Human Resource Management - Questions for Exam 1 | MGT 3320
Human Resource Management Louisiana State University (LSU) - System Office
12 pag.
Chapter 1
1. One of the first factors that increased the importance of HRM was a. The 1964 Civil Rights Act
2. The view of HRM as part of the legal enforcement arm of an organization is largely applicable
a. Only in the US
3. The Civil Rights Act of 1964 prohibits discrimination based on all of the following
a. Race b. Religion c. Gender
d. National origin
4. Since 9/11/2001 and Hurricanes Katrina and Rita, companies have become more concerned about
a. Security
5. Early research that determined the importance of individual and group behavior to organizations involved the
a. Hawthorne studies
6. The basic notion of the HR movement was that
a. Satisfied employees would work harder for the company
7. In the 1930s and 40s, units within a company that dealt with employees’
behavioral challenges and issues were called a. Personnel departments
8. During the 1950s and 60s, all of the following developed within the field of HRM
a. Selection tests from WWII were adapted for use in private industry b. Reward and incentive systems became more sophisticated
c. Government legislation expanded, adding complexity to HRM
d. Unions became more powerful and demanded more benefits for their members
9. The 1964 Civil Rights Act made it illegal for corporate managers to make decisions based on all of the following
a. Gender b. Religion c. Race
d. National origin
10. All individuals who gain knowledge and utilize the information effectively to enhance the organization
a. Knowledge workers
11. A HRM system integrates all of the following functions a. Finance
b. Operations c. Marketing
d. Other fundamental organizational functions
12. All of the following research contributions to the early growth of the scientific management
a. Elton Mayo b. Lillian Gilbreth c. Fredrick Taylor d. Frank Gilbreth
13. Which are the 4 basic goals of HRM functions
a. Promoting individual growth and development b. Complying with legal and social obligations c. Enhancing productivity and quality
d. Facilitating organizational competitiveness 14. Improving quality has what effect on productivity
a. Almost always increases
15. Genevieve, a HR staff member, has the task of investigating employee complaints about civil rights violations at work. Which goal of HRM is she working on?
a. Complying with legal and social obligations
16. Shihan is a project manager in the HR department of Intel. She says “I work on issues ranging from department care to work/life benefits. I work with employees to better understand their needs and to help design programs for them.” Which fundamental goals of HRM is she working on?
a. Promoting individual growth and development
17. Which of the following would typically be considered a staff, rather than a line manager?
a. HR manager
18. HR activities are typically carried out by a. Both line and staff managers
19. The goals of HRM typically include all these activities a. Facilitating organizational competitiveness b. Enhancing productivities and quality
c. Complying with legal and social obligations d. Promoting individual growth and development
20. The managers who are directly involved in creating goods and services are known as
a. Line managers
21. Who would typically have responsibility for carrying out HR activities in a small, independent business?
a. The owner or general manager
22. The following are requirements for being a successful HRM?
a. Understanding of the legal environment b. Understanding of labor relations
c. Understanding of the process of change management d. Knowledge of business and corporate strategy
23. Involves the set of expectations about the exchanges that occur between employees and employers
a. Psychological contract
24. A sporting goods retail company hires another firm to manage all of its payroll functions. This is called
a. Outsourcing
25. As the HR field becomes more professional, more HRM are acquiring the HR Certification Institute (HRCI) credential. Which organization was
instrumental in establishing the credential?
a. The Society for HRM (SHRM)
26. The modern term used to describe the management of people is a. Human resource management
27. Both the military and its suppliers became more interested in person-job matching during
a. World War II
28. The HRCI offers several certifications, including all of the following a. PHR
b. SPHR c. GPHR
29. The widespread use of ______________ has affected how HR systems are delivered
a. Electronic technology
30. Following the requirements of the Americans with Disabilities Act falls under which particular goals of HR?
a. Complying with legal and social obligations
31. The realization the HRM was an important field was spearheaded by the passing of the Rollins-Robinson Act.
a. False
32. The HR function in organizations today is viewed as a key activity that can enhance the bottom line
a. True
33. Historically, personnel managers developed and promoted executives a. False
34. Scientific management focused on increasing efficiency and productivity a. True
35. Productivity is the total set of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
a. False
36. Line managers are those responsible for an indirect or support function that have costs but whose bottom-line contributions are less direct
a. False
37. The PHR certification is similar to passing the CPA exam a. True
38. Designing jobs that are more challenging and satisfying is part of a company’s HR compliance with legal obligations
a. False
39. Utility analysis attempts to measure the effectiveness of different HR approaches in terms of such metrics as a firm’s financial performance
a. True
40. In order to take the PHR, SPHR, or GPHR certification exams, an individual must have at least 10 years of professional experience
a. False Chapter 2
1. Title VII of the 1964 Civil Rights Act prohibits discrimination based on a. National origin
b. Race c. Sex d. Religion
2. All of the following are forces that effect the legal environment of HR in the US
a. The Supreme Court b. The President of the US c. The State legislatures d. Congress
3. The steps in the regulatory process are
a. Creation, enforcement, implementation 4. The most important HR regulatory agency is the
a. Equal Employment Opportunity Commission
5. One method for establishing whether disparate impact exists in a company’s hiring practices involves
a. Geographic comparisons
6. The most noteworthy factors used to characterize a protected class include a. Disability
b. Religion c. National origin d. Gender
7. Quid pro quo sexual harassment typically involves a. Sexual favors in return for something of value
8. Executive order 11478 requires federal contractors receiving more than _________ must have affirmative action plans
a. $10,000
9. The Age Discrimination in Employment Act prohibits discrimination with respect to age of employees or applicants
a. 40 or over
10. Which would probably not be covered by the ADA?
a. A person with poor vision that is correctable with glasses
11. The Family Medical Leave Act requires employers to provide which of the following for employees under certain emergency circumstances
a. Up to 12 weeks of unpaid leave
12. The Vocational Rehabilitation Act of 1973 requires that federal contractors receiving more than _______________ must have affirmative action plans for persons who have disabilities
a. $2,500
13. The American with Disabilities Act requires companies to
a. Make reasonable accommodations for disabled individuals 14. The Fair Labor Standards Act legislates such issues as
a. Child labor
15. Titleist makes most of the golf clubs it sells to US 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 not in violation of the act, because the FLSA applies only to workers in the US
16. What was passed to protect employee pensions benefits a. ERISA
17. Which labor law was passed to regulate union actions and internal affairs related to employee representation, shifting some power away from union
a. Taft-Hartly Act
18. _________________ was passed to protect employee safety a. OSHA
19. 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. Provides for criminal penalties for willful violations of the act 20. The Occupational Safety and Health Act
a. Provides for criminal penalties for willful violations of the act 21. The drug-free workplace act of 1988 was passed to
a. Reduce the use of illegal drugs in the workplace 22. The Privacy Act of 1974 ensures that
a. Federal employees can review their personnel files for accuracy 23. The law that prohibits employers from collecting genetic information about
their employees is called the
a. Genetic Information Nondiscrimination Act
24. Alpha-Beta Company closed a plant and lay off 100 workers, who made $100 per day in pay and benefits. The closing was announced by company
managers on April1 and took place 30 days later. Under the provision of the Worker Adjustment and Retraining Act of 1988 (WARN), the company must pay a penalty of
a. $300,000
25. Charlie Company is evaluating its HR legal compliance. Who is the least likely to be involved
a. Line workers
26. What are the steps for evaluating legal compliances?
a. Management understanding, legal and HR staff review, and external audit
27. The Vietnam Era Veterans’ Readjustment Act of 1974 is directed primary at a. Both federal contractors and federal subcontractors
28. Establishes the workweek in the US as 40 hours per week.
a. FLSA
29. The basic premise of OSHA is that each employer must provide a workplace that is safe for employees, which is known as the
a. General duty clause
30. The Privacy Act of 1974 applies directly to _________ employees a. Federal
31. One catalyst for modifying or enhancing the HR legal environment may be social change
a. True
32. In some cases, a regulation may be unintentionally ambiguous or may be interpreted by the courts in different ways over time
a. True
33. A BFOQ exception must be supported with a justified position of business necessity
a. True
34. Disparate impact occurs when an employer knowingly practices illegal discrimination
a. False
35. The Privacy Act of 1974 prohibits employers from collecting any genetic information about their employees, including information about family history of disease.
a. False
36. The Equal Pay Act’s provision expands the rights of the government or law enforcement agencies to collect information about and pursue potential terrorists.
a. False
37. The first step of legal compliance is to ensure that managers clearly understand the laws that govern every aspect of HRM.
a. True
38. All managers must understand and be intimately familiar with the various laws that restrict and govern their behavior of their employees.
a. True
39. Ian owns a construction company with 5 employees. He wants to fire someone. He has no legal staff to advise him, so he should terminate the employee now.
a. False
40. External legal audits are inexpensive a. False
Chapter 3
1. Which industrialized nation emerged as the only intact major power after WWII?
a. The US
2. All of these countries are considered the leading industrial powers in today’s global economy
a. The US
b. Germany
3. Which of the following trends is not true of developing nations today a. The labor force is growing quickly
4. Which country is not experiencing rapid population growth?
a. Canada
5. Under a geocentric staffing model
a. The organization seeks to hire the best person available for a position regardless of where the individual comes from
6. Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?
a. None of the above
7. No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit from other people’s misfortunes. This cultural factor pertains to what type of difference?
a. Business practices
8. Dietrich prefers structured circumstances instead of situations that are relatively ambiguous. Which cultural dimension does he exhibit?
a. Uncertainty avoidance
9. What aspect of international business do NAFTA and the EU represent?
a. Economic communities
10. 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. Individualism
11. Siemens has a complex matrix organization structure. Managers who have been with the company for years and built relationships are the most
effective. Someone with a cultural dimension of _________________ is more likely to experience success there.
a. Femininity
12. What is the term used when a company lets a foreign firm make and/or distribute its products in a local market?
a. Licensing
13. Under which two approaches to international business will the HR function be least affected?
a. Exporting and licensing
14. What is an advantage of direct investment in another country?
a. There is more profit potential
15. Under which international strategy will several companies agree to cooperate for mutual benefit?
a. Strategic alliance
16. Local issues that must be dealt with by firms conducting business on foreign markets include all of the following except
a. HR technology
17. Locating a facility in a relatively underdeveloped area will impact all of the following HR activities except
a. Production design
18. 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 tailor training to best develop workers from various countries
19. Prakash is a HRM 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 her?
a. Compensation for workers in Singapore will likely be the same as for workers in India
20. When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must ofted
a. Provide extensive training and development
21. Which of the following is not likely to be a part of a compensation package designed for an expatriate?
a. Unlimited travel to and from the home country
22. Wangokyo 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 him in his foreign assignment?
a. Technical skills
23. 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 returns early because of an inability to perform 24. Repatriation occurs when an
a. Expatriate manager comes home from a foreign assignment
25. Which of the following is an accurate statement about labor unions outside the US?
a. Foreign labor unions are more likely to be involved in political and social issues
26. More than ___________ the world’s workforce outside the US belongs to labor unions
a. Half
27. In _____________ labor “contracts” are not really legal contracts at all but are merely understandings that can be broken at any time by either party with no penalty
a. England
28. Labor relations in ____________ tend to be cordial a. Japan
29. HCNs are least likely to work in _______________ positions a. Management
30. Some countries, such as ___________________, focus compensation on assessing an individual’s performance and then compensating that individual
accordingly a. The US
31. The US and Japan have experienced slowing growth rates in employment in recent years
a. True
32. The interrelatedness of global markets was demonstrated by the recent economic downturn in the US that affected many other parts of the world
a. True
33. The ethnocentric staffing model utilizes host-country nationals extensively throughout the company
a. False
34. A joint venture might not involve ownership but still involves cooperation between firms
a. False
35. In a relatively underdeveloped country, training and development needs will be very extensive
a. True
36. Benefit packages are remarkably similar across most countries a. False
37. Training is instruction directed at enhancing specific job-related skills and abilities and most often focuses on managers
a. False
38. Most companies follow the advice of experts and complete the repatriation process successfully
a. False
39. During contract negotiation at French operations for Caterpillar, Sony, and M3, angry labor officials took senior managers hostage in efforts to win better employment contracts
a. True
40. Labor relations are not heavily regulated by law Chapter 4
1. Companies can establish a competitive advantage by a. Hiring good employees and effectively managing HR 2. An organization’s mission
a. Specifies how it will achieve its purpose b. Affects its HR practices
c. Is its basic reason for existence
d. Describes its unique characteristics and strengths
3. Sri is an executive in the corporate headquarters responsibly for strategy formulation and implementation. She is likely part of a
a. Top management team
4. What strategy involves the actions taken by firms to better operate in a relevant industry or market?
a. Business
5. When organizations are downsizing the number of employees in the hierarchy, this usually involves a _________ strategy
a. Retrenchment
6. When a company decides to own and operate several separate companies, which strategy is being employed?
a. Diversification
7. An organization made up of various businesses similar in the products or services they provide is pursuing which strategy?
a. Related diversification
8. Which adaptation model of business strategy is best used when the situation is highly stable with low uncertainty?
a. Defender
9. Which adaptation model of business strategy is characterized by ignoring the environment?
a. Reactor
10. A publisher groups its personnel into different departments on the basis of the customer because the processes are closely related. This is called the __________ design.
a. Divisional
11. Prada creates fashions that convey status and luxury. It follows a
differentiation strategy. Therefore, an important goal of its HR strategy will likely be to
a. Hire workers who are flexible and can perform a variety of tasks 12. Which of the following organizational designs is most likely to have few
managerial levels?
a. Flat
13. Yum brands began with 3 businesses: Pizza Hut, Taco Bell, and KFC. Since its founding, the company has acquired other fast-food firms, including Long John Silver’s and A&W. Which type of organization design would be most appropriate for Yum’s strategy?
a. A multidivisional design
14. Which of the following was not identified as an organizational component affecting the formulation and implementation of HR strategy?
a. Organizational development
15. The process of handling union issues and challenges is called a. Labor relations
16. The principles and benefits that shape what employees think about a company is called
a. Organizational culture
17. The set of factors that prompt people to perform work at high levels is called a. Motivation
18. An individual’s reactions to environmental factors that present excessive demands is called
a. Stress
19. Amazon is highly successful online retailer that continues to expand its product selection. Which of the following actions is Amazon not likely to use as it implements its strategy?
a. It will offer early retirement to workers 20. What is a psychological contract
a. The set of expectations held by an individual as to what he will
contribute to the organization and what the organization will provide in return
21. Adam believes that it is fine to spend his lunchtime playing games on the computer at work. This involves which part of the psychological contract?
a. The individual contributions
22. When the Hershey family financial advisors recommended selling Hershey Foods stock in 2001, employees were outraged. They felt betrayed and were angry and pessimistic. Which individual or interpersonal process was interfering with implementation of Hershey’s strategy?
a. Worker attitudes
23. In the past, evaluations of the effectiveness of the HR function concentrated mainly on
a. Cost
24. Companies that view their HR function as a strategic asset should not evaluate HR effectiveness by investigating
a. Costs as the only factor
25. Pierre would like to increase the effectiveness of HR at his firm. What advice would you give him
a. Don’t pay everyone the same. Pay high-performing workers more in order to increase motivation
26. The organization’s _____________ is the basic reason for existence a. Purpose
27. The top management team includes the a. CEO
b. COO
c. Chairperson of the board of directors d. President
28. Functions that add little value are likely to be __________, even if they are not terribly ______________, and functions that add competitive advantage are likely to be ______________, even if they are relatively ____________.
a. Outsourced, expensive, retained, expensive
29. All of the following are part of a high performance work system except a. No formal performance appraisals
30. Taxpayers have a psychological contract with the governments they pay taxes to. When the General Services Admin spent hundreds of thousands of taxpayer dollars on extravagant trips to Hawaii and Las Vegas, individuals were outrageous. The outrage involves which part of the psychological contract?
a. The organization inducements
31. The top management team in a company usually includes all the shareholders
a. False
32. An agency problem occurs when there is a conflict between the interests of managers and the interests of shareholders
a. True
33. The functional strategies help determine what businesses the firm will operate
a. False
34. The stability strategy essentially maintains the status quo a. True
35. Union membership in the US has been growing gradually for the last few decades
a. False
36. Hiring refers to the set of activities used by the organization to determine its future HR needs, recruit qualified applicants interested in working for the organization, and select the best of those applicants as new employees
a. False
37. Attitude is the relatively stable set of psychological attributes or traits that distinguishes one person from another
a. False
38. Leadership is the process by which two or more parties exchange information and share meaning
a. False
39. Whether or not to outsource a function depends on the actual cost of keeping the function in-house
a. True
40. It’s better to have some formal appraisal rather than none at all, but it’s true that different types of appraisal systems will lead to different outcomes.
