Chapter 1 Human Resource Management: Gaining a Competitive Advantage
1
True/False Questions
1. Human resource management practices have been shown to positively impact company
performance by contributing to employee and customer satisfaction, innovation,
productivity, and company reputation.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 6 BT: Knowledge
2. Human resource management refers to policies, practices, and systems that influence
employees' behavior, attitudes, and performance.
Answer: True Page: 4 LO: 1 Difficulty: Easy
AACSB: 6, 10 BT: Knowledge
3. The human resource department is most likely to collaborate with other company
functions on outplacement, labor law compliance, testing, and unemployment
compensation.
Answer: False Page: 5 LO: 1 Difficulty: Easy
AACSB: 1, 6, 10 BT: Knowledge
4. The three product lines of HR include a) administrative services and transactions, b)
financial services, and c) strategic partners.
Answer: False Page: 7 LO: 1 Difficulty: Medium
AACSB: 6 BT: Knowledge
5. HR professionals need to have six competencies as identified by the Human Resource
Competency Study.
Answer: True Page: 7 LO: 1 Difficulty: Easy
AACSB: 6 BT: Knowledge
6. The role of HRM in administration has remained the same despite advances in
technology.
Answer: False Page: 9 LO: 1 Difficulty: Medium
AACSB: 6, 12 BT: Knowledge
Chapter 1 Human Resource Management: Gaining a Competitive Advantage
2 7. Advances in technology have allowed HR services to be offered more on a self-service
basis than in the past.
Answer: True Page: 9 LO: 1 Difficulty: Medium
AACSB: 6, 12 BT: Knowledge
8. Many administrative activities of HR, such as payroll administration, training, and
selection, are being outsourced.
Answer: True Page: 9 LO: 1 Difficulty: Easy
AACSB: 6 BT: Knowledge
9. Human resource departments have only recently come to be viewed as administrative
experts and employee advocates.
Answer: False Page: 10 LO: 1 Difficulty: Easy
AACSB: 6 BT: Knowledge
10. Evidence-based HR provides managers with data to make decisions, instead of just
intuition.
Answer: True Page: 11 LO: 1 Difficulty: Easy
AACSB: 6 BT: Knowledge
11. Stakeholders of a company includes employees and shareholders.
Answer: True Page: 13 LO: 2 Difficulty: Easy
AACSB: 6 BT: Knowledge
12. According to the U.S. Bureau of Labor Statistics, more than 25 percent of the workers
will reach retirement age by 2010, resulting in a potential worker shortage of 10 million.
Answer: True Page: 14 LO: 2 Difficulty: Easy
AACSB: 6 BT: Knowledge
13. By 2012, employment demand is expected to be greatest in professional and related
services.
Answer: True Page: 14 LO: 2 Difficulty: Easy
AACSB: 6 BT: Knowledge
Chapter 1 Human Resource Management: Gaining a Competitive Advantage
3 14. Occupations that are fastest growing provide the highest pay related to the occupation.
Answer: False Page: 17 LO: 2 Difficulty: Medium
AACSB: 6 BT: Knowledge
15. A learning organization embraces a culture of lifelong learning, enabling all employees
to continuously acquire and share knowledge.
Answer: True Page: 20 LO: 2 Difficulty: Medium
AACSB: 6 BT: Knowledge
16. The psychological contract describes what an employee expects to contribute and what
the company will provide to the employee in return for these contributions.
Answer: True Page: 20 LO: 2 Difficulty: Easy
AACSB: 6 BT: Knowledge
17. The use of alternative work arrangements, which include independent contractors,
on-call workers, temporary workers, and contract company workers, is shrinking.
Answer: False Page: 22 LO: 2 Difficulty: Easy
AACSB: 6 BT: Knowledge
18. To be effective, balanced scorecards must be customized by companies to fit their
market situations, products, and competitive environments.
Answer: True Page: 24 LO: 3 Difficulty: Medium
AACSB: 6, 13 BT: Knowledge
19. The balanced scorecard should be used to link marketing to the company's human
resource management activities.
Answer: False Page: 25 LO: 3 Difficulty: Medium
AACSB: 6 BT: Knowledge
20. Corporate cultures within companies that successfully implement TQM typically
emphasize individualism, hierarchy, accountability, and profits.
Answer: False Page: 28 LO: 3 Difficulty: Medium
AACSB: 6 BT: Knowledge
