Resource Management, 14th Edition by Susan
L. Verhulst
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,CHAPTER 1: The Dynamic Environment of HRM
TRUE/FALSE
Multinational corporations have increased slightly in number in the last 20 years.
Ans: False
Difficulty: Easy
Learning Objective 1: Discuss how globalization affects HRM practices. (1)
In a collective society such as the United States, people are primarily concerned with their own
family.
Ans: False
Difficulty: Medium
Learning Objective 1: Discuss how globalization affects HRM practices. (1)
Globalization is accelerated by technology, the Internet and inexpensive transportation of people
and products.
Ans: True
Difficulty: Medium
Learning Objective 1: Discuss how globalization affects HRM practices. (1)
As Transnational corporations expand into new international markets, they are often classified as
Multinational corporations.
Ans: False
Difficulty: Medium
Learning Objective 1: Discuss how globalization affects HRM practices. (1)
“Software as a Service” identifies HR software that is purchased on a subscription basis.
Ans: True
Difficulty: Easy
Learning Objective 2: Describe how human resource managers use technology. (2)
HRIS software is considered necessary for organizations over 50 people.
Ans: False
Difficulty: Hard
Learning Objective 2: Describe how human resource managers use technology. (2)
AI stands for Automated Integration and is used for onboarding new employees.
Ans: False
Difficulty: Easy
,Learning Objective 2: Describe how human resource managers use technology. (2)
Employment in information technology is expected to grow faster than most other jobs in the
near future.
Ans: True
Difficulty: Hard
Learning Objective 2: Describe how human resource managers use technology. (2)
The legal environment of employment is relatively stable, making it a minor responsibility for
HR departments.
Ans: False
Difficulty: Easy
Learning Objective 3: Explain regulation and legislation issues relevant to HRM. (3)
Employment laws in many states provide more protection for workers than federal regulations
do.
Ans: True
Difficulty: Easy
Learning Objective 3: Explain regulation and legislation issues relevant to HRM. (3)
Legal compliance is a minor responsibility for HRM.
Ans: False
Difficulty: Medium
Learning Objective 3: Explain regulation and legislation issues relevant to HRM. (3)
Legal Compliance is usually handled by lawyers rather than HR departments.
Ans: False
Difficulty: Easy
Learning Objective 3: Explain regulation and legislation issues relevant to HRM. (3)
When Federal employment laws conflict with state employment laws, those that favor the
employee usually prevail.
Ans: True
Difficulty: Medium
Learning Objective 3: Explain regulation and legislation issues relevant to HRM. (3)
The greatest shortage of labor globally is for skilled trades such as electricians, carpenters,
cabinetmakers, and welders.
Ans: True
Difficulty: Medium
,Learning Objective 4: Identify trends in the composition of the workforce and how HRM must
adapt. (4)
Hispanics have been the fastest growing ethnic group in the U.S. workforce for three decades.
Ans: True
Difficulty: Medium
Learning Objective: Identify trends in the composition of the workforce and how HRM must
adapt. (4)
A culture of inclusion indicates that all employees feel valued for their contribution regardless of
Ans: False
Difficulty: Medium
Learning Objective 5: Explain how HRM supports diversity and inclusion in the workplace. (5)
Flexible working environments are one way to encourage work-life balance and support a
diverse workplace.
Ans: True
Difficulty: Medium
Learning Objective 5: Explain how HRM supports diversity and inclusion in the workplace. (5)
Employees who work fewer than 40 hours a week are called part-time employees.
Ans: True
Difficulty: Easy
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs. (6)
Because contract workers’ labor cost is unknown and their service is usually poor as compared to
full-time employees, organizations prefer not to use them.
Ans: False
Difficulty: Medium
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs. (6)
According to the Internal Revenue Service (IRS), an employee is an individual who performs
work for you, and you have the right to control or direct the result of the work but not the means
and methods of accomplishing the result.
Ans: False
Difficulty: Hard
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs. (6)
,To determine whether a worker is an employee or independent contractor, the IRS considers
behavioral control, financial control, and relationship between the worker and employer.
Ans: True
Difficulty: Medium
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs. (6)
Quality management is an organizational commitment to continuous process of improvement
that expands the definition of customer to include everyone involved in the organization.
Ans: True
Difficulty: Medium
Learning Objective 7: Explain how HRM supports continuous improvement programs. (7)
Continuous improvement programs aim at constantly improving the quality of products and
services.
Ans: True
Difficulty: Easy
Learning Objective 7: Explain how HRM supports continuous improvement programs. (7)
Radical changes in an organization are the focus area of work process engineering.
Ans: True
Difficulty: Medium
Learning Objective 7: Explain how HRM supports continuous improvement programs. (7)
When changes in work processes are necessary, a major role of HR is helping employees
overcome resistance to change.
Ans: True
Difficulty: Medium
Learning Objective 7: Explain how HRM supports continuous improvement programs. (7)
The goal of increasing employee involvement is to increase employee engagement and
productivity.
Ans: True
Difficulty: Easy
Learning Objective 8: Identify ways that HRM facilitates employee involvement. (8)
Employee involvement requires management to make decisions that directly affect work of
employees.
,Ans: False
Difficulty: Medium
Learning Objective 8: Identify ways that HRM facilitates employee involvement .(8)
Employee involvement initiatives may require HR to train managers and employees alike with
skills necessary to sustain a culture of empowerment.
Ans: True
Difficulty: Medium
Learning Objective 8: Identify ways that HRM facilitates employee involvement. (8)
Global businesses can plan on a trend of permanent economic growth.
Ans: False
Difficulty: Easy
Learning Objective 9: Outline emerging challenges facing HRM. (9)
Mergers are common ways for businesses to enter global markets.
Ans: True
Difficulty: Easy
Learning Objective 9: Outline emerging challenges facing HRM. (9)
Worldwide, the number of mergers is on a decline.
Ans: False
Difficulty: Easy
Learning Objective 9: Outline emerging challenges facing HRM. (9)
Mergers provide challenges for HR professionals.
Ans: True
Difficulty: Easy
Learning Objective 9: Outline emerging challenges facing HRM. (9)¶
Mergers are a common way for businesses to enter new or global markets, acquire new
technology, or gain a financial advantage by achieving economies of scale.
Ans: True
Difficulty: Medium
Learning Objective 9: Outline emerging challenges facing HRM.HRM. (9)
¶
¶
Unions are rare in China.¶
Ans: False¶
Difficulty: Medium¶
,Learning Objective 9: Outline emerging challenges facing HRM.HRM. (9)¶
¶
¶
Union membership in the U.S. is declining.¶
Ans: True¶
Difficulty: Medium¶
Learning Objective 9: Outline emerging challenges facing HRM. (9)
Sarbanes-Oxley Act (SOX) was created in response to employment discrimination.
Ans: False
Difficulty: Medium
Learning Objective 9: Outline emerging challenges facing HRM. (9)¶
¶
Organizations that pursue sustainability as a strategy sacrifice profitability for employee morale.¶
Ans: False¶
Difficulty: Medium¶
Learning Objective 9: Outline emerging challenges facing HRM. (9)¶
¶
Sustainability includes ethical decisions regarding community, economy and natural resources.¶
Ans: True¶
Difficulty: Medium¶
Learning Objective 9: Outline emerging challenges facing HRM. (9)¶
¶
Sustainability practices include volunteer programs, energy conservation and recycling.¶
Ans: True¶
Difficulty: Easy¶
Learning Objective 9: Outline emerging challenges facing HRM. (9)¶
¶
,MATCHING KEY TERMS AND DEFINITIONS
a) Multinational corporations
b) Work process engineering
c) Contingent workforce
d) Baby-boomers
e) Knowledge workers
f) Outsourcing
g) Downsizing
h) Acquisition
i) Core employees
j) Rightsizing
k) Workforce diversity
l) Code of ethics
m) Quality management
n) Kaizen
o) Globalization
A process of interaction and integration among the people, companies, and governments of
different nations, driven by international trade and investment, accelerated by information
technology.
Ans: o
Difficulty: Medium
Learning Objective 1: Discuss how globalization affects HRM practices.(1)
Corporations with significant operations in more than one country.
Ans: a
Difficulty: Easy
Learning Objective 1: Discuss how globalization affects HRM practices.(1)
The varied personal characteristics that make the workforce heterogeneous.
Ans: k
Difficulty: Medium
Learning Objective 1: Identify trends in the composition of the workforce and how HRM must
adapt.(4)
Those individuals born between 1946 and 1965.
Ans: d
Difficulty: Easy
, Learning Objective 4: Identify trends in the composition of the workforce and how HRM must
adapt.(4)
An activity in an organization aimed at creating greater efficiency by eliminating certain jobs.
Ans: g
Difficulty: Medium
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs.(6)
Linking employee needs to organizational strategy.
Ans: j
Difficulty: Medium
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs.(6)
The part-time, temporary, and contract workers used by organizations to fill peak staffing needs.
Ans: c
Difficulty: Easy
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs.(6)
Employees whose jobs are designed around acquisition and application of information.
Ans: e
Difficulty: Medium
Learning Objective 2: Describe how human resource managers use technology.(2)
Using outside firms for providing necessary products and services.
Ans: f
Difficulty: Easy
Learning Objective 6: Explain the contingent workforce and other methods used to control labor
costs.(6)
A formal document that states an organization’s primary values and the ethical rules it expects
organizational members to follow.
Ans: l
Difficulty: Medium
Learning Objective 9: Outline emerging challenges facing HRM.(9)
The Japanese term for an organization’s commitment to continuous improvement.