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Management Lesson 12 (Ch. 10): HR Management

(T/F) Human resources management deals with formal systems for the management of people within of the organization.
(T/F) People are a source of competitive advantage when their skills, knowledge and abilities are not equally available to all competitors.
(T/F) Another term for human capital is intellectual capital.
(T/F) Teamwork and cooperation are two pervasive methods for ensuring an organized workforce.
(T/F) People are a source of competitive advantage when others can copy their capabilities and contributions.
(T/F) The term human capital is often used today to describe the trading value of employees.
(T/F) Demand forecasting is the easiest part of human resources planning.
(T/F) The human resource planning process occurs in three stages: planning, programming and evaluating.
(T/F) Cheng, Inc. uses its computerized human resources information system to analyze its past rates or ratios of turnover, terminations and retirements. The company is looking at external labor supply.
(T/F) The “supply of labor” estimates how many and what types of employees the organization actually will need.
(T/F) In the U.S., demographic trends have contributed to a shortage of workers with the appropriate skills and education levels.
(T/F) When managers find that their employee supply is larger than its demand, they may decide to use attrition or layoffs and transfers to correct the problem.
(T/F) U.S. Managers responded to the labor shortage by decreasing training budgets.
(T/F) Job analysis gives managers the job description and selection steps.
(T/F) Recruitment refers exclusively to external applicants.
(T/F) A thorough job analysis helps organizations successfully defend themselves in lawsuits involving employment practices.
(T/F) According to surveys most jobs are filled through newspaper advertising
(T/F) Interviews are the most popular recruitment tool.
(T/F) Applications and resumes are the most popular selection tool.
(T/F) The behavioral description interview explores what candidates have actually done in the past.
(T/F) Reference check information is becoming increasingly difficulty to obtain because of highly publicized lawsuits.
(T/F) Well over half of all U.S. companies conduct pre-employment drug tests.
(T/F) Content validity refers to the degree that a test actually predicts or correlates with job performance
(T/F) The process of laying-off large numbers of managerial and other employees is referred to as outplacement.
(T/F) It is a good idea to allow some time for debate during a termination interview.
(T/F) Currently, diversity training is offered few U.S. organizations.
(T/F) Management by objectives involves a subordinate and a supervisor agreeing in advance on specific performance goals.
(T/F) The process of using multiple sources of appraisal to gain a comprehensive perspective of one’s performance is called a 180-degree appraisal.
(T/F) Internal factors affecting the wage mix include collective bargaining, worth of job and the employer’s ability to pay.
(T/F) The three basic required benefits are workers’ compensation, health care and social security.
(T/F) In a union representation election, the union is considered to have won if a simple majority of those voting vote for the union.
Firms can create a competitive advantage when human resources are:
A. Valuable
B. Rare
C. Inimitable
D. Organized
E. All of the above
The design and control of formal systems for the management of people within an organization is known as:
A. Performance management
B. Human resources management
C. Organization design
D. Management of organizations
E. Personal resource management
Companies use empowerment programs, continuous improvement and total quality initiatives in order to achieve:
A. Complete organization
B. Imitation
C. Value
D. Rareness
E. None of the above
Establishing formal systems for the management of people within the organization is the function of:
A. Job analysis
B. Labor relations
C. Human resources management (HRM)
D. Orientation training
E. Leadership
With people, which of these can give organizations a competitive advantage?
A. Being rare
B. Creating value
C. Being difficult to imitate
D. Being organized
E. All of the above
Concerns of human resource managers include all of the following EXCEPT:
A. How to manage employee layoffs
B. How to maintain a well-trained, motivated work force
C. How to contain health care costs
D. How to manage diversity
E. All of the above are concerns of HR managers
When managers and executives describe the strategic value of skills and knowledge of employees, they use the term:
A. Success
B. Effectiveness
C. Human capital
D. All of the above
E. None of the above
Human resources planning has three stages. They are:
A. Planning, executing and delivering
B. Hiring, training and firing
C. Planning, programming and evaluating
D. Planning, delivering and evaluating
E. Recruiting, screening and hiring
The planning process of human resources management begins with:
A. Determining the number and types of people needed to realize the organization’s business plans
B. Recruiting individuals that will assist the organization to realize its business plans
C. Hiring the types of people that can assist the organization to realize its business plans
D. Evaluating an organization’s present employees and their capabilities to fulfill the organization’s business plans
E. None of the above
The programming stage of human resources management consists of:
A. Hiring and firing
B. Evaluating employee performance levels
C. Determining appropriate automation methods
D. Implementing the plans determined earlier
E. Calculating legally justifiable compensation levels
The final stage in the human resource planning process is to
A. Evaluate the activities conducted to ensure that they are producing the desired results
B. Discharge those employees determined to be ineffective at realizing organizational goals
C. Restart the process
D. Evaluate the decisions made for legal compliance
E. Distribute compensation adjustments
Perhaps the most difficult part of human resources planning is conducting:
A. Demand forecasts
B. Internal labor supply
C. External labor supply
D. Job analysis
E. Job specifications
Cellular Tech has developed a new cellular telephone which will be marketed toward developing third world countries. It is estimated that the demand for the new product will start out slow and accelerate as the product becomes increasingly familiar to worldwide consumers. In order to determine the number of workers necessary to staff the new production facilities, Cellular Tech needs to conduct:
A. A market search
B. A utilization survey
C. A demand forecast
D. An inventory calculation
E. Recruitment schedules
All of the following are part of the human resource planning process EXCEPT:
A. Planning
B. Controlling
C. Programming
D. Evaluation
E. All of the above
The growing gap between the world’s supply and demand for labor is expected to result in:
A. Massive unemployment
B. Higher wages
C. Less mobility of the population
D. Very little movement in labor supply
E. None of the above
During the planning process, human resource managers do all of the following EXCEPT:
A. Demand forecast
B. Plan for internal labor supply
C. Outplacement
D. Job analysis
E. Plan for external labor supply
The skills, abilities and other characteristics needed to perform a job are detailed in a:
A. Job description
B. Job analysis
C. Job specification
D. Job characteristic
E. Job design
______ refers to the essential tasks, duties and responsibilities involved in performing a job.
A. Job specification
B. Job selection
C. Job description
D. Job appraisal
E. Job activities
Recruiting is:
A. Choosing an employee for a job
B. Developing a pool of applicants for a job
C. Selecting a group of applicants for employment
D. Determining the number of employees needed
E. Promoting from within
An internal mechanism for promoting open job positions is:
A. Job bidding
B. Job notification
C. Job posting
D. Job promotion
E. Job recruitment
A tool for determining what is done on a given job and what should be done on that job is:
A. Performance appraisal
B. Training
C. Job analysis
D. Orientation
E. Job specification
The development of a pool of applicants for jobs in the organization is:
A. Recruitment
B. Job descriptions
C. 360-degree appraisals
D. Job analysis
E. Job specifications
Perhaps the greatest advantage associated with external recruiting is:
A. Bringing in “new blood” to inspire innovation
B. That it is the most cost-effective method
C. That it limits the applicant pool, easing selection decisions
D. That it motivates current employees
E. All of the above
Which of these methods has been found to be the way most job positions get filled?
A. Want ads
B. Employee referrals
C. Private employment agencies
D. Unions
E. None of the above
Selection decisions concern:
A. Developing a pool of applicants
B. Which applicant to hire
C. Where to place new hires
D. Pay levels to achieve
E. Determining workers affected by a layoff
It is crucial to remember when selecting employees that methods and questions must be:
A. Generated internally
B. Utilized for every job
C. Utilized for every applicant
D. Universally acceptable
E. Related to performance on the job
Jules and Mimi both applied for a position with Brit Pharmaceuticals. After their interviews, they “compared notes” and found that they had been asked the exact same questions! Their interviews would be considered:
A. Unstructured
B. Invalid
C. Valid according to empirical tests but not content tests
D. Structure
E. A fluke
Which of the following explores what candidates have actually done in the past?
A. Situational interview
B. Contingency interview
C. Behavioral description interview
D. Unstructured interview
E. None of the above
Selection technique that involves asking each applicant the same questions and comparing their responses to a standardized set of answers is a(n):
A. Structured interview
B. Unstructured interview
C. Termination interview
D. Behavioral description interview
E. Job analysis
Personality tests are:
A. Illegal
B. Universally used
C. Hard to defend in court
D. Inadmissible in courtroom procedures
E. Highly valid
Hammond University requires all applicants to their Masters of Business Administration Program to take the G.M.A.T. exam. This exam measures the test taker’s aptitude for management by measuring things like verbal comprehension, mathematical calculations and other necessary management skills. This type of test is classified as a(n):
A. Personality test
B. Performance test
C. Integrity test
D. Cognitive ability test
E. None of the above
Your roommate applied for a summer job as a bookkeeper for the county. As part of his employment screening, he was asked to take an exam that had general mathematical aptitude questions on it. This type of selection test is referred to as a:
A. Performance test
B. Cognitive ability test
C. Validity test
D. Personality test
E. Certification test
Your company is in the process of hiring a spokesperson to appear in your television and print ads to promote your products. You are looking for someone with past experience as a spokesperson and have required that all applicants bring a portfolio of past advertising appearances for you to review. This requirement would be considered:
A. Discriminatory
B. A personality test
C. A performance test
D. An integrity test
E. To have low content validity
In a performance test, the test taker:
A. Performs some part of the job applied for
B. Takes a paper-and-pencil honesty test
C. Is measured for general aptitude
D. Is evaluated for drug use
E. Completes a pre- and post-test
A test that measures a range of intellectual abilities, including verbal comprehension (Type: Vocabulary, reading) and numerical aptitude (mathematical calculations) is the:
A. Personality test
B. Interest inventory test
C. Cognitive ability test
D. Mechanical dexterity test
E. Job analysis
_______ tests are used to assess a job candidate’s honesty.
A. Genetic
B. Personality
C. Performance
D. Integrity
E. Cognitive ability
Marcel applied for a part-time job at a shoe store in the mall. Following his interview he was asked to take a test on paper. One of the questions asked what he would do if he were to find a wallet full of money along a deserted highway. This type of test would be described as a (an):
A. Personality test
B. Validity test
C. Reliability test
D. Integrity test
E. Cognitive ability test
Validity refers to:
A. The qualifications needed for the job
B. The qualifications of a job candidate
C. Assesses the accuracy of the selection test
D. Whether a test is legally admissible in court
E. None of the above
Criterion-related validity refers to the degree that employment test activities are:
A. The same as job activities
B. Capable of reducing initial job stress
C. Redundant
D. Indicative of future promotion capabilities
E. Related to empirical validity
Outplacement is:
A. Recruiting from external sources
B. Hiring from external applicants
C. Illegal under the WARN Act of 1989
D. Dismissing people from the company
E. Helping displaced workers find other employment
The degree to which a selection test predicts or correlates with job performance is known as:
A. Integrity
B. Reliability
C. Validity
D. Content validity
E. Criterion-related validity
The process of helping people who have been dismissed from the company to regain employment elsewhere is known as:
A. Exit interview
B. Outplacement
C. Employment-at-will
D. Content validity
E. Downsizing
A large soda bottling company laid-off five percent of their workers. As part of the layoff, the workers were offered assistance with preparing a resume and given job search training. In addition, the workers’ benefits were extended for a one-month period beyond their last date of employment. These efforts are:
A. A non-taxable expense
B. Increasing the fears of non-affected employees
C. Referred to as outplacement services
D. All of the above
E. None of the above
The concept of employment-at-will:
A. Has yet to be utilized effectively in this country
B. Is considered the largest threat to organized labor since 1935
C. Appears to be eroding as courts find exceptions to the concept
D. Is a progressive discipline policy intended to protect specific minority groups
E. None of the above
The termination interview:
A. Is usually easier than a selection interview since both participants know each other
B. Is a stressful situation for both parties
C. Should be conducted away from company premises for security purposes
D. Must not be put in writing in order to avoid a lawsuit
E. Should only be conducted by top management
Which of the following does NOT follow the typical guideline for conducting a termination interview?
A. Give as much warning as possible for mass layoff
B. Complete termination session within 15 minutes
C. Terminate employees when they are on vacation or have just returned
D. Be sure the employee hears about his or her termination from his/her manager, not a colleague
E. Express appreciation for what the employee has contributed if appropriate
Which of the following acts prohibits discrimination based on race, sex, age, color, national origin and religion?
A. The Fair Labor Standards Act of 1938
B. The Immigration Act of 1990
C. The Equal Pay Act (1963)
D. The Americans with Disabilities Act (1990)
E. The Civil Rights Act of 1964
The Americans with Disabilities Act, passed in 1990, prohibits:
A. Lesser pay for individuals with disabilities
B. Hiring people with contagious diseases like AIDS
C. Employing people addicted to drugs or alcohol
D. Employment discrimination against people with disabilities
E. All of the above
Adverse impact refers to the disproportionately negative effect:
A. Of disciplining a troublesome employee
B. Of firing an employee without cause
C. Of an employment practice upon a protected group
D. On workers forced to work with chemical abusers
E. Of being forced to hire based on quotas
According to the Age Discrimination Act, discrimination is prohibited against people aged:
A. 60 and over
B. 55-70
C. 55 and over
D. 40-65
E. 40 and over
Teaching employees how to perform their present job is referred to as:
A. Training
B. Development
C. Performance appraisal
D. Performance counseling
E. Assessment
An analysis identifying the jobs, people and departments for which training is necessary is:
A. Development
B. Performance appraisal
C. Outplacement
D. Needs assessment
E. Job analysis
Training designed to introduce new employees to the company and familiarize them with policies, procedures, culture and the like is known as:
A. Diversity training
B. Team training
C. Orientation training
D. Performance training
E. Needs assessment
Development differs from training in that:
A. Development is more expensive
B. Development is less cost-effective
C. Training focuses on past performance
D. Development focuses on future capabilities
E. Training is reserved for upper level managers
Training should consist of four distinct stages or decisions. They are:
A. Selection, performance measurement, training method, goal-setting
B. Pre-test, training, post-test, evaluating
C. Needs assessment, designs, method determination, evaluation of results
D. Method selection, evaluation of results, forecasting, training
E. Goal setting, training method, performance measurement, training
_____ training is typically used to familiarize new employees with their new jobs, work units and the organization in general.
A. Orientation
B. Diversity
C. Team
D. Organization
E. Competitive
Companies invest in training to enhance individual performance and organizational productivity. Which of the following is NOT a typical training exercise?
A. Orientation training
B. Team training
C. Personality training
D. Diversity training
E. All of the above
Compared to other types of appraisals, _____ appraisal tends to be more objective and can focus on production data such as sales or profits.
A. Comparative
B. Behavioral
C. Trait
D. Results
E. Industry
Behavioral appraisals are superior to trait appraisals because behavioral appraisals:
A. Provide useful feedback
B. Are less expensive
C. Do not require a consultant
D. Focus on nonspecific behaviors
E. All of the above are TRUE of behavioral appraisals
Which of the following is NOT an appropriate guideline to follow when conducting performance appraisals?
A. Document the process carefully
B. Allow employees to appeal the results of the appraisal
C. Base performance standards on non-quantifiable standards
D. Communicate performance standards to employees
E. Use more than one rater (if at all possible)
Which of the following is NOT someone who would perform an appraisal?
A. Peers
B. External customers
C. Self
D. Stockholders
E. Managers
Reward systems include:
A. Incentives and bonuses
B. Raises and promotions
C. Vacations and benefits
D. Salary and/or wages
E. All of the above
Which of the following is an external factor that affects the wage mix?
A. Worth of job
B. Legal requirements
C. Employee’s relative worth
D. Compensation policy of organization
E. Employer’s ability to pay
Incentive plans are devised to:
A. Save employers money
B. Encourage and motivate employees to be more productive
C. Demotivate employees
D. Decrease employee performance
E. All of the above
The most common type of incentive plan is:
A. Profit-sharing plan
B. Scanlon plan
C. Gainsharing plan
D. Individual
E. Team
Which of the following is NOT one of the benefits required by law?
A. Workers’ compensation
B. Social security
C. Pension plans
D. Unemployment insurance
E. All of the above are required by law
Under cafeteria benefit plans:
A. Employees are provided a healthy and affordable meal
B. Employers are closely inspected for health and safety hazards
C. Employees select the benefits which they prefer
D. Employers can realize significant cost savings
E. All of the above apply to cafeteria benefit plans
The Equal Pay Act of 1963 prohibits unequal pay based on:
A. Gender
B. Age
C. Employment classification
D. Merit
E. Submission to sexual advances
The principle of equal pay for different jobs of equal worth is called:
A. Cafeteria pay
B. Equal benefits
C. Disparate impact
D. Comparable worth
E. Disparate worth
The Pregnancy Discrimination Act of 1978 states that pregnancy is a:
A. Woman’s choice
B. Private matter
C. Disability
D. Compensable factor
E. Criterion for continued employment
The legislation which requires employers to pursue workplace safety is:
A. Workplace Safety Act
B. Occupational Safety and Health Act of 1070
D. Civil Rights Act of 1963
E. Pregnancy Discrimination Act
The National Labor Relations Act of 1935:
A. Declared unions illegal
B. Established right-to-work states
C. Declared that management practices should be free of government interference
D. Declared unions legal
E. Protected employers’ free speech rights
Collective Bargaining establishes:
A. Wages, hours and working conditions
B. A grievance procedure
C. Order of layoffs
D. All of the above
E. None of the above
The use of a neutral third party to resolve a labor dispute is known as:
A. Right-to-work
B. Mediation
C. Conciliation
D. Arbitration
E. Right to work
Legislation that allows employees to work without having to join a union is known as:
A. Union shop
B. Right-to-work
C. Arbitration
D. Mediation
E. Conciliation

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