Introduction to Human Resource Management (GLO1 C232)

Introduction to Human Resource Management (GLO1 C232)

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Free Introduction to Human Resource Management (GLO1 C232) Questions

1.

For many years, human resource management was called ______ and involved clerical functions such as screening applications, keeping records, processing the payroll, and finding new employees when necessary.

  • worker administration

  • personnel

  • office management

  • administrative science

Explanation

Correct answer:

b. personnel

Explanation:

Human resource management was historically referred to as "personnel" and focused mainly on administrative tasks such as recruiting, managing payroll, and handling records. This term was widely used before the shift towards the broader, more strategic approach seen in modern HRM.


Why the other options are wrong:

a. worker administration is not a common historical term used for HRM.

c. office management typically refers to managing office operations and facilities, not specifically HR functions.

d. administrative science is not associated with HRM and relates more to the field of organizational theory and administrative studies.


2.

Which management policy decreases the risk of unionizing among employees

  • Open door communications

  • Increasing overtime hours

  • Allowing solicitations

  • Leadership incentives

Explanation

Correct Answer:

a. Open door communications

Explanation:

An open-door communication policy fosters transparency and direct dialogue between employees and management. When employees feel heard and their concerns are addressed, they are less likely to seek union representation for workplace issues.


Why the other options are incorrect:

b. Increasing overtime hours. – Forcing or increasing overtime without fair compensation can create dissatisfaction, potentially increasing union interest.

c. Allowing solicitations. – Allowing solicitations, including union-related activities, could actually encourage unionization rather than prevent it.

d. Leadership incentives. – While leadership incentives can improve management effectiveness, they do not directly address employee concerns or reduce unionization risks.


3.

Which of the following statements is true of two-way linkages?

  • The strategic planning function and the HRM function are interdependent.

  • It prevents the company from considering HR issues while formulating the strategic plan.

  • The human resource management department simply engages in administrative work unrelated to the company's core business needs.

  • The human resource function's attention is on day-to-day activities.

  • The human resource management executive has no opportunity to take a strategic outlook toward human resource management issues.

Explanation

Correct answer:

A. The strategic planning function and the HRM function are interdependent.

Explanation:

Two-way linkages imply that both the strategic planning function and the HRM function are closely interrelated and mutually influence each other. HRM plays a role in shaping strategy and ensures that the right human resources are available to execute the company's strategic objectives.

Why the other options are wrong:

B. This statement describes a one-way linkage, where HR issues are not considered in strategic planning, which is not true for two-way linkages.

C. This is not true for two-way linkages, as HRM is involved in strategic functions, not just administrative tasks.

D. Day-to-day activities are part of human resource management, but two-way linkages emphasize a broader involvement in strategy formulation, not just daily operations.

E. This is incorrect because in two-way linkages, HRM executives do have an opportunity to contribute strategically.


4.

Which of the following is true of one-way linkage

  • It precludes the company from considering human resource issues while formulating the strategic plan

  • In this level, the human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues.

  • In this level, the human resource management functions are built right into the strategy formulation process.

  • In this level, the human resource management function is involved in both strategy formulation and strategy implementation.

Explanation

Correct answer:

A. It precludes the company from considering human resource issues while formulating the strategic plan.

Explanation:

One-way linkage refers to a situation where human resource management (HRM) is not actively involved in the strategic planning process. Instead, HR is only expected to align its practices with the strategy that has already been formulated, which means HR issues are not considered while formulating the strategic plan.

Why the other options are incorrect:

B) In this level, the human resource management executive has no time or opportunity to take a strategic outlook toward human resource issues. – This describes a more tactical role of HR, but not specifically one-way linkage, where HR still follows the established strategy rather than contributing to its creation.

C) In this level, the human resource management functions are built right into the strategy formulation process. – This describes two-way linkage, not one-way linkage, where HR functions are integrated into strategy formulation.

D) In this level, the human resource management function is involved in both strategy formulation and strategy implementation. – This describes a higher level of involvement, typically seen in two-way or even three-way linkages, not one-way linkage.


5.

A firm offers an individual a job selling widgets which pays $1,500 per widget sold plus health insurance. The employee counter-offers that he be paid $2,000 per widget sold with no insurance. Which pay structures are being discussed

  • The firm is offering variable compensation and the employee is requesting variable compensation.

  • The firm is offering variable compensation, while the employee is requesting fixed compensation.

  • The firm is offering fixed compensation, while the employee is requesting non-variable compensation.

  • The firm is offering fixed compensation, while the employee is requesting variable compensation.

Explanation

Correct Answer:

a. The firm is offering variable compensation and the employee is requesting variable compensation.

Explanation:

The firm is offering a variable compensation
structure because the pay is tied to performance (the number of widgets sold) rather than a fixed salary.

The employee’s counter-offer is also based on performance (per widget sold), maintaining the variable compensation structure, but with a higher payment per widget and no insurance.


Why the other options are incorrect:

b. The firm is offering variable compensation, while the employee is requesting fixed compensation. – The employee is asking for higher pay per widget sold, which remains variable compensation, not fixed compensation.

c. The firm is offering fixed compensation, while the employee is requesting non-variable compensation. – The firm is not offering fixed compensation (a set salary), it is offering performance-based pay (variable compensation).

d. The firm is offering fixed compensation, while the employee is requesting variable compensation. – Both the firm and the employee are discussing variable compensation, not fixed.


6.

Who is responsible for Human Resource Management in reorganization

  • Supervisor

  • Individual

  • Top management team

  • All of the above

  • None of the above

Explanation

Correct answer:

d) All of the above

Explanation:

Human Resource Management (HRM) during a reorganization is a shared responsibility among multiple levels within an organization:

Supervisors play a role in managing and supporting employees through changes, implementing HR policies, and ensuring smooth transitions.

Individuals are responsible for adapting to changes, maintaining productivity, and contributing to the success of the reorganization.

Top management team is responsible for strategic decision-making, planning the reorganization, and ensuring HR policies align with business goals.

Since HRM responsibilities are distributed across different levels, "All of the above"
is the most accurate answer.

Why the other options are incorrect:

a. While supervisors play a role, they do not have sole responsibility for HRM in a reorganization.

b. Individuals contribute to the process but are not solely responsible.

c. The top management team is critical, but HRM also involves supervisors and employees.

e. Since HRM is a collective responsibility, "None of the above" is incorrect.


7.

Which internal factor refers to the firm's equipment and knowledge used to produce goods and services

  • Culture

  • Technology

  • Size

  • Competition

Explanation

Correct Answer:

b) Technology

Explanation:

Technology includes the tools, equipment, and knowledge that a company uses to produce its products or services. It is a key internal factor that enables the company to operate efficiently and maintain competitive advantage in production processes.

Why the other options are wrong:

a) Culture: Culture refers to the organization’s values and social environment, not the tools and knowledge used for production.

c) Size: Size relates to the scale of the company (e.g., number of employees or market share), but does not directly describe the equipment or knowledge used in production.

d) Competition: Competition is an external factor that influences a company’s strategy but is not about its internal resources or knowledge.


8.

Which approach should a company use to verify that its entry-level salaries are competitive in the local geographic market

  • Job-ranking

  • Point-factor

  • External benchmarking

  • Factor comparison

Explanation

Correct Answer:

c. External benchmarking

Explanation:

External benchmarking involves comparing the company's salary structure with those of similar organizations within the same geographic area or industry. This approach helps ensure that the company’s salaries are competitive with local market standards.


Why the other options are incorrect:

a. Job-ranking. – Job-ranking is an internal job evaluation method, where jobs are ranked based on their relative worth to the organization, but it doesn’t help with external comparisons.

b. Point-factor. – Point-factor systems assign points to various job factors for internal evaluation, not for comparing salaries in the local market.

d. Factor comparison. – Factor comparison is another internal job evaluation method that compares job factors across positions, but it does not focus on external salary data.


9.

What are the three primary reasons that companies create mergers

  • financial benefits; needs of management; human resource benefits

  • financial benefits; strategic benefits; competitive benefits

  • financial benefits; needs of management; strategic benefits

  • global benefits; competitive benefits; human resource benefits

Explanation

Correct answer:

b. financial benefits; strategic benefits; competitive benefits

Explanation:

Mergers are often driven by three primary reasons:

Financial benefits: Companies merge to achieve cost savings, increase profitability, or improve financial stability.

Strategic benefits: Mergers allow companies to enter new markets, gain access to new technologies, or diversify their product or service offerings.

Competitive benefits: Mergers help companies strengthen their position in the market by combining resources and capabilities, thereby improving their competitive edge.

Why the other options are incorrect:

a. While financial and human resource benefits may occur in a merger, needs of management is not a primary reason for creating mergers.

c. Needs of management is not typically considered a primary driver compared to strategic and competitive reasons.

d. Global benefits are a possible outcome of a merger but not one of the primary reasons for merging, as the focus is more on financial, strategic, and competitive advantages.


10.

A supervisor meets annually with an employee to determine the employee's performance goals for the rest of the year. Which appraisal form is being used

  • Graphic grading scale

  • Behaviorally anchored rating

  • Management by objective

  • Critical incident evaluation

Explanation

Correct Answer:

c. Management by objective

Explanation:

Management by Objective (MBO) focuses on setting specific, measurable goals collaboratively between the employee and supervisor. This method ensures employees align their efforts with company objectives and track their progress throughout the year.


Why the other options are incorrect:

a. Graphic grading scale. – This method rates employees on a fixed scale for various performance criteria but does not involve goal-setting.

b. Behaviorally anchored rating. – This appraisal method assesses performance based on predefined behavioral examples, rather than setting future goals.

d. Critical incident evaluation. – This approach focuses on reviewing key events in an employee’s performance rather than proactively setting goals for the future.


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