Chapter 1

Chapter 1 Human Resource Management
Ivancevich, Human Resource Management, Ninth Edition

1

True/False Questions

1.
Elder care benefits are becoming more important to employees.

Answer: True Page: 3 Difficulty: Easy

2.
Human resource management
,
industrial relations
, and
personnel
are all terms that
have been used to describe the HR function.


3.
The number of companies offering online access to HR functions, such as benefits
enrollment, is
decreasing
.

Answer: False Page: 3 Difficulty: Easy

Rationale: A survey by Towers Perrin indicated that 60 percent of employers allow
employees to complete their benefits enrollment and to perform other HR functions
online. This shows a 30 to 50 percent increase in one year.

4.
Studies in both Great Britain and Australia indicate that firms with HR representatives
on their boards of directors had
higher profitability
than those who did not.


5.
A study by Boston College Center for Work & Family found that telecommuters work
less
than onsite employees.


Rationale: In this study, telecommuters were found to work more than onsite
employees.

6.
When an organization is really concerned about people, its total philosophy, culture,
and orientation will reflect this belief.


7.
Today, employees respond
favorably
to management activities that give them greater
control of their lives.

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2


8.
Welfare secretaries were appointed as spokespersons by factory workers to bridge the
gap between labor and
the government
.


Rationale: Welfare secretaries were appointed by factory workers to bridge the gap
between labor and management.

9.
HRM has always been viewed as a profit center.


Rationale: For years, the HRM function was not linked to the corporate profit margin
because management did not understand the positive impact that reducing turnover and
improving the skills of employees could have on the firm's bottom line.

10.
The history of HRM can be traced to England, where craftspeople organized themselves
into guilds.


11.
Industrial psychology
represented an effort to deal with inefficiencies in labor and
management primarily through work methods, time and motion study, and
specialization.


Rationale:
Scientific management represented an effort to deal with inefficiencies in
labor and management primarily through work methods, time and motion study, and
specialization.

12.
During the Industrial Revolution, a new kind of employee emergeda boss who wasn't
the owner.


13.
The maximum well being of the worker was the focus of
industrial psychology
.

Answer: True Page: 7 Difficulty: Medium

14.
A series of studies conducted at the Hawthorne facility of Western Electric, the
Hawthorne Studies, was completed in order to determine the effect of
illumination
on
workers and their output.


3

15.
Until the 1960s, the personnel function was concerned primarily with
white-collar
employees.


Rationale: Until the 1960s, the personnel function was concerned primarily with
blue-collar employees. scienti

16.
Workers
play a major role in setting the direction, tone, and effectiveness of the
relationship between the employees, the firm, and the work performed.


Rationale:
Managers play a major role in setting the direction, tone, and effectiveness of
the relationship between employees, the firm, and the work performed.

17.
Without managerial participation in HRM activities and programs, a company is likely
to have major human resource problems.


18.
People
limit or enhance the strengths and weaknesses of an organization.


19.
The current knowledge-based workforce is rapidly giving way to a mechanized,
routine-oriented workforce.

Answer: False Page: 9 Difficulty: Medium

Rationale: Today's mechanized, routine-oriented workforce is giving way to a
knowledge-based workforce.

20.
Professional sports teams place a dollar value on athletes, and then depreciate those values over\
time.


21.
A study found that a 1 standard deviation improvement in human resource practices was associated
with a $41,000 increase in shareholder wealth per employee.


4


22.
A study of German industrial firms found that investing time, energy, and resources in
people was associated with stock market performance increases.


23.
Walt Disney said his greatest accomplishment was to build the Disney organization with its own
money
.


Rationale: Walt Disney said his greatest accomplishment was to build the Disney
organization with its own people.

24.
Generation X members tend to be skeptical customers, somewhat distrusting, and
independent.

Answer: False Page: 20 Difficulty: Hard

Rationale: Generation Y members tend to be skeptical customers, somewhat distrusting,
and independent.

25.
Generation Y members are also called
echo boomers
.

Answer: True Page: 20 Difficulty: Hard

26.
For employees to be productive, they must feel that the job is right for their abilities and
that they are being treated equitably.


27.
Satisfied employees are automatically more productive.


Rationale: Satisfied employees are not automatically more productive. However, they
quit less often, are absent less often, and produce higher-quality work than unsatisfied employees.

28.
Both satisfied and unsatisfied employees may perform equally in quantitative terms, such as
processing the same number of insurance claims per hour.


5

29.
A
decreased
sense of empowerment is emphasized in firms using a learning framework.


Rationale: An increased sense of empowerment is emphasized in firms using a learning
framework.

30.
A
40-hour
workweek is the norm at firms like Microsoft, Intel, Novell, and Goldman
Sachs.


Rationale: A 60-80 hour workweek is the norm at these firms.

31.
Effective HR departments set specific, measurable objectives to be accomplished
within
flexible time limits
.


Rationale: Effective HR departments set specific, measurable objective to be
accomplished within specified time limits.

32.
If improperly managed, the effectiveness of human resources declines
less quickly
than
other resources.


Rationale: If improperly managed, the effectiveness of human resources declines more
quickly than other resources.

33.
Smaller organizations usually have no HR unit, so the
operating managers
have many
HRM responsibilities, such as scheduling work, recruitment and selection, and
compensating people.


34.
Outsourcing HRM activity is growing in popularity.


6


35.
Outsourcing of HRM functions is likely to be
discontinued
as decision makers search
for ways to improve the financial and operating performance of firms.


Rationale: Outsourcing of HRM functions is likely to continue as decision makers
search for ways to improve the financial and operating performance of firms.
Outsourcing can reduce costs and improve flexibility.

36.
A
line person
typically supports the primary functions of a company, such as marketing
and production, by providing advice, counsel, and information.


Rationale: Advice, counsel, and information are typically provided a staff person.

37.
Research indicates that
the accounting department
and HR specialists differ on how
much authority employees should have over promotions.


Rationale: Research indicates that operating managers and HR specialists differ on how
much authority employees should have over promotions.

38.
The short-term goal of any HRM strategic plan must be to build on the firm's strengths.


Rationale: Building on the firm's strengths should be a long-term goal of any HRM strategic plan.

39.
Unlike capital investments, patents, or technology, a properly functioning HRM system
is an invisible asset.


40.
Organizations can develop a competitive advantage over other firms by creating value in a way that
is rare and difficult for competitors to imitate.



8


49.
HR employees are generally paid comparably to other business school graduates at the
supervisory and middle management levels.


50.
Most HR managers have college degrees.


51.
Procedures
are general guides to decision making.

Answer: False Page: 34a Difficulty: Medium

Rationale: Policies are general guides to decision making. Procedures are specific
directions to action.

52.
Ethical principles should apply to all HRM activities.


Multiple Choice Questions

53.
Which of the following is not mentioned in the text as an activity of human resources
management?

A)
labor relations

B)
human resource planning

C)
safety and health

D)
development of corporate mission

Answer: D Page: 1-55 Difficulty: Medium

54.
_________________________ has been summarized as (a) science, not rules of thumb;
(b) harmony, not discord; (c) cooperation, not individualism; and (d) maximum output,
not restricted output.

A)

B)

C)
Scientific management

D)
The Industrial Revolution

Answer: C Page: 11 Difficulty: Medium

9

55.
_________________________ represents the application of psychological principles
toward increasing the ability of workers to perform efficiently and effectively.

A)

B)

C)
Scientific management

D)
The Industrial Revolution

Answer: A Page: 11 Difficulty: Medium

56.
Early personnel administrators were called ____________________.

A)
welfare secretaries

B)
human resource managers

C)
benefit coordinators

D)
union stewards


57.
Which of the following is
not
one of the key concepts that should be applied by HRM?

A)
Analyzing and solving problems from a profit-oriented point of view

B)
Assessing costs or benefits of recruitment and training

C)
Using planning models that include realistic, challenging, specific, and meaningful
goals

D)
Emphasizing the strategic importance of expendable employees

Answer: D Page: 14 Difficulty: Medium

58.
Which of the following has
not
contributed to the era of HRM accountability?
A)
Widespread
downsizing

B)
Rising pay scales

C)
An increasingly complex and competitive world

D)
An increasingly diverse workforce

Answer: B Page: 15 Difficulty: Medium

59.
HRM and ____________________ must work together to achieve the level of
organizational effectiveness required to compete locally and internationally.
A)
marketing

B)
distribution

C)
manufacturing

D)
every other function

Answer: D Page: 15 Difficulty: Easy

10


60.
The changes experienced by organizations around the world include:

A)
growing global competition

B)
faster cycle times

C)
higher customer expectations

D)
All of the above

Answer: D Page: 16 Difficulty: Easy

61.
One problem that top management has in making strategic planning decisions regarding
people is that all other resources are evaluated in terms of ____________________ and,
in most organizations, people are not.

A)
market share

B)
life cycle
C)
money

D)
productivity


62.
There is now evidence that an increase in the use of people first practices results in all
of the following
except
:

A)
A decrease in turnover

B)
Lower productivity

C)
Higher profits

D)
Higher sales

Answer: B Page: 17 Difficulty: Easy

63.
Which of the following is
not
a contribution that HRM makes to organizational
effectiveness?

A)
Increases the employees' job satisfaction and self-actualization.

B)
Limiting knowledge of, and access to, HRM policies.

C)
Helps to maintain ethical policies and socially responsible behavior.

D)
Employs the skills and abilities of the workforce efficiently.

Answer: B Page: 18 Difficulty: Easy


11

64.
To prepare for Generation Y employees, managers should consider providing more
__________________ praise.
A)
public

B)
written

C)
sincere

D)
specific


65.
Which of the following statements concerning employee job satisfaction is
false
?

A)
Satisfied employees are not automatically more productive.

B)
Satisfied employees always perform better on quantitative measures.

C)
Unsatisfied employees are absent more often than satisfied employees.

D)
Unsatisfied employees quit more often than satisfied employees.

Answer: B Page: 21-22 Difficulty: Medium

66.
A good ____________________ (QWL) program assumes that a job and the work
environment should be structured to meet as many of the worker's needs as possible.

A)
quality of work life

B)
quality of work link

C)
quality of wellness life

D)
quantity of work life


67.
Organizational inefficiencies result in all of the following
except
:

A)
Poor productivity

B)
Spiraling benefits costs

C)
Better quality
D)
Dissatisfied
workers


68.
The human resource manager plays an important role in showing by
____________________ that each employee is important and will be treated ethically.
A)
example

B)
demand

C)
decree

D)
persuasion

Answer: A Page: 23 Difficulty: Easy

12


69.
Tandem Computers has a QWL program that has resulted in which of the following?

A)
the highest output per employee in the industry

B)
the lowest turnover rates in Silicon Valley

C)
the best benchmarking plan for the region

D)
the highest profit margins in the industry

Answer: B Page: 22 Difficulty: Medium

70.
Nearly all new trends in telecommuting, outsourcing of HRM practices, family medical
leave, child care, relocation assistance, and many other areas of HRM interest can be
traced to the emergence of new lifestyles and ____________________.

A)
an aging population

B)
an influx of immigrants

C)
rising wages

D)
a decrease in available workers


71.
The need to shorten cycle time has caused firms place a growing emphasis on
____________________.

A)
products and pricing

B)
competition and marketing

C)
speed and urgency

D)
growth and development

Answer: C Page: 25 Difficulty: Easy

72.
An HR department is typically created when the number of employees reaches
____________________.

A)
50 to 100

B)
100 to 150

C)
200 to 500

D)
500 to 1000

Answer: C Page: 27 Difficulty: Hard

13

73.
According to one study, the national average is 1 HR specialist per
____________________ employees.
A)
25

B)
50

C)
100

D)
200

Answer: B Page: 32 Difficulty: Hard

74.
HRM units are relatively small in most organizations. According to the text, one study
found that the largest headquarters HRM unit had only:

A)
50 people
B)
100
people

C)
150
people

D)
200
people


75.
Samsung believes that _________________________ is/are the future of the company.

A)
innovative products

B)
sustainable corporate growth
C)
people

D)
customer satisfaction


76.
The ____________________ of an organization are the goals it seeks to achieve.
A)
strategies

B)
objectives

C)
policies

D)
procedures/rules

Answer: A Page: 34a Difficulty: Easy

77.
The personnel commission at the federal level is called the:

A)
Supreme Court

B)
Equal Employment Opportunity Commission

C)
US Office of Personnel Management

D)
US Civil Service Commission


14


78.
The comptroller of a hospital would generally be in charge of the
____________________.

A)
payroll office

B)
radiology department

C)
HR department
D)
pharmacy

Answer: A Page: 41b Difficulty: Medium

79.
For accreditation as HRM specialists, tests are given in all of the following
except
:

A)
Training and development

B)
Compensation and benefits

C)
Financial analysis

D)
Management practices


80.
HRM is considered to be ____________________.
A)
action-oriented

B)
individual-oriented

C)
globally-oriented

D)
All of the above.

Answer: D Page: 44 Difficulty: Medium

Essay Questions

81.
Explain how action-oriented HRM departments differ from people-oriented HRM
departments.

Page: 8 Difficulty: Medium

Answer:
An action-oriented HRM department emphasizes the solution of employment problems
in order to help achieve organizational objectives and facilitate employees' development
and satisfaction. A people-oriented HRM department treats each employee as an
individual and offers services and programs to meet the individual's needs.


15

82.
According to an Official End-of-the-Millennium State-of-HR Survey conducted by
Workforce, HR professionals believe that certain competencies will be needed to
optimize HRM activities. Name at least five of the identified competencies.

Page: 30 Difficulty: Hard
Answer:
Any five of the following: (1) Communication skills, (2) Problem solving, (3)
Leadership, (4) Recruiting/staffing, (5) Employment law, (6) Training and development,
(7) Technology, (8) Forecasting, (9) Compensation design, (10) Benefits
design/administration, (11) Accounting/finance, (12) Record keeping

83.
The text states that satisfied employees are not necessarily more productive than
unsatisfied employees. If that is true, then what are the advantages of ensuring that
employees are satisfied at work?


Answer:
Although satisfied employees may not be more productive than unsatisfied employees,
they (1) are absent less often, (2) produce higher-quality work, and (3) are less likely to
quite their job.

84.
Two sets of employees, operating managers and HRM specialists, are often jointly
responsible for HRM decision, which can result in conflict. What are some ways that
this conflict can be minimized?


Answer:
Conflict between HRM specialists and operating managers can be reduced by (1)
showing the operating manager the benefits of HRM techniques and programs, (2) by
involving the operating manager in the development of systems that alleviate HRM
problems, (3) by assigning responsibility for some HRM decisions exclusively to
operating managers and others exclusively to HRM specialists, (4) by training both sets
of managers in how to get along together and how to make joint decisions, and (5) by
promoting flexibility and openness to ideas.


16


85.
In 1995, an explosion and fire occurred at the Malden Mills plant in Lawrence,
Massachusetts. The plant owner, Aaron Feuerstein, opted to pay 1400 displaced
workers for three months while the plant was being rebuilt rather than pocket the
insurance money, even though it cost him $15 million in personal funds. If you had been
the owner, would you have made the same decision? Why or why not?


Answer:
Open answer.

Short Answer Questions

86.
Why is it important for firms to stick with training programs in bad times as well as in
good?

Answer: Sticking with training programs in bad times sends the signal that the company
values people. Page: 4 Difficulty: Medium

87.
Name three benefits that companies attribute to telecommuting.

Answer: Any three of the following: (1) lower real estate costs (2) reduced turnover (3)
increased productivity (4) increased ability to comply with workplace laws
Page: 5 Difficulty: Medium

88.
Human Resource Management (HRM) consists of numerous activities. Name at least 5
of them.

Answer: Any five of the following: (1) Equal Employment Opportunity compliance (2)
job analysis (3) human resource planning (4) Employee recruitment, selection,
motivation, and orientation (5) performance evaluation and compensation (6) training
and development (7) labor relations (8) safety, health, and wellness.

89.
Name two factors that contributed to the development of personnel departments.

Answer: Any two of the following: (1) changes in technology (2) growth of
organizations (3) the rise of unions (4) government concern and intervention concerning
working people Page: 12 Difficulty: Hard

17

90.
IBM received the 2002 Best Corporate Citizen award for three things. What were they?

Answer: (1) Progressive diversity policies (2) Serving women and minorities (3) Giving
back to communities Page: 24 Difficulty: Hard

91.
What is the primary reason that operating managers, such as supervisors, department
heads, and vice presidents, are involved in HRM activities?

Answer: Operating managers are involved in HRM activities because they are
responsible for the effective use of all the resources at their disposal, including human
resources. Page: 26 Difficulty: Hard

92.
The Society of Human Resource Management has set up an Accreditation Institute to
offer HR executives the opportunity to be accredited as specialists in a functional area.
Identify at least 5 of those areas.

Answer: Any five of the following: (1) Employment, (2) Placement and HR training, (3)
Training and development, (4) Compensation and benefits, (5) Health, (6) Safety and
security, (7) Employee and labor relations, (8) Personnel research, and (9) Multiple
specialty generalists Page: 54 Difficulty: Hard

Fill in the Blank Questions

93.
The Industrial Revolution began with the substitution of steam power and
____________________ for hand labor.

Answer: machinery Page: 11 Difficulty: Hard

94.
The corporate profit margin is also referred to as the ____________________.

Answer: bottom line Page: 13 Difficulty: Medium

95.
Three crucial elements are needed for firms to be effective: (1) mission and strategy, (2)
organizational structure, and (3) ____________________.

Answer: HRM Page: 16 Difficulty: Hard

96.
For many employees, their ____________________ is a major source of personal
identity.

Answer: job Page: 21 Difficulty: Medium

18


97.
Research indicates that a large part of an operating manager's day is spent in meetings,
telephone conversations, and solving problems that have a direct impact on
____________________.

Answer: people Page: 27 Difficulty: Hard

98.
Research shows that people don't leave companies; they leave
____________________.

Answer: managers Page: 29 Difficulty: Medium

99.
The ____________________ of an organization or department are the goals it seeks to
achieve.

Answer: objectives Page: 33 Difficulty: Hard

100.
Policies are goals that are specific and ____________________.

Answer: measurable Page: 34a Difficulty: Hard

101.
The actions, language, and performance of the HRM function must be measured,
precisely communicated, and ____________________.

Answer: evaluated Page: 14 Difficulty: Hard

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Chapter 1 Human Resource Management

Ivancevich, Human Resource Management, Ninth Edition

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