BUS243 Chapter 2

Which scenario exemplifies an individual in the external labor market?

• Jason, a contract worker, working for a certain period specified in a written contract

• Arman, a temporary worker, being paid by a company for his services

• Annabelle, an engineering graduate, looking for a job

• Jerusha, an employee, going through training

Answer explanation

The external labor market consists of individuals who are actively seeking employment. The number and kinds of people in the external labor market determine the kinds of human resources available to an organization (and their cost). In this case, the example of Annabelle, an individual who is looking for a job, exemplifies a member of the external labor market.

Identify the correct statement regarding the composition of the U.S. labor force during the projected 2018–2028 period.

• Despite a small increase in the number of young workers, the overall workforce will be aging.

• The segment of the workforce nearing retirement age will hold steady.

• The largest proportion of the labor force is expected to be in the 16- to 25-year age group.

• The labor force is expected to grow at a greater rate than at any other time in U.S. history.

Answer explanation

It is expected that despite a small increase in the number of young workers, the overall workforce will be aging. Young workers between the ages of 16 and 24 will actually be fewer in number. This combination of trends will cause the overall workforce to age.

What is one reason for creating high-performance work systems?

• There is a drive toward low-cost strategy in the labor market.

• Employees prefer the implementation of a standard 40-hour workweek.

• ompetitors are looking for ways to standardize prices in their respective industries.

• Customers are demanding high-quality and customized products.

Answer explanation

As the nature of the workforce and the technology available to organizations changed, so have the requirements for creating a high-performance work system. Customers are demanding high-quality and customized products, employees are seeking flexible work arrangements, and employers are looking for ways to tap people's creativity and interpersonal skills.

What is a characteristic of current-day high-performance work systems?

• mismatches in technical system and social system

• ncrease in individual assignments

• employee empowerment in decision making

• centralized decision making

Answer explanation

Among the trends that are occurring in today's high-performance work systems are reliance on knowledge workers, empowerment of employees to make decisions, and the use of teamwork.

Which statement is correct regarding skilled knowledge workers?

• They do not have considerable autonomy to make decisions.

• They are most likely to experience a lack of opportunities in a slow economy.

• They do not have a lot of job opportunities because employers can simply order these employees to perform tasks.

• They are not easily replaced because they own the knowledge that the company requires to produce its products.

Answer explanation

Knowledge workers are in a position of power because they own the knowledge that the company needs in order to produce its products and services, and they must share their knowledge and collaborate with others in order for their employer to succeed. Replacing these employees is difficult and time consuming. They have many job opportunities even in a slow economy.

Which statement is true of employee empowerment?

• Proper training must be provided only to supervisors so that they can exert their wider authority.

• Managers should ensure that employees are not linked to resources outside the organization, such as customers.

• Employee empowerment prevents holding employees accountable for the products and services they developed.

• Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

Answer explanation

Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service. Jobs must be designed to give employees the necessary latitude for making a variety of decisions.

Kwame is a marketing manager for a publishing company. In addition to his regular marketing job duties, Kwame works in tandem with his co-workers to schedule work, select new team members, and coordinate printing tasks. This style of work is best described as

• centralized.

• knowledge work.

• teamwork

• a virtual team.

Answer explanation

Teamwork is the assignment of work to groups of employees with various skills who interact to assemble a product or provide a service. Work teams often assume many activities traditionally reserved for managers, such as selecting new team members, scheduling work, and coordinating work with customers and other units of the organization.

The specific ways in which human resource professionals support an organization's strategy vary according to

• their level of involvement and the nature of the strategy.

• the location of the organization's corporate headquarters.

• the government regulations of the countries in which the organization does business.

• the organization's market share in the industry.

Answer explanation

The specific ways in which human resource professionals support the organization's strategy vary according to their level of involvement and the nature of the strategy. Strategic issues include emphasis on quality and decisions about growth and efficiency. Human resource management can support these strategies, including efforts such as quality improvement programs, mergers and acquisitions, and restructuring.

Call-It, a cell phone manufacturer, purchases Electronic Exchange, a company that produces cell phone batteries. This scenario exemplifies

• an acquisition.

• consolidation.

• a partnership.

• a joint venture.

Answer explanation

An acquisition happens when one company buys another company.

The HRM function during downsizing is to terminate the workers who are

• performing multiple organizational roles.

• less valuable in their performance.

• a part of the external labor force.

• being paid the highest salaries.

Answer explanation

Downsizing presents a number of challenges and opportunities for HRM. In terms of challenges, the HRM function must surgically reduce the workforce by cutting only the workers who are less valuable in their performance.