Question 1. Human resource management is

1. Human resource management is
a. supervising, monitoring, controlling, and disciplining employees in order to achieve
organizational goals.
b. the designing of organizational systems to ensure that human talent is used effectively to
accomplish organizational goals.
c. the use and coordination of human capital to ensure the profitability and survival of the
organization.
d. the design of the organization and its systems in order to achieve the goals of the
organization.
2. HR metrics must be linked to
a. statistical analyses.
b. industry outcomes.
c. business performance.
d. employee satisfaction.
3. All of the following are types of organizational assets EXCEPT
a. social.
b. human.
c. financial.
d. intangible.
4. Which of the following statements is TRUE?
a. Because of the higher quality of Western European education, the return on human capital
for European firms is higher than the return on human capital for U.S. firms.
b. Companies that spend more than 60% of total operating costs on employee costs have
poor returns on investment in their human capital.
c. U.S. firms spend nearly twice as much as European firms on employee salaries and
benefits, but U.S. firms experience higher levels of return on investment for their human
capital.
d. Human capital is the collective value of capabilities, knowledge, skills, life experiences
and motivation of an organizational workforce. Being intangible, it is difficult to measure
the effect of human capital on shareholder value.
5. In a university, the assets that allow all the other assets of the school to be used to offer educational
services to its students are the university’s
a. financial endowment and income.
b. physical plant such as libraries, laboratories and technological learning facilities.
c. administrators, professors, and other employees.
d. intangible assets such as its unique operating processes and specialized research
capabilities.
6. The Chief Financial Officer of McGill Tubing wants to learn the contribution of McGill’s workforce
toward creating value for shareholders. An analysis which would provide this information is the
calculation of
a. the human capital revenue stream.
b. marginal revenue generated per employee.
c. return on human capital investment.
d. profit per employee.
7. Through ____ HR management provides the organization with a sufficient supply of qualified
individuals to fill the jobs in the organization.
a. staffing
b. affirmative action
c. talent management
d. performance management
8. Tyrone Toys is intensely focused on reducing labor costs. During the executive committee’s
discussion of closing its unionized plant in Ohio and opening a non-union plant in Mississippi, the
executive vice president of HR suggests that the committee get legal advice in case Tyrone Toys
would be subject to lawsuits by the union. This interaction suggests that
a. HR is not a strategic partner in this firm because the EVP of HR is reacting to another
committee member’s suggestion, not proactively making his own suggestion.
b. HR is not a strategic partner in the firm because any suggestion about closing a plant
should properly come from HR, not another executive.
c. HR is a strategic partner in the firm because in this firm the EVP of HR is allowed to sit in
on important strategic meetings.
d. HR is a strategic partner in the firm because the EVP of HR a permanent member of the
executive committee.
9. Henry, the production manager for a chemical plant, resents what he feels are unwarranted intrusions
into his territory by HR managers. Henry feels that his relationships with his employees are strong and
supportive, and that HR initiatives generally cause unnecessary trouble and complications.
a. Henry is correct, because the HR function is a support and staff function and should not
intrude on day-to-day management functions.
b. HR managers have the sole responsibility for the proper implementation of company
policy regarding employees. Henry is subverting this process.
c. Henry is probably committing major violations of company policy and wants to keep this
secret from HR management.
d. Henry would be surprised to learn that every manager, including him, is an HR manager.
10. When the human resources function creates a unique capability in a firm that creates high value and
differentiates the organization from its competition, human resources is a/an ____ for the firm.
a. tangible asset
b. core competency
c. critical capability
d. capital contributor
11. As the top HR manager of a medium-sized hospitality business in New Orleans that is heavily
dependent on U.S. and international tourism, you are deeply involved in rebuilding the company’s
strength in the Hurricane Katrina recovery. You need to monitor all of the following factors EXCEPT
a. the employee and labor relations factor of whether unions are targeting hospitality workers
for organization.
b. the global factor of the value of the yen and the euro in relation to the dollar.
c. the legal factor of the enforcement of the Foreign Corrupt Practices Act.
d. the environmental factor of the effect of global warming on hurricane patterns.
12. ____ identifies paths and activities for individual employees as they develop within the organization.
a. Staffing
b. HR development

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