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CHAPTER 1 TEST QUESTIONS

STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW


MULTIPLE CHOICE
1

Employees account for as much as how much of the worth of a corporation?


C
A.
40
B.
60
C.
80
D.
90

What is the task of measuring the cause and effect relationship of various HR programs
and policies on the bottom line of the firm called?
D
A.
human resource worth
B.
organizational capital
C.
management worth
D.
human capital management

What approach attempts to determine the relationships that exist between certain HR
actions and the bottom line?
C
A.
organizational capital management
B.
human resource management
C.
human capital management
D.
human management

With human capital management, an attempt is made to determine the relationships that
exist between certain HR actions and the
A
A
A.
bottom line.
B.
organization.
C.
planning activities.
D.
organizational development process.

What approach makes an attempt is made to determine the relationships that exist between
certain HR actions and the bottom line?
A
A.
human capital management
B.
human resource management
C.
organizational capital management

D.

human management

A big difference between human capital management and old-era HR is that instead of
trying to __________ what other companies are doing, managers attempt to discover
what is best for their company.
B
A.
manage
B.
emulate
C.
study
D.
communicate

What is the utilization of individuals to achieve organizational objectives?


B
A.
human resource leadership
B.
human resource management
C.
human resource staffing
D.
human resource planning

What is the process called through which an organization ensures that it always has the
proper number of employees with the appropriate skills in the right jobs, at the right time,
to achieve the organizations objectives?
A
A.
staffing
B.
recruitment
C.
selection
D.
HR planning

How many functional areas are associated with human resource management?
B
A.
6
B.
5
C.
8
D.
10

10

Which of the following is NOT a human resource management function?


C
A.
staffing
B.
training and development
C.
human resource research
D.
compensation and benefits

11

Which of the following topics is involved in staffing?


D
A.
job analysis
B.
human resource planning
C.
recruitment

D.

all of the above

12

What is the systematic process of determining the skills, duties, and knowledge required
for performing jobs in an organization?
D
A.
human resource planning
B.
human resource analysis
C.
human resource research
D.
job analysis

13

What staffing task impacts virtually every aspect of human resource management?
B
A.
selection
B.
job analysis
C.
recruitment
D.
human resource planning

14

The process of systematically reviewing human resource requirements to ensure that the
required number of employees, with the required skills, is available when they are needed is
referred to as
A
A.
human resource planning.
B.
recruitment.
C.
selection.
D.
performance appraisal.

15

The process of attracting individuals to the firm and encouraging them to apply for jobs is
referred to as
D
A.
human resource planning.
B.
selection.
C.
appraisal.
D.
recruitment.

16

The process through which the organization chooses, from a group of applicants, those
individuals best suited both for the open position, and for the company is known as
D
A.
recruitment.
B.
human resource planning.
C.
human resource scrutiny.
D.
selection.

17

Which human resource management function consists not only of training and
development but also individual career planning and development activities, organization
development and performance appraisal, an activity that emphasizes T&D needs?
D

A.
B.
C.
D.

staffing
employee and labor relations
training and development
human resource development

18

What task involves learning that goes beyond todays job and has a more long-term
focus?
C
A.
training
B.
career planning
C.
development
D.
organizational development

19

What is the term that is designed to provide learners with knowledge and skills needed for
their present jobs?
B
A.
development
B.
training
C.
career planning
D.
succession planning

20

An ongoing process whereby an individual sets career goals and identifies the means to
achieve them is called
C
A.
succession planning.
B.
career development.
C.
career planning.
D.
management staffing.

21

A formal approach used by the organization to ensure that people with the proper
qualifications and experiences are available when needed is referred to as
A
A.
career development.
B.
succession planning.
C.
career planning.
D.
training.

22

What is the planned process of improving an organization by developing its structures,


systems and processes to improve effectiveness and achieving desired goals called?
A
A.
organization development
B.
team development
C.
team training
D.
organization training

23

What HR approach affords employees the opportunity to capitalize on their strengths and
overcome identified deficiencies?
C
A.
recruitment
B.
staffing
C.
performance appraisal
D.
selection

24

What human resource management task is a formal system of review and evaluation of
individual or team task performance?
B
A.
team training
B.
performance appraisal
C.
organizational appraisal
D.
team appraisal

25

What are all workers in an organization except managers and professionals, such as
engineers, accountants, or professional secretaries called?
A
A.
operative employees
B.
craft employees
C.
industrial employees
D.
union employees

26

Which of the following types of workers would be considered operatives?


C
A.
accountants
B.
engineers
C.
steel workers
D.
marketing analyst

27

According to your text, steel workers, truck drivers, and waiters are examples of what types
of workers?
C
A.
executives
B.
supervisors
C.
operative employees
D.
professionals

28

Compensation, as described in your text, refers to


A
A.
all rewards individuals receive as a result of their employment.
B.
the wages individuals receive each pay period.
C.
wage schedules and wage rates listed in the union contract.
D.
the internal alignment of intrinsic awards.

29

Compensation, as the term is used in this book, includes what type of rewards received as a
result of employment?
D
A.
financial
B.
nonfinancial
C.
pay and benefits

D.

all of the above

30

A financial reward, other than base pay, includes


B
A.
good supervisors.
B.
benefits.
C.
enjoyment of the work.
D.
pleasant working environment.

31

What are rewards such as enjoyment of the work performed or a satisfactory workplace
environment that provides flexibility called?
B
A.
financial
B.
nonfinancial
C.
pay and benefits
D.
all of the above

32

What human resource management task involves protecting employees from injuries
caused by work-related accidents?
D
A.
accident prevention
B.
injury analysis
C.
workplace analysis
D.
safety

33

What human resource management task refers to the employees freedom from illness and
their general physical and mental well being?
C
A.
utilization review
B.
physical review
C.
safety
D.
workplace analysis

34

What percent of the private sector is unionized?


A
A.
9.0
B.
14.2
C.
20.7
D.
15.3

35

What percent of the private sector was unionized in 1958?


C
A.
25
B.
17
C.
39
D.
52

10

11

36

When a labor union represents a firms employees, what is the human resource activity
often referred to as?
C
A.
union manager
B.
labor manager
C.
industrial relations
D.
union relations manager

37

Business firms are required by law to recognize unions and


A
A.
bargain with them in good faith.
B.
make concessions.
C.
assist them in organizing activities.
D.
sponsor them.

38

What human resource task pervades all functional areas of human resource management?
D
A.
human resource planning
B.
human resource development
C.
staffing
D.
human resource research

39

Which of the following best describes HRM functional areas?


B
A.
independent
B.
interrelated
C.
distinct
D.
autonomous

40

Those factors that affect a firms human resources from outside the organizations
boundaries are referred to as the
B
A.
corporate environment.
B.
external environment.
C.
social environment.
D.
corporate culture.

41

Major factors in the external environment include all of the following EXCEPT
C
A.
competition.
B.
customers.
C.
the firms mission.
D.
technology.

12

42

Which of the following is NOT an external environmental factor to consider?


D
A.
competition
B.
labor force
C.
economy
D.
informal organization

43

Which of the following is an external environmental factor for managers to consider?


D
A.
society
B.
unions
C.
shareholders
D.
all of the above

44

A pool of individuals external to the firm from which the organization obtains its workers is
referred to as
B
A.
forecasted allocation.
B.
labor force.
C.
employee.
D.
workforce.

45

Which of the following is part of the legal considerations that affects human resource
management?
D
A.
executive orders
B.
court decisions
C.
laws
D.
all of the above

46

The implied, enforced, or felt obligation of managers, acting in their official capacities, to
serve or protect the interests of groups other than themselves is referred to as
C
A.
ethics.
B.
social ethics.
C.
social responsibility.
D.
morals.

47

What is the discipline dealing with what is good and bad, or right and wrong, or with
moral duty and obligation referred to as?
C
A.
morals
B.
social responsibility
C.
ethics

13

D.
48

social interests

A group of employees who have joined together for the purpose of dealing with their
employer is called a(an)
C
A.
conspiracy.
B.
organization.
C.
union.
D.
association.

14

49

Unions are treated as an environmental factor because, essentially, they become a


__________ party when dealing with the company.
C
A.
disinterested
B.
secondary
C.
third
D.
accountable

50

In a unionized organization, the __________, rather than the __________, negotiates an


agreement with the firm.
A
A.
union; employee
B.
employee; supervisor
C.
steward; supervisor
D.
employee; steward

51

What are owners of a corporation called?


D
A.
managers
B.
executives
C.
presidents
D.
shareholders

52

What are the people who actually use a firms goods and services called?
C
A.
managers
B.
shareholders
C.
customers
D.
employers

53

It has been estimated that there will be more technological change in the next
__________ years than in the last 1,000 years.
B
A.
25
B.
50
C.
100
D.
200

54

The average person graduating from college today may face how many career changes in
his or her working years?
A
A.
five to seven
B.
one to two
C.
two to three

15

D.

three to four

16

55

According to a recent survey by The Society for Human Resource Management, what
was the top workplace trend?
C
A.
compensation
B.
staffing
C.
technology
D.
safety

56

Which of the following is NOT one of the top HR technology trends?


A
A.
increased focus on performance management
B.
increased web-connected workplaces
C.
outsourcing of functions to individuals and firms throughout the world
D.
virtual workplaces

57

As a generalization, when the economy is booming, recruiting qualified workers is


__________.
C
A.
easier
B.
dynamic
C.
more difficult
D.
more systematized

58

The Bureau of Labor Statistics forecasts that the information and services industry will
account for more than __________ percent of the workforce growth in the coming
decade.
D
A.
50
B.
60
C.
80
D.
90

59

The Bureau of Labor Statistics forecasts that the information and __________ industry
will account for more than 90 percent of the workforce growth in the coming decade.
C
A.
production
B.
manufacturing
C.
service
D.
dining

60

In analyzing HRs changing role, which of the following is a question to be asked?


D
A.
Can some HR tasks be performed more efficiently by line managers?
B.
Can some HR tasks be centralized or eliminated altogether?

17

C.
D.

Can some HR tasks be performed more efficiently by outside vendors?


All of the above

18

61

The changing role of HR permits it to shed its __________ image and focus on more
strategic and mission-oriented activities.
C
A.
legalistic
B.
diversity
C.
administrative
D.
staff

62

Individuals who normally act in an advisory (staff) capacity when working with other
managers regarding human resource matters are referred to as
C
A.
executives.
B.
line managers.
C.
human resource managers.
D.
project managers.

63

The human resource manager normally operates in what capacity?


D
A.
line
B.
production
C.
matrix
D.
staff

64

Today, many of the tasks the HR manager traditionally performed have been reduced or
eliminated and it is estimated that the present HR structure and service delivery costs
needs to be reduced by __________ percent.
C
A.
10 to 20
B.
20 to 30
C.
30 to 40
D.
40 to 50

65

What is the term that takes routine, transaction-based activities that are dispersed throughout
the organization and consolidates them in one place?
B
A.
outsourcing centers
B.
shared service centers
C.
consolidation centers
D.
human resource centers

66

Which of the following is NOT a typical HR functions that use shared service centers?
A
A.
selection
B.
global training and development

19

C.
D.

relocation assistance
benefits and pension administration

20

67

The process of transferring responsibility for an area of service and its objectives to an
external provider is referred to as
C
A.
shared service centers.
B.
consolidation centers.
C.
outsourcing.
D.
human resource centers.

68

The increased use of __________ has been pushed by the need to reduce costs caused by
sluggish earnings or tighter budgets, mergers and acquisitions that have created many
redundant systems.
B
A.
shared service centers
B.
outsourcing
C.
consolidation centers
D.
human resource centers

69

Which of the following is a key to the success of outsourcing?


D
A.
determine which functions to outsource
B.
determine the extent to which they should be outsourced
C.
determine which ones to keep in house
D.
all of the above

70

HR outsourcing could soon top how much per year?


B
A.
$50 billion
B.
$100 billion
C.
$200 billion
D.
$500 billion

71

In a recent survey of HR executives, nearly what percent of surveyed employers farm out
some aspect of HR to outside vendors or consultants?
D
A.
20 percent
B.
40 percent
C.
60 percent
D.
70 percent

72

HR professionals are moving toward focusing their time and resources on their
__________ businesses and try to outsource any function that they consider __________.
D
A.
active, nonstrategic
B.
primary, strategic

21

C.
D.

service, strategic
core, nonstrategic

22

73

The Transportation Security Administration and the Coast Guard have joined several
agencies that outsource their __________ operations.
B
A.
marketing
B.
human resource
C.
finance
D.
production

74

The Transportation Security Administration has contracted out all of its human resources
operations for all but its __________ personnel.
C
A.
shipping
B.
production
C.
executive
D.
junior

75

What are individuals directly involved in accomplishing the primary purpose of the
organization called?
B
A.
human resource managers
B.
line managers
C.
staff managers
D.
mobile managers

76

As the traditional work of HR managers diminishes, __________ managers are stepping


up and performing duties often done by the human resource manager.
C
A.
staff
B.
advisory
C.
line
D.
consulting

77

During the corporate scandals of recent years, some say that HR played a seeming
__________ role.
A
A.
invisible
B.
active
C.
energetic
D.
passive

78

HR must continue to focus on expanding its __________ and high-level corporate


participation with an emphasis on adding value.
C
A.
mobile

23

B.
C.
D.

technical
strategic
tactical

24

79

Which of the following would NOT likely be a task accomplished by an HR executive in


his or her role as a strategic partner?
A
A.
EEO analysis
B.
Strategic planning
C.
Mergers and acquisitions
D.
Reorganizing/Downsizing

80

During a session at SHRMs annual conference in Philadelphia, Richard Pinola, chair and
CEO of Right Management Consultants, Inc. (Philadelphia), listed tasks that CEOs want
from HR. Which of the following was one of those tasks?
D
A.
Make workforce strategies integral to company strategies and goals
B.
Leverage HRs role in major change initiatives
C.
Earn the right to a seat at the corporate table
D.
All of the above

81

Traditionally, what has been the role of HR in organizations?


B
A.
tactical
B.
administrative
C.
strategic
D.
high level executive

82

Human resource professionals can give the CEO and CFO a powerful understanding of
the role __________ play(s) in the organization and the way it combines with business
processes to expand or shrink shareholder value.
C
A.
laws
B.
executive orders
C.
human capital
D.
management

83

Just like its counterparts in finance, IT, operations, and sales and marketing, HR must be
held accountable to its __________.
C
A.
leadership
B.
management
C.
plan
D.
motivation

84

CEOs want an HR partner who understands the __________ side of the business.
C
A.
sales

25

B.
C.
D.

accounting
operational
marketing

26

85

A generation ago many HR people were more like __________ than managers of human
capital.
D
A.
salespersons
B.
marketers
C.
financial managers
D.
policemen

86

There are certain questions that the HR executive should ask to determine if he or she is
involved strategically. Which of the following is one of those questions?
D
A.
Is HR present at mergers and acquisitions planning meetings, strategy reviews,
and restructuring discussions?
B.
Does HR provide an annual report on its ROI?
C.
Is HR rated by its customers?
D.
All of the above

87

A direct reporting relationship to the CEO is a characteristic of a(an)


A
A.
executive.
B.
generalist.
C.
specialist.
D.
manager.

88

A human resource generalist normally performs tasks


D
A.
at entry levels.
B.
in either compensation or labor relations.
C.
in fewer than three functional areas.
D.
in various human resource-related areas.

89

A human resource specialist may be which of the following?


D
A.
training manager
B.
compensation analyst
C.
recruiter
D.
any of the above

90

Which of the following positions would be considered a human resource specialist?


B
A.
shift manager
B.
compensation manager
C.
vice president human resources
D.
marketing manager

27

91

92

An individual with a job title Benefits Analyst is probably which type of employee?
C
A.
executive
B.
generalist
C.
specialist
D.
manager
An executive may be identified by his or her
D
A.
specialty area.
B.
seniority.
C.
span of control.
D.
position level in the organization.

93

The human resource vice president is both a(n) __________ and a __________, having
responsibility for a wide variety of functions.
B
A.
specialist, generalist
B.
executive, generalist
C.
executive, specialist
D.
manager, specialist

94

The vice president of industrial relations is both a(n) __________ and a __________.
C
A.
specialist, generalist
B.
executive, generalist
C.
executive, specialist
D.
manager, specialist

95

In terms of future jobs for human resource professionals, what is the numbers expert
called who is used to determine the value of HR and to analyze the cost-effectiveness of
various HR practices?
A
A.
B.
C.
D.

96

A
CFO for HR
Internal consultant
Talent manager
Vendor manager

In terms of future jobs for human resource professionals, what is the person called who
assists managers to recruit, interview, hire and retain the talent that is needed and advises
managers on legal and ethical matters such as EEO laws?
B

28

A.
B.
C.
D.

CFO for HR
Internal consultant
Talent manager
Vendor manager

97

In terms of future jobs for human resource professionals, what is the person called who is
responsible for finding, developing and keeping the employees who will best accomplish
the firms objectives?
C
A.
CFO for HR
B.
Internal consultant
C.
Talent manager
D.
Vendor manager

98

In terms of future jobs for human resource professionals, what is the person called who
determines which functions can be handled better and less expensively outside the
organization?
D
A.
CFO for HR
B.
Internal consultant
C.
Talent manager
D.
Vendor manager

99

In terms of future jobs for human resource professionals, what is the person called who
works with the many functions that have centralized such as benefits and pension
administration that employees can access from their desktop computers?
A
A.
Self-service leader
B.
Internal consultant
C.
Talent manager
D.
Vendor manager

100

The basic purpose of human resources in both large and small firms is
B
A.
quite different.
B.
the same.
C.
variable from year to year.
D.
to assure that payroll is met.

101

In small businesses, what is the focus of HR activities?


D
A.
performance appraisal
B.
training
C.
employee relations

29

D.
102

hiring and retaining capable employees

What tasks might the evolving HR organization be involved with most?


D
A.
outsourcing
B.
shared service centers
C.
line managers performing HR tasks
D.
all of the above

30

CHAPTER 1 TEST QUESTIONS


STRATEGIC HUMAN RESOURCE MANAGEMENT: AN OVERVIEW
TRUE/FALSE
1

Human capital management (HCM) involves tasks of measuring the cause and effect
relationships of various HR programs and policies on the bottom line of the firm.
T

With human resource management, an attempt is made to determine the relationships that
exist between certain HR actions and the bottom line.
F

A big difference between human capital management and old-era HR is that instead of
trying to emulate what other companies are doing, a manager attempts to discover what is
best for his or her companies.
T

Human resource management (HRM) is the utilization of individuals to achieve


organizational objectives.
T

People who are engaged in the management of human resources develop and work through
an integrated human resource management system.
T

Staffing is the process through which an organization ensures that it always has the
proper number of employees with the appropriate skills in the right jobs, at the right time,
to achieve the organizations objectives.
T

Human resource development involves job analysis, human resource planning,


recruitment, and selection.
F

Job analysis is the systematic process of determining the skills, duties, and knowledge
required for performing jobs in an organization.
T

Recruitment is the process of comparing human resource requirements with their


availability and determining whether the firm has a shortage or excess of personnel.
F

31

10

Recruitment is the process of attracting qualified individuals and encouraging them to


apply for work with the organization.
T

11

Selection is the process through which the organization chooses, from a group of
applicants, those individuals best suited both for open positions and for the company.
T

12

Human resource development (HRD) is a major HRM function that consists not only of
training and development but also individual career planning and development activities,
organization development and performance appraisal, an activity that emphasizes T&D
needs.
T

13

Development is designed to provide learners with the knowledge and skills needed for
their present jobs.
F

14

Development involves learning that goes beyond todays job; it has a more long-term
focus.
T

15

Career development is an ongoing process whereby an individual sets career goals and
identifies the means to achieve them.
F

16

Organization planning is an organization wide application of behavioral science


knowledge to the planned development and support of organizational strategies,
structures and processes for improving a firms effectiveness.
F

17

Through performance appraisal, employees and teams are evaluated to determine how
well they are performing their assigned tasks.
T

18

Production employees are all workers in an organization except managers and


professionals, such as engineers, accountants, or professional secretaries.
F

19

The term compensation includes all rewards that individuals receive as a result of their
employment.
T

32

20

Health involves protecting employees from injuries caused by work-related accidents.


F

21

Today, because of federal and state legislation that reflects societal concerns, most
organizations have become attentive to their employees safety and health.
T

22

Private-sector union membership has fallen from 39 percent in 1958 to 14 percent today,
the lowest percentage since 1901.
F

23

When a labor union represents a firms employees, the human resource activity is often
referred to as industrial relations, which handles the job of collective bargaining.
T

24

Although human resource research is not a distinct HRM function, it pervades all
functional areas, and the researchers laboratory is the entire work environment.
T

25

All HRM functional areas are highly interrelated.


T

26

Factors outside its boundaries that affect a firms human resources make up the internal
environment.
F

27

It has been estimated that there will be more technological change in the next 25 years
than in the last 1,000 years.
F

28

Shared service centers (SSCs), also known as centers of expertise, take routine,
transaction-based activities dispersed throughout the organization and consolidate them in
one place.
T

29

Outsourcing is the process of transferring responsibility for an area of service and its
objectives to an external provider.
T

30

HR outsourcing, which was a roughly $60 billion business in 2001 could soon top $200
billion per year.
F

33

31

The HR professional must now integrate the goals of HR to the goals of the organization.
T

32

Part of HR becoming a strategic business partner includes writing a measurable business


plan and following through on its implementation.
T

33

CEOs want an HR partner who understands the marketing side of the business.
F

34

A generation ago many HR people were more like policemen than managers of human
capital.
T

35

If todays HR managers are to become strategic partners in their organizations, they must
run their departments according to the same rigid criteria that apply to other units.
T

36

Tied closely to strategic HR is the emerging field of human capital accountability.


T

37

A specialist, who often is an executive, performs tasks in a variety of human resourcerelated areas.
F

38

A specialist may be a human resource executive, manager, or nonmanager who is


typically concerned with only one of the five functional areas of human resource
management.
T

39

As firms grow and become more complex, the human resource function also becomes
more complex and achieves greater importance.
T

40

Small businesses seldom have a formal human resource unit and HRM specialists.
T

34

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