TRUE/FALSE
1. In general, many companies are realizing diminished demand for "touch labor" and an
increasing demand for "knowledge workers."
ANS: T PTS: 1 REF: p. 7 OBJ: 1-3 TYPE: K
2. Knowledge workers are employees whose responsibilities focus on problem solving.
ANS: F PTS: 1 REF: p. 9 OBJ: 1-3 TYPE: U
3. A Human Resource Information System (HRIS) provides current and accurate data for
control and decision-making by managers.
ANS: T PTS: 1 REF: p. 9 OBJ: 1-3 TYPE: K
4. 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 PTS: 1 REF: p. 12 OBJ: 1-4 TYPE: U | 1-4
TYPE: A
5. One of the main reasons change efforts fail is that organizations do not create a sense of
urgency.
ANS: T PTS: 1 REF: p. 12 OBJ: 1-4 TYPE: K
, 6. A firm's ability to compete through people depends upon its ability to manage human
capital.
ANS: T PTS: 1 REF: p. 13 OBJ: 1-5 TYPE: U
7. Human capital is owned by the organization and is part of the company's core
competencies.
ANS: F PTS: 1 REF: p. 13 OBJ: 1-5 TYPE: K | 1-5
TYPE: U
8. To build human capital in organizations, managers should focus on training programs in
areas that cannot be transferred to competitors.
ANS: T PTS: 1 REF: p. 14 OBJ: 1-5 TYPE: A
9. Development programs, especially those involving teams, facilitate learning and knowledge
exchange.
ANS: T PTS: 1 REF: p. 15 OBJ: 1-5 TYPE: K
10. Teamwork is often a valuable way of facilitating knowledge exchange and mutual learning.
ANS: T PTS: 1 REF: p. 15 OBJ: 1-5 TYPE: U
11. Development of human capital is the responsibility of the HR group.
ANS: F PTS: 1 REF: p. 15 OBJ: 1-5 TYPE: U
,12. 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 PTS: 1 REF: p. 16 OBJ: 1-6 TYPE: K
13. To be successful, organizations should constantly seek to align their processes with
customer needs.
ANS: T PTS: 1 REF: p. 16 OBJ: 1-6 TYPE: U
14. 'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.
ANS: F PTS: 1 REF: p. 16 OBJ: 1-6 TYPE: U
15. 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 PTS: 1 REF: p. 16 OBJ: 1-6 TYPE: K | 1-6
TYPE: U
16. 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 PTS: 1 REF: p. 16 OBJ: 1-6 TYPE: K
17. Reengineering is a statistical method of translating customer needs into separate tasks and
defining the best way to perform each task.
ANS: F PTS: 1 REF: p. 17 OBJ: 1-6 TYPE: K | 1-6
TYPE: U
, 18. To launch a successful reengineering effort, it is important that managers build on existing
processes.
ANS: F PTS: 1 REF: p. 17 OBJ: 1-6 TYPE: A
19. Labor costs are one of the largest expenditures of any organization.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: K
20. Technology reduces labor costs in service and knowledge intensive companies.
ANS: F PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: U | 1-7
TYPE: A
21. Methods of reducing labor costs include downsizing, outsourcing, and employee leasing.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: K
22. Downsizing is often used by organizations for the planned elimination of jobs.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: K
23. The large majority of major corporations have undergone some cycle of downsizing.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: K
24. Historically, layoffs affected line workers in manufacturing firms, but since the 1990’s white
collar and managerial jobs are the hardest hit.
ANS: T PTS: 1 REF: p. 17 OBJ: 1-7 TYPE: K | 1-7
TYPE: U