Strategic Human Resource Management: Gaining a Competitive Advantage 2nd Canadian Edition Test Bank

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Exam
Name___________________________________
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) Companies have historically looked at HRM as a means to contribute to profitability,
quality, and other business goals through enhancing and supporting business operations.
1) _______
2) The human resource department is most likely to collaborate with other company
functions on outplacement, labour law compliance, testing, and unemployment
compensation.
2) _______
3) The three product lines of HR include a) administrative services and transactions, B)
financial services, and c) strategic partners.
3) _______
4) Competitiveness is a company's ability to maintain and gain market share in its industry. 4) _______
5) The amount of time that the HRM function devotes to administrative tasks is decreasing,
and its roles as a strategic business partner, change agent, and employee advocate are
increasing.
5) _______
6) Evidence-based HR provides managers with data to make decisions, instead of just
relying on intuition.
6) _______
7) Stakeholders of a company are shareholders, the community, customers, employees, and
all of the other parties that have an interest in seeing that the company succeeds.
7) _______
8) A university degree is held by the vast majority of HRM professionals, many of whom
also have completed postgraduate work.
8) _______
9) Companies are now more and more interested in using intangible assets and human
capital as a way to gain an advantage over competitors.
9) _______
10) The psychological contract describes what an employee expects to contribute and what
the company will provide to the employee in return for these contributions.
10) ______
11) The use of alternative work arrangements, which include independent contractors,
on-call workers, temporary workers, and contract company workers, is shrinking.
11) ______
12) To be effective, balanced scorecards must be customized by companies to fit different
market situations, products, and competitive environments.
12) ______
13) The balanced scorecard should not be used to link the company's human resource
management activities to the company's business strategy.
13) ______
14) Corporate cultures within companies that successfully implement TQM typically
emphasize individualism, hierarchy, accountability, and profits.
14) ______
15) The skills and motivation of a company's internal labor force determine the need for
training and development practices and the effectiveness of the company's compensation
and reward systems.
15) ______
16) As the workforce is predicted to become more uniform in terms of age, ethnicity, and racial

backgro
und, it is
likely
that one
set of
values
will
characte
rize all
employe
es.
16) ___
___
17) Cultural diversity can provide a company competitive advantage regarding
problem-solving.
17) ______
18) Every business must be prepared to deal with the global economy. 18) ______
19) Initially, offshoring involved complex manufacturing jobs with little direction in how the
work was to be completed.
19) ______
20) Smaller entrepreneurial companies are finding that offshoring helps them expand their
business.
20) ______
21) One of the disadvantages of technology is that it does not allow older workers to
postpone retirement.
21) ______
22) Many companies are taking steps to reduce the amount of flexible work schedules. 22) ______
23) E-HRM is more applicable to practices associated with recruiting and training than those
associated with analysis and design work, selection, and compensation and benefits.
23) ______
24) Most HR Executives have recognized the need to make the function's major role into one
that is much more strategic.
24) ______
25) As the role of HRM in administration has increased, other roles such as practice
development and strategic business partnering have decreased.
25) ______
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
26) As far back as 2004, a Management Issues Survey conducted by the CME revealed that
42 percent of respondents believed limited availability of skilled and experienced
personnel would be a strategic issue changing fundamental business practices over the
next five years. All survey respondents agreed that the core competencies required of the
manufacturing workforce would change substantially, and by the year 2020 would
include all the following key skills except:
26) ______
A) Multilingual and multicultural skills, as business operations expand on a more
global basis.
B) A mix of creative problem-solving capabilities, technical know-how, and business
skills, as well as an ability to interact with colleagues and customers.
C) A high degree of skilled workers that can be applied to all areas of business as they
will have a more well-rounded business education.
D) A higher degree of technical and technological expertise as production systems

become more
automated
and interconnected, and as workplaces incorporate advanced technologies such as
nanotechnology, biotechnology, microelectronics, and robotics.
27) Which of the following best describes the HR Professional's competency of
consultation?
27) ______
A) Ability to apply the principles of HRM to contribute to the success of the business.
B) Ability to provide guidance to stakeholders on a variety of circumstances and
situations.
C) Ability to effectively exchange and create a free flow of information among
stakeholders.
D) Ability to direct initiatives and processes within the organization and gain buy-in
from stakeholders.
28) Transformational activities 28) ______
A) include knowledge management, cultural change, and strategic renewal.
B) are the nuts and bolts of HRM.
C) are low in their strategic value.
D) often form the practices and systems to ensure strategy execution.
29) Adaptive organizational structures emphasize: 29) ______
A) internal linking, external linking, diversification, and a core set of values.
B) efficiency, decision making by managers, and the flow of information from top to
bottom of the organization.
C) a core set of values, and elimination of boundaries between managers, employees,
and organizational functions.
D) clear boundaries between managers, employees, customers, vendors, and the
functional areas, and a constant state of learning.
30) Which of the following is NOT a responsibility of HR departments? 30) ______
A) Benefits B) Community relations
C) Production and operations D) Recruiting
31) An example of a transformational activity is 31) ______
A) benefits administration. B) management development.
C) training. D) compensation.
32) _________ is a competency for HR professionals that includes the ability to manager
interactions with and between others with the specific goal of providing service and
organizational success.
32) ______
A) Critical Evaluation
B) Consultation
C) Relationship Management
D) Organizational Leadership and Navigation
33) Which of the following fall under the traditional activities of HRM? 33) ______
A) Benefits administration B) Employee Services
C) Performance management D) Cultural change
34) HRM practices that support high-performance work systems include all of the following
EXCEPT:
34) ______
A) Discipline B) Training

C) Compensation D) Work design
35) Technology has also made equipment __________ to operate, helping companies cope
with skill shortages and allowing older workers to ___________ retirement.
35) ______
A) harder; postpone B) harder; move up
C) easier; move up D) easier; postpone
36) ___________ is a systematic planned strategic effort by a company to attract, retain,
develop, and motivate highly skilled employees and managers.
36) ______
A) Employee management B) Labour management
C) Talent management D) Recruitment management
37) All of the following HR practices support high-performance work systems EXCEPT: 37) ______
A) employee rewards are related to company performance.
B) jobs are designed to use a variety of skills.
C) employees participate in selection process.
D) individuals tend to work separately.
38) HRM practices include all of the following EXCEPT 38) ______
A) Employee relations B) Employee work- life balance
C) Recruiting D) HR planning
39) Litigation involving job security will have a major influence on human resource
management practices because:
39) ______
A) employees now bear the burden of proof in discrimination cases.
B) work rules, recruitment practices, and performance evaluation systems might falsely
communicate lifetime employment agreements that the company does not intend to
honor during layoffs.
C) adjustments of test scores to meet affirmative action requirements are now illegal.
D) compensation awards for discrimination claims have increased.
40) Traditionally, the HRM department was primarily a(n): 40) ______
A) employer advocate. B) administrative expert.
C) proactive agency. D) finance expert.
41) Which of the following is NOT a standard that human resource managers must satisfy
for practices to be ethical?
41) ______
A) Managers must treat employees and customers equitably and fairly.
B) Human resource practices must result in the greatest good for the largest number of
people.
C) Employment practices must respect basic human rights of privacy, due process, and
free speech.
D) Managers must treat employees as family.
42) Sustainability includes all of the following EXCEPT: 42) ______
A) the ability to deal with economic and social changes.
B) engaging in responsible and ethical business practices.
C) expanding into foreign markets.
D) providing high-quality products and services.
43) Many companies are entering international markets by all of the following means EX CEPT

43) ______
A) Entering into alliances with foreign companies
B) Exporting their products overseas
C) Entering into alliances with foreign governments
D) Building manufacturing facilities or service centers in other countries
44) Managing cultural diversity involves: 44) ______
A) creating separate career tracks for employees with families.
B) creating a workplace that makes it comfortable for employees of all backgrounds to
be creative and innovative.
C) establishing a strong affirmative action policy.
D) enforcing EEO rules.
45) From the manager's perspective, an HRIS can be used to perform primarily all but one of
the following. Name the exception.
45) ______
A) Avoid litigation B) Evaluate programs and policies
C) Support strategic decision making D) Motivate employees
46) The skills and motivation of a company's _____ labour force determine the need for
training and development practices and the effectiveness of the company's compensation
and reward systems.
46) ______
A) internal B) projected C) secondary D) external
47) __________ has the potential to increase employee productivity, encourage
family-friendly work arrangements, and help reduce traffic and air pollution.
47) ______
A) Flexible work schedules B) Virtual teams
C) Telecommuting D) Teleconferencing
48) __________ are work systems that maximize the fit between the company's social
system and technical system.
48) ______
A) High-performance work systems B) Virtual teams
C) Functional work systems D) High-efficiency work systems
49) Some companies are offering ___________ to better prepare their managers and their
families for overseas assignments.
49) ______
A) travel arrangements B) cross-cultural training
C) cultural assimilation preparation D) guided tours
50) Tacit knowledge is an example of _____ capital. 50) ______
A) intellectual B) customer C)

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C) Human Resource Interactive System (HRIS)
D) Human Resource Information System (HRIS)
53) _____ refers to the policies, practices, and systems that influence employees' behavior,
attitudes, and performance.
53) ______
A) Total quality management
B) Human resource management
C) Production and operations management
D) Financial management
54) Exporting jobs from developed to less developed countries is known as: 54) ______
A) offshoring. B) importing. C) onshoring. D) insourcing.
55) As the role of HRM in administration has __________, other roles such as practice
development and strategic business partnering have __________.
55) ______
A) increased; increased B) increased; decreased
C) decreased; decreased D) decreased; increased
56) The balanced scorecard: 56) ______
A) is similar to most measures of company performance.
B) should not be applied to HR practices.
C) uses indicators important to the company's strategy.
D) is a standardized instrument of company performance.
57) Which of the following statements about evidence-based HR is FALSE? 57) ______
A) It emphasizes that HR is being transformed from a broad corporate competency to a
specialized, stand-alone function in which human resources and line managers build
partnerships to gain competitive advantage.
B) It helps show that the money invested in HR programs is justified and that HR is
contributing to the company's goals and objectives.
C) It refers to demonstrating that human resources practices have a positive influence
on the company's bottom line or key stakeholders.
D) It requires collecting data on such metrics as productivity, turnover, accidents,
employee attitudes and medical costs and showing their relationship with HR
practices.
58) All of the following statements about cross training are true EXCEPT: 58) ______
A) employees can fill any of the roles needed to be performed on the team.
B) it helps in measuring employees' performance.
C) it provides teams' maximum flexibility.
D) it trains employees in a wide range of skills.
59) The balanced scorecard presents a view of company performance from the perspective
of:
59) ______
A) its employees and customers only.
B) its employees only.
C) its customers only.
D) its employees, customers, and shareholders.
60) The main reason jobs are offshored is 60)

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C) labour costs D) production costs
61) The following are reasons that the demand for employees will exceed supply EXCEPT: 61) ______
A) Creation of jobs
B) Slow population growth
C) Slow retirement of the aging population
D) Lack of employees with the required skills
62) Company Xanado has offices around the globe. Its teams are separated by time,
geographic distance, culture and or organizational boundaries, and almost rely
exclusively on technology for interaction between team members. Its teams are:
62) ______
A) virtual teams. B) teleworker teams.
C) geographically-concentrated teams. D) lean teams.
63) Which of the following is FALSE about high-involvement, adaptive organizational
structures?
63) ______
A) Employees are in a constant state of learning and performance improvement.
B) Previously established boundaries between managers, employees, customers, and
vendors are abandoned.
C) Employees are free to move wherever they are needed in a company.
D) Line employees are trained to specialize in one job in order to maximize efficiency.
64) Initially, offshoring involved ___________ manufacturing jobs with ___________ tasks
and ___________ guidelines for how the work was to be completed.
64) ______
A) high-skilled; repeatable; general B) low-skilled; repeatable; specific
C) low-skilled; repeatable; general D) high-skilled; complex; specific
65) While there has been considerable debate across North America about whether
offshoring results in loss of jobs or creates new jobs, a 2008 study by Baldwin and Gu
concluded that material and services offshoring has ________________.
65) ______
A) no effect on employment in North America
B) no effect on employment in Canada
C) a major effect on employment in Canada
D) a major effect on employment in North America
66) All of the following are examples of alternative work arrangements EXCEPT: 66) ______
A) on-call workers. B) temporary workers.
C) independent contractors. D) current labour force.
67) TQM focuses on: 67) ______
A) reducing variability in the product or service.
B) preventing errors rather than correcting errors.
C) designing processes to meet the needs of external customers only.
D) tying pay to employees' total output less production rejects.
68)

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C) Equal employment opportunity, safety and health, pay and benefits, privacy, and
job security.
D) Executive compensation, pay and benefits, workers' compensation, safety and
health, and job security.
69) Which one of the following statements about the HR profession is FALSE? 69) ______
A) The primary professional organization for HRM is the Society for Human Resource
Management.
B) Professional certification in HRM is less common than membership in professional
associations.
C) A college degree is required of HR specialists, but not of generalists.
D) Generalists usually perform the full range of HRM activities, including recruiting,
training, compensation, and employee relations.
70) A(n) _____ contract describes what an employee expects to contribute and what the
company will provide to the employee for these contributions.
70) ______
A) employee B) psychological C) employer D) job
71) Businesses around the world are attempting to increase their competitiveness and value
by
71) ______
A) recruiting and hiring internationally B) increasing their global presence
C) advertising D) outsourcing current production
72) How diversity issues are managed in companies has implications for all the following
EXCEPT:
72) ______
A) creativity. B) retaining good employees.
C) knowing how to learn. D) problem solving.
73) _____ refers to a company's ability to maintain and gain market share in its industry. 73) ______
A) Self-service B) Empowerment
C) Competitiveness D) Outsourcing
74) One estimate is that developing economies and emerging markets such as those found in
the BRIC nations (Brazil, Russia, India, and China) will be responsible for ________
percent of the growth of the world's economy.
74) ______
A) sixty eight B) seventy five C) forty two D) fifty four
75) Although the labour force in Canada grew at an average annual rate of about 1.4 percent
between 2006 and 2010, it is projected to ______ percent by 2016.
75) ______
A) increase to 1.8 B) slow to 1
C) slow to 0.5 D) increase to 2
76) You are the Senior HR Specialist for the national light bulb factory, Daylite, that is
focused on providing environmentally friendly and energy efficient alternatives to

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77) _____ refers to the ability of a company to survive and succeed in a dynamic competitive
environment.
77) ______
A) Empowerment B) Sustainability
C) Outsourcing D) Resource management
78) Global business expansion has been made easier by 78) ______
A) technology B) NAFTA
C) enhanced communication D) improved government relations
79) Which of the following statements about technology is FALSE? 79) ______
A) Technology does not allow older workers to postpone retirement.
B) The Internet gives employees instant access to experts whom they can communicate
with.
C) Technology has made equipment easier to operate, helping companies cope with
skill shortages.
D) The Internet allows employees to locate and gather resources, including software,
reports, photos, and videos.
80) All of the following competitive challenges faced by companies will increase the
importance of human resource management EXCEPT:
80) ______
A) the global challenge. B) the technology challenge.
C) the political challenge. D) the challenge of sustainability.
81) Which of the following statements about intangible assets is FALSE? 81) ______
A) They include human capital.
B) They are less valuable than physical assets.
C) They are difficult to duplicate or imitate.
D) They are equally or even more valuable than financial assets.
82) Which of the following is NOT typically true of work teams? 82) ______
A) They assume all of the activities reserved for managers such as controlling,
planning, and coordinating activities.
B) They use cross-training to give employees knowledge on a wide range of skills.
C) They frequently select new team members and plan work schedules.
D) They are used to increase employee responsibility and control.
83) Increasingly, companies are trying to meet shareholder and general public demands that
they be more socially, ethically, and environmentally responsible. Thus, companies are
recognizing the importance of:
83) ______
A) total quality management.
B) diversity.
C) a balanced scorecard approach to business.
D) social responsibility.
84) The nuts and bolts of HRM are 84) ______
A) training activities. B) traditional activities.

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A) training. B) management development.
C) compensation. D) staffing.
86) Knowledge management, management development, cultural change, and strategic
redirection and renewal represent which type of HR activity?
86) ______
A) Transnational B) Transformational
C) Transactional D) Traditional
87) Benefits administration, record keeping and employee services represent which type of
HR activity?
87) ______
A) Transactional B) Traditional
C) Transformational D) Transnational
88) Recruitment and selection, training, performance management, compensation and
employee relations represent which type of HR activity?
88) ______
A) Transactional B) Traditional
C) Transformational D) Transnational
89) Teams that are separated by time, geographic distance, culture, and or organizational
boundaries and rely almost exclusively on technology for interaction between team
members are
89) ______
A) virtual teams. B) transformational teams.
C) cyber teams. D) transnational teams.
90) Which of the following is NOT one of the questions used to determine if Human
Resources are playing a strategic role in the Business?
90) ______
A) What can HR do to increase the recruitment of highly skilled employees?
B) What makes an employee want to stay at our company?
C) What's the best change we can make to prepare for the future?
D) How can we reinvest in employees?
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

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attracted
to
offshori
ng
because
of the
labour
benefits.
Howeve
r, he has
come to
you for
advice
as he
wants to
know
what
implicat
ions it
will
have for
the
HRM
function
s. What
advice
will you
give
him?
97) ___
___
___
___
_
98) How has technology changed the way people work and where they work? 98) _____________
99) There are nine key questions used to determine if Human Resources are playing a
strategic role in the business. List five of these nine key questions.
99) _____________
100) In order for individuals to understand the transformation going on in HRM, they
must understand the HRM activities in terms of their strategic value. List the
three categories of HRM activities in descending order of amount of time spent
on each activity. What are some of the activities that take place within each of
these categories?
100) ____________

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amo
ng
vari
ous
stak
ehol
ders
at all
levels of the organization to produce meaningful outcomes
Global and Cultural Effectiveness: Managing human resources both within and across boundaries
Ethical Practice: Integration of core values, integrity, and accountability throughout all organizational and
business practices
Critical Evaluation: Skill in interpreting information to determine return on investment and organizational
impact in making recommendations and business decisions
Business Acumen: Ability to understand business functions and metrics within the organization and
industry
92) Answers may vary
(1) Competing through technology: Change employees' and managers' work roles; Create
high-performance work systems through integrating technology and social systems; and develop
e-commerce and e-HRM. (2) Competing through sustainability: Provide a return to shareholders; Provide
high-quality products, services and work experiences for employees; Increase value placed on intangible
assets and human capital; Social and environmental responsibility; Adapt to changing characteristics and
expectations of the labour force; Address legal and ethical issues; and Effectively use new work
arrangements. (3) Competing through globalization: Expand into foreign markets and prepare employees
to work in foreign locations.
93) Answers may vary
The competition for labour is affected by the growth and decline of industries, jobs, and occupations.
Competition for labour is also influenced by the number and skills of persons available for full-time work.
While the labour force in Canada is projected to grow in the next two decades, reaching around 20.5-22.5
million by 2031, the period up to 2026 reveals some concerns. For example, although the labour force in
Canada grew at an average annual rate of about 1.4 percent between 2006 and 2010, it is projected to slow
to 1 percent by 2016 and less than 1 percent annually thereafter until 2026, at which point most of the
baby boomers will have retired. The current national labour force participation rate is expected to fall to
only 62.6 percent by 2031, from its current levels of around 67 percent. The future Canadian labour
market will be both a knowledge economy and a service economy. Projections indicate that by 2022 the
service sector will account for 79 percent of total employment, although job growth in this area will slow
to a marginal pace. Job growth in the construction sector, which was substantial in the early part of the
2000s, will weaken due to slower anticipated growth in the construction industry, and is expected to
comprise 7.6 percent of all jobs. Finally, all other Canadian jobs will be derived from the manufacturing
sector (9.5 percent) and the primary sector (3.7 percent) by 2022.29 There will be many high education
professional and managerial jobs and low-education service jobs. Boundaries between knowledge and
service work are blurring, creating "technoservice" occupations that combine service technology and
software application. Software application engineers, technical support, engineering, and people in
scientific consulting jobs work directly with customers, and customers influence the product design
process.
94) Answers may vary
The psychological contract describes what an employee expects to contribute and what the company will
provide to the employee for these contributions. Unlike a sales contract, a psychological contract is not
written. Traditionally, companies expected employees to contribute time, effort, skills, abilities, and
loyalty. In return, companies would provide job security and opportunities for promotion. However, in the
new economy a new type of psychological contract is emerging. The competitive business environment
demands frequent changes in the quality, innovation, creativeness, and timeliness of employee
contributions and the skills needed to provide them. This has led to restructuring, mergers and acquisitions
and often layoffs and longer hours for many employees. Companies demand excellent customer service
and high productivity levels. Employees are expected to take more responsibility for their own careers,
from seeking training to balancing work and family. In exchange for top performance and working longer

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hour
s
with
out
job
secu
rity,
employees want companies to provide flexible work schedules, comfortable working conditions, more
autonomy in accomplishing work, training and development opportunities, and financial incentives based
on how the company performs. Employees realize that companies cannot provide employment security, so
they want employability-that is, they want their company to provide training and job experiences to help
ensure that employees can find other employment opportunities. These changing expectations and an
underlying cynicism felt by employees have been aggravated by the recession.
95) Answers may vary
The balanced scorecard is a means of performance measurement that gives managers a chance to look at
their company from the perspectives of internal and external customers, employees, and shareholders. The
balanced scorecard:
1. Is based on the degree to which stakeholder needs are satisfied.
2. Brings together most measures needed to be competitive.
3. Gives employees a framework to link their goals to organizational goals.
4. Is used to link HR activities to business strategy.
5. Evaluates how much HR is helping to meet strategic objectives.
96) Answers may vary
The five main areas of the legal environment that have influenced HRM over the past 25 years are equal
employment opportunity legislation, employee safety and health, employee pay and benefits, employee
privacy, and job security.
97) Answers may vary
Points to consider are (1) Can employees in the offshored locations provide a level of customer service the
same as or higher than customers receive from Canadian operations? (2) Would offshoring demoralize
Canadian employees such that the gains from offshoring would be negated by lower motivation, lower
satisfaction, and higher turnover? (3) Are local managers adequately trained to motivate and retain
offshore employees? (4) What is the potential effect, if any, of political unrest in the countries in which
operations are offshored? Will employees be safe there? And, (5) What effect would offshoring have on
the public image of the company? Would customers or potential customers avoid purchasing products or
services because they believe offshoring costs Canadian employees their jobs? Would offshoring have an
adverse effect on recruiting new employees?
98) Answers may vary
Advances in sophisticated technology along with reduced costs for the technology are changing many
aspects of human resource management. Technological advances in electronics and communications
software have made possible mobile technology such as smartphones and iPods as well as improving the
Internet. Companies are able to keep things moving around the clock using highly integrated computer
technology, cellphones and skype to hold meetings and exchange information. Many have gone as far as
creating a virtual watercooler on a secure site so that staff can socialize across the miles. The Internet and
the Web allow employees to send and receive information as well as to locate and gather resources,
including software, reports, photos, and videos. The Internet gives employees instant access to experts
whom they can communicate with and to newsgroups, which are bulletin boards dedicated to specific
areas of interest, where employees can read, post, and respond to messages and articles.
Companies are able to establish High-Performance Work Systems and Virtual Teams and build Human
Resources Information Systems. These advances have the potential for freeing workers from going to a
specific location to work and from traditional work schedules. Telecommuting has the potential to
increase employee productivity, encourage family-friendly work arrangements, and help reduce traffic and
air pollution. But at the same time, technologies may result in employees being on call hours a day, seven

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