File: Ch02, CHAPTER 2, Fundamentals of Strategic HRM /FALSE 1. The primary functions of management are primarily planning and controlling. False. Planning, Organizing, Leading, and controlling. 2. HRM is a part of the larger field of management. True. 3. Prior to the mid-1960’s, personnel departments in organizations were primarily involved in planning company picnics, scheduling vacations, enrolling workers for health-care coverage, and planning retirement parties. True. 4. The Wagner Act of 1935 outlawed unions in organizations. False. Made legal or legitimized 5. HRM activities are mildly affected by what occurs outside the organization. True. 6. Frederick Taylor is often regarded as the father of scientific management. True. 7. Labor unions promote grievance procedures to resolve differences between workers and management. True. 8. The goal of recruiting is to give enough information about the job to attract a large number of qualified applicants and simultaneously discourage unqualified candidates from applying. True 9.The maintenance function is used to provide motivation in most technology based organizations. False. Put into place activities that will help retain productive employees, help maintain loyalty. 10.Compensation and benefits managers are the lowest paid HR professionals. False. Employee benefits administrator 11.Interpersonal communication skills has no influence on advancement in an HR career. False. The most important 12. Sharing HRM activities among geographically dispersed divisions is called outsourcing. True 13. The Sarbanes-Oxley Act establishes procedures for public companies regarding how they handle and report their financial picture. True. 14. Of all of the functions of an organization that may be outsourced, HR is one function that cannot. False. 53% of all companies outsource some portion of the HR functions. 15. Shared services centers are one way to make HR functions more cost-efficient and responsive to the organizational strategy. True. MATCHING TERMS DEFINITIONS 16. Activities in HRM concerned with seeking and hiring qualified employees. Staffing Function 17. A primary management function focusing on determining what activities need to be completed to accomplish organizational goals Organizing 18. A primary management function ensuring that the right people are on the job with appropriate skills, and motivating them to high levels of performance Leading 19. A primary management function that consists of monitoring activities to ensure that organizational goals are achieved. Controlling 20. Acts on behalf of its members to secure wages, hours, and other terms and conditions of employment. Labor Unions 21. A set of principles designed to enhance worker productivity. Scientific management 22. Activities in HRM concerned with helping employees exert at high energy levels. Motivation function 23. Activities in HRM concerned with assisting employees to develop up-to-date skills, knowledge, and abilities. Training and development function 24. Activities in HRM concerned with effective communications among organizational members Employee relations function 25. HRM function concerned with paying employees and administering the benefits package. Compensation and benefits 26. HRM programs designed to provide information to employees. Communication programs 27. A primary management function that consists of establishing organizational goals. Planning 28. Activities in HRM concerned with employee commitment and loyalty to the organization. Maintenance function 29. A series of studies conducted at a plant of Western Electric in the 1920s and 1930s that provided new insights into group behavior. Hawthorn studies 30. Sharing HRM activities among geographically dispersed divisions. Shared services 31. The process of efficiently completing activities with and through people. Management 32. Aligning HR policies and decisions with the organizational strategy and mission. Strategic human resource management FILL-IN-THE BLANKS 33. _Management_ are those who work with and through people, allocating resources in the effort to achieve goals. 34. HRM is a _staff or supported_ function that provides assistance in HRM matters to line employees or those directly involved in producing the organization’s goods and services. 35. The term, “Human Resource Management,” denotes a more professional and sophisticated role than the term, “ _someones_.” 36. External HRM influences are categorized into the general areas of the dynamic environment, _laws_ and __regulation__, labor unions, and current management practice. 37. The _Hawthorne studies_ paved the way for the human relations movement. 38. __Unions_ act on behalf of their members to negotiate work hours and wage rates. 39. _Career Development Programs_ are designed to assist employees in advancing their work lives. 40. Job performance is a function of the employee’s ability and _willingness_ to do the work. 41. The main thrust of the employment function is to promote staffing activities. 42. _employee development_ is designed to help the organization ensure that it has the necessary talent internally for meeting future human resource needs. 43. A _professional employer organization_ is a company that assumes all HR functions of a client company by hiring all of its employees and leasing them back to the company. 44. The HR _Specialist__ is typically concerned with only one of the four functions of HR. MULTIPLE – CHOICE 45. The primary functions of management are a) planning, organizing, adapting, and measuring b) planning, organizing, leading, and adapting c) planning, organizing, leading, and controlling d) planning, leading, controlling, and adapting e) planning, leading, adapting, and improvising 46. Which of the following statements best describes the role of managers? a) The role of managers is to set organizational goals. b) The role of managers is to work with and through other people, allocating resources, in the effort to achieve organizational goals. c) The role of managers is to monitor activities and employees to ensure that organizational goals are met. d) The role of managers is to reward and punish employees to ensure that organizational goals are met. e) The role of managers is to delegate responsibilities and ensure that organizational goals are met. 47. The Vice-President of Human Resources starts her staff meeting with, “The work process engineering we implemented last year was a good start. We need to overhaul four of the other production areas within the next 18 months. What do you think are reasonable goals and objectives, based on last year’s work?” She is performing the management function of a) planning. b) leading. c) organizing. d) controlling. e) relating. 48. Which of the following is true regarding the achievement of organizational objectives? a) Any effort to achieve organizational objectives has three elements in common: goals, people, and leadership. b) Any effort to achieve organizational objectives has three elements in common: goals, scarce resources, and leadership. c) Any effort to achieve organizational objectives has three elements in common: goals, people, and leadership. d) Any effort to achieve organizational objectives has three elements in common: goals, limited resources, and people. e) Any effort to achieve organizational objectives has three elements in common: goals, scarce resources, and technological edge. 49. Kathy is a manager in a toy store. She is screening and evaluating resumes for a sales associate position in her store. She is very concerned that the new sales associate will have the appropriate skills for the job. The primary management function indicated is a) planning. b) organizing. c) leading. d) controlling. e) delegating. 50. Employee relations are part of which primary HRM activity? a) Global assessment. b) Motivation. c) Staffing. d) Training and development e) Maintenance. 51. All of the following are within the primary HRM functions except a) meeting federal guidelines for employment practices. b) hiring the best qualified candidates. c) establishing working conditions that are conducive to retaining the best workers. d) setting production standards. e) training employees to function effectively within the organization. 52. David conducts new employee orientation for a large organization. His work is within which basic HRM function? a) Training and development. b) Work process engineering. c) Motivation. d) Career management. e) Staffing. 53. You have been offered a job by a major manufacturer as a campus recruiter for technology positions. Your work will be in which HRM function? a) Training and development. b) Maintenance. c) Motivation. d) Career management. e) Staffing. 54. Joan is an HRM professional whose primarily involved in the motivation function. As such, she may perform all of these activities except a) employee benefits. b) health and safety. c) job design. d) performance appraisals. e) rewards and compensation. 55. Which of the following is not true regarding changes the U.S. workplace over the last 35 years? a) There has been a reduction in the number of federal and state laws regarding hiring and employment practices. b) Jobs have become more technical and require employees with more knowledge and skills c) Teamwork has become more prevalent. d) The number of employees working from home has increased. e) Job boundaries are becoming more blurred. 56. Which of the following is not a responsibility of human resource professionals? a) Train employees to improve their productivity. b) Design a work environment conducive to employee retention. c) Manage the professional development of each employee. d) Attract the best qualified employees. e) Improve the well-being of employees by closely monitoring their personal and family life. 57. To assist the organization in its strategic direction, which of the following must HRM not do? a) Attract and retain the most qualified employees b) Be forward thinking c) Take the lead regarding the “people” dimension of the organization d) Support the business strategy e) Only react to the decisions made by top managers 58. David is a human resource professional who is currently working with line managers to reward those employees who are creative and innovative. David’s work is aligning HR strategy with which organizational strategy? a) Cost differentiation b) Customer intimacy c) Customer/Market focus d) Product differentiation e) Motivation 59. An effective HRM communications program should have all of the following elements except a) top management commitment. b) an effective upward communication mechanism. c) a way to determine what to communicate. d) a way to allow for feedback. e) no lower-level employee involvement. 60. Tom accepted an overseas assignment from his employer, however, after 30 days, he and his family were disgruntled. This most likely occurred because HR failed to a) make arrangements for the family pet to join Tom and his family members overseas. b) involve both Tom and his entire family in the relocation and orientation process prior to departure. c) change Tom’s compensation and benefits to match those of other employees in the new location. d) provide return airline tickets to Tom and his family. e) none of the above. 61. The following legislation raises the mandatory retirement age from 65 to 70; uncapped in 1986. a) Immigration Reform and Control Act b) Employee Retirement Income and Security Act c) Mandatory Retirement Act d) Age Discrimination in Employment Act e) Civil Rights Act 62. Jonathan, a VP for Human Resources, is evaluating the extent to which the hiring and employment practices in his organization are in compliance with federal and state laws. Which type of external influences that impact HRM is Jonathan is considering? a) Workforce diversity b) Community relations c) Laws and regulations d) Ethics e) Labor unions 63. Kai, a human resources manager in a service organization, has rewritten the policies and procedures manual and all job descriptions to remove any idioms, and arranged for translations into six languages. This is an example of which part of the dynamic environment of HRM? a) Employee involvement. b) Technology. c) Inception. d) Labor unions. e) Workforce diversity. 64. All of the following are examples of the HRM dynamic environment except a) compensation b) ethics c) work process engineering d) globalization e) decentralized work sites 65. The nearly decade study that gave rise to what is today called the human relations movement was the_____________ studies. a) Hawthorne b) Longfellow c) Mayo d) Emerson e) Paulson 66. The Hawthorne studies were the work of a) John Hawthorne. b) Elton Mayo. c) Hugo Munsterberg. d) Frederick Taylor. e) Mary Parker Follet. 67. Who is considered the father of scientific management? a) Frederick Taylor b) Hugo Munsterberg c) Mary Parker Follet d) Tom Peters e) Elton Mayo 68. Which of the following early management theorists suggested improved methods of employment testing, training, performance evaluations, and job efficiency? a) Frederic Taylor b) Hugo Munsterberg c) Mary Parker Follet d) Tom Peters e) Elton Mayo 69.__________ was an early management theorist and social philosopher who advocated people-oriented organizations a) Frederic Taylor b) Hugo Munsterberg c) Mary Parker Follet d) Tom Peters e) Elton Mayo 70. Which of the following is not true? a) Labor unions exist to assist workers with the management of an organization. b) Labor unions act on behalf of their members to secure wages, hours, and other terms and conditions of employment. c) Labor unions promote and foster grievance procedure. d) When a union is present, the employer can fire employees for unjustified reasons. e) When a union is present, HRM practices are spelled out in a negotiated agreement. 71. Unions assist workers in dealing with the management of an organization in all of these ways except a) they work to negotiate better retirement packages. b) they work to establish good pay rates for members. c) they constrain management from making unilateral decisions. d) they have the final say in supervisor selection. e) they work for plant safety improvements. 72. Which of the following is not an external influence that affects HRM? a) Labor unions b) Laws and regulations c) Job design d) The dynamic environment e) Current management practice. 73. Which critical aspect of unions may keep management from making unilateral decisions? a) Work teams. b) Spillover effect. c) Alliance networks. d) Grievance procedures. e) Globalization. 74. Why would workers in a modern organization unionize? a) To get more retirement benefits. b) To limit the grievance procedure process. c) To decide new plant locations. d) To increase executive compensation packages. e) To encourage unilateral decision making. 75. Which of these activities ends the staffing function? a) Recruiting. b) Selection. c) Interview. d) Qualifications defined. e) Career development. 76. Dion, an HR manager, knows there is trouble in the staffing function for which of these reasons? a) There are a large number of minority applicants. b) Most applicants are successful on the job. c) Retention of new employees is well above the industry average. d) There are a large number of qualified applicants. e) There are a large number of unqualified applicants. 77. The goal of ____________is to have competent, adapted employees who possess up-to-date skills, knowledge, and abilities to perform their current jobs more successfully. a) training and development. b) employee training. c) empowerment training. d) work process development. e) organization development. 78. Which of these training and development functions is designed to provide better skills for the current job? a) Career development b) Employee development c) Employee training d) Organization development e) Skill qualification 79. Which of the following describes the employee development function? a) Providing technological support for all employees. b) Ensuring that the organization has the necessary talent internally for meeting future human resource needs. c) Assisting employees in acquiring better skills for their current job d) Assisting employees in advancing their work lives. e) Facilitating system-wide changes in the organization. 80. Which of the following describes the organization development function? a) Providing technological support for all employees. b) Ensuring that the organization has the necessary talent internally for meeting future human resource needs. c) Assisting employees in acquiring better skills for their current job d) Assisting employees in advancing their work lives. e) Facilitating system-wide changes in the organization. 81. Which of the following describes the career development function? a) Providing technological support for all employees. b) Ensuring that the organization has the necessary talent internally for meeting future human resource needs. c) Assisting employees in acquiring better skills for their current job d) Assisting employees in advancing their work lives. e) Facilitating system-wide changes in the organization. 82. Employee motivation can be increased by all of the following except a) maintaining a level of respect between employees and management. b) involving employees in decisions which affect them. c) listening to employees. d) implementing employee suggestions where appropriate. e) improving the lounge and cafeteria areas. 83. Which of the following is not true regarding the maintenance function? a) Maintaining employees’ commitment to the organization. b) Keeping employees well-informed about what is going on around them. c) Ensuring a safe and healthy work environment. d) Ensuring that the employees have the appropriate skills and abilities to perform their job. e) Helping employees exert at high energy levels 84. Jon, the manager of a technology firm, has become aware that many of his employees, once highly productive, are making mistakes due to the stress of work/home balance and the influence of illegal substances. He comes to you, HR manager, for suggestions. What do you tell him? a) Discuss job redesign options. b) Encourage mandatory drug testing as part of the hiring process. c) Refer these employees to the employee assistance programs available for these situations. d) Change job qualification specifications. e) Transfer the employees to another department. Give him the transfer forms. 85. An employee relations specialist would be involved in which of these activities? a) Working with position control specialists in compensation. b) Ensure policies and procedures are enforced properly. c) Making the job offer. d) Benefits administration. e) Conducting the initial interview. 86. Olga is an employment manager whose goal is to get qualified persons into the right job. This activity is better known as _______. a) Salary planning b) Communication programs c) Benefits. d) Recruiting e) Career development. 87. Sofia graduated from your college about 10 years ago with an HRM degree. She has developed job analysis and job evaluation materials for three different organizations. She is well suited for which senior HRM position? a) Compensation and benefits manager b) Employee relations manager c) Labor relations manager d) Training and development manager e) Employment manager 88. Jamal, a plant manager in a medium-sized nonunion manufacturing firm, has just “wasted” another day answering employee complaints and questions about the change from a production focus to a customer demand focus that the company launched last year. He heads home with a briefcase full of the work he had scheduled to do. He wonders if HRM can help, and scans his company phone book. Whom should he call? a) Tom, employment manager. b) Don, employee relations manager. c) Myrtle, compensation and benefits manager. d) Mason, training and development manager. e) Sheila, union grievance avoidance specialist. 89. What were the major findings of the Watson Wyatt Human Capital Index study? a) Most major HRM practices are merely fads. b) Potential HRM benefits are overshadowed by production costs. c) A fully functioning HR department makes a significant financial contribution to an organization. d) Small businesses utilize HRM resources better than large organizations. e) HRM has no link to shareholder return. 90. A large manufacturing organization uses several consulting firms to provide training programs, private staffing agencies to perform recruiting and selection activities, and a financial organization to handle benefits administration. This situation is an example of a) outsourcing. b) shared services. c) decentralized work surveillance. d) telecommuting. offshoring. 91. A large manufacturing organization, with 20 geographically dispersed production facilities recently cut its HRM staff by 60%. Each site has a few generalists, but specialist needs in recruiting and selection planning, employment law, training, and benefits administration have been consolidated into one location. This situation is an example of a) outsourcing. b) shared services. c) decentralized work surveillance. d) telecommuting. e) offshoring. 92. How has Sarbanes-Oxley affected HRM? a) HRM now monitors financial reporting to shareholders. b) HRM must coordinate visas, work visas and travel arrangements. c) HRM now supervises executive loans. d) HRM must certify financial reports. e) HRM must create the environment where whistleblowers can come forward without fear of reprisal. 93. Which of the following is not true regarding HRM in small business operations? a) The owner-manager is often responsible for performing HRM activities. b) Small-business human resource departments are sometimes staffed with a full-time secretary. c) The owner-manager does not have to keep current with respect to legal issues because of the small size of the business. d) Small-business human resource departments are often staffed with one individual. e) Small-business human resource departments must achieve the same goals that a larger department achieves.