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Chapter 01: The Strategic Role of Human Resources Management
1. Human resources management refers to
A. management techniques for controlling people at work.
B. concepts and techniques used in leading people at work.
C. the management of people in organizations.
D. all managerial activities.
E. concepts and techniques for organizing work activities.
Answer: C. the management of people in organizations.
2. The knowledge, education, training, skills, and expertise of a firm's workers are known as
A. management's philosophy.
B. human capital.
C. physical capital.
D. production capital.
E. cultural diversity.
Answer: B. human capital.
3. A company uses a system to measure the impact of human resources which balances
measures relating to financial results, customers, internal business processes, and human
capital management. This system is known as the
A. HRIS.
B. balanced scorecard.
C. Human Capital Index.
D. balanced strategy.
E. none of the above.
Answer: B. balanced scorecard.
4. You have been tasked with building employee engagement at the firm you work for.
Strategic human resources initiatives you would consider implementing include
A. employee recognition programs.
B. diversity programs.
C. employee recognition programs and management development programs.
D. job design indicators.
E. employee relations activity.
Answer: C. employee recognition programs and management development programs.
5. HR department staff members are traditionally involved in key operational responsibilities.
Which of the following is an operational responsibility?
A. collecting metrics
B. analyzing metrics
C. interpreting human right laws
D. setting goals and objectives
E. interpreting health and safety legislation
Answer: A. collecting metrics
6. Being completely familiar with employment legislation, HR policies and procedures,
collective agreements, and the outcome of recent arbitration hearings and court decisions is
most closely related to which of the following HR activities?
A. offering advice
B. formulating policies and procedures
C. providing services
D. serving as a consultant
E. serving as a change agent
Answer: A. offering advice
7. The practice of contracting with outside vendors to handle specified functions on a
permanent basis is known as
A. payroll and benefits administration.
B. outsourcing.
C. labour-management relations.
D. contract administration.
E. hiring temporary employees.
Answer: B. outsourcing.
8. The company's plan for how it will balance its internal strengths and weaknesses with
external opportunities and threats to maintain a competitive advantage is known as
A. HR strategy.
B. environmental scanning.
C. strategy.
D. policies and procedures.
E. none of the above.
Answer: C. strategy.
9. Rita is the HR Director of a manufacturing company. She recently undertook research to
identify competitor compensation and incentive plans, information about pending legislative
changes, and availability of talent in the labour market for the upcoming strategic planning
meeting. Rita was conducting
A. an employee engagement survey.
B. an external opportunities/threats study.
C. environmental scanning.
D. an external market survey.
E. an environmental study.
Answer: C. environmental scanning.
10. The core values, beliefs, and assumptions that are widely shared by members of an
organization are known as
A. the strategic plan.
B. the mission statement.
C. organizational culture.
D. organizational climate.
E. the pervading atmosphere.
Answer: C. organizational culture.
11. As the HR consultant of a newly formed company, Arun has planned a presentation for
the line managers on organizational culture and the purpose it serves. Which of the following
points would Arun have included in his presentation?
A. increasing training levels
B. fostering employee loyalty and commitment
C. fostering employee loyalty and commitment and providing employees with a sense of
direction
D. succession planning
E. creating a more worldly atmosphere
Answer: C. fostering employee loyalty and commitment and providing employees with a
sense of direction
12. The prevailing atmosphere or ''internal weather" that exists in an organization and its
impact on employees is
A. the need for performance appraisals.
B. the importance of having a mission statement.
C. a myth about organizations.
D. organizational climate.
E. the need for a corporate culture.
Answer: D. organizational climate.
13. Revlex Inc. has decided to allow its front line workers to make decisions regarding the
ordering of certain supplies that were formerly made by managers. This initiative is an
example of
A. workplace incentives.
B. a change in organizational climate.
C. job restructuring.
D. employee empowerment.
E. management development.
Answer: D. employee empowerment.
14. Joe Brown was hired by a manufacturing firm as a supervisor. During his first few weeks
as a supervisor, he realized that employees who report to him expect a lot of direction and
expect him to do all of the decision making. Joe Brown decided to train his employees to take
on additional responsibilities and make decisions within a specific scope. Joe Brown is
A. outsourcing his staff.
B. reducing his staff.
C. embracing his staff.
D. empowering his staff.
E. none of the above.
Answer: D. empowering his staff.
15. Economic downturns are generally associated with
A. high turnover.
B. lower unemployment rates.
C. skills shortages.
D. an overwhelming number of job applicants for vacancies.
E. more competition for qualified employees.
Answer: D. an overwhelming number of job applicants for vacancies.
16. The ratio of an organization's outputs to its inputs is known as
A. the labour market.
B. the supply and demand equation.
C. competitive ability.
D. the equity ratio.
E. productivity.
Answer: E. productivity.
17. External environmental influences having a direct or indirect influence on HRM include
which of the following?
A. increasing empowerment
B. decreasing workforce diversity
C. labour market conditions
D. organizational climate
E. organizational culture
Answer: C. labour market conditions
18. The ratio of an organization's outputs, such as goods, to its inputs, such as capital, is
which of the following?
A. outsourcing
B. workforce diversity
C. the labour market
D. productivity
E. an internal environmental influence
Answer: D. productivity
19. When unemployment rates fall,
A. there is always a greater demand for services.
B. training and retention strategies increase in importance.
C. unions are more likely to organize workers.
D. there is always a greater demand for services, and training strategies increase in
importance.
E. retention strategies increase in importance.
Answer: B. training and retention strategies increase in importance.
20. Mortgage Financial needs to recruit 10 employees for a period of three months to assist
its team of underwriters during the busy season. The company does not want to provide these
10 employees regular full-time or part-time status. As the HR manager, what would you
suggest the company do in this situation?
A. develop a retention plan
B. outsource the underwriting function
C. increase the workload of staff
D. use contingent employees
E. do nothing about the situation
Answer: D. use contingent employees
21. The characteristics of the workforce are known as
A. organizational climate.
B. population trends.
C. diversity.
D. unionization.
E. demographics.
Answer: E. demographics.
22. Any attribute that humans are likely to use to tell themselves "that person is different from
me," including factors such as race, gender, age, values, and cultural norms, is known as
A. differences.
B. characteristics.
C. perceptions.
D. minorities.
E. diversity.
Answer: E. diversity.
23. Baby boomers
A. will increase rapidly in number over the next few decades.
B. were born between 1946 and 1965.
C. resulted in a focus on recruitment and selection in organizations in the past.
D. have very high fertility rates.
E. are currently causing a great deal of competition for advancement.
Answer: B. were born between 1946 and 1965.
24. One characteristic of Generation X employees is
A. mastery of technology.
B. eagerness to make a contribution.
C. a sense of security linked to corporate loyalty.
D. an orientation towards action.
E. a desire for work/life balance.
Answer: E. a desire for work/life balance.
25. If you were the HR advisor of a company where the majority of the workforce consisted
of employees born after 1980, what initiatives would you recommend providing to keep the
group challenged?
A. continuous skill development
B. job security
C. empowerment and challenging work
D. eldercare benefits
E. flexible work arrangements
Answer: C. empowerment and challenging work
26. If you were the HR advisor of a company where the majority of the workforce consisted
of employees born before 1965, what initiatives would you recommend providing to keep the
group challenged?
A. independent work
B. job security
C. onsite gym facilities
D. eldercare and pension benefits
E. flexible work arrangements
Answer: D. eldercare and pension benefits
27. Canadians who are functionally illiterate are
A. involved in academic upgrading through their place of employment.
B. older Canadians who did not have the opportunity to attend school.
C. no longer in the workforce.
D. able to perform routine technical tasks without assistance.
E. exacting a toll on organizations' productivity levels.
Answer: E. exacting a toll on organizations' productivity levels.
28. Which of the following statements is true?
A. Ethnic diversity is starting to level off in Canada.
B. Ethnic diversity is increasing. Currently, more than 200 different ethnic groups are
represented among Canadian residents.
C. The majority of Canadians are of French or British origin.
D. Most visible and ethnic-minority Canadians are professionals.
E. The proportion of visible and ethnic minorities entering the Canadian labour market
peaked in the mid-1990s and is gradually decreasing.
Answer: B. Ethnic diversity is increasing. Currently, more than 200 different ethnic groups
are represented among Canadian residents.
29. Technological advances in manufacturing have
A. resulted in outsourcing operational HR activities.
B. decreased the importance of white-collar jobs.
C. resulted in a decline in the impact of workforce diversity.
D. had little impact on service-sector firms.
E. led to significant increases in the employment of persons with disabilities.
Answer: A. resulted in outsourcing operational HR activities.
30. Questions concerning _____________ are at the core of a growing controversy brought
about by new information technologies.
A. data control, accuracy, right to privacy, and ethics
B. employee stress levels
C. job satisfaction
D. privacy and social responsibility
E. speed, accuracy, and efficiency
Answer: A. data control, accuracy, right to privacy, and ethics
31. You are the HR generalist of a national railway. Which employment legislation would you
refer to when it comes to employee relations issues within the organization?
A. provincial/territorial
B. provincial
C. territorial
D. federal
E. none of the above
Answer: D. federal
32. Which of the following apply to employers and employees across Canada?
A. the Canada Labour Code
B. employment equity legislation
C. employment insurance and the Canada/Quebec Pension Plan
D. employment insurance and employment legislation
E. employment insurance and human rights legislation
Answer: C. employment insurance and the Canada/Quebec Pension Plan
33. The tendency of firms to extend their sales or manufacturing to new markets abroad is
known as
A. cultural diversity.
B. globalization.
C. international marketing.
D. product diversification.
E. domestication.
Answer: B. globalization.
34. The globalization of markets and manufacturing has vastly increased
A. employee turnover.
B. the quality of products and services.
C. standardization practices.
D. the prices of products and services.
E. international competition.
Answer: E. international competition.
35. The process of analyzing manufacturing processes, reducing production costs, and
compensating employees based on their performance levels is found in
A. the human relations movement.
B. scientific management.
C. the scientific movement.
D. the human resources movement.
E. none of the above.
Answer: B. scientific management.
36. Which of the following was emphasized in Frederick Taylor's theory on HRM?
A. empowerment of employees
B. cross-functional cooperation
C. compensation tied to performance
D. work conditions
E. job rotation
Answer: C. compensation tied to performance
37. Management practices in the late 1800s and early 1900s emphasized
A. self-management.
B. workplace harmony.
C. higher wages.
D. empowerment.
E. task simplification and performance-based pay.
Answer: E. task simplification and performance-based pay.
38. Mary Parker Follett was a
A. believer in self-management.
B. strong advocate of scientific management.
C. supporter of the view that workers are a factor of production.
D. strong advocate of authoritarian management.
E. believer in the motivational power of money.
Answer: A. believer in self-management.
39. The management philosophy based on the belief that attitudes and feelings of workers are
important and deserve more attention is known as
A. socialism.
B. scientific management.
C. the human resources movement.
D. the human relations movement.
E. psychology.
Answer: D. the human relations movement.
40. Which of the following activities was part of the traditional role of personnel
management in the early 1900s?
A. hiring and firing employees
B. environmental scanning
C. coaching and mentoring
D. being part of the strategy planning discussions
E. handling union-management relations
Answer: A. hiring and firing employees
41. In the early 1900s, personnel administration, as it was called then,
A. focused on trying to improve the human element in organizations.
B. served a key advisory role in organizations.
C. was closely tied to union-management relations.
D. was highly influenced by laws and regulations.
E. played a very subservient role in organizations.
Answer: E. played a very subservient role in organizations.
42. The second phase of personnel management arrived in the 1930s with
A. a decrease in unionizing activities.
B. minimum wage legislation.
C. a decrease in unionizing activities and minimum wage legislation.
D. the decreasing momentum of the scientific management movement.
E. health and safety legislation.
Answer: B. minimum wage legislation.
43. If you were an HR professional in the 1940s or 1950s, you would likely have had which
of the following activities added onto your portfolio of existing responsibilities?
A. handling orientation and performance appraisals
B. running the payroll department
C. hiring and firing
D. focusing on proactive management
E. administering benefits
Answer: A. handling orientation and performance appraisals
44. The third major phase in personnel management was a direct result of
A. the increasing amount of government legislation.
B. the impact of the human relations movement.
C. a desire for professionalism.
D. government intervention following the depression of the 1930s.
E. an increase in unionizing activities.
Answer: A. the increasing amount of government legislation.
45. The third phase of personnel management was concerned largely with
A. payroll.
B. benefits administration.
C. corporate contribution and proactive management.
D. corporate contribution.
E. health and safety legislation compliance.
Answer: C. corporate contribution and proactive management.
46. The fourth phase of HRM is ongoing. Current management thinking holds that
A. the goals and aims of management must be achieved at all costs.
B. employees are motivated primarily by compensation and benefits.
C. social influences are no longer important to most employees.
D. employees are quite similar in terms of the rewards they seek.
E. employees are often the firm's best competitive advantage.
Answer: E. employees are often the firm's best competitive advantage.
47. The broad objectives of HR associations across the country include
A. skills updating.
B. assisting in the provision of training in the field of HR.
C. serving as a voice for HR practitioners.
D. providing opportunities for information exchange.
E. all of the above.
Answer: E. all of the above.
48. The Canadian national body through which all provincial and specialist HR associations
are affiliated is called the
A. Canadian Management Association.
B. Canadian Council of Human Resources Associations.
C. Society for Human Resource Management.
D. Human Resources Professionals Association of Ontario.
E. International Personnel Management Association-Canada.
Answer: B. Canadian Council of Human Resources Associations.
49. Developing a reputation as an environmental leader and demonstrating corporate social
responsibility
A. is part of every organization's mission statement.
B. is not supported by shareholders in for-profit enterprises.
C. is only common in not-for-profit enterprises.
D. helps organizations to gain market share and retain employees.
E. is a key responsibility of the human resources leader.
Answer: D. helps organizations to gain market share and retain employees.
50. The goal of HRM is to align people practices with organizational strategy to produce
behaviours required to achieve organizational goals.
a. True
b. False
Answer: a. True
51. HR responsibilities have shifted from operational to strategic responsibilities which
involve formulating and executing organizational strategy.
a. True
b. False
Answer: a. True
52. An HR professional can build employee engagement by coaching line managers to build
trusting relationships with their employees, establishing recognition programs, and providing
management development programs.
a. True
b. False
Answer: a. True
53. Management can lose its authority and power by empowering its employees.
a. True
b. False
Answer: b. False
54. HR professionals are increasingly expected by their employers to be change agents who
lead the organization and its employees through change
a. True
b. False
Answer: a. True
55. The growing emphasis on education and human capital reflects several social and
economic factors, such as the increase in primary-sector employment.
a. True
b. False
Answer: b. False
56. Recent research indicates that there is a strong positive relationship between employee
engagement and organizational performance.
a. True
b. False
Answer: a. True
57. HRM has evolved over the last few decades due to economic forces such as globalization,
technological changes, and intense competition, all of which make human capital more
important.
a. True
b. False
Answer: a. True
58. Define and briefly describe the term "human resources management."
Answer: Five points recommended: 2 for a definition that is close to the textbook
("management of people in organizations") and 3 for being able to identify something close
to "formulating and implementing HRM systems (such as recruitment, performance
appraisal, and compensation) that are aligned with the organization's strategy…"
59. We are currently in "Phase 4" of the human resources movement where HR has evolved
towards helping the organization to achieve its strategic objectives. There are six
competencies, described by Ulrich et al., 2009 in the text, that are part of HR professionalism.
Identify and describe in detail two of these HR competencies.
Answer: Some detailed and accurate description of two of credible activist, culture and
change steward, talent manager and organizational designer, strategy architect, operational
executor, and business ally.
60. The condition of the labour market is a key environmental influence on human resources
management in any organization. With the end of mandatory retirement in most Canadian
jurisdictions, there are employees from all four of the demographic groups in the workforce.
Identify and briefly describe each of the four demographic groups, then describe two
challenges posed by the differences between the demographic groups in the workplace.
Answer: For the first 8 points of this 10 point question, identify each of the groups
(Traditionalists, Baby Boomers, Generation X, and Generation Y) and one or two
characteristics for each group. For the last 2 points, the student should express how the
attitudes/values/expectations/differences may create issues in the workplace. See Table 1.4 on
page 15.
Test Bank for Management of Human Resources: The Essentials
Nina D. Cole, Gary Dessler, Nita Chhinzer
9780133807332, 9780134305066
