CHAPTER 1—THE CHALLENGE OF HUMAN RESOURCES MANAGEMENT
TRUE/FALSE
1. In general, many companies are realizing diminished demand for "touch labor" and an increasing
demand for "knowledge workers."
ANS: T PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
2. Knowledge workers are employees whose responsibilities focus on problem solving.
ANS: F PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: U
3. A Human Resource Information System (HRIS) provides current and accurate data for control
and decision-making by managers.
ANS: T PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
4. To proactively manage change, organizations should wait to see how external forces impact an
organization's performance, then develop a plan to address those changes.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: U
5. The strategies companies are pursuing today increasingly involve one or more elements of
globalization.
ANS: T PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: K
6. A firm's ability to compete through people depends upon its ability to manage human capital.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: U
7. Human capital is owned by the organization and is part of the company's core competencies.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-3 TYPE: K
8. Companies are increasingly rotating non-HR managers into HR positions and vice versa to give
exposure to different areas of the organization.
ANS: T PTS: 1 REF: p. 8 OBJ: 1-8 TYPE: A
9. Proactive change is change that occurs when external forces have started affecting performance.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: U
,10. Human capital is intangible, but can still be managed the way organizations manage jobs,
products, and technologies.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-1 TYPE: U
11. Development of human capital is the responsibility of the HR group.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-1 TYPE: U
12. Total-quality management is a set of principles and practices whose core ideas include doing
things right the first time and striving for continuous improvement.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
13. To be successful, organizations should constantly seek to align their processes with customer
needs.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: U
14. 'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: U
15. Six Sigma is a set of principles and practices whose core ideas include doing things right the first
time and striving for continuous improvement.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: K
16. In absolute terms, the United States remains the world’s most productive nation, even when it
comes to manufacturing.
ANS: T PTS: 1 REF: p. 20 OBJ: 1-5 TYPE: K
17. Reengineering is a statistical method of translating customer needs into separate tasks and
defining the best way to perform each task.
ANS: F PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
18. Over the past twenty-five years, the employment relationship between companies and
employees has shifted from transaction based to relationship based.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: U
19. Labor costs are one of the largest expenditures of any organization.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
,20. Furloughing is a situation in which a firm asks an employee to take time off, but the employee is
still provided with full pay and benefits.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: K
21. Methods of reducing labor costs include downsizing, outsourcing, and employee leasing.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
22. Downsizing is often used by organizations for the planned elimination of jobs.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
23. Downsizing was used extensively by firms during the Great Recession of 2008, causing the U.S.
unemployment rate to jump up to about 10 percent.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
24. Technology, transportation, communications, and utilities industries tend to spend
the least on training.
ANS: F PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
25. Some organizations have instituted "No Layoff" policies to help preserve institutional memory
and worker productivity.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-5 TYPE: K
26. Outsourcing refers to employing workers in their homes rather than within the traditional office
environment.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: U
27. Offshoring greatly improves key competencies of a firm.
ANS: F PTS: 1 REF: p. 19 OBJ: 1-5 TYPE: K
28. Corporate social responsibility requires the organization to act in the best interests of the people
AND communities affected by its activities.
ANS: T PTS: 1 REF: p. 10 OBJ: 1-3 TYPE: U
29. Older workers have significantly higher training costs than younger workers.
ANS: F PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: K
, 30. Educational level is positively related to annual earnings.
ANS: T PTS: 1 REF: p. 26 OBJ: 1-7 TYPE: U
31. As many as half of all high school seniors are unable to handle basic math involving fractions,
decimals, and simple algebra.
ANS: T PTS: 1 REF: p. 26 OBJ: 1-7 TYPE: U
32. Women now account for slightly more than half of the American workforce.
ANS: F PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: K
33. By 2050, the percentage of Hispanics in the United States is expected to nearly triple, while
the percentage of people of Asian descent is expected to significantly decrease.
ANS: F PTS: 1 REF: p. 22 OBJ: 1-6 TYPE: U
34. Older workers are often willing to work flexible hours.
ANS: T PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: U
35. Employees today are less likely to define success in terms of financial gain.
ANS: T PTS: 1 REF: p. 28 OBJ: 1-7 TYPE: K
36. Family-friendly practices include offering flexible hours, telecommuting, and job sharing.
ANS: T PTS: 1 REF: p. 28 OBJ: 1-7 TYPE: U
37. One of the responsibilities of HR managers is to provide advice and counsel to line managers.
ANS: T PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: U
38. An HR manager is typically expected to function as an in-house consultant to supervisors,
managers, and executives.
ANS: T PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: K
39. Because HR managers function in an advisory role, they are responsible for issuing policy
revisions and implementing them.
ANS: F PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: A
TRUE/FALSE
1. In general, many companies are realizing diminished demand for "touch labor" and an increasing
demand for "knowledge workers."
ANS: T PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
2. Knowledge workers are employees whose responsibilities focus on problem solving.
ANS: F PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: U
3. A Human Resource Information System (HRIS) provides current and accurate data for control
and decision-making by managers.
ANS: T PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
4. To proactively manage change, organizations should wait to see how external forces impact an
organization's performance, then develop a plan to address those changes.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: U
5. The strategies companies are pursuing today increasingly involve one or more elements of
globalization.
ANS: T PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: K
6. A firm's ability to compete through people depends upon its ability to manage human capital.
ANS: T PTS: 1 REF: p. 4 OBJ: 1-1 TYPE: U
7. Human capital is owned by the organization and is part of the company's core competencies.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-3 TYPE: K
8. Companies are increasingly rotating non-HR managers into HR positions and vice versa to give
exposure to different areas of the organization.
ANS: T PTS: 1 REF: p. 8 OBJ: 1-8 TYPE: A
9. Proactive change is change that occurs when external forces have started affecting performance.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-2 TYPE: U
,10. Human capital is intangible, but can still be managed the way organizations manage jobs,
products, and technologies.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-1 TYPE: U
11. Development of human capital is the responsibility of the HR group.
ANS: F PTS: 1 REF: p. 5 OBJ: 1-1 TYPE: U
12. Total-quality management is a set of principles and practices whose core ideas include doing
things right the first time and striving for continuous improvement.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
13. To be successful, organizations should constantly seek to align their processes with customer
needs.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: U
14. 'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: U
15. Six Sigma is a set of principles and practices whose core ideas include doing things right the first
time and striving for continuous improvement.
ANS: F PTS: 1 REF: p. 8 OBJ: 1-1 TYPE: K
16. In absolute terms, the United States remains the world’s most productive nation, even when it
comes to manufacturing.
ANS: T PTS: 1 REF: p. 20 OBJ: 1-5 TYPE: K
17. Reengineering is a statistical method of translating customer needs into separate tasks and
defining the best way to perform each task.
ANS: F PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
18. Over the past twenty-five years, the employment relationship between companies and
employees has shifted from transaction based to relationship based.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: U
19. Labor costs are one of the largest expenditures of any organization.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
,20. Furloughing is a situation in which a firm asks an employee to take time off, but the employee is
still provided with full pay and benefits.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: K
21. Methods of reducing labor costs include downsizing, outsourcing, and employee leasing.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
22. Downsizing is often used by organizations for the planned elimination of jobs.
ANS: T PTS: 1 REF: p. 7 OBJ: 1-1 TYPE: K
23. Downsizing was used extensively by firms during the Great Recession of 2008, causing the U.S.
unemployment rate to jump up to about 10 percent.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-5 TYPE: K
24. Technology, transportation, communications, and utilities industries tend to spend
the least on training.
ANS: F PTS: 1 REF: p. 13 OBJ: 1-4 TYPE: K
25. Some organizations have instituted "No Layoff" policies to help preserve institutional memory
and worker productivity.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-5 TYPE: K
26. Outsourcing refers to employing workers in their homes rather than within the traditional office
environment.
ANS: F PTS: 1 REF: p. 18 OBJ: 1-5 TYPE: U
27. Offshoring greatly improves key competencies of a firm.
ANS: F PTS: 1 REF: p. 19 OBJ: 1-5 TYPE: K
28. Corporate social responsibility requires the organization to act in the best interests of the people
AND communities affected by its activities.
ANS: T PTS: 1 REF: p. 10 OBJ: 1-3 TYPE: U
29. Older workers have significantly higher training costs than younger workers.
ANS: F PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: K
, 30. Educational level is positively related to annual earnings.
ANS: T PTS: 1 REF: p. 26 OBJ: 1-7 TYPE: U
31. As many as half of all high school seniors are unable to handle basic math involving fractions,
decimals, and simple algebra.
ANS: T PTS: 1 REF: p. 26 OBJ: 1-7 TYPE: U
32. Women now account for slightly more than half of the American workforce.
ANS: F PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: K
33. By 2050, the percentage of Hispanics in the United States is expected to nearly triple, while
the percentage of people of Asian descent is expected to significantly decrease.
ANS: F PTS: 1 REF: p. 22 OBJ: 1-6 TYPE: U
34. Older workers are often willing to work flexible hours.
ANS: T PTS: 1 REF: p. 24 OBJ: 1-6 TYPE: U
35. Employees today are less likely to define success in terms of financial gain.
ANS: T PTS: 1 REF: p. 28 OBJ: 1-7 TYPE: K
36. Family-friendly practices include offering flexible hours, telecommuting, and job sharing.
ANS: T PTS: 1 REF: p. 28 OBJ: 1-7 TYPE: U
37. One of the responsibilities of HR managers is to provide advice and counsel to line managers.
ANS: T PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: U
38. An HR manager is typically expected to function as an in-house consultant to supervisors,
managers, and executives.
ANS: T PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: K
39. Because HR managers function in an advisory role, they are responsible for issuing policy
revisions and implementing them.
ANS: F PTS: 1 REF: p. 31 OBJ: 1-8 TYPE: A
