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HUMAN RESOURCES MANAGEMENT
1. A competitive advantage that is derived from human resources is sustainable for a company when it(s)
a. uses a centralized program of close supervision
b. employees have some rare or specialized skill not easily copied
c. has a newly-created organizational culture
d. product is intangible
e. customers remember the product rather than the salesperson
2. Which of the following statements about arbitration is true?
a. Binding arbitration can lead to a trial if both parties are not satisfied with the decision.
b. The neutrality of the arbiter is guaranteed by the selection process.
c. The process of arbitration follows the same rules as used in a court case.
d. Disputes are open to public view as soon as the involved parties agree to the arbitration.
3. In today’s rapidly changing and highly competitive business environment, HR professionals need to
understand that the trend is towards
a. delegation of fewer responsibilities to subordinates
b. more formalization of policy
c. less flexibility and autonomy
d. taller hierarchical structures
e. greater decentralization
4. Which of the following statements regarding managing in the global arena is most accurate?
a. Managers must realize that culture shapes the preferences and behaviors of their stakeholders.
b. A successfully-managed company can export its management method to another culture and expect
to be successful there.
c. A good manager will make a good decision, even if he or she is working in an unfamiliar culture.
d. Managers who work in individualistic cultures must provide indirect feedback for it to be accepted.
e. Managers have to understand that as soon as an individual moves from one country to another, the
5. Troubled students at Central High School are randomly assigned to the five school counselors. The director
of counseling has asked for volunteers among the counselors in order to evaluate this assignment policy and
to develop a new policy if warranted. The director is implementing
a. individual stress management
b. a support group
c. participation in decision-making
d. psychological ergonomics
e. behavior modification
6. An Italian firm that sells its products around the world, is organized into these divisions: finance, human
resources, R & D, marketing, sales, and manufacturing. It is using a ________ strategy.
7. To involve employees in a planned organizational change and to gain their support of the change process, an
organization can use
a. statistical forecasting
b. focus groups and hot lines
c. observation research
d. replacement planning and social audits
e. historical trending
8. A company should begin to implement an organizational change
a. after the strategic plans have been developed
b. once resistance to change has been dealt with
c. as it develops its strategic plan
d. once the change strategy has been evaluated
e. when all barriers to change have been removed
9. In order to prepare a comprehensive job analysis, an organization needs to survey or interview job
incumbents as well as
a. supervisors, job analysts and customers
b. supervisors and job applicants
c. supervisors and job analysts
d. job applicants, human resource personnel, and managers
e. job applicants, supervisors, and employees at similar positions in other organizations
10. In designing recruitment activities, what two central issues are addressed?
a. Cost and applicant fit within organizational culture
b. Cost and places to look for applicants
c. Cost and methods to use to find applicants
d. Methods to use to find applicants and sources to target
e. Job analyses and places to look for applicants
11. A multinational company that manufactures leather products employs third-country nationals (TCNs) as
managers. How is the employment of TCNs advantageous to the company?
a. Hiring TCNs expands the opportunities for parent-company nationals (PCNs) to gain overseas
b. The salary and benefit requirements for TCNs are typically lower than for PCNs.
c. The host countries welcome the hiring of TCNs and are more cooperative with the company.
d. TCNs are happy to return to their own country when they finish their assignment for the parent
e. TCNs do not have to worry about possible national animosities as do PCNs.
12. What term refers to the usefulness of a predictor for correctly inferring the future job behavior of applicants?
13. To maintain performance of a newly-learned skill after training is completed, the trainer should
a. provide clear instructions
b. match training techniques to trainees’ self-efficacy
c. teach the trainees self-management skills
d. provide opportunities for enactive mastery
e. offer specific, timely, diagnostic and practical feedback
14. In preparing performance appraisals, the sales manager ranked Deb as the overall best salesperson because
she had the highest level of sales, and Dave as the overall worst salesperson because he had the lowest level
of sales. The other salespeople were placed between Deb and Dave in order of their sales. What
performance appraisal format was used?
a. Forced distribution
b. Graphics rating scale
c. Absolute standard
d. Straight ranking
e. Direct index
15. When asked by her supervisor to rate her fellow group members according to their performance on a group
project, Kirsten gave everyone an “excellent,” although it was obvious that some had worked harder than
others. This demonstrates the rating error of
a. horn and halo
c. central tendency
16. During the maturity stage of a business’s organizational life cycle, the firm
a. makes stock options available to a limited number of employees
b. provides few short-term incentives for employees
c. offers a base salary that is at or below market level
d. uses its compensation system to retain its employees
e. has fewer competitors, so it can focus on profitability
17. Which of the following statements regarding incentive pay plans is most accurate?
a. Unlike merit pay plans, base pay is set at the market rate for incentive plans.
b. Maximum earning potential is usually greater with an incentive plan than a traditional merit plan.
c. Once earned, the incentive pay becomes part of the employee’s base pay.
d. Caps are used to keep incentive pay levels even with the industry pay level.
e. There is no difference between how merit pay plans and incentive pay plans are used to reward
18. Current distribution plans
a. place earnings in an escrow account for distribution upon termination, disability or death
b. create retirement funds
c. are the fastest growing type of profit sharing plan
d. are devised to tie short-term profitability to management performance
e. provide a percentage of profits to be distributed quarterly or annually to employees
19. In a defined benefit plan, the
a. employee can receive a lump sum amount on retirement
b. survivors will receive the benefits if the employee dies before the retirement funds are paid out
c. employee can move to another job and carry their retirement account along
d. benefits begin when the employee turns 65
e. benefits received upon retirement vary by the employee’s age and length of service
20. Which of the following is a mandatory issue to be discussed during a collective bargaining session?
a. Number of new hires
b. Pricing strategy for new products
c. Wage rates
d. Product design
e. New product development process
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