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,TESTBANK FOR Managing Human Resources, 10th
Edition Monica Belcourt
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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
1. Which area of human resources management is responsible for full-cycle recruitment, promotions, and
terminations?
a. labour relations b. total rewards
c. workforce planning d. risk management
e. performance management

ANSWER: c

2. Which term refers to the knowledge, skills, and capabilities of individuals that have economic value for
an organization?
a. competitive advantage
b. human capital
c. human resources
d. strategic advantage
e. corporate social value

ANSWER: b

3. In the overall framework for human resources management, what is classified as a competitive
challenge?
a. job security b. globalization
c. healthcare d. diversity issues
e. work–life balance

ANSWER: b

4. Dave Ulrich, a professor of business, is quoted as saying that, in terms of learning and development,
“Learning capability is g times g….” What does this mean?
a. an employee’s knowledge, measured as g, multiplied by the employer’s goodwill
b. an organization’s goodwill multiplied by its generosity to employees in terms of salaries and
benefits
c. an organization’s grand image and brand multiplied by its goodwill
d. an organization’s ability to generate new ideas multiplied by its proficiency for generalizing
them throughout the company
e. an employee’s general intelligence, also known as g, multiplied by the organization’s
goodwill

ANSWER: d

5. What are the components of human capital?
a. employees’ skills, capabilities, and behaviours
b. employees’ knowledge, skills, and capabilities
c. employees’ knowledge, skills, and behaviours
d. employees’ knowledge, capabilities, and behaviours
e. employees’ knowledge, experience, and education

ANSWER: b

6. HRM plays an important role in organizations by balancing the sometimes competing demands of
which of the following?

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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
a. competitive challenges and employee concerns
b. international challenges and employee concerns
c. employee concerns and employer challenges
d. competitive concerns and employer challenges
e. organizational strategy and employee concerns

ANSWER: a

7. Which of the following best reflects the impact of the COVID-19 pandemic on the workplace?
a. setting and achieving corporate social responsibility and sustainability goals
b. responding strategically to crisis, changes, and disruptions in the local and global marketplace
c. advancing HRM with technology
d. containing costs while retaining top talent and maximizing productivity
e. managing diversity and inclusion considerations during a labour shortage

ANSWER: b

8. Compared with the past, what are two areas to which contemporary HR managers add value?
a. streamlining costs and helping with business strategies
b. performing administrative issues and streamlining costs
c. performing administrative issues and adhering to employment laws
d. dealing with unions and streamlining costs
e. gathering data and dealing with unions

ANSWER: a

9. Which term refers to a fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in cost, quality, service, and speed?
a. reengineering b. downsizing
c. Six Sigma d. change management
e. rightsizing

ANSWER: a

10. What was the first major trade agreement of the twentieth century to establish rules and guidelines for
global commerce?
a. NAFTA (North American Free Trade Agreement)
b. GATT (General Agreement on Tariffs and Trade)
c. FTAA (Free Trade Area of the Americas)
d. USMCA (United States–Mexico–Canada Agreement)
e. WTO (World Trade Organization)

ANSWER: b

11. A company has decided to hire someone from outside the company to perform tasks that could be
done internally. What is this practice called?
a. contracting b. outplacement
c. employee leasing d. outsourcing
e. distributing
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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management

ANSWER: d

12. What type of change is initiated to take advantage of targeted opportunities?
a. strategic
b. reactive
c. cultural
d. proactive
e. competitive

ANSWER: d

13. Which term refers to a systematic way of bringing about and managing both organizational changes
and changes on the individual level?
a. reengineering
b. strategic change
c. Six Sigma
d. change management
e. downsizing

ANSWER: d

14. Which term refers to the planned elimination of jobs?
a. downsizing
b. outsourcing
c. reengineering
d. rightsizing
e. change management

ANSWER: a

15. An organization is attempting to manage reactive change within the organization. This organization is
radically changing every process through redesigning and rethinking each process. The firm needs a
dramatic change to survive. What is this organization implementing?
a. Six Sigma
b. continuous improvement
c. reengineering
d. total quality management
e. offshoring

ANSWER: c

16. An organization decided to lay off a relatively large proportion of their employees due to poorer-than-
anticipated financial performance. What is this an example of?
a. proactive change
b. transformational change
c. transitional change
d. reactive change
e. unexpected change

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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
ANSWER: d

17. To take advantage of a market opportunity, Apple designed the iPhone using an open-source format
so that anyone can develop and sell an iPhone application. What is this an example of?
a. proactive change
b. reactive change
c. managing change
d. transformational change
e. innovative change

ANSWER: a

18. An organization is planning to sell its products to new markets outside North America in anticipation
of changes in the United States–Mexico–Canada Agreement (USMCA). What type of change
management is this organization practicing?
a. inertia
b. proactive
c. reactive
d. passive
e. cultural

ANSWER: b

19. Which of the following is NOT a key benefit of corporate social responsibility?
a. avoiding lawsuits
b. improving earnings
c. attracting more applicants
d. improving pay for employees
e. increasing competitive position

ANSWER: d

20. Which of the following is an example of corporate social responsibility?
a. providing career counselling to outsourced employees to increase their ability to find work
b. installing noise-reduction barriers in plants to decrease anticipated community complaints
c. sharing knowledge freely throughout the organization to improve employee efficiency and
workflow
d. providing speed-reading courses for front-line staff to improve their abilities in absorbing new
information
e. providing health and safety training for all employees to ensure compliance and maximize
safety

ANSWER: b

21. Which type of work would a knowledge worker most likely engage in?
a. deciding which type of fertilizer to buy wholesale for a landscaping business
b. counting the number of grocery items in carts leaving a wholesale store
c. monitoring children on new daycare playground equipment
d. installing new ink cartridges in colour photocopiers in an office environment

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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
e. completing point of sales transactions in a retail organization

ANSWER: a

22. Information technology impacts HRM practices in several important ways. Which of the following is
one such way?
a. Paper waste from employee files is drastically decreased.
b. Convenience in general has increased.
c. Employee monitoring of all types is more efficient.
d. Many HR functions can now be considered “self-service.”
e. Organizational decision making has been drastically improved.

ANSWER: d

23. Human resources information systems in some organizations help managers to connect with
employees and with the HR data they need. What type of technological effect is this?
a. relational b. operational
c. transformational d. configurational
e. functional

ANSWER: a

24. Human resources information systems in some organizations are changing the way HR processes are
designed and executed. What type of technological effect is this?
a. relational b. operational
c. transformational d. configurational
e. inspirational

ANSWER: c

25. Which of the following is an application of “big data” and workforce analytics in human resources
management?
a. using trade data to predict unemployment figures
b. using job applicant data to predict performance
c. using sales data to segment markets
d. using exit interviews to predict unemployment figures

ANSWER: b

26. To prevent downsizing its employees, an organization has asked its staff to accept reduced pay. What
strategy is this organization using?
a. furloughing b. employee leasing
c. reduced downsizing d. outsourcing
e. productivity enhancements

ANSWER: a

27. Which statement best reflects the current view on the effectiveness of offshoring as a cost reduction
measure?
a. While organizations can save with this practice, hidden costs, such as productivity loss during

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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
the transition, can minimize the financial gains.
b. The practice of offshoring has been one of the most positive HR trends of the past ten years.
c. The continuous shifting of global economies makes offshoring a necessary function for
organizations to survive.
d. Offshoring only works if top managers begin early in the process to plan their key strategies,
such as alternative talent pools and workforce training.
e. Offshoring represents the best way for organizations to reduce costs while still improving
organizational effectiveness.

ANSWER: a

28. An organization wants to contain its costs while still maintaining working relationships with the
employees while also shifting administrative costs to another firm. What is this situation an example of?
a. professional employer organization b. gain sourcing
c. employee leasing d. outsourcing
e. offshoring

ANSWER: c

29. Which statement best describes a major strength of employee leasing?
a. Employee leasing shifts employment costs to the professional employer organization.
b. With employee leasing, the professional employer organization allows organizations to
increase their productivity.
c. Employee leasing allows organizations to offer better job security through the strength of the
professional employer organization.
d. With employee leasing, the professional employer organization can manage employee issues.
e. Employee leasing reduces labour costs and increases productivity.

ANSWER: a

30. Which of the following is a key motivator for offshoring?
a. increased productivity b. better just-in-time operations
c. better access to technology d. decreased labour costs
e. improved organizational effectiveness

ANSWER: d

31. Which of the following is NOT an approach generally used by organizations to try to lower labour
costs?
a. employee development
b. outsourcing
c. employee leasing
d. relocating aspects of their operations to countries in the developing world
e. furloughing

ANSWER: a

32. Many Canadian firms are shifting some of their work and jobs to overseas locations. What is this
business practice called?
a. nearshoring b. offshoring
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,Name: Class: Date:

Chapter 1 - The World of Human Resources Management
c. employee leasing d. downsizing
e. furloughing

ANSWER: b

33. Which of the following is a critical demographic-related problem impacting Canadian firms?
a. an increasingly similar population b. retirement of baby boomers
c. migration from Ontario d. increasing salaries for employees
e. lack of skilled workers

ANSWER: b

34. What are millennials also known as?
a. Generation A b. Generation B
c. Generation X d. Generation Y
e. Generation Z

ANSWER: d

35. A bank is experiencing rapid retirement of baby boomers. The bank needs to retain its employment
levels because of the volume of work, and it does not want to increase the workload of its employees.
Which statement outlines the best strategy for the bank to pursue to address this situation?
a. Do nothing as the situation will rectify itself through attrition.
b. Offer higher compensation packages to attract qualified candidates.
c. Downsize the firm to save on labour costs.
d. Increase production efforts to gain more revenue.
e. Implement more effective training efforts for current employees.

ANSWER: b

36. Which of the following is a key benefit for organizations when they rehire retirees?
a. lower health care costs b. better strategic planning
c. improved group performance d. lower turnover
e. reduced training costs

ANSWER: d

37. What is the Canadian workforce expected to exhibit by 2036?
a. about the same demographic mix as it does today
b. a decrease in ethnic diversity
c. an increase in ethnic diversity
d. a decrease in retirements
e. a decrease in the supply of workers

ANSWER: c

38. Which of the following trends is causing a major organizational concern that the expertise of
employees will be rapidly leaving their companies?
a. Generation nexus is thus far not demonstrating a dedication to training and education.
b. There is an increase of uneducated labour entering the workforce.
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, Name: Class: Date:

Chapter 1 - The World of Human Resources Management
c. Recruitment of lower-skilled immigrant workers is increasing.
d. Large proportions of some workforces are nearing retirement.
e. Increased proportions of ethnic minorities in the workforce.

ANSWER: d

39. According to the text, which generation would make the most sense for organizations to target for
recruitment via social media?
a. baby boomers b. echo boomers
c. Generation X d. Generation Z
e. Generation Y

ANSWER: d

40. Which statement best describes the relationship among gender, education, and pay?
a. Women generally earn less than men do; however, when women have an advanced degree,
they earn the same amount as men.
b. Men and women generally earn the same amount except when neither group has any higher
education.
c. Women consistently and in every category earn less than men with an equivalent amount of
education.
d. Men with a university degree earn approximately the same as women with an advanced
degree.
e. Women typically spend less time obtaining educational credentials and therefore earn less
money than men.

ANSWER: c

41. According to the text, which group is responsible for building an organization’s skilled and motivated
workforce?
a. HR managers b. line managers and supervisors
c. department managers d. HR and line managers
e. top leadership

ANSWER: d

42. Which of the following is a key responsibility of the human resources manager?
a. ensuring the credit rating of the organization
b. balancing the organization’s accounts
c. policy formulation and implementation
d. securing new markets
e. recruitment and selection

ANSWER: c

43. Which responsibility of the HR manager involves listening to employee concerns and representing
their needs to managers?
a. strategic advice and counsel b. employee service
c. policy formulation and implementation d. employee advocacy
e. negotiation and mediation
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