Questions and correct detailed Answers | 2026/27 Study Updates | 100% Pass Guarantee
Managing Human Capital (C202)
Chapter 1 – Strategic Human Resource Management
1. How can HRM create value within an organization? by making the company better at executing its strategy
2. The purpose of the organizational function of HRM is to attract, hire, develop, reward, and retain talent.
3. Taking workplace health and safety seriously helps to reduce compliance risk.
4. When an organization adopts a new manufacturing process, which HRM function is responsible for improving
employees’ skills to meet its new talent needs? training
5. Staffing is the process of planning, acquiring, deploying, and retaining employees that enables the organization to
meet its talent needs and execute its business strategy.
6. Separations due to poor performance, layoffs, or restructuring are part which HRM function? staffing
7. Succession planning can help to ensure that an organization has people ready to assume leadership positions as soon
as those positions become available.
8. What type of management involves aligning individual employees’ goals and behaviors with organizational goals and
strategies? performance management
9. By providing the raw talent that the system will manage, staffing influences the effectiveness of which system?
performance management
10. To promote and maintain ethical behavior, managers need to provide performance feedback.
11. Compensation received in the form of salary, wages, commissions, stock options, or bonuses is called direct financial
compensation.
12. Compensation including free meals, vacation time, and health insurance is called indirect financial compensation.
13. Rewards and incentives given to employees that are not financial in nature, including intrinsic rewards received from
the job itself or from the work environment, are called nonfinancial compensation.
14. When a company creates new HRM initiatives to strengthen employees’ ethical awareness and company culture to
enhance its competitive advantage, it is managing strategic risk.
15. HRM affects the speed and effectiveness of talent acquisition as well as the development of employees’ skills and the
identification and retention of top performers. These and other HRM activities that can directly influence the
organization’s success or failure are examples of operational risk.
16. When new HRM processes reduce the cost of hiring employees, they have reduced its financial risk.
17. Thinking through the ramifications of an employment-related decision in terms of legal risk, particularly in the areas
of diversity, health and safety, union relations, whistleblowers, and harassment, is an example of managing
compliance risk.
18. To expand internationally, mergers and acquisitions have been common organizational strategies.
19. Mergers and acquisitions often fail because of cultural issues.
20. Communication between HR and employees is extremely important.
Chapter 2 – The Role of Human Resource Management in Business
1. What are the four broad types of organizational culture? entrepreneurial, bureaucratic, consensual, competitive
2. Sports teams like the New York Yankees and Pittsburgh Steelers consistently excel because of their strong
performance culture.
3. Restaurants that schedule their highest performing servers during the busiest shifts are focused on performance
culture.
4. Starbucks is a good example of a people-oriented culture.
, 5. A bureaucratic culture that stifles innovation and risk taking is thought to have contributed to Nokia’s declining
market share.
6. The standards of moral behavior that define socially acceptable behaviors as right or wrong are known as ethics.
7. Which ethical action shows respect and compassion for all others, especially the most vulnerable? common good
standard