1. Human resource management isa. supervising, monitoring, controlling, and disciplining employees i

1. Human resource management isa. supervising, monitoring, controlling, and disciplining employees in order to achieveorganizational goals.b. the designing of organizational systems to ensure that human talent is used effectively toaccomplish organizational goals.c. the use and coordination of human capital to ensure the profitability and survival of theorganization.d. the design of the organization and its systems in order to achieve the goals of theorganization.2. HR metrics must be linked toa. statistical analyses.b. industry outcomes.c. business performance.d. employee satisfaction.3. All of the following are types of organizational assets EXCEPTa. social.b. human.c. financial.d. intangible.4. Which of the following statements is TRUE?a. Because of the higher quality of Western European education, the return on human capitalfor 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 havepoor returns on investment in their human capital.c. U.S. firms spend nearly twice as much as European firms on employee salaries andbenefits, but U.S. firms experience higher levels of return on investment for their humancapital.d. Human capital is the collective value of capabilities, knowledge, skills, life experiencesand motivation of an organizational workforce. Being intangible, it is difficult to measurethe effect of human capital on shareholder value.5. In a university, the assets that allow all the other assets of the school to be used to offer educationalservices to its students are the university’sa. 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 researchcapabilities.6. The Chief Financial Officer of McGill Tubing wants to learn the contribution of McGill’s workforcetoward creating value for shareholders. An analysis which would provide this information is thecalculation ofa. the human capital revenue stream.b. marginal revenue generated per employee.c. return on human capital investment.d. profit per employee.7. Through ____ HR management provides the organization with a sufficient supply of qualifiedindividuals to fill the jobs in the organization.a. staffingb. affirmative actionc. talent managementd. performance management8. Tyrone Toys is intensely focused on reducing labor costs. During the executive committee’sdiscussion of closing its unionized plant in Ohio and opening a non-union plant in Mississippi, theexecutive vice president of HR suggests that the committee get legal advice in case Tyrone Toyswould be subject to lawsuits by the union. This interaction suggests thata. HR is not a strategic partner in this firm because the EVP of HR is reacting to anothercommittee member’s suggestion, not proactively making his own suggestion.b. HR is not a strategic partner in the firm because any suggestion about closing a plantshould 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 inon important strategic meetings.d. HR is a strategic partner in the firm because the EVP of HR a permanent member of theexecutive committee.9. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusionsinto his territory by HR managers. Henry feels that his relationships with his employees are strong andsupportive, 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 notintrude on day-to-day management functions.b. HR managers have the sole responsibility for the proper implementation of companypolicy regarding employees. Henry is subverting this process.c. Henry is probably committing major violations of company policy and wants to keep thissecret from HR management.d. Henry would be surprised to learn that every manager, including him, is an HR manager.10. When the human resources function creates a unique capability in a firm that creates high value anddifferentiates the organization from its competition, human resources is a/an ____ for the firm.a. tangible assetb. core competencyc. critical capabilityd. capital contributor11. As the top HR manager of a medium-sized hospitality business in New Orleans that is heavilydependent on U.S. and international tourism, you are deeply involved in rebuilding the company’sstrength in the Hurricane Katrina recovery. You need to monitor all of the following factors EXCEPTa. the employee and labor relations factor of whether unions are targeting hospitality workersfor 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.12. ____ identifies paths and activities for individual employees as they develop within the organization.a. Staffingb. HR developmentc. Performance managementd. Career planning13. Talent management includes which of the following activities?a. job-skill trainingb. wage and salary administrationc. diversity assessment and analysisd. environmental scanning14. Compensation and benefits managers in almost all organizations face a major and growing concernregarding the cost ofa. equalization of pay between men and women.b. incentive pay.c. benefits.d. outsourcing.15. Most new jobs in the U.S. economy are created bya. 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.16. The collective value of the capabilities, knowledge, skills, life experiences and motivation of anorganized workforce is calleda. the organization’s talent inventory.b. total human resources.c. human capital.d. the organization’s intellectual assets.17. Which of the following is NOT a major HR concern of small businesses?a. potential unionization effortsb. shortages of qualified workersc. compliance with government regulationsd. increasing benefits costs18. The reason that cooperation between operating managers and HR staff is necessary for HR efforts tosucceed is thata. HR professionals see the “coarse-grained picture†of organizational strategy whileoperating 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 managementand that impact operating managers.d. HR professionals must react swiftly to initiatives created by operating managers.19. Matt has recently joined his family’s wholesale landscape nursery business as vice president ofoperations. The firm employs 25 full time employees, plus about 20 seasonal employees. In the past,Matt’s father personally handled all HR issues. Matt plans to bring the company in line with typicalHR staffing levels. Matt willa. 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.20. Woodmere Production Company employees over 2,000 hourly workers. The HR department isdebating the introduction of web-based technology to handle employment applications, employeebenefit enrollments and other related functions. The move to this technology will most affect the HRdepartment’s ____ role.a. strategicb. operationalc. administratived. employee advocate21. Charlotte is describing her new HR position to a friend. She says that she handles most of the clericalduties involved in running the HR department, including such tasks as maintaining employee files andsubmitting governmental reports. Charlotte’s job would fall into the ____ HR role.a. strategicb. operational and employee advocatec. administratived. secretarial22. The ____ role of HR management has been declining in emphasis, whereas the ____ has/have beenincreasing in importance.a. strategic, operational and advocateb. advocate, operational and administrativec. operational, administrative and advocated. administrative, strategic23. Considering the trends in HR, current HR departments compared to departments of fifteen years agoa. would tend to have larger staffs.b. would have more clerks than professional staff.c. would be less likely to be strategic partners with top management.d. would be more tightly linked with vendors of HR specialty services.24. As the vice-president of HR for Woodmere Production, Inc., you are presenting a proposal toWoodmere’s top management for outsourcing many of your department’s administrative HR functionsto vendors. You argue that HR vendors have greater expertise than your in-house staff and thatoutsourcing will allow you to spend more time on the strategic aspects of HR. But, your key selling-point to top management will bea. the reduction in labor costs in the HR department.b. the prestige of retaining a world-class vendor.c. the ability to have closer contact with HR’s clients, the employeesd. improvement in morale of HR staff.25. Recruiting and selecting employees for current openings are typical ____ HR activities.a. employee advocacyb. operationalc. strategicd. administrative26. Which of the following HR activities is MOST likely to be outsourced successfully?a. 401k administrationb. risk managementc. labor negotiationsd. performance management27. Ensuring fair and equitable treatment for employees regardless of their personal background orcircumstances is associated with the ____ role of HR.a. strategicb. operationalc. employee advocated. administrative28. Which of the following would NOT be identified as a typical HR operational activity?a. government complianceb. safety programsc. compensationd. partnering with top executives29. The HR management role that is most influential in reducing the number of employee lawsuits againstthe company is the ____ role.a. strategicb. advocatec. operationald. administrative30. You are the recruiter for an ophthalmologic products company. Your firm needs a scientist with ahighly-specialized background. You have been unable to lure any scientist with the neededqualifications to your firm, even though you have offered a very high salary. After intensive searching,you have found a Peruvian scientist with impeccable credentials who is interested in moving back tothe U.S. Which problem are you most likely to encounter?a. The inability of the scientist to adapt to the U.S. work culture.b. Tight immigration quotas for high skilled workers.c. Your current scientific employees fearing that their work will be outsourced overseas.d. The difficulty in meeting the salary expectations of the Peruvian scientist.

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