CH-1-3 Creating Value Through Human Resources – Human Resource Management: Linking Strategy to Practice : Exam Guide

This Document Contains Chapters 1 to 3 Chapter 01: Creating Value Through Human Resources True/False 1. Human resource management is not concerned with organizational success; rather, it focuses on employee success. Answer: False 2. Measures of organizational and human resource success change as an organization grows. Answer: True 3. The four common stages in an organization life cycle are the entrepreneurial stage, the communal stage, the high performance stage and the elaboration stage. Answer: False 4. During the entrepreneurial stage of an organization’s life cycle, success depends upon renewing, adapting and expanding. Answer: False 5. The primary stakeholders of successful organizations are employees, customers and owners. Answer: True 6. Low turnover is a sign that employee needs are being met. Answer: True 7. Good human resource management practices translate into improved customer satisfaction. Answer: True 8. Organizations are more profitable if they do not expend resources to deal with societal or community concerns. Answer: False 9. Organizations can effectively reduce unethical corporate behavior through effective human resource management that creates open channels of communication. Answer: True 10. Because of competition issues, stakeholder concerns should not overlap. Answer: False 11. Research demonstrates that companies become more profitable by spending less on their employees. Answer: False 12. Strategic management is not a core human resource function; rather it is the responsibility of top-level management. Answer: False 13. Companies that use a consistent technology to manage people tend to be less effective and lag behind in profits. Answer: False 14. The Human Resource Department is primarily responsible for implementing effective practices for attracting and keeping talented workers. Answer: False 15. Good human resource practices are “common sense” and are all about one’s ability to hire the best person. Answer: False 16. In a survey of human resource leaders asking them specific questions about employment, staffing and compensation practices, on average, they knew the correct answers about 60 percent of the time. Answer: True 17. A strategic role of a human resource professional is to be “the cop” who enforces laws and organizational policies and procedures. Answer: False 18. Human resource roles involve people as well as processes. Answer: True 19. Effective human resource functional experts can give an organization a competitive advantage over its competitors. Answer: True 20. When human resource professionals provide expertise concerning recent case law that affects human resource practices, they are performing in the strategic partner role. Answer: False 21. The display of high ethics by human resource professionals promotes the human capital developer role. Answer: False 22. The human capital developer role focuses on maximizing the return on investment in training and development programs. Answer: False 23. Human resource competencies fit into three broad categories: knowing the business; carrying out human resource practices; and, interpreting the legal environment. Answer: False 24. Human resource professionals must demonstrate knowledge of the organization’s core business processes to gain the respect of other organization members. Answer: True 25. Successful human resource professionals should have competencies related to finance, competitor analysis, globalization, production capabilities and information systems. Answer: True 26. For human resource professionals, competency in human resource practices is especially important for carrying out the roles of functional expert, employee advocate and human resource capital developer. Answer: True 27. The easiest set of human resource competencies to implement are those related to measuring and affecting change management. Answer: False 28. Change management competencies deal primarily with turnover among employees and how a manager must be willing to change his/her management style based upon the influx of new employees. Answer: False 29. Organizations are interested in population trends to provide insight into the number and types of workers that are likely to be available in the future. Answer: True 30. According to labor force trends, in order to be effective, new entrants to the workforce will have to be able to work effectively with older workers. Answer: True 31. Employment opportunity trends focus on the number and characteristics of people who will be working or looking for work. Answer: False 32. Education and training trends provide information about the types and number of jobs expected in the future. Answer: False 33. To be an effective global organization, the same policies used in U.S. operations should be consistently applied to overseas operations. Answer: False 34. The stakeholder perspective focuses on people who affect and are affected by an organization. Answer: True Multiple Choice 35. Which of the statements below best encompasses the basic goal of human resource management? a) to recruit and hire the best qualified employees b) managing labor unions and union relations or union avoidance planning c) to effectively hire, manage and motivate employees d) to effectively train and develop employees Answer: c 36. The main goal of an organization during the communal stage is: a) to survive, adapt and hire the best qualified employees b) to expand and innovate c) to grow and move ahead of competitors d) to achieve stability and develop clear practices and procedures Answer: b 37. Human resource goals during the communal stage are: a) for employees to feel a sense of belonging and cohesion b) to develop effective compensation and benefit programs c) to develop the functional knowledge of human resource personnel d) to develop a stakeholder approach Answer: a 38. Which of the following is more likely to increase employee retention? a) higher levels of basic compensation b) a merit pay approach that rewards productivity c) pension and/or retirement plans d) effective human resource practices Answer: d 39. Employee turnover: a) is an expected cost of operations that cannot be changed b) can be reduced if an employer pays higher than average salaries c) is generally less in organizations with high levels of job satisfaction d) can be reduced if an employer develops effective communication and effective human resource practices Answer: d 40. Which of the following is NOT an outcome of effective human resource practices? a) a stable workforce with fewer turnovers b) improved productivity c) improved customer satisfaction d) decreased costs in human resource operations Answer: d 41. During the elaboration stage of an organization: a) change management is the most important skill that human resource personnel contribute b) functional knowledge is critical for all human resource personnel c) employee advocacy is the most important role of human resources d) employee compensation can be highly competitive Answer: a 42. Which group most frequently determines who leads and makes decisions in an organization? a) employees b) owners c) society as a collective group d) strategic planning group Answer: b 43. Which of the following is most likely to positively influence organizational profits? a) the cost of employee salaries b) a commission based compensation system c) motivating employees through effective performance management d) regular cost of living increases Answer: c 44. Which of the following is most likely to reduce instances of unethical corporate behavior? a) effective compensation and benefit practices b) high levels of occupational commitment c) when the organization is a good community citizen d) open channels of communication Answer: d 45. Effective human resource management: a) ensures the lowest costs for employee salaries b) involves hiring the right people in the right job and keeping them motivated c) ensures that employees will not join a union d) only serves the interests of employee stakeholders Answer: b 46. Companies identified by Fortune as “The 100 Best Companies to Work for in America”: a) tend to have stock returns as high as or higher than other companies b) spend more on benefits c) tend to have stock returns lower than other companies d) pay employees significantly higher salaries Answer: a 47. Which of the following is NOT a core human resource function? a) strategic management b) human resource development c) training d) occupational health and safety Answer: c 48. The value of human resource management: a) is intangible and cannot be measured b) is a component of effective strategic practice c) can be measured through reduced costs of goods and services d) can be increased when written assessments are utilized Answer: b 49. The function most concerned with employee learning related to effective current and future performance is: a) orientation and training b) human resource development c) concerned with labor force and education trends d) strategic management Answer: b 50. The employee and labor relations function is: a) most concerned with preparing and distributing employee pay checks b) concerned with the health and welfare of employees c) concerned with building and maintaining effective working conditions and relationships d) concerned with defining work rules and pay levels Answer: c 51. The functional area of occupational health and safety is: a) concerned with disaster preparedness for the organization and employees b) involved in managing employee insurance plans c) a part of stakeholder analysis d) most important for an organization in the entrepreneurial stage of its life cycle Answer: a 52. It is important for human resources: a) to help managers learn what are the functional areas of human resources b) to help managers understand that much of good human resources is “common sense” c) to train managers so they know when to contact their human resources personnel d) to help managers learn and improve methods for hiring and making pay decisions Answer: d 53. Human resource professionals tend to know more specifics about employment, staffing and compensation practices: a) when they are in a higher-level position b) when they have received certification as a human resource professional c) if they do not waste time reading or studying theory d) if they work in a smaller organization where they are responsible for day to day human resources operations Answer: b 54. Managers are more likely to believe and act based upon information from human resources: a) when they feel that the human resource staff has functional expertise b) when the human resource staff is certified human resource professionals c) when managers see evidence that human resources helps them and their unit d) when human resource staff advice confirms what a manager already knows Answer: c 55. One way to break down approaches by human resource specialists into three categories is: a) the functional expert, the caretaker and the human capital developer b) the cop, the caretaker, and the catalyst c) the cop, the functional expert, and the employee advocate d) the stakeholder, the functional expert and the employee advocate Answer: b 56. Which of the following is NOT a critical role for human resource professionals? a) providing technical expertise related to hiring and motivating employees b) ensuring that employee interests are considered in decision-making c) providing counseling as a part of an employee assistance program d) human capital processor Answer: d 57. Providing managers with guidance concerning employee discipline for misconduct would be an example of which critical role for human resource professionals. a) functional expert b) counselor c) employee advocate d) management advocate Answer: a 58. A program that provides employee relocation and trailing spouse employment assistance is an example of which human resource role: a) counselor b) employee advocate c) strategic partner d) functional expert Answer: b 59. Effective performance in the strategic partner role: a) requires human resource professionals to know about the organization’s products and services b) requires that human resource professionals are functional experts c) requires that human resource professionals are skilled in counseling d) requires that the human resource professionals be certified Answer: a 60. Effectively managing change: a) requires that human resource professionals be expert counselors b) requires that human resource professionals be certified c) requires expert level training and speaking skills d) requires human resource specialists to build trust and credibility Answer: d 61. The human capital developer role focuses on: a) adding value to the organization through new employee orientation b) adding value to the organization by helping employees advance their formal education c) adding value to the organization by helping employees build and maintain cutting-edge skills d) adding value by developing metrics to measure the return on investment for human capital Answer: c 62. The human resource competencies required by human resource professionals include all the broad categories below EXCEPT: a) managing change b) strategic planning c) knowledge of the business d) implementing human resource practices Answer: b 63. Human resource practice competencies are a core set of competencies that: a) relate to human capital development b) include knowledge skills and abilities that make a company profitable c) include knowledge, skills and abilities for recruiting, hiring, training and compensating employees d) are required for strategic human resource planning Answer: c 64. Change management competencies are particularly beneficial for which human resource roles: a) functional expert and employee advocate roles b) strategic partner and employee advocate roles c) employee advocate and human capital developer roles d) employee advocate and strategic partner roles Answer: c 65. A company in the elaboration life cycle stage would most highly value which of the following human resource practice competencies. a) finance and marketing b) employee advocacy c) competitor analysis d) change management Answer: d 66. A company in the formalization life cycle stage would likely most value which competencies among human resource professionals: a) business knowledge and competencies related to financial management b) change management competencies c) strategic management competencies d) functional expert competencies Answer: a 67. U.S. population trends are: a) the number of people who will be working or looking for work b) general movements over time in the number and characteristics of people living in the United States. c) the characteristics of people who will be working or looking for work d) specific information about individuals living in the United States Answer: b 68. Data concerning the number and gender of people currently and projected to be working in the health care industry is an example of: a) population trends b) labor force trends c) census trends d) affirmative action data Answer: b 69. Human resource activities that do NOT relate to motivating workers include: a) career development b) performance management c) training initiatives d) retention initiatives Answer: d Short Answer 70. The __________ ____________ ___________ approach to success suggests that measures of effectiveness change as an organization grows. Answer: organizational life cycle 71. The __________ consist of individuals or groups who can affect or who are affected by an organization. Answer: Stakeholders 72. The human resource function concerned with designing jobs and placing people in those jobs is __________ _____________. Answer: workforce planning 73. The human resource role of providing technical expertise related to hiring and motivating employees is the __________ _________ role. Answer: functional expert 74. The ___________ role for human resource professionals includes listening to employees and providing them with the resources they need to be effective. Answer: employee advocate 75. The knowledge, skill and ability needed to perform are ___________. Answer: competencies 76. ___________ help an organization grow and adapt to new situations. Answer: Change management competencies 77. General movements over time in the number and characteristics of people living in the United States are __________ _________. Answer: population trends Essays 78. List and describe each of the business life stages. For each stage listed, identify the most important human resource goals. Answer: A. entrepreneurial stage – when organization is first created, challenge is to develop, identify and obtain resources i. human resource goals – find and hire employees, develop plans for motivating and measuring performance, and paying people B. communal stage – period of expansion, innovation and cooperation, challenge is to develop and improve processes for effectively producing goods and services i. human resource goals – to hire and train good employees, to increase employee satisfaction and increase employee retention C. formalization stage – the organization becomes stable and works to more effectively create goods and services through improved practices and procedures for accomplishing work i. human resource goals – formalizing human resource practices that develop employee skills and motivation and an emphasis on effective management of people D. elaboration stage – organizations need to adapt and renew i. human resource goals – to be effective in change management and to guide the organization in adaptation and change efforts 79. What are stakeholders? List and discuss three of the most important stakeholder groups for a company. In your discussion, include how each stakeholder group affects organizational success. Answer: A. Stakeholders are individuals or groups of people who can affect or who are affected by an organization B. Important stakeholder groups: i. Employees – they influence the organization’s ability to achieve its objectives and they are influenced by the organization’s success ii. Customers – whether a company meets the needs of customers will influence company success and what the organization produces can positively and negatively influence customers iii. Owners – includes stockholders. Owners influence an organization by deciding who leads and makes decisions; their chief concern is the organization’s profits. iv. Society – the broader community in which an organization operates. Organizations affect society through their environmental practices, as well as their support of community charities and other such activities and society can influence organizations through political and social actions. Chapter 02: Making Human Resource Management Strategic True/False 1. A clear strategy for being better than competitors and a highly motivated workforce are major keys for long term profitability. Answer: True 2. If a company is pursuing a low cost strategy, it is important that employees only perform duties specified in their job description. Answer: False 3. All information is relevant for strategic planning. Answer: False 4. Opportunities are generally easier to control than threats. Answer: True 5. The external environment for a company consists of physical and social factors outside the organization EXCEPT government legislation at all levels. Answer: False 6. Interest rates are a feature of the external environment that is relevant for an organization’s strategic planning. Answer: True 7. The number of regional college students who complete their degree programs and the specific majors of these students would not be relevant information for company strategic planning. Answer: False 8. Information about threats and opportunities should be gathered early in the strategic planning process. Answer: True 9. Internet career networks are a major threat for human resource management because they jeopardize the jobs of human resource personnel. Answer: False 10. During strategic planning, organizations should focus only on their strengths so they can capitalize on those strengths. Answer: False 11. An organization can use an effective strategy to compensate for weak human resources. Answer: False 12. Regardless of a company’s strategy, high quality human resources are a true competitive advantage. Answer: False 13. Human resource practices can only represent strengths for an organization. Answer: False 14. Groups of people who meet together often to discuss information can develop an effective sense of “gut level” decision making about proper strategic direction. Answer: True 15. Avoidance of conflict is integral for effective decision-making. Answer: False 16. Groups making decisions should set a flexible timeline to help move decision making forward. Answer: True 17. Internal politics can have considerable influence over group decision making processes and outcomes. Answer: True 18. Strategy formulation is best accomplished by a group of decision makers. Answer: True 19. All companies that sell products at a low cost have a cost leadership strategy. Answer: False 20. There is usually only one company that can be the lowest-cost provider in an industry. Answer: True 21. A lowest-cost provider is likely to be a small start-up business because the owner will provide labor. Answer: False 22. There is usually only one company in an industry that can employ a differentiation strategy. Answer: False 23. An organization pursuing a differentiation strategy can mostly ignore expenses and costs. Answer: False 24. It is easy for an organization to pursue both cost leadership and differentiation strategies simultaneously. Answer: False 25. Human resources are relatively easy for an organization to duplicate; therefore, it cannot be a source of competitive advantage. Answer: False 26. The contingency approach to human resource management practices and the universalistic approach to human resource management are complementary and can be used together to develop an overall human resource strategy. Answer: True 27. The human resource bundle that is based upon a commitment strategy includes empowerment of workers, careful screening of recruits, high levels of teamwork, and extensive sharing of information. Answer: True 28. Studies comparing the control and commitment strategies almost always conclude that in most cases, the commitment strategy is best. Answer: True 29. The commitment strategy can be demonstrated through a human resource bundle that encourages high involvement. Answer: True 30. In organizations WITHOUT high-involvement work practices, high rates of quitting can be associated with higher productivity. Answer: True 31. An organization with an external labor orientation will hire entry level workers, train and develop these employees and hope they remain with the company for a long period of time. Answer: False 32. An organization with an internal labor orientation tends to save money in their selection processes because they promote from within. Answer: True 33. An organization with a differentiation competitive strategy is likely to excel when they follow a Committed Expert HR strategy. Answer: True 34. Many organizations do have human resource strategies that fit their competitive strategies. Answer: True 35. There is some evidence that organizations naturally tend to adopt the human resource practices that match their competitive strategies. Answer: True Multiple Choice 36. From a human resource management perspective the two types of strategy are: a) competitive business strategy and human resource strategy b) long term and short term strategy c) short and long term human resource strategy d) human resource strategy and long term strategy Answer: a 37. Which type of strategy focuses on how to serve the needs of company customers? a) human resource strategy b) short term strategy c) long term strategy d) competitive business strategy Answer: d 38. Which type of strategy focuses on choices and actions concerning the management of people? a) competitive business strategy b) human resource strategy c) short term human resource strategy d) short term strategy Answer: b 39. What steps are involved in the strategy formulation process? a) customer and employee surveys, decision making, and evaluation b) environmental analysis, internal analysis, problem solving c) gathering information, analysis and decision making, and implementation d) external analysis, internal analysis, identification of strengths and weaknesses Answer: c 40. Information gathering for strategic planning commonly involves: a) assessment of the external environment and assessment of internal capabilities b) assessment of customer and employee attitudes c) assessment of internal environment and assessment of external strengths and weaknesses d) assessment of employee and customer attitudes and assessment of external environment Answer: a 41. The physical and social factors outside an organization’s boundaries that are relevant for strategic planning: a) exclude government and political actions b) are strengths and weaknesses c) are assessed through customer and employee satisfaction surveys d) are opportunities and threats Answer: d 42. Elements of the environment relevant for analyzing the external environment include all of the following EXCEPT: a) demographic and cultural trends b) economic and political conditions c) organizational culture and employee satisfaction d) technological developments Answer: c 43. Strengths and weaknesses a) should be kept confidential b) are areas of high and low capability c) relate to the external environment d) are an outcome of strategic planning Answer: b 44. Human resource management is critical for strategic planning: a) because high-quality employees are relatively rare b) mainly when an organization requires technological skills c) because of the high cost of compensation d) mainly when an organization requires general skills Answer: a 45. To be true strengths, human resource practices must: a) also provide something that is difficult to imitate or substitute b) be part of a differentiation business strategy c) be part of a low cost business d) include effective employee and labor relations Answer: a 46. Research suggests these four steps can be used to make more effective decisions: a) set specific deadlines, gather information, minimize conflict, vote on all items b) ensure top level management is involved, train decision makers, set specific deadlines, minimize conflict c) set specific deadlines, ensure top level management support, minimize conflict, diffuse politics d) build collective intuition, stimulate conflict, maintain an appropriate pace, diffuse politics Answer: d 47. Which of the following is true about the time spent on decision making? a) setting specific deadlines is essential b) decision makers should avoid setting any deadlines so there is no pressure c) flexible schedules can help move decision making forward d) flexible schedules can force a group to make a premature decision Answer: c 48. Business-level strategy: a) is not related to human resources strategy b) deals with how the organization will compete with companies that provide similar goods and services c) includes decisions related to business type d) should be completed after human resources strategy is determined Answer: b 49. Strategic human resource management strategy: a) is a component of corporate-level strategy b) is intuitive c) should be determined by the human resource staff d) adds value within the business units of an organization Answer: d 50. Which of the following is NOT true of organizations with a cost leadership strategy? a) the organization seeks to become low-cost producers b) the organization seeks to produce superior good and services c) the organization seeks to become highly efficient d) controlling expenses is very important Answer: b 51. Apple computer produces the iPhone, a revolutionary mobile phone that can make a call, access the internet, or play music with the tap of the screen. From what you know about Apple computer: a) Apple has a low cost leadership strategy b) Apple is very conscious of expenses c) Apple computer has a differentiation strategy d) Apple probably employs a large number of temporary employees Answer: c 52. An organization with a cost-leadership strategy: a) is likely one of many producers in the market b) is likely one of many producers in the industry with a successful cost-leadership strategy c) is likely to produce a highly specialized product d) is likely to have excellent customer service Answer: a 53. Which of the following is NOT true of organizations with a differentiation strategy? a) they usually produce basic and standardized products b) there is an emphasis on innovation c) the company is likely to focus on marketing d) the company markets its products as providing better value Answer: a 54. An organization employing a differentiation strategy is likely to differentiate its goods or services in all of the following ways EXCEPT: a) a unique product b) low cost c) marketing the product as distinctive and a good value d) excellent customer service Answer: b 55. Organizations pursuing a differentiation strategy pursue all of the following strategies EXCEPT: a) adapting rapidly to changing customer preferences b) innovation of products and services c) taking risks and continually prospecting for new ways of doing things d) increasing distribution channels Answer: d 56. Human resource practices can build capability: a) through the reinforcement of appropriate roles b) through employee differentiation c) through equal pay practices d) through group responses to inappropriate behaviors Answer: a 57. The universalistic approach to human resource practices: a) seeks to identify human resource practices that benefit all organizations b) claims that appropriate human resource practices depend upon the organization and its strategy c) works best with a cost leadership strategy d) is an individual company approach to human resource management Answer: a 58. The view that human resource practices differ based upon an organization’s competitive business strategy: a) is the universalistic approach b) is consistent with the contingency approach c) is the differentiation approach d) is the only way human resource practices can be considered Answer: b 59. Which of the following is NOT true about human resource bundles? a) human resource bundles are human resource practices that are internally consistent and reinforce each other b) there are human resource practices that bundle into a “control strategy” c) there are human resource practices that bundle into a “commitment strategy” d) human resource practices that are bundled are easy for competitors to simulate Answer: d 60. Which of the following is NOT consistent with a human resource bundle supporting a control strategy? a) strict work rules b) limited formal training c) employee career development d) narrow job responsibilities Answer: c 61. Which statement is NOT true about the commitment strategy? a) it encourages high involvement b) only companies with a differentiation strategy can benefit from this strategy c) it is one that almost all companies can benefit from d) under this strategy, a high quit rate reduces productivity Answer: b 62. Which of the following is characteristic of organizations with an external labor orientation? a) the organization seeks to buy talent b) a primary goal is to identify employees who will have long careers with the organization c) people are hired early in their careers d) employees identify closely with the organization Answer: a 63. Which of the following is NOT true of a human resource strategy that emphasizes hiring and retaining loyal employees who do whatever the company asks of them? a) it is referred to as the Loyal Soldier HR strategy b) employees are hired early in their careers and developed with extensive training c) emphasis is on hiring employees who do not demand high wages d) these types of organizations are frequently unionized Answer: c 64. Which is NOT true of the Bargain Labor HR strategy? a) it combines an external orientation with a cost leadership strategy b) compensation includes long-term incentives and benefits c) work is designed so that managers can tightly control employee efforts d) there are no clear paths for promotion and advancement Answer: b 65. An organization recruits and hires employees based upon their potential organizational fit and potential for developing expertise in a particular area. Which HR strategy is the organization most likely employing? a) Bargain Labor HR strategy b) Loyal Soldier HR strategy c) Free Agent HR strategy d) Committed Expert HR strategy Answer: d 66. Which of the following is NOT true of the Free Agent HR Strategy? a) emphasis is on hiring employees who have critical skills for a short term b) employees have substantial freedom to decide how to accomplish work c) employees are hired because of their potential to develop expertise in a particular area d) employer provided training is rare Answer: c 67. Organizations with a cost leadership competitive strategy are expected to do best with which HR strategy? a) Committed Expert or Free Agent HR strategy b) Free Agent or Loyal Soldier HR strategy c) Bargain Laborer or Loyal Soldier HR strategy d) Loyal Soldier or Committed Expert HR strategy Answer: c 68. Organizations with matching competitive and human resource strategies: a) are not commonly found among U.S. companies b) perform only marginally better than those without matching strategies c) have been found to have higher morale among employees d) typically have an external labor orientation Answer: c 69. An organization with an internal labor orientation seeking cost reduction can benefit from: a) the Free Agent HR strategy b) the Loyal Soldier HR strategy c) the Committed Expert HR strategy d) the Bargain Laborer Answer: b 70. An organization with a cost leadership competitive strategy: a) is likely to excel when they follow a Loyal Solder HR strategy b) is likely to excel when they follow a Free Agent HR Strategy c) is likely to excel when they follow a Committed Expert HR strategy d) is likely to excel when they follow a Bargain Laborer HR strategy Answer: a Short Answer 71. ___________ ____________ develops in a group of people who meet together often to discuss information. Answer: Collective intuition 72. ___________ strategy is made up of the decisions related to business type. Answer: Corporate 73. An organization that seeks to become the lowest cost producer of goods and services is pursuing a ____________ ___________ strategy. Answer: cost leadership 74. An organization that seeks to produce goods and services that are superior to those provided by competitors is pursuing a ___________ strategy. Answer: differentiation 75. Customers are willing to pay a higher price because they perceive greater _________. Answer: value 76. The ____________ ___________ to human resource strategy seeks to align people management practices with competitive business strategies. Answer: contingency approach 77. The _____________ _____________ HR strategy combines emphasis on long-term employees with a focus on reducing costs. Answer: Loyal Soldier Essays 78. Describe the two business level strategies employed by organizations and discuss which human resource strategies are effective for each. Answer: Cost leadership strategy – the organization seeks to become the lowest-cost producer of goods and services, loyal soldier and bargain labor human resource strategies Differentiation strategy – the organizations seeks to produce goods and services that are somehow superior to those produced by competitors, free agent and committed expert human resource strategies 79. List and discuss at least four (4) different examples of commitment strategy practices. Answer: Job tasks – broad job responsibilities, meaningful tasks, rotation across a variety of tasks Empowerment – inclusive decision making, high levels of responsibility, building employee confidence Teams – organizing around work teams, self-management within teams Communication – two-way communication, quality-of-life surveys, encouraging suggestions Training – extensive new employee training, formal training for all employees, multiple job skill development Compensation – pay for performance, high levels of pay, and ownership forms of pay such as stock Employee Selection – highly selective recruiting, identification of skilled workers, long-term relationships with employees Chapter 03: Ensuring Equal Employment Opportunity and Safety True/False 1. Complying with human resource related laws can save organizations money. Answer: True 2. A class-action suit cannot be filed against an employer if it deals with equal pay or gender discrimination. Answer: False 3. When managers have an understanding of employment laws, the likelihood of an employee filing a lawsuit is reduced for the company. Answer: True 4. The federal government cannot constrain state laws based upon the constitution; therefore, if a state law conflicts with a federal law, the state law rules. Answer: False 5. Title VII provides protection only to women and not men. Answer: False 6. Title VII requires equal opportunity for people regardless of their race, color, national origin, gender or religion. Answer: True 7. A job has a need for the incumbent to speak fluent Spanish. The employer can require that employees hired for this position be Hispanic as a bonafide occupational qualification (BFOQ). Answer: False 8. Treating all applicants consistently during the hiring process is one of the best ways for an employer to avoid a charge of disparate treatment. Answer: True 9. Disparate treatment is more subtle than adverse impact. Answer: False 10. If a selection criteria or process screens out more people from some groups than others, it is automatically adverse impact. Answer: False 11. One of the best defenses against a claim of adverse impact is validity of selection assessments. Answer: True 12. In a case of adverse impact, the burden of proof shifts from the complainant to the organization. Answer: True 13. When determining minimum qualifications for a position it is best for a company to follow a specific process and include input from incumbents and supervisors. Answer: True 14. Under Title VII, harassment is illegal if it is directed to a member of any of the five protected classes specified in Title VII. Answer: True 15. Quid pro quo sexual harassment is fairly straight forward; it’s when sexual behavior in the work environment creates an intimidating or offensive work environment. Answer: False 16. It is acceptable for a manager to make employment consequences a function of sexual favors as long as the employee agrees. Answer: False 17. An employer can be responsible for the inappropriate sexual harassment of managers and employees. Answer: True 18. Inappropriate e-mail messages, sexually derogatory postings, or the viewing of pornographic material can create a hostile work environment. Answer: True 19. Employees have a reasonable expectation of privacy in the workplace; therefore, an employer does not have access to e-mail or other materials produced by the employee at work. Answer: False 20. In order for a claim of harassment to be valid, a victim need only demonstrate that actions had a negative impact on their psychological well-being as opposed to them being incapable of performing their job. Answer: True 21. Juries appear to be more willing than judges to award punitive damages. Answer: True 22. U.S. employment laws apply to U.S. companies regardless of their location. Answer: False 23. Under the Age Discrimination in Employment Act (ADEA), people are compared to each other, so discrimination can occur when an employee age 45 receives better treatment than an employee age 55. Answer: True 24. Under the Age Discrimination in Employment Act (ADEA), an older employee can claim a case of hostile environment if negative or derogatory comments related to age create an abusive workplace. Answer: True 25. Someone with poor vision that can be corrected with glasses is still considered disabled. Answer: False 26. An employee who formerly used illegal drugs who is involved in an outpatient treatment program can be considered as having a disability. Answer: True 27. An employer is not required to provide an accommodation if the accommodation creates an undue hardship, which means the accommodation costs too much relative to resources available to the company or the accommodation requires significant changes in how work is done. Answer: True 28. The Equal Pay Act of 1963 applies to members of all protected classes. Answer: False 29. Equal pay is not an issue under the Equal Pay Act of 1963 if pay differences are a result of seniority, merit, or performance. Answer: True 30. If an employee is qualified for time off under the Family Medical Leave Act (FMLA), an employer must grant the employee up to 12 weeks of paid leave. Answer: False 31. Only women may be granted leave under the Family Medical Leave Act (FLMA). Answer: False 32. While an employee is on appropriate Family Medical Leave, an employer must pay for all health insurance costs, even if employees normally pay a premium to be covered under the group plan. Answer: False 33. Under Title VII, affirmative action is required of all employers with more than 15 employees. Answer: False 34. Affirmative action requires a utilization analysis and an employer must hire the number of minorities that are found to be lacking based upon the utilization study. Answer: False 35. In order to comply with affirmative action requirements and case law, a company planning to lay off employees should lay off all non-minority employees before letting any minority employees go. Answer: False Multiple Choice 36. Which of the following actions is NOT one an employer would take to prevent discrimination complaints? a) developing and enforcing clear policies against discrimination b) mandating that more minority employees be hired and promoted c) improving the image of the organization as a desirable place to work d) adopting programs that further the causes of groups that have been historically disadvantaged Answer: b 37. In most cases, people can only claim discrimination based upon: a) race and gender b) race, gender, disability and religion c) supervisory behavior d) immutable characteristics Answer: d 38. Title VII of the Civil Rights Act of 1964 provides protection for individuals based upon the following traits: a) sex, race, color, religion, and national origin b) sex, race age, religion, and national origin c) sex, race, age, disability, religion, and nation origin d) sex, race, age, disability, religion, and national origin Answer: a 39. Currently, employers with fewer than this number of employees are NOT covered by Title VII: a) less than 50 employees b) less than 25 employees c) less than 15 employees d) less than 10 employees Answer: c 40. This is the federal agency in charge of administrative and judicial enforcement of federal civil rights laws: a) Department of Labor b) Bureau of Equal Opportunity c) The Equal Employment Opportunity Commission d) Bureau of Labor Statistics Answer: c 41. This occurs when all people are NOT given the same opportunity for employment and promotion: a) equal employment opportunity b) unequal employment opportunity c) ineffective management d) discrimination Answer: d 42. Title VII offers protection from three distinct types of discrimination: a) disparate treatment, adverse impact and affirmative action b) disparate treatment, adverse impact and harassment c) adverse impact, harassment and age discrimination d) disparate treatment, harassment and pay discrimination Answer: b 43. An employer asks all applicants, “As a part of this job, are you able to travel with an overnight stay at least once a week?” a) this is an example of disparate treatment because it is a job requirement b) this is an example of adverse impact because it’s a job requirement c) this question is not discriminatory as overnight travel is a performance requirement d) this is an example of discrimination Answer: c 44. Disparate treatment occurs: a) only when there is no adverse impact b) when an employer treats certain groups of applicants differently c) as a part of sexual harassment d) when using a selection criteria that is not valid Answer: b 45. A private religious school requires that applicants teaching religion must be of a particular religion. This is an example of: a) a bonafide occupational qualification (BFOQ) b) adverse impact c) disparate treatment d) equal employment opportunity Answer: a 46. Adverse impact: a) is not necessarily discrimination b) is the same as disparate treatment c) is more obvious than other forms of discrimination d) occurs when a company’s policies treat applicants the same, but result in different employment opportunities for different groups Answer: d 47. A common defense against adverse impact is: a) when there is no difference in outcomes for different groups of personnel b) when reliability can be demonstrated c) when the burden of proof is shifted d) when the assessment measures used accurately identify the people most likely to succeed on the job Answer: d 48. When an applicant claims adverse impact: a) the applicant has the burden to prove the employer is discriminating b) the burden of proof is on the employer to demonstrate that the hiring process identified people who are best able to do the job c) the burden of proof is on the employer to demonstrate the reliability of the selection processes d) it means that different types of applicants were not treated consistently Answer: c 49. Outcomes when an employer uses ineffective selection methods could be all of the following EXCEPT: a) there’s not a problem as long as interviews are used b) the company may be subject to discrimination complaints c) the company is potentially missing out on hiring employees who would do a good job d) the company may be discriminating against applicants and risks legal action Answer: a 50. Harassment occurs: a) when an employee is persistently annoyed or alarmed by the improper words or actions of supervisory personnel b) when an employee is persistently annoyed or alarmed by the improper words or actions of peer personnel c) when an employee is persistently annoyed or alarmed by the improper words or actions of other people in the workplace d) after a claim of disparate treatment or adverse impact Answer: c 51. Which of the following is NOT one of the conditions where sexual harassment could be an issue? a) submission to sexual harassment is made either implicitly or explicitly a condition of employment b) two employees who formerly were in a relationship are not retained during a reduction of employees c) submission or rejection of sexual behavior is used as the basis for employment decisions d) behavior of a sexual nature has the effect of unreasonably interfering with an individual’s work performance or creates a hostile or offensive environment Answer: b 52. A female supervisor requires that in order for a male employee to be promoted, he must take her out on dates for a month. This action: a) is not a problem, because the male employee could always say, “No” b) is an example of quid pro quo sexual harassment c) is not a problem because males cannot be victims of sexual harassment d) is an example of “hostile environment” sexual harassment Answer: b 53. Which of the following is true concerning hostile environment sexual harassment? a) a claim can only be filed against a supervisor b) a claim can only be filed against a peer employee c) a claim can only be filed against the organization d) a claim can be filed against the organization, peer employees and/or supervisors Answer: d 54. Examples of actions an organization can take to protect itself from sexual harassment include all of the following EXCEPT: a) establish a policy that any supervisor or employee accused of sexual harassment will be terminated from employment b) define harassment and affirmatively express company disapproval of harassing actions c) inform employees of their legal rights, including how to make an EEOC claim d) establish a grievance procedure that is sensitive to the rights of all parties Answer: a 55. Which of the following statements concerning discrimination is true? a) people are more likely to discriminate when their supervisors are uninvolved b) people are more likely to discriminate when they are located in a separate geographical location from their supervisors c) people are more likely to discriminate when there are severe consequences d) people are less likely to discriminate when their supervisors establish a clear preference that everyone be treated equally Answer: d 56. Which of the following is NOT true about race norming? a) it involves only comparing scores among like gender or race groups b) the Civil Rights Act of 1991 addressed race norming c) it is an effective process used in the U.S. for ensuring equal opportunities for minorities d) the effect can be to make some people have higher scores if scores in their group are lower than average Answer: c 57. Punitive damages: a) are designed to punish a company b) usually result in lower payment by a company in a discrimination case c) cannot be awarded if a complainant is awarded back pay d) cannot be awarded if a complainant is awarded lost earnings Answer: a 58. The Civil Rights Act of 1991: a) added discrimination for religious reasons for the first time b) allowed for jury trials for employment discrimination cases for the first time c) added discrimination based upon disability for the first time d) allowed claims based upon age for the first time Answer: b 59. Which of the following is true concerning the application of U.S. employment laws? a) people who enter the U.S. illegally are covered by these laws b) most employees of non-U.S. employers located in the U.S. are NOT covered by these laws c) even if an employer is not a U.S. company, discrimination laws generally apply to jobs located in the U.S. d) U.S. citizens are covered by U.S. employment laws outside the U.S. regardless of whether their employer is from the U.S. or not Answer: c 60. When would employees NOT usually be covered by U.S. employment laws? a) U.S. citizens working for a U.S. company overseas b) foreign workers working for a U.S. company overseas c) U.S. citizens working for a foreign company located in the U.S. d) a foreign worker in the U.S. legally with permission to work Answer: b 61. Which of the following is NOT true about the Age Discrimination Act (ADEA)? a) it became effective in 1967 b) ADEA provides protection similar to Title VII to older workers c) some occupations, such as law enforcement have been allowed to require employees to retire at a particular age d) it applies to everyone older than 45 Answer: d 62. Which of the following is NOT true of the Americans with Disabilities Act (ADA)? a) under the ADA, if a disabled person is not able to perform all the duties of a job he/she is not qualified for the job b) ADA guidelines only apply if the disabled person has the qualifications essential for performing a job c) under ADA a disabled person may not be required to perform functions that are not essential to the job d) the ADA protects individuals with physical disabilities or mental disabilities Answer: a 63. The Americans with Disabilities Act (ADA): a) only covers physical disabilities b) only covers mental disabilities c) covers physical and mental disabilities that impair a major life activity d) covers all physical and mental disabilities Answer: c 64. Reasonable accommodation: a) requires an employer to hire a person with a disability who can perform all essential duties of a job b) is a change in the work environment or in the way work is done that allows an individual with a disability to have equal employment opportunities c) requires an employer to make changes in the way work is done based upon how an employee prefers to work d) must be made to accommodate an employee with a disability if the cost is less than $2,000 Answer: b 65. Which of the following is NOT a concern for employer compliance with the ADA? a) an employer requires that an applicant undergo a medical exam after he/she has received a conditional offer of employment b) an employer requires all applicants to undergo a medical exam before being interviewed c) asking candidates during the interview if they have a disability and if so, how they will perform the job d) asking candidates to indicate on an application what, if any, disabilities they have Answer: a 66. Which of the following would NOT be appropriate for leave under the Family Medical Leave Act (FMLA)? a) an employee is not able to work because of a serious health condition b) an employee needs to care for a seriously ill parent c) an employee needs to care for a child just adopted by the employee d) an employee needs to care for a seriously ill sibling Answer: d 67. Which of the following is NOT true of affirmative action? a) there is no law requiring that companies have an affirmative action plan b) affirmative action goes beyond equal employment opportunity c) affirmative action sets up a system of quotas so a company is obligated to hire from certain minority groups d) in most cases, a company cannot be sued for failure to follow an affirmative action plan Answer: c 68. The Occupational Safety and Health Act (OSHA): a) was passed in 1963 b) allows OSHA Officers to enter and inspect factories, plants and other worksites and issue citations when a company is not in compliance c) requires employers to have workers compensation coverage for all employees d) requires that all employers send to OSHA formal emergency plans to deal with disasters in the workplace Answer: b 69. The medical and first aid standard of the Occupational Safety and Health Act: a) is administered by the states b) requires employers to ensure medical personnel and first aid supplies are available to employees c) provides protection for employees who are injured or disabled while working ONLY if the employee is wearing appropriate safety gear and following prescribed work procedures d) suggests that employers carry workers’ compensation insurance Answer: b 70. Workers’ compensation laws: a) are promulgated by the states and administered by the states b) are a part of the Occupational Safety and Health Act (OSHA) c) provide protection for employees who are injured or disabled while working ONLY if the employee is wearing appropriate safety gear and following prescribed work procedures d) suggest that employers carry workers’ compensation insurance Answer: a Short Answer 71. In most cases, people can only claim discrimination based on ___________ _______________, which are things they cannot reasonably change for a job. Answer: immutable characteristics 72. The collection of individuals specifically protected from discrimination by the wording and intent of Title VII are referred to as ___________ _____________. Answer: protected classes 73. Unwelcome sexual advances, requests for sexual favors, or verbal or physical conduct of a sexual nature are ___________ _________________. Answer: sexual harassment 74. ___________ ___________ sexual harassment occurs when behavior of a sexual nature has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating or offensive working environment. Answer: Hostile environment 75. The Family and Medical Leave Act (FMLA) provides for up to 12 weeks of _______ leave. Answer: unpaid 76. One component of an affirmative action plan, a ___________ _________ compares the percentage of women and minorities currently holding jobs in the company with the percentages of women and minorities in the population of the immediate labor area. Answer: utilization study 77. The _____________ ___________ __________ Act of 1970 deals with employee health and safety requirements. Answer: Occupational Health and Safety 78. _____________ _____________ provides protection for employees who are injured or disabled while working. Answer: Workers’ Compensation Essays 79. Discuss the Americans with Disabilities Act. Be sure to discuss who is covered, what is a disability and what is required of an employer when an employee is covered by the act. Answer: ADA provides protection for individuals with physical and/or mental disabilities, those who have a record of having a disability and those regarded as having a disability, even if they do not. A disability is a physical or mental impairment that cannot be “corrected” that prevents an individual from performing normal life activities. Employers are required to specify essential parts of a job and provide reasonable accommodation to help a qualifying person perform the job, unless doing so would create an undue hardship. 80. Discuss the two types of major laws that provide employees with assurance of safety and protection on the job. Answer: The Occupational Safety and Health Act (OSHA) is a federal law passed in 1970. OSHA requires employers to keep records about safety practices and incidents, including illnesses and injuries that occur in the workplace. Employers should conduct periodic inspections to make sure the workplace is safe and ensure that structures, machines, and materials do not place employees in dangerous situations. Employers must provide information and keep employees informed of protections and safety obligations. Employers must ensure that employees know about hazardous chemicals in the workplace to which they might be exposed. OSHA is administered by the Occupational Safety and Health Administration. Each state has laws and programs governing workers’ compensation, which provides protection for employees who are injured or disabled while working. Employers are required to carry workers’ compensation insurance. Workers’ compensation is administered by the individual states. Test Bank for Human Resource Management: Linking Strategy to Practice Greg L. Stewart, Kenneth G. Brown 9780471717515