Chapter 01 - Human Resource Management in Organizations
1. Which of the following statements is true of human resource management?
a. It refers to auditing the finances of an organization.
b. It involves generating business by identifying potential customers and ensuring customer satisfaction.
c. It involves evaluating the external competition impacting an organization.
d. It refers to designing formal systems in an organization to manage human talent for accomplishing
organizational goals.
ANSWER: d
2. Binkers Inc. is a start-up that believes in hiring only the best talent. The company has about 100 highly efficient and
motivated employees. Given this information, it can be said that Binkers most likely understands the importance of _____.
a. human capital
b. benchmarking
c. contingency planning
d. job enlargement
ANSWER: a
3. Unit labor cost is computed by dividing:
a. the total cost of workers by their average levels of output.
b. the total level of output by the total cost of workers.
c. the average level of output by the average cost of workers.
d. the average cost of workers by their average levels of output.
ANSWER: d
4. Big Drop Inc. plans to increase employee productivity by eliminating some layers of management and changing
reporting relationships. The senior managers of the company decide to downsize the company and lay off some
employees. This is an example of _____.
a. organizational restructuring
b. benchmarking
c. aligning HR activities
d. onboarding
ANSWER: a
5. _____ is a method to increase employee productivity by making changes to the way work gets done by focusing on the
characteristics of jobs and altering how tasks are structured and coordinated.
a. Organizational restructuring
b. Benchmarking
c. Onboarding
d. Redesigning work
ANSWER: d
6. _____ is a method to increase employee productivity by ensuring that HR efforts and practices are consistent with
organizational efforts to improve productivity and satisfy strategic goals.
a. HR auditing
b. Benchmarking
c. Aligning HR activities
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Chapter 01 - Human Resource Management in Organizations
d. Organizational restructuring
ANSWER: c
7. In the context of improving employee productivity, which of the following activities is involved in organizational
restructuring?
a. Cutting staff through layoffs
b. Implementing job enrichment programs
c. Providing feedback to employees
d. Providing training to new recruits
ANSWER: a
8. In the context of improving employee productivity, which of the following activities is involved in redesigning work?
a. Reshaping jobs because of technology changes
b. Revising organizational structures
c. Training, developing, and evaluating employees
d. Outsourcing operations internationally
ANSWER: a
9. In the context of improving employee productivity, which of the following activities is involved in aligning HR
activities?
a. Changing workloads and combining jobs
b. Revising organizational structures
c. Using domestic vendors instead of employees
d. Training, developing, and evaluating employees
ANSWER: d
10. In the context of improving employee productivity, which of the following activities is involved in outsourcing
analyses?
a. Revising organizational structure
b. Using domestic vendors instead of employees
c. Changing workloads and combining jobs
d. Attracting and retaining employees
ANSWER: b
11. Which of the following is true of organizational culture?
a. It generally varies across an organization.
b. It changes frequently over time.
c. It provides members of an organization with rules of behavior.
d. It is quickly established.
ANSWER: c
12. In the context of the seven HR management functions, which of the following is a component of employee and labor
relations?
a. HR policies
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Chapter 01 - Human Resource Management in Organizations
b. Health and wellness
c. HR effectiveness
d. Affirmative action
ANSWER: a
13. In the context of the seven HR management functions, which of the following is a component of strategy and
planning?
a. Diversity
b. HR retention
c. HR policies
d. Compensation
ANSWER: b
14. Which of the following is a component of the talent acquisition function of HR management?
a. Recruiting
b. Training
c. Orientation
d. Career planning
ANSWER: a
15. Which of the following is true of the administrative role of HR departments?
a. It involves managing HR activities based on the strategies and operations identified by management.
b. It helps define an organization's business strategy relative to human capital and its contribution to the
organization's results.
c. It involves identifying possible strategies to attract and retain talent with a focus on organizational growth.
d. It focuses on recordkeeping, including essential legal paperwork and policy implementation.
ANSWER: d
16. Which of the following is true of the operational role of HR departments?
a. It focuses on clerical administration and recordkeeping, including essential legal paperwork and policy
implementation.
b. It involves identifying possible strategies to attract and retain talent with a focus on organizational growth.
c. It involves managing HR activities based on the strategies and operations identified by management.
d. It helps define an organization's business and HR strategies relative to human capital and its contribution to the
organization's results.
ANSWER: c
17. Which of the following has traditionally been the dominant role for human resources?
a. Operational role
b. Employee advocate role
c. Administrative role
d. Strategic role
ANSWER: c
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18. Sara, an HR Manager at Comp Inc., is moving from an administrative role in the HR department to an operational
role. Which of the following best describes the change in Sara's role?
a. Moving from processing legal paperwork to serving as a “champion” for employee concerns
b. Moving from managing strategic HR activities to helping management define strategies to manage human
capital
c. Moving from helping management define the strategy to manage human capital to serving as a “champion” for
employee concerns
d. Moving from helping management define the strategy to manage human capital to processing legal paperwork
ANSWER: a
19. Bob, an HR executive at Axis Inc., is moving from an operational role in the HR department to a strategic role. Which
of the following best describes the change in Bob’s role?
a. Moving from serving as "champion" for employee concerns to helping management define the business
strategy relative to human capital
b. Moving from helping management define the strategy to manage human capital to processing legal paperwork
c. Moving from processing legal paperwork to serving as a “champion” for employee concerns
d. Moving from processing legal paperwork to helping management define the strategy to manage human capital
ANSWER: a
20. David, an HR Manager at RedWall Inc., is moving from an administrative role in the HR department to a strategic
role. Which of the following best describes the change in David's role?
a. Moving from serving as a “champion” for employee concerns to processing legal paperwork
b. Moving from helping management define the strategy to manage human capital to serving as "champion" for
employee concerns
c. Moving from processing legal paperwork to helping management define the business strategy relative to
human capital
d. Moving from helping management define the strategy to manage human capital to processing legal paperwork
ANSWER: c
21. Miguel, an HR Executive at Oyster Studios, is moving from an operational role in the HR department to an
administrative role. Which of the following best describes the change in Miguel's role?
a. Moving from processing legal paperwork to serving as a “champion” for employee concerns
b. Moving from serving as "champion" for employee concerns to helping management define the strategy to
manage human capital
c. Moving from processing legal paperwork to helping management define the strategy to manage human capital
d. Moving from serving as a “champion” for employee concerns to processing legal paperwork
ANSWER: d
22. Donna, an HR Manager at Loch Inc., is moving from a strategic role in the HR department to an operational role.
Which of the following best describes the change in Donna's role?
a. Moving from helping management define the strategy to manage human capital to serving as "champion" for
employee concerns
b. Moving from helping management define the strategy to manage human capital to processing legal paperwork
c. Moving from processing legal paperwork to helping management define the strategy to manage human capital
d. Moving from serving as "champion" for employee concerns to processing legal paperwork
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