File: ch01, CHAPTER 1: HRM in a Changing Environment

TRUE/FALSE

1. Multinational corporations became commonplace in the 1920s.

Ans: False
Difficulty: Easy
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

2. According New York Times author, Thomas Friedman, there are three eras of globalization: transportation, communication, and technology.

Ans: True
Difficulty: Medium
Response: See page 6
Ref: THE CHANGING WORLD OF TECHNOLOGY

3. When off the job, an employer cannot legally control an employee’s behavior by prohibiting such things as riding a motorcycle, skydiving, smoking, or drinking alcohol.

Ans: False
Difficulty: Hard
Response: See page 9
Ref: Ethical Issues in HRM – Invasion of Privacy?

4. Most organizations take a ‘melting pot’ approach to diversity.

Ans: False
Difficulty: Medium
Response: See page 10
Ref: WORKFORCE DIVERSITY

5. Many Gen Xers and Gen Yers, while passionate about their careers, will not sacrifice family and leisure for their career.

Ans: True
Difficulty: Medium
Response: See page 13
Ref: What IS a Work/Life Balance?

6. Your text foresees an end to the labor shortage within the next year or two due to population and technology shifts.

Ans: False
Difficulty: Medium
Response: See page 14
Ref: Do We Have a Shortage of Skilled Labor?

7. Part-time employees are those employees who work fewer than 40 hours a week.

Ans: True
Difficulty: Easy
Response: See page 15
Ref: EXHIBIT 1-3 – The Contingent Workforce

8. Quality management is an organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organization.

Ans: True
Difficulty: Medium
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

9. Continuous improvement programs aim at constantly improving the quality of products and services.

Ans: True
Difficulty: Easy
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

10. Work process engineering focuses on radical changes in an organization.

Ans: True
Difficulty: Easy
Response: See page 19
Ref: Work Process Engineering

11. Employee involvement increases when managers make clear, forceful decisions for   subordinates.

Ans: False
Difficulty: Medium
Response: See page 20
Ref: How Organizations Involve Employees

12. Recent corporate scandals have created a lack of trust for management.

Ans: True
Difficulty: Easy
Response: See page 22
Ref: A LOOK AT ETHICS

13. Organizations do not like to use contract workers because their labor cost is unknown and their service is usually poor as compared to full-time employees.

Ans: False
Difficulty: Medium
Response: See page 15
Ref: Exhibit 1 – 3 

14. An employee is defined by the Internal Revenue Service (IRS) as an individual who performs work for you, and you have the right to control or direct only the result of the work and not the means and methods of accomplishing the result.

Ans: False
Difficulty: Hard
Response: See page 17
Ref: Exhibit 1 – 5

15. Mergers are a common way for businesses to enter new or global markets, acquire new technology, or gain a financial advantage by achieving economies of scale.

Ans: True
Difficulty: Medium
Response: See page 22
Ref: Mergers

MATCHING KEY TERMS AND DEFINITIONS

a) Multinational corporations
b) Work process engineering
c) Contingent workforce
d) Baby-boomers
e) Knowledge workers
f) Outsourcing
g) Downsizing
h) Acquisition
i) Core employees
j) Rightsizing
k) Workforce diversity
l) Code of ethics
m) Quality management
n) Kaizen
o) Globalization

16. A process of interaction and integration among the people, companies, and governments of different nations, driven by international trade and investment, accelerated by information technology.

Ans: o
Difficulty: Medium
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

17. Corporations with significant operations in more than one country

Ans: a
Difficulty: Easy
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

18. The varied personal characteristics that make the workforce heterogeneous.

Ans: k
Difficulty: Medium
Response: See page 11
Ref: WORKFORCE DIVERSITY

19. Those individuals born between 1946 and 1965.

Ans: d
Difficulty: Easy
Response: See page 14
Ref: Do We Have a Shortage of Skilled Labor?

20. An activity in an organization aimed at creating greater efficiency by eliminating certain jobs.

Ans: g
Difficulty: Medium
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

21. Linking employee needs to organizational strategy.

Ans: j
Difficulty: Medium
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

22. The part-time, temporary, and contract workers used by organizations to fill peak staffing needs.

Ans: c
Difficulty: Easy
Response: See page 15
Ref: How Do Organizations Balance Labor Supply?

23. Employees whose jobs are designed around acquisition and application of information.

Ans: e
Difficulty: Medium
Response: See page 6
Ref: What Is a Knowledge Worker?

24. Using outside firms for providing necessary products and services.

Ans: f
Difficulty: Easy
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

25. A formal document that states an organization’s primary values and the ethical rules it expects organizational members to follow.

Ans: l
Difficulty: Medium
Response: See page 22
Ref: A LOOK AT ETHICS 

26. The Japanese term for an organization’s commitment to continuous improvement.

Ans: n
Difficulty: Easy
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

27. Radical, quantum change in an organization.

Ans: b
Difficulty: Hard
Response: See page 19
Ref: Work Process Engineering

28. An organization’s full-time employee population.

Ans: i
Difficulty: Medium
Response: See page 16
Ref: Issues Contingent Workers Create for HRM

29. Organizational commitment to continuous process of improvement that expands the definition of customer to include everyone involved in the organization.

Ans: m
Difficulty: Medium
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

30. The transfer of ownership and control of one organization to another.

Ans: h
Difficulty: Easy
Response: See page 21
Ref: Mergers

FILL IN THE BLANKS

31. The fact that organizations are no longer constrained by national borders in producing goods and services illustrates the _____________________ of businesses.

Ans: globalization
Difficulty: Easy
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

32. According to Thomas Friedman, ____________________ was the second era of globalization.

Ans: communication
Difficulty: Medium
Response: See page 6
Ref: THE CHANGING WORLD OF TECHNOLOGY

33. Women and ____________ are the fastest growing segments of the U.S. workforce.

Ans: minorities
Difficulty: Easy
Response: See page 10
Ref: The Workforce Today

34. In times of labor______, good wages and benefits are not enough to hire and keep skilled workers.

Ans: shortages
Difficulty: Medium
Response: See page 15
Ref: DO WE HAVE A SHORTAGE OF SKILLED LABOR?

35. Contacting a pool of qualified applicants is one of the most critical aspects of ____________.

Ans: recruiting
Difficulty: Medium
Response: See page 7
Ref: Recruiting

36.  ___________, a Wyoming statistician, is credited with introducing continuous improvement programs to Japan.

Ans: Deming
Difficulty: Easy
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

37. _________ goes beyond incremental change and requires an organization to face the possibility that what the organization may really need is radical or quantum change.

Ans: Work process engineering
Difficulty: Medium
Response: See page 19
Ref: Work Process Engineering

38. A ___________ may tend to view their work as not critically important to an organization.

Ans: contingent employee
Difficulty: Medium
Response: See page 17
Ref: Issues Contingent Workers Create for HRM

39. Work teams, delegation, and peer influence are all examples of _______________ practices.

Ans: employee involvement
Difficulty: Medium
Response: See page 21
Ref: How Organizations Involve Employees

40. A set of rules or principles that defines right and wrong is commonly referred to as _______.

Ans: ethics
Difficulty: Easy
Response: See page 22
Ref: A LOOK AT ETHICS

MULTIPLE CHOICE

41. Multinational corporations became commonplace in the 
a) 1880s.
b) 1920s
c) 1960s. 
d) 1970s.
e) 1990s

Ans: c
Difficulty: Medium
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

42. Elizabeth is the training manager of a Chicago-based company. She is working on a training program for a subsidiary in Venezuela. The training program focuses on work-related cultural differences in Venezuela and the United States. It is very important for Elizabeth to emphasize that:
a) both Venezuela and the United States are individualistic countries.
b) both Venezuela and the United States are collectivist countries.
c) Venezuela is a collectivist society whereas the United States is an individualistic society.
d) Spanish is the official language in Venezuela whereas English is the official language in the United States.
e) future orientation is highly valued and rewarded both in Venezuela and the United States.

Ans: c
Difficulty: Hard
Response: See page 5
Ref: EXHIBIT 1-1 - Cultural Values

43. Don, a Canadian native, has just been cleared for assignment as a country manager. He went to school in the United States and speaks English, Spanish, and French.  What assignment would work best for him if there is no time for additional training?
a) Mexico.
b) Brazil.
c) Australia.
d) Spain.
e) India.

Ans: c
Difficulty: Medium
Response: See page 5
Ref: EXHIBIT 1.1 – Cultural Values

44. Different countries perceive status differently. For example, status in French society depends to a large extent on education and seniority. Such an emphasis on education and seniority is called:
a) ascribed status
b) prescribed status
c) status differentiation
d) achieved status
e) earned status

Ans: a
Difficulty: Medium
Response: See page 4
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

45. A California-based software company has just started a joint venture with a Japanese company in Tokyo. Doug, a U.S. expatriate, is the new general manager of the joint-venture.   He is very excited about his foreign assignment in Japan. However, Doug has quickly become frustrated with the lack of assertiveness of his Japanese managers and employees. He feels  things are not accomplished fast enough. What should Doug do?
a) Confront his Japanese managers and employees about their lack of assertiveness.
b) Train his Japanese managers and employees on how to become more assertive.
c) Reward his Japanese managers and employees for being assertive.
d) Make an effort to better understand the Japanese culture.
e) Make an effort to speak with his managers and employees in Japanese more often.

Ans: d
Difficulty: Hard
Response: See page 5
Ref: UNDERSTANDING CULTURAL ENVIRONMENTS

46. All of the following statements about knowledge workers are accurate except
a) They currently comprise about 75% of the U. S. workforce.
b) They are expected to be among the fastest growing job sectors in the next decade.
c) Their jobs are designed around the acquisition and application of information.
d) Their job skills need to be continually upgraded
e) They are paid a premium for their skills.

Ans: a
Difficulty: Medium
Response: See page 6
Ref: What Is a Knowledge Worker?

47. One way technology has changed HRM practices is
a) the HR function is simpler.
b) recruiting using the web generates smaller, more focused applicant pools.
c) employee training is often delivered on demand rather than through scheduled courses.
d) electronic resumes take more time to evaluate than paper resumes.
e) employees are happy to be under surveillance by their employers.

Ans: c
Difficulty: Medium
Response: See page 7
Ref: How Technology Affects HRM Practices

48. Diane is employed by a company that monitors employee emails and telephone conversations.  While off the job, Diane’s employer can legally do all of the following except
a) Prevent her from riding a motorcycle.
b) Tell her who to marry.
c) Prevent her from smoking.
d) Not allow her to eat junk food.
e) None of the above.

Ans: b
Difficulty: Medium
Response: See page 9
Ref: Ethical Issues in HRM – Invasion of Privacy

49. Your text mentioned that telephone calls are monitored in which of these organizations?
a) Ford.
b) American Express.
c) IBM.
d) IRS.
e) GE.

Ans: b
Difficulty: Easy
Response: See page 9
Ref: Ethical Issues in HRM – Invasion of Privacy

50. One of the implications of technology in HRM is
 a) workers will need the ability to read and comprehend software and hardware manuals, technical journals, and detailed reports.
 b) employees will need more face time with their superiors.
 c) managers will have to revert to autocratic decision making.
 d) employees are motivated to work a constant 8-hour day.
 e) abuse of email and web surfing is eliminated.

Ans: a
Difficulty: Medium
Response: See page 8
Ref: How Technology Affects HRM Practices

51. All of these changes are causing an increased diversity in the U.S. workforce except
a) fewer younger workers enter the workforce.
b) more baby boomers take early retirement.
c) Federal legislation prohibits employee discrimination. 
d) passage of the Senior Citizens Freedom to Work Act.
e) globalization lowers barriers to immigrants.

Ans: b
Difficulty: Medium
Response: See page 10
Ref: The Workforce Today

52. Which of the following is NOT true regarding workforce diversity in the United States?
a) Differences are increasingly recognized and celebrated in organizations.
b) Minority and female applicants have become the fastest-growing segments of the workforce over the last 30 years.
c) Firms increasingly establish policies that consider various work styles.
d) As globalization becomes more pronounced, so does the importance of managing workforce diversity for U.S. organizations.
e) Accommodating the needs of minority and female employees is less and less a major responsibility for managers.

Ans: e
Difficulty: Medium
Response: See page 10
Ref: The Workforce Today

53. According to the text, communication via a blog has all of the following advantages except:
a) it’s a quick and efficient means of advertising a company’s products.
b) companies can discuss ideas among organizational members.
c) dissatisfied customers and disgruntled employees can write about anything they do not like.
d) companies can provide more believable public relations information.
e) employees can discuss the good things that are happening to them, which personalizes the faceless company to the readers.
 
Ans: c
Difficulty: Medium
Response: See page 10
Ref: WORKPLACE ISSUES – What’s This Thing Called a Blog?

54. A recent survey found that women in the _________ are world leaders with 50 percent holding senior management positions.
a) United States
b) Philippines
c) Canada
d) Brazil
e) Hong Kong
   
Ans: b
Difficulty: Medium
Response: See page 11
Ref: Did you Know? International Diversity

55. Today, the percentage of women managers in the United States is approximately
a) 50%
b) 37%
c) 12%
d) 23%
e) 8%

Ans: d
Difficulty: Medium
Response: See page 11
Ref: Did you Know? International Diversity

56. Which of the following is NOT true regarding work/life issues in the United States?
a) Fewer families have only a single breadwinner.
b) The line between work and non-work has become blurred.
c) Many employees are asked to put in longer hours.
d) It has become easier for married employees to find the time to fulfill non-work commitments.
e) Communication technology allows employees to work at anytime from anywhere.

Ans: d
Difficulty: Medium
Response: See page 14
Ref: What Is a Work/Life Balance?

57. The Bureau of Labor Statistics predicts that by 2014 nearly 2.4 million jobs will go unfilled due to all of these factors except:
a) a major exodus of baby boomers due to retirement.
b) a declining birthrate.
c) potential training redundancy is developing.
d) immigrants do not have skills in the needed areas.
e) the terror attacks of September 11, 2001 may reduce immigration.
 
Ans: c
Difficulty: Medium
Response: See page 14
Ref: Do We Have a Shortage of Skilled Labor?

58. Why are so many organizations exhibiting a trend toward downsizing? 
a) Quality emphasis programs are creating flatter structures and redesigning work to increase efficiency.
b) Greater control reduces flexibility.
c) Quality programs create steeper hierarchies with fewer workers at the lower levels.
d) Organizations are no longer global.
e) Big companies are vanishing.

Ans: a
Difficulty: Medium
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

59. Which statement is the best comparison of downsizing and rightsizing?
a) Rightsizing maintains long term employee commitment.  Downsizing leads to outsourcing.
b) Rightsizing links long term organizational goals to staffing levels.  Downsizing is one of the actions that may be performed.
c) Rightsizing maintains competitive levels of employee surplus.  Downsizing emphasizes quality management.
d) Rightsizing is another term for offshoring.  Downsizing is another term for outsourcing.
e) Rightsizing is a euphemism for a racist workforce.  Downsizing means cutting the number of employees.

Ans: b
Difficulty: Hard
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

60. A large manufacturing firm needs to increase production to meet a seasonal demand.  The demand is not sufficient to justify building new production facilities.  Of the following options, which one provides the greatest flexibility and responsiveness to the changing environment?
a) downsizing.
b) flextime.
c) outsourcing.
d) telecommuting.
e) automating.

Ans: c
Difficulty: Medium
Response: See page 15
Ref: Why Do Organizations Lay Off Employees During Shortages?

61. Technology increasingly impacts HRM practices in the following areas except 
a) recruiting
b) employee selection
c) training and development
d) motivating factory workers
e) motivating knowledge workers

Ans: d
Difficulty: Easy
Response: See pages 7 – 9
Ref: How Technology Affects HRM Practices

62. Work process engineering is:
a) another name for downsizing.
b) another name for rightsizing.
c) a continuous improvement method that radically increase an organization’s productivity.
d) an organizational commitment to incrementally improving the quality of products and services.
e) is a radical change in an organization.

Ans: e
Difficulty: Easy
Response: See page 19
Ref: Work Process Engineering

63. According to the text, one of the biggest challenges facing HR leaders is
a) understanding that workers will need to be recruited in a different way than just advertising a position and then selecting a candidate.
b) creating an environment that balances core and contingency employees.
c) training immigrant workers who do not have the skill set for the available jobs.
d) ensuring management treats all of their employees with respect.
e) rewriting HR policy manuals to satisfy the new generation of workers.

Ans: a
Difficulty: Medium
Response: See page 13
Ref: Did You Know – Working at the Future of HRM

64. HRM typically provides which of these types of training to temporary employees?
a) Orientation.
b) Retirement planning.
c) Benefits options.
d) Career management.
e) Technology certification.

Ans: a
Difficulty: Medium
Response: See pages 16 – 17
Ref: Issues Contingent Workers Create for HRM

65. An amusement park needs customer representatives during the summer season. The best staffing option for this amusement park is to use:
a) part-time employees.
b) core employees.
c) contract workers.
d) independent contractors.
e) recent college graduates

Ans: a
Difficulty: Easy
Response: See page 15
Ref: EXHIBIT 1-3 – The Contingent Workforce

66. Which of the following is not a component of continuous improvement?
a) Intense focus on the customer.
b) Improvement in the quality of everything the organization does.      
c) Intense focus on individual performance.
d) Accurate measurement.
e) Empowerment of employees.

Ans: c
Difficulty: Medium
Response: See page 18
Ref: EXHIBIT 1-6 – Components of Continuous Improvement

67. Which of the following quality experts has been credited for helping Japanese
firms improve their productivity following World War II?
a) W. Edwards Deming.
b) Robert Fleming.
c) Albert Duran.
d) Joseph Juran. 
e) Frederick Taylor.

Ans: a
Difficulty: Easy
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

68. Which of the following is a component of continuous improvement?
a) Outsourcing of customer needs.
b) Eliminating perfectionist tendencies to constantly be better than “very good.”
c) Refocusing quality on only the production process.
d) Replacing statistical techniques with benchmark roots for problem solving.      
e) Empowering employees.

Ans: e
Difficulty: Medium
Response: See page 18
Ref: EXHIBIT 1-6 – Components of Continuous Improvement

69. According to W. Edward Deming, a well-managed organization is one in which:
a) statistical control increases variability in production processes.
b) statistical control reduces variability in production processes and also results in uniform quality and predictable level of production.
c) most employees like their job.
d) employees are paid at least the market wage rate.
e) All of the above.

Ans: b
Difficulty: Hard
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

70. A Kaizen is the Japanese term for:
a) a radical change in an organization.
b) work process reengineering.
c) a firm’s commitment to continuous improvement.
d) empowering employees.
e) intense focus on the customer.

Ans: c
Difficulty: Easy
Response: See page 18
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

71. Which of the following statements best compares continuous improvement and work process engineering?
a) Continuous improvement asks, “How can we do it better?”  Work process improvement asks, “Are we doing the right thing?”
b) Continuous improvement has increased training requirements.  Work process engineering has increased security requirements.
c) Continuous improvement is effective in turbulent environments.  Work process engineering is effective in stable organizational settings.
d) Continuous improvement is used in the service sector.  Work process engineering is used in the manufacturing sector.
e) Continuous improvement decreases the number of employees in an organization.  Work process engineering increases the number of employees in an organization.

Ans: a
Difficulty: Hard
Response: See pages 18 – 19
Ref: CONTINUOUS IMPROVEMENT PROGRAMS

72. Which type of organizational change may provide a false sense of security?
a) Continuous improvement methods.
b) Work process engineering.
c) Horizontal alliances.
d) Status quo.
e) Lateral combinations.

Ans: a
Difficulty: Medium
Response: See page 19
Ref: Work Process Engineering

73. Suppose you are the HR manager of an organization that has just adopted the philosophy of continuous improvement.  You can support improvement programs in all of these ways except
a) Provide clear and extensive communication regarding the organizational change.
b) Help employees overcome barriers to change.
c) Explain new performance expectations.
d) Design jobs very narrowly to ensure that employees can specialize on a few tasks.
e) Train employees to adapt to the new work arrangement

Ans: d
Difficulty: Hard
Response: See page 19
Ref: How HRM Can Support Improvement Programs

74. Which of the following provides the best description of work process engineering?
a) A slow process of incremental change.
b) An alternative to rapid technology transfer.
c) An alternative to retraining a workforce.
d) A focus on the whole work process.
e) A safeguard for traditional work attitudes.

Ans: d
Difficulty: Medium
Response: See page 19
Ref: Work Process Engineering

75. A major drawback of focusing on continuous improvements is that it:
a) may prevent employers from making needed radical changes.
b) works well for Japanese companies but not for U.S. companies.
c) makes it difficult to discharge low-performing employees.
d) usually requires the layoff of employees.
e) requires the use of complicated statistical techniques.

Ans: a
Difficulty: Medium
Response: See page 19
Ref: Work Process Engineering

76. Ivan is the vice-president of human resources for a large manufacturing organization involved in work process engineering.  What kinds of training needs should he anticipate?
a) New work procedures.
b) Technology enhancements.
c) Decision making.
d) Working in teams.
e) All of the above.

Ans: e
Difficulty: Medium
Response: See page 19
Ref: How HRM Assists in Work Process Engineering

77. All of the following types of employees are considered contingent employees except
a) part-time employees
b) contract workers
c) full-time temporary workers
d) full-time long-term employees
e) freelancers

Ans: d
Difficulty: Easy
Response: See page 15
Ref: EXHIBIT 1-3 – The Contingent Workforce

78. Maurice is suing an organization, claiming that because he is an employee and not an independent contractor, the organization should have withheld taxes for him. All of these factors could be used to support his claim except
a) He is allowed great flexibility in scheduling his work time.                                    
b) He received training on company policies and procedures.
c) He receives no insurance or pension benefits.                              
d) He is paid market rate for his services.     
e) He is reimbursed for travel.

Ans: c
Difficulty: Hard
Response: See page 17
Ref: EXHIBIT 1-5 – Employee vs. Independent Contractor

79. Ruxandra Lopez is the vice-president for human resources of a major manufacturing company.  She is thinking of increasing the proportion of contingent workers in the different plants. As a consultant, you advise Ruxandra that a major disadvantage associated with contingent workers is that:
a) contingent workers are entitled to retirement benefits.
b) contingent employees complain more than core employees.
c) contingent workers may be less loyal and committed than core employees.
d) contingent workers do not require extensive skill training before they become fully productive to an organization.
e) contingent employees are usually less reliable than core employees.

Ans: c
Difficulty: Medium
Response: See pages16 – 18
Ref: Issues Contingent Workers Create for HRM

80.  HRM is often involved in all of the following for their contingent workers except
a) Motivation.
b) Locating temporary workers.
c) Scheduling options to meet workers’ needs.
d) Conflict resolution between contingent and core employees.
e) Negotiating health care benefits.

Ans: e
Difficulty: Medium
Response: See pages 16 – 17
Ref: Issues Contingent Workers Create for HRM

81. HRM provides support in all of these areas to increase employee involvement except
a) Delegation.
b) Retirement planning.
c) Work teams.
d) Goal setting.
e) Participative management.

Ans: b
Difficulty: Medium
Response: See page 20
Ref: EMPLOYEE INVOLVEMENT

82. Many of today’s companies emphasize:
a) clear lines of authority.
b) teamwork.
c) bureaucratic organizational structures.  
d) a hierarchical chain of command.
e) a centralized decision-making process. 

Ans: b
Difficulty: Medium
Response: See page 20
Ref: How Organizations Involve Employees

83. How does group decision making empower a workforce?
a) Employees have less input to work processes.
b) Isolated workers are prone to fewer work conflicts.
c) Employees have greater access to needed information.
d) There is less stress due to new job skill requirements.
e) Employees have the benefit of tried-and-true past decisions.

Ans: c 
Difficulty: Medium
Response: See page 20
Ref: How Organizations Involve Employees

84. Which of the following is the best illustration of a work team?
a) A one-man band.          
b) A football team that has separate players who specialize in offense, defense, and kickoff.         
c) A symphony orchestra with special sections for wind, percussion, and strings
d) A surgical team of 3 nurses and 3 surgeons.
e) Airline employees who may handle baggage today, check in customers tomorrow, or serve on the information desk.

Ans: e
Difficulty: Hard
Response: See page 21
Ref: How Organizations Involve Employees

85. Useful employee involvement requires:
a) demonstrated leadership and supportive management.
b) increased compensation, rather than extensive training.
c) extensive training and increased compensation.
d) clear decision making responsibility by upper management.
e) greater precision in job descriptions.

Ans: a
Difficulty: Medium
Response: See page 20
Ref: Employee Involvement Implications for HRM

86. Which of the following is not true regarding the employee involvement for HRM?
a) Employees are expected to work in teams.
b) Employees are expected to delegate.
c) Employees are expected to withhold strategic information from co-workers.
d) Employees need to be trained in all aspects of the job.
e) Employees need training in interpersonal skills.

Ans: c
Difficulty: Medium
Response: See page 21
Ref: Employee Involvement Implications for HRM

87. Ethics refers to:
a) a set of rules or principles that defines what is legal and what is illegal.
b) a set of rules or principles that defines right and wrong conduct.
c) a situation in which decisions are made based on religious rules or principles
d) a situation in which individuals make decisions based primarily on their best interest.
e) a situation in which individuals act make decisions based primarily on the best interest of the most economically disadvantaged individuals

Ans: b
Difficulty: Easy
Response: See page 22
Ref: A LOOK AT ETHICS

88. People who lack a strong moral sense are much less likely to do wrong if:
a) the company has a code of ethics.
b) they feel constrained by rules and strong cultural norms that discourage unethical behaviors.
c) they attend a business ethics seminar.
d) the company monitors their emails.
e) the employer performs an integrity test during the selection process
  
Ans: b
Difficulty: Hard
Response: See page 22
Ref: A LOOK AT ETHICS

89. Which of the following is NOT true regarding ethics in organizations?
a) In recent years, ethics has become a major issue in U.S. organizations owing to corporate scandals such as Enron or WorldCom.
b) Corporate scandals such as Enron and WorldCom have created a lack of trust in management.
c) Companies that were in corporate scandals did not have codes of ethics. 
d) Codes of ethics are increasingly popular in U.S. organizations.
e) A mission statement details an organization’s primary values and the ethical rules it expects managers and employees to follow.          .

Ans: e
Difficulty: Medium
Response: See page 22
Ref: A LOOK AT ETHICS