Chapter 1

Question 1

Competitive Advantage

Answer 1

Doing something differently from the competition that leads to outperformance and success

Question 2

Human Resource Management

Answer 2

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

Question 3

Employee Handbook

Answer 3

Print or online materials that document the organization’s HRM policies and procedures

Question 4

Total Rewards

Answer 4

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

Question 5

Compliance Risk

Answer 5

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 6

Rewards and Benefits

Answer 6

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

Question 7

Health and Safety

Answer 7

The HR functions that refers to topics ranging from wellness, fie and food safety, ergonomics, injury management, disaster preparedness, industrial hygiene, bullying, and workplace violence

Question 8

Indirect Financial Compensation

Answer 8

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

Question 9

Nonfinancial Compensation

Answer 9

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 10

Talent Philosophy

Answer 10

A system of beliefs about how its employees should be treated

Question 11

Direct Financial Compensation

Answer 11

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

Question 12

Human Resource Strategy

Answer 12

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

Question 13

Performance Management

Answer 13

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 14

Employee-Management Relations

Answer 14

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

Question 15

Staffing

Answer 15

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 16

The 6 functions of human resource management

Answer 16

Staffing
Training & Development
Performance Management
Rewards & Benefits
Health & Safety
Employee-Management Relations

Question 17

Operational Risk

Answer 17

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

Question 18

Training and Development

Answer 18

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 19

Financial Risk

Answer 19

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

Business Strategy

Answer 20

Defines how the firm will compete in its marketplace

Question 21

Strategic Risk

Answer 21

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