Chapter 2 The Role of Human Resource Management in Business

Question 1

Organizational culture

Answer 1

the norms, values, and assumptions of organizational members

reinforced by things such as logos, ceremonies, dress codes, and even office decorations and furniture placement

“the way we see and do things around here”

Question 2

What can be reinforced or undermined by its fit with the organization’s business strategy?

a. values
b. approach
c. culture
d. strategy

Answer 2

culture

Question 3

high-performance work systems (HPWS)

Answer 3

enable high performance through employees

also called high-involvement or high-commitment

Structure so that individuals at the lowest level in the organization not only perform work but also are responsible for improving work methods and procedures, solving problems on the job, and coordinating their work with that of others

Question 4

Ethics

Answer 4

the standards of moral behavior that define socially accepted behaviors that are right as opposed to wrong

honesty, tolerance, and responsibility

Question 5

utilitarian standard

Answer 5

the ethical action best balances good over harm by doing the most good or doing the least harm (cutting pay rather than laying people off)

Question 6

right standard

Answer 6

the ethical action is the one that best respects and protects the moral rights of everyone affected by the action

the right to privacy, to be told the truth, or to be safe

Question 7

the fairness standard

Answer 7

the ethical action treats all people equally, or at least fairly, based on some defensible standard

Question 8

common good standard

Answer 8

the ethical action shows respect and compassion for everyone, especially the most vulnerable

not employing child labor

Question 9

virtue standard

Answer 9

the ethical action is consistent with certain ideal virtues including civility, compassion, and benevolence

quickly recalling a product that you know is defective

Question 10

What ethical action is associated with balancing the most good and the least harm

a. rights standard
b. common good standard
c. fairness standard
d. utilitarian standard

Answer 10

utilitarian standard

Question 11

Which ethical action is the one that best respects and projects the moral rights of everyone affected by the actions?

a. fairness standard
b. rights standard
c. utilitarian standard
d. common good standard

Answer 11

the rights standard

Question 12

Which ethical action treats all people equally - or at least fairly - based on some defensible standard?

Answer 12

fairness standard

Question 13

What are the five types of ethical standards

Answer 13

utilitarian, rights, fairness, common good, and virtue

Question 14

What are the three types of systematic errors organizations can make?

Answer 14

omission errors, remission errors, and commission errors

Question 15

omission errors

Answer 15

a lack of written rules

Question 16

remission errors

Answer 16

pressure to make unethical choices

Question 17

commission errors

Answer 17

a failure to follow sound, established operational and ethical practices

Question 18

common ethical issues

Answer 18

privacy issues, staffing (nepotism), layoffs and downsizing, rewards, safety, performance appraisal, labor practices

Question 19

codes of conduct

Answer 19

specify expected and prohibited actions in the workplace and gives example of appropriate behavior

Question 20

code of ethics

Answer 20

a decision-making guide that describes the highest values to which an organization aspires

specifies the company’s ethical rules regarding what employees should and should not do

Question 21

Six basic elements to a complete ethics and compliance program

Answer 21

1. written standards for ethical conduct
2. ethics training
3. providing a way for seeking ethics-related advice or information
4. providing a mechanism for anonymously reporting misconduct
5. disciplining employees who violate the law or the standards of the organization
6. evaluating ethical behavior as part of an employee’s regular performance appraisals

Question 22

corporate social responsibility

Answer 22

when businesses show concern for the common good and value human dignity

community involvement, charity, how you treat your employees

Question 23

stakeholder perspective

Answer 23

considers the interest and opinions of all people, groups, organizations, or systems that affect or could be affected the organization’s actions supports social responsibility

Question 24

Common changes managed by HRM

Answer 24

1. New production process
2. Opening a new location
3. Rolling out a new benefits program
4. Implementing a new human resources information system (HRIS) or upgrading the current HRIS system
5. Expanding international operations

Question 25

What should employees change in order to support an organizational change effort?

Answer 25

behaviors and goals

Question 26

Which of the following is a first step of a change initiative?

Answer 26

Identify key goals

Question 27

One of the most important factors in successfully creating organizational change is the creation of a culture of _____?

Answer 27

trust

Question 28

Five dimensions that tend to distinguish cultures across countries

Answer 28

1. power distance 2. individualism 3. masculinity 4. uncertainty avoidance 5. long-term orientation

Question 29

power distance

Answer 29

the amount of inequality that exists and that is accepted among people with and without power high power distance is associated with more hierarchical companies that have large gaps in authority and compensation low power distance is reflected in flatter organizations in which employees and supervisors are considered and treated more equally

Question 30

individualism

Answer 30

the strength of the ties people have with others in their community higher individualism is reflected in greater valuation of people's time and need for freedom with an emphasis on individual and extrinsic rewards lower individualism is reflected in placing a high value on harmony rather than honesty with an emphasis on intrinsic and collective rewards

Question 31

masculinity

Answer 31

how much a society values and exhibits traditional male and female roles highly masculine culture men are expected to be assertive and be the sole provider for the family higher masculinity is reflected in a distinction between men's and woman's work lower masculinity is reflected in equal employment opportunity often supported with legislation

Question 32

uncertainty avoidance

Answer 32

the degree of anxiety felt in uncertain or unfamiliar situations higher uncertainty avoidance is associated with a need for structure and very formal and rule-driven business conduct lower uncertainty avoidance is associated with an informal business culture, greater acceptance of risk, and more concern with long-term performance than with daily events

Question 33

long-term orientation

Answer 33

a focus on long-term planning, delivering on social obligations, and avoiding losing face longer-term orientation is reflected in a strong work ethic and placing high value on education and training shorter-term orientation is characterized by higher individualism, creativity and equality

Question 34

What sometimes attracts companies to acquire other companies? a. diversity b. culture and diversity c. culture d. talent and skills

Answer 34

d. talent and skills

Question 35

HRM metrics

Answer 35

measurements which can identify where the HRM system can be improved and help the HRM best meet the needs of the organization and its stakeholders

Question 36

absence rate

Answer 36

number of employee absences/(average number of employees during the period x the number of workdays)

Question 37

cost per hire

Answer 37

recruitment costs/(cost of compensation + benefits)

Question 38

customer service ratings

Answer 38

average customer ratings of employee customer services performance

Question 39

engagement

Answer 39

level of employee satisfaction or engagement with the company

Question 40

health care cost per employee

Answer 40

total cost of employee health care/number of covered employees

Question 41

innovation

Answer 41

percent of sales coming from products introduced in the last five years

Question 42

job offer acceptance rate

Answer 42

number of job offers accepted/number of job offers extended

Question 43

percent of performance goals met or exceeded

Answer 43

number of individual or group performance goals met or exceeded/total number of performance goals

Question 44

profit per employee

Answer 44

profit/total number of employees

Question 45

Return on investment ROI

Answer 45

[{value of a program or intervention's benefits - total cost)/total cost] x 100

Question 46

revenue per employee

Answer 46

revenue/total number of employees

Question 47

tenure

Answer 47

average years of service at the organization

Question 48

time to fill

Answer 48

days to fill a position

Question 49

turnover rate

Answer 49

number of employees leaving/average number of employees during the same period

Question 50

workers' compensation cost per employee

Answer 50

total annual worker's compensation cost/average number of employees

Question 51

What should companies review before making decisions tied to business goals? a. vacancy b. revenue c. rates d. metrics

Answer 51

d. metrics

Question 52

What are the four broad types of organizational culture? a. administrative, bureaucratic, consensual, directional b. entrepreneurial, bureaucratic, consensual, directorial c. entrepreneurial, bureaucratic, consensual, competitive d. administrative, bureaucratic, consensual, competitive

Answer 52

c. entrepreneurial, bureaucratic, consensual, competitive

Question 53

entrepreneurial organizational culture

Answer 53

emphasizes creativity, innovation, and risk taking

Question 54

bureaucratic organizational culture

Answer 54

emphasizes formal structures and the correct implementation of organizational procedures, norms, and rules; associated with consistency and high ethical standards

Question 55

consensual organizational culture

Answer 55

loyalty and tradition, and encourages employees to stays with the organization for a long time; promotion is generally from within

Question 56

competitive organizational culture

Answer 56

competitive advantage and market superiority; produce a large amount of stress

Question 57

people - oriented culture

Answer 57

investing in your employees, good pay, training them well, customer oriented employees

Question 58

Rolling out a new benefits program is one of the most common_______managed by HRM a. concepts b. strategies c. changes d. theories

Answer 58

c. changes

Question 59

Which ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc? a. fairness standard b. virtue standard c. utilitarian standard d. rights standard

Answer 59

b. virtue standard

Question 60

Which ethical action shows respect and compassion for all others, especially the most vulnerable? a. common good standard b. utilitarian standard c. rights standard d. fairness standard

Answer 60

a. common good standard

Question 61

The standards of moral behavior that define socially acceptable behaviors as right or wrong are known as ______ a. ethics b. policy c. strategies d. laws

Answer 61

a. ethics

Question 62

A(n) ________culture that stifles innovation and risk taking is thought to have contributed to Noikia's declining market share a. performance b. bureaucratic c. competitive d. entrepreneurial

Answer 62

b. bureaucratic

Question 63

Starbucks is a good example of a(n)_______ culture. a. entrepreneurial-oriented b. people-oriented c. competitive- oriented d. consensually-oriented

Answer 63

b. people-oriented

Question 64

Restaurants that schedule their highest performing servers during the busiest shifts are focused on ________ culture a. competitive b. consensual c. entrepreneurial d. performance

Answer 64

d. performance

Question 65

Sports teams like the New York Yankees and Pittsburg Steelers consistently excel because of their strong _______ culture a. entrepreneurial b. competitive c. performance d. consensual

Answer 65

c. performance

Question 66

performance culture

Answer 66

focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results

Question 67

_______ is the glue that keeps employees committed to the organization and focused on making the efforts to change successful a. ethics b. trust c. performance d. diversity

Answer 67

b. trust

Question 68

Effective _______ planning is essential to the success of a merger or acquisition. a. succession b. performance c. diversity d. talent

Answer 68

d. talent