Chapter 1

Question 1

competitive advantage

Answer 1

Answer
doing something differently from the competition that leads to
outperformance and success

Question 2

The six functions of human resource management

Answer 2

Staffing, training and development, performance management, Health and safety, employee management relations, rewards and benefits

Question 3

Training and development

Answer 3

the HR function that refers to the growth of employee capabilities through both formal
and informal activities; also includes career planning, organizational development, and
legal compliance

Question 4

direct financial compensation

Answer 4

Answer
compensation received in the form of salary, wages, commissions, stock
options, or bonuses

Question 5

total rewards

Answer 5

Answer
the sum of all the rewards employees receive in exchange for their time,
efforts, and performance

Question 6

nonfinancial compensation

Answer 6

Answer
rewards and incentives given to employees that are not financial in nature
including intrinsic rewards received from the job itself or from the work
environment

Question 7

employee handbooks

Answer 7

Answer
print or online materials that document the organization’s HM policies
and procedures

Question 8

Question

staffing

Answer 8

Answer
the HR function that refers to the process of planning, acquiring, deploying,
and retaining employees that enables the organization to meet its talent
needs and execute its business strategy

Question 9

Question

talent philosophy

Answer 9

Answer

a system of beliefs about how its employees should be treated

Question 10

performance management

Answer 10

Answer
the HR function that refers to aligning individual employees’ goals and
behaviors with organizational goals and strategies, appraising and
evaluating past and current behaviors and performance, and providing
suggestions for improvement

Question 11

human resource management

Answer 11

Answer
the organizational function responsible for attracting, hiring, developing,
rewarding, and retaining talent

Question 12

rewards & benefits

Answer 12

Answer
the HR function that refers to the sum of all of the rewards employees
receive in exchange for their time, efforts, and performance

Question 13

Question

indirect financial compensation

Answer 13

Answer
all the tangible and financially valued rewards that are not included in •
direct compensation, including free meals, vacation time, and health
insurance

Question 14

strategic risk

Answer 14

Answer
risk related to talent strategy, company culture, ethics, investments in
people, and the implementation of change initiatives

Question 15

health & safety

Answer 15

Answer
the HR function that refers to topics ranging from wellness, fire and food
safety, ergonomics, injury management, disaster preparedness, industrial
hygiene, bullying, and workplace violence

Question 16

employee-management relations

Answer 16

Answer
the HR function that refers to industrial relations, more commonly known
as unionized employment situation

Question 17

human resource strategy

Answer 17

Answer

links the entire human resource function with the firm’s business strategy

Question 18

compliance risk

Answer 18

Answer
risk related to employment-related decisions that can have legal
ramifications, particularly in the areas of diversity, health and safety, union
relations, whistleblowers, and harassment

Question 19

financial risk

Answer 19

Answer
risk related to an organization’s workforce costs and productivity directly
through compensation, benefits, turnover, overtime, and time-to-hire and
indirectly through errors, accidents, delays, and lost production

Question 20

operational risk

Answer 20

Answer
risk related to the speed and the effectiveness of talent acquisition,
development of employees’ skills, and the identification and retention of
top performers

Question 21

business strategy

Answer 21

Answer

defines how the firm will compete in its marketplace