Human Capital Management
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Course Introduction
Human Capital Management explores the strategic approach to acquiring, developing, managing, and optimizing an organizations workforce. This course examines the principles and practices of talent management, workforce planning, recruitment, training and development, performance appraisal, compensation, and employee engagement. Students will analyze how effective human capital management aligns with organizational goals to drive productivity, foster innovation, and sustain competitive advantage. Emphasis is placed on leveraging data-driven decision-making, contemporary HR technologies, and ethical considerations to create positive workplace cultures and enhance employee experience.
Recommended Textbook
Human Resource Management 14th Edition by
Robert L. Mathis
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Chapter 1: Human Resource Management in Organizations
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Q1) Describe the Human Resource Certification Institute (HRCI) certification.
Answer: The most widely known human resource certifications are the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR), both sponsored by the Human Resource Certification Institute (HRCI). Annually, thousands of individuals take the certification exams. HRCI also sponsors a Global Professional in Human Resources (GPHR) certification.
Certification from HRCI also exists for global HR professionals in the GPHR. Global certification recognizes the growth in HR responsibilities in organizations throughout the world and covers appropriate global HR subject areas noted through SHRM.
Q2) A person with the responsibility of performing a variety of human resource activities is known as a human resource specialist.
A)True
B)False
Answer: False
Q3) Define human resource management.
Answer: Human resource management is the design of formal systems in an organization to manage human talent for accomplishing organizational goals.
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Chapter 2: Human Resources Strategy and Planning
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Q1) Define strategic planning.
Answer: Strategic planning is the process of defining a strategy, or direction, and making decisions on how to allocate the resources of the organization to pursue this strategy.
Q2) Which of the following is a consequence that employers face when they violate the WARN Act?
A) Delisting from the stock exchange
B) Revocation of trade licenses
C) Imposition of trade embargo
D) Incurring heavy fines
Answer: D
Q3) The formula for calculating the potential ROI for a new HR activity = operating cost for a new or enhanced system for a time period + one-time cost of acquisition and implementation/value of gains from productivity improvements for the time period.
A)True
B)False
Answer: False
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Chapter 3: Equal Employment Opportunity
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Q1) Which of the following advertisements for recruitment is most likely to be considered illegal?
A) "Experienced writers required"
B) "Enthusiastic radio jockeys needed"
C) "Wanted: Professors with educational background in economics"
D) "Young store executives needed"
Answer: D
Q2) Which of the following is true of the U.S. Department of Labor?
A) The Equal Employment Opportunity Commission is a part of the Department of Labor.
B) It can enforce employment laws for employers in public workplaces but private workplaces are beyond its jurisdiction.
C) The employment requirements set out by Executive Orders for federal contractors and subcontractors is beyond the scope of the Department of Labor.
D) It has broad enforcement power and oversees compliance with many employment-related laws.
Answer: D
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Chapter 4: Workforce, Jobs, and Job Analysis
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Q1) Describe the components of a job description.
Q2) A functional definition of what is done in a job can be generated by examining the three components of data, people, and things.
A)True
B)False
Q3) A _____ is composed of individuals who are separated geographically but linked by communications technology.
A) vertical team
B) special-purpose team
C) self-directed team
D) virtual team
Q4) _____is the extent of individual freedom and discretion in the work and its scheduling.
A) Autonomy
B) Skill variety
C) Task identity
D) Task significance
Q5) Define workflow analysis.
Q6) Explain workflow analysis.
Page 6
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Chapter 5: Individualorganization Relations and Retention
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Q1) Which of the following is a replacement cost that is caused by turnover in a company?
A) Cost of training materials
B) Employee referral fees
C) Overtime paid to existing employees
D) Time spent in an exit interview
Q2) _____ is defined as the percentage of employees at the beginning of a period who remain at the end.
A) Retention rate
B) Turnover rate
C) Absenteeism ratio
D) Productivity rate
Q3) What is an exit interview? What purpose does it serve?
Q4) What is meant by job satisfaction and organizational commitment? What are the advantages of a satisfied and committed workforce?
Q5) The number of absences per 100 employees each day is known as the:
A) inactivity rate.
B) incidence rate.
C) severity rate.
D) compensation rate.
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Chapter 6: Recruiting and Labor Markets
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Q1) Which of the following is a defining characteristic of regular staffing?
A) It uses workers who are traditional employees.
B) It uses independent contractors.
C) Companies can utilize the "try before you buy" approach.
D) Companies can avoid litigation associated with the termination of workers.
Q2) Employment agencies typically have their own workforce, which they supply by contract to employers with jobs.
A)True
B)False
Q3) Write a short note on Internet job boards.
Q4) Intensive recruiting may take the form of a vigorous recruiting campaign aimed at hiring a given number of employees.
A)True
B)False
Q5) An automated job posting system that automatically contacts internal candidates by company e-mail is an effective method for keeping good employees from looking outside the company for advancement.
A)True
B)False
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Chapter 7: Selecting Human Resources
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Q1) A new Gulf Coast casino plans to hire over 1,000 employees for its new resort. The casino's HR department requires applicants to complete an online questionnaire which is later analyzed using computer software and only those applicants who have previously worked in hotels and casinos are considered eligible for the next step in the hiring process. This is an example of a:
A) compensatory approach to selection.
B) realistic job preview.
C) preemployment screening process.
D) multiple hurdles approach to selection.
Q2) Reliability is the ability of a test to produce the same results repeatedly over time.
A)True
B)False
Q3) The ADA prohibits the use of preemployment medical exams, except for drug tests, until a job has been conditionally offered.
A)True
B)False
Q4) Discuss the usefulness of honesty and integrity tests as selection tests.
Q5) Define situational judgment tests.
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Chapter 8: Training Human Resources
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Q1) Evaluating training at the behavioral level means measuring the effect of training on job performance through observing job performance.
A)True
B)False
Q2) What are some of the common classifications of training?
Q3) Cross training occurs when:
A) people are trained to do more than one job.
B) the training takes place outside the employing organization.
C) e-learning is used as the primary mode for delivering the content of a training.
D) the training occurs through interactions and feedback among employees.
Q4) For employers, one of the advantages of cross training employees is:
A) narrowed job jurisdictions.
B) increased employee productivity without pay raises or bonuses.
C) better union relations.
D) employee development.
Q5) Assessing organizational training needs is the execution phase of a training plan.
A)True
B)False
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Chapter 9: Talent, Careers, and Development
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Q1) It is best for an organization to limit its intensive talent management efforts to its high-potential employees, to avoid resentment among the employees.
A)True
B)False
Q2) The high rate of turnover of nursing staff is a major concern at Briar Mountain Regional Medical Center. Many experienced nurses resist moving into management, but exit interviews indicate that many of the best nurses leave Briar Mountain because they feel they cannot advance in the organization. Which of the following steps would be most efficient in reducing the turnover of nursing staff?
A) Hiring nurses who are later in their careers, where advancement is less of a concern to them
B) Offering to pay tuition for nurses who wish to enroll in MBA programs so they are more qualified to take managerial positions
C) Implementing a dual-career ladder for nurses
D) Providing retention bonuses and significant pay raises tied to seniority
Q3) What is the difference between organization-centered and individual-centered career planning? How can organizations benefit from individual career planning ?
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Chapter 10: Performance Management and Appraisal
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Q1) The performance management process starts by identifying the strategic goals an organization needs to accomplish to remain competitive and profitable.
A)True
B)False
Q2) Describe supervisory rating of subordinates, employee rating of managers, team/peer rating, self-rating, and outsider rating.
Q3) The recency effect occurs when a rater gives greater weight to information received first when appraising an individual's performance.
A)True
B)False
Q4) The _____ occurs when a rater gives greater weight to the latest events when appraising an individual's performance.
A) leniency error
B) recency effect
C) primacy effect
D) central tendency
Q5) Describe the entitlement approach and the performance-driven approach.
Q6) Describe the different types of performance information.
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Chapter 11: Total Rewards and Compensation
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Q1) Which of the following is typically the first step in the compensation administration process?
A) Job analysis
B) Job evaluation
C) Compensation philosophy
D) External focus
Q2) The entitlement philosophy assumes that compensation decisions reflect performance differences.
A)True
B)False
Q3) Benchmark jobs are _____.
A) all blue-collar jobs that require high skill and application
B) jobs that are found in many other organizations
C) all white-collar jobs that require high skill and application
D) jobs that are not commonly found in many other organizations
Q4) Define job evaluation.
Q5) An individual whose pay is above the range for a job is referred to as a green-circled employee.
A)True
B)False
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Chapter 12: Variable Pay and Executive Compensation
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Q1) Explain profit sharing.
Q2) Describe the different types of sales compensation plans.
Q3) Describe the primary objectives of profit sharing plans.
Q4) Which of the following is an allocation choice in profit-sharing plans?
A) Fixed percentage of profits
B) Based on years of service
C) Sliding percentage based on sales
D) Unit profits
Q5) Which of the following is an advantage of establishing employee stock ownership plans?
A) Employees are not dependant on the employers for their retirement benefits.
B) Firms can receive favorable tax treatment.
C) Firms have lesser control over organizational productivity.
D) The employees can purchase shares of company stock for an unlimited period of time.
Q6) Which of the following is typically classified as an organizational incentive?
A) Commissions
B) Group team results
C) Executive stock options
D) Cost reductions
Page 14
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Chapter 13: Managing Employee Benefits
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Q1) Dennis, the HR head of a company, is trying to convince the top management of the company to approve an elder-care assistance program. Which of the following, if true, would be a strong argument in favor of the program?
A) The program would exempt the company from other employee benefits.
B) The program would help in employee retention.
C) The program would be a contribution to the society.
D) The program would reduce the number of existing lawsuits against the company.
Q2) The Family and Medical Leave Act (FMLA) defines a _____ as one requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.
A) medical leave event
B) serious health condition
C) life-threatening illness
D) qualifying event
Q3) An employee would have limited access to a company's health plan if the employee's spouse works for another company that offers health insurance.
A)True
B)False
Q4) Elaborate on the two main types of retirement benefits?
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Chapter 14: Risk Management and Worker Protection
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Q1) The purpose of a material safety data sheet (MSDS) is to:
A) track the amount of chemicals or such hazardous materials that are used on the job.
B) record information regarding the chemical composition of hazardous substances available to employees.
C) record cases where workers exposed to hazardous substances have been injured.
D) provide employees with antidotes to be taken if exposed to hazardous materials.
Q2) While reviewing the safety statistics of his company, Gerard, a newly appointed HR manager, notices that the number of slip and fall accidents on the company floor has increased by more than 20 percent over the last year. Which of the following should Gerard do first?
A) Train the employees to effectively follow all safety rules.
B) File a complaint against the floor manager for not properly enforcing safety rules.
C) Investigate the likely causes for the increase in the slip and fall accidents.
D) Recommend changes that could reduce the number of accidents to the floor manager.
Q3) How can organizations monitor and evaluate their safety efforts?
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Chapter 15: Employee Rights and Responsibilities
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Q1) According to the Data Protection Act, which of the following should be avoided by the employers?
A) Restricting access to employee records
B) Informing employees about the types of data being retained
C) Keeping as much information and personal details as possible
D) Purging employee records of outdated data
Q2) If an employer deliberately makes conditions intolerable for an employee as an attempt to force an employee to resign, the employer is guilty of wrongful discharge.
A)True
B)False
Q3) The concept of distributive justice primarily stresses on:
A) perceived fairness of the processes used to make decisions about employees.
B) perceived fairness in the allocation of outcomes among employees.
C) perceived fairness about how a person interacts with others.
D) perceived fairness about avoiding open-door policies.
Q4) Differentiate between upward and downward communication in workplaces.
Q5) Explain the doctrine of employment-at-will and its exceptions. What is the relationship between this doctrine and the employment agreement?
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Chapter 16: Unionmanagement Relations
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Q1) During a contract negotiation, the negotiator for a union brings up the issue of changing the manner in which work is scheduled. Which of the following is true of this situation?
A) The management need not negotiate on this issue because it is a permissive issue.
B) The management needs to negotiate on this issue as it is a mandatory issue.
C) This is a non-negotiable issue because scheduling is part of the management's rights.
D) This is an illegal issue and the management may refuse to negotiate.
Q2) Codetermination refers to the practice whereby union or worker representatives are given positions on a company's board of directors.
A)True
B)False
Q3) In the United States, unions have typically focused primarily on:
A) avoiding changes that can replace workers with machines.
B) increasing industrial democracy in workplaces.
C) wages, benefits, job security, and working conditions.
D) integration with ruling governmental and political power.
Q4) What is the current state of labor union activity in the United States?
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