Chapter 1
The Challenge of Human Resources Management
TRUE/FALSE
1. An organization's human resources are a means by which the firm fosters a sustained
competitive advantage.
ANS: T REF: p. 4 OBJ: 1-1 TYPE: U
2. To achieve sustainable competitive advantage through people, an organization's employees'
skills, knowledge, and abilities must be widely available in the labor market.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: U
3. In order to facilitate sustained competitive advantage, firms need only to ensure that human
resources are combined and organized properly.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: K
4. We have to understand corporate social responsibility to work with people effectively.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: K
5. Human capital plays an important role in providing employees a work environment that
meets their needs.
ANS: F REF: p. 4-5 OBJ: 1-1 TYPE: K
6. Approximately 40 percent of the U.S. economy is affected by international competition.
ANS: F REF: p. 6 OBJ: 1-2 TYPE: K
7. The Free Trade Area of the Americas (FTAA) was replaced by the North American Free
Trade Agreement (NAFTA).
ANS: F REF: p. 6 OBJ: 1-2 TYPE: A
, 8. For a company with overseas operations, some critical concerns for success are the
identification, selection, and compensation of expatriates.
ANS: T REF: p. 8 OBJ: 1-2 TYPE: U
9. The introduction of advanced technology tends to increase the number of jobs that require
basic skills.
ANS: F REF: p. 8 OBJ: 1-3 TYPE: K
10. In general, many companies are realizing diminished demand for "touch labor" and an
increasing demand for "knowledge workers."
ANS: T REF: p. 8 OBJ: 1-3 TYPE: K
11. Knowledge workers are employees whose responsibilities focus on problem solving.
ANS: F REF: p. 8 OBJ: 1-3 TYPE: U
12. A Human Resource Information System (HRIS) provides current and accurate data for
control and decision-making by managers.
ANS: T REF: p. 9 OBJ: 1-3 TYPE: K
13. Because of its importance, HR managers should assume sole responsibility for the
implementation of information technology.
ANS: F REF: p. 13 OBJ: 1-3 TYPE: U
14. To proactively manage change, organizations should wait to see how external forces impact
an organization's performance, then develop a plan to address those changes.
ANS: F REF: p. 13 OBJ: 1-4 TYPE: U, 1-4 TYPE: A
15. Only about two-thirds of the companies surveyed by the American Management Association
(AMA) reported having a formal change management program in their companies.
ANS: T REF: p. 14 OBJ: 1-4 TYPE: K
16. Reallocating resources and assets are most often the reason for failed change management.
,ANS: F REF: p. 14 OBJ: 1-4 TYPE: U, 1-4 TYPE: A
17. One of the main reasons change efforts fail is that organizations do not create a sense of
urgency.
ANS: T REF: p. 14 OBJ: 1-4 TYPE: K
18. A firm's ability to compete through people depends upon its ability to manage human
capital.
ANS: T REF: p. 14 OBJ: 1-5 TYPE: U
19. Human capital is owned by the organization and is part of the company's core
competencies.
ANS: F REF: p. 15 OBJ: 1-5 TYPE: K, 1-5 TYPE: U
20. To build human capital in organizations, managers should focus on training programs in
areas that cannot be transferred to competitors.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: A
21. To build human capital in organizations, firms should seek employees who possess
knowledge, skills and abilities that are of strategic value to the firm and also invest in the
development of employee KSAs.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: A
22. Development programs, especially those involving teams, facilitate learning and knowledge
exchange.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: K
23. Employees often have skills that go unused.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: K
24. Teamwork is often a valuable way of facilitating knowledge exchange and mutual learning.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: U
, 25. Development of human capital is the responsibility of the HR group.
ANS: F REF: p. 16 OBJ: 1-5 TYPE: U
26. Total-quality management is a set of principles and practices whose core ideas include
doing things right the first time and striving for continuous improvement.
ANS: T REF: p. 16 OBJ: 1-6 TYPE: K
27. To be successful, organizations should constantly seek to align their processes with
customer needs.
ANS: T REF: p. 17 OBJ: 1-6 TYPE: U
28. 'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: U
29. Organizations known for product and service quality recognize the importance of
employees in fostering quality improvements
ANS: T REF: p. 17 OBJ: 1-6 TYPE: K
30. Six Sigma is a set of principles and practices whose core ideas include doing things right the
first time and striving for continuous improvement.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K, 1-6 TYPE: U
31. Employee motivation, teamwork, corporate culture, employee education, performance
management, and rewards are the six aspects in the quality improvement program known
as 'Six Sigma.'
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K
32. Reengineering is a statistical method of translating customer needs into separate tasks and
defining the best way to perform each task.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K, 1-6 TYPE: U
33. To launch a successful reengineering effort, it is important that managers build on existing
processes.
The Challenge of Human Resources Management
TRUE/FALSE
1. An organization's human resources are a means by which the firm fosters a sustained
competitive advantage.
ANS: T REF: p. 4 OBJ: 1-1 TYPE: U
2. To achieve sustainable competitive advantage through people, an organization's employees'
skills, knowledge, and abilities must be widely available in the labor market.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: U
3. In order to facilitate sustained competitive advantage, firms need only to ensure that human
resources are combined and organized properly.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: K
4. We have to understand corporate social responsibility to work with people effectively.
ANS: F REF: p. 4 OBJ: 1-1 TYPE: K
5. Human capital plays an important role in providing employees a work environment that
meets their needs.
ANS: F REF: p. 4-5 OBJ: 1-1 TYPE: K
6. Approximately 40 percent of the U.S. economy is affected by international competition.
ANS: F REF: p. 6 OBJ: 1-2 TYPE: K
7. The Free Trade Area of the Americas (FTAA) was replaced by the North American Free
Trade Agreement (NAFTA).
ANS: F REF: p. 6 OBJ: 1-2 TYPE: A
, 8. For a company with overseas operations, some critical concerns for success are the
identification, selection, and compensation of expatriates.
ANS: T REF: p. 8 OBJ: 1-2 TYPE: U
9. The introduction of advanced technology tends to increase the number of jobs that require
basic skills.
ANS: F REF: p. 8 OBJ: 1-3 TYPE: K
10. In general, many companies are realizing diminished demand for "touch labor" and an
increasing demand for "knowledge workers."
ANS: T REF: p. 8 OBJ: 1-3 TYPE: K
11. Knowledge workers are employees whose responsibilities focus on problem solving.
ANS: F REF: p. 8 OBJ: 1-3 TYPE: U
12. A Human Resource Information System (HRIS) provides current and accurate data for
control and decision-making by managers.
ANS: T REF: p. 9 OBJ: 1-3 TYPE: K
13. Because of its importance, HR managers should assume sole responsibility for the
implementation of information technology.
ANS: F REF: p. 13 OBJ: 1-3 TYPE: U
14. To proactively manage change, organizations should wait to see how external forces impact
an organization's performance, then develop a plan to address those changes.
ANS: F REF: p. 13 OBJ: 1-4 TYPE: U, 1-4 TYPE: A
15. Only about two-thirds of the companies surveyed by the American Management Association
(AMA) reported having a formal change management program in their companies.
ANS: T REF: p. 14 OBJ: 1-4 TYPE: K
16. Reallocating resources and assets are most often the reason for failed change management.
,ANS: F REF: p. 14 OBJ: 1-4 TYPE: U, 1-4 TYPE: A
17. One of the main reasons change efforts fail is that organizations do not create a sense of
urgency.
ANS: T REF: p. 14 OBJ: 1-4 TYPE: K
18. A firm's ability to compete through people depends upon its ability to manage human
capital.
ANS: T REF: p. 14 OBJ: 1-5 TYPE: U
19. Human capital is owned by the organization and is part of the company's core
competencies.
ANS: F REF: p. 15 OBJ: 1-5 TYPE: K, 1-5 TYPE: U
20. To build human capital in organizations, managers should focus on training programs in
areas that cannot be transferred to competitors.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: A
21. To build human capital in organizations, firms should seek employees who possess
knowledge, skills and abilities that are of strategic value to the firm and also invest in the
development of employee KSAs.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: A
22. Development programs, especially those involving teams, facilitate learning and knowledge
exchange.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: K
23. Employees often have skills that go unused.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: K
24. Teamwork is often a valuable way of facilitating knowledge exchange and mutual learning.
ANS: T REF: p. 15 OBJ: 1-5 TYPE: U
, 25. Development of human capital is the responsibility of the HR group.
ANS: F REF: p. 16 OBJ: 1-5 TYPE: U
26. Total-quality management is a set of principles and practices whose core ideas include
doing things right the first time and striving for continuous improvement.
ANS: T REF: p. 16 OBJ: 1-6 TYPE: K
27. To be successful, organizations should constantly seek to align their processes with
customer needs.
ANS: T REF: p. 17 OBJ: 1-6 TYPE: U
28. 'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: U
29. Organizations known for product and service quality recognize the importance of
employees in fostering quality improvements
ANS: T REF: p. 17 OBJ: 1-6 TYPE: K
30. Six Sigma is a set of principles and practices whose core ideas include doing things right the
first time and striving for continuous improvement.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K, 1-6 TYPE: U
31. Employee motivation, teamwork, corporate culture, employee education, performance
management, and rewards are the six aspects in the quality improvement program known
as 'Six Sigma.'
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K
32. Reengineering is a statistical method of translating customer needs into separate tasks and
defining the best way to perform each task.
ANS: F REF: p. 17 OBJ: 1-6 TYPE: K, 1-6 TYPE: U
33. To launch a successful reengineering effort, it is important that managers build on existing
processes.
