An organization's mission

An organization's mission



a. specifies how it will achieve its purpose.
b. affects its human resource practices.
c. is its basic reason for existence.
d. describes its unique characteristics and strengths.
e. all of these.




Answer: E

Companies can establish a competitive advantage by

Companies can establish a competitive advantage by




a. hiring good employees and effectively managing human resources.
b. always implementing a hierarchical management scheme.
c. adopting a universalistic financial strategy.
d. ignoring the external competitive environment.
e. none of these.



Answer: A

Which of the following is an accurate statement about labor unions outside the United States?

Which of the following is an accurate statement about labor unions outside the United States?




a. In foreign countries, few workers belong to labor unions.
b. Labor unions outside the United States are regulated by U.S. laws.
c. Foreign labor unions are more likely to be involved in political and social issues.
d. Outside the United States, labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them.
e. Foreign employers rarely negotiate with unions in their home country.




Answer: C

Repatriation occurs when a(n)

Repatriation occurs when a(n)




a. company sends a manager to a second foreign assignment.
b. expatriate manager comes home from a foreign assignment.
c. manager likes a foreign assignment so much that he or she remains in the foreign country.
d. manager is sent on a foreign assignment.
e. manager on a foreign assignment is compensated in the local currency.



Answer: B

Disney chose Andre Lacroix to be CEO of Euro Disney, following his success as CEO of Burger King International. Disney chose an experienced international manager who lived in France, rather than send an American manager overseas, in part to eliminate the risk of expatriate failure. Expatriate failure occurs when the

Disney chose Andre Lacroix to be CEO of Euro Disney, following his success as CEO of Burger King International. Disney chose an experienced international manager who lived in France, rather than send an American manager overseas, in part to eliminate the risk of expatriate failure. Expatriate failure occurs when the




a. expatriate needs extensive training before he or she is able to accept the assignment.
b. cost of sending the manager to the foreign assignment is greater than the benefit gained.
c. expatriate's coworkers report that he or she is not fitting in well.
d. business that is managed by the expatriate loses money.
e. expatriate returns early because of an inability to perform.



Answer: E

Wangkyo is an electrical engineer who designs power systems for factories. His employer is sending him on a foreign assignment for one month, to design a system for a new factory that is being built overseas. Which skills will be MOST important to Wangkyo in his foreign assignment?

Wangkyo is an electrical engineer who designs power systems for factories. His employer is sending him on a foreign assignment for one month, to design a system for a new factory that is being built overseas. Which skills will be MOST important to Wangkyo in his foreign assignment?



a. Technical skills
b. Language skills
c. Cultural skills
d. Financial skills
e. Leadership skills






Answer: A

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?



a. You must understand legal requirements for compensation in Singapore.
b. You must consider the Indian government's legal requirements for compensation.
c. Compensation for workers in Singapore will likely be the same as for workers in India.
d. Workers in Singapore will have different preferences for compensation and benefits than will Indian workers.
e. The cost of living is different in Singapore than it is in India, so compensation policy must account for that difference.




Answer: C

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?





a. Celebrity will need to provide the same training to all of its foreign workers.
b. Celebrity will need to provide the same training to all of its workers.
c. Celebrity will need to tailor training to best develop workers from various countries.
d. Celebrity will not need to train its workers.
e. Celebrity will only need to train workers who have contact with customers; other workers need no training.



Answer: C

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. He would score highly on the ____ dimension of Hofstede's model of culture.

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. He would score highly on the ____ dimension of Hofstede's model of culture.



a. power distance
b. individualism
c. masculinity
d. uncertainty avoidance
e. time orientation




Answer: B

No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?

No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?



a. Language
b. Business practices
c. Children's rights
d. Roles
e. Personal norms




Answer: B

Under a geocentric staffing model,

Under a geocentric staffing model,




a. host-country nationals are used heavily because they know the local markets.
b. the organization will have a skeleton human resource department at the host-country location, while the home-country human resource department retains all control.
c. the organization seeks to hire the best person available for a position regardless of where the individual comes from.
d. expatriate home-country nationals are hired to fill higher-level foreign positions.
e. the home-office perspective takes precedence over local issues.




Answer: C

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?



a. Population growth is slowing.
b. International trade is expanding.
c. The labor force is growing quickly.
d. Competition from foreign countries is increasing.
e. Countries are becoming increasingly interdependent.




Answer: C

Which of the following would be the LEAST likely to be involved when an organization evaluates its legal compliance with human resource management regulations?

Which of the following would be the LEAST likely to be involved when an organization evaluates its legal compliance with human resource management regulations?



a. The firm's legal staff
b. Managers
c. Line workers
d. Human resource staff
e. Outside legal auditors




Answer: C

Alpha-Beta Company closed a plant and laid off 100 workers, who each made $100 per day in pay and benefits. The closing was announced by company managers on April 1 and took place 30 days later. Under the provisions of the Worker Adjustment and Retraining Act of 1988 (WARN), Alpha-Beta must pay a penalty of

Alpha-Beta Company closed a plant and laid off 100 workers, who each made $100 per day in pay and benefits. The closing was announced by company managers on April 1 and took place 30 days later. Under the provisions of the Worker Adjustment and Retraining Act of 1988 (WARN), Alpha-Beta must pay a penalty of



a. $0.
b. $200.
c. $40,000.
d. $100,000.
e. $300,000.





Answer: E

The Privacy Act of 1974 ensures that

The Privacy Act of 1974 ensures that






a. federal employees can review their personnel files for accuracy.
b. workers who reveal company secrets to competitors face severe penalties.
c. employers cannot monitor personal emails received on work computers.
d. employees' behavior outside of work cannot be monitored or tested.
e. an employee's medical information cannot be shared without permission from the employee.



Answer: A

The Drug-Free Workplace Act of 1988 was passed to

The Drug-Free Workplace Act of 1988 was passed to



a. reduce the use of all drugs in the workplace.
b. reduce the use of illegal drugs in the workplace.
c. illuminate the use of all drugs during working hours.
d. enable companies to monitor the use of drugs outside of the workplace.
e. None of these




Answer: B

The Occupational Safety and Health Act

The Occupational Safety and Health Act




a. is enforced by the EEOC.
b. requires employers to provide a hazard-free work environment.
c. permits inspections by specially trained officers called inspectors general.
d. provides for criminal penalties for willful violations of the act.
e. was passed in the late 1980s.



Answer: D

Employees at Borders Bookstore in Ann Arbor, Michigan, recently held a strike to force their employer to negotiate a labor contract. Borders' employees were given the right to do this by the

Employees at Borders Bookstore in Ann Arbor, Michigan, recently held a strike to force their employer to negotiate a labor contract. Borders' employees were given the right to do this by the





a. Taft-Hartley Act.
b. National Labor Relations Act.
c. Landrum-Griffin Act.
d. Occupational Safety and Health Act.
e. Fair Labor Standards Act.



Answer: B

Titleist makes most of the golf clubs it sells to U.S. buyers in China, where the average hourly wage is the equivalent of less than $1 per hour. Under the provisions of the Fair Labor Standards Act, Titleist

Titleist makes most of the golf clubs it sells to U.S. buyers in China, where the average hourly wage is the equivalent of less than $1 per hour. Under the provisions of the Fair Labor Standards Act, Titleist




a. is in violation of the act, because $1 per hour is less than the mandated minimum wage.
b. is in violation of the act, because some of the workers are younger than 16 years of age.
c. is in violation of the act, because the Chinese workers are nonexempt.
d. is NOT in violation of the act, because the FLSA applies only to workers in the United States.
e. is NOT in violation of the act, because the Chinese workers work fewer than 40 hours per week.



Answer: D

The American with Disabilities Act requires companies to

The American with Disabilities Act requires companies to



a. hire everyone with a documented disability.
b. discriminate against those persons who have a disability.
c. hire a diversity consultant.
d. make reasonable accommodations for disabled individuals.
e. spend $100,000 per year on disability training.




Answer: D

The Family Medical Leave Act requires employers to provide which of the following for employees under certain emergency circumstances?

The Family Medical Leave Act requires employers to provide which of the following for employees under certain emergency circumstances?


a. Up to 4 weeks of paid leave
b. Up to 4 weeks of unpaid leave
c. Up to 12 weeks of paid leave
d. Up to 12 weeks of unpaid leave
e. Unlimited unpaid leave





Answer: D

Quid pro quo sexual harassment typically involves

Quid pro quo sexual harassment typically involves



a. unwelcome individual advances for a date.
b. sexual favors in return for something of value.
c. making jokes about a particular gender.
d. inappropriate pictures with sexual content displayed on the wall.
e. meeting colleagues for dinner after work hours.




Answer: B

A local office supply business routinely hires younger workers for stock staff over older applicants because much of the work requires heavy lifting and good mobility.

A local office supply business routinely hires younger workers for stock staff over older applicants because much of the work requires heavy lifting and good mobility.




a. The company needs to show that the job requirements are a business necessity.
b. Illegal discrimination automatically exists.
c. The company should not worry because no laws exist that protect older workers.
d. Let the younger workers do the hiring to protect the company legally.
e. None of these.



Answer: A

A bona fide occupational qualification

A bona fide occupational qualification




a. permits a restaurant to hire young, attractive servers because customers prefer them.
b. is a frequent exception to the law granted by federal courts.
c. permits an employer to discriminate against applicants on the basis of sex.
d. cannot be used by employers to discriminate on the basis of religion.
e. can be used only for affirmative action.


Answer: C

A-OK Company, an insurance company of 200 employees, provides life and automobile insurance to clients throughout the southwestern United States. The company's owner, Paul E. See, believes that happy employees are productive employees, so Mr. See provides employees services such as career planning and an on-site fitness center. Due to recent legislation making the insurance business more complex, A-OK is in the process of redesigning its training program for its sales agents. Mr. See also realizes that A-OK needs to examine its selection criteria for new agents joining the company and may need to increase salaries to attract needed talent. Mr. See is worried about this, because he knows that none of his managers has a human resource management degree. In fact, they were operating employees who were moved into the human resource function.

A-OK Company, an insurance company of 200 employees, provides life and automobile insurance to clients throughout the southwestern United States. The company's owner, Paul E. See, believes that happy employees are productive employees, so Mr. See provides employees services such as career planning and an on-site fitness center. Due to recent legislation making the insurance business more complex, A-OK is in the process of redesigning its training program for its sales agents. Mr. See also realizes that A-OK needs to examine its selection criteria for new agents joining the company and may need to increase salaries to attract needed talent. Mr. See is worried about this, because he knows that none of his managers has a human resource management degree. In fact, they were operating employees who were moved into the human resource function.


Refer to Scenario 1.1. Mr. See appears to be influenced by which era of management?

a. the Hawthorne era
b. Theory X/Y era
c. human relations era
d. scientific management era

Answer: E

Refer to Scenario 1.1. In recognizing that training, selection, and compensation procedures are all interrelated, Mr. See recognizes human resource management as a

a. system.
b. strategic resource.
c. center of expertise.
d. core decision process.


Answer: E


Refer to Scenario 1.1. The career planning and fitness programs provided to A-OK employees help fulfill which fundamental goal of human resource management?

a. Complying with legal obligations
b. Complying with social obligations
c. Enhancing productivity and quality
d. Promoting individual growth and development

Answer: E

Refer to Scenario 1.1. Who is likely to be responsible for the human resource management function in an organization of this size?

a. A full-time human resource manager
b. Mr. See
c. The sales manager
d. The operations manager

Answer: E

As the human resource field becomes more professional, more HR managers are acquiring the Human Resource Certification Institute (HRCI) credential. Which organization was instrumental in establishing that credential?

As the human resource field becomes more professional, more HR managers are acquiring the Human Resource Certification Institute (HRCI) credential. Which organization was instrumental in establishing that credential?




a. The U.S. Department of Labor
b. Certified Public Accountant (CPA)
c. The Society for Human Resource Management (SHRM)
d. The National Labor Relations Board
e. No single organization was instrumental. Colleges and universities established the HRCI.



Answer: C

Which of the following is NOT a specific requirement for being a successful human resource manager?

Which of the following is NOT a specific requirement for being a successful human resource manager?



a. An understanding of the legal environment
b. General management skills and abilities
c. Fundamental understanding of other functional areas
d. A degree in human resource management
e. Knowledge of business and corporate strategy



Answer: D

The goals of human resource management typically include all of the following activities EXCEPT

The goals of human resource management typically include all of the following activities EXCEPT



a. facilitating organizational competitiveness.
b. enhancing productivity and quality.
c. complying with legal and social obligations.
d. promoting individual growth and development.
e. overseeing financial reporting as part of the Sarbanes-Oxley Act.





Answer: E

Adam is a project manager in the human resources department of Intel, the U.S. semiconductor manufacturer. Adam says, "I work on issues ranging from dependent care to work/life benefits. I work with employees to better understand their needs and to help design programs for them." Which of the fundamental goals of HR management is Adam working on?

Adam is a project manager in the human resources department of Intel, the U.S. semiconductor manufacturer. Adam says, "I work on issues ranging from dependent care to work/life benefits. I work with employees to better understand their needs and to help design programs for them." Which of the fundamental goals of HR management is Adam working on?



a. Complying with legal and social obligations
b. Controlling costs
c. Facilitating organizational competitiveness
d. Enhancing productivity and quality
e. Promoting individual growth and development



Answer: E

Genevieve, a human resource staff member, has the task of investigating employee complaints about civil rights violations at work. Which of the goals of HR management is Genevieve working on?

Genevieve, a human resource staff member, has the task of investigating employee complaints about civil rights violations at work. Which of the goals of HR management is Genevieve working on?



a. Facilitating organizational competitiveness
b. Complying with legal and social obligations
c. Promoting individual growth and development
d. Enhancing productivity and quality
e. Recruiting sufficient workers to meet demand



Answer: B

Which of the following activities MOST directly relates to the basic HRM goal of facilitating organizational competitiveness?

Which of the following activities MOST directly relates to the basic HRM goal of facilitating organizational competitiveness?



a. Developing a strategic perspective to human resource management that satisfies goals and objectives
b. Investing in employee training that enhances productivity
c. Complying with government regulations
d. Designing "outreach" programs to attract minority job applicants
e. Developing formal mentoring programs to help women and minorities advance in the organization



Answer: A

Which of the following is NOT one of the four basic goals of the human resource management function as discussed in the text?

Which of the following is NOT one of the four basic goals of the human resource management function as discussed in the text?



a. Helping the global economy
b. Promoting individual growth and development
c. Complying with legal and social obligations
d. Enhancing productivity and quality
e. Facilitating organizational competitiveness



Answer: A

During the 1950s and 1960s, all of the following developed within the field of human resource management EXCEPT

During the 1950s and 1960s, all of the following developed within the field of human resource management EXCEPT



a. selection tests from World War II were adapted for use in private industry.
b. reward and incentive systems became more sophisticated.
c. government legislation expanded, adding more complexity to human resource management.
d. unions became more powerful and demanded more benefits for their members.
e. the human resource management function was recognized as being critically important to organizational success.




Answer: E

A small restaurant is concerned about increasing worker productivity and tries to better structure its jobs to maximize output and service delivery. The restaurant is likely using some of the principles discussed in

A small restaurant is concerned about increasing worker productivity and tries to better structure its jobs to maximize output and service delivery. The restaurant is likely using some of the principles discussed in



a. downsizing.
b. outsourcing.
c. Theory X.
d. scientific management.
e. Theory Y.


Answer: D

A large computer chip manufacturer has just hired another firm to perform its applicant background checks. Which of the following is likely part of this process?

A large computer chip manufacturer has just hired another firm to perform its applicant background checks. Which of the following is likely part of this process?



a. Theory Z
b. Theory X
c. Organizational culture
d. Strategic organization
e. Outsourcing



Answer: E

The human resource function in organizations today

The human resource function in organizations today



a. has grown into the role of strategic partner.
b. does little beyond ensure compliance with labor regulations.
c. is vital to the smooth operation of the business, but is not influenced by the organization's strategy.
d. dominates the other functional areas and dictates strategy to the organization.
e. is organized and managed very much as it has been for the last century.




Answer: A

To invest in employee knowledge development, all of the following HR practices would be appropriate except:

To invest in employee knowledge development, all of the following HR practices would be appropriate except:



a. selecting the best and brightest candidates available.
b. providing all employees with continuous training.
c. rewarding employees for the acquisition of new skills.
d. evaluating employees based on task performance.



Answer: D

A domestic firm, like Honda, General Electric, an Procter and Gamble, that builds on existing capabilities to penetrate overseas markets is an example of a(n) ______ corporation.

A domestic firm, like Honda, General Electric, an Procter and Gamble, that builds on existing capabilities to penetrate overseas markets is an example of a(n) ______ corporation.




a. transnational
b. international
c. multinational
d. global





Answer: B

In order for injunctions to be issued in labor disputes:

In order for injunctions to be issued in labor disputes:



a. a strike must continue for at least seven days
b. the union must show that lack of an injunction will cause greater harm to the employer than to the union
c. employers must show that lack of an injunction will cause greater harm to the employer than to the union
d. employers must show that lack of an injunction will cause greater harm to the union than to the employer




Answer: C

If a railroad union reaches an impasse during its negotiations, which federal agency is used to mediate?

If a railroad union reaches an impasse during its negotiations, which federal agency is used to mediate?



a. National Labor Relations Board under the NLRA
b. National Mediation Board under the Railway Labor Act
c. Federal Mediation and Conciliation Service under the Taft-Hartley Act
d. National Labor Disputes Board under the Taft-Hartley Act




Answer: B

Because employers cannot predict with certainty the future behavior of employees despite background checking, negligent hiring lawsuits are seen as:

Because employers cannot predict with certainty the future behavior of employees despite background checking, negligent hiring lawsuits are seen as:



a. a no-win situation for employers
b. a no-win situation for employees
c. a Catch-22 situation for employers
d. a necessary evil



Answer: C

The major source of OSHA standards is:

The major source of OSHA standards is:



a. Occupational Safety and Health Administration (OSHA)
b. National Institute for Occupational Safety and Health (NIOSH)
c. American Medical Association (AMA)
d. state and local governments



Answer: B

Flexible benefit plans:

Flexible benefit plans:



a. are offered to employees who then must purchase each benefit they select
b. are favored by employers because they reduce administration costs
c. result in wasted benefits because of the number of different types available to employees
d. allow employees to choose benefits suited to their needs




Answer: D

Flexible benefit plans:

Flexible benefit plans:




a. are offered to employees who then must purchase each benefit they select
b. are favored by employers because they reduce administration costs
c. result in wasted benefits because of the number of different types available to employees
d. allow employees to choose benefits suited to their needs




Answer: D

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity, which type of gainsharing program is being used?

When the determination of a bonus includes both production employees and nonproduction employees and this bonus is based on overall group productivity, which type of gainsharing program is being used?




a. profit sharing
b. the Rucker Plan
c. Improshare
d. the Scanlon Plan



Answer: C

The philosophy behind the Scanlon Plan is that:

The philosophy behind the Scanlon Plan is that:




a. employees should make suggestions to improve performance and be rewarded for their contributions.
b. organizational profits should improve through sales efforts.
c. managers and employees should establish quality and quantity goals for optimum organizational performance.
d. rewards are shared with employees based on improved profits.


Answer: A

Which of the following is NOT an advantage of an incentive pay program?

Which of the following is NOT an advantage of an incentive pay program?



a. Incentives focus employee efforts on specific performance targets.
b. Incentives are a way to increase equity and justice in an organization.
c. Incentive payouts are fixed costs linked to the achievement of results.
d. Incentives are a means to reward or attract top performers when salary budgets are low.




Answer: C

_____ includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs.

_____ includes employee recognition programs, rewarding jobs, organizational support, work environment, and flexible work hours to accommodate personal needs.



a. Financial compensation
b. Non-financial compensation
c. Direct compensation
d. Indirect compensation




Answer: B