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.
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.
