QUESTIONS WITH VERIFIED ANSWERS AND
FULL SOLUTIONS
◉ The type of organizational asset/capital that is most difficult to
measure is Answer: Human
◉ Research conducted by Hustled in the 1990s was one of the first
to demonstrate the importance of "high performance work systems"
(HPWS). The concept of HPWS refers to Answer: integrated and
strategically-focused HR practices that contribute to organizational
profitability and market value
◉ Based on the HR Value Chain, the foundation for achieving
"bottom line" outcomes for an organization is Answer: employee
outcomes
◉ The Vice President of HR at a consumer products company wants
to use the HR value chain to help maximize profitability and market
value of the firm. Which outcome measure should she focus her time
and resources on to achieve this objective? Answer: employee
engagement
, ◉ Which measure does the HR function at Dow Chemical use to
assist in calculating both the current and future contribution of
employees for the overall financial success of the company? Answer:
actual human capital return (AHCR)
◉ Nordstrom seeks to achieve competitive advantage by focusing on
superior customer service. The customer service strategy is
supported by which HR practice? Answer: employee training
◉ Common HR metrics include Answer: cost per hire
◉ The Vice President of HR at a financial services company wants to
take a more strategic approach to HR by focusing on a key metric
that can be used to show the value created by employees. Which
metric should he use in this situation? Answer: profit per employee
◉ The president of a major retailer wants to take a more strategic
approach to HR by focusing on a key metric that can be used to show
the degree of leverage of human capital. Considering the methods
we have reviewed in this chapter, which method would be most
appropriate? Answer: HR expense factor
◉ The president of a computer manufacturer wants to take a more
strategic approach to HR by focusing on a key metric that can be
used to show the return on human investments relative to