Test Bank for Human Resource Management 15th Edition by Joseph Martocchio by welldoneassistant

Human Resource Management, 15e (Martocchio) Chapter 1 Human Resource Management: An Overview 1) The utilization of individuals to achieve organizational objectives is known as ________. A) human resource leadership B) human resource management C) human resource staffing D) human resource planning Answer: B Explanation: Human resource management (HRM) is the utilization of individuals to achieve organizational objectives. Basically, all managers get things done through the efforts of others. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 2) HR professionals only work with ________. A) other HR professionals B) only HR specialists C) all managers throughout the company D) every person who has applied for employment Answer: C Explanation: Human resource management (HRM) is the use of individuals to achieve organizational objectives. Basically, all managers get things done through the efforts of others. Consequently, managers at every level must concern themselves with HRM. Individuals dealing with human resource matters face a multitude of challenges, ranging from a constantly changing workforce to ever-present government regulations, a technological revolution, and the economy of the United States and the world. Furthermore, global competition has forced both large and small organizations to be more conscious of costs and productivity. Because of the critical nature of human resource issues, these matters must receive major attention from upper management. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 3) Human resource management (HRM) is the utilization of individuals to achieve organizational objectives. Answer: TRUE Explanation: Human resource management (HRM) is the utilization of individuals to achieve organizational objectives. Basically, all managers get things done through the efforts of others. Consequently, managers at every level must concern themselves with HRM. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

4) Global competition is rarely relevant to the work of HR professionals. Answer: FALSE Explanation: Global competition has forced both large and small organizations to be more conscious of costs and productivity. Because of the critical nature of human resource issues, these matters must receive major attention from upper management. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 5) What is human resource management? What are the six functional areas of HRM? Answer: Human resource management (HRM) is the utilization of individuals to achieve organizational objectives. Basically, all managers get things done through the efforts of others. Consequently, managers at every level must concern themselves with HRM. Six functional areas are associated with effective HRM: staffing, HR development, performance management, compensation, safety and health, and employee and labor relations. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 6) What is the staffing function of HRM? Identify and discuss what staffing involves. Answer: Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Staffing involves the following activities: job analysis, human resource planning, recruitment, and selection. Job analysis is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. It impacts virtually every aspect of HRM. Human resource planning is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period. The data provided set the stage for other HR actions. Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications to apply for jobs with an organization. Selection is the process of choosing the individual best suited for a position and the organization from a group of applicants. Diff: 3 Skill: Synthesis AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

7) Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Answer: TRUE Explanation: Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 8) The staffing process involves all of the following functions EXCEPT ________. A) job analysis B) recruitment C) product placement D) selection Answer: C Explanation: Staffing involves job analysis, human resource planning, recruitment, and selection. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 9) Lauren is an HR manager at a marketing firm. Which of the following functions is LEAST likely to be an aspect of Lauren's job? A) staffing B) employee safety C) product testing D) employee and labor relations Answer: C Explanation: Six functional areas are associated with effective HRM: staffing, HR development, performance management, compensation, safety and health, and employee and labor relations. Diff: 1 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it

10) Many HR departments are most likely becoming smaller because ________. A) federal agencies monitor HR functions B) HR telecommuting is gaining popularity C) external groups are performing HR functions D) there is no way to explain the role of HR professionals as strategic business partners Answer: C Explanation: Many HR departments continue to get smaller because others outside the HR department are now performing certain functions. HR outsourcing, shared service centers, professional employer organizations, and line managers now assist in the accomplishment of many traditional human resource activities. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 11) What is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization? A) strategic planning B) job enlargement C) recruitment D) job analysis Answer: D Explanation: Job analysis is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. It impacts virtually every aspect of HRM, including planning, recruitment, and selection. Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications to apply for jobs with an organization. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 12) The systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time is referred to as ________. A) HR planning B) recruitment C) job analysis D) performance appraisal Answer: A Explanation: Human resource planning is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period. The data provided set the stage for recruitment or other HR actions. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 4 Copyright © 2019 Pearson Education, Inc.

13) The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization is referred to as ________. A) HR planning B) selection C) appraisal D) recruitment Answer: D Explanation: Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization. Human resource planning is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period. The data provided set the stage for recruitment or other HR actions. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 14) Lyle, an HR specialist at a publishing company, is in the process of choosing from a group of applicants the individual best suited for an assistant editor position. Lyle is most likely involved in the function of ________. A) recruitment B) HR planning C) job analysis D) selection Answer: D Explanation: Selection is the process of choosing from a group of applicants the individual best suited for a particular position and the organization. Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it

15) Which HRM function consists of training and development, individual career planning and development activities, organization development, and performance management and appraisal? A) management by objectives B) employee and labor relations C) organizational development D) human resource development Answer: D Explanation: Human resource development is a major HRM function consisting not only of training and development but also of career planning and development activities, organization development, and performance management and appraisal. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 16) Connor works as an accountant at Price Waterhouse and is scheduled to meet with his manager for a formal review and evaluation of his strengths and weaknesses. In which of the following activities is Connor most likely participating? A) performance appraisal B) career development C) succession planning D) job analysis Answer: A Explanation: Performance appraisal is a formal system of review and evaluation of individual or team task performance. It affords employees the opportunity to capitalize on their strengths and overcome identified deficiencies, thereby helping them to become more satisfied and productive employees. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it 17) Which of the following provides learners with the knowledge and skills needed for their present jobs? A) training B) development C) career planning D) succession planning Answer: A Explanation: Training is designed to provide learners with the knowledge and skills needed for their present jobs. Development involves learning that goes beyond today's job and has a more long-term focus. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 6 Copyright © 2019 Pearson Education, Inc.

18) Which of the following involves learning that goes beyond today's job and has a more longterm focus? A) training B) career planning C) development D) organizational development Answer: C Explanation: Development involves learning that goes beyond today's job and has a more longterm focus. Training is designed to provide learners with the knowledge and skills needed for their present jobs. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 19) An ongoing process whereby an individual sets career goals and identifies the means to achieve them is called ________. A) succession planning B) career development C) career planning D) training Answer: C Explanation: Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. Career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

20) According to the U.S. Bureau of Labor Statistics, and a survey conducted by LinkedIn revealed that today's employees under the age of 32 will work for approximately ________ companies and will change careers ________ times in their working lives. A) 3; 3 B) 5; 6 C) 7 to 10; 4 D) 11 to 13; 5 Answer: C Explanation: According to the U.S. Bureau of Labor Statistics, today's employees will work for approximately 7 to 10 companies during their careers based on the assumption that most people will work 30 to 40 years. A survey conducted by LinkedIn revealed that on average, individuals under the age of 32 change jobs four times. Employee loyalty loses its meaning in this environment. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 21) A formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed is referred to as ________. A) career development B) succession planning C) career planning D) performance management Answer: A Explanation: Career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

22) Which term refers to the planned and systematic attempt to change an organization and improve its performance? A) organization development B) corporate development C) performance management D) organization training Answer: A Explanation: Organization development (OD) is planned and systematic attempts to change the organization (corporate culture), typically to a more behavioral environment. OD applies to an entire system, such as a company or a plant. Numerous OD methods are discussed that serve to improve a firm's performance. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 23) Which of the following terms refers to a goal-oriented process that is directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and the organization? A) team strategic management B) performance management C) organization development D) career development Answer: B Explanation: Performance management is a goal-oriented process that is directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 24) Raj, a software engineer, recently met with his manager for a review and evaluation of Raj's performance over the last six months. In which of the following did Raj most likely participate? A) performance management B) performance appraisal C) organizational appraisal D) succession planning Answer: B Explanation: Performance appraisal is a formal system of review and evaluation of individual or team task performance. It affords employees the opportunity to capitalize on their strengths and overcome identified deficiencies, thereby helping them to become more satisfied and productive employees. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it 9 Copyright © 2019 Pearson Education, Inc.

25) What HR tool gives employees the opportunity to capitalize on their strengths and overcome identified deficiencies? A) manager self-service B) employee orientation C) performance appraisal D) selection tests Answer: C Explanation: Performance appraisal is a formal system of review and evaluation of individual or team task performance. It affords employees the opportunity to capitalize on their strengths and overcome identified deficiencies, thereby helping them to become more satisfied and productive employees. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 26) Compensation, as described in your text, refers to the ________. A) total of all rewards provided to employees in return for their services B) wages individuals receive each pay period C) wage schedules and wage rates listed in the union contract D) internal alignment of intrinsic awards Answer: A Explanation: As used in the book, the term "compensation" includes the total of all rewards provided to employees in return for their services. The rewards may be one or a combination of direct financial compensation, indirect financial compensation, and nonfinancial compensation. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 27) All of the following are categories of employee compensation EXCEPT ________. A) direct financial B) nonfinancial C) indirect financial D) human capital Answer: D Explanation: As used in the text, the term "compensation" includes the total of all rewards provided to employees in return for their services. The rewards may be one or a combination of direct financial compensation, indirect financial compensation, and nonfinancial compensation. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

28) Wages, salaries, and commissions are most likely examples of ________. A) direct financial compensation B) indirect financial compensation C) employment incentives D) employment benefits Answer: A Explanation: Direct financial compensation is the pay that a person receives in the form of wages, salaries, commissions, and bonuses. Indirect financial compensation refers to the financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 29) Ellen enjoys working at Starbucks because of her interactions with customers and coworkers. The satisfaction that Ellen feels would best be categorized as ________. A) emotional health B) nonfinancial compensation C) performance satisfaction D) indirect financial compensation Answer: B Explanation: Nonfinancial compensation is the satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works. Diff: 3 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it 30) Ben works at a small advertising agency as a graphic artist. Ben enjoys his job because the company allows employees to have flexible schedules and to telecommute when necessary. Which of the following best describes this type of employee compensation? A) indirect financial compensation B) direct financial compensation C) nonfinancial compensation D) required compensation Answer: C Explanation: Nonfinancial compensation refers to the physical environment in which the person works, which includes the schedule the firm allows. Flexible scheduling and telecommuting are neither direct nor indirect forms of financial compensation. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it

31) As a public school teacher, Molly has accrued 14 days of sick leave, which is a type of ________ compensation. A) direct financial B) indirect financial C) nonfinancial D) mandatory Answer: B Explanation: Indirect financial compensation refers to the financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance. Nonfinancial compensation is the satisfaction that a person receives from the job itself or from the psychological and/or physical environment in which the person works. Diff: 3 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it 32) What is the primary reason that firms are more attentive to employee safety and health than they were in the past? A) federal legislation B) health care costs C) labor unions D) tax benefits Answer: A Explanation: Today, because of federal and state legislation that reflects societal concern, most organizations have become attentive to their employees' safety and health. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 33) What human resource management task involves protecting employees from injuries caused by work-related accidents? A) accident prevention B) injury analysis C) job analysis D) safety Answer: D Explanation: Safety involves protecting employees from injuries caused by work-related accidents. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

34) Healthy and safe employees are more likely to ________. A) earn managerial promotions B) request salary increases C) remain productive D) join labor unions Answer: C Explanation: Health and safety are important because employees who work in a safe environment and enjoy good health are more likely to be productive and yield long-term benefits to the organization. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 35) Approximately half of all employees at ABC Manufacturing are union members. Which of the following is ABC Manufacturing required by law to do with the labor unions? A) bargain with them in good faith B) make concessions to them C) help them organize activities D) pay dues for their new members Answer: A Explanation: Businesses are required by law to recognize a union and bargain with it in good faith if the firm's employees want the union to represent them. In the past, this relationship was an accepted way of life for many employers, but most firms today would rather have a union-free environment. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it 36) What human resource task pervades all functional areas of human resource management? A) health and safety B) development C) training D) data analytics Answer: D Explanation: Although human resource data analytics is not a distinct HRM function, it pervades all functional areas, and the researcher's laboratory is the entire work environment. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

37) Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve the organization's objectives. Answer: TRUE Explanation: Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Staffing involves job analysis, human resource planning, recruitment, and selection. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 38) All HRM functional areas are highly interrelated. Answer: TRUE Explanation: All HRM functional areas are highly interrelated. Management must recognize that decisions in one area will affect other areas. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 39) Human resource planning is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. Answer: FALSE Explanation: Human resource planning involves matching internal and external supplies of people with job openings over a specific period of time. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 40) Recruitment is the process of attracting qualified individuals and encouraging them to apply for work with the organization. Answer: TRUE Explanation: Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply for jobs with an organization. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

41) Human resource development involves training, career planning, organization development, and performance management. Answer: TRUE Explanation: Human resource development is a major HRM function consisting not only of training and development but also of career planning and development activities, organization development, and performance management and appraisal. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 42) Training primarily focuses on the long-term career needs of employees. Answer: FALSE Explanation: Training is designed to provide learners with the knowledge and skills needed for their present jobs. Development involves learning that goes beyond today's job and has a more long-term focus. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 43) Development involves learning that goes beyond an employee's present job. Answer: TRUE Explanation: Development involves learning that goes beyond today's job and has a more longterm focus. Training is designed to provide learners with the knowledge and skills needed for their present jobs. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 44) Career planning is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Answer: FALSE Explanation: Career planning is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. Career development is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are available when needed. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

45) Organization development is the planned and systematic attempts to change the organization, typically to a more behavioral environment. Answer: TRUE Explanation: Organization development (OD) is planned and systematic attempts to change the organization (corporate culture), typically to a more behavioral environment. OD applies to an entire system, such as a company or a plant. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 46) Performance management is a formal system of review and evaluation of individual or team task performance. Answer: FALSE Explanation: Performance appraisal is a formal system of review and evaluation of individual or team task performance. Performance management is a goal-oriented process that is directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 47) Indirect financial compensation is the pay that a person receives in the form of wages, salaries, commissions, and bonuses. Answer: FALSE Explanation: Direct financial compensation is the pay that a person receives in the form of wages, salaries, commissions, and bonuses. Indirect financial compensation, which is also known as benefits, refers to all financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 48) Labor relations requires HR specialists to negotiate with competing businesses for market share. Answer: FALSE Explanation: When a labor union represents a firm's employees, the human resource activity is often referred to as labor relations, which handles the job of collective bargaining. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

49) Today, most firms would prefer having employees belong to unions because the unions handle health benefits. Answer: FALSE Explanation: Businesses are required by law to recognize a union and bargain with it in good faith if the firm's employees want the union to represent them. In the past, this relationship was an accepted way of life for many employers, but most firms today would rather have a union-free environment. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 50) Employee health and safety are a primary concern for businesses because of numerous federal and state laws. Answer: TRUE Explanation: Safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees' freedom from physical or emotional illness. Today, because of federal and state legislation that reflects societal concern, most organizations have become attentive to their employees' safety and health needs. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 51) Human resource data analytics is a traditional HRM function that requires a special department in most large firms. Answer: FALSE Explanation: Although human resource data analytics is not a traditional HRM function, it pervades all functional areas. Analyzing employment data (e.g, employee productivity) and business outcomes (e.g., profits) has empowered HR professionals to quantify its influence. In 2016, 51 percent of companies correlated business outcomes with HR programs, which is up from 38 percent just one year earlier. Data analytics go a long way toward establishing the HRM function as a strategic business partner. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it

52) What is HR data analytics? Why would HR data analytics be important for a firm? Answer: Although human resource data analytics is not a traditional HRM function, it pervades all functional areas. Analyzing employment data (e.g, employee productivity) and business outcomes (e.g., profits) has empowered HR professionals to quantify its influence. In 2016, 51 percent of companies correlated business outcomes with HR programs, which is up from 38 percent just one year earlier. Data analytics go a long way toward establishing the HRM function as a strategic business partner. Diff: 3 Skill: Critical thinking AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 53) Which term refers to the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation? A) political party B) organization C) internal employee relations D) PEO Answer: C Explanation: Internal employee relations comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.1: Define human resource management (HRM) and the importance of studying it 54) Jenny works in the HR department of Southwest Airlines, and she specializes in labor relations. In which of the following activities would Jenny most likely participate? A) outsourcing tasks B) testing job candidates C) handling collective bargaining D) monitoring employee safety issues Answer: C Explanation: When a labor union represents a firm's employees, the human resource activity is often referred to as labor relations, which handles the job of collective bargaining. Jenny is less likely to deal with outsourcing, testing, or monitoring safety. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.1: Define human resource management (HRM) and the importance of studying it

55) External data gathered through which means can help HR professionals develop strategies for attracting top talent? A) hiring patterns and turnover B) social media outlets C) demographic information D) all of the above Answer: D Explanation: Externally, data gathered through social media outlets, demographic information, hiring patterns, and turnover can help HR professionals develop strategies for attracting top talent. Diff: 3 Skill: Concept AACSB: Information technology LO: 1.1: Define human resource management (HRM) and the importance of studying it 56) As an HR manager in charge of staffing for a restaurant chain, John is most likely NOT responsible for ________. A) training B) job analysis C) recruitment D) selection Answer: A Explanation: Staffing is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, at the right time, to achieve organizational objectives. Staffing involves job analysis, human resource planning, recruitment, and selection. Training is an aspect of HR development. Diff: 3 Skill: Concept AACSB: Application of knowledge LO: 1.2: Describe who performs HRM 57) Jennifer works in an advisory or staff capacity, working with other managers to help them deal with human resource matters. Jennifer is most likely employed as a(n) ________. A) account executive B) line manager C) HR management professional D) project manager Answer: C Explanation: A human resource management professional typically acts in an advisory or staff capacity, working with other managers to help them deal with human resource matters. The HRM professional has been primarily responsible for coordinating the management of HR to help the organization achieve its goals. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.2: Describe who performs HRM 19 Copyright © 2019 Pearson Education, Inc.

58) The human resource management professional normally operates in what capacity? A) line B) production C) matrix D) staff Answer: D Explanation: A human resource management professional typically acts in an advisory or staff capacity, working with other managers to help them deal with human resource matters. The HRM professional is primarily responsible for coordinating the management of HR to help the organization achieve its goals. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 59) The process of hiring an external provider to do the work that was previously done internally is referred to as ________. A) broadbanding B) job enlarging C) outsourcing D) onboarding Answer: C Explanation: HR outsourcing is the process of hiring external HR professionals to do the HR work that was previously done internally. Today, outsourcing agreements are focusing more on quality of service and saving time, which is often more important than saving money. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 60) Lee Shultz, the operations manager for Acme Bolts, has just learned that an experienced arc welder has resigned. He contacts the manager of human resources, Reba Cole, asking her to send him some qualified welders for him to interview. In this case, ________. A) Lee is only concerned about accomplishing operations goals B) Reba is only concerned about accomplishing human resource goals C) Lee and Reba see organizational goals from the same perspective D) both are concerned with accomplishing organizational goals, but from different perspectives Answer: D Explanation: Lee's primary responsibility is operations; Reba's primary responsibility is human resources. However, both Lee and Reba are concerned with accomplishing organizational goals, even though their perspectives are different. Diff: 3 Skill: Concept AACSB: Application of knowledge LO: 1.2: Describe who performs HRM

61) Today HR outsourcing can be done in different ways. Which of the following is one of those ways? A) discrete services outsourcing B) project management outsourcing C) external recruitment process outsourcing D) parts supply outsourcing Answer: A Explanation: HR outsourcing is done in different ways, including discrete services and business process outsourcing. With discrete services, one element of a business process or a single set of high-volume repetitive functions is outsourced to a third party. Business process outsourcing (BPO) represents the transfer of the majority of HR services to a third party. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 62) A firm that outsources only benefits administration to a third party is most likely using ________. A) discrete services B) multiprocess services C) business process outsourcing D) single service outsourcing Answer: A Explanation: With discrete services, one element of a business process or a single set of highvolume repetitive functions is outsourced to a third party. Benefits have been the HR task most likely to be outsourced. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 63) Whirlpool Corporation has an agreement with IBM for the HR outsourcer to handle Whirlpool's workforce administration, compensation, recruitment, training, and performance reporting. This type of outsourcing is known as ________. A) process control outsourcing B) discrete services outsourcing C) business process outsourcing D) single task outsourcing Answer: C Explanation: Business process outsourcing (BPO) represents the transfer of the majority of HR services to a third party. Diff: 2 Skill: Concept AACSB: Application of knowledge LO: 1.2: Describe who performs HRM

64) Which HR task is most likely to be outsourced? A) training and development B) benefits administration C) payroll and compensation D) recruitment Answer: B Explanation: Benefits have been the HR task most likely to be outsourced. "Benefits administration has become so complex that it really takes someone who works with it every single day to keep track of all of the different laws and changes that are going on," said Dan Thomas, president of Trivalent Benefits Consulting Inc. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 65) Which of the following takes routine, transaction-based activities that are dispersed throughout the organization and consolidates them in one place? A) outsourcing centers B) shared service centers C) consolidation centers D) human resource centers Answer: B Explanation: A shared service center (SSC), also known as a center of expertise, takes routine, transaction-based activities dispersed throughout the organization and consolidates them in one place. Shared service centers provide an alternative to HR outsourcing and can often provide the same cost savings and customer service. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 66) Shared service centers provide an alternative to HR ________ and can often provide the same cost savings and customer service. A) outsourcing B) onboarding C) broadbanding D) downsizing Answer: A Explanation: A shared service center (SSC), also known as a center of expertise, takes routine, transaction based activities dispersed throughout the organization and consolidates them in one place. Shared service centers provide an alternative to HR outsourcing and can often provide the same cost savings and customer service. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 22 Copyright © 2019 Pearson Education, Inc.

67) Which term refers to a company that leases employees to other businesses? A) shared service center B) human resource provider C) external employer organization D) professional employer organization Answer: D Explanation: A professional employer organization (PEO) is a company that leases employees to other businesses. When a decision is made to use a PEO, the company releases its employees, who are then hired by the PEO. The PEO then manages the administrative needs associated with employees. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 68) Which of the following is a TRUE statement about professional employer organizations? A) PEOs have the right to hire and fire the client company's employees. B) PEOs are less popular than in the past due to technology improvements. C) PEOs run day-to-day operations for client companies. D) PEOs lease employees from other businesses. Answer: A Explanation: Since the PEO is the employees' legal employer it has the right to hire, fire, discipline, and reassign an employee. PEOs permit business owners to focus on their core business, whereas the PEO handles HR activities. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM

69) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The firm employs 700 people and expects to hire more in the next few years. Currently, all of the firm's HR tasks are handled internally by Shelby's HR department. However, top executives at Shelby are considering the idea of outsourcing benefits administration. Which of the following questions is LEAST relevant to the decision to outsource Shelby's benefits administration tasks? A) What is the cost difference for Shelby between handling benefits internally and externally? B) How much time is spent by Shelby's HR department handling benefits administration tasks? C) Which Shelby HR professional should oversee benefits administration at the shared service center? D) How knowledgeable is Shelby's HR staff about benefits administration and federal health care laws? Answer: C Explanation: Questions about cost, time, and legal knowledge are particularly important to ask before Shelby outsources any HR tasks. A shared service center is not a form of outsourcing. SSCs consolidate an organization's HR activities into one location and handle the HR tasks internally. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.2: Describe who performs HRM 70) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The firm employs 700 people and expects to hire more in the next few years. Currently, all of the firm's HR tasks are handled internally by Shelby's HR department. However, top executives at Shelby are considering the idea of outsourcing benefits administration. Which of the following best supports the idea of outsourcing benefits administration? A) Shelby employees enroll for health benefits through the firm's intranet. B) Shelby's HR manager recently participated in a strategic planning session. C) The benefits specialist at HR is knowledgeable about changing health care laws. D) Benefits administration is highly time consuming for the Shelby HR department. Answer: D Explanation: Benefits administration can be a high-volume, repetitive task that is time consuming for HR professionals. Outsourcing benefits administration would allow the HR department to focus on strategic organizational issues. Also, benefits administration has become so complex that it takes someone who works regularly with benefits administration to keep track of all of the different laws and changes that are going on. If Shelby has a specialist who understands the laws, then outsourcing is unnecessary. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.2: Describe who performs HRM

71) Shelby Organic Foods is a fast growing firm that produces organic frozen food entrees. The firm employs 700 people and expects to hire more in the next few years. Currently, all of the firm's HR tasks are handled internally by Shelby's HR department. However, top executives at Shelby are considering the idea of outsourcing benefits administration. Which of the following most likely undermines the idea of outsourcing benefits administration? A) Employees use Shelby's intranet to self-manage their own benefits. B) Staff managers at Shelby discuss benefits packages with new employees. C) Shelby's HR manager regularly meets with the firm's insurance provider. D) Shelby recently began offering employees a flexible spending plan for benefits. Answer: A Explanation: If the employees at Shelby are able to manage their own benefits through the firm's intranet, then outsourcing may not be necessary at this time because the HR department is most likely not overwhelmed with benefits administration tasks. Discussing benefits information, changing providers, and offering flexible benefits are less relevant to the decision to outsource. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.2: Describe who performs HRM 72) Which term refers to individuals that are directly involved in accomplishing the primary purpose of the organization? A) HR managers B) line managers C) staff managers D) sales managers Answer: B Explanation: Individuals directly involved in accomplishing the primary purpose of the organization are line managers. As the traditional work of HR managers diminishes, line managers are stepping up and performing some duties typically done by HR professionals. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM

73) Why are line managers most likely performing more HR tasks today? A) competition from PEOs B) implementation of EEO laws C) automation of HR processes D) expansion of HR departments Answer: C Explanation: Managers are being assisted by manager self-service, the use of software, and the corporate network to automate paper-based human resource processes that require a manager's approval, recordkeeping or input, and processes that support the manager's job. Everything from recruitment, selection, performance appraisal, to employee development has been automated to assist line managers in performing traditional HR tasks. Diff: 3 Skill: Concept AACSB: Information technology LO: 1.2: Describe who performs HRM 74) A human resource management professional is an individual who normally acts in an advisory or staff capacity by assisting other managers with HR issues. Answer: TRUE Explanation: Traditionally, a human resource management professional is an individual who normally acted in an advisory or staff capacity, working with other managers to help them deal with HR matters. The HRM professional is primarily responsible for coordinating the management of human resources to help the organization achieve its goals. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 75) In today's workplace, outsourcing is focused more on saving money than on improving service quality and saving time. Answer: FALSE Explanation: Today, outsourcing agreements are focusing more on quality of service and saving time, which is often more important that saving money. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM

76) Business process outsourcing involves transferring one element of a business process, such as benefits administration, to a third party. Answer: FALSE Explanation: Business process outsourcing (BPO) represents the transfer of the majority of HR services to a third party. With discrete services outsourcing, one element of a business process or a single set of high-volume repetitive functions is outsourced to a third party. Benefits have been the HR task most likely to be outsourced with discrete services. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 77) A shared service center (SSC), also known as a center of expertise, takes routine, transactionbased activities dispersed throughout the organization and consolidates them in one place. Answer: TRUE Explanation: A shared service center (SSC), also known as a center of expertise, takes routine, transaction-based activities dispersed throughout the organization and consolidates them in one place. For example, a company with 20 strategic business units could consolidate routine HR tasks and perform them in one location. Shared service centers provide an alternative to HR outsourcing and can often provide the same cost savings and customer service. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 78) A professional employer organization (PEO) leases employees to other organizations. Answer: TRUE Explanation: When a decision is made to use a PEO, the company releases its employees. The PEO hires those employees and leases them to the company. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 79) Shared service centers typically handle tasks associated with benefits and pension administration, payroll, and relocation assistance, but succession planning and global training activities remain the responsibility of the firm's HR department. Answer: FALSE Explanation: The most common HR functions that use SSCs are benefits and pension administration, payroll, relocation assistance and recruitment support, global training and development, succession planning, and talent retention. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM

80) Billings Manufacturing has made the decision to use a professional employer organization. As a result, Billings will release its employees, who will then be hired by the PEO. Answer: TRUE Explanation: A professional employer organization (PEO) is a company that leases employees to other businesses. When a decision is made to use a PEO, the company releases its employees, who are then hired by the PEO. The PEO then manages the administrative needs associated with employees. Diff: 2 Skill: Application AACSB: Application of knowledge LO: 1.2: Describe who performs HRM 81) Individuals directly involved in accomplishing the primary purpose of the organization are line managers. Answer: TRUE Explanation: Individuals directly involved in accomplishing the primary purpose of the organization are line managers. As the traditional work of HR managers diminishes, line managers are stepping up and performing some duties typically done by human resource professionals. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 82) What is a line manager and what role does a line manager play in HR? Why do you think line managers are involved with HR now more than in the past? Answer: Individuals directly involved in accomplishing the primary purpose of the organization are line managers. As the traditional work of HR managers diminishes, line managers are stepping up and performing some duties typically done by human resource professionals. Automation has assisted greatly in this process. Managers are being assisted by manager selfservice, the use of software, and the corporate network to automate paper-based human resource processes that require a manager's approval, recordkeeping or input, and processes that support the manager's job. Everything from recruitment, selection, performance appraisal, to employee development has been automated to assist line managers in performing traditional HR tasks. Diff: 3 Skill: Critical thinking AACSB: Analytical thinking LO: 1.2: Describe who performs HRM

83) A top-level manager who reports directly to a corporation's chief executive officer or to the head of a major division is a(n) ________. A) generalist B) executive C) specialist D) manager Answer: B Explanation: Various designations are used within the HR profession; among these are HR executives, generalists, and specialists. An executive is a top-level manager who reports directly to the corporation's chief executive officer (CEO) or to the head of a major division. A generalist, who may be an executive, performs tasks in a variety of HR-related areas. Diff: 2 Skill: Concept AACSB: Reflective thinking LO: 1.2: Describe who performs HRM 84) Which is the designation within the HR profession that may be an HR executive, manager, or nonmanager who is typically concerned with only one of the six functional areas of HRM? A) executive B) generalist C) manager D) specialist Answer: D Explanation: A specialist may be an HR executive, manager, or non manager who is typically concerned with only one of the six functional areas of HRM. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.2: Describe who performs HRM 85) In recent years, HR professionals have increasingly been expected to ________. A) serve as strategic partners B) handle administrative tasks C) implement federal guidelines D) act as employee advocates Answer: A Explanation: Today, HR professionals are increasingly expected to take on the role of being a strategic partner with upper management. No longer is an administrative and compliance role acceptable as their primary jobs. As a strategic business partner, HR professionals are able to focus on matters that are truly important to the company as a whole. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

86) The duties of today's HR professionals are focused toward ________. A) keeping track of government regulations B) supporting day-to-day operational processes C) solving strategic matters that are truly important to the company D) solving transactional problems in the organization Answer: C Explanation: Today, HR professionals are increasingly taking on the role of being a strategic partner with upper management. As a strategic business partner, HR professionals are able to focus on matters that are truly important to the company as a whole. As a strategic business partner, HR helps to identify and develop the employees necessary for excellent performance, builds recruitment systems, training programs for product distribution and interactions with customers, constructs performance management, and structures compensation programs that will greatly incentivize these employees to excel. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 87) The rapidly evolving world of HR will increasingly require HR professionals to ________. A) focus exclusively on learning new trends in the HR profession B) thoroughly understand all aspects of what the companies they work for do C) focus their attention on compliance with government regulation D) integrate their operations with the finance department operations Answer: B Explanation: The rapidly evolving world of HR will increasingly require HR professionals to thoroughly understand all aspects of what the companies they work for do. Essentially, they must know more than just HR work. In moving from a transactional to a strategic model, HR professionals work toward solving strategic problems in the organization. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

88) A useful way to better understand how HR serves as a strategic business partner is to think about the use of the following for value creation: ________. A) balance sheet B) capital C) outsourcing D) professional employee organization Answer: B Explanation: A useful way to better understand how HR serves as a strategic business partner is to think about the use of capital for value creation. Capital refers to the factors that enable companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation. There is a variety of capital that companies use to create value, including financial capital (for example, cash), capital equipment (for instance, state-of-the-art robotics used in manufacturing), and human capital (employees). Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 89) In today's workplace, HR is ________. A) moving towards a narrower focus on personnel B) focusing more on administrative tasks C) focusing more on strategic planning D) moving towards a wider focus on training Answer: C Explanation: In moving from a transactional to a strategic model, HR professionals work toward solving strategic problems in the organization. No longer is an administrative and compliance role appropriate as their primary jobs. HR professionals have changed the way they work. Working as a strategic business partner requires a much deeper and broader understanding of business issues. Possible strategic tasks for HR include making workforce strategies fundamental to company strategies and goals; increasing HR's role in strategic planning, mergers, and acquisitions; developing awareness or an understanding of the business; and helping line managers achieve their goals. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

90) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at Burton realize that human capital plays an essential role in the continued success of the firm, and they want HR to participate in strategic planning. Which of the following questions is LEAST relevant to determining whether HR currently plays a strategic role at Burton? A) Is HR rated by Burton's customers? B) Is HR present at Burton's restructuring discussions? C) Does Burton's HR provide an annual report on its ROI? D) Does HR utilize current technology in recruiting Burton employees? Answer: D Explanation: The rating HR receives from customers and the participation of HR in strategy and restructuring meetings are both indicators that the firm's HR is involved strategically. An annual report from HR regarding return on investment would also indicate a strategic involvement. Technology used by Burton's HR in recruiting is important to hiring practices but not to strategic planning. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 91) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at Burton realize that human capital plays an essential role in the continued success of the firm, and they want HR to participate in strategic planning. Which of the following, if TRUE, best supports the argument that HR should be more involved in strategic planning at Burton? A) Burton plans to acquire another drug company within the next six months. B) Burton recently settled a lawsuit related to charges of unfair hiring practices. C) Burton primarily hires sales representatives who have medical backgrounds. D) Burton experienced a small profit loss last quarter due to increased competition. Answer: A Explanation: Acquiring another firm would expand the number of employees at Burton, which means that HR should be involved in the process to ensure that human capital is used appropriately. Lawsuits, employee backgrounds, and competitors are less relevant to HR becoming involved in strategic planning at Burton. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

92) Burton Pharmaceuticals is a fast-growing drug company based in Dallas. Top executives at Burton realize that human capital plays an essential role in the continued success of the firm, and they want HR to participate in strategic planning. Which of the following, if TRUE, suggests that HR is already involved in strategic planning at Burton? A) HR representatives attend merger and acquisition discussions. B) HR handles all compliance issues related to OSHA and the ADA. C) HR regularly updates job analysis and job specification information. D) HR representatives monitor employee training needs and interests. Answer: A Explanation: Attending merger and acquisition meetings suggests that HR participates in strategic planning. Legal compliance, job specifications, and training are important issues that are relevant to any HR department, but they do not indicate that Burton's HR department is involved in strategic planning. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 93) Working as a strategic business partner requires a much deeper and broader understanding of business issues. Answer: TRUE Explanation: HR professionals have changed the way they work. Working as a strategic business partner requires a much deeper and broader understanding of business issues. Possible strategic tasks for HR include making workforce strategies fundamental to company strategies and goals; increasing HR's role in strategic planning, mergers, and acquisitions; developing awareness or an understanding of the business; and helping line managers achieve their goals. A useful way to better understand how HR serves as a strategic business partner is to think about the use of capital for value creation. Capital refers to the factors that enable companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

94) Companies rely on capital to create value. These include human capital, financial capital, and environmental capital. Answer: FALSE Explanation: Capital refers to the factors that enable companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation. There is a variety of capital that companies use to create value, including financial capital (cash) and capital equipment (state-of-the-art robotics used in manufacturing) and human capital. Employees represent a specific type of capital called human capital. Human capital, as defined by economists, refers to sets of collective skills, knowledge, and ability that employees can apply to create value for their employers. Companies purchase the use of human capital by paying employees an hourly wage, salary, or bonuses and providing benefits such as paid vacation and health insurance. Also, companies help develop human capital to their advantage by offering training programs aimed at further boosting employee productivity. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 95) Every company relies on different combinations of capital. Answer: TRUE Explanation: Every organization relies on capital to create value, but, the combination of capital used to create value differs from company to company. For example, Frito Lay uses state-of-theart manufacturing equipment, and the American Red Cross does not. However, every organization shares in common the employment of individuals and the necessity of managing employees to successfully create value. Indeed, HRM is the business function of managing employees to facilitate an organization's efforts to create value. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

96) What is strategic planning? What role can HR professionals play in strategic planning? Answer: Strategic planning is an ongoing process that is constantly changing in order to find a competitive advantage. Strategic planning attempts to position the organization in terms of the external environment. Companies always need to look for ways to stay competitive, gain market share, and be the first to innovate a new product or service. Today, HR professionals are increasingly taking on the role of being a strategic partner with upper management. In this role, HR professionals are able to focus on matters that are truly important to the company as a whole. They can help the CEO and CFO understand the role human capital plays in the organization and the way it combines with business processes to expand or shrink shareholder value. HR professionals are integrating the goals of HR with the goals of the organization and focusing on expanding its strategic and high-level corporate participation with an emphasis on adding value. Diff: 3 Skill: Synthesis AACSB: Reflective thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 97) Which of the following is NOT an environment factor? A) competition B) customers C) mission D) shareholders Answer: C Explanation: Factors within and outside an organization's boundaries make up the environment. These factors include the legal considerations, labor market, society, political parties, unions, shareholders, competition, customers, technology, the economy, and unanticipated events. Each factor, either separately or in combination with others, can create constraints or opportunities for HRM. Mission refers to the objectives of the company, and it may be shaped, in part, by environmental factors. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

98) Which term refers to potential employees located within a specific geographic area? A) forecasted allocation B) labor market C) labor union D) employee relations Answer: B Explanation: Potential employees located within the geographic area from which employees are normally recruited comprise the labor market. The capabilities of a firm's employees determine, to a large extent, how well the organization can perform its mission. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 99) Which of the following is the discipline of dealing with what is right and wrong? A) corporate social responsibility B) sociology C) cultural norms D) ethics Answer: D Explanation: Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Corporate social responsibility is closely related to ethics. Corporate social responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 100) The implied obligation of managers, acting in their official capacities, to serve or protect the interests of groups other than themselves is referred to as ________. A) ethics B) managerial values C) political activism D) corporate social responsibility Answer: D Explanation: Corporate social responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Corporate social responsibility is closely related to ethics, which involves making decisions of right and wrong. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 36 Copyright © 2019 Pearson Education, Inc.

101) Which of the following is the discipline most closely related to corporate social responsibility? A) sociology B) psychology C) ethics D) philosophy Answer: C Explanation: Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Corporate social responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 102) Unions are treated as an environmental factor because they act as a ________ when dealing with a firm. A) supervisor B) political party C) third party D) shareholder Answer: C Explanation: Unions are treated as an environmental factor because, essentially, they become a third party when dealing with the company. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

103) The pilots of various U.S. airlines are threatening to strike unless they receive wage increases. The pilots belong to a union. Which of the following would most likely negotiate an agreement with airline management? A) union representatives B) employee supervisors C) government agencies D) individual employees Answer: A Explanation: In a unionized organization, wage levels, benefits, and working conditions for millions of employees reflect decisions made jointly by unions and management Diff: 3 Skill: Concept AACSB: Application of knowledge LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 104) Which term refers to the owners of a corporation? A) managers B) executives C) presidents D) shareholders Answer: D Explanation: The owners of a corporation are called shareholders. Because shareholders, or stockholders, have invested money in the firm, they may at times challenge programs considered by management to be beneficial to the organization. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 105) Which of the following is a FALSE statement about environmental factors? A) Stockholders influence managerial decisions in a corporation. B) Customer satisfaction plays a role in human resource decisions. C) Unions negotiate with management on behalf of individual employees. D) The labor market rarely changes because population remains relatively stable. Answer: D Explanation: The labor market is always changing, and these shifts inevitably cause changes in the workforce of an organization. In turn, changes in individuals within an organization affect the way management must deal with its workforce. Stockholders and customers affect HR decisions, and unions serve as negotiators for members. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 38 Copyright © 2019 Pearson Education, Inc.

106) What are the people who actually use a firm's goods and services called? A) managers B) shareholders C) customers D) employers Answer: C Explanation: Customers use a firm's goods and services, and they are part of the external environment. Because sales are crucial to the firm's survival, management has the task of ensuring that its employment practices do not antagonize the customers it serves. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 107) Customers are considered an environmental factor because they ________. A) use the Internet to research products B) generate employer branding C) expect quality products and after-purchase service D) invest in corporations Answer: C Explanation: Customers constantly demand high-quality products and after-purchase service. Therefore, a firm's workforce should be capable of providing top-quality goods and services. These conditions relate directly to the skills, qualifications, and motivations of the organization's employees. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 108) According to your textbook, cloud computing ________. A) has done little to enhance HR mobility B) requires expensive, time-consuming upgrades for HR staff C) allows HR professionals to access applications from virtually anywhere D) has largely been ignored by HR professionals Answer: C Explanation: A major factor contributing to HR mobility is cloud computing. Cloud computing permits businesses to buy what they need, when they need it. HR professionals can be virtually anywhere and access the cloud, all through any standard Web. Diff: 2 Skill: Concept AACSB: Information technology LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

109) Which of the following terms refers to any organized approach for obtaining relevant and timely information on which to base HR decisions? A) HR strategic planning system B) HR information system C) HR core function D) HR development Answer: B Explanation: With the increased sophistication of technology has come the ability to design more useful human resource information systems (HRIS). An HRIS is any organized approach for obtaining relevant and timely information on which to base human resource decisions. Diff: 2 Skill: Concept AACSB: Information technology LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 110) In most cases, when the economy is booming, recruiting qualified workers is ________. A) easier B) dynamic C) more difficult D) more systematic Answer: C Explanation: As a generalization, when the economy is booming, it is more difficult to recruit qualified workers. On the other hand, when a downturn is experienced, more applicants are typically available. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 111) According to the text, which of the following would most likely be categorized as an unanticipated event in the HRM environment? A) recessions B) hurricanes C) employee retirements D) stock and bond market losses Answer: B Explanation: Unanticipated events are occurrences in the environment that cannot be foreseen, such as hurricanes, oil spills, heat waves, earthquakes, tornadoes, floods, and fires. Recessions, staff changes, and economic shifts are more predictable than natural disasters. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 40 Copyright © 2019 Pearson Education, Inc.

112) Which of the following can help employees influence various terms of employment such as wages and work hours? A) voluntary employee benefit association B) union C) management cooperative D) all of the above Answer: B Explanation: A union consists of employees who have joined together for the purpose of negotiating terms of employment such as wages and work hours. The United Auto Workers is an example of a large labor union. Unions are treated as an environmental factor because, essentially, they become a third party when dealing with the company. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 113) Which of the following are the two dominant political parties in the United States? A) Democrats and Socialist B) Democratic and Republican C) Republicans and Socialist D) Democrat and Communist Answer: B Explanation: The Democratic and Republican parties are the two major political parties in the United States. These parties often have differing opinions on how HRM should be accomplished. For example, Democrats tend to favor more government regulation that protects the rights of virtually all employees to receive at least a minimum wage (the Fair Labor Standards Act) and unpaid family leave (the Family and Medical Leave Act). Republicans, on the other hand, tend to favor less government regulation, believing that businesses should have as much flexibility as possible to operate profitably. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

114) Society pressures a firm's HRM by expecting corporate social responsibility and ethical decision making. Answer: TRUE Explanation: Society may also exert pressure on HRM. The public is no longer content to accept, without question, the actions of business. To remain acceptable to the general public, a firm must accomplish its purpose while complying with societal norms. Corporate social responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 115) Although shareholders invest money in a firm, they have very little influence on management. Answer: FALSE Explanation: Because shareholders, or stockholders, have invested money in the firm, they may at times challenge programs considered by management to be beneficial to the organization. Stockholders are wielding increasing influence, and management may be forced to justify the merits of a particular program in terms of how it will affect future projects, costs, revenues, profits, and even benefits to society as a whole. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment 116) Although most large firms use HR information systems to handle benefits administration, recruitment and legal compliance tasks have not yet been automated. Answer: FALSE Explanation: Today, mainstay HR responsibilities such as recruitment, selection, oversight of legal and regulatory compliance, benefits administration, and the safeguarding of confidential employee information cannot be carried out effectively without HRIS. Diff: 2 Skill: Concept AACSB: Information technology LO: 1.3: Explain how the HRM function serves as a strategic business partner and the elements of the dynamic HRM environment

117) What embodies the values and standards that guide people's behavior? A) societal trends B) employer brands C) organizational policies D) corporate mission statements Answer: B Explanation: Employer branding is an extension of product or business branding. Employer branding is the firm's corporate image or culture created to attract and retain the type of employees the firm is seeking. It is what the company stands for in the public eye. Establishing a positive corporate culture and brand is another way HR professionals contribute to a company's success. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 118) How do society, politics, and culture affect HRM? As an HR professional, why is it important to be aware of these factors? Answer: Society, politics, and culture exert pressure on HRM. To remain acceptable to the general public, a firm must accomplish its purpose while complying with societal norms. Closely related to society, but not the same, are political parties. The two major political parties in the United States often have differing opinions on human resource topics. On a global perspective, countries change governments from time to time, which may affect how human resource management is practiced. Recognizing the cultural differences present in a workplace can also help managers achieve maximum effectiveness. Cultural differences between countries influence global business. This borderless world adds dramatically to the difficulty of managing human capital. Cultural differences reveal themselves in everything from the workplace environments to very divergent concepts of time, space, and social interaction. Diff: 3 Skill: Critical thinking AACSB: Diverse and multicultural work environments LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 119) The way in which employees may judge culture differently could lead to ________. A) a change in a company's mission B) employee turnover C) the implementation of pay-for-performance plans D) profitability Answer: B Explanation: The assessment of how desirable the organization's culture is may differ for each employee. One person may perceive the environment as bad, and another may see the same environment as positive. An employee may actually leave an organization in the hope of finding a more compatible culture. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 43 Copyright © 2019 Pearson Education, Inc.

120) The ________ signifies the system of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms. A) motivation model B) network system C) corporate culture D) behavioral paradigm Answer: C Explanation: Corporate culture is the system of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 121) Management's perception of the degree to which the prospective employee will fit in with the firm's culture and value system is known as ________. A) discrimination B) stereotyping C) employer branding D) organizational fit Answer: D Explanation: Organizational fit is management's perception of the degree to which the prospective employee will fit into the firm's culture and value system. Diff: 2 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 122) Which activity is engaged to create an inclusive corporate culture? A) diversity management B) corporate social responsibility C) equal employment opportunity D) affirmative action Answer: A Explanation: Diversity management is about pursuing an inclusive corporate culture in which newcomers feel welcome and everyone sees the value of his or her job. Diff: 2 Skill: Synthesis AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding

123) Organizational fit refers to a corporate image or culture, which attracts and retains the type of employees the firm is seeking. Answer: FALSE Explanation: Organizational fit refers to management's perception of the degree to which a prospective employee will fit in with the firm's culture and system of values. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 124) What is a "corporate culture"? Why is it a major factor in a company's internal environment? Answer: Corporate culture is the system of shared values, beliefs, and habits within an organization that interacts with the formal structure to produce behavioral norms. As an environmental factor affecting human resource management, corporate culture refers to the firm's social and psychological climate. Culture gives people a sense of how to behave and what they ought to be doing. Each individual gradually forms such perceptions over time, as the person performs assigned activities under the general guidance of a superior and a set of organizational policies. The culture existing within a firm influences employees' degree of satisfaction with the job, as well as the level and quality of their performance. The assessment of how desirable the organization's culture is may differ for each employee. One person may perceive the environment as bad, and another may see the same environment as positive. An employee may actually leave an organization in the hope of finding a more compatible culture. Diff: 3 Skill: Critical thinking AACSB: Reflective thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 125) The firm's corporate image or culture that attracts and retains ideal employees is best known as ________. A) job branding B) brand culture C) HR branding D) employer branding Answer: D Explanation: Employer branding is the firm's corporate image or culture created to attract and retain the type of employees the firm is seeking. Through employer branding, people get to know what the company stands for, the people it hires, the fit between jobs and people, and the results it recognizes and rewards. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding

126) The primary purpose of employer branding is to ________. A) promote employee benefits B) sell consumer products C) attract quality employees D) encourage media mentions Answer: C Explanation: Employer branding is the firm's corporate image or culture created to attract and retain the type of employees the firm is seeking. It is what the company stands for in the public eye. Diff: 3 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 127) Being on which list of "100 best" is so desirable that some organizations try to change their culture and philosophies to get on the list? A) Working Mother list of 100 best companies B) Fortune magazine's 100 Best Companies to Work For C) Business Ethics magazine list of 100 Best Corporate Citizens D) Computerworld list of Best Places to Work Answer: B Explanation: Achieving acknowledgment by an external source is a good way for a brand to be recognized. Being listed on Fortune magazine's 100 Best Companies to Work For is so desirable that some organizations try to change their culture and philosophies to get on the list. Inclusion on another magazine's list is less helpful than being on Fortune's. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 128) Employer branding refers to the firm's corporate image or culture. Answer: TRUE Explanation: Employer branding is the firm's corporate image or culture created to attract and retain the type of employees the firm is seeking. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding

129) Employer branding is an extension of the marketing department and has limited impact on recruitment and retention. Answer: FALSE Explanation: Employer branding has become a major recruitment and retention strategy. With employer branding, everyone in the company works to promote the image of the firm, not just one department. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 130) Only large well-known firms have employer branding; small businesses do not. Answer: FALSE Explanation: All companies have a brand, which is the firm's image or culture that attracts and retains employees. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 131) Employer branding is about pursuing an inclusive corporate culture in which newcomers feel welcome and everyone sees the value of his or her job. Answer: FALSE Explanation: Employer branding is the firm's corporate image and culture. It is what the company stands for in the public eye. Diversity management is about pursuing an inclusive corporate culture in which newcomers feel welcome and everyone sees the value of his or her job. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.4: Discuss the role of HRM in building corporate culture and employer branding 132) According to the Small Business Administration, all of the following EXCEPT ________ are part of the definition of a small business. A) limited to a local marketplace B) independently owned and operated C) organized for profit D) not dominant in its field Answer: A Explanation: The SBA defines a small business as one that is independently owned and operated, is organized for profit, and is not dominant in its field. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.5: Summarize HRM issues for small businesses

133) In a typical small business, HR functions are often handled by ________. A) outside vendors B) compensation analysts C) HRM specialists D) line managers Answer: D Explanation: Small businesses often do not have a formal HR unit or HRM specialist. Rather line managers often handle the HR functions. The focus of their activities is generally on hiring and retaining capable employees. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.5: Summarize HRM issues for small businesses 134) The cultural norms of Japan promote ________. A) competition between employees B) unionization C) competency-based pay D) loyalty and teamwork Answer: D Explanation: The cultural norms of Japan promote loyalty and teamwork. The work culture there is one in which honesty and hard work are prized assets. In Japan, most managers tend to remain with the same company for life. In the United States, senior executives often change companies, but the Japanese believe strongly that leaving a job is to be avoided out of respect for the business team. In Japan, if a boss gives detailed instructions to a subordinate, it is like saying the person is incompetent. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.6: Identify ways that country culture influences global business 135) Provide a brief definition of a country's culture. How does the culture of a country affect global business? Answer: A country's culture is the set of values, symbols, beliefs, languages, and norms that guide human behavior within the country. It is learned behavior that develops as individuals grow from childhood to adulthood. As one goes from one side of this country to the other, a wide range of cultural differences will be experienced. The same can be said in traveling from north to south. Cultural differences are intensified when going from one country to another. These cultural differences exert a major influence on global business. Cultural differences reveal themselves in everything from the workplace environments to differences in the concept of time, space, and social interaction. Companies operating in the global environment must understand that cultural differences add dramatically to the difficulty of managing human capital. Diff: 3 Skill: Synthesis AACSB: Analytical thinking LO: 1.6: Identify ways that country culture influences global business 48 Copyright © 2019 Pearson Education, Inc.

136) Which of the following defines learned behavior that develops as individuals grow from childhood to adulthood? A) country culture B) employee engagement C) corporate culture D) global diversity Answer: A Explanation: A country's culture is the set of values, symbols, beliefs, languages, and norms that guide human behavior within the country. It is learned behavior that develops as individuals grow from childhood to adulthood. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.6: Identify ways that country culture influences global business 137) Cultural differences reveal themselves in everything EXCEPT which of the following? A) workplace environments B) global enterprises C) social interaction D) concept of time and space Answer: B Explanation: Cultural differences reveal themselves in everything from the workplace environments to differences in the concept of time, space, and social interaction. Companies operating in the global environment recognize that national cultures differ and that such differences cannot be ignored. Diff: 2 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.6: Identify ways that country culture influences global business 138) Americans' use of colloquialisms often creates cultural barriers. Answer: TRUE Explanation: Think about the cultural differences that exist in going from this country to another. Americans' use of colloquialisms often creates cultural barriers. Perhaps surprisingly, misunderstanding can occur between two countries that share the same language such as is the case for the United States and the United Kingdom. Diff: 1 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.6: Identify ways that country culture influences global business

139) The United States and the United Kingdom are two countries that share the same language but have cultural barriers. Answer: TRUE Explanation: Think about the cultural differences that exist in going from this country to another. Americans' use of colloquialisms often creates cultural barriers. Perhaps surprisingly, misunderstanding can occur between two countries that share the same language such as is the case for the United States and the United Kingdom. Diff: 1 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.6: Identify ways that country culture influences global business 140) Americans find it easy to deal with China's culture. Answer: FALSE Explanation: Many believe that China has the most different culture for Americans to deal with. Cultural differences between countries is identified as a major factor influencing global business. This borderless world adds dramatically to the difficulty of managing employees. Diff: 2 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.6: Identify ways that country culture influences global business 141) Although cultural misunderstandings are common, they are not hazards to executives managing global workforces Answer: FALSE Explanation: Cultural misunderstandings are common, but they can be hazards to executives managing global workforces. Diff: 2 Skill: Concept AACSB: Diverse and multicultural work environments LO: 1.6: Identify ways that country culture influences global business 142) ________ is defined as effective use of oral, written, and nonverbal skills. A) Generalist and specialist B) Executive and generalist C) Communication D) Manager and generalist Answer: C Explanation: Communication is defined as effective use of oral, written, and nonverbal skills for multiple purposes (e.g., to inform, instruct, motivate, persuade, and share ideas). Diff: 1 Skill: Concept AACSB: Written and oral communication LO: 1.7: Explore essential skills for developing your career in HR or any other career path

143) Which of the following skills for your career involves purposeful and goal-directed thinking used to define and solve problems, make decisions or form judgments related to a situation or set of circumstances? A) collaboration B) critical thinking C) interpersonal D) managing Answer: B Explanation: Critical thinking involves purposeful and goal-directed thinking used to define and solve problems, make decisions or form judgments related to a situation or set of circumstances. Diff: 2 Skill: Concept AACSB: Reflective thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path 144) What type of learning involves situation in which individuals actively work together on a task, constructing meaning and knowledge as a group through dialogue and negotiation resulting in a final product reflective of their joint, interdependent actions? A) collaborative B) engagement C) social D) corporate culture Answer: A Explanation: Collaborative learning takes place in a situation in which individuals actively work together on a task, constructing meaning and knowledge as a group through dialogue and negotiation resulting in a final product reflective of their joint, interdependent actions. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path 145) The ability to learn a concept and then appropriately apply that knowledge in another setting to achieve a higher level of understanding is known as ________. A) information technology B) collaboration C) social responsibility D) knowledge application and analysis Answer: D Explanation: Knowledge application and analysis is defined as the ability to learn a concept and then appropriately apply that knowledge in another setting to achieve a higher level of understanding. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path

146) Business ethics are sets of guiding principles that influence the way individuals and organizations behave within the society that they operate. Answer: TRUE Explanation: Business ethics are sets of guiding principles that influence the way individuals and organizations behave within the society that they operate. Diff: 1 Skill: Concept AACSB: Analytical thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path 147) Corporate sustainability and corporate social responsibility are focuses that HRM needs to give attention to due to its impact on the organization and in society. Answer: TRUE Explanation: Corporate Social Responsibility (CSR) is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Second, corporate sustainability focuses on the possible future impact of an organization on society, including social welfare, the economy, and the environment. Both issues are like ethics; however, ethics also focuses on individual decision making and behavior as well as the impact of ethical choices on employee welfare. Diff: 1 Skill: Application AACSB: Application of knowledge LO: 1.7: Explore essential skills for developing your career in HR or any other career path 148) Social welfare, the economy, and the environment do not have an impact regarding corporate sustainability. Answer: FALSE Explanation: Corporate Social Responsibility (CSR) is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. Second, corporate sustainability focuses on the possible future impact of an organization on society, including social welfare, the economy, and the environment. Both issues are like ethics; however, ethics also focuses on individual decision making and behavior as well as the impact of ethical choices on employee welfare. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path 149) Data literacy is the ability to access, assess, interpret, manipulate, summarize, and communicate data. Answer: TRUE Explanation: Data literacy is the ability to access, assess, interpret, manipulate, summarize, and communicate data. Diff: 1 Skill: Concept AACSB: Information technology LO: 1.7: Explore essential skills for developing your career in HR or any other career path 52 Copyright © 2019 Pearson Education, Inc.

150) Describe some of the reasons for the expected growth in employment opportunities in HR. Answer: Employment growth largely depends on the performance and growth of individual companies. However, as new companies form and organizations expand their operations, they will need more human resources managers to oversee and administer their programs. Managers will also be needed to ensure that firms adhere to changing, complex employment laws regarding occupational safety and health, equal employment opportunity, health care, wages, and retirement plans. Although job opportunities are expected to vary based on the staffing needs of individual companies, very strong competition can be expected for most positions. Organizations will look for HR professionals to work as strategic business partners. Working as a strategic business partner requires a much deeper and broader understanding of business issues. Possible strategic tasks for HR include making workforce strategies fundamental to company strategies and goals; increasing HR's role in strategic planning, mergers, and acquisitions; developing awareness or an understanding of the business; and helping line managers achieve their goals. Also, as a strategic business partner, HR helps to identify and develop the human capital necessary for excellent performance, builds recruitment systems, training programs for product distribution and interactions with customers, constructs performance management, and structures compensation programs that will greatly incentivize these employees to excel. In the end, if HR is to be a strategic partner, HR executives must work with top management in achieving concrete plans and results. Factors include legal considerations, the labor market, society, political parties, unions, shareholders, competition, customers, technology, economy, and unanticipated events. Job opportunities should be best in management in companies and enterprises industry as organizations continue to use outside firms to assist with some of their human resources functions. Diff: 3 Skill: Synthesis AACSB: Analytical thinking LO: 1.7: Explore essential skills for developing your career in HR or any other career path

Human Resource Management, 15e (Martocchio) Chapter 2 Business Ethics, Corporate Social Responsibility, and Sustainability 1) Which term refers to the discipline that deals with what is good and bad or right and wrong? A) morals and traditions B) social responsibility C) cultural norms D) ethics Answer: D Explanation: Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 2) Ethics, corporate social responsibility, and corporate sustainability are everyone's business, including HR professionals. Answer: TRUE Explanation: Ethics, CSR, and corporate sustainability are everyone's business. Human resources (HR) professionals particularly concern themselves with establishing policies to promote ethical behavior and unethical behavior. In addition, the human resource management (HRM) function's leadership works with other executive leadership to identify training opportunities for educating employees about how they may make positive contributions to these objectives and developing performance-based pay programs that align employee performance with CSR and social responsibility goals. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 3) Citizenship is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Answer: FALSE Explanation: Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

4) What is the difference between ethics and corporate social responsibility as each concept applies to corporations? Answer: Ethics is the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. Ethics is about deciding whether an action is good or bad and what to do about it if it is bad. Those in management make ethical (or unethical) decisions every day regarding hiring, safety, and compensation. Corporate social responsibility (CSR) is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves. When a corporation behaves as if it has a conscience, it is said to be socially responsible. CSR considers the overall influence of corporations on society at large and goes beyond the interests of shareholders. It is how a company as a whole behaves toward society. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 5) Which of the following firms has NOT been exposed for ethical abuses and corrupt conduct? A) Enron B) Lehman Brothers C) WorldCom D) General Electric (GE) Answer: D Explanation: Enron, Lehman Brothers, and WorldCom have been involved with ethical and illegal problems. General Electric (GE) has a history of honesty and transparency. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 6) In a recent survey, what percent of investors said they would move their account if they discovered the company was involved in unethical behavior? A) 17% B) 37% C) 67% D) 97% Answer: C Explanation: CEOs have to be clear that unethical behavior is not acceptable. In one survey, 67 percent of investors said they would move their account if they discovered the company was involved in unethical behavior. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

7) The CEO of GE begins and ends each annual meeting by ________. A) introducing the firm's senior officials B) reviewing the firm's financial details C) restating the firm's integrity principles D) asking stockholders for their opinions Answer: C Explanation: Jeff Immelt, GE's CEO, begins and ends each annual meeting of 220 officers and of its 600 senior managers by restating the company's fundamental integrity principles: "GE's business success is built on our reputation with all stakeholders for lawful and ethical behavior. Commercial considerations never justify cutting corners. Upholding this standard is the specific responsibility of the leaders in the room." Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 8) What do most of the 500 largest corporations in the United States have? A) social responsibility audits B) environmental audits C) code of ethics D) podcasts Answer: C Explanation: Most of the 500 largest corporations in the United States now have a code of ethics, which encompasses written conduct standards, internal education, and formal agreements on industry standards, ethics offices, social accounting, and social projects. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 9) With regards to ethics, most of the 500 largest corporations in the United States now have a code of ethics. Which of the following would LEAST likely be included in the codes? A) ethics offices B) social accounting C) conduct standards D) performance appraisals Answer: D Explanation: Most of the 500 largest corporations in the United States now have a code of ethics, which encompasses written conduct standards, internal education, and formal agreements on industry standards, ethics offices, social accounting, and social projects. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

10) The minimum standards of ethical behavior in a firm are based on ________, while higher standards are established by ________. A) corporate policies; human resources B) coworkers; mission statements C) organizational culture; laws D) laws; corporate leadership Answer: D Explanation: Compliance with the law sets the minimum standard of ethical behavior; ethics is much more, however. There must be leaders who are able and willing to instill ethics throughout the culture of the organization. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 11) Surveys indicate that 25 percent of investors would move their account if they discovered the company was involved in unethical behavior. Answer: FALSE Explanation: In one survey, 67 percent of investors said they would move their account if they discovered the company was involved in unethical behavior. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 12) Most of the 500 largest corporations in the United States now have a code of ethics. Answer: TRUE Explanation: Most of the 500 largest corporations in the United States now have a code of ethics, which encompasses written conduct standards, internal education, and formal agreements on industry standards, ethics offices, social accounting, and social projects. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 13) Unethical practices are limited to Wall Street because of the money and pressure involved. Answer: FALSE Explanation: Business ethics scandals continue to be headline news today. Lying on résumés, obstruction of justice, destruction of records, stock price manipulation, and cutting corners to meet Wall Street's expectation. However, business is not alone. There is virtually no occupation that has not had its own painful ethical crises in recent years. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

14) Compliance with the law sets the minimum standard for ethical behavior in business. Answer: TRUE Explanation: Compliance with the law sets the minimum standard for ethical behavior; ethics, however, is much more. There must be leaders who are able and willing to instill ethics throughout the culture of the organization. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 15) A major source of ethical guidance is the behavior and advice of people that psychologists call ________. A) internal monitors B) third-party respondents C) disinterested parties D) significant others Answer: D Explanation: Another source of ethical guidance is the behavior and advice of the people psychologists call "significant others"—our parents, friends, role models, and members of our churches, clubs, and associations. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 16) According to your textbook, sources of ethical guidance should ________. A) lead to your beliefs or a conviction about what is right or wrong B) have little effect on a person's pursuit of what is expedient C) be nothing more than the subject matter of philosophical discussions D) remain abstractions that don't pertain to day-to-day living in today's world Answer: A Explanation: The sources of ethical guidance should lead to your beliefs or a conviction about what is right or wrong. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

17) Laws ________ ethical behavior. A) mandate B) offer guidance to C) have nothing to do with D) none of the above Answer: B Explanation: Laws offer guidance to ethical behavior, prohibiting acts that can be especially harmful to others. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 18) Which of the following would LEAST likely be a source of ethical guidance? A) holy books B) laws C) friends D) tests Answer: D Explanation: One might use a number of sources to determine what is right or wrong, good or bad, moral or immoral. These sources include the Bible and other holy books. Another source of ethical guidance is the behavior and advice of our parents, friends, and role models. Laws also offer guidance to ethical behavior, prohibiting acts that can be especially harmful to others. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 19) As a professional, what should be your primary source of ethical guidance in the workplace? A) corporate HR policies B) corporate code of ethics C) corporate mission statement D) corporate procedures Answer: A Explanation: For most professionals, there are written codes of ethics that prescribe certain behavior. Without this written code of ethical conscience, it might be easy to say, "Everyone does it," "Just this once won't hurt," or "No one will ever know." Diff: 2 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

20) Sources of ethical guidance exclude laws because laws are mandated by the government and not personal beliefs and values. Answer: FALSE Explanation: Laws also offer guidance to ethical behavior, prohibiting acts that can be especially harmful to others. They codify what society has deemed to be unacceptable. If a certain behavior is illegal, most would consider it to be unethical as well. There are exceptions, of course. For example, through the 1950s, laws in most southern states relegated blacks to the backs of buses and otherwise assigned them inferior status. Martin Luther King Jr. resisted such laws and, in fact, engaged in civil disobedience and other nonviolent forms of resistance to their enforcement. King won the Nobel Peace Prize for his efforts. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 21) According to the model of ethics, advice from friends, holy books, and laws serve as sources of ethical guidance. Answer: TRUE Explanation: People use a number of sources to determine what is right or wrong, good or bad, moral or immoral. These sources include the Bible and other holy books, the inner conscience, friends, family members, and laws. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 22) According to psychologists, the behavior and advice of "significant others" is a source of ethical guidance. Answer: TRUE Explanation: A major source of ethical guidance is the behavior and advice of the people psychologists call "significant others"—our parents, friends, and role models and members of our churches, clubs, and associations. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 23) Laws offer guidance to ethical behavior, prohibiting acts that can be especially harmful to others. Answer: TRUE Explanation: Laws also offer guidance to ethical behavior, prohibiting acts that can be especially harmful to others. They codify what society has deemed to be unacceptable. If a certain behavior is illegal, most would consider it to be unethical as well. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 7 Copyright © 2019 Pearson Education, Inc.

24) In the legal use of the term, a whistleblower is someone who ________. A) serves as a part-time referee in sporting events B) has an ethical obligation to shield his or her employer from lawsuits C) participates in an activity that is protected by federal law D) serves as a majordomo at political dinners Answer: C Explanation: In the legal use of the term, a whistleblower is someone who is protected by the following federal laws: the False Claims Act, the Internal Revenue Service's Informant Claims Program, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the SarbanesOxley Act of 2002. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 25) When comparing the effectiveness of whistleblowers and external auditors in uncovering corporate wrongdoings, ________ in public companies. A) whistleblower tips discovered 54.1 percent of uncovered fraud schemes B) external auditors discovered 54.1 percent of uncovered fraud schemes C) whistleblower tips discovered 4.1 percent of uncovered fraud schemes D) whistleblower tips are no more effective than external auditors at discovering fraud schemes Answer: A Explanation: Many believe that information provided by whistleblowers is much more effective in uncovering wrongdoings than are external auditors. In testimony to the Senate Banking Committee, Certified Fraud Examiner Harry Markopolos stated, "Whistleblower tips detected 54.1 percent of uncovered fraud schemes in public companies. External auditors detected a mere 4.1 percent of fraud schemes." Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 26) Whistleblower protection has been around since ________. A) the passage of the Sarbanes-Oxley Act of 2002 B) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 C) the Federal False Claims Act of 1863 D) the Whistleblowers Anonymity Act of 2005 Answer: C Explanation: The use of whistleblowers has been around since 1863 when President Lincoln signed into law the Federal False Claims Act, which was designed to protect the United States from purchases of fake gunpowder during the Civil War. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 8 Copyright © 2019 Pearson Education, Inc.

27) Companies are concerned about the whistleblower part of the Dodd-Frank Act for all of the following reasons EXCEPT that informants might ________. A) skip internal channels and go straight to government authorities B) use the whistleblower provision to settle other grievances with their companies C) overload internal compliance channels and thus hinder internal compliance efforts D) all of the above Answer: C Explanation: Companies have some uneasiness regarding the whistleblower provision of the Dodd-Frank Act. The major concern is that the rules run counter to a firm's internal compliance efforts. Companies are afraid that employees will not go through internal channels first and instead go directly to government authorities. Another fear is that an employee might have another grievance with the company and use the whistleblower provision to get back at the company. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 28) All of the following EXCEPT ________ are major components of the Dodd-Frank Wall Street Reform and Consumer Protection Act. A) protecting investors B) promoting too-big-to-fail bailouts C) maintaining an advance warning system D) enforcing regulations that are already on the books Answer: B Explanation: The Dodd-Frank Wall Street Reform and Consumer Protection Act ends the possibility that taxpayers will be asked to bail out financial firms that threaten the economy. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 29) The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in ________. A) 1863 B) 1933 C) 2001 D) 2010 Answer: D Explanation: The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in 2010. The act was brought on by the worst financial crisis since the Great Depression. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

30) Which of the following laws was NOT enacted for the purpose of legislating business ethics? A) Federal Sentencing Guidelines for Organizations Act B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Taft-Hartley Act Answer: D Explanation: The Taft-Hartley Act was enacted to monitor the power and activities of unions. The other three laws were three attempts made by the government to legislate business ethics. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 31) What law prohibits the release of source selection and proposal information? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: B Explanation: The Procurement Integrity Act of 1988 prohibits the release of source selection and contractor bid or proposal information. Also, a former employee who served in certain positions on a procurement action or contract in excess of $10 million is barred from receiving compensation as an employee or consultant from that contractor for one year. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 2.1: Discuss what ethics means and the sources of ethical guidance 32) Which law prohibits a former employee who served in certain positions on a contract in excess of $10 million from receiving compensation as an employee or consultant from that contractor for one year? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: B Explanation: The Procurement Integrity Act of 1988 prohibits the release of source selection and contractor bid or proposal information. Also, a former employee who served in certain positions on a procurement action or contract in excess of $10 million is barred from receiving compensation as an employee or consultant from that contractor for one year. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

33) What law was passed in response to reports of military contracts for $500 toilet seats? A) Federal Sentencing Guidelines for Organizations B) Sarbanes-Oxley Act C) Federal Contract Protection Act D) Procurement Integrity Act Answer: D Explanation: The Procurement Integrity Act of 1988 prohibits the release of source selection and contractor bid or proposal information. The Act was passed after there were reports of military contracts for $500 toilet seats. There was also a $5000 hammer. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 34) What federal law offers easier punishments for wayward corporations that have ethics programs in place? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: A Explanation: The 1992 Federal Sentencing Guidelines for Organizations Act (FSGO) outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations. The FSGO promised softer punishments for wayward corporations that already had ethics programs in place. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 35) What federal law outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: A Explanation: The 1992 Federal Sentencing Guidelines for Organizations Act (FSGO) outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations. The FSGO promised softer punishments for wayward corporations that already had ethics programs in place. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

36) Which of the following was NOT included in the FSGO? A) guidelines for ethics standards B) job security for whistleblowers C) guidelines for providing ethics training D) system for anonymously reporting misconduct Answer: B Explanation: The FSGO promised softer punishments for wayward corporations that already had ethics programs in place. In the law were recommendations regarding standards, ethics training, and a system to report misconduct anonymously. The Sarbanes-Oxley Act provided protections for whistleblowers. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 37) According to the FSGO, ________ were supposed to be responsible for the prevention of white collar crimes in an organization. A) attorneys B) top executives C) common stockholders D) organizational stakeholders Answer: B Explanation: According to the FSGO, executives were supposed to be responsible for the misconduct of those lower in the organization. If executives were proactive in their efforts to prevent white collar crime it would lessen a judgment against them and reduce the liability. Diff: 2 Skill: Concept AACSB: Analytical thinking LO: 2.1: Discuss what ethics means and the sources of ethical guidance 38) Which law most likely prompted organizations to create codes of ethics and install ethics hotlines? A) Corporate and Auditing Accountability, Responsibility, and Transparency Act B) Federal Sentencing Guidelines for Organizations Act C) Procurement Integrity Act D) McCarran-Ferguson Act Answer: B Explanation: The FSGO led organizations to create ethics officer positions, install ethics hotlines, and develop codes of ethics in hopes of lessening ethics judgments against the firm and reducing the firm's liability. The McCarran-Ferguson Act relates insurance regulation rather than business ethics. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

39) Which law criminalizes many corporate acts that were previously relegated to various regulatory structures? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: C Explanation: The Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 criminalized many corporate acts that were previously relegated to various regulatory structures. Known as the Sarbanes-Oxley Act, its primary focus is to redress accounting and financial reporting abuses in light of corporate scandals. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 40) Which law was passed to redress accounting and financial reporting abuses in light of corporate scandals? A) Federal Sentencing Guidelines for Organizations B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Federal Contract Protection Act Answer: C Explanation: The Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 criminalized many corporate acts that were previously relegated to various regulatory structures. Known as the Sarbanes-Oxley Act, its primary focus is to redress accounting and financial reporting abuses in light of corporate scandals. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 41) Which law contains broad employee whistleblower protections against firms and managers that retaliate or harass employees who report suspected corporate wrongdoing? A) Sarbanes-Oxley Act B) Procurement Integrity Act C) Federal Sentencing Guidelines for Organizations D) Federal Contract Protection Act Answer: A Explanation: The Sarbanes-Oxley Act contains broad employee whistleblower protections that subject corporations and their managerial personnel to significant civil and criminal penalties for retaliating, harassing, or discriminating against employees who report suspected corporate wrongdoing. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 13 Copyright © 2019 Pearson Education, Inc.

42) Erica, an accountant, notices suspicious accounting practices at the firm where she is employed. She wants to report the unethical behavior to authorities but is worried that she might be harassed or demoted as a result. Which law was passed to protect Erica in this situation? A) Federal Contract Protection Act B) Procurement Integrity Act C) Taft-Hartley Act D) Sarbanes-Oxley Act Answer: D Explanation: The Sarbanes-Oxley Act contains broad employee whistleblower protections that subject corporations and their managerial personnel to significant civil and criminal penalties for retaliating, harassing, or discriminating against employees who report suspected corporate wrongdoing. Diff: 2 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 43) John provides information to the SEC about conduct by his employer that he believes constitutes securities fraud. Which law most likely protects John from being demoted for his actions? A) Federal Contract Protection Act B) Procurement Integrity Act C) Sarbanes-Oxley Act D) Taft-Hartley Act Answer: C Explanation: The Sarbanes-Oxley Act states that management may not discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee protected by the Act. It protects any employee who lawfully provides information to governmental authorities concerning conduct he or she reasonably believes constitutes mail, wire, or securities fraud; violations of any rule or regulation issued by the SEC; or violations of any other federal law relating to fraud against shareholders. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

44) Which 2003 Supreme Court case upheld Sarbanes-Oxley's whistleblower-protection rule? A) Dothard v. Rawlingson B) Bechtel v. Competitive Technologies Inc. C) O'Connor v. Consolidated Coin Caterers Corp. D) Grutter v. Bollinger Answer: B Explanation: In the 2003 Bechtel v. Competitive Technologies Inc. Supreme Court case involving wrongful termination under Sarbanes-Oxley's whistleblower-protection rule, the Court ruled that the company violated the Act by firing two employees and ordered them reinstated. They were fired because during a meeting they had raised concerns about the company's decision not to report, on its SEC filing, an act they thought should have been disclosed. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 45) The Supreme Court ruling in Bechtel v. Competitive Technologies Inc. upheld which federal law? A) McCarran-Ferguson Act B) Sarbanes-Oxley Act C) Davis-Bacon Act D) Taft-Hartley Act Answer: B Explanation: In the 2003 Bechtel v. Competitive Technologies Inc. Supreme Court case involving wrongful termination under Sarbanes-Oxley's whistleblower-protection rule, the Court ruled that the company violated the Act by firing two employees and ordered them reinstated. They were fired because during a meeting they had raised concerns about the company's decision not to report, on its SEC filing, an act they thought should have been disclosed. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

46) According to the Sarbanes-Oxley Act, any SEC reporting bank that does NOT have a code of ethics must ________. A) submit a report to Congress B) provide an explanation C) pay a significant fine D) develop an ethics code Answer: B Explanation: Sarbanes-Oxley requires publicly traded companies to disclose whether or not they have adopted a code of ethics for senior officers. The Act does not require SEC reporting banks and bank-holding companies to have a code of ethics, but if an SEC reporting company does not have one, it must explain why. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 47) Which of the following is NOT required by the Sarbanes-Oxley Act? A) Publicly traded firms must disclose whether they have a code of ethics for top executives. B) Publicly traded firms must not discharge employees who report ethical abuses. C) Bank-holding companies and SEC reporting banks must have codes of ethics. D) Corporations must not provide financial loans to executives or directors. Answer: C Explanation: The Sarbanes-Oxley Act does not require SEC reporting banks and bank-holding companies to have a code of ethics. It requires publicly traded companies to disclose whether or not they have adopted a code of ethics for senior officers. The Act states that management may not discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee protected by the Act. The law prohibits loans to executives and directors. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 48) The Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law in 2010. Answer: TRUE Explanation: The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted in 2010, in response to the greatest financial crisis since the Great Depression. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

49) The Procurement Integrity Act of 1988 was passed after reports of military contracts for $500 toilet seats and $5,000 hammers. Answer: TRUE Explanation: The Procurement Integrity Act of 1988, prohibits the release of source selection and contractor bid or proposal information. The Act was passed after there were reports of military contracts for $500 toilet seats and $5,000 hammers. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 50) According to the Procurement Integrity Act, if a firm that has an ethics program in place is found guilty of misconduct, the firm will receive a reduced punishment. Answer: FALSE Explanation: The Federal Sentencing Guidelines for Organizations Act promised softer punishments for wayward corporations that already had ethics programs in place. The Procurement Integrity Act of 1988, prohibits the release of source selection and contractor bid or proposal information. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 51) Although laws cannot mandate ethics, they may be able to identify the baseline separating what is good and what is bad. Answer: TRUE Explanation: Many experts contend that ethics cannot be legislated. Although laws cannot mandate ethics, they may be able to identify the baseline separating what is good and what is bad. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 52) The Corporate and Auditing Accountability, Responsibility and Transparency Act is also known as the Sarbanes-Oxley Act. Answer: TRUE Explanation: The Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 was passed to legislate business ethics. The act, also known as the Sarbanes-Oxley Act, criminalized many corporate acts that were previously relegated to various regulatory structures. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

53) The Federal Sentencing Guidelines for Organizations Act contains broad employee whistleblower protections that subject corporations to penalties for retaliating against employees who report suspected corporate wrongdoing. Answer: FALSE Explanation: The Sarbanes-Oxley Act contains broad employee whistleblower protections that subject corporations and their managerial personnel to significant civil and criminal penalties for retaliating, harassing, or discriminating against employees who report suspected corporate wrongdoing. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 54) The Sarbanes-Oxley Act was passed in response to reports of out-of-control military spending. Answer: FALSE Explanation: The Sarbanes-Oxley Act was passed to redress accounting and financial reporting abuses in light of corporate scandals rather than military spending. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 55) In the 2003 case Bechtel v. Competitive Technologies Inc., the Supreme Court overturned Sarbanes-Oxley's whistleblower-protection rule. Answer: FALSE Explanation: Bechtel v. Competitive Technologies Inc. involved wrongful termination under Sarbanes-Oxley's whistleblower protection rule. The Court ruled that the company violated the Act by firing two employees and ordered them reinstated, so the whistleblower protection rule was upheld. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 56) The Corporate and Auditing Accountability, Responsibility and Transparency Act requires SEC reporting banks and bank-holding companies to have a code of ethics. Answer: FALSE Explanation: The Corporate and Auditing Accountability, Responsibility and Transparency Act does not require SEC reporting banks and bank-holding companies to have a code of ethics, but if an SEC reporting company does not have one, it must explain why. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance

57) Identify and discuss the federal government's four attempts to legislate business ethics since the late 1980s. Answer: The Procurement Integrity Act of 1988 prohibited the release of source selection and contractor bid or proposal information. In addition, a former employee who served in certain positions on a procurement action or contract in excess of $10 million cannot receive compensation as an employee or consultant from that contractor for one year. The second attempt occurred with the passage of the 1992 Federal Sentencing Guidelines for Organizations Act (FSGO), which outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations. The third attempt at legislating business ethics was the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002 (Sarbanes-Oxley Act), which criminalized many corporate acts that were previously relegated to various regulatory structures. The primary focus of the Sarbanes-Oxley Act is to redress accounting and financial reporting abuses in light of corporate scandals. The fourth, the Dodd-Frank Wall Street Reform and Consumer Protection Act, was signed into law in 2010. The act was brought on by the worst financial crisis since the Great Depression, which resulted in the loss of 8 million jobs, failed businesses, a drop in housing prices, and wiped out personal savings of many workers. As the financial crisis advanced, it became clear that executive compensation played a major role in the financial services sector as well as in the capital markets following the collapse of investment services firms as Lehman Brothers, Merrill Lynch, Bear Stearns, and AIG. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.1: Discuss what ethics means and the sources of ethical guidance 58) The primary purpose of an ethics audit is to ________. A) ensure that EEO policies are being implemented B) supplement a company's code of ethics C) evaluate a company's ethical culture D) interview ethics training candidates Answer: C Explanation: An ethics audit is simply a systematic, independent, and documented process for obtaining evidence regarding the status of an organization's ethical culture. It is taking a closer look at a firm's ethical culture instead of just allowing it to remain unexamined. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

59) Harvey Electronics has used a number of methods to create an ethical culture that both employees and customers appreciate. What is the most effective way for the firm to sustain its ethical culture? A) asking job candidates ethical questions B) implementing an ethics audit regularly C) publishing the firm's code of ethics periodically D) ensuring that new employees receive ethics training Answer: B Explanation: One way for a firm to create and sustain an ethical culture is to audit ethics, much like a company audit its finances each year. An ethics audit is simply a systematic, independent, and documented process for obtaining evidence regarding the status of an organization's ethical culture. It is taking a closer look at a firm's ethical culture instead of just allowing it to remain unexamined. Diff: 3 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 60) Organizations with strong ethical cultures take steps to ensure that their standards are ________. A) widely accessible B) followed by leaders and employees C) promoted D) all of the above Answer: D Explanation: Organizations with strong ethical cultures take steps to ensure that their standards are widely accessible, promoted, and followed by their leaders and employees. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

61) The climate fundamental to a company's ethical culture is set by whom? A) employees B) board of directors and the CEO C) managers and supervisors D) all of the above Answer: D Explanation: The climate with top management is fundamental to a company's ethical culture. Ethical leadership begins with the board of directors and CEO and continues to middle managers, supervisors, and employees. Building an ethical culture that lasts requires a foundation of practices that continue even when leaders change. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 62) An ethical culture consists of all of the following factors EXCEPT ________. A) ethical leadership B) guerilla marketing C) values D) accountability Answer: B Explanation: An ethical culture is made up of factors such as ethical leadership, accountability, and values. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 63) Executives and managers at ABC Enterprises actively encourage a strong ethical culture at the firm. Which of the following would be the most likely result of the firm's actions? A) increased employee interest in development programs B) frequent use of human resource information systems C) changes in corporate communication methods D) improvements in organizational performance Answer: D Explanation: By fostering a strong ethical culture, firms are better able to gain the confidence and loyalty of their employees and other stakeholders, which can result in reduced financial, legal, and reputation risks, as well as improvements in organizational performance. Diff: 3 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

64) Which term refers to a statement of the values adopted by the company, its employees and its directors? A) code of ethics B) ethical policies C) vision statement D) code of conduct Answer: A Explanation: The code of ethics is a statement of the values adopted by the company, its employees, and its directors, and sets the official tone of top management regarding expected behavior. A code of conduct tells employees what the rules of conduct are. The code of ethics helps employees know what to do when there is not a rule for something. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 65) Julia works as a production supervisor, and she believes one of her subordinates is drinking during his lunch break. Julia's employer does not have a specific rule regarding the subordinate's behavior. Which of the following would most likely assist Julia with her problem in this situation? A) corporate code of ethics B) corporate vision statement C) corporate code of conduct D) federal legislation Answer: A Explanation: A distinction needs to be made between a code of conduct and a code of ethics; the former should tell employees what the rules of conduct are. The code of ethics helps employees know what to do when there is not a rule for something. Diff: 2 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

66) Lincoln Enterprises recently fired two employees who were caught stealing tools from the firm's warehouse. As a result, the CEO of Lincoln wants to strengthen the firm's ethical culture and prevent future violations by redesigning the firm's ethics program. Which of the following questions is LEAST relevant when developing Lincoln's new ethics program? A) What behavior is expected of Lincoln employees? B) What is the opinion of stakeholders regarding Lincoln's ethics? C) How are ethical situations communicated and resolved at Lincoln? D) What is the process for Lincoln establishing a corporate giving program? Answer: D Explanation: Corporate giving programs are types of CSR programs and are less relevant to how the firm redesigns its ethics program. The firm should review the expected behavior of employees, the thoughts of stakeholders, and the current procedures for handling ethical problems. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 67) Which of the following is NOT a major provision in the SHRM code of ethics? A) professional responsibility B) cultural understanding C) professional development D) fairness and justice Answer: B Explanation: Major provisions in the SHRM code of ethics include professional responsibility, professional development, ethical leadership, fairness and justice, conflicts of interest, and use of information. Cultural understanding is not a provision in the SHRM code of ethics. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

68) Vision Technologies wants to gain the confidence of employees and customers by developing a strong ethical culture. Which of the following methods would be the best way for the firm's HR department to accomplish this goal? A) placing the code of ethics on the firm's intranet B) posting the code of ethics in the breakroom C) providing ethics training to employees D) having employees sign ethics contracts Answer: C Explanation: To build and sustain an ethical culture, organizations need a comprehensive framework that encompasses communication of behavior expectations, training on ethics and compliance issues, stakeholder input, resolution of reported matters, and analysis of the entire ethics program. Posting a code of ethics online or in a breakroom is less likely to be effective. Having employees sign ethics contracts is helpful but less effective than providing training. Diff: 3 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 69) A code of ethics establishes the ________ that the organization lives by. A) policies B) procedures C) values D) technologies Answer: C Explanation: The code of ethics is a statement of the values adopted by the company, its employees, and its directors, and sets the official tone of top management regarding expected behavior. Diff: 1 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics

70) Riley Manufacturing recently developed a code of ethics. Which of the following topics is most likely covered in the document? A) business conduct B) fair competition C) HR issues D) all of the above Answer: D Explanation: Topics typically covered in a code of ethics might be business conduct, fair competition, and workplace and HR issues. Diff: 2 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 71) According to Walmart's code of ethics, Edward, an employee in the sales department, cannot accept gifts from suppliers because such actions would be a ________. A) conflict of interest B) double standard C) regulatory breach D) discriminatory act Answer: A Explanation: Firms involving purchasing and sales typically establish in a code of ethics that accepting gifts from suppliers constitutes a conflict of interest. At Walmart, it is considered unethical to accept gifts from suppliers. Gifts are either destroyed or given to charity. Diff: 2 Skill: Application AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 72) In order to maintain the importance of a code of ethics to employees, large firms frequently ________. A) write a code of conduct B) send a memo to all employees C) appoint an ethics officer D) put the ethical code on the intranet Answer: C Explanation: To keep the code on the front burner for employees, larger firms appoint an ethics officer. The ethics officer is the point person in guiding everyone in the company toward ethical actions. This individual should be a person who understands the work environment. Diff: 2 Skill: Concept AACSB: Ethical understanding and reasoning LO: 2.2: Explore human resources management's (HRM) role in creating an ethical culture and a code of ethics 25 Copyright © 2019 Pearson Education, Inc.