Question 1

Once an organization has negotiated the outsourcing contract,what would be the next step in managing outsourcing?

Accepted Answer

A)  cost-benefit analysis
B)  selecting the vendor
C)  reviewing policies
D)  monitoring the arrangementE) C) and D)
F) B) and C)

Question 2

What are the two most frequent causes of outsourcing problems?

Accepted Answer

A)  reduction of costs,vendor incompetence
B)  excessive time,lack of technology
C)  organizational politics,reduced employee morale
D)  poor service definition,weak management processesE) B) and D)
F) A) and B)

Question 3

What are two primary reasons why organizations outsource?

Accepted Answer

A)  financial savings and strategic focus
B)  strategic focus and restructuring
C)  access to advanced technology and ability to service remote locations
D)  improved internal and external service levelsE) B) and C)
F) A) and D)

Question 4

Which is one of the meanings of core competency?

Accepted Answer

A)  activities currently performed internally
B)  activities contributing directly to the bottom line
C)  activities traditionally providing competitive advantage
D)  activities influencing human behaviourE) C) and D)
F) B) and D)

Question 5

Which of the following characteristics is NOT typically used to help determine whether an organization should outsource?

Accepted Answer

A)  reliance on technology
B)  routine activity frequently undertaken
C)  cost-effectiveness
D)  accessibility from remote sitesE) C) and D)
F) B) and D)

Question 6

Considering the risks and limitations of outsourcing,it is estimated that few outsourced HR functions have been brought back in-house.What is the percentage of outsourced HR functions that are taken back by organizations?

Accepted Answer

A)  1 to 20 percent
B)  10 to 30 percent
C)  20 to 40 percent
D)  10 to 40 percentE) None of the above
F) B) and D)

Question 7

Activities that are able to be fully or partly automated by technology and delivered by remote sites are most likely to be outsourced.

Accepted Answer

A) True 
 B)False

Question 8

Comment on the quote "not a single company can afford to even try and be the first in everything." Define and give an example of core work and non-core work.

Accepted Answer

Core work is transformational and adds v...

Question 9

Quality improvement is typically cited as a benefit of outsourcing,and therefore it is written into the outsourcing contract.

Accepted Answer

A) True 
 B)False

Question 10

Today,firms are outsourcing everything from information technology management to entire functions such as human resources.

Accepted Answer

A) True 
 B)False

Question 11

What function does a stay-back team perform?

Accepted Answer

A)  It negotiates the outsourcing contract
B)  It conducts a cost-benefit analysis
C)  It monitors the outsourcing arrangement
D)  It selects the outsourcing vendorE) A) and B)
F) B) and D)

Question 12

What is one of the primary risks associated with outsourcing?

Accepted Answer

A)  increased costs
B)  decreased employee morale
C)  impact on public relations
D)  loss of strategic controlE) C) and D)
F) A) and D)

Question 13

Why do cost overrides with outsourcing occur more frequently than projected?

Accepted Answer

A)  Information technology is deemed a compatible system
B)  Client demands are outside of the standard vendor package
C)  Organizations are inexperienced with vendor selection
D)  Vendors will make contracts that are biased in their favourE) All of the above
F) B) and C)

Question 14

Outsourcing occurs when an organization contracts with another organization to provide services or products of a minor function or activity.

Accepted Answer

A) True 
 B)False

Question 15

According to the textbook,why did CIBC make the decision to outsource major portions of its HR functions?

Accepted Answer

A)  to downsize employees and increase efficiency
B)  to avoid capital expenses and increase cultural fit
C)  to cut costs and increase productivity
D)  to improve service and increase automationE) C) and D)
F) B) and C)

Question 16

An organization found that outsourcing led to company information being leaked.What risks did this organization carry as a result of outsourcing?

Accepted Answer

A)  service risks
B)  security risks
C)  reduced value risks
D)  employee morale risksE) A) and B)
F) All of the above

Question 17

The major information risk to the HR department when using outsourcing is the potential for violations of confidential employee data.

Accepted Answer

A) True 
 B)False

Question 18

Why are specialized outsource vendors more efficient in their offering of training than many organizations?

Accepted Answer

A)  Outsourcers can achieve economies of scale.
B)  Outsourcers can charge for every transaction.
C)  Outsourcers can maximize their capital.
D)  Outsourcers can provide uninterrupted service.E) All of the above
F) None of the above

Question 19

Outsourcing is a contractual relationship for the provision of business services by any available provider with relevant expertise.

Accepted Answer

A) True 
 B)False

Question 20

Nike focuses on its competencies in product design and outsources other competencies.What is this competency product design called?

Accepted Answer

A)  non-core competencies
B)  worker competencies
C)  core competencies
D)  transactional competenciesE) A) and B)
F) None of the above

Exam 13: Outsourcing

Quality improvement is typically cited as a benefit of outsourcing,and therefore it is written into the outsourcing contract.

Correct AnswerverifiedShow Answer

Activities that are able to be fully or partly automated by technology and delivered by remote sites are most likely to be outsourced.

Correct AnswerverifiedShow Answer

An organization found that outsourcing led to company information being leaked.What risks did this organization carry as a result of outsourcing?

Correct AnswerverifiedShow Answer

Outsourcing is a contractual relationship for the provision of business services by any available provider with relevant expertise.

Correct AnswerverifiedShow Answer

What are two primary reasons why organizations outsource?

Correct AnswerverifiedShow Answer

What function does a stay-back team perform?

Correct AnswerverifiedShow Answer

Why do cost overrides with outsourcing occur more frequently than projected?

Correct AnswerverifiedShow Answer

Considering the risks and limitations of outsourcing,it is estimated that few outsourced HR functions have been brought back in-house.What is the percentage of outsourced HR functions that are taken back by organizations?

Correct AnswerverifiedShow Answer

What are the two most frequent causes of outsourcing problems?

Correct AnswerverifiedShow Answer

According to the textbook,why did CIBC make the decision to outsource major portions of its HR functions?

Correct AnswerverifiedShow Answer

The major information risk to the HR department when using outsourcing is the potential for violations of confidential employee data.

Correct AnswerverifiedShow Answer

Once an organization has negotiated the outsourcing contract,what would be the next step in managing outsourcing?

Correct AnswerverifiedShow Answer

Which is one of the meanings of core competency?

Correct AnswerverifiedShow Answer

Outsourcing occurs when an organization contracts with another organization to provide services or products of a minor function or activity.

Correct AnswerverifiedShow Answer

What is one of the primary risks associated with outsourcing?

Correct AnswerverifiedShow Answer

Nike focuses on its competencies in product design and outsources other competencies.What is this competency product design called?

Correct AnswerverifiedShow Answer

Comment on the quote "not a single company can afford to even try and be the first in everything." Define and give an example of core work and non-core work.

Correct AnswerverifiedCore work is transformational and adds v...View AnswerShow Answer

Why are specialized outsource vendors more efficient in their offering of training than many organizations?

Correct AnswerverifiedShow Answer

Which of the following characteristics is NOT typically used to help determine whether an organization should outsource?

Correct AnswerverifiedShow Answer

Today,firms are outsourcing everything from information technology management to entire functions such as human resources.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Core work is transformational and adds v...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified