Chapter 1 - The Challenge of HRM
Multiple Choice
1. Which is a typical HR activity in an organization?
a. Logistics
b. Merchandise budgeting
c. Market planning
d. Compensation
ANS: D
REF: pg. 4-5
2. Which best defines an HR activity that ensures there are positive and constructive relations between the employees and their supervisors or managers and/or union representatives?
a. Planning
b. Employee and labour relations
c. Performance management
d. Training and development
ANS: B
REF: pg. 5
3. Which is the HR practitioner’s primary role within an organization?
a. To formulate and implement policy.
b. To help equip the line manager with the best people practices so that the organization can be successful.
c. To perform recruitment and training.
d. To liaise between employees and management.
ANS: B
REF: pg. 7
4. Which qualities must line managers have in order to be successful at their position?
a. Technical knowledge only
b. A working knowledge of human resource management
c. Business skills only
d. Interaction with only upper management
ANS: B
REF: pg. 7
5. Which best represents the percentage of Canada’s gross domestic product [GDP] that was exported in 2008?
a. 20
b. 30
c. 40
d. 50
ANS: C
REF: pg. 9
6. Which best defines hiring someone outside the company or bringing in a company to perform tasks that could be done internally?
a. Downsizing
b. Outsourcing
c. Globalization
d. Recruitment
ANS: B
REF: pg. 12
7. Modern technology has brought forth HRIS; which best describes the advantage of such a system?
a. It creates a position for technology workers.
b. It creates less work for HR by doing it all for them.
c. It is a database that can only store and retrieve information.
d. It can assist the human resources practitioner to make skilled decisions based on historical data.
ANS: D
REF: pg. 14
8. Human capital is a term used to describe the value of employees. This value does not show up on a company’s balance sheet but nevertheless has tremendous impact on the organization’s performance. Which does not describe the term “human capital”?
a. Value of knowledge
b. Value of appearance
c. Value of abilities
d. Value of skill
ANS: B
REF: pg. 17
9. Organizations are recognizing the importance of core competencies as a part of their human capital. Which is an example of a core competency?
a. Outsourcing
b. Focus on customer
c. ISO 9000
d. Benchmarking
ANS: B
REF: pg.18
10. Managers must meet customer requirements of quality, innovation, variety, and responsiveness. Which best defines a worldwide approach to quality management standards that can cover both product design and product delivery?
a. Total quality management [TQM]
b. ISO 9000
c. Six Sigma
d. Management by Objectives
ANS: B
REF: pg. 17
11. Which best defines a set of principles and practices whose core ideas include understanding customer needs, doing things right the first time, and striving for continuous improvements?
a. Six Sigma
b. Total Quality Management
c. ISO 9000
d. Benchmarking
ANS: B
REF: pg.17
12. In responding to the markets for improved overall performance, some organizations have turned to “benchmarking” to improve their business position. Which best describes “benchmarking”?
a. “Marking up” benches while trying to come up with the ultimate solution
b. Looking at the best practices in only competing companies
c. Being aware of your closest competition and mimicking their practices
d. Looking at the best practices in other companies, whether they are competitors or not
ANS: D
REF: pg. 17
13. The Conference Board of Canada conducted a study to determine what organizations look for in order to produce new and improved processes, products, and services. Which skills were included in the partial list provided in the textbook?
a. Literacy
b. Mathematics
c. Technology aptitude
d. Adopting a “can-do” attitude
ANS: D
REF: pg. 14
14. Which best describes “Six Sigma”?
a. A process used to translate customer needs into a set of optimal tasks that are performed in concert with the others.
b. A set of principles and practices whose core ideas include understanding customer needs, doing things right the first time and striving for continuous improvement.
c. Contracting outside the organization for work that was formerly done by internal employees.
d. Finding best practices in other organizations that can be brought into a company to enhance performance.
ANS: A
REF: pg. 17
15. Which best defines a key activity by HR professionals that ensures people in the organization are the right people with the right skills, at the right time, and in the right place?
a. Job design
b. Development
c. Performance Management
d. Planning
ANS: D
REF: pg. 5
16. Which best defines a key activity by HR professionals that ensures there are appropriate mechanisms in place to provide feedback to employees on a regular basis?
a. Job design
b. Development
c. Performance Management
d. Planning
ANS: C
REF: pg. 5
17. According to the textbook, for a number of years, the general approach to managing costs was to do an across-the-board reduction or eliminating individuals based on performance. Which best identifies the number of months for a company to realize the savings from these job cuts?
a. 6-8
b. 6
c. 12
d. 6-18
ANS: D
REF: pg. 23
18. Which generation has a tendency to be competitive, optimistic, and respond well to hierarchy?
a. Generation X
b. Baby Boomers
c. Generation Y
d. Veterans
ANS: B
REF: pg. 21
19. Which generation is skeptical, independent, tend to be tech-savvy, career-oriented, and are less comfortable with hierarchy?
a. Generation X
b. Baby Boomers
c. Generation Y
d. Veterans
ANS: A
REF: pg. 21
20. Which best identifies key demographic challenges and employee concerns in the workplace today?
a. A diversified and aging workforce; embracing technology; a concern for privacy
b. A diversified and aging workforce; rising levels of education; balancing work and family
c. The Canadian labour force is more educated; employees want a balance between home and work; globalization
d. Increasing productivity; embracing technology; an educated workforce
ANS: B
REF: pg. 23-24
21. According to the 2006 Census, immigrants represent which percentage of labour force growth in Canada?
a. 70
b. 60
c. 50
d. 40
ANS: A
REF: pg. 20
22. Which best defines a term used to describe how some employers are taking their employees’ personal needs into consideration?
a. Duty to accommodate
b. Culture
c. Flex time
d. Family friendly
ANS: D
REF: pg. 25
23. According to the textbook and a survey conducted by the Canadian Policy Research Networks; the number one important job characteristic is?
a. Good pay
b. Flexible hours and schedules
c. Receive recognition for work well done
d. Free from harassment & discrimination
ANS: D
REF: pg. 25
24. Which is synonymous with PIPEDA?
a. The Peoples’ Information Protection and Electronic Documents Act
b. The Personal Information Protection and Electronic Documents Act
c. The Personal Information Protection and Economic Documents Act
d. The People’s Information Protection and Economic Documents Act
ANS: B
REF: pg. 24
25. The ABC Radio Company’s objective is to deliver excellent customer service. Their selection process screens and hires people with the necessary skills. Their training program reinforces the expectations of customer service and their performance appraisal system rates the employees on their customer service. Which best describes this type of objective?
a. Business strategy
b. Strategic human resource management
c. Human resource processes
d. Business plan
ANS: B
REF: pg. 27
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