Human Capital Management
Chapter Exam Questions
Course Introduction
Human Capital Management explores the strategic approach to effectively recruiting, developing, managing, and retaining an organization's workforce. The course covers essential topics such as talent acquisition, performance management, employee engagement, learning and development, compensation strategies, and the use of technology in HR processes. Students learn how to align human resource practices with organizational goals, foster a positive workplace culture, and support leadership in maximizing employee potential. The course also addresses current trends, legal considerations, and ethical challenges in managing human capital within diverse and dynamic business environments.
Recommended Textbook
Human Resource Management 14th Edition by
Robert L. Mathis
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Chapter 1: Human Resource Management in Organizations
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Q1) Intellectual property is the collective value of the capabilities, knowledge, skills, life experiences, and motivation of an organizational workforce.
A)True
B)False
Answer: False
Q2) Mike, a human resources executive at Oyster Studios, is moving from an operational role in the human resources department to an administrative role. Which of the following best describes Mike's change of role?
A) Moving from processing legal paperwork to serving as a "champion" of employee concerns
B) Moving from serving as a "champion" of employee concerns to helping define the strategy to manage human capital
C) Moving from processing legal paperwork to helping define the strategy to manage human capital
D) Moving from serving as a "champion" of employee concerns to processing legal paperwork
Answer: D
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Chapter 2: Human Resources Strategy and Planning
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Q1) The formula for calculating the potential ROI for a new HR activity = operating cost for a new or enhanced system for a time period + one-time cost of acquisition and implementation/value of gains from productivity improvements for the time period.
A)True
B)False
Answer: False
Q2) In the balanced scorecard framework, which of the following factors would considered most important to ensure that the organization is meeting customer expectations?
A) profit and loss
B) institutional knowledge
C) customer satisfaction
D) utilization of capital
Answer: C
Q3) The SWOT analysis helps managers in formulating a strategic plan that considers the organization's ability to deal with the situation at hand.
A)True
B)False
Answer: True
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Chapter 3: Equal Employment Opportunity
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Q1) The _____ prohibits discrimination in terms, conditions, or privileges of employment against all individuals of age 40 or older working for employers having 20 or more workers.
A) Older Workers Benefit Protections Act
B) Rehabilitation Act
C) Civil Rights Act
D) Age Discrimination in Employment Act
Answer: D
Q2) Employers are allowed to retaliate against individuals who file discrimination charges.
A)True
B)False
Answer: False
Q3) One of the most common means used to control instances of glassceiling in an organization is:
A) avoiding status-blind employment decisions.
B) establishing formal mentoring programs for minority groups.
C) avoiding affirmative action.
D) preventing employees from opting for alternative work arrangements.
Answer: B
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Chapter 4: Workforce, Jobs, and Job Analysis
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Q1) Marginal job functions are duties that are part of a job but are incidental or ancillary to the purpose and nature of the job.
A)True
B)False
Q2) Responsibilities are obligations to perform certain tasks and duties.
A)True
B)False
Q3) Workflow analysis that focuses on making an organization more effective and efficient can be used only in manufacturing organizations.
A)True
B)False
Q4) A job description identifies the tasks, duties, and responsibilities of a job.
A)True
B)False
Q5) The labor force participation rate is the percentage of the population working or seeking work.
A)True
B)False
Q6) Explain workflow analysis.
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Chapter 5: Individualorganization Relations and Retention
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Q1) What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce?
Q2) A financial services firm conducted an attitude survey. It was found that although employees were generally satisfied with their pay, they were dissatisfied with the organization's management style, promotion practices, and training programs. To manage these concerns, it is recommended that the director of HR:
A) work toward finding the employees who had given the negative feedback and increase their salaries.
B) announce the positive results of the survey, while beginning to work in private on solutions to the problems revealed in the survey.
C) hold group meetings with employees to convey the positive and negative survey results and get suggestions for improvements.
D) communicate the positive survey results, and argue against the negative results.
Q3) What are the factors that should be considered when estimating the cost of turnover to an organization?
Q4) Distinguish between functional turnover and dysfunctional turnover.
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Chapter 6: Recruiting and Labor Markets
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Q1) The _____ pool consists of all persons who are actually evaluated for selection.
A) applicant
B) selection
C) labor
D) talent
Q2) John's Medical is recruiting for the post of an oncology nurse practitioner. It would be most effective for John's Medical to advertise:
A) on a microblogging site like Twitter.
B) online recruitment videos on a general job board such as Monster.com or CareerTV.
C) on the Web site of the oncology nurse practitioner professional organization.
D) on a social networking site such as Facebook.
Q3) Employment agencies typically have their own workforce, which they supply by contract to employers with jobs.
A)True
B)False
Q4) Why are realistic job previews important for an organization?
Q5) What are the key requirements of the recruitment process from the employer's perspective?
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Chapter 7: Selecting Human Resources
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Q1) Lack of fit between a person and a job is most likely to result from:
A) mistakes in evaluating the person's KSAs.
B) improper employee training.
C) negligence of exit interviews.
D) a lack of a positive company "brand" that attracts qualified applicants.
Q2) Voltra Inc. is planning to fill a number of openings for entry-level professionals. The selection process is quite extensive and includes several levels of individual interviews, panel interviews, psychological tests, and general ability tests. Much of the interview time is spent on the applicant's philosophy of life and work. Voltra is highly concerned about:
A) defining who is an applicant.
B) complying with EEO and ADA requirements.
C) person/organization fit.
D) matching the person to the job.
Q3) How does the compensatory approach combine predictors?
A) A minimum cutoff is set on each predictor
B) A higher score on one predictor offsets a lower score on another
C) The highest predictor scores for all test takers is used to set an average cutoff
D) Multiple hurdles are set to compensate for the different predictors
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Chapter 8: Training Human Resources
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Q1) To qualify as a tax-preparer for a seasonal job at a tax-preparation chain, Martin must answer written questions on tax terminology covered in the e-learning course provided by the company. This evaluation best exemplifies a _____ measure.
A) results-level
B) learning-level
C) reaction-level
D) behavior-level
Q2) Why do organizations opt for external training?
Q3) Dr. Smith, a veterinarian, has hired Carlos as an assistant. On Carlos's first day at work, Dr. Smith shows him the technique of holding a cat for vaccinations. First, Dr. Smith describes the technique, and then he practically shows the process of vaccination. Later he asks Carlos to hold the cat and corrects his mistakes. This is an example of:
A) cross-training.
B) virtual training.
C) simulation training.
D) on-the-job training.
Q4) What is an orientation program? Why is it important?
Q5) How has the information age changed the concept of competitive advantage?
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Chapter 9: Talent, Careers, and Development
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Q1) Why does the development of certain competencies require redevelopment of employees?
Q2) Gerald is confused as to why his 28-year-old daughter is changing jobs for the third time since she graduated from college. His daughter tells him that she has learned everything she could from her current job and that it is time to move on. Gerald's daughter is in the stage of her career where most people's needs and concerns are:
A) to identify interests and acquire capabilities.
B) to focus on making as high a salary as possible because this affects their earning potential for the rest of their lives.
C) to achieve personal integrity and incorporate their values into their work life.
D) to establish their political power base within their organization.
Q3) Succession planning is not important in countries like China and India, which have growing native workforces.
A)True
B)False
Q4) What does presupervisor training mean?
Q5) Name and define the different views of careers.
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Chapter 10: Performance Management and Appraisal
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Q1) The contrast error occurs when a rater scores an employee high on all job criteria because of performance in one area.
A)True
B)False
Q2) Companies must only use multisource feedback primarily as an administrative tool.
A)True
B)False
Q3) Which of the following is a narrative method of performance appraisals?
A) Behavioral rating scales
B) Critical incident
C) Ranking
D) Forced distribution
Q4) Which of the following is an objective measure of performance?
A) The total number of washing machines sold by an employee
B) A supervisor's rating of an employee's integrity
C) An employee's attitude toward the customer
D) An organization's perceptions of an employee's values
Q5) Discuss management by objectives.
Q6) Describe the different types of performance information.
Page 12
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Chapter 11: Total Rewards and Compensation
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Q1) Which of the following is true of green-circled employees?
A) They are paid above the range set for a job.
B) They are paid below the range set for a job.
C) They are paid on par with the range set for the job.
D) Their pay is not determined by the ranges set for a job.
Q2) Which of the following is a tangible indirect reward?
A) Base pay
B) Health care benefits
C) Challenging work
D) Variable pay
Q3) Which of the following statements is true of the expectancy theory?
A) This theory emphasizes the importance of finding valued rewards for the employee.
B) This theory of motivation was first introduced by John Stacey Adams in 1963.
C) This theory states that individuals judge fairness in compensation by comparing their inputs and outcomes against the inputs and outcomes of referent others.
D) This theory is applicable only to flat organizations with little or no formal structure.
Q4) Define job evaluation.
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Chapter 12: Variable Pay and Executive Compensation
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Q1) Which of the following is the most commonly used frequency of distributing team/group incentives?
A) Monthly
B) Semiannually
C) Annually
D) Quarterly
Q2) Which of the following is an advantage of perquisites?
A) Perks offer substantial tax savings because some of them are not taxed as income.
B) Perks offer substantial tax savings because some of them are not taxed as an expenditure.
C) Perks ensure a source of regular additional income for the employees apart from the salary.
D) Perks help in reducing the total cost of benefits provided by the organization.
Q3) Merchandise, gift certificates, and travel are the most frequently used incentives for recognition awards.
A)True
B)False
Q4) Explain perquisites.
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Chapter 13: Managing Employee Benefits
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Q1) George, a travel agent, shares some of his unused vacation time with his colleague Sam. Is such an arrangement legal in the U.S.?
Q2) Employee benefits can be constructively viewed as a(n):
A) intangible plan that does not affect the costs borne by a company.
B) government-mandated instrument.
C) cultural necessity.
D) tool for competitive advantage.
Q3) Jim, a 23 years old factory worker, was seriously injured when a hammer fell on his head while he was at his work station. Jim hadn't worn his safety helmet at the time of the accident even though the safety rules of the company necessitate the use of safety helmets at all times. Which of the following is true?
A) Jim can claim Social Security benefits.
B) Jim will not receive workers' compensation because he is responsible for the injury.
C) Jim will receive severance payment when he returns to work after his injuries are healed.
D) Jim will receive workers' compensation even though he is responsible for the injury.
Q4) What are the legal regulations regarding early retirement in U.S. companies?
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Chapter 14: Risk Management and Worker Protection
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Q1) Which of the following statements is true of workplace violence?
A) A domestic is a violent person who has a legitimate relationship with a business and has a personal relationship with a victim.
B) High self-esteem is regarded as a characteristic of a potentially violent employee.
C) Incivility is considered a serious crime against which formal action is to be taken.
D) Bullying can result in damage to an organization due to increased employee turnover.
Q2) Workplace standards are researched and developed by the:
A) OSHRC.
B) FLSA.
C) CDC.
D) NIOSH.
Q3) OSHA mandates that in chemical industries, MSDSs be made available ony to the management.
A)True
B)False
Q4) Describe the three components of disaster planning?
Q5) How does the ADA affect recordkeeping practices of an organization?
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Chapter 15: Employee Rights and Responsibilities
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Q1) What are the guidelines that should preferably be followed by employers while storing employee records?
Q2) Several comprehensive whistle-blowing laws fully protect the right to free speech of both public and private employees.
A)True
B)False
Q3) Discipline is most constructively viewed as _____ that enforces organizational rules.
A) persistent persuasion
B) negative reinforcement
C) punishment
D) training
Q4) What is the final step in the disciplinary process?
Q5) The Drug-Free Workplace Act of 1988:
A) covers all intoxicating substances, including alcohol.
B) requires government contractors to take steps to eliminate employee drug use.
C) covers the use of illegal substances both on-the-job and off-the-job.
D) applies only to private sector employers.
Q6) How does procedural justice differ from distributive justice?
Q7) How do ombuds contribute to dispute resolution in organizations?
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Chapter 16: Unionmanagement Relations
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Q1) Describe why employees want to unionize.
Q2) Which of the following represents a group of autonomous national and international unions?
A) Craft unions
B) Industrial unions
C) Congresses
D) Federations
Q3) Which of the following laws has been called the Magna Carta of labor and was pro-union?
A) The Wagner Act
B) The Landrum-Griffin Act
C) The Railway Labor Act
D) The Taft-Hartley Act
Q4) The responsibilities of a human resources unit while handling grievances in a unionized company include:
A) operating within provisions of the grievance procedure.
B) documenting grievance cases for grievance procedures.
C) engaging in grievance prevention efforts.
D) monitoring the trends in grievance rates.
Q5) Describe two union security provisions that organizations commonly provide.
Page 18
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