Name: Class: Date:
Chapter 1 - The World of Human Resources Management
1. XYZ Inc., a new manufacturing company, wants to build its human capital base. Which of the following staffing
programs should it rely upon?
a. identifying and hiring cheap sources of qualified labour in order to fill front-line positions quickly
b. identifying and hiring individuals with highly specialized skills who can train others in the organization
c. identifying college graduates with the requisite skills who can be promoted to management positions quickly
d. identifying and hiring the best and brightest individuals
ANSWER: d
2. Which of the following is an increasing source of success for organizations?
a. the knowledge, skills, and abilities of its top executives
b. the knowledge, skills, and abilities of its employees
c. the proper management of the knowledge, skills, and abilities of its employees
d. the knowledge, skills, and abilities of HR professionals
ANSWER: b
3. ABC Corporation wants to expand on its markets in its new strategic plan. The plan covers the use of key resources
available to the firm, including technology, people, and access to capital. Which of the following would be a critical
human capital component of the plan?
a. capital investments
b. employees’ skills
c. new markets
d. updated technology
ANSWER: b
4. Dave Ulrich, a professor of management, is quoted as saying that, in terms of learning and development: “Learning
capability is g times g….” What does this mean?
a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill
b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and benefits
c. an organization’s grand image and brand multiplied by its goodwill
d. an organization’s ability to generate new ideas multiplied by its adeptness at generalizing them throughout the
company
ANSWER: d
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,Name: Class: Date:
Chapter 1 - The World of Human Resources Management
5. Many prospective employees are interested in obtaining a job where they can learn new skills and improve existing
skills. What type of organization would be the most attractive to such candidates?
a. an organization that provides many formal training programs that are not easily transferable to other
organizations
b. an organization that provides many formal training programs that are very easily transferred to any job the
applicant might want to apply for later in his or her career
c. an organization that provides mentorship programs where employees attempt challenging situations under the
guidance of experienced senior staffers
d. an organization that provides “grow and learn” sessions where classroom sessions are backed up by on-the-
job training
ANSWER: c
6. Why does effective management of human resources provide a firm with competitive advantage?
a. because it is financially cheaper to acquire people versus other resources
b. because people help to accelerate the use of technology
c. because it is difficult to replicate how we manage people in organizations
d. because it is easier to manage people versus other resources
ANSWER: c
7. HRM plays an important role in organizations by balancing the sometimes competing demands of which of the
following?
a. competitive challenges and employee concerns
b. international challenges and employee concerns
c. employee concerns and employer challenges
d. competitive and employee challenges
ANSWER: a
8. Approximately what percentage of the Canadian economy is affected by global competition?
a. 70-85%
b. 60-75%
c. 50-65%
d. 40-55%
ANSWER: a
9. Which of the following is NOT a key benefit of corporate social responsibility?
a. avoiding lawsuits
b. improving earnings
c. attracting more applicants
d. improving pay for employees
ANSWER: d
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,Name: Class: Date:
Chapter 1 - The World of Human Resources Management
10. In today’s highly competitive environment, managing organizational change has become which of the following?
a. a core competency of the organization
b. a product of globalization and technological advancement
c. a proactive method of downsizing
d. the preferred method of reacting to a decrease in organizational performance
ANSWER: a
11. What was the first major trade agreement of the twentieth century to establish rules and guidelines for global
commerce?
a. NAFTA (North American Free Trade Agreement)
b. GATT (General Agreement on Tariffs and Trade)
c. FTAA (Free Trade Area of the Americas)
d. APEC (Asia Pacific Economic Cooperation)
ANSWER: b
12. Company A has decided to hire someone outside the company to perform tasks that could be done internally. What is
this practice called?
a. contracting
b. outplacement
c. employee leasing
d. outsourcing
ANSWER: d
13. Which organization has the BEST chance of implementing a successful change initiative?
a. one that has ensured the employees are not overburdened with work relating to the change and have time to
focus on their jobs
b. one that has been very positive and relaxed throughout, ensuring not to establish a sense of urgency and
always reporting positive effects
c. one that has ensured good news is shared and the change victory is celebrated as soon as some indicators
appear positive
d. one that has ensured the changes are aligned with the organizational culture in important ways
ANSWER: d
14. The importance of Six Sigma to HR extends to all of the following EXCEPT which one?
a. performance management
b. employee benefits
c. training
d. communication
ANSWER: b
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, Name: Class: Date:
Chapter 1 - The World of Human Resources Management
15. HRIS systems in some organizations help managers to connect with employees and with the HR data they need.
What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: a
16. HRIS systems in some organizations, such as Corning Inc., are changing the way HR processes are designed and
executed. What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: c
17. Organization A is attempting to foster proactive change within the firm. This organization is forming teams and
extending its processes to include training, performance management, communication, culture, and even rewards.
The organization hopes to improve its ability to catch mistakes before they happen. What is Organization A
implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: a
18. Organization C is attempting to manage reactive change within the organization. This organization is radically
changing every process through redesigning and rethinking from the ground up. The firm needs a dramatic change in
order to survive. What is Organization C implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 4
Chapter 1 - The World of Human Resources Management
1. XYZ Inc., a new manufacturing company, wants to build its human capital base. Which of the following staffing
programs should it rely upon?
a. identifying and hiring cheap sources of qualified labour in order to fill front-line positions quickly
b. identifying and hiring individuals with highly specialized skills who can train others in the organization
c. identifying college graduates with the requisite skills who can be promoted to management positions quickly
d. identifying and hiring the best and brightest individuals
ANSWER: d
2. Which of the following is an increasing source of success for organizations?
a. the knowledge, skills, and abilities of its top executives
b. the knowledge, skills, and abilities of its employees
c. the proper management of the knowledge, skills, and abilities of its employees
d. the knowledge, skills, and abilities of HR professionals
ANSWER: b
3. ABC Corporation wants to expand on its markets in its new strategic plan. The plan covers the use of key resources
available to the firm, including technology, people, and access to capital. Which of the following would be a critical
human capital component of the plan?
a. capital investments
b. employees’ skills
c. new markets
d. updated technology
ANSWER: b
4. Dave Ulrich, a professor of management, is quoted as saying that, in terms of learning and development: “Learning
capability is g times g….” What does this mean?
a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill
b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and benefits
c. an organization’s grand image and brand multiplied by its goodwill
d. an organization’s ability to generate new ideas multiplied by its adeptness at generalizing them throughout the
company
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 1
,Name: Class: Date:
Chapter 1 - The World of Human Resources Management
5. Many prospective employees are interested in obtaining a job where they can learn new skills and improve existing
skills. What type of organization would be the most attractive to such candidates?
a. an organization that provides many formal training programs that are not easily transferable to other
organizations
b. an organization that provides many formal training programs that are very easily transferred to any job the
applicant might want to apply for later in his or her career
c. an organization that provides mentorship programs where employees attempt challenging situations under the
guidance of experienced senior staffers
d. an organization that provides “grow and learn” sessions where classroom sessions are backed up by on-the-
job training
ANSWER: c
6. Why does effective management of human resources provide a firm with competitive advantage?
a. because it is financially cheaper to acquire people versus other resources
b. because people help to accelerate the use of technology
c. because it is difficult to replicate how we manage people in organizations
d. because it is easier to manage people versus other resources
ANSWER: c
7. HRM plays an important role in organizations by balancing the sometimes competing demands of which of the
following?
a. competitive challenges and employee concerns
b. international challenges and employee concerns
c. employee concerns and employer challenges
d. competitive and employee challenges
ANSWER: a
8. Approximately what percentage of the Canadian economy is affected by global competition?
a. 70-85%
b. 60-75%
c. 50-65%
d. 40-55%
ANSWER: a
9. Which of the following is NOT a key benefit of corporate social responsibility?
a. avoiding lawsuits
b. improving earnings
c. attracting more applicants
d. improving pay for employees
ANSWER: d
Copyright Cengage Learning. Powered by Cognero. Page 2
,Name: Class: Date:
Chapter 1 - The World of Human Resources Management
10. In today’s highly competitive environment, managing organizational change has become which of the following?
a. a core competency of the organization
b. a product of globalization and technological advancement
c. a proactive method of downsizing
d. the preferred method of reacting to a decrease in organizational performance
ANSWER: a
11. What was the first major trade agreement of the twentieth century to establish rules and guidelines for global
commerce?
a. NAFTA (North American Free Trade Agreement)
b. GATT (General Agreement on Tariffs and Trade)
c. FTAA (Free Trade Area of the Americas)
d. APEC (Asia Pacific Economic Cooperation)
ANSWER: b
12. Company A has decided to hire someone outside the company to perform tasks that could be done internally. What is
this practice called?
a. contracting
b. outplacement
c. employee leasing
d. outsourcing
ANSWER: d
13. Which organization has the BEST chance of implementing a successful change initiative?
a. one that has ensured the employees are not overburdened with work relating to the change and have time to
focus on their jobs
b. one that has been very positive and relaxed throughout, ensuring not to establish a sense of urgency and
always reporting positive effects
c. one that has ensured good news is shared and the change victory is celebrated as soon as some indicators
appear positive
d. one that has ensured the changes are aligned with the organizational culture in important ways
ANSWER: d
14. The importance of Six Sigma to HR extends to all of the following EXCEPT which one?
a. performance management
b. employee benefits
c. training
d. communication
ANSWER: b
Copyright Cengage Learning. Powered by Cognero. Page 3
, Name: Class: Date:
Chapter 1 - The World of Human Resources Management
15. HRIS systems in some organizations help managers to connect with employees and with the HR data they need.
What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: a
16. HRIS systems in some organizations, such as Corning Inc., are changing the way HR processes are designed and
executed. What type of technological effect is this?
a. relational
b. operational
c. transformational
d. configurational
ANSWER: c
17. Organization A is attempting to foster proactive change within the firm. This organization is forming teams and
extending its processes to include training, performance management, communication, culture, and even rewards.
The organization hopes to improve its ability to catch mistakes before they happen. What is Organization A
implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: a
18. Organization C is attempting to manage reactive change within the organization. This organization is radically
changing every process through redesigning and rethinking from the ground up. The firm needs a dramatic change in
order to survive. What is Organization C implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
ANSWER: c
Copyright Cengage Learning. Powered by Cognero. Page 4
