1. As the term is used in the field of human resource management, “human capital” is the
A. wages, benefits, and other costs incurred in support of HR functions in an organization.
B. cash, equipment, technology, and facilities that an organization uses.
C. tax-deferred value of an employee’s 401(k) plan.
D. total budget allocated to the HR department in an organization.
E. organization’s employees, which add economic value to the company.
2. What is the process used by organizations to seek candidates for employment?
D. work analysis
E. job design
3. Identify the government agency that tracks changes in the composition of the U.S. work
force and forecasts various employment trends.
A. the Bureau of Labor Statistics
B. the Occupational Resources Administration
C. the U.S. Census Bureau
D. the Bureau of Economic Analysis
E. the National Workforce Statistics Division
4. In industries that require employees trained in high-tech skills, employers lobby the government for immigration laws that allow a greater supply of foreign-born workers. What is the main reason that these industries identify to justify their position?
A. There is a lack of adequate technology in the United States.
B. Undocumented immigrants work harder than U.S. citizens.
C. Qualified technical workers are scarce in the United States.
D. U.S workers do not want this physically demanding work.
E. The size of the U.S. workforce is declining.
5. XYZ Inc., a manufacturer of children’s clothing, ships its products to Acme Fulfillment Co., a company that specializes in packaging and labeling other companies’ products, for all packaging and labeling activities. Which HRM practice is XYZ employing?
6. Which of the following refers to the efforts of an organization’s efforts to generate opportunities to hire or promote members of group that has experienced historic discrimination?
A. affirmative action
B. disparate impact
C. reasonable accommodation
D. reverse discrimination
E. adverse impact
7. The Americans with Disabilities Act:
A. permits an employer to cut down on fringe benefits of individuals with disabilities.
B. permits discrimination in areas such as layoffs and leaves.
C. goes beyond prohibiting discrimination to require that employers take steps to
accommodate individuals covered under the legislation.
D. classifies a person who needs ordinary eyeglasses or contact lenses to perform each
major life activity with little or no difficulty as disabled.
E. is used to protect individuals with conditions such as obesity and substance abuse.
8. Differing conduct toward individuals, where the differences are clearly based on the
individuals’ race, color, religion, sex, national origin, age, or disability status is termed as _____.
A. sexual discrimination
B. affirmative action
C. disparate treatment
D. reasonable accommodation
E. reverse discrimination
9. Identify the type of labor relations case where most of the debate focuses on discriminatory consequences and the plaintiff need not prove an employer’s intent to discriminate.
A. disparate impact
B. disparate treatment
C. reasonable accommodation
D. affirmative action
E. corrective action
10. Boston Electronics Inc. includes a statement prohibiting sexual harassment in its onboarding materials and established a process by which employees could submit complaints. After receiving complaints about a salesperson, the company took immediate action to address the issue. However, over time, several more complaints have been filed regarding several other employees. What else should Boston Electronics do to keep minimize complaints of sexual harassment?
A. modify the complaint procedure so employees don’t overuse it
B. wait to investigate the new complaints
C. train all employees to identify inappropriate workplace behavior
D. file a complaint with the Equal Employment Opportunity Commission
E. broaden the policy to include harassment of men, not just women
11. Which of the following is true of telework arrangements?
A. They are the most difficult to implement for people in managerial or professional jobs. B. They are the easiest to set up for manufacturing workers. C. They support the strategy of corporate social responsibility by reducing an employee’s
need to commute using a vehicle. D. They are limited to employees who are disabled or need to be available for children or
elderly relatives. E. They are only provided for employees who hold key strategic positions in a
12. Allen Business Solutions develops software applications for other companies. After the company moved to a new location, many employees complained about the lack of comfortable seating arrangements. In response, the HR department advises management to invest in studying the ergonomics of the new office space. Which of the following would serve as an incentive for the company to invest in the study of ergonomics?
A. Ergonomics empowers employees by giving them decision-making authority. B. Ergonomics reduces the physical strain on employees performing a job. C. Ergonomics reduces the number of reporting relationships in a job. D. Ergonomics enlarges jobs by moving employees among different jobs.
E. Ergonomics increases a job’s mental demands.
13. In the context of human resource planning, the primary goal of forecasting is to
A. predict labor shortages or surpluses in specific areas of an organization. B. determine labor supply. C. set goals for hiring employees. D. focus attention on a problem and provide a basis for measuring an organization’s
E. eliminate large numbers of personnel with the goal of enhancing an organization’s
14. Chelsea Brewing Co. is a recently founded small company that employs 18 workers. During the winter season, demand dropped and the owner realized that there wasn’t enough work left for all the remaining workers, but he doesn’t want to be left shorthanded when business picks up again in the spring. How can the company best deal with the current labor surplus?
A. an early-retirement program
B. natural attrition C. a hiring freeze
E. work sharing
15. A small company that manufactures special-order wood furniture has kept its employees
busy on a 40-hours-a-week schedule for the past two years. The company just received a large contract from a Japanese company that is opening offices in the area. The Japanese company has given a month’s time for completion of its order. To complete the contract in the required one month, the furniture company needs additional skilled labor on short notice. Which of the following strategies might the company use if it wants to avoid this short-term labor shortage while finding a simple and cost-effective solution?
A. retrained transfers
B. overtime C. technological innovation
D. new external hires
E. turnover reductions
16. What is the main advantage of relying on internal recruitment sources?
A. Internal candidates are likely to promote diversity in terms of race and sex. B. Internal applicants minimize the impact of political considerations in the hiring decision.
C. Internal sources are generally cheaper and faster than other means. D. Internal sources expose an organization to new ideas or new ways of doing business.
E. Current employees are well suited to recruit people for specialized upper-level positions.
17. Which of the following actions during the selection process would be illegal under the equal employment opportunity laws?
A. asking candidates whether they are able to perform the essential functions of a job
B. asking all candidates whether they have ever worked under a different name C. asking candidates how close they are to retirement age
D. asking all candidates which schools they have attended
E. asking candidates whether they will need any reasonable accommodation to complete
the selection process
18. Alexander is being interviewed for the position of an entry-level financial analyst at a well-
known asset management company. Alexander is asked questions about the current state of the U.S. stock market, the current net worth of certain financial firms, and concepts such as IPOs and mergers from a set of predetermined questions that the interviewer has prepared. This is an example of a(n) _____.
A. structured interview B. in-basket interview
C. work-sample interview D. exit interview E. nondirective interview
19. Organization analysis looks at training needs in light of the
A. readiness of employees for training.
B. employee’s strategy toward achieving organizational goals.
C. management’s support for training activities.
D. monetary incentives the management has promised its employees.
E. severance package deal for a particular batch of employees.
20. A(n) _____ is a training method in which participants learn concepts and then apply them by simulating the behaviors involved and analyzing the activity, connecting it with real-life situations.
B. experiential program
D. case study
E. audiovisual training program
21. For incentive pay to motivate employees to contribute to the organization’s success, the pay
plans must be well designed. Which of the following statements describes a characteristic of a well-designed plan?
A. Performance measures are to be linked to the individual’s goals.
B. Employees are given unattainable performance standards.
C. Employees value the rewards or incentives that are being offered.
D. Employees are given limited resources to meet their goals.
E. The pay plan takes into account that employees will accept all goals irrespective of their
22. Which of the following is a disadvantage of a merit pay system?
A. It does not relate the rewards to economic conditions.
B. It cannot be used effectively with performance appraisals
C. Comparative pay is not considered in its evaluation.
D. It does not provide rewards for performance in all the dimensions measured in the
organization’s performance management system.
E. It can quickly become expensive for the company.
23. In which of the following situations will workers become eligible for unemployment benefits?
A. when they have worked only for a few days
B. when they are out of work because they are sick
C. when they are discharged because of willful misconduct D. when they are actively seeking work
E. when they are out of work because of a labor dispute
24. What is the legal requirement regarding paid vacation under US law?
A. Paid vacation in the United States must take place on specified days in addition to
B. In the United States, employers must give the amount of paid vacation that makes
C. In the United States, employers must give employees 10 paid vacation days each year. D. U.S. law requires that new employees receive 25 or 30 days off.
E. U.S. law lets employers decide on paid time off; there is no minimum.
25. How do cafeteria-style plans increase costs for employers?
A. Employers pay much higher premiums for an HMO than a preferred health care plan.
B. Employers are required to pay higher insurance premiums for laid-off workers. C. Contributions to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most.
E. Employers bear the cost of providing employees with benefits they do not value.