Chapter 1. Human Resource Management: Gaining a Competitive Advantage. True/False Questions

Transcription

1 Chapter 1 Human Resource Management: Gaining a Competitive Advantage True/False Questions 1-1. The human resource function at Texas Instruments is an equal partner with line management and the financial area. Ans: T Page: Effective human resource management practices contribute to customer satisfaction and reputation in the business community. Ans: T Page: 4 LO The percentage of time human resource departments are devoting to administrative roles is increasing. Ans: F Page Advances in technology has allowed HR services to be offered more on a self-service basis than in the past. Ans: T Page Many administrative activities of HR, such as benefits administration and training, have been outsourced. Ans: T 1 27

2 Page The roles and skills related to HR administration and control are decreasing due to technological advances. Ans: T Page The single biggest challenge of HR managers is to focus their efforts on improving the organization s current operational performance. Ans: F Page Human resource management is seen by managers as the most important way for companies to gain a competitive advantage over both domestic and foreign competitors. Ans: T Page The most admired and successful companies generally feel that people are their most important asset. Ans: T Page 9 LO Starbucks is an attractive employer in China because of its relaxed company culture and 2 27

3 opportunities for advancement. Ans: T Page 10 LO The relative decline of the U.S. in the world economy trade is due largely to the inefficiencies of our corporations. Ans: F Page 10 LO U.S. expatriate employees have a higher success rate in their foreign assignments than those from Europe or Japan. Ans: F Page Traditionally, the United States has had a get it right the first time approach to quality. Ans: F Page 14 LO ISO 9000 certification is only being used as a standard for companies who want to be competitive in the European Community. Ans: F Page

4 1-15. Stakeholders include only stockholders and employees. Ans: F Page 11 LO Companies that are among the highest scoring applicants for the Malcolm Baldrige National Quality Award typically realized positive benefits almost immediately after changing their practices. Ans: F Page Employment demand is expected to be greatest in occupations requiring the most education. Ans: T Page Most new jobs created in the next decade will require higher levels of reading and writing shills. Ans: T Page Projections by the Bureau of Labor Statistics suggest the most rapid rate of growth is among jobs requiring technical skills. Ans: F 4 27

5 Page The contingent work force, which includes temporary, part-time, and self-employed workers, is shrinking. Ans: F Page HR practices should be aligned with each other and consistent with the system to have a positive effect on company performance. Ans: T Page Work teams frequently plan their own work schedules and select new team members. Ans: T Page 26 LO Informal linking refers to the managerial role of ensuring adequate resources are available to perform the work. Ans: F Difficulty: H Page 27 LO6 5 27

6 1-24. A human resource information system (HRIS) is helpful in acquiring and storing data but does not help in the analysis of data. Ans: F Page 28 LO Human resource management practices have not traditionally been seen as providing economic value to the company. Ans: T Page 31 LO7 Multiple Choice What is not a business priority of the HR function at Texas Instruments? a. employee development. b. recruiting. c. compensation. d. diversity and ethics. Page The value of a product is determined by its a. purchase price. b. wholesale (or book) price less production expenses. c. quality and fit to customer needs. 6 27

7 d. quality and price relative to competitor s quality and price. Page Stakeholders include all of the following except a. the community. b. competitors. c. employees. d. customers. Ans: b Page Strategic HR Management includes all but the following: a. financial planning. b training and development. c. performance management. d. recruiting talent. Ans: a Page The HR area that has increased the most in time spent by HR professionals is a. maintaining records. b. providing services. c. strategic business partner. d. payroll administration. 7 27

8 Page What statement is true regarding HR roles and skills? a. analytical skills are needed to evaluate the effectiveness of HR practices. b. focus should be on current operations. c. benefits and payroll administration is an increasing responsibility. d. none of the above are true. Ans: a Page The balanced scorecard a. is similar to most measures of company performance. b. presents a view of company performance from the perspective of company stakeholders. c. is a standardized instrument of company performance. d. should not be applied to HR practices. Ans: b Page 12 LO The balanced scorecard presents a view of company performance from the perspective of a. customers. b. employees. c. both employees and customers. d. employees, customers and shareholders. Page 12 LO Successful Total Quality Management organizations include all but one of the following HRM practices 8 27

9 a. cross training emphasis. b. merit based programs. c. team-based reward systems. d. empowerment. Ans: b Page The fastest growing segment of the labor force is a. ages b. ages c. ages d. ages Page In the next decade all of the following competitive challenges that companies face will increase the importance of human resource management except a. global challenge. b. meeting stakeholders needs c. quality challenge. d. high-performance work system challenge. Page 8 LO Traditional organization model includes all of the following HR practices except a. multidirectional communication. b. emphasis on efficiency. c. specific job description. 9 27

10 d. vertical career paths. Ans: a Page Quality is defined as a. the extent to which a product or service satisfies the standards established by the company s quality department. b. the extent to which a product or service satisfies standards established by the company s management team. c. the extent to which a product or service satisfies standards established by the company s engineering function. d. the extent to which a product or service satisfies the customer s requirements. Page Traditionally, U.S. companies have attempted to ensure quality by a. designing quality into a product as it is produced. b. motivating employees to produce quality products through the use of bonus plans. c. inspecting products following their production. d. measuring the number sold divided by the number of customer returns. Page Deming s approach to quality emphasizes a. making the product or service conform to engineering standards. b. reducing variability in the product or service. c. ensuring that a product or service meets the customers needs. d. tying pay to employees total output less rejects

11 Page Distributed work is a. work given to someone else to perform. b. work done anywhere that a person can connect using communications technology. c. largely done by part-time workers. d. work given to a group of people to perform. Ans: b Page Which of the following is not one of the 6 basic principles of Total Quality Management shared by the experts of quality? a. Feedback b. Focus on process as well as results c. Customer focus d. Conformance to engineering standards Difficulty: H Page All of the following HR practices support high-performance work systems except a. employees participate in selection process. b. jobs are designed to use a variety of skills. c. employee rewards are related to company performance. d. individuals tend to work separately

12 Page 29 LO In the Baldrige Award criteria, human resource management receives a. more points than does any other examination category. b. fewer points than does any other examination category. c. more points than does any other examination category except quality of operational results and leadership. d. more points than does any other examination category except customer/market focus. Page How senior executives create and sustain a visible quality value system to guide activities toward quality is the definition for which Malcolm Baldrige National Quality Award criterion? a. Senior management role b. Quality human resource development c. Information and analysis d. Leadership Page Which of the following is not part of the process for being eligible for the Malcolm Baldrige National Quality Award? a. Companies must provide information about the company products, markets, and locations. b. A board of examiners visits the company. c. The company receives feedback summarizing strengths and weaknesses. d. The company must demonstrate that quality improved earnings per share. d M pp

13 1-47. Many companies use the Baldrige application process a. to prepare their operations for ISO 9000 certification. b. to benchmark their operations against Baldrige award winners. c. as a guide for managers to evaluate their own operations. d. to set up a strict set of rules the company must follow. Page Research evaluating the impact of the Baldrige Award on the quality of goods and services produced by U.S. firms who applied for the award suggests that a. the award had no effect on the quality of goods and services. b. surprisingly, the award resulted in poorer quality of goods and services. c. the award resulted in higher quality goods and services only for companies in the service sector. d. the award resulted in better employee relations, increased productivity, customer satisfaction, and market share. Page Which of the following statements is true about the composition of the U.S. labor force in the next decade? a. Labor force growth is greater than at any other time in U.S. history. b. The largest proportion of the labor force is expected to be in the years age group. c. There will be fewer white males than minorities and women in the labor force. d. The number of baby boom workers will increase faster than any other age group. Page

14 1-50. What percent of new immigrant workers will be Hispanic and Asian by the year 2005? a. 90% b. 70% c. 50% d. 30% Ans: b Page In the next 10 years, the largest growing occupations will be a. computer operators. b. health and service related. c. farmers d. machinists. Ans: b Page In the next 10 years the occupations with the greatest losses in jobs will be a. truck drivers. b. nurses aides. c. teachers d. bookkeepers Page Lack of skilled employees affects small businesses most because 14 27

15 a. they have to work harder to recruit skilled employees. b. hiring unskilled employees increases turnover. c. they can only attract high-skilled employees by offering high salaries. d. they cannot afford to invest in training. Page Over the next 15 years, persons with only fourth to eighth grade literacy levels may make up as much as a. 31 to 40 percent of the work force. b. 41 to 50 percent of the work force. c. 51 to 60 percent of the work force. d. 61 to 70 percent of the work force. Page A joint research project between the American Society for Training and Development and the U.S. Department of Labor identified several skills that employers believe are basic to success in the workplace. The skill that served as the foundation for the other necessary skills was a. communication. b. knowing how to learn. c. writing. d. computer knowledge. Ans: b Page Companies that use contingent employees from temporary agencies and contract firms a. are more likely to experience financial problems than those that do not

16 b. are likely to experience a reduction in the administrative and financial burden associated with human resource management. c. are likely to experience a lower level of efficiency than if they had used company employees. d. are likely to experience loyalty and motivation from these employees. Ans: b Page The major dimensions of HRM practices that contribute to organization competitiveness include all of the following except a. managing the human resource environment b. acquiring and preparing human resources. c. assessing work and work outcomes. d. compensating human resources. Page 32 LO Regardless of their background, all employees will likely value a. the ability to challenge the status quo. b. more simplistic tasks needing fewer necessary skills. c. managerial positions. d. work that leads to self-fulfillment. Page How diversity issues are managed in companies has implications for all the following except a. knowing how to learn. b. creativity. c. retaining good employees

17 d. problem solving. Ans: a Page Managing cultural diversity involves a. enforcing EEO violators. b. creating separate career tracks for employees with families. c. establishing a strong affirmative action policy. d. creating a workplace where employee differences are accepted and valued. Page Managing cultural diversity can provide a competitive advantage by a. decreasing the number of available women and minorities in the company s labor pool. b. helping women and minorities understand they must conform to organizational norms and expectations. c. helping companies produce better decisions through including all employees perspectives and analysis. d. identifying product markets on which the company should focus. Page The argument that suggests that companies develop favorable reputations as prospective employers for women and minorities and therefore those that manage diversity best will get the best personnel is known as the a. equal employment opportunity argument. b. creativity argument. c. cost argument

18 d. resource-acquisition argument. Difficulty: H Page To successfully manage a diverse work force, managers need to develop a. communications and coaching skills. b. analytical and financial skills. c. persuasion and planning skills. d. networking and language skills. Ans: a Page What areas of legislation will continue to have the most influence on HRM practices in the next decade? a. Equal employment opportunity, safety and health, pay and benefits, privacy, and job security b. Executive compensation, pay and benefits, workers compensation, safety and health, and job security c. Product liability, workers compensation, equal employment opportunity, safety and health, and labor relations d. Equal employment opportunity, patent infringement, workers compensation, safety and health, and job security Ans: a Page Litigation involving job security will have a major influence on human resource management practices, because a. work rules, recruitment practices, and performance evaluation systems might falsely communicate lifetime employment agreements that the company does not intend to honor during layoffs or plant 18 27

19 closings. b. adjustments of test scores to meet affirmative action requirements are now illegal. c. employees now bear the burden of proof in discrimination cases. d. compensation awards for discrimination claims have increased. Ans: a Page Which of the following is an ethical principle of a successful company? a. Managers assume all responsibility for the actions of the company. b. It has a strong quality orientation. c. Customer, client, and vendor relationships emphasize mutual benefits. d. It does not produce products that can be used for violent purposes. Page Which of the following is not a standard that human resource managers must satisfy for practices to be ethical? a. Managers must treat employees as family. b. Human resource practices must result in the greatest good for the largest number of people. c. Employment practices must respect basic human rights of privacy, due process, and free speech. d. Managers must treat employees and customers equitably and fairly. Ans: a Page It is anticipated that technological advances will result in a. employees being given less responsibility for work and possessing fewer skills. b. job combinations that result in a flatter organization. c. managers roles in planning, coordination, and controlling work increasing

20 d. the increased use of human resource information bases. Ans: b Difficulty: H Page 26 LO Customization of products typically requires more of all the following except a. ability to listen and communicate with customers. b. negotiation skills. c. coordination and fine-motor skills. d. job specific production knowledge. Difficulty: H Page 26 LO Which of the following is not typically true of work teams? a. They are used to increase employee responsibility and control. b. They perform inspection and quality control activities. c. They frequently select new team members and plan work schedules. d. They are especially effective when headed by managers skilled in controlling, planning, and coordinating activities. Page 26 LO Empowerment is defined as a. the movement of women and minorities into managerial positions. b. giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. c. leading employees by the strength of one s charisma. d. the act of continually learning and improving one s skills and abilities

21 Ans: b Page 27 LO New organizational structures emphasize a. efficiency, decision making by managers, and the flow of information from top to bottom of the organization. b. a core set of values, elimination of boundaries between managers and employees and organizational functions, and employees who have immediate access to information used for decision making. c. a core set of values, defining clear boundaries between managers and employees and the functional areas, and a constant state of learning. d. internal linking, external linking, diversification, and a core set of values. Difficulty: H Page 27 LO Which of the following is false about the high-involvement, adaptive organizational structure? a. Employees are in a constant state of learning and performance improvement. b. Employees are free to move wherever they are needed in a company. c. Line employees are trained to specialize in one job in order to maximize efficiency. d. Previously established boundaries between managers, employees, customers, and vendors are abandoned. Difficulty: H Page 27 LO Which of the following is not a Competitive Challenge that HR practices can help companies meet? a. Global Challenge b. Economic Challenge c. High Performance Work Challenge d. Stakeholder Challenge 21 27

22 Ans: b Difficulty: H Page Managing the human resource environment involves a. determining employees productivity and the quality of their work. b. linking HRM practices to company business objectives. c. recruiting employees and placing them in jobs that best use their skills. d. identifying employees work interests, goals, and values, and other career issues. Ans: b Difficulty: H Page 32 LO6 Essay Questions Discuss the Malcolm Baldrige National Quality Award including the application process, the criteria used for evaluation, and the disadvantages that some associate with the award. Ans: Established in 1987 by President Reagan to 1. Promote quality awareness 2. Recognize quality achievements of U.S. companies 3. Publicize successful quality strategies Application process consists of 1. Company fills out detailed application with basic information about the company location, markets and products as well as in-depth presentation of how the company addresses specific criteria related to quality improvement 2. Board of examiners evaluates the application and conducts site visits. All applicants receive written feedback summarizing company strengths and needs for improvements Two awards given per year in each of three categories: Manufacturing, Service, and Small Businesses Criteria used 1. Leadership 90 pts 2. Customer Focus and Satisfaction 300 pts 3. Human Resource Development and Management 150 pts 4. Information and Analysis 80 pts 22 27

23 S. Strategic Quality Planning 60 pts 6. Management of Process Quality 140 pts 7. Quality and Operational Results 180 pts Potential disadvantages include 1. Complaints of too much time spent completing the evaluation process and too little time concentrating on promoting quality within the company 2. Winning the award requires time spent speaking to other companies about quality Page Discuss the reasons why there has been such a dramatic increase in the number of contingent workers. Ans: Erosion of the traditional employment contract lifetime employment for dedicated service has occurred, Companies can no longer guarantee their employees job security. Many companies have reduced the number of full-time employees to lower associated labor costs and give the organization the flexibility to contract for skills when needed. Companies that use contingent employees from temporary agencies and contract firms are likely to experience a reduction in administrative and financial burden associated with human resource management because agencies take care of selecting, training, and compensating workers. Contingent work is also attractive from the worker s perspective. Many employees have decided to work on a temporary basis because it meets their interests, values, and needs. Page What sorts of activities does managing cultural diversity involve? Discuss 4 of the 6 ways that managing cultural diversity can provide a competitive advantage. Ans: Activities include 1. Creating an organizational culture that values diversity 2. Ensuring that ARM systems are bias-free 3. Facilitating higher career involvement of women 4. Promoting knowledge and acceptance of cultural differences 5. Ensuring involvement in education both within and outside the company 6. Dealing with employees resistance to diversity Competitive advantages associated with diversity 1. Cost argument those who handle diversity well will have lower costs from doing a poor job of integrating workers that will come as organizations become more diverse 2. Resource-acquisition argument companies will develop reputations as good companies for women 23 27

24 and minorities to work for and therefore they will attract the best from these groups of individuals. This will be especially important as the labor pool shrinks and changes composition 3. Marketing argument the insight and cultural sensitivity of employees with roots in other countries or different ethnic groups will help both in multinational organizations as well as when marketing to subpopulations domestically 4. Creativity argument creativity should be improved by a diversity of perspectives and less emphasis on conformity to norms of the past 5. Problem-solving argument wider range of perspectives and more thorough critical analysis of issues will lead to more heterogeneity in decisions and problem solving groups 6. System flexibility argument system will become less determinant, less standardized, and more fluid, which should create greater flexibility to react to environmental changes Page Discuss the balanced scorecard approach of measuring stakeholder performance. Ans: The balanced scorecard is based on the degree to which stakeholder needs are satisfied. brings together most measures needed to be competitive. gives employees a framework to link their goals to organizational goals. is used to link HR activities to business strategy. evaluates how much HR is helping to meet business objectives. Page LO Discuss three major trends in the composition of the labor market and impact on HR practices. Ans: 1. Agewise the fastest growing segment is will also grow fast. Aging workforce issues include career plateauing, retraining and retirement planning. 2. Diversity. Asians and Hispanics will increase significantly. Immigrants also on the increase heterogeneous composition will pose additional challenges to ensure understanding. 3. Women. Participation rates will be steady advancement up the organization more than additional participation. Page

25 1-81. Outline each of the three challenges companies must successfully face in order to gain a competitive advantage. Ans: 1. The Global Challenge A. Development of global markets-gain greater access to foreign markets, helped by recent developments, including the changes in Eastern Europe, the restructuring of the Soviet Union, the European Common Community market, and NAFTA B. Preparing employees for international assignments-need to improve success rate for U.S. expatriate employees-select employees for abroad based on their ability to understand cultural and business norms, their language skills, and their technical ability-train and develop foreign employees 2. Meeting Stakeholder Needs Balanced Scorecard Meeting Customer Service Needs Rewarding quality improvement Composition of Labor Force Structure of Economy Skill deficiencies Changes in Employment Contract Employee Values Legal/Ethical Considerations 3. The High-Performance Work System Challenge A. Employees will be given more responsibility for work and use a wider variety of skills B. There will be an increased use of teams to perform work C. Managers role as coaches and resource persons will increase D. Company structure will rely on an adaptive high involvement structure. E. HR information bases will be increasingly available Page 8-30 LO Outline the 4 dimensions of human resource management practices including specific examples of human resource practices within each area. Ans: 1. Managing the human resource environment allows employees to make the greatest possible contribution to company productivity and competitiveness Examples include -linking HRM practices to the company s business objectives -ensuring that HRM practices are in legal compliance designing work that motivates employees and better services customers 2. Acquiring and preparing human resources Number and type of employees influenced by customer 25 27

26 needs, terminations, promotions, retirements. Need to predict the number and types of employees needed and identify current or potential employees to fill those needs. Examples include -human resource planning -recruiting employees -selecting and placing employees 3. Assessing and developing human resources Managers must ensure employees have the necessary skills to perform current and future jobs. Work may be redesigned to be done by teams. Companies need to create a supportive work environment. Examples include measuring employee performance -preparing employees for future work roles -identifying employees work interests, goals, and values 4. Compensating human resources Pay and benefits are important incentives to offer employees in exchange for contributing to productivity, quality, and customer service. Also used to reward employees membership and attract new employees Examples include -creating pay systems -rewarding employee contributions -providing employees with benefits Page LO Discuss the ways in which Texas Instruments epitomizes human resource excellence. Ans: HR area is seen as a great asset. -partners with operation system in developing strategy -assess employee development to meet company needs -emphasizes recruiting to attract top people -stresses diversity and either through networking, mentoring programs and communication. Page 3-4, Discuss the activities performed by HR departments and how they have changed from 10 years ago. Ans: Some major changes include: -administrative roles have been reduced and outsourced -the role of strategic business partner has increased -analytical skills are needed more to measure and evaluate HR effectiveness 26 27

27 Page Discuss how HR practices support high-performance work systems. Ans: Teams are used to perform work -Employees participate in the selection process. Employees receive formal performance feedback and are actively involved in the performance-improvement process. Ongoing training is emphasized and rewarded. Employees rewards and compensation relates to the company s financial performance. Equipment and work processes are structured to encourage maximum flexibility and interaction among employees. Employees participate in planning changes in equipment, layout, and work methods. Work design allows employees to use a variety of skills. Employees understand how their jobs contribute to the finished product or service. Difficulty: H Page 29 LO