File: ch01, CHAPTER 1: The Dynamic Environment of HRM /FALSE 1. Multinational corporations became commonplace in the 1920s. False. Multinational corporations didn’t become a common place until 1960s. In the 1920s some companies had gone multinational including fiat, Ford, Unilever, and Royal Dutch/Shell. (PAGE 4) 2. According New York Times author, Thomas Friedman, there are three eras of globalization: transportation, communication, and technology. True. (PAGE 4) 3. When off the job, an employer cannot legally control an employee’s behavior by prohibiting such things as riding a motorcycle, skydiving, smoking, or drinking alcohol. False. Although controlling employee’s behaviors on and off the job may appear unjust or unfair, nothing in our legal system prevents employers from engaging in those practices. If employees don’t like the rules they have the option of quitting. (PAGE 9) 4. Most organizations take a ‘melting pot’ approach to diversity. False. Organizations use to take this approach. Now it is being replaced by recognition and celebration of differences. (PAGE 10) 5. Many Gen Xers and Gen Yers, while passionate about their careers, will not sacrifice family and leisure for their career. True. It becomes too difficult balance for employers to maintain as the lines between employee work and personal lives. (PAGE 13) 6. Your text foresees an end to the labor shortage within the next year or two due to population and technology shifts. False. Factors are due to birthrates and labor participation rates. American employers benefited from the large number of baby boomers. (PAGE 14) 7. Part-time employees are those employees who work fewer than 40 hours a week. True. (PAGE 15) 8. Quality management is an organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organization. False. It expands beyond that, the objective is to create an organization committed to continuous improvement called kaizen—one that leads to achieving an effective and learn workplace. (PAGE 18) 9. Continuous improvement programs aim at constantly improving the quality of products and services. True. (PAGE 18) 10. Work process engineering focuses on radical changes in an organization. True. (PAGE 19) 11. Employee involvement increases when managers make clear, forceful decisions for subordinates. False. Being forceful is not necessary in many companies today. Group/Work teams help make employee rise. (PAGE 20) 12. Recent corporate scandals have created a lack of trust for management. True. ( PAGE 22) 13. Organizations do not like to use contract workers because their labor cost is unknown and their service is usually poor as compared to full-time employees. False. Their fee is set in the contract and paid when the organization receives particular deliverables. Their labor cost is fixed and incur none of the costs associated w/ full-time employee population. (PAGE 15) 14. An employee is defined by the Internal Revenue Service () as an individual who performs work for you, and you have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. True. (PAGE 17) 15. Mergers are a common way for businesses to enter new or global markets, acquire new technology, or gain a financial advantage by achieving economies of scale. True. (PAGE 22) MATCHING TERMS DEFINITIONS 16. A process of interaction and integration among the people, companies, and governments of different nations, driven by international trade and investment, accelerated by information technology. Globalization (PAGE 4) 17. Corporations with significant operations in more than one country Multinational corporations (PAGE 4) 18. The varied personal characteristics that make the workforce heterogeneous. Workforce diversity (PAGE 11) 19. Those individuals born between 1946 and 1965. Baby boomers (PAGE 14) 20. An activity in an organization aimed at creating greater efficiency by eliminating certain jobs. Downsizing (PAGE 15) 21. Linking employee needs to organizational strategy. Rightsizing (PAGE 15) 22. The part-time, temporary, and contract workers used by organizations to fill peak staffing needs. Contingent workforce (PAGE 15) 23. Employees whose jobs are designed around acquisition and application of information. Knowledge workers (PAGE 6) 24. Using outside firms for providing necessary products and services. Outsourcing (PAGE 15) 25. A formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow. Code of ethics (PAGE 23) 26. The Japanese term for an organization’s commitment to continuous improvement. Kaizen (PAGE 18) 27. Radical, quantum change in an organization. Work process engineering (PAGE 19) 28. An organization’s full-time employee population. Core employees (PAGE 16) 29. Organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organization. Quality Management (PAGE 18) 30. The transfer of ownership and control of one organization to another. Acquisition (PAGE 22) FILL IN THE BLANKS 31. The fact that organizations are no longer constrained by national borders in producing goods and services illustrates the __globalization__ of businesses. (page 4) 32. According to Thomas Friedman, _Communication_ was the second era of globalization. 33. Women and __minorities_ are the fastest growing segments of the U.S. workforce. 34. In times of labor _shortages_, good wages and benefits are not enough to hire and keep skilled workers. 35. Contacting a pool of qualified applicants is one of the most critical aspects of _recruiting_. 36. _W. Edwards Deming_, a Wyoming statistician, is credited with introducing continuous improvement programs to Japan. 37. __Work process engineering_ goes beyond incremental change and requires an organization to face the possibility that what the organization may really need is radical or quantum change. 38. A __contingent workers_ may tend to view their work as not critically important to an organization. 39. Work teams, delegation, and peer influence are all examples of _employee involvement_ practices. 40. A set of rules or principles that defines right and wrong is commonly referred to as _ethics_. MULTIPLE CHOICE 41. Multinational corporations became commonplace in the a) 1880s. b) 1920s c) 1960s. d) 1970s. e) 1990s 42. is the training manager of a Chicago-based company. She is working on a training program for a subsidiary in . The training program focuses on work-related cultural differences in and the . It is very important for to emphasize that: a) both and the are individualistic countries. b) both and the are collectivist countries. c) is a collectivist society whereas the is an individualistic society. d) Spanish is the official language in whereas English is the official language in the . e) future orientation is highly valued and rewarded both in and the . 43. Don, a Canadian native, has just been cleared for assignment as a country manager. He went to school in the and speaks English, Spanish, and French. What assignment would work best for him if there is no time for additional training? a) Mexico. b) Brazil. c) Australia. d) Spain. e) India. 44. Different countries perceive status differently. For example, status in French society depends to a large extent on education and seniority. Such an emphasis on education and seniority is called: a) ascribed status b) prescribed status c) status differentiation d) achieved status e) earned status 45. A California-based software company has just started a joint venture with a Japanese company in . Doug, a expatriate, is the new general manager of the joint-venture. He is very excited about his foreign assignment in . However, Doug has quickly become frustrated with the lack of assertiveness of his Japanese managers and employees. He feels things are not accomplished fast enough. What should Doug do? a) Confront his Japanese managers and employees about their lack of assertiveness. b) Train his Japanese managers and employees on how to become more assertive. c) Reward his Japanese managers and employees for being assertive. d) Make an effort to better understand the Japanese culture. e) Make an effort to speak with his managers and employees in Japanese more often. 46. All of the following statements about knowledge workers are accurate except a) They currently comprise about 75% of the workforce. b) They are expected to be among the fastest growing job sectors in the next decade. c) Their jobs are designed around the acquisition and application of information. d) Their job skills need to be continually upgraded e) They are paid a premium for their skills. 47. One way technology has changed HRM practices is a) the HR function is simpler. b) recruiting using the web generates smaller, more focused applicant pools. c) employee training is often delivered on demand rather than through scheduled courses. d) electronic resumes take more time to evaluate than paper resumes. e) employees are happy to be under surveillance by their employers. 48. Diane is employed by a company that monitors employee emails and telephone conversations. While off the job, Diane’s employer can legally do all of the following except a) Prevent her from riding a motorcycle. b) Tell her who to marry. c) Prevent her from smoking. d) Not allow her to eat junk food. e) None of the above. 49. Your text mentioned that telephone calls are monitored in which of these organizations? a) Ford. b) American Express. c) . d) . e) GE. 50. One of the implications of technology in HRM is a) workers will need the ability to read and comprehend software and hardware manuals, technical journals, and detailed reports. b) employees will need more face time with their superiors. c) managers will have to revert to autocratic decision making. d) employees are motivated to work a constant 8-hour day. e) abuse of email and web surfing is eliminated. 51. All of these changes are causing an increased diversity in the workforce except a) fewer younger workers enter the workforce. b) more baby boomers take early retirement. c) Federal legislation prohibits employee discrimination. d) passage of the Senior Citizens Freedom to Work Act. e) globalization lowers barriers to immigrants. 52. Which of the following is NOT true regarding workforce diversity in the United States? a) Differences are increasingly recognized and celebrated in organizations. b) Minority and female applicants have become the fastest-growing segments of the workforce over the last 30 years. c) Firms increasingly establish policies that consider various work styles. d) As globalization becomes more pronounced, so does the importance of managing workforce diversity for U.S. organizations. e) Accommodating the needs of minority and female employees is less and less a major responsibility for managers 53. According to the text, communication via a blog has all of the following advantages except: a) it’s a quick and efficient means of advertising a company’s products. b) companies can discuss ideas among organizational members. c) dissatisfied customers and disgruntled employees can write about anything they do not like. d) companies can provide more believable public relations information. e) employees can discuss the good things that are happening to them, which personalizes the faceless company to the readers. 54. A recent survey found that women in the _________ are world leaders with 50 percent holding senior management positions. a) b) c) d) Brazil e) Hong Kong 55. Today, the percentage of women managers in the is approximately a) 50% b) 37% c) 12% d) 23% e) 8% 56. Which of the following is NOT true regarding work/life issues in the ? a) Fewer families have only a single breadwinner. b) The line between work and non-work has become blurred. c) Many employees are asked to put in longer hours. d) It has become easier for married employees to find the time to fulfill non-work commitments. e) Communication technology allows employees to work at anytime from anywhere. 57. The Bureau of Labor Statistics predicts that by 2014 nearly 2.4 million jobs will go unfilled due to all of these factors except: a) a major exodus of baby boomers due to retirement. b) a declining birthrate. c) potential training redundancy is developing. d) immigrants do not have skills in the needed areas. e) the terror attacks of may reduce immigration. 58. Why are so many organizations exhibiting a trend toward downsizing? a) Quality emphasis programs are creating flatter structures and redesigning work to increase efficiency. b) Greater control reduces flexibility. c) Quality programs create steeper hierarchies with fewer workers at the lower levels. d) Organizations are no longer global. e) Big companies are vanishing. 59. Which statement is the best comparison of downsizing and rightsizing? a) Rightsizing maintains long term employee commitment. Downsizing leads to outsourcing. b) Rightsizing links long term organizational goals to staffing levels. Downsizing is one of the actions that may be performed. c) Rightsizing maintains competitive levels of employee surplus. Downsizing emphasizes quality management. d) Rightsizing is another term for offshoring. Downsizing is another term for outsourcing. e) Rightsizing is a euphemism for a racist workforce. Downsizing means cutting the number of employees. 60. A large manufacturing firm needs to increase production to meet a seasonal demand. The demand is not sufficient to justify building new production facilities. Of the following options, which one provides the greatest flexibility and responsiveness to the changing environment? a) downsizing. b) flextime. c) outsourcing. d) telecommuting. e) automating. 61. Technology increasingly impacts HRM practices in the following areas except a) recruiting b) employee selection c) training and development d) motivating factory workers e) motivating knowledge workers 62. Work process engineering is: a) another name for downsizing. b) another name for rightsizing. c) a continuous improvement method that radically increase an organization’s productivity. d) an organizational commitment to incrementally improving the quality of products and services. e) is a radical change in an organization. 63. According to the text, one of the biggest challenges facing HR leaders is a) understanding that workers will need to be recruited in a different way than just advertising a position and then selecting a candidate. b) creating an environment that balances core and contingency employees. c) training immigrant workers who do not have the skill set for the available jobs. d) ensuring management treats all of their employees with respect. e) rewriting HR policy manuals to satisfy the new generation of workers. 64. HRM typically provides which of these types of training to temporary employees? a) Orientation. b) Retirement planning. c) Benefits options. d) Career management. e) Technology certification. 65. An amusement park needs customer representatives during the summer season. The best staffing option for this amusement park is to use: a) part-time employees. b) core employees. c) contract workers. d) independent contractors. e) recent college graduates 66. Which of the following is not a component of continuous improvement? a) Intense focus on the customer. b) Improvement in the quality of everything the organization does. c) Intense focus on individual performance. d) Accurate measurement. e) Empowerment of employees. 67. Which of the following quality experts has been credited for helping Japanese firms improve their productivity following World War II? a) W. Edwards Deming. b) Robert Fleming. c) Albert Duran. d) Joseph Juran. e) Frederick Taylor. 68. Which of the following is a component of continuous improvement? a) Outsourcing of customer needs. b) Eliminating perfectionist tendencies to constantly be better than “very good.” c) Refocusing quality on only the production process. d) Replacing statistical techniques with benchmark roots for problem solving. e) Empowering employees. 69. According to W. Edward Deming, a well-managed organization is one in which: a) statistical control increases variability in production processes. b) statistical control reduces variability in production processes and also results in uniform quality and predictable level of production. c) most employees like their job. d) employees are paid at least the market wage rate. e) All of the above. 70. A Kaizen is the Japanese term for: a) a radical change in an organization. b) work process reengineering. c) a firm’s commitment to continuous improvement. d) empowering employees. e) intense focus on the customer. 71. Which of the following statements best compares continuous improvement and work process engineering? a) Continuous improvement asks, “How can we do it better?” Work process improvement asks, “Are we doing the right thing?” b) Continuous improvement has increased training requirements. Work process engineering has increased security requirements. c) Continuous improvement is effective in turbulent environments. Work process engineering is effective in stable organizational settings. d) Continuous improvement is used in the service sector. Work process engineering is used in the manufacturing sector. e) Continuous improvement decreases the number of employees in an organization. Work process engineering increases the number of employees in an organization. 72. Which type of organizational change may provide a false sense of security? a) Continuous improvement methods. b) Work process engineering. c) Horizontal alliances. d) Status quo. e) Lateral combinations. 73. Suppose you are the HR manager of an organization that has just adopted the philosophy of continuous improvement. You can support improvement programs in all of these ways except a) Provide clear and extensive communication regarding the organizational change. b) Help employees overcome barriers to change. c) Explain new performance expectations. d) Design jobs very narrowly to ensure that employees can specialize on a few tasks. e) Train employees to adapt to the new work arrangement 74. Which of the following provides the best description of work process engineering? a) A slow process of incremental change. b) An alternative to rapid technology transfer. c) An alternative to retraining a workforce. d) A focus on the whole work process. e) A safeguard for traditional work attitudes. 75. A major drawback of focusing on continuous improvements is that it: a) may prevent employers from making needed radical changes. b) works well for Japanese companies but not for companies. c) makes it difficult to discharge low-performing employees. d) usually requires the layoff of employees. e) requires the use of complicated statistical techniques. 76. Ivan is the vice-president of human resources for a large manufacturing organization involved in work process engineering. What kinds of training needs should he anticipate? a) New work procedures. b) Technology enhancements. c) Decision making. d) Working in teams. e) All of the above. 77. All of the following types of employees are considered contingent employees except a) part-time employees b) contract workers c) full-time temporary workers d) full-time long-term employees e) freelancers 78. Maurice is suing an organization, claiming that because he is an employee and not an independent contractor, the organization should have withheld taxes for him. All of these factors could be used to support his claim except a) He is allowed great flexibility in scheduling his work time. b) He received training on company policies and procedures. c) He receives no insurance or pension benefits. d) He is paid market rate for his services. e) He is reimbursed for travel. 79. Ruxandra Lopez is the vice-president for human resources of a major manufacturing company. She is thinking of increasing the proportion of contingent workers in the different plants. As a consultant, you advise Ruxandra that a major disadvantage associated with contingent workers is that: a) contingent workers are entitled to retirement benefits. b) contingent employees complain more than core employees. c) contingent workers may be less loyal and committed than core employees. d) contingent workers do not require extensive skill training before they become fully productive to an organization. e) contingent employees are usually less reliable than core employees. 80. HRM is often involved in all of the following for their contingent workers except a) Motivation. b) Locating temporary workers. c) Scheduling options to meet workers’ needs. d) Conflict resolution between contingent and core employees. e) Negotiating health care benefits. 81. HRM provides support in all of these areas to increase employee involvement except a) Delegation. b) Retirement planning. c) Work teams. d) Goal setting. e) Participative management. 82. Many of today’s companies emphasize: a) clear lines of authority. b) teamwork. c) bureaucratic organizational structures. d) a hierarchical chain of command. e) a centralized decision-making process. 83. How does group decision making empower a workforce? a) Employees have less input to work processes. b) Isolated workers are prone to fewer work conflicts. c) Employees have greater access to needed information. d) There is less stress due to new job skill requirements. e) Employees have the benefit of tried-and-true past decisions. 84. Which of the following is the best illustration of a work team? a) A one-man band. b) A football team that has separate players who specialize in offense, defense, and kickoff. c) A symphony orchestra with special sections for wind, percussion, and strings d) A surgical team of 3 nurses and 3 surgeons. e) Airline employees who may handle baggage today, check in customers tomorrow, or serve on the information desk. 85. Useful employee involvement requires: a) demonstrated leadership and supportive management. b) increased compensation, rather than extensive training. c) extensive training and increased compensation. d) clear decision making responsibility by upper management. e) greater precision in job descriptions. 86. Which of the following is not true regarding the employee involvement for HRM? a) Employees are expected to work in teams. b) Employees are expected to delegate. c) Employees are expected to withhold strategic information from co-workers. d) Employees need to be trained in all aspects of the job. e) Employees need training in interpersonal skills. 87. Ethics refers to: a) a set of rules or principles that defines what is legal and what is illegal. b) a set of rules or principles that defines right and wrong conduct. c) a situation in which decisions are made based on religious rules or principles d) a situation in which individuals make decisions based primarily on their best interest. e) a situation in which individuals act make decisions based primarily on the best interest of the most economically disadvantaged individuals 88. People who lack a strong moral sense are much less likely to do wrong if: a) the company has a code of ethics. b) they feel constrained by rules and strong cultural norms that discourage unethical behaviors. c) they attend a business ethics seminar. d) the company monitors their emails. e) the employer performs an integrity test during the selection process 89. Which of the following is NOT true regarding ethics in organizations? a) In recent years, ethics has become a major issue in organizations owing to corporate scandals such as Enron or WorldCom. b) Corporate scandals such as Enron and WorldCom have created a lack of trust in management. c) Companies that were in corporate scandals did not have codes of ethics. d) Codes of ethics are increasingly popular in organizations. e) A mission statement details an organization’s primary values and the ethical rules it expects managers and employees to follow. .