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One of the first factors that increased the importance of human resource management was

a. the 1964 Civil Rights Act.
b. the worker revolution.
c. technological advances in computers.
d. the increase in manufacturing.
e. the growth in the service sector.

a. the 1964 Civil Rights Act.

The human resource function in organizations today

a. has grown into the role of strategic partner.
b. does little beyond ensure compliance with labor regulations.
c. is vital to the smooth operation of the business, but is not influenced by the organization's strategy.
d. dominates the other functional areas and dictates strategy to the organization.
e. is organized and managed very much as it has been for the last century.

a. has grown into the role of strategic partner.

A large computer chip manufacturer has just hired another firm to perform its applicant background checks. Which of the following is likely part of this process?

a. Theory Z
b. Theory X
c. Organizational culture
d. Strategic organization
e. Outsourcing

e. Outsourcing

A small restaurant is concerned about increasing worker productivity and tries to better structure its jobs to maximize output and service delivery. The restaurant is likely using some of the principles discussed in

a. downsizing.
b. outsourcing.
c. Theory X.
d. scientific management.
e. Theory Y.

d. scientific management.

Early research determining that individual and group behavior was important to organizations involved the

a. Hawthorne Studies.
b. scientific management groups.
c. total quality management investigations.
d. use of employee testing.
e. outsourcing studies.

a. Hawthorne Studies.

The basic notion of the human relations movement was that

a. employees had to be intimidated to be motivated.
b. technology was in decline.
c. satisfied employees would work harder for the company.
d. unions were a waste of time.
e. group work must be avoided in companies.

c. satisfied employees would work harder for the company.

In the 1930s and 1940s, units within a company that dealt with employees' behavioral challenges and issues were called

a. TQM groups.
b. scientific administration.
c. personnel departments.
d. MBO operations.
e. planning parties.

c. personnel departments.

During the 1950s and 1960s, all of the following developed within the field of human resource management EXCEPT

a. selection tests from World War II were adapted for use in private industry.
b. reward and incentive systems became more sophisticated.
c. government legislation expanded, adding more complexity to human resource management.
d. unions became more powerful and demanded more benefits for their members.
e. the human resource management function was recognized as being critically important to organizational success.

e. the human resource management function was recognized as being critically important to organizational success.

The 1964 Civil Rights Act made it illegal for corporate managers to make decisions based on all of the following EXCEPT

a. gender.
b. age.
c. religion.
d. race.
e. national origin.

b. age.

____ include all individuals who gain knowledge and utilize the information effectively to enhance the organization.

a. Group members
b. Recruiting teams
c. Selection specialists
d. Knowledge workers
e. Training networks

d. Knowledge workers

A human resource management system integrates which of the following functions?

a. finance function
b. operations function
c. marketing function
d. other fundamental organizational functions
e. all of these

e. all of these

All of the following researchers contributed to the early growth of the human resource function EXCEPT:

a. Elton Mayo
b. Frederick Taylor
c. Douglas McGregor
d. Thomas Edison
e. Abraham Maslow

d. Thomas Edison

Which of the following is NOT one of the four basic goals of the human resource management function as discussed in the text?

a. Helping the global economy
b. Promoting individual growth and development
c. Complying with legal and social obligations
d. Enhancing productivity and quality
e. Facilitating organizational competitiveness

a. Helping the global economy

Which of the following activities MOST directly relates to the basic HRM goal of facilitating organizational competitiveness?

a. Developing a strategic perspective to human resource management that satisfies goals and objectives
b. Investing in employee training that enhances productivity
c. Complying with government regulations
d. Designing "outreach" programs to attract minority job applicants
e. Developing formal mentoring programs to help women and minorities advance in the organization

a. Developing a strategic perspective to human resource management that satisfies goals and objectives

Genevieve, a human resource staff member, has the task of investigating employee complaints about civil rights violations at work. Which of the goals of HR management is Genevieve working on?

a. Facilitating organizational competitiveness
b. Complying with legal and social obligations
c. Promoting individual growth and development
d. Enhancing productivity and quality
e. Recruiting sufficient workers to meet demand

b. Complying with legal and social obligations

Adam is a project manager in the human resources department of Intel, the U.S. semiconductor manufacturer. Adam says, "I work on issues ranging from dependent care to work/life benefits. I work with employees to better understand their needs and to help design programs for them." Which of the fundamental goals of HR management is Adam working on?

a. Complying with legal and social obligations
b. Controlling costs
c. Facilitating organizational competitiveness
d. Enhancing productivity and quality
e. Promoting individual growth and development

e. Promoting individual growth and development

Which of the following would typically be considered a staff, rather than a line, manager?

a. Human resource manager
b. Operations manager
c. Financial manager
d. Marketing manager
e. Sales manager

a. Human resource manager

HR activities are typically carried out by

a. line managers.
b. staff managers.
c. neither line nor staff managers.
d. both line and staff managers.
e. executive team members only.

d. both line and staff managers.

The goals of human resource management typically include all of the following activities EXCEPT

a. facilitating organizational competitiveness.
b. enhancing productivity and quality.
c. complying with legal and social obligations.
d. promoting individual growth and development.
e. overseeing financial reporting as part of the Sarbanes-Oxley Act.

e. overseeing financial reporting as part of the Sarbanes-Oxley Act.

The managers who are directly involved in creating goods and service are known as

a. HR managers.
b. staff managers.
c. line managers.
d. chief executive managers.
e. executive team managers.

d. chief executive managers.

Who would typically have responsibility for carrying out human resource activities in a small, independent business?

a. The human resource manager
b. The owner or general manager
c. A human resource specialist
d. An operating manager
e. A secretary or an administrative assistant

b. The owner or general manager

Which of the following is NOT a specific requirement for being a successful human resource manager?

a. An understanding of the legal environment
b. General management skills and abilities
c. Fundamental understanding of other functional areas
d. A degree in human resource management
e. Knowledge of business and corporate strategy

d. A degree in human resource management

A ____ involves the set of expectations about the exchanges that occur between employees and employers.

a. knowledge worker
b. cost-benefit analysis
c. human relations movement
d. downsizing
e. psychological contract

e. psychological contract

A sporting goods retail company hires another firm to manage all of its payroll functions. This process is known as:

a. HRIS
b. Theory X
c. Theory Y
d. professional accreditation
e. outsourcing

e. outsourcing

As the human resource field becomes more professional, more HR managers are acquiring the Human Resource Certification Institute (HRCI) credential. Which organization was instrumental in establishing that credential?

a. The U.S. Department of Labor
b. Certified Public Accountant (CPA)
c. The Society for Human Resource Management (SHRM)
d. The National Labor Relations Board
e. No single organization was instrumental. Colleges and universities established the HRCI.

c. The Society for Human Resource Management (SHRM)

The modern term used to describe the management of people is
a. administrative synthesis.
b. compliance management.
c. strategic formulation.
d. personnel management.
e. human resource management.

e. human resource management.

Both the military and its suppliers became more interested person-job matching during
a. the Civil War.
b. World War I.
c. World War II
d. the Vietnam War.
e. the Korean War.

c. World War II

The HRCI offers several certifications, including all of the following EXCEPT the
a. PHR
b. SPHR
c. GPHR
d. UPHR
e. all of these are certifications offered by the HRCI

d. UPHR

The widespread use of ____ has affected how HR systems are delivered.
a. line managers
b. staff managers
c. executive teams
d. electronic technology
e. person-job fit principles

d. electronic technology

Following the requirements of the American Disabilities Act falls under which particular goals of HR?
a. facilitating organizational competitiveness.
b. enhancing productivity and quality.
c. complying with legal and social obligations.
d. promoting individual growth and development.
e. none of these

c. complying with legal and social obligations.

A-OK Company, an insurance company of 200 employees, provides life and automobile insurance to clients throughout the southwestern United States. The company's owner, Paul E. See, believes that happy employees are productive employees, so Mr. See provides employees services such as career planning and an on-site fitness center. Due to recent legislation making the insurance business more complex, A-OK is in the process of redesigning its training program for its sales agents. Mr. See also realizes that A-OK needs to examine its selection criteria for new agents joining the company and may need to increase salaries to attract needed talent. Mr. See is worried about this, because he knows that none of his managers has a human resource management degree. In fact, they were operating employees who were moved into the human resource function.

Refer to Scenario 1.1. Mr. See appears to be influenced by which era of management?
a. the Hawthorne era
b. Theory X/Y era
c. human relations era
d. scientific management era
e. production era

Refer to Scenario 1.1. In recognizing that training, selection, and compensation procedures are all interrelated, Mr. See recognizes human resource management as a
a. system.
b. strategic resource.
c. center of expertise.
d. core decision process.
e. network.


Refer to Scenario 1.1. The career planning and fitness programs provided to A-OK employees help fulfill which fundamental goal of human resource management?
a. Complying with legal obligations
b. Complying with social obligations
c. Enhancing productivity and quality
d. Promoting individual growth and development
e. Facilitating organizational competitiveness


Refer to Scenario 1.1. Who is likely to be responsible for the human resource management function in an organization of this size?
a. A full-time human resource manager
b. Mr. See
c. The sales manager
d. The operations manager
e. An administrative assistant

Refer to Scenario 1.1. Should Mr. See be worried about the ability of his human resource staff to effectively cope with the changes that are needed in that function?
a. Yes. Without a specialized degree, HR staffs are sure to violate legal requirements of human resource management.
b. Yes. No staff could cope with all of the changes that Mr. See envisions in the immediate future for his HR function.
c. Yes. Without many years of experience in HR exclusively, Mr. See's staff will be out of touch with the needs of his workers.
d. No. These changes will be made quite easily and simply, and do not need much attention to planning or expert knowledge.
e. No. Job experience is a good preparation for much HR work.

c. human relations era

a. system.

d. Promoting individual growth and development

a. A full-time human resource manager


e. No. Job experience is a good preparation for much HR work.

The realization that human resource management was an important field was spearheaded by the passing of the Rollins-Robinson Act.

F

The human resource function in organizations today is viewed as a key activity that can enhance the bottom line.

T

Outsourcing has caused a dramatic increase in the size of HR departments.

F

Scientific management focused on increasing efficiency and productivity.

F

Theory X and Theory Y were principles developed by Elton Mayo.

F

The widespread use of the Internet has affected the basic approach to how human resources are managed.

F

Scientists and lawyers are considered to be knowledge workers.

T

Designing jobs that are more challenging and satisfying is part of a company's HR compliance with legal obligations

F

Utility analysis attempts to measure the effectiveness of different HR approaches.

T

In order to take the PHR, SPHR, or GPHR certification exams, an individual must have at least 10 years of professional experience.

F

Title VII of the 1964 Civil Rights Act makes illegal discrimination based on
a. national origin.
b. age.
c. sexual orientation.
d. disability.
e. knowledge, skills, and abilities.

a. national origin.

Employers with ____ employees must comply will the stipulations of Title VII of the 1964 Civil Rights Act.
a. 1 or more
b. 5 or more
c. 15 or more
d. 20 or more
e. 50 or more

c. 15 or more

A bona fide occupational qualification
a. permits a restaurant to hire young, attractive servers because customers prefer them.
b. is a frequent exception to the law granted by federal courts.
c. permits an employer to discriminate against applicants on the basis of sex.
d. cannot be used by employers to discriminate on the basis of religion.
e. can be used only for affirmative action.

c. permits an employer to discriminate against applicants on the basis of sex.

A local office supply business routinely hires younger workers for stock staff over older applicants because much of the work requires heavy lifting and good mobility.
a. The company needs to show that the job requirements are a business necessity.
b. Illegal discrimination automatically exists.
c. The company should not worry because no laws exist that protect older workers.
d. Let the younger workers do the hiring to protect the company legally.
e. None of these.

a. The company needs to show that the job requirements are a business necessity.

One method for establishing whether disparate impact exists in a company's hiring practices involves
a. focus groups.
b. using the one-third rule.
c. using absolute counts of protected class members.
d. practicing retaliation.
e. geographic comparisons.

e. geographic comparisons.

The most noteworthy factors used to characterize a protected class include
a. disability status.
b. religion.
c. national origin.
d. gender.
e. all of these.

e. all of these.

Quid pro quo sexual harassment typically involves
a. unwelcome individual advances for a date.
b. sexual favors in return for something of value.
c. making jokes about a particular gender.
d. inappropriate pictures with sexual content displayed on the wall.
e. meeting colleagues for dinner after work hours.

b. sexual favors in return for something of value.

Executive Order 11478 requires that federal contractors receiving more than ____ must have affirmative action plans.
a. $1
b. $10,000
c. $50,000
d. $100,000
e. $1,000,000

b. $10,000

The Age Discrimination in Employment Act prohibits discrimination with respect to age of employees or applicants
a. near retirement age.
b. 40 and over.
c. over 18.
d. 65 or over.
e. over 65.

b. 40 and over.

Which of the following would probably NOT be covered by the Americans with Disabilities Act?
a. A mentally retarded employee
b. An employee with a learning disability
c. An employee with cancer
d. A person with poor vision that is correctable with glasses
e. An employee who is thought to be disabled but is not

d. A person with poor vision that is correctable with glasses

The Family Medical Leave Act requires employers to provide which of the following for employees under certain emergency circumstances?
a. Up to 4 weeks of paid leave
b. Up to 4 weeks of unpaid leave
c. Up to 12 weeks of paid leave
d. Up to 12 weeks of unpaid leave
e. Unlimited unpaid leave

d. Up to 12 weeks of unpaid leave

The Vocational Rehabilitation Act of 1973 requires that that federal contractors receiving more than ____ must have affirmative action plans for persons who have disabilities.
a. $100
b. $1,000
c. $2,500
d. $25,000
e. $50,000

c. $2,500

The American with Disabilities Act requires companies to
a. hire everyone with a documented disability.
b. discriminate against those persons who have a disability.
c. hire a diversity consultant.
d. make reasonable accommodations for disabled individuals.
e. spend $100,000 per year on disability training.

d. make reasonable accommodations for disabled individuals.

The Fair Labor Standards Act legislates such issues as:
a. disparate impact.
b. union activity.
c. child labor.
d. collective bargaining.
e. all of these.

c. child labor.

Titleist makes most of the golf clubs it sells to U.S. buyers in China, where the average hourly wage is the equivalent of less than $1 per hour. Under the provisions of the Fair Labor Standards Act, Titleist
a. is in violation of the act, because $1 per hour is less than the mandated minimum wage.
b. is in violation of the act, because some of the workers are younger than 16 years of age.
c. is in violation of the act, because the Chinese workers are nonexempt.
d. is NOT in violation of the act, because the FLSA applies only to workers in the United States.
e. is NOT in violation of the act, because the Chinese workers work fewer than 40 hours per week.

d. is NOT in violation of the act, because the FLSA applies only to workers in the United States.

____ was passed to protect employee pensions benefits.
a. ADA
b. FLSA
c. ERISA
d. ADEA
e. OSHA

c. ERISA

Which labor law was passed to regulate union actions and internal affairs related to employee representation, shifting some power away from unions?
a. Taft-Hartley Act
b. Fair Practices Act
c. Wagner Act
d. Norris-LaGuardia Act
e. Fair Labor Standards Act

a. Taft-Hartley Act

____ was passed to protect employee safety.
a. ADA
b. FLSA
c. ERISA
d. ADEA
e. OSHA

e. OSHA

Employees at Borders Bookstore in Ann Arbor, Michigan, recently held a strike to force their employer to negotiate a labor contract. Borders' employees were given the right to do this by the
a. Taft-Hartley Act.
b. National Labor Relations Act.
c. Landrum-Griffin Act.
d. Occupational Safety and Health Act.
e. Fair Labor Standards Act.

b. National Labor Relations Act.

The Occupational Safety and Health Act
a. is enforced by the EEOC.
b. requires employers to provide a hazard-free work environment.
c. permits inspections by specially trained officers called inspectors general.
d. provides for criminal penalties for willful violations of the act.
e. was passed in the late 1980s.

d. provides for criminal penalties for willful violations of the act.

The Drug-Free Workplace Act of 1988 was passed to
a. reduce the use of all drugs in the workplace.
b. reduce the use of illegal drugs in the workplace.
c. illuminate the use of all drugs during working hours.
d. enable companies to monitor the use of drugs outside of the workplace.
e. None of these

b. reduce the use of illegal drugs in the workplace.

The Privacy Act of 1974 ensures that
a. federal employees can review their personnel files for accuracy.
b. workers who reveal company secrets to competitors face severe penalties.
c. employers cannot monitor personal emails received on work computers.
d. employees' behavior outside of work cannot be monitored or tested.
e. an employee's medical information cannot be shared without permission from the employee.

a. federal employees can review their personnel files for accuracy.

The law that prohibits employers from collecting genetic information about their employees is called the:
a. Age Discrimination of Employment Act
b. Pregnancy Discrimination Act
c. Title VII of the 1964 Civil Rights Act
d. American Disabilities Act
e. Genetic Information Nondiscrimination Act

e. Genetic Information Nondiscrimination Act

Alpha-Beta Company closed a plant and laid off 100 workers, who each made $100 per day in pay and benefits. The closing was announced by company managers on April 1 and took place 30 days later. Under the provisions of the Worker Adjustment and Retraining Act of 1988 (WARN), Alpha-Beta must pay a penalty of
a. $0.
b. $200.
c. $40,000.
d. $100,000.
e. $300,000.

e. $300,000.

Which of the following would be the LEAST likely to be involved when an organization evaluates its legal compliance with human resource management regulations?
a. The firm's legal staff
b. Managers
c. Line workers
d. Human resource staff
e. Outside legal auditors

c. Line workers

Executive Order 11246 requires that federal contractors receiving more than ____ must have affirmative action plans.
a. $1
b. $10,000
c. $50,000
d. $100,000
e. $1,000,000

c. $50,000

The Vietnam Era Veterans' Readjustment Act of 1974 is directed primary at:
a. federal contractors
b. federal subcontractors
c. all private companies
d. both federal contractors and federal subcontractors
e. all of these

d. both federal contractors and federal subcontractors

The ____ established the workweek in the United States as 40 hours per week.
a. ADA
b. ADEA
c. FMLA
d. ERISA
e. FLSA

e. FLSA

The basic premise of OSHA is that each employer must provide a workplace that is safe for employees, which is known as the
a. qualification standard.
b. inspection agreement.
c. general duty clause.
d. arbitration agreement.
e. lawful worker treatment clause.

c. general duty clause.

The Privacy Act of 1974 applies directly to ____ employees.
a. federal
b. state
c. for-profit
d. not-for-profit
e. foreign

a. federal

Tia's Tamale Factory employs 50 workers to make and ship food products all over the United States. Tia's factory is located in Southern California, in a community where 60 percent of the residents have Spanish surnames or identify themselves as Hispanic. Tia must hire a new cook and despite her best efforts, she gets only three applicants. Conchita is a 35-year-old Hispanic female, Sancho is a 17-year-old Hispanic male, and Maureen is a 48-year-old white woman who uses a wheelchair.


Refer to Scenario 2.1. Tia's workers are mostly Hispanic women. If Tia believes that only a Hispanic women could fit in at her workplace and hires Conchita for this reason, it will likely be
a. discrimination on the basis of national origin in violation of Title VII.
b. discrimination on the basis of age in violation of the ADEA.
c. permissible discrimination because national origin would be a bona fide occupational qualification in this case.
d. permissible because most of the local residents are Hispanics.
e. permissible because Tia is a private employer.



Refer to Scenario 2.1. Suppose Tia does not hire Sancho. Which of the following regulations could Sancho use in an attempt to claim that Tia discriminated against him?
a. Americans with Disabilities Act
b. The disparate treatment clause of Title VII, due to his race
c. The disparate treatment clause of Title VII, due to his gender
d. Occupational Safety and Health Act
e. Age Discrimination in Employment Act



Refer to Scenario 2.1. Suppose Conchita and Maureen are equally qualified and Tia flips a coin to decide between them. The coin lands on tails and accordingly Tia hires Maureen. This action would probably be
a. a violation of Executive Order 11246.
b. a violation of the Equal Protection Clause of the Fourteenth Amendment.
c. a violation of Title VII.
d. not a violation of Title VII because the other employees are primarily Hispanic.
e. permissible under Title VII because the applicants were treated equally.



Refer to Scenario 2.1. Suppose Conchita and Maureen are equally qualified but Tia must raise the stove at a cost of $10,000 to accommodate Maureen's wheelchair. To avoid the expense, Tia hires Conchita. It is likely this action is
a. lawful under ADA because the applicants were equally qualified.
b. unlawful under Title VII because the applicants were of different races.
c. lawful under ADA if the accommodation was an undue hardship on Tia.
d. lawful under ADA. Maureen is not considered disabled under ADA because her disability is correctable with a wheelchair.
e. unlawful under the ADEA because Conchita is younger than Maureen.


Refer to Scenario 2.1. Suppose Tia hires Sancho and requires him to take a drug test because of safety issues on the job. Can Tia legally require this?
a. Yes. Tia can require Sancho to take a drug test.
b. Yes. However, Tia can only require Sancho to take a drug test before making a job offer.
c. No. This would be against the FLSA.
d. No. This would violate the ADA.
e. No. This would violate the ADEA.

a. discrimination on the basis of national origin in violation of Title VII.

c. The disparate treatment clause of Title VII, due to his gender

e. permissible under Title VII because the applicants were treated equally.

c. lawful under ADA if the accommodation was an undue hardship on Tia.

a. Yes. Tia can require Sancho to take a drug test.

Title VII created the Equal Opportunity Commission.

T

Disparate treatment occurs when two people are treated differently in similar situations based on a protected characteristic.

T

A BFOQ exception must be supported with a justified position of business necessity.

T

Disparate impact occurs when an employer knowingly practices illegal discrimination.

F

Affirmative action requires companies to develop quotas to hire a certain number of individual who represent protect class characteristics.

F

Quid pro quo sexual harassment includes telling suggestive jokes and making disparaging comments about someone's gender.

F

The Equal Pay Act requires companies to pay men and women the same compensation for performing equal work.

T

The Pregnancy Discrimination Act enables a company to assign pregnant women to mandatory alternate working conditions.

F

Both AIDS and HIV are covered by the American Disabilities Act.

T

The EEOC and OFCCP are the two primary regulatory agencies for enforcing employment legislation.

T

Which industrialized nation emerged as the only intact major power after World War II?
a. The United States
b. Japan
c. Germany
d. Canada
e. Africa

a. The United States

All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy?
a. The United States
b. Japan
c. Germany
d. India
e. All of these are considered leading industrial powers.

d. India

Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)?
a. Population growth is slowing.
b. International trade is expanding.
c. The labor force is growing quickly.
d. Competition from foreign countries is increasing.
e. Countries are becoming increasingly interdependent.

c. The labor force is growing quickly.

Which international staffing model is typified by an organization using many host-country nationals to staff a variety of positions at many levels?
a. Ethnocentric
b. Polycentric
c. Geocentric
d. Egocentric
e. Globalcentric

b. Polycentric

Under a geocentric staffing model,
a. host-country nationals are used heavily because they know the local markets.
b. the organization will have a skeleton human resource department at the host-country location, while the home-country human resource department retains all control.
c. the organization seeks to hire the best person available for a position regardless of where the individual comes from.
d. expatriate home-country nationals are hired to fill higher-level foreign positions.
e. the home-office perspective takes precedence over local issues.

c. the organization seeks to hire the best person available for a position regardless of where the individual comes from.

Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?
a. Globalcentric
b. Polycentric
c. Geocentric
d. Egocentric
e. None of these

e. None of these

. No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference?
a. Language
b. Business practices
c. Children's rights
d. Roles
e. Personal norms

b. Business practices

Which cultural dimension highlights a liking of structured circumstances instead of situations that are relatively unstructured?
a. Individualism
b. Collectivism
c. Masculinity
d. Femininity
e. Uncertainty Avoidance

e. Uncertainty Avoidance

What aspect of international business do NAFTA and the EU represent?
a. Tariff systems
b. Economic communities
c. Trade controls
d. Export regulations
e. Quota guidelines

b. Economic communities

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. He would score highly on the ____ dimension of Hofstede's model of culture.
a. power distance
b. individualism
c. masculinity
d. uncertainty avoidance
e. time orientation

b. individualism

1. A cultural dimension that focuses on relationship building and quality of life is
a. femininity.
b. uncertainty avoidance.
c. time orientation.
d. power distance.
e. collectivism.

a. femininity.

What is the term used when a company lets a foreign firm make and/or distribute its products in a local market?
a. Exporting
b. Licensing
c. Direct investment
d. Joint venture
e. Strategic alliance

b. Licensing

Under which two approaches to international business will the human resource function be LEAST affected?
a. Licensing and joint ventures
b. Direct investment and strategic alliances
c. Exporting and licensing
d. Joint ventures and strategic alliances
e. Exporting and direct investment

c. Exporting and licensing

What is an advantage of direct investment in another country?
a. Less risk is involved.
b. It is not expensive.
c. There is more profit potential.
d. The facility is less integrated in the foreign market.
e. Synergy between business partners is achieved.

c. There is more profit potential.

Under which international strategy will several companies agree to cooperate for mutual benefit?
a. Exporting
b. Importing
c. Direct investment
d. Multinational organization
e. Strategic alliance

e. Strategic alliance

Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT
a. recruiting.
b. compensation.
c. selection.
d. human resource technology.
e. training.

d. human resource technology.

Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT
a. training needs.
b. recruitment activities.
c. selection requirements.
d. development issues.
e. production design.

e. production design.

Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and serve guests from around the world. Which of the following is an accurate statement?
a. Celebrity will need to provide the same training to all of its foreign workers.
b. Celebrity will need to provide the same training to all of its workers.
c. Celebrity will need to tailor training to best develop workers from various countries.
d. Celebrity will not need to train its workers.
e. Celebrity will only need to train workers who have contact with customers; other workers need no training.

c. Celebrity will need to tailor training to best develop workers from various countries.

Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. The plant will be staffed with Indian managers and local workers. Which advice would NOT be appropriate for Prakash?
a. You must understand legal requirements for compensation in Singapore.
b. You must consider the Indian government's legal requirements for compensation.
c. Compensation for workers in Singapore will likely be the same as for workers in India.
d. Workers in Singapore will have different preferences for compensation and benefits than will Indian workers.
e. The cost of living is different in Singapore than it is in India, so compensation policy must account for that difference.

c. Compensation for workers in Singapore will likely be the same as for workers in India.

When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must often
a. offer exercise classes.
b. provide extensive training and development.
c. hire a consultant.
d. seek permission from competitors.
e. cut the benefits package provided to employees.

b. provide extensive training and development.

Which of the following is NOT likely to be a part of a compensation package designed for an expatriate?
a. Housing benefits
b. Job location assistance for the spouse
c. A cost-of-living allowance
d. A hardship premium
e. Unlimited travel to and from the home country

e. Unlimited travel to and from the home country

Wangkyo is an electrical engineer who designs power systems for factories. His employer is sending him on a foreign assignment for one month, to design a system for a new factory that is being built overseas. Which skills will be MOST important to Wangkyo in his foreign assignment?
a. Technical skills
b. Language skills
c. Cultural skills
d. Financial skills
e. Leadership skills

a. Technical skills

Disney chose Andre Lacroix to be CEO of Euro Disney, following his success as CEO of Burger King International. Disney chose an experienced international manager who lived in France, rather than send an American manager overseas, in part to eliminate the risk of expatriate failure. Expatriate failure occurs when the
a. expatriate needs extensive training before he or she is able to accept the assignment.
b. cost of sending the manager to the foreign assignment is greater than the benefit gained.
c. expatriate's coworkers report that he or she is not fitting in well.
d. business that is managed by the expatriate loses money.
e. expatriate returns early because of an inability to perform.

e. expatriate returns early because of an inability to perform.

Repatriation occurs when a(n)
a. company sends a manager to a second foreign assignment.
b. expatriate manager comes home from a foreign assignment.
c. manager likes a foreign assignment so much that he or she remains in the foreign country.
d. manager is sent on a foreign assignment.
e. manager on a foreign assignment is compensated in the local currency.

b. expatriate manager comes home from a foreign assignment.

Which of the following is an accurate statement about labor unions outside the United States?
a. In foreign countries, few workers belong to labor unions.
b. Labor unions outside the United States are regulated by U.S. laws.
c. Foreign labor unions are more likely to be involved in political and social issues.
d. Outside the United States, labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them.
e. Foreign employers rarely negotiate with unions in their home country.

c. Foreign labor unions are more likely to be involved in political and social issues.

Which of the following is NOT one of the cultural dimensions discussed by Hofstede?
a. power distance
b. collectivism
c. femininity
d. uncertainty avoidance
e. role identity

e. role identity

Hofstede partnered with ____ to collect cultural information from employees.
a. IBM
b. Motorola
c. Hewlett-Packard
d. 3M
e. Goodyear Tires

a. IBM

The Star Alliance, which is a global group of airlines that cooperate so that reservations and purchasing is made easier for customers, is an example of:
a. exporting
b. a strategic alliance
c. importing
d. direct foreign investment
e. licensing

b. a strategic alliance

When Kodak constructed a research lab in Japan, this action was an example of:
a. exporting
b. a strategic alliance
c. importing
d. direct foreign investment
e. licensing

d. direct foreign investment

Which strategy poses the lowest risk for agency problems?
a. Multidomestic
b. Transnational
c. International
d. Global
e. Foreign Market

d. Global

Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political system, a sound economy, a highly educated workforce, and it is a member of the European Union. However, Swedes do take a different view of work time, in that they expect at least two months of vacation per year. Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce. Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of culture, the United States and Sweden are about the same in power distance and long-term orientation, but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.

Refer to Scenario 3.1. Which staffing model is Mini-PC using for its Swedish unit?
a. Geocentric
b. Ethnocentric
c. Polycentric
d. Egocentric
e. Multicentric

Refer to Scenario 3.1. Which aspect of culture will MOST likely affect Mini-PC's human resource activities at the corporate level because of differences between its U.S. and Swedish business units?
a. Language
b. Religious differences
c. Gender roles
d. Personal norms
e. Differences in views of child labor

Refer to Scenario 3.1. On the basis of scores on Hofstede's dimensions of culture, which organization cultural values will create the most discomfort and resistance among Swedish workers?
a. Swedes will resist Mini-PC's policy of calling everyone, from the CEO to the lowest worker, by his or her first name.
b. Swedes will place a much greater value on patience and persistence than do Mini-PC's American workers.
c. Swedes will prefer to emphasize individual contributions, as opposed to Mini-PC workers in the United States, who value team or group contributions.
d. Swedes will be much less competitive, ambitious, and driven than Mini-PC's American workers.
e. Swedes will not be comfortable when given tasks that are too structured, as opposed to American workers, who prefer lots of structure.

Refer to Scenario 3.1. Which international strategy is Mini-PC using to expand its international operations?
a. Exporting
b. Licensing
c. Direct investment
d. Joint venture
e. Strategic alliance

Refer to Scenario 3.1. Which of the domestic human resource issues is most likely affected (i.e., different at Marstrand than at Mini-PC) by conditions described in the scenario?
a. Local compensation issues
b. Local selection issues
c. Local training issues
d. Local recruiting issues
e. Local development issues

c. Polycentric
d. Personal norms
d. Swedes will be much less competitive, ambitious, and driven than Mini-PC's American workers.
c. Direct investment
a. Local compensation issues

The United States and Japan have experienced slowing growth rates in employment in recent years.

T

The interrelatedness of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

T

The ethnocentric staffing model utilizes host-country nationals extensively throughout the company.

F

Cultural values and beliefs are usually not unspoken and are not taken for granted for individuals who live in a particular region of the world.

F

A culture that scores high in femininity tends to value quality of life and relationships.

F

A culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations

F

Time orientation means that a society emphasizes long-term values such as thrift and persistence.

T

Importing is the process of making a product domestically and then selling it to another country.

F

When a firm owns physical assets in another country, this is called foreign direct investment.

T

There are often many differences in the benefits packages received by employees in different countries.

T

Companies can establish a competitive advantage by
a. hiring good employees and effectively managing human resources.
b. always implementing a hierarchical management scheme.
c. adopting a universalistic financial strategy.
d. ignoring the external competitive environment.
e. none of these.

a. hiring good employees and effectively managing human resources.

An organization's mission
a. specifies how it will achieve its purpose.
b. affects its human resource practices.
c. is its basic reason for existence.
d. describes its unique characteristics and strengths.
e. all of these.

e. all of these.

Andy is a member of high-level group within a large hospitality organization that develops and coordinates corporate strategy. Andy is likely part of a(n)
a. focus group.
b. quality circle.
c. top management team.
d. operations party.
e. maintenance team.

c. top management team.

. ____ strategy involves the actions taken by firms to better operate in a relevant industry or market.
a. Adaptation
b. Business
c. Functional
d. Competitive
e. Corporate

b. Business

When organizations are downsizing the number of employees in the hierarchy, this usually involves a ____ strategy.
a. growth
b. retrenchment
c. stability
d. business
e. diversification

b. retrenchment

When a company decides to own and operate several separate companies, which strategy is being employed?
a. Diversification
b. Stability
c. Retrenchment
d. Multifaceted
e. Branching

a. Diversification

An organization made up of various businesses similar in the products or services they provide is pursuing which type of strategy?
a. Growth
b. Related diversification
c. Differentiation
d. Stability
e. Prospector

b. Related diversification

Which adaptation model of business strategy is best used when the situation is highly stable with low uncertainty?
a. Defender
b. Prospector
c. Analyzer
d. Differentiation
e. Cost leadership

a. Defender

Which adaptation model of business strategy is characterized by ignoring the environment?
a. Defender
b. Prospector
c. Analyzer
d. Differentiation
e. Reactor

e. Reactor

A new, medium-size hotel chain groups its personnel into different departments on the basis of individual expertise, which is called the ____ design.
a. functional
b. U-form
c. H-form
d. divisional
e. both functional and U-form

e. both functional and U-form

Rolex, a maker of expensive, high-quality watches that convey status and luxury, follows a differentiation strategy. Therefore, an important goal of its human resource strategy will likely be to
a. focus employee training on cost reduction efforts.
b. hire workers who are flexible and can perform a variety of tasks.
c. keep the size of the workforce small to increase efficiency.
d. retrench using layoffs and terminations.
e. provide minimal compensation and benefits.

b. hire workers who are flexible and can perform a variety of tasks.

Which of the following organizational designs is MOST likely to have few managerial levels?
a. Horizontal
b. H-form
c. M-form
d. Conglomerate
e. Divisional

a. Horizontal

Yum Brands began with three businesses: Pizza Hut, Taco Bell, and Kentucky Fried Chicken. Since its founding, the company has acquired other fast-food firms, including Long John Silver's and A&W. Which type of organization design would be most appropriate for Yum's strategy?
a. A functional design
b. A unitary design
c. A multidivisional design
d. A holding company
e. A horizontal corporation design

c. A multidivisional design

Which of the following was NOT identified as an organizational component affecting the formulation and implementation of human resource strategy?
a. Organizational development
b. Organization culture
c. The labor force
d. Organization design
e. Unionization

a. Organizational development

The process of handling union issues and challenges is called
a. labor relations.
b. downsizing.
c. outsourcing.
d. rightsizing.
e. outlook planning.

a. labor relations.

The principles and beliefs that shape what employees think about a company is called
a. unionization.
b. planning.
c. organizational culture.
d. focus grouping.
e. empowerment.

c. organizational culture.

The set of factors that prompt people to perform work at high levels is called
a. motivation.
b. stress.
c. interpersonal conflict.
d. negative attitudes.
e. executive succession.

a. motivation.

An individual's reactions to environmental factors that present excessive demands is called
a. motivation.
b. stress.
c. interpersonal conflict.
d. negative attitudes.
e. executive succession.

b. stress.

The Home Depot is following an overall strategy of growth. It's the fastest-growing retailer in history, opening a new store every 43 hours. Which of the following actions is Home Depot NOT likely to use as it implements its strategy?
a. The Home Depot will hire many employees in the near future.
b. The Home Depot will increase its recruiting efforts.
c. The Home Depot will offer early retirement to workers.
d. The Home Depot will try to ensure that its current workers stay with the firm.
e. The Home Depot will offer extensive training to its staff.

c. The Home Depot will offer early retirement to workers.

What is a psychological contract?
a. The extent to which people perceive they are being treated equitably by their organization
b. The set of expectations held by an individual as to what he or she will contribute to the organization and what the organization will provide in return
c. The set of psychological attributes or traits that distinguish one individual from another
d. The attitudes an individual holds toward the employing organization
e. A contract for psychological counseling provided by the organization

b. The set of expectations held by an individual as to what he or she will contribute to the organization and what the organization will provide in return

Adrienne believes that it is fine to spend one or more hours each workday talking on the phone with personal friends. Adrienne's employer disagrees. This disagreement involves which part of the psychological contract?
a. The attitude
b. The organizational inducements
c. The personality
d. The individual contributions
e. The motivation

d. The individual contributions

When Hershey family interests considered selling their Hershey Foods stock in 2001, employees were outraged. They felt betrayed and were angry and pessimistic. Which individual or interpersonal process was interfering with implementation of Hershey's strategy?
a. Worker personalities
b. Worker attitudes
c. Motivation
d. Team processes
e. Communication

b. Worker attitudes

In the past, evaluations of the effectiveness of the human resource function concentrated mainly on
a. worker satisfaction.
b. turnover.
c. person-job fit.
d. psychological contracts.
e. cost.

e. cost.

Companies that view their human resource function as a strategic asset should NOT evaluate HR effectiveness by investigating
a. costs and benefits.
b. organizational outcomes such as productivity.
c. profitability.
d. costs as the only factor.
e. utility analysis.

d. costs as the only factor.

Pierre would like to increase the effectiveness of human resources at his firm. What advice would you give him?
a. Don't have formal performance appraisals because workers are upset by criticism.
b. Carefully control the behavior of teams and don't let them make their own decisions.
c. Don't pay everyone the same. Pay high-performing workers more in order to increase motivation.
d. Don't annoy workers by constantly requiring them to go through a lot of training.
e. Assume that quiet workers are happy; there's no reason to bother them with attitude surveys.

c. Don't pay everyone the same. Pay high-performing workers more in order to increase motivation.

The organization's ____ is the basic reason for existence.
a. contract
b. inducement
c. personality
d. purpose

d. purpose

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