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If two firms in one industry join to hold a greater share of the industry, it will be referred to as


A) a consolidation.
B) a takeover.
C) an acquisition.
D) a conglomerate.
E) assimilation.

F) A) and B)
G) A) and C)

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Sky Meadows Health Care Systems set up a program that encourages employees to share their ideas for patient satisfaction and cost savings. After a year of collecting these ideas, the HR department conducted an employee survey and learned that its employees did not feel very empowered. What else should Sky Meadows do to improve the sense of empowerment?


A) Hold employees accountable for their results.
B) Train employees to use information resources.
C) Show that management is listening to the ideas and implementing the valuable ones.
D) Train managers to link employees to resources within and outside the organization.
E) Encourage employees to interact with staff throughout the organization.

F) All of the above
G) A) and E)

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Sean works at Rowen Corp., an environmentally conscious apparel manufacturing company. He primarily focuses on the tastes and needs of the firm's customers. He achieves this by managing a team that regularly interacts with customers through various promotional activities and events. He also provides insights on how to produce eco-friendly outfits through his specialized knowledge of cost-efficient manufacturing processes. This implies that Sean


A) is an HR professional.
B) encourages centralized decision making.
C) is a knowledge worker.
D) encourages a narrow business focus.
E) belongs to the external labor market.

F) C) and D)
G) B) and C)

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As part of a company-wide business strategy, Smith Inc. conducts a comprehensive examination of its critical work techniques to increase their efficiency. The results of the examination are used to create a strategy to provide high-quality goods and services to the firm's customers. Which HRM practice is Smith Inc. using?


A) outsourcing
B) reengineering
C) downsizing
D) merger
E) acquisition

F) A) and D)
G) B) and D)

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Tasty Treats, a cookie manufacturer, combines with Minty Goodies, a chocolate manufacturer, to form a company called Yummy, Inc. This scenario illustrates a(n)


A) consolidation.
B) partnership.
C) acquisition.
D) merger.
E) strategic alliance.

F) B) and D)
G) B) and E)

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Successful organizations treat all their workers as knowledge workers.

A) True
B) False

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Lennon, the branch manager of a local bank, wants to initiate a teamwork system because he believes it will improve the performance of the branch. Which statement provides valid support for Lennon's idea?


A) Teamwork encourages centralized decision making, which will lower costs.
B) Teamwork eliminates the need for quality control.
C) Teamwork makes work motivating for employees and helps reduce labor costs.
D) Teamwork simplifies each job to a few tasks, reducing errors.
E) Teamwork reduces errors because team members must communicate face-to-face.

F) A) and E)
G) B) and D)

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Brady works at a machine production facility assembling small parts in a specialized division. In addition to his regular job duties, Brady works in tandem with his other coworkers to schedule work, select new team members, and carry out multiple assembly tasks. This style of work is best described as


A) centralized.
B) a virtual team.
C) teamwork.
D) agile development.
E) knowledge work.

F) A) and B)
G) A) and C)

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Which statement is true of a psychological contract?


A) A psychological contract describes spoken expectations that are widely held by employers and employees.
B) In the new version of the psychological contract, organizations manage the career paths for their employees.
C) In the traditional version of the psychological contract, organizations expected employees to take more responsibility for their own careers, from seeking training to balancing work and family.
D) A psychological contract is a display of how the company is performing on specific HR metrics, such as productivity and absenteeism.
E) A psychological contract is not formally put into words.

F) A) and B)
G) A) and D)

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Which statement is true about downsizing?


A) HRM cannot, and should not, inform all employees why downsizing is necessary.
B) HRM should withhold information regarding downsizing rather than maintain open communication with remaining employees.
C) Downsizing is associated with positive stock returns.
D) Downsizing results in higher profitability following layoffs.
E) HRM can provide downsized employees with outplacement services to help them find new jobs.

F) A) and B)
G) B) and E)

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E

Total quality management proposes that every employee in the organization receive training in quality.

A) True
B) False

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Which statement is correct regarding skilled knowledge workers?


A) They do not have considerable autonomy to make decisions.
B) They are most likely to experience a lack of opportunities in a slow economy.
C) They are not easily replaced because they own the knowledge that the company requires to produce its products.
D) They are not expected to be technically efficient and are only involved in direct interactions with customers.
E) They do not have a lot of job opportunities because employers can simply order these employees to perform tasks.

F) A) and E)
G) C) and E)

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Hutch Inc., a software company, uses an approach in which software developers and programmers interact directly with customers. The team asks the customers for their requirements, develops a sample, and sends it to them for feedback. The team continues production based on the feedback given by their clients. The firm spends less time on negotiating contracts and documenting processes. This scenario implies that Hutch is using which approach?


A) just-in-time
B) total quality management
C) agile
D) downsizing
E) outsourcing

F) D) and E)
G) None of the above

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C

How has the requirement for creating high-performance work systems changed?


A) There is a drive toward low-cost strategy in the labor market.
B) Employees prefer implementation of a 40-hour workweek.
C) Competitors are looking for ways to standardize prices in their respective industries.
D) Employers are looking for ways to tap people's creativity and interpersonal skills.
E) Customers are demanding standardized products over customized products.

F) C) and E)
G) B) and C)

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What is true of early retirement programs that are used as a method of downsizing?


A) They are the most effective.
B) They are linked to greater employee suffering and distress.
C) They offer a better alternative to the "grenade" approach.
D) They help in distinguishing between good and poor performers.
E) They are humane.

F) A) and B)
G) A) and E)

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Dino Inc., a marketing firm, has employees who work in different cities in different time zones around the country. They coordinate their work efficiently with the help of technology, such as videoconferencing, mobile phones, and e-mail, for the production of marketing activities. Which statement is true of Dino Inc.?


A) It has a vertical organizational structure.
B) It does not hold employees accountable for products and services.
C) It encourages virtual teams.
D) It encourages centralized decision making.
E) It has self-employed individuals with multiple clients.

F) None of the above
G) C) and E)

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The processing and transmission of digitized human resource information is called electronic human resource management.

A) True
B) False

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In what way does teamwork make work more significant?


A) It centralizes authority so workers do not have to make decisions.
B) Team members have less authority, so they can relax.
C) Teams get to work on fast-moving assembly lines.
D) Team members contribute to quality and assume many activities traditionally reserved for managers.
E) Teams spare employees from having to work directly with customers.

F) C) and D)
G) A) and B)

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What is necessary for the success of employee empowerment?


A) The jobs must be designed in such a manner that the managers have complete control over business processes.
B) Employees must be properly trained to exert their wider authority and use information resources such as the Internet.
C) Pay and other rewards should reflect employees' loyalty to the organization and not their authority.
D) Employers should provide feedback only when employees resign and are about to leave the organization.
E) Employers should create jobs that minimize the need for the employees to come up with innovative ideas and solutions.

F) C) and D)
G) A) and E)

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Which of the following is a type of person who works for an organization only when they are needed?


A) on-call workers
B) moonlighting employees
C) apprentices
D) part-time employees
E) trainees

F) B) and C)
G) None of the above

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A

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