Chapter 1: Human Resource Management and Competitive Advantage
TRUE/FALSE
1. Demand and supply forecasting is a process that helps human resource planners estimate the
number and type of employees needed to carry out an organization’s strategic plan.
ANS: T
Generally recognized component of the human resource planning process.
PTS: 1 DIF: Easy REF: 1-1a
2. Human resource demand and supply forecasting facilitates an organization’s efforts to fill
positions in high demand.
ANS: T
HR demand and supply forecasting information enables a firm to plan its recruitment, selection,
and training strategies.
PTS: 1 DIF: Moderate REF: 1-1a
3. A selection process need not be technically sound to be effective.
ANS: F
If a selection process is not technically sound, it will not be accurate and may lead to unnecessary
litigation.
PTS: 1 DIF: Moderate REF: 1-1b
,4. The aim of an organization’s recruitment practices is to identify a suitable pool of applicants
quickly, cost effectively, and legally.
ANS: T
These are generally accepted objectives of organizations’ recruitment practices.
PTS: 1 DIF: Easy REF: 1-1b
5. Development is a planned learning experience that only focuses on teaching workers how to
perform their current jobs more effectively.
ANS: F
Development prepares employees for future jobs.
PTS: 1 DIF: Easy REF: 1-1c
6. Productivity improvement programs are designed to tie job behaviors to rewards.
ANS: T
Aim of such programs is to motivate employees to engage in appropriate job behaviors.
PTS: 1 DIF: Moderate REF: 1-1c
7. The objective of compensation practices is to help the organization establish and maintain a
competent and loyal workforce at any cost.
ANS: F
The aim of compensation practices is to help the organization maintain a competent and loyal
workforce at an affordable cost.
PTS: 1 DIF: Moderate REF: 1-1c
, 8. Managers that make employment selection decisions in an arbitrary fashion are decreasing their
firm’s exposure to discrimination-related lawsuits.
ANS: F
Firms that use an arbitrary decision process with respect to selection are increasing their firm’s
exposure to discrimination-related lawsuits.
PTS: 1 DIF: Moderate REF: 1-1d
9. The enactment of federal, state, and local laws that regulate workplace behavior have not
radically changed most human resource management practices during the last 40 years.
ANS: F
The passage of such laws has had a dramatic impact on virtually every HRM practice over the
last 40 years.
PTS: 1 DIF: Moderate REF: 1-1d
10. An expanding cultural diversity at the workplace has no influence on HRM practices.
ANS: F
Various social, economic, and technological events strongly influence HRM practices.
PTS: 1 DIF: Moderate REF: 1-1d
11. In smaller companies, line managers assume a larger role in effective human resource
management practices.
ANS: T
This is true because smaller firms cannot afford to create and maintain an HR department.
, PTS: 1 DIF: Easy REF: 1-2
12. Part of the human resource professional’s role is to monitor and evaluate an organization’s human
resource management practices.
ANS: T
This is how the HR professional ensures that the HRM practices are properly implemented.
PTS: 1 DIF: Easy REF: 1-2a
13. Advising and assisting line managers on human resource management matters is often considered
the most important role played by HR professionals.
ANS: T
HR professionals consult on an array of HRM-related topics such as providing formal training
programs and advice about specific HRM-related concerns among others.
PTS: 1 DIF: Moderate REF: 1-2a
14. The development of human resource management procedures and methods usually does not
require inputs from line managers.
ANS: F
Without input from line managers, HR practitioners will not have a clear idea of what is needed
and whether or not practices are effective.
PTS: 1 DIF: Moderate REF: 1-2b
15. Firms can gain a competitive advantage over competitors by effectively managing their human
resources.
TRUE/FALSE
1. Demand and supply forecasting is a process that helps human resource planners estimate the
number and type of employees needed to carry out an organization’s strategic plan.
ANS: T
Generally recognized component of the human resource planning process.
PTS: 1 DIF: Easy REF: 1-1a
2. Human resource demand and supply forecasting facilitates an organization’s efforts to fill
positions in high demand.
ANS: T
HR demand and supply forecasting information enables a firm to plan its recruitment, selection,
and training strategies.
PTS: 1 DIF: Moderate REF: 1-1a
3. A selection process need not be technically sound to be effective.
ANS: F
If a selection process is not technically sound, it will not be accurate and may lead to unnecessary
litigation.
PTS: 1 DIF: Moderate REF: 1-1b
,4. The aim of an organization’s recruitment practices is to identify a suitable pool of applicants
quickly, cost effectively, and legally.
ANS: T
These are generally accepted objectives of organizations’ recruitment practices.
PTS: 1 DIF: Easy REF: 1-1b
5. Development is a planned learning experience that only focuses on teaching workers how to
perform their current jobs more effectively.
ANS: F
Development prepares employees for future jobs.
PTS: 1 DIF: Easy REF: 1-1c
6. Productivity improvement programs are designed to tie job behaviors to rewards.
ANS: T
Aim of such programs is to motivate employees to engage in appropriate job behaviors.
PTS: 1 DIF: Moderate REF: 1-1c
7. The objective of compensation practices is to help the organization establish and maintain a
competent and loyal workforce at any cost.
ANS: F
The aim of compensation practices is to help the organization maintain a competent and loyal
workforce at an affordable cost.
PTS: 1 DIF: Moderate REF: 1-1c
, 8. Managers that make employment selection decisions in an arbitrary fashion are decreasing their
firm’s exposure to discrimination-related lawsuits.
ANS: F
Firms that use an arbitrary decision process with respect to selection are increasing their firm’s
exposure to discrimination-related lawsuits.
PTS: 1 DIF: Moderate REF: 1-1d
9. The enactment of federal, state, and local laws that regulate workplace behavior have not
radically changed most human resource management practices during the last 40 years.
ANS: F
The passage of such laws has had a dramatic impact on virtually every HRM practice over the
last 40 years.
PTS: 1 DIF: Moderate REF: 1-1d
10. An expanding cultural diversity at the workplace has no influence on HRM practices.
ANS: F
Various social, economic, and technological events strongly influence HRM practices.
PTS: 1 DIF: Moderate REF: 1-1d
11. In smaller companies, line managers assume a larger role in effective human resource
management practices.
ANS: T
This is true because smaller firms cannot afford to create and maintain an HR department.
, PTS: 1 DIF: Easy REF: 1-2
12. Part of the human resource professional’s role is to monitor and evaluate an organization’s human
resource management practices.
ANS: T
This is how the HR professional ensures that the HRM practices are properly implemented.
PTS: 1 DIF: Easy REF: 1-2a
13. Advising and assisting line managers on human resource management matters is often considered
the most important role played by HR professionals.
ANS: T
HR professionals consult on an array of HRM-related topics such as providing formal training
programs and advice about specific HRM-related concerns among others.
PTS: 1 DIF: Moderate REF: 1-2a
14. The development of human resource management procedures and methods usually does not
require inputs from line managers.
ANS: F
Without input from line managers, HR practitioners will not have a clear idea of what is needed
and whether or not practices are effective.
PTS: 1 DIF: Moderate REF: 1-2b
15. Firms can gain a competitive advantage over competitors by effectively managing their human
resources.
