ne" skills or ho" to apply old skills in ne" "ays so they can quickly take over ne" responsibilities or use ne" skills to help fill customer orders.

AACSB: Business Knowledge and Analytic Skills/ Aalue C!eation BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

&#

''. (p. ;8) The skills and motivation of a company4s ::::: labor force determine the need for training and development practices and the effectiveness of the company4s compensation and re"ard systems. (. pro.ected %. secondary C. e3ternal (' internal The labor force of current employees is often referred to as the internal labor force.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

'*. (p. ;8';:) 8hich of the follo"ing statements about the composition of the D.0. labor force in the ne3t decade is TRD-= (. Aabor force gro"th is greater than at any other time in D.0. history. %. The largest proportion of the labor force is e3pected to be in the 1*)to)!&)year age group. C. There "ill be fe"er "hite males than minorities or "omen in the labor force. (' The number of Cbaby boomC "orkers "ill increase faster than any other age group. The '' years and older "orkforce is e3pected to gro" by appro3imately &, percent bet"een !22* and !21*, more than five times the /.' percent gro"th pro.ected for the entire "orkforce.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&&

',. (p. ;5) 8hich of the follo"ing statements about older "orkers is (A0-= A' 8orker performance and learning are adversely affected by aging. %. The aging labor force means companies are likely to employ a gro"ing share of older "orkers. C. (n emerging trend is for qualified older "orkers to ask to "ork part)time or for only a fe" months at a time as a means to transition to retirement. 9. 7lder employees are "illing and able to learn ne" technology. 7lder employees are "illing and able to learn ne" technology.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

'/. (p. ;:) %aby boomers> (. like the latest technology, are ambitious and goal)oriented, and seek meaningful "ork. %. "ant to be noticed, respected, and involved. C. tend to be uncomfortable challenging the status quo and authority. (' value une3pected re"ards for "ork accomplishments, opportunities to learn ne" things, praise, recognition, and time "ith the manager. C%aby boomers,C born bet"een 11&* and 11*&, live to "ork.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&'

'1. (p. ;@) Regardless of their background, most employees4 value> (. the ability to challenge the status quo. %. simplistic tasks requiring fe" skills. C. managerial positions. (' "ork that leads to self)fulfillment. -mployees vie" "ork as a means to self)fulfillmentHthat is, a means to more fully use their skills and abilities, meet their interests, and allo" them to live a desirable life)style.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

*2. (p. ;@';5) To successfully manage a diverse "orkforce, managers need to develop all of the follo"ing skills -BC-;T> A' providing performance feedback that is based on values rather than ob.ective outcomes. %. communicating effectively "ith employees from a "ide variety of cultural backgrounds. C. coaching employees of different ages, educational backgrounds, ethnicity, physical ability, and race. 9. recogni+ing and responding to generational issues. Managers need to develop a skill of providing performance feedback that is based on ob.ective outcomes rather than values and stereotypes that "ork against "omen, minorities, and handicapped persons by pre.udging these persons4 abilities and talents.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&*

*1. (p. ;5) Managing cultural diversity involves> (. enforcing --7 rules. %. creating separate career tracks for employees "ith families. C. establishing a strong affirmative action policy. (' creating a "orkplace that makes it comfortable for employees of all backgrounds to be creative and innovative. Ho" diversity issues are managed has implications for creativity, problem solving, retaining good employees, and developing markets for the firm4s products and services.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

*!. (p. ;5) Ho" diversity issues are managed in companies has implications for all the follo"ing -BC-;T> A' kno"ing ho" to learn. %. creativity. C. retaining good employees. 9. problem solving. Ho" diversity issues are managed has implications for creativity, problem solving, retaining good employees, and developing markets for the firm4s products and services.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&,

*#. (p. ;5) Managing cultural diversity can provide a competitive advantage by> (. decreasing the number of available "omen and minorities in the company4s labor pool. %. helping "omen and minorities understand they must conform to organi+ational norms and e3pectations. C' helping companies produce better decisions by including all employees4 perspectives and analysis. 9. identifying product markets on "hich the company should focus. Managing cultural diversity can provide a competitive advantage by cost argument, employee attraction and retention argument, marketing argument, creativity argument, problem)solving argument and system fle3ibility argument.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

*&. (p. ;5) 6n managing cultural diversity, "hich of the follo"ing "ould improve the level of creativity thereby providing competitive advantage to an organi+ation= A' 9iversity of perspectives and less emphasis on conformity to norms of the past. %. Those "ith the best reputations for managing diversity "ill "in the competition for the best personnel. C. (n implication of the multicultural model for managing diversity is that the system "ill become less determinate, less standardi+ed, and therefore more fluid. 9. Heterogeneity in decisions and problem)solving groups potentially produces better decisions. 9iversity of perspectives and less emphasis on conformity to norms of the past @"hich characteri+e the modern approach to management of diversity$ should improve the level of creativity in managing cultural diversity. This is called creative argument.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&/

*'. (p. ;5) 8hich of the follo"ing cultural diversity arguments states that companies "ith the best reputations for managing diversity "ill "in the competition for the best personnel= (. 0ystem fle3ibility argument %. Marketing argument C' -mployee attraction and retention argument 9. ;roblem)solving argument -mployee attraction and retention argument states that companies develop reputations on favorability as prospective employers for "omen and ethnic minorities. Those "ith the best reputations for managing diversity "ill "in the competition for the best personnel.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

**. (p. ;5) 9iversity is important for tapping all of the follo"ing skills of employees -BC-;T> (. cultural skills. %. communication skills. C. creativity. (' homogeneous thinking. 9iversity is important for tapping all employees4 creative, cultural, and communication skills and using those skills to provide competitive advantage.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

&1

*,. (p. 8=) 8hat areas of the legal environment have influenced HRM practices over the past !' years= A' -qual employment opportunity, safety and health, pay and benefits, privacy, and .ob security. %. -3ecutive compensation, pay and benefits, "orkers4 compensation, safety and health, and .ob security. C. ;roduct liability, "orkers4 compensation, equal employment opportunity, safety and health, and labor relations. 9. -qual employment opportunity, patent infringement, "orkers4 compensation, safety and health, and .ob security. (ttention is likely to continue to be paid to age, race, and religious discrimination, and discrimination against physically challenged employees.

AACSB: Business Knowledge and Analytic Skills/ Et)ical1 egal *esponsi#ilities BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

*/. (p. 8='8&) There "ill likely be continued discussion, debate, and possible legislation in all but one of the follo"ing areas in companies. <ame the e3ception. (. ?enetic testing %. ?lass ceiling C. -mployment)at)"ill (' 9esign of physical "ork environment There is also likely to be continued discussion about legislation to prohibit discrimination by employers and health insurers against employees based on their genetic makeup.

AACSB: *eflecti%e T)inking Skills/ Et)ical1 egal *esponsi#ilities BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

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*1. (p. 8&) Aitigation involving .ob security "ill have a ma.or influence on human resource management practices because> A' "ork rules, recruitment practices, and performance evaluation systems might falsely communicate lifetime employment agreements that the company does not intend to honor during layoffs. %. ad.ustments of test scores to meet affirmative action requirements are no" illegal. C. employees no" bear the burden of proof in discrimination cases. 9. compensation a"ards for discrimination claims have increased. (s companies are forced to close plants and lay off employees because of restructuring, technology changes, or financial crisis, cases dealing "ith the illegal discharge of employees have increased.

AACSB: *eflecti%e T)inking Skills/ Et)ical1 egal *esponsi#ilities BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

,2. (p. 8&) 8hich of the follo"ing is one of the four ethical principles of a successful company= (. Managers assume all responsibility for the actions of the company. %. 6t has a strong profit orientation. C' Customer, client, and vendor relationships emphasi+e mutual benefits. 9. 6t does not produce products that can be used for violent purposes. -thical, successful companies can be characteri+ed by four principles. irst, in their relationships "ith customers, vendors, and clients, these companies emphasi+e mutual benefits. 0econd, employees assume responsibility for the actions of the company. Third, such companies have a sense of purpose or vision the employees value and use in their day)to)day "ork. inally, they emphasi+e fairnessG that is, another person4s interests count as much as their o"n.

AACSB: Et)ical and egal ?nde!standing and *easoning A#ilities/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

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,1. (p. 89) 8hich legislation act sets ne" strict rules for business especially as regards accounting practices= (. Human Rights (ct of 111& %. Reverse 9iscrimination (ct of 1112 C' 0arbanes)73ley (ct of !22! 9. Corruption and ;ractices (ct of !222 The 0arbanes)73ley (ct of !22! sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance.

AACSB: Business Knowledge and Analytic Skills/ Et)ical1 egal *esponsi#ilities BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

,!. (p. 8;) 8hich of the follo"ing is <7T a standard that human resource managers must satisfy for practices to be ethical= A' Managers must treat employees as family. %. Human resource practices must result in the greatest good for the largest number of people. C. -mployment practices must respect basic human rights of privacy, due process, and free speech. 9. Managers must treat employees and customers equitably and fairly. HRM practices must result in the greatest good for the largest number of people, must respect basic human rights of privacy, due process, and free speech and they must treat employees and customers equitably and fairly.

AACSB: Et)ical and egal ?nde!standing and *easoning A#ilities/ Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

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,#. (p. 85) -3porting .obs from developed to less developed countries is kno"n as> (. insourcing. &' offshoring. C. importing. 9. onshoring. The main reason for offshoring is labor costs.

AACSB: Business Knowledge and Analytic Skills/ Do,estic and 0lo#al Econo,ic En%i!on,ents of "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'8 Topic: "ffs)o!ing

,&. (p. 8:) -3porting .obs to rural parts of the Dnited 0tates is referred to as> (. insourcing. %. offshoring. C. importing. (' onshoring 7nshoring may be most attractive to companies that have brands tied to the Dnited 0tates because they fear the political fallout related to offshoring.

AACSB: Business Knowledge and Analytic Skills/ Do,estic and 0lo#al Econo,ic En%i!on,ents of "!gani3ations BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'8 Topic: "ffs)o!ing

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,'. (p. 8@) 8hich of the follo"ing statements about technology is (A0-= (. The 6nternet allo"s employees to locate and gather resources, including soft"are, reports, photos, and videos. &' Technology does not allo" older "orkers to postpone retirement. C. The 6nternet gives employees instant access to e3perts "hom they can communicate "ith. 9. Technology has made equipment easier to operate, helping companies cope "ith skill shortages. Technology has also made equipment easier to operate, helping companies cope "ith skill shortages and allo"ing older "orkers to postpone retirement.

AACSB: *eflecti%e T)inking Skills/ 2nfo!,ation Tec)nologies BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'5 Topic: +ow and ()e!e -eople (o!k

,*. (p. 85) 8hich of the follo"ing is <7T typically true of "ork teams= (. They are used to increase employee responsibility and control. %. They use cross)training to give employees kno"ledge on a "ide range of skills. C. They frequently select ne" team members and plan "ork schedules. (' They assume all of the activities reserved for managers such as controlling, planning, and coordinating activities. 8ork teams may assume many of the activities usually reserved for managers, including selecting ne" team members, scheduling "ork, and coordinating activities "ith customers and other units in the company.

AACSB: *eflecti%e T)inking Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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,,. (p. 85) 8hich of the follo"ing is <7T recommended for supporting "ork teams= A' Reducing fle3ibility and interaction bet"een employees to maintain high productivity. %. ?iving employees formal performance feedback. C. Ainking compensation and re"ards "ith performance. 9. (llo"ing employees to participate in planning changes in equipment, layout, and "ork methods. 0upporting "ork teams involves encouraging fle3ibility and interaction bet"een employees to maintain high productivity.

AACSB: *eflecti%e T)inking Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

,/. (p. 85) (ll of the follo"ing statements about cross training are true -BC-;T> (. it provides teams4 ma3imum fle3ibility. &' it helps in measuring employees4 performance. C. it trains employees in a "ide range of skills. 9. employees can fill any of the roles needed to be performed on the team. The performance appraisal process measures employee performance according to departmental ob.ectives that support the scorecard.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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,1. (p. 5=) Company B has offices around the globe. 6ts teams are separated by time, geographic distance, culture andEor organi+ational boundaries, and almost rely e3clusively on technology for interaction bet"een team members. 6ts teams are> A' virtual teams. %. geographically)concentrated teams. C. lean teams. 9. tele"orker teams. Iirtual teams refer to teams that are separated by time, geographic distance, culture, andEor organi+ational boundaries and that rely almost e3clusively on technology @e)mail, 6nternet, videoconferencing$ to interact and complete their pro.ects.

AACSB: *eflecti%e T)inking Skills BT: Application Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

/2. (p. 5='5&) (daptive organi+ational structures emphasi+e> (. efficiency, decision making by managers, and the flo" of information from top to bottom of the organi+ation. &' a core set of values, and elimination of boundaries bet"een managers, employees, and organi+ational functions. C. clear boundaries bet"een managers, employees, customers, vendors, and the functional areas, and a constant state of learning. 9. internal linking, e3ternal linking, diversification, and a core set of values. 6n the adaptive organi+ational structure, employees are in a constant state of learning and performance improvement. -mployees are free to move "herever they are needed in the company.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: +a!d ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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/1. (p. 5&) 8hich of the follo"ing is (A0- about high)involvement, adaptive organi+ational structures= (. -mployees are in a constant state of learning and performance improvement. %. -mployees are free to move "herever they are needed in a company. C' Aine employees are trained to speciali+e in one .ob in order to ma3imi+e efficiency. 9. ;reviously established boundaries bet"een managers, employees, customers, and vendors are abandoned. Aine employees are trained in multiple .obs, communicate directly "ith suppliers and customers, and interact frequently "ith engineers, quality e3perts, and employees from other functions.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: +a!d ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

/!. (p. 5&) -mployees in geographically dispersed locations can "ork together in virtual teams using video, e)mail, and the 6nternet. This e)HRM implication refers to "hich aspect of HR= (. Recruiting &' (nalysis and design of "ork C. 0election 9. Compensation and benefits Human Resource Management ;ractices include (nalysis and design of "ork, HR planning, Recruiting, 0election, Training and development, Compensation, ;erformance management and -mployee relations.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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/#. (p. 59) rom the manager4s perspective, an HR60 can be used to perform primarily all but one of the follo"ing. <ame the e3ception. (. 0upport strategic decision making %. (void litigation C. -valuate programs and policies (' Motivate employees ( systematic planned strategic effort by a company to attract, retain, develop, and motivate highly skilled employees and managers is called talent management.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: Easy ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

/&. (p. 58) (@n$ is a series of indicators or metrics that managers and employees have access to on the company intranet or human resource information system. A' HR dashboard %. balanced scorecard C. "eb portal 9. 6ntranet HR dashboard allo"s company to identify divisions that are developing ne" talent.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: Easy ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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/'. (p. 58) (ll of the follo"ing HR practices support high)performance "ork systems -BC-;T> (. employees participate in selection process. %. .obs are designed to use a variety of skills. C. employee re"ards are related to company performance. (' individuals tend to "ork separately. 7ne of the most popular methods for increasing employee responsibility and control is "ork teams.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

/*. (p. 54) 8hich one of the follo"ing is <7T associated "ith managing the human resource environment= (. Ainking HRM practices to the company4s business ob.ectives. &' 6dentifying human resource requirements through human resource planning, recruitment, and selection. C. -nsuring that HRM practices comply "ith federal, state, and local la"s. 9. 9esigning "ork that motivates and satisfies the employee as "ell as ma3imi+es customer service, quality, and productivity. (cquiring and ;reparing Human Resources deals "ith identifying human resource requirements through human resource planning, recruitment, and selection.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: 6anaging t)e +u,an *esou!ce En%i!on,ent

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/,. (p. 54) -conomic value is traditionally associated "ith all of the follo"ing -BC-;T> (. equipment. %. technology. C. facilities. (' HRM practices. HRM practices have not traditionally been seen as providing economic value to the company.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: 6eeting Co,petiti%e C)allenges T)!oug) +*6 -!actices

//. (p. 5:) ( company4s human resource acquisition requirements are influenced by all of the follo"ing -BC-;T> (. terminations. %. customer demands for products and services. C' motivation and satisfaction of employees. 9. promotions. Creating a positive environment for human resources involves designing "ork that motivates and satisfies the employee as "ell as ma3imi+es customer service, quality, and productivity.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: AcBui!ing and -!epa!ing +u,an *esou!ces

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/1. (p. 5@) Managing the assessment and development of human resources involves all of the follo"ing -BC-;T> (. measuring employees4 performance. %. creating an employment relationship and "ork environment that benefits both the company and the employee. C' recruiting employees and placing them in .obs that best use their skills. 9. identifying employees4 "ork interests, goals, and values, and other career issues. (cquiring and ;reparing Human Resources involves recruiting employees and placing them in .obs that best use their skills.

AACSB: *eflecti%e T)inking Skills BT: Co,p!e)ension Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: Assess,ent and De%elop,ent of +u,an *esou!ces

12. (p. 5@) %esides interesting "ork, ::::: are the most important incentives that companies can offer to its employees. (. training for future "ork roles %. beneficial "ork environments C. support for non"ork activities (' pay and benefits (lso, pay and benefits are used to re"ard employees4 membership in the company and attract ne" employees.

AACSB: Business Knowledge and Analytic Skills BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: Co,pensating +u,an *esou!ces

!ssa" Questions

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11. (p. @) <ame and discuss the competencies that HR professionals need. 1. Credible activist> delivers results "ith integrity, shares information, builds trusting relationships, and influences others, providing candid observation, taking appropriate risks. !. Cultural ste"ard> facilitates change, develops and values the culture, and helps employees navigate the culture. #. Talent managerEorgani+ational designer> develops talent, designs re"ard systems, and shapes the organi+ation. &. 0trategic architect> recogni+es business trends and their impact on the business, evidence) based HR, and develops people strategies that contribute to the business strategy. '. %usiness ally> understands ho" the business makes money and the language of the business. *. 7perational e3ecutor> implements "orkplace policies, advances HR technology, and administers day)to)day "ork of managing people.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: ()at Co,petencies Do +* -!ofessionals <eed.

1!. (p. 5'&=) Ho" has the role of HRM changed in recent years= 9iscuss three trends that are changing the HRM function. 8hy have these roles changed= The amount of time that the HRM function devotes to administrative tasks is decreasing, and its roles as a strategic business partner, change agent, and employee advocate are increasing. 7ne trend seen today is that the role of HRM in administration is decreasing as technology is used for many administrative purposes, such as managing employee records and allo"ing employees to get information about and enroll in training, benefits, and other programs. (nother trend is that outsourcing of the administrative role is occurring quite frequently. (dditionally, HRM is becoming more proactive and less reactive. Roles such as practice development and strategic business partnering have increased. HRM roles have changed because managers see HRM as the most important lever for companies to gain competitive advantage over both domestic and foreign competitors.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'& Topic: +ow is t)e +*6 7unction C)anging.

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1#. (p. 9&) 8hat is meant by empo"ering and "hat type of training must be conducted to make it effective= -mpo"ering means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. -mployees are then held accountable for products and servicesG in return, they share the resulting re"ards and losses of the results. or empo"erment to succeed, managers must be trained to link employees to resources "ithin and outside the company, help employees interact "ith their fello" employees and managers throughout the company, and ensure that employees are updated on important issues and cooperate "ith each other. -mployees must also be trained to use the 8eb, e)mail, and other tools for communicating, collecting, and sharing information.

AACSB: *eflecti%e T)inking Skills/ 0!oup12ndi%idual Dyna,ics in "!gani3ations BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'9 Topic: Econo,ic C)anges

1&. (p. 9:) 9iscuss the balanced scorecard approach of measuring stakeholder performance. The balanced scorecard> 1. 6s based on the degree to "hich stakeholder needs are satisfied. !. %rings together most measures needed to be competitive. #. ?ives employees a frame"ork to link their goals to organi+ational goals. &. 6s used to link HR activities to business strategy. '. -valuates ho" much HR is helping to meet strategic ob.ectives.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: 6eeting t)e <eeds of Stake)olde!s/ S)a!e)olde!s/ Custo,e!s/ E,ployees/ and Co,,unity

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1'. (p. ;&) 9iscuss the Malcolm %aldrige <ational 5uality ("ard including its purpose, the application process, the criteria used for evaluation, and the advantages associated "ith the a"ard. -stablished to promote quality a"areness> 1. Company fills out detailed application "ith basic information about the company location, markets and products, as "ell as in)depth presentation of ho" the company addresses specific criteria related to quality improvement. !. %oard of e3aminers evaluates the application. (ll applicants receive "ritten feedback summari+ing company strengths and needs for improvements. Three a"ards may be given annually in each of five categories> manufacturing, service, small businesses, education, and health care. Criteria used> 1. AeadershipH1!2 pts !. Customer and market focusH/' pts #. 8orkforce focusH/' pts &. Measurement, analysis, and kno"ledge managementH12 pts '. 0trategic planningH/' pts *. ;rocess managementH/' pts ,. %usiness resultsH&'2 pts 7verall research suggests the a"ard has had a positive impact on overall company performance, including> 1. %etter employee relations. !. 6ncreased productivity. #. Customer satisfaction. &. Market share.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: Custo,e! Se!%ice and >uality E,p)asis

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1*. (p. ;@';5) 8hat sorts of activities does managing cultural diversity involve= 9iscuss four of the si3 "ays @arguments$ that managing cultural diversity can provide a competitive advantage. (ctivities include> 1. Creating an organi+ational culture that values diversity !. -nsuring that HRM systems are bias)free #. acilitating higher career involvement of "omen &. ;romoting kno"ledge and acceptance of cultural differences '. -nsuring involvement in education both "ithin and outside the company *. 9ealing "ith employees4 resistance to diversity Competitive advantages associated "ith diversity 1. Cost argumentH(s organi+ations become more diverse, the cost of a poor .ob in integrating "orkers "ill increase. Those "ho handle this "ell "ill thus create cost advantages over those "ho do not. !. -mployee attraction and retention argumentHCompanies "ill develop reputations as good companies for "omen and minorities to "ork for and therefore they "ill attract the best from these groups of individuals. This "ill be especially important as the labor pool shrinks and changes composition. #. Marketing argumentHThe insight and cultural sensitivity of employees "ith roots in other countries or different ethnic groups "ill help both in multinational organi+ations as "ell as "hen marketing to subpopulations domestically. &. Creativity argumentHCreativity should be improved by diversity of perspectives and less emphasis on conformity to norms of the past. '. ;roblem)solving argumentH8ider range of perspectives and more thorough critical analysis of issues "ill lead to more heterogeneity in decisions and problem)solving groups. *. 0ystem fle3ibility argumentH0ystem "ill become less determinate, less standardi+ed, and more fluid, "hich should create greater fle3ibility to react to environmental changes.

AACSB: 6ulticultu!al and Di%e!sity ?nde!standing/ *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: C)anging De,og!ap)ics and Di%e!sity of t)e (o!kfo!ce

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1,. (p. 8=) 8hat five main areas of the legal environment have influenced human resource management over the past !' years= The five main areas of the legal environment that have influenced HRM over the past !' years are equal employment opportunity legislation, employee safety and health, employee pay and benefits, employee privacy, and .ob security.

AACSB: *eflecti%e T)inking Skills/ Et)ical1 egal *esponsi#ilities BT: Knowledge Difficulty: 6ediu, ea!ning "#$ecti%e: &'; Topic: egal and Et)ical 2ssues

1/. (p. 5&) 9efine electronic human resource management @e)HRM$ and indicate its implications for five HRM practices. -lectronic human resource management @e)HRM$ refers to the processing and transmission of digiti+ed information used in HRM, including te3t, sound, and visual images, from one computer or electronic device to another. 6mplications include> 1. (nalysis and design of "orkH-mployees in geographically dispersed locations can "ork together in virtual teams using video, e)mail, and the 6nternet. !. RecruitingH;ost .ob openings online. Candidates can apply for .obs online. #. TrainingH7nline training can bring training to employees any"here, anytime. &. 0electionH7nline simulations, including tests, videos, and e)mails that measure .ob candidate4s abilities to deal "ith real)life business challenges. '. Compensation and benefitsH-mployee can revie" salary and bonus information and seek information about and enroll in benefit plans.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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11. (p. 85'5=) 9iscuss ho" HR practices support the use of ne" technology and "ork designs. Teams are used to perform "ork. -mployees participate in the selection process. -mployees receive formal performance feedback and are actively involved in the performance) improvement process. 7ngoing training is emphasi+ed and re"arded. -mployees4 re"ards and compensation relates to the company4s financial performance. -quipment and "ork processes are structured to encourage ma3imum fle3ibility and interaction among employees. -mployees participate in planning changes in equipment, layout, and "ork methods. 8ork design allo"s employees to use a variety of skills. -mployees understand ho" their .obs contribute to the finished product or service.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: +a!d ea!ning "#$ecti%e: &'4 Topic: +ig)'-e!fo!,ance (o!k Syste,s

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122. (p. 54'5@) 7utline the four dimensions of human resource management practices, including specific e3amples of human resource practices "ithin each area. 1. Managing the human resource environment. Managing internal and e3ternal environmental factors allo" employees to make the greatest possible contribution to company productivity and competitiveness. -3amples include> a$ -nsuring that HRM practices are in legal compliance. b$ 9esigning "ork that motivates employees and that ma3imi+es customer service, quality, and productivity. c$ Ainking HRM practices to the company4s business ob.ectives. !. (cquiring and preparing human resources. <umber and type of employees influenced by customer needs, terminations, promotions, and retirements. <eed to predict the number and types of employees needed and identify current or potential employees to fill those needs. -3amples include> a$ Human resource planning. b$ Recruiting employees. c$ 0electing employees. d$ Training employees. #. (ssessment and development of human resources. Managers must ensure employees have the necessary skills to perform current and future .obs. 8ork may be redesigned to be done by teams. Companies need to create a supportive "ork environment. -3amples include> a$ Measuring employee performance. b$ ;reparing employees for future "ork roles. c$ 6dentifying employees4 "ork interests, goals, and values. &. Compensating human resources. ;ay and benefits are important incentives to offer employees in e3change for contributing to productivity, quality, and customer service. (lso used to re"ard employees4 membership and attract ne" employees. -3amples include> a$ Creating pay systems. b$ Re"arding employee contributions. c$ ;roviding employees "ith benefits.

AACSB: *eflecti%e T)inking Skills BT: Analysis Difficulty: 6ediu, ea!ning "#$ecti%e: &': Topic: 6eeting Co,petiti%e C)allenges T)!oug) +*6 -!actices

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