Deck 9: Human Resource Management

Question 1

Howard thought his expense control problems were resolved when he decided he would hire sales clerks from the local high school and pay them minimum wage at his golf shop.Which of the following statements is most likely to be true of Howard's decision?

A) He will probably have higher employee turnover.
B) He will probably have lower employee absenteeism.
C) He will probably have lower employee turnover.
D) He will probably have better employee productivity.
E) He will probably achieve higher organizational commitment.

Answer 1

A
Explanation: To control costs,retailers often hire people with little or no experience to work as sales associates,bank tellers,and waiters.High turnover,absenteeism,and poor performance often result from this use of inexperienced,low-wage employees.

Question 2

Decentralization increases efficiency.

Answer 2

False
Explanation: Centralization increases efficiency.

Question 3

An organizational culture is the set of values,traditions,and customs of a firm that guides employee behavior.

Answer 3

True
Explanation: Having a strong organization culture that gives employees a sense of pride is effective.

Question 4

What would the employee turnover be if the store had ten positions for management trainees and four employees voluntarily left their jobs during the year?

A) 60%
B) 40%
C) 140%
D) 160%
E) There is not enough data to determine a correct percentage

Question 5

Centralization makes it easy for a retailer to adapt to local market conditions.

Question 6

_____ is expressed as a retailer's sales or profits divided by the number of employees.

A) Human resource management
B) Employee turnover
C) Employee productivity
D) Operation management
E) Organizational management

Question 7

Employee productivity is retail sales or profit multiplied by the number of employees.

Question 8

The legal/political system in countries often dictates the human resource management practices that retailers can use.

Question 9

An entry barrier is a concealed hindrance that makes it difficult for minorities and women to be promoted beyond a certain level.

Question 10

Flextime is a job scheduling system that enables employees to choose the times they work.

Question 11

Which of the following does not describe the organization of a single-store retailer?

A) Each employee must perform a specific task assigned to them.
B) The owner-manager is responsible for all management tasks.
C) Limited number of employees allows little scope for specialization.
D) Coordinating and controlling employee activities is easier in a small store than in a large chain of stores.

Question 12

When a retailer responds to an economic downturn by putting a freeze on salaries,laying off sales associates,and hiring more part-time associates,the employees tend to respond with:

A) poor customer service.
B) lower job turnover.
C) higher levels of job satisfaction.
D) increased motivation.
E) increased effort.

Question 13

Which of the following is a result of hiring inexperienced,low-wage employees?

A) Sales increase
B) Better customer loyalty
C) Extensive employee feedback
D) Higher labor expenses
E) High employee turnover

Question 14

The merchandise management task of a retail firm includes buying merchandise,controlling inventory,and pricing merchandise.

Question 15

Which of the following is the formula for calculating employee turnover?

A) Number of employees voluntarily leaving their jobs during the year/Number of positions
B) Number of employees fired from their jobs during the year/Total number of employees
C) Number of employees voluntarily leaving their jobs during the year/Total number of employees
D) Number of employees fired from their jobs during the year/Number of positions
E) Number of positions/Total number of employees

Question 16

The _____ identifies the activities to be performed by specific employees and determines the lines of authority and responsibility in the firm.

A) organization culture
B) organization strategy
C) organization structure
D) market situation
E) market positioning

Question 17

Rebecca works at a regional department store.Due to her artistic skills,she is responsible for creating floor and window displays.This is all she does at the store.Which of the following is this an example of?

A) Decentralization
B) Centralization
C) Strategic management
D) Specialization
E) Unity of tasks

Question 18

A protected class is a group of individuals who share a common characteristic as defined by the law.

Question 19

The _____ are responsible for allocating merchandise and tailoring the assortment of several categories for specific stores in a geographic area.

A) merchandising planners
B) private-label presidents
C) accountants
D) salespeople
E) human resource professionals

Question 20

Engagement is an emotional commitment by an employee to the organization and its goals.

Question 21

Which of the following is a major disadvantage of centralization?

A) Increased overhead expenses
B) Different merchandise in each store
C) Need to have standardized operating policies
D) Inability to use national advertising media
E) Inability to quickly respond to changes in local environments

Question 22

By coordinating buying across geographically dispersed stores,centralized companies can:

A) decrease efficiency.
B) increase overheads.
C) bargain for lower prices from suppliers.
D) respond well to local competition and labor markets.
E) quickly react to local market needs.

Question 23

Which of the following statements could be a problem for a retail chain with a decentralized organizational structure?

A) High employee turnover at the local store level due to lack of sense of empowerment
B) The inability to respond quickly to a local competitor who is trying to gain a price advantage
C) Missed sales because the merchandise mix does not appeal to the local taste
D) Inconsistency in assortments and prices from one store to another within the same company

Question 24

Craig works for a retailer planning what merchandise will be in the assortments,setting prices,negotiating with vendors,and planning advertising and marketing for intimate apparel.He attends fashion trade shows and travels to market in New York City nearly every month.What position in the organizational structure of a retailing firm does Craig have?

A) Merchandise planner
B) Divisional merchandise manager
C) Store manager
D) Buyer
E) Department manager

Question 25

Centralization results in _____.

A) increased overheads
B) a duplication of functions
C) a lack of coordinated effort
D) an emphasis on efficiency
E) quicker reaction to local market needs

Question 26

Which of the following is an advantage of decentralization?

A) Lowest overhead costs
B) Lowest prices from suppliers
C) Opportunity to have the most talented people make decisions for the company
D) Increased efficiency with standard operating policies for stores and merchandising
E) Ability to react quickly to specific local market shifts

Question 27

What does centralization mean for retailers?

A) All buying decisions are made regionally to best satisfy the customer.
B) The authority for decisions is delegated to corporate managers.
C) The location of corporate headquarters is located in the central part of the country.
D) The authority for decisions is made at the nearest central office.
E) Centralization decreases efficiency.

Question 28

Large retail chains can coordinate their buying and selling activities by:

A) reducing turnover in sales associates.
B) eliminating the information systems.
C) assigning employees to coordinating roles.
D) decentralizing the buying decisions.
E) increasing loss prevention efforts.

Question 29

Customer needs and preferences for consumer electronics are very similar across the U.S.What organization form would you suggest for a national consumer electronics retailer?

A) Mazur structure
B) Centralization
C) Decentralization
D) Organic
E) Hierarchical

Question 30

When decision-making is centralized in corporate management,retailers:

A) have reduced costs.
B) quickly adapt to local market conditions.
C) respond well to local competition and labor markets.
D) have decreased efficiency.
E) must involve department managers in the buying process.

Question 31

Which of the following can a centralized retailer carry out in order to combat the disadvantages associated with centralization?

A) They could allocate some of the decisions back to the stores.
B) They could hold more local meetings.
C) They could operate a one-way connection via satellite from buyers to stores.
D) They could offer better customer service creating customer loyalty.
E) They could rely more on their information systems to react to local market conditions.

Question 32

A retailing chain in which local store managers make most of the retailing decisions instead of the corporate headquarters can be described as:

A) formalized.
B) integrated.
C) generalized.
D) centralized.
E) decentralized.

Question 33

Customer needs and preferences for grocery products differ considerably across the U.S.What would you suggest a national supermarket chain do to compete with decentralized grocers?

A) Utilize information systems.
B) Use the Mazur structure.
C) Become decentralized.
D) Incorporate organic and natural foods.
E) Consider hierarchical stores for grocery planning.

Question 34

_____ occurs when the authority for decisions is assigned to lower levels in the organization.

A) Decentralization
B) Specialization
C) Centralization
D) Formalization
E) Span of control

Question 35

Which of the following operations can provide an opportunity to have the best people make decisions for an entire corporation?

A) CES - Central Efficiency Standards
B) Management information systems
C) Centralization
D) Decentralization
E) Central systems operations

Question 36

Candace works for a national department store chain.She tailors the assortment,and allocates women's shoes to specific stores.She learned,in recent years,to follow weather patterns and watch for the popularity of boots within the different regions.What position does Candace hold in the organizational structure?

A) Sales associate
B) Merchandise manager
C) Buyer
D) Manager
E) Planner

Question 37

The design of organizational structure needs to match the firm's strategy.Which of the following statements shows a mismatch?

A) Costco with a competitive advantage of low cost tries to minimize the number of employees by assigning decisions to a few people at corporate headquarters.
B) Walmart targeting price-sensitive customers centralizes organization structures.
C) Retailers targeting high-fashion clothing customers have more managers.
D) Best Buy built a competitive advantage based on low cost by allowing decision-making at the local store level.
E) High-fashion clothing retailers tailor their merchandise and service to meet the needs of local markets.

Question 38

Which of the following statements is true of centralization?

A) Centralization typically increases costs.
B) Retailer stores are required to hire more managers with centralization.
C) Centralization allows management to better tailor its offering to the needs of the local market.
D) Centralization provides the opportunity to have the best people make decisions for the entire corporation.

Question 39

Which of the following activities is not typically performed in the merchandise division?

A) Control of inventory levels
B) Hiring and training sales associates
C) Determination of what merchandise will be procured from vendors
D) Planning assortment and stock levels
E) Pricing of merchandise

Question 40

Merchandising,planning,marketing,and finance positions for a national chain are housed:

A) predominantly at the corporate headquarters.
B) at the individual store level.
C) at the back-of-the-house.
D) at the regional distribution centers.
E) at decentralized locations.

Question 41

Kiran took a position as an assistant buyer in a regional department store.Delighted with the new life she has outside of college,she was thrilled to see the work environment filled with many young,progressive free-thinkers working together for a common goal.The overall working environment of young,fast-paced,and forward-moving lifestyle of this merchandising department can be considered part of the:

A) corporate policy.
B) organizational culture.
C) corporate procedures.
D) brand loyalty.
E) procedural justice.

Question 42

Build-A-Bear Workshops is a unique specialty store that teaches its customers how to build a cuddly stuffed animal by moving through a series of stations located in the store.Each "bear" is unique.The core of the business is light-hearted and kid-oriented.Even the CEO calls herself Chief Executive Bear.The focus on fun,creativity,and humor can be considered a part of the _____.

A) corporate procedures
B) corporate structure
C) organizational culture
D) pricing policy
E) human resource planning

Question 43

Val is concerned that the commissioned salespeople in her fur shop are not keeping the store clean and merchandise properly displayed.What should she do?

A) Increase the sales commissions for her salespeople.
B) Change the incentives from commissions to bonuses.
C) Stock less merchandise.
D) Fire the salespeople and hire new ones.
E) Change the compensation to strictly an hourly wage.

Question 44

Which of the following HR activities can build a competitive advantage for retailers?

A) Work-life balance programs
B) Selective hiring and training
C) Policies and compensation
D) Compensation and incentives
E) Incentives and benefit programs

Question 45

The day begins in each Wal-Mart store with the manager leading the famous Wal-Mart cheer.The cheer is a fun and energetic way to remind employees that the customer is always number one.For years,it has been the one way that the company has shared its enthusiasm and can be considered part of the _____.

A) organization structure
B) corporate structure
C) organization culture
D) customer loyalty
E) sales promotion policy

Question 46

Mason is concerned that the salespeople in his men's clothing store are not spending enough time selling merchandise to customers.What should he do?

A) Increase the sales commissions for his salespeople.
B) Stock less merchandise.
C) Change the incentives from commissions to straight salary.
D) Fire the salespeople and hire new ones.
E) Guarantee a minimum compensation.

Question 47

Which of the following is an additional compensation that is periodically awarded to employees on the basis of their performance?

A) Bonus
B) Profit sharing
C) Gratuity
D) Stock option
E) Superannuation

Question 48

_____ involves undertaking marketing research to understand what potential and current employees are seeking as well as what they think about the retailer.

A) Employment selection
B) Employment training
C) Employment branding
D) Selective hiring
E) Aligning goals

Question 49

The Home Depot employees are supporters of Habitat for Humanity.Many associates go to the building sites on weekends;they voluntarily share their knowledge,expertise,and muscle.Volunteering is not a requirement for store associates,yet many participate in the exercise.The spirit of volunteering is an example of The Home Depot's:

A) corporate policy.
B) organizational culture.
C) corporate procedures.
D) brand loyalty.
E) procedural justice.

Question 50

On payday,June received his weekly salary plus 2% of each sale she made during the pay period.Which of the following is this an example of?

A) Superannuation
B) 401K
C) Gratuity
D) Stock option
E) Commission

Question 51

Organization cultures are developed and maintained through _____.

A) ideas and theories
B) stories and symbols
C) advertising campaigns
D) public relation campaigns
E) interaction with customers

Question 52

Lexus works in the handbags department of Nordstrom.She takes 3% on all purchases.She has become one of the top salespeople in her store bringing home a hefty paycheck.This 3% is best referred to as her:

A) superannuation.
B) commission.
C) gratuity.
D) stock option.
E) bonus.

Question 53

As the manager of the home department at a large retail store,Madison looks forward to a periodic _____,which she receives on the basis of her department's performance relative to its budgeted sales and profits.

A) bonus
B) commission
C) gratuity
D) dividend payout
E) profit share

Question 54

Which of the following statements is a drawback of incentives?

A) Most employees dislike incentives.
B) It decreases organizational commitment.
C) It may cause employees to ignore other work tasks and obligations.
D) Incentives work when standard pay is low.
E) Most employees believe that incentives are mere tokens from the management,not really an appreciation of their performance.

Question 55

Digger's shoe department was a successful part of the store.Always busy,Digger encourages his commission based salespeople to satisfy the customers' needs and sell,sell,and sell.As a result,the stockroom was a horrible mess by the end of the day.What should Digger do to get the commissioned employees to help with this mess?

A) Increase their salary.
B) Increase their commission percentage.
C) Change employees from commission to hourly wages.
D) Change employees from commission to salary.
E) Combine a salary with a commission.

Question 56

Which of the following is an example of an incentive that retailers most commonly use?

A) Health care
B) Educational allowance
C) Bonus
D) Child care
E) Estate planning

Question 57

The most fundamental method of coordinating the work activities of retail employees is:

A) by not having close supervision to smother employee activities.
B) by paying them competitively.
C) by promoting a weak organization culture.
D) through written policies that list specific expectations.
E) by emphasizing trade promotions.

Question 58

Tony's company puts a huge emphasis on taking care of the associates.The store manager knows all employees by name and takes the time to talk with them about their lives.The human resources policies allow for liberal time off.Department supervisors support all breaks and work to vary schedules to fit the associates' needs.This focus on keeping the associates happy and supported can be considered part of the _____.

A) corporate procedure
B) corporate structure
C) organizational culture
D) pricing policy
E) human resource planning

Question 59

Which of the following statements does not describe employment branding?

A) It is a marketing program that attracts the "best and brightest" potential employees.
B) The marketing department is in charge of developing a marketing program targeted toward employees.
C) It involves undertaking marketing research to understand what potential employees are seeking.
D) It involves developing a value proposition and an employment brand image.
E) It communicates the brand image to potential employees.

Question 60

What happens when retailers rely completely on written policies to obtain the coordination of employees?

A) Employee motivation increases.
B) Employee attention span increases.
C) Communication between management and employees occurs more often.
D) Employee initiative and motivation decreases.
E) It becomes easier to develop and maintain a corporate culture.

Question 61

Nina's office was made up of a mostly all male staff.All worked well together and no one really even noticed the skewed ratio until one day when one of the men downloaded a lewd screensaver for all to see when they arrived in the office.Nina was infuriated.This situation can be considered:

A) a violation of employee privacy.
B) political individualism.
C) an instance of sexual harassment.
D) an unethical hiring practice.
E) an unethical instance of distributive justice.

Question 62

Employment discrimination on which of the following basis is legal in the United States?

A) Gender
B) Age
C) Educational qualification
D) Religious beliefs
E) Sexual orientation

Question 63

_____ is an invisible barrier that makes it difficult for minorities and women to be promoted beyond a certain level.

A) A glass ceiling
B) Outsourcing
C) Empowerment
D) An entry barrier
E) Economy of scale

Question 64

When the CEO of The Home Depot visits stores,he wears an orange apron like all store associates.As he pushes carts from the parking lot,he chats with the high school students typically assigned to the task.By doing this,he is able to learn about the store and make the young associates feel important.This is The Home Depot's way of:

A) creating store evaluations.
B) empowering young associates.
C) encouraging young associates to consider The Home Depot for a career.
D) reducing status differences.
E) finding out about the store management.

Question 65

Mimi is a single parent working at a local hairdresser.Her children start school early and get out early from school,making the typical workday a difficult task for her.To assist,the owner offered her to begin her day at 7:30 a.m.and leave at 4:00 p.m.making it easier for Mimi to work her job,as well as maintain a household.Mimi's new schedule is an example of:

A) time sharing.
B) task empowerment.
C) balanced tasking.
D) job sharing.
E) flextime.

Question 66

Mrs.Herrin and Mrs.Otwell teach a second grade class.Both have young children at home and both have teaching careers.To help them balance this lifestyle,the principal suggested they both work part-time yet cover the responsibilities of the one teaching position.This would be an example of:

A) time sharing.
B) task empowerment.
C) balanced tasking.
D) job sharing.
E) flextime.

Question 67

Which of the following statements best describes empowerment?

A) It is what allows the district management to focus on a few stores.
B) It is when employees abuse their positions as associates.
C) It is the authority of the upper management over important decisions.
D) It is when managers share power and decision-making authority with employees.
E) It is a type of management that focuses on hiring powerful people.

Question 68

Antonio was new to his position just out of college.He was assigned his tasks,knew his trainer,his supervisor,and his responsibilities.He was also assigned time to meet with Julio,an older gentleman who had grown 20 years with the company in another department.They meet every few weeks,talk about family,comfort with the job,goals of the company,and problems with the position.Who is Julio to Antonio?

A) Mentor
B) Trainer
C) Supervisor
D) Manager
E) Leader

Question 69

A retailer can reduce employee turnover by:

A) increasing its dollar sales.
B) reducing its fixed costs.
C) paying all employees the same.
D) building an atmosphere of mutual commitment.

Question 70

Marie is a single mother of two adolescent children.In order for her to be home when her children arrive from school,her supervisor allowed her to start her day an hour earlier.This is an example of:

A) flextime.
B) job sharing.
C) cross training.
D) job flexibility.
E) job scaling.

Question 71

Alex works in the accessory department of a large regional chain of stores.Since his supervisor _____ him,he has been able to provide even better customer service because he doesn't have to get an okay on a personal check or get approval for an exchange on merchandise.

A) sanctioned
B) delegated
C) appointed
D) empowered
E) functionalized

Question 72

Define engagement.

Question 73

At work,Meesha took part in a training seminar during which each participant was asked to be blindfolded for an hour in order to see what it was like to be a blind employee.Meesha was participating in a(n):

A) empowerment program
B) career track training program
C) mentoring program
D) program for managing diversity
E) focus group

Question 74

A retailer can retain employees and build a mutual commitment best by:

A) empowering employees.
B) reducing fixed costs.
C) treating employees all the same.
D) promoting the company.
E) improving supervision by retraining supervisors.

Question 75

Why is managing diversity beneficial to a company?

A) It leads to a more homogenized workforce.
B) It is mandatory under federal law.
C) U.S.demographics reveal a more homogeneous population and companies should follow suit.
D) Retailers can better understand and respond to the needs of their customers.

Question 76

What can retailers do to help associates balance careers and family?

A) Offer job sharing opportunities.
B) Offer higher hourly pay.
C) Offer commission based pay.
D) Foster partnering relationships between associate and supervisors.
E) Manage diversity.

Question 77

Managing diversity means:

A) simply obeying all equal employment opportunity laws.
B) trying to get everyone to think and act alike to avoid problems.
C) using the same approach to deal with each employee.
D) increasing the collective productivity of the workforce.
E) accepting and valuing how employees differ from each other.

Question 78

With _____,two employees are voluntarily responsible for a job that was previously held by one person.

A) cross training
B) job sharing
C) flextime
D) job rotation
E) job scaling

Question 79

A company that carefully selects its recruits,develops employee skills through training,shares information about company shares,and encourages employees to take additional classes on customer service is trying to:

A) increase organizational turnover.
B) decrease its fixed costs.
C) centralize its organization structure.
D) decrease employee commitment.
E) reduce employee turnover.

Question 80

Which of the following statements is true of laws relating to compensation?

A) It requires that firms pay the same work pay for men and women.
B) It requires that firms pay the same work pay for all employees of a department.
C) It protects the organization's investment on its employees.
D) It places restrictions on the salaries drawn by the top management.
E) It monitors the financial investments made by the top management of the organization.