HR Management

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Practice Test for Human Resources Management

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Chapter 1Changing Nature of Human Resource ManagementMULTIPLE CHOICE 1. Human resource management is a. supervising, monitoring, controlling, and disciplining employees in order to achieve organizational goals. b. the designing of organizational systems to ensure that human talent is used effectively to accomplish organizational goals. c. the use and coordination of human capital to ensure the profitability and survival of the organization. d. the design of the organization and its systems in order to achieve the goals of the organization. ANS: B OBJ: 1 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: HRM

2. HR metrics must be linked to a. statistical analyses. b. industry outcomes. c. business performance. d. employee satisfaction. ANS: C OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: Creation of Value

3. All of the following are types of organizational assets EXCEPT a. social. b. human. c. financial. d. intangible. ANS: A OBJ: 1 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 4 LOC: Creation of Value

4. Which of the following statements is TRUE? a. Because of the higher quality of Western European education, the return on human capital for European firms is higher than the return on human capital for U.S. firms. b. Companies that spend more than 60% of total operating costs on employee costs have poor returns on investment in their human capital. c. U.S. firms spend nearly twice as much as European firms on employee salaries and benefits, but U.S. firms experience higher levels of return on investment for their human capital. d. Human capital is the collective value of capabilities, knowledge, skills, life experiences and motivation of an organizational workforce. Being intangible, it is difficult to measure the effect of human capital on shareholder value. ANS: C OBJ: 1 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 5 LOC: Creation of Value

5. In a university, the assets that allow all the other assets of the school to be used to offer educational services to its students are the universitys a. financial endowment and income. b. physical plant such as libraries, laboratories and technological learning facilities. c. administrators, professors, and other employees. d. intangible assets such as its unique operating processes and specialized research capabilities. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 5 LOC: Creation of Value

6. The Chief Financial Officer of McGill Tubing wants to learn the contribution of McGills workforce toward creating value for shareholders. An analysis which would provide this information is the calculation of a. the human capital revenue stream. b. marginal revenue generated per employee. c. return on human capital investment. d. profit per employee. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 5 LOC: Creation of Value

7. Through ____ HR management provides the organization with a sufficient supply of qualified individuals to fill the jobs in the organization. a. staffing b. affirmative action c. talent management d. performance management ANS: A OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 5 LOC: HRM

8. Tyrone Toys is intensely focused on reducing labor costs. During the executive committees discussion of closing its unionized plant in Ohio and opening a non-union plant in Mississippi, the executive vice president of HR suggests that the committee get legal advice in case Tyrone Toys would be subject to lawsuits by the union. This interaction suggests that a. HR is not a strategic partner in this firm because the EVP of HR is reacting to another committee members suggestion, not proactively making his own suggestion. b. HR is not a strategic partner in the firm because any suggestion about closing a plant should properly come from HR, not another executive. c. HR is a strategic partner in the firm because in this firm the EVP of HR is allowed to sit in on important strategic meetings. d. HR is a strategic partner in the firm because the EVP of HR a permanent member of the executive committee. ANS: D OBJ: 3 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 6 LOC: Strategy

9. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusions into his territory by HR managers. Henry feels that his relationships with his employees are strong and supportive, and that HR initiatives generally cause unnecessary trouble and complications.

a. Henry is correct, because the HR function is a support and staff function and should not intrude on day-to-day management functions. b. HR managers have the sole responsibility for the proper implementation of company policy regarding employees. Henry is subverting this process. c. Henry is probably committing major violations of company policy and wants to keep this secret from HR management. d. Henry would be surprised to learn that every manager, including him, is an HR manager. ANS: D OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 6 LOC: HRM

10. When the human resources function creates a unique capability in a firm that creates high value and differentiates the organization from its competition, human resources is a/an ____ for the firm. a. tangible asset b. core competency c. critical capability d. capital contributor ANS: B OBJ: 1 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 6 LOC: Strategy

11. As the top HR manager of a medium-sized hospitality business in New Orleans that is heavily dependent on U.S. and international tourism, you are deeply involved in rebuilding the companys strength in the Hurricane Katrina recovery. You need to monitor all of the following factors EXCEPT a. the employee and labor relations factor of whether unions are targeting hospitality workers for organization. b. the global factor of the value of the yen and the euro in relation to the dollar. c. the legal factor of the enforcement of the Foreign Corrupt Practices Act. d. the environmental factor of the effect of global warming on hurricane patterns. ANS: C OBJ: 1 TOP: Application PTS: 1 DIF: Challenging NAT: AACSB Analytic REF: p. 7 | Figure 1-1 LOC: HRM

12. ____ identifies paths and activities for individual employees as they develop within the organization. a. Staffing b. HR development c. Performance management d. Career planning ANS: D OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 7 LOC: HRM

13. Talent management includes which of the following activities? a. job-skill training b. wage and salary administration c. diversity assessment and analysis d. environmental scanning ANS: A OBJ: 2 TOP: Definitional PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 7 LOC: HRM

14. Compensation and benefits managers in almost all organizations face a major and growing concern regarding the cost of a. equalization of pay between men and women. b. incentive pay. c. benefits. d. outsourcing. ANS: C OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 7 LOC: HRM

15. Most new jobs in the U.S. economy are created by a. small private sector businesses. b. federal government agencies and the military. c. large private sector firms in service industries, particularly health care and technology. d. traditional, large heavy manufacturing companies. ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Easy NAT: AACSB Reflective Thinking REF: p. 8 LOC: Environmental Influence

16. The collective value of the capabilities, knowledge, skills, life experiences and motivation of an organized workforce is called a. the organizations talent inventory. b. total human resources. c. human capital. d. the organizations intellectual assets. ANS: C OBJ: 1 TOP: Definitional PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 8 LOC: HRM

17. Which of the following is NOT a major HR concern of small businesses? a. potential unionization efforts b. shortages of qualified workers c. compliance with government regulations d. increasing benefits costs ANS: A OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 8 LOC: HRM

18. The reason that cooperation between operating managers and HR staff is necessary for HR efforts to succeed is that a. HR professionals see the coarse-grained picture of organizational strategy while operating managers see the fine-grained picture of daily production. b. HR designs processes that the operating managers must help implement. c. HR professionals must implement processes that have been designed by top management and that impact operating managers. d. HR professionals must react swiftly to initiatives created by operating managers. ANS: B OBJ: 2 TOP: Conceptual PTS: 1 DIF: Moderate NAT: AACSB Reflective Thinking REF: p. 9 LOC: Operations Management

19. Matt has recently joined his familys wholesale landscape nursery business as vice president of operations. The firm employs 25 full time employees, plus about 20 seasonal employees. In the past, Matts father personally handled all HR issues. Matt plans to bring the company in line with typical HR staffing levels. Matt will a. hire a full-time HR manager and a payroll clerk. b. add a clerical employee to help with HR tasks. c. outsource the HR function. d. hire a full-time HR professional. ANS: B OBJ: 2 TOP: Application PTS: 1 DIF: Moderate NAT: AACSB Analytic REF: p. 9 LOC: HRM

20. Woodmere Production Company employees over 2,000 hourly workers. The HR department is debating the introduction of web-based technology to handle employment applications, employee benefit enrollments and other related functions. The move to this t