Managing Human
Resources 2025 Release
Wayne Cascio | Test Bank
CHAPTER 1: HUMAN RESOURCES IN A GLOBALLY
COMPETITIVE BUSINESS ENVIRONMENT
True / False Questions
Question 1
The digital form of globalization in the modern era is largely confined to advanced
economies with large, multinational corporations.
A) True
B) False
Correct Answer: B
,Rationale: The digital form of globalization is not confined to advanced economies.
Through digital information flows, even the smallest firms can now compete globally and
access talent from around the world .
Question 2
Today, as a result of the global flow of digital information, even the smallest firms
can compete with the largest multinational corporations.
A) True
B) False
Correct Answer: A
Rationale: The global flow of digital information has democratized access to markets and
talent. Today, small firms can leverage technology to compete internationally in ways
previously impossible .
Question 3
Today, in the increasingly digital era of globalization, companies can find the best
person for a job anywhere in the world.
A) True
B) False
Correct Answer: A
Rationale: Technology enables organizations to recruit and hire talent globally. Remote
work and digital collaboration tools allow companies to access the best candidates
regardless of geographic location .
, Question 4
Managing change is an ongoing process whose objective is to enhance the ability
of an organization to anticipate and respond to developments in only its external
environment.
A) True
B) False
Correct Answer: B
Rationale: Managing change involves responding to developments in both the external
environment AND internal organizational needs. It is not limited to external factors alone .
Question 5
Changes in any single part of a human resource management system have a
reverberating effect on all other parts of the system.
A) True
B) False
Correct Answer: A
Rationale: HRM systems are highly interconnected. A change in one area (e.g.,
compensation) will inevitably affect other areas (e.g., recruitment, retention, performance
management) .
Question 6
The functional areas of human resource management, such as staffing and
retention, are the sole responsibility of the HR department.
A) True
B) False
Resources 2025 Release
Wayne Cascio | Test Bank
CHAPTER 1: HUMAN RESOURCES IN A GLOBALLY
COMPETITIVE BUSINESS ENVIRONMENT
True / False Questions
Question 1
The digital form of globalization in the modern era is largely confined to advanced
economies with large, multinational corporations.
A) True
B) False
Correct Answer: B
,Rationale: The digital form of globalization is not confined to advanced economies.
Through digital information flows, even the smallest firms can now compete globally and
access talent from around the world .
Question 2
Today, as a result of the global flow of digital information, even the smallest firms
can compete with the largest multinational corporations.
A) True
B) False
Correct Answer: A
Rationale: The global flow of digital information has democratized access to markets and
talent. Today, small firms can leverage technology to compete internationally in ways
previously impossible .
Question 3
Today, in the increasingly digital era of globalization, companies can find the best
person for a job anywhere in the world.
A) True
B) False
Correct Answer: A
Rationale: Technology enables organizations to recruit and hire talent globally. Remote
work and digital collaboration tools allow companies to access the best candidates
regardless of geographic location .
, Question 4
Managing change is an ongoing process whose objective is to enhance the ability
of an organization to anticipate and respond to developments in only its external
environment.
A) True
B) False
Correct Answer: B
Rationale: Managing change involves responding to developments in both the external
environment AND internal organizational needs. It is not limited to external factors alone .
Question 5
Changes in any single part of a human resource management system have a
reverberating effect on all other parts of the system.
A) True
B) False
Correct Answer: A
Rationale: HRM systems are highly interconnected. A change in one area (e.g.,
compensation) will inevitably affect other areas (e.g., recruitment, retention, performance
management) .
Question 6
The functional areas of human resource management, such as staffing and
retention, are the sole responsibility of the HR department.
A) True
B) False
