EXAM STUDY GUIDE QUESTIONS AND
SOLUTIONS 100 PERCENT CORRECT
VERIFIED ANSWERS
●● Rewards and incentives given to employees that are not financial in
nature
Answer: nonfinancial compensation
●● Creating new HRM initiatives to strengthen employees' ethical
awareness and company culture
Answer: strategic risk
●● HRM activities directly influencing the organization's success or
failure
Answer: operational risk
●● Reduction in the cost of hiring employees
Answer: financial risk
●● Thinking through legal ramifications of an employment-related
decision
Answer: compliance risk
,●● Common organizational strategies for international expansion
Answer: mergers and acquisitions
●● Reasons for failure in mergers and acquisitions
Answer: culture issues
●● Extremely important interaction between HR and employees
Answer: Communication
●● The four broad types of organizational culture
Answer: entrepreneurial, bureaucratic, consensual, competitive
●● Culture that leads to consistent excellence
Answer: Performance
●● Culture exemplified by Starbucks
Answer: people-oriented
●● Culture stifling innovation and risk taking
Answer: Bureaucratic
, ●● How HRM creates value within an organization
Answer: by making the company better at executing its strategy
●● Purpose of the organizational function of HRM
Answer: attract, hire, develop, reward, and retain talent
●● Planning ensuring availability of leaders within the organization
Answer: Succession
●● Aligning individual employees' goals with organizational goals
Answer: performance management
●● HRM function responsible for improving employee skills
Answer: Training
●● What staffing enables the organization to execute
Answer: business strategy
●● One of the most common aspects managed by HRM
Answer: Changes