Test Bank for Human Resource Management, 4th
Edition, Greg L. Stewart, Kenneth G.Brown
Page 1 of 19
,Chapter: Chapter 01: Creating Value through Human Resources
True/False
1. Interestingly, good human resource practices create more satisfied employees, however, there is no
research supporting that satisfied employees work any harder or more effectively.
Answer: False
Difficulty: Easy
Ref: How Can Human Resource Management Make an Organization Effective?
2. As an organization grows, measures of organizational and human resource success change.
Answer: True
Difficulty: Medium
Ref: How Is Organizational Success Determined?
3. The entrepreneurial stage, the communal stage, the formalization stage and the elaboration stage are
the four common stages in an organization life cycle.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
4. It is critical that human resource practices, during the entrepreneurial stage of an organization’s life
cycle, focus on the development of compensation and benefit programs that increase employee
retention.
Answer: False
Difficulty: Medium
Ref: How Is Organizational Success Determined?
5. During the communal stage of an organization expansion, innovation and cooperation are important.
The most critical human resource activity is to find and hire employees.
Answer: False
Difficulty: Medium
Ref: How Is Organizational Success Determined?
Page 2 of 19
, 6. The stakeholder perspective focuses on people who affect and are affected by an organization.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
7. An organization strives to move from the formalization stage in the organizational life cycle to the
elaboration stage.
Answer: True
Difficulty: Medium
Ref: How Is Organizational Success Determined?
8. Employees, customers and owners are the only stakeholders considered by successful organizations.
Answer: False
Difficulty: Easy
Ref: How Is Organizational Success Determined?
9. Low turnover is a sign that employee needs are being met.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
10. Employees satisfied with their jobs tend to have more satisfied customers.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
11. Research demonstrates that employees who have better skills, are well paid, and feel their jobs are
secure have higher individual performance which translates into desirable organizational
improvements.
Answer: True
Difficulty: Easy
Page 3 of 19
Edition, Greg L. Stewart, Kenneth G.Brown
Page 1 of 19
,Chapter: Chapter 01: Creating Value through Human Resources
True/False
1. Interestingly, good human resource practices create more satisfied employees, however, there is no
research supporting that satisfied employees work any harder or more effectively.
Answer: False
Difficulty: Easy
Ref: How Can Human Resource Management Make an Organization Effective?
2. As an organization grows, measures of organizational and human resource success change.
Answer: True
Difficulty: Medium
Ref: How Is Organizational Success Determined?
3. The entrepreneurial stage, the communal stage, the formalization stage and the elaboration stage are
the four common stages in an organization life cycle.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
4. It is critical that human resource practices, during the entrepreneurial stage of an organization’s life
cycle, focus on the development of compensation and benefit programs that increase employee
retention.
Answer: False
Difficulty: Medium
Ref: How Is Organizational Success Determined?
5. During the communal stage of an organization expansion, innovation and cooperation are important.
The most critical human resource activity is to find and hire employees.
Answer: False
Difficulty: Medium
Ref: How Is Organizational Success Determined?
Page 2 of 19
, 6. The stakeholder perspective focuses on people who affect and are affected by an organization.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
7. An organization strives to move from the formalization stage in the organizational life cycle to the
elaboration stage.
Answer: True
Difficulty: Medium
Ref: How Is Organizational Success Determined?
8. Employees, customers and owners are the only stakeholders considered by successful organizations.
Answer: False
Difficulty: Easy
Ref: How Is Organizational Success Determined?
9. Low turnover is a sign that employee needs are being met.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
10. Employees satisfied with their jobs tend to have more satisfied customers.
Answer: True
Difficulty: Easy
Ref: How Is Organizational Success Determined?
11. Research demonstrates that employees who have better skills, are well paid, and feel their jobs are
secure have higher individual performance which translates into desirable organizational
improvements.
Answer: True
Difficulty: Easy
Page 3 of 19
