Chapter 1—The Nature Of Human Resource Management

Chapter 1—The Nature of Human Resource Management

MULTIPLE CHOICE

1. One of the first factors that increased the importance of human resource management was a. the 1964 Civil Rights Act. b. the worker revolution. c. technological advances in computers. d. the increase in manufacturing. e. the growth in the service sector. ANS: A PTS: 1 REF: p. 4 OBJ: 1.1 NAT: AACSB: diversity | AACSB: HRM TYP: knowledge

2. The human resource function in organizations today a. has grown into the role of strategic partner. b. does little beyond ensure compliance with labor regulations. c. is vital to the smooth operation of the business, but is not influenced by the organization's strategy. d. dominates the other functional areas and dictates strategy to the organization. e. is organized and managed very much as it has been for the last century. ANS: A PTS: 1 REF: p. 5-6 OBJ: 1.1 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

3. A large computer chip manufacturer has just hired another firm to perform its applicant background checks. Which of the following is likely part of this process? a. Theory Z b. Theory X c. Organizational culture d. Strategic organization e. Outsourcing ANS: E PTS: 1 REF: p. 6 OBJ: 1.2 NAT: AACSB: reflective thinking | AACSB: HRM TYP: apply

4. A small restaurant is concerned about increasing worker productivity and tries to better structure its jobs to maximize output and service delivery. The restaurant is likely using some of the principles discussed in a. downsizing. b. outsourcing. c. Theory X. d. scientific management. e. Theory Y. ANS: D PTS: 1 REF: p. 8 OBJ: 1.2 NAT: AACSB: reflective thinking | AACSB: motivation concepts TYP: apply

5. Early research determining that individual and group behavior was important to organizations involved the a. Hawthorne Studies. b. scientific management groups. c. total quality management investigations.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 d. use of employee testing. e. outsourcing studies. ANS: A PTS: 1 REF: p. 9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: motivation concepts TYP: comprehension

6. The basic notion of the human relations movement was that a. employees had to be intimidated to be motivated. b. technology was in decline. c. satisfied employees would work harder for the company. d. unions were a waste of time. e. group work must be avoided in companies. ANS: C PTS: 1 REF: p. 9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: motivation concepts TYP: knowledge

7. In the 1930s and 1940s, units within a company that dealt with employees' behavioral challenges and issues were called a. TQM groups. b. scientific administration. c. personnel departments. d. MBO operations. e. planning parties. ANS: C PTS: 1 REF: p. 9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: motivation concepts TYP: comprehension

8. During the 1950s and 1960s, all of the following developed within the field of human resource management EXCEPT a. selection tests from World War II were adapted for use in private industry. b. reward and incentive systems became more sophisticated. c. government legislation expanded, adding more complexity to human resource management. d. unions became more powerful and demanded more benefits for their members. e. the human resource management function was recognized as being critically important to organizational success. ANS: E PTS: 1 REF: p. 9-10 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

9. The 1964 Civil Rights Act made it illegal for corporate managers to make decisions based on all of the following EXCEPT a. gender. b. age. c. religion. d. race. e. national origin. ANS: B PTS: 1 REF: p. 10 OBJ: 1.2 NAT: AACSB: analytic | AACSB: legal responsibilities TYP: knowledge

10. ____ include all individuals who gain knowledge and utilize the information effectively to enhance the organization. a. Group members b. Recruiting teams

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 c. Selection specialists d. Knowledge workers e. Training networks ANS: D PTS: 1 REF: p. 11 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

11. A human resource management system integrates which of the following functions? a. finance function b. operations function c. marketing function d. other fundamental organizational functions e. all of these ANS: E PTS: 1 REF: p. 18 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

12. All of the following researchers contributed to the early growth of the human resource function EXCEPT: a. Elton Mayo b. Frederick Taylor c. Douglas McGregor d. Thomas Edison e. Abraham Maslow ANS: D PTS: 1 REF: p. 7-9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

13. Which of the following is NOT one of the four basic goals of the human resource management function as discussed in the text? a. Helping the global economy b. Promoting individual growth and development c. Complying with legal and social obligations d. Enhancing productivity and quality e. Facilitating organizational competitiveness ANS: A PTS: 1 REF: p. 12 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

14. Which of the following activities MOST directly relates to the basic HRM goal of facilitating organizational competitiveness? a. Developing a strategic perspective to human resource management that satisfies goals and objectives b. Investing in employee training that enhances productivity c. Complying with government regulations d. Designing "outreach" programs to attract minority job applicants e. Developing formal mentoring programs to help women and minorities advance in the organization ANS: A PTS: 1 REF: p. 13 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

15. Genevieve, a human resource staff member, has the task of investigating employee complaints about civil rights violations at work. Which of the goals of HR management is Genevieve working on? a. Facilitating organizational competitiveness

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 b. Complying with legal and social obligations c. Promoting individual growth and development d. Enhancing productivity and quality e. Recruiting sufficient workers to meet demand ANS: B PTS: 1 REF: p. 14 OBJ: 1.3 NAT: AACSB: reflective thinking | AACSB: HRM TYP: apply

16. Adam is a project manager in the human resources department of Intel, the U.S. semiconductor manufacturer. Adam says, "I work on issues ranging from dependent care to work/life benefits. I work with employees to better understand their needs and to help design programs for them." Which of the fundamental goals of HR management is Adam working on? a. Complying with legal and social obligations b. Controlling costs c. Facilitating organizational competitiveness d. Enhancing productivity and quality e. Promoting individual growth and development ANS: E PTS: 1 REF: p. 15 OBJ: 1.3 NAT: AACSB: reflective thinking | AACSB: HRM TYP: apply

17. Which of the following would typically be considered a staff, rather than a line, manager? a. Human resource manager b. Operations manager c. Financial manager d. Marketing manager e. Sales manager ANS: A PTS: 1 REF: p. 16 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

18. HR activities are typically carried out by a. line managers. b. staff managers. c. neither line nor staff managers. d. both line and staff managers. e. executive team members only. ANS: D PTS: 1 REF: p. 16 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

19. The goals of human resource management typically include all of the following activities EXCEPT a. facilitating organizational competitiveness. b. enhancing productivity and quality. c. complying with legal and social obligations. d. promoting individual growth and development. e. overseeing financial reporting as part of the Sarbanes-Oxley Act. ANS: E PTS: 1 REF: p. 12 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

20. The managers who are directly involved in creating goods and service are known as a. HR managers. b. staff managers. c. line managers.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 d. chief executive managers. e. executive team managers. ANS: D PTS: 1 REF: p. 16 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

21. Who would typically have responsibility for carrying out human resource activities in a small, independent business? a. The human resource manager b. The owner or general manager c. A human resource specialist d. An operating manager e. A secretary or an administrative assistant ANS: B PTS: 1 REF: p. 16-17 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

22. Which of the following is NOT a specific requirement for being a successful human resource manager? a. An understanding of the legal environment b. General management skills and abilities c. Fundamental understanding of other functional areas d. A degree in human resource management e. Knowledge of business and corporate strategy ANS: D PTS: 1 REF: p. 19-20 OBJ: 1.5 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

23. A ____ involves the set of expectations about the exchanges that occur between employees and employers. a. knowledge worker b. cost-benefit analysis c. human relations movement d. downsizing e. psychological contract ANS: E PTS: 1 REF: p. 15 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

24. A sporting goods retail company hires another firm to manage all of its payroll functions. This process is known as: a. HRIS b. Theory X c. Theory Y d. professional accreditation e. outsourcing ANS: E PTS: 1 REF: p. 6 OBJ: 1.1 NAT: AACSB: reflective thinking | AACSB: HRM TYP: apply

25. As the human resource field becomes more professional, more HR managers are acquiring the Human Resource Certification Institute (HRCI) credential. Which organization was instrumental in establishing that credential? a. The U.S. Department of Labor b. Certified Public Accountant (CPA)

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 c. The Society for Human Resource Management (SHRM) d. The National Labor Relations Board e. No single organization was instrumental. Colleges and universities established the HRCI. ANS: C PTS: 1 REF: p. 20 OBJ: 1.5 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

26. The modern term used to describe the management of people is a. administrative synthesis. b. compliance management. c. strategic formulation. d. personnel management. e. human resource management. ANS: E PTS: 1 REF: p. 6 OBJ: 1.1 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

27. Both the military and its suppliers became more interested person-job matching during a. the Civil War. b. World War I. c. World War II d. the Vietnam War. e. the Korean War. ANS: C PTS: 1 REF: p. 9-10 OBJ: 1.2 NAT: AACSB: analytic | AACSB: motivation concepts TYP: knowledge

28. The HRCI offers several certifications, including all of the following EXCEPT the a. PHR b. SPHR c. GPHR d. UPHR e. all of these are certifications offered by the HRCI ANS: D PTS: 1 REF: p. 20 OBJ: 1.5 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

29. The widespread use of ____ has affected how HR systems are delivered. a. line managers b. staff managers c. executive teams d. electronic technology e. person-job fit principles ANS: D PTS: 1 REF: p. 10 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

30. Following the requirements of the American Disabilities Act falls under which particular goals of HR? a. facilitating organizational competitiveness. b. enhancing productivity and quality. c. complying with legal and social obligations. d. promoting individual growth and development. e. none of these ANS: C PTS: 1 REF: p. 14 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Scenario 1.1 A-OK Company, an insurance company of 200 employees, provides life and automobile insurance to clients throughout the southwestern United States. The company's owner, Paul E. See, believes that happy employees are productive employees, so Mr. See provides employees services such as career planning and an on-site fitness center. Due to recent legislation making the insurance business more complex, A-OK is in the process of redesigning its training program for its sales agents. Mr. See also realizes that A-OK needs to examine its selection criteria for new agents joining the company and may need to increase salaries to attract needed talent. Mr. See is worried about this, because he knows that none of his managers has a human resource management degree. In fact, they were operating employees who were moved into the human resource function.

31. Refer to Scenario 1.1. Mr. See appears to be influenced by which era of management? a. the Hawthorne era b. Theory X/Y era c. human relations era d. scientific management era e. production era ANS: C PTS: 1 REF: p. 9 OBJ: 1.2 NAT: AACSB: reflective thinking | AACSB: HRM TYP: analyze

32. Refer to Scenario 1.1. In recognizing that training, selection, and compensation procedures are all interrelated, Mr. See recognizes human resource management as a a. system. b. strategic resource. c. center of expertise. d. core decision process. e. network. ANS: A PTS: 1 REF: p. 17 OBJ: 1.4 NAT: AACSB: reflective thinking | AACSB: HRM TYP: analyze

33. Refer to Scenario 1.1. The career planning and fitness programs provided to A-OK employees help fulfill which fundamental goal of human resource management? a. Complying with legal obligations b. Complying with social obligations c. Enhancing productivity and quality d. Promoting individual growth and development e. Facilitating organizational competitiveness ANS: D PTS: 1 REF: p. 15 OBJ: 1.3 NAT: AACSB: reflective thinking | AACSB: HRM TYP: analyze

34. Refer to Scenario 1.1. Who is likely to be responsible for the human resource management function in an organization of this size? a. A full-time human resource manager b. Mr. See c. The sales manager d. The operations manager e. An administrative assistant ANS: A PTS: 1 REF: p. 16-17 OBJ: 1.4 NAT: AACSB: reflective thinking | AACSB: HRM TYP: analyze

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 35. Refer to Scenario 1.1. Should Mr. See be worried about the ability of his human resource staff to effectively cope with the changes that are needed in that function? a. Yes. Without a specialized degree, HR staffs are sure to violate legal requirements of human resource management. b. Yes. No staff could cope with all of the changes that Mr. See envisions in the immediate future for his HR function. c. Yes. Without many years of experience in HR exclusively, Mr. See's staff will be out of touch with the needs of his workers. d. No. These changes will be made quite easily and simply, and do not need much attention to planning or expert knowledge. e. No. Job experience is a good preparation for much HR work. ANS: E PTS: 1 REF: p. 19 OBJ: 1.5 NAT: AACSB: reflective thinking | AACSB: HRM TYP: analyze

TRUE/FALSE

36. The realization that human resource management was an important field was spearheaded by the passing of the Rollins-Robinson Act.

ANS: F PTS: 1 REF: p. 4 OBJ: 1.1 NAT: AACSB: diversity | AACSB: HRM TYP: knowledge

37. The human resource function in organizations today is viewed as a key activity that can enhance the bottom line.

ANS: T PTS: 1 REF: p. 5-6 OBJ: 1.1 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

38. Outsourcing has caused a dramatic increase in the size of HR departments.

ANS: F PTS: 1 REF: p. 6 OBJ: 1.1 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

39. Scientific management focused on increasing efficiency and productivity.

ANS: T PTS: 1 REF: p. 8 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

40. Theory X and Theory Y were principles developed by Elton Mayo.

ANS: F PTS: 1 REF: p. 9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

41. The widespread use of the Internet has affected the basic approach to how human resources are managed.

42. Scientists and lawyers are considered to be knowledge workers.

ANS: T PTS: 1 REF: p. 11 OBJ: 1.2

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 NAT: AACSB: analytic | AACSB: HRM TYP: knowledge

43. Designing jobs that are more challenging and satisfying is part of a company's HR compliance with legal obligations.

ANS: F PTS: 1 REF: p. 15 OBJ: 1.3 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

44. Utility analysis attempts to measure the effectiveness of different HR approaches.

ANS: T PTS: 1 REF: p. 19 OBJ: 1.4 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

45. In order to take the PHR, SPHR, or GPHR certification exams, an individual must have at least 10 years of professional experience.

SHORT ANSWER

46. Contrast scientific management and the human relations movement in terms of their focus on employees and their behaviors.

ANS: Scientific management is concerned with how to structure individual jobs to maximize efficiency and productivity. Time and motion studies, for example, examined every motion a worker made in order to find changes in movement or in equipment that could increase productivity. No attention was given to worker behaviors other than overt physical behaviors. The human relations movement, in response to the Hawthorne studies, began focusing on understanding the human character of employees. Research began to reveal that individual and group behavior played an important role in organizations through attitudes, group norms, and motivation.

PTS: 1 REF: p. 7-9 OBJ: 1.2 NAT: AACSB: analytic | AACSB: HRM TYP: comprehension

47. What is meant by a "human resource management system," and how does this relate to the concept of an organization as a system?

ANS: A human resource management system is an integrated and interrelated approach to managing human resources that fully recognizes the interdependence among the various tasks and functions that must be performed. Every element of the human resource management system must be designed and implemented so that full integration with the various other elements can be performed. The human resource management system may be seen as a subsystem of the complete organizational system. The human resource management subsystem both affects and is affected by the other functional subsystems throughout the organization.

48. What are the important goals of human resource management? For each goal, give two examples of specific HR actions or techniques that organizations can use to obtain that goal.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 ANS: (1) Facilitating organizational competitiveness means providing support to help the organization achieve its strategic goals. Human resource managers will ensure that the organization hires the right number and type of workers, and they will help to control compensation costs, as part of achieving this goal. (2) Enhancing productivity and quality can be accomplished through effective training and appropriate motivational rewards. Both of these are the responsibility of the HR function. (3) Complying with legal and social obligations is carried out by HR departments when they monitor such items as work hours and overtime pay and when they ensure that the organization's hiring is nondiscriminatory. (4) Promoting individual growth and development could take the form of broad- based training such as teaching fundamental math skills to operating employees, or it could consist of wellness and other programs to enhance the quality of work life.

49. How does achievement of the other three goals (enhancing productivity and quality, complying with legal and social obligations, and promoting individual growth and development) aid an organization in accomplishing the goal of facilitating organizational competitiveness? How would failure to achieve these goals hinder organizational competitiveness?

ANS: This question highlights the interrelated nature of these goals. When an organization has high productivity and quality, its production volume is sufficient to satisfy demand and its products are of sufficiently high quality, reducing costs and increasing sales. Low costs and high sales help an organization to achieve its profit-making goals. When organizations comply with legal and social obligations, they avoid lawsuits, easily attract and retain qualified workers, and enjoy a good reputation with local communities. All of these lead to high profits in the long run. When an organization promotes the individual growth and development of its workers, workers are healthier, more satisfied, and likely to be more productive at lower cost to the firm. Thus, this goal also works to increase profits. In addition, these goals all help an organization to achieve nonfinancial goals. If an organization failed to have high productivity and quality, if it did not comply with legal and social obligations, or if it did not promote individual growth and development, it is very unlikely that it could be competitive.

50. What is the difference between a line manager and a staff manager, and how would a human resource manager typically be classified?

ANS: Line managers are those directly responsible for creating goods and services, and their contributions to the organization can be directly assessed only in terms of their actual contributions and costs to the organization's bottom line. Operations managers, financial managers, and marketing managers, for example, are considered line managers. Staff managers are those responsible for an indirect or support function that has costs, but the bottom-line contributions are less direct. Their role is to support line management's efforts to achieve organizational goals and objectives. Human resources, legal, and accounting departments are usually considered staff functions.