Multiple choice

1. ROI is the organization’s 

return on interest.

return on innovation.

return on investment.

return on intangible assets.


2. Which of the following activities would NOT fall into the risk management function of HR? 

Sending all employees a text message requiring them to report in to a designated individual after an earthquake affects the city in which the company’s plant is located.

Negotiating with a representative of the Occupational Safety and Health Administration (OSHA) about appropriateness of a measure to reduce harmful gases in a mine.

Requiring employees to purchase a minimal level of life insurance when they are deployed overseas.

Designing policies and procedures for a shipping firm to handle episodes of piracy and employee hostage-taking..


3. Back roads Merchandise, an Oklahoma-based manufacturer of outdoors and sports products, is facing a pronounced downturn in business due to lower-priced products from foreign competitors. Top management is concerned that this will be a permanent or long-term problem and they have decided to reduce the number of employees. The CEO has conferred with the director of HR to learn which method of reducing the workforce will be received better by both the employees leaving and the employees remaining behind. The CEO also wishes to minimize the cost of the reduction process. The director of HR has suggested the use of 

layoffs with the option of re-hire when business revives.

voluntary separations with severance.

greater use of contingent workers.

attrition combined with a hiring freeze.


4. Bob is a retired engineer who works part-time as sales staff at a “big box” home center. The store manager refers to Bob as “Grandpa Bob.”

A modeling agency has sent an 52-year-old man to pose for a photo shoot for a teen-oriented product line. The shoot director was over heard to say on the phone, “What were you thinking? I gave you our target customer profile!”

When James was sent to classes to update his computer skills, his supervisor commented that she was sure “old dogs could learn new tricks.”

The HR managers at a non-profit organization refer to the informal policy of laying off the most senior and highly-paid employees first as the “age before beauty” policy.


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