Human Resource Management in Business.docx

The Role of Human Resource Management in Business TRUE/FALSE 1. Marriott has built a strong “Spirit to Serve” culture that emphasizes the importance of the company’s people and the value they bring to the organization. ANS: T REF: p. 33 TOP: Real World Challenge 2. Some industries and businesses are more dependent on their talent to create a competitive advantage. ANS: T REF: p. 34 TOP: Introduction 3. It would never be appropriate for the culture of a company to be compared to a person’s personality. ANS: F REF: p. 35 TOP: Why Is Organizational Culture Important? 4. The culture of a company could be compared to a person’s personality. ANS: T REF: p. 35 TOP: Why Is Organizational Culture Important? 5. Business strategies can be reinforced or undermined by their fit with the firm’s culture. ANS: T REF: p. 35 TOP: Why Is Organizational Culture Important? 6. Performance culture focuses on firing, driving forces, motivating, and making work assignments based on goals and results. ANS: T REF: p. 35 TOP: Why Is Organizational Culture Important? 7. Culture and HRM work together to influence employees’ performance and behaviors. ANS: T REF: p. 36 OBJ: LO: 2-1 TOP: Why Is Organizational Culture Important? 8. HRM is a casual approach to an organization’s expectations and guidelines for employees. ANS: F REF: p. 36 TOP: Why Is Organizational Culture Important? 9. Culture and HRM work together to influence employees’ performance and behaviors. ANS: T REF: p. 36 TOP: Why Is Organizational Culture Important? 10. A study of new accounting employees found that new hires stayed an average of 14 months longer in companies with people-oriented cultures. ANS: T REF: p. 37 TOP: Why Is Organizational Culture Important? 11. Employees in a high-involvement organization feel responsible for its success because they know more, do more, and contribute more. ANS: T REF: p. 37 OBJ: LO: 2-2 TOP: The Role of HRM in High-Performance Work Systems 12. HPWSs require a heavy investment in employees that applies whether or not the firm can attract and retain quality people. ANS: F REF: p. 41 OBJ: LO: 2-2 TOP: The Role of HRM in High-Performance Work Systems 13. Ethics is the standards of moral behavior that define socially acceptable behaviors that are right as opposed to wrong. ANS: T REF: p. 41 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 14. It is important to remember that “unethical” is the same as “illegal.” ANS: F REF: p. 41 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 15. Ethical Values + Clear Expectations + Rewards/Punishments = Ethical Employee. ANS: T REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 16. The challenge of managing workplace ethics is simplified by the diverse values of today’s global workforce. ANS: F REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 17. A code of conduct specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior. ANS: T REF: p. 44 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 18. A code of ethics is a decision-making guide that describes the highest values to which an organization aspires. ANS: T REF: p. 44 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 19. Corporate social responsibility refers to a business showing concern for the common good and valuing human dignity. ANS: T REF: p. 46 OBJ: LO: 2-4 TOP: HRM Influence on Corporate Social Responsibility 20. Stakeholder perspective refers to considering the interests and opinions of all people, groups, and organizations outside of the organization. ANS: F REF: p. 44 OBJ: LO: 2-4 TOP: HRM Influence on Corporate Social Responsibility 21. Socially responsible business practices are becoming a core part of how many organizations do business. ANS: T REF: p. 44 OBJ: LO: 2-4 TOP: HRM Influence on Corporate Social Responsibility 22. Often, two of the largest changes in an organization are the change to organizational culture and the installation of new employee behaviors. ANS: T REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 23. Most employees are likely to have the willingness and the ability to easily support a new strategy. ANS: F REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 24. Effective talent planning is essential to the success of a merger or acquisition. ANS: T REF: p. 50 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 25. Communication is not a critical issue in the success of a merger or acquisition. ANS: F REF: p. 52 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions MULTIPLE CHOICE 1. Marriott International’s __________culture focuses on executing fundamental ideals of service to associates, customers, and the community. a. service is fun c. spirit to serve b. service is exciting d. the spirit of the guest ANS: C REF: p. 33 TOP: Real World Challenge 2. __________believes that the difference between success and failure in a corporation very often can be traced to the talents of its people. a. Thomas Watson c. Thomas Kinkaid b. John Watson d. John Kinkaid ANS: A REF: p. 34 TOP: Real World Challenge 3. The market value of companies that use HRM best practices, including selective recruiting, training, and employment security, is more than ______ percent higher than that of firms that do not. a. 25 c. 40 b. 35 d. 50 ANS: D REF: p. 34 TOP: Real World Challenge 4. The norms, values, and assumptions of organizational members are called the organizational _________. a. strategy c. culture b. normalization d. approach ANS: C REF: p. 35 TOP: Why Is Organizational Culture Important? 5. “The way we see and do things around here” is often a casual way to define organizational _________. a. strategy c. culture b. normalization d. approach ANS: C REF: p. 35 TOP: Why Is Organizational Culture Important? 6. Business strategies can be reinforced or undermined by their fit with the firm’s _________. a. strategy c. culture b. values d. approach ANS: C REF: p. 35 TOP: Why Is Organizational Culture Important? 7. What are the four broad types of organizational culture? a. Entrepreneurial, bureaucratic, consensual, competitive b. Administrative, bureaucratic, consensual, competitive c. Administrative, bureaucratic, consensual, directorial d. Entrepreneurial, bureaucratic, consensual, directorial ANS: A REF: p. 35 TOP: Why Is Organizational Culture Important? 8. Which type of culture emphasizes creativity, innovation, and risk taking? a. Entrepreneurial c. Consensual b. Bureaucratic d. Competitive ANS: A REF: p. 35 TOP: Why Is Organizational Culture Important? 9. Which type of culture emphasizes formal structures and the correct implementation of organizational procedures, norms, and rules? a. Entrepreneurial c. Consensual b. Bureaucratic d. Competitive ANS: B REF: p. 35 TOP: Why Is Organizational Culture Important? 10. Which type of culture emphasizes loyalty and tradition, and encourages employees to stay with the organization for a long time? a. Entrepreneurial c. Consensual b. Bureaucratic d. Competitive ANS: C REF: p. 35 TOP: Why Is Organizational Culture Important? 11. Which type of culture emphasizes competitive advantage and market superiority? a. Entrepreneurial c. Consensual b. Bureaucratic d. Competitive ANS: D REF: p. 35 TOP: Why Is Organizational Culture Important? 12. Which type of culture focuses on hiring, retaining, developing, motivating, and making work assignments based on performance data and results? a. Entrepreneurial c. Consensual b. Performance d. Competitive ANS: B REF: p. 35 TOP: Why Is Organizational Culture Important? 13. Sports teams like the New York Yankees and Pittsburgh Steelers consistently excel because of their strong __________ culture. a. entrepreneurial c. consensual b. performance d. competitive ANS: B REF: p. 35 TOP: Why Is Organizational Culture Important? 14. Restaurants that schedule their highest performing servers to during the busiest shifts are focused on __________ culture. a. entrepreneurial c. consensual b. performance d. competitive ANS: B REF: p. 35 TOP: Why Is Organizational Culture Important? 15. A study of new accounting employees found that new hires stayed an average of 14 months longer in companies with __________ cultures. a. entrepreneurial-oriented c. people-oriented b. performance-oriented d. competitive-oriented ANS: C REF: p. 37 TOP: Why Is Organizational Culture Important? 16. Starbucks is a good example of a(n) __________ culture. a. entrepreneurial-oriented c. people-oriented b. performance-oriented d. competitive-oriented ANS: C REF: p. 37 TOP: Why Is Organizational Culture Important? 17. A(n) __________ culture that stifled innovation and risk taking is thought to have contributed to Nokia’s declining market share. a. entrepreneurial c. bureaucratic b. performance d. competitive ANS: C REF: p. 37 TOP: Why Is Organizational Culture Important? 18. An organizational __________ can have a strong influence on behavior when employees develop a shared interpretation of the organization’s policies, practices, procedures, and goals and develop shared perceptions about which behaviors are expected and rewarded. a. strategy c. culture b. values d. approach ANS: C REF: p. 37 TOP: Why Is Organizational Culture Important? 19. How well people fit with an industry’s and organization’s ________ influences how satisfied they are with their careers. a. culture c. values b. strategy d. approach ANS: A REF: p. 38 TOP: Why Is Organizational Culture Important? 20. The acronym “HPWS” stands for __________. a. high-performance work system c. high-performance work strategy b. high-patented work system d. high-patented work strategy ANS: A REF: p. 39 OBJ: LO: 2-2 TOP: What Is the Role of HRM in High-Performance Work Systems? 21. A __________ is also known as a high-involvement or high-commitment organization. a. high-performance work system c. high-performance work strategy b. high-patented work system d. high-patented work strategy ANS: A REF: p. 39 OBJ: LO: 2-2 TOP: What Is the Role of HRM in High-Performance Work Systems? 22. In a __________, workers are to a large degree self-controlled and self-managed. a. high-performance work system c. high-performance work strategy b. high-patented work system d. high-patented work strategy ANS: A REF: p. 39 OBJ: LO: 2-2 TOP: What Is the Role of HRM in High-Performance Work Systems? 23. The standards of moral behavior that define socially acceptable behaviors as right or wrong are known as __________. a. policy c. laws b. ethics d. strategies ANS: B REF: p. 41 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 24. News headlines often suggest that ________ behavior is more common than you might think. a. principled c. ethical b. unethical d. tactical ANS: B REF: p. 41 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 25. The challenge of managing workplace ________ is complicated by the diverse values of today’s global workforce. a. policy c. laws b. ethics d. strategies ANS: B REF: p. 41 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 26. What is the ethical action that best balances good over harm by doing the most good or doing the least harm? a. Utilitarian standard c. Fairness standard b. Rights standard d. Common good standard ANS: A REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 27. Which ethical action is the one that best respects and protects the moral rights of everyone affected by the action? a. Utilitarian standard c. Fairness standard b. Rights standard d. Common good standard ANS: B REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 28. Which ethical action treats all people equally, or at least fairly, based on some defensible standard? a. Utilitarian standard c. Fairness standard b. Rights standard d. Common good standard ANS: C REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 29. Which ethical action shows respect and compassion for all others, especially the most vulnerable? a. Utilitarian standard c. Fairness standard b. Rights standard d. Common good standard ANS: D REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 30. Which ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc.? a. Utilitarian standard c. Fairness standard b. Rights standard d. Virtue standard ANS: D REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 31. What are the three types of systemic errors organizations often make that undermine their ethics efforts? a. Omission, remission, commission c. Omission, remission, permission b. Mission, omission, remission d. Mission, remission, permission ANS: A REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 32. __________ errors are a lack of written rules a. Omission c. Commission b. Remission d. Permission ANS: A REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 33. __________ errors are the pressures to make unethical choices a. Omission c. Commission b. Remission d. Permission ANS: B REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 34. __________ errors are the failure to follow sound, established operational and ethics practices. a. Omission c. Commission b. Remission d. Permission ANS: C REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 35. Pressure to meet unrealistic business objectives or deadlines cause people to compromise an organization’s ethical standards__________ percent of the time. a. 69 c. 48 b. 57 d. 36 ANS: A REF: p. 43 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 36. What specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior? a. Code of ethics c. Social conduct b. Social ethics d. Code of conduct ANS: D REF: p. 44 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 37. What is a decision-making guide that describes the highest values to which an organization aspires? a. Code of ethics c. Social conduct b. Social ethics d. Code of conduct ANS: A REF: p. 44 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 38. What is it called when businesses show concern for the common good and value human dignity? a. Corporate social responsibility c. Corporate social accountability b. Community social responsibility d. Community social accountability ANS: A REF: p. 46 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 39. Considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organization’s actions is called _______________. a. corporate responsibility c. corporate perspective b. stakeholder perspective d. stakeholder accountability ANS: B REF: p. 46 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 40. The __________ puts responsibility above shareholder value or profitability. a. stakeholder perspective c. corporate perspective b. corporate responsibility d. stakeholder accountability ANS: A REF: p. 46 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 41. When organizations adopt __________, they develop a broader and longer term perspective in their decision making. a. a stakeholder perspective c. corporate perspective b. corporate responsibility d. stakeholder accountability ANS: A REF: p. 46 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 42. __________ is increasingly included as a factor in performance evaluations and merit pay increases. a. Corporate social responsibility c. Corporate social accountability b. Community social responsibility d. Community social accountability ANS: A REF: p. 47 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 43. Employee participation in __________initiatives can motivate employees and generate good ideas. a. community social responsibility c. corporate social accountability b. corporate social responsibility d. community social accountability ANS: B REF: p. 47 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 44. The International Organization for Standardization has created a variety of standards that help organizations meet their environmental and __________ objectives. a. stakeholder perspective c. social perspective b. social responsibility d. stakeholder responsibility ANS: B REF: p. 47 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 45. Depending on the nature of a __________, some employees are likely to lack the willingness or even ability to support a new strategy. a. strategic change c. critical change b. strategic planning d. critical planning ANS: A REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 46. Rolling out a new benefits program is one of the most common __________ managed by HRM. a. strategies c. theories b. concepts d. changes ANS: D REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 47. Involving employees in a __________ management effort can improve their commitment to the change. a. control c. change b. concepts d. culture ANS: C REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 48. Employees need to change their __________ for an organizational change effort to succeed. a. behaviors and conduct c. objectives and goals b. behaviors and goals d. objectives and conduct ANS: B REF: p. 49 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 49. One of the most important factors in successfully creating organizational change is the creation of a culture of __________. a. ethics c. performance b. trust d. diversity ANS: B REF: p. 50 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 50. __________ is the glue that keeps employees committed to the organization and focused on making the change effort successful. a. Ethics c. Trust b. Performance d. Diversity ANS: D REF: p. 50 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 51. One common stimulus to organizational _________ is a merger or acquisition. a. ethics c. trust b. performance d. change ANS: D REF: p. 50 OBJ: LO: 2-5 TOP: How Does HRM Support Organizational Change? 52. As many as _____ percent of mergers fail to accomplish their objectives. a. 95 c. 75 b. 85 d. 55 ANS: B REF: p. 50 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 53. Effective __________ planning is essential to the success of a merger or acquisition. a. diversity c. performance b. talent d. succession ANS: B REF: p. 50 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 54. __________ issues are a frequent reason for derailed mergers. a. Ethics c. Cultural b. Performance d. Diversity ANS: C REF: p. 51 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 55. HR managers assure that cultural issues are recognized and addressed before, during, and after the ________. a. planning c. merger b. performance d. training ANS: C REF: p. 50 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 56. __________ have an enormous impact on the ultimate success or failure of a merger or acquisition. a. Employees c. Changes b. Committees d. Trainers ANS: A REF: p. 52 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 57. In some cases, companies are acquired because the acquiring company needs the _________of the other company. a. talent and skills c. culture and diversity b. culture d. diversity ANS: A REF: p. 52 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 58. What are the phases of a merger or acquisition? a. Post-combination, combination, and solidification and assessment b. Recombination, combination, and solidification and assessment c. Pre-combination, culture, and solidification and assessment d. Pre-combination, combination, and solidification and assessment ANS: D REF: p. 51 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 59. Number of employee absences / (average number of employees during the period ? the number of workdays) is the __________. a. absence rate c. customer service rating b. cost per hire d. cost for absent customers ANS: A REF: p. 53 OBJ: LO: 2-6 TOP: HRM During Mergers and Acquisitions 60. Recruitment costs/(cost of compensation + benefits) is called the __________. a. absence rate c. customer service ratings b. cost per hire d. cost for absent customers ANS: B REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 61. Average customer ratings of employee customer service performance is called __________. a. absence rate c. customer service ratings b. cost per hire d. cost for absent customers ANS: C REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 62. __________ is the level of employee satisfaction with the company. a. Performance c. Innovation b. Engagement d. Tenure ANS: B REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 63. Percent of sales coming from products introduced in the last five years is called __________. a. performance c. innovation b. engagement d. tenure ANS: C REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 64. The average years of service at the organization is called __________. a. performance c. innovation b. engagement d. tenure ANS: D REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 65. The number of job offers accepted divided by the number of job offers extended is called the job offer __________ rate. a. acceptance c. innovation b. engagement d. tenure ANS: A REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 66. The total cost of employee health care divided by the number of covered employees is called the health care cost per __________. a. engaged employee c. full-time employee b. employee d. innovation ANS: B REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 67. The number of individual or group performance goals met or exceeded divided by the total number of performance goals is called the percent of performance goals __________. a. engaged in c. met or exceeded b. not met d. accepted ANS: C REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 68. Profit divided by the total number of employees is called the __________. a. employment profit c. profit per employee b. employee profit rate d. performance profit rate ANS: C REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 69. The value of a program or intervention’s benefits minus the total cost divided by the total cost times 100 is called the return on __________. a. innovation c. investment b. invention d. profit ANS: C REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 70. The revenue divided by the total number of employees is called __________. a. revenue per employee c. revenue per innovation b. return on investment d. return on employee ANS: A REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 71. The number of days to fill a vacant employee position is called time to__________. a. fill c. employee b. invest d. vacate ANS: A REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 72. The number of employees leaving divided by the average number of employees during the same period is called the __________. a. vacancy rate c. rate of return b. employee turnover d. turnover rate ANS: D REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 73. The total annual workers’ compensation cost divided by the average number of employees is called the workers' compensation cost __________. a. frequency c. per injury. b. per employee d. rate ANS: B REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics 74. To be most effective, ________ should be tied to business goals and drive employee behaviors. a. rates c. revenue b. vacancy d. metrics ANS: D REF: p. 53 OBJ: LO: 2-6 TOP: HRM Metrics ESSAY 1. When considering different cultural features, what are some preferences that can help you choose the best fit? ANS: ? Focus on competition versus cooperation ? Formal versus flexible procedures ? A focus on company success versus the public good ? Individual versus team-based rewards ? Well-defined versus flexible career paths ? A formal versus informal atmosphere ? Centralized versus decentralized decision making ? Clearly defined responsibilities versus varied responsibilities REF: pp. 37-38 OBJ: LO: 2-2 TOP: Why Is Organizational Culture Important? KEY: Bloom's: Analysis 2. What are the seven elements of HPWS that Pfeiffer identified his book The Human Equation? ANS: ? Employment security ? Selective hiring of new talent ? Self-managed teams and decentralization of decision making as the basic principles of organizational design ? Comparatively high compensation contingent on organizational performance ? Extensive training ? Reduced status distinctions and barriers, including dress, language, office arrangements, and wage differences across levels ? Extensive sharing of financial and performance information throughout the organization REF: p. 40 TOP: What Is the Role of HRM in High-Performance Work Systems? 3. What are the benefits from managing corporate ethics? ANS: ? Promoting a strong public image ? Substantially improving society ? Helping to manage change ? Cultivating teamwork and productivity ? Supporting employee growth ? Helping to ensure that policies are legal ? Helping to avoid criminal acts on the part of employees. ? Helping to manage employee values associated with quality management, strategic planning, and diversity management REF: p. 42 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 4. How can HRM support corporate ethics? ANS: ? Hire employees likely to behave ethically ? Train employees on how to recognize and handle different ethical situations ? Implement a company code of conduct and make all employees accountable for following it ? Include ethics information in regular company communications in order to reinforce its importance ? Promptly remove employees involved in unethical behavior or decision making ? Create a reward program that reinforces ethical behavior ? Develop a support system that helps employees make the right decisions and anonymously report others’ unethical behavior. REF: p. 45 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 5. How does HRM support organizational change, and what are some of the most common changes managed by HRM? ANS: ? New production processes ? Opening a new location ? Rolling out a new benefits program ? Implementing a new human resource information system (HRIS) or upgrading the current HRIS system ? Expanding international operations Depending on the nature of a strategic change, some employees are likely to lack the willingness or even the ability to support a new strategy. Targeting HRM efforts to develop, motivate, and retain the people who are critical to implementing a new strategy may expedite its adoption and ultimately improve the strategy’s effectiveness. Employee participation can also be a positive tactic for change management, as it is ultimately the employees who need to adopt different behaviors and goals to support a change if it is to succeed. REF: p. 49 OBJ: LO: 2-5 TOP: The Role of HRM in Corporate Ethics and Social Responsibility 6. Why is the creation of trust so important to an organization that is going through change? ANS: One of the most important factors in successfully creating organizational change is the creation of a culture of trust. There is a great deal of uncertainty before and during a change effort. Trust is the glue that keeps employees committed to the organization and focused on making the change effort successful. Because resistance to change is common when behavioral patterns need to be changed, clear communication and training, goals, feedback, and rewards linked to the new behaviors align employees’ goals and behaviors with the new goals and needs of the organization. When quick, radical, change is necessary it may be appropriate to use coercion, but whenever possible it is best to use more collaboration and consultation to promote engagement and commitment to the change. REF: p. 50 OBJ: LO: 2-5 TOP: The Role of HRM in Corporate Ethics and Social Responsibility KEY: Bloom's: Analysis 7. What are the important HRM issues and activities during different phases of a merger or acquisition? ANS: Stage 1—Precombination: Identifying the reasons for the M&A—Assisting in conducting a thorough due diligence assessment; Forming an M&A team leader—Participating in planning for the combined firm; Identifying and selecting a partner—Assisting in developing HRM practices that support knowledge transfer and rapid learning; Planning for managing the process; Planning to learn from the process; Participating in pre-selection assessment of the targeted firm. Stage 2—Combination: Selecting the integration manager(s)—Assisting with the design and staffing of the transition team; Designing/implementing transition teams—Developing retention strategies and communicating them to top talent; Creating the new structure, strategies or leadership—Assisting in deciding who is let go; Retaining key employees—Facilitating the establishment of a new culture; Managing the change process—Providing assistance to ensure implementation of HRM policies and practices; Communicating with and involving stakeholders; Developing new policies and practices; Assisting in recruiting and selecting integration manager(s). Stage 3—Solidification and Assessment: Solidifying leadership and staffing—Monitoring the new culture and recommending approaches to strengthen it; Assessing the new strategies and structures—Enhancing stakeholder satisfaction; Assessing the new culture—Assisting in developing and implementing plans for continuous adjustment and learning; Assessing the concerns of stakeholders; Making revisions as needed; Learning from the process; Participating in establishing criteria and procedures for assessing employee effectiveness in the combined firm.