In which decade did HRM originate?

Your answer:
c) 1980s
Feedback:
1980s - the term originated in the USA in the early 1980s and offers the promise that the
people management function, where it exists, can meet the challenges faced by
contemporary organizations and occupy a heightened strategic role if its philosophies and
practices are used.
Page reference: 7

Question 2
What are the ideas underpinning 'soft', 'commitment', or 'high-road' HRM practices?
You did not answer the question.
Correct answer:
a) Labour needs to be treated as an asset to be invested in
Feedback:
These approaches stress the mutuality existing between employer and employee; see
labour as an asset to be invested in rather than treated as a cost, and view commitment to
and investment in human capital activities as central to competitive advantage.
Page reference: 10

Question 3
Which consulting company is associated with the concept of talent management?
You did not answer the question.
Correct answer:
d) McKinsey
Feedback:
McKinsey and their 'War for Talent' reports are associated with this concept; arguing that
the 'knowledge economy' was placing a premium on talented employees.
Page reference: 10

Question 4
Why are employers interested in employee engagement?
You did not answer the question.
Correct answer:
c) Because engaged employees are more motivated and prepared to give of their best to
make the firm succeed
Feedback:
Engaged employees are argued to have a sense of personal attachment to their work and
the company; they are prepared to give of their best for the organization, and if the
employer delivers on their commitments to staff, the psychological contract is enhanced
between both parties; enhancing mutual trust and the employee's sense of fairness.
Page reference: 11

Question 5
Which of the following is a key HR role as defined by Ulrich et al (2009)?
You did not answer the question.
Correct answer:
b) Business ally
Feedback:
Ulrich and his colleagues developed six key roles for HR practitioners, arguing that
fulfilling them will lead to added value for the function and for the organization. They
are: credible activist, culture and change steward, talent manager/organizational designer,
strategy architect, operational executor, and business ally.
Page reference: 16-17

Question 6
The term 'emotional labour' is associated with which author?
You did not answer the question.
Correct answer:
a) Arlie Hochschild

Feedback:
Emotional labour, and engaging in aspects of it, is increasingly seen as being a crucial
component of the service encounter, whether that occurs virtually or on a face to face
basis. The term and the concept is associated with the ground-breaking work of
Hoschshild and her (1983) book, The Managed Heart.
Page reference: 13

Question 7
What does the term 'financialization' refer to?
You did not answer the question.
Correct answer:
a) A process whereby financial markets and institutions gain greater influence over
economic policy, economic outcomes and the elevation of the financial sector over
others.
Feedback:
It is a term used to describe the dominance of profit-making mechanisms that rely on
financial transactions in the global finance markets rather than trading and
commodity/service production.
Page reference: 12

Question 8
Why do some commentators claim that it is unlikely that the UK economy will become a
knowledge economy?
You did not answer the question.
Correct answer:
c) Historically low levels of company investment into research and development.
Feedback:
Some commentators claim that due to low levels of company investment into research
and development it is unlikely that the UK economy will become a knowledge economy.
Indeed, a low-skill strategy is arguably more important, and more likely in many sectors.
Page reference: 13-14

Question 9

What measures are typically involved in the rationalizing of businesses?

You did not answer the question.
Correct answer:
c) Downsizing and Delayering
Feedback:
'Rationalizing' a business typically involves organizations reducing the number of staff it
employs (because employment costs are often the most substantial areas of outlay for a
company), and also reducing the layers of management hierarchy. This also reduces
employment costs - and managers are often a more expensive staff resource - whilst also
facilitating communication between management layers of the organization.
Page reference: 15

Question 10
What kinds of practices outlined below are typically associated with non-standard
working and flexibility?
You did not answer the question.
Correct answer:
b) The reduction in distinctions between standard and unsocial hours or standard and
extra hours
Feedback:
Non-standard working and flexibility are typically associated with the blurring between
standard working hours (often described as '9-5') and additional hours (sometimes for no
additional moneys) or unsocial hours such as Sunday working, evening hours, or working
on bank holidays.
Page reference: 14
What is the main purpose of a business strategy?
Your answer:
a) To focus attention on failing areas of business practice.
Correct answer:

d) To secure and sustain competitive advantage within a given market for goods and
services.
Feedback:
There are various definitions as to what strategy is. Usually definitions of the term will
refer to the ways in which an organization can secure competitive advantage over time
and within competitive markets. Others will see strategy as being the routine ways in
which the organization overcomes problems it faces in its environment. Whatever the
definition chosen, a degree of contingency exists due to market dynamism.
Page reference: 23

Question 2
Which of these models is not a rational planning approach?
You did not answer the question.
Correct answer:
c) Processual approach
Feedback:
The Corporate-level, strategic business unit level and operational level approaches are
perceived to be the different levels of a rational planning approach. All of these 'levels'
suppose that a strategy can be developed through a logical, systematic, and coherent
decision-making practice that occurs within the organization and in consultation with
relevant external bodies. The Processual approach formulates strategy through a step by
step approach whereby strategies emerge in incremental steps over time.
Page reference: 25-27

Question 3
What type of rationality is evident in the processual approach?
You did not answer the question.
Correct answer:
c) Bounded
Feedback:
Bounded rationality is evident in the processual approach. This form of rationality
involves an acceptance that decision-makers can only process a limited number of ideas

at one time and therefore no decision can be seen to be entirely rational. Furthermore,
there is a reluctance to try and find all relevant information, as witnessed in the rationalplanning approach. There is a tendency to accept the first satisfactory option rather than
insisting on the best.
Page reference: 27-28

Question 4
Which of the following is a 'best fit' approach?
You did not answer the question.
Correct answer:
c) Competitive-advantage models
Feedback:
Competitive-advantage models are 'best fit' approaches. The approach asserts that if a
certain set of HR policies and practices are adopted then an organization will gain in
competitive advantage. This involves gaining advantage either through cost leadership,
asserting differentiation through quality of produce or service, or through focus in a
'niche' market. The approach assumes that there is a 'best' option that ought to be adopted.
However, it can be argued that adopting one practice at the expense of others is a limited
and narrow minded approach to linking strategy, business performance and HRM
practice.
Page reference: 31-32

Question 5
Which approach that seeks to link strategy, business performance and HRM policies and
practices, assumes that there are a number of HRM practices that are suitable for all
organizations?
You did not answer the question.
Correct answer:
a) Best practice
Feedback:
Best practice approach assumes that a number of HRM policies and practices are suitable
for all organizations in order to achieve greater business performance. Unlike the best fit
approach, that presupposes that certain HRM practices and policies suit different
organizations. Although, they both claim that there is a certain superior set of practices

that ought to be adopted by organizations in order to achieve greater business

performance.
Page reference: 34-35

Question 6
Which personnel association uses the idea of bundles of integrated HRM practices?
You did not answer the question.
Correct answer:
c) Chartered Institute of Personnel and Development
Feedback:
The idea of bundles of integrated HRM practices lies at the heart of thinking on highperformance work practices, an approach that has been promoted by the Chartered
Institute of Personnel and Development (CIPD).
Page reference: 34

Question 7
Which country is associated with the universal best practice approach?
You did not answer the question.
Correct answer:
b) US
Feedback:
The universal approach is referred to as the US-based HRM approach. This approach has
been criticised for its generalisations and over simplifications of different environments.
Page reference: 34

Question 8
Which approach towards HRM strategy does the Saatchi and Saatchi example illustrate?
You did not answer the question.
Correct answer:
d) Resource based approach

Feedback:
The example illustrates the resource based approach. The greatest asset that the
organization benefited from, was the skills, knowledge and expertize that were embedded
in the staff when Roberts took the decision that the organization should become an ideas
compnay.
Page reference: 24

Question 9
Focusing on core competencies means companies have the possibility of generating?
You did not answer the question.
Correct answer:
a) Human capital advantage
Feedback:
Core competencies will lead organizations to advance in terms of human capital, which in
turn may lead to the other benefits listed.
Page reference: 37

Question 10
What is the primary limitation of the resource-based view?
You did not answer the question.
Correct answer:
a) It overlooks the significance of the wider environment.
Feedback:
The resource-based view overlooks the significance of the wider environment.
Organizations always exist in environments, and therefore resources are not ends in
themselves, but are useful in a business setting only when they create value in their
markets.
Page reference: 37
When employing immigrants, managers must be aware of?
Your answer:

a) Country of origin
Correct answer:
c) Relevant legislation
Feedback:
While all might be of at least some relevance, as for example culture and religion might
require special facilities, relevant legislation is the correct answer. Managers must ensure
that any policies/procedures do not break the law.
Page reference: 58

Question 2
The STEEPLE framework is flawed because:
You did not answer the question.
Correct answer:
a) it can result in managers concentrating on the detail and missing the overview.
Feedback:
While all are true to some extent, the main problem with STEEPLE is the potential loss
of seeing the whole picture by being too focused on the separate elements.
Page reference: 45

Question 3
A derived demand is one whereby?
You did not answer the question.
Correct answer:
a) The nature of demand changes depending on the demand for the organization's output
and the method used to produce the output.
Feedback:
An organization's demand for labour, whether measured in number of employees or
employee hours, is 'derived from' (that is, determined by) the demand for the
organisation's output and the method used to produce the output.
Page reference: 50

Question 4
The basis of liberal democracy is?
You did not answer the question.
Correct answer:
b) Rights and responsibilities
Feedback:
While all these might be considered aspects of a liberal democratic society, the basis is
rights and responsibilities and Morris et al. (2002:177-8) elaborate by detailing the 5
elements that make up these rights and responsibilities.
Page reference: 52

Question 5
A representative democracy is characterized by?
You did not answer the question.
Correct answer:
b) Adults electing representatives to act on their behalf at the different levels of the
legislature.
Feedback:
A cornerstone of representative democracies is that all adults are able to elect a
representative to act on their behalf at different levels of the legislature.
Page reference: 52

Question 6
Community law within the EU is an independent legal order:
You did not answer the question.
Correct answer:
d) which takes precedence over that of member states.
Feedback:

Community law is interpreted by the European Court of Justice, and its decisions take
precedence over those of member states. As such, the law is of major importance to
organizations and can change relatively quickly; hence organizations must keep
themselves informed and be aware of legal decisions.
Page reference: 54

Question 7
Gross National Product is:
You did not answer the question.
Correct answer:
b) GDP plus net property income earned abroad.
Feedback:
The income earned abroad may include profit, rent, interest etc.
Page reference: 54-55

Question 8
UK governments have favoured immigration because?
You did not answer the question.
Correct answer:
b) It meets a demand.
Feedback:
Such influxes have implications for organizations in all sectors. In particular, it enables
organizations to recruit when skills are in scarce supply in the domestic labour market.
Page reference: 58

Question 9
Are Gilmore and Williams arguing that the role of technology in industrial development
is:
You did not answer the question.
Correct answer:

b) one amongst many other factors.

Feedback:
Gilmore and Williams argue that technology and globalization are inexplicably linked
and as such technology is one, and an important one, of the so called 'drivers' of
globalization.
Page reference: 60

Question 10
Footloose companies are those that?
You did not answer the question.
Correct answer:
c) Seek to locate in countries that offer markets, reduced resource costs and lower rates of
corporation taxes.
Feedback:
Footloose companies are companies that seek to locate in countries that not only offer
markets and/or reduced resource costs, but also have lower rates of corporation and other
taxes plus other inducements. Such companies are willing to move between countries to
seek the location with the lowest overall costs of operating.
Page reference: 62
The chapter argues that one of the following attributes of potential employees is of
heightened interest to employers when recruiting. Which one is it?
Your answer:
c) The candidate's ability to prepare for and cope with an uncertain future
Feedback:
One of the things recruiters have to do when assessing a candidate is to predict their
ability to prepare for and cope with an uncertain future - something that is very difficult
to do. Organizations and their environments can change and change rapidly, so seeking
out adaptable staff is crucial.
Page reference: 90

Question 2
Selection is concerned with...?

You did not answer the question.

Correct answer:
d) Applying appropriate techniques and methods to select a candidate.
Feedback:
Although recruitment and selection are seen as being inextricably intertwined and part of
the same process, it is useful to make a distinction between them. Recruitment activities
aim to attract a pool of suitably qualified candidates. Selection is concerned with
applying appropriate techniques and methods with the view to select a candidate.
Page reference: 90

Question 3
Which activities are not associated with workforce planning?
You did not answer the question.
Correct answer:
c) Time keeping
Feedback:
The CIPD define workforce planning as a core process of HRM that is shaped by the
organization's strategy and ensures the right number of people with the right skills, in the
right place at the right time to deliver the organization's objectives.
Page reference: 90-92

Question 4
Why is job analysis so infused with organizational politics? Is it:
You did not answer the question.
Correct answer:
a) Because it is a process which could lead to contraction of employees in a department
and therefore diminishing its power base.
Feedback:
Job analysis is often infused with organizational politics as managers rarely wish to see
reductions in their staff, and the kinds of questions asked often lead to justifications for

employment; for example, arguing that additional employees are needed to cope with
higher workloads. Although individuals are recruited to a specific company, in reality
they are generally working for a department, and the department is unlikely to admit that
it no longer has a need for labour, as that will diminish its power base.
Page reference: 92

Question 5
What do rational processes to recruitment and selection typically ignore?
You did not answer the question.
Correct answer:
d) The use of power and micropolitics by managers
Feedback:
The strength of the systems approach and its rational approach to recruitment and
selection is that it takes into account a variety of structural issues like the labour market
(local, national or international), employee turnover, wages, benefits and other aspects of
the employment contract. What it fails to take into account is the ways by which
managers influence the processes to their own advantage.
Page reference: 93

Question 6
Which is the most popular method of recruiting applicants to jobs?
You did not answer the question.
Correct answer:
b) Corporate website
Feedback:
While all are some of the many methods used to attract applicants, the three most popular
are the corporate website, recruitment agencies, local press and employee referral
schemes
Page reference: 97-98

Question 7
Which selection method remains the most used by organizations?

You did not answer the question.

Correct answer:
a) Interviews
Feedback:
Whilst all four methods are popular, the interview remains the most frequently used
method of selection.
Page reference: 100

Question 8
Which items below are forms of perceptual errors made during the selection process?
You did not answer the question.
Correct answer:
a) Like-me judgements
Feedback:
Some of the most problematic forms of perceptual error are listed in box 5.8 and include
the horns and halos effect, first impressions, impression management and like-me
judgements. In order to deal with them, organizations are advised to train existing and
would-be interviewers so that they are aware of their potential biases.
Page reference: 102

Question 9
Which of the below is a form of interview used in candidate selection?
You did not answer the question.
Correct answer:
b) The competency based interview
Feedback:
There are a variety of interviews that can occur within HRM activities and within the
selection process. Three main interviews are used within selection with the competency
based interview being one of them. The others are the biographical and situational.
Page reference: 102-3

Question 10
The interview is used as a method for determining?
You did not answer the question.
Correct answer:
b) The degree of fit between the applicant and the demands of the job.
Feedback:
While all may be considered in the interview, the degree of fit between the applicant and
the post is the most important consideration. Although selection based on factors such as
age and physical attributes may often be discriminatory and indeed illegal, some
commentators claim that such attributes still have a large effect on the selection of a
candidate.
Page reference: 106