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Chapter 8--Managing a New and Diverse Workforce Key

1. Diversity always involves


A. employee's individual differences.
B. a quota system.
C. mandatory affirmative action plans.
D. legal constraints.
E. similarities in product offerings.

2. Which of the following is one of the factors that has contributed to increased workforce diversity in the
United States?
A. Increased entry into the workforce of women and minorities
B. Increased immigration into the United States
C. Organizations becoming aware of the competitive advantages of diversity
D. Legislation and legal actions
E. All of these

3. Looking around the room at a recent committee meeting, Eileen noticed that most of the participants were
white males, although they differed in their national origin, their age, their religion, and their lifestyle. Eileen's
committee is
A. completely diverse.
B. not at all diverse.
C. exactly in the middle of the diversity continuum.
D. somewhat diverse, but on the low end of the continuum.
E. somewhat diverse, but on the high end of the continuum.

4. Which of the following kinds of treatments play a role in diversity management?


A. Preferential treatment
B. Equal treatment
C. Identical treatment
D. Equitable treatment
E. Differential treatment

5. John, a corporate accountant in a large computer manufacturing firm, celebrates Cinco de Mayo with his
family every year because of his
A. age.
B. race.
C. ethnicity.
D. gender.
E. religion.
6. Which of the following BEST describes the principle of equitable treatment?
A. All persons should be treated the same regardless of their differences.
B. All persons should be treated equally but differently because of their differences.
C. All persons should be treated the same because of their differences.
D. All persons should be treated differently even if they are the same.
E. Not all persons should be treated the same, even if they are the same.

7. Which law requires employers to treat people of different religions and national origins fairly in the
workplace?
A. Richard Osborn Act
B. The Civil Rights Act of 1964
C. The Americans with Disabilities Act
D. Sarbanes-Oxley Act
E. Fair Credit Reporting Act

8. For which of the following characteristics must employers make reasonable accommodations?
A. Race
B. National origin
C. Gender
D. Age
E. Disability

9. Which of the following is a major dimension of diversity?


A. Sexual preference
B. Personality
C. Political outlook
D. Gender
E. Management style

10. The average age of the U.S. workforce is


A. decreasing because of earlier retirement ages.
B. increasing because of immigration of older workers from other countries.
C. decreasing because the women entering the workforce are younger.
D. increasing because baby boomers are still working.
E. decreasing because of immigration of younger workers from other countries.

11. Which of the following is NOT true about older workers?


A. Older workers tend to be more stable.
B. Older workers have lower accident rates.
C. Older workers require higher levels of insurance coverage and medical benefits.
D. Older workers can make greater contributions to productivity.
E. Older workers tend to have more experience.
12. Pam has been a highly valued production manager for a national grocery store chain for the last ten years,
but she has been unable to move into the top management jobs, positions that are all held by men. What is Pam
likely facing?
A. Poor evaluations
B. Career tracking
C. Reverse discrimination
D. Glass ceiling
E. Mother syndrome

13. Which of the following traits represent components of diversity?


A. Sexual orientation
B. Special dietary preferences
C. Political ideology
D. Dual-career couples
E. All of these

14. The creativity argument suggests that more diverse organizations will be more competitive because they
will
A. be better able to understand different market segments.
B. be characterized by multiple perspectives and ways of thinking.
C. be better able to respond to changes in environment.
D. become known among women and minorities as good places to work.
E. have higher levels of productivity and lower levels of turnover and absenteeism.

15. Andy, a director of human resource management with a restaurant firm says, "Diversity in our organization
results in higher job performance and lower turnover." Andy is using which argument to justify how diversity
contributes to competitiveness?
A. The resource acquisition argument
B. The problem-solving argument
C. The cost argument
D. The creativity argument
E. The systems flexibility argument

16. Siemens actively recruits U.S. military veterans. Siemens employees who are veterans, mentor newly hired
veterans to help them adjust to the organization. Siemens is able to easily recruit talented employees. Which
argument for diversity is demonstrated in Siemens actions?
A. The systems flexibility argument
B. The problem-solving argument
C. The cost argument
D. The marketing argument
E. The resource acquisition argument

17. The problem-solving argument suggests that more diverse organizations will be more competitive because
they will
A. be better able to understand different market segments.
B. have a larger pool of unique information.
C. be better able to respond to changes in its environment.
D. become known among women and minorities as good places to work.
E. have higher levels of productivity and lower levels of turnover and absenteeism.

18. The systems flexibility argument suggests that more diverse organizations will be more competitive because
they will
A. be better able to understand different market segments.
B. be characterized by multiple perspectives and ways of thinking.
C. be better able to respond to changes in environment.
D. become known among women and minorities as good places to work.
E. have higher levels of productivity and lower levels of turnover and absenteeism.

19. Which of the following is the BEST definition of empathy?


A. Understanding that differences exist among people
B. Tolerating behavior of others even though you do not understand it
C. Openly discussing problems that you have with others
D. Understanding the perspectives of others who are different
E. Treating people fairly and equitably

20. Sometimes managers must realize that individual differences cause employees to act in very different ways,
which suggests that workers cannot all be treated similarly. Which of the following is the BEST individual
strategy for dealing with this issue?
A. Understanding
B. Communication
C. Development
D. Tolerance
E. Training

21. Sung says, "My employer assigns a mentor to each new hire. Employees can discuss racial or sexual
harassment issues with the mentor in confidentiality. If there is any wrongdoing, my employer's rules require a
thorough investigation." Sung's employer is using which organizational strategy for dealing with diversity?
A. Organizational policies
B. Diversity training
C. Organizational practices
D. Individual differences
E. Organization culture

22. Olive Garden restaurants actively work to recruit diverse applicants, accommodate diverse employees
through flexible schedules and other means, and include diverse employees in decisions at every level of the
organization. Which organizational strategy for dealing with diversity is shown in these actions by Olive
Garden?
A. Organizational policies
B. Diversity training
C. Organizational practices
D. Individual differences
E. Organization culture

23. Which of the following BEST represents a multicultural organization?


A. A corporation that does business in many different countries
B. A company that hires people of all races
C. An organization where the top managers are all female
D. A business that does not discriminate in providing services to its customers
E. A firm that capitalizes on diversity and has few diversity problems

24. Knowledge workers include


A. computer scientists.
B. engineers.
C. physical scientists.
D. experts in some abstract knowledge base.
E. all of these.

25. ______ refers to the collective, institutional record of past events.


A. Organizational memory
B. Organizational learning
C. Organizational knowledge
D. Organizational knowledge workers
E. Organizational experience

26. ______ is a key social issue affecting HRM.


A. Prison labor
B. Immigration
C. Social responsibility
D. Living wage
E. Each of these

27. ______ is a dedication to build organizations that are accountable, responsible, transparent, and ecologically
sustainable.
A. Corporate social responsibility
B. Social entrepreneurship
C. Conscious capitalism
D. Compassionate conservatism
E. Diversity management

28. Applying business skills and tools to deal with social problems is called
A. corporate social responsibility.
B. social entrepreneurship.
C. conscious capitalism.
D. equal employment opportunity.
E. diversity management.

29. The process by which a company adapts to its environment is called


A. organizational pluralism.
B. organizational conflict.
C. organizational integration.
D. organizational synergy.
E. organizational learning.

30. Employees who add value to the firm because of their expertise, background, or training are called ____
workers.
A. knowledge
B. conflict
C. integration
D. network
E. structural

31. Scenario 8.1


Ray Caldwell is the human resource manager of a management consulting firm. The consultants are mostly
white males and are a cohesive group. Very few conflicts exist between them and decisions are made quickly
and without much disagreement. A number of the qualified applicants for new positions are multicultural and
Ray wonders if he should consider hiring them. He is currently assessing the advantages and disadvantages of
the firm's becoming more multicultural.

Refer to Scenario 8.1. Ray is concerned that if he hires female managers, they may not be given opportunities
to advance to top management positions in the firm. Ray is concerned about
A. accommodating knowledge workers.
B. accommodations that might be legally required.
C. the glass ceiling.
D. diversity training.
E. communication barriers.

32. Scenario 8.1


Ray Caldwell is the human resource manager of a management consulting firm. The consultants are mostly
white males and are a cohesive group. Very few conflicts exist between them and decisions are made quickly
and without much disagreement. A number of the qualified applicants for new positions are multicultural and
Ray wonders if he should consider hiring them. He is currently assessing the advantages and disadvantages of
the firm's becoming more multicultural.

Refer to Scenario 8.1. If Ray wants to hire the ethnic group that is expected to increase by the greatest
percentage of the U.S. workforce over the next decade, he would hire more
A. Hispanics.
B. African Americans.
C. whites.
D. Asians.
E. Native Americans.

33. Scenario 8.1


Ray Caldwell is the human resource manager of a management consulting firm. The consultants are mostly
white males and are a cohesive group. Very few conflicts exist between them and decisions are made quickly
and without much disagreement. A number of the qualified applicants for new positions are multicultural and
Ray wonders if he should consider hiring them. He is currently assessing the advantages and disadvantages of
the firm's becoming more multicultural.

Refer to Scenario 8.1. Which of the following arguments can Ray NOT use for justifying the contribution of
diversity to competitiveness?
A. Diversity leads to higher levels of productivity and lower levels of absenteeism.
B. Diversity creates a better understanding of different market segments and how to market products to them.
C. Diversity is likely to generate new ideas and better ways of doing things.
D. Diversity creates a larger pool of unique information that can be brought to bear on problems.
E. Diversity narrows the perspective of organizations, permitting them to make decisions more quickly.

34. Scenario 8.1


Ray Caldwell is the human resource manager of a management consulting firm. The consultants are mostly
white males and are a cohesive group. Very few conflicts exist between them and decisions are made quickly
and without much disagreement. A number of the qualified applicants for new positions are multicultural and
Ray wonders if he should consider hiring them. He is currently assessing the advantages and disadvantages of
the firm's becoming more multicultural.

Refer to Scenario 8.1. Ray understands that an increase in diversity will require certain individual strategies for
dealing with multiculturalism. Which of the following is NOT such a strategy?
A. Understanding
B. Separation
C. Empathy
D. Tolerance
E. Communication

35. Scenario 8.1


Ray Caldwell is the human resource manager of a management consulting firm. The consultants are mostly
white males and are a cohesive group. Very few conflicts exist between them and decisions are made quickly
and without much disagreement. A number of the qualified applicants for new positions are multicultural and
Ray wonders if he should consider hiring them. He is currently assessing the advantages and disadvantages of
the firm's becoming more multicultural.

Refer to Scenario 8.1. Ray wants to find a good example of an organization that is truly multicultural. Which of
the following is NOT a characteristic of such an organization?
A. Pluralism
B. Low levels of internal conflict
C. No barriers to entry and participation in any organizational activity
D. Organizational roles identified with particular cultural groups
E. The diversity of the organization accurately reflecting its market

36. The essence of EEO legislation encourages companies to recognize employees' individual differences as
long as people are treated fairly.
TRUE

37. The average age of the workforce in the United States is actually decreasing despite the large numbers of
baby boomers who are remaining in the labor market.
FALSE

38. The creativity argument suggests that organizations that learn to cope with diversity will generally have
higher levels of productivity and lower levels of turnover and absenteeism.
FALSE

39. When a firm becomes truly diverse, to such an extent that there really are no identifiable minority groups
within the workforce, the positive results of diversity can be truly maximized while most of the problems
disappear.
TRUE

40. Problems often become magnified over diversity issues because people discuss the issues too much and end
up misunderstood.
FALSE

41. The multicultural organization is characterized by pluralism.


TRUE

42. Only people can learn, not organizations.


FALSE

43. The biggest challenge facing firms that employ knowledge workers is figuring out how to attract and retain
them.
TRUE

44. Employees, especially older employees, are more interested in social issues.
FALSE
45. While immigration and a living wage are key social issues that companies face, prison labor is considered to
be more of a legal issue.
FALSE

46. What are some factors that have led to increased diversity in the workforce?

Changing demographics in the labor force as more women and minorities have entered have changed the labor
pool from which organizations select. The increased awareness of organizations that they can improve the
overall quality of their workforce has led them to hire and promote the most talented people available,
regardless of gender, race, or any other characteristic. Legislation and legal actions have forced organizations to
hire more broadly. Organizations that have opened offices and related facilities in other countries have had to
learn to deal with different customs, social norms, and more.

47. Should employers pay a minimum wage or a living wage? Support your answer.

The national minimum wage is $7.25. For a 40 hour week, that person will earn less than $300 per week or
slightly more than $15,000 per year. The living wage movement would suggest that this is not adequate and that
organizations owe their employees the ability to live a reasonable life. Of course, opponents argue that if a state
(or a firm) pays above market rate, then it will need to either charge more for its goods (making them less
competitive) or accept lower profits. Therefore, no rational businessperson would move to states with higher
minimum wages.

48. What are some similarities among people in the workforce? What are some differences?

Most people work to satisfy some set of needs, almost always based on financial criteria. Most people have a
fundamental and basic desire to be treated with respect and dignity by their employer. Most people have a
capacity for being reasonable and understanding when confronted with reasonable behavior by others.

Common differences include characteristics such as gender, ethnicity, and age. A long list of differences ranges
from factors such as religious beliefs to dietary preferences to political philosophies.

49. Summarize the six arguments that are used to describe how diversity contributes to competitiveness.

Diversity contributes to organizational performance and competitiveness in several ways.

The cost argument suggests that organizations that are diverse and
effectively manage that diversity will have higher productivity and
lower turnover, leading to lower labor costs.
The resource acquisition argument suggests that organizations that
become known as good places to work for minorities will find it easier
and cheaper to recruit a diverse, talented workforce.
The marketing argument suggests that diverse organizations better
understand and can cater to the needs of a diverse group of customers.
The creativity argument suggests that diversity increases innovation
lower turnover, leading to lower labor costs.
The resource acquisition argument suggests that organizations that
become known as good places to work for minorities will find it easier
and cheaper to recruit a diverse, talented workforce.
The marketing argument suggests that diverse organizations better
understand and can cater to the needs of a diverse group of customers.
The creativity argument suggests that diversity increases innovation
and creativity, because the organization will contain multiple
viewpoints and norms.
The problem-solving argument suggests that diversity brings more
information to the organization, increasing the quality of decisions.
The systems flexibility argument suggests that organizations can
become more flexible and better able to adapt to change if they develop
the flexibility to deal with a diverse workforce.

50. Discuss the characteristics of a multicultural organization.

Pluralism - Every group in the organization will work to better


understand every other group.
Full structural integration - The diversity within the organization will
be a complete and accurate reflection of the organization's external
market.
Full integration of the informal networks - There are no barriers to
entry and participation in any organizational activity.
Absence of prejudice and discrimination - People will be valued,
accepted, and rewarded purely on the basis of their skills and
contributions to the organization.
No organizational roles are identified with any cultural group.
The organization experiences low levels of intergroup conflict.

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