Test Bank For Managing Human Resources, 16th Edition

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CHAPTER 1—THE CHALLENGE OF HUMAN RESOURCES MANAGEMENTTRUE/FALSE1.In general, many companies are realizing diminished demand for "touch labor" and an increasingdemand for "knowledge workers."ANS:TPTS:1REF:p. 13OBJ:1-4 TYPE: K2.Knowledge workers are employees whose responsibilities focus on problem solving.ANS:FPTS:1REF:p. 13OBJ:1-4 TYPE: U3.A Human Resource Information System (HRIS) provides current and accurate data for control anddecision-making by managers.ANS:TPTS:1REF:p. 13OBJ:1-4 TYPE: K4.To proactively manage change, organizations should wait to see how external forces impact anorganization's performance, then develop a plan to address those changes.ANS:FPTS:1REF:p. 8OBJ:1-1 TYPE: U5.The strategies companies are pursuing today increasingly involve one or more elements ofglobalization.ANS:TPTS:1REF:p. 8OBJ:1-2 TYPE: K6.A firm's ability to compete through people depends upon its ability to managehuman capital.ANS:TPTS:1REF:p. 4OBJ:1-1 TYPE: U7.Human capital is owned by the organization and is part of the company's core competencies.ANS:FPTS:1REF:p. 5OBJ:1-3 TYPE: K8.Companies are increasingly rotating non-HR managers into HR positions and vice versa to giveexposure to different areas of the organization.ANS:TPTS:1REF:p. 8OBJ:1-8 TYPE: A9.Proactive change is change that occurs when external forces have started affecting performance.ANS:FPTS:1REF:p. 8OBJ:1-2 TYPE: U10.Human capital is intangible, but can stillbe managed the way organizations managejobs, products,and technologies.ANS:FPTS:1REF:p. 5OBJ:1-1 TYPE: U11.Development of human capital is the responsibility of the HR group.

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ANS:FPTS:1REF:p. 5OBJ:1-1 TYPE: U12.Total-quality management is a set of principles and practices whose core ideas include doing thingsright the first time and striving for continuous improvement.ANS:TPTS:1REF:p. 7OBJ:1-1 TYPE: K13.To be successful, organizations should constantly seek to align their processes with customer needs.ANS:TPTS:1REF:p. 7OBJ:1-1 TYPE: U14.'Six Sigma' refers to the six criteria for Malcolm Baldrige National Quality Award.ANS:FPTS:1REF:p. 8OBJ:1-1 TYPE: U15.Six Sigma is a set of principles and practices whose core ideas include doing things right the first timeand striving for continuous improvement.ANS:FPTS:1REF:p. 8OBJ:1-1 TYPE: K16.In absolute terms, the United States remains the world’s most productive nation, even when it comesto manufacturing.ANS:TPTS:1REF:p. 20OBJ:1-5 TYPE: K17.Reengineering is a statistical method of translating customer needs into separate tasks and defining thebest way to perform each task.ANS:FPTS:1REF:p. 7OBJ:1-1 TYPE: K18.Over the past twenty-five years, the employment relationship between companies andemployees has shifted from transaction based to relationship based.ANS:FPTS:1REF:p. 18OBJ:1-5 TYPE: U19.Labor costs are one of the largest expenditures of any organization.ANS:TPTS:1REF:p. 16OBJ:1-5 TYPE: K20.Furloughing is a situation in which a firm asks an employee to take time off, but the employee is stillprovided with full pay and benefits.ANS:FPTS:1REF:p. 18OBJ:1-5 TYPE: K21.Methods of reducing labor costs include downsizing, outsourcing, and employee leasing.ANS:TPTS:1REF:p. 16OBJ:1-5 TYPE: K22.Downsizing is often used by organizations for the planned elimination of jobs.ANS:TPTS:1REF:p. 7OBJ:1-1 TYPE: K23.Downsizing was used extensively by firms during the Great Recession of 2008, causing the U.S.unemployment rate to jump up to about 10 percent.

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ANS:TPTS:1REF:p. 16OBJ:1-5 TYPE: K24.Technology, transportation, communications, and utilities industries tend to spendthe least on training.ANS:FPTS:1REF:p. 13OBJ:1-4 TYPE: K25.Some organizations have instituted "No Layoff" policies to help preserve institutional memory andworker productivity.ANS:TPTS:1REF:p. 17OBJ:1-5 TYPE: K26.Outsourcing refers to employing workers in their homes rather than within the traditional officeenvironment.ANS:FPTS:1REF:p. 18OBJ:1-5 TYPE: U27.Offshoring greatly improves key competencies of a firm.ANS:FPTS:1REF:p. 19OBJ:1-5 TYPE: K28.Corporate social responsibility requires the organization to act in the best interests of the people ANDcommunities affected by its activities.ANS:TPTS:1REF:p. 10OBJ:1-3 TYPE: U29.Older workers have significantly higher training costs than younger workers.ANS:FPTS:1REF:p. 24OBJ:1-6 TYPE: K30.Educational level is positively related to annual earnings.ANS:TPTS:1REF:p. 26OBJ:1-7 TYPE: U31.As many as half of all high school seniors are unable to handle basic math involving fractions,decimals, and simple algebra.ANS:TPTS:1REF:p. 26OBJ:1-7 TYPE: U32.Women now account for slightly more than half of the American workforce.ANS:FPTS:1REF:p. 24OBJ:1-6 TYPE: K33.By 2050, the percentage of Hispanics in the United States is expected to nearly triple, whilethe percentage of people of Asian descent is expected to significantly decrease.ANS:FPTS:1REF:p. 22OBJ:1-6 TYPE: U34.Older workers are often willing to work flexible hours.ANS:TPTS:1REF:p. 24OBJ:1-6 TYPE: U35.Employees today are less likely to define success in terms of financial gain.

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ANS:TPTS:1REF:p. 28OBJ:1-7 TYPE: K36.Family-friendly practices include offering flexible hours, telecommuting, and job sharing.ANS:TPTS:1REF:p. 28OBJ:1-7 TYPE: U37.One of the responsibilities of HR managers is to provide advice and counsel to line managers.ANS:TPTS:1REF:p. 31OBJ:1-8 TYPE: U38.An HR manager is typically expected to function as an in-house consultant to supervisors, managers,and executives.ANS:TPTS:1REF:p. 31OBJ:1-8 TYPE: K39.Because HR managers function in an advisory role, they are responsible for issuing policy revisionsand implementing them.ANS:FPTS:1REF:p. 31OBJ:1-8 TYPE: A40.One of the roles of HR managers is to act as employee advocates despite their positions as managers.ANS:TPTS:1REF:p. 31OBJ:1-8 TYPE: U41.HR managers establish credibility by supporting the policies and values of the firm.ANS:FPTS:1REF:p. 32OBJ:1-8 TYPE: A42.Employee leasing shifts administrative costs from the company to a professional employerorganization.ANS:TPTS:1REF:p. 20OBJ:1-5 TYPE: KMULTIPLE CHOICE1.Which of the following is NOT a competitive challenge within the Human Resources Managementframework?a.changes in the marketplaceb.globalizationc.technologyd.employee rightsANS:DPTS:1REF:p. 6OBJ:1-1 TYPE: K2.The World Trade Organization (WTO) utilizes ____ to establish rules and guidelines for globalcommerce.a.NAFTA (North American Free Trade Agreement)b.GATT (General Agreement on Tariffs and Trade)c.FTAA (Free Trade Area of the Americas)d.APEC (Asia Pacific Economic Cooperation)ANS:BPTS:1REF:p. 9OBJ:1-2 TYPE: K

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3.Knowledge workers require skills in all of the following areasexcept:a.computer programming.b.planning.c.decision-making.d.problem solving.ANS:APTS:1REF:p. 13OBJ:1-4 TYPE: U4.Which of the following is the largest employment agency in the United States?a.Snelling Personnel Servicesb.Kelly Servicesc.Manpower Inc.d.Labor ReadyANS:CPTS:1REF:p. 13OBJ:1-4 TYPE: K5.An HRIS extends information technology beyond storing and retrieving information to:a.overseeing production planning.b.providing current and accurate data for purposes of control and decision making.c.providing managers easy access to personnel records.d.serving as an intranet communication system.ANS:BPTS:1REF:p. 13OBJ:1-4 TYPE: U6.Which of the following isnota primary impact that technology has had on HRM?a.It has altered the methods of collecting employment information.b.It has speeded up the processing of employment data.c.It has diminished the role of supervisors in managing employees.d.It has improved the processes of internal and external communications.ANS:CPTS:1REF:p. 13OBJ:1-4 TYPE: K7.The operational impact of information technology on HRM includes all of the followingexcept:a.administering benefits programs.b.improving productivity internal to the HR function.c.providing a direct connection to recruitment sources such as Monster.com.d.automating routine tasks.ANS:CPTS:1REF:p. 13OBJ:1-4 TYPE: K8.The first step in choosing an HRIS is for the HR personnel to:a.evaluate the most time-consuming tasks.b.examine the user-friendliness of the software.c.calculate the cost savings in using an HRIS.d.calculate the time required to train the HR staff.ANS:APTS:1REF:p. 14OBJ:1-4 TYPE: K9.A needs assessment for IT investments should include all of the followingexcept:a.Initial costs and annual maintenance.b.Who will have access to private records.c.Ability to upgrade.d.User friendly capability.ANS:BPTS:1REF:p. 15OBJ:1-4 TYPE: K

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10.____ is closely related to corporate social responsibility.a.downsizingb.furloughingc.sustainabilityd.offshoringANS:CPTS:1REF:p. 10OBJ:1-3 TYPE: K11.Organizational changes are said to be ____ when external forces have already affected anorganization's performance.a.proactiveb.intentionalc.reactived.negativeANS:CPTS:1REF:p. 8OBJ:1-1 TYPE: K12.What change is initiated by management to take advantage of targeted opportunities?a.proactiveb.intentionalc.reactived.negativeANS:APTS:1REF:p. 8OBJ:1-1 TYPE: K13.Today, approximately ____ of private sector workers have pension plans?a.5 percentb.15 percentc.25 percentd.40 percentANS:BPTS:1REF:p. 16OBJ:1-5 TYPE: K14.____ is the process of moving jobs closer to one’s home country.a.Nearshoringb.Outsourcingc.Offshoringd.The Boomerang Effect.ANS:APTS:1REF:p. 20OBJ:1-5 TYPE: K15.Millennials are also known as:a.Baby Boomersb.Generation Xc.Generation Yd.ScreenagersANS:CPTS:1REF:p. 24OBJ:1-6 TYPE: K16.The value, skills, and capabilities that have a tremendous impact on an organization's performance butdoes not show up on its balance sheet are known as:a.intellectual capital.b.human capital.c.core competencies.d.employee capital.

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ANS:BPTS:1REF:p. 4OBJ:1-1 TYPE: K17.Women who are employed full-time today earn make about ____ of what men employed full-timemake.a.50%b.2/3’sc.80%d.100%ANS:CPTS:1REF:p. 25OBJ:1-6 TYPE: K18.To build human capital in organizations, managers should rely upon staffing programs that focus on:a.identifying cheap sources of qualified labor.b.identifying and hiring the best and brightest talent available.c.identifying college graduates with the requisite skills.d.identifying individuals with highly specialized skills.ANS:BPTS:1REF:p. 5OBJ:1-1 TYPE: A19._____ is a process used to translate customer needs into a set of optimal tasks that are performed inconcert with one another.a.Six Sigmab.Total Quality Managementc.Reengineeringd.Change ManagementANS:APTS:1REF:p. 8OBJ:1-1 TYPE: K20.Managers have to find ways to empower employees and encourage their participation and involvementto more fully utilize human capital because:a.They are figured as part of training costs.b.Firms are moving away from team-based structures.c.Employee skills often go unused.d.Knowledge exchange is the best method of human capital development.ANS:CPTS:1REF:p. 5OBJ:1-1 TYPE: U21.A survey conducted by the Human Resource Planning Society revealed that ____ percent of theresponding companies believe that their HR group plays an important role in developing humancapital.a.less than 30b.nearly 50c.between 30 and 40d.nearly 65ANS:DPTS:1REF:p. 5OBJ:1-1 TYPE: U22.About ___ of what Americans produce every year dollar-wise is sold abroad.a.50 percentb.30 percentc.10 percentd.2 percentANS:CPTS:1REF:p. 9OBJ:1-2 TYPE: K23.TQM:

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a.Focuses on understanding customer needs, doing things right the first time, and strivingfor continuous improvement.b.Uses statistical methods to translate customer needs into separate tasks and defining thebest way to perform them.c.Fundamentally redesigns business processes to achieve improvements in cost, quality,service, and speed.d.Changes the purpose and function of the HR group.ANS:APTS:1REF:p. 7OBJ:1-1 TYPE: K24.The trend towards opening up foreign markets to international trade and investment is knows as:a.globalizationb.offshoringc.outsourcingd.international economic diversityANS:APTS:1REF:p. 8OBJ:1-2 TYPE: K25.Six Sigma is a systematic approach to quality that:a.Focuses on understanding customer needs, doing things right the first time, and strivingfor continuous improvement.b.Uses statistical methods to translate customer needs into separate tasks and defining thebest way to perform them.c.Fundamentally redesigns business processes to achieve improvements in cost, quality,service, and speed.d.Focuses on improving the HR function through six principles.ANS:BPTS:1REF:p. 8OBJ:1-1 TYPE: K26.______ paved the way for the formation of many major trade agreements and institutions.a.GATTb.The WTOc.NAFTAd.The EUANS:APTS:1REF:p. 9OBJ:1-2 TYPE: U27.Reengineering:a.Focuses on understanding customer needs, doing things right the first time, and strivingfor continuous improvement.b.Uses statistical methods to translate customer needs into separate tasks and defining thebest way to perform them.c.Fundamentally redesigns business processes to achieve improvements in cost, quality,service, and speed.d.Changes the purpose and function of the HR group.ANS:CPTS:1REF:p. 7OBJ:1-1 TYPE: K28.Which of the following is NOT a characteristic of organizations that have been successful inengineering change?a.linking the change to business strategyb.Engaging key employees early in the change processc.investing in the implementation of changed.showing how the change has created qualitative benefitsANS:DPTS:1REF:p. 8OBJ:1-1 TYPE: A

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29.Which of the following is one of the largest expenditures of service companies?a.production costs.b.marketing costs.c.labor costs.d.distribution costs.ANS:CPTS:1REF:p. 16OBJ:1-5 TYPE: K30.Which of the following isnotan approach used by organizations to try to lower labor costs?a.productivity enhancementsb.outsourcingc.employee leasingd.employee developmentANS:DPTS:1REF:pp. 19-20OBJ:1-5 TYPE: U31.Which strategy is the planned elimination of jobs?a.downsizing.b.outsourcingc.TQMd.reengineeringANS:APTS:1REF:p. 7OBJ:1-1 TYPE: K32.Approximately ____ of the U.S. economy today is affected by international competition, includingsmall companies.a.25-40 percentb.50-65 percentc.70-85 percentd.90-100 percentANS:CPTS:1REF:p. 9OBJ:1-2 TYPE: K33.A Watson Wyatt study showed that companies with excellent recruiting and retention policies providea ____return to shareholders compared to those that do not.a.exact rate ofb.1.4% lower rate ofc.1.4% higher rate ofd.14% higher rate ofANS:CPTS:1REF:p. 17OBJ:1-5 TYPE: K34.Layoffs can incur all of the following hidden costsexcept:a.pension and benefit payoffsb.increased training expensesc.loss of institutional memory and human capitald.a paranoid, political workforceANS:BPTS:1REF:p. 17OBJ:1-5 TYPE: K35.Which one of the following isnotan HR cost that is typically incurred as a result of downsizing?a.severance payb.vacation and sick-day payoutsc.potential lawsuitsd.developmental expenses

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ANS:DPTS:1REF:p. 17OBJ:1-5 TYPE: A36.A fiercely loyal workforce, a recruiting edge, and workers who aren't afraid to innovate are all benefitsof:a.downsizingb.outsourcingc.companies that establish "no layoff" policiesd.productivity enhancementsANS:CPTS:1REF:p. 17OBJ:1-5 TYPE: K37.Hiring someone outside the company to perform tasks that could be done internally is known as:a.outplacement.b.contracting.c.outsourcing.d.employee leasing.ANS:CPTS:1REF:p. 18OBJ:1-5 TYPE: K38.The practice of moving jobs overseas is known as:a.outplacement.b.offshoring.c.outsourcing.d.employee leasing.ANS:BPTS:1REF:p. 19OBJ:1-5 TYPE: K39.A method of containing costs that allows firms to maintain working relationships while shiftingadministrative costs to another firm is known as ____.a.Outsourcingb.Employee Leasingc.Gainsourcingd.Professional employer organizationANS:BPTS:1REF:p. 20OBJ:1-5 TYPE: K40.Employee productivity be summarized as a function of all of the followingexcept:a.Abilityb.Motivationc.Environmentd.CompensationANS:DPTS:1REF:p. 20OBJ:1-5 TYPE: U41.It is anticipated that in the future, the American workforce will exhibit:a.about the same demographic mix as it does today.b.an increase in ethnic diversity.c.a decrease in ethnic diversity.d.a decrease in the number of older workers.ANS:BPTS:1REF:p. 22OBJ:1-6 TYPE: A42.Baby Boomers comprise approximately ____ of the population.a.16 percentb.26 percent

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c.36 percentd.46 percentANS:BPTS:1REF:p. 23OBJ:1-6 TYPE: K43.Managers are concerned that the expertise of employees will be rapidly drained from their companiesbecause:a.recruitment of minorities is increasingb.large portions of some workforces are nearing retirementc.older workers' skills and performance declined.older workers have higher absentee and accident ratesANS:BPTS:1REF:p. 23OBJ:1-6 TYPE: K44.Labor force demographics are expected to change in which of the following ways?a.Minorities will make up a smaller share of the U.S. labor force than they did in the past.b.Women will make up a smaller share of the U.S. labor force than they did in the past.c.Shrinking pool of entry-level workers.d.Increased use of temporary workers.ANS:CPTS:1REF:p. 29OBJ:1-7 TYPE: U45.Older workers:a.have lower performance than younger workersb.have higher performance than younger workersc.are more willing to work more flexible hoursd.learn new behaviors more quickly because of their experienceANS:CPTS:1REF:p. 24OBJ:1-6 TYPE: K46.Over the last few decades, the educational attainment of the U.S. labor force has:a.risen dramatically.b.fallen dramatically.c.remained at about the same level.d.had little influence on HRM.ANS:APTS:1REF:p. 26OBJ:1-7 TYPE: K47.The average payoff in annual earnings from education has:a.declined.b.remained the samec.increasedd.resulted in a higher literacy rateANS:CPTS:1REF:p. 26OBJ:1-7 TYPE: K48.Approximately ___ of mother with school-age children are employed.a.11 percentb.31 percentc.51 percentd.71 percentANS:DPTS:1REF:p. 24OBJ:1-6 TYPE: K49.The use and disclosure of personal medical information is protected by:a.the Privacy Act of 1974

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b.the Health Insurance Portability and Accountability Act of 1996c.the Electronic Communications Privacy Act of 1986d.Title VII of the Civil Rights Act of 1964ANS:BPTS:1REF:p. 27OBJ:1-7 TYPE: U50.Which of the following doesnotrepresent a cultural change emerging in organizations?a.an increased concern for privacyb.changing attitudes toward workc.balancing work and family demandsd.accommodating unemployed workersANS:DPTS:1REF:p. 27OBJ:1-7 TYPE: U51.Employee rights include all of the followingexcept:a.company funded pension plan.b.equal employment opportunity.c.union representation.d.equal pay for equal work.ANS:APTS:1REF:p. 27OBJ:1-7 TYPE: K52.In an attitude survey of 3000 workers, 86 percent of workers said that ____ were their top priorities.a.work-life balance and being successful at workb.work fulfillment and work-life balancec.work fulfillment and being successful at workd.being successful at work and high payANS:BPTS:1REF:p. 28OBJ:1-7 TYPE: K53.Family friendly work options include all of the followingexcept:a.day care.b.spousal benefitsc.parental leave.d.job sharing.ANS:BPTS:1REF:p. 28OBJ:1-7 TYPE: K54.About _____ of Fortune 500 companies provide same-sex partner health insurance benefits.a.34 percentb.57 percentc.72 percentd.81 percentANS:BPTS:1REF:p. 28OBJ:1-7 TYPE: K55.Which of the following is False?a.A majority of employees have no children under 18b.Family friendly policies have no positive outcomes for firmsc.Flextime options are on the rise for employeesd.Family friendly policies may include day care, part-time work, and job sharingANS:BPTS:1REF:p. 28OBJ:1-7 TYPE: A56.A firm’s top ____manager is in a good position to be the “chief ethics officer” of an organization.a.HR

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b.Financec.Productiond.MarketingANS:APTS:1REF:p. 31OBJ:1-8 TYPE: K57.Which of the following is NOT an issue related to employee rights?a.equal pay for equal workb.whistle-blowingc.concerns for privacyd.job sharingANS:DPTS:1REF:p. 29OBJ:1-7 TYPE: U58.As an employee advocate, HR managers:a.formulate and issue policy revisionsb.listen to employees and represent their needs to management.c.provide individual orientation and training to every employee.d.assist employees with labor negotiations.ANS:BPTS:1REF:p. 31OBJ:1-8 TYPE: K59.____ is a competency of the HR manager that entails knowing the business of their organizationthoroughly. One must understand its economic and financial capabilities as well as develop externalrelations skills focused on their customers.a.Change Masteryb.HR Masteryc.Business Masteryd.Personal CredibilityANS:CPTS:1REF:p. 31OBJ:1-8 TYPE: U60.Which of the following is NOT a general responsibility of the HR manager?a.Employee supervisionb.Strategic advice and counselc.Policy formulation and implementationd.Employee advocacyANS:APTS:1REF:p. 31OBJ:1-8 TYPE: U61.____ is a competency of the HR manager earned by developing personal relationships with internalcustomers, by demonstrating the values of the firm, by standing up for one's own beliefs, and by beingfair-minded in dealing with others.a.Change Masteryb.HR Masteryc.Business Masteryd.Personal CredibilityANS:DPTS:1REF:pp. 31-32OBJ:1-8 TYPE: U62.Globalization is really of interest to_________ companies.a.serviceb.consumer productc.larged.all

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ANS:DPTS:1REF:p. 9OBJ:1-2 TYPE: K63.Free trade agreements stir fierce debate, especially when it comes to____________.a.equal employment opportunities for womenb.jobsc.proprietary technologyd.information exchangeANS:BPTS:1REF:p. 10OBJ:1-2 TYPE:A64.Globalization has led to a new focus on________________.a.corporate social responsibilityb.mediac.recruitingd.employee performance evaluationANS:APTS:1REF:p. 10OBJ:1-2 TYPE: K65.The most obvious impact of technology on HRM has been_____________.a.in the area of HR researchb.operationalc.applying the latest government regulationsd.in outsourcing jobsANS:BPTS:1REF:p. 13OBJ:1-4 TYPE: K66.Understanding the organization’s customers and economic and financial capabilities is a part of whichof the following competencies required of HR managers?a.personal credibilityb.HR masteryc.business masteryd.change masteryANS:CPTS:1REF:p. 31OBJ:1-8 TYPE: K67.Human capital is _____ and _____ be managed the way organizations manage jobs, products, andtechnologies.a.tangible; cannotb.tangible; canc.intangible; cannotd.tangible; canANS:CPTS:1REF:p. 5OBJ:1-1 TYPE:U68.L. L. Bean softened the impact of downsizing on its employees through_____.a.early retirement and “sweetened” voluntary separation programsb.outplacementc.hefty benefitsd.aggressive career counselingANS:APTS:1REF:p. 17OBJ:1-5 TYPE: K69.In absolute terms, which country in the world is most productive?a.Japanb.United Statesc.Germany

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d.SwedenANS:BPTS:1REF:p. 20OBJ:1-5 TYPE: K70.Today about _____ %of women in the U.S. 16 years of age and older participate in the work force.a.40b.80c.30d.60ANS:DPTS:1REF:p. 24OBJ:1-6 TYPE: KESSAY1.What are the seven competitive challenges facing human resources management departments?ANS:Students should expand upon the following:1. Responding strategically to changes in the marketplace;2. Competing, recruiting and staffing globally;3. Setting and achieving corporate social responsibility and sustainability goals;4. Advancing HRM with technology;5. Containing costs while retaining top talent and maximizing productivity;6. Responding to the demographic and diversity challenges of the workforce;7. Adapting to educational and cultural shifts affecting the workforce.PTS:1REF:pp. 6-26OBJ:1-1 | 1-2 | 1-3 | 1-4 | 1-5 | 1-6 | 1-72.Discuss the concept of downsizing and some of the hidden costs associated with it.ANS:Downsizing is defined as the planned elimination of jobs.Employers have used downsizingextensively during the Great Recession.It has now become a tool continually used by companies toadjust to changes in technology, globalization, and the firm’s business direction.Some of the hiddencosts associated with downsizing include:1. severance and rehiring costs;2. accrued vacation and sick day payouts;3. pension and benefit payouts;4. potential lawsuits from aggrieved workers;5. a loss of institutional memory and trust in management;6. a lack of staff when the economy rebounds;7. survivors who are risk averse, paranoid, and focused on company politics.PTS:1REF:p. 17OBJ:1-53.Explain the major activities for which the HR manager is typically responsible.ANS:1. Strategic advice and counsel.The HR manager serves as in-house counsel to managers,supervisors and executives.They may help in the areas of legal compliance and ethicaldecision-making, as well as serving on compensation committees.2.Service.HR managers perform such services as recruiting, selecting, testing, and planning andconducting training programs.

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