Fundamentals of Human Resource Management
Midterm Exam
Course Introduction
This course introduces students to the foundational principles of Human Resource Management (HRM), exploring the strategic and operational roles HRM plays within organizations. Key topics include recruitment and selection, training and development, performance management, compensation and benefits, labor relations, and employment law. Emphasizing both theory and practical application, the course examines how effective HRM practices contribute to organizational success and foster positive workplace environments. Through case studies and real-world examples, students gain insights into current trends and challenges in managing human capital in diverse organizational settings.
Recommended Textbook Fundamentals of Human Resource Management 5th Edition by Raymond Noe
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Chapter 1: Managing Human Resources
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Sample Questions
Q1) One of the qualities of human resources is that _____.
A) it is highly substitutable and interchangeable
B) it is easily available for all companies to utilize
C) it is easily imitated by rivals
D) it is negligible in terms of value
E) it is indispensable for building a competitive advantage
Answer: E
Q2) People's right to freedom of speech is the right to:
A) criticize an organization's ethics if they do so in good conscience.
B) refuse to do something that is environmentally unsafe.
C) do as they wish in their private life.
D) be treated only as they knowingly and willingly consent to be treated.
E) prohibit criticism of the organization.
Answer: A
Q3) Human resources cannot be imitated.
A)True
B)False
Answer: True
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3
Chapter 2: Trends in Human Resource Management
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Q1) Which of the following terms refers to a computer system used to acquire,store,manipulate,analyze,retrieve,and distribute information related to an organization's human resources?
A) Electronic performance support systems
B) e-CRM
C) High-performance work systems
D) Self-service systems
E) Human resource information systems
Answer: E
Q2) When forming Citigroup,Citicorp combined its banking business with Traveller's Group's insurance business.This is an example of a merger.
A)True
B)False
Answer: True
Q3) Total quality management is intended to bring about a continuous process of quality improvement.
A)True
B)False
Answer: True
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Page 4
Chapter 3: Providing Equal Employment Opportunity and a Safe Workplace
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Q1) If an OSHA violation results in citations,the employer must post each citation in a prominent place near the location of the violation.
A)True
B)False
Answer: True
Q2) Which of the following is true about Age Discrimination in Employment Act (ADEA)?
A) ADEA favors the idea of coercing employees to accept early-retirement incentives.
B) ADEA permits an employer to reduce the fringe benefits to all employees over 40.
C) ADEA permits companies to lay off older workers when the economy is slow.
D) ADEA outlaws making employment decisions based on a person's age being over 40.
E) ADEA recommends early-retirement incentive programs wherein employees agree not to sue the company for ageism.
Answer: D
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Chapter 4: Analyzing Work and Designing Jobs
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Q1) Which of the following arrangements would qualify as job rotation?
A) A receptionist is required to perform the jobs of file clerk and typist.
B) Training housekeeping staff in front office functions through periods of alternating work arrangements.
C) Members of the production team making decisions regarding how to resolve problems with customers.
D) A manager participating in a meeting while on vacation with his family.
E) A manager directing employees to stop production when quality standards are not met.
Q2) The Position Analysis Questionnaire (PAQ)is meant to be completed by job incumbents.
A)True
B)False
Q3) Work processes are the activities that a work unit's members engage in to produce a given output.
A)True
B)False
Q4) Briefly describe the Position Analysis Questionnaire (PAQ).What the advantages and disadvantages of using the PAQ as source of job information?
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Chapter 5: Planning for and Recruiting Human Resources
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Q1) In human resource planning,forecasting is an intermediary step.
A)True
B)False
Q2) Which of the following is a process used to determine whether there are any subgroups whose proportion in a given job category within a company is substantially different from their proportion in the relevant labor market?
A) Adverse Treatment Analysis
B) Workforce Utilization Review
C) Subgroup Reconciliation
D) Discrimination Analysis
E) Disparity Analysis
Q3) What is forecasting? Describe one method each for forecasting labor demand and supply.
Q4) Statistical models are used for forecasting labor demands because they are good at capturing "once-in-a-lifetime" changes.
A)True
B)False
Q5) What are early-retirement programs? What is a phased-retirement program and what are its benefits?
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Chapter 6: Selecting Employees and Placing Them in Jobs
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Q1) The _____ of an employment test is indicated by the extent to which the test scores relate to the actual job performance.
A) reliability
B) validity
C) generalizability
D) utility
E) dependability
Q2) Review of résumés is most valid when the content of the résumés is evaluated in _____.
A) terms of the elements of a job description
B) comparison with other applicants' qualifications
C) terms of the incumbent's competencies
D) terms of the industrial benchmarks
E) comparison with other employees in the organization
Q3) Why are drug tests a controversial component of the personnel selection process? What are some of the ways in which organizations can avoid problems associated with drug testing?
Q4) Usually a supervisor makes the final employee selection decision.
A)True
B)False
Page 8
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Chapter 7: Training Employees
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Sample Questions
Q1) Needs assessment usually begins with _____.
A) task analysis
B) organization analysis
C) person analysis
D) competitor analysis
E) market analysis
Q2) Which of the following is an on-the-job training program that is generally sponsored by an educational institution as a component of an academic program?
A) Internship.
B) Coordination training.
C) Apprenticeship.
D) Experiential training.
E) Simulation training.
Q3) The most accurate way to evaluate the training program is to:
A) use only a pretest.
B) conduct pretests and train only part of the employees.
C) conduct pretests and posttests on all trainees.
D) use only a posttest.
E) check trainees' performance, knowledge, and attitudes only after training.
Q4) Discuss the three elements of a needs assessment process.
Page 9
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Chapter 8: Managing Employees Performance
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Q1) Performance management is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals.
A)True
B)False
Q2) Appraisal politics are most likely to occur when raters are accountable to the employee being rated.
A)True
B)False
Q3) Generally,peers are more favorable toward participating in reviews to be used for employee development.
A)True
B)False
Q4) The distributional error that occurs when the reviewer rates everyone near the top of a rating scale is known as _____.
A) contrast error
B) strictness
C) halo error
D) horns error
E) leniency
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Chapter 9: Developing Employees for Future Success
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Q1) What are group mentoring programs?
Q2) The development of high-potential employees is a slow process.
A)True
B)False
Q3) The step in the career management process in which employees receive information about their skills and knowledge and where these assets fit into the organization's plans is called:
A) self-assessment.
B) feedback.
C) goal setting.
D) action planning.
E) data gathering.
Q4) The most frequent uses of assessment are to identify employees with managerial potential to measure current managers' strengths and weaknesses.
A)True
B)False
Q5) Women and minorities often have trouble finding mentors.
A)True
B)False
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Chapter 10: Separating and Retaining Employees
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Sample Questions
Q1) Conducting personal business online during work hours is called:
A) cybersquatting.
B) cyber bullying.
C) cyber sleeping.
D) cyberstalking.
E) cyberslacking.
Q2) Creating a formal discipline process is a primary responsibility of the human resource department.
A)True
B)False
Q3) ____ is a process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.
A) Outplacement counseling
B) Mediation
C) Carve-out
D) Arbitration
E) Peer review
Q4) Distinguish between involuntary and voluntary turnover,and give examples of each.
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Page 12
Chapter 11: Establishing a Pay Structure
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Sample Questions
Q1) The compa-ratio:
A) measures the degree to which actual pay is consistent with the pay policy.
B) is defined as average pay for the grade divided by the minimum pay for the grade.
C) can range from 0 to 100 percent.
D) uses data from market-pay surveys.
E) measures the degree to which new skills learnt are consistent with the increases in pay.
Q2) Compensable factors are job characteristics that an organization values and chooses to pay for.
A)True
B)False
Q3) A drawback of pay rates is that they:
A) increase the administrative burden of managing the compensation system.
B) result in decreased promotional opportunities for employees.
C) result in some jobs being underpaid and others being overpaid.
D) increase the costs of surveying the market.
E) grouping jobs will result in rates of pay for individual jobs that precisely match the levels specified by the market.
Q4) What is benchmarking?
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Chapter 12: Recognizing Employee Contributions With Pay
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Q1) Straight commission plans:
A) imply that the employees receive a straight salary.
B) are useful when the organization wants salespeople to concentrate on listening to customers.
C) help to attract employees risk-averse employees.
D) are common among insurance and real estate agents.
E) are not common among car salespeople.
Q2) What are the different types of piecework rates? Explain each of them.
Q3) A company provides wages to its employees based on the amount workers produce.The more employees produce,the more they earn.This type of plan is called:
A) piecework rate plan.
B) merit pay plan.
C) Scanlon plan.
D) profit sharing plan.
E) standard hour plan.
Q4) Piecework rates are most suited for routine,standardized jobs with output that is easy to measure.
A)True
B)False
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Chapter 13: Providing Employee Benefits
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Q1) Cafeteria-style plans permit employees to choose the types and amounts of benefits they want for themselves from a given set of alternatives.
A)True
B)False
Q2) The cost of a worker's compensation insurance depends on:
A) the profit earned by the organization during the concerned fiscal.
B) the number of years the concerned worker has been working in the organization.
C) the total strength of the organization's workforce.
D) the number of years for which the organization has been in business.
E) the state where the company is located.
Q3) Workers are eligible for unemployment benefits if they:
A) voluntarily quit a job.
B) are out of work due to health reasons.
C) were discharged for cause.
D) are actively seeking work.
E) are out of work because of a labor dispute.
Q4) Tax laws generally make benefits unfavorable to employees.
A)True
B)False
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Chapter 14: Collective Bargaining and Labor Relations
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Q1) If at least 30 percent of an organization's employees sign an authorization card,the union may request that the employer voluntarily recognize the union.
A)True
B)False
Q2) How is an industrial union different from a craft union?
A) All the members of an industrial union have a particular skill or occupation.
B) An industrial union is often responsible for training its members through apprenticeships.
C) An industrial union organizes as many employees in as wide a range of skills.
D) An industrial union represents a particular occupation.
E) An industrial union's members change employers more often.
Q3) The traditional understanding of union-management relations is that the two parties are mutually beneficial to each other.
A)True
B)False
Q4) Integrative bargaining focuses on establishing a relationship of trust.
A)True
B)False
Q5) Why has there been a steady decline in union membership in the United States?
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Chapter 15: Managing Human Resources Globally
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Q1) What are the reasons behind the trend toward expansion into global markets?
Q2) A country that is neither the parent country nor the host country for a company is referred to as a:
A) first country.
B) facilitating country.
C) governing country.
D) third country.
E) guest country.
Q3) Which of the following is a benefit of having a wide latitude in reducing workforce?
A) It gives the option of hiring for peak needs and laying off employees if needs decline.
B) It helps in protecting workers' jobs.
C) It helps employees to adjust to a new culture.
D) It allows workers to keep more of their earnings regardless of the taxes they pay.
E) It gives employers the advantage to choose from local workers or immigrant workers according to the work requirement.
Q4) Discuss how economic systems impact HRM in international markets.
Q5) Explain Hofstede's dimensions of culture.
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Chapter 16: Creating and Maintaining High-Performance Organizations
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Q1) An organization's HR department makes most decisions about organizational structure.
A)True
B)False
Q2) Which of the following is a business indicator of the overall effectiveness of HR activities?
A) Ratio of personnel staff to employee population
B) Accuracy and clarity of information provided to managers and employees
C) Competence and expertise of staff
D) Working relationship between organizations and HRM department
E) Assistance in identifying management potential
Q3) _____ is a display of a series of HR measures,showing human resource goals and objectives and progress toward meeting them.
A) Performance review template
B) Job preview
C) Expert system
D) HR dashboard
E) Relational database
Q4) Discuss the concept of occupational intimacy.
Q5) What is a learning organization? What are its key features?
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